“ALL TOA 2010” (2008.2010) . Strengthened high-value-added product operations . Strengthened core businesses . Invested in new businesses . Promoted integration of affiliated companies Slogan: Further growth through collaborative expertise “ALL TOA 2013” (2011.2013) New Medium-Term Business Plan Commodity Chemicals Ensuring reliable earnings from electrolysis operations at three sites (Tsurumi, Nagoya, and Tokushima) ∂ Further integration between Tsurumi Soda and Toagosei’s electrolysis operations ∂ Expansion of high-purity, highly functional product business ∂ Aggressive development of strategic product operations ∂ Strengthening of industrial gas operational base Performance Targets The principal targets are sales of \200 billion, operating income of \25 billion, and an operating income margin of 12.5%. We are considering making a total investment of approximately \100 billion over the three-year period, including new investments to realize our growth strategies. Expanding earnings from core products Accelerating growth in scale of high-value-added products Creating new products and new businesses Acrylic Products Raising profitability of acrylic monomers to develop business into one the Group’s core domains ∂ Establishing acrylic ester operations on permanent profit-making basis through radical action ∂ Expanding operational scale, with strong earning capability both upstream and downstream ∂ Achieving improved cost-competitiveness through use of cutting-edge technology, leading to improved earnings and growth Operating income \21.2 billion Growth Strategies Action Plan for Operational Divisions under “ALL TOA 2013” 2010 Results (consolidated) 2013 Targets (consolidated) Sales \153.7 billion \200.0 billion Operating income \21.2 billion \25.0 billion Operating income margin 13.8% 12.5% Net income \13.1 billion \15.0 billion EPS \52 \60 Financial indicators 2010 Results 2013 Targets Ordinary income margin (ordinary income as % of total assets) 12.5% 12% or more R&D cost ratio (R&D costs as % of sales) 3.0% Around 4% 4 Annual Report 2010