Accountability to Stakeholders

ITOCHU emphasizes dialogue with its shareholders, investors, and other stakeholders from the perspective of achieving sustainable growth and enhancing corporate value over the medium to long term. We now strive to reflect input obtained in investor meetings, general meetings of shareholders, and one-on-one meetings into our management strategies and financial and capital policies. Through commitment-based management, we are striving to expand corporate value and sustain a positive cycle through effective engagement. Investor relations activities in FYE2025 include the followings.

Activity	Times	Content
Investor briefings on financial results for analysts and institutional investors	5	Held presentations for analysts and institutional investors every quarter, through investor briefings or web conferences. (Includes the Management Policy briefing held on April 3, 2024.)
Briefings on operating segments, projects and site tours and sustainability briefing for analysts and institutional investors	2	We hold meetings for analysts and institutional investors to explain specific themes, such as strategies of individual operating segments.
Overseas IR roadshow	6	Visited Europe, North America, Hong Kong and Singapore to have individual meetings with overseas institutional investors.
Conferences sponsored by securities companies	10	Attended conferences sponsored by securities companies and held individual meetings mainly with overseas institutional investors.
Meetings for individual investors	2	Held meetings for individual investors through web conference and at securities companies etc.
Disclosure of IR-related materials on website	－	Disclose Investor Relations-related materials on our website. Following materials are available: financial statements, presentation materials for investors’ meetings (including Q&As), materials used in segment-specific briefings, TSE filings, annual securities reports (yuka shoken hokokusho), quarterly securities reports (shihanki hokokusho), the status of corporate governance, convocation notices for General Meetings of Shareholders, reports (hokokusyo) and annual and notice of general meeting of shareholders.

Dialogue with Stakeholders

We are working to engage actively with all of our stakeholders to sustainably enhance our corporate value, and we have prepared contents that responds to the high expectations and frequently asked questions of our stakeholders in our Integrated Report.

Q1： What are ITOCHU’s unique philosophy and corporate culture that support its competitive advantage?

ITOCHU’s Trajectory

CAO Interview

Q2： What are management’s strategies and commitments for achieving the sustainable enhancement of corporate value?

CEO Message

COO Message

CFO Interview

Q3： What are ITOCHU’s portfolio management and asset allocation approaches to maintain high-efficiency management?

Financial Strategy

Business Investment

Portfolio Management

Q4： What are the initiatives for accelerating growth, such as the utilization of digital technologies, and specific examples of business expansion into new domains?

CXO Interview

Digital Strategy for the Sustainable Enhancement of Corporate Value

SPECIAL FEATURE — Examples of Areas with High Growth Potential —

Q5： What is an overview of the current status of business, including each Division Company’s business strategies, opportunities, risks, and regional structure of assets and profits, including China-related businesses?

Risk Management

Business Portfolio

Q6： What are ITOCHU’s unique human resource strategies and sustainability initiatives?

Human Resource Strategy

Initiatives to Promote Sustainability

Q7： What are policies regarding succession plan, remunera tion systems, parent-subsidiary listings, and the policy on cross-shareholdings?

Corporate Governance

Actions towards achieving management that is conscious of capital costs and stock prices

[Current understanding]
ITOCHU has verified and discussed the cost of capital, and currently understand it to be 8%, as disclosed in our Annual Report. However, we recognize that the market demands a higher level of return. Therefore, while appropriately allocating management resources, we strive for highly efficient management with a focus on achieving a globally highly regarded level of ROE of 15% or higher, and aim to sustainably enhance corporate value.

Over the 15-year period from FYE 2011 to FYE 2025, the average ROE was 16%, and the stock price increased by approximately 9 times during the same period, showing a continued upward trend. Additionally, we have formulated the Management Policy that serves as a long-term compass for the purpose of sustainable enhancement in corporate value. This policy was announced on April 3, 2024.

[Policy and Target]
In the Management Policy, we have set forth the following three principles to achieve sustainable enhancement in corporate value.

Grow earnings: “No growth without investments” (Accelerating growth investment to expand business areas and further strengthen and expand the business foundation.)

Enhancement of corporate brand value: Reinforcement of human capital, strengthening dialogue with stakeholders, enhancing our contribution to and engagement with the SDGs through business activities.

Shareholder Returns: Total payout ratio of 40% or more, dividends of the higher of 30% dividend payout ratio or dividend ¥200 per share.

Furthermore, our longstanding financial policy (maintaining financial foundation based on balancing three factors: growth investments, shareholder returns, and control of interest-bearing debt) remains unchanged.

As mentioned above, ITOCHU has achieved high-efficiency management over the long term. To continuously achieve high capital profitability in the future, we will maintain and improve of high ROE based on the principles outlined in our Management Policy. This essentially involves growing earnings based on our track record of achieving a compound annual growth rate (CAGR) exceeding 10% (FYE 2011 - FYE 2025: 13%) and ensuring total payout ratio of 40% or more. For FYE 2026 single-year Management Plan, we set the target of ROE as 15%.

Regarding the action to implement management that is conscious of cost of capital and stock price, we have also disclosed the same perspective as mentioned above in our website. Furthermore, in order to ensure understanding from shareholders and investors, etc., we provide detailed explanations during General Meetings of Shareholders, investor briefings, and various other explanatory briefings regarding the underlying concepts and strategies behind the Management Policy. We have also clearly demonstrated the connection between the management policy, strategies and the enhancement of corporate value using the "Corporate Value Calculation Formula," in our Integrated Report (Annual Report).

(Update Date: June 20, 2025)