ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announces the implementation of the following initiatives to further strengthen human capital.

To further motivate our employees, we have introduced a "performance-linked compensation system" (*1). In response to evolving internal and external environments, we are revising our compensation system to enhance recruitment competitiveness and employee engagement, thereby expanding growth investment in our employees. Under this revision, top-performing employees will receive individual bonuses approximately four times higher than those with average evaluations. Additionally, we will implement a 2-3% increase in base salary for all employees.

Since fiscal 2019, we have implemented a Stock Incentive Program (*2) utilizing the employee stock ownership plan, with nearly full participation from our employees. Considering the enforcement of the revised "Cabinet Office Ordinance on Definitions Prescribed in Article 2 of the Financial Instruments and Exchange Act" (*3) from January 1, 2025, we will double the stock incentive amount to enhance employees' awareness of management participation and support their medium- to long-term asset formation. These revisions are expected to result in an approximately 10% increase in the average annual income for fiscal 2025 compared to the previous year.

(1) Renaming the Job Category for Clerical Staff
With the promotion of digital transformation (DX) and the advancement of internal management, the environment surrounding clerical work has significantly changed. Following discussions by the Women's Advancement Committee, chaired by an external director, and the Management Committee, we have reaffirmed the importance of clerical staff and their role as "Organizational Hub." Therefore, we will change the job category name to "Business Expert (BX)" starting in April 2025. We will further strengthen recruitment of new graduates and experienced professionals regardless of gender and promote proactive career development focused on specialization while expanding support for “continuous learning” to enhance specialized knowledge and skills.

(2) New Dormitory for Female Employees
Starting in March 2025, we will integrate the currently dispersed women's dormitories in the Tokyo metropolitan area and establish a new dormitory for female employees. The dormitory will feature various shared facilities, such as communication spaces, to enhance cross-departmental communication. These facilities will be used to foster internal networks and provide venues for training and seminars, serving as a platform for talent development. (*4)

Our efforts have been recognized with the "Excellence Award" in the Business Category of the Tokyo Metropolitan Government Women Empowerment Promotion Awards for fiscal 2024. This award acknowledges companies that actively promote women's empowerment. Our initiatives, such as the Morning-Focused Working System and the workplace after-school program during school summer and spring breaks, in collaboration with the local community, were highly evaluated, leading to this honor.

As a leading company in health management, we have been proactively promoting various initiatives based on our corporate philosophy of "Sampo Yoshi" (good for the seller, good for the buyer, and good for society).
Our next key initiative in health management focuses on "sleep," considering its compatibility with Morning-Focused Working System and its impact on improving labor productivity through better sleep quality and quantity. Last year (*5) , 736 employees participated in our sleep improvement program, and based on a survey, 58.6% (431 of 736) were found to have sleep issues or tendencies toward sleep apnea syndrome (SAS), indicating a high level of sleep challenges.
This year, we are utilizing stress checks to identify sleep issues for all employees. We have integrated medical SAS examinations into the sleep improvement program and will offer company-sponsored tests for employees with a high tendency toward SAS, enabling them to receive treatment at partnered medical institutions. Additionally, we aim to enhance employees' sleep literacy through morning seminars (internal seminars held from 7:30 to 9:00 AM for all employees, including employees from group companies).

Through these initiatives, we aim to enhance employee motivation and productivity by creating "a challenging but rewarding Company" thereby contributing to the enhancement of corporate value.