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In April 2009, the Group launched its fourth medium-term management plan, covering the three-year period from April 2009 to March 2012. The plan sets out a vision for the next 10 years aimed at delivering sustainable growth and weathering the increasingly turbulent business environment. The Group has already taken the first steps toward achieving the targets set out in the plan.
Under ISK’s new medium-term management plan, our goal is to regain the trust of society by conducting operations based on the principle of compliance. We aim to restore the earnings capabilities of the entire Group. To this end, we will ensure the sustainable growth of the agrochemicals business, and in order to restore the earnings base of the inorganic chemicals business, we will adopt a “select and concentrate” strategy in fields where we can differentiate our products. Through the growth and evolution of our businesses and the management that supports them, we hope to build a sound financial position by eradicating our cumulative losses as soon as possible and resume dividend payments.

< ISK as envisioned within 10 years >
Under the slogan of “Challenge for 2020”, we will establish a business foundation on which continued growth and stable earnings can be ensured by 2020, our 100th anniversary. We will transform ourselves into an enterprise with brand power and be a strong and responsible chemical company.

As a “strong chemical company”

·	Develop business with a global competitive edge based on our unique technologies.
·	Develop high-value-added and highly profitable businesses that will ensure continued growth and stable profits supported by innovative technologies.

As a “responsible chemical company”

·	Engage in environmental and social contribution activities as a good corporate citizen, keep an open dialogue with local communities, attach importance to increasing value for stakeholders, and be a corporation in which employees take pride.

Financial Indices & Target Figures (consolidates basis)

(Unit: 100 million yen)

		FY2008(Actual)	FY 2011 (Target)
Sales		1,046	1,237
Operating Income		53	148
Ordinary Income		29	124
Net Income		- 4	74
ROE		- 0.9 %	13.1%
ROA		1.7 %	7.2%
Shareholder Equity Ratio		28 %	35%

Interest-Bearing Liabilities		553	568
Foreign Exchange Rates(Avg.rates)	Yen / US dollars	100.8	100.0
Foreign Exchange Rates(Avg.rates)	Yen / Euros	139.3	130.0

·	Implementation of management based on the assumption of compliance and recovery of trust
·	Promote business activities that emphasize harmony and communication with society
·	Develop technology to form core competence and build an ISK brand that is trusted by customers
·	Strengthen financial platform through the steady accumulation of profits

1 ) Agrochemicals business


	Vision
	“Make a contribution to society through the continued development and supply of totally safe and highly effective new products for the purpose of protecting agricultural commodities and the environment.”


	Agrochemicals business strategy
·	Challenge for consolidated sales of 70 billion yen in 5 years time (fiscal year 2013)
·	Maintenance of business independence ~ construction of new sales channels and self-promotion system
·	Construction of a tripolar sales system balanced between Japan, Europe and America
·	Strengthening of product lifecycles
·	Strengthening of R&D capabilities and enhancement of the product pipeline
·	Maintenance and development of profits and international competitiveness obtainable from manufacturing with cost advantages
·	Strengthening of efforts towards the safety and security of agrochemicals
·	Business expansion based on M&A and alliances with other companies

2 ) Inorganic chemicals business


	Vision
	“Develop technical capabilities supporting the TIPAQUE brand to supply high-valued-added products for the market, and thereby help realize an affluent society.”


	Titanium dioxide business strategy
·	Achievement of an operating profit margin of more than 5%
·	Evolve technological capabilities and accelerate customer-oriented product development and product development in premium product areas
·	Focus on profitability both in Japan and overseas, work on sales expansion in markets where company products are competitive, and maintain and expand market share both in Japan and overseas
·	Establishment of a strategic product portfolio with the best mix of general purpose and premium products
·	Construction of the optimum production system for titanium dioxide
·	Environmentally and safety-friendly manufacturing
·	Business expansion based on M&A and alliances with other companies


	Functional materials business strategy
·	Contributions to the sustained growth of inorganic business and to business value enhancement ⇒ Challenge for sales of 15 billion yen
·	Focused input of management resources in eco-related business areas and business expansion
·	Implement business strategies that maximize the value of products

All matters pertaining to future events contained in these materials, including performance forecasts and business plans, are created based upon available information at the time and there is the possibility that actual performance will differ from said performance forecasts and business plans as a result of a variety of factors in the future.