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New ProductsFor companies to survive and grow, they must change with the business environment and introduce innovativeproducts that meet the needs and trends of the times. The key to this is new product development.In fiscal 2013, <strong>Toyobo</strong> was successful in developing products that are expected to grow in the environment,life science, and high-function fields.Examples in the high-function fields include new LCD and optical-use polyester films (super retarderfilms). In the environment field, <strong>Toyobo</strong> developed a new shrinkable film for labels, and in the life sciencefield, a conduit for regenerating damaged peripheral nerves.These new products are explained below.Development and Sales Launchof “Nerbridge” Peripheral NerveRegeneration Conduits<strong>Toyobo</strong> has developed a new medical device, “Nerbridge” (aconduit for peripheral nerve regeneration), that promotes theregeneration of nerves that have been damaged by diseaseor accidents.In general, when nerves are damaged by disease or accidents,patients undergo surgery for autografts or nerve suture.In the case of autografts, a healthy nerve is extracted from thepatient’s own body and transplanted to the area where nerveshave been injured, but this surgery leaves a scar on thehealthy portion the nerve is removed from, and afterward,patients may experience pain, numbness, or other side effects.On the other hand, in the case of nerve suture, the severednerves are sewn directly together, but when force is applied tothe affected area, there are cases where the nerves do not healand the patient may experience unusual or painful sensations.To solve the problems with existing treatments, <strong>Toyobo</strong> developedits “Nerbridge” medical device.“Nerbridge” conduits are inserted around the damaged portionof peripheral nerves (nerve gaps) that have been severedor otherwise damaged and then fastened. Their function is toinduce the portion of the nerve connected to the patient’s centralnervous system to regenerate and grow in the direction ofthe portion of the nerve connected to the patient’s peripheral1cmnerve endings. In addition, since “Nerbridge” conduits are composedof polygly colic acid, a new collagen, and other superiormaterials that de compose within the body, they dissolve andare absorbed by the patient’s body in about three months.Treatment using “Nerbridge” conduits is expected to be equallyeffective or more effective (as evidenced by the recovery ofsensation and other attributes) than the previous techniquesof autografts and nerve suture.For the time being, <strong>Toyobo</strong> is marketing these devices foruse limited to the regeneration of nerves in the hands, includingthe fingers. In addition, although <strong>Toyobo</strong> has receivedpermission from the Ministry of Health, Labour and Welfarefor the manufacturing and marketing of “Nerbridge” for theregeneration of peripheral nerves (excluding dura maternerves, such as those in the brain and spinal cord), <strong>Toyobo</strong> isscheduled to make cooperative arrangements with medicalinstitutions, and, when preparations have been completed,will begin step-by-step expansion beyond the treatment ofthe nerves of the hand, including the fingers.<strong>Toyobo</strong> is aiming for its sales of ¥5.0 billion annually by fiscal2016.Development of New Films for LEDand Optical Uses That Overturns theConventional Wisdom about PreviousMaterials—Development of Polyester Film That Usesthe Features of LED Light sources to EliminateInterference Fringes (“Rainbow mura”*)<strong>Toyobo</strong> has previously marketed “COsMOsHINE”, an opticalfilm made with polyester as a raw material, for use as a diffusionfilm for liquid crystal displays (LCDs), film for prism lenses,and film for indium tin oxide films in touch screens.8 TOYOBO 2013 Annual Report

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