Message from the Chairman & CEO

We will continue to adhere to the ethos of our founder. Specifically, we will be a visionary leader, we will act with integrity, we will value diversity, and we will all continue to take on challenges with passion.

On May 10, 2022, we announced our business results for the fiscal year ended March 31, 2022 (FYE 2022), as well as the FYE 2023 medium-term management plan.

In FYE 2022, the first year of the medium-term management plan “Brand-new Deal 2023,” our business performance was boosted by various market conditions, such as soaring resource prices as well as rising prices for some products and materials due to supply chain disruption that emerged in step with recovery in global consumption from the pandemic. As a result, consolidated net profit rose to ¥820.3 billion, shattering our previous record.

On the financial front, we continued to maintain a sound financial position with a NET DER of 0.54 times, a record best. Moreover, we accomplished nearly record-best levels in ROE (22%) and the ratio of Group companies reporting profits (91%). These achievements are a testament to the hard work of each and every employee across the ITOCHU Group. Going forward, I believe it will be even more crucial that we maintain a proactive and thoroughgoing approach without growing complacent with continually strong results.

Under the medium-term management plan “Brand-new Deal 2023,” we have established the quantitative plan of achieving consolidated net profit of ¥600.0 billion as a basic policy. Our basic policy also outlines two growth strategies, which are realizing business transformation by shifting to a market-oriented perspective and enhancing our contribution to and engagement with the SDGs through business activities.

Although we achieved our quantitative plan in the first fiscal year of the plan, the issues we need to address going forward have not changed. We will continue to practice our “earn, cut, prevent” principles as the ITOCHU Group presses further ahead on the path of the merchant. From the customer perspective, we will constantly build new businesses and services with the awareness that profit opportunities are shifting downstream as we adapt to rapidly changing world events and business environments.

We estimate FYE 2023 consolidated net profit at ¥700.0 billion based on uncertainty in the outlook for the global economy and market volatility. Looking at geopolitical risks, it is clear that the world is changing to the point where nothing can be taken for granted. We think that FYE 2023 will be the most important year yet in deciding the future of ITOCHU. We will rise to the challenge with all our might.

Finally, turning toward shareholder returns, in FYE 2023, we will stably raise dividends on a real results basis and plan to set a minimum of ¥130 per share. Going forward, we reaffirm our commitment to promoting the progressive dividend policy and achieving a dividend payout ratio of 30% by FYE 2024 as we continue to realize steady increase in dividends.

We look forward to your continued support and guidance going forward.

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Masahiro Okafuji
Chairman & CEO
May 10, 2022