Second Quarter Financial Resultsfor the Fiscal Year Ending April 30, 2012

～　Strengthen basis for the consistent growth　～

December 2011ITO EN, LTD.

　 Index

Beverage Market in Japan Results of Operations (First Half Totals) Annual Forecasts Point of Medium-Term Management Plan Category Results (Non-consolidated) Category: RTD Japanese Tea and Chinese Tea Category: RTD Black Tea and Coffee Category: Vegetable and Dairy Products Beverage Category: Tea Leaf TULLY'S COFFEE and ITO EN (North America) INC. Overseas Businesses and Group Management Medium and Long-Term Management Plan Other Topics

1. 2. 3. 4. 5. 6. 7. 8. 9.10.11.12.13.

1. Developing Tea Farms Business & Eco-Friendly Plastic Bottles2. Sales Results and by Packaging (Non-Consolidated)3. Summary of Consolidated Balance Sheet & Other Date4. Key Management Indexes & Cash Flows (Consolidated)

（Appendix）

95

146

4

151

7496

214

117

244 235

120

55

0.9℃

-1.9℃

-1.0℃

-0.5℃-0.7℃

-2.1℃

0.6℃

-0.8℃

0.0℃

2.1℃

0.5℃

0.0℃

-2.5℃

-1.5℃

-0.5℃

0.5℃

1.5℃

2.5℃

3.5℃

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Monthly ave.temp changefrom prev. yr(℃)

-250

-150

-50

50

150

250

350

Precipitation(mm)

Monthlyprecipitation

217.1421.0 415.0 402.0 382.0 375.0 375.0 377.0

620.5

956.6 966.2 962.0

184.5 156.2 146.8 151.3 156.0

359.6 312.2 292.2 290.0

206.6211.3

210.2 245.8 233.5

282.0288.9

292.3 266.0 265.0

176.2 165.5 167.3 167.3

85.2

648.9581.9 603.3555.9 592.0 643.4 611.2

922.3 948.2 969.1 952.4 960.0

144.4145.6

190.0

324.2379.6

305.6447.4

214.097.7 219.2

265.9260.1

259.6

183.9159.3222.0

183.6

0

1,000

2,000

3,000

4,000

1981 1985 1990 1995 2000 2006 2007 2008 2009 2010 2011Est.

2012Forecast

(\ billion)

Market Trend(sales basis)

Average Monthly Temperatures andPrecipitation (Tokyo area)

4.0%

7.1% 7.5%

4.8%

18.2%

6.2% 6.1%

-3.1%1.0%

3.0%

2.0%

2.5%

-5.0%

1.0%

-3.0%

-6.0%

3.0%3.0%

5.0%

0.7%

-11.6%

0.3%3.2%

1.7%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

(YOY %)

Monthly Sales Trends(volume basis)

Market

ITO EN

923.4 910.5918.2

Source: Japan Meteorological Agency, Nov 2010 to Oct 2011

870.1

796.4

885.0 885.0

1. Beverage Market in Japan

Green Tea

Tea(including green tea)

Carbonated

Coffee

Vegetable

Fruit

Mineral Water

Others/Functional

Sports Drink

Pioneering of

Canned Green Tea

Pioneering of

Canned Oolong

Tea

Source: ITO EN, Market (calendar year), ITO EN (May to Apr)Note: Market size of tea includes green tea. Source: ITO EN, Nov 2010 to Oct 2011

chart①

chart③

Market

ITO EN(Non-consolidated)

chart②

1,424.8 2,707.51,883.9 3,100.2 3,540.3 3,631.5 3,715.6 3,616.0 3,527.7 3,607.8 3,590.1

11.3 52.822.7 105.6 190.2 297.8 308.6 312.6 312.7 329.6

3,573.0

329.7

890.0

- 1 -

　

（\ million） ■Performances of Subsidiaries （\ million）

SalesComposition

SalesComposition

YOY %Change

Net SalesOperatingIncome

194,581 100.0% 200,954 100.0% 3.3%2,635(2,819)

258(265)

94,569 48.6% 94,690 47.1% 0.1%$ 33,513 thousand($ 32,345 thousand)

$ 3,304 thousand($ 3,056 thousand)

27,337 14.0% 29,693 14.8% 8.6%8,630(7,700)

1,032(642)

5,674 2.9% 6,307 3.1% 11.1%5,480(6,991)

83(-22)

9,084 4.7% 4,758 2.4% -47.6%22,311(20,618)

567(634)

3,574 1.8% 4,450 2.2% 24.5%790(906)

-35(-14)

82,416 42.4% 81,513 40.6% -1.1%-22,276(-20,780)

-597(-417)

12,153 6.2% 13,176 6.6% 8.4%※（　） is FYE April 30, 2011

11,212 5.8% 12,468 6.2% 11.2%

-485 - -160 -　 -　

5,927 3.0% 7,014 3.5% 18.3%

0

183,316 100.0% 183,384 100.0% 0.0% 0.4

86,810 47.4% 84,575 46.1% -2.6% 0.6

11,042 6.0% 11,868 6.5% 7.5% 1.0

10,578 5.8% 11,861 6.5% 12.1% -4.2

Extraordinary Expensesand Income

Non-Consolidated

　Net Income

　Net Sales

　Gross Profit

　Operating Income

　Ordinary Income

　Operating Income

Transportation

Chichiyasu Company

For the Year EndingApr. 30, 2012For the Year Ended

Apr. 30, 2011For the Year EndingApr. 30, 2012

Domestic Subsidiaries

Consolidated

Selling Commission

For the YearEnding

Apr. 30, 2012

Elimination of InternalTransactions

■Breakdown of Gross Profit Change(Non-Consolidated)

ITO EN (North America) INC.

Tully's CoffeeJapan Co., Ltd

Sales Changes

Other Subsidiaries

　Net Sales

Gross Profit

Changes in AccountingPresentation(Transportation)

Changes in ProductMix

Fluctuations inSales Prices

Fluctuations in RawMaterial Costs

Advertising

Depreciation andAmortization

　Ordinary Income

Selling, General andAdministrative Expenses

2. Results of Operations (First Half Totals)

(\ billion)

※

※Transportation costfrom productioin plantto own warehouse hasbeen changed to thecategory of cost pricefrom selling expenses

- 2 -

　

（\ million） ■Forecasts of Subsidiaries （\ million）

SalesComposition

SalesComposition

YOY %Change

Net SalesOperatingIncome

351,692 100.0% 364,600 100.0% 3.7%5,394(5,405)

389(334)

173,699 49.4% 171,756 47.1% -1.1%$ 69,460 thousand($ 63,619 thousand)

$ 5,006 thousand($ 3,894 thousand)

50,215 14.3% 51,800 14.2% 3.2%17,200(15,336)

1,700(1,212)

10,120 2.9% 12,010 3.3% 18.7%10,980(12,993)

100(-21)

16,049 4.6% 9,000 2.5% -43.9%39,009(37,342)

1,118(1,206)

7,648 2.2% 9,688 2.7% 26.7%1,794(1,902)

0(-10)

156,020 44.4% 153,756 42.2% -1.5%-39,478(-37,927)

-977(-712)

17,679 5.0% 18,000 4.9% 1.8%※（　） is FYE April 30, 2011

16,526 4.7% 17,000 4.7% 2.9%

-1,653 -　 -690 -　 -　

7,675 2.2% 8,000 2.2% 4.2%

8.1 0

329,631 100.0% 329,700 100.0% 0.0% -0.9 0.4

158,300 48.0% 152,754 46.3% -3.5% -3.0 0.7

15,648 4.7% 15,600 4.7% -0.3% 4.5 1.3

14,896 4.5% 15,100 4.6% 1.4% 0 -8.0

For the Year EndingApr. 30, 2012 Est.

ITO EN (North America)

INC.

Tully's CoffeeJapan Co., Ltd

Sales Changes

For the YearEnding

Apr. 30, 2012Est.

■Breakdown of Gross Profit Change(Non-Consolidated)

Consolidated

Selling Commission

Advertising

Depreciation andAmortization

　Ordinary IncomeExtraordinary Expenses

and Income

Selling, General andAdministrative Expenses

　Net Sales

Gross Profit

　Operating Income

Transportation

Chichiyasu Company

For the YearEnded

Apr. 30, 2011

Elimination of InternalTransactions

　Net Income

For the Year EndedApr. 30, 2011

For the Year EndingApr. 30, 2012 Est.

Domestic Subsidiaries

Other Subsidiaries

Non-Consolidated

　Ordinary Income

Fluctuations in RawMaterial Costs

　Net Sales

　Gross Profit

　Operating IncomeChanges in Accounting

Presentation(Transportation)

Changes in ProductMix

Fluctuations inSales Prices

3. Annual Forecasts

(\ billion)

Loss on veluation of investment securities　1,009Disaster loss　 386

Major extraordinary losses;

- 3 -

　　　　・Under the reaction against the extreme summer heat effects, progress in the 1st half went well → Improve the profitability in the 2nd half　　　　・Apparentness of synergies among group → Increase in defference between consolidation and ITO EN, non-consolidation

FYE 2012/4 \18.0 billion

FYE 2011/4 \17.6 billion

Depr. and Amort.

Investment onSoftware

Capital Investments

3,872

2,330 3,5213,4293,1612,687

Leased Assets Depr.

1,852

7,485- 1,600 5,582

7,7797,085 2,804 1,868

　Consolidated Operating Income

3192,0343,5122,706 228

■Innovative changes to the high profits company *Complete cost reduction *Improve productivity and cost competitiveness *Improve profitability on subsidiaries and generate synergetic effects among the group

■Drastic buildup of existing fields

　Product Marketing Strategies *Strengthen distribution of Oi Ocha & Tennen Mineral Mugicha (Natural mineral barley tea) *Further brand-building of TEAS' TEA & TULLY'S COFFEE *Enhance suggestion for paper packaged & chilled products

Sales & Distribution Basis *Acquire new customers *Expand distribution and strengthen ties with existing customers *Strengthen field-marketing strategies *Strengthen vending machine-marketing strategies *Strengthen area-marketing strategies

■Challenge towards the new growth　 *Expand ITO EN (North America) business and improve its profitability *Challenge to business in Asia *Launch dairy products-related business

4,945 5,350

17,191

-7,222 -6,569

-9,221

19,714 20,860

-14,167

-2,133

-8,690

-1,871

12,17017,581

10,621

-20,000

-10,000

0

10,000

20,000

'08/4 '09/4 '10/4 '11/4 '12/4 Est.

(\ million) CF from operating activities

CF from investing activities

Free CF

Consolidated Cash Flowchart②

4. Point of Medium-Term Management Plan

Management Strategies Medium-Term Management Planchart①

1st half\ 12.1 billion

Subsidiaries, etc.\ 1.1 billion

2nd half\ 5.5 billion

1st half\ 12.4billion

Subsidiaries, etc.　　 \ 1.3 billion

2nd half\ 4.8 billion

FYE 2013/4

FYE 2014/4

ConsolidatedOperatingIncome

\ 23.0 billion

Take advantage of organizational power to change a severe situation into the chance

Improvable2nd half

- 4 -

　

（\ million）

For the Year EndedApr. 30, 2010

For the Year EndedApr. 30, 2011

For the Year EndingApr. 30, 2012

YOY %Change

SalesComposition

YOY %Change

SalesComposition

YOY %Change

SalesComposition

171,045 169,357 -1.0% 100.0% 183,316 8.2% 100.0% 183,384 0.0% 100.0%

13,693 13,848 1.1% 8.2% 14,437 4.3% 7.9% 13,535 -6.2% 7.4%

155,405 153,611 -1.2% 90.7% 166,845 8.6% 91.0% 167,795 0.6% 91.5%

1,946 1,897 -2.5% 1.1% 2,033 7.1% 1.1% 2,052 0.9% 1.1%

91,259 90,462 -0.9% 53.4% 92,119 1.8% 50.3% 93,915 1.9% 51.2%

7,525 7,591 0.9% 4.5% 9,549 25.8% 5.2% 8,564 -10.3% 4.7%

19,666 18,900 -3.9% 11.2% 21,023 11.2% 11.5% 22,182 5.5% 12.1%

10,588 8,194 -22.6% 4.8% 8,567 4.5% 4.7% 7,553 -11.8% 4.1%

8,770 9,514 8.5% 5.6% 11,100 16.7% 6.1% 11,635 4.8% 6.3%

3,007 4,475 48.8% 2.6% 7,921 77.0% 4.3% 8,486 7.1% 4.6%

4,024 3,321 -17.5% 2.0% 3,470 4.5% 1.9% 4,128 19.0% 2.3%

6,699 5,953 -11.1% 3.5% 7,383 24.0% 4.0% 5,126 -30.6% 2.8%

3,864 5,198 34.5% 3.1% 5,709 9.8% 3.1% 6,201 8.6% 3.4%

For the YearEnded

Apr. 30, 2009

　Net Sales

　Tea Leaves

　Drinks

　Others

First Half Total （May to October）

　Vegetable

Breakdown of Drinks

　Fruit

　Coffee

　Black Tea

　Functional

　Mineral Water

　Others

　Japanese Tea

　Chinese Tea

5. Category Results (First Half Totals, Non-Consolidated)

- 5 -

　　　　 　　　　

　

The first RTD oolong tea with double healthclaims

Easy to drink with mild taste

Drink with strong taste-meals or Nabe

Extend product line forbecoming a standard item

■Oi Ocha Winter Green Tea-deep green-

1%

-2%-6%

-3%

5%

-2%

0%4%

0%

-5%

0%

7%

0%

-3%-2% -4%

-20%

-1%-4%

-9%-8%

15%

46%44%45%46%

48%49%

56%

45%48%

46% 47%

48%46%

48%49%

46%46%

54%

48% 48%

46%

48%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Total

217.1

268.5 279.2309.4

409.3

447.0421.0 415.0

402.0382.0 375.0 375.0 377.0

66.3 75.8 87.5101.8

119.3 130.3135.8 143.0 144.8 142.7 145.0 141.6 146.0

9.6%12.5% 13.2%

14.8%

18.7%20.5% 20.1% 20.4% 20.5% 20.7% 21.2% 21.3%

21.5%

0

100

200

300

400

500

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11Est.

'12Forecast

(\ billion)

0%

10%

20%

30%

40%

50%

RTD BeverageRatio

ITO EN

RTD Green Tea Market(sales basis)

Sales & ITO EN Share in RTD Green TeaMarket (in top 7 companies, volume basis)

2011ITO ENShare

2010ITO ENShareRTD Green

Tea

ITO ENYOY %

MarketYOY %

RTD Green Tea Brand Strategy

6. Category: RTD Japanese Tea and Chinese Tea

RTD Chinese Tea Brand Strategy

Source: ITO EN, May to Apr 2011Source: ITO EN, Calendar year

chart① chart②

Dec. 5\ 140（tax excluded）

Nov. 7\ 160（tax excluded）

Dec. 5\ 160（tax excluded）

■Catechin Oolong Tea -double functions-

■HOT Catechin Green Tea -double functions-

Used rich taste of deepsteamed green tea

Finished with low heatsteaming for fresh-greentea aroma and naturalliquid color

Low-caffeine

Develop hot drink for becominga standard item

The first RTD green tea withdouble functions as a"Food for Specified Health Uses"

Can be continued daily andease of drinking as well ashot drink "Food for Specified Health Uses"

Consumer Affairs Agency,Government of Japan

31 28 31 33 29 29 32 34 36 37 39 38Share (％) 39

- 6 -

194.5 195.0

218.0 222.6 223.3

5.3% 7.2% 7.5% 8.0%

2.9%0

50

100

150

200

250

'08 '09 '10 '11Est.

'12Forecast

RTD Coffee Brand Strategy

RTD Black Tea Market（sales basis）

Source: ITO EN

(\ billion)

RTD Black Tea Brand Strategy

7. Category: RTD Black Tea and Coffee

RTD Coffee Market（sales basis)

969.0 966.0 952.4 962.0 960.0

2.0% 2.2% 2.6% 2.7% 2.8%

0

200

400

600

800

1,000

'08 '09 '10 '11Est.

'12Forecast

(\ billion)

Blend

Less sweetened

Café au lait

Black

Long-termTarget10％

ITO EN shareITO EN share

Long-termTarget20％

Source: ITO EN

chart① chart②

Oct. 24\124（tax excluded）

Nov. 21\124（tax excluded）

Dec. 12\140（tax excluded）

Reduced caffeine by 90％

Sweet peach flavor

Mild taste of relaxation tea

Rich taste tea with50% of Milk

Deeply brewed black teawith milk

■TULLY'S COFFEE Less-sugar Forte Cappuccino

■TEAS'　TEA　 　Peach Tea

■TEAS'　TEA　MILK50％　 　ROYAL　MILK TEA

■TULLY'S COFFEE become regular products

Straight

w/ Milk

Lemon

Flavor

Sugar-free

　　「Aromatic Blue」 「Rich Red」

Nov. 7\115（tax excluded）

- 7 -

　　　　 　　　　

39.6 37.3 43.365.5 69.5 60.0 60.9 56.1 59.2 62.8 67.0

129.6122.8

134.2

159.2

184.5190.0

156.2144.4 146.8 151.3 156.0

19.3%22.4% 23.7% 23.0%

20.6% 22.6% 23.8% 26.0% 27.2% 28.2%

17.7%

0

50

100

150

200

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11Est.

'12Forecast

(\ billion)

Vegetable100%

Fruit Mix

ITO EN share

Dairy Beverage Brand StrategyVegetable Beverage Brand Strategy

8. Category: Vegetable Beverage and New Category

Dairy Products Beverage Market（sales basis）

Vegetable Beverage Market（sales basis）

Source: ITO ENSource: ITO EN

chart① chart②

92.6 92.8 92.2

95.0 94.596.1

82.5% 83.7% 84.4% 85.5% 84.0% 84.0%

70

80

90

100

'07 '08 '09 '10 '11Est.

'12Forecast

（\billion）

■Further expansion of carton products line

Develop 4 items for regular typesand less sugar & less fat

Contained 100 billions of lacticacid bacteriaPerfect for drink in the morning

Introduce actively on vendingmachines and stations, etc.

Reliability of Jujitsu-yasai sold for 20 yearsStrengthen sales for expansion of selling spaces

in top 2companies share

excluded diluted use

Nov. 7\ 140

Nov. 7\ 115

Nov. 7\ 100（tax excluded）

■Asa no Yoo (the morning yoghurt) Collaborative development with Chichiyasu

- 8 -

　

411.3392.7

382.3 376.4 373.8

6.9% 7.4% 7.8% 7.5% 7.8%

0

100

200

300

400

'08 '09 '10 '11Est.

'12Forecast

（\billion）

9.　Category: Tea Leaves

Popular deep steamed green tea withmainly 100% of first flushed leaves

Improved the Post-Roasting methodfor fine aroma, deep green color, andflavorful green tea

　※the Post-Roasting methog that tea leaves are divided by its shape and weight before roasting for perfect roast in each of them

Tea Leaf Market（sales basis）

Green Tea Leaf Market（sales basis）

Green Tea Leaves Brand StrategyEasy to Use Products

317.3

298.0284.6 278.3 272.7

0

100

200

300

'08 '09 '10 '11Est.

'12Forecast

（\billion）

Oolong Tea

Black Tea

Green Tea

chart① chart②

Barley Tea

Dec. 5\ 760（tax excluded）

■Green Tea Loved deeply by expert of green tea blender

■TEAS' TEA line

Various productsMatcha latte & Ginger tea ,

■Tegaruni (usable) Cathchin

with cooking recipesFurther expansion of

■For hotels and restaurants uses　 Tea bags and instant products

Distribution of sales channel forcommercial use

Source: ITO EN

Long-termTarget20％

Source: ITO EN

Bulk leaves

Tea bags・Instant

Packing leavesITO EN share

English direction forthe good way to drink

- 9 -

69,460

483 2,588 3,8826,798

11,751

40,341

47,87249,657

58,875

63,619

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

'02/4 '03/4 '04/4 '05/4 '06/4 '07/4 '08/4 '09/4 '10/4 '11/4 '12/4Est.

($ thousand)

50

110

186

245

282299

328

449

232 8

357375

410

0

100

200

300

400

'99/3 '00/3 '01/3 '02/3 '03/3 '04/3 '05/3 '06/3 '07/3 '08/3 '09/3 '10/3 '11/3 '12/3Est.

Number of TULLY'S COFFEE Shops

Toward Further Strengtheningbusiness in ITO EN (North America) INC.

(Shops)

10. TULLY'S COFFEE and ITO EN (North America) INC.

Sales of ITO EN (North America) INC.

moved intothe black

Local Community-Based Café

chart① chart②

■Various store development ■Prepaid card

Available from Nov. 2011\10 off per one drinkFor gift card uses

ＪＲ Tokyo StationYaesu chika-gai(underground mall)

Set newly a space forthe meetingFor business people andcultural school, etc.

One drink for available2 hours use

■Strengthen business in west coast

Intruduce vending machines and cafeteria atmajor IT companies in Silicon valley andSan Francisco

Actively expand intoJapanese companies

- 10 -

Shanghai Research Office

Mason Distributors, Inc.-Manufacture & sales of supplements

11. Overseas Businesses and Group Management

The ITO EN Group

Fujian New Oolong Drink Co., Ltd.-Manufacture, export, & sales of beverages

Ningbo Shunyi Tea Products Co., Ltd.-Manufacture, export, & sales of tea leaves

　Opened Shanghai ResearchOffice on May 2011

ITOEN(USA)INC.-Manufacture & sales of beverages

ITO EN(North America)INC.-Sales of beverages & tea leaves

ITO EN AUSTRALIA PTY.LIMITED-Manufacture & sales of tea leaves and sales of beverages

Strengthen contribution in theChugoku and Shikoku regions basedon the local Hiroshima

Brand Strategy of Chichiyasu Company

■Care about deliciousness and safetycharacteristic descriptionon label ■Marketing research in China

　Carry out marketing research in mainland China and Hong Kong　　To enter the Chinese market under expanding demand of unsweetend RTD tea with rising the health trend

- 11 -

　

Consolidated net sales（\ billion）

450

400

350

12. Medium and Long-Term Management Plan

　【Long-Term vision】

　■Establish the status as a overall beverage company in Japan

　■Aim to the global tea company

FYE April 2014FYE April 2011

Medium-TermManagement PlanFYE April 2014

Net Sales: more than \400 billionOperating Income: 　　 \23 billion

(Consolidated)

■Drastic buildup of existing fields

■Challenge towards the new growth

■Innovative changes to high profits company

Promote Medium-TermManagement Plan（3 years）

Long-TermManagement Vision

Payout ratio：more than 40% (Consolidated)

　Pursue the long-term management vision with the company-wide promotion

FYE April 2011Dividend Paid

Common stock　\38/yearPreferred stock　\48/year

Payout ratio　　65.6％

The Pass Point forLong-Term Management Plan

OP margin： 8%Net Sales： \500 billion

- 12 -

　 13. Other Topics

■Green tea for a Beautiful Lake Biwa

■Standardization of packaging materials -Carton project-

Conventional　　　　　　　Introduced

Campaign conducted for 3 months fromNov. 2011Donate a portion of sales from beverages asproceeds to support Lake Biwa conservationactivites which is the fourth year

■The Grand Prize for the Global Environment Award

Among 15 companies ofmanufacturer, wholesaler, andretailer

Cut handles or easy opening tapes,and reduce area of side flaps⇒Reduce CO2 emissions　about 4 to 10% of CO2 emissions per a sheet of carton

Improve supply chain workingefficiencies

■Approach for the Great East Japan Earthquake

Donated one yen per unit for beverages were sold from May to August　　※Donated 400 million yen to the Japan Red Cross Contributed 100 million yen each to Iwate, Miyagi, and Fukushima to support education for children in the disaster-stricken areas.

Received the 20th Award

"Tea leaves recycling system" has beenappraised for effective product utilization ofused tea leaves to manufactured goodssurroundings

Used tea leaves recycling goods

※ITO EN promotes CSR to use for ISO 26000 Guidelines of social responsibility

- 13 -

1. Developing Tea Farms Business & Eco-Friendly Bottles2. Sales Results and Forecasts by Packaging (Non-Consolidated)3. Summary of Consolidated Balance Sheet & Other Date4. Key Management Indexes & Cash Flows (Consolidated)

Appendix

Key Points of Project of the DevelopingGreen Tea-Producing Regions

Project of the DevelopingGreen Tea-Producing Regions

Eco-Friendly PET Bottles

Appendix 1. Developing Tea Farms Business & Eco-Friendly Bottles

■Expanding 2L (large-sized PET bottle) lightening

Long-termcontract

　

Technical Supports& Advises

Bulk Purchasing

Agricultural Holdingslocal communities, municipality,

& etc.

Win-Win　◆Stabilize procurement of raw materials　◆Improve quality of raw materials　◆Reduce cost of raw materials significantly　◆Reinforce traceability of products

Eco-fridndly PET bottle "NS system"NS = Non-Sterilant

1,910

1,210

800

2,120

2,360

380470

690790 810

0

1,000

2,000

3,000

'06 '07 '08 '09 '10 '11Plan

'12Plan

（ton）

0

500

1,000

1,500

（ha）Production Volume

Area of Green Tea Farms

■Large-Scale Green Tea Farm in Kitsuki, Oita

May 2011

Label thickness: 45μm ⇒　20μm Bottle about 30 % lighter

Reduce the cost of energy bydistribution and materials

■Expanding lightening of PET(Plastic) bottles "Oi ocha Green Tea & Koiaji"

◆Stabilize farm management

◆Profitability ・Mechanization　　 ⇒ decrease production costs◆Fostering of Labor saving

Appendix 1

　　　　 　　　　

（Thousands cases）

For the Year Ended Apr. 30, 2010 For the Year Ended Apr. 30, 2011 For the Year Ending Apr. 30, 2012

YOY %Change

SalesComposition

YOY %Change

SalesComposition

YOY %Change

SalesComposition

98,113 2.7% 100.0% 110,629 12.8% 100.0% 113,102 2.2% 100.0%

10,660 6.2% 10.9% 11,297 6.0% 10.2% 12,699 12.4% 11.2%

79,392 1.8% 80.9% 89,476 12.7% 80.9% 88,227 -1.4% 78.0%

2L PET 26,055 4.9% 26.6% 30,401 16.7% 27.5% 32,571 7.1% 28.8%

　500ml PET 32,571 14.6% 33.2% 37,139 14.0% 33.6% 36,865 -0.7% 32.6%

　350ml & smaller PET 12,243 -20.9% 12.5% 13,140 7.3% 11.9% 11,399 -13.2% 10.1%

　Other PET 8,523 -7.6% 8.7% 8,795 3.2% 8.0% 7,391 -16.0% 6.5%

7,077 6.8% 7.2% 8,808 24.5% 8.0% 10,789 22.5% 9.5%

982 13.7% 1.0% 1,047 6.6% 0.9% 1,385 32.3% 1.2%

First Half Total （May to October）

Total Volume

Containers

　Cans

　Total PET (plastic) bottles

　Cartons

　Others

36% 35% 35% 32%

25% 27% 27% 28%

28% 28% 29% 31%

11% 10% 9% 8%

35% 33%

26% 28%

29% 30%

10% 9%

0%

20%

40%

60%

80%

100%

'06 '07 '08 '09 '10 '11Est.

Cans Large-sized PET Smaller-sized PET Others

12% 11% 11% 11%

24% 26% 26% 27%

29% 31% 32% 33%

19% 15% 14% 14%

10% 9% 8% 7% 7% 6%8% 8% 8% 10% 11% 10%

11%11%

29%25%

33%29%

10%18%

0%

20%

40%

60%

80%

100%

'08/4 '09/4 '10/4 '11/4 '12/4First Half

'12/4Est.

Cans 2L PET 500ml PET 350ml & smaller PET Other PET Others

Sales Composition by Packaging(volume basis)

ITO ENMarket

Source： ITO EN, Market (calendar year)

Appendix 2. Sales Results and Forecasts by Packaging (Non-Consolidated)

Appendix 2

　Items 2010/10 　　2011/10 Description of cｈange

Current assets　 (Major contents）

　　Cash and deposits

　　Notes and accounts receivable Increase of sales in Summer

Inventories 　　　　　〃

Fixed assets　 (Major contents）

Land Chichiyasu's property

Building and structure

Lease assets Increase in lease on vending machine

Intangible fixed assets　 (Major contents）

Goodwill Acquisition of Chichiyasu

Software + Amortization of existing goodwill

Investments and other assets Due to valuation of securities

Total assets

Current liabilities　 (Major contents）

　 Notea and accounts payable Decrease of purchase in October

　　Lease obligations Increase in lease on vending machine

　　Accrued expenses Due to increase in sales expenses

　　Income taxes payable Due to increase in profitability

Non-current liabilities　 (Major contents）

　　Long-term loans payable Bank loans of Chichiyasu

　　Lease obligations Increase in lease on vending machine

Tatal non-current liabilities Increase in retained earnings

Total liabilities and net assets

Change

3,164

92,785

27,271

4,879

4,846

8,207

197

-4,289

1,790

16,153 1,346

1,613

5,092

58,711 58,908

22,982

2,3306,241 8,571

5,689 810

19,667

14,806

1,429

-2,721

1,983

141

13,702 -587

35,679 37,662

13,960 15,931

97,752

25,188

99,181

22,466

14,289

198,513190,305

29,030

87,742

102,563 105,727

33,877

5,043

18,054

3,302

14,864 15,006

1,970

7,047 6,402 -645

22,581 23,438 856

55,682 62,192 6,509

13,269 14,993 1,723

22,265 26,551 4,285

24,822 27,038 2,216

Supermarkets38%

ConvenienceStores25%

VendingMachines16%

Others21%

11%

36%

21%

32%

0

50,000

100,000

150,000

200,000

250,000

'08/4 '09/4 '10/4 '11/4 '12/4Plan

Numbers of Customers& Vending Machines

Sales composition by Channels

chart①

chart②

Appendix 3. Summary of Consolidated Balance Sheet & Other Date

Balance Sheet changeas of October 30 2010 and 2011

ITO EN

Inner circle (Market): Jan to Sep 2011Outer circle (ITO EN): May to Oct 2011

(numbers ofvending machines & customers)

■Bond Rating A+

■Corporate bond registration　 Straight Bond 50 billion yen

■Equity ratio　　　'11/10　 53.3％　　　'10/10 53.8％

Number of Customers

Number of VendingMachines

chart②

Market

Appendix 3

328.0 332.8 332.9351.6

364.6

310.2

239.2

214.8

288.1263.8

48.950.8 50.9 50.6

52.9

48.549.4 49.349.750.2

0

100

200

300

400

'03/4 '04/4 '05/4 '06/4 '07/4 '08/4 '09/4 '10/4 '11/4 '12/4Est.

(\ billion)

35

45

55

65（％）

Net Sales

% Cost of Sales

19.2

10.6

12.4

17.6 18.0

19.721.1

15.7

17.5

22.8

5.9

3.23.7

5.0 4.9

7.3 7.3

7.3

7.5

7.3

0

5

10

15

20

25

'03/4 '04/4 '05/4 '06/4 '07/4 '08/4 '09/4 '10/4 '11/4 '12/4Est.

(\ billion)

2

4

6

8

10

12（％）

Operating Income

% Operating Income

10.0

4.7

5.9

7.68.0

10.4

11.6

8.08.7

12.2

3.1

1.41.8

2.2 2.2

3.7 3.64.14.0 4.0

0

5

10

'03/4 '04/4 '05/4 '06/4 '07/4 '08/4 '09/4 '10/4 '11/4 '12/4Est.

(\ billion)

0

2

4

6

8

（％）Net income

% Net Income

10.6

4.76.0

7.6 7.86.9

15.014.714.715.915.9

3.0 3.5 4.1 4.1

9.59.9 10.18.78.4

0

5

10

15

20

'03/4 '04/4 '05/4 '06/4 '07/4 '08/4 '09/4 '10/4 '11/4 '12/4Est.

(％)

ROE

ROA

Appendix 4. Key Management Indexes & Cash Flows (Consolidated)

Net Sales & % Cost of Sales Operating Income Net Income

ROE & ROACapital investments & Depr. & Amort.Cash Flow

13.23 13.1011.13

17.1919.71 20.86

-3.11-4.72

-14.55

-6.57

-2.13

-8.69

10.6217.58

12.175.354.95

-7.22

-14.17

-9.22

-1.878.37

10.12

-3.42

-20

-10

0

10

20

30

'05/4 '06/4 '07/4 '08/4 '09/4 '10/4 '11/4 '12/4Est.

(\ billion)CF from Operating Actitivities

CF from Investing Activities

Free CF

1.87 1.85

2.71

3.51

0.23

7.78

2.80

4.52

2.77

7.09

4.32 2.03

0.32

3.87

1.60

7.49

5.58

2.693.52

2.33

1.11 1.23 1.81

3.433.16

0

2

4

6

8

10

'05/4 '06/4 '07/4 '08/4 '09/4 '10/4 '11/4 '12/4Est.

(\ billion)Software

Capital Investments

Depr. & Amort.

Leased Assets Depr.

chart① chart③chart②

chart④ chart⑤ chart⑥

- Appendix 4 -

Advisory Note about the Materials

The current plans, forecasts, strategy, etc. outlined in these materials have not yetbeen realized and are based upon ITO EN management's best judgement given currentobtainable information. Therefore, given only this forecasted information, please refrainfrom interpreting these materials as grounds for general conclusion. Pleaseacknowledge that, depending on various important factors, actual operationg resultscan be quite different from what has been projected. The following are some principalfactors that affect actual operating results: 1) Weather, especially summertemperatures; 2) Product mishaps or accidents, such as products being foundcontaining foreign substances or impurities; 3) The economic conditions, particularlyshifting consumer trends, surrounding ITO EN's operating environment; 4) In the midstan intensely competitive market characterized by things such as easily changingconsumer tastes and preferences, the ability of ITO EN to continue the planning anddevelopment of products and services that meet customers' expectations. However, itshould be noted that factors influencing operating results are not limited to thesealone. The purpose of the materials you have received is to provide the means for amore thorough understanding of ITO EN and should not necessarily be regarded as arecommendation to invest. Furthermore, the data in these materials is based on whatwe believe is the most accurate information. However, please understand that evenwithout advance notice, both past data and future forecasts may be revised.