#1Financial Results Presentation for FY2022 (Fiscal Year Ending April 30, 2023) June 2023 ITO EN, LTD. ITO EN We Love Nature Copyright (C) All Rights Reserved. ITO EN, LTD.#2CONTENTS. PITO EN We Love Nature Soft Drink Market in Japan, Financial Results and Targets ...P.3 Business Strategy and Marketing Strategy Appendix Copyright (C) All Rights Reserved. ITO EN, LTD. ...P.10 ...P.22 2#3Copyright (C) All Rights Reserved. ITO EN, LTD. PITO EN We Love Nature Soft Drink Market in Japan, Financial Results and Targets 3#4Others (¥billion) 4,000 3,439.0 3,563.0 187.0 231.0 165.5 1980 1985 221.9 210.0 Vegetable 140.0 Pioneering of Pioneering of 146.8 138.0 178.0 178.0 3,000 Canned Canned 145.6 141.0 244.0 Oolong Tea Green Tea 292.3 157.0 152.0 207.0 Sports Drink 207.0 3,000 260.1 305.0 193.0 185.0 230.0 230.0 Fruit 312.2 224.0 221.0 2,000 321.0 447.4 934.0 267.0 292.0 Mineral Water 210.2 256.0 261.0 97.7 1,000 643.4 720.0 784.0 Carbonated 2,000 648.9 735.0 747.0 754.0 718.2 Soft Drink Market in Japan Soft Drink Market Trends (¥ billion) 4,000 Carbonated. Coffee has become popular Create a Unsweetened RTD Tea Market クーロン Tea ⚫ Unsweetened beverages has become popular Results 2022 year PITO EN We Love Nature Others Vegetable Sports Drink YoY +3.6% Mineral Water Carbonated + 10 % 7 % + 12 % +12% + 1 % Coffee + 0 % Tea Total + 3 % of which Green Tea + 2 % of which Other Teas + 4 % 0 2021 2022 952.4 720.3 942.0 833.0 922.3 805.0 805.0 809.0 Coffee Forecast 2023 year Est. YoY +3.8% 1,000 843.5 699.3 659.0 597.2 (796.4) (604.4) 579.3 519.2 (885.0) (873.0) (877.0) (890.0) (920.0) 510.0 458.0 459.0 464.0 485.0 (956.0) 499.0 (¥ billion) 4,000 (Tea total) Other Tea 3,563.0 3,700.0 Others + 3,000 330.0 375.0 415.0 418.0 426.0 435.0 457.0 Green Tea 172.0 0 1980 1985 217.1 85.2 1990 1995 2000 2010 2015 2020 2021 2022 2023 Est. 2,000 Total 2,707 3,100 3,540 Trends in Unsweetened Beverages Market 3.607 3,678 3,425 3,439 3,563 3,700 (¥billion) 1,000 53% 54% 60% 45% 39% 31% Vegetable Sports Drink Mineral Water Carbonated Coffee Tea Total + of which Green Tea + of which Other Teas - + + + + + 34 + + % 10 % 4 % 5200+ do do do % % 40% 25% 55% + 53 do do 4 % % % di do % 12% 20% 1% 2% 0 2022 2023 Est. 0% Copyright (C) All Rights Reserved. ITO EN, LTD. Unsweetened beverages continue to grow as a percentage of total sales. More than half of all domestic beverages are unsweetened. Source: ITO EN#5Domestic Environments and ITO EN Domestic Environment Topics 2022 May Increased human flow, favorable weather conditions, and a recovery trend Jun Jul Record-breaking hot days continue in various locations Corona re-expands, but nationwide heat wave Aug Revitalized by the heat wave and increased crowds Sep Strong performance due to recovery of human flow and temporary demand for price revisions Oct Nov Dec 2023 Jan In addition to the temporary demand backlash from price revisions, unseasonable weather also had an impact, Stagnant consumer sentiment In addition to signs of an 8th wave, weather has been sluggish since the middle of the year Despite the spread of the infection, human flow is increasing and demand is recovering. Tourists are returning while saving money is on the rise. Feb Despite the impact of price hikes, favorable weather and increased human flow led to a narrowing of the negative impact. Mar Rising Temperatures, Accelerating Movement Toward Post-COVID Apr Decrease in food and beverage consumption due to rising prices Monthly Sales Volume Trends ITO EN (non-consolidated) FY2022 李國 一番摘みの お茶 YOY Sales composition %Change Tea Leaves Net Sales 体脂肪を減らす + 5% Tea Leaves 3% Drinks Drinks + 6% Others + 8 % *Previous standard/ Sales Volume Drinks Tea Total PITO EN We Love Nature am THE BARISTA'S B ROAST Citkcha STANDARD Tea Leaves 10% Drinks 89% Others 1% (Unit: ten thousand case) Drinks Sales Volume by Category FY 2021 Results Sales Composition YOY %Change FY 2022 Results Sales Composition YOY %Change 21,525 100 % 0% 21,829 100 % +1% 14,928 69% 0% 15,286 70% +2% Japanese Tea 13,589 63 % +2% 13,868 64 % +2% Chinese Tea 868 4 % - 26% 835 4 % - 4% 920 ITO EN (%) Other Tea 470 2% - 3% 582 3% 24% FY2022 FY2023 Vegetable 2,937 14 % - 10% 2,592 12 % - - 12% 20 Coffee 1,664 8% + 11 % 1,752 8% +5% 12 10 8 Mineral Water 664 3 % +1% 668 3% +1% Carbonated 401 2% +6% 534 2% +33% 0 -3 -10 -2 -1 -4 -4 -10 -12 -20 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Source: ITO EN Fruit 439 2% + 10% 452 2% +3% 8 Others 489 2% +7% 541 2% +11 % *Percentages are rounded to the first decimal place, so the total may not necessarily equal 100. Ratio of Unsweetened Beverages: 75 % or more Copyright (C) All Rights Reserved. ITO EN, LTD. 5#6Non-Consolidated Consolidated Financial Results for FY2022 Full year (May 2022 to April 2023) PITO EN We Love Nature (Unit: million yen, thousand dollars) FY2021 Results Sales Composition FY2022 Results Upper: Net Sales Sales Composition YoY % Change Bottom: Operating Income FY2021 Results FY2022 Results YoY % Change Net Sales 400,769 100.0% 431,674 100.0% 7.7% Domestic 90,390 97,548 7.9% Subsidiaries Gross Profit 159,581 39.8% 165,585 38.4% 3.8% 2,249 3,784 68.2% Advertising 9,980 2.5% 10,048 2.3% 0.7% Tully's Coffee Japan Co., Ltd. 30,060 35,495 18.1% 860 2,429 182.2% Freight 13,751 3.4% 14,386 3.3% 4.6% Depreciation and Chichiyasu 11,844 11,947 0.9% 9,153 2.3% 7,921 1.8% -13.5% Amortization Selling, General and 140,787 35.1% 145,996 33.8% 3.7% Administrative Expenses Operating Income Ordinary Income 18,794 4.7% 19,971 5.0% 19,588 4.5% 4.2% 20,341 4.7% 1.9% Extraordinary Losses and Income 372 -657 Net Income 12,928 3.2% 12,888 3.0% -0.3% Performances of Subsidiaries Company 734 670 -8.7% Overseas 41,927 51,252 22.2% Subsidiaries 1,472 - 433 36,771 45,361 23.4% 555 US Business 323,156 $ - 1,483 333,292 3.1% 4,881 $ -10,897 FY2021 Results Sales Composition FY2022 Results Sales Composition YoY % Change Other Overseas Subsidiaries 5,155 5,891 14.3% 917 1,049 14.4% Net Sales 300,319 100.0% 315,025 100.0% 4.9% Gross Profit Operating Income Ordinary Income 114,135 38.0% 15,685 5.2% 17,409 5.8% 18,864 116,986 37.1% 2.5% Elimination of Internal Transactions - 31,867 - 32,150 - 613 -548 16,785 5.3% 7.0% Exchange rate (US$) (average during a year) 113.79 136.1 6.0% 8.4% Copyright (C) All Rights Reserved. ITO EN, LTD.#7Factors of changes in consolidated operating income PITO EN We Love Nature Major factors of changes in consolidated operating income for the FY 2022 (Fiscal Year Ending April 30, 2023) Profitability was secured by responding to the impact of high raw material and material prices through price revisions and cost controls. Non-consolidated results of ITO EN Unit: billion 18.7 +10.6 -7.8 +1.5 +0.0 -0.0 -1.9 -1.5 -0.2 19.5 FY 2022 Sales Factors Raw materials and other factors Labor costs Other administrative expenses Tully's Coffee Japan Other domestic Overseas Group groups Consolidation and elimination FY 2023 Supplement to factors of changes in non-consolidated results of ITO EN • Impact of increase in sales +5.5 • Changes in container mix, product mix, etc. +5.1 Impact of soaring raw material prices and materials costs • Increase in labor costs due to higher wages -7.8 -1.5 Copyright (C) All Rights Reserved. ITO EN, LTD. 7#8Consolidated Forecasts for FY 2023 ITO EN We Love Nature (Unit: million yen, thousand dollars) FY2022 Results FY2023 Upper: Net Sales FY2021 FY2022 Sales Composition Forecast Sales Composition YoY % Change Bottom: Operating Income Results Forecast YoY % Change Net Sales 431,674 100.0% 440,000 100.0% 1.9% Domestic 97,548 100,625 3.2% Subsidiaries Gross Profit 165,585 38.4% 167,800 38.1% 1.3% 3,784 3,256 -14.0% Advertising 10,048 2.3% 9,654 2.2% -3.9% Tully's Coffee Japan Co., Ltd. 35,495 37,600 5.9% 2,429 2,500 2.9% Freight 14,386 3.3% 14,328 3.3% -0.4% Depreciation and Chichiyasu 11,947 12,417 3.9% 7,921 1.8% 6,354 1.4% -19.8% Amortization Selling, General and Administrative Expenses Operating Income 145,996 33.8% Ordinary Income 19,588 4.5% 20,341 146,800 33.4% 0.6% 21,000 4.8% 7.2% 4.7% 21,000 4.8% 3.2% Extraordinary Losses and Income -657 -800 Performances of Subsidiaries Company 670 680 1.5% Overseas 51,252 50,301 -1.9% Subsidiaries - 433 1,619 45,361 43,709 -3.6% US Business - 1,483 530 $ 333,292 $ 336,230 0.9% Net Income 12,888 3.0% 13,500 3.1% 4.7% $ -10,897 $ 4,080 FY2022 Results Sales Composition FY2023 Forecast Sales Composition YoY % Change Other Overseas Subsidiaries 5,891 6,592 11.9% 1,049 1,089 3.8% Net Sales 315,025 100.0% Gross Profit Operating Income Ordinary Income 116,986 37.1% 16,785 5.3% 18,864 321,500 100.0% 116,000 36.1% 17,000 5.3% 1.3% 2.1% Elimination of Internal - 32,150 - 32,426 -0.8% Transactions -548 - 875 Exchange rate (US$) (average during a year) 136.10 130.00 6.0% 18,600 5.8% -1.4% Non-Consolidated Copyright (C) All Rights Reserved. ITO EN, LTD. 8#9Factors of Changes in Consolidated Operating Income Plan Major factors of changes in consolidated operating income for the FY 2023 (Fiscal Year Ended April 30, 2024) PITO EN We Love Nature Profitability was secured by responding to the impact of high raw material and material prices through price revisions and cost controls. Non-consolidated results of ITO EN Unit: billion 19.5 +15.0 -16.0 +0.0 +2.0 +1.6 -0.3 -0.5 -0.3 21.0 FY 2022 Sales Factors Raw materials and other factors Depreciation and Other administrative Tully's Coffee Japan Amortization expenses Other domestic groups Overseas Group Consolidation and elimination FY 2023 Est. . Supplement to factors of changes in non-consolidated results of ITO EN Impact of increase in sales +2.4 · Impact of soaring raw material prices and materials costs -16.0 . Changes in container mix, product mix, etc. +12.6 . Effect of changes in useful lives of vending machines, etc. +1.6 Copyright (C) All Rights Reserved. ITO EN, LTD. 9#10Copyright (C) All Rights Reserved. ITO EN, LTD. PITO EN We Love Nature Business Strategy and Marketing Strategy 10#11Green Tea Beverage Trends Green Tea Beverage Market Trends PITO EN We Love Nature Market share of Green Tea Beverages sales in 2022 (Market/billion) 600 Green Tea Beverage Market ITO EN --ITO EN Share PITO EN 500 447.0 457.0 440.0 445.0 415.0 405.0 415.0 418.0 426.0 435.0 13% 400 375.0 8% 309.4 35% 300 268.5 36% 34% O 30% 21% O O O 39% O O O O OO 200 161.9 O 34% 35% 35% 32% 33% 33% 33% 34% 35% 35% 113.3 28% 29% 23% 85.2 100 0 '95 '97 '99 '01 '03 '05 '07 '10 '13 '15 '17 '19 '20 '21 '22 '23Est. Source: ITO EN, Calendar year FY2022 Topics お~いお茶 Oi Ocha Record High Sales Volume 90 million cases ITO EN: May to Apr Copyright (C) All Rights Reserved. ITO EN, LTD. Source: ITO EN (Forecast for 2022) 体脂肪 を減らす O 伊藤園 Joe伊藤園 Oi Ocha Unsweetened Green Tea 600 Reduces Body Fat Oi Ocha Led Bold Green 600 FY2023 Green Tea Beverage Strategy New proposal for the youth Challenges as a Leading Company Opportunities in the Green Tea Leaf Market Initiatives for a Global Tea Company 11#12New Proposal for Youth Green tea beverage "Exclusively for Youth" created with youth ITO EN We Love Nature Joint research with Design Management Lab. of Chiba University Infusing the Hearts of Youth with Green Tea まろ 伊藤園 お~いお茶〇 "Maroyaka" +5/1 Youth Projects Tea Bags On sale What kind of tea do the youth need for their daily rest scene? on the same day maroyaka ちょっと やすまろ SPE O® Launched in May 29 Launched a new green tea beverage to take the youth intently 100% Japanese First-Picked Tea A Tendency for Fresh Aroma and Mild Flavor New beverage categories of tea and fruit NEW Fruit tea ちょっと まるまる お茶 9 460 ka お~いお茶 "Oi Ocha New Tea leaves" 伊藤園 新茶 お茶 晴れのち曇り ご褒美 APPLE & PEACH フルーツティー 時々お茶 ITO EN 晴れのち曇り お茶 N Pre-launch promotion event at SHIBUYA CAST. Original TikTok Brand Effects Strengthening Contact Between Youth and Tea 12 Foi cha Launched in May 2 Experience event to taste new tea in Shibuya "Shibuya Sky Tea Garden Super Refresh Event" Copyright (C) All Rights Reserved. ITO EN, LTD. APPLEL PEACH 0 500 果汁10%未满 Launched in April 3#13Challenge as a Leading Company Responding to personal needs and contributing to customers' quality of life through tea Responding to Health Issues with the "Oi Ocha" brand 体脂肪 を減らす 伊息 Reduces Body E Oi Ocha お・・お茶 濃い茶 "Oi Ocha Bold Green Tea" The government-approved drink with function claims Sales Volume No.1 *INTAGE SRI+/ Food with Functional Claims Beverage Market 2022 (Total Sales Volume) Strengthen FOSHU and Food with Functional Claims 伊藤園 体脂肪を減らす 李仔雞園 体脂肪を減らす 李伊藤園 体脂肪を減らす 機能サポート。 ・お茶 一番摘みの お~いお茶 一番摘み お茶 春摘みの Food with Functional Claim PITO EN We Love Nature コレステロールを減らす つぎに FY2026 Target FOSHU Functional Ratio More than 30% of All products 体脂肪を減らす カテキン 李伊藤園 い 綠茶 お茶 茶 Thickened Green Tea for Nursing Care 4 伊藤園 とろり Won 2 awards Received the Jury's Award at the 8th Nursing Care Food and Smile Care Food Contest (supported by the Ministry of Agriculture, Forestry and Fisheries) in March 2023. 第8回 介護食品・ スマイルケア食 コンクール 綠茶 手軽に飲める とろみ付き Grand Prix at the 62nd Japan Food Selection (Japan Food Analysts Association)in May 2023. 100ml JAPAN FOOD SELECTION Food for Specified Health Uses (FOSHU) Supports Good Quality Sleep (Reduces Fatigue and Sleepiness Upon Waking) ►Launch of tablet-type Food with Functional Claims Products 3日分 良質な睡眠をサポート CONHOUSE のことをう ストレスをやわらげる 伊藤園 EKEL される 快眠 「テアリズム Tablet タブレット Launched May 29 (Functional Ingredients L-theanine) Take without water Take without water Good Quality Sleep Thea Rhythm Tablet Recommended Daily Intake: 2 capsules (200mg L-theanine) Launched November 28,2022 Copyright (C) All Rights Reserved. ITO EN, LTD. Providing the Value of Tea from Various Angles and Expanding its Possibilities 13#14Opportunities in the Green Tea Leaf Market Green Tea leaf Market Trends "Household-Use" of Japanese Tea Leaf Market and ITO EN's Market Share "Household-use" Japanese tea leaf ITO EN's Market Share 24% 25% 100 25% 28% 25% 26% 27% ITO EN We Love Nature After COVID is a Chance for Japanese Tea Leaf Growth Aiming for further growth of green tea convenience products ► High-priced products are growing in the market Percentage of sales of high-priced leafs (average unit price of 700 yen or more) High priced Japanese tea leaf with Individual Bottles. Eco- Easy Friendly 2019 31% 2022 35% お茶 プレミア 1個で50人 50袋入 Easy and tasty convenience products that have been tried and tested in home demand are also available in After COVID. Source: ITO EN, Calendar year ►Responding to Health Needs for Food with Function Claims 50 50 '17 '18 '19 '20 '21 '22 '23Est Source: ITO EN, Market: Calendar year ITO EN: May to Apr The value of the product is 体脂肪を減らす 伊藤園 ►Increased share of sales of Convenience Products in the ingredients contained in the tea leaves themselves. in the market 100% さらさら 緑茶 "Oi Ocha Sara Sara Bold Green Tea Powder" "Oi Ocha Premium Tea Bags First-grade Green Tea" 体脂肪を減らす 小伊華園 お茶 プレミアム 75% 50% 25% 15% 0% After COVID Simplicity products attract even more attention 37% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Convenience Tea Leaves Market Copyright (C) All Rights Reserved. ITO EN, LTD. "Household-use" Japanese Tea Leaf Market Source: ITO EN, Market: Calendar year ►Responding Environmental Issues 物由来のエコティーバッグ *伊藤園 因產茶素100% Eco-friendly materials New Tea Bag Packaging Plant Established Scheduled to Begin Operations in October 2023 in Kumagaya City, Saitama Prefecture *Responding to increased demand for tea bag products CO2 Emissions Reduction through improved transportation efficiency 20 Oi Ocha Expanding Consumption with Taste, Convenience, and Health 14#15Initiatives for a Global Tea Company Delicious tea comes from the fields. Global Branding of "Oi Ocha" Progress of the Tea-Producing Region Development Project in Japan Scale of Green Tea Farms Inside the New production area ITO EN's Unique Strength ITO EN We Love Nature "the Tea-Producing Region Development Project" As a leading tea company, since 1976 we have been involved in tea Sustainable agriculture in Japan production from the tea plantation, "the Tea-Producing Region Development Project." Stable procurement of high-quality domestic green tea raw materials and streamlining of production Training of production farmers Active utilization of devastated farmland 2030 Aiming for 2,800ha (t) (ha) 2,500 Production volume 14,000 2,437 2,478 2,241 12,000 2,000 10,000 1,669 O O O 1,500 8,517 8,794 8,936 8,000 1,034 O 6,000 6,419 1,000 810 O 4,000 380 3,630 500 2,360 2,000 C 800 0 0 '06 '10 '15 '22 '18 '21 '30 Est. Source: ITO EN, The Tea-Producing Region Development Project Each Year May to Apr '23 Est. Oi Ocha "Oi Ocha" PET Bottle Products Switching to 100% tea leaves from "the Tea-Producing Region Development Project" Challenges for further development of Japanese Tea ►Promotion of Environmentally Friendly Agriculture Started testing the anti-global warming effects of Bio-Carbon sprayed on tea plantations. Miyazaki Prefecture Kagoshima Prefecture ►Expansion of Organic Farming Organic Production Volume FY2022 Results 253t FY2030 Target 500t Expanding Overseas At Hiroshima Summit Media International Center Matcha green tea served, experience Japanese culture Forest Resources Biomass Power Generation Bio-Carbon Tea Plantation Verification Biomass power generation using unused wood produces Bio-Carbon as a byproduct. Copyright (C) All Rights Reserved. ITO EN, LTD. Bio-Carbon was applied to assess the impact of global warming and soil effects on tea production. Realization of Sustainable Tea Farming and Securing Raw Materials for Overseas Expansion 15#16Bringing Japan's Caffeine-free Health Tea to the World PITO EN We Love Nature Healthy Mineral Barley Tea strong sales Caffeine-free Tea Beverages Market Trends Caffeine-free Tea Beverages Market Expansion in 10 years Barley Tea 28% Market ►Variations make it a staple for all seasons Barley Tea 53% Freezer Container AITTER 麦茶飲料 ギネス世界記録 R WORLD CORDS 販売実績 *1 日本、世界、 1.4 x 2022 650ml 2012 3-1940 Small Container Tea Bags RECORD HOLDER Barley Tea share of the Caffeine-Free Tea Market Doubles 中伊藤園 健康ミネラル SOUT むぎ茶 健康ミネラル むぎ茶 Baww280ml ミネラル 伊藤園 (カフェインゼロ 健康ミネラル むぎ茶 むぎ茶 むぎ茶 カフェインゼ カフェインゼロ (カフェインゼロ No.192 Instant Source: ITO EN, Market: Calendar year For keeping cool One serving size Individual Bottles For Child Care 1 Intage SRI+ Data Jan to Dec 2022/Barley Tea Beverage Market Data Healthy Mineral Barley Tea Brand Sales Volume *2 Best-selling RTD barley tea brand - current/Latest Annual Sales Volume 2022 Expanding "Black Soybean Tea," a Caffeine-Free Beverage from Japan 100% Japanese Black Soybeans Aroma + Sweetness Soy Isoflavones +Zero Calories Zero Caffeine Zero Sugar Zero Fat A Health Tea Beverage that contains Soy Isoflavones in a tasty way. Copyright (C) All Rights Reserved. ITO EN, LTD. Sales 2.7 times in 5 years Source: ITO EN, Jan to Dec/Sales Volume 伊藤園 註 黑豆茶 李伊藤園 大豆イソフラボン 黑豆茶 SOCHS 伊藤園 こまめにコツコツ 黑豆茶 大豆イソフラボン 25 カフェイン 350- 北海道產100% |大豆イソフラボン 黑豆茶 Food with Functional Claims Ancient Japanese Caffeine-Free Health Tea in a New Category 水出し お出し 14a 16#17Development of Unsweetened Coffee Beverage MARKET TULLY'S COFFEE RTD Coffee Market (Market/¥billion) 1,000.0 (million cases) Tully's Brand RTD Coffee Market 20 PITO EN We Love Nature TULLY'S COFFEE TULLY'S COFFEE BRAND Over 15 Million Cases Record High Sales Volume 900.0 800.0 700.0 15 ►Two Leading Unsweetened Coffee Flavors drive Strong Sales TULLY'S COFFEE BARISTA'S BLACK TULLY'S COFFEE TULLY'S COFFEE BARISTA'S Sugar-Free Latte 10 TULLY'S COFFEE YoY BARISTA'S BLACK +12% YOY BARISTA'S 無糖 LATTE +30% 5 Arabic 10% Arabica 600.0 0 '10 '12 '16 '19 '20 '21 '22 '23Est. Source: ITO EN, Market: Calendar year ITO EN: May to Apr/Sales Volume Shift to Unsweetened Coffee in the Coffee Beverage Market 2010 2022 Unsweetened Coffee Ratio 18% approx 33% Source: ITO EN Fiscal Year 2023 New Proposal ►Collaboration of Three Companies Starts ⚫ALL NIPPON AIRWAYS CO., LTD. • Tully's Coffee Japan Co., Ltd. ■ITO EN, LTD. (From June 2023) Copyright (C) All Rights Reserved. ITO EN, LTD. ANA 期間限定一 ICED COFFEE TULLY'S COFFEE= MorrisIONAL ALITY Quantity base New Trend Sensation created by Black Coffee & Carbonation TULLY'S COFFEE BLACK&SODA GASSATA Taste the Deliciousness of Black Coffee Enjoy the Creamy "Black Foam" Effortless to Pour into Glass TULLY'S Black Foam BLACK&SODA GASSALA ブラックコーヒーソーダ イメージ Launched May 8 Delivering the New Value of Black Coffee to Meet Diversifying Tastes 17#18Group SYNERGY 伊藤園 TULLYS BLACK "T's Splash Espresso (Black) " Refreshing Espresso and Carbonation drink, similar to Ito En's "BLACK & SODA GASSATA", to be available at Stores. Opening New Store Banners Tully's Coffee &TEA (Strengthening Tea) April 30, 2023 17 Stores Nationwide Plans to open first stores in Hokuriku and Shikoku Prefectures (Summer 2023) TULLY'S COFFEE & TEA チチヤス ミルクが おいしい ちょっとすっきり チチヤス -the ミルク ■コーヒーゼリーレ 【コーヒー COFFEE JELLY ソーダ 195156 フェリ ITGEN コーヒー入り飲料 コーヒー飲料 PITO EN We Love Nature TULLY'S チチヤス チチヤス チチヤス チチヤス チチヤス SPECIALTY チチヤス チチヤス チチヤス 每朝快調 紅茶ラテ 441 ギヤス チチヤス 每朝 快調 |易內環境|| 改善 每朝快調 ヨーグルト 低糖質 腸內環境改善 ビフィズス チチヤス × 伊藤園 表示 TULLY'S "Strawberry Yogurt SWIRKLE®" COFFEE Copyright (C) All Rights Reserved. ITO EN, LTD. TULLYS "Peach Yogurt SWIRKLE®" 毎朝快調 新製品合同発表会 每朝快活 每朝快調 Research at ITO EN Central Research Institute, Development Department and Chichiyasu Company Simultaneous Launch of ITO EN and Chichiyasu on April 10 "Yogurt & Açai❞ チチヤス Yogurt Drink Made with Chichiyasu Yogurt Proposing New Value with Team ITO EN GROUP 18#19TULLY'S COFFEE JAPAN Tully's Coffee Japan Co., Ltd Trends in sales revenue and the number of stores operated (\ billion) 40 30 Net Sales --Shops TULLY'S COFFEE עווי (Shops) 1,000 747 760 766 786 800 638 ITO EN We Love Nature FY2022 Sales Exceeding Pre-COVID Levels ►New Store Openings in FY2022 34 stores (Net Increase of 6 stores/year) Eco-Friendly Stores Utilizing Environmentally Conscious Materials ► Increase in Average Customer Spend +8.7% more FY4/2020 • Increased sales of goods Strong sales of high unit-price products * Strong non-beverage incidental purchases by repeat customers 600 20 404 35.5 37.6 299 32.8 400 30.0 27.7 10 15.3 5.4 200 Open April 20, 2023 0 0 Tully's CoffeeTOBU icourt '07/4 '10/4 '13/4 '16/4 '21/4 '22/4 23/4 Est. Revenue recognition standard is applied from FY2021. Efforts in FY2023 Strengthening Store Development New Store Format Planned TULLY'S COFFEE Coffee Stand Concept-Tully's Coffee Specialty Coffee Conveniently! Coffee Stand to Increase Efficiency in Store Operations Change in Store Locations over 10 years Station and Airport Facility Location Ratios 13% to 20% Welcoming Customers from Around the World with ITO EN's Specialty Stores TULLY'S COFFEE TULLY'S Image Saryo ITO EN Haneda Airport International Passenger Terminal No. 1 Store in Annual Sales Haneda Airport Terminal 2 Branch Aiming to Enhance Tully's Brand Value by Strengthening New Initiatives Copyright (C) All Rights Reserved. ITO EN, LTD. 19#20ITO EN Brand Strategy Worldwide ITO EN We Love Nature Growing Health Consciousness Around the World, An Era that Demands Health Value from Tea Beverages ►Global Tea Beverage Market Up 4.8% in 5 years (million USD) 50,000 ►Health Wellness Beverage Market Grew 28.5% (5 Year Ratio) (million USD) 20,000 Within the Health Wellness Beverage Market, 50% of is Unsweetened Tea 48,000 46,000 44,000 42,000 40,000 2017 2018 2019 2020 2021 18,000 16,000 14,000 12,000 10,000 2017 2018 2019 2020 2021 Source: ITO EN Use of "Oi Ocha" and "MATCHA GREEN TEA" in Different Countries and Regions ►Global Brand "Oi Ocha" ►Global Brand "MATCHA GREEN TEA" ITOEN ITO EN Of Ocha Green Tea Of Ochia *伊麻圍 李伊藤園 ITO EN Tea Bags Instant tea ITO EN 85 ITO EN ITO EN ITOEN お茶 Widt 2 D Linswortene Green 500 ind ITO EN ITO EN ITO EN MATCHA GREEN TEA TRADITIONAL ITO EN MATCHAE GREEN TEA JASMINE Unwrebened Green lea Green Ter Green Tea Powder United States Canada China Hong Kong Taiwan Korea Australia Singapore Thailand Indonesia Copyright (C) All Rights Reserved. ITO EN, LTD. United States Tea Bags 201 ITO EN MATCHA CREEN TEA SWEET MAILHA ITO EN MATCHA GREEN TEA SWEET MATCHA ITO EN MAICHA GREEN TEA ORGANIC POW ITO EN MATCHA GREEN TEA UNSWEETENED POWDER Matcha with sugar 12 STVE Unsweeted Matcha Promoting ITO EN's Value Through Products & Sales Strategies Tailored to the Health Value & Taste of Each Country and Regions 20#21Global Branding of "Oi-Ocha" Number of countries where "Oi Ocha" is sold increased from 35 to 40. ►Drink Sales Trend FY2022 Actual PITO EN We Love Nature In-Depth Marketing (Creating a Sales Mechanism) in Each & Every Country Where We Operate YoY +3% NorthAmerica (ten thousand cases) ■ASEAN Australia ■EastAsia and others 3.00 2.00 1.00 0.00 '15 '16 '17 '18 '19 '20 '21 ►Tea Bags ITO EN FY2022 Actual ❖ITOEN Green lea NIVELA ほうじ茶 Hejich YoY +7% SELAMAT HARI PELANGGAN NASIONAL 4 SEPTEMBER 2022 只 ITO EN F21 Gym Sampling Announcement on SNS 24 '22 '23 Est. Indonesia +93% Largest in Southeast Asia Subculture Event Thailand +11% Sales in FY2022 (Compared to FY 2019 Results) ▸ Enhanced Advertising, Sampling & Experience Unified Advertising on a Global Level with Strengthening of Advertising Activities Rooted in Each & Every Country Source: ITO EN, May to Apr / Sales Volume ►Expansion of "Oi Ocha" Product Lineup Strengthening product lineups for each distribution channel China Green Tea with Matcha Green Tea 500ml Green Tea 900ml New Product Thailand Green Tea 1L New Product United States High-capacity TB for EC channel Green Tea 40 tea bags, Green Tea with Roasted Rice and Matcha 50 tea bags New product No.1 Japanese Green Tea Full-Scale Exports in Europe and the Middle East With a Strong Response ►Before COVID-19, Sales Comparison. (Compared to FY 2019 Results) SITO EN O ITO EN 茶 Copyright (C) All Rights Reserved. ITO EN, LTD. 40 ITO EN おお茶 Oi Ocha Green Tea ITO EN Premium JAPANESE MATCHA GENMAICHA お・・お茶 50 Tea Bags/0/115 Europe +97% UAE +72% After COVID Overseas Strategy Aiming for 10 million cases of drinks 21#22PITO EN We Love Nature Appendix Copyright (C) All Rights Reserved. ITO EN, LTD. 22#23Promotion of Sustainability Management Contributing to a Sustainable Society and Sustainable Growth Through Good Taste & Health PITO EN We Love Nature Raw Material OThe Tea-Producing Region Development Project ■Conversion of Abandonded Farmland to Tea Plantations •Development of Pesticide Reduction and Organic Cultivation Techniques •Practice Cultivation Techniques of Environmentally Friendly Agriculture Bio-Carbon Spreading Test 100% Oi Ocha Ingredients 600 伊藤園 伊藤園 Oi Ocha Unsweetened Green Tea Reduces Body Fat 19 Oi Ocha 600 RECYCLE Container Packaging OEfforts for 3Rs of Containers and Packaging ⚫Lightweight Materials •Recycled Materials in Plastic Bottles(PET) *Use of Environmentally Friendly Materials OEmpty Container Collection お Used Tea Leaves Recycling System ⚫Upcycling Used Tea Leaves into a Product 【茶殼 リサイクル ⚫Focus on CO2 Resource Conservation ⚫Used Tea Leaves Composting + Contract Manufacturing Factory ▪ Energy Conservation During Manufacturing Reduced Water Consumption Low CO2 Emissions of Crude Tea Factory in Operation Research and Communication of the Health Benefits of Green Tea. Product Development Utilizing Research Marketing Tailored to Each Country's Regional Food Culture and Unsweetened Tea Custom Contribute to Improving Community & Environmental Issues Copyright (C) All Rights Reserved. ITO EN, LTD. ITO EN Group's Efforts to Solve Environmental Issues 23#24Appendix: Related Materials ITO EN (non-consolidated) Results & Forecasts by Category PITO EN We Love Nature (Unit: ten thousand case) 1Q 2Q 3Q Sales YoY % Sales YoY % (May to Jul) Composition Change (Aug to Oct) Composition Drinks 6,285 100% +4% Tea total 4,501 72% +4% Japanese Tea 4,148 66% +6% 3,951 Change 6,133 100% +6% 4,568 100% 4,347 71% +6% 3,122 68% 64% +6% 2,791 YoY % (Nov to Jan) Composition Change Sales 4Q (Feb to Apr) Composition Sales YoY % Change FY 2023 Results Sales Composition YoY % Change -2% 4,843 100% -4% 21,192 100.0% -2.9% 61% -0% 3,315 68% -2% -2% 2,977 61% -4% 14,977 70.7% -2.0% 13,759 64.9% -0.8% Chinese Tea 228 4% - - 12 % 238 4% +4% 180 4% -6% 187 4% +0% 750 3.5% -10.1% Other Tea 124 2% -4% 157 3% +22 % 150 3% +49 % 150 3% +35 % 467 2.2% -19.7% Vegetable 731 12% -9% 717 12% -9% 539 12% - 15% 603 12% - 15 % 2,547 12.0% -1.7% Coffee 439 7% +10% 453 7% +12% 427 9% +0% 432 9% +0% 1,705 8.0% -2.7% Mineral Water 196 3% +9% 184 3% +3% 140 3% -5% 147 3% -6% 446 2.1% -33.2% Carbonated 156 2% +47% 161 3% +30% 106 2% +33 % 109 2% +23% 533 2.5% -0.3% Fruit 126 2% +5% 115 2% +6% 99 2% +6% 110 2% -5% 445 2.1% -1.5% Others 131 2% +18% 153 2% +38% 132 3% - 3% 123 3% -4% 536 2.5% -0.9% Sales Composition by Packaging (Non-Consolidated) FY2022 Full year (May 2022 to April 2023) Sales Composition by Channels (Non-Consolidated) FY2022 Full year (May 2022 to April 2023) Others 1% FY 2022 Others Composition ratio YoY YoY% Change Composition ratio YoY YoY % Change Cartons Drink Total 21,829 +1% 11% Cans 12% 19% Supermarket - 2 pt -2% Cans 2,584 +0 pt +2% Vending Machine Convinience Store +0 pt PET(large) 6,414 - 2 pt -4% PET(small) PET(small) 10,171 + 2 pt +7% PET(large) 30% Vending Machine - 0 pt 46% Others +2 pt +3% - 1% + 11 % 8% Supermarket 49% Convinience Store 24% Cartons 2,542 - Others 116 1 pt - 0 pt -4% Sales Volume - 18% Sales composition Unit: Ten thousand cases Sales composition 24 Copyright (C) All Rights Reserved. ITO EN, LTD.#25Appendix: Related Materials Consolidated Balance Sheet Consolidated Cash Flows PITO EN We Love Nature (\million) (\million) 2022 2023 Change Current assets 223,278 234,393 11,115 35,000 CF from Operating Activities Free CF CF from Investing Activities <--ROE 9% Cash and deposits 8.2% 96,571 104,181 7,610 7.8% 7.7% 8% 24,719 25,351 Accounts receivable-trade and inventories 112,333 117,843 5,510 25,000 22,226 23,773 22,045 7% Property, plant and equipment 74,490 72,005 -2,485 17,836 15,502 Land 22,837 22,979 142 14,829 15,135 6% 15,000 Leased assets 8,268 6,075 -2,193 11,600- 5% 5.2% Other 43,385 42,951 -434 4.7% 4% 5,000 Intangible fixed assets 8,249 8,270 21 3% Goodwill 3,594 2,528 -1,066 2% -5,000 Investments and other assets 22,340 24,105 1,765 Total assets A 9,217 Δ 7,514 Δ 7,397 1% 328,359 338,774 10,415 A 8,638 A 10,445 -15,000 0% Current liabilities 76,796 89,226 12,430 Accounts payable 30,365 29,958 -407 (¥ million) '20/4 '21/4 '22/4 '23/4 '24/4 Est. Corporate bonds 10,000 10,000 Capital Investments 9,990 7,199 7,511 7,259 9,855 Short-term loans payable 2,897 2,743 -154 DepreciationAmortization 7,022 7,255 7,246 7,582 6,921 Lease obligations 2,371 2,135 -236 Leased Assets Depr. 6,081 Income taxes payable 4,948 4,367 -581 5,171 4,035 2,771 1,651 Non-current liabilities 88,549 77,419 -11,130 Lease obligations(Repayment) -4,679 -3,691 -2,732 -2,278 -1,881 Corporate bonds 10,000 10,000 Long-term loans payable 58,917 58,210 -707 Rating A+ 4/2022 49.2% Equity ratio Lease obligations Bond shelf registration(straight bonds) ¥40billion 4/2023 50.4% 4,199 3,662 Total liabilities 165,346 166,646 -537 1,300 Net assets 163,012 172,128 9,116 Copyright (C) All Rights Reserved. ITO EN, LTD. 25#26❀ ITO EN We Love Nature PITO EN We Love Nature The purpose of the materials you have received is to provide the means for a more thorough understanding of ITO EN and should not necessarily be regarded as a recommendation to invest. Furthermore, the data in these materials is based on what we believe is the most accurate information. However, please understand that even without advance notice, both past data and future forecasts may be revised. Copyright (C) All Rights Reserved. ITO EN, LTD.