Message from the President

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, we released our FY2017 earnings and our Management Plan for FY2018, the final year of our current Medium-Term Management Plan, "Brand-new Deal 2017."

FY2017 net profit attributable to ITOCHU was 352.2 billion yen, the highest in our Company's history.

"Brand-new Deal 2017" outlines the basic policy of "strengthening our financial position" and “building a solid earnings base to generate ¥400 billion level net income." To be leader of the "new era of trading companies," we have aimed at building an income platform focused on the non-resource sector.

In FY2016, the first year of the plan, we steadily implemented specific policies in line with the basic objectives of the "Brand-new Deal 2017," including expanding our revenue platform for the non-resource sector and investing in CITIC Limited, while also accelerating asset replacement and implementing initiatives aimed at eliminating future areas of concern. As a result, net profit attributable to ITOCHU was 240.4 billion yen, and moreover we have strengthened our financial position by securing core free cash flows of 410.0 billion yen in excess.

During FY2017, the second year of the plan, income from sources not influenced by resource prices, including contributions from steady income growth in the non-resource sector and year-long contributions from investing in CITIC Limited, helped us to achieve record high earnings of 352.2 billion yen. At the same time, we began implementing forward-looking measures to address even minor risks and ensure the strongest platform possible for our efforts in FY2018. We also recorded core free cash flows of 300.0 billion yen, which combined with FY2016 results totaled approximately 700.0 billion yen in excess. This means that even while carrying out a 600.0 billion yen investment in CITIC Limited, we have had a net cash-inflow of 700.0 billion yen in the past two years. Our net D/E ratio reached 0.97, a record high, indicating that during the second year of the three-year plan we achieved one of the two basic policies of the "Brand-new Deal 2017" – namely, we successfully "strengthened our financial position."

We will devote FY2018, the final year of "Brand-new Deal 2017", to achieve the second basic policy of the plan, "building a solid earnings base to generate ¥400 billion level net income." Having set a target of 400.0 billion yen in net profit attributable to ITOCHU, all ITOCHU employees will unite as one toward setting a new record high for net profit. Click here[PDF]for FY2017 earnings summary and details on our Management Plan for FY2018.

Lastly, I would like to touch on shareholder return. In FY2018, in order to further increase shareholder return, in addition to share buybacks, we are planning to set a guaranteed minimum dividend payment that is 9 yen higher than FY2017, increasing the amount to 64 yen per share, the highest in our Company's history.

We will steadily implement specific measures based on the management strategies and policies of the "Brand-new Deal 2017" to promote the expansion of the ITOCHU Group and continue to meet the expectations of all our stakeholders.


Masahiro Okafuji
President & Chief Executive Officer