Itochu : The Management Policy and FYE 2025 Management Plan (including Appendix)

Management Policy

The Brand-new Deal

- Profit opportunities are shifting downstream -

April 3, 2024

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Management Policy －

- Profit opportunities are shifting downstream -

We aim to achieve sustainable enhancement in corporate value,

by having all employees, from the business divisions to

the administrative divisions, always enhancing their marketing capabilities,

leveraging the assets and expertise of upstream and midstream,

which we have been building up for over 160 years since our founding, while developing and evolving downstream businesses that are closer to consumers.

Grow earnings

Enhancement of

corporate

brand value

Shareholder

returns

No growth without investments

Enhancement in qualitative aspects

Total payout ratio 40% or more

The higher of 30% dividend payout ratio

or dividend ¥200 per share

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No Growth without Investments

Accelerate growth investments starting from a downstream, leveraging a stable business foundation, to grow earnings.

Strive for further growth through the expansion of business areas

and strengthening and expanding business foundation.

Stable business

foundation

 Traditionally strong	Accelerate growth
downstream area	investments

• Assets and expertise of upstream and midstream

• Expansion of business areas
• Further strengthening and expanding business foundation

Market-oriented perspective

Developing and evolving downstream businesses that are closer to consumers

• Maximizing synergies by horizontal collaboration among Division Companies
• Business transformation and creation through business integration

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Enhancement of Corporate Brand Value

Built a "corporate brand" through high external evaluations

based on the accumulation of innovative initiatives, creating a synergy effect

with financial growth, thereby enhancing corporate value.

Based on the "market-oriented perspective," we aim to further enhance brand value by listening to the voices of the market, society, and consumers, and continuing to refine our qualitative aspects diligently.

Reinforcement of human capital

• Continuing to secure outstanding human resources by maintaining our position as the No.1 company selected by students
• Continuously cultivating a diverse pool of management talent based on their capabilities, regardless of age or gender, through our Executive Officer appointment policy
• Improving Employees' willingness to contribute by realizing "challenging but rewarding workplace" and pursue further labor productivity

Strengthening dialogue with stakeholders

• Building and accumulating trust through actively incorporating insights gained from a wide range of dialogues into our management
• Enhancing our presence through expanding our contact points with consumers through unique channels and businesses

Enhancing our contribution to and engagement with the SDGs through business activities

• Continuously responding to social demand by aiming to balance both sustaining the basic policies outlined in the previous medium-term management plan and promoting businesses that contribute to emissions reduction

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Shareholder Returns / Financial Policy

	Share-			Total			40% or more
			payout ratio
	holder
				The higher of 30% payout ratio or dividend ¥200 per share
	returns			Dividends
	policy			While based on principle of 30% payout ratio, also consider the minimum dividend of
					¥200 per share with an eye to the profit stage in the future
								Increase of ¥40 from
								the previous fiscal year
					Total payout ratio		200		Dividend ¥200
					Dividend per share (yen)	(Minimum)	per share or more

Total payout ratio

40% or more

（FYE）

Share buybacks (Billions of yen)

16.2 27.9 68.0 62.0 13.5 60.0 60.0 100.0 Execute share buybacks

actively and continuously

Financial	Maintaining financial foundation based on balancing three factors
policy	(Growth investments, shareholder returns, and control of interest-bearing debt)

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FYE 2025 Management Plan

Profit Plan

Consolidated

net profit

¥880.0 billion

ROE

16％

Shareholder

Returns

Total payout ratio

Aiming at 50％

Dividends

Minimum of ¥200 per share

(Increase of ¥40 from the previous fiscal year)

Share buybacks

Approx. ¥150.0 billion

Growth

Investments

Investment

amount

Maximum ¥１trillion

Core operating cash flows after deducting shareholder returns in FYE2025

• Surplus capital in the previous medium-term
  management plan

NET DER

Less than 0.6 times

*1	The assumptions for major indicators are as follows: 140 yen/US$ for exchange rate (average),
	80 US$/BBL for crude oil (brent), 0.4% for interest rate (TIBOR 3M) (¥),
	and 5.0% for interest rate (SOFR 3M) (US$).
*2	The profit plan by segment and the outlook for other detailed information will be announced on May 8th.	6

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The Brand-new Deal Appendix

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The Past Medium‐Term Management Plan

（Brand-new Deal）

General Review ｜FYE 2012 - 2024

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GeneralReview The Growth Trajectories

Overcoming environmental changes and steadily achieving growth,

thereby raising the profit stage step by step.

（Billions of yen） Consolidated Net Profit					Establishment
			of ¥800.0 billion
						profit stage
800
				Establishing a	Continued to achieve
				foothold for
600				¥500.0 billion	significant growth
Building an earnings

base aimed at ¥400.0 billion

400¥300.0 billion

Profit stage

200

BND2012 BND2014 BND2017 BND2020BND2023

0	2011	2024

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