The “Merchant” Business Model
A Value Creation Model Centered on “Sampo-yoshi”
In enhancing corporate value, we must use capital and our four strengths to drive the growth of our economic value and environmental / social value. Specifically, we are working to expand created value (Achievement of Short-Term Targets), increase the growth rate (Steppingstones to Medium- to Long-Term Value Creation), and lower the cost of capital (Initiatives and Systems Supporting Sustainable Growth). As a result, we will continue realizing a virtuous cycle that further reinforces capital and our four strengths, which are the driving forces for sustainable value creation.
What is ITOCHU focusing on?
To enhance corporate value, we aim to expand created value, increase growth rate, and lower cost of capital. We are therefore conducting management with a focus on the following points.
“Earn”
Conduct trade aligning with changes in the world and customer needs
“Cut”
Reduce expenses that are not cost effective, reduce unnecessary meetings and documents, etc.
“Prevent”
Prevent outflows due to losses on receivables and impairment losses
Creating Added Value
By leveraging our unique ability as a general trading company to act as a coordinator, upgrade business management, and create synergies, we continuously create added value from customers’ point of views, stabilize commercial rights, expand trade, and increase the overall value of businesses, including investees.
Asset Strategies
With the strategic importance of business investment increasing, we are emphasizing investment in our areas of strength while building and steadily implementing asset strategies that entail thorough risk management and the pursuit of asset efficiency.