Consolidated Financial Results for FY2020 (IFRS)

Net profit attributable
to ITOCHU
 501.3billion yen

(increased by 0.2%

compared with the previous fiscal year)

Equity in earnings
of associates
and joint ventures
 205.9billion yen

 

(increased by 109.9%

compared with the same period of the previous fiscal year)

Net profit attributable to ITOCHU

501.3billion yen (increased by 0.2% compared the the previous fiscal year)

 

Net profit attributable to ITOCHU increased by 0.2%, or 0.8 billion yen, compared withthe previous fiscal year to 501.3 billion yen (4,606 million U.S. dollars).

Equity in earnings of associates and joint ventures

205.9 billion yen (increased by 109.9% compared with the previous fiscal year)

 

Equity in earnings of associates and joint ventures increased by 109.9%, or 107.8 billion yen, compared with the previous fiscal year to 205.9 billion yen (1,891million U.S. dollars).

 

  • Others, Adjustments & Eliminations: (*)

    Increased by 153.0 billion yen compared with the previous fiscal year to 75.2 billion yen (691 million U.S. dollars), due to the absence of the impairment loss on investment in CITIC Limited in the previous fiscal year.

  • General Products & Realty Company:

    Decreased due to the lower equity in earnings in IFL (European pulp-related company) resulting from the lower pulp prices and the impairment loss in Japan Brazil Paper & Pulp Resources Development.

  • The 8th Company:

    Decreased by 11.9 billion yen compared with the previous fiscal year to 1.5 billion yen (13 million U.S. dollars), due to the conversion of FamilyMart into a consolidated subsidiary in the second quarter of the previous fiscal year.

 

(*) "Others, Adjustments & Eliminations" includes gains and losses which do not belong to any operating segment and internal eliminations between operating segments.

Net profit attributable to ITOCHU by Segment Summary of changes from the previous fiscal year

Textile Company

9.1 billion yen (decreased by 20.7 billion yen compared with the previous fiscal year)

Decrease due to unfavorable sales resulting from the effects of warm winter and the new coronavirus in apparel-related companies, the stagnation in overall transactions including textile materials, and the provision for foreign receivables, and the absence of the gain on sales of a foreign apparel-related company in the previous fiscal year.

Machinery Company

56.7 billion yen (increased by 9.6 billion yen compared with the previous fiscal year)

Increase due to the improvement in profitability in YANASE, the stable performance in ship relatedtransactions, and the absence of losses on North American IPP companies in the previous fiscal year, despite the impairment loss in a foreign company.

Metals & Minerals Company

111.4billion yen (increased by 32.6 billion yen compared with the  previous fiscal year)

Increase due to the higher iron ore prices, the increase in dividends received in a Brazilian iron ore company, and lower tax expenses in natural-resource-projects, despite the lower coal prices.

Energy & Chemicals Company

61.7 billion yen (decreased by 16.6 billion yen compared with the previous fiscal year)

Decrease due to the absence of the gain on sales of a North Sea oil fields development company in the previous fiscal year and the lower equity in earnings in petrochemical-related companies as well as Japan South Sakha Oil, despite the increased vessel allocation in CIECO Azer and the gain on sales of fixed assets in C.I. TAKIRON.

Food Company

49.9 billion yen (increased by 3.6 billion yen compared with the previous fiscal year)

Increase due to the stable performance in NIPPON ACCESS and the revaluation gain accompanying the conversion of Prima Meat Packers into a consolidated subsidiary, despite the lower sales prices in fresh products, the increase in costs in packaged products, and impairment losses in Dole in addition to the lower equity in earnings in North American grain-related companies resulting from weather factors.

General Products & Realty Company

55.0 billion yen (decreased by 7.6 billion yen compared with the previous fiscal year)

Decrease due to the lower pulp prices, the lower transaction volume in domestic logistics-facilitydevelopment-projects, and the impairment loss in Japan Brazil Paper & Pulp Resources Development, despite the improvement in profitability in North American facility-materials-related companies, the stable performance in ETEL(European tire-related company), the extraordinary gains accompanying the partial sales of foreign companies, and the extraordinary gains in ITOCHU LOGISTICS.

ICT & Financial Business Company

62.5 billion yen (decreased by 4.3 billion yen compared with the  previous fiscal year)

Decrease due to the lower gains on fund operations and the absence of the extraordinary gains in the previous fiscal year, despite the stable performance in ITOCHU Techno-Solutions, the extraordinary gain accompanying the partial sales of a domestic company, and the revaluation gain accompanying the conversion of a domestic insurance-related company into a consolidated subsidiary.

The 8th Company

26.1 billion yen (decreased by 140.8 billion yen compared with the previous fiscal year)

Decrease due to the absence of extraordinary gains in the previous fiscal year, the effect of the sale of UNY in the fourth quarter of the previous fiscal year, and the cost for the early retirement plan, despite the stable performance and lower tax expenses in FamilyMart.

Others, Adjustments & Eliminations

69.0 billion yen (increased by 145.0 billion yen compared with the previous fiscal year)

Improvement due to the absence of the impairment loss on investment in CITIC Limited accounted for by the equity method in the previous fiscal year.

*Accompanying the establishment of The 8th Company on July 1, 2019, the amounts under “FY2019 3Q” are presented post reclassification.

Financial Position as of March 30, 2020

Total assets  10,919.6billion yen (increased by 8.1%
compared with March 31, 2019)
Total shareholders' equity    2,996.0 billion yen

(increased by 2.0%

compared with March 31, 2019)

Net interest-bearing debt    2,256.9billion yen

(decreased by 6.2%

compared with March 31, 2019)

NET DER    0.75 times

(improved by 0.07pt

compared with March 31, 2019)

Total assets

10,919.6 billion yen (increased by 8.1% compared with March 31, 2019)

 

Total assets increased by 8.1%, or 820.9 billion yen, compared with March 31, 2019 to 10,919.6 billion yen (100,336 million U.S. dollars), due to the effects of the application of new accounting standards (IFRS 16 “Leases”) and the conversion of Prima Meat Packers into a consolidated subsidiary, despite the effect accompanying the appreciation of the yen and the decreased trade receivables accompanying the absence of the effect of the last day of the previous fiscal year falling on a weekend.

Total shareholders' equity

2,996.0 billion yen (increased by 2.0% compared with March 31, 2019)

Net interest-bearing debt

2,256.9 billion yen (decreased by 6.2% compared with March 31, 2019)

NET DER

0.75 times (improved by 0.07pt compared with March 31, 2019)

  • Total shareholders’ equity

    Increased by 2.0%, or 59.0 billion yen, compared with March 31, 2019 to 2,996.0 billion yen (27,529 million U.S. dollars), due to Net profit attributable to ITOCHU during this fiscal year, despite the decrease resulting from dividend payments, the repurchase of own shares, the effect accompanying the appreciation of the yen, and the decline in the fair value of stocks.

  • Interest-bearing debt

    Decreased by 6.2%, or 149.9 billion yen, compared with March 31, 2019 to 2,256.9 billion yen (20,739million U.S. dollars), due to the repayment of borrowings accompanying stable performance in operating revenues and steady collections, despite dividend payments and the repurchase of own shares.
    Interest-bearing debt decreased by 3.6%, or 106.9 billion yen, compared with March 31, 2019 to 2,877.0 billion yen (26,436 million U.S. dollars).

  • Ratio of shareholders’ equity to total assets and NET DER (Net debt-to-shareholders’ equity ratio)

    Ratio of shareholders’ equity to total assets decreased by 1.6 points compared withMarch 31, 2019 to 27.4%.
    NET DER (Net debt-to-shareholders’ equity ratio) improved compared with March 31, 2019 to 0.75 times.

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