CTC: Privatized in 2023Narrow moat

ITOCHU (8001) — moat facet

ITOCHU privatized its IT services subsidiary and its contribution has kept rising.

ITOCHU launched a tender offer for ITOCHU Techno-Solutions, known as CTC, in August 2023 and completed its privatization in December 20231. CTC, now 99.95% owned, contributed ¥60.6 billion in the year to March 2026, up from ¥50.5 billion2, and ¥12.6 billion in April-June 2026, up ¥2.8 billion3.

CTC contribution (¥ bn)50.5Yr to Mar 202560.6Yr to Mar 202612.6Apr-Jun 2026ITOCHU results presentations, May and August 2026
A fifth more in a year after privatization.

CTC is an IT services company serving Japanese corporations. It is the largest business in the ICT & Financial Business division, which earned ¥93.0 billion in the latest year4.

The privatization let ITOCHU pull CTC into its wider plans, including the planned investment in DENTSU SOKEN, another IT services company5.

The division's plan for the current year is ¥97.0 billion6. The financial side of the division includes HOKEN NO MADOGUCHI, an insurance agency, and POCKET CARD, a credit card company7.

The measure is CTC's contribution. Growth of about a fifth a year since privatization is what ITOCHU's claim of multiplied profits rests on.

Moat trajectory: Widening

Contribution rose from ¥50.5 billion to ¥60.6 billion and again in the latest quarter.

The number that tests this moat
Reported
CTC contribution
¥60.6bn against ¥50.5bn

The IT services business taken private in 2023; its growth supports ITOCHU's take-private method.

Source: ITOCHU business results and management plan, May 2026 ↗
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References
  1. ReportedITOCHU launched a tender offer for ITOCHU Techno-Solutions, known as CTC, in August 2023 and completed its privatization in December 2023.
    ITOCHU Corporation, Financial Information Report 2024 - including the privatization of ITOCHU Techno-Solutions (CTC). — FY to March 2024 · publ. 2024 · source ↗
  2. ReportedCTC, now 99.95% owned, contributed ¥60.6 billion in the year to March 2026, up from ¥50.5 billion, and ¥12.6 billion in April-June 2026, up ¥2.8 billion.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - results of major group companies by segment, with ownership, including FamilyMart, CTC, DESCENTE, NIPPON ACCESS, IMEA and Orchid (CITIC). — FY to March 2026 · publ. 14 May 2026 · source ↗
  3. ReportedCTC, now 99.95% owned, contributed ¥60.6 billion in the year to March 2026, up from ¥50.5 billion, and ¥12.6 billion in April-June 2026, up ¥2.8 billion.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  4. ReportedIt is the largest business in the ICT & Financial Business division, which earned ¥93.0 billion in the latest year.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  5. ReportedThe privatization let ITOCHU pull CTC into its wider plans, including the planned investment in DENTSU SOKEN, another IT services company.
    ITOCHU Corporation, presentation on the alliance with Dentsu, 31 August 2026 - investment of up to ¥215.2 billion for a 38% stake in DENTSU SOKEN. — August 2026 · publ. 31 August 2026 · source ↗
  6. ReportedThe division's plan for the current year is ¥97.0 billion.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  7. ReportedThe financial side of the division includes HOKEN NO MADOGUCHI, an insurance agency, and POCKET CARD, a credit card company.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - results of major group companies by segment, with ownership, including FamilyMart, CTC, DESCENTE, NIPPON ACCESS, IMEA and Orchid (CITIC). — FY to March 2026 · publ. 14 May 2026 · source ↗
Sources
Generated September 24, 2026