Corporate Governance

ITOCHU Group Corporate Mission and Guideline of Conduct
Corporate Governance Report (1.15MB)
Independence Criteria
Compliance with the Corporate Governance Code
Reason for Appointment as Outside Directors and Outside Audit & Supervisory Board Members
Significance of Holding and ITOCHU’s Policy on the Governance of Its Listed Subsidiaries

Basic Policy

ITOCHU Group adopts the spirit of “Sampo-yoshi” as our corporate mission. In Japanese, “yoshi” means “good,” “sampo” means three sides consisting of (1) the seller (“urite”), (2) the buyer (“kaite”) and (3) society (“seken”). “Sampo-yoshi” is therefore “urite-yoshi” (meaning “good for the seller”), “kaite-yoshi” (meaning “good for the buyer”) and “seken-yoshi” (meaning “good for society”). This spirit originates from the message of our founder Chubei Itoh I (the merchant based in the former Ohmi Province of Japan (present-day Shiga Prefecture). We sincerely wish to contribute to solving social issues by not purely seeking to maximize our profits but also considering and responding to the expectations and trust of all of our surrounding stakeholders, including our customers, our shareholders and our employees. “Sampo-yoshi” is the business spirit by which we aim to bring a positive effect into the world and to contribute to realizing a sustainable society for all. Furthermore, we adopt “I am One with Infinite Missions” as our guideline of conduct. These words mean that each individual employee should consider his or her business conduct on his or her own initiative in order to complete our infinite missions aim for better business operations which are good for the seller, good for the buyer, and good for society as well as for a better future.

It is our fundamental management policy to build a fair and good relationship with various stakeholders based on our corporate mission and our guideline of conduct and thus improve our corporate value from a long-term perspective. In accordance with this policy, with the intention to ensure proper and efficient execution by management, we will enhance the transparency of decision-making and establish a corporate governance system in which monitoring and supervision functions are appropriately incorporated.

A strong leadership and a transparent decision-making system are pillars of good corporate governance. ITOCHU adopts an organizational structure with the presence of Audit & Supervisory Board (kansayaku secchi kaisha). In recent years, ITOCHU has gradually shifted to a governance model where executive officers decide and carry out the day to day business under the direction and supervision of the Board of Directors, along with implementing measures to strengthen monitoring.

In order to separate execution by and monitoring over management, we reduced the number of executive Directors and the increased percentage of Outside Directors on our Board of Directors to one-third or more from April 2017. We will also maintain this percentage of Outside Directors also in FYE 2021 and onwards. Additionally, ITOCHU has established, as voluntary advisory committees to the Board, a Governance, Nomination and Remuneration Committee, which is chaired by an Outside Director and comprised of a majority of Outside Directors and a Women’s Advancement Committee as another voluntary advisory committee which is chaired by an Outside Director, with at least half of its members comprised of Outside Directors and Audit & Supervisory Board Members (collectively “Outside Officers”), and has continued to monitor management through the eyes of Outside Officers. ITOCHU continues to maintain oversight of management by Outside Officers.

In appointing Outside Officers, ITOCHU places great importance on their independence, and in this connection, ITOCHU has adopted its own independence criteria, augmenting the independence criteria established by the Tokyo Stock Exchange.

This highly independent Board of Directors monitors execution by management as well as deliberates the execution of business that is of high quantitative or qualitative importance. The Company believes this arrangement facilitates not only appropriate monitoring over execution by management but also the consideration of important business execution from an external perspective.

It is also vital that ITOCHU disclose its financial and non-financial information to stakeholders as part of good governance. For this purpose, ITOCHU adopts a “Basic IR Policy” to further promote multi-party stakeholder dialogue, and makes best efforts to disclose such information both timely and adequately. Through communication with its stakeholders, ITOCHU aims to enhance its corporate value on a long-term basis.

We believe that our current corporate governance structure accords with good and effective corporate governance called for by the Tokyo Stock Exchange, in its Corporate Governance Code. ITOCHU will continue to evaluate and improve its corporate governance structure so that it always best suits ITOCHU in any given moment and time in its corporate history.

Compliance with Corporate Governance Code

As of June 21, 2024, ITOCHU complies with all principles set forth in Corporate Governance Code.
For details, please refer to Corporate Governance Report (1.15MB)

Establishment of the Governance, Nomination and Remuneration Committee and the Women’s Advancement Committee as advisory committees to the Board of Directors
(Please refer to "Overview of ITOCHU's Corporate Governance and Internal Control System" below)
Establishment of policy and process for appointing executive officers, candidates for Directors and candidates for Audit & Supervisory Board Members (Please refer to below)
Establishment of policy on holding listed shares for purposes other than pure investment and standards for the exercise of voting rights thereon (Please refer to below)
Adoption of our own independence criteria regarding the judgement on the independence of outside Directors and outside Audit & Supervisory Board Members (Please refer to below)
Formulation of Basic IR Policy (Please refer to Basic IR Policy)

Main Topics discussed at the Board Meeting

FYE 2024

Financial Results, Dividends, Financing, Treasury Share Acquisitions
FYE 2024 Management Plan, Overview of Results of the Evaluation as to the Effectiveness of the Board of Directors
Policy for the holdings of listed shares other than affiliates for FYE 2024
Recommendation of Women’s Advancement Committee
Report with respect to the sustainability development
Important Investment Projects
- Acquire 100% shares of ITOCHU Techno-Solutions Corporation
- Acquire 100% shares of Daiken Corporation
Etc.

FYE2023

Financial Results, Dividends, Financing, Treasury Share Acquisitions
FYE2023 Management Plan, Overview of Results of the Evaluation as to the Effectiveness of the Board of Directors
Report with respect to encountering cyber security incidents
Report with respect to the activity of the Women’s Advancement Committee
Report with respect to the sustainability development
Important Investment Projects
- Investment in AMMC Iron Ore Project in Canada
- Divestment of the Shares in CONEXIO Corporation
Etc.

Results of Board Evaluation

ITOCHU has conducted an evaluation as to the effectiveness of the Board of Directors and Audit & Supervisory Board Members once a year since FYE 2016 utilizing external consultants, and the Board of Directors has analyzed and evaluated the findings after deliberation by the Governance and Compensation Committee (excluding FYE 2017).

Overview of Results of the Evaluation as to the Effectiveness of the Board of Directors of ITOCHU Corporation

Back number

FY2023 Overview of the Results of Board Evaluation(73KB)

FY2022 Overview of the Results of Board Evaluation(71KB)

FY2021 Overview of the Results of Board Evaluation(70KB)

FY2020 Overview of the Results of Board Evaluation(16KB)

FY2019 Overview of the Results of Board Evaluation(17KB)

FY2018 Overview of the Results of Board Evaluation(12KB)

Steps taken to strengthen Corporate Governance

1999	- Introduction of Executive Officer System	To strengthen decision-making and supervisory functions of the Board of Directors
2011	- Appointment of two Outside Directors	To increase the effectiveness of the supervision of management and improve the transparency of decision making
2015	- Response to Japan's Corporate Governance Code - Establishment of the Governance and Remuneration Committee and the Nomination Committee - Revision of the Board of Directors' Regulations	To strengthen the Board of Directors' supervision function and increase transparency
2016	- Increase in the number of Outside Directors(from two to three) - Reorganized the Governance and Remuneration Committee and the Nomination Committee(appointing Outside Directors as chairmen and accounting outside executive half or more of members) - Implemented Board of Directors' effectiveness evaluation	To strengthen the Board of Directors' supervision function
2017	- Transition to a Board of Directors with a monitoring-focused structure - Increasing the ratio of Outside Directors to at least one-third - No Directors except one Division Company President appointed to concurrent positions	For thorough separation of management execution and supervision
2018	- Transition to a Management Structure with a Chairman & CEO and a President & COO - Improve diversity of Outside Directors - Maintain an Outside Directors' ratio of at least one-third - Discontinue consultant and advisor system	Maintenance of the Board of Directors' system in response to internal and external changes
2019	- Maintain the ratio of Outside Directors more than one-third at any time - Further improve the diversity of Outside Directors - Achieve 20% of the ratio of female Directors at the Board of Directors (in addition, two female executive officers (non-director)) - Formulate the ITOCHU’s Policy on the Governance of its Listed Subsidiaries - Reorganized the Nomination Committee (Majority members of both the Governance Committee and the Nomination Committee are outside executives)	Further improvement of the effectiveness of the Board of Directors
2020	- Maintain the ratio of female Directors at 20% - Improve the governance structure of listed subsidiaries	Maintenance and improvement of the effectiveness of the Board of Directors and improvement of group governance system
2021	- Appointed a person with the knowledge of corporate management as Outside Director - Establishment of the Women’s Advancement Committee as an advisory committee to the Board of Directors	Further improvement of diversity of the Board of Director while strengthening its supervision function
2022	-Maintain the diversity of the Board of Directors (ratio of female Directors at 20% and election of the Outside Director with the knowledge of corporate management) - Decision of the Reformation to the Governance, Nomination and Remuneration Committee, with Outside Director as chairpersons and a majority of Members as Outside Directors	Further improvement of the effectiveness of the Board of Directors
2023	-Starting Operation of the Governance, Nomination and Remuneration Committee - Increase the number of female Executive Officers (female ratio among all officers including Executive Officers has increased to 21% from 12% )	Further improvement of the effectiveness of the Board of Directors To strengthen the executive function

Corporate Governance System (As of June 21, 2024)

Type of system	Company with the Board of Directors and the Audit & Supervisory Board
Number of Directors (Of which, number of outside Directors)	11(4) *2 of the Outside Directors are female, and the average term our internal Directors have been on overseas assignments is 5.4 years.
Number of Audit & Supervisory Board Members (Of which, number of outside Audit & Supervisory Board Members)	5(3)
Term of office for Directors	1 year (the same for Outside Directors)
Adoption of an Executive Officer System	Yes
Organization to support CEO decision-making	Headquarters Management Committee (HMC) deliberates on companywide management policy and important issues
Advisory committees to the Board of Directors	Governance, Nomination and Remuneration Committee, Women’s Advancement Committee
Director Remuneration System Details of Corporate Officer Remuneration System	(1) Monthly remuneration (Fixed) Determined according to factors that include degree of contribution to ITOCHU, including addressing climate change, ESG and SDGs, based on a standard amount for each position (2) Performance-linked bonuses (Variable(Single Year)) Total amount is determined based on consolidated net profit, and individual amount is determined in relation to the position points for the Director, etc. (3) Share price-linked bonuses (Variable(Medium- to Long-term)) Calculated by adding the evaluation of the relative growth rate of ITOCHU’s share price compared to Tokyo Stock Price Index (TOPIX) to the amount of increase of ITOCHU’s share price for two consecutive fiscal years (4) Performance-linked stock remuneration (Variable(Medium- to Long-term)) number of shares delivered as remuneration is determined based on consolidated net profit and in relation to the position points for the Director Outside Directors paid monthly remuneration only
Independent external auditor	Deloitte Touche Tohmatsu LLC

Overview of ITOCHU’s Corporate Governance and Internal Control System（As of June 21, 2024）

CEO＝Chief Executive Officer　 COO＝Chief Operating Officer　 CSO＝Chief Strategy Officer
CAO＝Chief Administrative Officer　 CFO＝Chief Financial Officer　 CXO＝Chief Transformation Officer　
HMC＝Headquarters Management Committee　 ALM＝Asset Liability Management
CAO is the chief officer for compliance. Also, each Division Company has a Division Company president.
Internal control systems and mechanisms have been implemented at every level of ITOCHU. Only the main internal control organization and committees are described herein.

Advisory Committees to the Board of Directors

Name	Function
Governance, Nomination and Remuneration Committee	Deliberates and advises on proposals related to nomination and dismissal of Executive Officers, nomination and disposal of Senior Operating Officers, nomination of candidates for Directors and Audit & Supervisory Board Members, dismissal of Directors and Audit & Supervisory Board Members, appointment and dismissal of responsible Directors and officers, consideration of the succession plan, remuneration system for Directors and Executive Officers and other matters on corporate governance
Women’s Advancement Committee	Deliberates and advises on proposals relating to policies, strategies, and promotion measures to promote the empowerment of female employees

Name

Function

Governance, Nomination and Remuneration Committee

Deliberates and advises on proposals related to nomination and dismissal of Executive Officers, nomination and disposal of Senior Operating Officers, nomination of candidates for Directors and Audit & Supervisory Board Members, dismissal of Directors and Audit & Supervisory Board Members, appointment and dismissal of responsible Directors and officers, consideration of the succession plan, remuneration system for Directors and Executive Officers and other matters on corporate governance

Women’s Advancement Committee

Deliberates and advises on proposals relating to policies, strategies, and promotion measures to promote the empowerment of female employees

Please refer toEnsuring Diversity of Officers(258KB)for the composition of each advisory committee.
Please refer toSpecial Feature on Governance：Women’s Advancement Committee for Women’s Advancement Committee.

Principal Internal Committees

Name	Objectives
Internal Control Committee	Deliberates on issues related to the development of internal control systems Chairman : CSO
Disclosure Committee	Deliberates on issues related to business activity disclosure and on issues related to the development and operation of internal control systems in the area of financial reporting Chairman : CFO
ALM Committee	Deliberates on issues related to risk management systems and balance sheet management Chairman : CFO
Compliance Committee	Deliberates on issues related to compliance Chairman : CAO
Sustainability Committee	Deliberates on issues related to sustainability, SDGs, and ESG, excluding governance related issues Chairman : CAO
Investment Consultative Committee	Deliberates on issues related to investment and financing Chairman : CXO
New Headquarters Project Committee	Deliberates on issues related to New Headquarters Project Chairman : CAO

Ensuring Diversity of Officers

ITOCHU’s officers appointed in accordance with the “Policy and Process for Appointing Executive Officers” described below, both inside and outside, are engaged in management with their knowledge, experience and high level of insight in their respective fields. With respect to Outside Directors and full-time Audit & Supervisory Board Members, ITOCHU indicates the areas in which they are expected to contribute to the management of ITOCHU, in order to make maximum use of their specialized perspectives and high level of insight. Discussions with each officer are also reflected in deciding the areas. Please refer to Ensuring Diversity of Officers for the so-called skill matrix, which lists the principal specialized area of experience and areas of public potential contributions that should be provided by the Board of Directors.

Policy and Process for Appointing Executive Officers, Candidates for Directors and Candidates for Audit & Supervisory Board Members

[Policy and Process for Appointing Executive Officers]
Executive officers are appointed annually by the Board of Directors among, in principle, employees regarded as candidates for executives based on our HR system with high integrity and exceptional ability (or those who have already been appointed as Executive Officers) who are judged to be capable of assuming the role as the Executive Officers. Additionally, in order to reflect diverse opinions in our management, we will actively promote the appointment of women as the Executive Officers, and particularly appoint talented women who are expected to grow its competence regardless of age. For Executive Officers with managing titles, Executive Officers of important posts including Presidents of Division Companies and Officers responsible for overseeing each administrative functions, we will select individuals who are deemed suitable to shoulder the responsibilities that come with those positions from a wide talent pool that is constituted primarily from individuals with Executive Officer experience. Candidates for Executive Officers are first selected by the Chairman & CEO based on, among others, recommendations from other officers (or in terms of incumbent Executive Officers, based on their respective performance, and in terms of Executive Officers with managing titles or those of important posts including Presidents of Division Companies and Officers responsible for overseeing each administrative functions, based on their experience and performance) and submitted to the Governance, Nomination and Remuneration Committee for further deliberation. Based on the deliberation and advice of the Governance, Nomination and Remuneration Committee, the Board of Directors appoints Executive Officers by its resolution. In case that an Executive Officer breaches the Executive Officers’ Regulation of ITOCHU Corporation or otherwise his or her performance is judged to be not appropriate, the Chairman & CEO (or the chair of the Governance, Nomination and Remuneration Committee) firstly makes a proposal of dismissal, and the Board of Directors dismisses such Executive Officer by its resolution based on the deliberation and advice of the Governance, Nomination and Remuneration Committee.

[Policy and Process for Appointing Candidates for Directors]
In order to effectively supervise management and decide important business matters as the Board of Directors of a general trading company with broad range of business, ITOCHU’s Board of Directors consists of, in principle, the Chairman & CEO, President & COO, officers responsible for overseeing each administrative functions, one appropriate Division Company president as an (internal) director, and several Outside Directors so that the percentage of Outside Directors in the Board of Directors is one-third or more to improve the supervisory function of the Board of Directors. When nominating Outside Director candidates, ITOCHU prioritizes candidates with higher independence, based on the criteria for “independent directors” prescribed by the Tokyo Stock Exchange, Inc. and ITOCHU’s “Independence Criteria for Outside Directors and Outside Audit & Supervisory Board Members,” who with his or her experience and knowledge in the relevant category, are expected to contribute to the management of ITOCHU. The proposal for candidates for directors is created by the Chairman & CEO by taking into consideration diversity such as knowledge, experience, gender and internationality (race, ethnicity, nationality, etc.), and submitted to the Governance, Nomination and Remuneration Committee for further deliberation before the Board of Directors finally nominates the candidates for election at the General Meeting of Shareholders.

[Policy and Process for Appointing Candidates for Audit & Supervisory Board Members]
In order to appropriately audit and supervise management as Audit & Supervisory Board Members of a general trading company with broad range of business, candidates for Audit & Supervisory Board Members are selected from individuals with understanding about ITOCHU’s management, high-level expertise in fields including accounting, finance, law, and risk management, and a broad range of experience. As a company with an Audit & Supervisory Board, Outside Audit & Supervisory Board Members are always at least half of all members. When nominating Outside Audit & Supervisory Board Members, ITOCHU prioritizes candidates with higher independence, based on the criteria for “independent auditors” prescribed by Tokyo Stock Exchange, Inc. and ITOCHU’s “Independence Criteria for Outside Directors and Outside Audit & Supervisory Board Members,” who with his or her high-level expertise and extensive experience in the relevant category, are expected to appropriately audit and supervise the management of ITOCHU. Moreover, among the Audit & Supervisory Board Members, ITOCHU nominates at least one person who possesses considerable knowledge concerning finance and accounting. Based on this policy, a proposal on candidates for Audit & Supervisory Board Members is created by the Chairman & CEO after consultation with full-time Audit & Supervisory Board Members. The proposal is then submitted to the Governance, Nomination and Remuneration Committee (until June 22, 2023, Nomination Committee) for further deliberation and, after receiving the approval of the Audit & Supervisory Board, the Board of Directors selects the candidates for election at the General Meeting of Shareholders.

Senior Operating Officer

“Senior Operating Officer” was created as a new post. Tenure of Executive Officers (except for Executive Officers with managing titles, Executive Officers of important posts including Presidents of Division Companies and Officers responsible for overseeing each administrative functions (collectively “Executive Officers with Important Roles”) or Executive Officers appointed by a special measure applicable to women) who will leave the office upon the end of the tenure will be appointed as Senior Operating Officers if they will continue to owe the same task or be transferred to the other internal positions. Senior Operating Officers are senior to Executive Officers (except for Executive Offices with Important Roles) and Executive Officers with Important Roles will be in principle appointed from Senior Operating Officers or those who had been Executive Officers and moved out to group companies.

Consideration of the Succession Plan

ITOCHU conducts discussions on succession planning through a process involving the proposal by Chairman & CEO followed by the deliberation at the Governance, Nomination and Remuneration Committee as an advisory committee to the Board of Directors. In considering the succession plan, it is essential to have a deep understanding not only of the overall business of ITOCHU but also of the candidates' professional backgrounds, experiences, and personal qualities, in order to achieve long-term enhancement of corporate value. With this in mind, the process assumes the involvement of the executive team. And the Governance, Nomination and Remuneration Committee consists of a majority of Outside Directors, with one serving as the committee chairman, which allows for the inclusion of perspectives from Outside Officers who possess a viewpoint encompassing both public perception and the interests of common shareholders. It should be noted that the successor will be determined by the Board of Directors based on the candidate proposed by the Chairman & CEO, following deliberation and recommendations from the Governance, Nomination, and Remuneration Committee, which are then presented to and resolved upon by the Board of Directors.

Policy on Acquiring and Holding Cross-Shareholdings, and Voting Guideline

[Policy on Acquiring and Holding Cross-Shareholdings]
ITOCHU classifies investments other than for pure investment purposes and to consolidated companies as “Investments to Non-Affiliated Companies,” and includes “Cross-Shareholdings” as set forth in Corporate Governance Code in this classification. ITOCHU engages in investments to non-affiliated companies in order to create business relationships. In principle, it is the Company’s policy to limit investments to non-affiliated companies to those that have a high likelihood of generating investment returns, and those with a high strategic significance including affiliation in future. This policy remains the same, regardless of whether investments are in or outside Japan, listed or unlisted.

[The content of the verification regarding Cross-Shareholdings]
In order to manage our investment, we set an internal rule. Through annual review of all investments to non-affiliated companies including Cross-Shareholdings, we examine economic (quantitative) rationale based on returns on our investment, and review strategic objectives of holding such investments taking into consideration the likelihood that our investment purpose will be realized in the future. Investments that do not generate economic added value over two-years or investments that lack strategic objective based on such annual review will be, in principle, sold. Results of such annual review with respect to Cross-Shareholdings are subject to further scrutiny through discussions at our Board of Directors meetings from the perspective of economic rationale and strategic objective. The Board of Directors has conducted a review of the listed investments to Non-Affiliated Companies including Cross-Shareholdings as of the end of March 2023, and confirmed the rationale for holding all stocks except for those where an Exit therefrom was planned.

ITOCHU places great importance on communication with each investee with the view to building, strengthening and maintaining business relationship as well as to improving corporate value of both ITOCHU and each investee. In May 2015, ITOCHU adopted the following internal voting guideline with respect to Cross-Shareholdings to ensure that ITOCHU’s voting rights on all of such investments are exercised in a timely and adequate manner.

[Voting Guidelines on Cross-Shareholdings]

In principle, not to abstain from voting or to grant full authority to exercise voting rights on our behalf.
To decide for or against a proposal taking into consideration our investment purpose and holding policy.

ITOCHU’s final position on voting is determined through an internal decision making process based on an initial plan prepared by the department through which an investment is made.

Independence Criteria for Outside Directors and Outside Audit & Supervisory Board Members

ITOCHU has adopted its own independence criteria (augmenting the independence criterial established by the Tokyo Stock Exchange).

Reason for Appointment as Outside Directors

Name	Reason for appointment
Masatoshi Kawana appointed in June 2018 [Attendance at Meetings of the Board of Directors] FYE 2024 : 17/17 (100%)	Mr. Kawana is appointed as an Outside Director in the anticipation that, based on his experience as a doctor at Tokyo Women's Medical University Hospital for many years and in important posts such as the Deputy Director of the same hospital as well as his high level of medical knowledge, he will monitor and supervise the corporate management of ITOCHU from an independent perspective. According to the criteria for the independence of directors / auditors prescribed by the Tokyo Stock Exchange, as well as our own independence criteria, Mr. Kawana qualifies as an independent Director. Accordingly, ITOCHU believes that he is unlikely to have conflicts of interest with general investors, and he has been designated as an independent Director.
Makiko Nakamori appointed in June 2019 [Attendance at Meetings of the Board of Directors] FYE 2024 : 17/17 (100%)	Ms. Nakamori is appointed as an Outside Director in the anticipation that, based on her high level expertise regarding finance and accounting as a certified public accountant as well as her extensive experience as a corporate executive, she will monitor and supervise the corporate management of ITOCHU from an independent perspective. According to the criteria for the independence of directors / auditors prescribed by the Tokyo Stock Exchange, as well as our own independence criteria, Ms. Nakamori qualifies as an independent Director. Accordingly, ITOCHU believes that she is unlikely to have conflicts of interest with general investors, and she has been designated as an independent Director.
Kunio Ishizuka appointed in June 2021 [Attendance at Meetings of the Board of Directors] FYE 2024 : 17/17 (100%)	Mr. Ishizuka is appointed as an Outside Director in the anticipation that, by utilizing his extensive knowledge of corporate management and the retail industry that was earned through his experience as President and Chairman of Isetan Mitsukoshi Holdings Ltd. and as a Vice Chair of Nippon Keidanren (Japan Business Federation), he will monitor and supervise the corporate management of ITOCHU from an independent perspective. According to the criteria for the independence of directors / auditors prescribed by the Tokyo Stock Exchange, as well as our own independence criteria, Mr. Ishizuka qualifies as an independent Director. Accordingly, ITOCHU believes that he is unlikely to have conflicts of interest with general investors, and he has been designated as an independent Director.
Akiko Ito* appointed in June 2023 [Attendance at Meetings of the Board of Directors] FYE 2024 : 13/13 (100%) (After appointment)	Ms. Ito is appointed as an Outside Director in the anticipation that, based on her extensive and profound insights as a government official in charge of consumer-oriented issues, which were earned from her experience such as the Deputy Director-General of the Ministry of Land, Infrastructure, Transport and Tourism, the first female director in the Ministry of Land, Infrastructure, Transport and Tourism (the Director-General of the Housing Bureau), and as Councillor, Cabinet Secretariat, Director General, Secretariat of the Headquarters for Overcoming Population Decline and Vitalizing Local Economy in Japan, followed by her service as Commissioner of Consumer Affairs Agency, she will monitor and supervise the corporate management of ITOCHU from an independent perspective. According to the criteria for the independence of directors / auditors prescribed by the Tokyo Stock Exchange, as well as our own independence criteria, Ms. Ito qualifies as an independent Director. Accordingly, ITOCHU believes that she is unlikely to have conflicts of interest with general investors, and she has been designated as an independent Director. *Registered name: Akiko Noda

Outside Director Roundtable Discussion：Further Enhancing ITOCHU’s Corporate Value

Reason for Appointment as Outside Audit & Supervisory Board Members

Name	Reason for appointment
Kentaro Uryu appointed in June 2015 [Attendance at Meetings of] - Board of Directors FYE 2024 : 17/17 (100%) - Audit & Supervisory Board FYE 2024 : 14/14 (100%)	Mr. Uryu is appointed as an outside Audit & Supervisory Board Member in the anticipation that he will monitor management and provide auditing from an independent perspective by utilizing his high level of expertise in law and extensive experience as an attorney-at-law for many years. According to the criteria for the independence of directors / auditors prescribed by the Tokyo Stock Exchange, as well as our own independence criteria, Mr. Uryu qualifies as an independent Audit & Supervisory Board Member. Accordingly, ITOCHU believes that he is unlikely to have conflicts of interest with general investors, and he has been designated as an independent Audit & Supervisory Board Member.
Tsutomu Fujita appointed in June 2023 [Attendance at Meetings of] - Board of Directors FYE 2024: 13/13 (100%) - Audit & Supervisory Board FYE 2024 : 10/10 (100%) After appointment	Mr. Fujita is appointed as an outside Audit & Supervisory Board Member in the anticipation that he will monitor management and provide auditing from an independent perspective by leveraging his extensive experience and advanced expertise gained from years of experience in the financial industry. According to the criteria for the independence of directors / auditors prescribed by the Tokyo Stock Exchange, as well as our own independence criteria, Mr. Fujita qualifies as an independent Audit & Supervisory Board Member. Accordingly, ITOCHU believes that he is unlikely to have conflicts of interest with general investors, and he has been designated as an independent auditor.
Kumi Kobayashi* appointed in June 2023 [Attendance at Meetings of] - Board of Directors FYE 2024: 13/13 (100%) - Audit & Supervisory Board FYE 2024 : 10/10 (100%) After appointment	Ms. Kobayashi is appointed as an outside Audit & Supervisory Board Member in the anticipation that she will monitor management and provide auditing from an independent perspective by utilizing her extensive professional knowledge and practical experience in financial and accounting matters, gained from her career as a certified public accountant. According to the criteria for the independence of directors / auditors prescribed by the Tokyo Stock Exchange, as well as our own independence criteria, Ms. Kobayashi qualifies as an independent Audit & Supervisory Board Member. Accordingly, ITOCHU believes that she is unlikely to have conflicts of interest with general investors, and she has been designated as an independent auditor. *Registered name: Kumi Nojiri

Significance of Holding and ITOCHU’s Policy on the Governance of Its Listed Subsidiaries and Affiliates

Approach and Policies Related to Group Management

ITOCHU has many consolidated subsidiaries and is expanding its diverse businesses in Japan and all over the world. As the core of the Group, ITOCHU formulates management policies as well as management plans on a group basis, and regularly monitors the progress of each segment. In order to appropriately deal with various risks as a group, we maintain internal control systems on a group basis, which are necessary to ensure that Directors implement their duties in compliance with laws and statutory regulations and the Articles of Incorporation, and to ensure the appropriateness of other operations.

In particular, ITOCHU makes conscientious efforts to ensure the execution of duties by directors and employees at each subsidiary comply with laws and regulations, as well as the Articles of Incorporation, by means of the directors and corporate auditors dispatched to each subsidiary supervising and auditing the execution of duties. In addition, in order to deal with various risks such as market risk, credit risk, country risk, investment risk, environmental/social risk etc. of the Group, ITOCHU maintains and manages risks comprehensively and individually. For that purpose, various internal committees and responsible departments have been established, and the necessary risk management system and management method are group-based. Furthermore, ITOCHU formulates a group compliance program, establishes and operates the system required to prevent the occurrence of any violations of laws and regulations, and strives for continuous improvement through regular reviews.

[Basic Approach and Policies Related to the Business Portfolio Strategy]
With the purpose of conducting timely and strategic investments, the Company selects the optimal funding types and ratios from among a diverse range of options, such as ITOCHU establishing a subsidiary on its own, jointly funding a project with a partner, and acquiring a company to enable management participation or to convert into a subsidiary. We do not specifically use different types of funding based upon whether or not a target company is listed on a securities exchange. Regarding holding policies, such as decreasing, maintaining, or increasing our ownership ratio, we comprehensively assess such factors as the unique characteristics of the industry and the post-investment outlook for each investee, to thoroughly confirm the significance of ownership. The proposal is then considered by the Division Company that would handle the investment. For major investees, discussions are held annually in management meetings. Decisions regarding the holding policies are made taking these discussions into account and are shared with Outside Officers.

Furthermore, ITOCHU does not believe that the divestment of holdings should be uniformly carried out based solely on the fact that a subsidiary or affiliate is publicly listed. We recognize the significance of each individual subsidiary’s holding rational and strive to establish and maintain an effective governance structure to prevent conflicts of interest. Additionally, while considering the strategic positioning of each subsidiary within ITOCHU Group, we make individual assessments of holding policies of listed subsidiaries without limiting the options, based on a case-by-case basis.

[Basic Approach and Policies Related to the Treatment of Listed Subsidiaries and Affiliates in the Group Management System]
The Company has established special rules for domestic listed companies as part of its internal rules related to managing subsidiaries and affiliates. These special rules set forth ITOCHU’s commitment to preventing actions that violate the general principles of management’s respect for independence and shareholder equality. At the same time, regarding matters related to internal management, including compliance and internal control, we conduct management in a balanced way by affirming the need to offer advice and guidance for the purpose of conducting appropriate management as the parent company and major shareholder. Moreover, as a general rule, the Group requests subsidiaries to participate in the Group financial system. For listed companies, in light of the independence of their management, participation in the Group financial system is voluntary.

In addition, to contribute to the expansion of profits and the stabilization of management at each listed subsidiary and affiliate, following discussions with each entity, we promote personnel exchanges, mainly by dispatching from the Company people with expertise in financial accounting, legal affairs, and other matters and management personnel for overseas expansion and overseas bases, as well as by taking in personnel from listed subsidiaries and affiliates into the Company’s sales and management departments.

Significance of Holding Listed Subsidiaries

As of June 21, 2024, ITOCHU’s listed subsidiaries are ITOCHU ENEX CO., LTD., ITOCHU-SHOKUHIN Co., Ltd., C.I. TAKIRON Corporation and Prima Meat Packers, Ltd. The merits of holding a listed subsidiary include expansion of business partners based on our name recognition, creditworthiness and independence; the expansion of synergies within the Group; reduction of ITOCHU’s financial burden on the listed subsidiary against the backdrop of the funding procurement capabilities of listed companies; and securing excellent human resources as well as maintaining and enhancing employee motivation. In addition, the demerits of holding a listed subsidiary include the external outflow of economic profit; the restriction of the Group’s execution of management and strategies arising from the necessity of considering minority shareholders; the difficulty in acquiring data; and the cost of remaining listed on a securities exchange. The significance of holding each listed subsidiary from the perspective of the Group's management strategy and sales perspective is as follows:

Company	Significance of Holding
ITOCHU ENEX CO., LTD.	Utilizing its wide and diverse domestic customer base, ITOCHU ENEX CO., LTD. is developing new fuel sales, services to enhance logistics efficiency, and next-generation businesses, etc., in addition to existing energy business and power business. It is important and indispensable presence for the Group in order to build a stable profit based both in Japan and overseas. In addition, ITOCHU ENEX CO., LTD., utilizing ITOCHU Group's extensive domestic and international network, promotes initiatives in the new energy field based on the SDGs, and carries out the fuel supply businesses for our Group companies. ITOCHU and ITOCHU ENEX CO., LTD., as business partners, are mutually contributing to the enhancement of corporate value. ITOCHU ENEX CO., LTD. is a Group company that was listed on a securities exchange and holding it as a listed subsidiary is fully rational when considering the aforementioned merits and demerits of remaining listed on a securities exchange.
ITOCHU-SHOKUHIN Co., Ltd.	The principal and main business of ITOCHU-SHOKUHIN Co., Ltd. is the sale and distribution of alcoholic beverages and processed foods. Based on its existence, ITOCHU secures stable contact points with various domestic retailers, and maximizes profit in the food distribution field by utilizing this sales channel. In addition, by utilizing our Group's diverse customer base and knowledge in implementing the growth strategy of ITOCHU-SHOKUHIN Co., Ltd., such as contribution to customers through creating sales floors which utilize digital transformation (DX), etc., ITOCHU is contributing to the expansion and evolution of the services provided by ITOCHU-SHOKUHIN Co., Ltd. Accordingly, ITOCHU and ITOCHU-SHOKUHIN Co., Ltd. are in a mutually beneficial relationship as business partners to enhance corporate value. ITOCHU SHOKUHIN Co., Ltd. is a Group company that was listed on a securities exchange and maintaining this holding as a listed subsidiary is fully rational in consideration of the aforementioned merits and demerits of remaining listed on a securities exchange.
C.I. TAKIRON Corporation	C.I. TAKIRON Corporation is positioned as a core enterprise in the Group's plastic resin business, due to its advanced technological capabilities and large-scale productio n capacity. C.I.TAKIRON Corporation utilizes ITOCHU Group's extensive domestic and international network for overseas expansion of C.I.TAKIRON Corporation's film business, stable procurement of competitive raw materials, and expansion of sales of C.I.TAKIRON Corporation's various products. ITOCHU and C.I.TAKIRON Corporation, as business partners, are mutually contributing to enhancing corporate value. C.I. TAKIRON Corporation is a Group company that was listed on a securities exchange and maintaining this holding as a listed subsidiary is fully rational in consideration of the aforementioned merits and demerits of remaining listed on a securities exchange. We also consider the fact that because it has reliability and influence due to being a listed company, alliance proposals meeting such frontline needs as manufacturing technologies and logistics are directly brought to C.I. TAKIRON Corporation, effectively building collaborative relationships with other companies.
Prima Meat Packers, Ltd.	The main and principal business of Prima Meat Packers, Ltd. is to sell meat and processed livestock products, and it assumes an important role in supplying final products in ITOCHU Group's livestock value chain. Prima Meat Packers, Ltd. utilizes ITOCHU Group's extensive domestic and international network to ensure a stable supply of high-quality imported raw materials for its core products and to jointly develop pork brands with overseas partners in our Group. As business partners, ITOCHU and Prima Meat Packers, Ltd. have a mutually beneficial relationship to enhance corporate value. A business relationship on the premise of pursuing mutual economic rationality has been established and maintained. In addition, Prima Meat Packers, Ltd. has become a subsidiary of ITOCHU as the Company incrementally acquired more shares. Because it is a listed company, synergy with ITOCHU will be pursued while further solidifying its value chain by conducting a broad range of trade with other companies. Continuing to hold Prima Meat Packers, Ltd. as a listed subsidiary is fully rational when considering the aforementioned merits and demerits of remaining listed on a securities exchange.

Policies Related to Ensuring the Effectiveness of the Governance System of Listed Subsidiaries

ITOCHU respects the autonomy of these listed subsidiaries and prohibits any acts that contradict the principle of shareholder equality. In particular, with the recognition that there is a potential conflict of interest between ITOCHU and the minority shareholders of these listed subsidiaries and in order to secure the independent decision-making of these listed subsidiaries, we request these listed subsidiaries to set up an effective governance structure under which functions of their independent Outside Directors are well assured. Each of the above-mentioned subsidiaries has established and maintained an effective governance system, including the appointment of certain number of Outside Directors and the establishment of an independent advisory committee to the Board of Directors, and a special committee where transactions or actions which may conflict with the interest of the controlling shareholder are deliberated and studied. ITOCHU will continue to encourage listed subsidiaries to further improve their governance structure, taking into account the Corporate Governance Code issued by the Tokyo Stock Exchange.

In addition, while seeking synergies by strengthening cooperation with each listed subsidiary, in conducting transactions with each listed subsidiary, fair and appropriate terms and conditions are determined by taking into account market prices, etc., on the premise of pursuing economic rationality with each other. Further, ITOCHU fully respects the decision of the advisory committee to the Board of Directors, which has the function of nomination, in exercising voting rights regarding the selection or removal of independent directors or nomination process of independent directors of our listed subsidiaries.

The policies related to ensuring the effectiveness of the governance systems of each listed subsidiary are as follows:

Company	The policies related to ensuring the effectiveness of the governance systems
ITOCHU ENEX CO., LTD.	ITOCHU ENEX CO., LTD. has established terms and conditions related to transactions and acts with ITOCHU. These are similar to ITOCHU ENEX CO., LTD.’s general terms and conditions, taking into account market prices. In addition, regarding significant transactions and acts that cannot reference market prices, ITOCHU ENEX CO., LTD. ensures the propriety of transactions by receiving approval from its Board of Directors, which includes Outside Directors and Audit & Supervisory Board Members, after conducting deliberations and studies at a specialized committee, which comprises independent Outside Directors and others who possess independence.
ITOCHU-SHOKUHIN Co., Ltd.	Inter-Group transactions are based on the principle of economic rationality. ITOCHU-SHOKUHIN Co., Ltd. provides sufficiently competitive functions and food products while being evaluated by each Group company, and independence is assured. In addition, matters related to significant conflicts of interest are deliberated and studied by the Governance Committee, which has a majority of independent Outside Directors as members of the advisory body to its Board of Directors.
C.I. TAKIRON Corporation	C.I. TAKIRON Corporation has established a governance committee, which has a majority of independent Outside Directors as members, as an advisory body to its Board of Directors. The committee monitors conflicts of interest with controlling shareholders from the perspective of protecting minority shareholders.
Prima Meat Packers, Ltd.	Prima Meat Packers, Ltd. has ensured independence from ITOCHU by having a majority of independent Outside Directors.

Agreements Related to Content that Should Be Listed as the Approach and Policies Related to Group Management

ITOCHU has not concluded capital and business alliance agreements or agreements related to Group management with any listed subsidiary

Significance of Holding Listed Affiliates

As of June 21, 2024, ITOCHU holds investments in multiple affiliates.

The merits of listed affiliates remaining listed include expansion of business partners based on our name recognition, creditworthiness and independence; the expansion of synergies within the Group; and securing excellent human resources, as well as maintaining and enhancing employee motivation.

However, the demerits of holding each company as a listed affiliate include the external outflow of economic profit; the restriction of the Group’s execution of management and strategies arising from the necessity of considering minority shareholders; the difficulty in acquiring data; and the cost of remaining listed on a securities exchange.

In the Group’s management, the significance of holding each listed affiliate includes leveraging the Group’s sales channels to expand sales, utilizing ITOCHU’s expertise in the management of specific industries and overseas expansion, and enhancing competitiveness through alliances between other Group companies, and managing businesses as a member of the Group is considered beneficial to enhancing corporate value for both ITOCHU and each listed affiliate. The significance of holding each listed affiliate is as follows and considering the aforementioned merits of maintaining the listing on a securities exchange, we believe holding each of these companies as listed affiliates is fully rational.

Company	Significance of Holdings
DESCENTE LTD.	DESCENTE LTD.’s mainstay sports apparel brands are DESCENTE, Le Coq Sportif, and Munsingwear. Because it has built a stable earnings base in one of ITOCHU’s key fields, sports-related business, DESCENTE LTD. occupies an important and indispensable position for the Company. DESCENTE LTD. has solidified its position as a premium brand, especially the DESCENTE brand, and aims to maximize profit by helping build a platform for production, logistics, and DX and utilizing the Company’s human resources, manufacturing, and expertise. ITOCHU and DESCENTE LTD. are in a mutually beneficial relationship as business partners to enhance corporate value. Since acquiring shares in the listed company DESCENTE LTD. in 1984, the Company has incrementally increased its share.
JAMCO Corporation	The principal and main business of JAMCO Corporation is the manufacture of aircraft interiors. JAMCO Corporation is positioned as a core enterprise in ITOCHU’s private aircraft business, which has the world’s top market share for lavatories and galleys for large-scale aircraft. In some of its marketing efforts, JAMCO Corporation utilizes the Group’s extensive network. ITOCHU and JAMCO Corporation are in a mutually beneficial relationship as business partners to enhance corporate value. JAMCO Corporation is a Group company that was listed on a securities exchange after considering the merits of being listed.
Tokyo Century Corporation	Tokyo Century Corporation operates a wide variety of businesses, including business investment, across its five business fields, starting with its traditional field of domestic leases and going on to encompass auto mobility, specialty (including aircraft, ships, and real estate), environmental infrastructure, and international business. Tokyo Century Corporation and ITOCHU have a collaborative relationship in a wide range of fields, including information, environmental energy, and such machinery fields as automobiles, construction machinery, and aircraft. Both companies are expanding their mutual businesses in part by offering joint proposals and providing joint funding to promising candidates in new business fields. Accordingly, ITOCHU and Tokyo Century Corporation are in a mutually beneficial relationship as business partners to enhance corporate value. Tokyo Century Corporation was created through the merger of one of ITOCHU’s listed Group companies and another listed company.
Hitachi Construction Machinery Co., Ltd.	Hitachi Construction Machinery Co., Ltd. is working to expand its businesses, including finance business, rental business, and used equipment sales in addition to the sale of new construction machinery. Hitachi Construction Machinery Co., Ltd. has had various kinds of business relationships in part through the joint expansion of the finance business and export trade. Hitachi Construction Machinery Co., Ltd. has an important and indispensable position as ITOCHU builds a stable earnings base in the construction business. In addition, Hitachi Construction Machinery Co., Ltd. utilizes ITOCHU’s extensive network and promotes collaboration in a wide range of business fields and various regions, including the United States. ITOCHU and Hitachi Construction Machinery Co., Ltd. are in a mutually beneficial relationship as business partners to enhance corporate value. In conjunction with the dissolution of its former North America joint venture, Hitachi Construction Machinery Co., Ltd. reconstructed its sales and service network, ended its relationship as a listed subsidiary of Hitachi, Ltd., and executed a capital alliance as a business partner.
WELLNEO SUGAR Co., Ltd.	WELLNEO SUGAR Co., Ltd. is a holding company with ITOCHU as a major shareholder, created in January 2023 by the merger of Nissin Sugar Co., Ltd., which is listed on the Prime Market of the Tokyo Stock Exchange, and ITOCHU SUGAR CO., LTD., which is a wholly owned subsidiary of ITOCHU, in order to address the diversification in sugar demand and changes in Japan’s demographics. ITOCHU SUGAR CO., LTD., which boasts one of the most efficient sugar manufacturing operations in Japan, and Nisshin Sugar Co., Ltd., which boasts high brand awareness in major metropolitan areas, including Tokyo and Osaka, have a business foundation comprising around 30% of the market share in Japan, and WELLNEO SUGAR Co., Ltd. occupies an important and indispensable position in ITOCHU. WELLNEO SUGAR Co., Ltd. is expected to further demonstrating sales synergy utilizing the ITOCHU Group’s intermediate distribution and downstream network as well as providing the Company’s overseas raw material procurement function, which is top class among general trading companies. ITOCHU and WELLNEO SUGAR Co., Ltd. are in a mutually beneficial relationship as business partners to enhance corporate value. WELLNEO SUGAR Co., Ltd. was created through a share exchange between one of ITOCHU’s Group companies and another listed company.
Japan Foods Co., Ltd.	Since its founding in 1976, Japan Foods Co., Ltd. has cemented its place as a manufacturer specializing in the commissioned production of soft drinks over more than 45 years. Japan Foods Co., Ltd. has strengthened its manufacturing capabilities by conducting appropriate capital investment. With the Group, Japan Foods Co., Ltd. aims to better upgrade facilities, secure human resources, and develop new businesses by utilizing the Group’s extensive network in addition to enhancing its delivery transactions for concentrated beverage raw materials, commissioned production, and sales of products. ITOCHU and Japan Foods Co., Ltd. are in a mutually beneficial relationship as business partners to enhance corporate value. Japan Foods Co., Ltd. is a Group company that was listed on a securities exchange after considering the merits of being listed.
FUJI OIL HOLDINGS INC.	FUJI OIL HOLDINGS INC. develops, manufactures, and sells food products, including those made with plant-based oils, cacao, and soy beans. FUJI OIL HOLDINGS INC. has an important position in ITOCHU’s portfolio because, in the development of plant-based ingredients, it boasts unique technological capabilities accumulated since its founding, a shift to high value added businesses, and global operations. In addition to the joint promotion of the oil business in the United States, ITOCHU and FUJI OIL HOLDINGS INC. utilize the Group’s network in the stable procurement of raw materials, sale of products, and personnel exchanges. ITOCHU and FUJI OIL HOLDINGS INC. are in a mutually beneficial relationship as business partners to enhance corporate value. FUJI OIL HOLDINGS INC. is a Group company that was listed on a securities exchange after considering the merits of being listed.
CENTURY 21 REAL ESTATE OF JAPAN LTD.	The principal and main business of CENTURY 21 REAL ESTATE OF JAPAN LTD. is the franchising of real estate agencies, and it has around 1,000 stores that participate in franchises serving as customer contact points. It assumes an important role in the Group building a stable earnings base in the real estate business. In addition, CENTURY 21 REAL ESTATE OF JAPAN LTD. utilizes the Group’s extensive network to enhance services to customers and participating stores. ITOCHU and CENTURY 21 REAL ESTATE OF JAPAN LTD. are in a mutually beneficial relationship as business partners to enhance corporate value. CENTURY 21 REAL ESTATE OF JAPAN LTD. is a Group company that was listed on a securities exchange after considering the merits of being listed.
Paraca Inc.	The principal and main business of Paraca Inc. is the operation and management of parking lots. It operates and manages parking lots comprising around 37,000 parking spaces across Japan. It assumes an important role in building the Company’s construction and real estate business value chain and creating a stable earnings base. Paraca Inc. utilizes the Group’s extensive network to expand the parking lot business. ITOCHU and Paraca Inc. are in a mutually beneficial relationship as business partners to enhance corporate value. Since starting a capital and business alliance, ITOCHU made Paraca Inc. an affiliate by acquiring additional shares of the company after confirming that the relationship will help mutually enhance corporate value.
Nalnet Communications Inc.	Nalnet Communications Inc. operates a business for commissioned maintenance of leased vehicles, which is handled at its more than 11,000 maintenance shops across Japan. ITOCHU expects to conduct tire sales to the automotive maintenance shop network centered on Nalnet Communications Inc. and expects to utilize the vehicle maintenance functions in this network in the used vehicle sales business, which is forecast to expand going forward. Because of this, ITOCHU and Nalnet Communications Inc. are in a mutually beneficial relationship as business partners to enhance corporate value. Nalnet Communications Inc. was listed in line with the exit scenario for other shareholders at one of ITOCHU’s Group companies.
BELLSYSTEM24 Holdings, Inc.	BELLSYSTEM24 Holdings, Inc. assumes an important role in elevating the customer experience in ITOCHU’s digital businesses. Its principal and main business is the operation of contact centers and the provision of BPO services in the form of solutions to business issues. BELLSYSTEM24 Holdings, Inc. utilizes the Group’s extensive network in such fields as AI and data analysis. ITOCHU and BELLSYSTEM24 Holdings, Inc. are in a mutually beneficial relationship as business partners to enhance corporate value. BELLSYSTEM24 Holdings, Inc. was listed in line with the exit scenario for other shareholders at one of ITOCHU’s Group companies.
WingArc1st Inc.	WingArc1st Inc. assumes an important role in developing and operating IT systems in ITOCHU’s digital businesses. Its principal and main business is the development and sale of software and cloud services related to the creation of business forms, the management of documents, and data utilization. In the expansion of its customer base and the creation of new businesses utilizing proprietary solutions, WingArc1st Inc. not only utilizes the Group’s extensive domestic and international network, it also supports the Group’s DX in such ways as adapting to the Electronic Books Maintenance Act. ITOCHU and WingArc1st Inc. are in a mutually beneficial relationship as business partners to enhance corporate value. WingArc1st Inc. was listed in line with the exit scenario for other shareholders at one of ITOCHU’s Group companies.
SKY Perfect JSAT Holdings Inc.	SKY Perfect JSAT Holdings Inc. assumes an important role in strengthening space, satellite, and media-related businesses in ITOCHU’s data and telecommunications field. Its principal and main business is the space business, which is centered on satellite telecommunication services, and the media business, which provides the pay TV channel SKY PerfecTV!. SKY Perfect JSAT Holdings Inc. aligns with the Group’s extensive domestic and international network in the construction of new businesses in the media field, which utilizes content and solutions, and in the space and satellite field, which utilizes satellite imagery and data. ITOCHU and SKY Perfect JSAT Holdings Inc. are in a mutually beneficial relationship as business partners to enhance corporate value. SKY Perfect JSAT Holdings Inc. is a listed company that was established by a business merger through the share transfer of the two listed companies SKY Perfect Communications Inc. and JSAT Corporation. ITOCHU has been a shareholder in both companies since their founding and, with Fuji Media Holdings, Inc., jointly established ITC Partners, Inc. (now ITOCHU Fuji Partners, Inc. (IFP)). By investing the shares of SKY Perfect JSAT Holdings Inc. owned by the two companies into IFP, IFP’s stake in SKY Perfect JSAT Holdings Inc. exceeded 20%, making it an affiliate of IFP.
Orient Corporation	Orient Corporation operates a wide range of businesses, including loans, credit cards, and guarantor for rent and financial settlements; is an important partner in ITOCHU’s retail financing business; and utilizes the Group’s network in commercialization surveys for overseas expansion. In addition, Orient Corporation works to expand its business through investment in fintech companies and is considering collaboration with ITOCHU in these efforts. Accordingly, ITOCHU and Orient Corporation are in a mutually beneficial relationship as business partners to enhance corporate value. The investment in Orient Corporation was for the purpose of strengthening the retail financing business and accomplished by acquiring shares from existing shareholders and a third-party allocation of shares.

[Affiliates Listed in Overseas Markets]
ITOCHU holds investments in multiple listed affiliates overseas as well. The reasons for investing in listed affiliates overseas are as follows.

Strategic business and capital alliances with powerful local listed companies

Responding to laws and regulations for specific industries in relevant countries

Responding to transaction conditions with state-run companies

Enhancing creditworthiness in countries where businesses are operated

Agreements Related to Content that Should Be Listed as Approaches and Policies Related to Group Management with Low Risk of Conflict of Interests between ITOCHU and Minority Shareholders as well as Measures Related to Ensuring the Effectiveness of the Governance Systems of Listed Affiliates

Regarding listed affiliates, ITOCHU is careful to ensure there are no conflicts of interest in transactions with relevant companies and takes action based on listed subsidiaries as needed in light of the actual situation of each company, including capital relationships and transaction status. Please reference the following information for details related to each listed affiliate (the scope is the same as the companies specified in the section above regarding the significance of holding listed affiliates).

Company	Significance of Holdings
DESCENTE LTD.	DESCENTE LTD. is taking measures to ensure independence from ITOCHU, such as increasing the number of independent Outside Directors. ITOCHU and DESCENTE LTD. have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
JAMCO Corporation	JAMCO Corporation is also an affiliate of ANA Holdings, Inc. The sales activities of JAMCO Corporation are all based on receiving orders, including direct transactions with ANA Holdings, Inc., in a competitive environment with other companies in Japan and overseas, and its relationship with ITOCHU does not benefit the Company’s sales transactions. ITOCHU and JAMCO Corporation have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
Tokyo Century Corporation	Tokyo Century Corporation has a sales transaction relationship with ITOCHU and Group companies. Each transaction is conducted based on Tokyo Century Corporation’s own judgment after conducting individual negotiations with each company on the same basis as any general business partner, so the Company does not place restrictions on business, ensures a certain level of independence, and takes appropriate action to ensure there is no negative impact on the profit of minority shareholders. ITOCHU and Tokyo Century Corporation have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
Hitachi Construction Machinery Co., Ltd.	ITOCHU invests in Hitachi Construction Machinery Co., Ltd. through HCJI Holdings Ltd. (HCJI), which is a joint venture with Japan Industry Partners, Inc. (JIP). The Company believes there is low risk of conflicts of interests with minority shareholders of ITOCHU and Hitachi Construction Machinery Co., Ltd. because their business content is not in a competitive relationship and Hidemi Moue, who is the Representative Director & President of HCJI and the Director & CEO of JIP, is dispatched as a director to Hitachi Construction Machinery Co., Ltd (as of June 21, 2024). HCJI and Hitachi Construction Machinery Co., Ltd. have concluded a capital alliance agreement.
WELLNEO SUGAR Co., Ltd.	ITOCHU, WELLNEO SUGAR Co., Ltd., and Sumitomo Corporation, which is a shareholder of WELLNEO SUGAR Co., Ltd., have concluded a capital and business alliance agreement. In this agreement, the basic policy is to ensure the independence of the management of WELLNEO SUGAR Co., Ltd., and the signers agree to respect WELLNEO SUGAR Co., Ltd.’s independence, autonomy, and relationships with existing business partners as well as the adoption and implementation of measures needed to execute business from the perspective of WELLNEO SUGAR Co., Ltd.’s Board of Directors aim of creating shareholder profit. WELLNEO SUGAR Co., Ltd. was created through a share exchange between one of ITOCHU’s Group companies and another listed company.
Japan Foods Co., Ltd.	ITOCHU, Japan Foods Co., Ltd. and its group companies have an ongoing relationship for purchasing raw materials and selling products, but the transaction percentage is insignificant and the Company does not impose business restrictions, ensuring independence. ITOCHU and Japan Foods Co., Ltd. have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
FUJI OIL HOLDINGS INC.	When FUJI OIL HOLDINGS INC. has new transactions (¥1.0 billion or more annually) with the Group or business alliance conditions determined to be important to ITOCHU, both companies discuss the fairness of the matter from the perspective of protecting minority shareholders, and the matter is deliberated and resolved by its Board of Directors to ensure the transparency and fairness of assessments. ITOCHU and FUJI OIL HOLDINGS INC. have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
CENTURY 21 REAL ESTATE OF JAPAN LTD.	Real estate agency franchises, which is the principal and main business of CENTURY 21 REAL ESTATE OF JAPAN LTD., do not have ongoing transactions with ITOCHU or the Group, and the relationship with CENTURY 21 REAL ESTATE OF JAPAN LTD. does not benefit the sales transactions of ITOCHU and its Group companies. ITOCHU and CENTURY 21 REAL ESTATE OF JAPAN LTD. have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
Paraca Inc.	Paraca Inc. has built a highly transparent governance system, selecting independent Outside Directors for four of its seven directors (as of June 21, 2024), ensuring a majority. ITOCHU and Paraca Inc. have concluded a capital and business alliance agreement.
Nalnet Communications Inc.	When conducting individual sales transactions with ITOCHU and Group companies, Nalnet Communications Inc. conducts each transaction based on its own judgment after conducting individual negotiations with each company like with any general business partner, so the Company does not place restrictions on business, ensures a certain level of independence, and takes appropriate action to ensure there is no negative impact on the profit of minority shareholders. ITOCHU and Nalnet Communications Inc. have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
BELLSYSTEM24 Holdings, Inc.	The ITOCHU Group and TOPPAN Holdings Group, which is the second largest shareholder, have been identified as affiliated parties that possess significant influence on the BELLSYSTEM24 Holdings, Inc ’s financial and business decision making. Rules related to the management of transactions with affiliated parties have been established and are enforced in line with standards that were established for transactions that need and do not need approval from the Board of Directors depending on the scale and characteristics. In addition, regardless of whether approval from the Board of Directors is needed, approval for ongoing transactions with affiliated parties is sought from the Board of Directors at the beginning of every fiscal year, and with that approval, monitoring is conducted related to the fairness of transactions by the Board of Directors. ITOCHU and BELLSYSTEM24 Holdings, Inc. have not concluded an agreement related to content that should be listed as the approach and policies related to Group management. BELLSYSTEM24 Holdings, Inc. was listed in line with the exit scenario for other shareholders at one of ITOCHU’s Group companies.
WingArc1st Inc.	As a preliminary advisory body for approving transactions with affiliated parties, special committee rules put in place by WingArc1st Inc. provide for the establishment, when necessary, of a special committee to be comprised of Outside Directors and personnel who is not a director dispatched from ITOCHU, upon their appointment by Outside Directors following discussion. In this way, management independence and transparency are assured, and management-related supervisory functions are strengthened. ITOCHU and WingArc1st Inc. have concluded a capital and business alliance agreement.
SKY Perfect JSAT Holdings Inc.	Regarding transactions with major shareholders, SKY Perfect JSAT Holdings Inc. always holds preliminary deliberations to ensure there is no negative impact on shareholder profit and conducts the transactions after confirming they are rational. ITOCHU and SKY Perfect JSAT Holdings Inc. have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.
Orient Corporation	Orient Corporation strengthened appropriate disclosures of affiliated party transactions after enhancing initiatives from the perspective of focusing on protecting independence from major shareholders and shareholder profits. ITOCHU and Orient Corporation have not concluded an agreement related to content that should be listed as the approach and policies related to Group management.

Others

Itochu does not adopt any takeover defense measures.