present situation and growth strategy in the automotive ... · present situation and growth...

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Present Situation and Growth Strategy Present Situation and Growth Strategy in the Automotive Materials Business in the Automotive Materials Business Yuji Enatsu Yuji Enatsu Director Director Responsible for Automotive Responsible for Automotive- Related Business Units, Related Business Units, General Manager of International Dept. General Manager of International Dept. High Performance Plastics Company High Performance Plastics Company Sekisui Chemical Co., Ltd. Sekisui Chemical Co., Ltd. 12 December 12 December 2007 2007 -1- SEKISUI CHEMICAL GROUP Contents Contents 1. High Performance Plastics Company High Performance Plastics Company - Midterm Management Plan Midterm Management Plan 2. Automotive Market Automotive Market Environment Environment 3. Sekisui Sekisui’ s Automotive Materials Business s Automotive Materials Business 4. Automotive Materials Business Targets 4. Automotive Materials Business Targets - AT AT1000 1000 Plan Plan - 5. AT AT1000 Plan Strategy 1000 Plan Strategy 6. Sekisui Automotive Products with Automotive Products with “ Global Global Prominence Prominence”

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Present Situation and Growth Strategy Present Situation and Growth Strategy in the Automotive Materials Businessin the Automotive Materials Business

Yuji EnatsuYuji EnatsuDirector Director

Responsible for AutomotiveResponsible for Automotive--Related Business Units,Related Business Units,General Manager of International Dept.General Manager of International Dept.

High Performance Plastics CompanyHigh Performance Plastics CompanySekisui Chemical Co., Ltd.Sekisui Chemical Co., Ltd.

12 December 12 December 20072007

- 1 -SEKISUI CHEMICAL GROUP

ContentsContents

1. High Performance Plastics Company High Performance Plastics Company --Midterm Management PlanMidterm Management Plan

2. Automotive MarketAutomotive Market EnvironmentEnvironment

3. SekisuiSekisui’’s Automotive Materials Businesss Automotive Materials Business

4. Automotive Materials Business Targets 4. Automotive Materials Business Targets -- ATAT10001000 Plan Plan --

5. ATAT1000 Plan Strategy1000 Plan Strategy

6. Sekisui Automotive Products with Automotive Products with ““Global Global ProminenceProminence””

- 2 -SEKISUI CHEMICAL GROUP

172.3 181.8197.7

218.3 245.5

280.0250.0

30.0

10.4 12.314.8

17.520.7

25.0

12.0%

6.1% 6.6%7.5% 8.0%

8.4%

8.9%

0

50

100

150

200

250

300

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008

OperatingIncome Margin

10

20

30

40

50

High High Performance Plastics Company Performance Plastics Company --Midterm Management Plan Midterm Management Plan --11

Sales & Operating Income TrendsSales & Operating Income Trends

Sales (billion yen)

Original Plan

Operating Income(billion yen)

Sales

Operating Incom

e

Forecast

GS21GS21--Go! FrontierGo! Frontier

Sales (+14% year-on-year)

Operating Income(+21% year-on-year)

- 3 -SEKISUI CHEMICAL GROUP

““Continued Offering of Chemical Solutions Continued Offering of Chemical Solutions to Major Custo Major Customerstomers””

‘Chemistry for your Win’

Business ExpansionBusiness ExpansionReinforcing 3 strategic businessesGeneration of new products & new businessExpansion of overseas business

Structural ReformationStructural ReformationDisposition of unprofitable businessChangeover of business structures

‘Premium CompanyOperating Income Margin 12%’

‘Premium CompanyOperating Income Margin 12%’

GS21GS21--Go!Go! FrontierFrontier

Company PolicyCompany Policy

High High Performance Plastics Company Performance Plastics Company --Midterm Management Plan Midterm Management Plan --22

- 4 -SEKISUI CHEMICAL GROUP

AT

36.0 40.0 45.065.0

13.0 17.0 18.5

43.0

12.012.0 11.0

42.0

68.057.550.5

23.527.0

30.011.524.5

37.0

0

20

40

60

80

100

120

140

160

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008

IT

MD

85.5(39%)

109.0(44%)

135.0(48%)

61.0(35%)

69.0(38%)

74.5(38%)

150.0

Sales Trend in the 3 Strategic Business Fields

Reinforcing Strategic BusinessReinforcing Strategic Business

(billion yen)

*( ) : Ratio of the 3 Strategic Business Fields to Total Sales

Midterm PlanForecast

Medicalproducts field

IT-related materials field

Automotive materials field

3 Strategic Business Fields in FY2006,6611%% of Division Operating Income

Acquisition of Daiichi Pure Chemicals

AT Business Achieved Midterm Plan Targets One Year Ahead of Schedule

GS21GS21--Go!FrontierGo!Frontier

+18% year-on-year

High High Performance Plastics Company Performance Plastics Company --Midterm Management Plan Midterm Management Plan --33

- 5 -SEKISUI CHEMICAL GROUP

6

0

3

3

FY2005

No. of Top-share Products Worldwide

10

2

4

4

FY2008

Products with Top Market Share Worldwide

(Reagents for Cholesterol Tests, Test Columns for Diabetes)MD

Total

Spacers for Liquid Crystal Displays,Electrically Conductive Micro Particles for Liquid Crystals, General Purpose Butyral Resins,(UV Sealing Agents)

IT

Interlayer Film for Automobiles, High-performance Interlayer Films,Cross-linked Polyolefin Foams (PP Foam)

AT

Expanding the Number of Products with TopExpanding the Number of Products with Top--share Worldwideshare Worldwide

High High Performance Plastics Company Performance Plastics Company --Midterm Management Plan Midterm Management Plan --44

( ) shows products expected to become No.1 in 2008

- 6 -SEKISUI CHEMICAL GROUP

Plastic Vacuum Blood Collection TubePolyolefin Materials for Medical Applications

Retardation Film

Cross-linked Polyolefin FoamInterior and Exterior Materials for Automobiles

Precision Molding

Technology

Low Smell, Ultra-low VOC TapeInterlayer Film for Automobiles

Porous Microsphere for Exhaust Gas FiltersFoamed Particles for Weight SavingsSolar Control Film for Automotive Applications

AT (Automotive Materials Field)

Medical Tapes

Adhesive Tape for ProtectionDouble-sided Adhesive Tapes for LCD & Semiconductors

Adhesion Technology

Latex Particles for DiagnosticsTest Columns for Diabetes

Point of Care Testing

Spacers for a Liquid Crystal DisplaysElectro Conductive Micro ParticlesJoining Particles for Substrates

Micro Particle Technology

MD (Medical Products Field)

I T (IT-related Materials Field)

Core Technology and Main ProductsCore Technology and Main Products

High High Performance Plastics Company Performance Plastics Company --Midterm Management Plan Midterm Management Plan --55

*VOC : Volatile Organic Compound

- 7 -SEKISUI CHEMICAL GROUP

Automotive MarketAutomotive Market EnvironmentEnvironment--11

Global MarketGlobal Market

Trend of Automobile Production in Each Region.

0

10

20

30

40

50

60

70

80

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

South Asia

China/ Taiwan

Middle & East Europe

South America

Middle East/Africa

North America

Western Europe

Japan/Korea

Unit: one million cars3.2% CAGR

3.8% CAGR

0.7% CAGR

* Source: CSM World-wide

Market Transition•Growth of 3% p.a. Globally.•Frontiers of Growth Centered Market Expansion.

•Growth Rate is Low in North America,Western Europe, Japan & Korea, but Volume is Still High.

Market Characteristics・Safety-specifications are

Demanded on a Global Basis Without Regard to Locality.

- 8 -SEKISUI CHEMICAL GROUP

ITApplication of Electronics

Automotive Market TrendsAutomotive Market Trends

Needs for Automotive PartsEnvironment

Growth of Automotive Industry

・Reducing CO2, Improving Fuel Efficiency, Treatment of Emissions

・Cutting Weight of Parts・Reduction in Thermal Loading・Heat Dispersion & Resistance

Increase in Environmentally Responsive CarsDiesel, Hybrid, Electric etc.

<challenges in the automotive industry> Overcoming Trade-offs

Safety•Prevention & Safety

•Pedestrian Protection

Comfort・Interior

Environment•Consciousness of

Parts Design

Increasing Environmental Burden

Automotive MarketAutomotive Market EnvironmentEnvironment--22

- 9 -SEKISUI CHEMICAL GROUP

SekisuiSekisui’’s Automotive Materials Businesss Automotive Materials Business--11

Safety•Interlayer Film for Laminated Glass

•Front & Rear Bumperetc.

Comfort•Low Smell, Ultra-low VOC Tape•PP Foam for Instrument Panel

•Acoustic & Solar Control Interlayer Film•Acoustic Control Interlayer Film

etc.

Family of ProductsFamily of Products

We Supply More than 50 Material and Product Items

Environment•PP Foam for Instrument Panel

•Acoustic & Solar Control Interlayer Film•Low Smell, Ultra-low VOC Tape

•Roof Console•Console Box

•Foamed Front & Back Door-trim•Light Weight Package Tray

etc.

- 10 -SEKISUI CHEMICAL GROUP

PP Foam with Sharp-edged Contours

Technology PackageTechnology Package

Base Materials with Lightness and Stiffness

Metal Alternative Plastic Parts

Low Smell, Ultra-low VOC Tapes

Composite Material Design Technology

Foaming Control Technology

Plastic Design TechnologyInjection Molding Technology

Precision Polymerization Technology,Coating Control Technology

Light-weight Thermo-expandable Microsphere, Porous Microsphere for Exhaust Gas Filters

Solar Control Interlayer Films

Acoustic Interlayer Films

Plastic Design TechnologyMultiple-layer Molding Technology

Plastic Design Technology Injection Molding Technology

Multi-layer Extrusion Technology

Micro Particle Technology

Acoustic & Solar ControlInterlayer Films

Light-weight Vibration Reduction MaterialsComposite Design Technology

Meeting New Market Needs Through Prominent Technology

SekisuiSekisui’’s Automotive Materials Businesss Automotive Materials Business--22Responding to New Needs from the Market:Environment, Safety and Comfort in

Automobiles

Expanding the Automotive

Materials Business

- 11 -SEKISUI CHEMICAL GROUP

Interlayer Film DivisionInterlayer Film for Laminated GlassHigh-performance Interlayer Films

Foam DivisionCross-linked Polyolefin FoamsChemical Specialty Division

Thermo-expandable MicrospherePorous Microsphere for Exhaust Gas Filters

Sekisui Techno Molding Co., LtdLarge-Sized Bumpers with Sophisticated Design

Metal Alternative Light-Weight Plastic Parts

Industrial Tape DivisionLow Smell & Ultra-low VOC Tapes

Related Business UnitsRelated Business Units

Promoting the Business with Both our High Expertise and Strong-cooperative System, like Warp and Weft

Automotive-related Materials Business

SekisuiSekisui’’s Automotive Materials Businesss Automotive Materials Business--33

- 12 -SEKISUI CHEMICAL GROUP

Organization SystemOrganization System Automobile Manufacturers

Marketing Group

Primary Suppliers

Sales Department Business Unit

Solution Proposal Obtaining Customer Needs

Technical Development

Group

Reinforcing the Present Business Creating New Businesses

Organizational Structure Supports “Chemistry for your Win”

SekisuiSekisui’’s Automotive Materials Businesss Automotive Materials Business--44

AT Materials Development Center

IT Materials Development Center

Materials Technology

Center

Production Technology

Center

- 13 -SEKISUI CHEMICAL GROUP

Brazil

India

U.K.

Australia

Taiwan

Malaysia

Interlayer Film for Automobiles: No.1 Share in the WorldNo.1 in Japan, No.1 in Asia (ex Japan), No.1 in Europe, No.3 in North & South America

PP Foams for Automobiles: No.1 Share in the WorldNo.1 in Japan, No.1 in Asia (ex Japan), No.1 in Europe,No.1 in North & South America

CanadaUSA

Mexico

423927Sales Bases

21

13

2005

2220Development & Technical Service Bases

1610Production Bases

20072003Year

Production BasesSales Bases

Global OperationGlobal Operation* Sales Bases Include Subsidiaries of

Overseas Companies

* Production Bases Include Raw Materials Plants

Development & Technical Service Bases

SekisuiSekisui’’s Automotive Materials Businesss Automotive Materials Business--55

Promoting Global Business Positioning Close to Users

China Korea

Japan

Hong KongSingapore

Thailand

The Netherlands

France

ItalySwitzerland

Spain

Germany

- 14 -SEKISUI CHEMICAL GROUP

•『JSAE AUTOMOTIVE ENGINEERINGEXPOSITION』 (first entry)

360 400450

505575

680650

1000

0

200

400

600

800

1000

FY2 0 0 2 FY2 0 0 3 FY2 0 0 4 FY2 0 0 5 FY2 0 0 6 FY2 0 0 7 FY2 0 0 8 FY2 0 0 9 FY2 0 1 0

Automotive Materials Business Targets Automotive Materials Business Targets -- ATAT10001000 Plan Plan --

(100 million yen)

Global Strategic

Investment•Capital Participation in Shanghai Holy Plastics Co. Ltd.

•Capital Participation inYoungBo Chemical in Korea

•Interlayer Film Plant in China

•Foam Plant in China

•Raw Material Plant in the Netherlands for Interlayer Film•Interlayer Film Plant in the US

•Establishment of AT Material Development Center

•Establishment of Sales System for Application Areas

•Establishment of Marketing Group

AT1000 PlanAT1000 Plan ((formulated Jan. 2006formulated Jan. 2006))

•Tightening Relationships with Users

•Promoting New Product Development

•Expanding Production Closer to Demand Locality•Promoting M&A

FY2002 FY2003 FY2004 FY2005 FY2006 FT2007Forecast

FY2008Original Plan

FY2009 FY2010

Automotive Material Business Sales

•Establishment of the Planning Dept. for Automotive Related Business

•Interlayer Film Plant in Thailand

Received Most Outstanding Exhibitor Awardfor Four Consecutive Years

Prominent Marketing

•Establishment of Subsidiary in India

- 15 -SEKISUI CHEMICAL GROUP

AATT1000 Plan Strategy1000 Plan Strategy--11

Reinforcing the Global NetworkReinforcing the Global Network・Promoting Further Optimization by Securing Bases (for development, production and sales)in each Demand-area of the World・Utilizing Leading Position in Industries (No.1 share) through Early Reinforcement ofthe Global Network

Generating Demand in New PartsBased on our Technological Capability

•The World-first Development of Cross-linked Polyolefin Foam (1965)

•Generating Demand for Parts Utilizingour Technology and Strong Relationshipswith Users

This can be Processed into Various Shapes and Therefore can be Applied to Car Interiors

■ Light Weight Vibration Reduction Material

Introducing New Products with Environmental Responsiveness・Introduced New Products Responding to Weight-savings and Vibration-deadening Needs・Aggressively Expanding Applications for New Automotive Parts

Further Increase in Share Mainly in the Further Increase in Share Mainly in the Frontiers of Growth MarketsFrontiers of Growth Markets(including possible M&A)

Foaming Polyolefin Plant Exclusively for Automobiles made

in China (Jan. 2006)

Increase Share by Offering Comfort-enhancing and Environmentally Friendly Products

Foam BusinessFoam Business

Production Bases

Expanding Expanding Sales of Sales of Existing Existing ProductsProducts

Enabling the Development of Each Interior SectionWeight-saving and Sophisticated

Appearance have been Realized

Cultivating Cultivating the Existing the Existing

Market Market More DeeplyMore Deeply

Capturing Capturing New New

MarketsMarkets

PP Laminated Film

Special Foam(elastomer foam)Vibrating BaseAdhesion

Putting New Putting New Products on the Products on the

MarketMarket

Global 9 Plant System

- 16 -SEKISUI CHEMICAL GROUP

ATAT1000 Plan Strategy1000 Plan Strategy--22

Interlayer Film BusinessInterlayer Film Business

Accelerating the Further Development of Global OperationsExpanding Sales of High-performance Films

Developing and Introducing New Types of High-performance Films

45%40%Our Share (automotive applications)

22%

240 k.tons

2010

15%Composition Ratio ofInterlayer Film in HPP

200 k.tonsGrowth of Global Market(estimate)

2006Year

Total N & S AmericaDemand:Approx. 70 k.tons

Our Share:Approx. 20% (No.3)

up

JapanDemand:Approx. 20 k.tonsOur Share:

Approx. 80% (No.1)

We Established Bases in each Demand-area of the World Ahead of Competitors

Raw Material Plant in the Netherlands Opened in Jan. 2007

up

Asia Demand

Approx. 30 k.tonsOur Share:

Approx. 50% (No.1)

up

We Applied our Unique TechnologicalAbility to the Business.

Production System: 6 Intl. Film Plants & 2 Materials Plants

Expansion of Production Basesis Under Consideration for the Frontiers of Growth Markets

Interlayer Film Plant Raw Mat. Plant

Our Share:Approx. 40% (No.1)

Interlayer Film Plant in the US Opened in Oct. 2007

Film Capacity for 6 Million Cars p.a.

EuropeDemand :Approx. 80k.tons

- 17 -SEKISUI CHEMICAL GROUP

ATAT1000 Plan Strategy1000 Plan Strategy--33

Plastic Seat-backs

PlasticEngine Gears

Expanding Joint Development with Key Customers, Opening up Frontiers of Growth Markets

Specific Japanese Users(Automobile, Motorcycle, System-supplier)

Sophisticated Appearance

Glove Compartments

Sophisticated Appearance

Package Trays

Light WeightFront Bumpers

Light Weight Grills

NeedsWeight-saving, Design (comfort), Low Cost

Opening Frontiers of Growth Overseas(Automobile, Motorcycle, System-supplier)

Technology Contributing to the Environment

•Realizing Thinner-walled Partsand Weight-savings

•Proposing Materials Substituting for Metal Parts

•Injection molding Technologyfor High-expansion Foams

•Mold Design Technology•Overall Management Ability through Product Design~ Mold Design ~ Production

Increasing In-store Share

Increasing Increasing InIn--store Sharestore Share

Proposals to use Plasticsfor Parts. Supplying High-performance Plastic Parts-Responding to Customization-Technological Licensing,

Joint Development

Proposals to use Plasticsfor Parts. Supplying High-performance Plastic Parts-Responding to Customization-Technological Licensing,

Joint Development

Accumulation of Achievements and Know-how; Brushing-up Development and Designing Capability

Plastic Molding Business

Opening of Aichi Plant (Apr. 2008)

Sekisui Techno Sekisui Techno MoldingMolding

4th Domestic Plant

- 18 -SEKISUI CHEMICAL GROUP

ATAT1000 Plan Strategy1000 Plan Strategy--44Growth BusinessGrowth Business

Thermo-expandable Microspheres(Chemical Specialty Division)

Low Smell, Ultra-low VOC Tapes(Industrial Tape Division)

Development, Market Introduction and Sales Expansion of High-value-added Growth Products

Reducing the Quantity of Resin by Adding Hollow Particles – Weight-savingContributing to Weight-savings in Plastic Parts (30%)Realizing High-design Properties-Eliminated the Problem of Poor Appearance Caused by Chemical (gas) Foaming

Reduced not only the 13 Substances (organic compounds) Specified by the Ministry of Health, Labor and Welfare, but also Total VOC.Thoroughly Reduced Smells and ImprovedInterior Air-quality.

Growth Products and Products Contributing to the Environment and Comfort

For Adhesion of Parts in Closed Spaces (e.g. car and

house interiors)

For Adhesion of Sealing Materials for Air Conditioners

For Adhesion of Sealing Materials such as Polyurethane Foam

Low-boiling hydrocarbon

Thermoplastic polymer cell

HeatingHollow Balloon

Thermo-expandable Microsphere contributing to the weight saving of interior and exterior parts Improving Comfort of Car Interiors by Realizing

Low Smell and Ultra-low VOC

- 19 -SEKISUI CHEMICAL GROUP

Sekisui Automotive Products with Global Prominence

Tadahiko YoshiokaTadahiko YoshiokaHead of Planning GroupHead of Planning Group

Automotive Materials Development Center Automotive Materials Development Center High Performance Plastics CompanyHigh Performance Plastics Company

12 December, 200712 December, 2007

- 21 -SEKISUI CHEMICAL GROUP

Thermo-expandable Microspheres

Growth Business Porous Microspheres for DPF

KeywordsProductsBusiness Groups

Metal Alternative Plastic Parts

Acoustic & Solar ControlInterlayer Films

Light-weight Vibration Reduction Materials

Low Smell, Ultra-lowVOC Tapes

High-expansion Foamed Molded PartsPlastic Molding

Business

Normal Interlayer FilmsInterlayer Film Business

PP FoamsFoam Business

Automotive Products with Global Prominence

Environ Environ --mentment

Environ Environ --mentment

Environ Environ --mentment

Environ Environ --mentment

Environ Environ --mentment

Environ Environ --mentment

Environ Environ --mentment

Environ Environ --mentment

Environ Environ --mentment

SafetySafety

SafetySafety

SafetySafety

ComfortComfort

ComfortComfort

ComfortComfort

ComfortComfort

ComfortComfort

ComfortComfort

ComfortComfort

- 22 -SEKISUI CHEMICAL GROUP

インパネ

Cross-linked Polyolefin Foam (1st in the World: 1965)Global Operation for Development, Production and Sales

(Global Share No. 1)

Foam Business: Foam Business: PPPP FoamsFoams

Foaming Control Foaming Control TechnologyTechnology

InstrumentPanel

Door Trim

Moldability

Heat Insulation

Chemical ResistanceDesign Properties

Cushion Elasticity

Light Weight

Prominence of Prominence of SekisuiSekisui PP foamPP foam

EnvironEnviron--mentment ComfortComfort

Achieved both Design-sophisticationand Cushioning Properties

(Unique to Sekisui)

Tight Contact with Plastic Parts without Gaps

- 23 -SEKISUI CHEMICAL GROUP

Foam Foam Business:Business: LightLight--weight weight VVibration ibration RReduction eduction MMaterialsaterials

Foaming Control TechnologyFoaming Control Technology

Composite Design TechnologyComposite Design Technology

Applied to Roof Panel Sound Insulation Motor Cover

Presenting Solutions for Customers, Currently under Evaluation for Adoption Sound Insulation for Increasing Motor Noises

PP Laminate FilmPP Foam

Special Elastomer Foam

Vibrating Parts (roof panel etc.)

Adhesion

Possible to Form into Complex Shapes

Weight Reduced by 50%from Existing ProductsGood Sound Insulation

(vibration reduction)Both Light Weight and Vibration Reduction Achieved Simultaneously

Formable into Complex Shapes

EnvironEnviron--mentment ComfortComfort

- 24 -SEKISUI CHEMICAL GROUP

Global Standard Prevents Scattering of GlassBlocks Over 99% of UV RaysImpact Energy AbsorptionSmash & Grab Prevention

Interlayer Film Business:Interlayer Film Business:Standard Interlayer FilmStandard Interlayer Film

Windshield

Door Window (partial)

Sunroof

Material Design TechnologyMaterial Design Technology

Adhesion Control TechnologyAdhesion Control Technology

Laminated Windshield is Mandatoryin Global Emerging Markets

Interlayer FilmInterlayer Film

GlassGlass

GlassGlass

Interlayer Film for Laminated Glass

Environ Environ --mentment SafetySafety

Thickness: 0.76mm

ComfortComfort

- 25 -SEKISUI CHEMICAL GROUP

Outside

Inside

Noise

No.1 share (worldwide)based on World-first Technology

and Global Operation

Interlayer Film Business:Interlayer Film Business:Acoustic & Solar Control Acoustic & Solar Control Interlayer FilmInterlayer Film

Environ Environ --mentment SafetySafety ComfortComfort

NanoNano--dispersion Technologydispersion Technology

MultiMulti--layer Extrusion Technologylayer Extrusion Technology

1. Normal1. NormalFilm LayerFilm Layer

2. Colored Layer

3. Normal 3. Normal Film LayerFilm Layer4. Sound

Insulation Layer5. Normal Film Layer5. Normal Film Layer

Nano-dispersed Heat Shielding Particles

Cross Section of Laminated GlassCross Section of Laminated Glass

5-layer Structure (world-first) Sound Insulation & Heat Shielding Function (world-first)

Ultraviolet Ray

Glass

Glass

Electromagnetic Wave

Quiet No CommunicationFailureReduced Frizzling Heat

Visible Light

Infra-red Ray

Increasing Fuel Efficiency by approx. 3% (equivalent to 100kg of weight-savings)

Reducing Skin Irritation from Direct SunlightReducing Sound Levels by 5dB

- 26 -SEKISUI CHEMICAL GROUP

Plastic Molding Business:Plastic Molding Business:High-Expansion Foamed Molded Parts

Both High-expansion and Good Surface Appearance Achieved Simultaneously

30% on avg. Weight-savings

High Precision Injection High Precision Injection Molding TechnologyMolding Technology

Mold Design TechnologyMold Design Technology

Exterior:Bumper, etc.

Interior:door trim, etc.

Environ Environ --mentment SafetySafety

HighHigh--expansion Foam expansion Foam TechnologyTechnology

- 27 -SEKISUI CHEMICAL GROUP

Weight-savings of 20% Compared with Aluminum Die-cast PartsFreedom of DesignParts Integration (reduced number of parts)

Plastic Molding Business:Plastic Molding Business:Metal Alternative Plastic PartsMetal Alternative Plastic Parts

High Precision Injection High Precision Injection Molding TechnologyMolding Technology

Composite Compounding TechnologyComposite Compounding Technology

Plastic GearSeat-back:Nylon Resin + Fiber-glass

EnvironEnviron--mentment ComfortComfort

- 28 -SEKISUI CHEMICAL GROUP

Growth Business:Growth Business:ThermoThermo--expandexpandableable MicrospheresMicrospheres

Hollow Balloon

Microsphere Microsphere Foam TechnologyFoam TechnologyInjection Molding Injection Molding

TechnologyTechnology

Trim etc.

EnvironEnviron--mentment ComfortComfort

Weight Reduction for Interior Parts of 30%

Good Surface Appearance Realized- Preventing the “silver” Surface

caused by Conventional Gas-foaming

Applied Thermo-expandable Microsphere Technology to Automotive Injection Molding Parts (world-first)

Molded Interior Parts

Encapsulated Encapsulated GasGas

Cells of Thermo-expandable

MicrosphereCross Section

Heat

- 29 -SEKISUI CHEMICAL GROUP

Growth Business: Growth Business: Porous Particles for DPFPorous Particles for DPF

MicroMicro--porous Particle Technologyporous Particle Technology

Thermal Decomposition Thermal Decomposition Control TechnologyControl Technology

Improved Cleaning Capabilityfor Exhaust Gas (effective PM trapping)Weight Reduction for FilterShorter Processing Time

Exhaust G

as

Clean G

as

DPF (cross section)

Filter Made with Porous Particles

Conventional Filter

Ceramics PM (soot)

Pores are Made by Mixing with Ceramics and Firing

Micro-porous ParticleDPF

Pores (air space) Caused by the Disappearance of Particles

EnvironEnviron--mentment

※DPF:Diesel Particulate Filter

- 30 -SEKISUI CHEMICAL GROUP

Growth Business:Growth Business:Low Smell, UltraLow Smell, Ultra--low VOC Tapelow VOC Tape

0

600

ppm

Air Conditioning Unit

Generated VOC VolumeGenerated VOC Volume(90(90℃℃/30 minutes heating)/30 minutes heating)

9090%% ReductionReduction

Conventional TapeConventional Tape

※Total VOC Quantity in Conversion to Toluene.

LSV LSV TTapeape

Structure

Application Example:For the Adhesion of Polyurethane Foam

World-first Market Introduction of Environmental Friendly Tape (LSV tape)Reduced not only the 13 Substances (VOC) Specified bythe Ministry of Health, Labour and Welfare but alsoAll VOCs.Thoroughly Reduced Smell and Improved Car InteriorAir Quality.

Adhesion TechnologyAdhesion Technology

Coating Control TechnologyCoating Control TechnologyReleasing Liner

Base Material: Non-woven Fabric Base

Adhesion Material: Acrylic Adhesive Layer

EnvironEnviron--mentment ComfortComfort

Indispensable for Parts Influencing Air Quality

- 31 -SEKISUI CHEMICAL GROUP

Weight-saving, Use of Plastic

Heat Load Reduction

High PerformanceExhaust Gas Filters

Heat Dispersion, Heat Resistance

Reducing CO2Improving Fuel EfficiencyEmissions Treatment

Bio-materials

Market Trend Match for TechMarket Trend Match for Tech--based Sekisui Productsbased Sekisui ProductsTrends Materials in Need Sekisui Technology

Preventive SafetyPedestrian Protection

SilenceHealthDesign Consciousness

ImpactAbsorption

• Thermo-expandable Microsphere

• High-expansion Foam w/good Appearance

• Composite Material Design

• Nano-dispersion• Hollow Micro-

particles

• Multi-layer Molding/extrusion

• Compound Adhesive

• Foaming Control

Steep Rise of Oil Prices

Self-imposed Regulation of VOC

by JAMA (’07-)

NCAP

Noise & VibrationReduction

Low VOC

High Precision MoldingSharp-edged PP Foams

EnvironmentEnvironment

ComfortComfort

SafetySafety

Electronics

etc.

etc.

Acoustic Interlayer Films

Low Smell, Ultra-low VOC Tapes

High-expansion FoamMolded Parts

Light-weight Vibration Reduction Materials

Solar Control Interlayer Films

Porous Particles for DPFs

New Target

New Target

Note: Tier2Bin5: US EPA Emissions RegulationNew Fuel Cost Standard: Fuel Cost Improvement Target for 2015 from the 2004 Level in Japan.NCAP: New Car Assessment Program (Public Collision test in Japan, Europe)JAMA: Japan Automobile Manufacturers Association

Movement for Weight-savings in Industry

• Foam MoldingControl

•CompositeMaterial Design etc.

New Target

Tightening of RegulationsFuel efficiency: New Fuel

Efficiency Standards etc.

Emissions: Tier2Bin5 etc.

- 32 -SEKISUI CHEMICAL GROUP

Disclaimer: This presentation may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.