Latest Financial Highlights

Financial topics for FY 2013

"Net income attributable to ITOCHU" was ¥280.3 bil.; second highest earnings after the ¥300.5 bil. achieved in the previous FY.
For "Net income attributable to ITOCHU" by segment, "Textile," "Machinery,""Food," and "ICT, General Products & Realty" achieved increases compared with the previous FY.
The earnings of "Metals & Minerals" and "Energy & Chemicals" decreased but still generated ¥82.5 bil. and ¥23.1 bil. respectively.
"ICT, General Products & Realty" achieved more than ¥50.0 bil. "Food", as in the previous FY, recorded over ¥40.0 bil., and "Textile" and "Machinery" delivered more than ¥30.0 bil., all of which achieved record high.
The share of the Non-Resource Sector was 72% (earnings of ¥191.3 bil.) and the Natural Resource/Energy-Related Sector was 28% (earnings of ¥75.5 bil.).
Furthermore, the Non-Resource Sector posted an increase of ¥31.7 bil. ("Consumer-Related" +¥8.9 bil., "Machinery-Related" +¥12.7 bil., "Chemicals, Real Estate, and others" +¥10.1 bil.) to ¥191.3 bil. which was record high.
The share of Group companies reporting profits was 84.6%, which was also a record high.
"Comprehensive income (loss) attributable to ITOCHU" increased by ¥225.8 bil. to ¥475.8 bil. affected by rapid yen depreciation and stock price increases in the 4th quarter in addition to the contribution of "Net income."
"Total ITOCHU stockholders' equity" increased by ¥401.6 bil. from the previous FY end to ¥1,765.4 bil. due to an increase in "Net income attributable to ITOCHU" and an improve in "Accumulated other comprehensive income (loss)"due to yen depreciation and high stock prices, which more than compensated for a decrease accompanying dividends payment.
The "Ratio of ITOCHU stockholders' equity to total assets" improved by 3.8 points from the previous FY end to 24.8%.
NET DER was 1.24 times. "Total equity" was ¥2,112.6 bil., surpassing ¥2 tril. for the first time.

Consolidated Financial Results of Operations

(Unit: billion yen, (losses, decrease))
	FY 2013	FY 2012	Increase (Decrease)	Outlook for FY 2014 (Announced on May 8, 2013)
	FY 2013	FY 2012	Increase (Decrease)		Increase (Decrease)
Net income attributable to ITOCHU	280.3	300.5	(20.2)	290.0	9.7
Revenue (Note 1)	4,579.8	4,197.5	382.2
Gross trading profit (Note 1)	915.9	956.9	(41.0)	1,000.0	84.1
Selling, general and administrative expenses (Note 1)	(671.3)	(679.4)	8.1	(715.0)	(43.7)
Provision for doubtful receivables	(0.3)	(4.9)	4.6	(5.0)	(4.7)
Net interest expenses	(14.1)	(12.8)	(1.2)	(17.0)	(2.9)
Dividends received	34.6	28.0	6.6	27.0	(7.6)
Net financial income	20.6	15.2	5.4	10.0	(10.6)
Gain on investments-net	45.9	20.9	24.9	10.0	(36.3)
Loss on property and equipment-net	(9.3)	(6.7)	(2.5)
Gain on bargain purchase in acquisition	-	15.9	(15.9)
Other-net	9.7	23.3	(13.5)
Total other-expenses	(604.8)	(615.7)	11.0	(700.0)	(95.2)
Income before income taxes and equity in earnings of associated companies	311.1	341.2	(30.1)	300.0	(11.1)
Income taxes	(94.3)	(122.0)	27.7	(105.0)	(10.7)
Income before equity in earnings of associated companies	216.8	219.1	(2.4)	195.0	(21.8)
Equity in earnings of associated companies	85.9	102.7	(16.9)	120.0	34.1
Net income	302.7	321.9	(19.2)	315.0	12.3
Less: Net income attributable to the noncontrolling interest	(22.4)	(21.4)	(1.0)	(25.0)	(2.6)

Reference

(Unit: billion yen, (losses, decrease))
	FY 2013	FY 2012	Increase (Decrease)	Outlook for FY 2014 (Announced on May 8, 2013)
	FY 2013	FY 2012	Increase (Decrease)		Increase (Decrease)
Total trading transactions (Note 1)	12,551.6	11,904.7	646.8	14,300.0	1,748.4
Gross trading profit ratio	7.3%	8.0%	(0.7%)	7.0%	(0.3%)
Adjusted profit *	351.0	395.5	(44.5)	415.0	64.0

* Adjusted profit = Gross trading profit + SG&A expenses + Net financial income + Equity in earnings of associated companies

Summary of changes from the previous fiscal year

Revenue:

Increase attributable to higher revenue from the Energy & Chemicals Company, mainly due to the acquisition of U.S. energy-related companies in the fourth quarter of the previous fiscal year, as well as to increased revenue due to the acquisition of automobile-related companies in the second quarter of the current fiscal year in the Machinery Company, which offset lower revenue from the Metals & Minerals Company, reflecting falls in iron ore and coal prices

Gross trading profit:

Textile/ +1.3 (127.6 → 128.9)	: Increase due to rise accompanying the acquisition of European apparel manufacturing and wholesale-related companies in the second quarter of the current fiscal year, and rise in apparel products transactions in Japan
Machinery/ +3.5 (85.9 → 89.4)	: Increase mainly due to rise accompanying the acquisition of automobile-related companies in the second quarter of the current fiscal year, and increase in ship transactions
Metals & Minerals/ -43.1 (122.6 → 79.5)	: Significant decrease due to falls in prices of iron ore and coal, despite increase in sales volume
Energy & Chemicals/ +9.5 (155.6 → 165.0)	: Increase due to rise accompanying the acquisition of domestic energy-related companies in the second quarter of the current fiscal year and rise in transactions for crude oil, fuel oil and petroleum products in the energy sector, despite decline resulting from slump in China's chemicals market in the chemical sector
Food/ +1.5 (201.2 → 202.7)	: Increase due to rise in transactions for frozen foods and daily-delivery foods in food-distribution-related business, despite decline in fresh-food-and-food-materials-related business due to the conversion of frozen-foods-related subsidiary into equity-method associated company in the first quarter of the current fiscal year
ICT, General Products & Realty/ -8.1 (244.6 → 236.6)	: Decrease due to lower sales of condominiums, conversion of mobile-phone-related consolidated subsidiary into equity-method associated company in the third quarter of the current fiscal year and sales of consolidated subsidiaries in the previous fiscal year, despite increase due to acquisition of Kwik-Fit Group for the previous fiscal year and higher transaction volume in domestic ICT-related companies

SG & A:

Decrease attributable to the result of the acquisition of new consolidated subsidiaries or the conversion of subsidiaries into equity method associated companies and sales of consolidated subsidiaries accompanying the asset replacement

Provision for doubtful receivables:

Improve mainly due to a decrease in allowance for doubtful receivables and collections

Net financial income:

Deteriorate in net interest expenses due to an increase in interest-bearing debt, despite lower debt cost, and increase in dividends received due primarily to an increase in dividends from oil-and-gas-related investments on Sakhalin

Gain on investments-net:

Net gain on sales of investments +28.4 (22.6 → 51.0),
Net of impairment gain (loss) and remeasuring gains on investments -4.9 (1.4 → -3.4),
Losses on business disposals and others +1.4 (-3.1 → -1.7)

Loss on property and equipment-net:

Increase in impairment losses on property and equipment -1.3 (-6.8 → -8.1),
Net gain (loss) on sales of property and equipment and others -1.2 (0.0 → -1.1)

Gain on bargain purchase in acquisition:

The gain on bargain purchase in the acquisition of Brazil Japan Iron Ore Corporation was recognized for the previous fiscal year

Other-net:

Decrease mainly due to the absence of the receipt of insurance related to the Great East Japan Earthquake for the previous fiscal year and decrease in miscellaneous income

Equity in earnings of assoc. co.:

Equity-method associated companies of ITOCHU Coal Americas Inc. +2.8 (2.5 → 5.3),
Equity-method associated companies of ITOCHU FIBRE LIMITED +2.6 (- → 2.6), Contribution of other new equity-method associated companies +7.5, FamilyMart Co., Ltd. +2.4 (6.7 → 9.1), ITC NETWORKS CORPORATION +1.1 (- → 1.1),
Equity-method associated companies of JD Rockies Resources Limited -30.0 (0.3 → -29.7),
Equity-method associated companies of Brazil Japan Iron Ore Corporation -5.2 (21.5 → 16.3),
Equity-method associated companies of ITOCHU Minerals & Energy of Australia Pty Ltd -1.8 (9.8 → 8.1)

(Note 1) With respect to distribution cost related to the ITOCHU Group's food distribution and marketing business, ITOCHU has made a change in presentation in the financial statements related to the ITOCHU Group's portion of operational cost arising at the distribution centers of the ITOCHU Group's customers, such as mass merchandisers, and delivery costs from the distribution centers to the customers' stores since the beginning of the fiscal year 2013. The aforementioned distribution cost for the previous fiscal year has been reclassified in the same manner.

Dividend Information (Per Share)

FY 2013	FY 2014
Annual (Planned) 40.0 yen	Annual (Planned) 42.0 yen
Interim (Paid) (20.0 yen)	Interim (Planned) (21.0 yen)

Financial Position

(Unit: billion yen, (losses, decrease))
	Mar. 2013	Mar. 2012	Increase (Decrease)	Outlook for March 31, 2014 (Announced on　 May 8, 2013)
Total assets	7,117.4	6,507.3	610.2	7,500.0
Interest-bearing debt	2,762.5	2,533.6	228.9	3,150.0
Net interest-bearing debt	2,185.6	2,014.9	170.7	2,650.0
Total ITOCHU stockholders' equity	1,765.4	1,363.8	401.6	1,900.0
Ratio of stockholders' equity to total assets (Note 2)	24.8%	21.0%	3.8%	25.3%
Total equity	2,112.6	1,696.1	416.5	2,230.0
Net debt-to-equity ratio (times) (Note 2)	1.24	1.48	0.24 Improved	1.4

Summary of changes from the previous fiscal year end

Total assets	Increase attributable to an increase in cash and cash equivalents; new investments in the non-resource sector such as European pulp-related companies, automobile-related companies, IPP-related and water-supply-related companies, European apparel manufacturing and wholesale-related companies; increases in inventories in the ICT, General Products & Realty Company and the Energy & Chemicals Company; and an increase accompanying additional capital expenditures in the natural resource development sector; as well as to the effect of yen depreciation
Total ITOCHU stockholders' equity	Increase in "Net income attributable to ITOCHU" and improve in "Accumulated other comprehensive income (loss)" due to yen depreciation and high stock prices, which more than compensated for a decrease accompanying dividends payment. The "Ratio of stockholders' equity to total assets" ^{(Note 2)} improved by 3.8 points to 24.8 % from March 31, 2012. NET DER ^{(Note 2)} was 1.24 times. "Total equity", or the sum of "Total ITOCHU stockholders' equity" and "Noncontrolling interest" increased to ¥2,112.6 bil.

Total assets

Increase attributable to an increase in cash and cash equivalents; new investments in the non-resource sector such as European pulp-related companies, automobile-related companies, IPP-related and water-supply-related companies, European apparel manufacturing and wholesale-related companies; increases in inventories in the ICT, General Products & Realty Company and the Energy & Chemicals Company; and an increase accompanying additional capital expenditures in the natural resource development sector; as well as to the effect of yen depreciation

Total ITOCHU stockholders' equity

Increase in "Net income attributable to ITOCHU" and improve in "Accumulated other comprehensive income (loss)" due to yen depreciation and high stock prices, which more than compensated for a decrease accompanying dividends payment. The "Ratio of stockholders' equity to total assets" ^{(Note 2)} improved by 3.8 points to 24.8 % from March 31, 2012. NET DER ^{(Note 2)} was 1.24 times. "Total equity", or the sum of "Total ITOCHU stockholders' equity" and "Noncontrolling interest" increased to ¥2,112.6 bil.