Message from the Management

Third Consolidated Medium-term Management Plan

Kazuhisa Nakano,
President and Representative Director

I would like to begin by expressing my gratitude for the support we have received from our stakeholders.

Last April, Idemitsu Kosan Co., Ltd. ("Idemitsu") announced its basic strategy and approach to investments for its third consolidated medium-term management plan. Idemitsu has since established "Long-term Vision 2015," a new plan which looks ahead to FY 2015 in light of subsequent changes in its operating environment, and formulated the "Third Consolidated Medium-term Management Plan" (execution plan for FY 2010~2012).

Under the Third Consolidated Medium-term Management Plan, the Idemitsu Group aims to establish a balanced business portfolio in accordance with the following basic strategies in order to achieve its mission of "contributing to a society with harmony between the economy and the environment by effectively securing and using energy and by developing functional materials."

• Core Businesses (Fuel oil, Basic chemicals, Renewable energy)
  Re-structure sales/supply, enhance competitiveness, and expand business through entry into growing overseas markets
• Resource Businesses (Oil exploration & production, Coal, Uranium)
  Expand production volume through development of owned mines and secure reserves by increasing oil exploration and production efforts
• Functional Materials Businesses (Lubricants, Performance materials, Electronic materials, Agri- bio)
  Strengthen development of environment-friendly products and expand business through global development

We at Idemitsu would like to ask for your continued support and understanding as we engage in company-wide efforts to achieve our medium-term management plan and to strengthen our business foundation.

In addition, Idemitsu will celebrate its 100^th year since establishment in 2011. We will continue to stand by our "people-centered" philosophy based on a respect for human beings and to aim to become a trusted company in which society places high expectations.

April 2010

Kazuhisa Nakano
President and Representative Director
Idemitsu Kosan Co., Ltd.