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 April 3, 2024, we announced our management policy and our management plan for the fiscal year ending March 31, 2025 (FYE 2025).

Since 2011, we have formulated and executed five medium-term management plans under the title “Brand-new Deal.” Through these plans, we have steadily raised our profit stage to construct a stable financial foundation and relentlessly promoted advanced qualitative initiatives. 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 total consideration of the solid track record that we built up with the aim of achieving further progress going forward.

To unceasingly and sustainably enhance corporate value even in this era of drastic change, we established the three pillars of “Grow earnings,” “Enhancement of corporate brand value,” and “Shareholder returns.” At the same time, we intend to steadily rise up step by step by crafting highly detailed annual management plans, which incorporate the latest business data, as we demonstrate growth by steadily achieving our plans every year.

The theme of our management policy is “profit opportunities are shifting downstream.” Customer needs are diversifying in tandem with changes in society, but existing business models alone will not be enough to meet these needs. We believe the key to generate profit is always downstream. We will continue expanding our business fields by evolving the strengths of our downstream businesses, which are closer to customers and constitute the very starting point of our history over 160 years ago. Moreover, in midstream and upstream fields, we will leverage our accumulated assets and know-how to expand ITOCHU businesses using our unique approach with its focus downstream.

In our qualitative initiatives, we listen to the insights of all our stakeholders, set targets based on a market-oriented perspective, and steadfastly carry out specific measures. Sincerely engaging with feedback from markets and society enables us to build trust and enhance our corporate brand value, ultimately creating synergy with our businesses.

Under this new management policy, all the Company’s employees have sprinted headlong to create business and refine their marketing capabilities, which form the essence of a merchant. There will be no change to our basic policies of the “earn, cut, prevent” principles and the market-oriented perspective, which have supported our growth to date. With a foothold in the solid foundation we have built up, we intend to work as a unified group to take on further challenges.

Regarding the FYE 2025 management plan, we set consolidated net profit at a record high ¥880.0 billion, reaching this level will demonstrate strong rising growth from the ¥800.0 billion stage. ROE, which represents the Company’s strength of business efficiency, was set at 16%, which is the highest level for a general trading company. This target significantly exceeds the average for listed companies in Japan, where ROE is typically counted in single digits. Under the banner of “No growth without investments,” we have shifted focus to growth investments and will move forward with investments up to ¥1 trillion, including the surplus from the period of the previous medium-term management plan, as we steadily take measures to sustainably enhance operating results.

Finally, turning toward shareholder returns, in FYE 2025, we plan to raise dividends ¥40 with a minimum of ¥200 per share as we expand shareholder returns and target a total payout ratio of 50%. Going forward, we will continue to realize sustainable growth and a steady expansion in shareholder returns.

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


Masahiro Okafuji
Chairman & CEO
April 3, 2024