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Interview with the President 1. Next-generation product development We will focus on developing new products in areas expected to grow in the future, including food, water, healthcare, the environment, energy, and social infrastructure. To this end, we will revise the Group’s research structure, which was previously separated by department, by building a consistent management system at the General Center of R&D, extending from basic research to applied research, product development, and production technology development. This initiative will enable us to maintain a cross-segment system capable of rapidly dispatching researchers in key fields along with enhancing personnel training to improve the creativity and skills of each researcher. 3. Qualitative transformation to a more attractive company Promote a qualitative transformation of the corporate culture to motivate employees to take on the challenge of implementing positive innovations by upgrading employment conditions, such as creating opportunities for senior employees and revising wage levels 2-a Innovative manufacturing technologies (Photo left) In the past, the company manufactured acrylic acid using two reactors, but the installation of an integrated-type reactor reduced this to one. Changing the manufacturing process raised production efficiency and improved competitiveness. (Photo right) Electrolysis machine using the gas diffusion electrode method that reduces electricity consumption by two-thirds compared to conventional machines The General Center of R&D’s Consistent Management Base Technology Center Applied Research Laboratory New Products Research Laboratory Productive Technology Laboratory General Center of R&D 3 Overview of Growth Strategies All purpose Shock resistant Disposable Color change Skin guard Crafts Multi-pack 2-c New product development in North America Krazy Glue: Product development that meets user needs 2. Strengthening and qualitatively transformation of existing business production and sales systems Production Division In the key electrolysis and acrylic segments, promote project team-based operational reforms while working to reduce costs and improve productivity by introducing innovative manufacturing technologies a Sales Division Improve earnings by steadily implementing such measures as increasing customers through enhancements in the quality and quantity of sales activities; gathering information on customer needs; and revising prices in a timely manner b Overseas Division Work to optimize production systems and strengthen sales systems at overseas bases; promote new product development in North America; and enhance bases in Asia to further augment competitiveness in that region c 9 Annual Report 2013