December 6, 2011
SEKISUI CHEMICAL CO., LTD.

Business Development in the IT (electronic materials) Field

■	Pivotal shift toward mobile solutions in the FPD field
■	Focus on the energy field
■	Expanding production capacity for "Conductive Fine Particles" at the Taga Plant, production site focused on the IT field
■	Aiming for sales of 53 billion yen in the IT field in FY2013

The High Performance Plastics Company (President: Takayoshi Matsunaga) of SEKISUI CHEMICAL CO., LTD (President: Naofumi Negishi , hereinafter called the company) has set a goal for expansion of the 3 strategic business fields IT (IT related materials), AT (automotive materials) and MD (medical products), in the Group's 5 year Midterm Management Plan GS21-SHINKA! started in 2009, and aims to grow stronger by through active strategic investment.
In the past, the company's IT related businesses have been centered on fine particle clusters, sealing materials, bonding tapes and protective films for the flat panel display (hereinafter called FPDs) field, and development of performance materials in the circuit board and semiconductor field (*1).
Recently in the FPDs market which we had been focused on, the demand for large panels for televisions and mid-size panels for computers has slumped. However, demand for small and mid-size panels for tablet PCs and smartphones is increasing.
The company's groups are responding to this market environment, and are working on the following measures for our IT related business operations that should be expanded.

*1: Circuit board and semiconductor field

-

PCBs to which diverse electronic parts are mounted are used to form electrical circuits. Sekisui Chemical has developed the resins and tapes necessary to manufacture these PCBs.

1. Shift towards the mobile solutions field

In the FPD field, we are focusing on mobile solutions such as parts for mid and small size panels used in tablet PCs and smartphones where the market is projected to grow in the future.
Related to touch panels; we acquired Suzutora Company in April of this year, established SEKISUI NANO COAT TECHNOLOGY CO., LTD. (Hereinafter called SNT Company), and along with the expansion of their ITO film products we are aiming for expansion of our market share of double-sided tape products through collaboration. Related to smartphones; in addition to high performance double-sided tape, we are focused on expansion of conductive fine particles and sealing materials to support organic electroluminescence screens.
With this, we are planning to increase sales in FY2010 of 5 billion yen for mobile solution related products to 16 billion yen (Composition ratio increase from 13% to 30%).

2. Focus on the energy field

We plan to speed up new product development, and expand our product lineup in the energy field where the market for energy related materials like LEDs, solar panels and lithium-ion batteries is projected to grow in the future. We are focused on heat dissipation board sheets, sealant and resist as LED materials, and, rear sheet integrated sealant, low resistance ITO films, and separators as battery materials.
With this, we are planning to increase sales in FY2010 of 3 billion yen for energy related products to 8 billion yen (Composition ratio increase from 8% to 15%).

3. Investment for growth

At the Taga Plant which is our core production site focused on the IT field, we are expanding production facilities for the conductive fine particles used in mobile devices. In the past, production facilities for double-sided tape clean coating equipment and mold releasing film used for FPC (flexible printed circuits *2) have been expanded at this site. For future growth, at SNT Company we are planning on consistently increased investment for ITO film sputtering (*3) and coating equipment expansion.

*2: Flexible printed circuits	-	A printed circuit board that is flexible and can change shape.
*3: Sputtering	-	A method of forming a film on an adherend by positioning the metal to which a thin membrane will be applied (ITO: Indium Tin Oxide, etc.) as the target, and striking it with high-energy ion particles to knock out nuclei and molecules of the target surface.

The Taga plant, a production site focused on the IT field, in Shiga prefecture.
4. Business objective

The company is aiming for sales in the IT field of 53 billion yen in FY2013.

[Reference]

1)	Product positioning change (FY2010 to FY2013)

2)	List of IT related products production sites

Plant name Location Items produced Taga Plant Shiga prefecture, Inukami-gun Taga-cho Double-sided tape and mold releasing film Shiga Minakuchi Plant Shiga prefecture Koka-shi Conductive fine particles, LCD spacer and Sealant Musashi Plant Saitama Prefecture, Hasuda-shi Photo mask type protective film, Optical type protective film SNT Company Aichi prefecture, Gamagori-shi ITO film

Press Contact Sekisui Chemical Co., Ltd. Corporate Communication Department, Public Relations Group Fax: +81-3-5521-0510

Disclaimer This press release 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.