Shin Takahashi Executive Officer, General Manager, Functional Chemicals Department In adhesives, we achieved the goals of the second-year plan through the launch of the new hit product, Aron Alpha, and by increasing sales of functional adhesives for electronics materials. As part of our efforts to strengthen the Aron Alpha brand, we launched the new product EXTRA GEL in 2012. EXTRA GEL, features superior performance, significantly improved bonding speed and strength, and a new type of functional container that is much easier to use. Consequently, sales of EXTRA GEL have been strong. Furthermore, our aggressive product promotion activities have enabled Aron Alpha to capture the highest-recorded share of the Japanese adhesives market. Despite weakness in the global economy, our manufacturing sites in the United States and China have effectively promoted our products, keeping sales steady. In functional adhesives, although hot melt adhesive sales were sluggish, the sales of reactive type adhesives for electronics grew significantly, leading to an increase in overall sales in 2012. In order to boost competitiveness, we have integrated the production operations of Aron Ever-Grip Ltd. with those of the Takaoka Plant. As a result, sales and profits increased in domestic and foreign markets, which enabled us to achieve our goals for 2012. 2012 Review . Second Year Achievements of Medium-term Management Plan In construction materials, sales of soil improvement agents and civil engineering repair materials increased, but sales of construction repair materials overall fell short of the plan’s second-year targets due to a large drop in sales of construction repair materials, the core business. In construction repair materials, our mainstay Aron Wall NEO and Clear Wall methods were increasingly used in the construction market, leading to an increase in sales year on year. However, the business fell significantly short of targets in the medium-term management plan due to the slow pace of construction projects. Going forward, we intend to work even harder to close the gap with the plan’s targets. In contrast, sales of Aron Coat SQ registered record sales, in line with the target in the medium-term management plan. Sales of soil improvement agents increased due to the adoption of Aron Soil for use in road construction. Functional Chemicals Specialty Chemicals Overview by Business Segment 0 5,000 20,000 10,000 15,000 0 2,000 4,000 3,000 1,000 16,350 3,011 10 11 12 10 11 12 (Millions of yen) (Millions of yen) Sales Segment income 14 Annual Report 2012