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 2, 2018, we announced our fiscal 2018 business results as well as our next medium-term management plan, “Brand-new Deal 2020.”

In fiscal 2018, net profit attributable to shareholders reached ¥400.3 billion, setting a record high for the second consecutive year. Over the past three years (fiscal 2016 to fiscal 2018), under the “Brand-new Deal 2017” medium-term management plan, we worked toward building a solid earnings base that would generate ¥400.0 billion in consolidated net profit, a goal that we achieved. As for the plan’s other goal, strengthening our financial position, we achieved a NET DER of 0.87— our best ever. As a result of this steady expansion of earnings and improvement in financial position, we received an A rating from all major credit-rating agencies, including Moody’s Japan.

This year marks the 160th anniversary of ITOCHU Corporation’s founding in 1858. Under the new medium-term management plan “Brand-new Deal 2020,” which took effect as we entered in this milestone year, we are focusing on expanding and advancing our existing businesses to firmly secure earnings while at the same time actively reinventing business models. Today, the rapid advance of Artificial Intelligence (AI), the Internet of Things (IoT), and other new technologies is driving a tremendous transformation in industry that is being called a “fourth industrial revolution.” By nimbly responding to such change and creating a new vision of what a trading company can achieve through our leadership in workstyle reforms and health and productivity management, we are putting in place a structure that will enable ITOCHU to make even greater strides. Please refer to this page for an overview of fiscal 2018 results and more details on the 2018–2020 medium-term management plan.

For fiscal 2019, we estimated that net profit attributable to ITOCHU would reach ¥450.0 billion, aiming to achieve a third consecutive year of record profit. On October 1, however, we revised this estimate upward, to ¥500.0 billion.

Furthermore, to enhance shareholder results, we have been planning to raise the dividend for fiscal 2019 to a record-high ¥74 per share, however, in accordance with the upward revision of our financial results forecast, we have decided to further increase the guaranteed minimum dividend another ¥9 to ¥83 per share.

By steadily implementing the management strategies embodied in “Brand-new Deal 2020” and promoting the growth of the ITOCHU Group, we will continue working to meet the expectations of our stakeholders. We look forward to your continued support and guidance.

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Masahiro Okafuji
Chairman & CEO
October 1, 2018