14.5 Operating income 15.0 18.5 3.4 3.7 4.8 6.3 5.8 6.7 3.3 3.9 1.3 1.4 5.0 2.0 (Billions of yen) 151.1 Consolidated net sales 154.0 170.0 45.6 45.8 48.0 59.1 60.8 69.0 16.5 17.5 26.5 26.5 21.0 28.0 3.4 (Billions of yen) 3.4 4.0 The medium-term management plan “All TOA 2016: Strengthen Business Structure then Create New Products” “Strengthen Business Structure then Create New Products” In order to shift to a business structure able to stably ensure high earnings levels in any economic environment, the Toagosei Group formulated the new medium-term management plan, “All TOA 2016: Strengthen Business Structure then Create New Products,” which will be implemented over a three-year period from 2014 to 2016. Under the new plan, we will focus on strategies to “strengthen” the Group’s business structure to boost cost competitiveness by thoroughly improving the efficiency of existing businesses as well as “create” new businesses able to generate high profitability by accelerating new product development without being influenced by the external environment of the economy. We aim to achieve consolidated performance targets of \170.0 billion in net sales, \18.5 billion in operating income, and an operating income ratio of 11% in 2016 by aggressively promoting the growth strategies outlined in the new plan. A 2016 Targets Q2 Consolidated net sales \170.0 billion Operating income ratio 11 % Operating income \18.5 billion Net income \13.0 billion ■ Commodity Chemicals ■ Acrylic Products ■ Specialty Chemicals ■ Plastics ■ Other 2013 (results) 2013 (results) 2014 (projected) 2014 (projected) 2016 (target) 2016 (target) 1 Theme 2 Performance Targets Toagosei Co., Ltd. 8