Shin-Etsu Silicones Business Guide Corporate Data (as of March 31, 2008) President & CEO : Chihiro Kanagawa Date of Establishment : September 16, 1926 Capital : ¥ 119,419 million Number of Employees* : 20,241 Net Sales* : ¥ 1,376,364 million (Fiscal year ended March 31, 2008) * Including 69 consolidated subsidiaries Shin-Etsu Chemical History 1926 1953 1957 1962 1967 1972 1973 1979 1980 1993 1996 1998 1999 2001 2002 2003 2005 2007 Started out as Shin-Etsu Nitrogen Fertilizer Co., Ltd. (The name was changed to Shin-Etsu Chemical Co., Ltd. in 1940) Silicone production initiated PVC, caustic soda and chlorine production initiated Cellulose derivative production initiated High-purity rare earths production initiated Rare earth magnets developed Epoxy molding compounds developed Synthetic quartz production initiated Synthetic pheromones developed Full-scale production of preforms for optical fibers initiated Simcoa Operations Pty. Ltd. acquired in Australlia Photoresist business initiated Commercialization of liquid fluoroelastomers achieved 300mm silicon wafer production initiated Asia Silicones Monomer Ltd. founded in Thailand Shin-Etsu Silicones (Thailand) Ltd. founded in Thailand Shintech's Louisiana Plant completed Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. founded in China Shin-Etsu Silicones of America, Inc., Freeport Plant completed Shin-Etsu Silicone International Trading (Shanghai) Co., Ltd. founded in China New high-performance technology for neodymium rare earth magnets developed Shin-Etsu Chemical and Toppan Printing jointly developed new leading-edge photomask blanks for finer-pitch 45nm and 32nm photolithography. Organization Board of Directors Silicone Division PVC Division Electronics Materials Division Advanced Materials Division Gunma Complex • Isobe Plant • Matsuida Plant • Gobara Plant Takefu Plant Naoetsu Plant Kashima Plant Semiconductor Materials Division Silicone-Electronics Materials Research Center Organic Chemicals Division Specialty Chemicals Research Center New Functional Materials Department PVC & Polymer Materials Research Center New Products Department Advanced Functional Materials Research Center International Division New Functional Materials Research Center Magnetic Materials Research Center Shin-Etsu Technology and Products Synthetic Quartz SiCl4 Silicon Metal CF Silanes HSiCl 3 (Coupling Agents) Vinyl silanes Methyl silanes Phenyl silanes Methanol MeCl Natural Gas Salt Silicone Resins Silicone Fluids Silicone Elastomers Chloromethane Chlorine HCl Hydrogen Caustic Soda Pulp Cellulose derivatives P.O. Carbide Acetylene Synthetic Pheromones VCM PVC Rare Earth Rare Earth Magnets Rare Metal Oxides Oxide Single Crystals Poly-crystal Silicon Single-crystal Silicon Semiconductor Silicon Net Sales by Business Segment Functional Materials & Others 15% Silicones 8% Sales Electronic Materials 41% 1,376.4 billions of yen 51% Organic, Inorganic Chemicals 2007.4~2008.3 Consolidated Net Sales by Market Segment Others 5% Europe 13% 32% Japan Sales 1,376.4 billions of yen Asia and Oceania 30% 20% North America 2007.4~2008.3 Consolidated Silicone is··· "Silicone" is a generic term referring to a class of synthetic polymers based on a framework of alternating silicon and oxygen (siloxane) bonds with at least one organic group attached to the silicon via a direct carbon to silicon bond. Heat and cold resistance Electrical insulation Water repellency Low surface tension Low coefficient of friction and resistance to severe weather condition Shin-Etsu Silicones Manufacturing Process Silicon Metal Methanol Hydrogen Chloride Others Methyl Chloride Reaction & Distillation Methyl Chloro Silanes Phenyl Chloro Silanes Vinyl Chloro Silanes Fluoroalkyl Chloro Silanes Hydrolysis Purification Modification Polymerization FLUID RUBBER LIQUID RUBBER Reaction & Distillation RESIN CARBON FUNCTIONAL SILANE Shin-Etsu Silicones Product Lineup ■ Silicone is used broadly in various forms. SILICONES FLU I D ■ OIL ■ GREASE/OIL COMPOUND ■ ANTI-FOAM AGENTS ■ PAINT ADDITIVE ■ PAPER RELEASE AGENTS ■ MODIFIED FLUID ■ RELEASE AGENTS ■ TEXTILE TREATING AGENTS ■ FOAMING CONTROL AGENTS RUBBER ■ RUBBER COMPOUND ■ FLUORO-SILICONE RUBBER ■ SEP RUBBER ■ HEAT SHRINKABLE RUBBER TUBING ■ THERMALLY CONDUCTIVE RUBBER ■ ELECTRICALLY CONDUCTIVE RUBBER LIQUID RUBBER ■ LIQUID RTV RUBBER ■ LIMS ■ CONSTRUCTION SEALING/COATING/LINING MATERIAL RESIN ■ VARNISH for ELECTRICAL INSULATION ■ PAINT ADDITIVE ■ WATER REPELLENT COATING SILANE ■ SILANE COUPLING AGENTS ■ SILYLATING AGENTS Applications ■ Silicone can not always be seen, but they are everywhere you look. FLUID RESIN RUBBER SILANE LIQUID RUBBER Electrical Chemical Electronics Textile Automotive Food Machines Construction Shin-Etsu Silicones History JAPAN OVERSEAS 1949 Silicones preliminary research 1985 Shin-Etsu Silicones of America, Inc. founded 1953 Silicones full scale production 1976 Silicone-Electronics Materials Research Center opened 1994 Gunma Complex and Naoetsu 1986 Shin-Etsu Silicone Korea Co., Ltd. founded 1987 Shin-Etsu Silicone Taiwan Co., Ltd. founded 1989 Shin-Etsu Silicones Europe B.V. founded 1990 Shin-Etsu Singapore Pte. Ltd. founded Plant qualified for ISO 9001 1991 Shincor Silicones, Inc. in USA founded 1995 Takefu Plant qualified for ISO 9002 1996 Gunma Complex qualified for ISO 14001 1998 Takefu Plant qualified for ISO14001 2001 Shin-Etsu Silicones (Thailand) Ltd. founded Asia Silicones Monomer Limited founded 2002 Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. founded 2003 Shin-Etsu Silicones of America, Inc. 1999 Naoetsu Plant qualified for ISO14001 Freeport Plant started operations 2001 Takefu Plant qualified for ISO 9001 Shin-Etsu Silicone International Trading (Shanghai) Co., Ltd. founded 2003 The 50th aniversary of silicone industrialization 2004 Asia Silicones Monomer Limited and Shin-Etsu Silicones (Thailand) Ltd. started operations 2007 Shin-Etsu Silicone International Trading (Shanghai) Co., Ltd. opened a new branch in Guangzhou Shin-Etsu Silicones Worldwide Network Europe Japan 4.Shin-Etsu Silicones Europe B.V. 1.Shin-Etsu Chemical Co., Ltd. 5 8 9 1 6 4 12 10,11 7 2 Asia & Oceania 3 North & South America 2. Shin-Etsu Silicones of America, Inc. 3. Shin-Etsu Silicones of America, Inc. Freeport Plant (Organo Functional Silane) 5. Shin-Etsu Silicone Korea Co., Ltd. 6. Shin-Etsu Silicone Taiwan Co., Ltd. 7. Shin-Etsu Singapore Pte. Ltd. 8. Shin-Etsu Silicone International Trading (Shanghai) Co., Ltd. 9. Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. 10. Asia Silicones Monomer Limited 11. Shin-Etsu Silicones (Thailand) Ltd. 12. Shin-Etsu Singapore Pte. Ltd. India Liaison Office Sales Fluid Department Silane Department Elastomer Department Sales ■ Osaka Branch Liquid Silicone Rubber Department ■ Nagoya ■ Fukuoka New Market Development Department Business Administration Department Strategic Planning Department Sales Office ■ Sapporo Planning & Administration Department Overseas Subsidiary ■ Shin-Etsu Silicones of America, Inc. ■ Shincor Silicones, Inc. ■ Shin-Etsu Silicones Europe B.V. ■ Shin-Etsu Silicone Taiwan Co., Ltd. ■ Shin-Etsu Silicone Korea Co., Ltd. ■ Shin-Etsu Singapore Pte. Ltd. ■ Shin-Etsu Silicones (Thailand) Ltd. ■ Shin-Etsu Silicone International Trading (Shanghai) Co., Ltd. Research & Development Silanes R&D Fluids Elastomers Silicone-Electronics Materials Research Center (Japan) ■ Silicone-Electronics Materials Research Center ■ Specialty Chemicals Research Center Specialty Chemicals Research Center (Japan) Accumulated Patents in U.S. ■ We have obtained many patents not only in Japan but also in the U.S. each year. 1534 1162 830 362 (Registered patents) 160 9 30 1970 1975 87 1980 1985 1990 1995 2000 2005 (Year) Manufacturing ■ Isobe Plant Silanes Gunma Complex Manufacturing Overseas ■ Matsuida Plant ■ Gobara Plant Fluids Elastomers ■ Takefu Plant Liquid Elastomers ■ Naoetsu Plant ■ Shin-Etsu Silicones of America, Inc. ■ Shin-Etsu Silicones of America, Inc. Freeport Plant ■ Shincor Silicones, Inc. ■ Shin-Etsu Silicones Europe B.V. ■ Shin-Etsu Silicone Taiwan Co., Ltd. ■ Shin-Etsu Silicone Korea Co., Ltd. ■ Asia Silicones Monomer Limited ■ Shin-Etsu Silicones (Thailand) Ltd. ■ Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. Shin-Etsu Chemical Co., Ltd. Gunma complex (Japan) Manufacturing Plants (Japan) Gunma Complex ■ Isobe Plant ■ Matsuida Plant ■ Gobara Plant ISO 9001: 2000 / ISO 14001: 2004 Naoetsu Plant Takefu Plant ISO 9001: 2000 / ISO 14001: 2004 ISO 9001: 2000 / ISO 14001: 2004 Manufacturing Plants (AMERICA and EUROPE) EUROPE AMERICA ■ SESA ■ SESE ISO 9001: 2000 ISO 9001: 2000 ■ SESA Freeport Plant ISO 9001: 2000 Manufacturing Plants (ASIA) TAIWAN KOREA ■ Sin-Etsu Silicone Taiwan Co., Ltd. ■ Shin-Etsu Silicone KOREA Co., Ltd. ISO 9001: 2000 / ISO 14001: 2004 ISO 9001: 2000 / ISO 14001: 2004 THAILAND CHINA ■ Sin-Etsu Silicones (Thailand) Ltd. ■ Asia Silicones Monomer (JV with GE) ■ Zhejiang Shin-Etsu High-Tech Chemical Co., Ltd. ISO 9001: 2000 / ISO 14001: 2004 The Policy of Manufacturing Quality & Environmental preservation ■ ISO9001 ■ ISO14001 Stable Supply ■ Total control from raw material to production ■ Reliable supply system Meeting Worldwide Standards ■ Japan Industrial Standards(JIS) ■ American Society for Testing Materials(ASTM) ■ Underwriters Laboratories(UL) ■ U.S. Military Specification(MIL) ■ Thousands of specific customer requirements Stable Supply System ■ Total control over production of raw materials assures high quality and reliable supply. PLANT PURCHASING PRODUCTION INSPECTION ■ Ensure quality and quantity of the raw materials ■ Standardization for all plants and improvement of process capability ■ Commitment to automation ■ Better delivery ■ Check and analyze the quality of products and raw materials, and feed back quality information to the production dept. ■ Improve the inspection technology Shin-Etsu Silicones always challenges the unlimited potential of silicones.