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2013 Review . Third Year Achievements of Medium-term Management Plan Released advanced amenity care materials products and completed future-oriented infrastructure upgrading We successfully developed and commenced sales at the end of 2013 of the advanced KESMON MASK. This new highly functional amenity-application materials product uses its characteristic chemical adsorption to deliver superior deodorizing performances in a wide array of industrial settings. Looking ahead, we will take steps to establish this product brand KESMON by accelerating the development of applications beyond use as an amenity care materials mask. In manufacturing, we completed upgrades to zirconium phosphate compound production facilities at the Tokushima Factory, thereby strengthening our supply system. In continuing to focus on our production capabilities, we will channel energies toward streamlining operations and increasing efficiency going forward. We strengthened our cost competitiveness in high-purity hexachlorodisilane (HCD) deposition materials for semiconductor insulating films by making ongoing improvements to manufacturing technology. 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 established an EC manufacturing facility within the Osaka plant of its joint-venture partner Mitsui Chemicals, Inc. and a high-purify EC manufacturing facility in Nagoya. As a manufacturer of high-purify EC, we put in place a supply system to cope with the forecast growth in demand. New Medium-Term Management Plan Initiatives in 2014 (Issues to Be Addressed) Revamp amenity care materials products and accelerate downstream expansion In light of the growing diversity of living environments, markets for amenity care materials products are expected to grow. In order to expand and strengthen our business foundation, we will create brands for target sustainable markets while working to retain customers. In the new medium-term management plan launched in 2014, we will develop repeat-use applications focusing on deodorants and fungicides (the efficacy of which can be demonstrated), and promote expansion from the sale of agents to fabricated products, including masterbatch and dispersing liquids. In addition, we will rebuild the Advanced Chemicals business by promoting branding through the provision of consistent technological services, extending to usage advice and efficacy evaluation. With an eye to accelerating the establishment of functional materials product brands that enable satisfaction based on demonstrable efficacy, we will accelerate the development of downstream products branding like KESMON MASK through collaboration with industrial product manufacturers to meet the needs of industry. (1) Retain steady customers by developing and establishing umbrella amenity brands (2) Revise sales methods and provide customers with easy-touse products and services (3) Design and commercialize industrial amenity care products as part of an expansion of downstream products and develop new marketing methods (Internet, catalog sales, etc.) Strengthen the Foundation of the EC Business We will strengthen differentiation with competitor products for the demand which is expected to increase in automotive LiB applications in the future. Toagosei Co., Ltd. 18