Contents 1. Activity of JAIA 2. Statistics of the Japanese adhesive market 3. JAIA’s efforts in the environmental and safety measures Takayuki Nogawa President of JAPAN ADHESIVE INDUSTRY ASSOCIATION ( JAIA ) 1

Regular Members ： 93 adhesive manufacturers （ About 75 ％ of whole industry ） Associate Members ： 38suppliers (Raw materials, equipment, etc. ） Establishe ｄ in June Key Words Ｅｎｖｉｒｏｎｍｅｎｔ Ｓａｆｅｔｙ Ｑｕａｌｉｔｙ Ｓｔａｎｄａｒｄ Ｉｎｆｏｒｍａｔｉｏｎ Ｅｄｕｃａｔｉｏｎ Ｓｙｍｂｉｏｓｉｓ 2

1 ． Production statistics 2 ． Promotion of standardization(JIS/JAI) 3 ． Certification of adhesives ・ Certification of non-formaldehyde （ F ☆☆☆☆ ） ・ Certification of 4VOC Criterion 4 ． Environmental safety measures 5 ． Educational activities regarding adhesives ・ Adhesive Technology School, lectures, etc. 6 ． International communion 7 ． Other activities 3

Adhesive type Sales Volume ( Unit : tons) Formaldehyde resins286,794285,810250,224215,917202,178 Solvent-based50,01250,27046,41940,41942,453 Waterborne355,504265,771231,944204,908217,249 Hot -melt111,629100,092100,22894,13698,862 Reactive95,994111,409106,08393,69892,456 Pressure-sensitive129,947130,149115,966126,072118,069 Others52,40349,59348,29543,82939,054 Total1,082,283993,094899,157818,979810,321 4

5 Unit : tons 5

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Adhesive type Sales Amount ( Billion JPY ） Formaldehyde resins Solvent-based Waterborne Hotmelt Reactive Pressure-sensitive Others Total

Billion JPY 8

Plywood/Woodwork 347,557337,603307,395258,391248,788 Construction 173,885179,951163,469165,396137,320 Packaging 158,858160,994131,519112,223104,871 Paper & Book Binding 44,72743,37037,06035,62837,492 Textile 47,29052,29559,16351,65651,547 Transportation 69,32770,86265,89152,75458,321 Shoes, rubber &Leather 4,0674,0713,2812,3432,637 Electric Machinery 31,19632,73311,20734,44747,974 Household 6,2585,3735,5515,0875,518 Others 155,83160,90072,90167,23982,551 Export 43,28744,94341,72133,81533,302 TOTAL1,082, ,094899,157818,979810,321 (Unit : tons) 9

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Recent Important Activity Environment and Safety Committee ・ Preparation of a model MSDS conforming to GHS requirements. ・ Edition of Q&A of REACH. ・ JAIA Guideline for the quality labeling of household products, required by the law. Environment and Safety Committee ・ Preparation of a model MSDS conforming to GHS requirements. ・ Edition of Q&A of REACH. ・ JAIA Guideline for the quality labeling of household products, required by the law. Technical Committee ・ Negative List of food packaging adhesives (5 th Edition) Technical Committee ・ Negative List of food packaging adhesives (5 th Edition) VOC Committee ・ 36% reduction of VOC used in adhesives, in 8 years from ・ Publication of survey result of indoor air pollution by VOC in adhesives 1 st Edition in 2006, 2 nd Edition in 2008 and 3 rd Edition in 2010 ・ Voluntary Registration System for qualified adhesives. VOC Committee ・ 36% reduction of VOC used in adhesives, in 8 years from ・ Publication of survey result of indoor air pollution by VOC in adhesives 1 st Edition in 2006, 2 nd Edition in 2008 and 3 rd Edition in 2010 ・ Voluntary Registration System for qualified adhesives. 11

12 Solvent-based sales vol.VOC discharge vol. unit : ton VOC Solvent-based ▲36 ％ compared with 2003 ▲22 ％ compared with 2003

Educational Committee Adhesive Technology School (1) Woodwork/Building Material Course (2) Construction Course (3) Paperwork/Packaging Course (4) Metal/Composite Course (5) Plastics Course (Plural course attendance is accepted.) ・ No. of Graduates of the school ： 6807 persons ・ No. of Adhesion Managers ： 5143 persons Educational Committee Adhesive Technology School (1) Woodwork/Building Material Course (2) Construction Course (3) Paperwork/Packaging Course (4) Metal/Composite Course (5) Plastics Course (Plural course attendance is accepted.) ・ No. of Graduates of the school ： 6807 persons ・ No. of Adhesion Managers ： 5143 persons 13

1. Non-Formaldehyde Products(F ☆☆☆☆ ) ・ Implemented in July 2003 ・ Open to non-members ＆ overseas companies 2. 4VOC ( JAIA-4VOC Approval ) ・ Implemented in April 2008 ・ Open to non-members & overseas companies ・ Current number of registration: items filed by 77 companies (including 40 non-members and 2 overseas) So far no problem and dispute, caused by the registration system. ・ Current number of registration: 4493 items filed by 58 companies （ including 2 non-members, No overseas company ） 14

15 Labeling Emission Rate mg/m2 ・ h Indoor installation F ★★★★ <5.0 No limit F ★★★ 5.0~20 Limited F ★★ 20~120 Limited F ★ >120 Banned Only F ★★★★ is registered by JAIA.

VOC ※ 1 Guide line μg/m3 ※ 2 ER μg/m2 ・ h ※ 3 JAIA Control Concentratio n (wt %) Remarks Toluene26038 <0.1% EVA Emul. <0.05% Xylene <0.1% Ethyl- benzene 3, <0.1% Styrene22032<0.015% SBR ※１ Ministry of Health, Labor and Welfare ： Concentration in indoor atmosphere ※２ VOC Emission Rate Control Level for Construction Materials ･･・・ Japan Testing Center for Construction Materials ※３ Measurement Method ： JAI16 （ Japan Adhesive Industry Association Standard ） 16

Vessel/Strainer/ Filter 4VOC<0.1% Raw materials 4VOC <0.1% 4VOC Conc. <0.1% 4VOC Concemtration Determination NO YES NO NO ＪＡＩ A ４ＶＯＣ Registratilon Rejection YES YES 17

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