ITOCHU (8001) Investor presentation summary

Growth track record and financial performance

• Achieved consolidated net profit CAGR of 12% from FY2010 to FY2025, reaching ¥900.3 billion in FY2025.

• Non-resource businesses drove high growth, with a 17% CAGR and now contributing 85% of net profit.

• Core operating cash flows grew from ¥282 billion in FY2010 to ¥940 billion in FY2025.

• Maintained high ROE, averaging 16% from FY2010 to FY2025, consistently outperforming peers.

• Asset allocation shifted to 90% non-resource assets by FY2025, with continuous portfolio rebalancing.

Management policy and shareholder returns

• Launched "The Brand-new Deal" management policy, focusing on downstream expansion and sustainable value.

• Committed to a progressive dividend policy, with 12 consecutive years of dividend increases and a record-high payout ratio of 64% in FY2026.

• Share buybacks reached ¥300 billion or more, supporting shareholder value.

• Cash allocation balances growth investments and shareholder returns, maintaining a solid financial foundation and high credit ratings.

• Targeting ROE of 15% through flexible shareholder returns aligned with earnings growth.

Growth strategy and investment approach

• Growth enabled by strong M&A capability, centralized asset allocation, and a deep internal talent pool.

• Investment decisions are centralized, with HQ approval required for projects over ¥5 billion and tailored hurdle rates by industry.

• Continuous portfolio enhancement through annual ROA-based reviews and strict exit criteria.

• Asset allocation policy maintains a 9:1 non-resource to resource ratio, focusing on long-term, downstream, and market-oriented investments.

• Sustains high ROE by improving ROA in each segment and centralized leverage control.