July 31, 2009
ITOCHU Corporation

Highlights of Consolidated Financial Results for the First Quarter of FY 2010 (U.S. GAAP)(Unit: billion yen, (losses, decrease))

Financial topics for the First Quarter of FY 2010

・ "Net income attributable to ITOCHU (See Note 1)" decreased by \42.0 bil. compared with the previous 1st Q to \20.4 bil due to global recession and demand shrink.
・ The income of "Ener., Met. & Min." much decreased due to price falls in metal resource / energy and declined sales volume in iron ore, and generally financial results remainedlow from the previous 4th Q. Especially, Dec. closing companies were affected by recession from Jan. to Mar. in this 1st Q. Ratios of "Net income attributable to ITOCHU" bysector were Natural resource / energy, 27%; Consumer, 64%; and Others 9%. In Consumer-related sector, steady growth recorded in Food besides gain on sales on securities.
・ ITOCHU Corporation acquired C. I. Kasei Co., Ltd. and i-LOGISTICS CORP. and invested in TING HSIN HOLDING CORP. to strengthen its group's earning capacity.
・ ITOCHU stockholders' equity increased by \96.2 bil. to \945.6 bil. due to improved Foreign currency translation adjustments and Unrealized holding gains on securities
through yen's depreciation and recovery of stock market compared with the previous fiscal year end. NET DER improved by 0.2 points to 1.9 times.

Components of Net Income
attributable to ITOCHU(Note 1) From this 1st Q SFAS160 has been applied. For details, please refer to "New Accounting Pronouncements" on (9), page 15 of "Consolidated Financial Results for the First Quarter of FY 2010 ending March 31, 2010"(Note 2) 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 have been restated. In addition, "Total trading transactions", which is in accordance with Japanese accounting practice, for the same period of the previous fiscal years has reflected the figures restatement in an overseas
subsidiary operating international trade of crude oil and petroleum products.

Consolidated Financial
Results of Operations

Increase (Decrease)

Summary of changes from the same periodof the previous fiscal year

1st Quarter
FY 2010

1st Quarter
FY 2009

767.2
206.3

728.9
247.7

38.4
(41.3)

5.3%(16.7%)

・ Revenue: Increase in Energy, Metals & Minerals due to an acquisition of ITOCHU(189.4)
(3.9)
(6.5)
5.9
(0.6)
2.8
2.3
10.8
(178.0)28.4(15.9)
12.5
9.4
21.9

(178.9)
(0.7)
(7.3)
10.4
3.0
5.9
1.1
(2.2)
(171.8)75.9(31.3)
44.6
18.9
63.5

(10.4)(3.2)
0.8(4.4)
(3.6)
(3.1)
1.2
13.0
(6.2)
(47.5)
15.4(32.1)(9.5)(41.6)

5.8%(11.1%)(42.7%)
3.6%(62.6%)(49.3%)(72.0%)(50.4%)(65.6%)・ Gross trading profit: (Incr/Decr fields & business)

(1.4)
20.4

(1.0)
62.5

(0.4)
(42.0)

38.0%(67.3%)%

1st Quarter
FY 2010

1st Quarter
FY 2009

Increase(Decrease)

62.6

52.8
45.1

34.7 32.9

Parent company
Group companies

Net income attributable to ITOCHU

21.1
18.4
1.3
(20.4)
20.4

45.1
52.8
4.0
(39.5)
62.5(24.0)(34.5)(2.7)
19.1(42.0)

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

9.848%

35.3
57%(25.5)

1st Quarter
FY 2010

1st Quarter
FY 2009

Overseas trading subsidiaries

Consolidation adjustments

Outlook for FY 2010

: Parent company: Group companies: Overseas trading
subsidiaries: Consolidation
adjustments

Components of Net income attributable to ITOCHU

19.2 22.4
3.7

21.1 18.4
1.3

16.4
4.4 2.2

4.1(15.9)

4.0(20.4)(23.8)

FY06/1Q

FY07/1Q(39.5)
FY09/1Q

FY08/1Q

FY10/1Q(*) "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.

(Disclosed on April 30, 2009)

Progress(%)

Revenue
Gross trading profit
Selling, general andadministrative expenses
Provision for doubtful receivables

Net interest expenses
Dividends received
Net financial income (expenses)

Gain on investments-net
Gain on property and equipment-net (i)Other-net
Total other expenses
Income before income taxes and equityin earnings of associated companiescad

Income taxes
Income before equity in earnings ofassociated companies abc
Equity in earnings of associated companies

Net income
Less: Net income attributable to thenoncontrolling interest

Net income attributable to ITOCHU

Total trading transactions
Gross trading profit ratio

2,192.5
9.4%

Adjusted profit

3,064.4
8.1%

25.8

90.7(871.9)
1.3%(64.9)(28.5%)Net income attributable to ITOCHU and Adjusted profit

150(71.6%)

Ener., Met. & Min. / Decr: Due to price falls in metal resources and energies as wellas decrease in sales volume of iron ore and sales volume from the oil fields owned
despite increase from an acquisition of ITOCHU ENEX CO., LTD.
Chem., FP & GM / Decr: Due to price falls in chemicals since last autumn, theslowdown in housing market in Japan and U.S., and deconsolidation of a
subsidiary in U.S. despite increase from an acquisition of C. I. Kasei Co., Ltd.
Food / Incr: Due to increased sales volume in food distribution business andimproved profitability in fresh food materials
Fin., Rlty, Insur. & LS / Decr: Due to the absence of a large-scale condominium salein the same period of the previous fiscal year

・ SG&A: mainly due to increase in pension cost resulting from worsened pension
asset management in addition to increase brought by the acquisition of ITOCHUENEX CO., LTD.

・ Provision for doubtful receivables:

(i)

21.2%

(785.0)(5.0)(35.0)
25.0(10.0)

24.1%
77.7%
18.6%
23.8%
(5.8%)

0-(800.0)
175.0(85.0)
90.0
56.0
146.0

22.2%
16.2%
18.7%
13.9%
16.8%
15.0%

(16.0)
130.0

9.0%
15.7%

: Adjusted profit: Net income attributable

122.9
47.90
FY08//1Q

・ Gain on property and equipment-net:
Net gain on sales of property and equipment +1.3

from LNG-related investments

62.5
20.4 25.8

FY07/1Q

・ Gain on investments-net:

FY09/1Q

10,500.0
9.3%

Textile10.9%

Dividend Information(Per Share)

FY10/1Q

15 yen[some profit related to a merger +0.8] / Marubeni-Itochu Steel Inc. -4.0
Orient Corporation -2.1 / Equity-method associated companies of IMEA -1.4
Japan Brazil Paper and Pulp Resources Development Co., Ltd. -1.3Interim(Planned)

7.5 yen

1st Quarter
FY 2010

1st Quarter
FY 2010

1st Quarter Increase
FY 2009 (Decrease)

(1.4)

0.8

1st Quarter Increase
FY 2009 (Decrease)

9.8[Net income attributable to ITOCHU] Summary of changes
from the same period of the previous fiscal year

(31.9)(5.2)(37.2)(Group companies)
Group co. reporting profitsGroup co. reporting losses

29.3(10.9)
18.4

58.8
(5.9)
52.8

(29.4)(5.0)(34.5)

Decrease due to reduction of sales
volume in iron ore and price falls inmetal resources

ITOCHU Oil Exploration(Azerbaijan) Inc.

(C)

0.5

12.4

Decrease due to reduction of sales
volume and lower oil price

Marubeni-Itochu Steel Inc.（MISI）

0.7

4.7

Decrease due to reduced demand
for steel products in and out ofJapan

1.2

1.5

Decrease due to impairment loss ofstores despite the steady growth indaily sales and number of customers(E)

FamilyMart Co., Ltd.

(E)

(Major Group Companies Reporting Losses)

ITC Nuclear Fuel Service(Cayman) Ltd.

(C)

(1.2)

(0.3)

ITOCHU Petroleum Co.,
(Hong Kong) Ltd.

(C)

(0.8)

(0.1)

P/L of Group Companies Reporting Profits / Losses
72.3
41.6

Group co. reporting losses

Financial Position

30.7

1.9(0.6)
1.3
June 302009

4.4(0.4)
4.0
March 312009

Decrease due to worsened sales
profit resulting from declining
uranium market prices
Decrease due to worsened sales
profit resulting from declining
uranium market prices

(2.5)
(0.2)
(2.7)

63.2
56.9
31.3

26.0

(4.7)
FY06/1Q

Increase(Decrease)

67.0

37.0

(4.6)
FY07/1Q(5.3)
FY08/1Q(6.3)
FY09/1Q

19.7: Group companies
reporting profits: Group companiesreporting losses: Net P/L(11.5)
FY10/1Q

Summary of changes from the previous fiscal year end

Outlook forMarch 31, 2010

Total assets / Increase
Increase: "Trade receivables", "Inventories", and "Net property and equipment" resulting from an acquisition ofC. I. Kasei Co., Ltd. in Chemicals, Forest Products & General Merchandise as well as, in Food, a new investment inan enterprise group operating food/distribution business in China and Taiwan
ITOCHU stockholders' equity / Increase
Increase: Net income attributable to ITOCHU, "Foreign currency translation adjustments" (yen's depreciation),"Unrealized holding gains on securities";Decrease: Dividend payment;"NET DER" improved by 0.2 points to 1.9 times

5,500.02,400.0
1,900.0
950.0
under 2.0

1st Quarter
FY 2010

1st Quarter
FY 200943.2(18.1)

5.6

32.3(26.7)

Chemicals, Forest Products& General Merchandise

23.6

29.7

(6.2)

2.2

5.2

(3.0)
7.3

2.0

2.3

(7.7)
(42.0)

(2.2)
20.4

62.5

Operating: Net cash-inflow mainly due to progress in collection of Trade receivables in the consumer and retailrelated sector and in ICT, Aerospace & Electronics

parent company

25.1

(4.3)

6.7

202.1

Energy, Metals & Minerals(41.3)

70.0

402.9

Decrease due to decreased gains on sales of investments

11.0

76.7

605.0

(1.4)

247.7

Operating activities

Condition of Cash Flows for FY 2010

Cash and cash equivalents

0.9

6.7

Increase(Decrease)

and Taiwan, and additional investments related to acquisitions of C. I. Kasei Co., Ltd. and i-LOGISTICS CORP.

(0.6)

206.3

1st Quarter
FY 2009

31.8

0.4

5.4

1st Quarter
FY 2010(66.9)

28.2

(4.8)

Cash Flows(35.1)

28.7

5.7

Net debt-to-equity ratio (times)

5,192.1
188.7
2,389.3
20.8
1,756.8
44.0
849.4
96.2
2.1 improved 0.20

Financing activities

ICT, Aerospace & Electronics

13.0

ITOCHU stockholders' equity

5,380.8
2,410.1
1,800.8
945.6
1.9

Investing: mainly due to a new investment in an enterprise group operating food/distribution business in China

(1.2)

1.9

Total assets
Interest-bearing debt
Net interest-bearing debt

(36.1)

0.8

Total

63.2
(6.3)
56.9

15.2

(38.4)

(0.4)

12.7

Total

31.3
(11.5)
19.7

Increase(Decrease)

6.6(74.5)(8.9)

7.9

Group co. reporting losses

1st Quarter
FY 2009

ITOCHU Minerals & Energyof Australia Pty Ltd (IMEA) (C)Investing activities

20.4

80.6

Group co. reporting profits

1st Quarter
FY 2010(Major Group Companies Reporting Profits) (C): Consolidated subsidiary, (E): Equity-method associated company

Significant decrease due to the absence of gains on sales of investments in the same
period of the previous fiscal year in addition to decreased gross trading profit

11.5

82.5

P/L of Group Companies
Reporting Profits / Losses(5.1%)(18)
235(9.0)

Machinery

FoodTotal

68.1%
284
133417

Summary of changes from i
the same period of theprevious fiscal year i

1st Quarter
FY 2009(Note 4) Please refer to "Summary of changes from the same period of the previous fiscalyear" in "Consolidated Financial Results of Operations"

Decrease due to low performance in automobile & construction machinery despite increased equity in earnings of someprofit related to a merger of assoc. co. and the absence of impairment loss on investments in the previous 1Q

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

Number of group co. reporting losses

Total of Overseas trading subsidiaries

Annual(Planned)

Net income attributable to ITOCHU

21.8

Number of group co. reporting profits

63.0%
266
156422(Overseas trading subsidiaries)

・ Equity in earnings of assoc. co.: Century Tokyo Leasing Corporation

Gross trading profit (Note 4)

20.4

Share of group co. reporting profits

1st Quarter
FY 2010Group Companies

20.9%(Note 3) For the effects on Consolidated Statements of Income and Consolidated Balance Sheets in this 1st Q resulting from acquisitions and obtaining control of main group companies in this 1st Q and in the previous FY,
please refer to "(Note 1)", "(Note 2)" and "(Note 3)" in "Qualitative Information & Consolidated Financial Statements" on page 5 of "Consolidated Financial Results for the First Quarter of FY 2010 ending March 31, 2010"

Operating Segment
Information(Note 5) From this quarter, the criteria to count group companies is changed so that the number ofcompanies directly invested by ITOCHU or its overseas trading subsidiaries are shown above.

Group co. reporting profits

236.0

Increase(Decrease)

・ Other-net: Gain on bargain purchase +9.1, Decreased hedging cost for dividends

90.7

65.7

・ Net financial income (expenses):

Share of Group Companies
Reporting Profits

Total of Group companies

Remeasurement loss for pre-existing interests resulting from obtaining control -3.5,
Impairment loss on investments +4.5, Net gain on sales of investments -5.5,
Loss on business disposals and others +1.4

to ITOCHU a85.6

100

FY06/1Q

ICT & Aero., Elec. / Incr: Due to expansion of domestic mobile phone business

Net interest expenses +0.8 (decline in US dollars interest rate)
Dividends received from LNG-related investments -4.6

Adjusted profit = Gross trading profit + SG&A expenses + Net financial income+ Equity in earnings of associated companies

29.3 48.6

Textile / Decr: Due to market slowdown in textile materials, fabrics and apparels
despite the increase from an acquisition of SANKEI CO., LTD.
Mach. / Decr: Due to poor transactions in automobile and construction machinery
businesses

975.0

Increase due to allowance for doubtful receivable(Reference)

50

ENEX CO., LTD., despite price falls in metal resources and energies, while
decrease in Machinery due to poor market in automobiles; and in Chemicals,
Forest Products & General Merchandise due to chemical price falls(0.3)

Financing: Net cash-outflow (net repayment) due to dividends payment and repayments of a part of debt by the

Significant decrease due to decreased dividends received from LNG-related investments resulting fromoil price fall and decreased equity in earnings of assoc.co. in addition to decreased gross trading profit

Decrease due to decreased gross trading profit and worsened equity in earnings (losses) of
associated companies despite profit from obtaining control of C. I. Kasei Co., Ltd.
Significant increase due to gain on sale of an investment in addition to increase in grosstrading profit
Decrease due to worsened gross trading profit despite profit from obtaining control ofi-LOGISTICS CORP.
Decrease due to yen's appreciation, worsened gross trading profit, and increase in pension
cost

Major Indicates
Foreignexchange(Yen/US$)Mar. closing

Average(Apr.-Jun.)

June 30th

Dec. closing

97.51
Jun-09Average(Jan.-Mar.)

March 31st

96.0198.23

1st Quarter
FY 2009(4.68) Interest, JPY TIBOR 3M, average (Apr.-Jun.)

0.596%

0.841%(0.245%)98.23(2.22) Interest, US$ LIBOR 3M, average (Jan.-Mar. ）109.18(18.25) Crude oil (Brent),
average
7.20(US$/BBL)

102.19Mar-0990.93
Mar-09

1st Quarter
FY 2010

ChangesDec-0891.03(Note 6) "ITOCHU" in items of A/C on the consolidated financial statements represents ITOCHU Corporation.

Major Indicates

Changes1.240%

3.289%(2.049%)(Apr.-Jun.)

59.75

122.95(63.20)(Jan.-Mar.)

45.67

96.48

(50.81)