Earnings Transcript for 8001.T - Q1 Fiscal Year 2023

Tsuyoshi Hachimura: I am Tsuyoshi Hachimura, CFO of ITOCHU Corporation. Thank you very much for joining us. I'd like to now present the business results for the Q1 of FYE 2023. We have already made the material available from our website. So I'll be using the PowerPoint presentation material, starting with Page 3. This is a summary. Net profit attributable to ITOCHU was ¥230.6 billion, Making a strong progress toward the forecast of ¥700 billion, achieving 33%. In Q1 last year, we had a record high number of ¥267.5 billion. And this time, we have a second highest net profit number. . There is a positive impact of the high resource prices. But our strength, which is the nonresource businesses, our revenue and profit grew steadily despite the weaker yen and inflation. The percentage of the nonresource business is about 70% based upon our portfolio. The core profit, excluding extraordinary gains and losses, we renewed all-time high in every single quarters, both in nonresource and resource sectors. At the bottom of this page, we are showing the asterisks and single asterisk means the record high number in all the quarters and double asterisk signified the record high for the Q1 results in consideration for the seasonality. If I compare the year-on-year revenue, gross trading profit, operating income and equity earnings, they are all higher than the year before. But the extraordinary gains and losses of the previous year was very high. And this number was lower by ¥68 billion. And as a result, the net profit was ¥36.8 billion decrease. That is the 13.8% year-on-year decline. Profits increased in Energy & Chemicals and Food, but in other companies, it seems there was a major extraordinary gains in the previous year, the profit declined. Now the key point of the Q1 is as follows

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