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2013 Review . Third Year Achievements of Medium-term Management Plan The acrylic products business is engaged in producing chemicals ranging from monomers, including acrylic acid . the starting point of the business . and acrylic ester, to downstream derivatives such as acrylic polymers and UV-curable resins (Aronix). In the monomer business, we continued to focus on the stable improvement of profits through the building of a new business model for production and sales. Further, Toagosei made steady progress in construction to increase acrylic acid production capacity at Oita Chemical Co., Ltd. Completed in January 2014, this extra capacity has boosted annual production from 60,000 tons to 140,000 tons. In the polymer business, we took active steps to raise productivity in order to boost profitability and increase market share. At our operations in Singapore, we worked to secure profits from monomer products and actively expanded sales of water-soluble polymers. In the Aronix business, sales of some products in the electronics materials field declined. However, we took steps to improve existing products to conform to the regional characteristics of Japan, China and Taiwan as well as aggressively developed new products for advanced applications such as flat panel displays. Also, in order to expand demand for our acrylic products, we looked at new ways to strengthen our marketing infrastructure and examined the adoption of new technologies to boost profitability. New Medium-Term Management Plan Initiatives in 2014 (Issues to Be Addressed) This spring, Toagosei boosted the annual production capacity of Oita Chemical Co., Ltd.’s acrylic acid facilities to 140,000 tons in order to further enhance its competitiveness across the entire acrylic chain, from upstream monomers to downstream functional polymers. In response, the monomer business will take steps to further increase profitability by creating a new business model to undertake domestic and overseas production and sales in tandem with the Company’s Singapore base . In the polymer business, we will maximize the increase in acrylic acid production capacity. To this end, we plan to further expand sales of polymer products and enhance its manufacturing technology capabilities while also aggressively investing in the polymer business. Toagosei will also work to improve profitability by increasing the production efficiency of watersoluble polymer and emulsion product lineups, expanding into peripheral fields, and promoting the development of functional fine particles and other high-value-added products. In addition, we plan to develop competitive new products to boost profitability in the flocculant business at MT AquaPolymer, Inc. and in the water-soluble polymer business in Singapore. In the Aronix business, we will leverage the strengths of our three production bases in Japan, China and Taiwan, focusing on developing chemical products in grades tailored to local needs. We will also work to expand sales by using innovative manufacturing technologies to develop other distinctive products. In the energy/ environment and optics fields, we will work to strengthen downstream businesses and further improve profitability by creating demand for acrylic products that identify market needs from new perspectives and advance technological innovation. We will expand these downstream products, develop new manufacturing technologies, and aggressively roll out new competitive product lines in Asia while working to increase the profitability of the Group’s acrylic chain. 2011 2012 2013 57,466 Sales 54,354 59,069 (Millions of yen) 2011 2012 2013 8,488 Segment income 5,764 6,274 (Millions of yen) Toagosei Co., Ltd. 14