February 23, 2010
Sumitomo Chemical Unveils New Corporate Business Plan (FY 2010-2012)
Sumitomo Chemical Company, Limited today announced its new Corporate Business
Plan spanning the three years 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 ispositioned as the first step toward achieving the Company’s Corporate Vision, andunder the new Plan the Company will strive to quickly realize profits and cash flows
from the major investments made under its current Corporate Business Plan.
1. Corporate Vision
The Company’s Corporate Vision comprises the following.
(1)Achieve sustainable strong growth as a stronger, more innovative global company.
(2)Help meet pressing global challenges, such as energy and food security, andcontribute to sustainable development of the global community.
(3)Continuously enhance the value of the company.
2. 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 ofthese strategies is outlined in detail below.
(1)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 andtechnologies that contribute to meeting global challenges.
(2)Climate Change Strategy
・Achieve the world’s highest level of energy efficiency.
・Develop products and technologies that will contribute to the CO2 emissions
reduction.
(3)Business Portfolio Strategy・Achieve balance among the three areas of Bulk Chemicals (Basic Chemicals andPetrochemicals&Plastics);

LifeSciences(AgriculturalChemicalsandPharmaceuticals); and ICT, battery materials and Fine Chemicals so that each1

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%.

3. New 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.
(1)Basic Initiativesⅰ)Quickly maximize profits and cash flows from major investments
Maximize as soon as possible the profits and cash flows from the Rabigh Projectand other major investments.
ⅱ)Enhance financial strength
Enhance cash flow management to strengthen the Company’s financial
underpinnings. Shift the composition of the business so as to strengthen resilienceagainst exchange rate fluctuations in view of the Company’s ever-increasing ratioof overseas sales.
ⅲ)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.
ⅳ)Accelerate business growth
Develop new businesses in the three high-growth areas of Environment andEnergy, Life Sciences, and ICT. Promote even greater cross-sectoral businessexploration and development, while applying Creative Hybrid Chemistry more
broadly and effectively.
ⅴ)Implement Climate Change Strategyⅵ)Strengthen global management systemⅶ)Ensure full and strict compliance; maintain safe and stable operations(2)Consolidated Performance Targets
Under the new Corporate Business Plan, the Company will aim to achieve
consolidated net sales of 2.4 trillion yen, operating income of 190 billion yen, ordinary
income of 220 billion yen, and net income of 140 billion yen in fiscal 2012, the final
year of the Plan.
The Company will seek to enhance cash flows for a robust balance sheet while also
increasing shareholder equity to achieve a debt-equity ratio of 1.0 by the final year ofthe Plan.

2(Billions of yen)
FY 2009

FY 2012(Forecast)Target

１,６２０

２,４００

Operating Income

３５１９０

Ordinary Income

２０２２０Net Income

１０１４０Sales

The Company will expedite the implementation of its new Corporate Business Plan toachieve its Corporate Vision throughout the Sumitomo Chemical Group, thereby further
strengthening and expanding its corporate fundamentals as well as the scale of its
businesses to continually enhance shareholder value while at the same time
contributing to the sustainable development of global society.
Forward-Looking Statements
Statements made in this material with respect to Sumitomo Chemical’s plans, projections, strategies, beliefs, andfuture 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 inmarkets, 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-competitivemarkets, and movements of currency exchange rates.

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