The Ube Group is guided by the following group vision for the 21st century: "Wings of technology and spirit of innovation.That's our DNA driving our global success." The Group has already established its long-term direction, aiming to advance the Ube Group by focusing on differentiated chemicals businesses.

The Ube Group has continually sought to remake itself through relentless technology innovation, as it seeks to change with the times and adapt to shifts in the industrial landscape. These qualities are reflected throughout its corporate history, which stretches over a century from its origins as a coal mining venture in Ube, Yamaguchi Prefecture. The Ube Group's unwavering commitment to these principles is symbolized in the words "Technology" and "Innovation," which figure prominently in its group vision.

Guided by its group vision, the Ube Group will embrace a frontier spirit in seeking to achieve coexistence with the global community driven by the limitless possibilities of technology. The Ube Group will strive to leap further forward by continuing to create value for the next generation, while concentrating its business resources in segments where it has an edge.

At present, the Ube Group is formulating its new medium-term management plan covering three-year period starting in fiscal 2010, which is scheduled to be announced in the middle of May 2010.
In addition, the Ube Group has developed the medium-term management plan for three years from 2007 through 2009, named "Stage Up 2009," by mobilizing the unified strength of the entire Group under the basic policy of "Stage Up 2009" shown below.

(1) Establish a platform for profitability that ensures sustainable growth

In formulating the medium-term management plan, the Ube Group reassessed its business portfolio to identify core platform businesses that are solidly positioned to generate stable profits and cash flow, and strategic growth businesses with high potential for profits. Core platform businesses will anchor the Group, while strategic growth businesses will drive sustainable growth that is equally balanced across the Group.

Accordingly, the Ube Group will establish consolidated management targets at their highest levels ever, to be achieved by the end of the medium-term management plan. Furthermore, the entire Group will make a unified effort to establish a solid platform for profitability that enables sustainable growth.

(2) Sustained improvement of financial position

The Ube Group continues to engage in efforts to improve its financial position. Accompanying expectations of higher interest rates, the Group will implement rigorous management by focusing on cash flow to enhance its financial position.

At the same time, the Ube Group will place an even stronger emphasis on prioritizing capital investment based on the positioning of businesses within the business portfolio, in order to ensure necessary levels of investment for future growth and expansion. During the next three years, spending on capital expenditure by the Group will equal depreciation.

(3) Strengthening of CSR activities

The Ube Group will continue to implement management that emphasizes shareholder value by increasing its market value and raising dividends for shareholders. At the same time, the Group will further accelerate its CSR activities in order to meet its wider social responsibilities as a corporation. In addition to implementing environmental activities and ensuring rigorous compliance, the Group will strengthen internal controls and corporate governance while ensuring harmonious coexistence with local communities.

The key phrase of "Speed and Reliability," which was established for the previous medium-term management plan named "New 21 Ube Management Plan II," will continue to guide the Ube Group in executing the aforementioned key management strategies under the plan.

The Ube Group will accelerate implementation of the PDCA (Plan, Do, Check, Act) cycle in order to further improve its profitability and financial position. In addition to consistently achieving its targets, the Group will promote CSR initiatives to further boost the confidence of all stakeholders_from shareholders and capital markets to business partners, employees, and local communities.

( For more details of the medium-term management plan called " Stage Up 2009" please refer to "Management Plan" in "Investor  Relations.")