Medium-Term
Management Plan
FY2025－FY2027

integration 1.0
April 16, 2024
© KANEMATSU CORPORATION. All Rights Reserved.

Kanematsu’s Values
Founding Purpose“Let us sow and nurture the seeds ofglobal prosperity”- Fusajiro Kanematsu (1889)

Since our founding, Kanematsu has prioritized the pursuit ofeconomic growth along with human prosperity through the creationof social values that emphasize fairness and public interest as
fundamental values.
We believe that striking a balance between hard work and passion in
our business endeavors leads to profitability. The Kanematsu Group
conducts business as a unified entity while adhering toorganizational rules with sincerity, fostering a spirit of dedication to
the company and respect for interpersonal relationships.
With our 100% non-resources business portfolio built up over theyears as a foundation, our mission is to pursue sustainable social,environmental, and economic values concurrently.
As a trading company building a sustainable society for both thepresent and the future, we strive to be a preferred choice for ourcustomers and business partners by swiftly adapting to changes andinnovating new business ventures.
Guided by these corporate principles, we will continue to actively
pursue the creation of business, aiming for sustainable growth andreturns, while fulfilling our responsibility to society and contributing toa better future.

© KANEMATSU CORPORATION. All Rights Reserved.

1

Table of Contents
1. Previous Medium-Term Vision, “future 135”

• Key Initiative 3: Strengthening Organizational Capabilities

22-23• Key Initiative 4: Strengthening Human Capital• Achievement of Targets

4• Key Initiatives

5- Alignment of Strategies

24• Acquiring KEL and Kanematsu Sustech

6- The Committee

25• Acceleration of Innovation Investment

7• Key Initiative 5: Enhancement of Management Functions

26

4. Maximizing Shareholder Value

2. Kanematsu’s Envisioned Goal
• Business Environment and Kanematsu’s Mission

9• Initiatives Towards Realizing the Envisioned Goal

• Kanematsu After the Medium-Term Management Plan

10

• Reduce Cost of Capital and Improve Expected Earnings Growth29
Rate

3. Basic Policies of the integration 1.0• Communication with Shareholders and Investors• Overview of the Six Basic Policies

12• Structure of the integration 1.0

13• Key Initiative 1: Promotion of Groupwide Management

14• Key Initiative 2: Expansion of Value Proposition- Three Key Areas

15- DX/ICT Solutions

16

- GX

17

- Innovation© KANEMATSU CORPORATION. All Rights Reserved.

28

30

5. Targets• Financial Targets

32• Strategic Targets

33• Business Portfolio and ROIC

34

• Capital Allocation Policy

35• Shareholder Returns Policy

36

18-21

2

1. Previous Medium-Term Vision, “future 135”

© KANEMATSU CORPORATION. All Rights Reserved.

3

Achievement of Targets
 Sustained growth in fundamental businesses, coupled with the expansion of scale and theenhancement of added values, remains our primary focus.
 We expect to achieve all revised quantitative targets.
1

Net profit1)

2ROE

3 Total return ratio

Target2)

Forecast

TargetForecast

TargetForecast

20.0 Bn

23.5 Bn

10% - 12%17.2%

30% - 35%

32.0%

23.5

(Unit: JPY Bn)

Target: 20.0

16.6

14.4

13.3

16.0

17.2%

18.6
13.8%

12.9%
10.5%

11.2%

Low end

9.7%

FY2019FY2020

FY2021

FY2022

FY2023

FY2024(FCST)FY2019FY2020High end

FY2021

FY2022

FY2023

FY2024(FCST)

Dividend per share

Dividend payout ratio(Unit: JPY)

60
30.3%

F2019

60

60

34.8%

37.6%

F2020

F2021

65

75

90

34.0%

33.7%

32.0%

F2022

F2023

FY2024(FCST)

1）Net profit = Profit attributable to owners of the parent
2）Target after revision of the medium-term management plan in May 2021

© KANEMATSU CORPORATION. All Rights Reserved.

4

Key Initiatives
 Implemented initiatives aimed not only at meeting quantitative targets but also at laying afoundation for the medium-term management plan, “integration 1.0.”

1) Acquiring KEL and Kanematsu Sustech
Developing new business models and transforming existing businesses through digital technology

Credit to Sierra Space

2) Acceleration of innovation investment
Implemented innovation investment system to incentivize the development of a future-oriented portfolio

3) Human capital investment to achieve sustained growth
Improved employee engagement through relocationof the headquarters

Kanematsu University:
A program for human capital development

4) Initiatives to enhance corporate value
Introduced segment-level ROIC© KANEMATSU CORPORATION. All Rights Reserved.

Performance-linked stock compensation for directors

5Acquiring KEL and Kanematsu Sustech KEL leverages its expertise in the ICT solutions business, while Kanematsu Sustech employs
environmentally-friendly technologies for decarbonization.
 The Group structure has been established to propel DX and GX to the next stage.
Abundant industry knowledge andstrong competitiveness in the ICT
solutions business

Implement DX initiatives
throughout the supply chain toenhance value

DX

Build a stable and sustainablesupply chain and realize adecarbonized society

Prioritize sustainability and foster
an environmentally-friendly society
through business activities

GX• Allocate medium to long-term management resources to the growing
IT sector, focusing on meeting the demand for security measures,operational efficiency, and potential demand for supply chain DX.

Optimalallocation ofmanagement
resources• Invest in R&D to expand business areas and develop new technologies
and construction methods.
• Implement medium to long-term investment and business reforms tobolster the non-residential sector.

• Strengthen and expand application domains that complement ourrobust infrastructure construction business and securing IT humanresources through M&A.

Utilization of
M&A• Strengthen and expand the customer base and R&D capabilities
through M&A.

• Promote business collaboration through personnel exchange andinformation sharing within the Group.
• Evolve into a trading company specializing in developing DX businessmodels.

Corporate
initiatives• Promote Groupwide GX and strengthen sustainability initiatives.

Enhanced corporate value for the Kanematsu Groupthrough Groupwide management and the promotion of DX/GX initiatives
1) DX (Digital Transformation): Harnessing data and digital technology to innovate new business models and revolutionize existing business.
2) GX (Green Transformation): Transforming the entire socioeconomic system to achieve carbon neutrality by reducing greenhouse gas emissions, including CO2, and actively contributing to CO2 reduction to reach net zero total emissions.

© KANEMATSU CORPORATION. All Rights Reserved.

6

Acceleration of Innovation Investment
 Implemented an innovation investment system to foster the next-generation businesses.
 Invested in various startups and business models with long-term growth potential.
Space
Credit to Sierra Space

Mobility

Materials© KANEMATSU CORPORATION. All Rights Reserved.

 A US-based company specializing in the design, development, and manufacture of aerospaceequipment, with involvement in space exploration and commercial space transportation.
 Focusing on development of Dream Chaser®, a next-generation spaceplane, and a commercial spacestation, offering pioneering technologies and services.
 A British company that develops and operates landing infrastructure for the Advanced Air Mobility, as
well as uses drones for a variety of business requirements.
 Engaging in Dubai’s vertiport project, which involves establishing and operating vertiports.
 Operating drone services for logistics and surveillance purposes in multiple countries.
 An Australian environmental technology startup that develops proprietary enzyme technology capableof selectively breaking down plastic into its original monomer components.
 Aiming to utilize the technology to reduce plastic waste and contribute to the transition towards a
circular economy.
 An emerging company specializing in the development and manufacture of Carbon Nanotubes (CNTs).
 CNTs are anticipated to be utilized in various industries such as aerospace, automotive, and electronics
for their remarkable physical and chemical properties.
 Expanding the application range of CNTs is expected to benefit industries pursuing a sustainable future.
 A Japanese biotechnology company engages in the development and production of Brewed Protein™
materials created through a microbial fermentation processes.
 The sustainable material Brewed Protein can be processed into diverse forms including textiles andfilms.

7

2. Kanematsu’s Envisioned Goal

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8

Business Environment and Kanematsu’s Mission
 Our management environmental issues include labor shortage, the need for expediting
management, and addressing sustainability.
 Our mission is enhancing the efficiency and sustainability of the supply chain.
Kanematsu’s mission
Issues to be resolved• Labor shortage
Through its long history
as a trading company,
Kanematsu has cultivated; An understanding of
the supply chain The Group’s intangible
assetsFor companies and society involved in the supply chain,

Kanematsu’s mission is to make supply
chains more efficient and sustainable.

Decline in the labor force due to the shrinking population,
logistics and supply chain delays caused by the 2024
problem1), and rising labor costs and per capita labor burden.

• Expediting management

Need for adaptability and strong information processing
capabilities in grasping rapid changes in customer needs andtechnological innovation as well as prompt decision-making tomaintain competitiveness and capture business opportunities.

• Addressing sustainability

Movements towards decarbonized society, resource
circulation within society and the economy, as well as
commitment to corporate social responsibility.

• Age of VUCA2), with rapid changes and uncertainty.
• Issues confronted by companies operating within the supply chain.

1）A general term for the issue stemming from Japan's work-style reforms, capping truck drivers' annual overtime at 960 hours.
2）An acronym stands for Volatility, Uncertainty, Complexity, Ambiguity. It refers to a state of uncertainty and unpredictability, where the business or organizational environment is increasing volatile, dynamic, and complex.

© KANEMATSU CORPORATION. All Rights Reserved.

9Kanematsu After the Medium-Term Management Plan Becoming a trading company as a solution provider offering new value to the supply chain.
Business design layer• The layer demonstrating theknowledge, skills, andbehavioral patterns of ourhuman capital in driving
business.
• The layer refers to intangible
assets of the Company.

Business process layer• The layer representing the
network and logistics
infrastructure cultivated over
130-year history as a trading
company, encompassing
20,000+ customers andsuppliers.

Solutions layer• The layer where solutions andvalues are offered beyond
traditional trading on the value
chain converge.
• The layer Includes DX andGX.

© KANEMATSU CORPORATION. All Rights Reserved.

The Company’s primary source of value: the human capital along withthe organizational ability to generate value.

Employee engagement, the mindset, behavioral patterns,
and knowledge essential for business creation.
Provision

The business design layer provides solutions for the business process layer.

Value enhancement
Production

Procurement

Logistics/
Storage

Mfg./
Processing

Sales

Consumption

Customers, suppliers, and partners.
Networks/platforms across domestic and international branches.
Solutions

Modeling and implementing the solutions/value propositions such as DX
and GX in the business process layer.

Improving supply chain efficiency and sustainability through IT,
optimizing business processes, establishing a resilient businessfoundation, and promoting decarbonization and the circular economy.

The optimal combination of systems and applications (solutions).
10

3. Basic Policies of the integration 1.0© KANEMATSU CORPORATION. All Rights Reserved.

11

Overview of the Six Basic Policies
A solution provider leading the transformation ofefficient and sustainable supply chains

Envisionedgoal

1

Promotion of Groupwide management

 Providing solutions to the Group's network of over 20,000
customers and suppliers.

2 Offering optimal solutions that are deeply rooted in supply chainsand enhancing value propositions.

Basic
Policies

Expansion of value proposition

3

Strengtheningorganizational capabilities

 Developing and expanding the ecosystem for collaborative creation.
 Achieving new value creation through organizational transformation.

4 Strengthening human capital  Nurturing human capital as the source of value creation.
Enhancement of Strengthening management functions to achieve sustainablegrowth.

6 Maximizing shareholder value

 Committing to enhancing shareholder value over the medium tolong-term.

5 management functions© KANEMATSU CORPORATION. All Rights Reserved.

12Structure of the integration 1.0
Basic Policy 6
Enhancement of shareholder value

A solution provider
leading the transformation of efficient and sustainable
DUMMY
DUMMY supply chains
Basic Policy 1
Promotion of Groupwide management

Basic Policy 2
Expansion of value proposition

Basic Policy 3
DUMMY
DUMMY
Strengthening organizational capabilities
Basic Policy 4Strengthening human capital
Basic Policy 5
Enhancement of management functions© KANEMATSU CORPORATION. All Rights Reserved.

13

Key Initiative 1: Promotion of Groupwide Management
 Promoting Groupwide management to provide new value and solutions.
 Establishing the Growth Strategy Office as a core organization to lead cross-divisional business.
The Group’s assets including
customers, suppliers, partners,
and human capital

ICT Solution
Shintoa Corporation

Electronics& Devices

Case: Arrangements forcross-divisional business

Motor
Vehicles &Aerospace
Kanematsu KGK© KANEMATSU CORPORATION. All Rights Reserved.

Case: ICT solutions forthe food sector

Foods,
Meat &
Grain

Kanematsu Agritech

GrowthStrategy
OfficeCase: GX solutions forthe automotive sector

Kanematsu Foods Corporation

Steel,
Materials &PlantsKanematsu Petroleum Corporation

14

Key Initiative 2: Expansion of Value Proposition – Three Key Areas DX, GX, and innovation remain our primary focus.
 Through the value propositions in these areas, Kanematsu addresses both the current and futureneeds of the economy and society.

1

2

3

DX

• Enhancement of ICT solutions.
• Maximization of group synergy.

GX• Decarbonization and creation ofa circular economy.

Innov.

• Exploration and implementationof advanced technology andbusiness models.

© KANEMATSU CORPORATION. All Rights Reserved.

Discovering needs,
delivering optimal solutions

Transformation andinnovation of the supply chain

15

Key Initiative 2: Expansion of Value Proposition – DX/ICT Solutions
 Optimizing the supply chain involves addressing customer needs related to DX and IT security.
 Collaborating as a group to develop and deliver solutions to address the needs.
Logistics/
Production Procurement Storage

Mfg./
Processing

Sales

Consumption

Needs

DX needs of customers• Optimizing the supply chain in response to labor shortages.
• Addressing IT security risks arising from DX.

 Capturing demand in the supply chain from the trading frontlines.
 Engaging with over 20,000 customers and suppliers at the executive level.
Sharing of potential customers and co-working

An alliance including KEL with its expertise in
IT infrastructure and security products andservices, aimed at enhancing the value
proposition of DX.

© KANEMATSU CORPORATION. All Rights Reserved.

Provide solutions

ICT solutions for the supply chain
One-stop service for security
implementation and operation
16

Key Initiative 2: Expansion of Value Proposition – GX
 Promoting decarbonization and resource circulation within the four focus areas.
Issue
Building sustainable supply chains
Decarbonatization through reduction of GHG emissions
Decarbonization

1) Renewable energy
Decarbonization

2) Agricultural and Food
Decarbonization

3) Materials
Resource circulation

4) “Venous industry”

Resource circulation through efficient utilization

Decarbonizing supply chains through initiatives including energy creation1), energy
storage2), and energy saving3).
Creating and supplying sustainable food, feed, and fertilizers with minimal
environmental impact in the food supply chain where Kanematsu is deeply engaged.
Supplying alternative essential materials to reduce the environmental impact of
supply chains and products across various industries.
Creating new chains to repurpose waste resources generated from one supply
chain for either the same or different applications.

1）Energy creation: Initiatives to deliberately create energy by oneself, such as solar power.
2）Energy storage: Initiatives to store energy for use when needed.
3）Energy saving: Initiatives to reduce energy waste and use efficiently.
© KANEMATSU CORPORATION. All Rights Reserved.

17

Key Initiative 2: Expansion of Value Proposition – Innovation
 Continue to explore and sow the seeds of business innovation.
 Enhancing value through group synergy to pursue future commercialization and profitability.
Seeds

Value enhancement

Scaling

Sowing the seeds based on innovativeness,business feasibility, and profitability.

Creating value as a group.
Nurturing seeds of innovation.

Scaling business across the Group.
Commercializing and monetizing.

Credit to Sierra Space

Innovation Investment System© KANEMATSU CORPORATION. All Rights Reserved.

18

Key Initiative 2: Expansion of Value Proposition – Innovation (Case 1)
 Developing an essential component for Dream Chaser® and the space station in collaboration
with a Japanese partner company and supplying it to Sierra Space.
Seeds
Space

• Established astrategic
partnership with
Sierra Space andmade aninvestment in
September 2023.

Mobility
Materials• Initiated actions incollaboration withJapanesepartners, to foster
the developmentof the domestic
space industry.

© KANEMATSU CORPORATION. All Rights Reserved.

Value enhancement

Scaling• In partnership with a Japanese company, Kanematsu is
co-developing an essential component for Sierra
Space’s commercial space station.
• Completed the preliminary design review.

• Enhancing support on our supply side and providing
solutions aligned with Sierra Space’s development progress.
• Promoting the utilization of microgravity environments.
• Expending our business further within the space industry.

Partnercompany
Credit to Sierra Space

Co-development

Supplying to Sierra
Space and providing
development support

Dream Chaser®
Final testing underway
for the launch in 2024

Various business andindustrial opportunities
arising from commercial
space station and its use

19Key Initiative 2: Expansion of Value Proposition – Innovation (Case 2)
 Advancing business development for the implementation of Advanced Air Mobility (AAM).
 Conducting a feasibility study for the development of vertiports on the waterfront in Kobe City.

Space

Seeds

Value enhancement• In 2020,
partnered with
Skyports.

• In March 2024, Kanematsu announced the findings of afeasibility study for the establishment of vertiports in
Hyogo Prefecture.
• Outlined AAM network concept centered around Kobe
City and conducted research on potential vertiport sites.

Mobility• Initiated actions
towards thecommercializationof vertiports inJapan.

AAM network expanding
from Kobe
Port design• In March 2022,
invested in
Skyports.

Materials© KANEMATSU CORPORATION. All Rights Reserved.

Scaling

Weather
conditions

Airspaceusage• Building and operating vertiports for AAM.

• Establishing a network of vertiports across Japan.
• Generating revenue centered around vertiports.

DemandInstallation
approval
process&

Identify issues and provide
solutions for commercialization©Skyports

20

Key Initiative 2: Expansion of Value Proposition – Innovation (Case 3)
 Invested in Carbon Fly, a manufacturer of Carbon Nanotubes (CNTs).
 Targeting mass production and business expansion, with a focus on conductive additives forbatteries and automotive parts.
Seeds
Space

• In April 2022,
invested in
Carbon Fly, astartup company
in thenanotechnology
field.

Mobility• Initiated businessdevelopment incollaboration withpartner companies
including F.C.C.
Co., Ltd.

Materials© KANEMATSU CORPORATION. All Rights Reserved.

Value enhancement

Scaling• Carbon Fly has developed an advanced mass
production equipment for CNTs.
• Kanematsu and F.C.C. are co-developing advanced
products utilizing CNTs, such as high-performance
conductive additives and ultra-lightweight vehicle parts,
with plans for mass production and supply by 2025.
• Forming alliances across the value chain with
Kanematsu at the center, to provide vertically integrated
support from upstream to downstream.

Co-development
Domestic andinternationalcustomers• Leveraging Kanematsu's extensive distribution channels
to expand sales into the European, American, and Asianmarkets.
• Harnessing group synergy to expand into multiple
industries.

Mobility

Aerospace

Eco・Energy

Life・
Science21Key Initiative 3: Strengthening Organizational Capabilities
 Strengthening organizational capabilities to foster and disseminate a mindset and behavioral
patterns conducive to new value creation.
 Consolidating knowledge developed within individual divisions and promoting cross-divisional
collaboration by breaking down barriers.
President

Under the leadership of the president, the Growth Strategy Office takes the lead in formalizing themindset and behavioral patterns essential for realizing the envisioned goal, disseminating themthroughout the Company via practical project implementation.

Growth Strategy Office

Project© KANEMATSU CORPORATION. All Rights Reserved.

Project

Project

Leading
organizational
expansion

Promoting a Groupwide mindset
and behavioral patterns to create
and expand businesses and value
propositions.

Project expansion

Increasing internaldissemination andnew projects

22Key Initiative 3: Strengthening Organizational Capabilities
 Forming and expanding an ecosystem for co-creation with partners.
 Enhancing organizational capabilities for co-creation beyond the constraints of the Group toprovide optimal solutions.

An ecosystem for business co-creation
with partners and affiliated companies
Nippon Cyber Security Fund 1

Waseda Innovation Fund

Kanematsu Ventures

GX Accelerator

Acquiring new customers, technologies, andbusiness opportunities© KANEMATSU CORPORATION. All Rights Reserved.

23

Key Initiative 4: Strengthening Human Capital – Alignment of Strategies
 Aligning management strategy with human capital strategy.
 Leveraging the collaboration between the Human Capital Committee and the Growth Strategy
Office to accumulate and expand organizational assets and capabilities.

The alignment of management strategy and human capital strategy
Human Capital Management Committee
Aligning management strategy and humancapital strategy.

Growth Strategy Office
Promotingcross-selling
acrossdivisions.

Defining the ideal Kanematsu individual tosupport the creation of new value.
Optimizing the human capital portfolio from theGroupwide perspective.

Exploring andimplementing
innovation.

Enhancingvalue ofinvested
companies.

Defining and practicing the mindset andbehavioral patterns.

Kanematsu Group
Enhancing organizational innovation throughhuman capital development© KANEMATSU CORPORATION. All Rights Reserved.

24

Key Initiative 4: Strengthening Human Capital – the Committee Establishing the Human Capital Committee to strengthen human capital, the cornerstone of
Kanematsu’s value creation.
Objective
Strengthening human capital, the cornerstoneof value creation, by aligning management
strategy with human capital strategy.

Committee Members
4 members
2 co-opted

About
Member• Established on April 1, 2024.
• Monthly committee meetings.
President• Implementing measures based on managementCEOstrategy and human capital strategy
Management strategy
Human capital strategy© KANEMATSU CORPORATION. All Rights Reserved.

Human CapitalManagement Committee

Chair

CHRO

Member

Co-opted members
HR Dept.

GM

Corp Plan
Dept.

GM

Member

CSO

CFO
25

Key Initiative 5: Enhancement of Management Functions
 Reorganizing the structure to centralize ICT solutions business across all divisions.
 Establishing a new division and appointing key individuals to ensure effective management andfoster growth.
New Divisional Structure

Optimal organizational structure for providing
solutions to customers across each department
Electronics & Devices
Division
KEL

Kanematsu
SustechFoods, Meat & Grain• Foods Div.

Newly establishedICT Solution Division• Meat Products Div.
• Grain Oilseeds& Feedstuff Div.

KEL

Steel, Materials &Plant Division
Kanematsu
SustechKanematsu
KGK© KANEMATSU CORPORATION. All Rights Reserved.

Motor Vehicles& Aerospace Division
Kanematsu
KGK

Key Individuals
Akira Watanabe
President of KEL
Appointed as the Executive Officer and COO of ICT
Solution Division.
Creating synergy with KEL and providing strong leadershipto advance the Group’s ICT solutions business and DX.

Yoichi Mori
Accenture Japan Ltd.

Appointed as an advisor.
Leveraging his expertise as a professional with acomprehensive view of IT strategy. With specialized
knowledge in data utilization and IT human capitaldevelopment, he will play a key role in guiding our initiatives.

26

4. Maximizing Shareholder Value© KANEMATSU CORPORATION. All Rights Reserved.

27

Initiatives Towards Realizing the Envisioned Goal
 The Board and management are committed to the pursuit of maximizing shareholder value.
Improve Capital Profitability and Efficiency• Increase profitability by prioritizing investment in ICT solutions business with high ROIC.

1• Maintain and elevate ROE between 16% and 18%, surpassing industry benchmarks.
• Maintain financial soundness with a targeted net D/E ratio of approximately 1.0, while pursuingefficiency through optimal leverage levels.

Minimize Capital Costs
2• A business portfolio of 100% non-resources with minimal volatility.
• Prioritize the five key materiality issues1) to achieve capital cost reduction and mitigate ESG discount.

Enhance Expected Earnings Growth Rate
3

• Increase revenue through organic growth and M&A in the ICT solutions business, along withexpansion into other segments.

• Generate revenue by offering new value proposition and solutions to the supply chain.
• Elevate the value of intangible assets through cultivation of human capital, leading to enhanced
organizational productivity and performance.

1) Five key materiality issues are; building a sustainable supply chain, decarbonization initiatives, mutual development with local communities, creating an environment that enables diverse work styles, and enhancement of governance and compliance. (revised in June 2021)© KANEMATSU CORPORATION. All Rights Reserved.

28

Reduce Cost of Capital and Improve Expected Earnings Growth Rate
 Enhancing market valuation through reducing cost of capital and improved expected earnings
growth rate.
Enhance market valuation / Increase in P/E ratio

Reduce cost of capital

Improve expected earnings growth rate

 A low-volatility business portfolio Growth of the ICT solutions business.

Profit attributable to owners of the parent

100% non-resources ■ ICT Solution

JPY
23.5 Bn■ Electronics & Devices;
Foods, Meat and Grain;
Steel, Materials & Plant;
Motor Vehicles & Aerospace

Fiscal year ended March 2024 (Forecast) Management emphasizing
the five materiality issues
Kanematsu’s five key materiality
issues revised in June 2021

100% non-resources

JPY
35.0 Bn

Fiscal year ended March 2027 (Plan)

1. Building a sustainable supply chain
2. Decarbonization initiatives
3. Mutual development with local communities
4. Creating an environment that enables diverse work styles
5. Enhancement of governance and compliance

Reducing cost of capital / Restring ESG discount
Enhancing management credibility© KANEMATSU CORPORATION. All Rights Reserved.

 Profit growth in other segments
through synergy with KEL.
 Solutions to the supply chain.
 Revenue growth throughexpansion of value proposition.

Cross-selling,
human capital development, etc.

DX GX

Innovation• Strengthening human capital.
• Increasing the value of intangible assets.
• Enhancing organizational productivity andperformance.

Fostering market expectations for growth beyond theconventional trading company business model
29

Communication with Shareholders and Investors
 Leading medium to long-term growth and enhancement of corporate value by management andthe Board.
Disclosing information toshareholders and investors

Dialogue withshareholders and investors

Disclose information including financial
data, corporate strategy, sustainability
initiatives and progress of the key
initiatives.

Establish constructive and continuous
communication.

Incorporating into
management strategy
Incorporate findings and improvestrategy from investors’ perspective,
ensuring alignment with their interests
and addressing concerns.

© KANEMATSU CORPORATION. All Rights Reserved.

Management
and the Board

Investor Relations
Section
Newly established separate fromthe former Public & Investor Section.
IR Section will drive initiatives withmanagement and the Board.

Comprehensive analysis
from investors’ perspective
Collect and analyze interests andconcerns, and report findings tomanagement, along with thoroughimprovement plans.

30

5. Targets© KANEMATSU CORPORATION. All Rights Reserved.

31

Financial Targets
Financial Targets (final fiscal year of the integration 1.0)
Aiming to achieve the following four goals by driving the key initiatives
while maintaining and growing a stable financial foundation.
1

2

Net profit1)
JPY

35.0 Bn

3

ROE
Approx.

16 - 18%8%

1.0

Net Profit Trend

1) Net profit = Profit attributable to owners of the parent

S-Project

4 Net D/E ratio
Approx.

ROIC
Over

VISION-130

integration 1.0

future 135

35.0(Unit: Bn JPY)

9.2

11/3

6.1
12/3

9.6

13/3

11.8

11.5

14/3

15/3

9.4

8.0

16/3

17/3

16.3

16.6

18/3

19/3

14.4

13.3

20/3

21/3

16.0

22/3

18.6

23/3

23.5

24/3

25/3

26/3

27/3

1) Net profit = Profit attributable to owners of the parent© KANEMATSU CORPORATION. All Rights Reserved.

32

Strategic Targets
 Setting strategic targets as indicators to monitor progress towards achieving the envisioned goal.
Basic Policy

Goals

Strategic Target

Promotion of Groupwide
management

Cross-divisional activities are
becoming more active, with the Growth
Strategy Office serving as the hub.

Number of sales initiatives driven by the
Growth Strategy Office

Expansion of Value
Proposition

More solutions are being provided toenhance supply chain efficiency,
decarbonization, and circularity.

Number of solutions leading to supply
chain transformation

3 4

Growing number of employees
embodying the mindset and behavioral
patterns expected of individuals at
Kanematsu.

Number of employees embodying themindset and behavioral patterns, or
engaging in cross-divisional projects

6

Increase in market valuation or P/E
ratio driven by the enhancement of
expected growth rate and the reduction
in cost of capital.

1

2

Strengthening
Organizational Capabilities
and Human Capital
Maximizing Shareholder
Value© KANEMATSU CORPORATION. All Rights Reserved.

Profitability/ROIC at the business unit level
Contribution to CO2 reduction across the
supply chain

33

Business Portfolio and ROIC Focusing investment on the ICT solutions business to achieve an optimal business portfolio thatdrives business growth and enhances shareholder value.
Targeted Business Portfolio Outlook

Growth Trajectory for Net Profit and ROICICT Solution
Net profit1) ■■ Electronics & Devices; Foods,

Meat and Grain; Steel, Materials &Plant; Motor Vehicles & Aerospace

FY2027 (Plan)100%
non-resource
23.5 Bn

35.0 Bn

25%

CAGR of Net Profit

FY2024 (Forecast)

15%

10%

5%

0%

-10%

1) Net profit = Profit attributable to owners of the parent© KANEMATSU CORPORATION. All Rights Reserved.

① Investment focus in ICT Solution forgrowth as a solution provider.

20%

-5%

 Increasing profit in all segments.
 Maintaining the proportion of ICT solution.

Size of bubbles
represent the net profit(Forecast for FY2024)30%

ICT Solution
0%

10%

20%

② Providing solutions to existing clients andbusiness partners to achieve growth
Electronics & Devices; Foods,
beyond the conventional business model
Meat and Grain; Steel, Materials &of a trading company.
Plant; Motor Vehicles & Aerospace

ROIC• CAGR represents the compound annual growth rate of segment profit from
FY2019 to the forecasted FY2024.
• ROIC is calculated as the ratio of net profit to invested capital, based on the
average of two periods: FY2022 and FY2023.

34

Capital Allocation Policy
 Executing further shareholder returns and growth investment based on operating cash flow
generated from both stable core businesses and growth businesses.
(Unit: JPY Bn)

3-year total (approximate)
Cash Inflow
Cash Outflow

OperatingCash Flow(Adjusted) 1)
110.0

Asset replacement
10.0

Shareholder
returns
27.02)
Growthinvestment
60.0

27.0 billion for shareholder returns

through progressive dividends.

40.0 billion for ICT solutions and DX.
20.0 billion for businesses withcompetitive advantages including GX.

Core business
funds
33.0

33.0 billion for sustained operations andgrowth of core businesses.

1）Operating Cash Flow (Adjusted) ＝ Operating Cash Flow ± Change in working capital – Repayment of lease liabilities
2）The amount of shareholder returns represents the actual cash outflow of projected dividends from the year-end dividend for FY2024 to the interim dividend for FY2027.

© KANEMATSU CORPORATION. All Rights Reserved.

35

Shareholder Returns Policy
 An annual dividend of a minimum of 90 yen, with progressive dividends.
 With a target total return ratio of 30-35%, the policy is to increase dividends in accordance with thegrowth of net profit1).

 Implementing
progressive dividends

Progressive dividends
90
60

60

60

65

75
Minimum of
90 yen

F2019

F2020

F2021

F2022

F2023

FY2024(FCST)

F2025

F2026

F2027

 Minimum annual dividend
90 yen Total return ratio
30-35%

1) Net profit = Profit attributable to owners of the parent© KANEMATSU CORPORATION. All Rights Reserved.

36

integration 1.0

Disclaimer:
The forward-looking statements, including results forecasts, provided in this document (and its appendix) are based on information obtained by Kanematsu Corporation (the Company) and certain reasonable assumptions made by the Company. The
Company does not guarantee their achievement, and actual results may differ from forecasts due to various factors. This information is subject to change without prior notice, and users are advised to utilize this document alongside information acquired
through other sources and exercise their own discretion. The Company bears no liability or responsibility for any loss or damage resulting from the use of this material Additionally, as the figures presented are rounded off to the nearest 1 billion yen, thetotal may not precisely match the sum of each item.

© KANEMATSU CORPORATION. All Rights Reserved.