Reaching New Heights as a Global Company

In order to meet the high expectations of our shareholders and investors and maximize corporate value, we will seek to achieve sustained earnings growth by capitalizing on our competitive advantages, such as the outstanding ability to develop superior technologies, strong cost competitiveness, globalized businesses, and robust financial position.

Under our Three-Year Corporate Business Plan spanning fiscal 2007-2009 in our aim to reach new heights as a global company, we are working on the following basic initiatives:

• The successful accomplishment of the Rabigh Project, a world-scale integrated oil refining and petrochemical complex in Saudi Arabia.
• Enhancement of global corporate management to support the further development of our businesses on the global stage.
• Enlarging the value added of every business sector through measures such as the expansion and rationalization of facilities, the launch of new products, and the shift to higher value-added products.
• Expanding the Company's businesses in the areas of life sciences and IT-related materials and strengthening their competitiveness through a more selective and focused business strategy.
• Paving the way for further growth through the enhancement of strategic investment and R&D efforts and the early commercialization of new developments.

We will endeavor to secure sustained business growth by swiftly and steadily pressing forward with initiatives for improving our financial performance and also implementing measures for getting on track to growth over the medium- to long-term.

I would like to express my sincere thanks to all our shareholders for your continued understanding and support.