Sumitomo Chemical Unveils New Three-Year Corporate Business Plan, 'Taking a Quantum Leap as a Global Company'.Tokyo, Japan, Mar 5, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Sumitomo Chemical Company, Limited today announced its new Three-Year Corporate Business Plan spanning the period from fiscal 2007 to 2009. The new Corporate Business Plan builds on the steady business expansion and profit growth achieved during the term of the current Corporate Business Plan and is modeled on its basic principles. While positioning the successful accomplishment of the Rabigh Project, with commercial operations to start in the latter half of 2008, as the most important objective to achieve, the new plan also incorporates measures designed to propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin the Company through a quantum leap quantum leap n. An abrupt change or step, especially in method, information, or knowledge: "War was going to take a quantum leap; it would never be the same" Garry Wills. in its further business development. 1. Basic Principle of New Three-Year Corporate Business Plan To achieve and consolidate high profitability and secure sustained growth potential to generate the added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
2. Basic Initiatives - Successful Accomplishment of the Rabigh Project The Rabigh Project will radically strengthen the foundation of the Company's petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. business, and will propel a quantum leap in the profitability of the business as well as significantly accelerating the globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation of the entire Sumitomo Chemical Group. At present, the most important objective is for the Company to concentrate its efforts on completing the Rabigh Project on schedule and bringing it into stable commercial operation as early as possible as well as establishing the necessary marketing structures. - Enhancing Global Management In terms of globalization, the successful accomplishment of the Rabigh Project will drive major advances in Sumitomo Chemical's business development. The Company will strengthen and enhance its corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and management systems to support the further development of its businesses on the global stage. - Enlarging ENLARGING. Extending or making more comprehensive; as an enlarging statute, which is one extending the common law. the Value-Added Component of Every Business Sector By expanding its production capacities and implementing cost rationalizations, launching new products and shifting to higher value-added products, the Company will forge ahead to further strengthen its basis of profitability in the core businesses in all six of its business sectors. - Expanding the Company's businesses in the life sciences and IT-related materials and Strengthening their Competitiveness The Company will continue to allocate its business resources in a focused and timely manner, seeking to boost profitability in areas like the life sciences and IT-related materials that are forecast to see sustained market growth. - Paving the Way for Further Growth Over the next three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company plans to devote JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 370 billion to capital investment. Meanwhile, the Company envisions a cash flow of JPY 530 generated from its business activities, and from this free cash flow, a maximum of JPY 200 billion will be set aside as a "growth reserve fund" to be used for investment opportunities with the potential to drive further growth that may arise. In its R&D activities as well, the Company will devote its efforts to the development, cultivation and early commercialization of new businesses. 3. Performance Targets
(billions of yen)
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Consolidated FY 2006 FY 2009
(Projection) Target
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Sales 1,785 2,400
Ordinary income 150 250
Net Income 91 150
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For reference: (FY 2009)
Operating income 200
Equity earnings 65
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In fiscal 2009, the final year of the new Three-Year Corporate Business Plan, the Company is targeting sales of JPY 2.4 trillion, ordinary income of JPY 250 billion, and net income of JPY 150 billion. The Company seeks to secure a robust balance sheet in fiscal 2009 by raising profitability and enhancing shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. to achieve a shareholders' equity ratio of 37% and a debt-equity ratio of 0.5. The Company will expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. the implementation of its new Three-Year Corporate Business Plan with a view to achieving a solid base of high profitability and sustainable growth throughout the entire Sumitomo Chemical Group. About Sumitomo Chemical Co. Limited Sumitomo Chemical (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :4005) is one of Japan's leading chemical companies, offering a diverse range of products in the fields of basic chemicals, petrochemicals, fine chemicals, IT-related chemicals, agricultural chemicals, and pharmaceuticals. While expanding business worldwide and aggressively pursuing cutting-edge R&D, we continually strive to contribute to the sustainable development Sustainable development is a socio-ecological process characterized by the fulfilment of human needs while maintaining the quality of the natural environment indefinitely. The linkage between environment and development was globally recognized in 1980, when the International Union of society through our Responsible Care activities. For more informaion, please visit www.sumitomo-chem.co.jp. Source: Sumitomo Chemical Co. Limited Contact: Sumitomo Chemical Co., Ltd. Corporate Communications Dept. Tel: +81-3-5543-5500 Fax: +81-3-5543-5901 Copyright [c] 2007 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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