Idemitsu Kosan : (Change of Disclosure Matters) Announcement on the Revision of the Medium-term Management Plan (Fiscal Years 2023-2025)

November 14, 2023

Press Release

Company name: Idemitsu Kosan Co.,Ltd.

Representative Director & Chief Executive Officer:

Shunichi Kito

(Company Code: 5019, TSE Prime Market)

Contact person: Daisuke Mogi, General Manager, Investor Relations Office, Finance & Accounting Department

(TEL: [phone])

(Change of Disclosure Matters)

Announcement on the Revision of the Medium-term Management Plan

(Fiscal Years 2023-2025)

Idemitsu Kosan Co., Ltd. ("Idemitsu" or the "Company") hereby announces that its board of directors adopted a resolution to revise its medium-term management plan for fiscal years 2023-2025, which was announced on November 16, 2022, as follows.

1. Reason for the Revision

Since the Company's announcement of its medium-term management plan in November 2022, it

has focused on engaging in dialogue with investors and the capital markets, and its board has engaged in ongoing discussions on analyses aimed at enhancing enterprise value and on the feasibility of medium-term plan targets and cost of capital.

As a result of such discussions, Idemitsu has revised its ROE target for FY 2025 and its shareholder return policy for FY 2023-2025.

2. Nature of the Revision (underlined parts)

Item		Before Revision			After Revision
FY 2025	8%			≥ 10%
ROE target
FY 2023-2025	 Total payout ratio of at least		 Total payout ratio of at least
Shareholder return		50% of cumulative net income			50% of cumulative net income
policy		excluding inventory impact in			excluding inventory impact in
		FY 2023-2025			FY 2023-2025
	 Provide stable dividends of 120		 Increase dividends to 160 yen
		yen per share			per share *1 and set this as the
					new minimum dividend
				 Execute share repurchases in a
					flexible manner while
					monitoring the stock price

*1: In light of the 5-for-1 stock split of common shares effective January 1, 2024, the Company anticipates 32 yen per share for annual dividend after the stock split and set this as the minimum dividend. For details of the stock split, please refer to "Announcement on Stock Split and Partial Amendment of the Articles of Incorporation, as well as Acquisition of Treasury Shares and Interim Dividends, and Revision of Dividend Forecasts."