ITOCHU Announces Capital/Business Partnership with Toda Kogyo Corp.

December 28, 2012

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has concluded an agreement with a leading iron oxide and electronic materials manufacturer, Toda Kogyo Corp. (Listed on the First Section of TSE; headquartered in Otake-city, Hiroshima; Toshiyuki Toda, President; hereinafter “Toda Kogyo”) to sign a capital/business partnership and acquire all shares that Toda Kogyo will issue additionally through private placement. After acquiring the newly issued shares, ITOCHU will own 20.7% of Toda Kogyo’s issued shares (22.1% ownership of voting shares), placing Toda Kogyo as an equity-method affiliate of ITOCHU.

ITOCHU will utilise the technological capability and production facilities of Toda Kogyo to strengthen its trade business in the cathode materials for lithium-ion batteries market expected to exceed 300 billion yen in 2015 and in the electronic materials business for high growth sectors such as smartphones, tablets, and PCs, as well as electric vehicle (EVs). ITOCHU will also seek to develop strategic products for new applications.

Toda Kogyo manufactures a diverse range of products based on metal oxide wet synthesis technology. These include cathode materials for lithium-ion batteries, a variety of coloring materials such as pigment and toner, as well as magnetic materials such as magnetic powder material and other ferrite materials. With the motto of providing solutions to support the information, environment, and energy sectors, Toda Kogyo aims to expand its global business by strengthening its marketing, raw materials procurement, and logistics capabilities.

ITOCHU and Toda Kogyo will further strengthen their existing relationship by building a framework for full-scale cooperation that will include a direct assignment of human resources in addition to the existing collaborations in manufacturing and marketing joint ventures for cathode material established in North America and China. This new capital/business partnership agreement will integrate ITOCHU’s expertise in raw materials procurement, marketing, and logistics functions based on its domestic and overseas group network together with Toda Kogyo’s technological and development expertise to expand the existing business and to promote creation of business in new sectors. Both Itochu and Toda Kogyo will aim to achieve a win-win relationship that allows both companies to grow and develop as well as mutually creating corporate value by strengthening product competitiveness and expanding our presence in new markets.