Message from the Chairman & CEO

On May 2, we announced our results for the fiscal year ended March 31, 2025 (FYE 2025) and our Management Plan for FYE 2026.

FYE 2025 was a very fruitful year. We released the most recent iteration of our management policy “The Brand-new Deal” to serve as the compass pointing the way for ITOCHU in April 2024. Under this policy, to sustainably enhance corporate value, we established the three pillars of “Grow earnings,” “Enhancement of corporate brand value,” and “Shareholder returns.”

As for the operating results of FYE 2025, we achieved record high consolidated net profit of ¥880.3 billion, after once again changing gears and representing steady profit growth of 10% from the ¥800.0 billion stage over the past three consecutive years. This was despite a challenging business environment, such as lower resource prices and higher raw material costs due to inflation. Regarding our share price, it hit an all-time high of ¥8,245 on July 11, 2024. Our market capitalization, which is a key metric for corporate value and known as the report card for corporate management, finally surpassed ¥13 trillion. Our share price has held firm and, since October 2024, our market capitalization has remained the highest among general trading companies.

Our management plan for FYE 2026 anticipates an uncertain business environment, including rapid reversals of policies by the Trump administration and the resulting effects on the global economic outlook. Nevertheless, ITOCHU has gotten results no matter the conditions and set a new consolidated net profit stage of ¥900.0 billion and a second consecutive year of record high profit. Because of the challenging environment, the ITOCHU Group intends to work as one to again ensure lean management and charge ahead toward achieving the plan. While carrying out asset replacements to sustainably enhance performance and maintain highly efficient management, under the banner of “no growth without investments,” we will continue to steadily conduct growth investments that form the foundation of our future, with a maximum limit of ¥1 trillion, the same as FYE 2025.

In addition, the Company is focusing on not just quantitative efforts but also qualitative efforts. I would like to take this opportunity to thank everyone from the bottom of my heart for the high ranking we have received from the general public, including as a popular employer of choice. With our roots stretching back to the merchants of Ohmi, we value the idea that merchants need to be like water. Quintessential merchants change their own shape like water to fit the vessel known as customer needs. On the business and qualitative fronts, all of our organizations and employees will listen to opinions from customers and society at large and meet their needs based on a market-oriented perspective. In this way, we will continue striving to build trust and enhance our corporate brand value.

Finally, turning toward shareholder returns, in line with the total payout ratio of 40% or higher set out in the management policy, we target a total payout ratio of 50% in FYE 2026, on par with that of the previous year. We will continue to simultaneously maintain growth investments and steadily expand shareholder returns.

We look forward to your support and guidance as we continue our progress together.

Masahiro Okafuji
Chairman & CEO
May 2, 2025