Itochu Corp (ITOCF) Q1 2026 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:00.419 -- 00:00:04.202 Hello everyone, this is Hachimura CFO. 00:00:04.202 -- 00:00:10.008 Today I'd like to explain our results for the first quarter using the presentation titled 00:00:10.008 -- 00:00:13.091 Business Results Summary. 00:00:13.091 -- 00:00:18.836 Let's begin with page 3 of the PowerPoint showing the business results. 00:00:18.836 -- 00:00:23.160 Our consolidated net profit was 283.9 billion yen. 00:00:23.160 -- 00:00:27.384 This was partly driven by progress made in our asset replacement strategy and we achieved 00:00:27.384 -- 00:00:29.798 a record Q1. 00:00:29.798 -- 00:00:33.707 In terms of year-on-year, it was 137% 00:00:33.707 -- 00:00:38.780 of the same period last year, and we made 32% progress towards the 900 00:00:38.780 -- 00:00:41.486 billion yen consolidated net profit target. 00:00:41.486 -- 00:00:46.138 The numbers are not evenly spread throughout the quarters, but we made a good start in 00:00:46.138 -- 00:00:49.521 line with our initial plan. 00:00:49.694 -- 00:00:54.940 There were a lot of one-off impact in Q1, but our business 00:00:54.940 -- 00:00:58.484 model tends to be concentrated towards the second half of the year. 00:00:58.484 -- 00:01:02.609 We have no concerns in achieving the annual budget and are making good progress in the 00:01:02.609 -- 00:01:07.635 various parts of our profit growth plan. As for the impact from tariffs, as 00:01:07.635 -- 00:01:13.370 we highlight at the bottom points section, the impact in Q1 was minimal. 00:01:13.370 -- 00:01:18.877 And thanks to the agreement reached on reciprocal tariffs, there is now less uncertainty. 00:01:18.877 -- 00:01:23.524 However, that doesn't change the fact that there was a big increase in the tariff amount, 00:01:23.524 -- 00:01:28.671 and we need to con...