Slide 1: FYE 2023 Business Results Summary & FYE 2024 Management Plan
FYE 2023 Business Results Summary & Lge FYE 2024 Management Plan /TOCWS Investor Briefing Tam One with Infinite Missions ITOCHU Corporation May 11, 2023
Slide 2: Consolidated net profit for FYE 2023 amounted to ¥800.5 billion
Consolidated net profit for FYE 2023 amounted to ¥800.5 billion. Due to the absence of the substantial volume of extraordinary gains recorded in the previous fiscal year, this amount is down year on year, but still quite robust and second only to the record‐high consolidated net profit of ¥820.3 bil
Slide 3: Net profit by segment: Machinery, Metals & Minerals, Energy & Chemicals at record highs
Looking at net profit attributable to ITOCHU by segment, the Machinery, Metals & Minerals, and Energy & Chemicals companies hit record highs. The Machinery Company’s automobile‐related business has benefitted from robust demand in excess of supply due to semiconductor shortages that, in turn, led to
Slide 4: General Products & Realty and 8th Company results
On the other hand, the General Products & Realty and the 8th companies have seen a decline in consolidated net profit due to the absence of extraordinary gains recorded in the previous fiscal year. However, these two companies still marked record‐high core profit. The former enjoyed strong results i
Slide 5: Core profit represents the real earnings power of ITOCHU
Core profit, excluding extraordinary gains and losses, represents the real earnings power of ITOCHU. This indicator amounted approximately ¥787.5 billion, an increase of ¥97.5 billion compared with the previous fiscal year, hitting a record high well in excess of the previous record for the second c
Slide 6: Operating cash flows and investing cash flows
Operating cash flows amounted to a robust ¥938.1 billion, yet another record high. This was mainly attributable to the ongoing robustness of operating transaction revenues from the Metals & Minerals, 8th, Energy & Chemicals and General Products & Realty companies. Core operating cash flows similarly
Slide 7: Shareholders' equity and NET DER
Shareholders’ equity as of the fiscal year‐end stood at a record‐high ¥4.8 trillion. This was based on the accumulation of profit and the effect of the depreciation of the yen. Likewise, NET DER amounted to 0.50 times. This is better than any other period and far in excess of our target for the medi
Slide 8: Moody's rating upgrade to A2
In March 2023, ITOCHU was granted a long‐term rating of A2 from Moody’s, achieving an upgrade from the former A3 rating. Although ITOCHU had long struggled to win an A‐ class rating, we eventually succeeded in winning the A3 rating in 2017. Since then, we have accumulated a steady track record. As a
Slide 9: Highlights in FYE 2023: working system, cybersecurity and ESG evaluation
Highlights in FYE 2023 include the further evolution of ITOCHU’s morning‐focused working system, which contributes to the advancement of women, as part of the development of an in‐house working environment supporting the earnings base. Specifically, we are promoting such initiatives as the provision
Slide 10: FYE 2024 plan for consolidated net profit of ¥780.0 billion
FYE 2024 plan for consolidated net profit aims to achieve ¥780.0 billion, down approximately ¥20.0 billion from ¥800.5 billion in FYE 2023, and factors in a loss buffer of ¥50.0 billion. The inclusion of this loss buffer does not mean that we anticipate specific future risk factors. However, as we o
Slide 11: FYE 2024 company-by-company profit outlook
The Textile Company is planning to expand profit from DESCENTE, DOME and other businesses in the sports field, as well as profit from Converse and others in the shoes field, based on expected recovery in the retail market backed by the regained strength of inbound tourism demand and other areas of p
Slide 12: FYE 2024 loss buffer and core profit outlook
As explained earlier, our FYE 2024 consolidated net profit plan of ¥780.0 billion factors in a loss buffer of ¥50.0 billion. If this buffer were to be left unutilized, consolidated net profit will grow to ¥830.0 billion. This amount, however, includes an extraordinary gain of ¥30.0 billion. Accordin
Slide 13: Shareholder returns: dividend of ¥160 per share and buybacks
As for shareholder returns, we have paid an annual dividend of ¥160 per share, up ¥20 per share from ¥140 per share in FYE 2023. We have thus lived up to our commitment under the medium‐term management plan with regard to incremental annual growth in dividends and a payout ratio of 30%. In addition,
Slide 14: Business environment and FYE 2024 aims
In FYE 2023, Russia’s invasion of Ukraine resulted in significant supply chain disruption, leading to resource panic. Also, policy interest rate hikes, undertaken by EU members and the United States to contain inflation, led to the first major depreciation of the yen in 32 years. As this was complet