General Center of R&D In “All TOA 2013,” our medium-term management plan beginning in 2011, we are taking initiatives in the area of R&D with the goal of continuously developing distinctive, highly functional products in our business domains of Commodity Chemicals, Acrylic Products, Specialty Chemicals, and Plastics, based on our technological strength. At the same time, our goal is to create new products and businesses to support continuous growth as a value-creating, highly profitable corporate group. With the General Center of R&D and the Monodukuri Center at its hub, the R&D Department collaborates with all Toagosei departments and rapidly creates new high value-added products. Moreover, it is deepening its relationships with universities and other external resources, as well as with other companies that share its goals at the management level. R&D is the starting point for Toagosei Group growth .Achieve steady progress in each R&D field. We have separated research themes into development that feeds directly into new product creation, and research to establish necessary key technologies for all kinds of product development. The laboratories of each business department are in charge of development themes and the Base Technology Center of the corporate management division is in charge of research themes. At the General Center of R&D, established in 2011, R&D is pursued through the collaboration of the laboratories of each business department and the Base Technology Center. Meanwhile, at the Institute for Advanced Sciences, the Peptide-based Drug Creation Project is being carried out on an ongoing basis with the goal of creating new functional peptides. Periodic discussions are held across all departments to promote further collaboration at each research lab regarding key challenges in promoting R&D. Research & Development Changing the focus from providing facilities to reforming management 20 Annual Report 2012