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Medium-term Management Plan

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FY2016-FY2018 Medium-Term Management Plan

FY2016-FY2018 Medium-Term Management Plan

Goals under the Brand-new Deal 2017

  • Build a solid earning base to generate ¥400 billion net profit by progressing a growth strategy especially focused on non-resource sectors.
  • Pursue to consistently exceed ROE of 13%, whilst further accumulating Stockholders’ Equity.
Goals under the Brand-new Deal 2017

Basic Policies under the Brand-new Deal 2017

Brand-new Deal 2017

Investment Policy under the Brand-new Deal 2017

  • Aggressively pursue synergetic profit derived from the strategic alliance with CITIC and CP Group, especially in China and Asian regions.
  • Cap new investments to be made only within the aggregate amount generated by core operating cash flow (*1) and withdrawal from existing projects.
    ⇒ Consecutively generate in excess of ¥100 billion of positive core free cash flow (*2) each fiscal year.

    (*1) 「Operating Cash Flow」 - 「increase/decrease of working capital」
    (*2) Exclude investment into CITIC Limited and increase/decrease of working capital
Investment Policy under the Brand-new Deal 2017

FY2017 Quantitative Plan

(Unit:billion yen)
P/L FY2016 Annual Result FY2017 Plan
Gross trading profit 1,069.7 1,080.0
Trading income 226.4 240.0
Equity in earnings of associates and joint ventures 147.7 180.0
Net profit attributable to ITOCHU 240.4 350.0
(Unit:billion yen)
B/L FY2016 Annual Result FY2017 Plan
Total assets 8,036.4 8,200.0
Net interest-bearing debt 2,555.6 2,500.0
Total shareholders' equity 2,193.7 2,400.0
NET DER 1.17times 1.0times
ROE 10.4% 15.2%
(Unit:billion yen)
Assumptions FY2016 Annual Result FY2017 Plan
Exchange Rate(YEN/US$) 121 110
Interest(%) YEN TIBOR(¥) 0.16% 0.20%
Crude Oil(US$/BBL)* 49 35
* The price of crude oil is the price of Brent crude oil.

FY2017 Net Income attributable to ITOCHU by segments

FY2017 Net Income attributable to ITOCHU by segments

Brand-new Deal 2017: Dividend Policy

  • Under the “Brand-new Deal 2017”, during the next 3 years from FY2016, we will seek to annually surpass our record high dividends.
  • In order to achieve the above, whilst continuing our current dividend policy of a payout ratio of 20% for Net profit attributable to ITOCHU up to ¥200.0 billion and approximately 30% on the portion of Net income attributable to ITOCHU exceeding ¥200.0 billion, we will guarantee a minimum dividend per share of ¥50 for FY2016, ¥55 for FY2017 and ¥60 for FY2018.
配当方針

Forward-Looking Statements

This material contains forward-looking statements regarding ITOCHU Corporation’s corporate plans, strategies, forecasts, and other statements that are not historical facts. They are based on current expectations, estimates, forecasts and projections about the industries in which ITOCHU Corporation operates. As the expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, including without limitation, changes in economic conditions; fluctuations in currency exchange rates; changes in the competitive environment; the outcome of pending and future litigation; and the continued availability of financing and financial instruments and financial resources, they may cause 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 undertakes no obligation to update any forward-looking statements as a result of new information, future events or other developments.

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