丸紅（8002） – Mid-Term Management Strategy(FYE 3/2023-FYE 3/2025) GC2024

Mid-Term Management StrategyFYE 3/2023-FYE 3/2025* F Y E : F i s c a l Y e a r E n d i n gOur ValueCompany Creed“Sei, Shin, Wa”(Fairness, Innovation, and Harmony) is the company creed since our foundation, and it stands as our enduring compass despite of the changes taking place around us.“正/Fairness”Act with fairness and integrity at all times“新/Innovation”Pursue creativity with enterprise and initiative“和/Harmony”Give and earn the respect of others through cooperationManagement PhilosophyIn accordance with the spirit grounded in “Fairness, Innovation, and Harmony”, the Marubeni Group is proudly committed to social and economic development and safeguarding the global environment by conducting fair and upright corporate activities.Our Visionof the FutureGlobal crossvalue platformcreating value through innovative solutions for our customers and for the worldCommitted to creating solutions for our customers and the world.2contentsReview of “GC2021”0102Financial TargetsReview of “GC2021”Mid-Term Management Strategy GC2024Business Policies/Improving Profitability0102030405060708Business EnvironmentBasic Policy of “GC2024”Green StrategyMarubeni Group HR StrategyFinancial TargetsCapital Allocation PolicyShareholder Returns PolicySupplement1: Approach to Green Business2: Growth Approach by business groups3Review of “GC2021”401Financial TargetsForecasted to Achieve Financial Targetscapturing higher commodity prices, on top of solid earningsConsolidated net profit(FYE 3/2022)CFCore operating CF(Three-year cumulative)FCF after shareholder distributions(Three-year cumulative)TargetForecast for FYE 3/2022¥300.0bn¥400.0bn¥1,200.0bn¥1,270.0bn¥+100.0bnor more¥+390.0bnNet DE ratioAround 0.7 times*Revised to around 1.0 in the “GC2021 Revision”Around 0.8 timesNew investmentsincluding CAPEX(Three-year cumulative)Approx. ¥900.0bnApprox. ¥810.0bnHorizon 1Horizon 2Horizon 3¥200.0bn¥500.0bn¥200.0bnHorizon 1Horizon 2Horizon 3¥290.0bn¥360.0bn¥50.0bnROE10％ or moreApprox. 23%※ Figures for Horizon 1,2,3 are the totals up to December 31, 2021.502Review of “GC2021”3 Years of Transformationto build a stronger foundation◼ Rebuilt and Strengthened Our Financial Foundation◼ Completed Asset Write-downs, Solidified Earnings Base. 2019 Reassessed the value of assets of concern and removed the risk of future impairment lossesAnnounced the “GC2021 Revision” and defined the rebuilding of our financial foundation as the primary goal2020 Accomplished a V-shaped recovery despite the COVID-19 pandemicProfit & Loss(FYE 3/2020 – FYE 3/2022)400.0223.3Net Profit(¥bn)400200Reached the net DE ratio target of around 1.0 times determined with “GC2021 Revision” a year ahead of scheduleFYE 3/2020FYE 3/2021Forecast forFYE 3/20222021 Set to record an all-time high in net profit by fortifyingexisting businesses-200Net DER-197.51.16times0.88timesAround0.8 timesROE30％20％10％0％-10％6Mid-Term Management StrategyGC2024701Business EnvironmentMaintaining the current long-term direction, keeping the focus on our corporate value toward 2030creating value through innovative solutions for our customers and for the world2019 (Launch of “GC2021”)2022 (Present)Major global trends toward 2030Concurrent opportunities and threats⚫ Millennial generation and changing values⚫ Technological innovation, digital transformation⚫ Geopolitical risks and complexity of international politics⚫ Transformation of industrial structures⚫ New business eco-systemsDiscontinuous changes and disruptions of existing business models will only accelerate. Awareness of uncertainties in the post-COVID 19 era is crucial⚫ Changes in lifestyles triggered by the pandemic⚫ Rapid expansion of digital technology⚫ End of ultra-easy monetary policy⚫ Weaker international cooperation and concerns over geopolitical risks⚫ Contribution to SDGs, rising demands for ESG management(Growing awareness of human rights, supply chains, bio-diversity, etc.)802Basic Policy of “GC2024“Putting Strategy into PracticeWhile maintaining and strengthening our financial foundation◼ Develop and establish a stable earnings base by strengthening current business domains and exploring new business models◼ Lead the transition to a Green economy, by expanding “Green business” and “Greening” in all business domainsHorizon 1Horizon 2Improvement ofPursuit of strategies in existing businessesexisting business domainsHorizon 3White SpaceNew business models and unapproached business domains Multi-layered approach to “Growth” to enhance corporate value903Green StrategyAspiring to become a Forerunner in Green Business*All DomainsPursuit to be “Greener”Green Businesses◼ Reducing negative impacts on the environment and contributing to the transition to a Circular Economy◼ Building sustainable supply chains through cooperation with business partners◼ Businesses essential for transition to a decarbonized society (natural gas, LNG, etc.)(Utilization of ICT, financially supporting sustainability businesses, supplying sustainable commodities, etc.)Expanding Green Businessbased on the current business base,which is already strong and profitableCreating new Green Businessthrough cross-sectional approaches and utilization of business connections Horizon 1&2Horizon 3DecarbonizationCircular EconomyWater ResourcesBio-DiversityRenewableEnergyForestryCopperAluminumDecentralized Power,Battery Storage, and Supply-Demand AdjustmentsNew EnergyDecarbonizationSolutionsAgri-InputsWaterInfrastructureRecycling of Materials and ResourcesEco-friendlyFood Products*Green Business：Sustainable businesses which have positive effects on the environment such as decarbonization and the circular economy, and adjacent businesses which supply those businesses with non-substitutable materials, etc. Also see supplement 1 for detailed descriptions1004Business Policies/Improving ProfitabilityBusiness Policies “SPP”Strategy“SPP”Strategy⚫ “Strategy-Focused”, closing the gap between our future vision and the present⚫ Exploiting dynamic value creation via digital transformation (“DX”)*Prime⚫ Taking the initiative to execute the strategy ⚫ Pursuing business through majority investment or mutually complementing partnerships, and proactively contributing to enhancing business valuePrimePlatformPlatform⚫ Value creation by utilizing and expanding Marubeni’s platform, combining a wide variety of internal and external expertise ⚫ Pursue platform type businesses that provide synergies and long-term growth*Please visit our website for the details of our DX strategy.https://www.marubeni.com/en/ir/reports/dx/Improving ProfitabilityReview of resultsImprovementplansBeginning of termPick up businesseswith low efficiency ratios Make short-list of businesses after considering individual improvement plansShort-listed businesses reviewed by corporate management committeeMonitoringCycleMiddle of termImplementing ROIC*1/CROIC*2・RORA*3 tomonitor capital efficiency and risk/return ratioImprovement in ROE through better asset quality*1 ROIC:*2 CROIC:*3 RORA:Return on Invested CapitalCash Return on Invested CapitalReturn on Risk Asset1105Marubeni Group HR Strategy“Marubeni HR Ecosystem”Promoting the growth and success of the Marubeni Group’s human capital, the critical source of our corporate valueHuman Capital with High Social Value⚫ Human capital that creates new value⚫ Highly regarded and essential to society and our customersMarubeni HREcosystemDiversity & Inclusion⚫ Leveraging diverse values⚫ Increasing value creation capabilities utilizing the strength of diverse individualsCulture of Active Participation and Connectivity⚫ Creating environments and workstyles for invigorating human capital⚫ Open innovation to bring together internal and external ideas◼ Mission-oriented HR SystemMerit-based and encourages a challenge mindset◼ Developing and Empowering Diversified Human CapitalOptimization of the working environment andstrengthening HR development◼ Talent Management CommitteePromotion of HR strategy lead by core membersof the executive team (CEO, CAO, CSO) 1206Financial TargetsConsolidated net profit(FYE 3/2025)¥400.0bnCore operating CF(Three-year cumulative)¥1,300.0bnPursuing long-term growth of corporate valueSustain and improve: ◼ cash generation◼ ROE◼ cost of equityROE15％Net DE ratio of around 0.7-0.8 times1307Capital Allocation PolicyWhile working to strengthen and enhance our financial foundation, the focus will be onGrowth and Shareholder Returns◼ Maximizing Core operating CF◼ Maintaining positive FCF after shareholder distributions(Three-year cumulative FCF, excluding effects from changes in working capital)Divestment¥200.0 bnFree Cash FlowAllocated to new investments, share buybacks or retained for future investment, etc.ShareholderDistributionsRefer to “08 Shareholder Returns Policy”Horizon 3¥100.0～200.0bnAppropriate Cash AllocationCoreOperating CF¥1,300.0bnNewInvestments,Capex¥1,000.0 bnMaximizeCore Operating CF◼ Investing in core businesses of the future.Targets to be rigorously selectedHorizon 2¥800.0～900.0bnHorizon 1◼ Enhancing the earnings base by selectively investing in areas with high profitability based on the company’s competitive advantagesFinancial Discipline: Net DE ratio target of around 0.7-0.8 times14基礎営業CF13,000億円回収2,000億円フリーキャッシュ新規投資CAPEX10,000億円ホライゾン3ホライゾン2ホライゾン1株主還元08Shareholder Returns PolicySet a dividend payment floor over the next three yearsFlexible share buybacks to be carried outDividendsShareBuybacks◼ Aim to increase dividends through profit growth, while maintaining a consolidated dividend payout ratio of 25% or more of consolidated net profit◼ Setting the annual dividend announced at the beginning of FYE 3/2023 as the minimum* through the GC2024 period◼ Targeting improved capital efficiency and performance per share, etc.◼ The timing and amount of buybacks to be determined considering the overall business environmentShareholder Returns ImageGC2021GC2024Consolidateddividend payoutratio: 25% or moreShare priceappreciationConsolidateddividend payoutratio: 25% or more(set a dividendpayment floor)FlexibleShareBuybacksShare priceappreciation*Actual dividends will be disclosed in May 2022, along with the profit forecast for FYE 3/202315Supplement 1: Approach to Green BusinessRenewable EnergyHorizon 1&2⚫ Expand the ratio of renewable energy to approx. 20% in 2023 as a core of the power generation business⚫ Retail and service business (storage, VPP, V2X, aggregation, etc.)Horizon 3New Energy⚫ Commercialize hydrogen, ammonia projects(production and transportation of green hydrogen, ammonia, etc.)⚫ Pursue business in jet fuels with low environmental Forestry⚫ Forest management and carbon credits through the Musi Pulp Project (Indonesia) and WA Plantation Resources (Australia)Copper, Aluminum*1⚫ Supplying copper for clean energy demands through the Chile operation⚫ Operation of Alouette aluminum smelter (Canada/Hydro-powered), pursue decarbonization of aluminum operations in Australia.burdensDecentralized power, battery storage, and supply-demand adjustments⚫ Promote decentralized power business worldwide⚫ Expand the battery storage business, including reusing and recycling of EV batteriesDecarbonization solutions⚫ Smart city and community-based ⚫ CCUS (CO2 collection, utilization utilities serviceand storage)⚫ Explore bio-methane, waste to energy business⚫ Transmission technology supporting renewable power⚫ Electrification of mobility service, EV related infrastructureAgri-Inputs*2Water infrastructureRecycling of materialsEco-friendly food products⚫ Contribute to efficient ⚫ Expand water and wastewater services, and the seawater desalination business⚫ Circular supply chain utilizing textile recycling technology⚫ Marketing of plant-based protein ⚫ Pursue plastic reduction ⚫ Land-based recirculating salmon productsaquaculture(biodegradables, etc.), and recycling of plastics and tiresand sustainable agriculture through Helena’s (USA) and Gavilon’s (USA) operations*1 Contributing to decarbonization by supplying critical minerals used for EVs and other clean technologies*2 Contributing to climate change measures and protection of biodiversity by supporting efficiency of land use in agriculture16Supplement 2: Growth approach by business groups (1/3)Consumer Products GroupLifestyle Div.ICT Business & Logistics Div.Food Div.-ⅠFood Div.-ⅡAgri Business Div.Adapting to the diversification of consumers’ lifestyle and demandsHorizon 1&2⚫ Apparel OEM/ODM⚫ D2C sales, brand marketing⚫ Tire retailing business⚫ Digital transformation solutions and cloud computing⚫ Telecommunications, mobile and network business⚫ Digital SCM business⚫ Specialty food products marketing⚫ Grain and premium beef and poultry products business⚫ Agri-input businessHorizon 3⚫ Circular supply-chain for textiles⚫ Digital platform business⚫ Environmentally-friendly food business(plant-based meat, Land-based recirculating aquaculture)⚫ Agricultural land development businessMaterials GroupForest Products Div.Chemicals Div.Metals & Mineral Resources Div.Providing solutions for demands related to decarbonization and the circular economyHorizon 1&2⚫ Copper and iron ore mining⚫ Forestry plantation business⚫ Life science business⚫ Commodity trade⚫ Containerboard manufacturing⚫ Hygiene product manufacturing⚫ Wood pellet production⚫ Electronic chemicalsHorizon 3⚫ CNF, bio-refineries⚫ Circular economy materials business⚫ Digital health17Supplement 2: Growth approach by business groups (2/3)Energy & Infrastructure Solution Group Energy Div.Power Div.Infrastructure Project Div.Creating a sustainable energy and infrastructure business in the decarbonized societyHorizon 1&2⚫ IPP business, centered around renewable energy⚫ Power retail, decentralized power service⚫ Social infrastructure business (water, gas, transportation, etc)⚫ Waste recycling and utilization⚫ Energy supply chain, supporting the transition to “Net-Zero”⚫ Energy trading and marketingHorizon 3⚫ New energy (hydrogen, ammonia, biofuels etc.)⚫ Smart city and community-based utilities service⚫ Energy management business, supply-demand ⚫ Supplying decentralized energy in developing adjustmentscountries⚫ CO2 related business, CCS/CCUSTransportation & Industrial Machinery,Financial Business GroupAerospace & Ship Div. Finance, Leasing &Real Estate Business Div.Construction, Industrial Machinery & Mobility Div.Supporting the evolution of society through mobility and the financing business Horizon 1&2⚫ Aviation-related business⚫ Fleet management of merchant ships and liquefied gas carriers⚫ Housing development/sales and asset management⚫ Finance and leasing, fundsHorizon 3⚫ Distributor/rental business for construction and mining equipment⚫ Space and air mobility projects⚫ Autonomous projects of airport vehicle ⚫ Automotive sales and after-sales and shipservice business⚫ Industrial machinery and electronic components supply business⚫ Fintech and alternative financing services⚫ Mobility service businesses (EV/battery management)18Supplement 2: Growth approach by business groups (3/3)CDIO (Chief Digital Innovation Officer)Next Generation Business DevelopmentDiv.Next Generation Corporate Development Div.Taking a step further to develop the next generation consumer businessHorizon 3⚫ Next generation consumer business（Esports, media, consumer goods & services）⚫ Wellness business (beauty, education)⚫ Pharmaceuticals, medical devices and services⚫ Smart city, smart infrastructure business⚫ Decarbonization related technology, offshore DX, blockchain⚫ CVC, investment in start-up opportunities19Disclaimer Regarding Forward Looking StatementsThis material contains forward-looking statements about the future performance, events or management plans of Marubeni Corporation and its Group companies (the Company) based on the available information, certain assumptions and expectations at the point of disclosure, of which many are beyond the Company’s control. These are subject to a number of risks, uncertainties and factors, including, but not limited to, economic and financial conditions, factors that may affect the level of demand and financial performance of the major industries and customers we serve, interest rates and currency fluctuations, availability and cost of funding, fluctuations in commodity and materials prices, political turmoil in certain countries and regions, litigation claims, changes in laws, regulations and tax rules, and other factors. Actual results, performances and achievements may differ materially from those described explicitly or implicitly in the relevant forward-looking statements.The Company has no responsibility for any possible damages arising from the use of information on this material, nor does the Company have any obligation to update these statements, information, future events or otherwise. This material is an English language translation of the materials originally written in Japanese. In case of discrepancies, the Japanese version is authoritative and universally valid.