ITOCHUNatural Rubber Group

1

Name Itochu Corporation

Founded 1858

Incorporated 1949

Offices 150 in 74 countries

Sales ’09 JPY10,306.8 BIL

Profit ’09 JPY128.2 BIL

Common Stock JPY202.2 BIL

2

ITOCHU CORPORATION

TEXITILE

MACHINERY

AEROSPACE & MULTIMEDIA

ENERGY, METAL & MINERAL CHEMICAL, FOREST PRODUCTS & GENERAL

MERCHANDISE

FOOD

FINANCE, INSURANE & LOGISTICS

General Merchandise Dept.

Tire sectionNatural Rubber

Section

NEW BUSINESS DEVELPMENT

3 Copyright © 2010 ITOCHU Corporation. All Rights Reserved.

Overseas Offices : 136

Domestic Offices : 15

Group Companies : 413(Including overseas offices)

*As of March 31, 2010

Global Network

4Copyright © 2010 ITOCHU Corporation. All

Rights Reserved.

Forest Products & General Merchandise Logs, Lumber, Wood fiberboard, Imported

building materials, Wooden building materials,

Wood chips, Wood pulp, Recycled paper, Cotton

linter, Paper, Paperboard, Paper products,

Natural rubber, Tires, Footwear, Furniture, Glass, Cement,

Slag, Landscape materials, Refractory materials and

products, Natural gypsum, Biomass fuels (chips, pellets)

Chemicals Basic chemicals, Aromatics, Raw materials for

synthetic fibers, Organic chemicals, Agricultural

chemicals, Methanol, Ethanol, Solvents,

Specialty chemicals, Pharmaceuticals, Inorganic

chemicals, Chemical fertilizers, Raw materials for synthetic

resins, Vinyl chloride, Synthetic rubbers, Electronic materials,

Thermoplastic and thermosetting resins, Resin additives,

Packing materials

• Chemicals, Forest Products & General Merchandise Company

The Chemicals, Forest Products & General Merchandise Company develops business with a wide-

range of industries; from materials to finished products.

The Forest Products & General Merchandise Division, which has adopted “the home and living” as its

keywords, is actively engaged in all of the value chains by expanding its operations and trading

activities in such segments as building products & materials, pulp and paper, and rubber and tires.

The Chemicals Division also has an extensive product portfolio, ranging from various petrochemicals

to pharmaceutical products and electronic materials. This division conducts a global trading business

involving these items. The division is working to create a well-balanced portfolio through strategic

operational investments in China and Asia, as well as in Europe and the United States.

Our Business

Tire Section

U.K.

GMN

RUS

JPN USA

Dubai

CEE

(Branch)

(Branch)

YRUS

YRPZRUS

Scan Y/Scandinavia

KOR BSTK

TOKYO H/Q

Subsidiaries & Group

LLC

Natural Rubber

General Merchandise Dept.

TIRE MFG.

P.B.TIRE

BRANDTIRE

Consolidated sales(2010)Approx

US$ 2,500 Mil

Tire : US$ 1,500MilRubber : US$ 1,000Mil

ITOCHU Tire & Rubber Global Network

ITOCHU RUBBER GROUP HISTORY

7

1955 1988 1990 1996 1999

Start as Trader

@TokyoHandle 220,000mt

(4% of World Market)Invest Factory in

Thailand ,TRC

Invest Factory in

Indonesia, ABP

Invest Trading Company

Singapore, RNA

TraderTrader with

FactoryFactory

with Trader

(80%)

20041999

(26%) (45%)

Itochu

1996 2003

Prashida(51%)Itochu(49%)

Itochu

(100%)

1987

Private(100%)

1991

Itochu(33%), STA(33.5%), SLR(33.5%)

ITOCHU RUBBER GROUP

8

ITOCHUGeneral Merchandise Dept.

INDONESIA ABP

PT Aneka Bumi Pratama

1114 people, 2 factories

2 Purchasing offices

THAILAND TRC

Thaitech Rubber Corp.

944 people, 3factories

SINGAPORE RNA

Rubbernet Asia Pte Ltd.

10 people,1 office

Muara Bungo

Lubuk Linggau

PT. Aneka Bumi Pratama

1st Factory 1996～ @Palembang 7,000mt/mo

2nd Factory 2006～ @Jambi 7,000mt/mo

Products: SIR20, SIR10

100%

・1987～ Foundation by private capital

・1993～ Prasidha acquired 100% shares

・1996～ Itochu joint with Prasidha (49 : 51）・2003～ Itochu acquired 100% shares

9

ABP Production ( MT / Year )

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11(F)

JMB

PLG

10

Thaitech Rubber Corp. Ltd. 1990～

Southland

33.5%

Sri Trang

33.5%

ITOCHU CORP.

33%

Thaitech

• 1991~ 5,000mt/mo1st Factory @Hatyai

• 1996~ 5,000mt/mo2nd Factory @Trang

• 2006~ 5,000mt/mo3rd Factory @Pattani

TRC Production Volume(mt)

-

50,000

100,000

150,000

200,000

250,000

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011(est)

Pattani(AG3)

Trang(AG2)

Hatyai(AG)

11

Southland

20%

ITOCHU CORP.

80%

RubberNet

NR Trading/Distributing Company

Inherit Function from Itochu Head Quarter

Top 5 Rubber Dealer in the World

Turnover Tonnage 230,000mt

RubberNet (Asia) Pte Ltd 2000~

SALES (MT)

0

50,000

100,000

150,000

200,000

250,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

12

RubberNet (Asia) Pte Ltd 2000~

Main business<Distributor>RNA’s main function is to act as a distributor in the market. It means that we are the sales representative of our group factories, “TRC” and “ABP”, a shareholder, “SLR”, and a partner “STA”.

The ratio of total purchase from our group reaches to over 90%, which means we secure our cargo from reliable suppliers. On the other hand, we sells these natural rubber to world top 10 major tire makers.

<Dealer/Trader>Another function is to act as a dealer/trader. We may hold own position balance based on our market view. Besides, we trade actively in futures market, TOCOM and SICOM, to create “Arbitrage Position” for maximizing our profit or to hedge our physical sales.

<Main customers>

13

Tire Market & ITOCHU Group Sales Breakdown

Tire MakersTotal Sales

US$ 126,500Mil

ABP Sales ‘10Total 130,000mt

TRC Sales ‘10Total 141,000mt

CHINA

64%

PIRELLI

20%

TOYO

7%

GY

4%

SMPT 1%KOREA 3%

TRC SALES '10

14

Natural Rubber Supply-Demand

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

GAP 90 60 -160 370 -170 -60 -210 -140 -300 -70 -70 -50 10

・Emerging countries keep high rate for GDP growth.

・Emerging countries lead global car sales.

・Production growth for natural rubber is limited. Natural rubber is still tight in coming a few years.

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

550.00

600.00

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 1115

Natural Rubber Price movements (1992 ~2011)

“ Sicom TSR 20 USC/kg ”

Commodity Boom

Thai Drought

China Buying

Economic Crisis

Lowest PriceUSC470/kgNov.2001

Lehman Shock

Natural Rubber Specification

16

Natural

Rubber

Liquid

RubberLATEX

Solid

RubberRSS

Ribbed Smoked

Sheet

TSR

Technical Specified Rubber

SIR

Standard

Indonesia Rubber

STR

Standard

Thai Rubber

SMR

Standard

Malaysia Rubber