On April 1, 2009, the following organizational changes will take place:

 

(1) In order to strengthen companywide development, the Business Innovation Group will be reorganized and “Corporate Development Divisions” will be established. These divisions will be overseen directly by the President.

 

(2) The “Corporate Planning Division” will be established in order to strengthen functions for making comprehensive adjustments to management policy, including corporate development and control over consolidated management.

 

The Business Innovation Group was established under INNOVATION 2007 and INNOVATION 2009, and has worked to develop new businesses into the focal points of future Groups and Divisions at MC. Considering the drastically changing environment, the decision has now been made to expand this Business Group and strengthen corporate development functions. This will allow MC to quickly pick up on new opportunities from our global network, while further solidifying our “Select & Focus” approach to business.

 

(1) The system to support corporate development will be enhanced to facilitate greater development of IT business on an all-MC basis. “IT business development” is essential to strengthening companywide functions. The enhanced support system will also promote businesses that have the potential to evolve into next-generation pillars for MC, such as “New Energy” and “Environmental Business”. Furthermore, company initiatives in regional development will also be improved, including infrastructure projects in promising business sectors around the world.

 

(2) Meanwhile, MC’s “Human Care” and “Media Consumer” operations will be moved to the Living Essentials Group, considering their close connections to retail business and other areas handled by this Group. The aims here will be to pursue further growth in response to the changing times, as well as greater synergy between our consumer market strategies and all of our consumer-related business.

 

The Corporate Organization will include “Corporate Staff Section” and the aforementioned “Corporate Development Divisions”. The President will have direct and overall authority over the Corporate Development Divisions, and officers will be appointed to assist him by overseeing operations within each specific field of business.

 

Overview of Corporate Development Divisions

1. Roles of Corporate Development Divisions

Among the roles of these new divisions will be: the planning and execution of companywide, medium- to long-term growth strategies; follow up on the development of cutting-edge technologies; and provision of support to each Business Group’s development-related operations. These roles will span four specific development areas: “Functional Development”, “Business Sector Development”, “Customer Relationship Development”, and “Regional Development”.

 

2. Organizational Structure of Corporate Development Divisions

(1) Organization

(i) These divisions will include the following:

◆IT Services Development Division

◆New Energy Development Division

◆Environment & Water Development Division

◆Innovation Center

◆IT Planning Department

(ii) Committees will be set up in each development area to plan companywide strategies and policies and carry out comprehensive adjustments. In addition to the existing Energy and Natural Resources Committee, Food & Agricultural Resources Committee, and Consumer Market Strategies Committee, the “IT Management Committee” will be newly established (on February 1, 2009).

 

(2) Officers In Charge

(i) Officers will be appointed to assist the President in the four development areas. In terms of Functional Development, they will be responsible for promoting and improving IT services business, and in terms of Business Sector Development, they will be responsible for strategies in resources and energy.

(ii) These officers will maintain close cooperation with one another, and will work as a unit to assist the President with management functions. At the same time, they will formulate and plan companywide strategies pertaining to the four development areas, and promote and enhance collaboration between concerned Business Groups. Furthermore, they will be proactive in taking up new themes that may arise in each of the development areas.

With major changes taking place in the global business environment, MC must strengthen its functions for making comprehensive adjustments to management policy, including corporate development and control over consolidated management. The “Corporate Planning Division” will be established with this aim in mind. Included within this new division will be the following organizations: the Corporate Planning Department, the Consolidated Management Support Department* (newly established), the Corporate Strategy & Research Department, the Corporate Communications Department, and the IR Department.

 

* Establishment of the Consolidated Management Support Department

The office within the Corporate Planning Department that currently handles affairs pertaining to consolidated management will be spun off as an independent organization and named the “Consolidated Management Support Department”.

All particulars regarding the organizational changes outlined herein will be finalized by April 1, 2009.