2023-2030

Medium-Term Business Plan

Contents

FY2021-FY2022

23Medium-Term Business Plan, ENEX2030
FY2023-FY2030

ENEX2030 ‘23-‘24

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1

Review of Previous Medium-TermBusiness Plan, SHIFT! 2022

FY2023-FY2024
1

FY2021-FY2022

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Review of Medium-Term Business Plan,
SHIFT! 20222SHIFT! 2022 Performance Report

Basic PolicyResults• Expansion of the trading area by acquiring LP gas business operators• Enhancement of customer base by securing electric power customers

Deepening the environment & energy
businesses• Introduction of renewable diesel for a broader range of applications, expansion of the AdBlue value chain• Start of collaboration with Smart Solar Corporation, construction, and operation of LNG bunkering vessels

Cultivating next-generation humanresources• Enhancing collaboration across business divisions, etc., through cross-functional approaches• Developing overseas business personnel through overseas on-the-job training

Although environment and energy business efforts are ongoing, we have largely achieved the contents
set forth in the basic policy.

Qualitative Evaluation

Quantitative Plan Results

2021
Plan

2022

Results

Evaluation

PlanResults

Evaluation

Net profit¥12.5 billion¥13.2 billion○¥13.0 billion¥13.8 billion○

ROE

9.0% or more

9.4%

○

9.0% or more

9.3%

○

¥30.0 billion or more

¥33.8 billion○¥30.0 billion or more

¥37.3 billion○

40% or more

41.1％

○

40% or more

40.8％

○

Substantive operating cash flows
Consolidated dividend payout
ratio

Investment Plan Results
New and strategic businessinvestment
CAPEX (capital and maintenanceinvestment)

ReviewPlan (total investment overtwo years)

Results for 2021

Results for 2022

Results (total investment
over two years)

Evaluation¥40.0 billon¥12.7 billion¥9.4 billion¥22.1 billion

×¥20.0 billion¥9.5 billion¥7.3 billion¥16.8 billion○Although progress has not been achieved with new investments, the plan has been achieved in terms of profitability and efficiency bystrengthening onsite capabilities. Accelerating investment will be an issue for the future.

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Maintaining and expanding the customerbase

3FY2023-FY2030

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Medium-Term Business Plan,ENEX2030

4

Medium-Term Business Plan

Striving for further growth and transformation
through the provision of a range of energy andservices for home life and industry

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To Create Driving Force Of Life

5

Overview of the Medium-Term Business Plan and Desired
Direction for ITOCHU ENEX

ENEX2030 “To Create Driving Force Of Life”
ENEX2030‘23~‘24

ENEX2030‘25~‘26

ENEX2030‘27~‘28

ENEX2030‘29~‘30Develop on-site capabilities.
Developing a framework for
promoting investment

Implementing an investment
strategy

Accelerating investment

Business portfolio evolution

Two years toward therealization of the 2030
VisionCarefully securing
sources of revenue forthe immediate future

VisionProviding a range of services for home life and industry

Net profit ¥20.0 billion or more

Making new and strategic
investment of ¥210.0 billion

Accelerating investment

Develop on-site capabilities.
• Enhancing the customer base and improving earnings capabilities in existing business• Improving Group communication, building comprehensive strength, strengthening on-site capabilities

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ENEX2030“To Create Driving Force Of Life”

6

ENEX2030 Quantitative PlanENEX2030 Management Targets
Financial Indicators
Net profit

billionor moreROE

9.0%
or more45.0¥

billionGHG emissions

50%
reductionor moreRatio of female hires

30%
or above(comparison with FY2018,Scopes 1 and 2)

New and strategic
business investment

210.0

¥

billion

Percentage offemale managers

10%

Ratio of childcare leave
taken by male employees

80%or more

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20.0

¥

Substantive operating
cash flows

Non-financial Indicators

7

FY2023-FY2024

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ENEX2030 ‘23-‘24

8

Environmental Awareness and Market Conditions(2023-2024)

Concerns about global economic slowdown

2Concerns about rising interest rates and uncertainty in the stock market both inJapan and overseas

3Rising costs due to progressive global inflation4

Accelerating the transformation to a carbon-neutral society

5
6

Uncertainty over energy supply and demand, and price trends in the international
marketChanges in market conditions and industrial structure that lead to business
opportunities
Based on our judgement that the business environment surrounding our company isuncertain, we are focusing on solidifying our immediate footing.
At the same time, we regard change as an opportunity, and are engaged in
active project discovery and development.

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199

ENEX2030 ‘23-‘24

 Positioning

Developing a framework for achieving growth strategies
by strengthening on-site capabilities and revenue base,in “preparation for realization of the 2030 Vision”

12

3Develop on-site
capabilities.

Developing aframework formakinginvestments

Strengthening
the organizationand humanresources

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 Major Initiatives

10

ENEX2030 ‘23-‘24

1Develop on-site capabilities.

employees and improving overall capabilities
 Promoting delegation of authority to speed up onsite decision

making
 Introduction of personnel policies to evaluate onsite efforts andperformance

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 Evolving the profit model by combining the strengths of all

11

ENEX2030 ‘23-‘242

Developing a framework for making investments

structuring, execution and review) Establishment of an Investment Strategy Department as aprofessional organizational unit for making investmentsCopyri g ht © 2 02 3 ITOCHU ENEX CO.,L TD. All righ ts reserved .

 Enhancing the ability to make investments (investment analysis,

12

ENEX2030 ‘23-‘24

3 Strengthening the organization and human resources Implementation of personnel, evaluation, and award systems toimprove employee motivation
 Improving the efficiency of consolidated group management

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 Development of human resources who can realize growth strategies

13

ENEX2030 ‘23-’24 Quantitative Plan

Management TargetsFinancial Indicators
Substantive operating CF

13.5¥
billioneach fiscalperiod¥

Billion(FY2023・2024)

Total amount of investments¥

60.0Billion(of which CAPEX,¥16.0 billion）

Dividend policy

35.0

ROE

8~9%
(FY2023・2024)

Progressive dividends
Strong awareness ofmaintaining consolidated
dividend payout ratio of
40% or more

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Net profit

Shareholder Returns

14

Shareholder Returns

Dividends
配当180

Progressive dividends
with a strong
awareness ofmaintaining
consolidated dividend
payout ratio of 40% ormore (two years)

Guideline consolidated
dividend payout ratio of40% or more

(100 million yen)
Profit
当期利益160(yen/share)
80
70

131.9

140

104.1

110.3

115.6

135.0

135.0
60

121.7

+α50(Lower limit)

100
80

64.7

71.2
55.0

60
40
20

40

74.7

16

20

22

24

32

40

42

44

44

48

50

52

52(Forecast)

20
100
Consolidated
dividend
payout ratio

30(Forecast)

0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

32.4％

31.7％

45.2％

36.3％

34.8％

41.0％

41.0％

41.2％

46.4％

41.1％

40.8％

43.5％

2024

We have continued to maintain or increase dividends over the past 10 years※In FY2020, a commemorative dividend of 6 yen will be paid separately (the consolidated dividend payout ratio includes the commemorative dividend).

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120

120.6

138.3

15

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Division Policies

16

Home-Life Division

Division Policies

 Net profit plan and results

Medium-Term Business Plan(100 million yen)Priority Areas Going Forward
50403024272728

 New businesses and services- Creation of new businesses (living environment, disastercountermeasures, etc.)- Implementing measures through collaboration andsynergies with other divisions

20 IT and digitalization

100- Mergers and acquisitions, securing sales andstrengthening revenue base
- Improving customer satisfaction by utilizing databases- Further improvement of safety and quality

FY2022
Plan Results

FY2023
PlanFY2024
Plan- Improving operational efficiency through the use of digitaltransformation (DX)- Digitalization of safety / security operations- Web marketing, etc.

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 LP gas business17

Car-Life DivisionDivision Policies

 Net profit plan and results

Medium-Term Business Plan

(100 million yen)

Priority Areas Going Forward

45

47

 Petroleum wholesale business40- Expansion of the customer base
- Expansion of scale of car life / car-related
goods sales business30

 Petroleum sales business20- Expansion of fleet refueling network- Development of specialized services for eacharea

10 Mobility business0- Expansion of the mobility business- Reconstruction of the car dealership network

42FY2022
Plan Results

43FY2023
Plan

FY2024
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50

18

Industrial Business
Division

Division Policies

 Net profit plan and results

Medium-Term Business Plan

(100 million yen)

Priority Areas Going Forward

59 Further strengthening existing businesses

40

Seek to increase profits by strengthening our asphalt
sales business, terminal operation business,environmental product sales business, corporate
refueling card business, and marine fuel sales business3036303120

 Development of new business

10- Expanding into fields peripheral to existing businesses- Products that contribute to CO2 emission reductions- Developing services and human resources capable ofpromoting new businesses

0FY2022
Plan Results

FY2023Plan

FY2024Plan

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50

19Power & Utility
Division

Division Policies

 Net profit plan and results

Medium-Term Business Plan

(100 million yen)

Priority Areas Going Forward
50- Utilize electric power as a product to bundle with customer basefor oil, gas, and mobility- Further expansion of the Group foundation through promotion ofDX

37372730- Initiatives for more sustainable power generation projects(photovoltaic power, storage batteries, etc.)- Balance reduction of electricity procurement and supply costs andimprovement of environmental value while strengthening supply
and demand adjustment capabilities

2010 Realizing decarbonization and offering economic
advantages simultaneously

10 Provision of new added-value services

0FY2022
Plan Results

FY2023Plan

FY2024
Plan- Create a system that makes power saving and power cost
reduction fun and convenient- Creation of new services by combination with TERASEL products

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40

 Expand customer base by utilizing electricity andDX

20

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Appendix21

Trends in Profit and Changes in the Business Plan

Aiming for profits of 20.0 billion yen or more after taxes in FY2030‘23-‘24 will be a period to develop a framework for strengthening our revenue base andrealizing our growth strategy for further leaps ahead in the future

MediumTermBusinessPlanCore&Synergy 2013
To the next stage via theimplementation of reforms

Moving 2014
“Moving!”Moving 2016

Moving 2018

Sowing seeds fortomorrow

Connecting tothe future

Moving 2020
HorizonSHIFT! 2022

ENEX2030

200 0.12

ROE

10.0%
7.8%

9.3%
9.8% 9.7% 9.6%

7.5%

9.2%

Quantitativeresults

104

5.7%

39116

121

138

135

0.08

135

122

0.06
0.04

75

71
56

110

0.1

Enhancing therevenue base

9.4%
132

ENEX2030‘23-’24550.0239

2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 2025/3

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Net profit022

Cash Allocation
FY2023-FY2030

Make a cumulative total of 210.0 billion yen in new andstrategic investments by FY2030.

Cumulative substantive
operating CF

280.0 billion or more¥OUT
New and strategic
business investment

210.0 billion¥CAPEX (capital and maintenance investment)¥70.0 billion

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IN23

Review of SHIFT! 2022
Qualitative Plan [Customer Base]

Dramatically increased the number of customers by acquiring
customers using digital methods. The number of households
using the Group's electric power services increased by 81,000
during the business plan period to 334,000.

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Expanded business base through acquisition of LP gas
operators.
The number of households using the Group's LPG increased
by 13,000 during the business plan period to 565,000.

Enhancement of customer base bysecuring electric power customers

APPENDIX

Expansion of the trading area byacquiring LP gas business operators

24

Review of SHIFT! 2022
Qualitative Plan [Environment & Energy]

Renewable diesel wasintroduced for use in tankers,
buses, special loadingbusinesses (large trucks fortrunk transportation between
bases), tugboats, etc. for the
first time in Japan.

To reduce CO2 emissions andenergy costs for customers,
we introduced TERASEL
Solar, a self-consumption solar
power generation service, bothin Japan and overseas.

2024 Construction andoperation of LNG
bunkering vessels in
the Kyushu-Setouchi
regionWe build and operate LNG
bunkering vessels that supply
ships with LNG fuel, which has
a low environmental impact.
This is a joint venture withKyushu Electric Power Co.,
Inc., Nippon Yusen Kabushiki
Kaisha, and Saibu Gas Co.,Ltd.

Expansion of theAdBlue value chain

We have expanded our AdBlue
manufacturing plant anddistribution bases. In addition
to increasing the supply
volume, we are ensuring
stable supply through ournetwork of 26 distribution
centers nationwide.

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Rollout of selfconsumption solar
power generation
service TERASEL Solar

APPENDIX

Introduction ofrenewable diesel for abroader range ofapplications

25

Review of SHIFT! 2022
Qualitative Plan [Human Resources]

A second interim reporting session for overseas OJT trainees
was held online, and reports were given on past efforts andfuture resolutions. Trainees will advance to the third phase oftraining in the next fiscal year.

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A Group-wide cross-functional team was established in
FY2022. More than 300 employees have participated in Groupwide cross-functional training, which aims to create a sense ofsolidarity and innovation.

Overseas on-the-job training

APPENDIX

Cross-functional training

26