First Half Financial Results for the Fiscal Year Ending April 30, 2016

December 2015 ITO EN, LTD. Index

1. Beverage Market in Japan 2. Results of Operations (First Half Totals) 3. Annual Forecasts FYE April 2016 4. Management 5. Category Results & Forecasts (Non-Consolidated) 6. To be a representative “ company” of Japan 7. Brand Strategy: Leaf 8. Brand Strategy: RTD Japanese Tea "Oi Ocha" 9. Brand Strategy: Healthy Mineral & TULLY'S 10. Brand Strategy: Healthy Beverages 11. Approach for the Improving Profitability 12. Domestic Businesses: TULLY'S COFFEE & Chichiyasu 13. Overseas Businesses: Penetration of the ITO EN Brand 14. Medium and Long-Term Management Plan

（Appendix） 1. About ITO EN 2. Project of the Developing -Producing Regions 3. Summary of Consolidated Balance Sheet & Others 4. Key Management Indexes (Consolidated)

1. Beverage Market in Japan

Moderate recovery for 2015 with the easing of the effects of the consumption tax increase Market Trend グラフ① Monthly Sales Trends (sales basis) chart① (volume basis) chart②グラフ② YOY（％）

4,000 (¥ billion) Tea was popular 10 ITO EN Coffee was Total 7.2 3,685.0 6.1 popular 3,680.0 3,678.0 5.6 3,607.8 3,637.5 3,660.0 Others/ 3,603.1 Functional 5 3,540.3 160.0 156.7 182.6 182.5 183.0 2.2 1.5 1.3 2.0 6.0 1.6 2.0 Carbonated 165.5 152.3 -0.6 5.0 5.0 was popular 222.0 Sports Drink 260.0 243.0 245.0 0 -1.2 260.0 252.2 244.2 292.3 1.0 1.1 3,100.2 260.1 244.0 Mineral Water -1.0 -1.0 -1.9 -1.0 232.0 258.2 269.0 278.0 -5 210.2 252.7 -3.0 -3.0 -8.0 3,000 97.7 Fruit Market 325.7 329.9 317.0 305.0 300.0 2,707.5 312.2 325.0 -10 447.4

Pioneering of 167.4 164.4 147.2 139.0 136.5 Vegetable -11.8 146.8 150.1 Canned -15 Green Tea 145.6 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Reaction to the last-minute Reaction to the rise in demand before the record-level storm rainfall Pioneering of 928.5 930.0 consumption tax raise 952.0 938.7 929.3 Coffee 2,000 Canned 952.4 948.0 Tea 922.3 Source: ITO EN, (Chart) Nov 2014 to Oct 2015

Average Monthly Temperatures & Precipitation chart③

Carbonated Precipitation quantity in July and September was bigger than 698.0 721.0 715.0 643.4 642.5 680.0 705.0 the previous year in the Tokyo and Osaka areas 648.9 1,000 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Average temp YOY （℃) 0.7 -1.6 -0.5 -0.2 -0.1 -0.5 0.8 -1.3 -0.6 -1.0 -0.6 -0.7 (885.0) (871.5) (885.0) (876.5) (890.0) (897.5) (872.5) (Tea total) Tokyo Precipitation (796.4) 510.0 497.5 488.5 480.0 475.5 478.0 477.5 Other Tea YOY （mm) 72.5 2.5 68.0 -95.5 -19.5 -26.0 -47.5 -115.5 129.0 -1.5 348.0 -327.5 579.3 Average temp YOY （ ℃) 1.3 -1.0 0.2 1.1 0.3 1.1 1.7 -1.0 -0.8 0.8 -0.8 -0.5 Osaka Precipitation 405.0 401.0 412.0 420.0 375.0 375.0 383.0 Green Tea YOY （mm) -6.0 30.0 41.0 -29.5 21.5 34.5 23.0 121.5 279.0 -155.5 68.5 -81.5 217.1 85.2 0 Source: Japan Meteorological Agency 1980 1985 1990 1995 2000 2010 2011 2012 2013 2014 2015 2016 Source: ITO EN Est. Forecast - 1 - 2. Results of Operations (First Half Totals)

Increasing of awareness of profits within the group ■Summary of Operations （Consolidated and Non-Consolidated） （\ million） ■Performances of Subsidiaries （\ million） For the Year For the Year For the Year Ended For the Year Ending Upper: Net Sales Bottom: Operating Ended Ending Apr. 30, 2015 Apr. 30, 2016 Sales Sales YOY % Income Apr. 30, 2015 Apr. 30, 2016 YOY % Composition Composition Change Change 4,334 14,917 244.1% 100.0% 100.0% 8.1% ITO EN Net Sales 233,852 252,877 238 768 222.1% (North America) 41,676$thousand 122,371$thousand 193.6% 47.6% 45.9% 4.4% INC. Gross Profit 111,214 116,082 2,311$thousand 6,307$thousand 172.8% Tully's Coffee 12,810 13,681 6.8% Selling Commission 40,333 17.2% 42,221 16.7% 4.7% Japan Co., Ltd 1,834 1,675 -8.7% 6,891 7,212 4.7% Advertising 7,917 3.4% 6,923 2.7% -12.6% Chichiyasu Company 93 218 134.1% 41,853 42,644 1.9% Transportation 6,152 2.6% 6,537 2.6% 6.3% Domestic Subsidiaries 1,297 1,319 1.7% Depreciation and 2,796 3,773 35.0% 6,621 2.8% 6,913 2.7% 4.4% Other Subsidiaries Amortization 103 168 63.1% Selling, General and Elimination of Internal -29,172 -30,358 - 103,026 44.1% 106,068 41.9% 3.0% Administrative Expenses Transactions -544 -972 - Consolidated Operating Income 8,187 3.5% 10,014 4.0% 22.3% Exchange rate （US$） ¥103.9 ¥121.9 （May-October period average rate） Ordinary Income 8,019 3.4% 9,844 3.9% 22.8% Extraordinary Expenses -81 - -37 - - and Income ■Breakdown of Gross Profit Net Income 4,378 1.9% 5,706 2.3% 30.3% Change (Non-Consolidated) (¥ billion)

For the Year Ended For the Year Ending Apr. 30, 2015 Apr. 30, 2016 Net Sales 194,338 100.0% 201,006 100.0% 3.4%

Gross Profit 89,103 45.8% 91,226 45.4% 2.4% Sales Changes -3.4 3.0 Changes in 2.7% 3.4% 32.4% -0.6 -0.5 Operating Income 5,163 6,835 Product Mix, etc. Fluctuations in Raw 2.9% 4.7% 68.0% 0.6 -0.3 Non-Consolidated Ordinary Income 5,643 9,481 Material Costs, etc.

- 2 - 3. Annual Forecasts FYE April 2016

Aiming to consistently reach the estimation by strengthening brands ■Summary of Operations （Consolidated and Non-Consolidated） （\ million） ■Forecasts of Subsidiaries （\ million） For the Year For the Year For the Year Ended For the Year Ending Upper: Net Sales Ending Bottom: Operating Ended Apr. 30, 2016 Apr. 30, 2015 Sales Apr. 30, 2016 Est. Sales YOY % Income Apr. 30, 2015 YOY % Composition Composition Change Est. Change 9,340 29,380 214.6% 100.0% 100.0% 8.0% ITO EN Net Sales 430,541 465,000 95 1,386 1348.9% (North America) 83,781$thousand 240,906$thousand 187.5% 48.2% 46.6% 4.6% INC. Gross Profit 207,409 216,900 1,108$thousand 11,372$thousand 926.1% Tully's Coffee 26,036 27,480 5.5% Selling Commission 74,468 17.3% 77,157 16.6% 3.6% Japan Co., Ltd 3,572 3,400 -4.8% 13,186 13,377 1.4% Advertising 13,759 3.2% 12,245 2.6% -11.0% Chichiyasu Company 87 200 128.9% 76,518 76,377 -0.2% Transportation 11,455 2.7% 12,105 2.6% 5.7% Domestic Subsidiaries 2,108 1,871 -11.2% Depreciation and 5,841 7,227 23.7% 13,611 3.2% 13,893 3.0% 2.1% Other Subsidiaries Amortization 212 254 20.1% Selling, General and Elimination of Internal -54,135 -54,143 - 196,016 45.5% 201,800 43.4% 3.0% Administrative Expenses Transactions -1,162 -2,114 - Consolidated Operating Income 11,393 2.6% 15,100 3.2% 32.5% Exchange rate （US$） ¥111.2 ¥120.0 （average during a year） Ordinary Income 11,229 2.6% 14,100 3.0% 25.6% Extraordinary Expenses -336 - -650 - - and Income ■Breakdown of Gross Profit Net Income 7,292 1.7% 8,770 1.9% 20.2% Change (Non-Consolidated) (¥ billion)

For the Year Ended For the Year Ending Apr. 30, 2015 Apr. 30, 2016 Est. Net Sales 353,754 100.0% 365,300 100.0% 3.3%

Gross Profit 164,289 46.4% 168,964 46.3% 2.8% Sales Changes -4.5 5.3 Changes in 1.8% 2.8% 55.9% -0.2 -0.9 Operating Income 6,478 10,100 Product Mix, etc. Fluctuations in Raw 2.0% 3.4% 81.8% -0.2 0.3 Non-Consolidated Ordinary Income 6,929 12,600 Material Costs, etc.

- 3 - 4. Management

To become a “Global tea company”, making synergetic effect among the group

Management Strategies Consolidated Cash Flow chart①

1．Improve profitability on domestic business CF from operating activities ・Acquire new customers (¥ million) CF from investing activities Free CF ・Strengthen sales-visiting 24,042 24,300 25,000 21,462 Expand distribution and strengthen ties with 20,400 existing customers 17,751 ・Strengthen Branding 19,702 15,000 Expand and strengthen major brand (over 10 million cases sales in annual) 14,769 11,900 13,394 Enlarge share in the Green tea leaves 8,508 5,000 Launch a "food with functional labeling" ・Action for Agricultural Production Corporation ・Promote to improve profitability on vending machines -5,000 ・Promote improvement on logistics through cutting logistics cost -4,598 ・Improve productivity and cost competitiveness -8,067 -9,272 -9,242 -8,500 ・Generate synergetic effects among the group -15,000

'12/4 '13/4 '14/4 '15/4 '16/4 2．Expand overseas business & new growth Est. ・Expand ITO EN (North America) business and growth investment Investment on Software 259 271 225 372 395 ・Lay the foundation and expand business in Asia Capital Investments 5,377 6,368 4,663 3,359 8,452

3．Strengthen ROE management Depr. and Amort. 3,628 3,917 4,204 4,568 4,921 ・Higher profitability and capital efficiency Leased Assets Depr. 7,263 9,851 10,936 11,085 11,031 ・Increase EPS Repayment of Lease -8,467 -10,979 -12,456 -12,143 -11,288 ・Stable return to stockholders obligations

- 4 - 5. Category Results & Forecasts (Non-Consolidated) Tea Leaves that mainly easy-to-use products, Japanese/Healthy Tea beverage, , and Coffee performed well （\ million） First Half Total （May to October） For the Year Ended For the Year Ending For the Year Ended Apr. 30, 2015 Apr. 30, 2016 Apr. 30, 2014 Sales Sales YOY % Sales YOY % Composition Composition Change Composition Change Net Sales 201,870 100.0% 194,338 100.0% -3.7% 201,006 100.0% 3.4%

Tea Leaves 13,936 6.9% 13,962 7.2% 0.2% 14,857 7.4% 6.4%

Drinks 186,418 92.3% 178,817 92.0% -4.1% 184,457 91.8% 3.2%

Others 1,514 0.8% 1,558 0.8% 2.9% 1,691 0.8% 8.6% Japanese Tea 100,112 49.5% 97,913 50.4% -2.2% 102,734 51.1% 4.9% /Healthy Tea Chinese Tea 9,367 4.6% 8,794 4.5% -6.1% 9,967 5.0% 13.3%

Vegetable 27,626 13.7% 24,184 12.4% -12.5% 23,479 11.7% -2.9%

Fruit 7,300 3.6% 7,821 4.0% 7.1% 6,277 3.1% -19.7%

Coffee 15,323 7.6% 17,085 8.8% 11.5% 20,989 10.4% 22.8%

Black Tea 6,781 3.4% 6,056 3.1% -10.7% 3,890 1.9% -35.8%

Functional 4,329 2.1% 3,598 1.9% -16.9% 4,207 2.1% 16.9%

Breakdown Drinks of Mineral Water 5,489 2.7% 4,755 2.4% -13.4% 4,992 2.5% 5.0%

Carbonated 7,214 3.6% 6,739 3.5% -6.6% 6,352 3.2% -5.7%

Others 2,873 1.4% 1,866 1.0% -35.1% 1,565 0.8% -16.1%

- 5 -

6. To be a representative “Tea company” of Japan

Change in the Percentage of Green Tea Leaves Ratio of Tea Pot Ownership by Age by Price Zone for Mass Merchandisers chart① chart②

■Increase in the percentage of high-end products over years ■Decreasing in every age. In particular, not more than one of two persons in their twenties and thirties has a tea pot 100% 100% 92.4% 2010 16.4% a low price zone 86.2% 22.2% 20.8% 19.8% 19.1% 84.4% （less than ¥300） 76.7% 80% 2015 75% 68.8% 62.4% 60% 52.3% 54.8% 50.9% 52.1% 50.3% 50.0% 52.1% a mid price zone 48.9% 50% （¥301 ～ under ¥700） 38.9% 40%

25% 20% 31.5% 26.9% 27.1% 29.9% 30.9% a high price zone （over ¥700） 0% 0% '11 '12 '13 '14 '15 20's 30's 40's 50's 60's Source: ITO EN, Jan to Dec 2011～2014, Jan to Oct 2015 Source: ITO EN

Provision of Green Tea in a New Style

■ITO EN×ISETAN project "Green " ・Offer new style of Japanese green tea Strengthening the domestic foundation toward ・Under concept of the party-scene with a “Global tea company” "decorate,""taste,""play," and "gifts." Nov 3 to 10 2015 ■ Creation of a market for high-quality tea and Isetan Shinjuku (Main Building, 5th floor) easy-to-use products

■ Strengthening the ability to make proposals through big tea ceremonies and activities for dietary education, among other actions Development of specialists to invigorate the sales floor, mainly internal qualified staff for tea - 6 - 7. Brand Strategy: Leaf Expansion of the promotion for increase in sales of tea leaves Easy-to-Use Green Tea Product Market Green Tea Leaves Demand Awakening (Tea bags and Instant) chart① ■Expand ITO EN share while growing of easy-to-use products ■Tea bags continued to perform well market every year （¥ billion） ■Aiming to bolster profitability through an increase in sales 30 ITO EN share 80% of high-end tea leaves Instant Tea bags High price zone in tea leaf Launched on mid-Sep 4.7 Up 9% YOY Creation of demand from homes 4.2 60% 3.6 100g ¥1200 without a tea pot 20 May to Oct 2015 total 3.4 （tax excluded） 3.2 “Heat-resistant glass ‘raku-raku’ easy-to-use tea pot” 45% 40% 41% 42% 38% 39% 10 19.1 19.7 20.3 17.0 16.0 20% Tea bags

0 0% '11 '12 '13 '14 '15 Source: ITO EN, Market: Calendar year ITO EN: May to Apr Est. Promotion of ITO EN characterized by “Ocha (tea)” Meeting the Inbound Demands ■Holding of the biggest in the tea season ■Opening of a tea specialty store at an airport terminal Demonstration selling by internal qualified staff for tea, about 1,800 staff members, all over Japan Haneda international airport terminal Terminal 1 at Narita international airport Japanese café "the saryo ITO EN" FaSoLa ITO EN "Oi Ocha Big Tea Ceremonies" at Ginza, Tokyo Oct 2015

- 7 - 8. Brand Strategy: RTD Japanese Tea "Oi Ocha"

Aim to improve RTD green tea share

グラフ② RTD Green Tea Market Monthly Sales Amount Share of the RTD chart① Green Tea in the supermarket chart② (¥ billion) packages with 500 80%100% autumn maple 447.0 designs using leaves 421.0 415.0 409.3 402.0 405.0 401.0 412.0 70% cherry blossoms （late Aug 2015） 382.0 383.0 （late Jan 2015） 400 375.0 375.0 80% 60% 309.4 ITO EN share 50% 300 268.5 279.2 60% 37% 39% 38% 37% 34% 36% 35% 35% 36% 217.1 31% 33% 32% 40% 28% 29% 29% 200 30%40% 31% ITO EN 20% グラフ③ 135.8 143.0 144.8 142.7 145.0 141.3 140.9 141.3 140.0 146.5 20% 41% 42% 41% 42% 100 119.3 130.3 35% 34% 34% 39% 38% 39% 40% 40% 101.8 87.5 ITO EN 10% 66.3 75.8 0 0% 0% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Est. Source: ITO EN, Calendar year Source: INTAGE Inc. SRI, Nov 2014 to Oct 2015 Sales amount share of RTD green tea PET 350～600ml (supermarkets total) Oi Ocha Brand Strategy Launched on Oct 26 30th anniversary of its Launch “Oi Ocha” in Jan 2016 375ml ¥1,000 Food with functional labeling launch of RTD green tea Use Gyokuro 100％ Launch on Dec 7 HOT (heatable) PET bottles ■Expand the tea-drinking population by 500ml ¥140 （all tax excluded） conveying the good taste of tea

■ Sales and proposals of products targeting all generations to strengthen the four types of “Oi Ocha” product

■Share the increase and strengthening of brand power in all business categories Packages with designs Strengthen sales of Quality differentiation, Further quality improvement using cherry blossoms HOT PET - 8 - 9. Brand Strategy: Healthy Mineral Barley Tea & TULLY'S COFFEE

2 major brands (over 10 million cases sales annual sales) perform well and aiming at becoming stronger brands

RTD Barley Tea Market Sales Volume of "TULLY'S COFFEE" グラフ② chart① chart② (¥ billion) (million cases) 80 ■Towards a No.1 share in Free RTD tea ■Sales well after launched canned bottle in 2009 70.0 14 63.0 12 60 ITO EN share 51.0 10 45.5 the 4th of 39.5 8 40 34.5 31.2 32.2 60% 58% 61% our major brand 52% 56% 53% 6 12.54 47% （over 10 million cases 45% 9.95 4 8.41 sales annual sales） 20 31.2 35.0 37.4 23.7 26.2 5.98 4.34 15.1 18.0 ITO EN 2 13.9 0 0 '08 '09 '10 '11 '12 '13 '14 '15 '11 '12 '13 '14 '15 Source: ITO EN, Market: Calendar year ITO EN: May to Apr Est. Source: ITO EN, Calendar year Est.

RTD Barley Tea Brand Strategy "TULLY'S COFFEE" Brand Strategy

■Proposal of the way to drink ■“Winter health measures” launch ■Expansion of the product lineup and conduct of campaigns in on the package as a product of a hot drink two months earlier accordance with the taste of consumers Launched available through the year than the previous year Launched on Oct 19 Launched on Nov 23 "Kenko Mineral Mugicha" on Sep 14

Up 9% YOY May to Oct 2015 total

Become a “No.1 share in Caffeine Free RTD tea” To be a “No.1 brand in canned bottle black coffee”

from “No.1 brand in RTD Barley Tea” ■ Comprehensive marketing

■ Approach health benefit of mineral barley tea （Product competitiveness, advertising and promotion, and strengthen introducing ） ■ Staying a basic item through a year ■ Reinforcement of synergy with the “TULLY'S Shops” - 9 - 10. Brand Strategy: Healthy Beverages

Proposal of good-tasting health value by harnessing unique technologies

Healthy Beverage Brand Strategy Food (Beverage) for Specified Health Use (FOSHU) Market chart① (¥ billion) 300 20% Meeting diversified demands for health 245.3 248.9 250 214.5 15% 200 182.6 ■ New proposal for value of “good-tasting food for 157.7 specified health uses” 150 10% ITO EN share 6% 100 5% 4% 4% 4% ■ Further expand product line 5% 50

■ Stimulation of demand with healthy drinks 0 0% '11 '12 '13 '14 '15 Est. Source: FUJI KEIZAI CO., LTD. （Specified health use products markets）"2015 Soft Drinks Marketing Handbook №2", （Calculated value of our company's share） ITO EN, Market: Calender year ITO EN: May to Apr

Our Product Lineup of Healthy Beverages （Specified Health Use Drinks, Functional Display Drinks, etc.）

“Aojiru ” “ Green Tea” “Golden Oolong Tea ” “Rooibos Tea ” “Black Vinegar” (Green Juice) Healthy sales due to Launched on Apr 13 expansion of containers Up 47% YOY Up 88% YOY Performing steadily Up 30% YOY Up 19% YOY May to Oct 2015 total May to Oct 2015 total May to Oct 2015 total May to Oct 2015 total

Up 28% YOY May to Oct 2015 total

- 10 - 11. Approach for the Improving Profitability Reviews of distribution and measures for vending machines are being continually strengthened

Promotion of Logistics Reform Measures Promotion of vending machines

■ Enhanced profit management and improved efficiency of visits ■ Distribution reforms based on area characteristics advance relocation strategy

June 2015 TOKYO bay center parallel establishment of 3 Tamagawa sales office existing sales offices（ ▲ ） ■ Area characteristics with a focus on urban areas TOKYO bay center ■ Strengthening development of indoor locations January 2016 （Plan） Tamagawa sales office ・Raising the proportion of indoor vending machines Haneda international airport Establish new office by combining 2 existing offices（ * ） ■ Value creation for outdoor locations ・Installation of vending machines with disaster contingency measures ・Collaboration with INGRESS Oct. 2015 Tohun Logitem CO., Ltd. ■ Launch of specialty products that contribute logistics joint venture to improved profitability company （Saitama） July 2015 October 2015 Nagano center （Nagano） Sakai center （Osaka） Dedicated containers for vending machine sales “Golden Oolong Tea ” (FOSHU) - 11 - 12. Domestic Businesses: TULLY'S COFFEE & Chichiyasu

（\ million） TULLY'S COFFEE Business Overview For the Year For the Year For the Year Ended Ending (¥ billion) （Shops） Ending Apr. 30, 2015 YOY % Apr. 30, 2016 YOY % YOY % 30 27.4 1,000 Apr. 30, 2016 Est. (First Half) Change (First Half) Change Change Net Sales 26.0 23.8 Tully's Coffee Japan Co.,Ltd 12,810 9.5% 13,681 6.8% 27,480 5.5% 25 21.0 750 Chichiyasu Company 1.3% 4.7% 1.4% 19.3 6,891 7,212 13,377 20 Domestic Subsidiaries 41,853 -0.9% 42,644 1.9% 76,377 -0.2% 15.3 13.9 13.9 640 15 588 500 -1.3% 3.2% 1.3% 12.5 555 Net Sales 61,555 63,538 117,234 513 461 Tully's Coffee Japan Co.,Ltd 1,834 8.8% 1,675 -8.7% 3,400 -4.8% 10 410 375 357 250 Chichiyasu Company 93 -50.0% 218 134.1% 200 128.9% 299 328 5 Shops 5.4 Domestic Subsidiaries 1,297 -19.1% 1,319 1.7% 1,871 -11.2% 0 0 Operating Income 3,225 -7.2% 3,213 -0.4% 5,472 -5.1% '07/3 '08/3 '09/3 '10/3 '11/3 '12/4 '13/4 '14/4 '15/4 '16/4 ※Excluding ITO EN. Before elimination of internal transactions Shops : Including Koots Green Tea shops Est.

Chichiyasu Business Overview ■ Newly-opened stores performing steadily ・Actively opening shops in good locations synergy ■ Stronger sales in eastern Japan （As of Oct 2015 608 shops） Feb 2016, start of manufacturing in KUJIRAI DAIRY INDUSTRY Co.,LTD Launched product of ・Taking on the challenge of new business categorie (Saitama) collaboration TULLY'S COFFEE & Chichiyasu ■ Revitalizing existing stores ・Increase sales and average customer spend

TULLY'S COFFEE Tennoji Park First store inside Strengthen categories ■ Release of products jointly developed with ITO EN the park in Kansai area

Sweets using Greek-style yogurt Launched Launched Launched on Sep 7 on Jun 8 on Apr 20 - 12 - 13. Overseas Businesses: Penetration of the ITO EN Brand

（\ million） Overseas Business Sales Ratio For the Year Ended For the Year Ending For the Year Ending Target Over 10% Apr. 30, 2015 Apr. 30, 2016 YOY % YOY % Apr. 30, 2016 Est. YOY % (¥ billion) (First Half) Change (First Half) Change Change US business 40 20% ITO EN (North America) INC. 4,334 12.0% 14,917 244.1% 29,380 214.6% Asia/Australia business US business 5,558 11.7% 16,426 195.5% 32,224 173.1% Overseas business sales ratio 30 15% Asia/Australia busines 1,572 53.1% 2,264 44.0% 4,384 29.7% Net Sales 7,130 18.8% 18,691 162.1% 36,608 141.1% 20 8% 10% ITO EN (North America) INC. 238 -27.9% 768 222.1% 1,386 1348.9% US business -21.4% 165.4% 747.3% 316 839 1,484 4% 10 3% 5% Asia/Australia busines -185.2% 287.6% 18.5% 2% 25 98 157 2% Operating Income 341 -8.4% 937 174.4% 1,641 433.2% 0 0% ※Before elimination of internal transactions ※Including DLTC company's results from '12/4 '13/4 '14/4 '15/4 '16/4 the First half of FYE 4/2016 Est. ■ Start-up of developed by "Global Brand " ■ Expansion of the synergy with DLTC company, incorporated green tea's sales as subsidiary company in February 2015 TRADITIONAL JASMINE LEMONGRASS PEPPERMINT ・Contribution to the sales and selling channel expansion in the US business ・Exhibition on Japanese specialty coffee event SCAJ 2015

Product lineup La Minita Coffee's booth

Singapore

Australia Selling area

New York Sales' scene ■ Sales toward profitability in Asia in Singapore's ・ITO EN BEVERAGE (SHANGHAI), LTD. moved into the black Hawaii supermarket achieved a year ahead of schedule - 13 - 14. Medium and Long-Term Management Plan

To be a "Global Tea Company" - Long-term management vision ■Sustainable sales growth ■Maintain an OP margin level of domestic beverage business at least 5％ and invest excess earnings for growth Mid-Term To be a "Global Tea Company" Management Plan Bring forward a rich and healthy 1. Strengthen domestic foundation life to customer in the world

2. Challenge to new field in Japan Improve brand building of 1. Strategic investments to becoming 3. Strategic investments for beverage, , and instant products a domestic beverage maker establishment of overseas 2. Expand business in China and business foundations Southeast Asia Improve new business field

FYE April 2017 FYE April 2015 ROE: 10% Net Sales: ¥430.5 billion Net Sales: more than ¥500 billion Operating Income: ¥11.3 billion ROE: 10% Payout ratio: 40% ROE: 5.9% (Consolidated) Payout ratio: 40% (Consolidated)

- 14 - （Appendix 1) About ITO EN

Concept for Product Basic Management Policy Development Corporate History “Always Putting the Customer First” 1966 Established. 1980 Develops the world's first Canned Oolong Tea Natural 1984 Develops the world's first Canned Green Tea. （launched in 1985） Delicious Healthy 1989 Changes the name of Canned Green Tea products to “Oi Ocha.” 1990 Releases the world’s first PET bottled green tea drinks (“Oi Ocha” Green Tea, 1.5L). ITO EN credo 1998 Stock advanced to the First Section of the Tokyo Stock Exchange. Mission Statement 2001 Established ITO EN (North America) INC. Well- Our mission is to put the customer first, Safe 2006 Tully's Coffee chain, into a consolidated subsidiary. make integrity our stock in trade, designed 2007 Class 1 Preferred Stock listed on the First Section of the Tokyo Stock Exchange. spare no effort, 2014 30th anniversary of its launch of RTD green tea. and earn the confidence and trust of society "Oi Ocha" total sales volume exceeded 25 billion bottles in total.

Business Model ※Converted to 500ml bottle as of Dec. 2014 Eco-Friendly PET Bottles & "NS system" Customer Retailers/stores NS = Non-Sterilant ・Route Sales System 【Leaves for green tea & coffee】 Own Manufacturing System Direct visiting by the sales team members Realization of High Quality Reduce the cost of energy by distribution, the amount of Communication build-up, water and materials Selling space proposals Sales 【Beverages】 Fabricationless Production to reduce capital Bottle about 30% lighter = 19ｇ expenditures and Label thickness: 20μm Voice System transportation cost

Corporate-wide proposal system Management by employees & customers ・Block production ・Quality control system and logistics system R & D Production 5 blocks -Appendix 1- （Appendix 2) Project of the Developing Green Tea-Producing Regions

ITO EN's unique-integrated quality control system; from tea farm to products Project of the Developing Total Volume of Domestic Green Tea Green Tea-Producing Regions

(ton) Total Domestic Tea Leaf Production 120,000 ITO EN Consumption 60% （ton） Production volume (ton) （ha） 100,000 ITO EN Consumption (%) 6,200 Nagasaki 50ha 2,500 100,000 50% Area of green tea farms (ha) 89,300 87,900 6,000 85,000 84,100 84,800 83,500 Oita 130ha Long -term target 2,000 80,000 40% 5,000 2000 ha Kumamoto 65ha 2,000 （Plan） 27% 4,000 60,000 25% 30% 3,400 1,500 23% 24% 24% 3,300 21% 2,810 18% 3,000 Miyazaki 150ha 40,000 20% 1,000 2,000 960 1,000 880 20,000 10% 500 1,000 Kagoshima 410ha 0 0% 0 0 '00 '05 '10 '11 '12 '13 '14 Plan for 2015 '13 '14 '15 ※Including contract cultivation farms Source: ITO EN Plan From Tea Farm to Used Tea Leaves

Procurement/Processing/ Tea Farm Product Used Tea Leaves Recycling System Quality Control System

・Utilize abandoned arable farms ・Strengthening traceability Use 100% domestically ・Used Tea Leaves Recycling System ・Fostering of Labor saving （since 2000） Bulk A release of quality control grown crude tea. An effective usage of the tea leaves, Purchasing information （since May 2012） emitted after manufacturing An insertion of a QR-code on the ・Produce tea leaf in Australia and China A practical usage of the healthy package of the leaf products and （Overseas-oriented raw material） ingredients, remaining in the tea leaves the drink products, represented by "Oi Ocha"

-Appendix 2- （Appendix 3) Summary of Consolidated Balance Sheet & Others

Balance Sheet Change Topics as of April 30, 2014 and 2015 （\ million） Two projects that involved donating a portion of the sales Items 2014/10 2015/10 Change Description of change of all "Oi Ocha" beverage products to environmental Current assets 135,223 155,961 20,737 conservation and improvement activities around Japan (Major contents） were recognized for their contributions to preserving the Cash and deposits 37,673 49,634 11,961 water cycle and conserving biodiversity. Notes and accounts 81,212 90,910 9,697 ← Due to increase in sales receivable・ Inventories July 2015 Fixed assets 80,153 79,606 △ 547 Prize of the Minister of Economy, Trade and Industry (Major contents） in the Japan Water Grand Prize Award Land 18,492 19,422 929 Sponsored by: The Committee on the Japanese Water Grand Prize, Lease assets 35,442 31,152 △ 4,290 Ministry of Land, Infrastructure, Transport and Tourism Mainly relation to vending Others 7,915 10,304 2,388 machines, etc. September 2015 Intangible fixed assets 21,690 32,503 10,812 Excellence Prize Winner of the “Forth Biological (Major contents） Diversity Japanese Award” Goodwill 15,398 26,688 11,290 ← Due to acquisition of DLTC share Sponsored by: Aeon Environment Foundation (Public Interest Incorporated Investments and other assets 16,595 19,240 2,644 Foundation) Sponsored by: Ministry of the Environment, others Total assets 253,664 287,311 33,647 ■Prize Winner Project Outline Current liabilities 72,684 76,428 3,743 “Making Lake “Making Japan Beautiful (Major contents） Biwa Beautiful Through Tea” Through Tea” Notes and accounts payable 29,566 30,590 1,023 ← Due to increase in sales （Promoted since 2008） （Promoted since 2010） 793 968 174 Short-term loans payable Accrued expenses 19,966 22,078 2,111 ← Due to increase in sales ■Bond Rating Income taxes payable 3,571 4,015 444 expenses A+

Non-current liabilities 56,405 80,571 24,165 ■Corporate bond (Major contents） registration Corporate bond 20,000 20,000 - Straight bond 60 billion yen ※Ended for the FYE 2014 Long-term loans payable 1,427 30,436 29,009 ← Bank loans for acquisition of DLTC The area targeted for donations (unissued 40 billion yen） ← Mainly relation to vending was expande to 34 prefectures Lease obligations 22,166 18,226 △ 3,939 machines, etc. ■Equity ratio Total non-current liabilities 129,090 157,000 27,909 ※Nov 1 to Dec 31 2015 '15/10 45.0% Total liabilities and net assets 124,573 130,310 5,737 '14/10 48.8%

Reed cutting at Lake Biwa in Shiga -Appendix 3- （Appendix 4) Key Management Indexes (Consolidated)

Net Sales & % Cost of Sales Operating Income Net Income chart① chart② グラフ③chart③

(¥ billion) Net Sales （％） (¥ billion) Operating Income （％） (¥ billion) Net income （％） 500 % Cost of Sales 465.0 65 25 % Operating Income 12 15 % Net Income 437.7 430.5 21.1 403.9 20.2 12.0 8 400 369.2 20 10 11.2 351.6 17.6 18.9 332.8 332.9 55 9.2 15.1 10 8.7 6 300 15 8 12.4 7.6 53.3 7.2 52.4 11.3 52.1 51.6 51.8 50.8 50.9 50.6 10.6 5.9 4 200 10 6 4.7 45 5 5.1 2.8 2.8 100 5 5.0 5.0 4.8 3.2 4 2.5 2 2.6 2.2 1.9 3.7 1.8 1.7 3.2 1.4 0 35 0 2 0 0 '09/4 '10/4 '11/4 '12/4 '13/4 '14/4 '15/4 '16/4 '09/4 '10/4 '11/4 '12/4 '13/4 '14/4 '15/4 '16/4 '09/4 '10/4 '11/4 '12/4 '13/4 '14/4 '15/4 '16/4 Est. Est. Est.

Cash Flow Capital investments & Depr. & Amort. ROE & ROA chart④ chart⑤ chart⑥

(¥ billion) ＣＦ from Operating Activities (¥ billion) Software （％） ＣＦ from Investing Activities ROA 12 Capital Investments 11.0 11.0 30 10.9 ROE Free ＣＦ 24.0 24.3 Depr. & Amort. 21.4 9.8 20.4 Leased Assets Depr. 19.7 10 20 20 17.1 17.7

8 7.2 17.5 13.3 14.7 15 10 5.3 19.7 10.6 5.5 11.9 6 4.9 10.3 10.4 8.5 4.5 8.9 3.5 3.8 3.8 4.1 10 7.6 0 3.4 3.6 6.9 -1.8 4 6.0 5.9 -2.1 2.6 4.7 -4.5 -10 -6.5 3.1 8.4 5 -7.2 -8.0 -8.5 2 -9.2 -9.2 6.3 4.8 4.8 5.3 4.6 4.1 4.4 3.1 2.8 1.8 1.8 3.3 3.0 3.5 2.7 -20 0 0 '09/4 '10/4 '11/4 '12/4 '13/4 '14/4 '15/4 '16/4 '09/4 '10/4 '11/4 '12/4 '13/4 '14/4 '15/4 '16/4 '09/4 '10/4 '11/4 '12/4 '13/4 '14/4 '15/4 '16/4 Est. Est. Est. -Appendix 4- 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.