1. October 2005 Overview of Ethylene extension in Middle East

2. 2 2000→2030 energy consumption to increase by 1.7%/year Coal: 1.4% Oil: 1.5% (Rise of non-OECD consumption) Gas: 2.4% (New power station and increasing fuel conversion) ▶ Due to increased production of natural gas (mainly methane), ethane extraction to steadily increase 2000→2010 ❑ Ethylene demand ( ≒ production) to increase 4.9%/year - Derived from gas; 30 million tons/year (6.6%/year) (ethane, propane, butane) - Derived from liquids; 20 million tons/year (3.5%/year) (naphtha, gas oil) ❑ Share derived from gas to increase from 38 to 45% ▶ Use of low-cost ethane gas is indispensable for future petrochemical operations Energy Situation and Ethylene Demand (Source: METI, Sumitomo Chemical Estimates)

3. 3 Future additional ethylene capacity in Middle East Company2005200620072008 Saudi Arabia JUPC Chevron Phillips YUPC Sharq 200 250 800 1,200 Iran Amir Kabir Maroun PC Pars PC Jam PC 520 1,100 1,000 1,320 Qatar Qapco Exxon Mobil Q-Chem 200 1,000 1,300 KuwaitEquate 850 （ KT A ）

4. 4 Outline of the Rabigh Project: Establishment of a Joint Venture Rabigh Refining facilities (existing) Crude distillation capacity: 400,000 barrels/day Joint Venture (Equal Capital Contributions) * Construction to start at end of 2005, start of operations planned for late 2008 Oil Refining Upgrading existing facilities Petro- chemicals Building an ethane cracker and other facilities Transfer of existing refining facilities to joint venture Creating an integrated operations from oil refining to petrochemicals

5. 5 Topper An Integrated Complex from Oil Refining to Petrochemicals FCC Ethane Cracker Naphtha Kerosene Gas Oil Gasoline Heavy Oil Products, etc. Ethylene (about 1.3 million tons/year) MEG ( 600,000 tons/year) Crude Oil Butane Ethane Propylene (0.9 million tons/year) PP [Block] (350,000 tons/year) Residual Oil New Company Upgrading oil refining Status of the Rabigh Project 400,000 barrels/day Easy Processing PE (250,000 tons/year) C4LLDPE (350,000 tons/year) HDPE (300,000 tons/year) PP [Homo] (350,000 tons/year) PO (200,000 tons/year) 10,000 – 15,000 barrels/day 950,000 cubic feet/day Petrochemicals Aiming to Start Construction in 4 th Quarter of 2005 and Bringing the Complex on Stream by the End of 3 rd Quarter of 2008

6. 6 Characteristics of the Rabigh Project Existing Refinery  Ideal plant configuration for achieving integration with petrochemical complex * A topper only, readily adaptable for higher utilization of fractional streams.  World-scale processing capacity of 400,000 barrels/day  Easy access to existing infrastructure (raw material pipeline, berths, tanks, etc.)  Ideal plant configuration for achieving integration with petrochemical complex * A topper only, readily adaptable for higher utilization of fractional streams.  World-scale processing capacity of 400,000 barrels/day  Easy access to existing infrastructure (raw material pipeline, berths, tanks, etc.) Cost Competitiveness  Olefins from low-cost residual oil at new FCC unit  Ethylene from cheaper ethane & the new ethane cracker  Low logistics costs due to proximity of Jeddah port (160 km away) and private port facilities * Containers availability gives freight cost advantage.  Olefins from low-cost residual oil at new FCC unit  Ethylene from cheaper ethane & the new ethane cracker  Low logistics costs due to proximity of Jeddah port (160 km away) and private port facilities * Containers availability gives freight cost advantage.

7. 7 Strategic Position in Sumitomo’s Petrochemical Business Saudi Aramco’s Rabigh Project Upgrading the world-class oil refinery at Rabigh Constructing a large-scale petrochemical plant Pursuing economies of scale and synergies from the complete integration of world-scale oil refining and petrochemical operations Sumitomo Chemical’s business strategy and competitive strengths best match the Rabigh project Securing low-cost feedstock overseas Mobilizing advanced technologies in petrochemical operations Utilizing broad marketing base in Asia Significant earnings enhancement of Sumitomo’s petrochemical business