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Updated on April 1, 2010

Sumitomo Chemical Company, Limited has formulated and is currently executing its Three-Year Corporate Business Plan spanning the period from fiscal 2010 to 2012. In formulating this new Corporate Business Plan, the Company first conceived its Corporate Vision based on analysis of the long-range prospects for the global economy and business environment in conjunction with its portfolio of businesses. The new Corporate Business Plan is positioned as the first step toward achieving the Company's Corporate Vision, and under the new Plan the Company will strive to quickly realize profits and cash flows from the major investments made under the previous Corporate Business Plan executed from fiscal 2007 to 2009.

Corporate Vision

The Company's Corporate Vision comprises the following.

Achieve sustainable strong growth as a stronger, more innovative global company.
Help meet pressing global challenges, such as energy and food security, and contribute to sustainable development of the global community.
Continuously enhance the value of the company.

Three strategies for realizing the Corporate Vision

In order to achieve this Corporate Vision, the Company will actively pursue its Technology Strategy, Climate Change Strategy, and Business Portfolio Strategy. Each of these strategies is outlined in detail below.

	Technology Strategy

Focus R&D resources on the three high-growth areas of Environment and Energy, Life Sciences, and ICT (Information & Communication Technology).
Implement Creative Hybrid Chemistry, combining key technologies in different areas to continually develop new technologies and products and create new value.
Pursue Green Sustainable Chemistry to develop competitive products and technologies that contribute to meeting global challenges.

	Climate Change Strategy

Achieve the world's highest level of energy efficiency.
Develop products and technologies that will contribute to the CO₂ emissions reduction.

	Business Portfolio Strategy

Achieve balance among the three areas of Bulk Chemicals (Basic Chemicals and Petrochemicals & Plastics); Life Sciences (Agricultural Chemicals and Pharmaceuticals); and ICT, battery materials and Fine Chemicals so that each account for 30% of sales by 2020.

*In fiscal 2009, Bulk Chemicals are forecast to account for 40% of sales and Life Sciences and Fine Chemicals (Fine Chemicals and IT-related Chemicals) for 50%.

FY2010 - 12 Three-Year Corporate Business Plan

The Corporate Business Plan to be implemented from fiscal 2010-2012 as the first step toward achieving the Company's Corporate Vision is outlined below.

	Basic Initiatives

1) Quickly maximize profits and cash flows from major investments

Maximize as soon as possible the profits and cash flows from the Rabigh Project and other major investments.

2) Enhance financial strength

Enhance cash flow management to strengthen the Company's financial underpinnings. Shift the composition of the business so as to strengthen resilience against exchange rate fluctuations in view of the Company’s ever-increasing ratio of overseas sales.

3) Strengthen cost competitiveness of core and commodity businesses

Establish optimal global production and sales operations as soon as possible. Strengthen cost competitiveness through thorough rationalization to build a greater presence in emerging markets, where competition is intensifying.

4) Accelerate business growth

Develop new businesses in the three high-growth areas of Environment and Energy, Life Sciences, and ICT. Promote even greater cross-sectoral business exploration and development, while applying Creative Hybrid Chemistry more broadly and effectively.

5) Implement Climate Change Strategy

6) Strengthen global management system

7) Ensure full and strict compliance; maintain safe and stable operations

	Consolidated Performance Targets

In fiscal 2012, the final year of the current Three-Year Corporate Business Plan, the company is targeting the following performance in consolidated earnings.

(Billions of yen)
	FY 2009 (Forecast)	FY 2012 Target
Sales	1,620	2,400
Operating Income	35	190
Ordinary Income	20	220
Net	10	140

Forward-Looking Statements
Statements made in this material with respect to Sumitomo Chemical’s plans, projections, strategies, beliefs, and future performance that are not historical facts are forward-looking statements that are based on information available at the time of the preparation of this material and include risks and uncertainties. Factors that could materially affect actual results of Sumitomo Chemical’s future performance include, but are not limited to, economic conditions in the areas of Sumitomo Chemical's business, demand for Sumitomo Chemical's products in markets, downward price pressure on Sumitomo Chemical's products resulting from intensifying competition, Sumitomo Chemical's ability to continue to provide products that are accepted by customers in highly-competitive markets, and movements of currency exchange rates.

Presentation

2010 to 2012 Corporate Business Plan - Supporting Materials (1.6 MB PDF)

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