ITOCHU (8001) Investor Presentation summary

Organizational structure and business overview

• Textile Company operates through Fashion Apparel and Brand Marketing Divisions, with DESCENTE under Apparel Department 2 and management support from both divisions.

• Business fields span apparel, brand marketing, textile materials, and industrial textiles, with a strong presence in Japan and Asia.

• Key subsidiaries and affiliates include DOME, EDWIN, UNDER ARMOUR, and Paul Smith.

Financial performance and market trends

• Net profit declined in FYE 2021 due to COVID-19 but rebounded with structural reforms and sports business recovery.

• DESCENTE's contribution to net profit has grown, with ITOCHU increasing its ownership stake over time.

• Sports apparel and shoes markets are expanding, driven by increased sports participation and health consciousness.

DESCENTE’s strengths and innovation

• DESCENTE excels in R&D, planning, and sewing technology, with four in-house factories and a diverse brand portfolio.

• Innovation centers in Osaka and Busan focus on advanced sportswear and footwear development.

• The Mizusawa Factory, a core production site, is being expanded to enhance high-value product development.