2012 Review . Second Year Achievements of Medium-term Management Plan The acrylic products business is engaged in producing chemicals ranging from monomers, including acrylic acid . the starting point of the business . and acrylic ester, to downstream derivatives such as acrylic polymers and UV-curable resins (Aronix). In the monomer business, we continued to focus on the stable improvement of profits through the building of a new business model for production and sales. Further, to expand the entire acrylic products business from upstream to downstream as a profitable core business, in name and substance, Toagosei began increasing acrylic acid production capacity at Oita Chemical Co., Ltd. This extra capacity will boost annual production from 60,000 tons to 140,000 tons, with the work due for completion in January 2014. In the polymer business, we took active steps to raise productivity in order to boost profitability and increase market share. At our operations in Singapore, we worked to secure profits from monomer products and actively expanded sales of water-soluble polymers. In the Aronix business, sales of some products in the electronics materials field declined. However, we continued to roll out chemical products in grades tailored to local needs at our Nagoya Plant in Japan, at TOADIC Zhangjiagang Chemical Co., Ltd. in China and Toa-Jet Chemical Co., Ltd. in Taiwan. We also took steps to improve existing products and aggressively developed new products for advanced applications such as flat panel displays. Also, in order to expand demand for our acrylic products, we looked at new ways to strengthen our marketing infrastructure and examined the adoption of new technologies to boost profitability. Challenges in 2013 and Our Responses In the monomer business, we will seek to maintain our existing business model for production and sales as well as implement measures to boost profitability. We will also work to ensure our new acrylic acid production facilities are completed to schedule in January 2014. In the polymer business, Nihon Junyaku Co., Ltd. was merged into the Group in January 2013, with the company’s Hirono Plant coming under the direct control of Toagosei. This move was aimed at integrating management resources and speeding up decision making. In order to maximize the increase in acrylic acid production capacity, we plan to further expand sales of polymer products and enhance our manufacturing technology capabilities while also actively investing in the business. In addition, we plan to develop competitive new products to boost profitability in the flocculant business at MT AquaPolymer, Inc. and in the water-soluble polymer business in Singapore. In the Aronix business, we will leverage the strengths of our three production bases in Asia, the Nagoya Plant (Japan), TOA-DIC Zhangjiagang Chemical Co., Ltd. (China) and Toa-Jet Chemical Co., Ltd. (Taiwan), focusing on developing chemical products in grades tailored to local needs. We will also work to expand sales by using innovative manufacturing technologies to develop other distinctive products. We will continue to develop new downstream products and manufacturing technologies and aggressively roll out new competitive product lines in Asia while leveraging the Group’s acrylic chain to the fullest extent possible. Toagosei Co., Ltd. 13