ITOCHU (8001) Investor Update summary

Division Overview and Business Structure

• Division operates globally across power, infrastructure, aerospace, and marine sectors, engaging in trading, development, investment, and O&M activities.

• Business units include Green Innovation (decarbonization), Urban Environmental & Power Infrastructure, Aerospace, and Marine.

• Green Innovation focuses on decarbonization, including ammonia-fueled ships and value chains.

• Urban Environmental and Power Infrastructure manages global projects in power, water, and social infrastructure.

• Division employs 280 people and oversees 20 group companies.

Financial Performance and Growth

• Net profit has grown from JPY 19.9 billion in FYE2019 to a stable JPY 50 billion, with a forecast of JPY 50 billion in FYE2025.

• ROA has improved, reaching 8–9% in recent years.

• Growth driven by renewable asset sales, ship asset replacement, and both organic and inorganic initiatives.

• Strategic investments planned to further expand earnings base.

Power Business and US Market Strategy

• Owns 22 power assets (8.5 GW), including 1.4 GW renewables, mainly in North America and Asia.

• In North America, 5.4 GW across 15 projects as an IPP, with NAES providing O&M for over 50 GW.

• US power market shifting toward renewables, expected to reach 50% share by 2035, but gas-fired assets remain essential.

• Strategy includes value creation across development, construction, and operation, leveraging US tax incentives and expanding renewables.

• Active in waste-to-energy projects in Europe, Middle East, and Asia, with recent completions in Serbia and Dubai.