October 30, 2009

Consolidated Financial Results for the First Half of Fiscal Year 2010 ending March 31, 2010

Page:

1

: Consolidated Financial Results for the First Half of Fiscal Year 2010 ending March 31, 2010

Qualitative Information & Consolidated Financial Statements3: 1. Qualitative Information on Consolidated Operating Results

6: 2. Qualitative Information on Consolidated Financial Position

7: 3. Outlook for Fiscal Year 2010

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: 5. Performance of Group Companies attributable to ITOCHU

27: 6. Quarterly Information on Consolidated Operating Results

4. Consolidated Financial Statements(1) Consolidated Statements of Income (For the six months ended September 30, 2009 and 2008)(2) Consolidated Statements of Comprehensive Income (For the six months ended September 30, 2009 and 2008)(3) Consolidated Statements of Income (For the three months ended September 30, 2009 and 2008)(4) Consolidated Statements of Comprehensive Income (For the three months ended September 30, 2009 and 2008)(5) Consolidated Balance Sheets (As of September 30, 2009 and March 31, 2009)(6) Consolidated Statements of Cash Flows (For the six months ended September 30, 2009 and 2008)(7) Segment Information (For the six/three months ended September 30, 2009 and 2008)(8) Assumption for Going Concern(9) Information Concerning Dividend Payment(10) Significant Changes in Stockholders' Equity(11) New Accounting Pronouncements

ITOCHU Corporation

- Unaudited October 30, 2009

Consolidated Financial Results for the First Half of Fiscal Year 2010 ending March 31, 2010
[Prepared in conformity with accounting principles generally accepted in the United States of America]
Company name:

ITOCHU Corporation

Stock exchange code:
8001
President and Chief Executive Officer:
General Manager of Corporate Communications Division:
The date of payout of dividend:

URL: http://www.itochu.co.jp/main/ir/index_e.html
Eizo Kobayashi
Isamu Nakayama
Dec 2, 2009 (Planned)

TEL: 81 - 3 - 3497 - 7291

1. Consolidated operating results for the first half of fiscal year 2010 (from April 1, 2009 to September 30, 2009)（%: Changes from the same period of the previous fiscal year)(1) Consolidated operating results (Summary)
Total trading transactions
For the first half ofIncome before income taxes andequity in earnings ofassociated companies

Trading income (＊)

Net income attributable to
ITOCHUmillions of yen％

millions of yen％

millions of yen％

millions of yen％

4,801,9786,431,191(25.3)
12.6

53,669164,275(67.3)
23.9

69,641
169,266(58.9)
17.9

55,336
139,125(60.2)
19.6

Fiscal year 2010
Fiscal year 2009

Net income attributable to Net income attributable to
ITOCHU per share
ITOCHU per share(basic)(diluted)yen

For the first half of

yen

35.01
34.86
Fiscal year 2010
Fiscal year 2009
88.02
87.50
(Reference) Equity in earnings of associated companies (millions of yen)

1st half of FY 2010 : 20,776

1st half of FY 2009 : 34,921(2) Consolidated financial position
Total assets

ITOCHU Stockholders' equity

millions of yen

Stockholders' equity per share％

millions of yen

5,461,715
5,192,092

September 30, 2009
March 31, 2009

Ratio of stockholders' equity
to total assets

18.4
16.4

1,007,213
849,411yen

637.30537.43

2. Dividend distribution
Dividend distribution per share
End ofsecondquarter(Record date)

End offirst quarter

Fiscal year 2009

-

10.50

Fiscal year 2010

-

7.50

yen

End ofthird quarteryen

Fiscal year 2010
(Planned)Year-endyen

Annual

yen

yen

-

8.00

18.50

-

7.50
(Planned)

15.00(Planned)(Note) No changes from the plan of dividend distribution previously announced on April 30, 2009

3. Outlook of consolidated operating results for fiscal year 2010 (from April 1, 2009 to March 31, 2010)
Total trading transactions
millions of yen％

Income before income taxes andequity in earnings ofassociated companies

Trading income
millions of yen％

millions of yen％（%: Changes from the previous fiscal year)
Net income attributable to
ITOCHU per share(basic)millions of yenyen％

Net income attributable to
ITOCHU

Fiscal year 2010
10,500,000 (13.0)
150,000 (45.6)
175,000 (16.0)
130,000 (21.4)
82.25(Note) Outlook of Trading income have been revised from the ones announced on April 30, 2009. For the details, please see the pages 7-8 "Outlook for Fiscal
Year 2010".
(*) "Trading income" = "Gross trading profit" + "Selling, general and administrative expenses" + "Provision for doubtful receivables"− 1−

4. Other information(1) Changes of classification of specified subsidiaries(*) accompanied by changes in the consolidation scopeduring the first half of fiscal year 2010:
N/A(*) Specified subsidiaries: Major subsidiaries selected according to the Japanese Cabinet Office Ordinance(2) Adoption of simplified or specific accounting methods for quarterly financial reporting:N/A(3) Changes of accounting policies or presentation ways in the consolidated financial statements
Yes(a) Changes due to amendment of accounting standards:
N/A(b) Other changes:
Please refer to "New Accounting Pronouncements" on (11), page 22.
(4) Number of common shares issued(a) Number of common shares outstanding: 1st half of FY 2010
（including the number of treasury stock）
1st half of FY 2010(b) Number of treasury stock:(c) Average number of common
1st half of FY 2010
shares outstanding:

1,584,889,504

Fiscal Year 2009

1,584,889,504

4,445,748

Fiscal Year 2009

4,374,899

1,580,479,217

1st half of FY 2009

1,580,634,061[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,financial instruments and financial resources, they may cause actual results to differ materially from those presented in such forwardlooking 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 90.21 yen = 1 U.S. dollar, the exchange rate prevailing on September 30, 2009. 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 the fiscal year SFAS160 was applied. It has been codified to "FASB Accounting Standards Codification™ (ASC)"
Topic 810 (Consolidation). For details, please refer to "New Accounting Pronouncements" on (11), page 22.
6. As announced dated January 28, 2009 in “(Revision) Announcement Regarding Revisions to Financial Statements of Past Fiscal Years”,
the consolidated financial statements for the same period of the previous fiscal years had been restated.
In addition, "Total trading transactions", which is in accordance with Japanese accounting practice, for the same period of the previous fiscal
years had reflected the figures-restatement in an overseas subsidiary operating international trade of crude oil and petroleum products.
7. "ITOCHU" in items of A/C on the consolidated financial statements represents ITOCHU Corporation.

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[Qualitative Information & Consolidated Financial Statements]
1. Qualitative Information on Consolidated Operating Results[The First Half of Fiscal Year 2010 (from April 1, 2009 to September 30, 2009)]<General Economic Situations>
For the six months ended September 30, 2009, there was a gradual recovery of the world economy from its recession phase, becauseof positive effects from huge economic stimulus packages taken in major countries, and spread of actions to stabilize financial markets
as well as results of inventory adjustments after a period of severe destocking. Regarding the crude oil price (based on WTI), it rosefrom 50 U.S. dollars at beginning to temporarily over 70 U.S. dollars in this period. However, the price fluctuated around 70 U.S.
dollars, due to unclear visibility for the world economy outlook. For Japanese economy, it also made a gradual recovery, resulting fromrecovered export level caused by the world economy recovery and the termination of overseas inventory adjustment, and from the
expanded public investments based on the extensive financial policy. Through those economical situations, the Nikkei Stock Average
started from mid 8,000 yen level in April, then marked over 10,000 yen in the end of June. After that, it temporarily dropped to around
9,000 yen with the negative forecast about export companies’ less profitability against yen’s appreciation, however, through this six
months, the trend about the Nikkei Stock Average hovered around 10,000 yen level with expectations of Japanese economy recovery.
In foreign exchange markets, yen got more appreciated so as the exchange rate temporarily marked under 90 yen/USD at the period
end, due to the upturned Japanese current-account surplus from the bottom, the growing concerns about the budget deficit in the UnitedStates of America, and decreased inter-currency interest spread.
<Consolidated Operating Results>
Revenue for the six months ended September 30, 2009, increased by 10.3% or 154.3 billion yen to 1,651.1 billion yen (18,303
million U.S. dollars) compared with the same period of the previous fiscal year, mainly due to increase brought by an acquisition of
ITOCHU ENEX CO., LTD. despite the price falls in metal resources and energies, and sales volume decrease of iron ore in Energy,
Metals & Minerals; in Machinery there was some decrease due to worse market conditions in automobiles and demand shrink inconstruction machinery; and in Chemicals, Forest Products & General Merchandise there was also some decrease due to price falls inchemicals continuously since last autumn and slowdown in housing market in Japan and the U.S.
Gross trading profit decreased by 18.8% or 102.1 billion yen to 440.0 billion yen (4,878 million U.S. dollars) compared with thesame period of the previous fiscal year, mainly due to price falls in metal resources and energies, and sales volume decrease of iron ore,
despite some increase from an acquisition of ITOCHU ENEX CO., LTD. in Energy, Metals & Minerals; reduced transactions ofautomobiles and construction machinery in Machinery; and due to price falls in chemicals since last autumn and slowdown in housing
market in Japan and the U.S. in Chemicals, Forest Products & General Merchandise.
Selling, general and administrative expenses increased by 4.5% or 16.5 billion yen to 382.0 billion yen (4,235 million U.S.
dollars) compared with the same period of the previous fiscal year, mainly due to low performance of pension asset management andincrease in pension cost resulting from decrease in pension assets, in addition to the increase as the results of acquisitions of several
companies including ITOCHU ENEX CO., LTD.
Provision for doubtful receivables decreased by 8.0 billion yen to 4.3 billion yen (48 million U.S. dollars) compared with the same
period of the previous fiscal year, due to the absence of the provision for doubtful receivables recorded for Machinery-related
customers in Mongolia in the same period of the previous fiscal year despite other provision for doubtful receivables in the current
period.
Net interest expenses improved by 9.1% or 1.3 billion yen to expenses of 13.2 billion yen (146 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. dollar, Dividends
received decreased by 41.9% or 7.5 billion yen to 10.4 billion yen (115 million U.S. dollars) compared with the same period of theprevious fiscal year, mainly due to decrease in dividends from LNG-related investments. Therefore, Net financial income (expenses),or total of Net interest expenses and Dividends received, worsened by 6.2 billion yen to expenses of 2.8 billion yen (31 million U.S.
dollars).

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Concerning the other profits and losses, compared with the same period of the previous fiscal year, Gain on investments-net
increased by 0.2 billion yen to gain of 5.2 billion yen (57 million U.S. dollars) due to decrease in devaluation loss and loss on disposalof group companies, despite decrease in gain on sales of investments. Please note that the devaluation loss includes the remeasurement
loss (3.5 billion yen) arising from obtaining control of C.I.Kasei Co., Ltd. and i-LOGISTICS CORP. Gain on property andequipment-net increased by 2.8 billion yen to 2.0 billion yen (22 million U.S. dollars), due to gain on sales of properties in subsidiaries.
Gain on bargain purchase in acquisition(*) recorded 9.1 billion yen (101 million U.S. dollars). This gain was recognized whenobtaining control of C.I.Kasei Co., Ltd. and i-LOGISTICS CORP. Other-net improves by 5.1 billion yen to gain of 2.6 billion yen (28million U.S. dollars), due to improved gain (loss) on foreign currency translation.
As a result, Income before income taxes and equity in earnings of associated companies decreased by 58.9% or 99.6 billion yen
to 69.6 billion yen (772 million U.S. dollars) compared with the same period of the previous fiscal year.
Income taxes decreased (improved) by 49.2% or 30.3 billion yen to 31.2 billion yen (346 million U.S. dollars) compared with thesame period of the previous fiscal year, with the effect of decrease in income before income taxes and equity in earnings of associatedcompanies.
Equity in earnings of associated companies decreased by 40.5% or 14.1 billion yen to 20.8 billion yen (230 million U.S. dollars)compared with the same period of the previous fiscal year, due to decrease in steel products, metal resources, pulp, and finance related
associated companies, despite some increase in associated companies newly purchased in Textile; Machinery; Energy, Metals &Minerals; and Food. Therefore, Net income decreased by 58.5% or 83.5 billion yen to 59.2 billion yen (656 million U.S. dollars)compared with the same 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, 3.9 billion yen (43 million U.S. dollars), decreased by 60.2% or 83.8 billion yen to 55.3 billion yen (613
million U.S. dollars) compared with the same period of the previous fiscal year.
(*) From this first half period, “Gain on bargain purchase in acquisition” is separately indicated. Note that the whole amount presented“Gain on bargain purchase in acquisition” was recognized in the first quarter and was included in “Other-net”.
(Supplemental information)“Total trading transactions” in accordance with Japanese accounting practice for the six months ended September 30, 2009
decreased 25.3% or 1,629.2 billion yen to 4,802.0 billion yen (53,231 million U.S. dollars) mainly due to decrease in Machinery;
Chemicals, and Forest Products & General Merchandise; for the reasons mentioned in Revenue, and decrease in Food resulting fromprice falls in food materials such as feed grains, oils and fats, despite increase from an acquisition of ITOCHU ENEX CO., LTD.

[The Second Quarter of Fiscal Year 2010 (from July 1, 2009 to September 30, 2009)]<General Economic Situations>
For the three months ended September 30, 2009, the world economy gradually recovered, because of not only increased investments
for infrastructure and demand for automobile brought by the result of huge stimulus measures in major countries, but also improved
funding environment due to stabilized financial markets. Regarding the crude oil price (based on WTI), its price fluctuated around 70
U.S. dollars, due to unclear visibility for the world economy outlook. Viewing Japanese economy, it also recovered even a gradualpace, resulting from recovered export as well as stimulus incentives for consumers to buy durable goods by the packages so-called“ECO POINT” (reward for purchasing some specific energy-efficient home appliances) and “ECO-CAR GENZEI” (tax exemption
for purchasing eco-cars), and enhanced public-sector investments brought by huge fiscal policy. With expectations of Japanese
economy recovery, the Nikkei Stock Average hovered around 10,000 yen level. Yen got more appreciated so as the exchange rate
temporarily marked under 90 yen/USD at the period end, due to the fear of the budget deficit in the United States of America and thedecreased inter-currency interest spread.

− 4−

<Consolidated Operating Results>
Revenue for the three months ended September 30, 2009, increased by 15.1% or 116.0 billion yen to 883.8 billion yen (9,797
million U.S. dollars) compared with the same period of the previous fiscal year, mainly due to increase from an acquisition of
ITOCHU ENEX CO., LTD. despite the price falls in metal resources and energies in Energy, Metals & Minerals; though there wassome decrease in Machinery due to the absence of the effect from multiple deliveries of ships in the same period of the previous fiscal
year, in addition to continuously poor market conditions in automobiles and demand shrink in construction machinery despite theprogress in sales of existing inventory; and in Chemicals, Forest Products & General Merchandise due to price falls in chemicals
continuously since last autumn and slowdown in housing market in Japan and the U.S.
Gross trading profit decreased by 20.6% or 60.7 billion yen to 233.7 billion yen (2,590 million U.S. dollars) compared with thesame period of the previous fiscal year, mainly due to price falls in metal resources and energies in addition to the absence ofretrospective price adjustment associated with the determination of raising iron ore price in the same period of the previous fiscal year
despite some increase from an acquisition of ITOCHU ENEX CO., LTD. in Energy, Metals & Minerals; reduced transactions ofautomobiles and construction machinery in Machinery; and due to price falls in chemicals since last autumn and slowdown in housing
market in Japan and the U.S. in Chemicals, Forest Products & General Merchandise.
Selling, general and administrative expenses increased by 3.3% or 6.1 billion yen to 192.6 billion yen (2,135 million U.S. dollars)compared with the same period of the previous fiscal year, mainly due to low performance of pension asset management in theprevious fiscal year and increase in pension cost resulting from decreased pension assets, in addition to the increase from an acquisitionof several companies including ITOCHU ENEX CO., LTD.
Provision for doubtful receivables decreased by 11.3 billion yen to 0.5 billion yen (5 million U.S. dollars) compared with the same
period of the previous fiscal year, due to the absence of the provision for doubtful receivables recorded for Machinery-related
customers in Mongolia in the same period of the previous fiscal year.
Net interest expenses improved by 7.1% or 0.5 billion yen to expenses of 6.7 billion yen (74 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. dollar, Dividends
received decreased by 40.8% or 3.0 billion yen to 4.4 billion yen (49 million U.S. dollars) compared with the same period of theprevious fiscal year, mainly due to decrease in dividends from LNG-related investments. Therefore, Net financial income (expenses),or total of Net interest expenses and Dividends received, worsened by 2.5 billion yen to expenses of 2.2 billion yen (25 million U.S.
dollars).
Concerning the other profits and losses, compared with the same period of the previous fiscal year, Gain on investments-net
improved by 3.3 billion yen to gain of 2.4 billion yen (27 million U.S. dollars) due to increase in gain on sales of investments. Loss onproperty and equipment-net improved by 1.6 billion yen to a loss of 0.4 billion yen (4 million U.S. dollars), due to the absence of theimpairment loss recorded in a subsidiary in the same period of the previous fiscal year. Other-net improved by 1.2 billion yen to gainof 0.9 billion yen (10 million U.S. dollars), due to improved gain (loss) on foreign currency translation.
As a result, Income before income taxes and equity in earnings of associated companies decreased by 55.8% or 52.1 billion yen
to 41.3 billion yen (458 million U.S. dollars) compared with the same period of the previous fiscal year.
Income taxes decreased (improved) by 49.1% or 14.8 billion yen to 15.3 billion yen (170 million U.S. dollars) compared with thesame period of the previous fiscal year.
Equity in earnings of associated companies decreased by 28.8% or 4.6 billion yen to 11.4 billion yen (126 million U.S. dollars)compared with the same period of the previous fiscal year, due to decrease in steel products, metal resources, pulp, and finance related
associated companies, despite some increase in newly purchased associated companies in Textile; Energy, Metals & Minerals; andFood. Therefore, Net income decreased by 52.9% or 41.9 billion yen to 37.3 billion yen (414 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 the noncontrollinginterest, 2.4 billion yen (27 million U.S. dollars), decreased by 54.5% or 41.7 billion yen to 34.9 billion yen (387 million U.S. dollars)compared with the same period of the previous fiscal year.

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(Supplemental information)“Total trading transactions” in accordance with Japanese accounting practice for the three months ended September 30, 2009
decreased 22.5% or 757.3 billion yen to 2,609.4 billion yen (28,926 million U.S. dollars) mainly due to decrease in Energy, Metals &Minerals resulting from price falls in metal resources and energies, and decrease in Machinery; Chemicals, and Forest Products &General Merchandise; for the reasons mentioned in Revenue, as well as decrease in Food resulting from price falls in food materials
such as feed grains, oils and fats since last autumn, despite increase from an acquisition of ITOCHU ENEX CO., LTD.

2. Qualitative Information on Consolidated Financial Position(1) Consolidated Financial Position
Total assets as of September 30, 2009, increased by 5.2% or 269.6 billion yen compared with March 31, 2009, to 5,461.7 billion
yen (60,544 million U.S. dollars), mainly due to, in Energy, Metals & Minerals, increase in Trade receivables along with higher oil
price and in Net property and equipment with capital expenditure, and increase caused by the appreciations of Australian dollar andBrazilian real; increase in Trade receivables, Inventories, and Net property and equipment resulting from an acquisition of
C.I.Kasei Co., Ltd. in Chemicals, Forest Products & General Merchandise; as well as increase in new investment in Textile and Food.
Interest-bearing debt was 2,388.5 billion yen (26,477 million U.S. dollars), almost the same as on March 31, 2009, and Net
interest-bearing debt (interest-bearing debt after deducting Cash and Cash equivalents and Time deposits) increased by 4.6% or
80.0 billion yen compared with March 31, 2009, to 1,836.7 billion yen (20,361 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 18.6% or 157.8 billion yen compared with March 31, 2009, to 1,007.2
billion yen (11,165 million U.S. dollars), due to decrease by dividend payment, accumulation of Net income attributable to
ITOCHU, improvement in Foreign currency translation adjustments, and improvement in Unrealized holding gains on
securities resulting from recovery of stock market. As a result, Ratio of stockholders’ equity to total assets rose by 2.1 points
compared with March 31, 2009, to 18.4%.
NET DER (Net Debt-to-Stockholders’ Equity Ratio) improved by 0.2 points compared with March 31, 2009, to 1.8 times.
Total equity, or total of ITOCHU stockholders’ equity and Noncontrolling interest, which means the total equity of the entire
Group, increased by 15.6% or 162.1 billion yen compared with March 31, 2009, to 1,199.5 billion yen (13,297 million U.S. dollars).
(2) Consolidated Cash Flows Information
Cash flows from operating activities for the six months ended September 30, 2009, recorded net cash-inflow of 102.7 billion yen(1,138 million U.S. dollars) mainly due to progress in collection of Trade receivables in ICT, Aerospace & Electronics and in Textile.
Cash flows from investing activities recorded net cash-outflow of 134.6 billion yen (1,492 million U.S. dollars) mainly due toinvestments in the consumer-related sector, and additional investments related to acquisitions of C.I.Kasei Co., Ltd. and i-LOGISTICS
CORP.
Cash flows from financing activities recorded net cash-outflow (net repayment) of 56.0 billion yen (621 million U.S. dollars)
mainly due to dividends payment and repayments of debt by the parent company. Consequently, Cash and cash equivalents as of
September 30, 2009, decreased by 81.1 billion yen to 547.7 billion yen (6,072 million U.S. dollars) compared with March 31, 2009.

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3. Outlook for Fiscal Year 2010
Viewing the economic situation of the second half of this fiscal year 2010, the world economy is getting out of its worst period
affected by the financial crisis since last year, and the move toward the recovery is in sight. It seems to turn gradually towardsustainable recovery supported by economic stimulus packages taken by major countries. However, we still need to pay enoughattention to the concerns over the risk that the world economy may sink into a double-dip recession if such situation occurs as
weakening effect of economic stimulus packages, resurgence of financial crisis due to increase of bad debts, or abrupt change in
foreign exchange rates resulting from anxiety for U.S. dollar. Recovery of U.S. economy during this fiscal year seems to bedifficult due to significant drop in housing investment and restricted personal consumption because of the fact that households
have prioritized debt reduction. Economy in China, though export will be dropping due to recession in Europe and the U.S., is
expected to maintain high growth as before since it is estimated that the government economic stimulus package is successful,and the investment in infrastructure and personal consumption is expected to increase. Focusing on Japan, although its economy
had been in downturn due to significant drop in export and restrained capital investments, it has already ceased to fall resulting
from the stimulus package taken by the government and it is expected to turn toward recovery for the next year.
Considering those economic circumstances and ITOCHU's performance of the first half of fiscal year 2010, ITOCHU expects theannual consolidated operating results in this fiscal year, as indicated in the following table.
For your attention, these forecasts are forward-looking statements that are based on management's assumptions and beliefs basedon 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.

Results

Consolidated

1st half of FY2010

4.8

Total trading transactions
Gross trading profit

440.0

Selling, general and administrative
expenses

382.0

Previous Forecast

Revised Forecast
FY2010

trillionyenbillion
yen

10.5
950.0
(

Results(Announced on Apr.30)

FY2010
trillionyenbillionyen

790.0)

10.5
975.0
(

FY2009trillionyenbillionyen

785.0)

trillion12.6 yenbillion1,060.5 yen(

768.1)

Provision for doubtful receivables

(

4.3)

(

10.0)

(

5.0)

(

16.7)

Net interest expenses

(

13.2)

(

27.0)

(

3.5)

(

29.5)

(

73.0)

Dividends received

10.4

27.0

2.5

Other-net

18.8

25.0

0.0

69.6

175.0

175.0

Income before income taxes andequity in earnings of associatedIncome taxes

(

31.2)

Income before equity in earnings
of associated companies
Equity in earnings of associatedcompanies
Net income
Less: Net income attributable to(the noncontrolling interest
Net income attributable to ITOCHU

(

38.4

(

98.0

208.3

85.0)

(

90.0

72.8)
135.5

20.8

47.0

56.0

41.3

59.2

145.0

146.0

176.8

3.9)

Net income per share (basic)

77.0)

35.0

(

15.0)

(

16.0)

(

11.4)

55.3

130.0

130.0

165.4

35.01 yen82.25 yen82.25 yen

104.64 yenbillionbillionbillionbillionTotal assets

5,461.7 yen

5,500.0 yen

5,500.0 yen

5,192.1 yen

Total interest-bearing debt

2,388.5

2,400.02,400.0

2,389.3

Net interest-bearing debt

1,836.7

1,900.0

1,900.0

1,756.8

Total equity

1,199.5

1,200.0

1,150.0

1,037.4

Total ITOCHU stockholders' equity

1,007.2

1,000.0

950.0

849.4

Results
1st half of FY2010

Revised Forecast
FY2010(Note)

Results
FY2009

96.34
52.71

93.00
60.00

90.00
53.00

100.54
98.36(Jan-Jun result)(Jan-Dec forecast)(Jan-Dec forecast)(Jan-Dec result)(Note 2)
(Note 2)128.0070.00(Note 2)
(Note 2)128.0070.00(Note 2)
(Note 2)128.0070.00

90.00
129.00300.00125.00Foreign exchange rate (Yen/US$)
Crude oil (Brent) (US$/BBL)

Previous Forecast
FY2010Iron ore, fine (US$/ton)
Iron ore, lump (US$/ton)
Coking coal (US$/ton)
Thermal coal (US$/ton)(Note 1) 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 (11), page 22.
(Note 2) The sales prices of iron ore produced in joint ventures owned by a subsidiary in Australia are not shown since it is uncertain at present.

Distribution of the current fiscal year's profit
For the interim dividend of the current fiscal year, ITOCHU Corporation has decided to pay 7.5 yen per share.
And at present, for the dividend at the end of the current fiscal year, ITOCHU Corporation intends to pay 7.5 yen (annual total of 15.0 yen)
per share.

− 7−

Major Group Companies' Forecasts of Fiscal Year 2010
ITOCHU's major group companies' forecasts of fiscal year 2010 are as follows.
As for listed group companies which are scheduled to announce their forecasts of fiscal year 2010 on and after October 30, refer to their own announcements.
The following list is to be updated after all major group companies finish announcement of their forecasts of fiscal year 2010 (scheduled around end of November),and is to be uploaded into ITOCHU website accordingly.
【 Major Group Companies'（unlisted companies) forecasts of fiscal year 2010 】(Unit: billion yen)
ITOCHU's shareof Net income

Shares

ITOCHU's shareof Net income[Forecasts]

JOI'X CORPORATION

100.0%

0.2(0.5)

SANKEI COMPANY LIMITED

90.5%

2.0

0.1

(Hong Kong)

100.0%

0.6

0.2(China)100.0%

0.9

0.3

100.0%

0.5

0.1(U.K.)

100.0%

(0.6)

(0.7)

(U.S.A.)

100.0%

(0.3)

(0.3)

ITOCHU Sanki Corporation

100.0%

0.3

0.2

ITOCHU Metals Corporation

100.0%

0.7

0.2

ITOCHU Petroleum Japan Ltd.

100.0%

1.3

0.2

26.6

14.5

Name

[1st half of FY 2010](Note 2)

TextileProminent Apparel Ltd.
ITOCHU TEXTILE (CHINA) CO., Ltd.
ITOCHU CONSTRUCTION MACHINERY CO., LTD.
Machinery

MCL Group Limited
ITOCHU Automobile America Inc.

ICT, Aerospace& Electronics(Note 5)

Energy,Metals& Minerals

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

(0.9)

87.1%

0.0

0.1

ITOCHU Pulp & Paper Corp.

100.0%

0.3

0.2

ITOCHU CHEMICAL FRONTIER Corporation

99.8%

1.5

0.9

ITOCHU PLASTICS INC.

100.0%

2.1

0.8

C.I.Kasei Co., Ltd.

(Note 4)(Note 4)

2.1

1.8

99.1%

(0.9)

(0.1)

97.0%

2.1

1.8

0.6

0.2

(U.S.A.)

100.0%

1.6

0.6(U.K.)

100.0%

0.4(0.3)(Hong Kong)

100.0%

2.0

0.9(China)100.0%

2.7

0.7(Australia)

100.0%

1.0

0.6

ITOCHU Europe PLC.
ITOCHU Hong Kong Ltd.

97.6%

100.0%

Century Medical, Inc.
ITOCHU International Inc.

Overseas

1.4(Note 3)

ITOCHU Kenzai Corp.

Finance, Realty,
ITOCHU Finance Corporation
Insurance& Logistics Services i-LOGISTICS CORP.
Other

4.1

50.0%

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

【Major Group Companies'（listed companies) forecasts of fiscal 2010 】

Machinery

ICT,
Aerospace& Electronics(Note 5)

Energy, Metals& Minerals
Chemicals,
Forest Products& General
Merchandise(Unit: billion yen)

Name

Date of
Forecasts
Announcement

Century Tokyo Leasing Corporation

May.8

ITOCHU Techno-Solutions Corporation

May.13

Shares

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

15.0

20.6%

(Note 6)

12.0

52.6%

Companies'
Forecasts

ITOCHU's shareof Net income[1st half of FY 2010](Note 2)

(Expected)
Date ofAnnouncement(Note 2)

Nov.9

6.3

(Note 2)

Nov.12(Note 2)

Excite Japan Co., Ltd.

May.8

0.1

58.8%

0.1

ITC NETWORKS CORPORATION

May.1

2.4

60.7%

1.5

NANO Media Inc.

Apr.30

0.0

51.3%

0.0

SPACE SHOWER NETWORKS INC.

Apr.30

0.1

50.8%

0.1

Nov.6
0.9

Oct.290.0

Oct.29(Note 2)

Nov.2

JAMCO Corporation

May.8

0.3

33.3%

0.1

(Note 2)

Nov.10SUNCALL CORPORATION

May.12

0.2

25.8%

0.1

(Note 2)

Oct.30ITOCHU ENEX CO., LTD.

Sep.28

4.3

52.3%

2.2

(Note 2)

Oct.30DAIKEN CORPORATION

Oct.14

1.0

20.5%

0.2

(Note 2)

Oct.30TAKIRON Co., Ltd.

May.131.5

27.1%

ITOCHU SHOKUHIN Co., Ltd.

May.11

3.2

50.8%

0.4

Yoshinoya Holdings Co., Ltd.

Oct.8

(1.3)

21.0%

(0.3)

(0.1)

Oct.8

Japan Foods Co., Ltd.

Apr.28

0.5

34.8%

0.2

0.2

Oct.29(Note 7)(Note 2)

Nov.10(Note 2)

Nov.12

Food
Fuji Oil Co., Ltd.

Oct.29

9.0

25.7%

2.3

FamilyMart Co., Ltd.

Oct.1

15.0

31.5%

4.7

Prima Meat Packers, Ltd.

May.15

2.2

39.8%

0.9

0.5

59.2%

CENTURY 21 REAL ESTATE OF JAPAN LTD.
Finance,
FX PRIME Corporation
Realty,Insurance
Orient Corporation& Logistics Services
eGuarantee, Inc.

Apr.24(Note 8)(Note 8)(Note 8)(Note 9)

9.3

32.6%

May.14

0.3

31.7%

Nov.6
3.1

(Note 2)

0.3

55.0%

Oct.13(Note 2)0.1
(Note 2)

(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 [1st half of FY 2010] is the figures after adjusting to U.S. GAAP. As for listed group companies which are scheduled to announce their results on and after
October 30, refer to the updated information to be released through ITOCHU website around end of November.
(Note 3) Please refer to the forecasts to be announced by the company.
(Note 4) C.I.Kasei Co. Ltd. and i-LOGISTICS CORP. became consolidated subsidiaries this 1st quarter. Note that C.I.Kasei Co. Ltd. was delisted from the first section of TSE on June 17, andi-LOGISTICS CORP. was delisted from the second section of TSE on July 10.
(Note 5) As of April 1, 2009, Aerospace, Electronics & Multimedia Company was renamed to ICT, Aerospace & Electronics Company.
(Note 6) There is some profit related to a merger of Century Tokyo Leasing Corporation. 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 7) 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 8) 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 9) 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.

− 8−

Oct.23
Oct.30

0.7
0.1

Oct.8
Nov.6

Oct.29Oct.30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 [Condensed]
ITOCHU Corporation and Subsidiaries
For the six months ended September 30, 2009 and 2008
Millions of
U.S. dollars

Millions of Yen
Apr.-Sep.2009

Apr.-Sep.2008

Apr.-Sep.2009

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

¥ 1,389,037
262,013
1,651,050(1,211,043)
440,007¥ 1,190,136
306,585
1,496,721(954,629)
542,092$ 15,398
2,905
18,303(13,425)
4,878

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

(381,997)(4,341)
5,212(18,388)
10,354
5,158
1,957
9,129
2,550

(365,448)(12,369)
8,367(22,867)
17,830
5,002
(823)
－
(2,518)(4,235)
(48)
58
(204)
115
57
22
101
28

Total other-expenses………………………………………………

(370,366)(372,826)(4,106)

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

69,641

169,266

772

Income taxes…………………………………………………………

(31,199)(61,458)(346)

Income before equity inearnings of associated companies………………………………

38,442

107,808426

Equity in earnings of associated companies…………………………

20,77634,921

230

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

59,218(3,882)¥ 55,336

142,729(3,604)¥ 139,125

656
(43)
$ 613

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 six months ended September 30, 2009 and 2008 were 4,801,978 million yen (53,231 million U.S.dollars)and 6,431,191 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 (11), page 22.
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”.

(2) Consolidated Statements of Comprehensive Income [Condensed]
ITOCHU Corporation and Subsidiaries
For the six months ended September 30, 2009 and 2008
Millions of
U.S. dollars

Millions of Yen
Apr.-Sep.2009

Comprehensive income :Net income……………………………………………………

Apr.-Sep.2008

Apr.-Sep.2009¥ 59,218¥ 142,729$ 656

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)………

84,908
1,927
29,095
1,935
117,865(41,776)
230(33,389)(6,366)(81,301)

941
21
323
22
1,307

Comprehensive income………………………………………

177,083

61,428

1,963(6,464)¥ 170,619(2,591)¥ 58,837(72)$ 1,891

Other comprehensive income (loss) (net of tax):

Comprehensive income attributable tothe noncontrolling interest………………………………
Comprehensive income attributable to ITOCHU………………
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 (11), page 22.

− 9−

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

Revenue

Gross trading profit

Provision for
doubtful receivables

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

Gain (loss) on
property andequipment-net
Gain on bargain
purchase inacquisition

Other-net(Unit : billion yen)

Gain on investments-net(Unit : billion yen)

Gain (loss) on property andequipment-net

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

(Unit : billion yen)

Income taxes
Equity in earnings
of associatedcompanies

Increase(Decrease)

440.0

542.1

(102.1)

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)(382.0)(153.6)(10.0)(228.4)(122.6)(45.3)(10.7)(49.7)(365.4)(140.7)(5.8)(224.7)(124.6)(38.0)(13.0)(49.1)(16.5)(12.9)
(4.2)
(3.7)
2.0
(7.4)
2.3
(0.6)

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)(4.3)(12.4)

8.0

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)

(2.8)

3.3

(6.2)

5.2
(18.4)(13.2)
10.4

8.4(22.9)(14.5)
17.8

(3.2)
4.5
1.3
(7.5)

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)

5.2

5.0

0.2

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)

2.0

(0.8)

2.8

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)(Unit : billion yen)

Other-net

Income taxes

Apr-Sep 2009 Apr-Sep 2008

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

Gain oninvestments-net

154.3(Unit : billion yen)

Net financial income (expense)

9.1

-

9.1

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)

2.6

(2.5)

5.1

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)(31.2)(61.5)

30.3

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)(Unit : billion yen)

Equity in earnings
of associated companies

Increase(Decrease)

1,496.7(Unit : billion yen)

Provision for doubtful receivables
Net financial income(expense)

1,651.1(Unit : billion yen)

Gross trading profit

Selling, general andadministrative
expenses

Apr-Sep 2009 Apr-Sep 2008

20.8

34.9

(14.1)

Reasons for changes
Increase due to the acquisition of several subsidiaries including ITOCHU ENEX CO., LTD.,
despite decrease due to price falls in metal resources and energies, poor market inautomobiles and housing market slowdown in Japan and the U.S.
Decrease due to decrease in revenue in ITOCHU Corporation and existing
subsidiaries : -121.6 [Energy, Metals & Minerals -77.3, Machinery -17.4,
Chemicals, Forest Products & General Merchandise -11.4 ]Increase due to acquisition of subsidiaries : +44.8
Decrease due to deconsolidation of subsidiaries : -6.6
Decrease due to exchange rate fluctuations : -18.7
Refer to "(7) Segment Information" on page 18-19
Decrease in ITOCHU Corporation and existing subsidiaries : +9.4
[Increase in pension cost : -3.2]
Increase due to acquisition of subsidiaries : -43.2[Increase in pension cost : -1.0]
Decrease due to deconsolidation of subsidiaries : +6.2
Decrease due to exchange rate fluctuations : +11.1

Absence of provision for doubtful receivables from customers in Mongolia of Machineryin the same period of the previous fiscal year +10.8
Increase due to allowance for other doubtful receivables -2.8
Decrease in dividends received, improvement of net interest expense
Apr-Sep 2009
Apr-Sep 2008
0.574%
JPY TIBOR 3M, average (Apr-Sep)
0.848%
1.044%
3.018%USD LIBOR 3M, average (Jan-Jun）

Changes(0.274%)(1.974%)

Improvement of net interest expense due to decline in U.S. dollars interest rate
Dividends received from LNG-related investments -7.1 (10.7 → 3.6)

Remeasurement loss for pre-existing interests resulting from obtaining control -3.5 (- → -3.5)
Impairment loss on investments +4.4 (-12.3 → -7.9)
Net gain on sales of investments -3.0 (20.0 → 17.0)
Loss on business disposals and others +2.3 (-2.7 → -0.4)

Net gain on sales of property and equipment +2.0 (0.6 → 2.7)
Impairment loss on property and equipment, and others +0.8 (-1.5 → -0.7)
Gain in the acquisitions of C.I.Kasei Co., Ltd. and i-LOGISTICS CORP.

Improvement of foreign currency exchange losses +3.2 (-4.1 → -0.9)
others +1.9 (1.6 → 3.5)

Century Tokyo Leasing Corporation (Note) [Net profit related to a merger +1.1]
TING HSIN (CAYMAN ISLANDS) HOLDING CORP. +1.1 (-→ 1.1)
Brazil Japan Iron Ore Corporation +1.0 (- → 1.0)
Marubeni-Itochu Steel Inc. -11.0 (10.1 → -0.9)
Equity-method associated companies of ITOCHU Minerals & Energyof Australia Pty Ltd -4.3 (5.0 → 0.7) / Orient Corporation -3.3 (4.5 → 1.3)
Japan Brazil Paper and Pulp Resources Development Co., Ltd. -2.3 (0.9 → -1.4）
Refer to "Performance of Group Companies" on page 26(Note) Refer to the results announced by each corresponding company, as their announcement dates areon and after ITOCHU's announcement date of the First Half of Fiscal Year 2010.

Total tradingtransactions

Adjusted profit(Unit : billion yen)

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

Adjusted profit

Apr-Sep 2009 Apr-Sep 2008

4,802.0
9.2%

Increase(Decrease)

6,431.2
8.4%(1,629.2)
0.7%

Refer to "(7) Segment Information" on page 18-19
Effect of exchange rate fluctuations: Approximately -180.0

Apr-Sep 2009 Apr-Sep 2008

Increase(Decrease)

Adjusted profit (-138.9)= Gross trading profit （-102.1）+ SG&A expenses （-16.5）+ Net financial income (-6.2)+ Equity in earnings of associated companies （-14.1）
The amount ( ) represents changes from the same period of the previous fiscal year

76.0

214.9

(138.9)[Average exchange rate Yen/USD][For March closing companies]111
Apr-Sep 2009 Apr-Sep 2008
96.34
105.11
Apr-Sep 2008 Apr-Sep 2007
105.11119.73

Changes(8.77)
Changes(14.62)− 10 −[For December closing companies] 1111
Jan-Jun 2009 Jan-Jun 2008
94.22
105.69Jan-Jun 2008 Jan-Jun 2007
105.69119.49Changes(11.47)
Changes(13.80)[Average exchange rate Yen/AUD][For March closing companies]111
Apr-Sep 2009 Apr-Sep 2008
73.61
97.98
Apr-Sep 2008 Apr-Sep 2007
97.98
99.46

Changes(24.37)
Changes(1.48)

-Unaudited-(3) Consolidated Statements of Income-Quarterly [Condensed]
ITOCHU Corporation and Subsidiaries
For the three months ended September 30, 2009 and 2008
Millions of
U.S. dollars

Millions of Yen
Jul.-Sep.2009

Jul.-Sep.2008

Jul.-Sep.2009

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

¥ 748,321
135,490883,811(650,137)
233,674¥ 602,632
165,228
767,860(473,449)
294,411$ 8,295
1,502
9,797(7,207)
2,590

Selling, general and administrative expenses…………………………
Provision for doubtful receivables……………………………………
Interest income………………………………………………………
Interest expense………………………………………………………
Dividends received……………………………………………………
Gain (loss) on investments-net………………………………………
Loss on property and equipment-net…………………………………
Other-net………………………………………………………………

(192,636)
(454)
2,697
(9,351)
4,411
2,402
(356)
904

(186,515)(11,712)
3,931(11,091)
7,454
(878)
(1,939)(291)(2,135)
(5)
30
(104)
49
27
(4)
10

Total other-expenses………………………………………………

(192,383)(201,041)(2,132)

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

41,291

93,370458

Income taxes…………………………………………………………

(15,335)(30,152)(170)

Income before equity inearnings of associated companies………………………………

25,956

63,218288

Equity in earnings of associated companies…………………………

11,38615,991

126

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

37,342(2,438)¥ 34,904

79,209(2,558)¥ 76,651

414
(27)
$ 387

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 September 30, 2009 and 2008 were 2,609,441 million yen (28,926million U.S.dollars)and 3,366,765 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 (11), page 22.

(4) Consolidated Statements of Comprehensive income-Quarterly [Condensed]
ITOCHU Corporation and Subsidiaries
For the three months ended September 30, 2009 and 2008
Millions of
U.S. dollars

Millions of Yen
Jul.-Sep.2009

Comprehensive income :Net income……………………………………………………

Jul.-Sep.2008

Jul.-Sep.2009¥ 37,342¥ 79,209$ 414

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)………

21,011
1,272
3,549
1,696
27,528(8,882)
601(46,939)(10,915)(66,135)

233
14
39
19
305

Comprehensive income………………………………………

64,87013,074719(3,204)¥ 61,666(2,241)¥ 10,833

(35)
$ 684

Other comprehensive income (loss) (net of tax):

Comprehensive income attributable tothe noncontrolling interest………………………………
Comprehensive income attributable to ITOCHU………………
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 (11), page 22.

− 11 −

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

Revenue

Gross trading profit

Provision for
doubtful receivables

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

Gain (loss) on investments-net

Total tradingtransactions

Adjusted profit

Jul-Sep 2008 (Decrease)(11.7)
11.3

Jul-Sep 2009
(2.2)

Jul-Sep 2008 (Decrease)
0.3
(2.5)

2.7
(9.4)
(6.7)
4.4

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

Adjusted profit

3.9(11.1)
(7.2)
7.5

(1.2)
1.7
0.5
(3.0)

Decrease in dividends received, improvement of net interest expense
Jul-Sep 2009
Jul-Sep 2008
0.553%
JPY TIBOR 3M, average (Jul-Sep)
0.854%
0.840%USD LIBOR 3M, average (Apr-Jun）
2.752%

Changes(0.301%)(1.912%)

Improvement of net interest expense due to decline in U.S. dollars interest rate
Dividends received from LNG-related investments -2.5 (4.6 → 2.1)

Increase

Jul-Sep 2009
2.4

Jul-Sep 2008 (Decrease)
(0.9)
3.3

Jul-Sep 2009
(0.4)

Jul-Sep 2008 (Decrease)
(1.9)
1.6

Jul-Sep 2009
0.9

Jul-Sep 2008 (Decrease)
(0.3)
1.2

Jul-Sep 2009(15.3)

Jul-Sep 2008 (Decrease)(30.2)
14.8

Jul-Sep 2009
11.4

Jul-Sep 2008 (Decrease)
16.0
(4.6)

Jul-Sep 2009
2,609.4
9.0%

Jul-Sep 2008 (Decrease)
3,366.8(757.3)
8.7%
0.2%

Jul-Sep 2009
50.2

Jul-Sep 2008 (Decrease)
124.2(74.0)

Impairment loss on investments -0.1 (-4.9 → -5.0)
Net gain on sales of investments +2.5 (5.8 → 8.3)
Loss on business disposals and others +0.9 (-1.8 → -0.9)

Increase
Impairment loss on property and equipment +1.0 (-1.9 → -0.9)
Net gain on sales of property and equipment, and others +0.6 (-0.0 → 0.6)

Increase
Improvement of foreign currency exchange gains (losses) +3.5 (-3.5→ 0.0)
Deterioration of others -2.3 (3.2 → 0.9)

Increase

Increase(Unit : billion yen)

(Unit : billion yen)

Absence of provision for doubtful receivables from customers in Mongolia of Machineryin the same period of the previous fiscal year +10.8

Increase(Unit : billion yen)

Equity in earnings ofassociated companies

Decrease in ITOCHU Corporation and existing subsidiaries : +8.3
[Increase in pension cost : -1.2]
Increase due to acquisition of subsidiaries : -21.6[Increase in pension cost : -0.5]
Decrease due to deconsolidation of subsidiaries : +3.1
Decrease due to exchange rate fluctuations : +4.1

Increase(Unit : billion yen)

Income taxes

Equity in earnings ofassociatedcompanies

Jul-Sep 2009
(0.5)

Decrease due to decrease in revenue in ITOCHU Corporation and existing
subsidiaries : -72.2 [Energy, Metals & Minerals -47.2, Machinery -10.9,
Chemicals, Forest Products & General Merchandise -6.9 ]Increase due to acquisition of subsidiaries : +23.5
Decrease due to deconsolidation of subsidiaries : -3.4
Decrease due to exchange rate fluctuations : -8.7
Refer to "(7) Segment Information" on page 20-21

Increase(Unit : billion yen)

Other-net

Income taxes

Jul-Sep 2008 (Decrease)(186.5)(6.1)(71.2)
(5.8)
(3.5)
(1.6)
(115.3)(0.3)(65.2)
3.1(19.0)
(3.5)
(6.8)
1.3
(24.3)(1.2)(Unit : billion yen)

Loss on property and equipment-net

Other-net

Jul-Sep 2009
(192.6)(77.0)(5.2)(115.6)(62.1)(22.5)(5.5)(25.5)

Reasons for changes
Increase due to the acquisition of several subsidiaries including ITOCHU ENEX CO., LTD.,
despite decrease due to price falls in metal resources and energies, poor market inautomobiles and housing market slowdown in Japan and the U.S.

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

Loss on property
and equipment-net

Jul-Sep 2008 (Decrease)294.4(60.7)(Unit : billion yen)

Net financial income (expense)

Gain (loss) on
investments-net

Jul-Sep 2009
233.7

(Unit : billion yen)

Provision for doubtful receivables

Net financial
income (expense)

Jul-Sep 2008 (Decrease)
767.9
116.0

(Unit : billion yen)

Gross trading profit

Selling, general andadministrative
expenses

Increase

Jul-Sep 2009
883.8

Brazil Japan Iron Ore Corporation +0.9 (- → 0.9)
TING HSIN (CAYMAN ISLANDS) HOLDING CORP. +0.6 (- → 0.6)
Marubeni-Itochu Steel Inc. -7.0 (5.4 → -1.6)
Equity-method associated companies of ITOCHU Minerals & Energyof Australia Pty Ltd -2.9 (3.4 → 0.5) / Orient Corporation -1.1 (1.8 → 0.6)
Japan Brazil Paper and Pulp Resources Development Co., Ltd. -1.0 (0.0 → -1.1）
Refer to "Performance of Group Companies" on page 26

Increase

Increase− 12 −

Refer to "(7) Segment Information" on page 20-21
Effect of exchange rate fluctuations: Approximately -100.0

Adjusted profit (-74.0)= Gross trading profit（-60.7）+ SG&A expenses （-6.1）+ Net financial income (-2.5) + Equity in earnings of associated companies（-4.6）
The amount ( ) represents changes from the same period of the previous fiscal year

-Unaudited-(5) Consolidated Balance Sheets (Assets) [Condensed]
ITOCHU Corporation and Subsidiaries
As of September 30, 2009 and March 31, 2009

Millions of Yen

AssetsCurrent 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………………………………………

Sep. 2009

Mar. 2009¥¥

628,820
3,738
9,214

$ 6,07245
74

144,479
1,187,091(17,125)
1,314,445
117,040
547,923
98,46034,38740,965245,580
2,957,198

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

1,602
13,159(190)
14,571
1,297
6,074
1,091
381
454
2,722
32,781

Investments 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………

913,575
449,012
152,590(59,138)
1,456,039

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

10,127
4,977
1,692
(656)
16,140Property 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………………………………

162,818
401,609398,663
80,894
69,05424,0791,137,117
487,336
649,781

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

1,805
4,452
4,419
897
765
267
12,605
5,402
7,203

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

1,166
116,544
280,987

1,079
136,389
280,817

13
1,292
3,115

5,192,092$ 60,544

Total…………………………………………………

¥

547,730
4,015
6,653

Millions of
U.S. dollars
Sep. 2009

5,461,715¥

Note:
In the first quarter of this fiscal year, SFAS160 (codified to ASC Topic 810) was applied. For details, please refer to "New Accountin
Pronouncements" on (11), page 22.

− 13 −

-Unaudited-(3) Consolidated Balance Sheets (Liabilities and Stockholders' Equity) [Condensed]
ITOCHU Corporation and Subsidiaries
As of September 30, 2009 and March 31, 2009

Millions of
U.S. dollars

Millions of Yen

Liabilities and Equity

Sep. 2009

Mar. 2009¥¥

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…………………………

377,463
91,753

Sep. 2009

538,161
90,631

$

4,184
1,017

113,125
1,023,441
1,136,566
20,000114,245
23,807
106,855
1,170
210,605
2,082,464

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

1,254
11,345
12,599
222
1,266
264
1,185
13
2,335
23,0852,103,046

1,934,421

23,313

Accrued retirement and severance benefits……………………………

51,18654,697

567

Deferred tax liabilities, non-current……………………………………

25,533

17,502283

Total liabilities ……………………………………………………

4,262,229

4,154,737

47,248202,241
137,046

202,241
137,171

2,242
1,519

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………………………………

14,742824,819
839,561

13,183
783,699
796,882

164
9,143
9,307

(101,807)(103,990)
41,481(4,567)(2,752)
1,007,213(185,363)(106,013)
13,686(6,482)(2,711)
849,411(1,129)(1,153)
460
(51)
(30)
11,165

Noncontrolling interest…………………………………………………

192,273

187,944

2,131

Total equity……………………………………………………………

1,199,486

1,037,355

13,296

Total………………………………………………………………

− 14 −¥

5,461,715¥

5,192,092$

60,544

[Explanation for Consolidated Balance Sheets]
AssetsAcquisition of C.I.Kasei Co.,
Ltd. and i-LOGISTICS CORP

(Unit: billion yen)Sep 2009

Mar 2009

Increase(Decrease)

Cash and cash equivalents, Time deposits

…

551.7

632.6

(80.8)Net trade receivables…

1,314.4

1,282.7

Inventories

…

547.9

509.5

38.4 … Increase in Energy, Metals & Minerals; and Realty; and decrease in Machinery

Other current assets
Investments in and advances
to associated companies
Other investments

…

245.6

235.0

10.5 … Increase in Other current assets

…

913.6

754.1

159.5 … Increase in Textile; Energy, Metals & Minerals; and Food

…

449.0

426.1

23.0 … Effect of stock market prices' recovery compared with March 31, 2009

Net property and equipment

…

649.8

560.8

89.0 … Increase due to acquisitions of C.I.Kasei Co., Ltd. and i-LOGISTICS CORP.

Deferred tax assets, non-current

…

116.5

136.4

(19.8) … Decrease due to improvement of unrealized holding gains on investments

Total assets…

5,461.7

31.8 …

5,192.1

Liabilities

Reasons for changes:

Net Trade receivables

Inventories
Net Property and equipment

25.3
10.9
44.4

Increase in Energy, Metals & Minerals; and Chemicals, Forest Products & General
Merchandise; and decrease in Machinery; and ICT, Aerospace & Electronics

Total assets as of September 30, 2009, increased by 5.2% or 269.6 billion yen
compared with March 31, 2009, to 5,461.7 billion yen (60,544 million U.S. dollars),
resulting from acquisitions in Chemicals, Forest Products & General Merchandise and in
Finance, Realty, Insurance & Logistics; increase in Net trade receivables along withhigher oil prices, in Inventories, in Net property and equipment resulting from capital
investment, effect of appreciation of Australian dollar and Brazilian real against the yen
in Energy, Metals & Mineral; and new investments in Textile and in Food despite
decrease in Cash and cash equivalents, Time deposits.

269.6(Unit: billion yen)Sep 2009

Mar 2009

Increase(Decrease)

Total trade payables…

1,136.6

1,041.7

94.8 …

Other current liabilities

…

210.6

192.7

…

377.5

538.2

(160.7) …

…

87.2

81.9

5.3

…
…

4.5
469.2

8.7
628.8

(4.2)
(159.6)Long-term debt…

1,745.5

1,610.4

135.1 …

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

…
…
…
…
…

173.8
1,919.3
2,388.5
551.7
1,836.7

150.2
1,760.5
2,389.3
632.6
1,756.8

23.6
158.7
(0.9)
(80.8)
80.0

Net debt-to-stockholders' equity ratio [times] …

1.8

2.1

Increase in Energy, Metals & Minerals; Chemicals, Forest Products & General
Merchandise; and Food; and decrease in Machinery

17.9 … Increase in Other current liabilities[Interest-bearing debt]
Short-term debt
Current maturities of long-term
debt excluding debentures
Current maturities of debentures
Short-term total

EquityDecrease due to the shift from short-term to long-term in interest-bearing debt, despite
increase due to an acquisition of C.I.Kasei Co., Ltd.

Increase due to acquisitions of C.I.Kasei Co., Ltd. and shift from short-term to long-termin interest-bearing debt
Interest-bearing debt remained almost the same level compared with March 31,
2009, at 2,388.5 billion yen (26,477 million U.S. dollars), and Net interest-bearing debt
(interest-bearing debt after deducting Cash and cash equivalents and Time deposits)
increased by 4.6% or 80.0 billion yen compared with March 31, 2009, to 1,836.7
billion yen (20,361 million U.S. dollars).
NET DER (Net Debt-to-Stockholders’ Equity Ratio) improved by 0.2 points
compared with March 31, 2009, to 1.8 times.

0.2 improved(Unit: billion yen)Sep 2009

Mar 2009

Increase(Decrease)

Legal reserve

…
…
…
…

202.2
137.0
839.6
14.7

202.2
137.2
796.9
13.2

(0.1)
42.7
1.6

Other retained earnings

…

824.8

783.7

41.1 …

…

(168.9)(284.2)

115.3

…
…
…

(101.8)(104.0)41.5(185.4)(106.0)13.7

83.6 … Effect of mainly appreciation of Australian dollar and Brazilian real against the yen
2.0
27.8 … Effect of stock market prices' recovery compared with March 31, 2009

…

(4.6)

(6.5)

1.9

…
…

(2.8)
1,007.2

(2.7)
849.4

(0.0)
157.8

Ratio of stockholders' equity to total assets …

18.4%

16.4%

2.1%

Noncontrolling interest

…

192.3

187.9

4.3

Total equity…

1,199.5

1,037.4

162.1

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 +55.3, Dividend payment -12.7,
Transfer to legal reserve and others -1.6

[Current exchange rate Yen/USD][For March closing companies]
Sep 2009 Mar 2009 Changes
90.21
98.23
(8.02)
Sep 2008 Mar 2008 Changes
103.57100.19
3.38[The Nikkei Stock Average index]
Sep 2009 Mar 2009 Changes
10,1338,109
2,024− 15 −

ITOCHU stockholders’ equity, which corresponds to Total equity before applying
SFAS160 (codified to ASC Topic 810), increased by 18.6% or 157.8 billion yen
compared with March 31, 2009, to 1,007.2 billion yen (11,165 million U.S. dollars), due
to decrease from dividend payment, accumulation of Net income attributable to
ITOCHU, improvement in Foreign currency translation adjustments, and improvement in
Unrealized holding gains on securities resulting from recovery of stock market.
As a result, Ratio of stockholders’ equity to total assets rose by 2.1 points comparedwith March 31, 2009, to 18.4%.
Total equity, or total of ITOCHU stockholders’ equity and Noncontrolling interest,
which means the total equity of the entire Group, increased by 15.6% or 162.1 billion
yen compared with March 31, 2009, to 1,199.5 billion yen (13,297 million U.S. dollars).

[Current exchange rate Yen/AUD][For December closing companies] [For March closing companies]
Jun 2009 Dec 2008 Changes
Sep 2009 Mar 2009
Changes
96.01
91.03
4.98
78.96
67.01
11.95
Jun 2008 Dec 2007 Changes
Sep 2008 Mar 2008
Changes106.42114.15(7.73)
82.87
91.74(8.87)

-Unaudited-(6) Consolidated Statements of Cash Flows [Condensed]
ITOCHU Corporation and Subsidiaries
For the six months ended September 30, 2009 and 2008

Millions of Yen

Millions of
U.S. dollars
Apr.-Sep.2009

Apr.-Sep.2009

Apr.-Sep.2008¥ 59,218¥ 142,729

34,908
4,341(5,158)(1,957)(9,129)35,97912,369(5,002)
823
-

387
48
(57)
(22)
(101)

(9,787)
9,145
21,110102,691(21,928)(3,727)(98,923)
62,320

(108)
101
234
1,138

(37,847)(62,934)(420)(79,054)(20,428)
2,337
(300)
660
(134,632)(10,977)(26,038)(2,842)(11,734)(251)(114,776)

(876)
(226)
26
(3)
7
(1,492)

Net proceeds (repayments) of long-term debt …………………………………
Net (decrease) increase in short-term debt ……………………………………
Other ……………………………………………………………………………
Net cash (used in) provided by financing activities ……………………

148,177(185,055)(19,150)(56,028)(34,166)
65,409(17,200)
14,043

1,642(2,051)
(212)
(621)

Effect of exchange rate changes on cash and cash equivalents ………………
Net decrease in cash and cash equivalents ……………………………………
Cash and cash equivalents at beginning of year ………………………………
Cash and cash equivalents at end of year ………………………………………

6,879(81,090)
628,820¥ 547,730(8,501)(46,914)446,311¥ 399,397

76
(899)
6,971
$ 6,072

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 ……………………………………………
Gain on investments-net ………………………………………………………
(Gain) 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 ………………………………

$656

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 collections (origination) of other non-current loan receivables ……………
Net increase in time deposits……………………………………………………
Net decrease (increase) 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 (11), page 22.

− 16 −

[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)

Apr-Sep 2009

Apr-Sep 2008

Increase(Decrease)

Net income

59.2

142.7

(83.5)

Non-cash charges of P/L

22.4 a18.5 b

3.8

Changes in assets and liabilities,
other-net

21.1 a(98.9) b

120.0

102.7

62.3

40.4

Net cash provided byoperating activities

Major items

a : Depreciation and amortization +34.9, Deferred income taxes +9.1
Equity in earnings of associated companies, less dividends received -9.8
Gain on bargain purchase in acquisition -9.1
b : Depreciation and amortization +36.0, Provision for doubtful receivables +12.4
Gain on investments-net -5.0
Equity in earnings of associated companies, less dividends received -21.9
a : Trade receivables / payables +73.2, Increase in Inventories -17.1
Other -35.0
b : Increase in Inventories -87.3

Cash flows from investing
activities(Unit: billion yen)

Net purchases of property,
equipment and other assets

Apr-Sep 2009

Net increase in investments inand advances to associatedcompanies

Apr-Sep 2009

Net purchases of otherinvestments

Apr-Sep 2009

Net collections (origination) of
other non-current loan
receivables

Apr-Sep 2009

Net increase in time deposits

Apr-Sep 2009(37.8) a(79.1) a(20.4) a

2.3 a

(0.3)
Net decrease (increase) inmarketable securities
Net cash used in investing
activities

Apr-Sep 2008

(62.9) b

Apr-Sep 2008

(11.0) b

Apr-Sep 2008

(26.0) b

Apr-Sep 2008(2.8) bApr-Sep 2008

(11.7) b

Increase（Decrease)

25.1

a : Purchases by natural resources development related subsidiaries -12.6
and by ITOCHU Corporation -4.2
b : Purchases by natural resources development related subsidiaries -31.2,
airline-related subsidiaries -9.9

Increase(Decrease)(68.1)

a : Net increase in investments in food and textile business -67.0
Investment in leasing business -5.9
b : Net increase in loans provided to associated companies in Machinery -8.0

Increase（Decrease)

5.6

a : Net purchases (by TOB) net of cash acquired in acquisitions of
C.I.Kasei Co., Ltd. and i-LOGISTICS CORP. -8.7
Investment in natural resources development sector -7.6
b : Net purchases of investment in Machinery and energy-development sector -28.9
Net sales of stocks by ITOCHU Corporation +12.2

Increase(Decrease)

5.2

a : Net collections of loan receivables by ITOCHU Corporation +3.9
b : Net origination of loan receivables by Machinery subsidiaries -4.9

Increase(Decrease)

11.4

Apr-Sep 2009

Apr-Sep 2008

Increase(Decrease)

0.7

(0.3)

0.9

(134.6)(114.8)(19.9)b : Net increase by natural resources development related subsidiary -13.7

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 (repayments) of
long-term debt

Apr-Sep 2009

Net (decrease) increase in
short-term debt

Apr-Sep 2009

Other

Apr-Sep 2009

Net cash (used in) provided byfinancing activities

148.2 a(185.1) a

Apr-Sep 2008(34.2) b
Apr-Sep 2008

65.4 bApr-Sep 2008

Increase(Decrease)

182.3

a : Net proceeds by ITOCHU Corporation +182.0
b : Net repayments by ITOCHU Corporation -26.2

Increase(Decrease)(250.5)a : Net decrease by ITOCHU Corporation -190.7
b : Net increase by ITOCHU Corporation +13.4
Net increase by overseas trading subsidiaries +55.5

Increase(Decrease)(19.2) a(17.2) b(2.0)(56.0)

14.0(70.1)

a : Dividends paid -12.7, dividends paid to noncontrolling stockholders -4.5
b : Dividends paid -15.0, dividends paid to noncontrolling stockholders -4.1

− 17 −

-Unaudited(7) Segment Information
ITOCHU Corporation and Subsidiaries
For the six months ended September 30, 2009 and 2008
ITOCHU Corporation and its subsidiaries are engaged in awide range of business activities such as worldwide trading
operations in various commodities, financing for customers andsuppliers, organizing and coordinating industrial projects, andinvesting in resource development, advanced technology,
information and multimedia.

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
has been renamed to "ICT, Aerospace & Electronics Company".

Information concerning operations in different operating segments for the six months ended September 30, 2009 and 2008 is as follows:
For the six months ended September 30, 2009 (April 1, 2009 -September 30, 2009)
Millions of Yen

TextileMachinery

ICT,
Aerospace ＆Electronics

Energy,Metals &Minerals

Chemicals,
ForestProducts& General
Merchandise

1,379,233¥

Finance,
Realty,Insurance& Logistics
Services

Food

Other,
Adjustments&
Eliminations

Consolidated a¥¥

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

295

1,148

2,825

156

10,053

187

6,253(20,917)－244,629352,219

280,1021,379,389

860,391

1,556,765

72,95555,5284,801,978

Gross trading profit …………………………

45,551

23,95361,65557,583

51,849171,255

16,74911,412440,007

Net income attributable to ITOCHU………
[Equity in earnings (losses)of associated companies]…………………

7,106

4,018

1,216

26,084

8,145

18,5052,349(12,087)

55,336[4,843][5,108][293][2,727][(631)][7,181][2,173][(918)][20,776]

Identifiable assets at September 30, 2009…

367,025572,640

502,379

1,168,294

697,705

1,158,933

393,846

600,893

5,461,715

244,334¥

351,071¥

277,277¥

850,338¥

1,556,578¥

66,70276,4454,801,978

For the six months ended September 30, 2008 (April 1, 2008 -September 30, 2008)
Millions of Yen

TextileMachinery

ICT,
Aerospace ＆Electronics

Energy,Metals &Minerals

Chemicals,
ForestProducts& General
Merchandise

2,147,437¥

Finance,
Realty,Insurance& Logistics
Services

Food

Other,
Adjustments&
Eliminations

Consolidated a¥¥

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

316

595

2,221

199

10,169299

4(13,803)－

287,460

763,655

288,259

2,147,636

1,149,671

1,640,072

74,06280,376

6,431,191

Gross trading profit …………………………

46,89645,32461,067

111,457

64,968

169,834

22,54320,003542,092

Net income attributable to ITOCHU………
[Equity in earnings (losses)of associated companies]…………………

13,239

3,661

1,874

86,413

13,203

12,410

6,627

1,698

139,125[2,086][1,952][334][15,076][2,000][6,947][6,020][506][34,921]

Identifiable assets at September 30, 2008…

342,018

733,111528,881

1,066,698

805,340

1,123,450

422,401

424,355

5,446,254

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

287,144¥763,060¥

286,038¥

1,139,502¥

1,639,773¥

74,05894,179For the six months ended September 30, 2009 (April 1, 2009 -September 30, 2009)

TextileMachinery

ICT,
Aerospace ＆Electronics

Chemicals,
ForestProducts& General
Merchandise

Energy,Metals &Minerals

Food

6,431,191

Millions of
U.S.dollars

Finance,
Realty,Insurance& Logistics
Services

Other,
Adjustments&
Eliminations

Consolidated a

$

$

$

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

3

12

31

2

112

2

70

(232)

53,231
－

2,712

3,904

3,105

15,291

9,538

17,257809

615

53,231Gross trading profit …………………………

505

266

683

638

575

1,898

186

127

4,878

Net income attributable to ITOCHU………
[Equity in earnings (losses)of associated companies]…………………

79

45

13

289

90

205

26

(134)

613

[54]

[57]

[3]

[30]

[(7)]

[79]

[24]

[(10)][230]

Identifiable assets at September 30, 2009…

4,068

6,348

5,569

12,951

7,734

12,847

4,366

6,661

60,544

2,709

$

3,892

$

3,074

$

15,289

$

9,426

$

17,255739

847

Note :
1. "Equity in earnings (losses) 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 (11), page 22.

− 18 −

[Explanation for Operating Segment Information]

Tradingtransactions
for unaffiliatedcustomers andassociatedcompanies

Increase
Apr-Seｐ 2009 Apr-Sep 2008 (Decrease)(Unit : billion yen)
…

244.3

287.1

(42.8) …

Decrease due to market slowdown in textile materials, fabrics and apparels despite increase from anacquisition of SANKEI CO., LTD.

Machinery

…

351.1

763.1

(412.0) …

Decrease due to reduced transactions in automobile and construction machinery business, and theabsence of multiple deliveries of newly completed ships in the same period of the previous fiscal year

ICT, Aerospace& Electronics

…

277.3

286.0

(8.8) …

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

Energy, Metals & Minerals …

1,379.2

2,147.4(768.2) …

Chemicals, Forest Products…
& General Merchandise

850.3

1,139.5…

1,556.6

1,639.8

Finance, Realty, Insurance…
& Logistics Services

66.7

74.1

Decrease due to the absence of a large-scale condominium sale in the same period of the previous fiscal(7.4) … year and low performance in finance-related business despite increase from an acquisition ofi-LOGISTICS CORP.

Other, Adjustments& Eliminations

76.4

94.2

(17.7) …

4,802.0

6,431.2

Food

…

Total

Gross
trading profit

Decrease due to low performance in equipment material business in North America and effect of yen's
appreciation(1,629.2)

Reasons for changes

Textile

…

45.6

46.9

(1.3) …

Decrease due to market slowdown in textile materials, fabrics and apparels despite increase from anacquisition of SANKEI CO., LTD.

Machinery

…

24.0

45.3

(21.4) …

Decrease due to reduced transactions in automobile and construction machinery business, and decrease insales volume by the absence of ship trading transactions in the same period of the previous fiscal year

ICT, Aerospace& Electronics

…

61.7

61.1

0.6 …

Energy, Metals & Minerals …

57.6

111.5

(53.9) …

Chemicals, Forest Products…
& General Merchandise

51.8

65.0

Food

…

171.3

169.8

1.4 … Increase in sales volume in food distribution business and profitability improved in fresh food materials

Finance, Realty, Insurance…
& Logistics Services

16.7

22.5

(5.8) …

Decrease in condominium sales and low performance in finance-related business despite increase from anacquisition of i-LOGISTICS CORP.

Other, Adjustments& Eliminations

11.4

20.0

(8.6) …

Decrease due to low performance in equipment material business in North America and effect of yen's
appreciation

440.0

542.1

…

Almost the same level due to increase in domestic mobile phone business offset by overall low
performance in aviation, Information and Communication Technology related businesses

Decrease due to price falls in metal resources and energies as well as decrease in sales volume of iron ore
despite increase from an acquisition of ITOCHU ENEX CO., LTD.
Decrease due to price falls in chemicals since last autumn and slowdown in housing market in Japan and(13.1) … the U.S., and deconsolidation of a subsidiary in the U.S. despite increase from an acquisition of C.I.Kasei
Co., Ltd.

(102.1)

Increase
Apr-Sep 2009 Apr-Sep 2008 (Decrease)(Unit : billion yen)

Reasons for changes

Decrease due to the absence of gain on sales of investments in the same period of the previous fiscal year
in addition to decreased gross trading profit despite increased equity in earnings of associated companies

Textile

…

7.1

13.2

(6.1) …

Machinery

…

4.0

3.7

Increase in equity in earnings of associated companies and gain on sales of investments and the absence
0.4 … of provision for doubtful receivables in the same period of the previous fiscal year despite decreased
gross trading profit

ICT, Aerospace& Electronics

…

1.2

1.9

(0.7) … Decrease in gain on sales of investments despite decrease in SG&A

Energy, Metals & Minerals …

26.1

86.4

(60.3) …

Chemicals, Forest Products…
& General Merchandise

8.1

13.2

Decrease due to decreased gross trading profit and equity in earnings of associated companies despite(5.1) … profit from obtaining control of C.I.Kasei Co., Ltd. and improved gain (loss) on property and equipmentnet

Food

…

18.5

12.4

6.1 … Significant increase due to gain on sales of investments in addition to increased gross trading profit

Finance, Realty, Insurance…
& Logistics Services

2.3

6.6

(4.3) …

Decrease due to decreased gross trading profit and equity in earnings of associated companies despite
profit from obtaining control of i-LOGISTICS CORP.

(12.1)

1.7(13.8) …

Decrease due to decreased equity in earnings of associated companies and increased inter-company
income tax caused by change of internal tax system in addition to decreased gross trading profit

55.3

139.1

(83.8)

Sep. 2009

Mar. 2009

Increase(Decrease)

Other, Adjustments& Eliminations

…

Total

Identifiable
assetsDecrease due to price falls in metal resources and energies as well as decrease in sales volume of iron ore
despite increase from an acquisition of ITOCHU ENEX CO., LTD.

Decrease due to price falls in chemicals since last autumn and slowdown in housing market in Japan and(289.2) … the U.S., and deconsolidation of a subsidiary in the U.S. despite increase from an acquisition of C.I.Kasei
Co., Ltd.
Decrease due to price falls in food resources such as feed grains, oils and fats despite increase in sales(83.2) …
volume in food distribution business

Increase
Apr-Sep 2009 Apr-Sep 2008 (Decrease)(Unit : billion yen)

Total

Net income
attributable to
ITOCHU

Reasons for changes

Textile(Unit : billion yen)

Reasons for changes

Increase in new investments despite decrease in trade receivables due to decrease in sales volume andseasonal factors.

Textile

…

367.0

360.4

Machinery

…

572.6

639.9

(67.3) … Decrease in trade receivables and inventories

ICT, Aerospace& Electronics

…

502.4

490.2

12.2 … Increase in industrial machinery related business despite decrease in domestic IT-related business

Energy, Metals & Minerals …

1,168.3

1,016.6

Chemicals, Forest Products…
& General Merchandise

697.7

611.4

…

1,158.9

1,054.1

Finance, Realty, Insurance…
& Logistics Services

393.8

381.8

Food

Other, Adjustments& Eliminations
Total

…

600.9

637.7

5,461.7

5,192.1

6.6 …

Decrease in equity in earnings of associated companies in addition to significantly decreased gross trading
profitIncrease in trade receivables from higher oil price compared with the last fiscal year end and net property
151.7 … and equipment in addition to appreciation of Australian dollar and Brazilian real to yen compared withthe last fiscal year end
86.3 … Increase due to an acquisition of C.I.Kasei Co., Ltd.
104.8 … Increase in new investments, and net property and equipment in food distribution sector
12.0 …

Increase due to an acquisition of i-LOGISTICS CORP. and increase in condominium inventory despite
decrease in deferred tax asset resulting from sale of business(36.8) … Decrease in cash and cash equivalents
269.6− 19 −

-UnauditedITOCHU Corporation and Subsidiaries
For the three months ended September 30, 2009 and 2008 (Second quarter of fiscal year 2010 and 2009)
Information concerning operations in different operating segments for the second quarter of fiscal year 2010 and 2009 is as follows:
For the second quarter of fiscal year 2010 (July 1, 2009 -September 30, 2009)
Millions of Yen
TextileMachinery

ICT,
Aerospace ＆Electronics

Energy,Metals &Minerals

Chemicals,
ForestProducts& General
Merchandise

Food

Finance,
Realty,Insurance& Logistics
Services

Other,
Adjustments&
Eliminations

Consolidated a

¥

¥

¥

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

134,696143
134,839

Gross trading profit ………………………

25,157

12,48932,97932,43528,284

88,775

8,878

4,677

233,674

Net income attributable to ITOCHU………
[Equity in earnings (losses)of associated companies]…………………

6,266

4,409

1,766

20,497

5,946

5,530

342

(9,852)

34,904[3,903][3,424]

[116]

[819]

[(503)][3,241][1,346][(960)][11,386]

Identifiable assets at September 30, 2009…

367,025572,640

502,379

1,168,294

697,705

1,158,933

393,846

600,893

5,461,715¥

184,585
185
184,770¥

146,899
1,900
148,799¥

821,59185
821,676¥

454,167
5,343
459,510¥788,16875
788,243

37,687
5,081
42,76841,648(12,812)28,8362,609,441

2,609,441

For the second quarter of fiscal year 2009 (July 1, 2008 -September 30, 2008)
Millions of Yen

TextileMachinery

ICT,
Aerospace ＆Electronics

Energy,Metals &Minerals

Chemicals,
ForestProducts& General
Merchandise

Food

Finance,
Realty,Insurance& Logistics
Services

Other,
Adjustments&
Eliminations

Consolidated a

¥

¥

¥

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

155,692
174
155,866

Gross trading profit ………………………

25,10524,937

32,83868,24535,221

89,233

9,853

8,979

294,411Net income attributable to ITOCHU………
[Equity in earnings (losses)of associated companies]…………………

3,395

2,821

993

54,113

7,981

6,756

4,341

(3,749)76,651[(71)][1,408][237][7,914][415][3,082][2,603][403][15,991]

Identifiable assets at September 30, 2008…

342,018

733,111528,881

1,066,698

805,340

1,123,450

422,401

424,355

5,446,254¥

430,057297
430,354¥

157,201
1,036
158,237¥

1,106,034
106
1,106,140¥

597,2315,392
602,623¥

840,973183
841,156

29,006
3
29,00950,571(7,191)
43,380For the second quarter of fiscal year 2010 (July 1, 2009 -September 30, 2009)

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

Machinery

1,493

$

2,046

ICT,
Aerospace ＆Electronics

$

1,628

Energy,Metals &Minerals$

9,107Chemicals,
ForestProducts& General
Merchandise

$

5,035

Food

$

8,737

3,366,765

3,366,765

Millions of
U.S.dollars

Finance,
Realty,Insurance& Logistics
Services

Other,
Adjustments&
Eliminations

Consolidated a

$

$

$

418

462

28,926

-

2
1,495

2
2,048

21
1,649

1
9,108

59
5,094

1
8,738

56
474

(142)
320

28,926Gross trading profit ………………………

279

138

366

360

313

984

98

52

2,590

Net income attributable to ITOCHU………
[Equity in earnings (losses)of associated companies]…………………

69

49

20

227

66

61

4

(109)

387

[43]

[38]

[1]

[9]

[(5)]

[36]

[15]

[(11)][126]

Identifiable assets at September 30, 2009…

4,068

6,348

5,569

12,951

7,734

12,847

4,366

6,661

60,544Note :
1. "Equity in earnings (losses) 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 (11), page 22.

− 20 −

[Explanation for Operating Segment Information]
Tradingtransactionsforunaffiliatedcustomers andassociatedcompanies

Increase
Jul-Sep 2009 Jul-Sep 2008 (Decrease)(Unit : billion yen)
…

134.7

155.7

(21.0) …

Decrease due to market slowdown in textile materials, fabrics and apparels despite increase from an acquisition of
SANKEI CO., LTD.

Machinery

…

184.6

430.1

(245.5) …

Decrease due to reduced transactions in automobile and construction machinery business, and the absence ofmultiple deliveries of newly completed ships in the same period of the previous fiscal year

ICT, Aerospace& Electronics

…

146.9

157.2

(10.3) …

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

Energy, Metals & Minerals …

821.6

1,106.0(284.4) …

Decrease due to price falls in metal resources and energies despite increase from an acquisition of ITOCHUENEX CO., LTD.

Chemicals, Forest Products…
& General Merchandise

454.2

597.2

(143.1) …

Decrease due to price falls in chemicals since last autumn and slowdown in housing market in Japan and the U.S.,
and deconsolidation of a subsidiary in the U.S. despite increase from an acquisition of C.I.Kasei Co., Ltd.

Food

(52.8) … Decrease due to price falls in food resources such as feed grains, oils and fats

…

788.2

841.0

Finance, Realty, Insurance…
& Logistics Services

37.7

29.0

8.7 …

Increase due to an acquisition of i-LOGISTICS CORP. and sales of rental apartment for investments despite low
performance in finance-related business

Other, Adjustments& Eliminations

41.6

50.6

(8.9) …

Decrease due to low performance in equipment material business in North America and effect of yen's
appreciation

2,609.4

3,366.8

…

Total

Gross
trading profit(757.3)

Increase
Jul-Sep 2009 Jul-Sep 2008 (Decrease)(Unit : billion yen)

Reasons for changes

Textile

…

25.2

25.1

0.1 …

Almost the same level due to market slowdown in textile materials, fabrics and apparels despite increase from anacquisition of SANKEI CO., LTD.

Machinery

…

12.5

24.9

(12.4) …

Decrease due to reduced transactions in automobile and construction machinery business, and decrease in sales
volume by the absence of ship trading transactions in the same period of the previous fiscal year

ICT, Aerospace& Electronics

…

33.0

32.8

Energy, Metals & Minerals …

32.4

68.2

Significant decrease due to the absence of the retroactive adjustment of higher iron ore price determined in the(35.8) … same period of the previous fiscal year in addition to price falls in metal resources and energies despite increase
from an acquisition of ITOCHU ENEX CO., LTD.

Chemicals, Forest Products…
& General Merchandise

28.3

35.2

(6.9) …

Food

88.8

89.2

(0.5) … Decrease due to price falls in feed and grain materials

8.9

9.9

(1.0) … Decrease in finance-related business

4.7

9.0

(4.3) …

233.7

294.4

…

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

Net income
attributable to
ITOCHU

Reasons for changes

Textile0.1 … Almost the same level

Decrease due to low performance in equipment material business in North America and effect of yen's
appreciation(60.7)

Increase
Jul-Sep 2009 Jul-Sep 2008 (Decrease)(Unit : billion yen)

Decrease due to price falls in chemicals since last autumn and slowdown in housing market in Japan and the U.S.,
and deconsolidation of a subsidiary in the U.S. despite increase from an acquisition of C.I.Kasei Co., Ltd.

Reasons for changes

Increase due to the absence of impairment loss on an investment in the same period of the previous fiscal year andearnings from newly purchased associated companies despite decreased gross trading profit

Textile

…

6.3

3.4

2.9 …

Machinery

…

4.4

2.8

1.6 … Increase in equity in earnings of associated companies

ICT, Aerospace& Electronics

…

1.8

1.0

0.8 … Increase due to decrease in SG&A

Energy, Metals & Minerals …

20.5

54.1

Chemicals, Forest Products…
& General Merchandise

5.9

8.0

Food

…

5.5

6.8

(1.2) … Decrease due to impairment loss on investments despite increased gross trading profit

Finance, Realty, Insurance…
& Logistics Services

0.3

4.3

(4.0) …

Decrease in dividends received from fund investment in the same period of the previous fiscal year and equity inearnings of associated companies in finance-related business, in addition to decreased gross trading profit

Other, Adjustments& Eliminations

(9.9)

(3.7)

(6.1) …

Decrease due to decreased gross trading profit and equity in earnings of associated companies and increased intercompany income tax

34.9

76.7

(41.7)

Total…

Decrease due to decreased equity in earnings of associated companies in addition to significant decrease in grosstrading profit
Decrease due to decreased gross trading profit and equity in earnings of associated companies despite increased(2.0) …
gain (loss) on property and equipment-net and other-net(33.6) …

− 21 −

(8) Assumption for Going Concern

N/A(9) Information Concerning Dividend Payment(Dividends paid for the six months ended September 30, 2009)(Resolution)
General meeting of stockholders
on June 24, 2009

Stock type

Total dividend
amountDividend
per share

millions of yen
Common stock

12,654

Record date

Effective date

Dividend resource

March 31, 2009

June 25, 2009

Retained earnings

yen
8.00

(Dividends to be paid for the three months ended September 30, 2009, of which effective date is after September 30. 2009)(Resolution)
Board of directors' meetingon October 30, 2009

Stock type

Total dividend
amountmillions of yen

Dividend
per share

11,862

7.50

Common stock(10) Significant Changes in Stockholders' Equity

Record date

Effective date

Dividend resourceyen
September 30, 2009 December 2, 2009

Retained earnings

N/A(11) 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". SFAS168 defined that the FASB Accounting Standards Codification TM (ASC) , which became 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.
SFAS168 itself was codified into ASC Topic 105 "Generally Accepted Accounting Principles"
Business Combinations (ASC Topic 805: pre-codification standard No. SFAS141(R)) andNoncontrolling 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 bodyconsisted 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 changes 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 recognition of
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
which had been held by the acquirer are remeasured at the fair value as of the business combination date, and difference between fair value and carrying amountof pre-existing interests are recognized as gain or loss, Gain on investments-net.
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 underretaining control in them at and after the beginning of fiscal year ending March 31, 2010, therefore revise the accounting treatments into those as capitaltransactions 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 as ofthe 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 been revised 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").
2) Consolidated Balance Sheets
In compliance with the new concept mentioned above, the basic policy for preparing consolidated balance sheets are changed: Equity in consolidated balance sheets
should be presented that for the consolidation group itself, that is, equity in subsidiaries contributed from, or to be distributed to noncontrolling interests as well as heldby parent company. Therefore, regarding the quarterly consolidated balance sheets format, the previous "Minority interests" has been renamed as "Noncontrollinginterest" and presented as a component of Equity. (The definition of "stockholders’ equity" is unchanged even after adoption of the new standards. That is,"Common stock", "Capital surplus", "Retained earnings", "Accumulated other comprehensive income (loss)" and "Treasury stock, at cost" displayed ascomponents 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 to noncontrolling interests is presented without disaggregating into eachcomponent.
3) 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 ofcomprehensive income should be presented that for the consolidation group itself. Therefore, regarding the revised quarterly consolidated statements ofcomprehensive income format, "Comprehensive income" shows the entire increase or decrease of each comprehensive income component and thencomprehensive income amount attributable to noncontrolling interests is deducted in "Comprehensive income attributable to noncontrolling interest" andthe remaining amount is presented in "Comprehensive income 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 new standards)
was to be presented in presentation of Cash flows from operating activities, and accordingly reverse of "Minority interests" was to be included in "Adjustments toreconcile 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
the 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 werepreviously included in Cash flows from investing activities.

− 22 −

5. Performance of Group Companies attributable to ITOCHUFor the six months ended September 30, 2009 and 2008

Components of Consolidated Net Income attributable to ITOCHU【For the six months ended September 30】
2009
Apr-Sep
21.5(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 September 30】
2008
Increase
Apr-Sep (Decrease)
62.0(40.4)

47.7

107.4

(59.7)

4.4
73.6(18.3)

12.5
181.9(42.7)(8.1)(108.3)
24.5

55.3

139.1

(83.8)

Earnings from overseas businesses (*) 24.0
Share of earnings from overseas businesses 43%(*) 81.8(57.8)

2009
Jul-Sep
0.4(Unit: billion yen)
Parent company
Group companies excluding
overseas trading subsidiaries
Overseas trading subsidiaries
Subtotal
Consolidation adjustments
Consolidated net income
attributable to ITOCHU

59%

2008
Increase
Jul-Sep (Decrease)
16.8(16.4)

29.3

54.6(25.3)

3.1
32.8
2.1

8.5
79.9
(3.2)

(5.4)
(47.1)
5.3

34.9

76.7

(41.7)(*) 14.2
Earnings from overseas businesses
Share of earnings from overseas businesses 41%(*) 46.5(32.3)

61%(*) "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 domestic group companies substantially operating in overseas.

Number of Group Companies
September 30, 2009
March 31, 2009
Net
Domestic Overseas
Total
Domestic Overseas
Total
Increase Decrease Changes within Group changes
Subsidiaries
107
155
262
106
157
263
+ 2
(5)
+ 2
0
(1)
Equity-method associated companies
72
89
161
70
87
157
+ 11
(5)
(2)
0
+ 4
Total
179
244
423
176
244
420
+ 13
(10)
+ 3
(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 same period of the previous fiscal year and in the past two fiscal years end.
September 30, 2008 Subsidiaries:265, Equity-method associated companies:156, Total:421
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)

Apr - Sep 2009
Profits
Losses
Total
Group companies excluding
overseas trading subsidiaries
Overseas trading subsidiaries
Total

Apr - Sep 2008
Profits
Losses
Total

Increase (Decrease)
Profits
LossesTotal

64.0(16.3)

47.7

121.3

(13.8)

107.4(57.3)(2.5)(59.7)

4.7
68.7

(0.3)
(16.6)

4.4
52.1

12.6
133.9

(0.1)
(14.0)

12.5
119.9

(7.9)
(65.2)

(0.2)
(2.6)

(8.1)
(67.8)

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

Apr - Sep 2009
Profits
Losses
Total
72
35
107
100
55
155
172
90
262
65.6%
34.4%
100.0%
51
21
72
57
32
89
108
53
161
67.1%
32.9%
100.0%
123
56
179
157
87
244
280
143
423
66.2%
33.8%
100.0%

Apr - Sep 2008
Profits
Losses
Total
82
25
107
121
37
158
203
62
265
76.6%
23.4%
100.0%
49
22
71
60
25
85
109
47
156
69.9%
30.1%
100.0%
131
47
178
181
62
243
312
109
421
74.1%
25.9%
100.0%

Increase (Decrease)
Profits
Losses
Total
(10)
10
0
(21)
18
(3)
(31)
28
(3)
(11.0%)
11.0%
2
(1)
1
(3)
7
4
(1)
6
5
(2.8%)
2.8%
(8)
9
1
(24)
25
1
(32)
34
2
(7.9%)
7.9%

Apr - Sep 2008
Profits
Losses
Total
19.1
(4.9)
14.2
76.1
(5.3)
70.8
95.2
(10.2)
85.0
28.2
(1.0)
27.1
10.5
(2.7)
7.8
38.7
(3.8)
34.9
47.2
(5.9)
41.3
86.7
(8.1)
78.6
133.9
(14.0)
119.9

Increase (Decrease)
Profits
Losses
Total
(0.3)
(0.5)
(0.8)
(53.1)
0.2(52.9)(53.3)(0.3)(53.7)(8.1)(3.3)(11.4)
(3.8)
1.0
(2.7)
(11.9)(2.3)(14.1)(8.4)(3.8)(12.2)(56.8)
1.2(55.6)(65.2)(2.6)(67.8)

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

Apr - Sep 2009
Profits
Losses
Total
18.8
(5.4)
13.4
23.1
(5.2)
17.9
41.9
(10.5)
31.3
20.1
(4.3)
15.7
6.8
(1.7)
5.0
26.8
(6.1)
20.8
38.9
(9.7)
29.1
29.8
(6.9)
23.0
68.7
(16.6)
52.1(**)Results of “Overseas trading subsidiaries” which are included in the above “Overseas” are as follows;
Apr - Sep 2009
Apr - Sep 2008
Increase (Decrease)
Profits
Losses
Total
Profits
Losses
Total
Profits
Losses
Total
Overseas trading subsidiaries
4.7
(0.3)
4.4
12.6
(0.1)
12.5
(7.9)
(0.2)
(8.1)

Major New Group Companies
Business Field

NameCountry

VotingSharesCategories

TextileMARUKO CO., LTD.

Japan

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

TextileT.KAWABE & CO., LTD.

Japan

( 25.3 %) Manufacturing and sales of handkerchiefs

Food

TING HSIN (CAYMAN ISLANDS) HOLDING CORP. Cayman

General Merchandise

YOKOHAMA RUSSIA LLC

RussiaHolding company of food manufacture and sales,
restaurants, and retail businesses( 20.0 %) Sales of tires( 20.0 %)− 23 −

Performance of Group Companies (Impact of Net Income attributable to ITOCHU)
For the six months ended September 30, 2009 and 2008

Major Group Companies(Unit: billion yen)

Name

SharesJOI'X CORPORATION

MethodofConsolidation

100.0% Consolidation

SANKEI COMPANY LIMITED

Apr-Sep 20082Q
(0.2)
(0.1) Manufacture, retail and sale of men's apparel

90.5% Consolidation

0.4

0.1

-

0.2

0.2

0.1

0.3 Production control and wholesale of textile and apparel- Sale of garment accessories
0.3 Production control and wholesale of textile materials, fabrics and apparel100.0% Consolidation

0.2

0.3

0.2

ITOCHU CONSTRUCTION MACHINERY CO., LTD.

100.0% Consolidation

0.2

0.1

0.3

0.4 Sale and rental of construction machinery

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

100.0% Consolidation

(0.6)

(0.7)

0.0

(0.2) Warehousing, retail and financing of motor vehicles

ITOCHU Automobile America Inc.

(U.S.A.)

100.0% Consolidation

(0.1)

(0.3)

(0.2)

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

Century Tokyo Leasing Corporation

(*7)

20.6%

(*2)

(*2)

0.4

0.8 Lease, installment sale, business lease and other

(*2)

(*2)

0.8

0.9

ITOCHU TEXTILE (CHINA) CO., Ltd.

Machinery(*4) (Hong Kong)

Categories

Apr-Sep 2009
2Q
(0.4)
(0.5)

100.0% Consolidation

TextileProminent Apparel Ltd.

Net Income attributable to ITOCHU (*1)(*5) (China)

Equity52.6% Consolidation

ITOCHU Techno-Solutions Corporation

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

Excite Japan Co., Ltd.

58.8% Consolidation

(*2)

(*2)

(1.0)

(1.1) Providing services of Internet information

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

60.7% Consolidation

0.6

0.9

0.4

0.6 Sale of mobile phone units, mobile phones related solution business

Energy,Metals& Minerals

51.3% Consolidation

(*2)

(*2)

(0.1)

(0.1) Content publishing, mobile site operation and application development

SPACE SHOWER NETWORKS INC.

50.8% Consolidation

0.0

0.0

0.1

0.1 Music channel on cable/satellite television

ITOCHU Sanki Corporation

100.0% Consolidation

0.2

0.2

0.1

0.1 Import/Export and domestic sale of industrial machinery

JAMCO Corporation

33.3%

Equity

(*2)

(*2)

0.0

0.0 Maintenance of aircraft and manufacture of aircraft interior

SUNCALL CORPORATION

25.8%

Equity

(*2)

(*2)

0.1

ITOCHU Metals Corporation

100.0% Consolidation

0.1

0.2

0.6

ITOCHU Petroleum Japan Ltd.

100.0% Consolidation

(0.3)

0.2

0.4

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

52.3% Consolidation

(*2)

(*2)

0.4

1.0 Wholesale of petroleum products and high-pressure gas

100.0% Consolidation

7.9

14.5

36.3

51.5

100.0% Consolidation

1.0

1.4

(0.8)

11.7 Exploration and production of crude oil and gas

Marubeni-Itochu Steel Inc.

50.0%

(1.6)

(0.9)

5.4

10.1 Import/Export and wholesale of steel products

ITOCHU Kenzai Corp.

87.1% Consolidation

0.4

0.1

0.3

0.3 Wholesale of wood products and building materials

ITOCHU Pulp & Paper Corp.

100.0% Consolidation

0.1

0.2

0.1

0.2 Wholesale of paper, paperboards and various paper materials

99.8% Consolidation

0.5

0.9

0.5

0.9 Wholesale of fine chemicals and related raw materials

100.0% Consolidation

0.5

0.8

0.7

1.2 Wholesale of plastics and related products

97.6% Consolidation

0.8

1.8

0.0

0.2 Manufacture and sale of plastic products

DAIKEN CORPORATION

20.5%

Equity

(*2)

(*2)

0.0

0.0 Manufacture and sale of building materials

TAKIRON Co., Ltd.

27.1%

Equity

(*2)

(*2)

0.0

0.0 Manufacture, processing and sale of plastic products

ITOCHU SHOKUHIN Co., Ltd.

50.8% Consolidation

(*2)

(*2)

0.3

0.4 Wholesale of foods and liquor

NIPPON ACCESS, INC.

69.8% Consolidation

(*2)

(*2)

1.6

2.2 Wholesale and distribution of foods

Yoshinoya Holdings Co., Ltd.

21.0%

Equity

(0.1)

(0.1)

(0.1)

0.0 Wide-ranging operation of food service businessJapan Foods Co., Ltd.

34.8%

Equity

0.1

0.2

0.1

0.1 Production on consignment and sale of soft drinks

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

Food

2.1 Investment in companies of trade of crude oil and petroleum products
Investment in projects of iron ore, coal and bauxite mining, manufacture ofalumina and oil exploration

Fuji Oil Co., Ltd.

25.7%

Equity

(*2)

(*2)

0.3

0.7 Integrated manufacturer of cooking oil and soybean protein

FamilyMart Co., Ltd.

31.5%

Equity

1.9

3.1

2.0

3.5 Operation of a convenience store chain

Prima Meat Packers, Ltd.

39.8%

Equity

(*2)

(*2)

0.5

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

ITOCHU Finance Corporation

99.1% Consolidation

0.0

(0.1)

0.2

0.4 Loan and other finance-related business

59.2% Consolidation

0.1

0.1

0.0

0.1 Headquarters of real estate franchise system

55.0% Consolidation

(*2)

(*2)

0.3

0.6 Foreign exchange margin trade

97.0% Consolidation

0.0

1.8

0.1

0.1 Comprehensive logistics services
2.7 Consumer credit

Finance,
CENTURY 21 REAL ESTATE OF JAPAN LTD.
Realty,Insurance FX PRIME Corporation& Logistics i-LOGISTICS CORP.
Services

(*9)

32.6%

Equity

0.4

0.7

1.0

eGuarantee, Inc.

31.7%

Equity

(*2)

(*2)

0.0

0.0 B to B credit guarantee service

Century Medical, Inc.

100.0% Consolidation

0.1

0.2

0.1

0.2 Import and wholesale of medical equipment and materials(*11) (U.S.A.)

100.0% Consolidation

0.9

0.6

3.4

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

100.0% Consolidation

0.0

(0.3)

0.4

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

100.0% Consolidation

0.5

0.9

0.9

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

100.0% Consolidation

0.5

0.7

1.0

1.9 China trading subsidiary(*8) (Australia)

100.0% Consolidation

0.4

0.6

1.5

2.2 Australia trading subsidiary

Orient Corporation

Other

(*9)

EquityManufacturing and sale of optical communication devices,
electronic devices and assembly
Import/Export and wholesale of non-ferrous/light metals and recycle business1.0
mainly in metal products

0.2

ITOCHU International Inc.
ITOCHU Europe PLC.

Overseas
trading
ITOCHU Hong Kong Ltd.
subsidiaries

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

(*10)(*1) Net income attributable to ITOCHU is the figure after adjusting to U.S. GAAP, which may be different from the figures each company announcement.
(*2) Refer to the results announced by each corresponding company, as their announcement dates are on and after ITOCHU's announcement date of the first half 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 Prominent Apparel Ltd. and 30.0% of that of ITOCHU Finance (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, 2009, Century Leasing System, Inc. and Tokyo Leasing Co., Ltd. were merged to be newly named as Century Tokyo Leasing 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. and i-LOGISTICS CORP. have been acquired since this first quarter. The above figures of these two companies include the profit resulting from the obtaining control.
(*10) The above figure of Orient Corporation includes the related tax effect.
(*11) The above figure of ITOCHU International Inc. includes 80.0% of that of PrimeSource Building Products, Inc.

− 24 −

Performance of Group Companies (Impact of Net Income attributable to ITOCHU)
For the six months ended September 30, 2009 and 2008
Major Group Companies Reporting Profits(Unit: billion yen)Name

Segment(*12)

SharesNet Income attributable to
ITOCHU (*1)

2009
Apr-Sep

Reasons for Changes

Increase
2008
Apr-Sep (Decrease)[Domestic subsidiaries]
C.I.Kasei Co., Ltd.

(*9)

Che

97.6%

1.8

0.2

1.7 Increase due to net profit resulting from obtaining control in the first quarter

i-LOGISTICS CORP.

(*9)

Fin

97.0%

1.8

0.1

1.7 Increase due to net profit resulting from obtaining control in the first quarter

ITC NETWORKS CORPORATION

Ict

60.7%

0.9

0.6

0.3 Increase due to high commissions gained from communication carriers

ITOCHU CHEMICAL FRONTIER Corporation

Che

99.8%

0.9

0.9

(0.0)

ITOCHU PLASTICS INC.

Che

100.0%

0.8

1.2(0.4) Decrease due to reduced demand for materials of cars, electronics, and semiconductors

IMEX Co., Ltd.

Mac

100.0%

0.6

0.5

0.1 Almost the same level due to good performance in chartered ship business

ITOCHU Oil Exploration Co., Ltd.

Ene

98.3%

0.4

0.2

0.2 Increase in dividend received from Sakhalin I investment company

Almost the same level resulting from both factors, declined market prices and reduced demand in thefirst quarter, and price rise and demand recovery in the second quarter[Overseas subsidiaries]
ITOCHU Minerals & Energy of Australia Pty Ltd(*8) (Australia)

Ene

100.0%

14.5

51.5(37.0) Decrease due to price falls in metal resources and decreased sales volume in iron ore

PrimeSource Building Products, Inc.

(*11) (U.S.A.)

Che

100.0%

1.5

3.9(2.3) Decrease due to slowdown in housing market in North America(Cayman)Ene

100.0%

1.4

11.7(10.2) Decrease due to oil price fall, reduction of entitlement, yen's appreciation, and increased costs(Singapore)Ove

100.0%

1.0

1.0

(0.0)

ITOCHU Oil Exploration (Azerbaijan) Inc.
ITOCHU Singapore Pte, Ltd.

Almost the same level due to reduced transactions in construction materials despite steadytransactions in chemicals in Asia（*4) (Hong Kong)

Ove

100.0%

0.9

1.4(0.5) Decrease in equity in earnings of financial-related associated companies

ITOCHU Oil Exploration (BTC) Inc.

(Cayman)

Ene

51.4%

0.8

0.5

0.3 Increase in dividends received from BTC Co. (See Note2)

ITOCHU (China) Holding Co., Ltd.

（*5) (China)Ove

100.0%

0.7

1.9(1.2) Decrease due to reduced transactions in chemicals, coal, and iron ore（*8) (Australia)

Ove

100.0%

0.6

2.2(1.6) Decrease due to reduced profit from ITOCHU Minerals & Entergy of Australia Pty Ltd.(See above)(*11) (U.S.A.)

Ove

100.0%

0.6

4.3

(3.7)

（*4) (Hong Kong)

Fin

100.0%

0.4

1.3

FamilyMart Co., Ltd.

Fod

31.5%

3.1

3.5

(0.4) Decrease due to sales decrease from gradually weakened effect of Taspo cards, and bad weather

Brazil Japan Iron Ore Corporation

Ene

47.7%

1.0

-

1.0 Equity pick-up started since the first quarter as demand in iron ore is low

(*10)

Fin

32.6%

0.7

2.7

(1.9)

Decrease in gain on sales of investment securities in addition to decreased profit resulting from loanbalance reduction(Cayman)

Fod

20.0%

1.1

-

1.1

Equity pick-up started since the first quarter, and food manufacturing business mainly contributed tothe profit

ITOCHU Hong Kong Ltd.

ITOCHU Australia Ltd.
ITOCHU International Inc.
ITOCHU Finance (Asia) LTD.

Decrease due to low performance in housing material, equipment material, and construction
machinery businesses
Decrease due to the absence of dividends received associated with sale of asset held by funds for(0.9)
China bloc in the same period of the previous fiscal year

[Domestic equity-method associated companies]

Orient Corporation[Overseas equity-method associated companies]
TING HSIN (CAYMAN ISLANDS) HOLDING CORP.

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

NameReasons for Changes

Segment(*12)

Shares

ITOCHU Property Development, Ltd.

Fin

99.9%

(1.1)

1.0

(2.1)

JOI'X CORPORATION

Tex

100.0%

(0.5)

(0.1)

(0.4) Worsened due to market slowdown in apparels

Daishin Plywood Co., Ltd.

Che

99.4%

(0.4)

0.0

(0.4) Effect from reduced production due to weak domestic housing market

2009
Apr-Sep

2008
Increase
Apr-Sep (Decrease)[Domestic subsidiaries]
Deficit due to the absence of a large-scale condominium sale recorded in the same period of theprevious fiscal year as well as decreased sales volume

ITOCHU ELECTRONICS CORP.

Ict

92.1%

(0.3)

0.0

(0.3) Decrease due to unprofitable contracts occurred in system development projects

ITOCHU HOUSING Co., Ltd.

Fin

100.0%

(0.3)

0.1

(0.4)

Decrease due to the absence of a large-scale condominium sale recorded in the same period of theprevious fiscal year

[Overseas subsidiaries]
ITOCHU Petroleum Co., (Hong Kong) Ltd.

(Hong Kong)

Ene

100.0%

(0.8)

(1.8)

Improve due to the absence of loss recorded resulting from application of lower-of-cost-or-market
1.0 method for inventory in the same period of the previous fiscal year despite slowdown in the uranium
marketMCL Group Limited（*6) (U.K.)

Mac

100.0%

(0.7)

(0.2)

(0.5) Decrease due to loss recorded from withdrawal from retail business

CIECO Energy (US) Limited(U.S.A.)

Ene

100.0%(0.6)

0.3(0.9) Decrease due to price falls in oil and gas

ITC Nuclear Fuel Service (Cayman) Ltd.

(Cayman)Ene

100.0%

(0.5)

(0.1)

(0.4) Worsened sales profit due to slowdown in the uranium market

ITOCHU Europe PLC.

（*6) (U.K.)

Ove

100.0%(0.3)

0.1(0.3) Decrease due to reduced transactions in chemicals and automobiles(U.S.A.)Mac

100.0%

(0.3)

(0.3)

0.0

Japan Brazil Paper and Pulp Resources Development Co., Ltd

Che

25.9%

(1.4)

0.9

(2.3) Decrease due to price fall in pulp

Marubeni-Itochu Steel Inc.

Ene

50.0%

(0.9)

10.1

(11.0) Significantly worsened due to reduced demand for steel products both in Japan and overseas

Japan Medical Dynamic Marketing, INC.

Oｔｈ

30.0%

(0.7)

0.4

(1.1)

ITOCHU Automobile America Inc.

Almost the same level due to cost reduction despite the continuous decreased car sales resulting fromrecession in the U.S.

[Domestic equity-method associated companies]

Worsened due to disposal loss of inventory despite the profit associated with new acquisition in thesame period of the previous fiscal year(*12) 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 24 for detail of (*1)-(*11)
Note2 : Baku-Tbilisi-Ceyhan Pipeline Company− 25 −

Performance of Group Companies (Impact of Net Income attributable to ITOCHU)
For the three months ended September 30, 2009 and 2008
Major Group Companies Reporting Profits(Unit: billion yen)Name

Segment(*12)

SharesNet Income attributable to
ITOCHU (*1)

2009
Jul-Sep

Reasons for Changes

Increase
2008
Jul-Sep (Decrease)[Domestic subsidiaries]
C.I.Kasei Co., Ltd.

(*9)

Che

97.6%

0.8

0.0

0.8 Increase resulting from CGS and SG&A reduction

i-LOGISTICS CORP.

(*9)

Fin

97.0%

0.0

0.1

(0.1) Decrease due to reduced transaction of freight

ITC NETWORKS CORPORATION

Ict

60.7%

0.6

0.4

0.2 Increase due to high commissions gained from communication carriers

ITOCHU CHEMICAL FRONTIER Corporation

Che

99.8%

0.5

0.5

0.0 Almost the same level despite demand recovery

ITOCHU PLASTICS INC.

Che

100.0%

0.5

0.7(0.2) Decrease due to reduced demand for materials of cars, electronics, and semiconductors

IMEX Co., Ltd.

Mac

100.0%

0.4

0.4(0.0) Almost the same level due to good performance in chartered ship business

ITOCHU Oil Exploration Co., Ltd.

Ene

98.3%

0.0

0.1

(0.1) Almost the same level[Overseas subsidiaries]
ITOCHU Minerals & Energy of Australia Pty Ltd(*8) (Australia)

Ene

100.0%

7.9

36.3

Significant decrease due to price falls in metal resources in addition to retroactive adjustment of iron(28.4) ore price determined in the same period of the previous fiscal year, despite improved foreign
currency exchange gain/loss in energy sector

PrimeSource Building Products, Inc.

(*11) (U.S.A.)

Che

100.0%

1.0

2.5(1.5) Decrease due to slowdown in housing market in North America

ITOCHU Oil Exploration (Azerbaijan) Inc.

(Cayman)Ene

100.0%

1.0

(0.8)

1.8

ITOCHU Singapore Pte, Ltd.

(Singapore)Ove

100.0%

0.4

0.5(0.1) Decrease due to reduced transactions in construction materials

Increase in entitlement through concentrated deliveries in the second quarter, despite decrease in
overall contractual entitlement（*4) (Hong Kong)

Ove

100.0%

0.5

0.9(0.3) Decrease due to reduced transactions in chemicals, coal, and iron ore

ITOCHU Oil Exploration (BTC) Inc.

(Cayman)

Ene

51.4%

0.6

0.5

0.0 Almost the same level due to steady dividends received from BTC Co. (See Note2)

ITOCHU (China) Holding Co., Ltd.

（*5) (China)Ove

100.0%

0.5

1.0(0.5) Decrease due to reduced transactions in chemicals, coal, and iron ore（*8) (Australia)

Ove

100.0%

0.4

1.5(1.1) Decrease due to reduced profit from ITOCHU Minerals & Entergy of Australia Pty Ltd.(See above)(*11) (U.S.A.)

Ove

100.0%

0.9

3.4

(2.5)

（*4) (Hong Kong)

Fin

100.0%

0.0

1.3

FamilyMart Co., Ltd.

Fod

31.5%

1.9

2.0

(0.1) Decrease due to sales decrease from gradually weakened effect of Taspo cards, and bad weather

Brazil Japan Iron Ore Corporation

Ene

47.7%

0.9

-

0.9 Equity pick-up started since the first quarter as demand in iron ore is low

(*10)

Fin

32.6%

0.4

1.0

(0.7) Decrease in profit resulting from loan balance reduction(Cayman)

Fod

20.0%

0.6

-

0.6

ITOCHU Hong Kong Ltd.

ITOCHU Australia Ltd.
ITOCHU International Inc.
ITOCHU Finance (Asia) LTD.

Decrease due to low performance in housing material, equipment material, and construction
machinery businesses
Decrease due to the absence of dividends received associated with sale of asset held by funds for(1.2)
China bloc in the same period of the previous fiscal year

[Domestic equity-method associated companies]

Orient Corporation[Overseas equity-method associated companies]
TING HSIN (CAYMAN ISLANDS) HOLDING CORP.

Equity pick-up started since the first quarter, and food manufacturing business mainly contributed tothe profit

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

Name

Segment(*12)

Shares

ITOCHU Property Development, Ltd.

Fin

99.9%

(0.3)

(0.9)

0.6 Deficit due to reduced sales volume despite improvement of condominium and land sales

JOI'X CORPORATION

Tex

100.0%

(0.4)

(0.2)

(0.2) Worsened due to market slowdown in apparels

Daishin Plywood Co., Ltd.

Che

99.4%

(0.2)

0.0

(0.2) Effect from reduced production due to weak domestic housing market

2009
Jul-Sep

Reasons for Changes

2008
Increase
Jul-Sep (Decrease)[Domestic subsidiaries]

ITOCHU ELECTRONICS CORP.

Ict

92.1%

(0.3)

0.0

(0.3) Decrease due to unprofitable contracts occurred in system development projects

ITOCHU HOUSING Co., Ltd.

Fin

100.0%(0.1)

0.0(0.1) Decrease due to reduced sales and service fees from low brokerage performance

100.0%

0.0

(1.8)

1.8

[Overseas subsidiaries]
ITOCHU Petroleum Co., (Hong Kong) Ltd.

(Hong Kong)Ene

MCL Group Limited

Improve due to the absence of loss recorded resulting from application of lower-of-cost-or-market
method for inventory in the same period of the previous fiscal year（*6) (U.K.)

Mac

100.0%(0.6)

0.0(0.6) Decrease due to loss recorded from withdrawal from retail business

CIECO Energy (US) Limited(U.S.A.)

Ene

100.0%(0.4)

0.3(0.7) Decrease due to price falls in oil and gas

ITC Nuclear Fuel Service (Cayman) Ltd.

(Cayman)Ene

100.0%

0.6

0.2

0.4 Increase due to good performance despite slowdown in the uranium market

ITOCHU Europe PLC.

（*6) (U.K.)

Ove

100.0%

0.0

0.4(0.4) Decrease due to reduced transactions in chemicals and automobiles(U.S.A.)Mac

100.0%

(0.1)

(0.2)

0.1

Japan Brazil Paper and Pulp Resources Development Co., Ltd

Che

25.9%

(1.1)

0.0

(1.1) Decrease due to price fall in pulp

Marubeni-Itochu Steel Inc.

Ene

50.0%

(1.6)

5.4

(7.0) Significantly worsened due to reduced demand for steel products both in Japan and overseas

Japan Medical Dynamic Marketing, INC.

Oｔｈ

30.0%

(0.7)

0.4

(1.1)

ITOCHU Automobile America Inc.

Almost the same level due to cost reduction despite the continuous decreased car sales resulting fromrecession in the U.S.

[Domestic equity-method associated companies]

Worsened due to disposal loss of inventory despite the profit associated with new acquisition in thesame period of the previous fiscal year(*12) 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 below of page 24 for detail of (*1)-(*11)
Note2 : Baku-Tbilisi-Ceyhan Pipeline Company− 26 −

6. 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 ending March 31, 2010
1Q
2Q
3Q
4Q
Total
767.2
883.8
1,651.1

Gross trading profit

247.7

294.4

282.5

236.0

1,060.5

206.3

233.7

440.0

Selling, general and administrative expenses(178.9)(186.5)(204.7)(198.0)(768.1)(189.4)(192.6)(382.0)

Provision for doubtful receivables(0.7)(11.7)

(0.1)

(4.2)

(16.7)

(3.9)

(0.5)

(4.3)

Interest income

4.4

3.9

4.2

3.6

16.3

2.5

2.7

5.2

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

(9.0)

(9.4)

(18.4)

Dividends received

10.4

7.5

9.3

7.9

35.0

5.9

4.4

10.4

Gain (loss) on investments-net

5.9

(0.9)

(18.6)(9.5)(23.1)

2.8

2.4

5.2

Gain (loss) on property and equipment-net

1.1

(1.9)

(34.3)(10.3)(45.4)

2.3

(0.4)

2.0

Gain on bargain purchase in acquisition

-

-

-

-

-

9.1

-

9.1

Other-net
Income before income taxes andequity in earnings of associated companies

(2.2)

(0.3)

(7.1)

5.1

(4.5)

1.6

0.9

2.6

75.9

93.4

19.4

19.6

208.3

28.4

41.3

69.6

(31.3)(30.2)

(8.8)

(2.5)

(72.8)(15.9)(15.3)(31.2)

44.6

63.2

10.6

17.1

135.5

12.5

26.0

38.4

Equity in earnings (losses) of
associated companies

18.9

16.0

15.7

(9.4)

41.3

9.4

11.4

20.8

Net income

63.5

79.2

26.3

7.8

176.8

21.9

37.3

59.2

Net income attributable tothe noncontrolling interest

(1.0)

(2.6)

(2.8)

(5.1)

(11.4)

(1.4)

(2.4)

(3.9)

Net income attributable to ITOCHU

62.5

76.7

23.6

2.7

165.4

20.4

34.9

55.3

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 ending 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

45.6
7.1

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

24.0
4.0

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

61.7
1.2

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

57.6
26.1

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

21.9
16.7

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

35.7
9.4

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

51.8
8.1

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

22.3
0.5

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

29.6
7.6

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

171.3
18.5

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

Gross trading profit
12.7
9.9
10.7
8.8
42.0
7.9
8.9
Net income attributable to ITOCHU
2.3
4.3
(2.8)
(5.1)
(1.2)
2.0
0.3
Finance, Insurance & Logistics Services
Gross trading profit
5.5
6.2
5.4
5.1
22.3
4.7
4.9
Net income attributable to ITOCHU
1.2
2.6
(1.7)
(6.6)
(4.4)
2.5
0.9
RealtyGross trading profit
7.2
3.6
5.2
3.8
19.8
3.1
4.0
Net income attributable to ITOCHU
1.1
1.7
(1.1)
1.5
3.2
(0.5)
(0.5)
Other, Adjustments & Eliminations
Gross trading profit
11.0
9.0
4.2
8.8
33.0
6.7
4.7
Net income attributable to ITOCHU
5.4
(3.7)
1.7
(6.2)
(2.8)
(2.2)
(9.9)
Note:
In the first quarter of this fiscal year, SFAS160(codified ASC Topic 810) was applied. For detail, please refer to "New Accounting Pronouncements"on (11), page 22.

− 27 −

16.7
2.3
9.6
3.4
7.1
(1.0)
11.4
(12.1)