Strong shipments drove up sales of Aronix UV-curable resins on a full-year basis, despite a decline in demand from some manufacturers of electronics materials from the beginning of autumn. As a result of the foregoing, total sales in the Acrylic Products segment increased 24.6% year on year to \60,680 million, and operating income grew 236.5% to \9,810 million. Specialty Chemicals Sales of adhesives grew strongly on steady shipments of industrial adhesives for customers in the electronics materials and automotive sectors. Sales of products for construction and civil engineering grew strongly due to buoyant shipments mainly for building reinforcement works. Sales of products developed in-house grew significantly owing to increased demand for high-purity silicon gases from manufacturers of electronics materials as a result of active marketing initiatives, combined with increased sales of the silverbased inorganic antimicrobial agent Novaron in Japanese and overseas markets. As a result, total sales for the segment increased 8.7% year on year to \16,970 million, and operating income increased 34.9% year on year to \3,774 million. Plastics Shipments of plastic products for the nursing-care and welfare sectors and of elastomer compounds were firm, but this was not enough to offset a major decline in shipments of pipes and couplings due to a scaling down of public-works projects. As a result, sales in this segment declined 2.0% year on year to \28,026 million, while operating income fell 14.4% to \1,534 million. Other Businesses Sales for this segment, which comprises new product development operations, the construction and repair of plants and production facilities, and goods transportation services, posted a 17.8% year-on-year decline to \1,231 million. The segment booked an operating loss of \489 million. Cash Flows Net cash provided by operating activities increased by \2,142 million year on year to \24,843 million. This is because a significant rise in income before income taxes and minority interests more than offset an increase in working capital. Net cash used in investing activities increased by \3,981 million to \10,155 million, due to increased purchases of property, plant and equipment. Net cash used in financing activities totaled \4,117 million, the major factors being cash dividends to shareholders and repayment of short-term bank loans. As a result of the above, cash and cash equivalents at the reporting term-end stood at \22,689 million, an increase of \10,301 million from the previous term-end. Business Performance Prospects for Fiscal 2011 For the current term, ending December 31, 2011, we forecast sales of \158.5 billion, operating income of \19.0 billion, and net income of \10.0 billion. 103870 105339 99271 99449 110284 6.8 6.1 1.9 3.6 12.5 0 30,000 60,000 90,000 120,000 0.0 4.0 8.0 12.0 16.0 (Millions of yen) (%) 06 07 08 09 10 Net worth & ROE ■■ Net worth (left scale) ROE (right scale) 195607 182681 172464 161609 173847 3.6 3.4 1 2.1 7.8 0 50,000 100,000 150,000 200,000 0.0 2.0 4.0 6.0 8.0 (Millions of yen) (%) 06 07 08 09 10 Total assets & ROA ■■ Total assets (left scale) ROA (right scale) Toagosei Co., Ltd. 23