Medium-term Management Plan

FY2016-FY2018 Medium-Term Management Plan

FY2016-FY2018 Medium-Term Management Plan

Goals under the Brand-new Deal 2017

  • Build a solid earning base to generate ¥400 billion net profit by progressing a growth strategy especially focused on non-resource sector.
  • Pursue to consistently exceed ROE of 13%, whilst further accumulating Stockholders’ Equity.
Goals under the Brand-new Deal 2017

Basic Policies under the Brand-new Deal 2017

Brand-new Deal 2017

Investment Policy under the Brand-new Deal 2017

  • Aggressively pursue synergetic profit derived from the strategic alliance with CITIC and CP Group, especially in China and Asian regions.
  • Cap new investments to be made only within the aggregate amount generated by core operating cash flow (*1) and withdrawal from existing projects.

⇒ Consecutively generate in excess of ¥100 billion of positive core free cash flow (*2) each fiscal year.

  1. 「Operating Cash Flow」 - 「increase/decrease of working capital」
  2. Exclude investment into CITIC Limited and increase/decrease of working capital
Investment Policy under the Brand-new Deal 2017

FY2018 Quantitative Plan

(Unit:billion yen)

P/L FY2017 Annual Result FY2018 Plan
Gross trading profit

1,093.5

1,230.0

Equity in earnings of associates and joint ventures

185.2

190.0

Net profit attributable to ITOCHU

352.2

400.0

(Unit:billion yen)

B/S FY2017 Annual Result FY2018 Plan
Total assets

8,122.0

8,600.0

Net interest-bearing debt

2,330.7

2,350.0

Total shareholders' equity

2,401.9

2,650.0

NET DER

0.97times

0.9times

ROE

15.3%

15.8%

(Unit:billion yen)

Assumptions FY2017 Annual Result FY2018 Plan
Exchange Rate(YEN/US$)

108.37

110

Interest(%) YEN TIBOR(¥)

0.061%

0.10%

Crude Oil(US$/BBL)*

49.88

50

  • The price of crude oil is the price of Brent crude oil.

FY2018 Net Income attributable to ITOCHU by segments

FY2018 Net Income attributable to ITOCHU by segments

FY2018 Dividend Policy remains unchanged from Brand-new Deal 2017 dividend policy, as below.

  • For FY2018, with the intention of increasing shareholder returns, based on the high probability of achievement of business plan and expected cash flow, we will guarantee a minimum dividend per share of ¥64, our record high dividend.
  • FY2018 Dividend Policy remains unchanged from Brand-new Deal 2017 dividend policy(*), and we will continue to make our best efforts to share the growth and generated profit with our shareholders and to increase shareholder returns.
  • (*)Brand-new Deal 2017 dividend policy Payout ratio of 20% for Net profit attributable to ITOCHU up to ¥200.0 billion and approx. 30% on the portion of Net profit attributable to ITOCHU exceeding ¥200.0 billion.
配当方針

Forward-Looking Statements

This material contains forward-looking statements regarding ITOCHU Corporation’s corporate plans, strategies, forecasts, and other statements that are not historical facts. They are based on current expectations, estimates, forecasts and projections about the industries in which ITOCHU Corporation operates. As the expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, including without limitation, changes in economic conditions; fluctuations in currency exchange rates; changes in the competitive environment; the outcome of pending and future litigation; and the continued availability of financing and financial instruments and financial resources, they may cause actual results to differ materially from those presented in such forward-looking statements. ITOCHU Corporation, therefore, wishes to caution that readers should not place undue reliance on forward-looking statements, and, further that ITOCHU Corporation undertakes no obligation to update any forward-looking statements as a result of new information, future events or other developments.