Tsuyoshi Hachimura, Chief Financial Officer of ITOCHU Corporation. Thank you very much for joining us. I'd like to now present the business results for the Q1 of FYE 2023. We have already made the material available from our website, so I'll be using the PowerPoint presentation material, starting with page three. This is a summary. Net profit attributable to ITOCHU was JPY 230.6 billion, making a strong progress toward the forecast of JPY 700 billion, achieving 33%. In Q1 last year, we had the record high number of JPY 267.5 billion. This time we have our second-highest net profit number. There is a positive impact of the high resource prices, but our strength, which is the non-resource businesses, our revenue and profit grew steadily despite the weaker yen and inflation.
The percentage of the non-resource business is about 70% based upon our portfolio. The core profit, excluding extraordinary gains and losses, we renewed all-time high in every single quarters, both in non-resource and resource sectors. At the bottom of this page, we are showing the asterisks. Single asterisk means the record high number in all the quarters. Double asterisk signify the record high for the Q1 results in consideration for the seasonality. If I compare the year-on-year, revenue, gross trading profit, operating income, and equity earnings, they are all higher than the year before. The extraordinary gains and losses of the previous year was very high. This number was lower by JPY 68 billion. As a result, the net profit was JPY 36.8 billion decrease. That is the 13.8% year-on-year decline.
Profits increased in energy and chemicals and food, but in other companies, since there was a major extraordinary gains in the previous year, the profit declined. Now, the key point of the Q1 is as follows. We are the last trading company to be reporting the business results. Our numbers are not too flamboyant, but they are very steady settlement numbers. There are three points. The progress was 33%, which is very strong. The second point is that the core profit, excluding the extraordinary gains and losses, were highest in terms of the quarter and is up by 17% year-on-year and ended at JPY 211 billion. The third point is that based on the net profit, the non-resource businesses account for 70% of the total. The non-resource businesses are making major contributions.
Among the non-resource businesses, there have been some differences at the beginning of the fiscal year. Those were the three characteristics of the Q1. Now, going to page five, it is a detailed explanation, and usually, we only show the year-on-year differences. In order to make year-on-year comparison, we have to really clarify the core profit because there are many extraordinary gains and losses. We are showing the extraordinary gains and losses number. For example, in Textile, year-on-year change was JPY 1.2 billion, and including extraordinary gains and losses, it's down by JPY 2 billion. That means that in terms of based on the net number, the core profit was JPY 0.8 billion. As for the details of each segment, they are shown from Page 12-Page 20.
They provide you with the details, and they are for your reference. We mention all the progress numbers. Please take a look at the progress number. In metals and minerals, there was high coal prices and a strong steel product business, and the progress rate was 38%. In general products and realty, there was high pulp prices and a strong domestic and foreign construction material business, and there was also a gain on sales of the properties, especially in North America, and the progress was 37%. Those two companies were the major drivers. In machinery, there was a favorable shipping market, which led to the charter income and a higher dividend from automobile-related investments and the strong dealer business.
In energy and chemicals, the oil prices were high, and there was a profitability in the energy trading, which improved. In food, North American grain-related companies were very strong, and the gain on group reorganization in North American oils and fats companies were strong. The progress rate was about 26%. In The 8 th Company, the FamilyMart, despite the cost increase, have improved the profitability, the earning power steadily, and the progress rate was at 23%. Those four companies are showing the good growth. In textile and ICT and financial business, the progress was above 10%, but they are stronger in the second half of the year. Going to page four, this analyzes the core profit. The positive impact of the high resource prices continued, but we saw a steady growth in non-resource.
The core profit was JPY 141.5 billion, and the resource core profit was JPY 67 billion. Those are both record high quarterly numbers. The core profit grew by JPY 31 billion year-on-year. The oil prices, coal prices were higher, and the resource trading was strong. Those accounted for about 45% or JPY 14 billion in resource sector. In non-resource, the highest record was achieved in general product and realty and machinery. That increased about JPY 9 billion. The difference is about JPY 8 billion. That includes the tax and expenses and foreign exchange revaluation. The top half shows the extraordinary gains and losses, which was JPY 87.5 billion last year, and it's JPY 19.5 billion in Q1 this year.
If you can go to page six, those are the major items. The first is in April, there was announcement that the CITIC Securities became the subsidiary of the CITIC Limited, and that led to the 20.5 billion yen revaluation gain. The impairment losses on the aircraft leased to Russian airlines, which is related to the ACG subsidiary of the Tokyo Century, was JPY 8.5 billion. Third is the gain on the group reorganization in North American oils and fats companies, JPY 3.5 billion. The reversal of the allowance for the overseas risk assets, JPY 3 billion. Total extraordinary gains and losses was JPY 19.5 billion. In comparison to last year's JPY 87.5 billion, the number is much smaller. Now, core profit changes.
Throughout the quarters, the highest numbers were achieved in metals and minerals, general products and realty, and machinery. Also the energy and chemicals had JPY 6.9 billion, and the energy sector is JPY 6.6 billion. This is due to the higher oil and LNG prices. Textile, the core profit was up by JPY 0.8 billion. Finally, we are seeing the recovery of the apparel sales after the alleviation of the COVID-19 impact. Unfortunately, our strength, which is food, ICT, financial business, and the 8th, those three segments are stronger in the second half, so they made a slow start. In ICT and financial business, CTC announced their earnings the other day. Their profit level is strong, and they are increasing the backlog, but they had higher expenses, so the progress was a bit lower.
They're likely to achieve the JPY 38 billion target. As you know, the FamilyMart, for them, the summertime is crucial. We have expectation from Q2 and Q3. In the 8th Company, the core profit was -JPY 3.6 billion, and JPY 3.3 billion negative number is due to the FamilyMart. As for the FamilyMart, under the new management team, their earning power is steadily improving, and the daily sales per store is up 3.6% year-on-year. At the same time, their utility cost, personnel cost, and system cost are increasing. This higher cost was shown on the Q1 results. The impact of the lockdown in China, and also the impact of the COVID-19 in Taiwan. Their equity pickup of overseas was lower.
We regularly do the impairment losses on stores. Two years ago, we have aggressively worked on this, and in comparison to that, last year's impairment loss was smaller. This impairment loss was higher this time. The Q1 number of The 8 th Company in the FamilyMart was down. As for the ICT and financial business, it's down by JPY 8 billion. I already talked about the CTC. In CONEXIO, which is a listed company, there was a decline in sales volume. The support value from NTT was revised. This slowed us down. The Hoken no Madoguchi and overseas consumer finance business, there were lower commission levels. Last year, we had the major gain on the management of the venture capital fund, and this was much lower.
Also there were some increase of the temporary expenses. Unfortunately, the net profit of ICT and financial business was JPY 10.6 billion. Now, another concern is a food segment. The pork-related businesses, such as HyLife and Prima Meat Packers, they are suffering from lower prices and higher costs. They are showing some weaknesses. As for Dole, in the packaged global food business, they are suffering from the higher logistic cost. In Asia, banana and pineapple production cost is rising, so lower profit were recorded. Those three companies are expected to improve in the second half. We are currently making efforts to enable that. I'd like to talk about the assumptions, page nine. Assumptions are not changed, but now the Q1 is over.
You see, the sensitivities are lower than the original assumptions or original announcement. For example, out of the JPY 31 billion profit, JPY 16 billion is due to the weaker yen. As you can see on this page, the average exchange rate was JPY 124.89 to the $1 . Compared to the year before, yen has weakened by JPY 15.96. This was an impact. For EMEA and OCIC, which invests in CITIC, those account for about JPY 10.6 billion, or 2/3. Other than that, we have smaller ones, which are related to the foreign exchange translation from the overseas businesses. Now, going back to cash flow, page seven.
We had a net cash inflow of JPY 236 billion due to the stable performance in operating revenues in minerals, metals and minerals, The 8th Company, and general products and realty companies. On this page, you see the cash flows from investing activities was minus JPY 55.7 billion. If you take a look at Page 21, we have the comparison of the investments in FYE 2023 Q1. The total of the major new investments was JPY 88 billion. Exit was JPY 15 billion. Net investment amount, JPY 73 billion. Out of JPY 88 billion, CapEx was about JPY 56 billion. The new investment is about JPY 32 billion. The biggest one is shown at the top, additional investment in ITOCHU Techno-Solutions, which was JPY 13 billion . As for the investments, excluding CapEx, so new investments, stay at JPY 32 billion.
In some cases, the timing of the cash out is delayed from Q1- Q2, or some of the investments were deferred to the later timing. If you look at the current pipeline, comparing the end of March and the end of June, we are not seeing the major changes. Based on that, if I may go back to page seven again. After deducting the changes in the working capital, the net, we had a net cash inflow of JPY 211 billion, which was at the all-time high in the first quarters. The core free cash flow resulted in the net cash inflow of JPY 138 billion.
As for the status of the cash and the investments, there are some things that we are not seeing clearly yet, and we are changing the forecast of the JPY 700 billion per year. Concerning this number, we have not yet used the JPY 30 billion buffer. Based on the fact that our progress rate is 33%, you might say that this is conservative, but there are a lot of uncertainties in the business environment. Based on that, we would like to closely watch the progress in Q2. Now concerning the balance sheet, you see the many asterisks on page eight, and the highest number were achieved. As for the total shareholders' equity, it was JPY 4,535.6 billion . The record high number.
The impact of the weaker yen was JPY 217 billion. Net DER, 0.53x . The ratio of the shareholders' equity to total assets, 34.8% were a record high. Under the uncertain environment, we have to make sure that we have a strong shareholder equity. We are strengthening our financial structure steadily. On Page 10, we are explaining the credit ratings. On July 27th, JCR upgraded ITOCHU to AA+. This is the first time since August 2018. We had the review meetings with the rating companies in July. R&I is currently reviewing our rating based on our financial results. They would give us the result of the review in August timeframe. In January this year, Moody's changed our rating to A3 positive.
Last month we had a review meeting. In this way, despite the uncertain business environment, the rating companies are evaluating our financial structure and strength and the capital strategies as well as strong earning power and cash generation power. Under those circumstances, we like to make sure that we can enhance our financial position and also focus on the return to the shareholders and the growth investments. We'd like to make sure that we work on all of those three. Our strength or attractiveness is the high efficiency management or high ROE, and we want to make sure that we keep the ROE at high level. Resource prices are staying at the high level and our business results do not fluctuate very much. It does not go up and down, but we are steadily accumulating our profits.
As for the each, segment, I did not go through the details, but those information are for your reference. Thank you for your attention.