CHEMICAL INDUSTRY OF JAPAN

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1 CHEMICAL INDUSTRY OF JAPAN 2004

2 Supporting our wealthy and comfortable life, the chemical industry, which is living together with nature, fosters the dream of mankind. 1

Contents 1 2 3 4 5 6 7 8 9 10 11 12 13 Total Production (Shipments) of Chemical Industry Amounts to approx.

3 Contents Total Production (Shipments) of Chemical Industry Amounts to approx. Yen 23 Trillion Chemical Products That Meet the Needs of Various Fields Shipment by Prefecture Japan's Chemical Industry, the World's Second Biggest in Shipments after the U.S.A. About Yen 1,800 Billion Spent for Research and Development Japan Is An Energy-Saving Superpower Chemical Industry Ranks High in Plant Investment About 350,000 Workers Are Employed Labor Productivity / Working Hours Trade Direct Overseas Investment Amounts to Yen 230 Billion, While Direct Domestic Investment Amounts to Yen 420 Billion Overseas Business Activities Operating Profit Ratio Summary of Major Indices Chemical Industry Supports Our Life and Other Industries, Protects the Earth and Realizes Our Dream About Responsible Care Japan's chemical industry vs. all manufacturing industries in 2002 (thousand) (thousand) (Source) Ministry of Economy, Trade and Industry [Census of Manufactures] Ministry of Internal Affairs and Communications (MIC), Statistics Bureau [Survey of Research and Development] Ministry of Finance [Financial Statements Statistics of Corporations by Industry] Ministry of Economy, Trade and Industry [White Paper on International Economy and Trade] (Note) Data of plant investment and R&D expenditure are those of FY 2002.(Apr.1,2002-Mar.31,2003) 2

Total Production (Shipments) of Chemical Industry Amounts to approx. Yen 23 Trillion Chemical industry's shipment value in 2002 amounted to approx. 23 trillion yen, accounting for approx. 8.

4 Total Production (Shipments) of Chemical Industry Amounts to approx. Yen 23 Trillion Chemical industry's shipment value in 2002 amounted to approx. 23 trillion yen, accounting for approx. 8.4% of entire manufacturing industry. Shipment value of the chemical industry in the manufacturing industries in 2002 [ billion, %] 46,041 (17.1) 47,997 (17.8) 22,748 (8.4) 22,984 (8.5) 25,477 (9.5) 7,678 (2.9) 9,628 (3.6) 10,963 (4.1) 13,737 (5.1) 2,478 (0.9) Textiles Ceramics, Clay & Stone Products Plastic Products Iron & Steel Fabricated Metal Products Chemical Industry Foods Industrial Machinery Electrical Machinery Transportation Machinery 3

Trends in shipment value [ billion] 23,503 23,363 23,762 23,228 22,748 20,552 17,961 1980 1985 1990 1995 2000 2001 2002 (Year) Shipment value of the chemical industry in the manufacturing industries

5 Trends in shipment value [ billion] 23,503 23,363 23,762 23,228 22,748 20,552 17, (Year) Shipment value of the chemical industry in the manufacturing industries [ billion, %] Year Industry Chemicals Foods Textiles Plastic Products Ceramics, Clay & Stone Products Iron & Steel Fabricated Metal Products Industrial Machinery Electrical Machinery Transportation Machinery Others Total Every 5th Year Recent Three Years ,961 22,196 7,781 8,304 17,864 10,311 17,361 22,160 24,897 20,552 20,542 8,087 8,052 8,772 17,754 13,094 24,190 40,842 36,179 23,503 22,748 7,838 10,466 10,724 18,269 18,574 33,225 54,529 46,858 23,363 24,117 4,230 10,530 10,169 14,073 17,646 29,884 54,831 44,215 23,762 23,888 3,008 10,486 8,860 11,927 15,143 29,972 59,449 44,367 23,228 23,454 2,737 9,995 8,397 11,202 14,545 28,210 52,466 45,152 22,748 22,984 2,478 9,628 7,678 10,963 13,737 25,477 46,041 47,997 63,289 67,254 76,640 72,973 69,616 67,281 59, , , , , , , , % (Source) Ministry of Economy, Trade and Industry [Census of Manufactures] (Note) Statistics of facilities with more than four employees 4

Chemical Products That Meet the Needs of Various Fields Various products that chemical industry produces are used as raw materials and intermediary products by other industries.

6 Chemical Products That Meet the Needs of Various Fields Various products that chemical industry produces are used as raw materials and intermediary products by other industries. The many end products include pharmaceuticals, cosmetics, detergents, paint, film and other materials that help us enjoy a comfortable modern life. Trend of shipment composition in chemical industry [%] Fertilizers Inorganic Chemicals 2.8% 7.5% Organic Chemicals 44.4% Chemical Fibers 6.4% End Products 38.9% (Year) Trend of shipment composition in chemical industry [%] 5 Year Industry Chemical Industry Fertilizers Inorganic Chemicals Organic Chemicals Basic Petrochemicals Aliphatic Intermediates Cyclic Intermediates, Dyestuff, Pigment Plastics Synthetic Rubbers Other Organic Chemicals Chemical Fibers End Products Oil and Fats, Soap, Detergent, Surfactants Paints Pharmaceuticals Agricultural Chemicals Cosmetics, Tooth-powder, Other Cosmetics Gelatins and Adhesives Photo-sensitized Materials Other Chemical End Products (Source) Ministry of Economy, Trade and Industry [Census of Manufactures] (Note) Statistics of facilities with more than four employees

7 Composition of chemical products shipped in 2002 [%] Fertilizers 1.0 Basic Petrochemicals 4.1 Photo-sensitized Materials 3.3 Gelatins & Adhesives 1.0 Other Chemical End Products 6.7 Inorganic Chemicals 6.5 Aliphatic Intermediates 5.6 Cyclic Intermediates, Dyestuff, Pigment 6.2 Cosmetics, Tooth-powder, Other Cosmetics Plastics 11.6 Synthetic Rubbers 1.8 Agricultural Chemicals 1.3 Pharmaceuticals 30.0 Paints 4.4 Other Organic Chemical Products 3.9 Chemical Fibers 2.5 Oil and Fats, Soap, Detergent, Surfactants 4.4 The major chemical industry indices with breakdown by product in 2002 Item Industry Chemical Industry Fertilizers Inorganic Chemicals Organic Chemicals Basic Petrochemicals Aliphatic Intermediates Cyclic Intermediates, Dyestuff, Pigment Plastics Synthetic Rubbers Other Organic Chemicals Chemical Fibers End Products Oil and Fats, Soap, Detergent, Surfactants Paints Pharmaceuticals Agricultural Chemicals Cosmetics, Tooth-powder, Other Cosmetics Gelatins and Adhesives Photo-sensitized Materials Other Chemical End Products (Source) Ministry of Economy, Trade and Industry [Census of Manufactures] (Note) Statistics of facilities with more than four employees 5, ,980 4,350 31,699 80,906 3,328 9,406 15,703 30,278 5,812 16,379 22, ,468 7, ,268 1,406 2, , , , , ,640 12,959 7, , , ,233 6,814 4, , ,782 1, , , ,255 1,

8 Shipment by Prefecture Osaka and Kanagawa shipped more than 2 trillion yen each. Shipment of chemical products by prefecture in 2002 Okinawa 7

9 ,000,100million- 1,000,100-2,000,000million 300,100-1,000,000million 100, ,000million 10, ,000million - 10,000million Petrochemical complex Shipment of chemical products by prefecture in 2002 (ranking) Prefecture Shipment Increase/decrease from previous year Employee force Prefecture Shipment Increase/decrease from previous year Employee force 1.Osaka 22, , Gifu 2, ,713 2.Kanagawa 21, , Kyoto 1, ,333 3.Chiba 19, , Fukui 1, ,465 4.Shizuoka 14, , Hokkaido 1, ,469 5.Saitama 13, , Yamagata 1, ,681 6.Yamaguchi 13, ,821 7.Hyogo 12, ,027 8.Ibaraki 12, ,613 9.Aichi 8, , Okayama 8, , Mie 7, , Tokyo 6, , Shiga 5, , Fukushima 5, , Tochigi 4, , Toyama 4, , Fukuoka 4, , Gunma 3, , Tokushima 3, , Wakayama 3, , Ehime 3, , Niigata 3, , Oita 2, , Hiroshima 2, ,601 (Source) Ministry of Economy, Trade and Industry [Census of Manufactures] (Note) Statistics of facilities with more than four employees 30.Miyazaki 1, , Kumamoto 1, , Ishikawa 1, , Nagano 1, , Saga , Kagawa , Miyagi , Nara , Iwate , Yamanashi Akita Aomori Kagoshima Shimane Nagasaki Okinawa Kochi Tottori Total 227, ,980 8

Japan's Chemical Industry, the World's Second Biggest in Shipments after the U.S.A. Shipment of chemical products by country in 2002 [$billion] 0 100 200 300 400 500 U.S.A. 458.4 Japan 181.

10 Japan's Chemical Industry, the World's Second Biggest in Shipments after the U.S.A. Shipment of chemical products by country in 2002 [$billion] U.S.A Japan Germany China 96.8 France 79.4 Italy 61.5 Korea 59.9 United Kingdom 50.9 Belgium 41.9 India 37.6 Brazil 36.6 Spain 35.4 Ireland 34.8 Taiwan 33.3 Switzerland 33.0 Netherlands 30.9 Russia 29.5 Canada 24.0 Mexico 16.4 Sweden 12.2 (Source)Guide to the Business of Chemistry(American Chemistry Council) 9

11 The world's leading chemical companies in 2002 Chemical Sales Chemical Operating Profits a Ranking Company Chemical Sales ($ million)2002 Change from 2001 Chemical Sales as % of Total Sales Chemical Operating Profits($ million) Change from 2001 Operating Profit Margin b 1 Dow Chemical (U.S.A.) 27, % % 1, % 4.2% DuPont (U.S.A.) BASF (Germany) Total (France) Bayer (Germany) ExxonMobil (U.S.A.) c Royal Dutch/Shell (U.K./Netherlands) BP (U.K.) Degussa (Germany) Akzo Nobel (Netherlands) ICI (U.K.) Mitsui Chemicals (Japan) SABIC (Saudi Arabia) China Petroleum & Chemical (China) Dainippon Ink & Chemicals (Japan) General Electric (U.S.A.) Mitsubishi Chemical (Japan) Air Liquide (France) Sumitomo Chemical (Japan) Huntsman Corp. (U.S.A.) Norsk Hydro (Norway) Shin-Etsu (Japan) Rhodia (France) BOC (U.K.) PPG Industries (U.S.A.) Clariant (Switzerland) DSM (Netherlands) Reliance Industries (India) Equistar Chemicals (U.S.A.) Chevron Phillips (U.S.A.) 26, na 25, , , , , , , , , , , , , , , , , , , , , , na 6, , , , , , , , , , na na nm nm na na def 0.7 (Source) Chemical & Engineering News July 28,2003 (Note) a Operating profit is sales less administrative expenses and cost of sales. b Chemical operating profit as a percentage of sales. c Profits and profitability ratios are after-tax. def = deficit. na = not available. nm = not meaningful. 10

12 About Yen 1,800 Billion Spent for Research and Development Research and development expenditures of the chemical industry in FY 2002 (Apr.1, 2002-Mar.31, 2003) in Japan amounted to approx.1,800 billion yen, accounting for 16% of all industry R&D expenditures. The percentage of research expenditures to sales was 5.2%, which was high comparable to precision machinery and electrical machinery. Ratio of R&D expenditures by industry in FY 2002 [%] Trend of number of applications for patent by sector 100,000 Physics 91,957 80,000 Electricity 80,024 Foods 2.2 Chemical Industry 15.8 Textiles 0.4 Plastic Products 0.9 Ceramics 1.3 Iron & Steel 1.1 Non-ferrous Metals 1.3 Fabricated Metal Products 0.7 Industrial Machinery ,000 40,000 20,000 0 Chemistry and Metallurgy Mechanical Engineering, Lighting, Heating, Weapon, Blast Fiber and Paper Operation,Transportation Necessities Fixed Structure ,022 36,644 32,999 30,822 15,721 4,505 Electrical Machinery 8.1 (Source) Japan Patent Office [Japan Patent Office Annual Report] Manufacturing Transportation Machinery Industries Precision Machinery 3.9 (%) 35 Chemical industry R&D expenditures in major countries [%] Other Manufacturing Industries Japan U.S.A. France Germany U.K Non-Manufacturing Industry Japan U.S.A. France Germany U.K. Japan U.S.A. France Germany U.K. Japan U.S.A. France Germany U.K. Japan U.S.A. France Germany U.K. Japan U.S.A. France Germany U.K. Japan U.S.A. France Germany U.K. Japan U.S.A. France Germany U.K. (Source) Ministry of Internal Affairs and Communications (MIC), Statistics Bureau [Survey of Research and Development] 11 (Source) Ministry of Education, Culture, Sports, Science and Technology [Annual Report on the Promotion of Science and Technology]

13 Ratio of R&D expenditures to sales by industry [%] (%) 8 7 Chemical Industry Precision Machinery 6 Electrical Machinery 5 Manufacturing Industries Transportation Machinery 4 Industrial Machinery 3 Iron & Steel Ceramics Non-ferrous Metals Foods Fabricated Metal Products (Fiscal Year) Ratio of R&D expenditures to sales by industry [%] Industry Fiscal Year Chemical Industry Foods Ceramics Iron & Steel Non-ferrous Metals Fabricated Metal Products Industrial Machinery Electrical Machinery Transportation Machinery Precision Machinery Total Manufacturing (Source) Ministry of Internal Affairs and Communications (MIC), Statistics Bureau [Survey of Research and Development] 12

14 Japan Is An Energy-Saving Superpower Japan uses the least energy per GDP of all advanced countries. World's primary energy consumption per GDP [tons in crude oil equivalent / 1995 price, $million] 3,000 2,500 China 2,000 1,500 1,000 Total World Consumption U.S.A. U.K. Germany France Canada OECD Italy Japan (Year) (Source)The Energy Conservation Center, Japan [ Energy and Economic Statistics Handbook] Energy consumption per unit of major industries in Japan [1990=1.0] 1.2 Electrical Machinery 1.1 Auto Parts Iron & Steel Chemical Industry Paper & Pulp Mining (Fiscal Year) (Source)Nippon Keidanren [Results of the Fiscal 2003 Follow-up to the Keidanren Voluntary Action Plan on the Environment, Section on Global Warming Measures] 13

Chemical Industry Ranks High in Plant Investment Plant investment by the chemical industry accounted for approx. 14% of all manufacturing industries.

15 Chemical Industry Ranks High in Plant Investment Plant investment by the chemical industry accounted for approx. 14% of all manufacturing industries. Trend of plant investment by industry [ billion] 6,000 5,000 Chemical Industry Transportation Machinery Other Manufacturing Industries Industrial Machinery Fabricated Metal 4,000 Electrical Machinery Ceramics,Clay & Stone Products Foods 3,000 2,000 Iron & Steel 1,000 0 Textiles (Fiscal Year) Trend of plant investment by industry [ billion] Fiscal Year Industry Chemical Industry Foods Textiles Ceramics,Clay & Stone Products Iron & Steel Fabricated MetalProducts Industrial Machinery Electrical Machinery Transportation Machinery Others Total Manufacturing Every 5th Year Recent Three Years , , ,247 1,569 1,260 1,285 1,368 1,376 1,478 1,138 1, % ,229 1,170 2, ,615 1,719 3, ,479 1,293 1,552 3,737 2,861 5, ,265 1,346 3, ,927 1,352 3, ,406 1,456 2, ,423 1,459 2, ,286 13,082 21,483 13,849 13,238 11,292 9,039 (Source)Ministry of Finance [Financial Statements Statistics of Corporations by Industry] 14

16 About 350,000 Workers Are Employed The number of employees in chemical industry accounted for approx. 4.3% in entire manufacturing industry. Changes in the number of employees by industry (Persons) 12,000,000 Chemical Industry Fabricated Metal Foods Textiles Industrial Machinery Plastic Products Electrical Machinery Ceramics,Clay & Stone Products Iron & Steel Transportation Machinery Manufacturing Industries 10,000,000 8,000,000 2,000,000 1,500,000 1,000, , (Year) (Source)Ministry of Economy, Trade and Industry [Census of Manufactures] (Note) Statistics of facilities with more than four employees Changes in the number of employees by industry Year Industry Chemical Industry Foods Textiles Plastic Products Ceramics,Clay & Stone Products Iron & Steel Fabricated Metal Products Industrial Machinery Electrical Machinery Transportation Machinery Others Total Manufacturing Every 5th Year Recent Three Years ,338 1,089, , , , ,546 1,026,377 1,341, , ,748 1,016, , , , , ,604 1,124,229 1,825, , ,076 1,090, , , , , ,915 1,192,406 1,939, , ,109 1,136, , , , , ,694 1,086,575 1,750, , ,953 1,127, , , , , ,425 1,037,079 1,573, , ,068 1,155, , , , , , ,373 1,451, , ,980 1,137, , , , , , ,689 1,326, , % ,166,500 2,934,184 2,996,395 2,786,017 2,290,296 2,181,637 1,939, ,291,918 10,889,949 11,172,829 10,320,583 9,183,833 8,866,220 8,323,589 (Source)Ministry of Economy, Trade and Industry [Census of Manufactures] (Note)Statistics of facilities with more than four employees 15

17 Labor Productivity / Working Hours Labor productivity and working hours in the chemical industry. Indices of physical labor productivity [2000=100] Working hours (monthly average of total net working hours) [hours] Manufacturing Industries Chemical Industry Manufacturing Industries All Industries Chemical Industry (Year) (Year) Indices of physical labor productivity [2000=100] Working hours (monthly average of total net working hours) [hours] Year Every 5th Year Recent Three Years Industry Manufacturing Industries Chemical Industry Indices Increase rate % Indices Increase rate % Year Every 5th Year Recent Three Years Industry All Industries Manufacturing Industries Chemical Industry (Source)Japan Productivity Center for Socio-Economic Development (Source)Ministry of Health, Labour, and Welfare [Monthly Labor Survey] 16

18 Trade The trade surplus amounted to approx. $7.4 billion in 2002, the 12th consecutive year of surpluses. Exports and imports of chemical products [$ million] Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports Exports Imports 6,767 6,202 7,698 8,073 Fertilizers Inorganic Chemicals Organic Chemicals Plastics Dyes & Paints Pharmaceuticals Essential Oil, Perfume & Cosmetics Other Chemical Products 15,872 16,045 30,196 24,670 35,336 26,615 30,816 25,638 33,426 26,032 Exports and imports of chemical products [$ million] Exports Imports Every 5th year Recent three years Product Every 5th year Recent three years ,276 1, , ,512 2, , ,188 5,640 4,386 1, ,876 15, ,720 11,110 8,649 1,938 1, ,917 30, ,084 11,191 9,810 2,436 2,733 1,198 5,790 35, ,792 10,172 8,201 1,891 2,728 1,084 4,867 30, ,907 10,771 9,257 1,968 2,812 1,167 5, % ,426 Fertilizers Inorganic Chemicals Organic Chemicals Plastics Dyes & Paints Pharmaceuticals Essential Oil, Perfume & Cosmetics Other Chemical Products Total Chemical Products (Source) Ministry of Economy, Trade and Industry [White Paper on International Economy and Trade] , , ,462 6, , , ,054 8, ,194 4,457 1, , ,069 16, ,974 7,587 2, ,908 1,502 4,937 24, ,131 7,546 3, ,764 1,803 5,736 26, ,981 7,561 2, , ,004 25, ,840 7,545 2, ,426 1,884 5, % ,032 17

19 Exports and imports of chemical products in 2002 by region [$ million] 20,201 11,125 Exports Imports 5,979 6,784 5, CIS,Mid Europe and East Europe 5,966 North America West Europe Middle East Africa Asia Oceania 1,246 1,114 Latin America Exports and imports of chemical products in 2002 by region [$ million] Exports Imports Every 5th year Recent three years Region Every 5th year Recent three years , ,029 6,767 3, ,125 1, ,091 7,698 8, ,183 2, ,872 18, ,226 4, ,196 21, ,462 6,563 1, ,336 17, ,249 5,715 1, ,816 20, ,164 5,979 1, % ,426 Asia Middle East West Europe North America Latin America Africa Oceania CIS, Mid Europe, East Europe Total Chemical Products (Source) Ministry of Economy, Trade and Industry [White Paper on International Economy and Trade] ,081 2, , ,651 3, ,073 2, ,510 5, ,045 4, ,814 7, ,670 6, ,219 7, ,615 5, ,012 6, ,638 5, ,125 6,784 1, % ,032 18

20 Direct Overseas Investment Amounts to Yen 230 Billion, While Direct Domestic Investment Amounts to Yen 420 Billion Inward direct investment increased substantially in FY 2002 because of mergers and acquisitions, etc. Outward direct investment of the Japanese chemical industry and inward direct investment to the chemical industry in Japan in FY 2002 by region [ 100million] 4,165 1, , , Outward Direct Investment from Japan (Source) Ministry of Finance [Foreign Direct Investment] (Note) By the foreign companies in Japan Inward Direct Investment to Japan Actual outward direct investment of the Japanese chemical industry and inward direct investment to the chemical industry in Japan [ 100million] ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 ( 100million) (Fiscal Year) 1980 $ 314million(Outward Direct Investment) $ 133million(Outward Direct Investment) 636 3, ,095 2, ,788 2, ,156 1, ,336 4,165 (Source) Ministry of Finance [Foreign Direct Investment] 19

Overseas Business Activities Overseas production of the Japanese chemical industry has increased to more than 14 %. Trend of overseas production of Japanese companies [%] (%) 20 16.7 15 14.

21 Overseas Business Activities Overseas production of the Japanese chemical industry has increased to more than 14 %. Trend of overseas production of Japanese companies [%] (%) (Fiscal Year) (Source) Ministry of Economy, Trade and Industry [Basic Survey of Overseas Business Activities] Sales of the Japanese chemical companies based overseas and its percentage of all overseas Japanese manufacturing companies' sales [ billion, %] ( billion) 6000 (%) (Fiscal Year) (Source) Ministry of Economy, Trade and Industry [Basic Survey of Overseas Business Activities] 20

22 Operating Profit Ratio Operating profit ratio to sales remained high at approx. 7.6%. Trend of ratio of operating profits to sales by industry [%] % 10 Iron & Steel Chemical Industry 8 Manufacturing Industries 6 Industrial Machinery 4 2 Foods Transportation Machinery Fabricated Metal 0 Electrical Machinery Trend of ratio of operating profits to sales by industry [%] Fiscal Year Every 5th year Recent three years Industry Chemical Foods Iron & Steel Fabricated Metal Products Industrial Machinery Electrical Machinery Transportation Machinery Total Manufacturing (Source) Ministry of Finance [Financial Statements Statistics of Corporations by Industry] 21

23 Summary of Major Indices Major indices in 2002 Industry Item Number of Facilities Number of Employees (Persons) Total Shipment (Yen billion) Amount of Value Added (Yen billion) Plant Investment (Yen billion) R&D Expenditures (Yen billion) Chemical Industry 5, ,980 22,748 11,024 1,261 1,834 Foods 35,739 1,137,521 22,984 8, Textiles 9, ,071 2,478 1, Plastic Products 16, ,945 9,628 3, Ceramics, Clay & Stone Products 15, ,735 7,678 3, Iron & Steel 4, ,087 10,963 3, Fabricated Metal Products 36, ,367 13,737 6, Industrial Machinery 34, ,689 25,477 10, Electrical Machinery 22,380 1,326,340 46,041 14,578 1, Transportation Machinery 12, ,472 47,997 14,233 1,459 1,738 Others 98,384 1,939,382 59,630 20,072 2,542 3,867 Total Manufacturing 290,848 8,323, ,362 97,459 9,039 10,081 Ratio of chemical industry to all manufacturing industries [%] Industry Item Number of Facilities Number of Employees Total Shipment Amount of Value Added Plant Investment R&D Expenditures Chemical Industry 1.7% 4.3% 8.4% 11.3% 14.0% 18.2% Foods Textiles Plastic Products Ceramics, Clay & Stone Products Iron & Steel Fabricated Metal Products Industrial Machinery Electrical Machinery Transportation Machinery Others Total Manufacturing (Source) Ministry of Economy, Trade and Industry [Census of Manufactures] Ministry of Finance [Financial Statements Statistics of Corporations by Industry] Ministry of Internal Affairs and Communications (MIC), Statistics Bureau [Survey of Research and Development] (Note) Data of plant investment and R&D expenditures are those of FY

24 Chemical Industry Supports Our Life and Other Industries, Protects the Earth and Realizes Our Dream Chemical Industry and Technology and Social Needs Raw Materials Intermediates Primary Products Water/Air Hydrogen Nitrogen Oxygen Chlorine Pigments Dyes Surfactants Industrial gas Salt Carbonic acid gas Fertilizers Carbon oxide Agricultural Chemicals Oil (naphtha) Natural gas Coal Inactive gas Caustic soda Soda ash Hydrochloric acid Nitric acid Sulfuric acid Phosphoric acid Methanol Ethanol Ethylene Propylene Printing ink Paints Petrochemicals Synthetic detergents Synthetic rubbers Plastics Cosmetics Pharmaceuticals Solvents Fuel Sterilizer Ore Butylenes Bleach Butadiene Glass Animals and Plants Benzene Toluene Xylene Styrene Seasoning Synthetic fiber Oil and fat products Photo-sensitive chemicals 23

H ousing F ood C lothes New materials to cope with "sick house syndrome, ultra light/ultra hard new materials, fire retardant new materials, heat-resist (heat accumulating) materials Plant breeding

25 H ousing F ood C lothes New materials to cope with "sick house syndrome, ultra light/ultra hard new materials, fire retardant new materials, heat-resist (heat accumulating) materials Plant breeding by biotechnology, factorization of agriculture, highly functional packaging film materials/systems, super enzymes Allergy-free apparels, waterproof and ventilation apparels, form-memorizing apparels Resources &Energy Solar generation, fuel cells, use of biomass, high-level oilchemicals technology SOCIAL NEEDS Transportation Telecommunication Electronics Display materials (LCD, PDP, POP, EL, etc.), clean automobiles, ultra lightweight automobiles, cellular phone materials, optical fiber E nvironment Green chemistry, measures to cope with global warming, water treatment/water production, prevention of atmospheric pollution (SOx, NOx, VOC, etc.), biodegradable polymers, measures to cope with endocrine disrupters issue Medical Treatment/Health Biotechnology, prevention of infection in hospitals, genomic medicines Nano Technology New Materials Carbon nano-tube, CMP slurry Information Disclosure PRTR, risk communications, MSDS Global Activity ICCA(The International Council of Chemical Associations) activity 24

26 About Responsible Care What is Responsible Care? Chemical substances are necessary and important to modern daily life. However, sometimes these substances can turn dangerous, becoming hazardous to human health and safety and the environment when handled improperly. The task of preserving the environment and ensuring the health and safety of humans has increased in step with the rise of global environmental problems and the rapid industrialization of developing countries. Adding to this situation, the potential hazards linked to advanced technology have made it difficult to ensure the ecological soundness and safety of chemical operations and products simply by imposing laws and regulations. Thus, it is increasingly more important for companies that deal with chemical substances to undertake voluntary measures to ensure environmental preservation and human safety and health. Reflecting this trend, the world's chemical industry started an initiative that promotes a voluntary management system aimed at preserving the environment against and ensuring the safety from chemical substances throughout the product's life cycle, from development through disposal. This initiative has been named "Responsible Care" (RC). Devlopment Manufacturing Distribution Use Final Consumption Disposal Responsible Care Logotype The logotype used to promote Responsible Care is authorized by the International Council of Chemical Associations (ICCA) as an international trademark for use by companies and organizations that implement Responsible Care programs. Permission to use the logotype is granted to member companies of chemical industry associations recognized by the ICCA. In Japan, the Japan Chemical Industry Association (JCIA), the Japan Responsible Care Council (JRCC), and member companies of the JRCC are exclusively authorized to use the logotype. logotype 25

Responsible Main Activities of Responsible Care Care is a voluntary initiative with company's commitment to improve all aspects of environment, health and safety and to communicate with the public

27 Responsible Main Activities of Responsible Care Care is a voluntary initiative with company's commitment to improve all aspects of environment, health and safety and to communicate with the public about activities and achievement to ensure transparency on the following five considerations. RC is a set of voluntary activities based on a public commitment by companies engaged in the manufacture or handling of chemical substances. RC covers all aspects of performance related to the manufacture and handling of chemical substances. Environmental preservation Operational safety and disaster prevention Occupational safety and health Product stewardship (Protecting human health and preserving the natural environment) (Preventing disasters at facilities and minimizing damage in case of disaster) (Protecting the safety and health of workers) (Providing information relating to the properties and handling procedures of chemical products to protect the safety and health of all people handling the products and the environment) RC requires companies to publicize their performance and maintain dialogue with the public; the approach aims to promote communications with the public and foster a better understanding of the role of companies that manufacture and handle chemical substances. RC is a set of activities aimed at preserving the environment and ensuring safety and health in all stages of chemical substance life cycles from development and manufacturing to distribution, use, final consumption, and disposal. (product stewardship) 26

28 Chemistry and chemical products play an extremely important role in many aspects of daily living. From clothes (chemical fibers, etc.), food (agrichemicals, fertilizers, etc.) and houses (construction materials such as carpet and wall papers) to computers and automobiles, they all could not exist in their present forms without chemical products and technology. To raise the awareness and understanding of such chemical technology and products, the Japan Chemical Industry Association has established the Dream Chemistry 21 Organizing Committee (The Chemical Society of Japan; The Society of Chemical Engineers, Japan; The Association for the Progress of New Chemistry; and The Japan Chemical Industry Association), which together with academic centers and with the support of the Ministry of Education, Culture, Sports, Science and Technology and the Ministry of Economy, Trade and Industry, has engaged in its campaign activity since The Dream Chemistry 21 campaign aims at promoting the importance of chemical technology and the usefulness of chemical products, particularly by appealing to young people s interest in the wonders of chemistry, and, at the same time, fostering internationally active chemists. For further details, please access and JAPAN CHEMICAL INDUSTRY ASSOCIATION Sumitomo Rokko Bldg Shinkawa, Chuo-ku, Tokyo , Japan Tel /Fax URL:

Promotion of Positive Action. Summary

Promotion of Positive Action. Summary Provisional Translation Promotion of Positive Action Aiming to attain the target of 30% by 2020 From the White Paper on Gender Equality 2011 Summary Cabinet Office,Government of Japan June 2011 The Cabinet