Environment & Infrastructure Business Unit

== HEADER ==

Organization

Planning & Administration Dept., Environment & Infrastructure Business Unit
Environment & Infrastructure Project Business Division
Global Power Infrastructure Business Division
Logistics & Insurance Business Division

Performance
Highlights
(Billions of yen)

	FY2011	FY2012	FY2013 forecast
Gross profit	51.4	54.0	57.0
Operating profit	10.5	11.0	-
Share of profit of investments accounted for using the equity method	3.2	4.2	-
Profit for the year (attributable to owners of the parent)	10.8	12.4	14.0
Total assets	606.8	575.0	-

* Results for past fiscal years were recombined in accordance with organizational reforms effective fiscal 2013.

Message from the General Manager

Michihiko Kanegae General Manager, Environment & Infrastructure Business Unit

We aim for an even higher level of growth through the integration of the infrastructure business, environmental business, and the logistics and insurance functions under our business unit.

Demand for infrastructure has increased primarily in the emerging countries, while the need for eco-friendly business models vital for making society sustainable continues to rise. Against this backdrop, we will strive to expand our stable and sustainable earnings base, while contributing to society, by building basic infrastructure matching the needs of each country and region. Furthermore, we will contribute further to the earnings expansion of the entire company and strive to generate revenues of our own by enhancing the breadth of the logistics and insurance services we provide as a core function of an integrated trading company.

We will expand our earnings base further in the global power infrastructure business including renewable energy, and in the industrial parks business overseas, which together now provide the main underpinning to our earnings. Meanwhile, we are nurturing businesses in water infrastructure, environmental solutions, and batteries as drivers to our earnings in the future.

To put these strategies promptly into action, we will strive to deploy human resources in the fields we prioritize in a timely and flexible fashion.

Business Unit Overview

Our business unit works in three divisions; the Global Power Infrastructure Business Division, Environment & Infrastructure Project Business Division, and Logistics & Insurance Business Division; to engage in a wide range of infrastructure and logistics businesses.

The Global Power Infrastructure Business Division has developed a global portfolio of I(W)PP^*1 businesses, including the Tanjung Jati B coal-fired thermal power plant (TJB) in Indonesia, and is engaged in power plant EPC^*2 overseas.

In the Environment & Infrastructure Project Business Division, we are developing businesses in a wide array of fields, including electricity retail in Japan, renewable energy, water and environmental infrastructure projects, and batteries.

Meanwhile, the Logistics & Insurance Business Division has established a strong presence building industrial parks primarily in Southeast Asia, while providing a comprehensive range of logistics and insurance functions around the world.

^*1I(W)PP: Independent (Water) Power Producer

^*2EPC: Engineering, Procurement and Construction

Distribution Map of Electric Power Operations (as of March 31, 2013)

Fiscal 2012 Results

Business Performance

Profit for the year totaled ¥12.4 billion in fiscal 2012, up ¥1.6 billion year on year. This was mainly attributable to strong performance of the power infrastructure business, resulting from the expansion of TJB completed in fiscal 2011, among other factors.

Main Investment and Loans

Acquisition of Sutton & East Surrey Water plc (SESW), a water only supply and distribution company in the U.K.
Participation in the Bluewaters power station business in Australia
Participation in the Desert Sunlight Solar Farm business in the U.S.

Business Field Overview: What We Aim to Be

Overseas Power Infrastructure Field

The Bluewaters power station in Australia

What We Aim to BeWe aim to achieve sustained growth through strategic asset replacement and the development of selected prime projects in Asia, the Middle East and the Americas.

Business Environment: Continued growth in global demand for electric power is anticipated in step with the economic development of emerging economies such as Southeast Asia and the Middle East.

Strengths and Strategies: We aim to build an optimal portfolio on a global basis, focusing on the key markets of Asia, the Middle East and the Americas, where we have extensive experience. Subsequently we aim to increase our net generation capacity to over 10,000 MW, from 5,271 MW as of March 31, 2013. In addition, we will build a high-quality earnings base by selecting prime projects and strategically replacing our assets, and by extending the scope of our business to participation in the management, operation and maintenance of assets.

Actions for What We Aim to Be: We replaced our assets by taking part in the Bluewaters power station business in Australia, while selling a thermal power station in the U.S. Meanwhile, in Indonesia, we leveraged our solid business base and operational expertise to the fullest to participate from the initial development stage in two 220 MW geothermal power plant projects, among the largest in the world, in two areas of Sumatra island.

Water Infrastructure Field

Sutton & East Surrey Water's Elmer treatment works in the U.K.

What We Aim to BeWe aim to become a comprehensive water business operator providing optimal solutions by leveraging our regional, domain and functional specialty in the business.

Business Environment: There is a growing need for safe and sanitary water environment infrastructure against a background of world population growth, urbanization and industrialization.

Strengths and Strategies: We have built strategic alliances with the largest water treatment companies in India and China, and worked together to develop BOO(T)^*1 projects involving sewage treatment in Asia and the Americas, and water production in the Middle East. In the fiscal year ended March 31, 2013, we acquired a water supply company in the U.K. as the foundation to venture into the water concession business^*2. We will participate in fields with high future growth potential, such as water treatment in Southeast Asia by public-private partnerships, water treatment in connection with unconventional energy development, and water concessions in newly emerging countries.

Actions for What We Aim to Be: We acquired SESW, which supplies potable water to approximately 700,000 people on the outskirts of London, to participate in the water concession business. Meanwhile, in Oman, we took part in a seawater desalination BOO project.

^*1BOO(T): Build, Own, Operate and then (Transfer) ownership

^*2Water concession business: A business providing integrated services from water intake to bill collection through the ownership of public water utilities.

Overseas Industrial Parks Field

Thang Long Industrial Park II in Vietnam

What We Aim to BeWe aim to expand our business base by adding value to existing industrial parks and developing new ones.

Business Environment: Amid diversifying supply chains, Japanese manufacturers are accelerating their advance into emerging markets, primarily in Southeast Asia.

Strengths and Strategies: For 20 years, we have developed an industrial parks business in Southeast Asia. We have developed, marketed and operated our own industrial parks in Vietnam, Indonesia and the Philippines. Moreover, we strive to add value to these industrial parks by providing full support from both infrastructure and services aspects to help the tenant companies start up and maintain operations. Meanwhile, we work as a sales agent to Japanese companies for prime industrial parks locally developed in Thailand, Indonesia and Cambodia.

Actions for What We Aim to Be: We are now engaged in expanding and upgrading the functions of our existing industrial parks in Vietnam, the Philippines and so on, while developing new projects in growth markets such as India and Myanmar. We also provide factories for rent within our industrial parks. This business has attracted attention from small and medium-sized enterprises seeking to enter overseas markets for the first time, as well as those seeking to mitigate the costs associated with up-front investments when entering overseas markets.

CSR Through Business Activities

The Environment & Infrastructure Business Unit's Contributions to the Development of Local Communities and Economies and the Realization of a Sustainable Society

Lavansol-1 solar power plant in France

The Environment & Infrastructure Business Unit is strongly aware of the need to contribute to society and the environment through its business activities. Since first being awarded a power plant construction contract in Indonesia in the 1960s, we have expanded our power infrastructure business in the country to power plant construction of thermal, hydro and geothermal sources and power generation at present. Over the years, we have contributed to the development of Indonesia's local communities and economy as a whole by supporting the country's burgeoning demand for electric power. Based on this track record, the Indonesian state owned electricity company has recognized Sumitomo Corporation as a valued partner who has helped Indonesia to achieve a steady supply of electric power.

In the renewable energy power field such as wind and solar power, we are working to achieve both profitability and environmental protection, while addressing issues related to energy and the environment. In addition, we launched a reuse business of lithium-ion batteries for electric vehicles with the view to realizing a sustainable, low-carbon society. We will pursue a wide range of possibilities of storage batteries, including in collaboration with renewable energy.