Challenges in 2013 and Our Responses Developing new products with the aim of increasing profitability Issues facing the Company in 2013 and our responses are as follows. In 2013, we will adopt a strategy of selection and focus in materials and in fields that have profit growth potential, drawing from among our newly developed products, and then move to the next stage of growth. We will endeavor to expand the market by promoting the use of IXEPLAS, a highly functional IXE impurity ion-trapping agent for IC encapsulating material adhesives, in such new fields as advanced sealants and solar cell materials. In the antimicrobial field, we will work to expand awareness of the Novaron brand of silver-based inorganic antimicrobial agents used in textiles, daily items, and home electrical appliances while boosting sales in Asia. Sales of the inorganic deodorant Kesmon and the inorganic hybrid anti-fungal agent Cavinon, both used in daily items, home electrical appliances, and other interior goods, have increased substantially over recent years. This largely reflects the strong feelings of hygiene and cleanliness that these products engender in customers. Moving forward, we will continue to expand applications and sales for these products. In addition to further expanding the markets for the anti-allergen agent AlleRemove and the low-thermal expansion filler ULTEA, we will continue to increase sales of these products. At the same time, we will maintain our focus on studies and research for the development of major new products for the next generation. We will also place considerable emphasis on the development of consumer products that employ our functional materials in an effort to enhance our brand prowess within the market and to deliver high added value. As the first step in this endeavor, we are promoting the development of valueadded masks by utilizing the inorganic deodorant Kesmon. In the EC field, we will endeavor to ensure safe production while promoting stable quality. We will also pursue the development of new applications and strengthen the infrastructure required to expand business. Furthermore, we are aggressively developing markets for the SQ series of silsesquioxane compounds, which are organic and inorganic hybrid materials, focusing mainly on hard coating as well as LED sealing materials that utilize its super-hard and transparent characteristics. Advanced Chemicals: Progress in Addressing Priority Issues . Utilizing the technical service center to advance amenity care materials while promoting the shift toward customeroriented proposal development . Developing consumer products utilizing the Company’s brands that employ deodorizing properties . Production commenced at a new ethylene carbonate plant in April 2012; continued focus on the development of new applications other than as an LiB electrolyte solution Amenity care materials / Electronics materials Medium-term Management Plan Specialty Chemicals Toagosei Co., Ltd. 17