Itochu : FYE 2024 Business Results Summary & FYE 2025 Management Plan

FYE 2024 Business Results Summary

May 8, 2024

Forward-Looking Statements

Data and projections contained in these materials are based on the information available at the time of publication, and vari ous factors may cause the actual results to differ materially from those presented in such forward -looking statements. ITOCHU Corporation, therefore, wish es to caution that readers should not place undue reliance on forward -looking statements, and further, that ITOCHU Corporation has no obligation to update any forward-looking statements as a result of new information, future events or other developments.

Summary of Financial Results for FYE 2024

（Unit : billion yen）

• "Net profit attributable to ITOCHU" was ¥801.8 bil.
  Established a strong foundation towards the next growth stage, with solid earning base mainly in Non-Resource sectors, contribution from strategic investments, and improvement in underperformed businesses, while taking early measures to address future concerns.
• "Core profit" was approximately ¥789.0 bil. Driven by Non-Resource sectors, the core profit for the Q4 was approximately ¥205.5 bil, the first time exceeding ¥200.0 bil.
  Annual results for Machinery, ICT & Financial Business, Food, and The 8th Companies recorded all-time high, and the total profit also recorded all-time high for 3 consecutive years.
• "Ratio of group companies reporting profits" was 92%, recorded all-time high due to asset replacement and business polishment.
• "Core operating cash flows" was ¥823.0 bil., due to payments of interest expenses by higher interest rates and taxes, even with the stable performance in operating revenues in The 8th, General Products & Realty, and Food Companies.

Net profit attributable to ITOCHU

FYE 2023	FYE 2024	Increase/
Results	Results	Decrease
800.5	801.8	+	1.3

FYE 2024 Forecast

(Disclosed on Nov. 6)	Achievement
800.0	100%

Extraordinary gains and losses

13.0

13.0

ー

Dividend information

(per share)

Core profit(*)

787.5

*

789.0

+

1.5

Annual (Planned)

*

160 yen

(*) Core profit is shown in round figures.

Ratio (%) of group companies reporting profits		88.6%	*	92.0%	Increased	3.5pt	Interim (Paid)	*	80 yen
Core operating cash flows	*	871.0		823.0		(48.0)	(Reference)
		CAGR		13%
					Increased 0.01pt	(FYE 2011-FYE 2024)
NET DER (times)	*	0.50		0.51
	Average ROE
ROE		17.7%		15.6%			2.1pt		16%
		Decreased	(FYE 2011-FYE 2024)
EPS		546.10 yen	*	553.00 yen	+	6.90 yen			2
	*：Record High (NET DER: Best Record)

Net profit attributable to ITOCHU by Segment

FYE 2023 (*1)	FYE 2024
Results	Results
800.5	801.8

Summary of Changes from the Previous Fiscal Year

Textile [Inc/(Dec)：¥1.5 bil.(incl. Extra. G&L.（*3）：(2.5))]

（Unit : billion yen）

800		25.5	27.0
700		107.4	* 131.6
600
*	247.4	226.1
500
400
*	115.8	91.7
300		20.2	66.3
		95.1	66.2
200
		64.6	67.8
100		16.6	35.8
		108.1	89.4
0
Non-	587.8	603.5
Resource
Resource	215.6	204.6
Others	(2.8)	(6.2)

Non-	(*2)	73%	75%
Resource(%)

*: Record High

(*1) As of October 1, 2022, ITOCHU dissolved the mutual- holdings for certain group companies held by The 8th Company as minority and the other Division Company as majority, and shares of such group companies are only held by the other Division Company. Accordingly, FYE 2023 Results are reclassified in the same manner.

(*2) % composition is calculated using the total of Non-Resource and Resource sectors as 100%.

(*3) Extra. G&L. means "Extraordinary Gains and Losses".

Increased due to the stable performance in apparel-related companies resulting from the recovery of retail market because of the alleviation of the impact of COVID-19, partially offset by the absence of extraordinary gains

in the previous fiscal year.

Machinery [Inc/(Dec)：¥24.2 bil.(incl. Extra. G&L.：(1.0))]

Increased due to the favorable sales in automobile-related transactions/companies, higher earnings in

North American electric-power-related business, and the start of equity pick-up of Hitachi Construction Machinery from the 3rd quarter of the previous fiscal year.

Metals & Minerals [Inc/(Dec)：¥(21.3) bil.(incl. Extra. G&L.：0.5)]

Decreased due to lower coal prices and lower earnings in Marubeni-Itochu Steel resulting from the absence of favorable performance in North American steel pipe business in the previous fiscal year, partially offset by higher earnings in iron ore companies.

Energy & Chemicals [Inc/(Dec)：¥(24.1) bil.(incl. Extra. G&L.：10.0)]

Decreased due to the absence of favorable performance in energy trading transactions in the previous fiscal year, partially offset by the revaluation gain on a lithium-ion batteries company.

Food [Inc/(Dec)：¥46.1 bil.(incl. Extra. G&L.：14.5)]

Increased due to the improvement in logistics cost in Dole, expansion of transactions resulting from the recovery of consumer activity and higher sales prices in food-distribution-related companies, higher transaction volume in provisions-related transactions, the improvement in earnings of North American meat-products-related company, and the absence of extraordinary gains and losses in the previous fiscal year.

General Products & Realty [Inc/(Dec)：¥(28.9) bil.(incl. Extra. G&L.：1.5)]

Decreased due to the lower earnings in IFL (European pulp-related company) resulting from lower pulp prices and lower sales volume, and the absence of favorable performance in overseas real estate business in the

previous fiscal year, partially offset by the stable performance in domestic real estate transactions and the increased ownership percentage in DAIKEN.

ICT & Financial Business [Inc/(Dec)：¥3.2 bil.(incl. Extra. G&L. ：(16.0))]

Increased due to the stable transactions in ITOCHU Techno-Solutions, higher agency commissions in

HOKEN NO MADOGUCHI GROUP, and the improvement of remeasurement gains (losses) for fund held investments, partially offset by the impairment loss on Orient Corporation.

The 8th [Inc/(Dec)：¥19.2 bil.(incl. Extra. G&L.：3.5)]

Increased due to the increase in daily sales along with higher number of customers and spend per customer

resulting from enhancement of product appeal and sales promotion, in addition to the improvement in performance of group companies and impairment losses on stores, and the extraordinary gain on the sale of a domestic company, partially offset by the increase in various costs caused by changes in external environment and execution of

digital measures to strengthen business foundations in FamilyMart.

Others, Adjustments & Eliminations [Inc/(Dec)：¥(18.7) bil.(incl. Extra. G&L.：(10.5))]

Decreased due to lower earnings in CITIC Limited resulting from the absence of revaluation gain on securities business in the previous fiscal year, partially offset by the stable performance in comprehensive financial services segment, and the increase in interest expense with higher U.S. dollar interest rates.

3

Core Profit (YoY Factor Comparison)

【Total】

（Unit : billion yen）

FYE 2023 Results

FYE 2024 Results

Non-Resource

28.0

Coal

(30.5)

Non-Resource

(30.5)

Resource

(1.5)

Crude oil

(2.0)

Non-Resource

12.0

Resource

(2.0)

Approx.

Others

(1.5)

Iron ore

7.5

Resource

17.5

Approx.

Others

4.0

Others

0.5

13.0

787.5

25.0

(25.0)

(28.5)

30.0

＊ 789.0

13.0

800.5

801.8

Core profit increased by ¥1.5 bil. or 0%

Net profit

Extraordinary

Core profit

Net

Resource

Interest

Forex

Core profit

Extraordinary

Net profit

attributable

gains and

prices

gains and

attributable

to ITOCHU

losses

losses

to ITOCHU

【

Non-Resource（73% →74%(*1)）】

Food

36.5

Energy & Chemicals

(35.5)

Machinery

23.5

General Products & Realty (30.0)

ICT & Financial Business 21.0

Approx.

The 8th

16.5

Approx.

13.5

574.5

28.0

(30.5)

12.0

＊ 584.0

19.5

587.8

Core profit increased by ¥9.5 bil. or 2%

603.5

Net profit

Extraordinary

Core profit

Net

Interest

Forex

Core profit

Extraordinary

Net profit

attributable

gains and

attributable

gains and

to ITOCHU

losses

losses

to ITOCHU

【

Resource（27% →26%(*1)）】

Coal

(30.5)

Metals & Minerals

(3.5)

Crude oil

(2.0)

Approx.

Energy & Chemicals

2.0

Iron ore

7.5

Approx.

215.6

(1.0)

＊216.5

(1.5)

(25.0)

(2.0)

17.5

205.5

(1.0)

204.6

Core profit decreased by ¥(11.0) bil. or (5%)

Net

profit

Extraordinary

Core profit

Net

Resource

Interest

Forex

Core profit

Extraordinary

Net profit

attributable

gains and

prices

gains and

attributable

to ITOCHU

losses

losses

to ITOCHU

*：Record High

(*1) Non-Resource/Resource ratio of core profit	4

Extraordinary Gains and Losses

	FYE 2023
Segments	Results	Major items
		[Q4]
Textile	2.5	0.5	[Q3]Gain on the partial sales of
an industrial-material-related company:1.0
			[Q1, Q3]Losses on aircraft leased to Russian airlines in
			a leasing-related company:(14.0) [Q1:(8.5), Q3:(5.5)]
			[Q1, Q3]Gains on a specific overseas project and
Machinery	0.5	(14.0)	business:3.5 [Q1:2.5, Q3:1.0]
[Q2]Gain on the sale of a North American
			beverage-equipment-maintenance company:22.0
			Gain on the sale of a vehicle-related company:3.0
			[Q4]Impairment losses on foreign companies:(14.0)
Metals &	1.0	1.0
Minerals
Energy &	7.0	7.0	[Q4]Reversal of allowance for long-term energy contract:8.5
Chemicals
			[Q1]Gain on the group reorganization
			in North American oils and fats companies:3.5
			[Q4]Impairment loss in Dole:(22.5)
Food	(18.0)	(21.5)	Impairment loss in a North American
			meat-products-related company:(4.5)
			Impairment losses in Prima Meat Packers:(1.5)
			Gain on the reorganization in domestic sugar companies:7.0
General			[Q1]Impairment loss on sawn timber business in IFL:(1.5)
		[Q2]Revaluation gain resulting from the conversion of
Products &	5.5	(1.0)
Realty			a North American engineered wood products company
		into a consolidated subsidiary:8.5
ICT & Financial			[Q4]Gain on the sale of CONEXIO:6.5
7.0	7.0	Gain on the partial sale of a domestic company:2.0
Business
		Impairment loss in ITOCHU Techno-Solutions:(1.5)
The 8th	(1.5)	(1.5)	[Q4]Losses related to fixed assets in FamilyMart:(1.5)
Others,			[Q1]Revaluation gain on securities business in CITIC Limited:20.5
		[Q3]Impairment loss on CTEI:(2.0)
Adjustments &	9.0	(12.5)
[Q4]Impairment losses on group companies of CITIC Limited:(8.5)
Eliminations			Impairment loss on C.P. Pokphand:(1.5)
Total	13.0	(35.0)	[FYE 2023 Results] Non-Resource:13.5, Resource:(1.0), Others:0.5

(*) Major items are shown in round figures.

（Unit : billion yen）

FYE 2024
Results		Major items
	[Q4]
－	－

(0.5)

(0.5)

1.5 1.0 [Q2]Gain on the sale of fixed assets in Marubeni-Itochu Steel:0.5

		[Q1]Revaluation gain on a lithium-ion batteries company:16.5
17.0	(2.0)	[Q1-2]Gains on the sale of fixed assets
		in ITOCHU ENEX:2.5[Q1:2.0, Q2:0.5]
		[Q4]Impairment loss in an overseas energy-related company:(2.0)
		[Q1]Gain on the sale of fixed assets
		in a North American oils and fats company:4.5
(3.5)	－	[Q2]Loss from the withdrawal of a North American
		meat-products-related company:(1.5)
		[Q3]Impairment loss on a North American industrial chocolate
		company:(6.5)

[Q3]Revaluation gain resulting from the conversion of DAIKEN into a consolidated subsidiary:2.0

7.0 5.0 [Q4]Gain on the partial sale of an overseas company:3.5 Gain on the de-consolidation of an overseas real estate company:1.5

	[Q2]Gain on the sale of an overseas retail-finance-related
	company:2.5
(9.0) (13.5)	Revaluation gain on a medical-related company:2.0
[Q4]Impairment loss on Orient Corporation:(15.0)
	Lower tax expenses related to an
	overseas retail-finance-related company:2.0

2.0 (1.0) [Q3]Gain on the sale of a domestic company in FamilyMart:3.0 [Q4]Loss related to equipment in FamilyMart:(1.0)

(1.5)	(4.0)	[Q2-4]Impairment loss related to
		C.P. Pokphand/CITIC Limited, etc.:(1.5)

13.0 (15.0) [FYE 2024 Results] Non-Resource:19.5, Resource:(1.0), Others:(5.5)

5

Cash Flows

（Unit : billion yen）

• Operating Cash Flows and Free Cash Flows:
  "Cash flows from operating activities" was a net cash-inflow of ¥978.1 bil., recorded all-timehigh, due to the stable performance in operating revenues in The 8th, General Products & Realty, and Food Companies, and dividends received from equity method investments in Machinery and Metals & Minerals Companies.
  "Cash flows from investing activities" was a net cash-outflow of ¥206.0 bil., due to the payment resulting from the conversion of DAIKEN into a consolidated subsidiary in General Products & Realty Company, the acquisition of equity method investments in Metals & Minerals Company, and the purchase of fixed assets in The 8th, Food, and Energy & Chemicals Companies.
  As a result, "Free cash flows" was a net cash-inflow of ¥772.1 bil.
• Core Free Cash Flows:
  "Core operating cash flows" after deducting changes in working capital, etc. from Cash flows from operating activities was a net cash-inflowof ¥823.0 bil. "Net investment cash flows" was a net cash-outflow of ¥614.0 bil., due to the additional investment in shares in ITOCHU Techno-Solutions and the payment resulting from the conversion of DAIKEN into a consolidated subsidiary.
  As a result, "Core free cash flows" was a net cash-inflow of ¥209.0 bil.

Cash Flows	FYE 2023		FYE 2024	Core Free Cash Flows
Results		Results
		FYE 2023 Results	FYE 2024 Results
Cash flows from operating activities	938.1	*	978.1
Cash flows from investing activities	(453.8)		(206.0)
Free cash flows	484.3		772.1		871.0
					823.0
Cash flows from financing activities	(500.1)		(801.2)		478.0
Core Free Cash Flows	FYE 2023		FYE 2024		209.0
Results		Results

800

600

400

200

0

Core operating cash flows(*1)	*	871.0	823.0	(393.0)
Net investment cash flows(*2)		(393.0)	(614.0)
Core free cash flows		478.0	209.0

*: Record High

(*1) "Operating cash flows" minus "Changes in working capital" plus "Repayments of lease liabilities, etc."

(*2) Payments and collections for substantive investment and capital expenditure.

"Investment cash flows" plus "Equity transactions with non-controlling interests" minus "Changes in loan receivables", etc.

(614.0)

Core operating cash flows

Net investment cash flows Core free cash flows

(200)

(400)

(600)

6

Financial Position

（Unit : billion yen）

• Total Assets:
  Increased by ¥1,374.3 bil., compared to March 31, 2023 to ¥14,489.7 bil., due to the increase in investments accounted for by the equity method, the increase in trade receivables resulting from the increase of trading transactions, the conversion of DAIKEN into a consolidated subsidiary, and the depreciation of the yen.
• Net Interest-bearing Debt:
  Increased by ¥350.4 bil., compared to March 31, 2023 to ¥2,741.6 bil., due to the additional investment in shares in ITOCHU Techno-Solutions, dividend payments and share buybacks, and the depreciation of the yen,
  partially offset by the stable performance in operating revenues.
• Total Shareholders' Equity:
  Increased by ¥603.7 bil., compared to March 31, 2023 to ¥5,427.0 bil., due to net profit attributable to ITOCHU during this fiscal year and the depreciation of the yen, partially offset by the decrease of capital surplus resulting from the additional investment in shares in ITOCHU Techno-Solutions and dividend payments and share buybacks.
• Ratio of Shareholders' Equity to Total Assets and NET DER:
  Ratio of shareholders' equity to total assets increased by 0.7 points compared to March 31, 2023 to 37.5%. NET DER slightly increased compared to March 31, 2023 to 0.51 times.

15,000										14,489.7
			13,115.4
																							1.0
10,000
				0.50						0.51
5,000
															5,427.0
						4,823.3
											2,741.6
			2,391.2
0																						0.0
				Mar. 31, 2023					Mar. 31, 2024		(times)
		Total assets					Net interest-bearing debt
		Total shareholders' equity					NET DER

	Mar. 31,	Mar. 31,	Increase/	Brand-new Deal
		2023	2024	Decrease	2023
Total assets		13,115.4	＊ 14,489.7	+	1,374.3
Net interest-bearing debt		2,391.2	2,741.6	+	350.4
							B/S control
Total shareholders' equity		4,823.3	＊ 5,427.0	+	603.7
		appropriate for A ratings
Ratio of shareholders'		36.8%	＊ 37.5%	Increased
equity to total assets			0.7pt
NET DER (times)	*	0.50	0.51	Increased		about 0.7-0.8 times
	0.01pt
ROE		17.7%	15.6%	Decreased	Maintain high efficiency
		2.1pt	about 13-16%

• ：Record High as of the end of the fiscal year (NET DER: Best Record)

1. Due to the adoption of IFRS 17, the results for March 31, 2023 are presented post retroactive adjustment.

7

8

FYE 2025 Management Plan

May 8, 2024

Forward-Looking Statements

Data and projections contained in these materials are based on the information available at the time of publication, and vari ous factors may cause the actual results to differ materially from those presented in such forward -looking statements. ITOCHU Corporation, therefore, wish es to caution that readers should not place undue reliance on forward -looking statements, and further, that ITOCHU Corporation has no obligation to update any forward-looking statements as a result of new information, future events or other developments.

Brand-new Deal 2023 General Review (Quantitative Targets)

• Practiced "commitment-based management" exceeding the target. Consolidated net profit achieved ¥800.0 bil. for 3 consecutive years, establishing a new profit stage. Also continued to improve the financial position.

Consolidated net profit

Cash flows

NET DER

Total shareholders' equity

ROE

Ratio of group companies reporting profits

Dividend per share

Share buybacks

Target of BND2023

600.0 bil.

Positive core free cash flows after deducting shareholder returns

About 0.7-0.8 times

About 13-16%

Announcement of

"New Dividend Policy"

Continue progressive dividend policy Minimum of 130 for FYE 2024

Dividend payout ratio of 30% by FYE 2024

Execute actively and continuously

Total payout ratio of 33% for FYE 2024 (Aim at 40% when revising upward the forecast during the fiscal year)

Results

FYE 2024 results: 801.8 bil. Achieved over 800.0 bil. for 3 consecutive years

Total cash-inflow of

approx. 700.0 bil. in 3 fiscal years

0.51 times (as of the end of FYE 2024) 5.4 tril. (as of the end of FYE 2024)

18% (3 years average)

92% (FYE 2024)

Steadily executed

progressive dividend policy (FYE 2022: 110 → FYE 2024: 160) FYE 2024 dividend payout ratio: 29%

Executed total 220.0 bil. during the Medium-Term Management Plan Total payout ratio for FYE 2024: 41%

10