Itochu Corp (ITOCF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone, this is Keita Ishii, President. First, I will explain the overview of the FYE 2025 Business Results and FYE 2026 Management Plan. Afterward, CFO Hachimura will provide details on the quantitative aspects. First, please refer to page 3 regarding the FYE 2025 Business Results. Regarding consolidated net profit, against a plan of 880 billion, we achieved 880.3 billion yen, setting a record high. The business environment in FYE 2025 shifted to weak in the second half, unlike FYE 2024. In this circumstance, businesses influenced by international markets such as resource prices did not perform well, marking a year with clear distinctions between prosperous and unprosperous businesses. On the other hand, the yen depreciation unexpectedly to over 150 yen in the second half, remaining more depreciated than anticipated throughout the fiscal year, which supported our performance. Consequently, including extraordinary gains and losses of 110 billion yen, we managed to achieve a planned growth of 10%. Next, the core profit decreased by 2.4% compared to the previous fiscal year to 770 billion yen. There were turnarounds in CPP and HiLife, which struggled in FYE 2024, and profit accumulation from growth investments. However, significant declines in resource prices, accidents, and operational issues in two coking coal projects led to substantial declines in the resource sector. Additionally, Marubeni Itochu Steel, the North American electric power and construction materials businesses, struggled due to the economic downturn in North America resulting in an overall decline in earnings. By segment, although machinery, food, ICT and financial, the eighth and other segments achieved record high core profit, the decrease in resource sector and the decline in some business...