FYE 2025 Business Results and
FYE 2026 Management Plan
ITOCHU Corporation (8001)
May 2, 2025
The
Brand-new DealForward-Looking Statements
Data and projections contained in these materials are based on the information available at the time of publication, and various factors may cause the actual results to differ materially from those presented in such forward-looking statements. ITOCHU Corporation, therefore, wishes to caution that readers should not place undue reliance on forward-looking statements, and further, that ITOCHU Corporation has no obligation to update any forward-looking statements as a result of new information, future events or other developments.
Outline of FYE 2025 Business Results & FYE 2026 Management Plan
Consolidated net profit
Core profit （Approx.）
（FYE 2024）
801.8→
¥880
.3 billion [+78.5]
（FYE 2024）
789.0→
¥770.0 billion [(19.0)]
¥766.0 billion
Investments (including CAPEX)
Incl. projects
¥1 trillion
to be executed
NET DER
0.51 times [Same level]
Total payout ratio
As planned
ROE
Sustained high level
EPS
Record High
Approx. 50 % [+8pt]
Dividend per share Share buybacks
¥200 [+¥40] ¥150.0 billion
Approx. 16 %
¥615.65
[+¥62.64]
Quantitative Results
[ ]: compared to the previous fiscal year
Achieved 10% growth as planned
Key Points Consolidated net profit : Core Profit :
Growth Investments : Shareholder Returns :
Reached a record-high of ¥880.3 billion. Achieved approximately 10% growth year over year and continued highly efficient management.
Decreased due to falling resource prices, delayed turnaround of certain businesses, and deferred profit contributions resulting from a delay in the timing of new investments.
In Non-Resource sectors, core profit increased with steady progress in PMI at CTC and DAIKEN, although results were mixed across businesses.
Accumulated high-quality investments such as the privatization of DESCENTE and C.I. TAKIRON, as well as iron ore business in Brazil. Decided to execute approximately ¥1 trillion, including projects to be executed in FYE 2026.
Total payout ratio of approximately 50%. Dividend of ¥200 per share (an increase of ¥40) and executed share buybacks totaling ¥150.0 billion.
Enhancement of Corporate Brand Value : Further strengthened human capital by accelerating female officer appointments; continued proactive IR and sustainability initiatives.
Summary of FYE 2026 Management Plan
Consolidated net profit
Record High
（FYE 2025）
880.3→ ¥
900.0 billion [+19.7]
Core profit
About ¥770.0ー850.0 billion
Investments (including CAPEX)
Max. ¥1 trillion
consecutive
2nd
year
NET DER
Less than 0.6 times
Total payout ratio
ROE
Sustaining high level
EPS
Record High
Dividend per share Share buybacks
Aiming at 50 %
consecutive
2nd
year
¥200
Approx. ¥170.0 billion
Approx. 15 %
¥638.16
[+¥22.51]
Quantitative Plans
[ ]: compared to the previous fiscal year
Key Points
Consolidated net profit： Reaching ¥900.0 billion, a record high for the second consecutive year, incorporating current market conditions and uncertain business environment.
Overcoming challenges from the previous fiscal year and further refining existing businesses by enhancing our Hands-on Management approach.
Growth Investments :
Financial and Capital Strategies :
Shareholder Returns :
Continuing to accumulate growth investments up to ¥1 trillion under the Management Policy of "No growth without investments." Striving for further expansion of business areas, strengthening and enhancing business foundation to achieve long-term profit growth.
Maintaining highly efficient management aligned with global standards. The financial and capital strategy remains unchanged, based on firmly balancing the three factors (growth investments, shareholder returns, and control of interest-bearing debt).
Continuing a total payout ratio of 50%, exceeding for the second consecutive year by 10 points the lower limit of "40% or more" set in the long-term Management Policy.
FYE 2025 Business Results Review
Non-
R e
esourc
Resource
+¥26.5 billion
(¥39.5 billion)
Core profit
Despite mixed results in existing core businesses, profits increased, driven by a steady turnaround in the pork-related businesses.
Significant decrease due to falling resource prices and operational issues in two coking coal projects, etc.
Extraordinary gains and losses
DESCENTE revaluation gain [50.0]
Gain on the Chinese business reorganization in FM [29.5],
etc.
Net profit
Achieved 10% profit growth as per the initial plan
584.0
Non-Resource
74%
Organic growth
Existing business (48.5)
Existing business +25.5
Turnaround
789.0
New investments +10.0
Extraordinary gains and losses
Non-
717.7
Non-Resource
81%
Resource
205.5
Resource
166.0
Resource
172.6
Non-Resource
79%
770.0
Non-
Resource
Resource
Total
(39.5)
Total
+26.5
Non-
Resource
110.0
Resource
Non-
610.5
Others
Resource
(Unit：billion yen)
Core profit (19.0)
880.3(4.0) | |
CTC +12.0 | |
DAIKEN + 3.0 | |
FM + 2.0 | |
Marubeni-Itochu Steel (13.0) | |
North American electric-power (5.0) | |
North American construction-materials (4.5) | |
Domestic power trade (2.0) | |
FUJI OIL －(*2) | |
(44.5) | |
IMEA iron ore business Two coking coal projects Energy upstream interest | (23.0) (18.0) (6.0) |
+25.5 |
CPP +20.5 HYLIFE +7.5 IFL +1.0 Dole (3.5) |
ー |
+5.0 |
DESCENTE C.I. TAKIRON, etc. |
+5.0 |
Iron ore business in Brazil |
Core profit(*1)
(*1) The total includes "Others."
Core profit(*1)
Consolidated net profit(*1)
FYE 2024
(*2) Disclose after the company's financial results are announced.
FYE 2025 FYE 2025
Overview of Profit Plan for FYE 2026
Core profit: about 770.0-850.0
（770.0+ 3 + 4 + 5 ）
(Unit：billion yen)
Recession risks
・Forex
Approx. (40.0)
(Yen/US$) 152.62 → 140.00
・Resource
prices
Approx. (10.0)
1 Turnaround Approx. +30.0
Two coking coal projects
Dole
FUJI OIL
IFL, etc.
2 Profit contributions from new
investments in FYE 2025
Approx. +20.0
DESCENTE
Iron ore business in Brazil
C.I. TAKIRON
Kawasaki Motors, etc.
860.0
770.0
770.0
3 Organic growth of
existing businesses
Incorporating approx. 5% of
¥770.0 billion
4 Profit contributions from new investments in FYE 2026
Extraordinary
gains / losses
+50.0
(50.0)
(40.0)
80%
About
Non-Resource
+80.0
Non-Resource
79%
Solid profit driver
5
Gains on
the sale of CPP, etc.
+90.0
Realized extraordinary gains
Forex・ Resource prices
900.0
Core profit FYE 2025 results
Consolidated net profit FYE 2026 plan
1
Turnaround of Existing Businesses(Unit：billion yen)
FYE 2025 Review
Consolidated net profit | |||
FYE 2024 | FYE 2025 Results | FYE 2026 Plan | Inc/Dec |
Results | |||
Two
coking coal
projects
Dole
FUJI OIL
[U.S.] Operations were halted due to a roof collapse and fire following a bridge collapse at the shipping port.
(19.2)
(1.3)
Countermeasures
Loss reduction of over ¥10.0 billion is expected.
[U.S.] Production is scheduled to resume from mid FYE 2026. [Australia] Operations will shift to a next mining area in FYE 2026 and geological conditions will be improved. Although the coal extraction zones remain relatively limited, efforts will be made to
improve productivity.
Production is recovering as weather impacts subside. Management improvements, including productivity enhancements and cost reductions, are being implemented.
r the company's announcement
Repairs at the plant are already on track, with operating rates expected to recover steadily. Trading is being reinforced to maximize sales in China and Asia.
Over
Not
¥10.0 billion
Disclosed
reduction in losses
[Australia] Production efficiency deteriorated significantly due to geological and other issues.
May 12
May 12
+4.0
2.6
May 12
0.7
(1.4)
1.5
Drought led to a decrease in pineapple production. The sales decline could not be fully offset by cost reduction.
Scheduled to be disclosed afte
4 IFL
HYLIFE
Procurement costs surged sharply due to tightened supply-demand dynamics following European companies' cessation of purchasing Russian timber. Equipment troubles occurred twice at the main production plant.
Expanding sales to Japan by leveraging ITOCHU's distribution network and enhancing profitability through rigorous cost reductions.
(3.1)
(1.5)
Not Disclosed
-
-
Not Disclosed
3.0
(3.9)
Total for turnaround projects(Inc/Dec for FYE 2026 Plan) : Approx. +¥30.0 bn
Further improvements in production efficiency and lean management will be pursued to reduce volatility.
2
4
Profit Contributions from New InvestmentsInvestment results / plan
¥1 trillion Growth Investment
decided as planned
（Incl. projects to be executed）
in To be Executed in in FYE 2026 Approx. 240.0 | vestments FYE 2025 Executed 766.0 | Max. ¥1trillion |
Executed in FYE 2025 Approx. 523.0 | ||
FYE 2025 CAPEX Approx. 243.0 |
(Unit：billion yen) New
Major investment results
FYE 2025 executed
Profit contribution image from new investments
FYE 2026
Approx.
¥30.0 bn
FYE 2025 | |
Profit contributions from new investments in FYE 2025 (Executed/approved)
| Approx. ¥10.0 bn |
Solid profit driver
DESCENTE (*1)
Iron ore business in Brazil (*1)
C.I. TAKIRON (*1)
North American electric power
Hitachi Construction Machinery (*1)
WECARS (*2)
136.3
119.2
37.6
26.9
20.2
18.8
2
+¥20.0 bn
FYE 2026 to be executed
Profit contributions from new investments in FYE 2026
Kawasaki Motors 80.0
DESCENTE (*1)
(Settlements for FYE 2026)
(*1) Additional Investment
46.3
FYE 2025 FYE 2026
Aim for steady accumulation of profits through continued
growth investments
(*2) Profit contribution expected from FYE 2027
3
Organic Growth of Existing Businesses
In FYE 2025, profit decreased in some Non-Resource businesses, but the PMI of CTC and DAIKEN progressed smoothly, and Japanese domestic chemical companies, including C.I. TAKIRON (privatized), and FamilyMart grew.
In FYE 2026, top priority is improving core profit. Enhance Hands-on Management and ensure continued focus on "earn, cut, prevent" principles.FYE 2025 Review
FYE 2024
Results
Unexpected delays in the sale of renewable energy development assets. The backlash from the surge in electricity prices due to last fiscal year's heat wave.
Deterioration in the steel material and steel pipe market conditions.
-
Not Disclosed
Itochu Steel
Marubeni-
+3.3
14.8
Inc/Dec
FYE 2026
Plan
Results
FYE 2025
25.7
40.1
11.5
16.7
North American electric power
Consolidated net profit
Countermeasures |
Accumulation of renewable energy development assets and timely asset sales. Further accelerating renewable energy investment through tax incentives and investment funds. Expansion of peripheral service businesses such as operation and maintenance. |
Promoting further lean management. Capturing increased demand for steel materials and steel pipes driven by policy changes. |
Further strengthening the digital value chain. |
In addition to strengthening Hands-on Management, accelerating early improvement of unprofitable businesses and growth strategies. |
Improving profit margins through distribution reform of plates for semiconductor manufacturing equipment, and expanding the functional food business, including supplements. |
Continuing to refine the CVS business (developing flagship products, strengthening branding, and expanding sales floor area, etc.) and accelerating the development of peripheral businesses such as advertising and media. |
(Unit：billion yen)
Successfully capturing the demand for digital transformation across all customer segments, leading to increased revenue.
+4.5
55.0
CTC
37.6
50.5
Improvement in the profitability of domestic businesses.
+0.2
42.0
+3.0
21.2
+1.5
8.0
41.8(*2)
39.8(*2)
FamilyMart
18.2
16.3
Major domestic chemical companies(*1)
6.6
5.2
DAIKEN
Expansion in the export of semiconductor materials, steady demand for flooring materials for apartment renovations, and strong performance in pharmaceutical raw materials.
Increase in daily sales resulting from enhancement of product appeal and sales promotion, and expansion of transactions in advertising and media companies.
(*1) C.I. TAKIRON, ITOCHU CHEMICAL FRONTIER, ITOCHU PLASTICS (*2) Excluding extraordinary gains and losses
Consolidated Net Profit by SegmentFYE 2024 Results | FYE 2025 Results | Inc/Dec | FYE 2026 Plan Consolidated net profit | Inc/Dec | FYE 2026 Plan Comments | ||||||||||||
Core profit | Extra. G&L(*1) | Consolidated net profit | Core profit | Extra. G&L(*1) | Consolidated net profit | Core profit | Extra. G&L(*1) | Consolidated net profit | |||||||||
Textile | 27.0 | - | 27.0 | 28.3 | 45.5 | 73.8＊ | + | 1.3 | + 45.5 | + | 46.8 | 38.0 | (35.8) | 【－】 Absence of extraordinary gains in FYE 2025 【＋】 DESCENTE：Revenue expansion centered on sports sector 【＋】 Apparel-related companies: Improvement in profitability through the thorough implementation of lean management | |||
Machinery | 132.1 | (0.5) | 131.6 | 132.5＊ | 4.0 | 136.5＊ | + | 0.4 | + | 4.5 | + | 4.9 | 150.0 | + | 13.5 | 【＋】 North American electric power：Increasing profits in existing power generation businesses and strengthening initiatives for renewable energy projects such as solar power 【＋】 Citrus Investment：Increase in profit from Hitachi Construction Machinery 【－】 Absence of extraordinary gains in FYE 2025, forex impact | |
Metals & Minerals | 224.6 | 1.5 | 226.1 | 178.4 | - | 178.4 | (46.2) | (1.5) | (47.7) | 180.0 | + | 1.6 | 【＋】 Two coking coal projects：Reduction in loss by operational improvements 【－】 Resource prices, forex impact | ||||
Energy & Chemicals | 74.7 | 17.0 | 91.7 | 74.6 | 4.0 | 78.6 | (0.1) | (13.0) | (13.1) | 75.0 | (3.6) | 【－】 Absence of extraordinary gains in FYE 2025, forex impact, energy upstream interests 【＋】 C.I. TAKIRON：Strengthening profitability via accelerated PMI | |||||
Food | 69.8 | (3.5) | 66.3 | 73.1＊ | 12.0 | 85.1 | + | 3.3 | + 15.5 | + | 18.8 | 90.0 | + | 4.9 | 【＋】 Turnaround of Dole, etc. 【－】 Absence of extraordinary gains in FYE 2025 | ||
General Products & Realty | 59.2 | 7.0 | 66.2 | 54.7 | 15.0 | 69.7 | (4.5) | + | 8.0 | + | 3.5 | 65.0 | (4.7) | 【－】 Absence of extraordinary gains in FYE 2025, forex impact 【＋】 IFL：Improvement through production stabilization and maximization of sales volume 【＋】 DAIKEN：Strengthening profitability through logistics optimization, etc. | |||
ICT & Financial Business | 76.8 | (9.0) | 67.8 | 82.2＊ | 1.0 | 83.2 | + | 5.5 | + 10.0 | + | 15.5 | 87.0 | + | 3.8 | 【＋】 CTC：Further growth through the promotion of the digital value chain strategy 【－】 Mobile-phone-related business：Decrease in profit due to the revision of transaction terms | ||
The 8th | 33.8 | 2.0 | 35.8 | 34.6＊ | 30.5 | 65.1 | + | 0.8 | + 28.5 | + | 29.3 | 35.0 | (30.1) | 【－】 Absence of extraordinary gains in FYE 2025 【＋】 FamilyMart：Continued efforts in developing flagship products, enhancing branding, and expanding sales area, etc. | |||
Others, Adjustments & Eliminations | 90.9 | (1.5) | 89.4 | 111.9＊ | (2.0) | 109.9 | + 21.0 | (0.5) | + | 20.5 | 180.0 | + | 70.1 | 【＋】 Gain on the sale of C.P. Pokphand, etc. 【－】 Forex impact, etc. | |||
Total | ＊ Approx.789.0 | 13.0 | 801.8 | Appox.770.0 | 110.0 | 880.3＊ | Approx.(19.0) | + 97.0 | + | 78.5 | 900.0 | + | 19.7 | ||||
Non-Resource | 584.0 | 19.5 | 603.5 | 610.5＊ | 107.0 | 717.7＊ | + 26.5 | + 87.5 | +114.2 | Non-Resource % of FYE 2026 Plan [About 80%] | |||||||
Resource | 205.5 | (1.0) | 204.6 | 166.0 | 6.5 | 172.6 | (39.5) | + | 7.5 | (31.9) | |||||||
Others | (0.5) | (5.5) | (6.2) | (6.5) | (3.5) | (10.0) | (6.0) | + | 2.0 | (3.8) | |||||||
Non-Resource (%)(*2) | 74% | - | 75% | 79% | - | 81% | Increased 5pt | - | Increased 6pt | ||||||||
(Unit : billion yen)
(*1) Extra. G&L. means "Extraordinary Gains and Losses."
(*2) % composition is calculated using the total of Non-Resource and Resource sectors as 100%.
＊Record High
FYE 2025 Core Profit (YoY Changes by Segment)
(Unit : billion yen)
Textile | |
Machinery | |
Metals & Minerals | |
Energy & Chemicals | |
Food | |
General Products & Realty | |
ICT & Financial Business | |
The 8th | |
Others, Adjustments & Eliminations |
FYE 2024 Results | FYE 2025 Results | Inc/Dec | |
27.0 | 28.3 | + | 1.3 |
132.1 | 132.5＊ | + | 0.4 |
224.6 | 178.4 | (46.2) | |
74.7 | 74.6 | (0.1) | |
69.8 | 73.1＊ | + | 3.3 |
59.2 | 54.7 | (4.5) | |
76.8 | 82.2＊ | + | 5.5 |
33.8 | 34.6＊ | + | 0.8 |
90.9 | 111.9＊ | + 21.0 | |
Approx.789.0＊ | Approx.770.0 | Approx. (19.0) | |
Summary of Changes | |
【＋】 Apparel-related companies：Stable performance especially in overseas sports sector | |
【＋】 Aerospace-related companies：Stable sales 【＋】 Ship-related business：Higher sales volume of ships | 【－】 North American electric-power-related business： Lower equity in earnings due to the absence of the surge of electricity prices resulting from the heat wave in FYE 2024 【－】 North American construction-machinery-related business： Lower sales volume |
【－】 Lower iron ore and coal prices 【－】 Coking-coal-related companies： Unfavorable performance of operation 【－】 Marubeni-Itochu Steel：Lower steel material and steel pipe prices | 【＋】 Iron ore business in Brazil：Start of equity pick-up |
【－】 Energy transactions/CIECO Azer/Electricity transactions： Deterioration in profitability | 【＋】 Chemical-related companies： Improvement in profitability of C.I. TAKIRON and higher transaction volume in ITOCHU CHEMICAL FRONTIER, etc. 【＋】 ITOCHU ENEX： Improvement in profitability in LPG and electricity business |
【＋】 HYLIFE：Favorable sales and improvement in profitability 【＋】 NIPPON ACCESS and ITOCHU-SHOKUHIN： Expansion of transactions resulting from higher transaction volume 【＋】 Provisions-related transactions： Higher transaction volume and improvement in profitability | 【－】 Dole：Lower production volume of pineapples 【－】 North American grain-related company： Absence of favorable performance in FYE 2024 |
【－】 North American construction-materials related business： Deterioration in profitability in exterior building materials business 【－】 ETEL 〔－〕Increase in expenses due to inflation 〔＋〕Higher sales prices | 【＋】 Indonesian processing of natural rubber company： Higher sales volume and prices 【＋】 DAIKEN：Conversion into a consolidated subsidiary in FYE 2024 Q3 【＋】 ITOCHU Property Development： Increase in the sales of development projects of rental apartment |
【＋】 CTC：Favorable performance and the increased ownership percentage | 【－】 Mobile-phone-related business： Lower earnings due to the deterioration in profit margin 【－】 Overseas retail-finance-related companies： Increase in expense of doubtful accounts |
【＋】 FamilyMart 〔＋〕Increase in daily sales resulting from enhancement of product appeal and sales promotion, and expansion of transactions in advertising and media companies 〔－〕Increase in various costs caused by changes in external environment and execution of digital measures to strengthen business foundations | |
【＋】 C.P. Pokphand： Improvement in profitability resulting from the recovery of pork prices and lower feed costs | 【＋】 CITIC Limited 〔＋〕Comprehensive financial services segment：Stable performance 〔＋〕Depreciation of the yen 〔＋〕Decrease in interest expenses in Orchid Alliance 〔－〕Iron ore companies and steel-related companies：Lower earnings |
Total
＊Record High
FYE 2025 Core Profit (YoY Changes by Factor)
Impact of Resource prices (43.5)
789.0
Non-Resource sector +13.5
Impact of Forex
+26.0
Resource sector (8.5)
・CP・CITIC +23.0
(Unit : billion yen)
・ Iron ore
（Sensitivity: ±1.60）
US$119 → US$105
・ Crude oil
（Sensitivity: ±0.27）
US$82 → US$78
Others
770.0
・Energy &
Chemicals
+5.0 【＋ 】C.I. TAKIRON
・Energy & Chemicals
(5.5) 【－ 】Energy upstream interests
・ Iron ore Approx. (36.5)
・Non-
Resource
Approx. ＋13.0
・ICT & Financial
Business
+5.0 【＋ 】CTC
・Metals & Minerals
(3.0) 【－ 】Two coking coal projects
【＋ 】Iron ore business in Brazil
・ Coal Approx. (5.5)
・ Crude Oil Approx. (1.5)
・Resource Approx. ＋12.5
・Others Approx. ＋ 0.5
・Food +2.5 【＋ 】HYLIFE
【－ 】Dole
・Textile +1.5 【＋ 】DESCENTE
・Yen/US$
（Sensitivity: ±3.5）
144.59 → 152.62
・The 8th +1.0 【＋ 】FamilyMart
・Metals & Minerals
・General Products & Realty
(14.0) 【－ 】Marubeni-Itochu Steel
(6.0) 【－ 】North American
construction materials
Resource Resource
584.0
Nonー
205.5
・Machinery (4.5) 【－ 】North American
electric power
【－ 】North American construction machinery
Nonー Resource
Resource
610.5
166.0
Core profit(*1)
FYE 2024
Results
(*1) The total includes "Others."
Core profit (*1)
FYE 2025
Results
FYE 2026 Management Plan
Management Policy－
No growth without investments
Total payout ratio 40% or more
Shareholder returns
Grow earnings
For two consecutive years, strongly promoting both "grow earnings" and "shareholder returns," formulating a management plan that ensures growth and highly efficient management
Total payout ratio
Aiming at 50%
Dividends
The higher of
¥200 per share or
30% dividend payout ratio
Share buybacks
Approx.
¥170.0 billion
Enhancing Hands-on Management：Pursuing growth of mid-sized group companies, solid turnarounds, and asset replacement based on business viability.
No growth without investments：Sustaining growth investments and full execution of the investment pipeline.
Continuing highly efficient management：Maintaining a high ROE through cash flow generation and reinvestment in growth areas, with a total payout ratio exceeding the Management Policy.
Investment Amount
Max. ¥1 trillion
NET DER
Less than 0.6times
Consolidated Net Profit
¥900.0 billion
R O E
Approx. 15 %
Growth Investment
Shareholder Returns
Profit Plan
FYE 2026 Shareholder Returns
Dividend per share (yen)
Total payout ratio (%)
200
(Minimum)
200
140
160
85
88
110
49%
50%
50
33
55
83
41
39
38
36
27
33
70
34
S自ha己re株bu式y取ba得cks
Approx. ¥170.0 billion
Dividends
The higher of ¥200 per share or 30% payout ratio
Aiming at 50 %
Total payout ratio
FYE 2026
Shareholder Return Policy
Management Policy
(Medium- to long-term commitment)
Total payout ratio
40 % or more
Dividends
The higher of ¥ 200 per share or
30% payout ratio
29
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |||||||||
16.2 | 27.9 | 68.0 | 62.0 | 13.5 | 60.0 | 60.0 | 100.0 | 150.0 | Approx.170.0 |
(FYE)
2016
Execute share buybacks actively and continuously
(billion yen)
Share buybacks
(*1) Due to the progress in share buybacks, the threshold at which the 30% dividend payout ratio exceeds ¥200 per share -previously explained as "about ¥960.0 billion" at the time of the Management Policy announcement - has decreased to about ¥940.0 billion.
Financial Policy / Cash Allocation
Cash allocation focused on growth investments
Investment amount : Max. ¥1 trillion
Exit of over ¥300.0 billion(*3)is expected
FYE 2026 Plan
BND2017 Total (FYE 2016-FYE 2018) |
1,255.0 |
(970.0) |
Approx. 285.0 |
BND2020 Total (FYE 2019-FYE 2021) |
1,691.0 |
(1,065.0) |
Approx. 626.0 |
BND2023 Total (FYE 2022-FYE 2024) [FYE 2024 Results] | |
2,484.0 | [823.0] |
(960.0) | [(614.0)] |
Approx. 1,524.0 | Approx. [209.0] |
FYE 2025 Results |
920.0 |
(576.0) |
Approx. 344.0 |
(Unit : billion yen)
Core operating cash flows (*1)Net investment cash flows(*2) Core free cash flows
Shareholder returns
Dividend
Approx.
705.0
Approx.
[(122.0)]
Core free cash flows after deducting shareholder returns
Approx. 97.0
Approx. (34.0)
Total payout ratio aiming at 50％
The higher of dividend
¥200 per share or 30% dividend payout ratio
Share buybacks : approx. ¥170.0 billion
Maintaining solid financial foundation by balancing three factors
(Growth investments, shareholder returns, and control of interest-bearing debt)
NET DER: less than 0.6 times
Approx. (91.0)
(274.5) |
(44.1) |
(318.6) |
(385.4) |
(143.5) |
(528.9) |
(598.9) [(231.4)] |
(220.0) [(100.0)] |
(818.9) [(331.4)] |
(285.4) |
(150.0) |
(435.4) |
Share buybacks Total
(*1) "Operating cash flows" minus "Changes in working capital" plus "Repayments of lease liabilities, etc."
(*2) Payments and collections for substantive investment and capital expenditure. "Investment cash flows" plus "Equity transactions with non-controlling interests" minus "Changes in loan receivables," etc. (*3) Including a cash inflow of approximately ¥170.0 billion due to the sale of C.P. Pokphand shares and dividend.
Exchange rate (Yen/US$) | Average |
Closing | |
Interest rate (%) | TIBOR 3M (¥) |
SOFR 3M (US$) |
FYE 2024 Results |
144.59 |
151.41 |
0.08% |
5.30% |
82.08 |
119 (*3) |
FYE 2025 Results |
152.62 |
149.52 |
0.48% |
4.81% |
78.21 |
105 (*3) |
FYE 2026 Plan |
140 |
140 |
1.00% |
4.25% |
65 |
N.A. (*4) |
(Reference) Sensitivities on consolidated net profit for FYE 2026 | |
1 Yen fluctuation against US$ | Approx. ±¥3.1 billion (*1) |
- | |
0.1% fluctuation of interest rate | - (*2) |
- (*2) | |
± ¥0.13 billion (*5) | |
± ¥2.00 billion (*5) | |
Crude oil (Brent) (US$/BBL) Iron ore (CFR China) (US$/ton)
(*1) The impact in case the average exchange rate during FYE 2026 depreciated(increase)/appreciated(decrease) is shown.
(*2) It is assumed that the increase/decrease in interest income/expense will be offset by the impact of interest rate fluctuation on the transaction prices.
However, in the situation that interest rate fluctuates significantly, interest cost may have temporary impact on the Company's performance. (*3) FYE 2024 and FYE 2025 prices for iron ore are prices that ITOCHU regards as general transaction prices based on the market.
(*4) The prices of iron ore used in the FYE 2026 Plan are assumptions made in consideration of general transaction prices based on the market.
The actual prices are not presented, as they are subject to negotiation with individual customers and vary by ore type. (*5) The above sensitivities vary according to changes in sales volume, foreign exchange rates, production cost, etc.
Towards sustainable enhancement of corporate value
Copyright © ITOCHU Corporation. All Rights Reserved.
Management Policy（Announced in April 2024）
-Profit Opportunities Are Shifting Downstream-
We aim to achieve sustainable enhancement in corporate value, by having all employees, from the business divisions to the administrative divisions, always enhancing their marketing capabilities, leveraging the assets and expertise of upstream and midstream, which we have been building up for over 160 years since our founding, while developing and evolving downstream businesses that are closer to consumers.
Grow earnings | No growth without investments |
Enhancement of corporate brand value | Enhancement in qualitative aspects |
Shareholder returns | Total payout ratio 40% or more The higher of 30% dividend payout ratio or dividend ¥200 per share |
Highly Efficient Management with a Matrix of Growth rate, Shareholder returns, and ROE
30%
Continue to enhance corporate value by remaining committed to highly efficient management, one of our competitive edges.
FYE 2011-2025
900.0
880.3
（Plan）
13
820.3
800.5
801.8
CAGR
%
(Consolidated net profit)
FYE 2011-2025
20%
500.5
501.3
ROE 16%
Average.
25%
15%
352.2
401.4
300.6
300.5
280.3
310.3
240.4
Global-standard ROE of 15%
10%
161.1
5%
Consolidated net profit (billion yen)
ROE(%)
400.3
Long-term commitment:
Total payout ratio of
40% or more
Mid-to-long-term target backed by past track record: CAGR of around 10%
（Organic 5%/ Inorganic 5%）
Maintain a high, globally competitive
ROE of over 15%
Matrix of growth rate, shareholder returns, and ROE
An image of the profit growth rate required to maintain an ROE of 15% or higher, with a total payout ratio of 40%:
Total Payout Ratio | |||||
60% | 50% 40% 30% | ||||
ROE | 13% | 5% | 7% | 8% | 9% |
14% | 6% | 7% | 8% | 10% | |
15% | 6% | 8% | 9% | 11% | |
16% | 6% | 8% | 10% | 11% | |
17% | 7% | 9% | 10% | 12% | |
（FYE）
29 34 39 38 36 27 33 41 49 50
Gradual expansion of shareholder returns
Execute share buybacks actively and continuously
Total payout ratio (％)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
18
23
23
23
58
33
Grow Earnings：Enhancing Hands-on Management (1)Enhancing Hands-on Management
Lean management based on "cut" and "prevent" principles has been widely adopted across group companies. However, management initiatives such as M&As at group company level have been limited, leaving room for further growth.
Management
Secure a firm foundation to be prepared for changes and risks
Lean
Hands-on
Strengthening of front-line capabilities Carefully refine each business
Hands-on Management
Allocate management resources
Personnel dispatch
Additional investments
Further allocation of management resources
M&A
Horizontal collaborations
AI utilization
High-growth companies
ean
man
Synergy realization &
L
agement
Asset replacement
Case 1 CTC
FYE 2020
-FYE 2025 Net Profit
（100% Basis）
¥28.5bn ¥50.5bn
CAGR
12%
centered on
p nd
Before TOB
A profit base
roduct sales a
infrastructure development
Maximize growth opportunities in response to
market changes
Address the expanding demand for digital transformation and intensifying competition
Enrichment of upstream functions
Ensuring engineer resources
Expansion of business base in North America
Case 2 YANASE
FYE 2020
-FYE 2025 Net Profit
¥4.6bn ¥15.3bn CAGR
27%
（100% Basis）
Before subsidiary
Sales and number of units sold were the most important KPIs
Rigorous lean management
Optimize inventory and consolidate under-performing stores, etc.
Strengthening and expanding product brands as well as boosting after-sales and used car business
Pursuing higher growth by
through M&As and internal collaboration, as well as improving efficiency with AI and other technologies.
for businesses where growth is difficult to achieve at our company.
Swift asset replacement
strengthening earning power
Investment execution
Grow Earnings：Enhancing Hands-on Management (2)
Medium-sized group companies with a solid business foundation and Hands-on Management tend to show higher growth.
[Plot group companies with profit contribution between 2 to 10 billion yen by ownership ratio and CAGR]
Ownership
Group companies with higher ownership and Hands-on Management tend to show higher growth rates
High
M&A
Further enhance Hands-on Management, and shift gears toward high-growth companies
Horizontal collaboration
Utilization of AI
Considering asset replacement for low-growth businesses
Low
(20)
(10)
0
10
20
30
40
50(%)
CAGR（FYE 2020 to FYE 2025）
Number of group companies and profits/losses from group companies
by scale (FYE 2025 results)
(Total profits/losses from
Growth rate of medium-sized companies over the past five years
(Scale of profit contribution） (Number of companies）
IMEA, CITIC, FamilyMart, CTC,YANASE, etc.
9
over 10 billion yen
group companies）
470.2
billion yen
to 10
2 to 5
billion yen
90.6
billion yen
131.8
billion yen
ITOCHU ENEX,
20 Hitachi Construction Machinery, DAIKEN, etc.
HOKEN NO MADOGUCHI,
28 C.I. TAKIRON, HYLIFE, ITOCHU KENZAI, etc.
billion yen
79.9
billion yen
～2 billion yen 148
Group companies reporting losses
22 IFL, Dole, etc.
(20.1)
billion yen
※Excluding overseas trading subsidiaries, etc. Profits / losses from group companies exited during the period are not included.
Diversified portfolio across sectors with a strong base of small and medium sized group companies.
Grow Earnings：Transition to High-Efficiency and High-Growth Businesses
3 Assessing growth potential,
reinvesting in growth areas
01 Turnaround
High-efficiency, High-growth businesses
Growth Rate
02
Capital policies,
Low-efficiency, Low-growth businesses
business restructuring
0
Efficiency
01
Turnaround
Rapid restructuring, lead the used car industry
Pushing forward with fundamental management reforms by allocating numerous personnel from top management to frontlines levels
Creating comprehensive synergies by leveraging one of Japanese largest used car platforms
Case 2 WECARS
FYE 2025
3.0
billion yen
〔Profits/Losses from HYLIFE〕
FYE 2023
(13.1)
Recorded significant losses in FYE 2023 due to market downturns, etc.
Achieved a rapid recovery in profitability through decisive restructuring through hands-on approach
Case 1 HYLIFE
Case WELLNEO SUGAR
〔Profits/Losses from WELLNEO SUGAR〕
FYE 2022
1.6
FYE 2025
1.9
Achieved integrated synergy effects in the sugar business
(*)
Accelerated growth investments in the food science business
billion yen
02 Efficiency improvements through capital management and business restructuring
03 Assessing growth potential (asset replacement), reinvesting in growth areas
Steadily executing asset replacements
generate further synergies
JAPAN FOODS
Utilizing cash-in to drive roll-up acquisitions
Cumulative exits since FYE 2011 : Over ¥2.5 trillion
North American construction-materials
PrimeSource, CENIBRA
Selling to entities expected to
Identifying key areas and concentrating on CVS business
Reviewing the business portfolio
JAMCO
CONEXIO
FamilyMart
UNY
Assessing growth potential (Asset replacement)
Recoup funds through steady exits and reinvest in growth areas
Led the restructuring of refined sugar industry and pursued efficient management January 2023: ITOCHU Sugar and Nissin Sugar fully integrated
March 2025: Incorporated peer company Toyo Sugar Refining into their group company
(*) As the company's financial results have not been announced yet, the figures are based on the company's full-year forecast for FYE 2025, multiplied by our ownership.
Grow Earnings：Profit Contribution from New Investments
BND2017 - BND2023 Total
¥2,385.0 billion(*1)
for Investments(*3) Good Foresight
Four Lessons
Strive management Expansion into areas to never repeat where our strengths the mistakes can be leveraged
Investment amount
in Non-Resource
÷
Approx. ¥200.0 billion(*2)
FYE 2025
Profits from investees
ROI
8.4%
BND 2020
810.0 billion yen
FYE 2019-2021
DESCENTE
HOKEN NO MADOGUCHI
FamilyMart, etc.
FYE 2016-2018
CITIC
YANASE
North American construction-materials, etc.
850.0 billion yen
BND 2017
New investments in Non-Resource sector since FYE 2016 (excluding CAPEX)(*1)
BND 2023
FYE 2022-2024
CTC
Hitachi Construction Machinery
DAIKEN, etc.
725.0 billion yen
(*1) Aggregated investment projects in Non-Resource sector over ¥5.0 billion, excluding CAPEX.
(*2) For additional acquisitions in existing businesses, only the profits corresponding to the additional investment are included. (*3) The four lessons for investments (to rigorously prevent below): Overpaying for investment; Investments aimed at seizing
profit from investees; Overdependence on and overconfidence in partners; Fields with limited insight.
Enhancement of Corporate Brand Value
Accelerate the appointment of female officers
（#）
20
28％
(15)
over30％
（Target）
10
12％
（5）
21％
（10）
0
Increasing the number of female officers from 10 in FYE 2025 to 15 in FYE 2026.
Further accelerate appointments toward the target of achieving a female officer ratio of 30% or more by 2030.
2023 2024 2025 2030
Enhance dialogue with investors Global promotion of Sampo Yoshi
Over 600 meetings with institutional investors (a record high).
Continue to enhance disclosure materials and reflect the content of dialogues with investors in management.
Enhance Corporate Value
Dialogue Corporate Value
Enhancement
Issues
Positive Cycle of
Management Measures
Our corporate mission Sampo Yoshi was selected for a case study at Harvard Business School.
Ratio & numbers of females among all officers
Human Capital | In major company rankings among job seekers, we have been ranked No.1 across all industries in 6 out of 7 rankings, and No.1 general trading company for 6 consecutive years from all 7 rankings. |
Engagement with Stakeholders | Honored with the Best IR Award from Japan Investor Relations Association "Outstanding Integrated Report" (*1) Awarded for 8 consecutive years The highest number of votes for 3 consecutive years (*1) Selected by GPIF's domestic equity managers | WICI Japan Integrated Report Award Received Top Honors from all three major IR and sustainability evaluation firms Honored for our website The Best Gold Award No.1 across all industries |
Major External Evaluations Initiatives Implemented in FYE 2025
SDGs Initiatives | GPIF ESG investment amount and major ESG indices: No.1 in general trading companies |
※The use by ITOCHU Corporation of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of ITOCHU Corporation by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI. The inclusion of ITOCHU Corporation in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of ITOCHU Corporation by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.
Further Enhancement of Corporate Value
5.5times
S&P500
TOPIX
2.7times
1.7times
(year)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(*) Stock price trend from March 31, 2015,
using the closing price as 1, to March 31, 2025
Operating Segment Information
Textile Expanding sports business centered around DESCENTE, and strengthening the value chain of the footwear business Enhancing core brands and improving profitability through the strengthening of directly managed stores | |
Machinery Strengthening the value chain by overseas partnerships with Japanese manufacturers in the automobile and construction machinery areas Enhancing functions in the North American electric power-related business, including renewable energy, and in the marine and aerospace areas | |
Metals & Minerals Adding high-quality assets in iron ore and coking coal, etc. Engaging in projects that contribute to the realization of a decarbonized society (direct reduced iron, aluminum, hydrogen, ammonia, etc.) | |
Energy & Chemicals Expanding business in core group companies such as ITOCHU CHEMICAL FRONTIER and C.I. TAKIRON Investing in utility scale energy storage and expanding business in peripheral areas |
Food Strengthening functions and competitiveness in the food distribution field by leveraging group capabilities Improving profitability by expanding transactions of high value-added raw materials | |
General Products & Realty Expanding functions and strengthening profitability in the North American construction-materials-related business with DAIKEN and acquisitions of competitors Strengthening and expanding construction and building materials alliances Rebuilding of WECARS | |
ICT & Financial Businesses Strengthening the digital value chain centered around CTC Expanding overseas business in the retail finance and insurance areas Expanding the business foundation in growth areas such as space and satellite, healthcare, circular-economy-related business, etc. | |
The 8th Enhancing FamilyMart's convenience store business while creating and expanding new businesses by leveraging FamilyMart's business foundation Creating new consumer-related businesses |
FYE 2025 Results ：73.8 [ YoY +46.8 ]
FYE 2026 Plan : 38.0 [ YoY (35.8) ]
(Unit : billion yen) | FYE 2024 Results | FYE 2025 Results | Inc / Dec | FYE 2026 Plan | Inc / Dec | |
Consolidated net profit | 27.0 | 73.8 | + 46.8 | 38.0 | (35.8) | |
Core profit | 27.0 | 28.3 | + 1.3 | |||
Core operating cash flows | 24.3 | 28.1 | + 3.8 | |||
Total assets | 486.0 | 782.1 | + 296.1 | |||
Core profit 28.3 [ YoY +1.3 ]
【＋】 Apparel-related companies：
Stable performance especially in overseas sports sector
Extraordinary gains & losses 45.5 [ YoY +45.5 ]
Revaluation gain resulting from the conversion of DESCENTE into a consolidated subsidiary : +50.0
Impairment loss on DOME : (3.0)
Consolidated net profit
【－】 The absence of extraordinary gains in FYE 2025
【＋】 DESCENTE：Revenue expansion centered around the sports sector
【＋】 Apparel-related companies：Improvement in profitability through the thorough implementation of lean management
Major Group Companies (Ownership)［Business overview］
FYE 2024
Results
FYE 2025
Inc
/ Dec
FYE 2026
Plan
Inc / Dec
Results
0.8
1.3
+
0.4
1.2
(0.1)
0.9
0.3
(0.6)
0.7
+ 0.4
5.3
7.0
+
1.7
13.3
+ 6.2
0.4
(3.4)
(3.8)
0.2
+ 3.6
0.6
0.4
(0.2)
0.5
+ 0.1
1.2
1.6
+
0.4
1.5
(0.2)
0.9
1.9
+
1.0
2.2
+ 0.3
2.1
1.9
(0.2)
2.9
+ 1.0
Areas with High Growth Potential
Expanding sports business centered around DESCENTE, and strengthening the value chain of the footwear business
Enhancing core brands and improving profitability through the strengthening of directly managed storesJOI'X (100%)［Men's apparel manufacture & wholesale (Paul Smith, etc.)］
LEILIAN (100%)［Retail of women's apparel］ DESCENTE (100%*1)［Sportswear manufacture & retail ］
Major Investments
Privatization of DESCENTE (FYE 2025 ¥136.3bn, FYE 2026 ¥46.3bn)DOME (69.7%)［Sportswear manufacture & retail (UNDER ARMOUR) ］
EDWIN (100%) ［Jeans products manufacture & retail］
Sankei (100%)［Garment materials manufacture］
IPA*2 (100%)［Production control & wholesale of apparel］
ITS*3 (100%)［Production control & wholesale of textile materials / apparel］
*1 ITOCHU's ownership percentage in FYE 2025 is: Q1 44.5%; Q2 44.4%; Q3 85.9%; Q4 100.0%
*2 ITOCHU Textile Prominent (ASIA) Ltd.
*3 ITOCHU TEXTILE (CHINA) CO., LTD.
Supplement：Growth Strategy of DESCENTE¥13.3 bn
FYE 2026 Plan
¥7.0 bn
FYE 2025 Results
¥0.7 bn
FYE 2011 Results
Profit from the company
(*1) FYE 2011 - FYE 2025
CAGR(*1)
18%
Future profit target(*2)
(*2) DESCENTE's 100% basis consolidated net profit.
By combining DESCENTE's strengths with regional strategies, we aim to double DESCENTE's net profit in around five years.
¥25.0 bn
An investor business briefing was held in March 2025.
The area-specific strategies
Deepen communication between the Japan, South Korea, and China regions through the further introduction and integration of a global management perspective.
Extensive network and expertise in the textile industry
－Brand management
－OEM/ODM operations
－Store development and management, etc.
Business management resources
Chinese personnel and know-how
Manufacturing capabilities
－Research and development (R&D) capabilities
－Planning and development capabilities
－Sewing technology
A wide and diverse range of brands centered on sports
ITOCHU
Group's Strengths
DESCENTE's
Strengths
Japan |
|
South Korea |
|
China | |
brand image. | |
Others |
|
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Itochu Corporation published this content on May 02, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 02, 2025 at 04:36 UTC.
