Appendix Brand new Deal 2017

Transcription

1 Appendix 9

2 Summary of changes () Progress Gross trading profit (1.1) % Equity in earnings of associates and joint ventures Increase due to lower expenses and extraordinary gains, despite the unfavorable 32. 2% Mar. 217 Jun. 217 sales in apparel-related companies. Total assets (7.3) Profits/Losses from Major Group Companies 32. Annual JOIʼX CORPORATION SANKEI COMPANY LIMITED ITOCHU Textile Prominent (ASIA) Ltd ITOCHU TEXTILE (CHINA) CO., LTD Q 2Q 3Q 4Q 2-4Q 1

3 Summary of changes () Progress Gross trading profit (.4) % Equity in earnings of associates and due to the lower transaction volume (.) joint ventures in automobile-related transactions, and the (4.2) absence of extraordinary gains in the same % period of the previous fiscal year, despite the Mar. 217 Jun. 217 favorable performance in aircraft-related and plant-related companies. Total assets , Q 2Q 3Q 4Q 2-4Q Profits/Losses from Major Group Companies Annual Tokyo Century Corporation * I-Power Investment Inc IMECS Co., LTD JAMCO Corporation (.3) (.1).4.8 * JAPAN AEROSPACE CORPORATION YANASE & CO., LTD. ** ** 2.7 ** SUNCALL CORPORATION * Auto Investment Inc I.C. Autohandles Beteiligungen GmbH Other overseas automobile dealer businesses ITOCHU CONSTRUCTION MACHINERY CO., LTD ITOCHU MACHINE-TECHNOS CORP. (.1) (.1) ITOCHU SysTech Corporation (.2) (.1).4.4 Century Medical, Inc **** The figure is the companyʼs forecasts multiplied by ITOCHU shares, excluding IFRS adjustment. **** 1st Quarter result and Annual are not presented, since these figures are not disclosed by YANASE & Co., LTD. 11

4 Summary of changes () Progress Gross trading profit % Equity in earnings of associates and joint ventures Increase due to the higher iron ore and coal prices, the higher sales volume in iron orerelated % business, and dividends from coal- Mar. 217 Jun. 217 related investments. Total assets Profits/Losses from Major Group Companies Annual ITOCHU Minerals & Energy of Australia Pty Ltd Iron ore * Brazil Japan Iron Ore Corporation ITOCHU Coal Americas Inc. Coal (.1) *..1 (2.9) * (.6).7 (2.6) * Marubeni-Itochu Steel Inc. ITOCHU Metals Corporation * * Due to the relationship with investees and partners, forecast is not presented Q 2Q 3Q 4Q 2-4Q 12

5 Gross trading profit % Energy % Chemicals Increase due to the improvement in profitability in % Equity in earnings of associates and energy-related companies, despite the absence of 1..6 (.4) joint ventures extraordinary gains in the same period of the previous fiscal year % Energy (2.9) % Chemicals (2.2) % Mar. 217 Jun. 217 Total assets 1, ,169. (.6) Energy (56.1) Chemicals Summary of changes () Progress Q 2Q 3Q 4Q 2-4Q Profits/Losses from Major Group Companies Annual ITOCHU Oil Exploration (Azerbaijan) Inc. (1.9) (.2).7.9 ITOCHU PETROLEUM CO., (SINGAPORE) PTE. LTD..5 (.2) ITOCHU ENEX CO., LTD * Dividends from LNG Projects ITOCHU CHEMICAL FRONTIER Corporation ITOCHU PLASTICS INC C. I. TAKIRON Corporation** * *** The figure is the companyʼs forecasts multiplied by ITOCHU shares, excluding IFRS adjustment. *** Takiron Co.,Ltd. and C. I. Kasei Company, Limited merged and formed C. I. TAKIRON Corporation on April 1, 217. Therefore the figures of C. I. TAKIRON Corporation for the previous year presented above shows the aggregate amounts of both companies. 13

6 1Q 2Q 3Q 4Q Full Year 1Q Oil & Gas (1,BBL/day*) (a) 33 (b) (b)-(a) 31 ** Natural Gas converted to crude oil is equivalent to 6,cf =1BBL Iron ore(million t) IMEA Brazil Iron Ore Corporation (CM) (.) 2.5 Coal(million t) (.1) 11.4 IMEA (.1) 5. ICA (Drummond) Reference IMEA Profit IMEA (billion yen) Iron ore N.A. Coal (.1).1 (.8) N.A. IMEA : ITOCHU Minerals & Energy of Australia Pty Ltd CM : CSN Mineracao S.A. ICA : ITOCHU Coal Americas Inc. 14

7 Summary of changes () Progress Gross trading profit Increase due to the higher transaction volume % Equity in earnings of associates and and the lower expenses in fresh-food-related joint ventures companies, the higher prices in fresh-foodrelated transactions, and the higher equity in % Mar. 217 Jun. 217 earnings of associates and joint ventures accompanying the merger of FamilyMart and Total assets 1, , UNY Holdings. Profits/Losses from Major Group Companies FamilyMart UNY Holdings Co., Ltd. Annual * Dole International Holdings, Inc NIPPON ACCESS, INC FUJI OIL HOLDINGS INC * Prima Meat Packers, Ltd * 36.6 ITOCHU-SHOKUHIN Co.,Ltd * 2 HYLIFE GROUP HOLDINGS LTD ** ***** The figure is the companyʼs forecasts multiplied by ITOCHU shares, excluding IFRS adjustment. ***** Due to the relationship with investees and partners, forecast is not presented. 1Q 2Q 3Q 4Q 2-4Q 15

8 Gross trading profit (.5) % Forest Products & General Merchandise Increase due to the stable performance in facilitymaterials-related % Construction, Realty & Logistics (.7) and building-materials-related companies in North America, and extraordinary % Equity in earnings of associates and gains relating to pulp-related and assetmanagement-related companies, despite the joint ventures % lower transaction volume in domestic real-estaterelated Forest Products & General Merchandise transactions % Construction, Realty & Logistics % Mar. 217 Jun. 217 Total assets Forest Products & General Merchandise Construction, Realty & Logistics Summary of changes () Profits/Losses from Major Group Companies Progress 47. Annual European Tyre Enterprise Limited (5.2) ITOCHU FIBRE LIMITED * Japan Brazil Paper & Pulp Resources Development Co., Ltd * ITOCHU KENZAI CORPORATION ITOCHU PROPERTY DEVELOPMENT, LTD. (.3) ITOCHU LOGISTICS CORP * Due to the relationship with investees and partners, forecast is not presented. 1Q 2Q 3Q 4Q 2-4Q 16

9 Gross trading profit % ICT % Financial & Insurance Business (.3) Increase due to the higher transaction volume in domestic ICT-related companies, the higher equity % Equity in earnings of associates and in earnings of associates and joint ventures joint ventures accompanying the recovery of foreign financerelated companies, and extraordinary gains % ICT % Financial & Insurance Business % Mar. 217 Jun. 217 Total assets (38.8) ICT (39.9) Financial & Insurance Business Summary of changes () Progress Profits/Losses from Major Group Companies Annual ITOCHU Techno-Solutions Corporation * CONEXIO Corporation * BELLSYSTEM24 Holdings, Inc * Orient Corporation ** ITOCHU Fuji Partners, Inc * * The figure is the companyʼs forecasts multiplied by ITOCHU shares, excluding IFRS adjustment. ** ITOCHU recognizes the equity in earnings (losses) calculated by multiplying the figures after IFRS ** adjustments by Shares. Not announced the figure since a discrepancy may occur between the ** forecast announced by the company and that of ITOCHU. 1Q 2Q 3Q 4Q 2-4Q 17

10 Gross trading profit (2.) 1. Equity in earnings of associates and joint ventures Increase due to the higher equity in earnings 45. of CITIC Limited. Mar. 217 Jun. 217 Total assets 1,28. 1,278.6 (1.4) Summary of changes () Profits/Losses from Major Group Companies (5.1) C.P. Pokphand Co. Ltd. 1.3 (.1) ** Figures are CITIC related profit which includes related tax effects etc. ** is not disclosed by the company therefore the forecast above is not presented Annual Orchid Alliance Holdings Limited * ** (2) 1Q 2Q 3Q 4Q 2-4Q 18

11 1st Quarter Major New Investments [1Q] Major New Investments Consumerrelated Sector Basic Industryrelated Sector FamilyMart UNY Holdings FamilyMart UNY Holdings additional investment additional investment Consumerrelated Metsa Fibre capital increase and Loan etc. Sector Germany Offshore Wind Power Generation Projects (Butendiek) 115. etc. 3. Basic Industryrelated Sector US Gas-Fired Thermal Power Generation Project (Empire) etc. 3. etc. Non-Resource Non-Resource 7. Resourcerelated Sector IMEA expansion ACG capital expenditure etc. Resourcerelated Sector IMEA capital expenditure ACG capital expenditure etc. Resource Resource 1. Total of Major New Investments Total of Major New Investments 8. EXIT (95.) (3.) EXIT (15.) Net Investment Amount Net Investment Amount 65. Note1 : The above figures are approximate. Note2 : Net Investment Amount Payments and collections for substantive investment and capital expenditure. Investment Cash Flows plus Equity transactions with non-controlling interests minus increase/decrease of loan receivables, etc. 19

12 5 4 FY216 1Q image Core FCF targets over 1.+α 1Q:65. 1Q:6. 1Q:9. (1) (2) (Note.1) (Note.2) Core Operating CF Net Investment CF Core FCF FY216 1Q image Cash flows from operating activities a (Note 1) Core operating cash flows approx.4. b (Note 2) Net investment cash flows 35. (12.) (65.) a+b Core free cash flows approx. 41. approx. 3. approx. 25. Over 1.+α Shareholder (Note 3) \64/share Dividend 5/share (79.1) 55/share (86.6) - Minimum Dividend returns Share buy back - (16.2) (27.9) Note 1: Operating Cash Flows minus increase/decrease of working capital Note 2: Payments and collections for substantive investment and capital expenditure. Investment Cash Flows plus Equity transactions with non-controlling interests minus increase/decrease of loan receivables, etc. Exclude investment into CITIC Limited Note 3: The sum of the interim dividend and the year-end dividend each year. 2

13 Trading income (after tax) Equity in earnings of associates and joint ventures Other (after tax) (.8) (.6) (2.3) (1.3) 13. (3.5) (2.5) (.4) 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q Textile Machinery Metals & Minerals Energy & Chemicals Food General Products & Realty ICT & Financial Business Others 21

14 Gains(Losses) related to investments 6.5 Gain on sales of a medical-device-related company: approx. 2.5 (Machinery) 3. Gain due to sales of an asset-management -related company:approx. 2. (General Products & Realty) Income tax expense, Others (5.) Anticipatory derivative evaluation losses in owned crude oil fields: approx. (1.5) (Energy & Chemicals) 4.5 in tax expense relating to pulp-related company: approx. 3. (General Products & Realty) Total Non-Resource Resource (3.).5 Others (1.5) (2.) 22

15 Dividend Policy remains unchanged from Brand-new Deal 217 dividend policy, as below. For, with the intention of increasing shareholder returns, based on the high probability of achievement of business plan and expected cash flow, we guarantee a minimum dividend per share of 64, our record high dividend. Dividend Policy remains unchanged from Brand-new Deal 217 dividend policy(*), and we will continue to make our best efforts to share the growth and generated profit with our shareholders and to increase shareholder returns. (*)Brand-new Deal 217 dividend policy Payout ratio of 2% for up to 2. billion and approx. 3% on the portion of exceeding 2. billion. Dividend per share(yen) (billion yen) (Minimum Dividend) FY21 FY211 FY212 FY213 FY214 FY215 FY216 (Plan) U.S. GAAP IFRS 23

16