Glossary

B

Brand-new Deal 2017
ITOCHU's FYE2016 to FYE2018 Medium-Term Management Plan.
Please refer to here for details.

C

Consumer related Sector
ITOCHU's textile, food, general products&realty, ICT&financial business.

D

Division Company System
ITOCHU's seven Division Companies (Textile, Machinery, Metals&Minerals, Energy&Chemicals, Food, General Products&Realty, ICT&Financial Business) assume responsibility for the management of their respective business areas as if each of them are one independent company.

H

HMC
Headquarters Management Committee. HMC is a supporting committee to the President and Chief Executive Officer where companywide management policy and important issues are discussed.

I

IFRS
International Financial Reporting Standards.
ITOCHU has voluntarily adopted the IFRS instead of the accounting principles generally accepted in the United States of America (U.S. GAAP), from the consolidated financial statements of the annual report for the year ended March 31, 2016.

M

Morning-Focused Working System (Asa gata kinmu)
In May 2014, ITOCHU officially introduced a morning-focused working system to support a rigorous approach to customer service, increase productivity, and enhance employee health by increasing efficiency. Under this system, work after 8:00 p.m. is, in principle, prohibited and work in the early morning is promoted.

R

Risk Assets
ITOCHU have introduced, and are utilizing, a Risk Capital Management (RCM) strategy. Under this strategy, we first calculate "risk assrts" based on the maximum amount of the possible future losses from all assets on the balance sheet including investments, and all off-balance-sheet transactions.
Risk Buffer
Consolidated shareholders' equity + Non-controlling interests.
ITOCHU have introduced, and are utilizing, a Risk Capital Management (RCM) strategy. Under this strategy, we manage to control the quantity of risk assets within the limits of our "risk buffer".

V

Value Chain
The strategy targets maximizing earnings through the establishment and reinforcement of the value chain that extends from upstream procurement of resources/raw materials to mid-stream product processing, and distribution and marketing and through to downstream retail businesses.