ITOCHU (8001) Investor presentation summary

Growth track record

• Consolidated net profit grew from ¥161 billion in FY2010 to ¥880 billion in FY2024, a 13% CAGR.

• Non-resource businesses drove high growth, with a 17% CAGR versus 4% for resource segments.

• ROE averaged 16.3% from FY2010–2024, consistently outperforming peers.

• Asset allocation shifted to 91% non-resource assets by FY2024, with continuous asset replacement.

Management policy and financial logic

• Introduced "The Brand-new Deal" in April 2024, focusing on downstream, consumer-oriented growth.

• Shifted from medium-term to annual management plans for greater commitment and flexibility.

• Targets a total payout ratio of 40% or more and ROE above 15%.

• FY2025 shareholder returns include a 52% payout ratio, ¥42 per share dividend, and ¥170 billion in buybacks.

• Maintains strong credit ratings and a net DER below 0.6x, balancing growth investments and shareholder returns.

Growth enablers and investment approach

• Growth driven by both M&A and organic expansion, leveraging a deep internal talent pool.

• Centralized HQ approval for investments over ¥5 billion, with about 70 industry-specific hurdle rates.

• Maintains a 9:1 non-resource to resource asset ratio, focusing on long-term, high-visibility projects.

• HQ controls leverage and asset allocation, while segments focus on improving ROA.