In April 2009, the Sumitomo Corporation Group launched "FOCUS'10," its two-year medium-term management plan for fiscal 2009 and 2010.

The word "FOCUS" is an acronym of the key words adopted for the new management plan: F for Future (a medium- to long-term perspective), O for Originality (respect for individuality and diversity), C for Core (solid earnings pillars), U for Unity (leveraging of our integrated corporate strength), and S for Soundness (reinforcement of operational soundness and efficiency). The name as a whole expresses our intention to focus on these key elements in this medium-term management plan from now through to ’10 (2010), the second and final year of the plan. As well as referring to the year 2010, the number 10 in the plan’s title also signals our intention to build a foundation for the next 10 years.

Medium-Term Management Plan "FOCUS'10"(109KB/PDF)

Under FOCUS'10, we are focusing on the next 10 years. This means formulating a "growth scenario on a new stage" with the aim of becoming a value-creating company that leverages change to achieve growth. Based on the following two fundamental principles, we will build a foundation that enables us to continue to achieve sustainable growth regardless of external conditions.

Quantitative targets, investment plan, and indicators

Under FOCUS'10 our quantitative targets, investment plan, and indicators are as listed below.

The quantitative targets have been set based on our intention to maintain a risk-adjusted return ratio of 7.5%, which is assumed to cover our cost of shareholder’s equity, even in an austere business environment, and to restore a risk-adjusted return ratio of 15% over the medium term.

Under FOCUS'10, we have also adopted soundness and efficiency indicators with a view to performing a companywide upgrade of our balance sheet and moving into more efficient assets in order to create a foundation for achieving sustainable growth regardless of external conditions.

* "Net income" in this document means "Net income attributable to shareholders of Sumitomo Corporation" in accordance with the Statement of Financial Accounting Standards No. 160 effective April 1, 2009, and is equivalent to the term "Net income" as it appears in the consolidated financial statements for the fiscal year ended March 31, 2009.

The net income for fiscal 2009 was ¥155.2 billion, which surpassed the ¥115 billion target for the first year of FOCUS'10. The risk-adjusted return ratio for fiscal 2009 was 11.3%.

Net income for fiscal 2010, the second year of FOCUS'10, is projected to be ¥160 billion. If the target is met, the two-year total net income will be ¥315.2 billion. In that case, the two-year average of the risk-adjusted return ratio will be around 11%, which will surpass the FOCUS'10 target of over 10%.

Net increase in risk-adjusted assets was zero from the last fiscal year. The breakdown is an increase of ¥90 billion from new investments and loans, etc. and a decrease of ¥90 billion from asset replacement, decline in operating assets, etc.

Net increase in risk-adjusted assets for fiscal 2010 is projected to be ¥160 billion. If this is achieved, the two-year total will be ¥160 billion, which will exceed the original plan by ¥60 billion.

The company's total assets as of the end of fiscal 2009 were valued at 713.78 billion, an increase of ¥119.6 billon from the previous year. Consolidated free cash flow for fiscal 2009 was a positive cash flow of 451 billion.

Qualitative targets

Under FOCUS'10, in line with the two fundamental principles identified above, we will devote efforts to achieving the following qualitative targets.

1. Steady execution of selective and focused growth strategy
   We will promote the growth of our company's various businesses on the basis of a clear identification of their respective paths. By giving play to the distinctive features and strengths of each business line, we will get them to contribute through their various paths to company-wide growth. Meanwhile, in order to step up our efforts in prioritized/strategic areas, we will undertake strategic allocation of management resources, strengthen the support schemes in strategic areas, and reinforce the organizations and structures serving as a foundation for growth.
2. Thorough reinforcement of soundness and efficiency
   While we must continue to strive for the "further improvement of quality" that we pursued under the GG Plan, we will focus our energies in particular on company-wide initiatives for upgraded balance-sheet management and on the further strengthening of our internal control systems, including those applied to our group companies. Through the active, strategic replacement of assets and the implementation of balance-sheet management, we will secure capacity for new investment, improve our portfolio of businesses, and promote moves toward the shifting and upgrading of existing business models. In the area of internal controls, which serve as the foundation for globally consolidated management, we will aim for further strengthening, including the review and reinforcement of our crisis-management framework.
3. Development of human and organizational dynamism to enhance value-creation capability
   We will promote the activation of diverse human resources, working to enhance the capabilities and motivations of each individual employee. We will undertake on a globally consolidated basis to recruit and develop human resources capable of dealing with various businesses, and we will strive to strengthen our organizational human resources management so as to draw on the diverse strengths and skills of each employee and promote their further activation.