Management Policy
The Brand-new Deal
- Profit opportunities are shifting downstream -
April 3, 2024
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Management Policy -
- Profit opportunities are shifting downstream -
We aim to achieve sustainable enhancement in corporate value,
by having all employees, from the business divisions to
the administrative divisions, always enhancing their marketing capabilities,
leveraging the assets and expertise of upstream and midstream,
which we have been building up for over 160 years since our founding, while developing and evolving downstream businesses that are closer to consumers.
Grow earnings
Enhancement of
corporate
brand value
Shareholder
returns
No growth without investments
Enhancement in qualitative aspects
Total payout ratio 40% or more
The higher of 30% dividend payout ratio
or dividend ¥200 per share
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No Growth without Investments
Accelerate growth investments starting from a downstream, leveraging a stable business foundation, to grow earnings.
Strive for further growth through the expansion of business areas
and strengthening and expanding business foundation.
Stable business
foundation
Traditionally strong | Accelerate growth |
downstream area | investments |
- Assets and expertise of upstream and midstream
- Expansion of business areas
- Further strengthening and expanding business foundation
Market-oriented perspective
Developing and evolving downstream businesses that are closer to consumers
- Maximizing synergies by horizontal collaboration among Division Companies
- Business transformation and creation through business integration
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Enhancement of Corporate Brand Value
Built a "corporate brand" through high external evaluations
based on the accumulation of innovative initiatives, creating a synergy effect
with financial growth, thereby enhancing corporate value.
Based on the "market-oriented perspective," we aim to further enhance brand value by listening to the voices of the market, society, and consumers, and continuing to refine our qualitative aspects diligently.
Reinforcement of human capital
- Continuing to secure outstanding human resources by maintaining our position as the No.1 company selected by students
- Continuously cultivating a diverse pool of management talent based on their capabilities, regardless of age or gender, through our Executive Officer appointment policy
- Improving Employees' willingness to contribute by realizing "challenging but rewarding workplace" and pursue further labor productivity
Strengthening dialogue with stakeholders
- Building and accumulating trust through actively incorporating insights gained from a wide range of dialogues into our management
- Enhancing our presence through expanding our contact points with consumers through unique channels and businesses
Enhancing our contribution to and engagement with the SDGs through business activities
- Continuously responding to social demand by aiming to balance both sustaining the basic policies outlined in the previous medium-term management plan and promoting businesses that contribute to emissions reduction
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Shareholder Returns / Financial Policy
Share- | Total | 40% or more | ||||||||
payout ratio | ||||||||||
holder | ||||||||||
The higher of 30% payout ratio or dividend ¥200 per share | ||||||||||
returns | Dividends | |||||||||
policy | While based on principle of 30% payout ratio, also consider the minimum dividend of | |||||||||
¥200 per share with an eye to the profit stage in the future | ||||||||||
Increase of ¥40 from | ||||||||||
the previous fiscal year | ||||||||||
Total payout ratio | 200 | Dividend ¥200 | ||||||||
Dividend per share (yen) | (Minimum) | per share or more | ||||||||
Total payout ratio
40% or more
(FYE)
Share buybacks (Billions of yen)
16.2 27.9 68.0 62.0 13.5 60.0 60.0 100.0 Execute share buybacks
actively and continuously
Financial | Maintaining financial foundation based on balancing three factors |
policy | (Growth investments, shareholder returns, and control of interest-bearing debt) |
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FYE 2025 Management Plan
Profit Plan
Consolidated
net profit
¥880.0 billion
ROE
16%
Shareholder
Returns
Total payout ratio
Aiming at 50%
Dividends
Minimum of ¥200 per share
(Increase of ¥40 from the previous fiscal year)
Share buybacks
Approx. ¥150.0 billion
Growth
Investments
Investment
amount
Maximum ¥1trillion
Core operating cash flows after deducting shareholder returns in FYE2025
-
Surplus capital in the previous medium-term
management plan
NET DER
Less than 0.6 times
*1 | The assumptions for major indicators are as follows: 140 yen/US$ for exchange rate (average), | |
80 US$/BBL for crude oil (brent), 0.4% for interest rate (TIBOR 3M) (¥), | ||
and 5.0% for interest rate (SOFR 3M) (US$). | ||
*2 | The profit plan by segment and the outlook for other detailed information will be announced on May 8th. | 6 |
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The Brand-new Deal Appendix
8
The Past Medium‐Term Management Plan
(Brand-new Deal)
General Review |FYE 2012 - 2024
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GeneralReview The Growth Trajectories
Overcoming environmental changes and steadily achieving growth,
thereby raising the profit stage step by step.
(Billions of yen) Consolidated Net Profit | Establishment | |||||||||
of ¥800.0 billion | ||||||||||
profit stage | ||||||||||
800 | ||||||||||
Establishing a | Continued to achieve | |||||||||
foothold for | ||||||||||
600 | ¥500.0 billion | significant growth | ||||||||
Building an earnings | ||||||||||
base aimed at ¥400.0 billion
400¥300.0 billion
Profit stage
200
BND2012 BND2014 BND2017 BND2020BND2023
0 | 2011 | 2024 |
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Itochu Corporation published this content on 10 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2024 05:24:02 UTC.