• In March 2025, the Stamp Duty Assessment Agent received the Excellence Award at the Google Generative AI Awards. Since then, we have continued to leverage Google’s generative AI services, implementing numerous AI agents such as the HS CODE Agent and the Contract Review AI. As a result, adoption of these agents and Google’s generative AI services has expanded to approximately 1,300 users across both ITOCHU Corporation and our Group companies. Through the utilization of generative AI, we have achieved a reduction of 13,000 working hours per month across ITOCHU Group (based on self-reported data from 522 survey respondents).
• A project to introduce a Voice of Customer (VoC) tool utilizing generative AI is currently underway at 6 group companies. The initiative aims not only to improve operational efficiency such as by enhancing product planning accuracy and optimizing customer service, but also to elevate business models to a more advanced level.
• Reforms are progressing across 7 retail companies through measures such as the introduction of Generative AI-powered inventory optimization tools. With significant inventory reductions achieved at Dome Corporation, the combined ROA (Return on Assets) for these 7 companies is projected to improve from 2.5% in FYE 2025 to 4.4% in FYE 2026.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in international shipping, Machinery Company is involved in an integrated project for ammonia-fueled vessels aimed at follows.
  (i) developing ammonia-fueled vessels
  (ii) owning and operating ammonia-fueled vessels
  (iii) developing fuel supply chains
  (iv) procuring/producing clean ammonia
• Development of an ammonia-fueled engine for large bulk carrier was completed in February 2026. In FYE 2027, the project will move to discussions with shipyards on specifications and shipbuilding cost estimates.
• Development of ammonia fuel supply chains is being prioritized in Singapore, followed by major ports in Europe / the Suez Canal / the Panama Canal and others. Machinery Company was selected by the Singapore government as a potential ammonia-fuel bunkering operator in July 2024. An ammonia bunkering vessel for this business was ordered in July 2025 and is scheduled to be completed in September 2027. Discussions with relevant parties, including authorities, are ongoing toward demonstration in Singapore.
• Green ammonia production projects in Indonesia, India, and other countries are being advanced to support bunkering hubs in Singapore and Europe.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Based on insights from the EVision demonstration conducted in the previous fiscal year, SmartEVer, an energy management service that integrates EV charging operations with facility power demand control, was co-developed with Isuzu Motors Limited and I-Grid Solutions Inc., and the service was launched.
• Starting in November 2025, in collaboration with Isuzu Motors Limited, FamilyMart Co., Ltd., and the City of Yokohama, a delivery demonstration began in Yokohama using Japan’s first battery swapping station enabling simultaneous swaps on both sides and three ELF EV vehicles. Through deliveries to approximately 80 stores, the project will verify high-utilization operation of commercial EVs, reduced downtime through battery swapping, business feasibility, and decarbonization effects, aiming for early commercialization of battery-swappable EV trucks.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Development and commercialization of hydrogen fuel cell–electric engines for small and large propeller aircraft.
• Utilization of key components for electric propulsion systems, including fuel cells and electric motors.

• In January 2024, we invested in ZeroAvia, an aerospace venture that develops hydrogen fuel cell engines for aircraft. We are promoting sales of the engines in Japan and Asia and supporting the development of hydrogen infrastructure centered on airports.
• In November 2025, ZeroAvia obtained a Design Organisation Approval from the UK Civil Aviation Authority as the world’s first hydrogen-related company. This demonstrates ZeroAvia’s eligibility toward type certification, and engine development is progressing steadily.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce GHG, such as lighter-weight vehicles and electric vehicles (EVs) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of GHG emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in GHG emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, UAE’s largest steelmaker EMSTEEL, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry. In May 2024, we signed a Memorandum of Understanding with CSN Mineração S.A. (CM) in our Iron Ore Business in Brazil and NEXI concerning the decarbonization of the steel industry, which includes utilizing high-grade iron ore produced by CM.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies.
• We have invested in Everfuel of Denmark, who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In February 2025, we have commenced the first commercial production of green hydrogen, promoting the establishment of a locally-produced and consumed green hydrogen value chain.
• We have signed a Joint Development and Operating Agreement with Osaka Gas, Toho Gas, and others to participate in large-scale facility to produce electric natural gas (e-NG) (Live Oak Project),which TotalEnergies and Tree Energy Solutions have been promoting in Nebraska in the United States, starting from the Front-End Engineering Design (FEED) phase. Through the project, we aim to begin commercial operations and export e-NG to Japan by 2030.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We have an investment into Australia-based MCi Carbon, who possesses mineral carbonation technologies. We are promoting their technology for the market. In December 2024, we have completed the construction of the first demonstration plant capable of processing multiple raw materials such as waste concrete and steel slag to produce carbonates. In January 2025, we have signed a memorandum of understanding with Mitsubishi UBE Cement Corporation to promote the construction of manufacturing plants and the establishment of a supply chain for raw material procurement and sales.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2026, and promoted sales of environmentally friendly raw materials for aluminum.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.

• Mining business
• Resource-related business
• Logistics business

• Promote an increase in efficiency of mine operations and facility management utilizing digital transformation.
• Promote conversion to the automatic operation of mining equipment such as underground mining equipment and dump trucks.

• We signed a memorandum to collaborate in decarbonization and digital transformation with Companhia Siderúrgica Nacional (CSN) and started demonstration experiment with the aim of contributing to increased safety, operational efficiency, and decarbonization at the iron ore mine (Casa de Pedra [CdP] Mine) that we have invested and CSN steel work.
• It began the full-scale operation of GE Digital’s operation and asset management software at the CdP Mine in Brazil, improving the plant’s actual yield rate. We are currently considering to apply of the system at other operational sites and other regions.

• We will aim to improve productivity and increase business efficiency in the overall food-related field by promoting systemization of RPA and AI.
• We will aim to create innovative services and new business by integrating resources and new technologies of the ITOCHU Group.

• We will aim to improve productivity and increase business efficiency by introducing and utilizing new systems and new technologies focused on the food distribution field.
• We will create unique new value by combining the wide ranging product lineup, functions and expertise of our group based on retail customer needs.

• Status of promoting business reform in the food-related field with the introduction of AI, RPA and other systems.
• Status of promoting the development of new products and services through the food wholesale business developed by the ITOCHU Group.

• Provided value chain optimization services to eight retailers.
  • (1) Demand-forecasting services introduced to two retailers, improving logistics efficiency; used by 170 manufacturers and wholesalers.
  • (2) Store order optimization services introduced to 6 retailers, streamlining store operations.
• November 2025 PoC with a selected retailer confirmed 24% improvement in loading efficiency and 4% reduction in distribution center labor hours under certain conditions.

• Increase the number of partnerships.
• Development and introduction of new services and businesses related to Sustainability Transformation and Green Transformation.

• We’ve started working with 4 new vendors in the AI and enterprise security fields.
• Provide services and solutions that enhance the efficiency and flexibility of network operations and the utilization of data.
• With the aim of creating new business opportunities in the domains of Sustainability Transformation (SX) and Green Transformation (GX), the company offers ERP solutions to support corporate sustainability management, ranging from the collection and analysis of corporate ESG data to the preparation of disclosure reports, while also providing support for the disclosure of non-financial information and consulting services to reduce CO₂ emissions.
• We are committed to further expand business to contribute to the realization of a safe, secure, and highly convenient social infrastructure.

• Tyr Energy Development Renewables, the U.S. based renewable energy development company established in FYE 2023, sold two developed solar assets in FYE 2026, bringing the cumulative total of sold solar assets to 15, and is currently developing 24 solar projects (approximately 4.3 GW) across 10 states in the United States.
• NAES Corporation, the U.S. subsidiary and world’s largest independent power plant operation and maintenance service company, provides operation & maintenance services for approximately 1,000 renewable power generation sites (equivalent to 3 GW).
• In June 2023, a fund investing in North American renewable energy assets was established. The fund made one additional investment in FYE 2026, bringing the cumulative total to 3 executed investments (406 MW).
• In January 2025, we agreed to invest in the Bowman Wind Project (208 MW) under construction in North Dakota, and in October 2025, agreed to invest in the Black Hollow Sun Project (258 MW) under construction in Colorado, steadily executing investments in renewable energy assets.
• As of March 2026, the ratio of renewable energy based on generation capacity share is 19.9% (1.2% increase compared to the previous year).

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in international shipping, Machinery Company is involved in an integrated project for ammonia-fueled vessels aimed at follows.
  (i) developing ammonia-fueled vessels
  (ii) owning and operating ammonia-fueled vessels
  (iii) developing fuel supply chains
  (iv) procuring/producing clean ammonia
• Development of an ammonia-fueled engine for large bulk carrier was completed in February 2026. In FYE 2027, the project will move to discussions with shipyards on specifications and shipbuilding cost estimates.
• Development of ammonia fuel supply chains is being prioritized in Singapore, followed by major ports in Europe / the Suez Canal / the Panama Canal and others. Machinery Company was selected by the Singapore government as a potential ammonia-fuel bunkering operator in July 2024. An ammonia bunkering vessel for this business was ordered in July 2025 and is scheduled to be completed in September 2027. Discussions with relevant parties, including authorities, are ongoing toward demonstration in Singapore.
• Green ammonia production projects in Indonesia, India, and other countries are being advanced to support bunkering hubs in Singapore and Europe.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Based on insights from the EVision demonstration conducted in the previous fiscal year, SmartEVer, an energy management service that integrates EV charging operations with facility power demand control, was co-developed with Isuzu Motors Limited and I-Grid Solutions Inc., and the service was launched.
• Starting in November 2025, in collaboration with Isuzu Motors Limited, FamilyMart Co., Ltd., and the City of Yokohama, a delivery demonstration began in Yokohama using Japan’s first battery swapping station enabling simultaneous swaps on both sides and three ELF EV vehicles. Through deliveries to approximately 80 stores, the project will verify high-utilization operation of commercial EVs, reduced downtime through battery swapping, business feasibility, and decarbonization effects, aiming for early commercialization of battery-swappable EV trucks.

• Water Resources
• Pollution Prevention and Resource Recycling

Water Field

• We are promoting seawater desalination business in Australia and Oman, supplying approximately 30% of Melbourne’s water demand and about 30% of the water demand of 1.5 million people in Oman’s Muscat metropolitan area.

Environmental Field

• UK: We operate three municipal waste incineration and power generation projects (Energy-from-Waste/EfW projects), processing 850,000 tons of municipal waste annually and providing electricity to 100,000 households.
• Serbia: Machinery Company established the first integrated waste management project in Serbia. It contributes to addressing Serbia’s major environmental and social issues by reducing GHG emissions and polluted water leakage. Commercial operation of the EfW project began in July 2024, and the carbon credits from the project have been accredited by Gold Standard. In FYE 2026, the contribution to GHG reductions is approximately 100,000 t-CO₂e per year.
• UAE: We operate the first EfW project in Dubai. The project is a world-leading plant designed to process 1.9 million tons of municipal waste per year, equivalent to about half of the waste generated in UAE. Commercial operation began in August 2024 and is expected to contribute approximately 2.17 million t-CO₂e per year in GHG reductions.
• Saudi Arabia: We are participating in an integrated hazardous waste management service in Jubail Industrial City.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Development and commercialization of hydrogen fuel cell–electric engines for small and large propeller aircraft.
• Utilization of key components for electric propulsion systems, including fuel cells and electric motors.

• In January 2024, we invested in ZeroAvia, an aerospace venture that develops hydrogen fuel cell engines for aircraft. We are promoting sales of the engines in Japan and Asia and supporting the development of hydrogen infrastructure centered on airports.
• In November 2025, ZeroAvia obtained a Design Organisation Approval from the UK Civil Aviation Authority as the world’s first hydrogen-related company. This demonstrates ZeroAvia’s eligibility toward type certification, and engine development is progressing steadily.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce GHG, such as lighter-weight vehicles and electric vehicles (EVs) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of GHG emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in GHG emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, UAE’s largest steelmaker EMSTEEL, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry. In May 2024, we signed a Memorandum of Understanding with CSN Mineração S.A. (CM) in our Iron Ore Business in Brazil and NEXI concerning the decarbonization of the steel industry, which includes utilizing high-grade iron ore produced by CM.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies.
• We have invested in Everfuel of Denmark, who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In February 2025, we have commenced the first commercial production of green hydrogen, promoting the establishment of a locally-produced and consumed green hydrogen value chain.
• We have signed a Joint Development and Operating Agreement with Osaka Gas, Toho Gas, and others to participate in large-scale facility to produce electric natural gas (e-NG) (Live Oak Project), which TotalEnergies and Tree Energy Solutions have been promoting in Nebraska in the United States, starting from the Front-End Engineering Design (FEED) phase. Through the project, we aim to begin commercial operations and export e-NG to Japan by 2030.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We have an investment into Australia-based MCi Carbon, who possesses mineral carbonation technologies. We are promoting their technology for the market. In December 2024, we have completed the construction of the first demonstration plant capable of processing multiple raw materials such as waste concrete and steel slag to produce carbonates. In January 2025, we have signed a memorandum of understanding with Mitsubishi UBE Cement Corporation to promote the construction of manufacturing plants and the establishment of a supply chain for raw material procurement and sales.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2026, and promoted sales of environmentally friendly raw materials for aluminum.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.

• Transition Risk
• Stable Supply of Resources

• Communicate appropriately with neighboring stakeholders in the Jingu Gaien district.
• Engineering, construction, and operation of highly efficient heat supply plants.

• Ongoing discussions with stakeholders to promote efficient heat supply to neighboring areas.
• Due to the headquarters relocation after August 2026, heat/cool supply from the current plant will end; a temporary plant will be constructed to ensure stable supply to customers from January 2027 onward.

• Energy Storage System
• Power and Environmental Solution

• We will continue to sell Energy Storage Systems equipped with optimal charge and discharge software based on machine learning (AI).
• Composition of PV integrated storage systems and power storage facilities.

Residential Battery Storage Systems

• As of the end of March 2026, cumulative sales of residential battery storage systems reached approximately 64,000 units, equivalent to about 635 MWh.
• GridShare Japan provides AI-based remote battery control services and is promoting the development of next-generation power businesses, including VPP and P2P electricity trading, together with participating partners; electric utilities and battery manufacturers.

Utility-Scale Battery Storage Systems

• As of the end of March 2026, cumulative sales of utility-scale battery storage systems exceeded 500 MWh, achieving the original 2028 target ahead of schedule.
• Japan’s first fund dedicated to grid-scale battery storage projects has been established, with investment projects already selected, and development of storage facilities will be promoted going forward.
• Two subsidies from METI and one subsidy from the Tokyo Metropolitan Government have been secured, and projects funded by our company and the ITOCHU Group are being promoted together with investment partners.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• Expanded the third party-owned distributed renewable power generation, across Japan through iGrid Solutions Co., Ltd., which operates approximately 1,300 on-site solar power plants (as of the end of January 2026: combined output of approximately 330 MW +20% year on year).
• Expanded the third party-owned distributed renewable power generation across Japan through Clean Energy Connect, Inc. which operates approximately 2,500 off-site solar power plants (as of the end of January 2026: combined output of approximately 220 MW +25% year on year).

• Residue input volume to the Dole Philippines biogas plant.
• GHG emissions reduction amount by introduction of clean energy.

Result in FYE 2026

• Utilization of processed pineapple residue: 117,666 t
  Due to improved pineapple yield, the amount of residue input has decreased.
• GHG emissions reduction from Renewable Energy installation: 68,526 t-CO₂e
  Reduction volume decreased due to lower residue input volume.

• Pulp
• Woodchips
• Wood products & materials

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• The total slag volume we handled was 1.68 Millon tons in FYE 2026, 13% increase from the previous year.

• Conduct regular monitoring of employees’ work situations.
• Conduct employee engagement survey.
• Promote the percentage of taking employee acquiring paid leave.

• Compliance to labor laws.
• Rate of positive responses to the “employee engagement” item in the engagement survey: 70% or higher.
• Paid leave acquisition rate at 70% or higher.

• Conducted monitoring of employee’s working hours and working environment so as to prevent unpaid overtime work.
• The positive answer rate to the “employee engagement” in employment survey which conducted in FYE 2026 was 71%, FYE 2025 was 68%, in FYE 2024 was 68%, in FYE 2023 was 67%.
• Percentage of taking employee acquiring paid leave; 70.7% in FYE 2026.

• Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
• Improve the lifestyle-related indicators (drinking, sleeping, smoking, etc.)
• Follow-up for health checkup consultation result.
• Promote support system for balancing cancer care and work with the partnership with the National Cancer Center Japan.
• Life security while absent or taking leave and providing scholarships.
• Grant special leave for cancer and designated intractable diseases.
• Establish international emergency medical structure.
• Conduct stress check every year.
• Conduct counselling by clinical psychologists.

• Improve the percentage of taking the cancer screening consultation and health checkup consultation.
• Improve presenteeism and absenteeism.
• Decrease in the number of employees taking absences and leave, and reduction in the job turnover rate.
• Decrease in the number of employees requiring specific health guidance and employees restricted from traveling overseas.
• Improve the utilization rate of the Cancer Treatment and Work-Life Balance Support Plan.
• Improve Sleep Restfulness.

• Percentage of employees who receive regular medical checkups in Japan: 99.4% (As of March 25th, 2026)
• Percentage of employees who take cancer screening consultation: 98.9% in FYE 2026
• Percentage of employees who take detailed examination for physical findings: 100% in FYE 2026
• Percentage of productivity loss due to presenteeism: 32.0% in FYE 2025
• Average Days of absenteeism: 2.1days in FYE 2026
• Number of employees taking leave due to mental health issues: 4 persons in FYE 2026
• Percentage of employees who receive specific health guidance: 77.9% in FYE 2025
• Percentage of employees utilize the Cancer Treatment and Work-Life Balance Support Plan: 94.1% in FYE 2026
• Percentage of employees who get enough rest through sleep: 65.4% in FYE 2026

• Continue to develop and provide training programs at all jobs levels.
• Continue and enhance overseas deployment of interns and language trainees.
• Offer diverse career path options and experience in diverse work through regular rotation.
• Foster career awareness among employees by enhancing personnel assessments, career vision training, career counselling systems and other programs/systems.

• Annual training-related expenses forecast: 2.7 billion yen in FYE 2026
• The number of employees who joined human development program（cumulative total number): 53,811
• Overseas dispatch rate for career-track employees in up to their eighth year since joining the company: 86%
  (As of FYE 2019, there were 743 employees required to be dispatched, of which 637 have actual overseas dispatch experience.)

• Achieve the following plans by Year 2030
  • (1) Female board of directors (including executive officers) as a percentage: 30%
• Achieve the following plans by FYE 2026
  • (2) Female employees as a percentage of workforce: 30%
  • (3) Female employees as a percentage of new employees: More than 40%
  • (4) Female employees as a percentage of employees in managerial positions: 10%
  • (5) Percentage of male employees who take childcare leave: 100%
• Achieve the following plans as of March 2025
  • (6) The percentage of employment of those with disabilities over our entire group: 2.5% (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.)
  • (1) to (5) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace

• (1) Females Officers(including Executive Officers) as a percentage of all Officers: 28.3% as of March 2026
• (2) Female employees as a percentage of workforce: 26.2% as of March 2026
• (3) Female employees as a percentage of new employees: 42% in FYE 2026
• (4) Female employees as a percentage of employees in managerial positions: 10.1% as of March 2026
• (5) Percentage of male employees who take childcare leave: 128% as of March 2026
• (6) The percentage of employment of those with disabilities over our entire group: 2.66% as of March 2026
  (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.)

• (1) to (5) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace.

Expanded Support for dual-income Households and Shared Parenting

The following initiatives have been introduced to support employees in balancing work with childcare, nursing care, and other personal responsibilities:

• Career continuity support, such as temporarily reducing the scope of authority and discretion and exempting employees from mandatory relocation
• Referrals to services that help ease the burden of housework and childcare, as well as financial assistance to cover related costs
• Communication seminars that explore effective ways for spouses to share housework and childcare responsibilities and to foster better relationships with workplace stakeholders

Preconception Care

Programs based on the concept of preconception care are provided to younger employees as an opportunity to offer accurate knowledge about health changes across life stages and to help them learn, at an early stage, the importance of health management.

• Mining
• Electric Power/Mining/Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for nine existing projects and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

Result in FYE 2026

• Coffee Beans (certified products): procurement ratio 34%
• Cacao beans (traceable products): procurement ratio 55%
• RSPO Certified Palm Products/Oleo chemicals: Palm Oils 38%
  Oleo Chemical Products 63%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans
  To contribute more directly to Ethiopia’s coffee industry, we partnered with related company to donate coffee seedlings.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 2,742 people as of March 2026 (2,625 full-time employees, 117 part-time and contract employees)
• Pineapple production: Approximately 10,000 t in FYE 2026
• Providing medical treatment for local persons.
  Through a non-profit organization, with whom the partnership agreement is signed for medical collaboration, we provide maternal healthcare services to employees, their families, and local residents. (In FYE 2026, 356 children were born in our clinic)

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes the modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chains transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE.”

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2028 through an original block chain-based traceability system.)
• We will increase the number of smallholders receiving sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 24% of the monthly purchasing volume up to the smallholders.
• Implemented sustainability training and education for 8,223 smallholders (based on the performance from January 2025 to December 2025), accumulatively 28,135 smallholders (*based on the performance from January 2021 to December 2025).

• In Kuwana City, Mie Prefecture, a public-private partnership project(PPP) is being promoted to construct an indoor swimming pool that contributes to the revitalization of the local community by consolidating school swimming lessons as well as expanding the functions of the sports park.
• In Kyoto Prefecture, another PPP is underway to develop an arena that will function as designated evacuation shelter as well as logistics and storage hub in case of a disaster.

• As a result of ITOCHU CHEMICAL FRONTIER Corporation’s efforts to maintain a stable supply of pharmaceutical raw materials to domestic and overseas drug manufacturers and to support the launch of new generic products, in FYE 2026 we launched generic diabetes medicine and Leukemia medications.
• We have continued to sell a pain reliever in North America through ITOCHU CHEMICAL FRONTIER Corporation.

• Support pharmaceutical development projects
• Preventative healthcare-related business
• Medical healthcare IT business
• Sales of Cutting-Edge medical devices and provision of medical services

• We will provide value-added services for pharmaceuticals and medical sites, and will contribute to the improvement of people’s quality of life (QOL) by utilizing cutting-edge ICT tools.
• We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly.

• We will optimize healthcare utilizing medical data.
• Promote sales of advanced medical devices.

• Realization of new services and business development relating to medical data.
• Increased penetration of medical devices that enhance quality of life, such as scalp cooling therapy systems.

Introduction of a scalp cooling therapy system for cancer patients that is effective in reducing hair loss caused by anticancer drug treatment.
Implementation Results for FYE 2026:

• 20 facilities (a cumulative total of 123 facilities)
• 2,100 people (a cumulative total of 6,200 participants)

• Loan Balance Growth Rate
  (As of the end of January 2026, compared with the end of the previous fiscal year)

  • UAF (Hong Kong): 107.4%
  • EasyBuy (Thailand): 98.6%
  • FRF (UK): 105.8%
  • ACF (Philippines): 120.1%
• UAF, FRF, and ACF remained steady. On the other hand, EasyBuy’s loan balance has decreased due to the impact of the Bank of Thailand’s regulations on household debt.

• The environmental impact of handling recycled polyester through the RENU project is as follows (estimated for FYE 2026).

  • Waste volume to be made into RENU: equivalent to 4.8 million pieces of T-shirts
  • CO₂ reduction: 1,491 tons
  • Water usage reduction: 5,018 kiloliters
• Approximately 6,000 collection points for Wear to Fashion, the clothing recycling service (as of March 2026).
• We are currently operating a joint project called the ARChemia Project, which involves textiles and chemicals, and transforms used clothing into chemical products with high environmental added value. At Expo 2025 Osaka, Kansai, some of the used uniforms from the Expo staff were recycled through this project, contributing to the realization of a circular society.

• Production began in 2022 at the Western Ridge iron ore deposits, which we acquired a partial interest from major resource company BHP. In 2024, we are promoting the introduction of new equipment installation and infrastructure construction. The South Flank iron ore deposit, which began production in 2021, continues to operate smoothly, and in 2024, it is on track to establish an annual production capacity of 80 million tons as planned. In 2025, we acquired a partial indirect interest in the Ministers North Iron Ore Deposit from BHP and development of the Deposit is subject to a potential Final Investment Decision by June 2026. In the Western Australian Iron Ore Operations, various measures are being promoted to ensure a stable supply, improve productivity, and to maintain and strengthen cost competitiveness.
• In 2024, we executed an increase in our stake in Iron Ore Business in Brazil (CSN Mineração), which produces high-grade iron ore rich on a large scale and at low cost. This strengthens the stable supply system of high-grade iron ore, contributing to the decarbonization of steel.
• Commercial production began in 2023 at the Allegheny coking coal mine in the USA, in which we invested in 2019 for the purpose of securing a stable supply of high-quality steelmaking raw materials. In 2025, we continued the efforts from the previous year to improve the mine’s operational environment and stability.

• Mining
• Electric Power/Mining/Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for nine existing projects and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

Result in FYE 2026

• Coffee Beans (certified products): procurement ratio 34%
• Cacao beans (traceable products): procurement ratio 55%
• RSPO Certified Palm Products/Oleo chemicals: Palm Oils 38%
  Oleo Chemical Products 63%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans
  To contribute more directly to Ethiopia’s coffee industry, we partnered with related company to donate coffee seedlings.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 2,742 people as of March 2026 (2,625 full-time employees, 117 part-time and contract employees)
• Pineapple production: Approximately 10,000 t in FYE 2026
• Providing medical treatment for local persons.
  Through a non-profit organization, with whom the partnership agreement is signed for medical collaboration, we provide maternal healthcare services to employees, their families, and local residents. (In FYE 2026, 356 children were born in our clinic)

• Reduction of waste at the production site (Philippines)
• Reuse of discarded bananas (Japan)

Result in FYE 2026

• Reuse of waste bananas in Philippines: 35,975 t
• Reuse of waste bananas in Japan: 5,082 t
  Reuse volume increased due to progress of Mottainai bananas project.

• Food waste generation in FYE 2026 is projected to be 51.8% lower than in FYE 2017, representing a 6.7% decrease from the previous year.
• In addition to adjusting supply and demand based on retail store sales and order data and increasing the volume of products donated to food banks, we also strengthened awareness‑raising activities to reduce food loss, and plan to continue these reduction measures even after achieving the target.

• Pulp
• Woodchips
• Wood products & materials

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes the modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chains transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE.”

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2028 through an original block chain-based traceability system.)
• We will increase the number of smallholders receiving sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 24% of the monthly purchasing volume up to the smallholders.
• Implemented sustainability training and education for 8,223 smallholders (based on the performance from January 2025 to December 2025), accumulatively 28,135 smallholders (*based on the performance from January 2021 to December 2025).

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• The total slag volume we handled was 1.68 Millon tons in FYE 2026, 13% increase from the previous year.

• Expand supply channels in order to realize a sustainable and stable procurement of resources.
• Reinforce promotional activities in order to raise the awareness of secondhand mobile phones/tablets.

• Expand product variation and supply channels.
• Expand distribution outlets.

• Product Handling Models: Increased from 947 models in FYE 2025 to 1,494 models in FYE 2026.
• Procurement Sources: Maintained at 12 companies from FYE 2025 to FYE 2026.
• Distribution Channels: Expanding sales channels through major e-commerce operators in addition to our own e-commerce site.

• Appoint several outside Directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
• Maintain a highly transparent and objective Directors’ and officers’ remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company’s performance and the improvement of our corporate value.

• We have maintained the diversity of the Board of Directors (always appointing one third or higher percentage of outside Directors—four outside Directors out of 10 Directors; two female Directors out of 10 Directors; two female Audit & Supervisory Board Members; and one outside Director and one outside Audit & Supervisory Board Member with extensive corporate management experience).
• The majority (four out of seven members) of the Governance, Nomination and Remuneration Committee and its chair continue to be outside Directors.
• The chair of the Women’s Advancement Committee is a female outside Director. The ratios of outside officers and female members have been increased to a majority (four out of seven members in each case).
• We conducted an evaluation of the effectiveness of the Board of Directors with the support of an external consultant and confirmed that the effectiveness of our Board continues to be ensured.

• In March 2025, the Stamp Duty Assessment Agent received the Excellence Award at the Google Generative AI Awards. Since then, we have continued to leverage Google’s generative AI services, implementing numerous AI agents such as the HS CODE Agent and the Contract Review AI. As a result, adoption of these agents and Google’s generative AI services has expanded to approximately 1,300 users across both ITOCHU Corporation and our Group companies. Through the utilization of generative AI, we have achieved a reduction of 13,000 working hours per month across ITOCHU Group (based on self-reported data from 522 survey respondents).
• A project to introduce a Voice of Customer (VoC) tool utilizing generative AI is currently underway at 6 group companies. The initiative aims not only to improve operational efficiency such as by enhancing product planning accuracy and optimizing customer service, but also to elevate business models to a more advanced level.
• Reforms are progressing across 7 retail companies through measures such as the introduction of Generative AI-powered inventory optimization tools. With significant inventory reductions achieved at Dome Corporation, the combined ROA (Return on Assets) for these 7 companies is projected to improve from 2.5% in FYE 2025 to 4.4% in FYE 2026.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in international shipping, Machinery Company is involved in an integrated project for ammonia-fueled vessels aimed at follows.
  (i) developing ammonia-fueled vessels
  (ii) owning and operating ammonia-fueled vessels
  (iii) developing fuel supply chains
  (iv) procuring/producing clean ammonia
• Development of an ammonia-fueled engine for large bulk carrier was completed in February 2026. In FYE 2027, the project will move to discussions with shipyards on specifications and shipbuilding cost estimates.
• Development of ammonia fuel supply chains is being prioritized in Singapore, followed by major ports in Europe / the Suez Canal / the Panama Canal and others. Machinery Company was selected by the Singapore government as a potential ammonia-fuel bunkering operator in July 2024. An ammonia bunkering vessel for this business was ordered in July 2025 and is scheduled to be completed in September 2027. Discussions with relevant parties, including authorities, are ongoing toward demonstration in Singapore.
• Green ammonia production projects in Indonesia, India, and other countries are being advanced to support bunkering hubs in Singapore and Europe.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Based on insights from the EVision demonstration conducted in the previous fiscal year, SmartEVer, an energy management service that integrates EV charging operations with facility power demand control, was co-developed with Isuzu Motors Limited and I-Grid Solutions Inc., and the service was launched.
• Starting in November 2025, in collaboration with Isuzu Motors Limited, FamilyMart Co., Ltd., and the City of Yokohama, a delivery demonstration began in Yokohama using Japan’s first battery swapping station enabling simultaneous swaps on both sides and three ELF EV vehicles. Through deliveries to approximately 80 stores, the project will verify high-utilization operation of commercial EVs, reduced downtime through battery swapping, business feasibility, and decarbonization effects, aiming for early commercialization of battery-swappable EV trucks.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Development and commercialization of hydrogen fuel cell–electric engines for small and large propeller aircraft.
• Utilization of key components for electric propulsion systems, including fuel cells and electric motors.

• In January 2024, we invested in ZeroAvia, an aerospace venture that develops hydrogen fuel cell engines for aircraft. We are promoting sales of the engines in Japan and Asia and supporting the development of hydrogen infrastructure centered on airports.
• In November 2025, ZeroAvia obtained a Design Organisation Approval from the UK Civil Aviation Authority as the world’s first hydrogen-related company. This demonstrates ZeroAvia’s eligibility toward type certification, and engine development is progressing steadily.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce GHG, such as lighter-weight vehicles and electric vehicles (EVs) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of GHG emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in GHG emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, UAE’s largest steelmaker EMSTEEL, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry. In May 2024, we signed a Memorandum of Understanding with CSN Mineração S.A. (CM) in our Iron Ore Business in Brazil and NEXI concerning the decarbonization of the steel industry, which includes utilizing high-grade iron ore produced by CM.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies.
• We have invested in Everfuel of Denmark, who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In February 2025, we have commenced the first commercial production of green hydrogen, promoting the establishment of a locally-produced and consumed green hydrogen value chain.
• We have signed a Joint Development and Operating Agreement with Osaka Gas, Toho Gas, and others to participate in large-scale facility to produce electric natural gas (e-NG) (Live Oak Project),which TotalEnergies and Tree Energy Solutions have been promoting in Nebraska in the United States, starting from the Front-End Engineering Design (FEED) phase. Through the project, we aim to begin commercial operations and export e-NG to Japan by 2030.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We have an investment into Australia-based MCi Carbon, who possesses mineral carbonation technologies. We are promoting their technology for the market. In December 2024, we have completed the construction of the first demonstration plant capable of processing multiple raw materials such as waste concrete and steel slag to produce carbonates. In January 2025, we have signed a memorandum of understanding with Mitsubishi UBE Cement Corporation to promote the construction of manufacturing plants and the establishment of a supply chain for raw material procurement and sales.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2026, and promoted sales of environmentally friendly raw materials for aluminum.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.

• Mining business
• Resource-related business
• Logistics business

• Promote an increase in efficiency of mine operations and facility management utilizing digital transformation.
• Promote conversion to the automatic operation of mining equipment such as underground mining equipment and dump trucks.

• We signed a memorandum to collaborate in decarbonization and digital transformation with Companhia Siderúrgica Nacional (CSN) and started demonstration experiment with the aim of contributing to increased safety, operational efficiency, and decarbonization at the iron ore mine (Casa de Pedra [CdP] Mine) that we have invested and CSN steel work.
• It began the full-scale operation of GE Digital’s operation and asset management software at the CdP Mine in Brazil, improving the plant’s actual yield rate. We are currently considering to apply of the system at other operational sites and other regions.

• We will aim to improve productivity and increase business efficiency in the overall food-related field by promoting systemization of RPA and AI.
• We will aim to create innovative services and new business by integrating resources and new technologies of the ITOCHU Group.

• We will aim to improve productivity and increase business efficiency by introducing and utilizing new systems and new technologies focused on the food distribution field.
• We will create unique new value by combining the wide ranging product lineup, functions and expertise of our group based on retail customer needs.

• Status of promoting business reform in the food-related field with the introduction of AI, RPA and other systems.
• Status of promoting the development of new products and services through the food wholesale business developed by the ITOCHU Group.

• Provided value chain optimization services to eight retailers.
  • (1) Demand-forecasting services introduced to two retailers, improving logistics efficiency; used by 170 manufacturers and wholesalers.
  • (2) Store order optimization services introduced to 6 retailers, streamlining store operations.
• November 2025 PoC with a selected retailer confirmed 24% improvement in loading efficiency and 4% reduction in distribution center labor hours under certain conditions.

• Increase the number of partnerships.
• Development and introduction of new services and businesses related to Sustainability Transformation and Green Transformation.

• We’ve started working with 4 new vendors in the AI and enterprise security fields.
• Provide services and solutions that enhance the efficiency and flexibility of network operations and the utilization of data.
• With the aim of creating new business opportunities in the domains of Sustainability Transformation (SX) and Green Transformation (GX), the company offers ERP solutions to support corporate sustainability management, ranging from the collection and analysis of corporate ESG data to the preparation of disclosure reports, while also providing support for the disclosure of non-financial information and consulting services to reduce CO₂ emissions.
• We are committed to further expand business to contribute to the realization of a safe, secure, and highly convenient social infrastructure.

• Tyr Energy Development Renewables, the U.S. based renewable energy development company established in FYE 2023, sold two developed solar assets in FYE 2026, bringing the cumulative total of sold solar assets to 15, and is currently developing 24 solar projects (approximately 4.3 GW) across 10 states in the United States.
• NAES Corporation, the U.S. subsidiary and world’s largest independent power plant operation and maintenance service company, provides operation & maintenance services for approximately 1,000 renewable power generation sites (equivalent to 3 GW).
• In June 2023, a fund investing in North American renewable energy assets was established. The fund made one additional investment in FYE 2026, bringing the cumulative total to 3 executed investments (406 MW).
• In January 2025, we agreed to invest in the Bowman Wind Project (208 MW) under construction in North Dakota, and in October 2025, agreed to invest in the Black Hollow Sun Project (258 MW) under construction in Colorado, steadily executing investments in renewable energy assets.
• As of March 2026, the ratio of renewable energy based on generation capacity share is 19.9% (1.2% increase compared to the previous year).

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in international shipping, Machinery Company is involved in an integrated project for ammonia-fueled vessels aimed at follows.
  (i) developing ammonia-fueled vessels
  (ii) owning and operating ammonia-fueled vessels
  (iii) developing fuel supply chains
  (iv) procuring/producing clean ammonia
• Development of an ammonia-fueled engine for large bulk carrier was completed in February 2026. In FYE 2027, the project will move to discussions with shipyards on specifications and shipbuilding cost estimates.
• Development of ammonia fuel supply chains is being prioritized in Singapore, followed by major ports in Europe / the Suez Canal / the Panama Canal and others. Machinery Company was selected by the Singapore government as a potential ammonia-fuel bunkering operator in July 2024. An ammonia bunkering vessel for this business was ordered in July 2025 and is scheduled to be completed in September 2027. Discussions with relevant parties, including authorities, are ongoing toward demonstration in Singapore.
• Green ammonia production projects in Indonesia, India, and other countries are being advanced to support bunkering hubs in Singapore and Europe.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Based on insights from the EVision demonstration conducted in the previous fiscal year, SmartEVer, an energy management service that integrates EV charging operations with facility power demand control, was co-developed with Isuzu Motors Limited and I-Grid Solutions Inc., and the service was launched.
• Starting in November 2025, in collaboration with Isuzu Motors Limited, FamilyMart Co., Ltd., and the City of Yokohama, a delivery demonstration began in Yokohama using Japan’s first battery swapping station enabling simultaneous swaps on both sides and three ELF EV vehicles. Through deliveries to approximately 80 stores, the project will verify high-utilization operation of commercial EVs, reduced downtime through battery swapping, business feasibility, and decarbonization effects, aiming for early commercialization of battery-swappable EV trucks.

• Water Resources
• Pollution Prevention and Resource Recycling

Water Field

• We are promoting seawater desalination business in Australia and Oman, supplying approximately 30% of Melbourne’s water demand and about 30% of the water demand of 1.5 million people in Oman’s Muscat metropolitan area.

Environmental Field

• UK: We operate three municipal waste incineration and power generation projects (Energy-from-Waste/EfW projects), processing 850,000 tons of municipal waste annually and providing electricity to 100,000 households.
• Serbia: Machinery Company established the first integrated waste management project in Serbia. It contributes to addressing Serbia’s major environmental and social issues by reducing GHG emissions and polluted water leakage. Commercial operation of the EfW project began in July 2024, and the carbon credits from the project have been accredited by Gold Standard. In FYE 2026, the contribution to GHG reductions is approximately 100,000 t-CO₂e per year.
• UAE: We operate the first EfW project in Dubai. The project is a world-leading plant designed to process 1.9 million tons of municipal waste per year, equivalent to about half of the waste generated in UAE. Commercial operation began in August 2024 and is expected to contribute approximately 2.17 million t-CO₂e per year in GHG reductions.
• Saudi Arabia: We are participating in an integrated hazardous waste management service in Jubail Industrial City.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Development and commercialization of hydrogen fuel cell–electric engines for small and large propeller aircraft.
• Utilization of key components for electric propulsion systems, including fuel cells and electric motors.

• In January 2024, we invested in ZeroAvia, an aerospace venture that develops hydrogen fuel cell engines for aircraft. We are promoting sales of the engines in Japan and Asia and supporting the development of hydrogen infrastructure centered on airports.
• In November 2025, ZeroAvia obtained a Design Organisation Approval from the UK Civil Aviation Authority as the world’s first hydrogen-related company. This demonstrates ZeroAvia’s eligibility toward type certification, and engine development is progressing steadily.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce GHG, such as lighter-weight vehicles and electric vehicles (EVs) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of GHG emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in GHG emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, UAE’s largest steelmaker EMSTEEL, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry. In May 2024, we signed a Memorandum of Understanding with CSN Mineração S.A. (CM) in our Iron Ore Business in Brazil and NEXI concerning the decarbonization of the steel industry, which includes utilizing high-grade iron ore produced by CM.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies.
• We have invested in Everfuel of Denmark, who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In February 2025, we have commenced the first commercial production of green hydrogen, promoting the establishment of a locally-produced and consumed green hydrogen value chain.
• We have signed a Joint Development and Operating Agreement with Osaka Gas, Toho Gas, and others to participate in large-scale facility to produce electric natural gas (e-NG) (Live Oak Project), which TotalEnergies and Tree Energy Solutions have been promoting in Nebraska in the United States, starting from the Front-End Engineering Design (FEED) phase. Through the project, we aim to begin commercial operations and export e-NG to Japan by 2030.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We have an investment into Australia-based MCi Carbon, who possesses mineral carbonation technologies. We are promoting their technology for the market. In December 2024, we have completed the construction of the first demonstration plant capable of processing multiple raw materials such as waste concrete and steel slag to produce carbonates. In January 2025, we have signed a memorandum of understanding with Mitsubishi UBE Cement Corporation to promote the construction of manufacturing plants and the establishment of a supply chain for raw material procurement and sales.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2026, and promoted sales of environmentally friendly raw materials for aluminum.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.

• Transition Risk
• Stable Supply of Resources

• Communicate appropriately with neighboring stakeholders in the Jingu Gaien district.
• Engineering, construction, and operation of highly efficient heat supply plants.

• Ongoing discussions with stakeholders to promote efficient heat supply to neighboring areas.
• Due to the headquarters relocation after August 2026, heat/cool supply from the current plant will end; a temporary plant will be constructed to ensure stable supply to customers from January 2027 onward.

• Energy Storage System
• Power and Environmental Solution

• We will continue to sell Energy Storage Systems equipped with optimal charge and discharge software based on machine learning (AI).
• Composition of PV integrated storage systems and power storage facilities.

Residential Battery Storage Systems

• As of the end of March 2026, cumulative sales of residential battery storage systems reached approximately 64,000 units, equivalent to about 635 MWh.
• GridShare Japan provides AI-based remote battery control services and is promoting the development of next-generation power businesses, including VPP and P2P electricity trading, together with participating partners; electric utilities and battery manufacturers.

Utility-Scale Battery Storage Systems

• As of the end of March 2026, cumulative sales of utility-scale battery storage systems exceeded 500 MWh, achieving the original 2028 target ahead of schedule.
• Japan’s first fund dedicated to grid-scale battery storage projects has been established, with investment projects already selected, and development of storage facilities will be promoted going forward.
• Two subsidies from METI and one subsidy from the Tokyo Metropolitan Government have been secured, and projects funded by our company and the ITOCHU Group are being promoted together with investment partners.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• Expanded the third party-owned distributed renewable power generation, across Japan through iGrid Solutions Co., Ltd., which operates approximately 1,300 on-site solar power plants (as of the end of January 2026: combined output of approximately 330 MW +20% year on year).
• Expanded the third party-owned distributed renewable power generation across Japan through Clean Energy Connect, Inc. which operates approximately 2,500 off-site solar power plants (as of the end of January 2026: combined output of approximately 220 MW +25% year on year).

• Residue input volume to the Dole Philippines biogas plant.
• GHG emissions reduction amount by introduction of clean energy.

Result in FYE 2026

• Utilization of processed pineapple residue: 117,666 t
  Due to improved pineapple yield, the amount of residue input has decreased.
• GHG emissions reduction from Renewable Energy installation: 68,526 t-CO₂e
  Reduction volume decreased due to lower residue input volume.

• Pulp
• Woodchips
• Wood products & materials

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• The total slag volume we handled was 1.68 Millon tons in FYE 2026, 13% increase from the previous year.

• Conduct regular monitoring of employees’ work situations.
• Conduct employee engagement survey.
• Promote the percentage of taking employee acquiring paid leave.

• Compliance to labor laws.
• Rate of positive responses to the “employee engagement” item in the engagement survey: 70% or higher.
• Paid leave acquisition rate at 70% or higher.

• Conducted monitoring of employee’s working hours and working environment so as to prevent unpaid overtime work.
• The positive answer rate to the “employee engagement” in employment survey which conducted in FYE 2026 was 71%, FYE 2025 was 68%, in FYE 2024 was 68%, in FYE 2023 was 67%.
• Percentage of taking employee acquiring paid leave; 70.7% in FYE 2026.

• Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
• Improve the lifestyle-related indicators (drinking, sleeping, smoking, etc.)
• Follow-up for health checkup consultation result.
• Promote support system for balancing cancer care and work with the partnership with the National Cancer Center Japan.
• Life security while absent or taking leave and providing scholarships.
• Grant special leave for cancer and designated intractable diseases.
• Establish international emergency medical structure.
• Conduct stress check every year.
• Conduct counselling by clinical psychologists.

• Improve the percentage of taking the cancer screening consultation and health checkup consultation.
• Improve presenteeism and absenteeism.
• Decrease in the number of employees taking absences and leave, and reduction in the job turnover rate.
• Decrease in the number of employees requiring specific health guidance and employees restricted from traveling overseas.
• Improve the utilization rate of the Cancer Treatment and Work-Life Balance Support Plan.
• Improve Sleep Restfulness.

• Percentage of employees who receive regular medical checkups in Japan: 99.4% (As of March 25th, 2026)
• Percentage of employees who take cancer screening consultation: 98.9% in FYE 2026
• Percentage of employees who take detailed examination for physical findings: 100% in FYE 2026
• Percentage of productivity loss due to presenteeism: 32.0% in FYE 2025
• Average Days of absenteeism: 2.1days in FYE 2026
• Number of employees taking leave due to mental health issues: 4 persons in FYE 2026
• Percentage of employees who receive specific health guidance: 77.9% in FYE 2025
• Percentage of employees utilize the Cancer Treatment and Work-Life Balance Support Plan: 94.1% in FYE 2026
• Percentage of employees who get enough rest through sleep: 65.4% in FYE 2026

• Continue to develop and provide training programs at all jobs levels.
• Continue and enhance overseas deployment of interns and language trainees.
• Offer diverse career path options and experience in diverse work through regular rotation.
• Foster career awareness among employees by enhancing personnel assessments, career vision training, career counselling systems and other programs/systems.

• Annual training-related expenses forecast: 2.7 billion yen in FYE 2026
• The number of employees who joined human development program（cumulative total number): 53,811
• Overseas dispatch rate for career-track employees in up to their eighth year since joining the company: 86%
  (As of FYE 2019, there were 743 employees required to be dispatched, of which 637 have actual overseas dispatch experience.)

• Achieve the following plans by Year 2030
  • (1) Female board of directors (including executive officers) as a percentage: 30%
• Achieve the following plans by FYE 2026
  • (2) Female employees as a percentage of workforce: 30%
  • (3) Female employees as a percentage of new employees: More than 40%
  • (4) Female employees as a percentage of employees in managerial positions: 10%
  • (5) Percentage of male employees who take childcare leave: 100%
• Achieve the following plans as of March 2025
  • (6) The percentage of employment of those with disabilities over our entire group: 2.5% (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.)
  • (1) to (5) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace

• (1) Females Officers(including Executive Officers) as a percentage of all Officers: 28.3% as of March 2026
• (2) Female employees as a percentage of workforce: 26.2% as of March 2026
• (3) Female employees as a percentage of new employees: 42% in FYE 2026
• (4) Female employees as a percentage of employees in managerial positions: 10.1% as of March 2026
• (5) Percentage of male employees who take childcare leave: 128% as of March 2026
• (6) The percentage of employment of those with disabilities over our entire group: 2.66% as of March 2026
  (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.)

• (1) to (5) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace.

Expanded Support for dual-income Households and Shared Parenting

The following initiatives have been introduced to support employees in balancing work with childcare, nursing care, and other personal responsibilities:

• Career continuity support, such as temporarily reducing the scope of authority and discretion and exempting employees from mandatory relocation
• Referrals to services that help ease the burden of housework and childcare, as well as financial assistance to cover related costs
• Communication seminars that explore effective ways for spouses to share housework and childcare responsibilities and to foster better relationships with workplace stakeholders

Preconception Care

Programs based on the concept of preconception care are provided to younger employees as an opportunity to offer accurate knowledge about health changes across life stages and to help them learn, at an early stage, the importance of health management.

• Mining
• Electric Power/Mining/Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for nine existing projects and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

Result in FYE 2026

• Coffee Beans (certified products): procurement ratio 34%
• Cacao beans (traceable products): procurement ratio 55%
• RSPO Certified Palm Products/Oleo chemicals: Palm Oils 38%
  Oleo Chemical Products 63%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans
  To contribute more directly to Ethiopia’s coffee industry, we partnered with related company to donate coffee seedlings.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 2,742 people as of March 2026 (2,625 full-time employees, 117 part-time and contract employees)
• Pineapple production: Approximately 10,000 t in FYE 2026
• Providing medical treatment for local persons.
  Through a non-profit organization, with whom the partnership agreement is signed for medical collaboration, we provide maternal healthcare services to employees, their families, and local residents. (In FYE 2026, 356 children were born in our clinic)

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes the modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chains transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE.”

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2028 through an original block chain-based traceability system.)
• We will increase the number of smallholders receiving sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 24% of the monthly purchasing volume up to the smallholders.
• Implemented sustainability training and education for 8,223 smallholders (based on the performance from January 2025 to December 2025), accumulatively 28,135 smallholders (*based on the performance from January 2021 to December 2025).

• In Kuwana City, Mie Prefecture, a public-private partnership project(PPP) is being promoted to construct an indoor swimming pool that contributes to the revitalization of the local community by consolidating school swimming lessons as well as expanding the functions of the sports park.
• In Kyoto Prefecture, another PPP is underway to develop an arena that will function as designated evacuation shelter as well as logistics and storage hub in case of a disaster.

• As a result of ITOCHU CHEMICAL FRONTIER Corporation’s efforts to maintain a stable supply of pharmaceutical raw materials to domestic and overseas drug manufacturers and to support the launch of new generic products, in FYE 2026 we launched generic diabetes medicine and Leukemia medications.
• We have continued to sell a pain reliever in North America through ITOCHU CHEMICAL FRONTIER Corporation.

• Support pharmaceutical development projects
• Preventative healthcare-related business
• Medical healthcare IT business
• Sales of Cutting-Edge medical devices and provision of medical services

• We will provide value-added services for pharmaceuticals and medical sites, and will contribute to the improvement of people’s quality of life (QOL) by utilizing cutting-edge ICT tools.
• We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly.

• We will optimize healthcare utilizing medical data.
• Promote sales of advanced medical devices.

• Realization of new services and business development relating to medical data.
• Increased penetration of medical devices that enhance quality of life, such as scalp cooling therapy systems.

Introduction of a scalp cooling therapy system for cancer patients that is effective in reducing hair loss caused by anticancer drug treatment.
Implementation Results for FYE 2026:

• 20 facilities (a cumulative total of 123 facilities)
• 2,100 people (a cumulative total of 6,200 participants)

• Loan Balance Growth Rate
  (As of the end of January 2026, compared with the end of the previous fiscal year)

  • UAF (Hong Kong): 107.4%
  • EasyBuy (Thailand): 98.6%
  • FRF (UK): 105.8%
  • ACF (Philippines): 120.1%
• UAF, FRF, and ACF remained steady. On the other hand, EasyBuy’s loan balance has decreased due to the impact of the Bank of Thailand’s regulations on household debt.

• The environmental impact of handling recycled polyester through the RENU project is as follows (estimated for FYE 2026).

  • Waste volume to be made into RENU: equivalent to 4.8 million pieces of T-shirts
  • CO₂ reduction: 1,491 tons
  • Water usage reduction: 5,018 kiloliters
• Approximately 6,000 collection points for Wear to Fashion, the clothing recycling service (as of March 2026).
• We are currently operating a joint project called the ARChemia Project, which involves textiles and chemicals, and transforms used clothing into chemical products with high environmental added value. At Expo 2025 Osaka, Kansai, some of the used uniforms from the Expo staff were recycled through this project, contributing to the realization of a circular society.

• Production began in 2022 at the Western Ridge iron ore deposits, which we acquired a partial interest from major resource company BHP. In 2024, we are promoting the introduction of new equipment installation and infrastructure construction. The South Flank iron ore deposit, which began production in 2021, continues to operate smoothly, and in 2024, it is on track to establish an annual production capacity of 80 million tons as planned. In 2025, we acquired a partial indirect interest in the Ministers North Iron Ore Deposit from BHP and development of the Deposit is subject to a potential Final Investment Decision by June 2026. In the Western Australian Iron Ore Operations, various measures are being promoted to ensure a stable supply, improve productivity, and to maintain and strengthen cost competitiveness.
• In 2024, we executed an increase in our stake in Iron Ore Business in Brazil (CSN Mineração), which produces high-grade iron ore rich on a large scale and at low cost. This strengthens the stable supply system of high-grade iron ore, contributing to the decarbonization of steel.
• Commercial production began in 2023 at the Allegheny coking coal mine in the USA, in which we invested in 2019 for the purpose of securing a stable supply of high-quality steelmaking raw materials. In 2025, we continued the efforts from the previous year to improve the mine’s operational environment and stability.

• Mining
• Electric Power/Mining/Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for nine existing projects and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

Result in FYE 2026

• Coffee Beans (certified products): procurement ratio 34%
• Cacao beans (traceable products): procurement ratio 55%
• RSPO Certified Palm Products/Oleo chemicals: Palm Oils 38%
  Oleo Chemical Products 63%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans
  To contribute more directly to Ethiopia’s coffee industry, we partnered with related company to donate coffee seedlings.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 2,742 people as of March 2026 (2,625 full-time employees, 117 part-time and contract employees)
• Pineapple production: Approximately 10,000 t in FYE 2026
• Providing medical treatment for local persons.
  Through a non-profit organization, with whom the partnership agreement is signed for medical collaboration, we provide maternal healthcare services to employees, their families, and local residents. (In FYE 2026, 356 children were born in our clinic)

• Reduction of waste at the production site (Philippines)
• Reuse of discarded bananas (Japan)

Result in FYE 2026

• Reuse of waste bananas in Philippines: 35,975 t
• Reuse of waste bananas in Japan: 5,082 t
  Reuse volume increased due to progress of Mottainai bananas project.

• Food waste generation in FYE 2026 is projected to be 51.8% lower than in FYE 2017, representing a 6.7% decrease from the previous year.
• In addition to adjusting supply and demand based on retail store sales and order data and increasing the volume of products donated to food banks, we also strengthened awareness‑raising activities to reduce food loss, and plan to continue these reduction measures even after achieving the target.

• Pulp
• Woodchips
• Wood products & materials

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes the modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chains transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE.”

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2028 through an original block chain-based traceability system.)
• We will increase the number of smallholders receiving sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 24% of the monthly purchasing volume up to the smallholders.
• Implemented sustainability training and education for 8,223 smallholders (based on the performance from January 2025 to December 2025), accumulatively 28,135 smallholders (*based on the performance from January 2021 to December 2025).

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• The total slag volume we handled was 1.68 Millon tons in FYE 2026, 13% increase from the previous year.

• Expand supply channels in order to realize a sustainable and stable procurement of resources.
• Reinforce promotional activities in order to raise the awareness of secondhand mobile phones/tablets.

• Expand product variation and supply channels.
• Expand distribution outlets.

• Product Handling Models: Increased from 947 models in FYE 2025 to 1,494 models in FYE 2026.
• Procurement Sources: Maintained at 12 companies from FYE 2025 to FYE 2026.
• Distribution Channels: Expanding sales channels through major e-commerce operators in addition to our own e-commerce site.

• Appoint several outside Directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
• Maintain a highly transparent and objective Directors’ and officers’ remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company’s performance and the improvement of our corporate value.

• We have maintained the diversity of the Board of Directors (always appointing one third or higher percentage of outside Directors—four outside Directors out of 10 Directors; two female Directors out of 10 Directors; two female Audit & Supervisory Board Members; and one outside Director and one outside Audit & Supervisory Board Member with extensive corporate management experience).
• The majority (four out of seven members) of the Governance, Nomination and Remuneration Committee and its chair continue to be outside Directors.
• The chair of the Women’s Advancement Committee is a female outside Director. The ratios of outside officers and female members have been increased to a majority (four out of seven members in each case).
• We conducted an evaluation of the effectiveness of the Board of Directors with the support of an external consultant and confirmed that the effectiveness of our Board continues to be ensured.