Overview by Business Segment 2012 Review . Second Year Achievements of Medium-term Management Plan Completed steps to put in place an infrastructure that is capable of increasing the profitability of high value-added products The amenity care materials group is working to expand its business by promoting the sale of highly functional amenityapplication materials both in Japan and overseas including China and Korea. In specific terms, the group is upgrading its assessment system by fully utilizing the technical service center and undertaking proposal-type market development by providing technical guidance and support. During the fiscal year under review, we upgraded our supply system by expanding production facilities for products based on zirconium phosphate compounds at the Tokushima Factory in order to meet growing demand and completed the construction of a mass-production line for Cavinon. In continuing to focus on our production capabilities, we will channel energies toward streamlining operations and increasing efficiency going forward. Moreover, we will pursue new product development by using a pilot plant that had previously been exclusively used for Cavinon production as a utility development facility for new products. In the electronics materials group, we strengthened our cost competitiveness in high-purity hexachlorodisilane (HCD) deposition materials for semiconductor insulating films by streamlining operations. Thanks to this and other initiatives, we have maintained our position as the world’s leading manufacturer of HCD. In ethylene carbonate (EC), one of the main materials for electrolytes used in lithium-ion secondary batteries for electric cars, personal computers, cell phones, and related devices, Toagosei brought online an EC manufacturing facility within the Osaka plant of its joint-venture partner Mitsui Chemicals, Inc. As the leading manufacturer of EC, we put in place a supply system to cope with the forecast growth in demand. We also established a supply system for refined EC in Nagoya and began introducing it into electronics materials applications that leverage its high-purity characteristics. Specialty Chemicals Advanced Chemicals Akira Kuriyama Executive Officer, General Manager, Advanced Chemicals Department 16 Annual Report 2012