Financial Results for the Fiscal Year Ended April 30, 2019

June 2019 ITO EN, LTD.

Soft Drink Market in Japan P.1 Results & Forecasts by Category (Non-Consolidated) P.2 Results of Operations FYE April 2019 P.3 Forecasts FYE April 2020 P.4 Profitability improvement management P.5 Oi Ocha P.6 Tea Leaf Products P.9 Barley Tea& Vegetable Juice P.10 TULLY'S COFFEE P.11 Appendix To Become a Health Creation Company P.12 About ITO EN Group Global Business Strategy P.13 Development Program of Tea-growing Area

Towards a "Global Tea Company" P.15 TOPIX

Soft Drink Market Trends Monthly Sales Volume Trends

(¥ billon) Start of the Unsweetened RTD Tea Market Tea has become Popular 4,000 YOY(%)） Coffee has become 9 popular 193.8 189.8 202.0 203.0 Others/Functional 8 8 ITO EN 187.0 218.4 235.0 230.0 8 6 6 222.0 246.0 228.7 Sports Drink 1980 1985 244.0 4 Pioneering of Pioneering of 276.3 275.5 289.0 291.0 3 Canned Canned 260.1 284.0 Mineral Water 267.0 3 Oolong Tea Green Tea 3 1 5 5 1 3,000 97.7 157.5 Carbonated has 306.0 303.0 295.0 292.0 Fruit 3 0 become popular 305.0 2 2 447.4 376.4 1 1 167.0 166.0 164.0 152.2 Vegetable -2 0 0 -2 140.0 -1 159.2 -2 145.6 Market -6 920.0 Coffee -7 951.0 942.0 933.0 942.0 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2,000 Source: ITO EN, (Chart) May 2018 to Apr 2019 922.3 955.1 Topics of Soft Drink Market

740.0 725.0 725.0 740.0 Carbonated 〇RTD Tea market: Exceeded a record high (945.0 538.5 720.0 648.9 billion yen). Of the RTD tea market, the RTD barley 1,000 tea market: up 14.5%

(931.3) (939.0) (945.0) (966.0) 〇Topics (873.0) (912.0) (Tea total) 484.3 499.0 500.0 519.0 Confusion in production and distribution due to natural (796.4) 458.0 477.0 Other Tea 579.3 disasters Record-high shipment volume attributable to record heat in the summer 447.0 415.0 435.0 440.0 445.0 447.0 Green Tea 217.1 Increased demand for drinks in small PET bottles, which 0 85.2 are easy to carry around 1980 1985 1990 1995 2000 2005 2015 2016 2017 2018 20192019 \ 1980 1985 1990 1995 2000 2005 2015 2016 2017 2018 Forecast Increased shipping costs due to labor shortages ( billion) Forecast Increased demand for RTD barley tea and RTD roasted Total - - 2,708 3,100 3,540 3,613 3,678 3,770 3,770 3,805 3,806 green tea throughout the year YOY % ------3% 0% 1% 0% Announcement of increases in the prices of beverages in Change large bottles Copyright (C) All Rights Reserved. ITO EN, LTD. Source: ITO EN, Calendar year 1 Results & Forecasts by Category (Non-Consolidated)

(\ million) FYE Apr. 30, FYE Apr. 30, FYE Apr. 30, 2018 Sales YOY % 2019 Sales YOY % 2020 Est. Sales YOY % Composition Change Composition Change Composition Change Net Sales 383,212 100.0% 3.1% 394,495 100.0% 2.9% 400,500 100.0% 1.5%

Tea Leaves 35,700 9.3% 6.0% 36,969 9.4% 3.6% 38,466 9.6% 4.1%

Drinks 343,853 89.6% 2.7% 353,921 89.7% 2.9% 358,329 89.5% 1.2%

Others 3,659 1.0% 10.5% 3,605 0.9% -1.5% 3,703 0.9% 2.7%

Japanese Tea/Healthy Tea 186,579 48.7% 1.6% 198,815 50.3% 6.6% 202,887 50.6% 2.0%

Chinese Tea 17,421 4.5% 2.3% 16,782 4.3% -3.7% 16,416 4.1% -2.2%

Vegetable 47,154 12.3% 6.4% 45,531 11.5% -3.4% 46,355 11.6% 1.8%

Fruit 11,866 3.1% 10.5% 10,451 2.6% -11.9% 10,304 2.6% -1.4%

Coffee 42,758 11.2% 0.8% 41,758 10.6% -2.3% 42,647 10.6% 2.1%

Black Tea 5,083 1.3% 3.7% 5,723 1.5% 12.6% 5,034 1.3% -12.0%

Functional 6,821 1.8% -3.4% 7,863 2.0% 15.3% 8,416 2.1% 7.0%

Breakdown of Drinks Mineral Water 10,462 2.7% -4.5% 11,040 2.8% 5.5% 9,824 2.5% -11.0%

Carbonated 11,936 3.1% 19.5% 11,911 3.0% -0.2% 12,242 3.1% 2.8%

Others 3,768 1.0% -1.1% 4,041 1.1% 7.3% 4,199 1.0% 3.9%

■Summary of Operations (Consolidated and Non-Consolidated) (\ million) ■Performances of Subsidiaries (\ million, $ thousand)

FYE Apr. 30, FYE Apr. 30, Upper: Net Sales FYE Apr. 30, FYE Apr. 30, Bottom: Operating Income 2018 Sales 2019 Sales YOY % 2018 2019 YOY % Composition Composition Change Change 104,722 107,765 2.9% Net Sales 494,793 100.0% 504,153 100.0% 1.9% Domestic Subsidiaries 5,620 5,801 3.2% Gross Profit 233,983 47.3% 240,375 47.7% 2.7% Tully's Coffee 32,589 34,568 6.1% Japan Co., Ltd. 3,250 3,504 7.8%

Sales Commission 81,615 16.5% 84,760 16.8% 3.9% Chichiyasu 14,398 14,409 0.1% Company 305 269 -11.8% Advertising 12,491 2.5% 11,544 2.3% -7.6% 40,362 38,168 -5.4% Overseas Subsidiaries Freight 14,188 2.9% 15,210 3.0% 7.2% 2,619 2,738 4.5% -7.8% Depreciation and 35,130 32,385 10,873 2.2% 11,296 2.2% 3.9% 2,018 1,658 -17.8% Amortization US Business Selling, General and $317,650 $291,054 -8.4% 211,939 42.8% 217,555 43.2% 2.6% Administrative Expenses $18,253 $14,901 -18.4%

Consolidated Operating Income 22,043 4.5% 22,819 4.5% 3.5% Other Overseas 5,231 5,783 10.5% Subsidiaries 600 1,080 79.8% Ordinary Income 21,441 4.3% 23,211 4.6% 8.3% Elimination of -33,504 -36,276 - Internal Transactions Extraordinary Losses -1,592 -1,572 - -450 - -724 - - and Income Exchange rate (US$) ¥110.63 ¥111.27 (average during a year) Net Income 12,553 2.5% 14,462 2.9% 15.2% ■Breakdown of Gross Profit Change (Non-Consolidated) '17/4 '18/4 '19/4 190 Net Sales 100.0% 100.0% 2.9% 383,212 394,495 (\ billion) +0.5 +0.6 +5.2 -0.5 Gross Profit 179,707 46.9% 184,965 46.9% 2.9% 180 +5.3 Operating Income 15,394 4.0% 15,851 4.0% 3.0% -1.2

Sales Changes in Fluctuations in Sales Changes in Fluctuations in 4.5% 4.7% 8.5% Changes Product Mix, Raw Material Changes Product Mix, Raw Material Non-Consolidated Ordinary Income 17,142 18,600 etc. Costs, etc. etc. Costs, etc.

■Summary of Operations (Consolidated and Non-Consolidated) (\ million) ■Performances of Subsidiaries (\ million, $ thousand)

FYE Apr. 30, FYE Apr. 30, Upper: Net Sales FYE Apr. 30, FYE Apr. 30, 2019 Sales 2020 Est. Sales YOY % Bottom: Operating Income 2019 2020 Est. YOY % Composition Composition Change Change 107,765 110,048 2.1% Net Sales 504,153 100.0% 510,000 100.0% 1.2% Domestic Subsidiaries 5,801 5,442 -6.2% Gross Profit 240,375 47.7% 243,649 47.8% 1.4% Tully's Coffee 34,568 36,300 5.0% Japan Co., Ltd. 3,504 3,510 0.1% Sales Commission 84,760 16.8% 85,540 16.8% 0.9% Chichiyasu 14,409 14,580 1.2% Company 269 350 29.9% Advertising 11,544 2.3% 12,774 2.5% 10.7% 38,168 39,252 2.8% Overseas Subsidiaries Freight 15,210 3.0% 15,490 3.0% 1.8% 2,738 2,744 0.2% 32,385 33,350 3.0% Depreciation and 11,296 2.2% 11,096 2.2% -1.8% 1,658 1,710 3.1% Amortization US Business Selling, General and $291,054 $308,793 6.1% 217,555 43.2% 220,648 43.3% 1.4% Administrative Expenses Consolidated $14,901 $15,836 6.3% Operating Income 22,819 4.5% 23,000 4.5% 0.8% Other Overseas 5,783 5,902 2.1% Subsidiaries 1,080 1,034 -4.2% Ordinary Income 23,211 4.6% 22,800 4.5% -1.8% Elimination of -36,276 -39,801 - Internal Transactions Extraordinary Losses -1,572 -1,387 - -724 - -900 - - and Income Exchange rate (US$) ¥111.27 ¥108.0 (average during a year) Net Income 14,462 2.9% 14,200 2.8% -1.8% ■Breakdown of Gross Profit Change (Non-Consolidated) '18/4 '19/4 '20/4 100.0% 100.0% 1.5% 190 Net Sales 394,495 400,500 +1.1 -0.8 +0.5 +2.8 46.9% 47.0% 1.7% Gross Profit 184,965 188,072 +5.2 -0.5 180 Operating Income 15,851 4.0% 16,200 4.0% 2.2% (\ billion) Sales Changes in Fluctuations in Sales Changes in Fluctuations in Changes Product Mix, Raw Material Changes Product Mix, Raw Material Non-Consolidated Ordinary Income 18,600 4.7% 18,100 4.5% -2.7% etc. Costs, etc. etc. Costs, etc.

Collaboration with agricultural production corporations Promotion of the Tea-Producing Region Development Project Research and development of high value- added beverages Providing products that meet needs and fit with the times

Community-based sales (196 sales bases nationwide) Improvement in the product mix Building a logistics network Innovation in containers

Green Tea Beverage Market 2018 Developing New Fan Base

（¥ billion)

500 90% 447.0 435.0 440.0 445.0 447.0 421.0 415.0 415.0 80% 409.3 402.0 405.0 401.0 382.0 375.0 375.0 383.0 400 70%

309.4 60% 300 268.5 279.2 ITO伊藤園シェア EN Share 50% 217.1 37% 39% 38% 37% 34% 36% 35% 35% 35% 34% 35% 31% 33% 32% 33% 33% 40% 200 31% 28% 29% 29% 30%

100 20% 伊藤園ITO EN 10%

0 0% Hot sales of Oi Ocha Shin-Ryoku '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Est. particularly among young women Source: ITO EN, Calendar year Unchanged value of tea + new added value （million cases) 10,000 Oi Ocha was the best-selling brand in the RTD green tea category in the Heisei era.

8,000 RTD tea has become a more familiar drink.

6,000

4,000 Launched the world’s first PET bottled RTD green tea drink in 1990. 2,000 Created and developed the sugar-free beverages market

‘89 ‘00 ‘10 ‘18 0

World sales record No. 1 Green tea beverage

Oi Ocha Brand Recognized by Guinness World Records Official name of record: Largest NH RTD green tea brand (retail RSP, current) Record-setting brand: Oi Ocha(*1) Target period: January–December, 2018 Certified sales figure: $1,966,800,000 (estimated)(*2)

(*1) Excluding Oi Ocha Hojicha products. (*2) Based on global third-party survey data.

Show functionality to reduce body fat A bottle that fits with the times

Foods with Function Claims Oi Ocha in a new small bottle Oi Ocha strong green tea will be launched has been launched. in the fall of this year. 7.2in ・Cumulative unit sales have exceeded 3.5 billion. The size makes the new ・Double in Healthy Catechin product easier to hold and to 6.5in put into a bag.

Job creation, regional development, Cultural preservation, culture creation environmental conservation

Dai-Cha-Kai Development Program of Tea-growing Area

New Haiku Contest

“Making Japan Beautiful through Tea” Project etc Proposal of added value, joint undertaking Dissemination of tea culture

Green Tea Leaf Product Market Trends in demand for green tea leaves at home Transition of Sales (Amount) As Compared with 2015 Sales 348.2 (¥ billion) 10% 288.6 25% +9% 300 ITOEN 241.6 236.8 234.3 20% 8% 231.4 Market 200 ITO EN Share 15% 6% 10% 100 11% 4% ITOEN Share 9% 10% 11% 5% 6% 8% 25% 0 0% 2% '05 '10 '15 '16 '17 '18 0% (¥ billion) Easy-to-Use Green Tea Product Market 28.4 29.3 '15 '16 '17 '18 30 25.9 68%69%70% -2% 25.0 64%65%66%67% 60%61%62%63% 56%57%58%59% 52%53%54%55% -4% 18.3 48%49%50%51% 20 44%45%46%47% 40%41%42%43% 13.2 36%37%38%39% 46% 48% 32%33%34%35% -6% 44% 50% 28%29%30%31% 38% 24%25%26%27% Proposal of cold brew green tea 10 20%21%22%23% 16%17%18%19% 27% 12%13%14%15% Establishment of the Japanese ITO EN Share 8%9%10%11% 4%5%6%7% 0 0%1%2%3% Green Tea Day '05 '10 '15 '16 '17 '18 Source: ITO EN, Market: Calendar year ITO EN: May to Apr Source: ITO EN, Market: Calendar year ITO EN: May to Apr Advantages of ITO EN Matcha

（tons) ITO EN production at contract Increased twofold in three years 1,600 cultivation farms 1380 1,400 1,200 1120 1,000 890 800 620 540 600 450 330 400 The contract cultivation of matcha 200 started in 2010 0 Processing technology by purpose or use '15 '16 '17 '18 '19 Est '20 Est '21 Est Copyright (C) All Rights Reserved. ITO EN, LTD. 9 Barley Tea & Vegetable Juice

Aojiru (Green Juice) market grew 30% RTD Barley Tea Market over seven years

RTD Barley Tea Market Healthy Mineral Barley Tea ITO EN Aojiru market （If the 2012 is 100） (¥ million) (¥ billon) (million cases) 5,000 ITO EN’s Aojiru products increased 150% 120 The RTD barley tea 100-fold over seven years. 50 market grew for ten 102.5 4,000 140% 100 consecutive years. 89.5 40 80.0 80 71.0 3,000 130% 63.0 30 60 51.0 45.5 Ratio of RTD barley tea to total 2,000 120% 39.5 barley tea consumption 35.5 20 40 31.2 32.2 15.1% 1,000 Gokugokunomeru Mainichi-ippai-no 110% 10 20 Ratio of RTD barley tea to total (a bottle a day) Aojiru barley tea consumption 4.3% Year on year About 3 times 0 0 0 100% '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '12 '13 '14 '15 '16 '17 '18

Source: ITO EN, Market: Calendar year ITO EN: May to Apr Source: ITO EN, Market: Calendar year ITO EN: May to Apr Taking in water and minerals at the Taking in Aojiru easily anywhere, anytime, every day same time Comparison of the Aojiru market in 2018 with the market five years ago by business category Sales at stores＋４３％ Online sales＋１６％

Tully's Coffee Japan Co., Ltd. Business Tully’s Coffee sales and the RTD coffee market Overview

（million cases） Tully's Coffee sales (¥ billion) (Shops) 18 100% 40 36.3 RTD coffee market （If the 2012 is 100） 34.5 32.5 1,000 15 35 30.2 27.7 30 26.0 12 98% 23.8 750 25 21.0 735 760 9 20 706 638 671 500 555 588 6 96% 15 513 3 10 250 5 0 94% 0 0 '07 '09 '11 '13 '15 '17 '18 '13/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 '20/4 Source: ITO EN, Market: Calendar year ITO EN: May to Apr Est. Synergy between ITO EN and Tully’s Coffee Japan RTD coffee having the quality of Tully’s Coffee Japan is implementing a unique coffee served at shops policy to increase the number of customers

Roasted and crushed coffee beans are wrapped with aluminum foil Development of black tea products, including fruit tea High quality coffee beans and transported and stored, and the flavor is maintained. Tully’s Coffee & Tea, a concept shop, opens. ※Excluding SOT cans Copyright (C) All Rights Reserved. ITO EN, LTD. 11 To Become a Health Creation Company

Increase in health consciousness ITO EN International Forum held on Thursday, May 23

Soft Drink market in japan Ratio of sugar-free beverages 49% in 2018 ITO EN’s sugar-free beverages in 2018 74% Keynote speech was “Why do tea ceremony teachers look young.” How to live an enriched life by drinking tea in the age of centenarians was discussed. Supporting healthy lives

Vegetables dietary education at harvest festivals

Support for healthy sports as fun Proposing the installation of vending Proposing recipes including vegetable beverages machines emphasizing health value Copyright (C) All Rights Reserved. ITO EN, LTD. 12 Global Business Strategy ①

Overseas branding strategy Sales of Oi Ocha overseas (by area)

(million cases) Developing global brands Oi Ocha is sold in more ASEAN・Australia than 30 countries. NorthAmerica 〇Oi Ocha 〇MATCHA GREEN TEA 3 EastAsia and others

Strengthening of Sales of 2 Tea Leaf Products 1 Developing products according to the characteristics of each area 0 '15 '16 '17 '18 '19Est

Local food strategy in Australia Strategy to strengthen online sales in China

100% (A$ thousand) Australion Online sales in 2018 are ($ billion) China online market tea leaves 1,600 Australian production five times about five times 20,000 Ratio of ITO EN’s online sales 50.0% “Oi Ocha” other countries as much as those in 2015. 15,267 1,200 16,000 40.0% 11,153 800 12,000 30.0% 7,500 6,720 400 8,000 20.0%

4,000 10.0% 0 '15 '16 '17 '18 '19 Est 5,086 0 0.0% ~A teabag factory will be operated in 2020~ '15 '16 '17 '18 '19 Est Source: ITO EN, Market: Calendar year ITO EN: May to Apr Copyright (C) All Rights Reserved. ITO EN, LTD. 13 Global Business Strategy ②

Global Tea Market (Leaf ) Transition of MATCHA GREEN TEA Sales Overseas ($ million) +5.9% +4% on EastAsia ASEAN・Australia NorthAmerica on average up to 10,930 (thousand cases) 12,000 average from 2023 2016 to 2018 200 +28% 180 10,000 8,200 on average from 2016 to 2019 8,000 7,580 150 6,000 90 100 4,000 50 2,000 0 0 Source: ITO EN '16 '17 '18 '19Est '20Est '21Est '22Est '23Est '16 '17 '18 '19計画

Matcha Is Becoming More and More Popular in the World

Recognition of matcha in the U.S. Value of ITO EN matcha products Ⅰ. Impressions of matcha given by Color 60% matcha product packages and Antioxidation 48% matcha advertisements Organic 35% Flavor 30% Culture 24%

Others 13% Respondent: 141 people →The bright green color of matcha is impressive and appeals to health-conscious people. The bright green color Ⅱ. The attractiveness Easy to drink Japanese Health effects 67% of Japanese matcha tea Japanese culure & history 54% ITO EN matcha sales in the world（2018） Rich Flavor 48% Traditionalism 46% Japan Others Organic 45% US Respondent: 140 people Others 70 Approximately 25% of ITO →The appeal of Japanese matcha consists in health effects, tea 450 170 （tons） US culture, and history. EN consumption, 620 tons, is 100 Source: Japan Tea Export Council sold overseas. Copyright (C) All Rights Reserved. ITO EN, LTD. 14 Towards a "Global Tea Company

Managing principle at all Group companies "Always Putting the Customer First"

～Strategies for sustainable growth to become a Global Tea Company～

To be established as a comprehensive Health creation company beverages manufacture that supports enriched lives #.1 market shares both in Domestic and Global Green Tea Markets 1. Strengthen the Brand and Develop New Brands 2. Increase Customers and Improving Profitability 3. Challenge for New Businesses Sales of sugar-free beverages "Skilled Professional on account for 74% of sales of ITO EN TEA TASTER " . all beverages Strengthening ROE Management Promoting sustainability management ・Improvement of Profitability and Capital Efficiency ・Enhancement of Governance ・Growth in EPS (November 2018 Setting up a Nominating ・Stable return to Stockholders and Compensation Committee) ・Further effort of CSR/CSV Issues ・Correspondence to ESG ・Establishment of a high value-adding model

Concept for Management principle Corporate History Product Development "Always Putting 1964 Founded Nihon Family Service.Ltd, ITO EN’s predecessor Natural 1966 Established ITO EN,LTD the Customer First" Products that make 1980 Launches the world’s first sugar-free Canned Oolong Tea use of natural 1985 Launches the world’s first RTD green tea, Canned Green Tea. ingredients 1989 The Oi Ocha brand is created Delicious Healthy 1990 Releases the world’s first PET bottled green tea drinks Delicious flavors Products that ("Oi Ocha" Green Tea, 1.5L) that make people support a healthy 1996 Launches the industry’s first small PET bottled RTD tea (500 ml) feel happy life 1998 Stock advanced to the First Section of the Tokyo Stock Exchange 2001 Established ITO EN (North America) INC. Well- 2006 Tully's Coffee Japan Co., Ltd., into a consolidated subsidiary Safe 2007 Class 1 Preferred Stock listed on the First Section of the Tokyo Stock Exchange designed Products that people 2011 Chichiyasu Company, into a consolidated subsidiary Designs that directly can enjoy with 2015 Distant Lands Trading Co. company became a consolidated subsidiary convey the delicious complete peace of Beginning the Worldwide Expansion of the Global Brand flavors of our mind and safety products 2016 " Matcha Ko Bo" (manufacturing factory of real Matcha Powder in ITO EN Shizuoka Sagara Factory), Kobe Factory (Hyogo Prefecture) Production System ■Leaves for green tea & coffee: Own Manufacturing System Pulverization Factory for Realization of High Quality Tea Leaves Factory ■Beverages: Fabricationless (about60factories,5 blocks) Matcha Powder Raw Material Mainly Raw Beverage Production to reduce capital expenditures and transportation cost Use Tea Leaf Processing Factory

Factory for Tea Bags Own Coffee Factory for Tea Bags Manufacturing Central Research Institute Manufacturing (ITO EN KANSAI CHAGYO in Hyogo) Roasting Factory (ITO EN SANGYO, LTD.)

Total Volume of Domestic Green Tea Leaf Production Development Program of Tea-growing Area

Total Domestic Tea Leaf Production ITO EN Consumption Production volume ITO EN Consumption Share (tons) Dimension of green tea farm (tons) 100,000 8,000 (ha) 6,937 100,000 89,300 50% 2,500 85,000 86,300 6,419 82,600 79,500 80,200 82,000 6,000 80,000 40% 5,405 2,000 4,371 27% 25% 25% 1,868 60,000 25% 23% 30% 1,500 21% 4,000 1,669 18% 2,600 1,401 40,000 15% 20% 1,226 Long-term target 1,000 2,000 2,000ha 20,000 10% 800 850 500 100% GAP certification 380 0 0% 0 0

Source: ITO EN '98 '00 '05 '10 '15 '16 '17 '18 '06 '11 '16 '17 '18 '19Est ※Including contract cultivation farms

To a sustainable agricultural model

Strengthening the contract cultivation of matcha Cultivating raw materials of aojiru in The area of contract cultivation farms will be the off-season of tea expanded twofold in the coming three years. Improving efficiency in farming

Spring Value provided to farmers Green ・Stable and sustainable farming Tea | ・creation of jobs Summer ・Reduction in production cost, the Winter shortening of work hours Barley Value provided to society Grass | ・Elimination of abandoned farmland Spring (local revitalization) ・Traceability Kagoshima, Kyoto Harvesting with the same Tea Harvester Copyright (C) All Rights Reserved. ITO EN, LTD. and Shizuoka Appendix 2 TOPIX

Brands Over 10 Million Cases Received the Golden Order of Merit from Japan （ Annual Sales Volume ） Red Cross Society

Caffeine-Free 100% Vegetable RTD Tea Bottle Can RTD Tea Juice Black coffee No.1 No.1 No.1 No.1

Received the Golden Order of Merit in the Japan Red Cross Society Annual Meeting held on May 22, 2019 * Source: ITO EN, Jan 2018 to Dec 2018 Environmentally conscious initiatives Develops a plant-derived filter and Developing a recyclable PET Establishing a recycling system of storing used will develop a plant-derived tea bag bottle using only recycled resin barley tea dregs with water at ordinary temperature, transporting them, and blending them with industrial products

Recycling approximately 20,000 tons of used barley tea dregs annually Launched in March 2019 100% biodegradable The launch of a recycled barley tea dregs materials “Yokuderu Tea Bag” product will be announced soon. Copyright (C) All Rights Reserved. ITO EN, LTD. Appendix 3 Related materials １

Consolidated Balance Sheet Consolidated Cash Flows (as of April 30, 2018 and 2019) (\ million) CF from Operating Activities CF from Investing Activities 2018 2019 Change (¥ million) Free CF ROE Current assets 170,838 177,449 6,611 35,000 10.5% Cash and deposits 61,664 63,738 2,074 9.9% 9.2% Accounts receivable-trade and inventories 96,792 100,170 3,378 9.0% 10% 25,000 Property, plant and equipment 84,822 84,186 -636 6.8% Land 21,745 22,335 590 15,000 30,085 Leased assets 24,010 19,389 -4,620 27,098 25,322 26,128 25,000 5% 21,935 18,854 Other 39,066 42,460 3,393 15,492 13,962 12,150 Intangible fixed assets 21,588 18,956 -2,632 5,000 Goodwill 16,364 14,729 -1,634 0% Investments and other assets 23,918 23,389 -528 -5,000

Total assets 301,167 303,981 2,814 -8,150 -8,243 -11,359 -10,635 Current liabilities 77,187 76,473 -714 -15,000 -12,850 -5% Accounts payable 29,879 30,181 302 (\ million) '16/4 '17/4 '18/4 '19/4 '20/4Est Short-term loans payable 2,020 2,020 0 Capital Investments 8,603 8,135 11,062 10,006 12,152

Lease obligations 7,002 5,051 -1,950 Depreciation Amortization 5,203 5,418 6,180 6,735 6,935

Income taxes payable 3,948 4,660 711 Leased Assets Depr. 10,872 7,052 7,042 6,675 6,170

Non-current liabilities 80,228 76,585 -3,643 Lease obligations (Repayment) -11,236 -10,361 -8,616 -6,514 -5,069 Corporate bonds 10,000 10,000 - Long-term loans payable 45,922 44,522 -1,400

Lease obligations 10,282 7,450 -2,831 ■Rating A+ ■Equity ratio Total liabilities 157,416 153,058 -4,358 ■Bond shelf registration \40 billion ■4/2018 47.3% Net assets 143,750 150,923 7,172 ■(straight bonds) ■4/2019 49.2%

①Net Sales &Net Income ②Overseas Business sales ratio ③Capital investments & Depr.&Amort

Net Sales US Business Capital Investments (¥ billion) (¥ billion) (¥ billion) Net Income Others Depr. & Amort. 25 40.0 Overseas Business sales ratio 12% Leased Assets Depr. 520 510.0 504.1 14 35.0 12.1 500 494.7 10% 20 12 10.9 11.0 10.8 11 475.8 30.0 8.2% 480 7.8% 7.6% 7.7% 10 465.5 7.3% 8% 10 25.0 8.6 460 15 8.1 8 7.0 7.0 437.7 14.4 20.0 6% 6.6 440 430.5 13.6 14.2 6.9 12.5 11.2 12 10 6 6.1 420 15.0 3.5% 4.8 6.7 403.9 2.9% 4% 3.7 6.1 8.6 5.4 400 10.0 4 5.2 7.2 5 4.2 4.5 2% 380 5.0 2

360 0 0.0 0% 0 '13/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 '20/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 '20/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 '20/4 Est. Est. Est.

④Sales composition by area ⑤Sales composition by Packaging ⑥Sales composition by Channels

Dividend(Common Stock) Others (¥) Dividend(Preferred Stock) 1% At 2019/4 At 2019/4 Total Return Ratio Cans 80 Cartons Others 72.3% 11% 80% 12% 16% 60 61.2% 54.3% Super 48.5%48.9% 60% Vending markets 42.6% 43.5% Machine 40 PET 42% 40% 15% PET (large) 48 49 50 50 50 50 50 50 32% 20 38 39 40 40 40 40 40 40 20% (small) 44% Convinience Stores 0 0% 27% '13/4 '14/4 '15/4 '16/4 '17/4 '18/4 '19/4 '20/4 予測 Copyright (C) All Rights Reserved. ITO EN, LTD. Appendix 65 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.