Corporate Philosophy

INOAC intends to create a beautiful forest, comprised of many trees ofvarying character, rather than merely growing a single tall tree.
In its efforts to achieve a better life, INOAC has specialized in
not only a single business, but has cultivated four business“seeds”: polyurethane, rubber, plastics and composite
materials. Today it has developed into a conglomerate,
supplying diverse products and services, thereby contributing
to society.

Innovation & Globalization
INOAC Corporation is leading the world in polymer chemistry and working to be a more globalorganization with energy and individuality through quick decisions and actions. We will determine
our behavioral guidelines and maintain our brand as one that can be trusted by local society,customers and everyone related to INOAC by implementing and achieving our corporate
philosophy with actions consistent between inside and outside the company.

Action Guideline
Challenge

Take action without fear of failure

Profits

Act to expand business continuously and realize profit growth

C S

Act to enhance customer satisfaction

Teamwork

Exhibit originality and act trustworthy

Honesty and Trust

Be reliable and avoid falsehood

Responsibility

Carry out each duty with responsibility

Greeting

Challenge & Innovation～ To enrich people’s lives with materials ～We would like to thank you greatly for continuing tosupport us.
When we look back at the economy last year, theJapanese economy maintained a stable recovery due tocompanies expanding capital investment and strong
personal consumption. The US economy also continues
to be stable because of expanded consumption due toimproved employment rates. In China, thanks to thegovernment's economic support, the economic downturn
was avoided. In Southeast Asia, many countries
accelerated their economic growth because increased
exports boosted their business.

We will establish our footing for sustainable growth andglobally expand our business with Challenge & Innovation,
which is the theme of the whole company under our spiritof change bringing chance. A determined challenge isnecessary to seize chances, especially when suchvigorous and rapid change is expected.
Our basic policy is considering the material business withmaterial composition and development as a coretechnology to be a foundation as well as our contributing
to society by globally supplying automobile and industrial
materials and parts through new material and processdevelopment.

INOAC CORPORATION
President & COO

In FY 2018, the Japanese economy is expected tomoderately grow, and a once in a century turning point isalso expected because of gasoline-powered vehicles
giving way to electric vehicles, the trend toward
self-driving cars in the automotive industry, andtechnological innovation driving a technology shift byusing AI and IoT. The environment around us remains
uncertain such as the influence of the US policy
reorientation including FAFTA renegotiation, the UK
leaving the EU, and strengthened environmental
regulation in China.

We work, challenging and innovating at all times to create
new materials to contribute to a safe and clean global
environment, to make people's lives rich and comfortable,
and to contribute to a sustainable society.
We will greatly appreciate your continuous guidance andencouragement.

Toyohiko Okina

Company outline

Network
Major domestic bases

Company nameINOAC CORPORATION

Established

1954

Incorporation Capital

720 million yen

Representative

Chairman & CEO Soichi Inoue

Our affiliated, associated and joint venture companies from Hokkaido to Kyushu, in addition to the nationwide network ofINOAC CORPORATION, have established a close production and sales network, enabling us to provide our customers
with the most appropriate solutions.
Constructrelated
facilities

Employees

1,806 (as of December 2017)

Sales

170 billion yen (as of December 2017)

Main Businesses

Development of functional materials based on polyurethane, rubber, plastics, and composites,
as well as the manufacturing of products utilizing these materials contributing to a variety of fields
closely related to daily life, such as automotive, two-wheeled vehicles, information technology
equipment, housing and construction materials, and consumer products.

Inoue Rubber Co., Ltd.
Manufacture,processingand sale

Export,import and sale

INOAC International Co., Ltd.
INOAC Technical Center Co., Ltd.
<Affiliated Companies>
Hokkaido INOAC Co., Ltd.

R&D

Services

Tohoku INOAC Co., Ltd.

OthersHigashi Nihon INOAC Co., Ltd.
INOAC Elastomer Co., Ltd.
Nishi Nihon INOAC Co., Ltd.
Kyushu INOAC Co., Ltd.

Head Office

2-13-4 Meieki Minami, Nakamura-ku, Nagoya, Aichi, 450-0003

Head Office (Tokyo)

4F Osaki West-city Bldg., 2-9-3 Osaki, Shinagawa-ku, Tokyo, 141-0032

Offices and Plants

Anjyo, Sakurai, Nanno, Shinshiro, Yana, Toyohashi, Ishimaki, Taketoyo, Kira, Ikeda, Ono, Hadano

Main Sales offices(Sales branches) Tokyo, Chubu, Osaka, Kyushu(Sales offices) Sapporo, Tohoku, Hamamatsu, Hiroshima

R & D Center

INOAC Technical Center Co., Ltd.

Overseas Locations

North America, China, Korea, Southeast Asia

<Joint Ventures>
BASF INOAC Polyurethane Co., Ltd.
Rogers Inoac Corporation, and others

We have constructed a system of proposing and supplying
research, development, material processing, molding
technique, and mass production at 13 countries andregions worldwide centering on North America and Asia.

■ Sales by division as of 2017

hundredmillion yen

Fintech & Packaging 4%

2,500

1,500

HUKLA Japan Inc.

Major overseas bases■ Sales trend

1,592

1,700
Foam products
30%

1,000

Automotive59%<North America 19 companies><Asia 43 companies>

USA 11 companies

Thailand 15 companies

Canada 3 companies

Taiwan 3 companies

Mexico 5 companies

Indonesia 5 companies<China 45 companies>

Vietnam 6 companies

China 43 companies

Korea 1 companyHong Kong 2 companies

Singapore 5 companies
Philippines 2 companies

500

Malaysia 4 companies
Sri Lanka 2 companies

02015

2016

2017

Year

Manufacturing

Export/Import

R&D

Others 4%

Rubber & Elastomer 3%

1,616

INOAC Housing & Construction Materials Co., Ltd.
INOAC Living Co., Ltd., and others

Sales

2,000

<Affiliated companies>

China Japan
Asia

North
America

Sales
serviceBusiness overview ～INOAC materials utilized in a variety of fields～
Fields

Housing & Construction

Indutrial machineryTransportation

Distribution & Packaging

Electric Products

IT equipment

Medical & Welfare

Consumer products

PORON® WACELLDAMPERCELLASTO®

Color Foam®

PureCell®

EXROTH®

Moltopren

Kitchen sponge

Seam gasket for houses

Crawler Pad

Track Pad

Rubber Wheels

KsilTM

TransCool

Wheelchair Tires

Latex Sponge Puffs

U-Polypie

Waterflex

Rear Spoiler

P·E-LITE®

VAFTER

FOLEC®

MAPS®

Injection Blow Molding Bottle

THERMAX®

THERMAX®

Lightweight Headliner

Cool System

Rigid Light-Carbon

PureCell®

Rigid Light-Carbon

Garden Tape (INOTACK®)

Composites

Plastic

RubberUrethane

Material

INOAC brands

INOAC brands

We focus on adding functional value by making the most of the ideas and technologies based on the materials we have created. Our original products utilizing various materials
including complete interior items offering both design and function, support our comfortable lives.

IRC Tire was founded in 1926 as a manufacturer of tires
and tubes for bicycles. Since then, we have produced
daily-use tires for comfortable riding and racing tires forworld-class racing, building upon our experience inmanufacturing and business. For the past 30 years, wehave conducted business overseas as well.

We will continue adding value as we meet our customers’
needs through IRC brand products. HUKLA is a total-interior brand focused on beautiful form and comfortable
lifestyle. We produce top-quality furniture with excellent
design and high-grade materials to provide our customers with a pleasant feeling and healing. We believe thatthe HUKLA collection will make your life more comfortable than ever with natural texture and a variety of colorsand patterns.

AEROFLOW is an original series of bedding for women.
It has been newly developed using INOAC’s cutting-edge
materials and processing technologies. It conforms
perfectly to the feminine body and leads to the most
comfortable sleep possible.

Technological innovation
R&D

Research and development system

INOAC Corporation is engaged in R & D, full of creativity, in view of the future under the mottoof making life affluent. We are always providing new materials to a wide range of fields such as
the automotive industry, information and communication industry, electronics industry,industrial materials and consumer products by fully using compounding, foaming and molding
technologies with various kinds of urethane, plastic and elastomer that are mainly polymericand also by using other techniques for composite materials. Simultaneously, we are advancing
our R & D to reduce environmental burdens, save weight and energy, and provide highly
functional new products and new processes.

We are advancing our original new material development by regarding high-polymer material
technology such as polyurethane, rubber, resin material, and more as our core technology withINOAC Technical Center Co., Ltd. and Global Technical Division centered. We are also
promoting new material development and applied development research with an eye toward
the future with an arrangement of R&D systems in the USA, China, Thailand and othercountries, emphasizing the importance of collaborative research and technologicaldevelopment with domestic and overseas universities and public research institutions.
The technical division of each department succeeded in commercializing urethane foammasks, TURBOFLEX II, New Ino-Coat and FOLEC food trays by using the molding process
and material composition techniques. They also promote the high functionality of heat andshock resistance with urethane foam and proceed with developing products that satisfy
customer needs. The process development department created and introduced an automatedmanufacturing line that was reduced in size.

Raw materials

SafetyCompounding
Technology
Design(CAD, CAM, Design)

Environment
Foaming
TechnologyMolding
Technology

Clean

Evaluation Technology(Evaluation, CAE analysis)

Control Technology(Quality control,Production control)

Products
Urethane
RubberPlastic
Composites

ITC JAPAN
INOAC Technical Center Co., Ltd.

Urethane

Rubber &Elastomer

Plastic

New materials &composite materials

ITC CHINA
Suzhou INOAC New Polymers Co., Ltd.