May 7, 2010

ANNUAL FINANCIAL STATEMENTS
For years ended March 31, 2010 and 2009

Page:

1-2

: Consolidated Financial Results for Fiscal Year 2010 (Year ended March 31, 2010)

3-11: 1. Summary of Operations

12-15 : 2. Performance of Group Companies attributable to ITOCHU
16-19 : 3. Management Policy
4. Consolidated Financial Statements
20-21 :
22-23 :
24-26
27-28
29-30
31
31-32
33-34
35-38
39
39

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(1) Consolidated Statements of Income - Annual (for the years ended March 31, 2010 and 2009)(2) Consolidated Statements of Income & Consolidated Statements of Comprehensive Income - Quarterly(for the three months ended March 31, 2010 and 2009)(3) Consolidated Balance Sheets (as of March 31, 2010 and 2009)(4) Consolidated Statements of Equity (for the years ended March 31, 2010 and 2009)(5) Consolidated Statements of Cash Flows (for the years ended March 31, 2010 and 2009)(6) Assumption for Going Concern(7) Basis of Consolidated Financial Statement(8) Changes of Basis of the Consolidated Financial Statements(9) Operating Segment Information(10) Per share Information(11) Material subsequent events

40-41 : 5. Financial Highlights

ITOCHU Corporation

May 7, 2010

- Unaudited Consolidated Financial Results for Fiscal Year 2010 (Year ended March 31, 2010)[Prepared in conformity with accounting principles generally accepted in the United States of America]
Company name:

ITOCHU Corporation
8001

Stock exchange code:
President and Chief Executive Officer:
Masahiro Okafuji
General Manager of Corporate Communications Division: Tomoyuki Takada
The date of Shareholders' meeting
June 25, 2010 (Planned)
The date of issue of audited financial statements
June 25, 2010 (Planned)

URL: http://www.itochu.co.jp/en/ir/
TEL: 81 - 3 - 3497 - 7291
The date of payout of dividend June 28, 2010 (Planned)

1. Consolidated operating results for fiscal year 2010 (from April 1, 2009 to March 31, 2010)(1) Consolidated operating results (Summary)(%: Changes from the previous fiscal year)

Total trading transactions

Fiscal year 2010
Fiscal year 2009

Income before income taxes
and equity in earnings ofassociated companies

Trading income (*1)

Net income attributable
to ITOCHU (*2)

millions of yen%

millions of yen%

millions of yen%

millions of yen%

10,306,799
12,065,109(14.6)
2.9

147,414275,664(46.5)
4.0

154,986
208,258(25.6)(25.8)

128,153
165,390(22.5)(23.9)Net income attributable
to ITOCHU per share(basic) (*2)

Net income attributable
to ITOCHU per share(diluted) (*2)

Ratio of net income
attributable to ITOCHU tostockholders' equity (*2)

yen

yen

%

Please refer
the below (*3)

Please refer
the below (*4)
%

%

81.09
80.91
13.2
2.9
Fiscal year 2010
104.64103.9418.1
4.0
Fiscal year 2009(*1) "Trading income" = "Gross trading profit" + "Selling, general and administrative expenses" + "Provision for doubtful receivables"(*2) "Net income" and "Net income per share" up to the fiscal year 2009 will replace to "Net income attributable to ITOCHU" and "Net income
attributable to ITOCHU per share" respectively. Please refer to "New Accounting Pronouncements" on (8), page 33.
(*3) Income before income taxes and equity in earnings of associated companies / Total assets(*4) Trading income / Total trading transactions

1.4
2.3

(2) Consolidated financial position
Total assets

Total ITOCHU
Ratio of ITOCHU stockholders'equity to total assets
stockholders' equity (*5)

Total equity

millions of yen

millions of yen

millions of yen

ITOCHU stockholders'equity per share%

5,476,847
1,098,419
1,311,353
March 31, 2010
5,192,092
1,037,355
849,411
March 31, 2009(*5) "Total ITOCHU stockholders' equity" = "Total equity" - "Noncontrolling interest"
Please refer to "New Accounting Pronouncements" on (8), page 33.

yen

20.1
16.4

694.98537.43(3) Consolidated cash flows information
Operating activities

Investing activities

millions of yen

millions of yen

295,376
276,854

Fiscal year 2010
Fiscal year 2009

Cash and cash equivalents

Financing activities
millions of yen

millions of yen(258,987)
258,322(196,318)(326,033)

475,674
628,820

2. Dividend distribution
Dividend distribution per share
End offirstquarter

End ofsecondquarteryen

Fiscal year 2009
Fiscal year 2010
Fiscal year 2011
(Planned)

End ofthird
quarteryen

Year-endyen

Annual

yen

yen

-

10.50
7.50

-

8.00
7.50

18.50
15.00

-

9.00

-

9.00

18.00

Total Dividend
distribution(Annual)Ratio of dividend
distribution to
ITOCHUstockholders' equity

Payout ratio(Consolidated)

millions of yen%

29,262
23,727

%

3.2
2.4

17.7
18.5
17.8

3. Outlook of consolidated operating results for fiscal year 2011 (from April 1, 2010 to March 31, 2011)(%: Changes from the previous fiscal year)

Total trading transactions
millions of yen%

Trading income (*1)
millions of yen%

Income before income taxes
and equity in earnings ofassociated companies

Net income attributable
to ITOCHU (*2)

millions of yen

millions of yen%

Net income attributable
to ITOCHU per share(basic) (*2)%

Fiscal year 2011
11,500,000
11.6
260,000
76.4
210,000
35.5
160,000
24.9
101.23(*1) "Trading income" = "Gross trading profit" + "Selling, general and administrative expenses" + "Provision for doubtful receivables"(*2) "Net income" and "Net income per share" up to the fiscal year 2009 will replace to "Net income attributable to ITOCHU" and "Net income
attributable to ITOCHU per share" respectively. Please refer to "New Accounting Pronouncements" on (8), page 33.

− 1 −

yen

4. Other information(1) Changes of classification of specified subsidiaries(*) accompanied by changes in the consolidation scopeduring the fiscal year 2010:
N/A(*) Specified subsidiaries: Major subsidiaries selected according to the Japanese Cabinet Office Ordinance(2) Changes of accounting policies or presentation ways in the consolidated financial statements(a) Changes due to amendment of accounting standards:
Yes(b) Other changes:
N/A
Please refer to "New Accounting Pronouncements" on (8), page 33.
(3) Number of common shares issued(a) Number of common shares outstanding:(including the number of treasury stock)(b) Number of treasury stock:(c) Average number of commonshares outstanding:

As of end of FY 2010

1,584,889,504

As end of FY 2009

1,584,889,504

As of end of FY 2010

4,379,005

As end of FY 2009

4,374,899

For FY 2010

1,580,448,671

For FY 2009

1,580,579,472[Note]
1. This document is an English translation of a statement written initially in Japanese. The Japanese original should be considered
the primary version.
2. The financial statements contain forward-looking statements regarding ITOCHU Corporation's corporate plans, strategies, forecasts,
and other statements that are not historical facts. They are based on current expectations, estimates, forecasts and projections about
the industries in which ITOCHU Corporation operates. As the expectations, estimates, forecasts and projections are subject to a numberof risks, uncertainties and assumptions, including without limitation, changes in economic conditions; fluctuations in currency exchange
rates; changes in the competitive environment; the outcome of pending and future litigation; and the continued availability of financing
and financial instruments, they may cause actual results to differ materially from those presented in such forward-looking statements.
ITOCHU Corporation, therefore, wishes to caution that readers should not place undue reliance on forward-looking statements, and,further that ITOCHU Corporation undertakes no obligation to update any forward-looking statements as a result of new information,
future events or other developments.
3. "Total trading transactions" and "Trading income" are presented in accordance with Japanese accounting practice.
-"Total trading transactions" in the consolidated statements of income consists of sales with respect to transactions in which
the companies act as principal and the total amount of transactions in which the companies act as agent.
-"Trading income" = "Gross trading profit" + "Selling, general and administrative expenses" + "Provision for doubtful receivables"
4. The consolidated financial statements are expressed in yen and, solely for the convenience of the reader, have been translated into
11U.S. dollars at the rate of 93.04 yen = 1 U.S. dollar, the exchange rate prevailing on March 31, 2010. The translation should not
11be construed as a representation that the Japanese yen amounts could be converted into U.S. dollars at the above or any other rate.
5. In the first quarter of this fiscal year, "Statement of Financial Accounting Standards (SFAS)" No.160 was applied. It has been
codified to "FASB Accounting Standards Codification™ (ASC)" Topic 810 (Consolidation). For details, please refer to"New Accounting Pronouncements" on (8), page 33.
6. "ITOCHU" in items of A/C on the consolidated financial statements represents ITOCHU Corporation.

− 2 −1. Summary of Operations(1) General Economic Situations
In fiscal 2010, there was not a fully enough but continuously gradual recovery in the world economy from its deep recession phasecaused by the financial crisis occurred mainly in developed countries, because of huge economic stimulus packages taken in various
countries, eased monetary policies, and stabilized financial markets as well. In the United States of America, its economy started
recovering after the last summer as its huge economic stimulus plans got effective. Also in Europe at the same time, economic policies
worked effectively enough to recover economic situations in many countries, but the recovery pace was relatively slower than that inother regions. In emerging countries such as China, India, and Brazil, their economies steadily expanded with driving powers ofincreasing domestic demands supported by aggressive financial and monetary policies, and led the world economy. Such a recovery
pace made the commodity prices rose like crude oil prices.
Japanese economy came out of recession in the last spring as exports mostly to Asian countries revived. Later on, though gradually,
it continued recovering with the background of more increased shipments and stimulus packages for consumer durables by thegovernment such as "ECO POINT" (reward for purchasing some specific energy-efficient home appliances) and "ECO-CAR
GENZEI" (tax exemption for purchasing eco-cars). In harmony with the recovery, the Nikkei Stock Average rose from around 8,000
yen in last April to around 11,000 yen in the end of this March. In foreign exchange markets, yen got highly appreciated so as theexchange rate marked under 90 yen/USD in last November, due to the growing concerns about the budget deficit in the United Statesof America, and decreased inter-currency interest spread between Japan and the United States of America. However, after lastDecember, as negative concerns for American financial deficit diminished and this made the spread increase, yen got so depreciatedthat the exchange rate marked over 90 yen per USD in the end of March.

(2) Analysis of Operating Resultsi) Operating results for fiscal 2010 (from April 1, 2009 to March 31, 2010)
Revenue for the fiscal 2010 ended March 31, 2010 decreased by 0.1% or 2.4 billion yen to 3,416.6 billion yen (36,722 million U.S.
dollars) compared with the previous fiscal year, mainly due to, in Machinery, low transactions in automobiles and construction
machinery; in Chemicals, Forest Products & General Merchandise, housing market slowdown in Japan and the U.S., and the effectfrom the deconsolidation by the sale of a subsidiary in the U.S. in the previous fiscal year; and in Food, price falls in food materials
such as feed grains, oils and fats, even though it increased, in Energy, Metals & Minerals, due to the effect of an acquisition of
ITOCHU ENEX CO., LTD. in the last third quarter despite the significant price falls on annual average in mineral resources and oil &gas.
Gross trading profit decreased by 12.8% or 136.2 billion yen to 924.4 billion yen (9,935 million U.S. dollars) compared with theprevious fiscal year, mainly due to, in Energy, Metals & Minerals, significant price falls on annual average in mineral resources and oil& gas despite the positive effect from the acquisition of ITOCHU ENEX CO., LTD., and in Machinery, low transactions ofautomobiles and construction machinery, and the absence of multiple deliveries of newly built ships in the previous fiscal year.
Selling, general and administrative expenses increased by 0.2% or 1.8 billion yen to 769.9 billion yen (8,275 million U.S. dollars)compared with the previous fiscal year, mainly due to low performance of pension asset management and pension cost increase
resulting from decrease in pension assets in the last fiscal year, in addition to the increase after the acquisitions of several companies
including ITOCHU ENEX CO., LTD., even though it decreased due to cost reduction and deconsolidation in existing groupsubsidiaries.
Provision for doubtful receivables decreased by 57.9% or 9.7 billion yen to loss of 7.0 billion yen (76 million U.S. dollars)compared with the previous fiscal year, due to the absence of the provision for doubtful receivables from Machinery-related customers
in Mongolia in the previous fiscal year, despite other provision for doubtful receivables.
Net interest expenses improved by 14.0% or 4.1 billion yen to expenses of 25.3 billion yen (272 million U.S. dollars) comparedwith the previous fiscal year mainly due to the upturn resulting from lower interest rates in U.S. dollars. Dividends received decreased
by 17.5% or 6.1 billion yen to 28.9 billion yen (311 million U.S. dollars) compared with the previous fiscal year, mainly due to− 3 −decrease in dividends from LNG-related investments, despite increase in oil and gas-related investments. Therefore, Net financial
income (expenses) or total of Net interest expenses and Dividends received, worsened by 2.0 billion yen to income of 3.6 billion yen(38 million U.S. dollars).
Concerning the other profits and losses, compared with the previous fiscal year, Loss on investments-net improved by 18.6 billion
yen to loss of 4.5 billion yen (48 million U.S. dollars), due to significant decrease in devaluation loss with the gradual recovery of stock
markets despite slight decrease in gain on sales of investments, and increase in loss on disposal of group companies as a result of therestructuring of some group companies. Loss on property and equipment-net improved by 36.9 billion yen to loss of 8.5 billion yen(92 million U.S. dollars), due to the absence of the loss arising from the Entrada Oil/Natural Gas Field Development Project in the U.S.
Gulf of Mexico in the previous fiscal year in addition to decrease in impairment loss and gain on sales of properties in several
subsidiaries. Gain on bargain purchase in acquisition recorded 14.0 billion yen (151 million U.S. dollars). This figure wasrecognized as at acquisitions of C.I.Kasei Co., Ltd., ITOCHU LOGISTICS CORP, and Leilian Co., LTD. (See Note 1). Other-net
improved by 7.5 billion yen to gain of 3.0 billion yen (32 million U.S. dollars), due to the absence of the loss from the Entrada
Oil/Natural Gas Field Development Project in the previous fiscal year in addition to improved gain (loss) on foreign currencytranslation.
As a result, Income before income taxes and equity in earnings of associated companies decreased by 25.6% or 53.3 billion yen
to 155.0 billion yen (1,666 million U.S. dollars) compared with the previous fiscal year.
Income taxes decreased (improved) by 29.1% or 21.2 billion yen to 51.6 billion yen (555 million U.S. dollars) compared with theprevious fiscal year.
Equity in earnings of associated companies worsened by 12.2% or 5.0 billion yen to gain of 36.3 billion yen (390 million U.S.
dollars) compared with the previous fiscal year, due to decrease in steel products, mineral resources, and pulp-related companies, aswell as impairment loss on investments in restaurant chain and finance-related associated companies as a result of the revaluation of
their fair values and less equity in earnings from them, despite some increase in associated companies newly purchased or reorganizedin Textile; Machinery; Energy, Metals & Minerals; and Food in addition to increase in existing associated companies as well in
Machinery; and ICT , Aerospace & Electronics. Therefore, Net income decreased by 21.0% or 37.1 billion yen to 139.7 billion yen(1,501 million U.S. dollars) compared with the precious fiscal year.
As a result, Net income attributable to ITOCHU, calculated by Net income minus Net income attributable to thenoncontrolling interest, 11.5 billion yen (124 million U.S. dollars), decreased by 22.5 % or 37.2 billion yen to 128.2 billion yen(1,377 million U.S. dollars) compared with the previous fiscal year.
(Note 1)

The net impact for Net income attributable to ITOCHU is 6.2 billion yen (after income tax effect), which is total of Gain on
bargain purchase in acquisition and loss on revaluation for pre-existing interests.

(Supplemental information)"Total trading transactions" in accordance with Japanese accounting practice for fiscal 2010 decreased 14.6% or 1,758.3 billion
yen to 10,306.8 billion yen (110,778 million U.S. dollars) mainly due to in Energy, Metals & Minerals, price falls on annual averagein mineral resources and oil & gas despite an acquisition of ITOCHU ENEX CO., LTD.; in Machinery, the absence of multipledeliveries of newly built ships in the previous fiscal year in addition to low transactions in automobiles and construction machinery; in
Chemicals, Forest Products & General Merchandise, price falls on annual average in chemicals, and housing market slowdown inJapan and the U.S.; and in Food the same reasons as mentioned in Revenue.
ii) Operating results for the three months ended March 31, 2010 (from January 1, 2010 to March 31, 2010)
Revenue for the three months ended March 31, 2010 increased by 1.5% or 13.5 billion yen to 902.7 billion yen (9,702 million U.S.
dollars) compared with the same period of the previous fiscal year, mainly due to, in Finance, Realty, Insurance & Logistics Services,
the sale of office properties and warehouses, the contribution of an acquisition of ITOCHU LOGISTICS CORP. in the first quarter;− 4 −and the gradual recovery of condominium sales compared with the same period of the previous fiscal year; and in Chemicals, Forest
Products & General Merchandise, the recovery of chemical markets and the contribution of an acquisition of C.I.Kasei Co., Ltd.,
though there was some decrease in Energy, Metals & Minerals due to reduced LNG transactions caused; and in Machinery due to lowtransactions in automobiles and construction machinery.
Gross trading profit increased by 5.2% or 12.3 billion yen to 248.3 billion yen (2,669 million U.S. dollars) compared with thesame period of the previous fiscal year, mainly due to, in Energy, Metals & Minerals, increased sales volume of coal, and price upturns
in year-to-year comparison in mineral resources and oil & gas; in Machinery, the absence of impairment loss on inventory resulting
from market slowdown in automobiles in the same period of the previous fiscal year; and in Chemicals, and Forest Products & General
Merchandise, recovery trend of chemical market, besides an acquisition of C.I.Kasei Co., Ltd.
Selling, general and administrative expenses decreased by 3.1% or 6.2 billion yen to 191.8 billion yen (2,061 million U.S. dollars)compared with the same period of the previous fiscal year, mainly due to effects from continuous cost reduction in existing groupsubsidiaries, and yen's appreciation as well as deconsolidation of some companies, despite there was some increase resulting from anacquisition of C.I.Kasei Co., Ltd.
Provision for doubtful receivables decreased by 50.7% or 2.1 billion yen to loss of 2.1 billion yen (22 million U.S. dollars)compared with the same period of the previous fiscal year.
Net interest expenses improved by 12.4% or 0.9 billion yen to expenses of 6.5 billion yen (70 million U.S. dollars) compared withthe same period of the previous fiscal year mainly due to the upturn resulting from lower interest rates in U.S. dollars. Dividends
received improved by 84.6% or 6.7 billion yen to 14.5 billion yen (156 million U.S. dollars) compared with the same period of theprevious fiscal year, mainly due to increase in dividends from oil and gas-related investments. Therefore, Net financial income(expenses) or total of Net interest expenses and Dividends received, increased by 7.6 billion yen to income of 8.1 billion yen (87million U.S. dollars).
Concerning the other profits and losses, compared with the same period of the previous fiscal year, Loss on investments-net
improved by 0.5 billion yen to loss of 8.9 billion yen (96 million U.S. dollars), due to decrease in devaluation loss and increase in gainon sales of investments despite increase in loss on business disposal as a result of the restructuring of group companies. Loss onproperty and equipment-net improved by 0.9 billion yen to loss of 9.4 billion yen (101 million U.S. dollars), due to decrease inimpairment loss and increased gain on sales of properties. Gain on bargain purchase in acquisition recorded 4.9 billion yen (53million U.S. dollars, see Note 2). Other-net worsened by 2.1 billion yen to gain of 2.9 billion yen (31 million U.S. dollars), comparedwith the same period of the previous fiscal year.
As a result, Income before income taxes and equity in earnings of associated companies increased by 32.4 billion yen to 52.0
billion yen (559 million U.S. dollars) compared with the same period of the previous fiscal year.
Income taxes decreased (improved) by 3.9 % or 0.1 billion yen to 2.4 billion yen (26 million U.S. dollars) compared with the same
period of the previous fiscal year.
Equity in earnings of associated companies improved by 11.5 billion yen to gain of 2.1 billion yen (23 million U.S. dollars)compared with the same period of the previous fiscal year, due to increase in associated companies newly purchased or reorganized in
Textile; Machinery; ICT, Aerospace & Electronics; Energy, Metals & Minerals; and Food as well as increase in existing associatedcompanies in Textile; Machinery; ICT, Aerospace & Electronics; and Chemicals, Forest Products & General Merchandise, despite
there was impairment loss on investments in restaurant chain and finance-related associated companies as a result of the revaluation of
their fair values. Therefore, Net income increased by 43.9 billion yen to 51.7 billion yen (556 million U.S. dollars) compared with thesame period of the previous fiscal year.
As a result, Net income attributable to ITOCHU, calculated by Net income minus Net income attributable to thenoncontrolling interest, 4.2 billion yen (45 million U.S. dollars), increased by 44.8 billion yen to 47.5 billion yen (511 million U.S.
dollars) compared with the same period of the previous fiscal year.

− 5 −(Note 2)

The effect on Net income attributable to ITOCHU from the bargain purchase transaction is 2.9 billion yen (after income tax
effect).

(Supplemental information)"Total trading transactions" in accordance with Japanese accounting practice for the three months ended March 31, 2010
increased 14.3% or 350.9 billion yen to 2,809.7 billion yen (30,198 million U.S. dollars) mainly due to in Energy, Metals & Minerals,
price upturns in mineral resources and oil & gas; in Chemicals, Forest Products & General Merchandise and in Finance, Realty,
Insurance & Logistics Services, the same reasons mentioned in Revenue, despite decrease in Machinery due to the absence ofdeliveries of ships and plants; and in Food with decreased food distribution transactions due to sluggish domestic consumption.

(3) Analysis of Consolidated Financial Position
Total assets as of March 31, 2010, increased by 5.5 % or 284.8 billion yen compared with March 31, 2009, to 5,476.8 billion yen(58,866 million U.S. dollars), mainly due to new consolidation of some subsidiaries; in Chemicals, Forest Products & General
Merchandise and in Energy, Metals & Minerals, increase in Trade receivables and Inventories associated with higher oil prices andchemical market recovery compared with the end of the previous fiscal year; and increase in investments and Net property andequipment resulting from the appreciations of Brazilian real and Australian dollar; as well as new investments in Textile and in Food.
Interest-bearing debt was 2,209.3 billion yen (23,745 million U.S. dollars), decreased by 7.5% or 180.1 billion yen, compared with
March 31, 2009, despite the effect of new consolidation of some subsidiaries, and Net interest-bearing debt (interest-bearing debt
after deduction Cash and cash equivalents and Time deposits) decreased by 1.7% or 30.7 billion yen compared with March 31,
2009, to 1,726.1 billion yen (18,552 million U.S. dollars).
ITOCHU stockholders' equity, which corresponds to Total equity before applying "Statement of Financial AccountingStandards" No.160 (codified to ASC Topic 810), increased by 29.3 % or 249.0 billion yen compared with March 31, 2009, to 1,098.4
billion yen (11,806 million U.S. dollars), due to dividend payment decrease, accumulation of Net income attributable to ITOCHU,
improvement in Foreign currency translation adjustments, and improvement in Unrealized holding gains on securities andPension liability adjustments resulting from recovery of stock market. As a result, Ratio of stockholders' equity to total assets (seeNote 3) rose by 3.7 points compared with March 31, 2009, to 20.1%.
Net DER (Net Debt-to-Stockholders' Equity Ratio (see Note 3)) improved by 0.5 points compared with March 31, 2009, to 1.6
times.
Total equity, or total of ITOCHU stockholders' equity and Noncontrolling interest, which means the total equity of the entire
Group, increased by 26.4% or 274.0 billion yen compared with March 31, 2009, to 1,311.4 billion yen (14,095 million U.S. dollars).
(Note 3)

"Stockholders' equity" is equivalent to "ITOCHU stockholders' equity" which had been used until fiscal year 2009 and usedin calculating "Ratio of stockholders' equity to total assets" and "NET DER".

− 6 −(4) Consolidated Cash Flows Information
Cash flows from operating activities recorded net cash-inflow of 295.4 billion yen (3,175 million U.S. dollars) mainly due to good
performance in operating revenue in overseas natural resource-related business, food, textile and chemicals business and reduction of
inventories in automobile business.
Cash flows from investing activities recorded net cash-outflow of 196.3 billion yen (2,110 million U.S. dollars) mainly due toinvestments in the consumer-related sector, increased capital expenditure in overseas natural resource development sector (Energy,
Metals & Minerals), and additional investments related to acquisitions of C.I.Kasei Co., Ltd. and ITOCHU LOGISTICS CORP.
Cash flows from financing activities recorded net cash-outflow (net repayment) of 259.0 billion yen (2,784 million U.S. dollars)
mainly due to repayments of debt by the parent company and dividends payment. Consequently, Cash and cash equivalents as ofDecember 31, 2009, decreased by 153.1 billion yen to 475.7 billion yen (5,113 million U.S. dollars) compared with March 31, 2009.
The trend of consolidated cash flow indices is as follows:
FY
2006
Ratio of stockholders' equity to total assets (%)
15.1%
Ratio of market capitalization to total assets (%)
33.2%
Years of debt redemption (years)
12.0yrs
Interest coverage ratio (times)
4.7

2007
16.9%
34.9%
9.2yrs
5.6

Consolidated cash flow indices are calculated as follows:
Ratio of stockholders' equity to total assets (%) = Stockholders' equity / Total assets
Ratio of market capitalization to total assets (%) = Market capitalization / Total assets
Years of debt redemption (years) = Interest-bearing debt / Cash flows from operating activities
Interest coverage ratio (times) = Cash flows from operating activities / Interest paid

− 7 −

2008
18.5%
29.5%
32.1yrs
1.3

2009
16.4%
14.6%
8.6yrs
5.8

2010
20.1%
23.7%
7.5yrs8.0

(5) Risk Information
ITOCHU Group is exposed to various risks such as market risks, credit risks and investment risks, due to the nature of a wide range of
their businesses. These risks include unpredictable uncertainties and may have significant effects on their future business and financial
performance.
ITOCHU Group has enhanced their risk management policy and risk management methodology to monitor and manage these risks, but it is
impossible to completely avoid all these risks.
With respect to descriptions about future events, ITOCHU appropriately has determined its assumptions and estimates based on
information currently available as of March 31, 2009.
i) Corporate Result Risks Due to Macroeconomic Factors
ITOCHU Group involves a wide variety of business ranging from supply of raw materials to manufacturing and sale in each of theirbusinesses areas. It conducts diverse types of commercial transactions such as purchase and sale of products in the domestic market,
import/export trade between overseas affiliates as well as development of energy, metal resources and mineral resources. To give an
overview of Group's main areas of business, trade in machinery such as plants, autos and construction machinery, trade in mineral
resources, energy and chemical products, and investments in development are all largely dependent on economic trends in the world while
the domestic economy has a relatively strong influence on the consumer and retail-related segments such as textiles and food. However,
economic trends in the world have been more and more influential even on these consumer and retail-related segments as economic
globalization proceeds. ITOCHU Group has conducted business and trade in many areas around the world including North America, China, andAsia which ITOCHU regards as priority areas. Consequently, the economic trends not only in world economy as a whole but also in specificoversea areas have a possibility to seriously affect the operations of the Group.
ii) Market Risk
ITOCHU Group is exposed to market risks such as foreign exchange rate risks, interest rate risks, commodity price risks and stock pricerisks. The Group attempts to minimize risks related to market fluctuations such as changes in foreign exchange rates and interest rates by
establishing risk management policy such as setting and controlling limits and by utilizing a variety of derivative instruments for hedging
purposes.
a) Foreign Exchange Rate Risk
ITOCHU Group is exposed to foreign exchange rate risk related to transactions in foreign currencies due to their significant involvement
in import/export trading. Therefore, ITOCHU is working to minimize foreign exchange rate risk by hedge transactions using derivatives suchas forward exchange contracts. However, ITOCHU cannot guarantee a complete avoidance of such foreign exchange rate risk by utilizingthese hedging techniques.
ITOCHU's investments in overseas businesses are exposed to the risk of stockholders' equity fluctuation through the accounting for foreign
currency translation adjustments, due to changing foreign exchange rates. This foreign exchange rate risk has no impact on the businessperformance itself. In addition, a long period is generally needed to recover the cost of investments. Accordingly, ITOCHU does not hedge theforeign exchange rate risk, as the effectiveness provided by hedging is considered to be limited.
b) Interest Rate Risk
ITOCHU Group is exposed to interest rate risk in both raising and using money for financing, investing, and operating activities. Amongthe interest insensitive assets such as invested marketable securities or fixed assets, the part acquired using floating interest loans is
considered to be the interest mismatch amount exposed to interest rate risk. ITOCHU is working to quantify the interest rate risk tocontrol the fluctuation of gains and losses due to interest rate change properly.
To be specific, using the management method Earnings at Risk (EaR), ITOCHU has set a certain limit (Loss Cut Limit) as the highest
acceptable interest expense and has executed hedging transactions primarily in the form of interest rate swaps to minimize interest rate
risk.
However, ITOCHU still cannot guarantee a complete avoidance of interest rate risk, even having adopted these management methods.
c) Commodity Price Risk
As a trading company handling a diverse array of commodities, ITOCHU Group is exposed to commodity price risk due to such factors
as market fluctuations. The Group has established a fundamental risk management policy on an individual Division Company basis,
assessing purchase contracts, inventories, and sales contracts, etc. and sets and manages a balance limit and loss cut limit for each− 8 −individual product with conducting periodic reviews.
In addition, ITOCHU Group works to minimize commodity price risk by utilizing derivatives such as futures or forward contracts asmeans of hedging. Despite these measures, ITOCHU Group cannot guarantee a complete avoidance of commodity price risk.
ITOCHU Group also participates in resource development businesses such as the energy, metals and minerals sector and othermanufacturing businesses. Production in these businesses is also exposed to the same commodity price risk noted above, and it ispossible for the value of the businesses to deteriorate.
If this were to occur, it could seriously affect the financial position and results of operations of ITOCHU Group.
d) Stock Price Risk
ITOCHU Group holds available-for-sale securities which are vulnerable to price fluctuation. There is a risk that stockholders' equity may
change in our consolidated financial statements along with the price fluctuations of these investments, and assuming that the fair value ofthese available-for-sale marketable securities decreased, the necessity of recognizing holding loss on securities may arise, and it could
seriously affect the financial position and results of operations of ITOCHU Group.
iii) Credit Risks
ITOCHU Group conducts a vast array of commercial transactions with its trading partners, both domestically and overseas. ITOCHU
therefore bears credit risk from the uncollectible trading receivables, loans, or credits for guaranty held by the Group due to thedeteriorating credit status or insolvency of ITOCHU's partners, from assuming a responsibility to fulfill the contracts as an involved party
is unable to continue its business and fulfill its obligations under the contracts.
In ITOCHU, the credit department, which is independent of the business departments, manages credit risk on both quantitative andqualitative bases. Each proposal submitted by a business division undergoes careful screening by the credit department, which then sets anappropriate credit limit upon the completion of review. Specific expiration dates are set for credit limits. These limits and the status of
trade receivables are monitored on a periodic basis along with periodic reviews of the status of debt collections and delinquencies. The
necessary reserves are determined and booked on this basis. With all these measures, however, the occurrence of credit risks cannot becompletely avoided, and such occurrences could seriously affect the financial position and results of operations of ITOCHU Group.
iv) Country Risk
ITOCHU Group has trading relationships with many foreign countries. These include handling foreign goods and investments in foreign
trading partners. ITOCHU Group therefore is exposed to country risk resulting from regulations imposed by foreign governments,
political instability, or restrictions on the transfers of funds. In response to the country risk, in addition to taking appropriate
countermeasures for each transaction, with the aim of avoiding a concentration of exposure, ITOCHU Group is endeavoring to manage
risk by setting total limit guidelines and limits for each country and setting credit policies appropriate to each country.
ITOCHU Group does, however, have debts in countries and regions where there is a relatively high probability of country risk emerging,and those in which business activities are implemented through loans, investment and guarantees for monetary indebtedness. When thosedebts and business activities face events caused by political, economic, or social instability, ITOCHU Group cannot entirely deny thepossibility that those events may have a significant impact on the debt collection and sustainability of ITOCHU Group's business activities
in such countries and regions. Such occurrences could have a serious, adverse effect on the financial position and results of operations of
ITOCHU Group.
v) Investment Risk
Investing in a variety of businesses is one of the major business activities of ITOCHU Group. In managing the Group's portfolio ofinvestments strategically, ITOCHU Group faces serious decisions regarding the initiation of new investments that will produce profit
commensurate with the attendant risk, or the withdrawal from investments that do not produce profits consistent with attendant risks.
However, in ITOCHU Group's engagement in investing activities, there may arise such cases that the Group is unable to achieve theGroup's forecasted results from the invested businesses due to deteriorating management environment for the businesses in which theGroup have invested or the deteriorating corporate results and financial standing of ITOCHU's partners, ITOCHU Group is unable towithdraw from a business or restructure the business under a timeframe or method that the Group desires due to the difference of business
policy from the partners' or low liquidity of investments etc., the likelihood of investment recovery is lowered due to poor corporate resultsof investees, or stock prices is expected to drop below a specified level for a considerable period of time. In such cases, serious adverse
influences on the future corporate results and financial standing of ITOCHU Group are possible including the necessities that the whole orpartial investment is recognized as loss, and that the infusion of additional funds is required.

− 9 −vi) Risks Due to Impairment Loss on Fixed Assets
ITOCHU Group is exposed to impairment loss risks on fixed assets held, such as real estate, aircraft, and ships. ITOCHU does not foresee
at present any necessity for booking additional impairment losses.
However, ITOCHU Group might be required to recognize impairment losses should the economic value of fixed assets deteriorate due todecreased demand or deterioration in market conditions for each of the assets. Such an occurrence could seriously affect the financial
position and results of operations of ITOCHU Group.
vii) Risks Due to Fund Raising
ITOCHU Group uses ALM (Asset Liability Management) to ensure the necessary funding for its businesses and to ensure liquidity
through debt from domestic and international financial institutions, as well as the issuance of commercial papers and debentures. However,should ITOCHU's credit worthiness in the capital market deteriorate due to a significant lowering of the Company's credit rating, or should
there be an upheaval in the financial systems in major financial markets, the Group could experience an inability to raise funds fromfinancial institutions or investors when necessary or under desirable conditions and could consequently experience an increase in funding
costs. This could exert a serious, adverse influence on the financial position and results of operations of ITOCHU Group.
viii) Risks Due to Pension Cost and Projected Benefit Obligations
The benefit expenses and benefit obligations of ITOCHU are calculated based on actuarial calculations that utilize a variety ofassumptions such as the discount rate for benefit obligations and the expected rate of return on pension assets. However, should it become
necessary to change the assumptions on which the actuarial calculations are based or should pension assets be affected by deterioration in
the stock market, it is possible that pension cost and projected benefit obligations could increase and that additional contributions topension assets might be necessary. The financial position and results of operations of ITOCHU Group could be seriously affected by suchoccurrences.
ix) Risks Due to Deferred Taxes
Deferred tax assets are an important factor in ITOCHU's consolidated balance sheets. Therefore, accounting judgment on evaluation ofdeferred tax assets has a substantial impact on ITOCHU's consolidated financial statements.
Considering the necessity of an allowance for deferred tax assets, ITOCHU Group reports the realizable amount of deferred tax assets,taking into consideration future taxable income and feasible tax planning strategies.
The management of ITOCHU Group believes these estimations of realizable amount of deferred tax assets are rational. However,allowance for deferred taxes may increase or decrease depending on changes in estimated taxable income during the tax planning period,changes in the tax system including changes in tax rates, and changes in tax planning strategies. In that case it could seriously affect thefinancial position and results of operations of ITOCHU Group.
x) Risks Due to Competition
Due to ITOCHU Group's involvement in many different industries and the fact that the Group handles a vast array of products andservices, the Group is open to competition from many different companies, both domestic and foreign, including competition from othergeneral trading companies. ITOCHU Group cannot deny the existence of other companies with superior experience, technology, andfunding capacity, that are in a position to provide products and services that meet customer needs. Moreover, ever-greater competition
from companies in newly developing countries like China exists in addition to ongoing competition from companies in European andNorth American industrialized countries due to the economic globalization. ITOCHU Group could also find its competitivenessunsustainable due to future events such as deregulation, changes in the business environment such as entering into other industries, andtechnological innovation. The advent of such risks could cause a corresponding loss in competitiveness for ITOCHU Group, giving major
adverse impact on the financial position and results of operations of ITOCHU Group.
xi) Risks Associated with Significant Lawsuits
There is no significant, currently pending lawsuit, arbitration, or other legal proceeding that may materially affect the financial position or
results of the operations of ITOCHU Group.
However, there shall be no assurance that domestic or overseas business activities of ITOCHU Group may not become subject to any ofsuch lawsuits, arbitrations or other legal proceedings.

− 10 −

xii) Risks Associated with Compliancea) Risks Related to Laws and Regulations
ITOCHU Group is subject to a number of diverse laws and regulations both domestically and overseas due to the vast array of products
and services the Group provides.
To be specific, ITOCHU Group is required to adhere to laws and regulations such as companies act, financial instruments and exchange
laws, tax laws, the laws for each industry, all laws pertaining to trade such as foreign exchange control laws, antitrust laws, intellectual
property laws, waste disposal laws and the laws of each country in which ITOCHU Group conducts business overseas. ITOCHU Group
is aware that the observance of laws and regulations is a serious obligation on the part of the Company and the Group has committed
every effort into the observance of these laws and regulations by reinforcing the compliance system. With all these measures, however,there is a possibility of the situation where, including personal misconduct by directors and employees, risks associated with complianceor suffering social disgrace cannot be removed.
Also, ITOCHU cannot deny that unexpected, additional enactment or change in laws and regulations by legislative, judicial, andregulatory bodies are a possibility both domestically and overseas, and there are possibilities of major change in laws and regulations bypolitical/economical changes. This could exert a serious, adverse influence on the financial position and results of operations of
ITOCHU Group.
b) Risks Related to the Environment
ITOCHU Group has designated global environmental issues as one of the most important elements of its management policy. The Groupis actively working on environmental issues designated by ITOCHU's environmental policy to deal with the risk of infringement of laws
and regulations pertaining to the environment by each business, the destruction of the natural environment by investments such as natural
resource development and real estate development, and goods handling and service delivery. Despite these efforts, ITOCHU Group cannot
guarantee that the Group's business activities will not affect the world environment, and ITOCHU cannot completely avoid thepossibility that the opposition of environmental protection groups will impede the business growth. Should such events occur, the
ITOCHU Group could suffer the loss of public trust and could suffer serious adverse effects on the financial position and results ofoperations of ITOCHU Group.
xiii) Risks Associated with Information Systems and Information Security
In ITOCHU Group, a code of conduct concerning the handling of information is enforced on all directors and employees and high priority
is placed on maintaining a high information security level. ITOCHU Group has established information systems to facilitate the sharing of
information and to improve the efficiency of operations. In order to maintain a secure operation of its information systems, ITOCHU
Group has established security guidelines and has developed crisis control measures.
Despite these measures, ITOCHU Group cannot completely avoid the possibility of unauthorized access from the outside, the leakage ofsensitive company information due to computer viruses, or operational failure of the system due to damage to information systemequipment arising from natural disasters or accidents or from trouble with telecommunications circuitry. If such events occur, this could
cause a deterioration of operational efficiency, and depending on the seriousness of the damage, could result in a serious adverse effect on
the financial position and results of operations of ITOCHU Group.
xiv) Natural Disaster Risk
Natural disasters such as earthquake or infectious diseases such as the new influenza may adversely affect the operations of ITOCHU Group.
ITOCHU has implemented measures such as developing Business Continuity Plan (BCP) under a large-scale disasters or outbreak of the new
influenza, introducing the safety confirmation system, creating a disaster manual, reinforcing earthquake resistance, and conducting
emergency drill. Also, various measures have been implemented individually in each Group company. However, since ITOCHU Group
operates business activities in a vast range of regions, damage from natural disasters or infectious diseases such as the new influenza cannot becompletely avoided. Therefore, damage inflicted from natural disasters or infectious diseases such as the new influenza could seriously affectthe financial position and results of operations of ITOCHU Group.

− 11 −

2. Performance of Group Companies attributable to ITOCHU
Components of Consolidated Net Income attributable to ITOCHU[Years ended March 31, 2010 and 2009](Unit: billion yen)
Parent company
Group companies excluding
overseas trading subsidiaries
Overseas trading subsidiaries
Subtotal
Consolidation adjustments
Consolidated net income
attributable to ITOCHU[For the three months ended March 31, 2010 and 2009]

63.5

64.4

Increase(Decrease)
(0.9)

118.4

139.7

(21.3)

7.9
189.8(61.6)

20.3
224.4(59.0)(12.5)(34.7)
(2.6)

128.2

165.4

(37.2)

70.1
55%

111.6
67%

(41.5)

2010

Earnings from overseas businesses (*)
Share of earnings from overseas businesses

2009

2010
2009
Increase
Jan.-Mar. Jan.-Mar. (Decrease)
23.9
19.4
4.5

(Unit: billion yen)
Parent company
Group companies excluding
overseas trading subsidiaries
Overseas trading subsidiaries
Subtotal
Consolidation adjustments
Consolidated net income
attributable to ITOCHU
Earnings from overseas businesses (*)
Share of earnings from overseas businesses

36.5

6.7

29.8

1.9
62.4
(14.8)

1.9
28.0(25.3)

0.0
34.4
10.4

47.5

2.7

44.8

28.7
60%

11.5
423%

17.2

(*) "Earnings from overseas businesses" is the total of net income attributable to ITOCHU of overseas trading subsidiaries and overseas group companies,
plus net income attributable to ITOCHU of overseas branch of parent company and the companies established in Japan for specific overseas business
whose sources of revenue are in overseas.

Number of Group Companies
March 31, 2010
March 31, 2009
Net
Domestic Overseas
Total
Domestic Overseas
Total
Increase Decrease Changes within Group changes
Subsidiaries
105
152
257
106
157
263
+ 9
(16)
+ 3
(2)
(6)
Equity-method associated companies
65
91
156
70
87
157
+ 17
(17)
(3)
+ 2
(1)
Total
170
243
413
176
244
420
+ 26
(33)
(7)
(Note) From this first quarter, the criteria to count group companies is changed so that the number of companies directly invested by ITOCHU or its overseas
trading subsidiaries are shown above.
Besides, the following shows the number of companies by the above mentioned method in the past two fiscal years end.
March 31, 2008 Subsidiaries:261, Equity-method associated companies:163, Total:424
March 31, 2007 Subsidiaries:279, Equity-method associated companies:155, Total:434

Profits/Losses of Group Companies Reporting Profits/Losses(Unit: billion yen)

Profits

2010
Losses

Total

156.6

(38.2)

118.4

9.7
166.2

(1.8)
(40.0)

Group companies excluding
overseas trading subsidiaries
Overseas trading subsidiaries
Total

Profits

2009
LossesIncrease (Decrease)
Profits
Losses
Total

Total

198.1

(58.3)

139.7(41.5)

20.2(21.3)

7.9
126.3

20.8
218.9

(0.5)
(58.8)

20.3
160.1(11.1)(52.6)(1.3)
18.8(12.5)(33.8)

2010
Losses
28
43
71
27.6%
16
29
45
28.8%
44
72
116
28.1%

Total
105
152
257
100.0%
65
91
156
100.0%
170
243
413
100.0%

Profits
82
118
200
76.0%
48
61
109
69.4%
130
179
309
73.6%

2009
Losses
24
39
63
24.0%
22
26
48
30.6%
46
65
111
26.4%

Total
106
157
263
100.0%
70
87
157
100.0%
176
244
420
100.0%

Increase (Decrease)
Profits
Losses
Total
(5)
4
(1)
(9)
4
(5)
(14)
8
(6)
(3.7%)
3.7%
1
(6)
(5)
1
3
4
2
(3)
(1)
1.7%
(1.7%)
(4)
(2)
(6)
(8)
7
(1)
(12)
5
(7)
(1.7%)
1.7%

Total
41.8
42.3
84.1
22.7
19.5
42.2
64.4
61.8
126.3

Profits
40.6
121.0
161.5
37.6
19.7
57.3
78.2
140.7
218.9

2009
Losses(10.1)(35.6)(45.8)(8.9)(4.2)(13.0)(19.0)(39.8)(58.8)

Total
30.4
85.4
115.8
28.8
15.5
44.3
59.2
100.8
160.1

Increase (Decrease)
Profits
Losses
Total
7.6
3.8
11.4
(64.3)
21.2(43.1)(56.7)
25.0(31.7)
0.5
(6.6)
(6.1)
3.6
0.4
4.0
4.1
(6.2)
(2.1)
8.0
(2.8)
5.2
(60.7)
21.7(39.0)(52.6)
18.8(33.8)

Number/Share of Group Companies Reporting Profits

Domestic
Overseas
Total
Share (%)
Domestic
Overseas
Total
Share (%)
Domestic
Overseas
Total
Share (%)

Subsidiaries

Equity-method
associated companies

Total

Profits
77
109
186
72.4%
49
62
111
71.2%
126
171
297
71.9%

Profits/Losses of Group Companies Reporting Profits/Losses(Unit: billion yen)

Subsidiaries
Equity-method
associated companies
Total

Domestic
Overseas (**)
Total
Domestic
Overseas
Total
Domestic
Overseas
Total

Profits
48.1
56.7
104.8
38.1
23.3
61.4
86.3
80.0
166.2

2010
Losses(6.4)(14.4)(20.7)(15.5)(3.8)(19.2)(21.8)(18.2)(40.0)(**)Results of "Overseas trading subsidiaries" which are included in the above "Overseas" are as follows;
2010
2009
Increase (Decrease)
Profits
Losses
Total
Profits
Losses
Total
Profits
Losses
Total
Overseas trading subsidiaries
9.7
(1.8)
7.9
20.8
(0.5)
20.3
(11.1)(1.3)(12.5)

Major New Group Companies
Business Field

NameCountry

VotingSharesTextileMARUKO CO., LTD.

Japan

( 26.5 %) Manufacturing and sales of women's underwear

TextileT.KAWABE & CO., LTD.

Japan

( 25.3 %) Manufacturing and sales of handkerchiefs

TextileLeilian Co., LTD.

Japan

( 61.1 %) Retail sales of ready-to-wear apparel for women

EnergyNippon Uranium Resources (Australia) Pty Ltd

Australia( 100.0 %) Investment company in uranium development

General Merchandise

YOKOHAMA RUSSIA LLC

Russia( 20.0 %) Sales of tires

Chemicals

Toda America, Inc.

U.S.A.

( 50.0 %)Chemicals

Toda Advanced Materials Inc.

CanadaFood

TING HSIN (CAYMAN ISLANDS) HOLDING CORP.

CaymanCategories

Manufacturing and sales of positive-electrode material
for lithium-ion batteries
Manufacturing and sales of positive-electrode material( 50.0 %)for precursors
Holding company of food manufacture and sales,( 20.0 %)restaurants, and retail businesses− 12 −

Performance of Group Companies (Impact of Net Income attributable to ITOCHU)
Years ended March 31, 2010 and 2009

Major Group Companies(Unit: billion yen)

Name

TextileMachinery

Shares

2009

4Q
0.6

0.1

4Q
0.4

SANKEI CO., LTD.

90.5% Consolidation

(0.3)

(0.1)

(0.2)

0.1 Sale of garment accessories

100.0% Consolidation

0.2

0.5

0.2

0.6 Production control and wholesale of textile and apparel
1.0 Production control and wholesale of textile materials, fabrics and apparel

ITOCHU Textile(*4) (Hong Kong)
Prominent (ASIA) Ltd.
(*5) (China)
ITOCHU TEXTILE (CHINA) CO., Ltd.

0.4 Manufacture, retail and sale of men's apparel100.0% Consolidation

0.4

0.9

0.3

ITOCHU CONSTRUCTION MACHINERY CO., LTD.

100.0% Consolidation

0.2

0.5

0.0

0.4 Sale and rental of construction machinery

MCL Group Limited(*6) (U.K.)

100.0% Consolidation

0.2

(0.6)

(2.1)

(2.5) Warehousing, retail and financing of motor vehicles(U.S.A.)

100.0% Consolidation

(0.7)

(1.0)

(1.2)

(1.6) Retail, distribution, and trade of motor vehicles

Century Tokyo Leasing Corporation

20.6%

(*2)

(*2)

0.0

1.0 Lease, installment sale, business lease and other

ITOCHU Techno-Solutions Corporation

52.6% Consolidation

3.7

6.8

5.0

6.9

Excite Japan Co., Ltd.

EquitySale and maintenance of computer network systems, customized developmentof software, data center service, and support

58.8% Consolidation

(*2)

(*2)

(0.2)

(1.4) Providing services of Internet information

60.7% Consolidation

0.3

1.6

0.6

1.6 Sale of mobile phone units, mobile phones-related solution business(0.6) Content publishing, mobile site operation and application development

51.3% Consolidation

(*2)

(*2)

(0.1)

50.8% Consolidation

(0.1)

(0.1)

(0.1)

0.1 Music channel on cable/satellite television

100.0% Consolidation

0.1

0.2

0.3

0.4 Import/Export and domestic sale of industrial machinery

JAMCO Corporation

33.3%

Equity

(*2)

(*2)

0.3

0.3 Maintenance of aircraft and manufacture of aircraft interior

SUNCALL CORPORATION

26.4%

Equity

(*2)

(*2)

(0.1)

ITOCHU Metals Corporation

100.0% Consolidation

0.3

0.8

0.1

ITOCHU Petroleum Japan Ltd.

100.0% Consolidation

(0.4)

0.8

(0.7)

5.0 Investment in companies of trade of crude oil and petroleum products

ITOCHU ENEX CO., LTD.
ITOCHU Minerals & Energy of(*8) (Australia)
Australia Pty Ltd
ITOCHU Oil Exploration (Azerbaijan) Inc.
(Cayman)

53.7% Consolidation

0.9

1.6

0.8

2.0 Wholesale of petroleum products and high-pressure gas

100.0% Consolidation

10.7

34.1

6.6

71.2

100.0% Consolidation

2.5

6.9

5.5

26.1 Exploration and production of crude oil and gas

Marubeni-Itochu Steel Inc.

50.0%

Equity

0.5

2.7

0.9

14.8 Import/Export and wholesale of steel products

Brazil Japan Iron Ore Corporation

47.7%

Equity

1.7

4.0

0.0

0.0 Investment in projects of iron ore in Brazil

ITOCHU Kenzai Corp.

87.3% Consolidation

0.2

0.2

(0.8)

(1.0) Wholesale of wood products and building materials

ITOCHU Pulp & Paper Corp.

100.0% Consolidation

0.0

0.2

(0.2)

0.1 Wholesale of paper, paperboards and various paper materials

99.8% Consolidation

0.5

1.9

0.2

1.1 Wholesale of fine chemicals and related raw materials

100.0% Consolidation

0.7

1.9

0.2

1.6 Wholesale of plastics and related products

97.6% Consolidation

0.0

2.0

(1.0)

(1.1) Manufacture and sale of plastic products

DAIKEN CORPORATION

25.1%

Equity

(*2)

(*2)

0.0

0.1 Manufacture and sale of building materials

TAKIRON Co., Ltd.

27.5%

Equity

(*2)

(*2)

(0.2)

(0.3) Manufacture, processing and sale of plastic products

SPACE SHOWER NETWORKS INC.
ITOCHU Sanki Corporation(*7)

Chemicals,
ITOCHU CHEMICAL FRONTIER Corporation
ForestProducts
ITOCHU PLASTICS INC.
& General
C.I.Kasei Co., Ltd.
Merchandise(*9)

Manufacturing and sale of optical communication devices,
electronic devices and assembly
Import/Export and wholesale of non-ferrous/light metals and recycle business1.4
mainly in metal products

0.1

Investment in projects of iron ore, coal and bauxite mining, manufacture ofalumina and oil exploration

ITOCHU SHOKUHIN Co., Ltd.

50.8% Consolidation

(*2)

(*2)

(0.4)

0.7 Wholesale of foods and liquor

NIPPON ACCESS, INC.

69.8% Consolidation

(*2)

(*2)

1.3

3.7 Wholesale and distribution of foods

21.0%

Equity

(3.8)

(4.3)

(1.3)

(1.5) Wide-ranging operation of food service businessJapan Foods Co., Ltd.

34.8%

Equity

0.0

0.1

0.0

0.0 Production on consignment and sale of soft drinks

Fuji Oil Co., Ltd.

25.7%

Equity

(*2)

(*2)

0.6

2.0 Integrated manufacturer of cooking oil and soybean protein

FamilyMart Co., Ltd.

31.5%

Equity

0.2

4.7

0.5

5.3 Operation of a convenience store chain

Prima Meat Packers, Ltd.

39.8%

Equity

(*2)

(*2)

0.1

1.9 Production and sale of meat, ham, sausage and processed foods

ITOCHU Finance Corporation

99.1% Consolidation

(1.5)

(1.7)

(1.0)

0.6 Loan and other finance-related business

55.0% Consolidation

(*2)

(*2)

0.1

0.9 Foreign exchange margin trade

99.0% Consolidation

0.1

2.0

(0.1)

0.1 Comprehensive logistics services

99.9% Consolidation

2.6

0.5

(0.5)

0.3 Development and sale of housing

32.6%

Equity

(*2)

(*2)

(5.7)

(2.7) Consumer credit

eGuarantee, Inc.

31.7%

Equity

(*2)

(*2)

0.0

0.1 B to B credit guarantee service

Century Medical, Inc.

100.0% Consolidation

0.2

0.6

0.2

0.5 Import and wholesale of medical equipment and materials(*12) (U.S.A.)

100.0% Consolidation

(1.4)

(1.7)

0.7

8.6 U.S. trading subsidiary(*6) (U.K.)

100.0% Consolidation

0.4

0.3

0.5

0.3 Europe trading subsidiary(*4) (Hong Kong)

100.0% Consolidation

0.7

2.1

0.5

2.3 Hong Kong trading subsidiary(*5) (China)

100.0% Consolidation

1.0

2.3

0.0

2.8 China trading subsidiary(*8) (Australia)

100.0% Consolidation

0.5

1.5

0.3

3.0 Australia trading subsidiary

Yoshinoya Holdings Co., Ltd.

Finance,
FX PRIME Corporation
Realty,Insurance ITOCHU LOGISTICS CORP.
& Logistics ITOCHU Property Development, Ltd.
Services

Orient Corporation

Other

Categories

2010

100.0% Consolidation

ICT,
ITC NETWORKS CORPORATION
Aerospace& Electronics
NANO Media Inc.
(*3)

Food

Net Income attributable to ITOCHU (*1)

JOI'X CORPORATION

ITOCHU Automobile America Inc.

Energy,Metals& Minerals

MethodofConsolidation

ITOCHU International Inc.
ITOCHU Europe PLC.

Overseas
trading
ITOCHU Hong Kong Ltd.
subsidiaries

ITOCHU (China) Holding Co., Ltd.
ITOCHU Australia Ltd.

(*11)

(*10)

(*11)

(*1) Net income attributable to ITOCHU is the figure after adjusting to U.S. GAAP, which may be different from the figures each company announces.
(*2) Refer to the results announced by each corresponding company, as their announcement dates are on and after ITOCHU's announcement date of Fiscal Year 2010.
(*3) As of April 1, 2009, Aerospace, Electronics & Multimedia Company was renamed to ICT, Aerospace & Electronics Company.
(*4) The above figure of ITOCHU Hong Kong Ltd. includes 40.0% of that of ITOCHU Textile Prominent (ASIA) Ltd.
(*5) The above figure of ITOCHU (China) Holding Co., Ltd. includes 40.0% of that of ITOCHU TEXTILE (CHINA) CO., Ltd.
(*6) The above figure of ITOCHU Europe PLC. includes 8.6% of that of MCL Group Limited.
(*7) As of April 1, 2010, ITOCHU Sanki Corporation and ITOCHU MECHATRONICS CORPORATION were merged to be newly named as ITOCHU MACHINE-TECHNOS CORPORATION.
(*8) The above figure of ITOCHU Australia Ltd. includes 3.7% of that of ITOCHU Minerals & Energy of Australia Pty Ltd.
(*9) C.I.Kasei Co., Ltd. has been acquired since this first quarter. The above figure of this company includes the profit resulting from the gain on bargain purchase in acquisition.
(*10) i-LOGISTICS CORP. has been acquired since this first quarter. i-LOGISTICS CORP. changed its corporate name to ITOCHU LOGISTICS CORP. effective January 1, 2010.
The above figure of this company includes the profit resulting from the gain on bargain purchase in acquisition.
(*11) The above figure of Orient Corporation and Yoshinoya Holdings Co., Ltd. include the related tax effect.
(*12) The above figure of ITOCHU International Inc. includes 80.0% of that of PrimeSource Building Products, Inc.

− 13 −

Performance of Group Companies (Impact of Net Income attributable to ITOCHU)
Years ended March 31, 2010 and 2009
Major Group Companies Reporting Profits(Unit: billion yen)Segment(*13)

Shares

ITOCHU Techno-Solutions Corporation

Ict

Leilian Co., LTD.

Name

Net Income attributable to ITOCHU(*1)

Main reasons for changes

Increase(Decrease)

2010

2009

52.6%

6.8

6.9

Tex

61.1%

2.9

-

Che

97.6%

2.0

(1.1)

[Domestic subsidiaries]

C.I.Kasei Co., Ltd.

(*9)

ITOCHU LOGISTICS CORP.

(*10)(0.1) Almost the same level due to reduced customer IT investments offset by cost reduction
2.9 Started consolidation from this fourth quarter. Due to gain on bargain purchase in acquisition.
Significant increase due to cost reduction, the absence of impairment loss of fixed assets and3.1 reversal of the deferred tax asset in the previous fiscal year, and net gain on bargain purchase inacquisition and revaluation for pre-existing interests in this first quarter.
Increase due to net gain on bargain purchase in acquisition and revaluation for pre-existing interests in
1.9
this first quarter.
Increase due to recovery of price and demand in this fiscal year, despite last fiscal year's
0.8
significant price falls after the third quarter
Increase due to demand recovery of automobile, electronics, and semiconductor-related materials in
0.3
addition to the absence of impairment loss on investments in the previous fiscal year
Increase due to significant increase in dividends received from Sakhalin Oil and Gas Development
1.5
Co., Ltd.
Decrease due to worsened profitability resulting from increasingly intense competition associated(0.4)
with demand shrink

Fin

99.0%

2.0

0.1

ITOCHU CHEMICAL FRONTIER Corporation

Che

99.8%

1.9

1.1

ITOCHU PLASTICS INC.

Che

100.0%

1.9

1.6

ITOCHU Oil Exploration Co.,Ltd.

Ene

100.0%

1.8

0.3

ITOCHU ENEX CO., LTD.

Ene

53.7%

1.6

2.0

ITC NETWORKS CORPORATION

Ict

60.7%

1.6

1.6

(0.1) Sales decrease in mobile phones(*8) (Australia)

Ene

100.0%

34.1

71.2(37.1) Decrease due to price falls in mineral resources on annual average(Cayman)Ene

100.0%

6.9

26.1(19.2) Decrease due to oil price falls on annual average

PrimeSource Building Products, Inc.

(*12) (U.S.A.)

Che

100.0%

4.7

8.3(3.6) Decrease due to housing market slowdown in North America

ITOCHU (China) Holding Co., Ltd.

(*5) (China)Ove

100.0%

2.3

2.8(*4) (Hong Kong)

Ove

100.0%

2.1

2.3(Singapore)Ove

100.0%

1.7

1.0[Overseas subsidiaries]
ITOCHU Minerals & Energy of Australia Pty Ltd
ITOCHU Oil Exploration (Azerbaijan) Inc.

ITOCHU Hong Kong Ltd.
ITOCHU Singapore Pte, Ltd.

Decrease due to reduced transactions in plastics and nonferrous metal transactions(0.6) mainly for electronics and semiconductor sectors throughout the year despite increasein the fourth quarter
Decreased profit from textile and finance businesses despite the absence of loss transactions resulting(0.2)
from price plunges in chemicals in the previous fiscal year

0.6 Increase due to good performance in chemical trading for Asia

(Cayman)

Ene

51.4%

1.6

0.9

0.7 Increase in dividends received from Baku-Tbilisi-Ceyhan Pipeline Company

ITOCHU Australia Ltd.

(*8) (Australia)

Ove

100.0%

1.5

3.0

(1.6)

Significant profit decrease from ITOCHU Mineral & Energy of Australia Pty Ltd. as a year-to-yearcomparison

I-Power Investment Inc.

(U.S.A.)Mac

100.0%

1.2

0.1

1.1

Increase due to sale of biomass power project in the fourth quarter in addition to good
performance in IPP associated company whose equity pick-up started since this first quarter

FamilyMart Co., Ltd.

Fod

31.5%

4.7

5.3

(0.6)

Decrease due to lack of Taspo cards effect and sales decrease resulting from weak
consumer spending

Brazil Japan Iron Ore Corporation

Ene

47.7%

4.0

0.0

4.0 Equity pick-up started since this first quarter. Steady growth after this first quarter.

Marubeni-Itochu Steel Inc.

Ene

50.0%

2.7

14.8

Fod

20.0%

8.7

-

ITOCHU Oil Exploration (BTC) Inc.

[Domestic equity-method associated companies](12.1) Reduced demand for steel products both in Japan and overseas as a year-to-year comparison[Overseas equity-method associated companies]
TING HSIN (CAYMAN ISLANDS) HOLDING CORP.

(Cayman)

8.7

Equity pick-up started since this first quarter, and some profit from food production businessand gain on sale of securities were recognized.

Major Group Companies Reporting Losses(Unit: billion yen)
Net Income attributable to ITOCHU
(*1)

Name

Segment(*13)

Shares2010

2009

Increase

Main reasons for changes(Decrease)[Domestic subsidiaries]
ITOCHU Finance Corporation

Worsened equity in earnings of card-related associated company, decrease resulting fromreduced loan balance, and the absence of gain on sale of stocks in the previous fiscal year

Fin

99.1%

(1.7)

0.6

(2.3)

ITOCHU ELECTRONICS CORP.

Ict

92.1%

(0.4)

(0.1)

(0.4) Occurrence of an unprofitable project in system development

Daishin Plywood Co., Ltd.

Che

99.4%

(0.4)

(0.1)

(0.3) Effect from reduced production resulting from weak domestic housing market

GANBARE JAPAN KIGYO FUND

Oth

30.6%

(0.3)

(0.2)

(0.1) Increased impairment loss on investments(U.S.A.)

Ene

100.0%(2.2)(22.4)(*12) (U.S.A.)

Ove

100.0%(1.7)

8.6(U.S.A.)Mac

100.0%

(1.0)

(1.6)

Improved due to cost reduction and the absence of impairment loss on goodwill in the previous
0.6 fiscal year despite deficit recorded due to continuous decreased automobile sales resulting
from recession in the U.S. and reversal of deferred tax assets(*6) (U.K.)

Mac

100.0%

(0.6)

(2.5)

1.9 Improved due to withdrawal from unprofitable retail business despite continuous deficit(Netherlands)

Ict100.0%(0.4)

0.0(0.4) Deficit due to reduced profit from lease and loss from interest swap cancellation

(*11)

Fod

21.0%

(4.3)

(1.5)

(2.8) Impairment loss on investments in addition to poor performance in main and subsidiaries' business

Che

25.9%

(0.7)

4.9

(5.6) Pulp price falls on annual average and exchange loss from Brazilian real[Overseas subsidiaries]
CIECO Energy (US) Limited

ITOCHU International Inc.

ITOCHU Automobile America Inc.

MCL Group Limited
ITOCHU AirLease B.V.

Deficit due to impairment loss on oil and gas assets from low oil and gas prices despite significant
20.2 improvement due to the absence of the loss from Entrada Oil/Natural Gas Field Development
Project in the previous fiscal year
Decrease due to low performance in housing material and construction machinery business(10.3) in addition to significant decrease arising from price falls and poor demand in equipment
material business[Domestic equity-method associated companies]
Yoshinoya Holdings Co., Ltd.
Japan Brazil Paper and Pulp Resources Development Co., Ltd

Impairment loss of inventory in addition to the absence of the profit, gain on negative goodwill(1.0)
associated with new investment in the previous fiscal year(*13) Tex : Textile, Mac : Machinery, Ict : ICT, Aerospace & Electronics, Ene : Energy, Metals & Minerals, Che : Chemicals, Forest Products & General Merchandise, Fod : Food,
Fin : Finance, Realty, Insurance & Logistics Services, Ove : Overseas trading subsidiaries, Oth : Other
Note1 : Please refer to the bottom of page 13 for detail of (*1)-(*12)

Japan Medical Dynamic Marketing, INC.

Oth

30.0%

(0.5)

0.5

− 14 −

Performance of Group Companies (Impact of Net Income attributable to ITOCHU)
For the three months ended March 31, 2010 and 2009
Major Group Companies Reporting Profits(Unit: billion yen)Name

Net Income attributable to
ITOCHU (*1)

Segment(*13)

Shares

ITOCHU Techno-Solutions Corporation

Ict

52.6%

3.7

5.0

Leilian Co., LTD.

Tex

61.1%

2.9

-

Main reasons for changes

Increase
2010
2009
Jan.-Mar. Jan.-Mar. (Decrease)[Domestic subsidiaries]

C.I.Kasei Co., Ltd.

(*9)

Che

97.6%

0.0

(1.0)

ITOCHU LOGISTICS CORP.

(*10)

Fin

99.0%

0.1

(0.1)

(1.2) Due to reduced customer IT investments
2.9 Started consolidation from this fourth quarter. Due to gain on bargain purchase in acquisition.
Increase due to cost reduction, and the absence of impairment loss of fixed assets and reversal of thedeferred tax asset in the same period of the previous fiscal year
Increase due to the absence of business loss related to the refrigerated warehouse
0.2
business in the same period of the previous fiscal year
Recovery of price and demand this quarter compared with significant price falls in the same
0.3
period of the previous fiscal year

1.0

ITOCHU CHEMICAL FRONTIER Corporation

Che

99.8%

0.5

0.2

ITOCHU PLASTICS INC.

Che

100.0%

0.7

0.2

0.4 Increase due to demand recovery of automobile, electronics, and semiconductor-related materials

ITOCHU Oil Exploration Co., Ltd.

Ene

100.0%

1.3

0.0

1.3 Significant increase in dividends received from Sakhalin Oil and Gas Development Co., Ltd.

ITOCHU ENEX CO., LTD.

Ene

53.7%

0.9

0.8

0.2 Improved profitability due to improved market environment

ITC NETWORKS CORPORATION

Ict

60.7%

0.3

0.6

(0.4) Sales decrease in mobile phones(*8) (Australia)

Ene

100.0%

10.7

6.6

4.1

(Cayman)Ene

100.0%

2.5

5.5(3.0) Decrease due to oil price falls

PrimeSource Building Products, Inc.

(*12) (U.S.A.)

Che

100.0%

1.8

1.8

(0.1)

ITOCHU (China) Holding Co., Ltd.

(*5) (China)Ove

100.0%

1.0

0.0

Increase due to the absence of bad-debt loss in the same period of the previous fiscal year and
1.0 gradually recovered transactions in plastics mainly related to electronics and semiconductor sectors,
and increase from new equity investment in textile(*4) (Hong Kong)

Ove

100.0%

0.7

0.5

0.2

(Singapore)Ove

100.0%

0.4

0.0

0.4 Increase due to good performance in chemical trading for Asia

(Cayman)

Ene

51.4%

0.6

0.4

0.1 Increase in dividends received from Baku-Tbilisi-Ceyhan Pipeline Company

ITOCHU Australia Ltd.

(*8) (Australia)

Ove

100.0%

0.5

0.3

0.2 Increase in equity earnings of ITOCHU Mineral & Energy of Australia Pty Ltd.

I-Power Investment Inc.

(U.S.A.)Mac

100.0%

0.8

0.0

0.8

FamilyMart Co., Ltd.

Fod

31.5%

0.2

0.5

(0.3) Due to sales decrease resulting from weak consumer spending

Brazil Japan Iron Ore Corporation

Ene

47.7%

1.7

0.0

1.7 Equity pick-up started since this first quarter and was in due course as this third quarter.

Marubeni-Itochu Steel Inc.

Ene

50.0%

0.5

0.9

(0.4)

Decrease due to impairment loss on the fixed assets despite partial upturn of demand for steel
products both in Japan and overseas

Fod

20.0%

6.5

-

6.5

Equity pick-up started since this first quarter, and there is some profit from food production businessand gain on sale of securities[Overseas subsidiaries]
ITOCHU Minerals & Energy of Australia Pty Ltd
ITOCHU Oil Exploration (Azerbaijan) Inc.

ITOCHU Hong Kong Ltd.
ITOCHU Singapore Pte, Ltd.
ITOCHU Oil Exploration (BTC) Inc.

Increase due to sale of stocks and improved exchange gain (loss) resulting from higher Australian
dollarAlmost the same level as the same period of the previous fiscal year, as the housing market in North
America is still on recovery despite reversal of the provision for doubtful receivables

Increase due to increased profit from finance-related business by the comparison only of a fourthquarter

Increase due to sale of biomass power project in the fourth quarter in addition to good performance in
IPP associated company whose equity pick-up started since this first quarter[Domestic equity-method associated companies][Overseas equity-method associated companies]
TING HSIN (CAYMAN ISLANDS) HOLDING CORP.

(Cayman)

Major Group Companies Reporting Losses(Unit: billion yen)
Net Income attributable to
ITOCHU (*1)
Segment(*13)

Shares

ITOCHU Finance Corporation

Fin

99.1%

(1.5)

(1.0)

(0.5) Due to worsened equity in earnings of card-related associated company, and reduced loan balance

ITOCHU ELECTRONICS CORP.

Ict

92.1%

(0.1)

(0.1)

(0.0) Almost the same level

Daishin Plywood Co., Ltd.

Che

99.4%

0.0

(0.1)

0.1

GANBARE JAPAN KIGYO FUND

Oth

30.6%

(0.1)

(0.2)

(U.S.A.)

Ene

100.0%

(1.4)

(1.0)

(0.4) Decrease due to impairment loss on oil and gas assets and low gas prices(*12) (U.S.A.)

Ove

100.0%

(1.4)

0.7

(2.1)

(U.S.A.)Mac

100.0%

(0.7)

(1.2)

(*6) (U.K.)

Mac

100.0%

0.2

(2.1)

2.3

(Netherlands)

Ict100.0%(0.3)

0.0(0.3) Due to reduced profit from lease and loss from interest swap cancellation

(*11)

Fod

21.0%

(3.8)

(1.3)

(2.4)

Japan Brazil Paper and Pulp Resources Development Co., Ltd

Che

25.9%

1.3

1.5

(0.3) Decrease compared with the same period of the previous fiscal year despite pulp price on the riseJapan Medical Dynamic Marketing, INC.

Oth

30.0%

0.1

0.1

0.1 Slight increase due to gain from the transfer of marketing authorization approval

Name

Main reasons for changes

2009
2010
Increase
Jan.-Mar. Jan.-Mar. (Decrease)[Domestic subsidiaries]

Due to the absence of reduced production resulting from weak domestic housing market in the same
period of the previous fiscal year
Deficit despite the improvement due to reduced impairment loss on investments compared with the
0.1
same period of the previous fiscal year

[Overseas subsidiaries]
CIECO Energy (US) Limited
ITOCHU International Inc.
ITOCHU Automobile America Inc.
MCL Group Limited
ITOCHU AirLease B.V.

Decrease due to low performance in equipment material business and disposal of housing materialrelated business
Improved due to cost reduction and the absence of impairment loss on goodwill in the same period
0.4 of the previous fiscal year despite deficit recorded due to continuous decreased automobile sales
resulting from weak economy in the U.S. and reversal of deferred tax asset
Improved due to withdrawal from unprofitable retail business in addition to the absenceof impairment loss on fixed assets in the same period of the previous fiscal year

[Domestic equity-method associated companies]
Yoshinoya Holdings Co., Ltd.

Decrease due to impairment loss on investments in addition to poor performance in main
business and loss in a subsidiary(*13) Tex : Textile, Mac : Machinery, Ict : ICT, Aerospace & Electronics, Ene : Energy, Metals & Minerals, Che : Chemicals, Forest Products & General Merchandise, Fod : Food,
Fin : Finance, Realty, Insurance & Logistics Services, Ove : Overseas trading subsidiaries, Oth : Other
Note1 : Please refer to the bottom of page 13 for detail of (*1)-(*12)− 15 −

3. Management Policy

Enhancing Corporate Value on the World StageIn the two-year mid-term management plan, "Frontiere 2010 - Aspiring to be a Global Enterprise and Creating the Future" since the fiscal year
commencing in April 2009, ITOCHU has worked based on its basic policy to review our base business grounds, and continue to challenge and change,
aiming to steadily proceed for becoming "a highly attractive global enterprise", considering radical changes in world economy. The followings show
apparent results in the fiscal year ended March 31, 2009 as the first year of "Frontiere 2010".
Consumer-related sector: in Textile, ITOCHU acquired JAVA HOLDINGS CO., LTD. which owns subsidiaries in clothing for young women andchildren, and Leilian Co., Ltd. which has strong sales bases in women's apparel mainly for married women. ITOCHU also promoted business andcapital alliances with other major companies in each area including innerwear and life care. In Food, ITOCHU completed an investment in TING
HSIN (CAYMAN ISLANDS) HOLDING CORP., which is a holding company of the Ting Hsin group, a major food distribution group in China andTaiwan, and made it an equity-method associated company. In Japan, ITOCHU concluded capital and business alliance with UNY Co., Ltd. andIzumiya Co., Ltd. ITOCHU also decided to purchase additional common stocks of NIPPON ACCESS, INC. through TOB, and completed the TOB inthis April. Furthermore, Family Mart Co., Ltd., one of the equity-method associated companies, purchased all of the stocks of am/pm Japan Co., Ltd. toacquired the company, and the two companies merged after that. With these measures, ITOCHU is strengthening businesses in intermediate distribution
area and retail area to promote global business deployment. In Forest Products and General Merchandise area, ITOCHU established a tire
manufacturing company in Russia together with the Yokohama Rubber Company, Ltd., by which ITOCHU will make closer alliance with the company
and expand production and sales of Yokohama tires in Russia.
Natural resource / energy-related sector: in Natural resource area, in RGP-4 and RGP-5 project in West Australia iron ore business with BHP Billiton
Ltd., the capacity expansion work to annual production about 200 million tons is underway as initially planned for completion goal in 2011. In Energy
area, ITOCHU has decided to invest in "Chirag Oil Project" in the ACG field in the Caspian Sea. The investment in the project will be 6 billion dollars
in total and is planning to construct a new platform which is aiming at an operation start in 2013. This is to contribute to expanding ITOCHU's share of
production significantly. ITOCHU established a joint company with a Malaysian world’s largest palm oil producer, FELDA Palm Industries Sdn. Bhd.
to build a plant for producing solid biomass fuel from empty fruit bunches, and started constructing the plant. The plant is planned to start operation in2010 for producing 120 thousand tons a year, and to sell the produced fuel to power companies in Japan. ITOCHU also acquired 15% shares of a
British resource related company, Kalahari Minerals plc. and agreed to be involved in the management of the company. The said company is a top
stock holder of Extract Resources Ltd., holding 40% shares. Extract Resources Ltd. is an Australian company which holds the entire interest in a large
uranium field in Namibia in Africa which is presumed to have world top class reserves of the resource, and it is planned to start production of uranium
in the field in 2013. ITOCHU Group will make use of our position as one of the world top uranium trader for this project to supply stable uranium
resource to Japan.
Other sectors: in Machinery, in bidding for the world largest scale seawater conversion project which is promoted by the government of Victoria,
Australia in PPP form (the contract form where the public and the private sectors jointly get involved in a project), a consortium in which ITOCHU
participates won the bid for the project right.
As part of the prioritized area for new business development, "L-I-N-E-s" (See Note), ITOCHU underwrote the allocation of new shares to a third party
for U.S. Ener1 Inc. which controls a lithium-ion battery manufacturer, EnerDel, Inc. to strengthen the alliance in product sales and business, on theother hand, ITOCHU set forward business of storage battery by establishing a joint company with TODA KOGYO CORP. in the U.S. for
manufacturing and selling positive-electrode materials for lithium-ion batteries and putting a positive-electrode material manufacturing subsidiary of
the said company in Canada into a joint company.

− 16 −

<NOTE> "L-I-N-E-s" refers to the following four business areas plus "s" for synergy meaning cross-sectional business engagement: Life care (medical
services and health related businesses), Infrastructure (functional infrastructure of IT, LT, and FT, and social infrastructure related businesses), New
Technologies & Materials (bio- and nano-technologies), and Environment & New Energy (bioethanol and photovoltaic generation).

Further Promotion of the Mid-term Management Plan "Frontiere 2010"

In the fiscal year commencing April 2010, the last year of the mid-term management plan "Frontiere 2010 - Aspiring to be a Global Enterprise andCreating the Future", ITOCHU is going to continue the basic strategy since the previous fiscal year as well as to set up "Re-buildup of Workplace
Power" in order to vitalize the workplace and increase the profitability.
First, "Expansion of revenue base by well-selected investments and restructuring of assets".
ITOCHU is going on focusing on engagement in L-I-N-E-s, which will be a pillar of revenue source in the future, especially in "Life Care" and"Environment & New Energy" areas. ITOCHU prioritizes "solar photovoltaic generation", "rechargeable batteries", and "aqua-related business", andabove all, in order to reinforce solar power business, ITOCHU is steadily moving forward with business activities mainly led by Solar Business
Department, a new organization set up in 2009. Also, ITOCHU continues to enhance overseas revenue bases, which will lead to sustainable growth in
the future, as one of the most important operational measures, and promotes to develop projects and pursues revenue. Continuously in the fiscal year
ending March 31, 2011, ITOCHU is planning to promote new investments with careful project organizing kept in mind, while to steadily conduct asset
reshuffle through withdrawal of non-profitable businesses whose reasons to hold are no longer meaningful.
Second, "Strengthen financial standing and refine risk management". Though the world seems to turn the corner on the strict financial conditions,
ITOCHU continues to increase stockholders' equity and well-manage the balance sheet to maintain the healthy level of main financial ratios. ITOCHU
facilitates utilization of overseas group finance to do global finance controlling so as to steadily deal with out fund demand while improving fundefficiency.
Third, "Evolution of management systems". ITOCHU continuously promotes CSR, reinforces the corporate governance, as well as develops andimplements effective internal control regarding compliance and financial reporting.
Fourth, "Roll out global human resource strategy in full-scale". ITOCHU focuses on global human resource strategy to conduct specific enhancement
measures of human resources based on respective domestic staff members in line with the basic policy of global human resource strategy, "total
optimum of the whole Group with global perspectives".

With all mentioned above, ITOCHU enhances corporate value to reward its stakeholders and proceed step-by-step toward a truly attractive global
enterprise.

Dividend policy

ITOCHU maintains and reinforces its competitive power as well as increases stockholders' equity by retaining earnings to promote growth strategies.
ITOCHU's basic policy regarding dividend payments is a consistent and stable distribution of returns to the stockholders considering its businessperformance. Through "Frontiere 2010", ITOCHU increases dividend amount gradually and aims to improve consolidated dividend payout ratio, while
improving parent company's stockholders' equity.

− 17 −

Outlook for Fiscal Year 2011
Viewing the business environment of Fiscal 2011, the world economy is supposed to continue recovering gradually. Asian newly emerging countries
such as China and India are supposed to remain expanding their economies dynamically. The United States of America will slowly glow its economy
despite remaining aftershocks of the financial crisis, as private consumption is going to increase on the background of improved employment situation.
On the contrary, in Europe, its economy is expected to need more time for recovery as European financial problems prevent new economic stimulus
packages from being taken under still unrecovered labor markets. As for Japanese economy, though its stimulus packages are going to be getting lesseffective, it is supposed to continue recovering slowly but steadily with revived business activities on the basis of continuous growth of export and arecovered profit level. Nevertheless, it should be carefully considered that there is still vulnerability in financial systems with the example of financial
market chaos in Europe caused by financial deficit problem, and that the more anxiety for the financial systems might give a negative impact to theworld economy.
Under these circumstances, ITOCHU expects consolidated Total trading transactions of 11.5 trillion yen for the fiscal year ending March 2011,
with Net income attributable to ITOCHU of 160 billion yen.
For your attention, these forecasts are forward looking statements that are based on the management's assumptions and beliefs based on information
currently available and involve risks and uncertainties.
Thus, the actual results could be substantially different from the above statement due to such factors including, but not limited to, global economic
and market conditions, and currency exchange rate fluctuations.

(Unit: Billion yen)

Consolidated

Forecast
FY2011Result
FY2010Total trading transactions

11,500.0

10,306.8

Gross trading profit

1,080.0

Selling, general and administrative expenses(Unit: Billion yen)

Consolidated

Forecast
FY2011Result
FY2010Total assets

5,800.0

5,476.8

924.4

Gross interest-bearing debt

2,500.0

2,209.3(815.0)(769.9)Net interest-bearing debt

2,100.0

1,726.1

Provision for doubtful receivables

(5.0)

(7.0)

Total equity

1,430.0

1,311.4

Net interest expenses(25.0)(25.3)

Total ITOCHU
stockholders' equity

1,200.0

1,098.4

Dividends received

20.0

28.9

Other-net(45.0)

4.0

Income before income taxes andequity in earnings of associated companies

210.0

155.0

Foreign exchange rate (Yen/US$)

Income taxes(100.0)(51.6)

Crude oil (Brent) (US$/BBL)

Income before equity inearnings of associated companies

110.0

103.4

Iron ore, fine (US$/ton)

114 (Note 1)

60

Equity in earnings of associated companies

65.0

36.3

Iron ore, lump (US$/ton)

137 (Note 1)

72

Net income

175.0

139.7

Coking coal (US$/ton)

200 (Note 2)

129

Net income attributable to the noncontrolling interest(15.0)(11.5)

Thermal coal (US$/ton)

98

70

Net income attributable to ITOCHU

160.0

128.2

Precondition
FY2011Result
FY2010

90

93.36

79

62.49

(Jan-Dec)(Jan-Dec result)(Note 1) ITOCHU supposes these prices will be applied for shipments in the first quarter of FY 2011, but the actual prices will be decided according to negotiations with customers.
And the prices after the first quarter of FY 2011 are subject to change.
(Note 2) This precondition is based on general market information.

Distribution of the current fiscal year's profit
ITOCHU plans to pay dividends of 15 yen per share for the fiscal year ended March 31, 2010 (an interim dividend of 7.5 yen per share was already paid).
For the fiscal year ending March 31, 2011, ITOCHU plans to pay full-year dividends of 18 yen per share, comprising an interim dividend of 9 yen per shareand a year-end dividend of 9 yen per share.

− 18 −

Major Group Companies' Forecasts of Fiscal Year 2011
ITOCHU's major group companies' forecasts of fiscal year 2011 are as follows.
[ Major Group Companies'(unlisted companies) forecasts of fiscal year 2011 ](Unit: billion yen)
ITOCHU's shareof Net income

Shares

ITOCHU's shareof Net income[Forecasts]

JOI'X CORPORATION

100.0%

0.4

0.1

SANKEI COMPANY LIMITED

90.5%

1.4

(0.1)
0.5

Name

[FY 2010](Note 2)

Textile
ITOCHU Textile Prominent (ASIA) Ltd.

(Hong Kong)

100.0%

0.8

ITOCHU TEXTILE (CHINA) CO., Ltd.

(China)100.0%

1.0

0.9

100.0%

0.5

0.5

ITOCHU CONSTRUCTION MACHINERY CO., LTD.
Machinery

ICT, Aerospace& Electronics

Energy,Metals& Minerals(U.K.)

100.0%

0.0(0.6)

ITOCHU Automobile America Inc.

MCL Group Limited(U.S.A.)

100.0%

0.0(1.0)

ITOCHU MACHINE-TECHNOS(Note 4)100.0%

0.3

0.2

ITOCHU Metals Corporation

100.0%

0.9

0.8

ITOCHU Petroleum Japan Ltd.

100.0%

1.3

0.8

79.4

34.1

ITOCHU Minerals & Energy of Australia Pty Ltd(Australia)

100.0%

ITOCHU Oil Exploration (Azerbaijan) Inc.

(Cayman)100.0%Marubeni-Itochu Steel Inc.

Chemicals,
ForestProducts& General
Merchandise

10.5

50.0%

6.9

(Note 3)

2.7

ITOCHU Kenzai Corp.

87.3%

0.5

0.2

ITOCHU Pulp & Paper Corp.

100.0%

0.3

0.2
1.9

ITOCHU CHEMICAL FRONTIER Corporation

99.8%

2.1

ITOCHU PLASTICS INC.

100.0%

2.1

1.9

C.I.Kasei Co., Ltd.

97.6%

1.0

2.0

ITOCHU Finance Corporation
Finance, Realty,
Insurance
ITOCHU LOGISTICS CORP.
& Logistics Services
ITOCHU Property Development, Ltd.

99.1%

0.4

(1.7)

99.0%

0.5

2.0

99.9%

1.8

0.5

100.0%

0.6

0.6
(1.7)

Other

Century Medical, Inc.
ITOCHU International Inc.

(U.S.A.)

100.0%

3.6(U.K.)

100.0%

0.8

0.3(Hong Kong)

100.0%

2.5

2.1(China)100.0%

4.0

2.3(Australia)

100.0%

3.2

1.5

ITOCHU Europe PLC.
Overseas

ITOCHU Hong Kong Ltd.
ITOCHU (China) Holding Co., Ltd.
ITOCHU Australia Ltd.

[ Major Group Companies'(listed companies) forecasts of fiscal 2011 ]Machinery

ICT,
Aerospace& Electronics

Energy, Metals& Minerals
Chemicals,
Forest Products& General
Merchandise

Name(Expected)
Date ofAnnouncement

Companies'
Forecasts

Shares

ITOCHU's shareof Net income[Forecasts](Note 1)

Century Tokyo Leasing Corporation

May.10(Note 3)20.6%

(Note 3)

ITOCHU Techno-Solutions Corporation

Apr.30

Excite Japan Co., Ltd.

May.7

ITC NETWORKS CORPORATION

Apr.30NANO Media Inc.

May.7

12.5
(Note 3)

52.6%
58.8%

2.4
(Note 3)SPACE SHOWER NETWORKS INC.

Apr.28

JAMCO Corporation

May.11(Note 3)0.0

SUNCALL CORPORATION

May.14(Note 3)

ITOCHU ENEX CO., LTD.

Apr.30DAIKEN CORPORATION

May.17(Note 3)TAKIRON Co., Ltd.

May.12(Note 3)

ITOCHU SHOKUHIN Co., Ltd.

May.11

3.3

3.8(Note 2)
(Note 2)

(Note 3)

6.8
(Note 2)

1.4
(Note 3)

50.8%

1.6
(Note 2)

0.0

33.3%

(Note 3)

26.4%

(Note 3)

53.7%
25.1%

[FY 2010]

6.6

60.7%
51.3%

(Unit: billion yen)
ITOCHU's shareof Net income(0.1)(Note 2)
(Note 2)2.0
(Note 3)

1.6
(Note 2)27.5%

(Note 3)(Note 2)50.8%

(Note 5)(Note 2)

Yoshinoya Holdings Co., Ltd.

Apr.14

0.1

21.0%

0.0

Japan Foods Co., Ltd.

Apr.28

0.5

34.8%

0.2

Fuji Oil Co., Ltd.

May.7

(4.3)
0.1

Food
(Note 3)

25.7%
16.4

(Note 3)31.5%

(Note 2)

FamilyMart Co., Ltd.

Apr.8

Prima Meat Packers, Ltd.

May.14(Note 3)39.8%

(Note 3)

5.2
(Note 2)

4.7

FX PRIME Corporation
Finance,
Realty,Orient Corporation
Insurance& Logistics Services eGuarantee, Inc.

May.14(Note 6)55.0%

(Note 6)(Note 2)

May.11(Note 7)32.6%

(Note 7)(Note 2)

May.14(Note 3)31.7%

(Note 3)(Note 2)

(Note 1) ITOCHU's share of Net income [Forecasts] for Major Group Companies' (listed companies) described above excludes U.S. GAAP adjustments.
(Note 2) ITOCHU's share of Net income [FY 2010] is the figures after adjusting to U.S. GAAP.As for listed group companies which are scheduled to announce their results on andafter May 7, refer to the updated information to be released through ITOCHU website around end of May.
(Note 3) Please refer to the forecasts to be announced by the company.
(Note 4) On April 1, 2010, ITOCHU Sanki Corporation and ITOCHU MECHATRONICS CORPORATION, Ltd merged to form ITOCHU MACHINE-TECHNOS.
(Note 5) The fiscal year of ITOCHU SHOKUHIN Co., Ltd. ends in September, which is different from that of ITOCHU. As ITOCHU's accounting policy, the total of second half of the previous fiscal
year and the first half of the current fiscal year for ITOCHU SHOKUHIN Co., Ltd. is recognized in the consolidated financial statements. Therefore, since the figure obtained by multiplying
the company's announced annual estimated income by its share does not show the corresponding ITOCHU's estimated income for this fiscal year, ITOCHU refrains from describing the figure.
(Note 6) Although FX PRIME Corporation has announced its performance results, ITOCHU has declined to announce the figures in the above table since the company does not disclose performance
forecast as an individual company.
(Note 7) ITOCHU has adopted U.S. GAAP, which prescribes a substantial number of different accounting treatments from Japanese GAAP with regard to financial transactions for consumer
credit companies. Therefore, for Orient Corporation, ITOCHU has declined to announce the figures in the above table since a discrepancy may occur between the estimation announced
by the company and that of ITOCHU, which is calculated by multiplying the figures after U.S. GAAP adjustments by the share.

− 19 −

4. Consolidated Financial Statements-Unaudited-

Consolidated Financial Statements have been prepared in conformity with accounting principles generally acceptedin the United States of America.
(1) Consolidated Statements of Income-Annual [Condensed]
ITOCHU Corporation and Subsidiaries
Years ended March 31, 2010 and 2009
Millions of
U.S. dollars

Millions of Yen
2010

2009

Revenue:
Sales revenue......................................................................................
Trading margins and commissions on trading transactions................
Total revenue......................................................................................
Cost of sales........................................................................................
Gross trading profit ...........................................................................

¥ 2,885,598
531,039
3,416,637(2,492,271)
924,366¥ 2,821,553
597,5083,419,061(2,358,540)
1,060,521$ 31,014
5,708
36,722(26,787)
9,935

Selling, general and administrative expenses.......................................
Provision for doubtful receivables........................................................
Interest income.....................................................................................
Interest expense....................................................................................
Dividends received...............................................................................
Loss on investments-net.......................................................................
Loss on property and equipment-net....................................................
Gain on bargain purchase in acquisition...............................................
Other-net...............................................................................................

(769,907)(7,045)9,911(35,249)
28,900(4,456)(8,548)14,0152,999(768,115)(16,742)
16,253(45,710)35,039(23,066)(45,407)(4,515)(8,275)
(76)
107
(379)
311
(48)
(92)
151
32

Total other-expenses..........................................................

(769,380)(852,263)(8,269)

Income before income taxes andequity in earnings of associated companies....................................

154,986

208,258

1,666

Income taxes.........................................................................................

(51,571)(72,757)(555)

Income before equity inearnings of associated companies....................................................

103,415

135,501

1,111

Equity in earnings of associated companies.........................................

36,26941,304390

Net income...........................................................................................
Less: Net income attributable to the noncontrolling interest................
Net income attributable to ITOCHU................................................

139,684(11,531)¥ 128,153

176,805(11,415)¥ 165,390

1,501
(124)
$ 1,377

2010

Note :
1."Total trading transactions" in accordance with Japanese accounting practice consists of sales with respect to transactions in which thecompanies act as principal and the total amount of transactions in which the companies act as agent.
Total trading transactions for the years ended March 31, 2010 and 2009 were 10,306,799 million yen (110,778 million U.S.dollars)and 12,065,109 million yen respectively.
2.In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied. For details, please refer to "New Accounting
Pronouncements" on (8), page 33.
3."Gain on bargain purchase in acquisition" has been separately stated in the Consolidated Statements of Income from this second quarter,
which was previously included in "Other-net".

− 20 −

[Explanation for Consolidated Statements of Income]Revenue(Unit : billion yen)

Revenue

Gross trading profit

Provision for
doubtful receivables

3,416.6

3,419.1

2010

2009

924.4

(2.4)

Increase(Decrease)

1,060.5(136.2)

Increase(Decrease)(Unit : billion yen)

2010

Total of SG & A
Personnel expenses(Pension cost)
Other expenses(Service charge, distribution costs)(Rent, depreciation and amortization)(Travel expenses)(Others)

2009(769.9)(316.3)(19.7)(453.6)(242.5)(91.6)(18.9)(100.7)(768.1)(298.2)(13.8)(469.9)(253.9)(86.1)(25.3)(104.6)

2009

2010

(7.0)

(16.7)Net financial income

2009

3.6

9.7
Increase(Decrease)(Unit : billion yen)

2010

(1.8)
(18.1)
(5.9)
16.3
11.4
(5.5)
6.4
4.0
Increase(Decrease)(Unit : billion yen)

Provision for doubtful receivables

Net financial income

2009(Unit : billion yen)

Gross trading profit

Selling, general andadministrative
expenses

Increase(Decrease)

2010

5.6

(2.0)

Main reasons for changes
Decrease due to price falls on annual average in mineral resources, oil & gas, andfood materials, reduced transactions in automobiles and construction machinery, andslowdown in housing market in Japan and the U.S. despite increase due to the several
acquisitions including ITOCHU ENEX CO., LTD.

Decrease in revenue in ITOCHU Corporation and existing subsidiaries: -170.2
Increase due to acquisition of subsidiaries : +67.5
Decrease due to deconsolidation of subsidiaries : -9.2
Decrease due to exchange rate fluctuations : -24.3
Refer to "(9) Segment Information" on page 35-36

Decrease in ITOCHU Corporation and existing subsidiaries : +28.2[Increase in pension cost : -4.5]
Increase due to acquisition of subsidiaries : -57.8[Increase in pension cost : -1.4]
Decrease due to deconsolidation of subsidiaries : +10.0
Decrease due to exchange rate fluctuations : +17.8

Absence of the provision for doubtful receivables from Machinery-related customers in Mongoliain the previous fiscal year +10.8
Increase due to allowance for other doubtful receivables -1.1
Decrease in dividends received, improvement of net interest expenses
2010
2009
0.528%
0.818%USD LIBOR 3M, average (Jan.-Dec.) bb
0.686%
2.928%

Changes(0.290%)(2.242%)

JPY TIBOR 3M, average (Apr.-Mar.)Interest income
Interest expense
Net interest expense
Dividends received

Loss oninvestments-net(Unit : billion yen)

Loss on investments-net

Loss on property andequipment-net(Unit : billion yen)

Gain on bargain
purchase in acquisition(Unit : billion yen)Note.1

(4.5)

(8.5)

(Unit : billion yen)

(Unit : billion yen)

Income taxes
Equity in earnings ofassociated companies

Adjusted profit

2010(51.6)

2010(Unit : billion yen)

Total trading transactions
Gross trading profit ratio(Unit : billion yen)

Adjusted profit

Impairment loss on investments +26.2 (-46.0 -19.8)
Net gain on sales of investments -2.1 (26.7 24.6)
Loss on business disposals and others -5.5 (-3.9 -9.3)

36.9

Absence of the loss from Entrada Oil/Natural Gas Field Development Project(i); anddecrease in other impairment losses on property and equipment in the previous
fiscal year(ii)+34.4 (-45.4  -11.0) [(i):+29.2 / (ii):+5.2]
Net gain on sales of property and equipment +2.5 (-0.0 2.5)

Increase(Decrease)

-

14.0

Increase(Decrease)

(4.5)

7.5

(72.8)

2009

Gain in the acquisitions of C.I.Kasei Co., Ltd. and ITOCHU LOGISTICS CORP. and Leilian Co., LTD.
Note.1 Net gain recognized in the acquisition:
Total of "Loss on investments-net (-3.5)" and "Gain on bargain purchase in acquisition (+14.0)" is+10.6 (+6.2 after income tax effect).

Absence of the loss from Entrada Oil/Natural Gas Field Development Project +7.1 (-7.1 -)Foreign currency exchange gains and losses +3.4 (-3.1 0.3)
Others -2.9 (5.7  2.7)

Increase(Decrease)2009(Unit : billion yen)

Equity in earnings
of associated companies

Total tradingtransactions

3.0

Improvement of net interest expenses due to decline in U.S. dollars interest rate
Dividends received from LNG-related investments -8.9 (17.8 8.9)
Dividends received from an oil and gas-related investment +5.5 (2.0 7.4)

Increase(Decrease)

2009

2010

18.6

(45.4)

14.0

Other-net

Income taxes(23.1)

2009

2010

(6.3)
10.5
4.1
(6.1)
Increase(Decrease)

2009

2010

Note.1

16.3(45.7)(29.5)
35.0

2009

2010

Loss on property andequipment-net

Gain on bargain purchase in acquisition

Other-net

9.9(35.2)(25.3)
28.9

21.2
Increase(Decrease)

TING HSIN (CAYMAN ISLANDS) HOLDING CORP. +8.7 (-  8.7)
Century Tokyo Leasing Corporation(Note.2) [Net profit related to a merger +1.1]
Brazil Japan Iron Ore Corporation +4.0 (0.0 4.0)
Equity-method associated companies of I-Power Investment Inc. +2.2 (0.1 2.3)
Marubeni-Itochu Steel Inc. -12.1 (14.8  2.7)
Orient Corporation(Note.2) [Impairment loss on investment(Note.3 ) -1.2 (-10.8  -11.9)]
Japan Brazil Paper and Pulp Resources Development Co., Ltd. -5.6 (4.9 -0.7)
Yoshinoya Holdings Co., Ltd(Note.3) -3.3 (-2.6  -5.9)
Refer to "Performance of Group Companies" on page 14(Note.2) Refer to the results announced by each corresponding company, as their announcement dates areon and after ITOCHU's announcement date of Fiscal Year 2010.
(Note.3) Income tax effect on the impairment loss is not included

36.3

41.3

(5.0)

2010

2009

Increase(Decrease)

10,306.8
9.0%

12,065.1
8.8%(1,758.3)
0.2%

Refer to "(9) Segment Information" on page 35-36
Effect of exchange rate fluctuations: Approximately -400.0

2010

2009

Increase(Decrease)

Adjusted profit (-145.0)= Gross trading profit (-136.2)+ SG&A expenses (-1.8)+ Net financial income (-2.0)+ Equity in earnings of associated companies (-5.0)
The amount ( ) represents changes from the previous fiscal year

194.3

339.3

(145.0)[Average exchange rate Yen/USD][For March closing companies]111
2010
93.36
2009
100.542009
100.542008
115.56

Changes(7.18)
Changes(15.02)− 21 −[For December closing companies] 1111
2010
93.54
2009
105.102009
105.102008
118.21

Changes(11.56)
Changes(13.11)[Average exchange rate Yen/AUD][For March closing companies]111
2010
77.68
2009
82.10

2009
82.10
2008
98.78

Changes(4.42)
Changes(16.68)

-Unaudited-(2) Consolidated Statements of Income-Quarterly [Condensed]
ITOCHU Corporation and Subsidiaries
For the three months ended March 31, 2010 and 2009
Millions of
U.S. dollars

Millions of Yen
Jan.-Mar.2010

Jan.-Mar.2009

Jan.-Mar.2010

Revenue:
Sales revenue.....................................................................................
Trading margins and commissions on trading transactions...............
Total revenue.....................................................................................
Cost of sales.......................................................................................
Gross trading profit ..........................................................................

¥ 764,782
137,906
902,688(654,390)
248,298¥ 742,575
146,597
889,172(653,195)
235,977$ 8,2201,482
9,702(7,033)
2,669

Selling, general and administrative expenses......................................
Provision for doubtful receivables.......................................................
Interest income.....................................................................................
Interest expense...................................................................................
Dividends received..............................................................................
Loss on investments-net......................................................................
Loss on property and equipment-net...................................................
Gain on bargain purchase in acquisition..............................................
Other-net..............................................................................................

(191,780)(2,088)2,181(8,652)
14,534(8,945)(9,389)
4,886
2,924

(197,952)(4,235)
3,645(11,029)7,874(9,474)(10,260)
5,056(2,061)
(22)
23
(93)
156
(96)
(101)
53
31

Total other-expenses.........................................................

(196,329)(216,375)(2,110)

Income before income taxes andequity in earnings of associated companies...................................

51,96919,602

559

Income taxes........................................................................................

(2,368)(2,464)(26)

Income before equity inearnings of associated companies...................................................

49,601

17,138533

Equity in earnings (losses) of associated companies...........................

2,110(9,365)23

Net income..........................................................................................
Less: Net income attributable to the noncontrolling interest...............
Net income attributable to ITOCHU...............................................

51,711(4,173)¥ 47,538

7,773(5,058)¥ 2,715

556
(45)
$ 511

Note :
1."Total trading transactions" in accordance with Japanese accounting practice consists of sales with respect to transactions in which thecompanies act as principal and the total amount of transactions in which the companies act as agent.
Total trading transactions for the three months ended March 31, 2010 and 2009 were 2,809,668 million yen (30,198 million U.S.dollars)and 2,458,732 million yen respectively.
2.In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied. For details, please refer to "New Accounting
Pronouncements" on (8), page 33.

Consolidated Statements of Comprehensive Income-Quarterly [Condensed]
ITOCHU Corporation and Subsidiaries
For the three months ended March 31, 2010 and 2009
Millions of
U.S. dollars

Millions of Yen
Jan.-Mar.2010

Comprehensive income :Net income................................................................................
Other comprehensive income (loss) (net of tax):
Foreign currency translation adjustments..............................
Pension liability adjustments.................................................
Unrealized holding gains (losses) on securities.....................
Unrealized holding gains on derivative instruments..............
Total other comprehensive income (loss) (net of tax)...........
Comprehensive income (loss)..................................................
Comprehensive income attributable tothe noncontrolling interest................................................
Comprehensive income (loss) attributable to ITOCHU.............

¥ 51,711

Jan.-Mar.2009

¥

7,773

Jan.-Mar.2010$

556

23,436
15,518
10,5302,221
51,705
103,416(52,770)(34,988)(8,938)
3,222(93,474)(85,701)

252
167
113
24
556
1,112

(5,857)¥ 97,559(1,914)¥ (87,615)(63)$ 1,049

Note : In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied. For details, please refer to "New Accounting Pronouncements"
on (8), page 33.

− 22 −

[Explanation for Consolidated Statements of Income -Quarterly]
Revenue(Unit : billion yen)

Revenue

Gross trading profit

Provision for
doubtful receivables

Net financial income

Loss on property
and equipment-net

2.2
(8.7)
(6.5)
14.5

3.6
(11.0)
(7.4)
7.9

(1.5)
2.4
0.9
6.7

Increase in dividends received, improvement of net interest expenses
Jan.-Mar.2010
Jan.-Mar.2009
JPY TIBOR 3M, average (Jan.-Mar.)0.449%
0.715%USD LIBOR 3M, average (Oct.-Dec.) b
0.268%
2.771%

Changes(0.266%)(2.503%)

Improvement of net interest expenses due to decline in U.S. dollars interest rate
Dividends received from an oil and gas-related investment +5.5 (2.0  7.4)
Dividends received from LNG-related investments +1.3 (1.6  3.0)

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
(8.9)
(9.5)
0.5

Impairment loss on investments +5.1 (-10.2  -5.1)
Net gain on sales of investments +2.8 (1.5  4.2)
Loss on business disposals and others -7.4 (-0.7  -8.1)

Increase(Unit : billion yen)Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)(9.4)(10.3)
0.9

Absence of the loss from Entrada Oil/Natural Gas Field Development Project including thereclassification of +3.4 billion yen from Other-net (i); and increase of the other impairment
losses on property and equipment in the same period of the previous fiscal year(ii)+0.6(-10.0  -9.4) [(i):+2.6 / (ii): -2.0]
Net gain on sales of property and equipment, and others +0.3 (-0.3  -0.0)

Increase(Unit : billion yen)

Gain on bargain purchase in acquisition

Mainly due to decrease in provision for doubtful receivables for domestic customers

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
8.1
0.5
7.6

(Unit : billion yen)

Loss on property and equipment-net

Gain on bargain
purchase inacquisition

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
(2.1)
(4.2)
2.1

(Unit : billion yen)

Loss on investments-net

Decrease in ITOCHU Corporation and existing subsidiaries : +6.0
[Decrease in pension cost : +0.3]
Increase due to acquisition of subsidiaries : -4.3
[Increase in pension cost : -0.3]
Decrease due to deconsolidation of subsidiaries : +2.2
Decrease due to exchange rate fluctuations : +2.3

Increase(Unit : billion yen)Interest income
Interest expense
Net interest expense
Dividends received

Due to Increase in revenue in ITOCHU Corporation and existing subsidiaries : +4.0
Increase due to acquisition of subsidiaries : +10.2
Decrease due to deconsolidation of subsidiaries : -0.5
Decrease due to exchange rate fluctuations : -1.4
Refer to "(9) Segment Information" on page 37-38

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
Total of SG & A(191.8)(198.0)
6.2
Personnel expenses(82.7)(77.7)(5.0)(Pension cost)
(4.7)
(4.7)
(0.0)
Other expenses(109.1)(120.2)
11.2(Service charge, distribution costs)(55.6)(62.3)
6.6(Rent, depreciation and amortization)(22.9)(24.3)
1.4(Travel expenses)
(4.6)
(5.7)
1.1
(Others)(25.9)(28.0)
2.0

Net financial income

Loss oninvestments-net

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
248.3
236.0
12.3

(Unit : billion yen)

Provision for doubtful receivables

Main reasons for changes
Increase due to gradual recovery in condominium sales compared with the same periodof the previous fiscal year in addition to the effect from the acquisitions ofseveral companies

Increase(Unit : billion yen)

Gross trading profit

Selling, general andadministrative
expenses

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
902.7
889.2
13.5

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
Note.1
4.9
4.9

Gain in the acquisition of Leilian Co., LTD.
Note.1 Net after income tax effect: +2.9

Other-net(Unit : billion yen)

Other-net

Income taxes(Unit : billion yen)

Income taxes

Equity in earnings(losses) of associatedcompanies(Unit : billion yen)

Equity in earnings (losses) of
associated companies

Increase
Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)

2.9

5.1

(2.1)

Absence of the loss from Entrada Oil/Natural Gas Field Development Project including
the reclassification of -3.4 billion yen to Loss on property and equipment-net -3.4 (3.4  -),Foreign currency exchange gains and losses +2.1 (0.0  2.1), Others -0.8 (1.6  0.8)

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
(2.4)
(2.5)
0.1

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
2.1
(9.4)
11.5

TING HSIN (CAYMAN ISLANDS) HOLDING CORP. +6.5 (-  6.5)
Brazil Japan Iron Ore Corporation +1.7 (0.0  1.7)
Equity-method associated companies of I-Power Investment Inc. +1.6 (0.0  1.5)
Yoshinoya Holdings Co., Ltd (Note.2) -3.0 (-2.4  -5.4)
Orient Corporation (Note.3) [Impairment loss on investment (Note.2) -1.2 (-10.8  11.9)
Refer to "Performance of Group Companies" on page 15(Note.2) Income tax effect on the impairment loss is not included(Note.3) Refer to the results announced by each corresponding company, as their announcement dates areon and after ITOCHU's announcement date of Fiscal Year 2010.

Total tradingtransactions

Adjusted profit(Unit : billion yen)

Total trading transactions
Gross trading profit ratio(Unit : billion yen)

Adjusted profit

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)2,809.7
2,458.7
350.9
8.8%
9.6%
(0.8%)

Increase

Jan.-Mar.2010 Jan.-Mar.2009 (Decrease)
66.7
29.2
37.5

Refer to "(9) Segment Information" on page 37-38
Effect of exchange rate fluctuations: Approximately -90.0

Adjusted profit (+37.5)= Gross trading profit (+12.3)+ SG&A expenses (+6.2)+ Net financial income (+7.6) + Equity in earnings of associated companies (+11.5)− 23 −

The amount ( ) represents changes from the previous fiscal year

-Unaudited-(3) Consolidated Balance Sheets (Assets) [Condensed]
ITOCHU Corporation and Subsidiaries
As of March 31, 2010 and 2009

Millions of Yen

AssetsMar. 2010

Mar. 2009¥¥

Current assets:
Cash and cash equivalents....................................................
Time deposits........................................................................
Short-term investments.........................................................
Trade receivables:
Notes..................................................................................
Accounts............................................................................
Allowance for doubtful receivables...................................
Net trade receivables.......................................................
Due from associated companies............................................
Inventories.............................................................................
Advances to suppliers............................................................
Prepaid expenses....................................................................
Deferred tax assets.................................................................
Other current assets................................................................
Total current assets............................................................

628,820
3,738
9,214

$ 5,113
81
77

153,694
1,287,821(14,833)
1,426,682
96,279476,066
72,87028,36145,759257,127
2,893,481

161,533
1,135,031(13,869)
1,282,695
106,934
509,503
91,871
29,81740,556
235,0462,938,194

1,652
13,842(160)
15,334
1,035
5,117
783
305
491
2,763
31,099Investments and non-current receivables:
Investments in and advances to associated companies..........
Other investments..................................................................
Other non-current receivables................................................
Allowance for doubtful receivables.......................................
Total investments and net non-current receivables...........

938,689
450,341
163,515(59,876)
1,492,669

754,062
426,054
155,427(60,704)
1,274,839

10,089
4,840
1,758
(644)
16,043

Property and equipment, at cost:Land.......................................................................................
Buildings................................................................................
Machinery and equipment.....................................................
Furniture and fixtures............................................................
Mineral rights........................................................................
Construction in progress........................................................
Total property and equipment, at cost...............................
Less accumulated depreciation..............................................
Net property and equipment..............................................

164,522412,468
420,640
82,87164,15230,8381,175,491
509,140
666,351

145,881336,630
328,940
69,90760,245
16,846
958,449
397,675
560,774

1,768
4,433
4,521
891
690
331
12,634
5,472
7,162

Prepaid pension cost..............................................................
Deferred tax assets, non-current..........................................
Other assets............................................................................

7,603
108,316
308,427

1,079
136,389
280,817

82
1,165
3,315

5,192,092$ 58,866

Total............................................................................

¥

475,674
7,523
7,140

Millions of
U.S. dollars
Mar. 2010

5,476,847¥

Note:
In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied. For details, please refer to "New
Accounting Pronouncements" on (8), page 33.

− 24 −

-Unaudited-(3) Consolidated Balance Sheets (Liabilities and Stockholders' Equity) [Condensed]
ITOCHU Corporation and Subsidiaries
As of March 31 , 2010 and 2009

Millions of
U.S. dollars

Millions of Yen

Liabilities and Equity

Mar. 2010
Current liabilities:
Short-term debt .....................................................................................
Current maturities of long-term debt......................................................
Trade payables:
Notes and acceptances.........................................................................
Accounts..............................................................................................
Total trade payables.......................................................................
Due to associated companies.................................................................
Accrued expenses...................................................................................
Income taxes payable.............................................................................
Advances from customers......................................................................
Deferred tax liabilities............................................................................
Other current liabilities..........................................................................
Total current liabilities ..................................................................
Liabilities:
Long-term debt, excluding current maturities......................................

¥

Mar. 2009

229,236
60,728¥Mar. 2010

538,161
90,631

$

2,464
653

125,278
1,092,321
1,217,599
25,431
124,877
38,76380,030868
215,026
1,992,558

134,591
907,149
1,041,740
16,618125,062
45,472
96,769983
192,681
2,148,117

1,347
11,74013,087
273
1,342
417
860
9
2,311
21,416

2,107,589

1,934,421

22,652

Accrued retirement and severance benefits..........................................

43,31454,697

466

Deferred tax liabilities, non-current.....................................................

22,033

17,502237

Total liabilities ..............................................................................

4,165,494

4,154,737

44,771

202,241
137,506

202,241
137,171

2,174
1,478

Equity:Common stock:
Authorized: 3,000,000,000 shares;
issued:1,584,889,504 shares.....................................................................
Capital surplus..........................................................................................
Retained earnings:
Legal reserve.........................................................................................
Other retained earnings ........................................................................
Total retained earnings.....................................................................
Accumulated other comprehensive income (loss) :Foreign currency translation adjustments.............................................
Pension liability adjustments................................................................
Unrealized holding gains on securities.................................................
Unrealized holding losses on derivative instruments............................
Treasury stock, at cost..............................................................................
Total ITOCHU stockholders' equity................................................

16,117884,280
900,397

13,183
783,699
796,882

173
9,505
9,678

(90,088)(86,479)
40,544(3,015)(2,687)
1,098,419(185,363)(106,013)
13,686(6,482)(2,711)
849,411

(968)
(930)
436
(33)
(29)
11,806

Noncontrolling interest.............................................................................

212,934

187,944

2,289

Total equity..........................................................................................

1,311,353

1,037,355

14,095

Total...............................................................................................

− 25 −¥

5,476,847¥

5,192,092$

58,866

[Explanation for Consolidated Balance Sheets]
AssetsNet Trade receivables
Inventories(Unit: billion yen)Mar.2010

Mar.2009

Increase(Decrease)(149.4)

Net Property and equipment

Main reasons for changes:

Acquisition of C.I.Kasei Co.,Ltd.,
ITOCHU LOGISTICS CORP., JAVAHOLDINGS CO.,LTD. and Leilian Co., LTD.

Cash and cash equivalents, Time deposits

...

483.2

632.6

Net trade receivables...

1,426.7

1,282.7

Due from associated companies

...

96.3

106.9

(10.7) ... Decrease in Machinery

Inventories

...

476.1

509.5

(33.4) ... Decrease in Automobile, and increase in Realty; and Energy

Other current assets

...

257.1

235.0

22.1 ... Increase in short-term loans receivables and derivative asset

Investments in and advances
to associated companies

...

938.7

754.1

184.6 ...

Net property and equipment

...

666.4

560.8

Deferred tax assets, non-current

...

108.3

136.4

Other assets

...

308.4

280.8

Total assets...

5,476.8144.0 ... Increase in Energy; and Chemicals, and decrease in Automobile

Increase due to Investment in TING HSIN (CAYMAN ISLANDS) HOLDING CORP.
and in Textile; and Energy, Metals & Minerals bb
Increase due to acquisition of subsidiaries; and resulting from the appreciations of bb
105.6 ...
Australian dollar against the yen in Energy, Metals & Minerals bb
Decrease in deferred tax assets due to an improvement in unrealized gains on bb bb(28.1) ...
shareholdings

27.6 ... Increase in intangible assets

5,192.1

Liabilities

35.0
16.0
53.5

284.8

Total assets as of March 31, 2010, increased by 5.5% or 284.8 billion yen compared with
March 31, 2009, to 5,476.8 billion yen (58,866 million U.S. dollars), due to increased Net
trade receivables and Inventories associated with higher oil prices compared with March 31,
2009 and market recovery in chemicals, increased Investments and Net property andequipment resulting from the appreciations of Brazilian real and Australian dollar in Energy,
Metals & Minerals as well as new investments in Textile and in Food.

(Unit: billion yen)Mar.2010

Mar.2009

Increase(Decrease)175.9 ... Increase in Energy; and Chemicals and decrease in Automobile bb b

Total trade payables...

1,217.6

1,041.7

Other current liabilities

...

215.0

192.7

...

229.2

538.2

(308.9) ...

...

57.5

81.9

(24.5)

...
...

3.3
290.0

8.7
628.8

(5.4)
(338.8)Long-term debt...

1,736.2

1,610.4

125.8 ... Shift from short-term to long-term interest-bearing debt

Debentures
Long-term total
Total interest-bearing debt
Cash and cash equivalents, Time deposits
Net interest-bearing debt

...
...
...
...
...

183.1
1,919.3
2,209.3
483.2
1,726.1

150.2
1,760.5
2,389.3
632.6
1,756.8

33.0
158.8(180.1)(149.4)(30.7)Net debt-to-stockholders' equity ratio [times]* ...

1.6

22.3 ... Increase in derivative liabilities and deposit received[Interest-bearing debt]
Short-term debt
Current maturities of long-term
debt excluding debentures
Current maturities of debentures
Short-term total

2.1 0.5 improved

EquityDecrease due to repayment and shift from short-term to long-term bb
interest-bearing debt

Interest-bearing debt decreased by 7.5% or 180.1 billion yen compared with March 31,
2009, at 2,209.3 billion yen (23,745 million U.S. dollars), and Net interest-bearing debt
(interest-bearing debt after deducting Cash and cash equivalents and Time deposits)
decreased by 1.7% or 30.7 billion yen compared with March 31, 2009, to 1,726.1 billion yen(18,552 million U.S. dollars) despite some increase from several acquisitions of subsidiaries.
NET DER (Net Debt-to-Stockholders' Equity Ratio) improved by 0.5 points comparedwith March 31, 2009, to 1.6 times.

(Unit: billion yen)Mar.2010

Mar.2009

Increase(Decrease)

Legal reserve

...
...
...
...

202.2
137.5
900.4
16.1

202.2
137.2
796.9
13.2

0.3
103.5
2.9

Other retained earnings

...

884.3

783.7

100.6 ...

...

(139.0)(284.2)

145.1

...
...
...

(90.1)(86.5)
40.5(185.4)(106.0)13.7

95.3 ... Effect of mainly appreciation of Brazilian real and Australian dollar against the yen
19.5
26.9 ... Effect of stock market prices' recovery compared with March 31, 2009

...

(3.0)

(6.5)

3.5

...
...

(2.7)
1,098.4

(2.7)
849.4

0.0
249.0

Ratio of stockholders' equity to total assets* ...

20.1%

16.4%

3.7%

Noncontrolling interest

...

212.9

187.9

25.0

Total equity...

1,311.4

1,037.4

274.0

Common stock
Capital surplus
Retained earnings:

Accumulated othercomprehensive income (loss):
Foreign currency translation adjustments
Pension liability adjustments
Unrealized holding gains on securities
Unrealized holding losses on derivative
instruments

Treasury stock, at cost
Total ITOCHU stockholders' equity

Net income attributable to ITOCHU +128.2, Dividend payment -24.5,
Transfer to legal reserve and others -3.0

ITOCHU stockholders' equity, which corresponds to Total equity before applying
SFAS160 (codified to ASC Topic 810), increased by 29.3% or 249.0 billion yen
compared with March 31, 2009, to 1,098.4 billion yen (11,806 million U.S. dollars), due
to decrease from dividend payment, accumulation of Net income attributable to
ITOCHU, improvement in Foreign currency translation adjustments, Pension liability
adjustments and in Unrealized holding gains on securities resulting from recovery ofstock market.
As a result, Ratio of stockholders' equity to total assets rose by 3.7 points comparedwith March 31, 2009, to 20.1%.
Total equity, or total of ITOCHU stockholders' equity and Noncontrolling interest,
which means the total equity of the entire Group, increased by 26.4% or 274.0 billion
yen compared with March 31, 2009, to 1,311.4 billion yen (14,095 million U.S. dollars)(Note*) "Stockholders' equity" is equivalent to "ITOCHU stockholders' equity" which had been used until fiscal year 2009and used in calculating "Ratio of stockholders' equity to total assets" and "NET DER".

[Current exchange rate Yen/USD][For March closing companies]
Mar.2010 Mar.2009 Changes
93.04
98.23
(5.19)
Mar.2009 Mar.2008 Changes
98.23
100.19(1.96)[The Nikkei Stock Average index]
Mar.2010 Mar.2009 Changes
11,0898,109
2,980− 26 −[Current exchange rate Yen/AUD][For December closing companies] [For March closing companies]
Dec.2009 Dec.2008 Changes
Mar.2010 Mar.2009
Changes
92.10
91.03
1.07
85.28
67.01
18.27
Dec.2008 Dec.2007 Changes
Mar.2009 Mar.2008
Changes
91.03
114.15(23.12)67.01
91.74(24.73)

(4)Consolidated Statements of Equity [Condensed]
ITOCHU Corporation and Subsidiaries
Years ended March 31, 2010 and 2009

-UnauditedMillions of
U.S. dollars
2010

Millions of Yen
Common stock:
Balance at beginning of year......................................................................
Balance at end of year.................................................................................
Capital surplus:
Balance at beginning of year......................................................................
Deficit arising from retirement of treasury stock ......................................
Sale (purchase) of subsidiary shares to (from) noncontrolling interest......
Balance at end of year.................................................................................
Retained earnings:
Legal reserve:
Balance at beginning of year..............................................................
Transfer from other retained earnings................................................
Redistribution arising from sale by parent company ofcommon stock of subsidiaries and associated companies...............
Balance at end of year........................................................................
Other retained earnings:
Balance at beginning of year..............................................................
Net income attributable to ITOCHU..................................................
Cash dividends...................................................................................
Transfer to legal reserve.....................................................................
Redistribution arising from sale by parent company ofcommon stock of subsidiaries and associated companies...............
Deficit arising from retirement of treasury stock ..............................
Balance at end of year........................................................................
Accumulated other comprehensive income (loss):
Balance at beginning of year......................................................................
Other comprehensive income (loss)...........................................................
Sale (purchase) of subsidiary shares to (from) noncontrolling interest......
Balance at end of year.................................................................................
Treasury stock:
Balance at beginning of year......................................................................
Net changes in treasury stock.....................................................................
Balance at end of year.................................................................................
Total ITOCHU stockholders' equity....................................
Noncontrolling interest
Balance at beginning of year......................................................................
Net income attributable to the noncontrolling interest...............................
Other comprehensive income (loss) attributable
to the noncontrolling interest...................................................................
Cash dividends to noncontrolling interest..................................................
Contribution from (distribution to) noncontrolling interest........................
Sale (purchase) of subsidiary shares to (from) noncontrolling interest......
Acquisitions (deconsolidation) of subsidiaries...........................................
Balance at end of year.................................................................................
Total equity.............................................................................

2010

2009

¥
¥

202,241
202,241¥¥

202,241
202,241

$
$

2,174
2,174

¥

137,171335
137,506¥

137,211(40)
137,171

$

1,474
4
1,478

13,183
3,007¥

10,373
2,642

$

¥

¥

¥

¥

¥

¥

(73)
16,117

783,699
128,153(24,516)(3,007)73(122)884,280

¥

¥

¥

¥

(284,172)
145,125
9(139,038)¥(2,711)24(2,687)¥¥ 1,098,419

¥

¥
¥

168
13,183652,757
165,390(31,636)(2,642)(168)(2)
783,699

$

$

$

$

142
32
(1)
173

8,423
1,377
(263)
(32)
1
(1)
9,505

(26,448)(257,724)(284,172)$$¥(2,589)(122)(2,711)

$

(29)
0
(29)

¥

849,411$

11,806¥(3,055)1,560
0$ (1,495)

187,944
11,531

145,618
11,415

2,020
124

2,391
(7,177)963(2,977)
20,259212,934(4,781)(7,067)
3,786(5,330)44,303
187,944

$

26
(77)
10
(32)
218
2,289

¥ 1,311,353¥ 1,037,355$

14,095¥

139,684

¥

$

1,501

¥

96,446
19,70027,868
3,502
147,516
287,200(13,922)273,278(162,751)(33,759)(61,990)(4,005)(262,505)(85,700)(6,634)¥ (92,334)

$

1,037
212
299
38
1,586
3,087
(150)
2,937

¥

¥

Comprehensive income (loss):
Net income..................................................................................................
Other comprehensive income (loss) (net of tax):
Foreign currency translation adjustments..........................................
Pension liability adjustments..............................................................
Unrealized holding gains (losses) on securities.................................
Unrealized holding gains (losses) on derivative instruments.............
Total other comprehensive income (loss) (net of tax)........................
Comprehensive income (loss).....................................................................
Comprehensive income attributable to the noncontrolling interest............
Comprehensive income (loss) attributable to ITOCHU........................
Note :

176,805

In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied. For details, please refer to "New Accounting
Pronouncements" on (8), page 33.

− 27 −

[Explanation for Consolidated Statements of Equity ]Accumulated othercomprehensive
income (loss)

Foreign currencytranslation adjustments

Foreign exchange differences in exchange rate between at invested to the overseas group companies
and at the end of this period, are recognized as "Foreign currency translation adjustments".

(Unit: billion yen)

as of: Mar 2010

Mar 2009

Increase(Decrease)(90.1)(185.4)95.3

as of: Dec 2009

Dec 2008

Changes

92.10

91.03

1.1

as of: Mar 2010

Mar 2009

Changes

93.04

98.23

(5.2)

as of: Mar 2010

Mar 2009

Changes

85.28

67.01

18.3

Balance
Exchange rate

(Yen/US$)(Yen/US$)(Yen/A$)

Pension liability adjustments

Difference between the projected benefit obligations and the plan assets is amortized according
to the defined accounting standard, and the other unamortized balance (net of tax) is recognizedas "Pension liability adjustments".

(Unit: billion yen)

as of: Mar 2010

Mar 2009

Increase(Decrease)(86.5)(106.0)19.5

Balance

Unrealized holding
gains on securities

Available-for-sale securities are recorded at fair value at the end of this period, and differences (net of tax)
between carrying amount and fair value are recognized as "Unrealized holding gains on securities".

(Unit: billion yen)

as of: Mar 2010

Mar 2009

Increase(Decrease)

40.5

13.7

26.9

Balance

Unrealized holding losses
on derivative instruments

Derivative transactions which are designated and qualified as 'cash flow hedges' are recorded at fair value
at the end of this period, and differences (net of tax) between carrying amount and fair value are recognized
as "Unrealized holding losses on derivative instruments".

(Unit: billion yen)

as of: Mar 2010

Mar 2009

Increase(Decrease)

(3.0)

(6.5)

3.5

Balance− 28 −

-Unaudited-(5) Consolidated Statements of Cash Flows [Condensed]
ITOCHU Corporation and Subsidiaries
Years ended March 31, 2010 and 2009

Millions of Yen

Millions of
U.S. dollars
2010

2010

2009

¥ 139,684¥ 176,805$ 1,501

76,377
7,045
4,456
8,548
(14,015)

64,98816,742
23,06645,407
-

821
76
48
92
(151)

(16,794)(3,555)93,630295,376(22,298)(22,816)(5,040)276,854

(180)
(38)
1,006
3,175

(82,045)(117,651)(882)(88,672)(28,967)
4,191(1,311)
486(196,318)(174,365)(17,746)(15,550)(752)
31(326,033)

(953)
(311)
45
(14)
5
(2,110)Net proceeds of long-term debt .........................................................................
Net increase (decrease) in short-term debt ........................................................
Other ..................................................................................................................
Net cash provided by (used in) financing activities ................................

101,464(325,677)(34,774)(258,987)

38,925
256,101(36,704)
258,3221,090(3,500)(374)(2,784)

Effect of exchange rate changes on cash and cash equivalents ......................
Net increase (decrease) in cash and cash equivalents ......................................
Cash and cash equivalents at beginning of year ..............................................
Cash and cash equivalents at end of year .........................................................

6,783(153,146)
628,820¥ 475,674(26,634)
182,509446,311¥ 628,820

73(1,646)
6,759$ 5,113

Cash flows from operating activities :Net income ........................................................................................................
Adjustments to reconcile net income to net cash
provided by operating activities :Depreciation and amortization .......................................................................
Provision for doubtful receivables .................................................................
Loss on investments-net .................................................................................
Loss on property and equipment-net ..............................................................
Gain on bargain purchase in acquisition ........................................................
Equity in earnings of associated companies,
less dividends received .................................................................................
Deferred income taxes ....................................................................................
Changes in assets and liabilities, other-net .....................................................
Net cash provided by operating activities ...............................................
Cash flows from investing activities :Net purchases of property, equipment and other assets ....................................
Net increase in investments in and advances
to associated companies ..................................................................................
Net purchases of other investments ...................................................................
Net (origination) collections of other non-current loan receivables ..................
Net increase in time deposits .............................................................................
Net decrease in marketable securities ................................................................
Net cash used in investing activities ........................................................
Cash flows from financing activities :(Note) In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied. For details, please refer to"New Accounting Pronouncements" on (8), page 33.

− 29 −

[Explanation for Consolidated Statements of Cash Flows]
Note :
Explanation for indication

Cash-inflow : " + "Cash-outflow : " - ""Decrease in assets" or "Increase in liabilities" : Cash-inflow"Increase in assets" or "Decrease in liabilities" : Cash-outflow

Cash flows from operating
activities(Unit: billion yen)
Increase(Decrease)

Major items

2010

2009

Net income

139.7

176.8

(37.1)

Non-cash charges of P/L

62.1 a105.1 b(43.0)

a : Depreciation and amortization +76.4
Equity in earnings of associated companies, less dividends received -16.8
Gain on bargain purchase in acquisition -14.0
b : Depreciation and amortization +65.0, Loss on property and equipment-net +45.4
Loss on investment-net +23.1
Deferred income taxes -22.8

Changes in assets and liabilities,
other-net

93.6 a(5.0) b98.7

a : Inventories +49.3, Trade receivables / payables +26.6
Other +17.7
b : Trade receivables / payables +27.3, Inventories -7.2
Due from/to associated companies +4.5, Other -29.6

295.4

276.9

18.5

Net cash provided byoperating activities
Cash flows from investing
activities(Unit: billion yen)

Net purchases of property,
equipment and other assets

2010

2009

(82.0) a(117.7) b

Net increase in investments inand advances to associatedcompanies

2010

2009

(88.7) a(174.4) b

Net purchases of otherinvestments

2010

2009

(29.0) a(17.7) b

Net (origination) collections ofother non-current loan
receivables

2010

2009

Net increase in time deposits

4.2 a
2010

(1.3)
Net decrease inmarketable securities
Net cash used in investing
activities2010(15.6) b
2009

(0.8)
2009

Increase(Decrease)

35.6

a : Purchases by natural resources development-related subsidiaries -27.6
Purchase by ship-related subsidiaries -11.6
Net purchase by food subsidiaries -8.1
Purchase by ITOCHU Corporation -7.9
b : Net purchases by natural resources development-related subsidiaries -51.7
Net purchases by food subsidiaries -14.8
Net purchases by airline-related subsidiaries -9.5

Increase(Decrease)85.7

a : Net increase in investments in food and textile business -71.6
Investment in leasing business -5.9
b : Investment in iron ore production and wholesale business -113.7
Net increase in investment and advances to associated companies in Machinery -35.3

Increase(Decrease)(11.2)

a : Investment in natural resources development sector -11.5
Net purchases (by TOB) net of cash acquired in acquisitions of
C.I.Kasei Co., Ltd. and ITOCHU LOGISTICS CORP. -8.7
b : Net purchases of investments in Machinery and energy-development sector -38.2
Effect of acquisition of subsidiaries in Energy, Metals & Minerals and in Textile +28.5

Increase(Decrease)

19.7

a : Net collections of loan receivables by ITOCHU Corporation +5.2
b : Net origination of loan receivables by Machinery subsidiaries -12.0

Increase(Decrease)(0.6)
Increase(Decrease)

0.5

0.0

0.5

(196.3)(326.0)129.7

Cash flows from financing
activities(Unit: billion yen)
(Note)
Changes in current maturities of long-term debt are included in "Net proceeds of long-term debt" on the statements of cash flows.

Net proceeds of long-term debt

2010

101.5 a2009

38.9 b

Net increase (decrease) inshort-term debt

2010

2009

(325.7) a

256.1 b

Other

2010

2009

(34.8) a(36.7) b(259.0)258.3

Net cash provided by (used in)financing activities

Increase(Decrease)62.5

a : Net proceeds by ITOCHU Corporation +179.9
Net repayments by subsidiaries transferred to Intra-group Loan System -54.4
Net repayments by natural resources development-related subsidiaries -11.6
b : Net proceeds by ITOCHU Corporation +82.3
Net repayments by financing / realty subsidiaries -18.5
Net repayments by natural resources development-related subsidiaries -14.2

Increase(Decrease)(581.8)a : Net decrease by ITOCHU Corporation -287.5
b : Net increase by ITOCHU Corporation +258.1

Increase(Decrease)

1.9

a : Dividends paid -24.5, dividends paid to noncontrolling stockholders -7.2
b : Dividends paid -31.6, dividends paid to noncontrolling stockholders -7.1

(517.3)− 30 −

-Unaudited(6) Assumption for Going Concern

N/A(7) Basis of the Consolidated Financial Statementsi) Consolidated Subsidiaries and Equity-Method Associated Companies[Major Group Companies]
Consolidated Subsidiaries(Domestic:105 entities)JOI'X CORPORATION, SANKEI CO., LTD, ITOCHU CONSTRUCTION MACHINERY CO., LTD,
ITOCHU Techno-Solutions Corporation, Excite Japan Co., Ltd., ITC NETWORKS CORPORATION,
NANO Media Inc., SPACE SHOWER NETWORKS INC., ITOCHU Sanki Corporation, ITOCHU Metals Corporation,
ITOCHU Petroleum Japan Ltd., ITOCHU ENEX CO., LTD., ITOCHU Kenzai Corp., ITOCHU Pulp & Paper Corp.,
ITOCHU CHEMICAL FRONTIER Corporation, ITOCHU PLASTICS INC., C.I.Kasei Co., Ltd,
ITOCHU SHOKUHIN Co., Ltd., NIPPON ACCESS, INC., ITOCHU Finance Corporation, FX PRIME Corporation,
ITOCHU LOGISTICS CORP., ITOCHU Property Development, Ltd., Century Medical, Inc.,(Overseas:152 entities)

ITOCHU Textile Prominent (ASIA) LTD., ITOCHU TEXTILE (CHINA) CO., Ltd., LTD,MCL Group Limited [U.K.], ITOCHU Automobile America Inc., ITOCHU Minerals & Energy of Australia Pty Ltd,
ITOCHU Oil Exploration (Azerbaijan) Inc.

(Note) Consolidated subsidiaries listed on the stock exchange markets in Japan
TSE 1st Section : ITOCHU Techno-Solutions Corporation, ITC NETWORKS CORPORATION ,ITOCHU ENEX CO., LTD., ITOCHU SHOKUHIN Co., Ltd.
JASDAQ : Excite Japan Co., Ltd., SPACE SHOWER NETWORKS INC., FX PRIME Corporation
Mothers: NANO Media Inc.

Equity-Method Associated Companies(Domestic: 65 entities)

Century Tokyo Leasing Corporation, JAMCO Corporation, SUNCALL CORPORATION,
Marubeni-Itochu Steel Inc., Brazil Japan Iron Ore Corporation, DAIKEN CORPORATION, TAKIRON Co., Ltd.,
Yoshinoya Holdings Co., Ltd., Japan Foods Co., Ltd., Fuji Oil Co., Ltd., FamilyMart Co., Ltd., Prima Meat Packers, Ltd.,
Orient Corporation, eGuarantee, Inc.

(Overseas: 91 entities)

Chemoil Energy Limited [Hong Kong],(Note1) As of April 1, 2010, ITOCHU Sanki Corporation and ITOCHU MECHATRONICS CORPORATION were merged to be newly named as
ITOCHU MACHINE-TECHNOS CORPORATION.
(Note2) C.I.Kasei Co., Ltd. have been acquired since this first quarter.
(Note3) i-LOGISTICS CORP. have been acquired since this first quarter. i-LOGISTICS CORP. changed its corporate name to ITOCHU LOGISTICS CORP.
effective January 1, 2010.
* Investment entities which are to be considered as part of parent company substantially (151 entities as of the end of March, 2010) are excluded fromthe list above.

ii) Accounting Policies

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.
The summary of differences between the accounting policies adopted in the consolidated financial statements and accounting practice generally acceptedin Japan is as follows:a) Evaluation of investments
For evaluation of investments, ASC (Accounting Standards Codification) Topic320 "Investments-Debt and Equity Securities" (the pre-codification
standards SFAS (Statement of Financial Accounting Standards) No.115 "Accounting for Certain Investments in Debt and Equity Securities" andSFAS No.115-1 and 124-1 "The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments") is applied.
b) Share-to-share exchange without cash payment for cost-method equity securities
Exchange gains/losses on newly acquired cost-method equity securities by share-to-share transfer without cash payment are recognized at the timeof the exchange according to ASC Topic 325 "Investments-Other" (the pre-codification standard EITF(Emerging Issues Task Force) No.91-5"Nonmonetary Exchange of Cost-Method Investments" ).
c) Value reduction of fixed assets for Japanese tax purposes
The whole balance is reversed for preparation of the consolidated financial statements.

− 31 −

-Unauditedd) Post retirement benefit and pension plans
Costs of the employees' retirement and severance benefits are recognized based on the actuarial computation according to ASC Topic715 "Retirement
Benefits" (the pre-codification standards SFAS No. 87 "Employers' Accounting for Pensions" and SFAS No.88 "Employers' Accounting for Settlements
and Curtailments of Defined Benefit Pension Plans and for Termination Benefits").
In addition, according to ASC Topic 715 (the pre-codification standards SFAS No.158 "Employers' Accounting for Defined Benefit Pension and Other
Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R)" ), the situation of the defined benefit pension plans (that is,difference between the fair value of the plan assets and the amount of the projected benefit obligations) as of the end of the period are recognized in the
consolidated balance sheets, and net actuarial gain/loss (net of tax) and prior service cost (net of tax) are recorded in Accumulated other comprehensive
income (loss).
e) Costs for issuance of new shares
Costs for issuance of new shares are recognized as subtraction item from Capital surplus.
f) Deferred income on installment sales
The whole income on installment sales is recognized at the time of sales.
g) Recognition and measurement of noncontrolling interest at obtaining subsidiaries
Noncontrolling interest at the acquisition in acquiree is recognized and measured at its fair value at the acquisition date, for newly business combinationof obtaining control to acquiree in and after the beginning of the fiscal year.
h) Remeasurement of equity interest previously held by acquirer in the acquiree
The acquirer remeasures its previously held equity interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss,
if any, in earnings, for business combinations that acquirer sometimes obtains control of an acquiree in which it held an equity interest immediately
before acquisition date in and after the beginning of the fiscal year.
i) Change in a parent's ownership interest rate in a subsidiary
Change in a parent's ownership interest while the parent retains its controlling financial interest in its subsidiary is no gain or loss recognized inconsolidated net income or comprehensive income, but accounted for as equity transactions in and after the beginning of the fiscal year.
j) Remesuerment of remaining interest after deconsolidation
If a parent deconsolidates a subsidiary in and after the beginning of the fiscal year, a parent accounts for the deconsolidation of a subsidiary byrecognizing a gain or loss in net income attributable to the parent, measured as the difference between the aggregate of the fair value of any
consideration received, the fair value and carrying amount of any retained noncontrolling investment in the former subsidiary at the deconsolidationand the carrying amount of the former subsidiary's assets and liabilities.
k) Goodwill
Goodwill and non-amortized intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment at the reporting unit
level at least on annual basis or circumstances change that is more likely than not that the fair value is below the carrying amount in accordance withASC Topic 350 "Good will and other" (the pre-codification standard SFAS No.142 "Goodwill and Other Intangible Assets" ).
l) Derivative instruments
According to ASC Topic 815 "Derivative and Hedging" (the pre-codification standards SFAS No.133 "Accounting for Derivative Instruments andHedging Activities" and No.138 "Accounting for Certain Derivative Instruments and Certain Hedging Activities-an amendment of FASB Statement
No. 133" ), every derivative instruments is measured and presented at its fair value as of the end of the period in the consolidated balance sheets, andthe changes in fair value from the end of the previous period are recognized as gains/losses of the current period or Accumulated other comprehensive
income (loss) (net of tax), judging existence of the hedging purpose and the type of hedging activities.

− 32 −

-Unaudited(8) Changes of Basis of the Consolidated Financial Statements
New Accounting Pronouncements
FASB Accounting Standards Codification

TM

(ASC)

ITOCHU Corporation and its subsidiaries adopted SFAS168 "The FASB Accounting Standards Codification TM and the Hierarchy of Generally Accepted
Accounting Principles—a replacement of FASB Statement No.162". It defined that the FASB Accounting Standards Codification TM (ASC) , whichbecame effective on July 1, 2009, is the single source of US GAAP. Therefore every authoritative pronouncement already issued in US GAAP was
replaced into ASC. In addition, SFAS168 itself was codified into ASC Topic 105 "Generally Accepted Accounting Principles".
Business Combinations (ASC Topic 805 "pre-codification standard No. SFAS141(R)" )and
Noncontrolling Interests in Consolidated Financial Statements (ASC Topic 810 "pre-codification standard No. SFAS160" )ITOCHU Corporation and its subsidiaries adopted SFAS141(R) and SFAS160 on April 1, 2009, the beginning of the fiscal year ending March 31, 2010.
Before the issuance of those new standards, it had been generally accepted that consolidated financial statements should present the substantial financial
position and result of operations of parent company. However, those standards adopted the other different concept, that is, consolidated financial
statements should reflect the financial position and result of operations of the consolidation group, or organically combined body consisted of parent
company and its subsidiaries, with recognition that the consolidated group is a single economic entity separate from the parent company.

a. Changes of accounting treatments
1) Changes of accounting treatments of a business combination (ASC Topic 805)
Following the above mentioned new concept, the accounting treatments of a business combination are changed. ITOCHU Corporation and its
subsidiaries apply the new treatments for business combination transactions on and after April 1, 2009, therefore change the accounting treatments
into measuring noncontrolling interests at the fair value as of the business combination date as well as assets and liabilities of acquiree, and recognitionof goodwill attributable to noncontrolling interests in addition to that attributable to stockholders of ITOCHU Corporation.
Further, for every business combination transaction at and after the beginning of fiscal year ending March 31, 2010, pre-existing interests held by
the acquirer are remeasured at the fair value as of the business combination date, and difference between fair value and carrying amount pre-existing
interests are recognized as gain or loss, Gain on investments-net.
In addition,for business combinations at and after the beginning of fiscal year ending March 31, 2010 under bargain purchase in acquisition, that is, forthe transactions that the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed exceeds aggregate of theacquisition-date fair value of the acquirer's previously held equity interest in the acquiree, the fair value of any noncontrolling interest in the acquiree
and the consideration transferred, the difference amount between them is recognized as "gain on bargain purchase in acquisition" on Consolidated
Statements of Income.
2) Changes of accounting treatments of changes in a parent's ownership interest in a subsidiary under retaining control in the subsidiary (ASC Topic 810)
ITOCHU Corporation and its subsidiaries apply the new standards mentioned above for every change in their ownership interests in their subsidiaries
under retaining control in them at and after the beginning of fiscal year ending March 31, 2010, therefore revise the accounting treatments into those ascapital transactions without recognizing any gain nor loss, based on a standpoint that such transactions are just reclassification of ownership between
ITOCHU Corporation's stockholders and noncontrolling stockholders, both of which are equity holders of the consolidation group.
3) Changes of accounting treatments in a deconsolidation (ASC Topic 810)
In accordance with new concept mentioned above, accounting treatments of a deconsolidation are revised. ITOCHU Corporation and its subsidiaries
apply the new standards for every deconsolidation at and after the beginning of fiscal year ending March 31, 2010, therefore changes the accounting
treatments into not only recognizing gain or loss on disposal for disposed interests as before but also remeasuring remaining interests at the fair value asof the date of deconsolidation with recognition gain or loss for difference between the fair value and the carrying amount of the remaining interests.
b. Revision of presentation of consolidated financial statements (ASC Topic 810)
In addition, the new standards revise presentation formats for consolidated financial statements and requires to present a reporting entity's financial
position and result of operations including comparative financial statements for the same period of last fiscal year or the end of last fiscal year as below:
1) Consolidated Statements of Income
Following the above mentioned new concept, the definition of "Net income" is adjusted as net income for the consolidation group itself, which includes
net income attributable to noncontrolling interest as well as parent company. Therefore, the quarterly consolidated statements of income format has beenrevised in presenting first "Net income" under the new concept, deducting "Net income attributable to noncontrolling interest" (the previous "Minority
interests") and displaying the remaining amount as "Net income attributable to ITOCHU" (the previous "Net income").

− 33 −

-Unaudited2) Consolidated Balance Sheets
In compliance with the new concept mentioned above, the basic policy for preparing consolidated balance sheets are changed: Equity in consolidatedbalance sheets should be presented that for the consolidation group itself, that is, equity in subsidiaries contributed from, or to be distributed tononcontrolling interests as well as held by parent company. Therefore, regarding the quarterly consolidated balance sheets format, the previous"Minority interests" has been renamed as "Noncontrolling interest" and presented as a component of Equity. (The definition of "stockholders' equity" isunchanged even after adoption of the new standards. That is, "Common stock", "Capital surplus", "Retained earnings", "Accumulated othercomprehensive income (loss)" and "Treasury stock, at cost" displayed as components of "Total ITOCHU's stockholders' equity" present respective
amount attributable to the stockholders of ITOCHU Corporation, while in "Noncontrolling interest" total of subsidiaries' equity amount attributable tononcontrolling interests is presented without disaggregating into each component.
3) Consolidated Statements of Equity and Consolidated Statements of Comprehensive Income
According to the new concept, just as well as Net income in consolidated statements of income, "Comprehensive income" in Consolidated Statements ofEquity and consolidated statements of comprehensive income should be presented as the comprehensive income for the consolidation group. Therefore,
regarding the revised Consolidated Statements of Equity and Consolidated Statements of Comprehensive income-quarterly format, "Comprehensive
income (loss)" shows the entire increase or decrease of each comprehensive income component and then comprehensive income amount attributable tononcontrolling interests is deducted in "Comprehensive income attributable to noncontrolling interest" and the remaining amount is presented in"Comprehensive income (loss) attributable to ITOCHU".
4) Consolidated Statements of Cash Flows
Consolidated statements of cash flows are considered to display cash flow position as consolidation group itself even previously, however in accordancewith the previous manner, "Net income" before adoption of the new standards (that is "Net income attributable to ITOCHU" after adoption of the newstandards) was to be presented in presentation of Cash flows from operating activities, and accordingly reverse of "Minority interests" was to be includedin "Adjustments to reconcile net income". After adoption of the new standards, the first line in presentation of Cash flows from operating activities
should be "Net income" defined in new pronouncements, and accordingly it is no longer necessary to reverse Minority interests (or "Net income
attributable to noncontrolling interest"). Such transactions at and after the beginning of fiscal year ending March 31, 2010, are classified as Cash flows
from financing activities, which were previously included in Cash flows from investing activities.

− 34 −

-Unaudited(9) Operating Segment Information
ITOCHU Corporation and Subsidiaries
Years ended March 31, 2010 and 2009
We, ITOCHU Corporation and its subsidiaries have a diverse palette offunctions and expertise through investments in resources development
operations and also as a strategic partner, as well as wide range of businessactivities such as trading, finance, logistics and coordinating the projects.
By using this diverse palette and global networks, 7 division companies
have been promoting and developing many kinds of business in textile,food and general merchandise as Consumer-related sector, metal
resources, oil and gas as Natural resource / energy-related sector, chemical,
machinery, information technology, finance and real-estate as Other sectors,
besides life care, ecology and new energy as New business sector.

ITOCHU Corporation has introduced a division company system,
and information on operating segments is prepared and presented
according to this system.
This system is regularly used for decisions in operations, including
resource allocations, and evaluations by the management.
As of April 1st, 2009, Aerospace, Electronics & Multimedia Company
was renamed to "ICT, Aerospace & Electronics Company".

Information concerning operations in different operating segments for the years ended March 31, 2010 and 2009 is as follows:
For the year ended March 31, 2010 (April 1, 2009 -March 31, 2010)
Millions of Yen

TextileMachinery

ICT,
Aerospace &Electronics

Energy,Metals &Minerals

Chemicals,
ForestProducts& General
Merchandise

3,272,623¥

Finance,
Realty,Insurance& Logistics
Services

Food

Other,
Adjustments&
Eliminations

Consolidated a¥¥ 10,306,799

Total trading transactions:Unaffiliated customers
and associated companies .........................¥
Transfers between operating segments .....
Total trading transactions ......................

567

1,332

6,353

437

21,055

1,782

15,950(47,476)-

517,375

753,228

614,192

3,273,060

1,816,599

3,034,181

182,871

115,293

10,306,799

Gross trading profit .....................................

102,733

43,257

136,432

141,591

110,073

335,487

35,642

19,151

924,366

Net income attributable to ITOCHU............
[Equity in earnings
of associated companies]............................

22,401

3,692

6,017

65,661

19,27027,808(4,247)(12,449)

128,153[8,019][10,489][2,063][9,186][1,629][13,015][(7,114)][(1,018)][36,269]

Identifiable assets at March 31, 2010...........

417,380

544,958

513,249

1,249,048

727,994

1,130,719

382,135

511,364

5,476,847

516,808¥

751,896¥

607,839¥

1,795,544¥

3,032,399¥

166,921

162,769

For the year ended March 31, 2009 (April 1, 2008 -March 31, 2009)
Millions of Yen

TextileMachinery

ICT,
Aerospace &Electronics

Energy,Metals &Minerals

Chemicals,
ForestProducts& General
Merchandise

3,916,776¥

Finance,
Realty,Insurance& Logistics
Services

Food

Other,
Adjustments&
Eliminations

Consolidated a¥¥ 12,065,109

Total trading transactions:Unaffiliated customers
and associated companies .........................¥
Transfers between operating segments .....
Total trading transactions ......................

618

1,541

3,793

557

19,927460

9(26,905)-590,214

1,371,748

637,559

3,917,333

2,043,942

3,188,823

167,263

148,227

12,065,109

Gross trading profit .....................................

102,626

71,854

138,859

222,263

114,277

335,606

42,042

32,994

1,060,521

Net income attributable to ITOCHU............
[Equity in earnings
of associated companies]............................

22,898(15,457)

8,026

114,695

19,02520,185(1,212)(2,770)165,390[3,602][1,759][307][24,710][2,949][10,073][(2,880)][784][41,304]

Identifiable assets at March 31, 2009...........

360,431639,939

490,159

1,016,596

611,375

1,054,127

381,800

637,665

5,192,092

589,596¥

1,370,207¥

633,766¥

2,024,015¥

3,188,363¥

167,254

175,132

For the year ended March 31, 2010 (April 1, 2009 -March 31, 2010)

TextileMachinery

ICT,
Aerospace &Electronics

Chemicals,
ForestProducts& General
Merchandise

Energy,Metals &MineralsFinance,
Realty,Insurance& Logistics
Services

Food

Millions of
U.S.dollars
Other,
Adjustments&
Eliminations

Consolidated a$$

Total trading transactions:Unaffiliated customers
and associated companies ......................... $Transfers between operating segments .....
Total trading transactions ......................

6

14

68

5

226

20

171

(510)

-

5,561

8,096

6,601

35,17919,52532,612

1,965

1,239

110,778

Gross trading profit .....................................

1,104

465

1,466

1,522

1,183

3,606

383

206

9,935

Net income attributable to ITOCHU............
[Equity in earnings
of associated companies]............................

241

40

64

706

207

299

(46)

(134)

1,377

[86]

[113]

[22]

[99]

[17]

[140]

[(76)][(11)][390]

Identifiable assets at March 31, 2010...........

4,486

5,857

5,517

13,425

7,825

12,153

4,107

5,496

58,866

5,555

$

8,082

$

6,533

$

35,174$

19,299$32,592

$

1,794

1,749

Note :
1. "Equity in earnings of associated companies" is included in Net income attributable to ITOCHU.
2. "Total trading transactions" is presented in accordance with Japanese accounting practice.
Total trading transactions consist of sales with respect to transactions in which the companies act as principal and the total amount of transactions in which thecompanies act as agent.
3. In the first quarter of this fiscal year , SFAS160 (codified to ASC Topic 810) was applied. For detail, please refer to"New Accounting Pronouncements" on (8), page 33.

− 35 −

110,778

[Explanation for Operating Segment Information]
Increase

Tradingtransactions
for unaffiliatedcustomers andassociatedcompanies

Apr.-Mar. 2010 Apr.-Mar. 2009 (Decrease)(Unit : billion yen)
Textile

....

516.8

589.6

Machinery

....

751.9

1,370.2

ICT, Aerospace& Electronics

....

607.8

633.8

Energy, Metals & Minerals ....

3,272.6

3,916.8

Chemicals, Forest Products....
& General Merchandise

1,795.5

2,024.0

Food

....

3,032.4

3,188.4

Finance, Realty, Insurance....
& Logistics Services

166.9

167.3

Other, Adjustments& Eliminations

162.8

175.1

10,306.8

12,065.1

....

Total

Main reasons for changes

Decrease due to market slowdown in textile materials, fabrics and apparels despite increase from theacquisitions of SANKEI CO., LTD. and JAVA HOLDINGS CO., LTD.
Decrease due to reduced transactions in automobile and construction machinery business as well as the absence(618.3) .....
of multiple deliveries of newly completed ships in the previous fiscal year
Decrease due to overall low performance in aviation, Information and Communication Technology-related(25.9) .....
businesses
Significant decrease due to price falls on annual average in metal resources, oil and gas despite increase from
(644.2) .....
the acquisition of ITOCHU ENEX CO., LTD.
Decrease due to price falls on annual average in chemicals and slowdown in housing market in Japan and the(228.5) .....
U.S. despite increase from the acquisition of C.I.Kasei Co., Ltd.
Decrease due to price falls in food resources such as feed grains, oils and fats especially in the first half of this(156.0) .....
fiscal year
Almost the same level due to increase from the acquisition of ITOCHU LOGISTICS CORP. offset by decrease(0.3) .....
in finance-related business(72.8) .....

(12.4) .....

Decrease due to price falls in equipment material transactions in North America, low performance resulting
from demand shrink, and effect of yen's appreciation, despite increase in LINE-related business(1,758.3)
Increase

Gross
trading profit

Apr.-Mar. 2010 Apr.-Mar. 2009 (Decrease)(Unit : billion yen)
Textile

....

102.7

102.6

Machinery

....

43.3

71.9

ICT, Aerospace& Electronics

....

136.4

138.9

Energy, Metals & Minerals ....

141.6

222.3

Chemicals, Forest Products....
& General Merchandise

110.1

114.3

Food

335.5

335.6

35.6

42.0

....

Finance, Realty, Insurance....
& Logistics Services
Other, Adjustments....
& Eliminations
Total

Net income
attributable to
ITOCHU

33.0
1,060.5

Almost the same level due to the acquisitions of SANKEI CO., LTD. and JAVA HOLDINGS CO., LTD. despite
decrease due to market slowdown in textile materials, fabrics and apparels
Decrease due to reduced transactions in automobile and construction machinery business and absence of ship
(28.6) .....
trade in the previous fiscal year(2.4) ..... Decrease due to overall low performance in Information and Communication Technology-related business
Significant decrease due to price falls on annual average in metal resources, oil and gas despite increase fromthe acquisition of ITOCHU ENEX CO., LTD.
Decrease due to slowdown in housing market in Japan and the U.S., and sale of a subsidiary in the U.S. despite(4.2) .....
increase from the acquisition of C.I. Kasei Co., Ltd.
Almost the same level due to profitability improved in food resources such as feed grains, oils and fats, offset by(0.1) .....
decrease in a food distribution subsidiary
Decrease in finance-related business and impairment loss of inventory in real-estate for sale despite increase(6.4) .....
from the acquisition of ITOCHU LOGISTICS CORP.
Decrease due to price falls in equipment material transactions in North America, low performance resulting.....
(13.8)
from demand shrink, and effect of yen's appreciation, despite increase in LINEs-related business(80.7) .....

(136.2)
Increase

Apr.-Mar. 2010 Apr-Mar 2009 (Decrease)(Unit : billion yen)

Main reasons for changes

Decrease in gross trading profit except the acquisitions of SANKEI CO., LTD. and JAVA HOLDINGS CO.,(0.5) ..... LTD. and absence of gain on sales of investments in the previous fiscal year, despite gain on bargain purchasein acquisition of Leilian Co., LTD as well as addition of a new associated company
Increase due to improved equity in earnings of associated companies, and the absence of provision for doubtful
19.1 .....
receivables and impairment loss on investments in the previous fiscal year
Decrease due to impairment loss on investments and decreased gross trading profit despite increase in equity in
.....
(2.0)
earnings of associated companies
Decrease in gross trading profit and decreased equity in earnings of associated companies despite the absence of(49.0) .....
the loss from Entrada Oil/Natural Gas Field Development Project in the previous fiscal year

Textile

....

22.4

22.9

Machinery

....

3.7

(15.5)

ICT, Aerospace& Electronics

....

6.0

8.0

Energy, Metals & Minerals ....

65.7

114.7

Chemicals, Forest Products....
& General Merchandise

19.3

19.0

Increase due to net gain on the acquisition of C.I.Kasei Co., Ltd., and absence of impairment loss on and
0.2 ..... disposal of fixed assets in the previous fiscal year despite decreased gross trading profit and worsened equity inearnings of associated companies

Food

....

27.8

20.2

7.6 .....

Finance, Realty, Insurance....
& Logistics Services

(4.2)

(1.2)

Decrease due to increased impairment loss on investments in finance-related associated company as a result of(3.0) ..... revaluation of their fair values and less equity in earnings and absence of profit from transfer of the business inoverseas despite net gain on the acquisition of ITOCHU LOGISTICS CORP.

Other, Adjustments& Eliminations(12.4)(2.8)(9.7) .....

128.2

165.4

(37.2)

Mar. 2010

Mar. 2009

Increase(Decrease)

....

Total

Identifiable
assets19.2
924.4

Main reasons for changes

0.1 .....

(Unit : billion yen)

Increase due to decreased SG&A in a food distribution subsidiary and improved equity in earnings of associatedcompanies

Decrease in gross trading profit and equity in earnings of associated companies despite decreased local tax
burdenMain reasons for changes

Increase due to new investments and the acquisition of JAVA HOLDINGS CO., LTD and Leilian Co., LTD.
despite decreased trade receivables resulting from sales decline

Textile

....

417.4

360.4

56.9 .....

Machinery

....

545.0

639.9

(95.0) ..... Decrease in trade receivables and inventories in automobile and construction machinery

ICT, Aerospace& Electronics

....

513.2

490.2

23.1 .....

Energy, Metals & Minerals ....

1,249.0

1,016.6

Chemicals, Forest Products....
& General Merchandise

728.0

611.4

1,130.7

1,054.1

382.1

381.8

Food

....

Finance, Realty, Insurance....
& Logistics Services
Other, Adjustments....
& Eliminations
Total

511.4

637.7

5,476.8

5,192.1

Increase in industrial machinery-related business despite decrease in prepayment from delivery of large aircraft
project

Increase in trade receivables and inventories from higher oil price compared with the last fiscal year end,
232.5 ..... additional acquisitions of fixed assets, and appreciation of Australian dollar and Brazilian real to yen comparedwith the last fiscal year end
116.6 .....

Increase due to the acquisition of C.I.Kasei Co., Ltd. and increased trading receivables resulting from market
recovery in chemicals

76.6 ..... Increase in new investments and fixed assets in food distribution sector
0.3 .....

Almost the same level due to the acquisition of ITOCHU LOGISTICS CORP. and increase in condominium
inventory despite decrease in deferred tax asset resulting from sale of subsidiaries(126.3) ..... Decrease in cash and cash equivalents
284.8− 36 −

-UnauditedITOCHU Corporation and Subsidiaries
For the three months ended March 31, 2010 and 2009 (Fourth quarter of fiscal year 2010 and 2009)
Information concerning operations in different operating segments for the three months ended March 31, 2010 is as follows:
For the three months ended March 31, 2010 (January 1, 2010 -March 31, 2010)
Millions of Yen

TextileICT,
Aerospace &Electronics

Machinery

Total trading transactions:Unaffiliated customers
and associated companies ........................... ¥Transfers between operating segments ........
Total trading transactions .........................

139,433¥

225,179¥

194,394

Chemicals,
ForestProducts& General
Merchandise

Energy,Metals &Minerals¥

976,168¥

475,662

Finance,
Realty,Insurance& Logistics
Services

Other,
Adjustments&
Eliminations

Consolidated a

¥

¥

¥

Food

¥

686,899

71,80340,1302,809,668

163

59

1,853

154

5,663

403

4,489

(12,784)-

139,596

225,238

196,247

976,322481,325

687,30276,292

27,3462,809,668

Gross trading profit ........................................

26,333

11,84941,543

46,16629,031

77,986

10,813

4,577

248,298

Net income attributable to ITOCHU...............
[Equity in earnings
of associated companies]..............................

9,226

1,935

5,607

23,240

6,595

1,907

(5,911)

4,939

47,538[1,894][4,426][1,483][2,162][1,844][1,779][(11,646)][168][2,110]Identifiable assets at March 31, 2010.............

417,380

544,958

513,249

1,249,048

727,994

1,130,719

382,135

511,364

5,476,847

For the three months ended March 31, 2009(January 1, 2009-March 31, 2009)
Millions of Yen

TextileICT,
Aerospace &Electronics

Machinery

Total trading transactions:Unaffiliated customers
and associated companies ........................... ¥Transfers between operating segments ........
Total trading transactions .........................

148,337¥

262,630¥

200,484

Chemicals,
ForestProducts& General
Merchandise

Energy,Metals &Minerals¥

670,171¥

387,154

Finance,
Realty,Insurance& Logistics
Services

Other,
Adjustments&
Eliminations

Consolidated a

¥

¥

¥

Food

¥

709,895

44,18735,8742,458,732

164

612

1,027

232

4,477

40

2

(6,554)-

148,501

263,242

201,511

670,403391,631709,935

44,18929,3202,458,732

Gross trading profit ........................................

28,283

5,048

44,84237,86922,434

79,863

8,834

8,804

235,977

Net income attributable to ITOCHU...............
[Equity in earnings
of associated companies]..............................

6,575(12,466)

5,417

12,009803

1,671(5,084)(6,210)

2,715

[282]

[(201)][269][1,635][(681)][(836)][(10,274)][441][(9,365)]

Identifiable assets at March 31, 2009.............

360,431639,939

490,159

1,016,596

611,375

1,054,127

381,800

637,665

5,192,092

For the three months ended March 31, 2010 (January 1, 2010 -March 31, 2010)

TextileICT,
Aerospace &Electronics

Machinery

Total trading transactions:Unaffiliated customers
and associated companies ........................... $Transfers between operating segments ........
Total trading transactions .........................

1,499

$

2,420

$

2,089

Chemicals,
ForestProducts& General
Merchandise

Energy,Metals &Minerals$

10,492$

5,112

Finance,
Realty,Insurance& Logistics
Services

Food

$

7,383

$

772

Millions of
U.S.dollars

Other,
Adjustments&
Eliminations

Consolidated a

$

$

431

30,198

1

1

20

2

61

4

48

(137)

-

1,500

2,421

2,109

10,494

5,173

7,387

820

294

30,198Gross trading profit ........................................

283

128

447

496

312

838

116

49

2,669

Net income attributable to ITOCHU...............
[Equity in earnings
of associated companies]..............................

99

21

60

250

71

21

(64)

53

511

[20]

[48]

[16]

[23]

[20]

[19]

[(125)][2][23]

Identifiable assets at March 31, 2010.............

4,486

5,857

5,517

13,425

7,825

12,153

4,107

5,496

58,866Note :
1. "Equity in earnings of associated companies" is included in Net income attributable to ITOCHU.
2. "Total trading transactions" is presented in accordance with Japanese accounting practice.
Total trading transactions consist of sales with respect to transactions in which the companies act as principal and the total amount of transactions in which thecompanies act as agent.
3. In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied.
For detail, please refer to "New Accounting Pronouncements" on (8), page 33.

− 37 −

[Explanation for Operating Segment Information]
Increase

Tradingtransactions
for unaffiliatedcustomers andassociatedcompanies

Jan.-Mar. 2010 Jan.-Mar. 2009 (Decrease)(Unit : billion yen)

Main reasons for changes

Textile

....

139.4

148.3

(8.9) .....

Decrease due to market slowdown in textile materials, fabrics and apparels despite increase from the acquisitionsof JAVA HOLDINGS CO., LTD.

Machinery

....

225.2

262.6

(37.5) .....

Decrease due to absence of multiple deliveries of newly built ships and plants in the same period of the previous
fiscal year

ICT, Aerospace& Electronics

....

194.4

200.5

(6.1) .....

Decrease due to overall low performance in aviation, Information and Communication Technology-related
businesses

Energy, Metals & Minerals ....

976.2

670.2

306.0 ..... Increase due to price upturns in oil and gas

Chemicals, Forest Products....
& General Merchandise

475.7

387.2

88.5 ..... Increase due to market recovery in chemicals and the acquisition of C.I.Kasei Co., Ltd.

Food

....

686.9

709.9

(23.0) ..... Decrease in transactions in distribution sector resulting from slowdown in domestic consumption

Finance, Realty, Insurance....
& Logistics Services

71.8

44.2

Increase due to the acquisition of ITOCHU LOGISTICS CORP. in addition to the sale of investment office27.6 ..... properties and warehouses, and the gradual recovery of condominium sales compared with the same period of theprevious fiscal year

Other, Adjustments& Eliminations

40.1

35.9

4.3 .....

2,809.7

2,458.7

....

Total

Increase in LINEs-related business despite price falls in equipment material transactions in North America, low
performance resulting from demand shrink, and effect of yen's appreciation

350.9

Increase

Gross
trading profit

Jan.-Mar. 2010 Jan.-Mar. 2009 (Decrease)(Unit : billion yen)
....

26.3

28.3

(2.0) .....

Decrease due to market slowdown in textile materials, fabrics and apparels despite increase from the acquisitionof JAVA HOLDINGS CO., LTD.

Machinery

....

11.8

5.0

6.8 .....

Increase due to absence of inventory write-down resulting from sluggish automobile market in the same period of
the previous fiscal year

ICT, Aerospace& Electronics

....

41.5

44.8

(3.3) ..... Decrease due to low performance in domestic IT and mobile phone businesses

Energy, Metals & Minerals ....

46.2

37.9

8.3 ..... Increase in sales volume in coal and price upturns in oil and gas

Chemicals, Forest Products....
& General Merchandise

29.0

22.4

6.6 ..... Increase due to the acquisition of C.I.Kasei Co., Ltd. in addition to market recovery in chemicals

Food

....

78.0

79.9

(1.9) ..... Decrease in a food distribution subsidiary

Finance, Realty, Insurance....
& Logistics Services

10.8

8.8

Increase due to the acquisition of ITOCHU LOGISTICS CORP. in addition to the sale of investment office
2.0 ..... properties and warehouses, and the gradual recovery of condominium sales compared with the same period of theprevious fiscal year

Other, Adjustments& Eliminations

4.6

8.8

(4.2) .....

248.3

236.0

....

Total

Net income
attributable to
ITOCHU

Main reasons for changes

TextileDecrease due to price falls in equipment material transactions in North America, low performance resulting fromdemand shrink, and effect of yen's appreciation, despite increase in LINEs-related business

12.3

Increase
Jan.-Mar. 2010 Jan.-Mar. 2009 (Decrease)(Unit : billion yen)

Increase due to addition of a new associated company as well as gain on bargain purchase in the acquisition of
Leilian Co., LTD .

....

9.2

6.6

Machinery

....

1.9

(12.5)

ICT, Aerospace& Electronics

....

5.6

5.4

0.2 .....

Almost the same level due to improved gain on sales of investments and marketable securities and increased
equity in earnings of associated companies despite decrease in gross trading profit

Energy, Metals & Minerals ....

23.2

12.0

11.2 .....

Increase in gross trading profit and dividends received despite worsening from impairment loss on oil and gas
assets in Energy

Chemicals, Forest Products....
& General Merchandise

6.6

0.8

5.8 ..... Increase in gross trading profit and equity in earnings of associated companies

Food

....

1.9

1.7

0.2 .....

Increase due to decreased SG&A in a food distribution subsidiary and improved equity in earnings of associatedcompanies despite loss from business withdrawal and impairment loss on marketable securities

Finance, Realty, Insurance....
& Logistics Services

(5.9)

(5.1)

(0.8) .....

Decrease due to less equity in earnings in finance-related business and increased impairment loss on investments
despite improved gross trading profit

Other, Adjustments& Eliminations

4.9

(6.2)

11.1 .....

Increase due to improved interest expenses, gain on sales of investments and marketable securities, local tax andforeign tax credit despite decrease in gross trading profit

47.5

2.7

44.8

Total

....

2.7 .....

Main reasons for changes

Textile14.4 ..... Increase in gross trading profit and improved equity in earnings of associated companies− 38 −

(10) Per share Information
The following is the information on the ITOCHU stockholders' equity per share and net income attributable
to ITOCHU per share for the years ended March 31, 2010 and 2009.
(Unit:Yen)
2010

2009

ITOCHU stockholders' equity per share

694.98537.43

Basic net income attributable to ITOCHU per share

81.09

104.64

Diluted net income attributable to ITOCHU per share

80.91

103.94The base data to compute the basic and diluted net income attributable to ITOCHU per share computations forthe years ended March 31, 2010 and 2009 are as follows:(Numerator)(Unit:Millions of yen)
2010

Net income attributable to ITOCHU
Effect of dilutive securities:
Convertible preferred stock
Diluted net income attributable to ITOCHU

2009

128,153

165,390(284)(1,106)

127,869

164,284(Denominator)

Average number of common shares outstanding(11) Material subsequent events
No material subsequent events have occurred.

− 39 −

2010

2009

1,580,448,671

1,580,579,472

5. Financial Highlights[Consolidated](Unit: Billion Yen)
2006

Total trading transactions

2007

2008

2009

2010

10,456.7

11,556.8

11,729.1

12,065.1

10,306.8

Gross trading profit

713.5

907.5

994.5

1,060.5

924.4

Income before income taxes and equity inearnings of associated companies

215.3

298.2

280.5

208.3

155.0

Net income attributable to ITOCHU

144.2

175.9

217.3

165.4

128.2

Mar. 2006

Mar. 2007

Mar. 2008

Mar. 2009

Mar. 2010

Total assets

4,809.8

5,288.6

5,274.2

5,192.1

5,476.8

Interest-bearing debt

2,226.5

2,165.6

2,104.4

2,389.3

2,209.3(Cash and cash equivalents, Time deposits)(502.2)(534.7)(449.9)(632.6)(483.2)

Net interest-bearing debt

1,724.3

1,630.9

1,654.5

1,756.8

1,726.1

ITOCHU stockholders' equity

724.4

892.6

973.5

849.4

1,098.4

ITOCHU stockholders' equity per share (Yen)457.93564.48615.89537.43694.98R O A (Return on assets)

3.1%

3.5%

4.1%

3.2%

2.4%

R O E (Return on equity)

23.4%

21.8%

23.3%

18.1%

13.2%

2.4

1.8

1.7

2.1

1.6

Net debt-to-equity ratio (times)(*)(*)Net debt-to-equity ratio: Net interest-bearing debt / ITOCHU stockholders' equity[Stock price information](Unit: Yen)
2006

Stock price

2007

2008

2009

2010

(Highest)

1,056

1,223

1,591

1,337

821

(Lowest)

484

837

804

380

486

(Closing)

1,011

1,168

984

478

819

(Reference) Nikkei Stock Average index(**)

17,05917,287

12,525

8,109

11,089(**) Nikkei Stock Average index: Year-end price of each fiscal year

− 40 −

[Quarterly Information on Consolidated Operating Results]
Consolidated Statements of Income

Revenue(Unit: billion yen)

Fiscal Year 2009 ended March 31, 2009
1Q
2Q
3Q
4Q
Total
728.9
767.9
1,033.2
889.2
3,419.1

Fiscal Year 2010 ended March 31, 2010
1Q
2Q
3Q
4Q
Total
767.2
883.8
862.9
902.7
3,416.6

Gross trading profit

247.7

294.4

282.5

236.0

1,060.5

206.3

233.7

236.1

248.3

924.4

Selling, general and administrative expenses(178.9)(186.5)(204.7)(198.0)(768.1)(189.4)(192.6)(196.1)(191.8)(769.9)Provision for doubtful receivables(0.7)(11.7)

(0.1)

(4.2)

(16.7)

(3.9)

(0.5)

(0.6)

(2.1)

(7.0)

Interest income

4.4

3.9

4.2

3.6

16.3

2.5

2.7

2.5

2.2

9.9

Interest expense(11.8)(11.1)(11.8)(11.0)(45.7)

(9.0)

(9.4)

(8.2)

(8.7)

(35.2)

Dividends received

10.4

7.5

9.3

7.9

35.0

5.9

4.4

4.0

14.5

28.9

Gain (loss) on investments-net

5.9

(0.9)

(18.6)(9.5)(23.1)

2.8

2.4

(0.7)

(8.9)

(4.5)

Gain (loss) on property and equipment-net

1.1

(1.9)

(34.3)(10.3)(45.4)

2.3

(0.4)

(1.1)

(9.4)

(8.5)

Gain on bargain purchase in acquisition

-

-

-

-

-

9.1

-

-

4.9

14.0

(2.2)

(0.3)

(7.1)

5.1

(4.5)

1.6

1

(2.5)

2.9

3.0

75.9

93.4

19.4

19.6

208.3

28.4

41.3

33.4

52.0

155.0

(31.3)(30.2)

(8.8)

(2.5)

(72.8)(15.9)(15.3)(18.0)(2.4)(51.6)

44.6

63.2

10.6

17.1

135.5

12.5

26.0

15.4

49.6

103.4

Equity in earnings (losses) of
associated companies

18.9

16.0

15.7

(9.4)

41.3

9.4

11.4

13.4

2.1

36.3

Net income

63.5

79.2

26.3

7.8

176.8

21.9

37.3

28.8

51.7

139.7

Net income attributable tothe noncontrolling interest

(1.0)

(2.6)

(2.8)

(5.1)

(11.4)

(1.4)

(2.4)

(3.5)

(4.2)

(11.5)Net income attributable to ITOCHU

62.5

76.7

23.6

2.7

165.4

20.4

34.9

25.3

47.5

128.2

[Adjusted Profit][90.7][124.2][95.2][29.2][339.3][25.8][50.2][51.6][66.7][194.3]

Other-net
Income before income taxes and equity
in earnings (losses) of associated companies
Income taxes
Income before equity in earnings (losses) of
associated companies

Segment Information(Unit: billion yen)

Fiscal Year 2009 ended March 31, 2009
1Q

2Q

3Q

4Q

Fiscal Year 2010 ended March 31, 2010
Total

1Q

2Q

3Q

4Q

Total

TextileGross trading profit
Net income attributable to ITOCHU
Machinery
Gross trading profit
Net income attributable to ITOCHU
ICT, Aerospace & Electronics
Gross trading profit
Net income attributable to ITOCHU
Energy, Metals & Minerals
Gross trading profit
Net income attributable to ITOCHU
Metals & Minerals
Gross trading profit
Net income attributable to ITOCHU
EnergyGross trading profit
Net income attributable to ITOCHU

21.8
9.8

25.1
3.4

27.4
3.1

28.3
6.6

102.6
22.9

20.4
0.8

25.2
6.3

30.8
6.1

26.3
9.2

102.7
22.4

20.4
0.8

24.9
2.8

21.5
(6.7)

5.0
(12.5)

71.9(15.5)

11.5
(0.4)

12.5
4.4

7.5
(2.3)

11.8
1.9

43.3
3.7

28.2
0.9

32.8
1.0

33.0
0.7

44.8
5.4

138.9
8.0

28.7
(0.6)

33.0
1.8

33.2
(0.8)

41.5
5.6

136.4
6.0

43.2
32.3

68.2
54.1

72.9
16.3

37.9
12.0

222.3
114.7

25.1
5.6

32.4
20.5

37.8
16.3

46.2
23.2

141.6
65.7

23.4
19.4

53.9
43.6

22.3
17.1

11.1
3.7

110.7
83.8

9.9
5.9

11.9
10.8

14.5
10.8

18.7
15.4

55.0
42.9

19.9
12.9

14.3
10.6

50.6
(0.9)

26.8
8.3

111.6
30.9

15.2
(0.3)

20.5
9.7

23.4
5.5

27.5
7.9

86.6
22.8

29.7
5.2

35.2
8.0

26.9
5.0

22.4
0.8

114.3
19.0

23.6
2.2

28.3
5.9

29.2
4.5

29.0
6.6

110.1
19.3

16.3
1.6

20.8
4.3

16.7
5.1

12.2
1.0

66.0
12.0

9.9
(0.6)

12.4
1.2

13.9
1.2

14.1
2.9

50.3
4.7

13.5
3.6

14.4
3.7

10.1
(0.1)

10.3
(0.2)

48.3
7.0

13.7
2.8

15.9
4.8

15.3
3.3

14.9
3.6

59.8
14.6

80.6
5.7

89.2
6.8

85.9
6.1

79.9
1.7

335.6
20.2

82.5
13.0

88.8
5.5

86.2
7.4

78.0
1.9

335.5
27.8

Gross trading profit
12.7
9.9
10.7
8.8
42.0
7.9
8.9
8.1
10.8
Net income attributable to ITOCHU
2.3
4.3
(2.8)
(5.1)
(1.2)
2.0
0.3
(0.7)
(5.9)
Finance, Insurance & Logistics Services
Gross trading profit
5.5
6.2
5.4
5.1
22.3
4.7
4.9
4.7
5.0
Net income attributable to ITOCHU
1.2
2.6
(1.7)
(6.6)
(4.4)
2.5
0.9
(0.4)
(8.8)
RealtyGross trading profit
7.2
3.6
5.2
3.8
19.8
3.1
4.0
3.3
5.8
Net income attributable to ITOCHU
1.1
1.7
(1.1)
1.5
3.2
(0.5)
(0.5)
(0.3)
2.9
Other, Adjustments & Eliminations
Gross trading profit
11.0
9.0
4.2
8.8
33.0
6.7
4.7
3.2
4.6
Net income attributable to ITOCHU
5.4
(3.7)
1.7
(6.2)
(2.8)
(2.2)
(9.9)
(5.3)
4.9
Note:
1. As of April 1st, 2009, Aerospace, Electronics & Multimedia Company was renamed to "ICT, Aerospace & Electronics Company".
2. In the first quarter of this fiscal year, SFAS160 (codified ASC Topic 810) was applied. For detail, please refer to "New Accounting Pronouncementson (8), page 33.

35.6
(4.2)

Chemicals, Forest Products & General Merchandise

Gross trading profit
Net income attributable to ITOCHU
Forest Products & General Merchandise
Gross trading profit
Net income attributable to ITOCHU
Chemicals
Gross trading profit
Net income attributable to ITOCHU
Food
Gross trading profit
Net income attributable to ITOCHU
Finance, Realty, Insurance & Logistics Services− 41 −

19.4
(5.8)
16.2
1.6
19.2
(12.4)