Hello everyone. I am Naka, CFO and CXO. Thank you very much for joining us today. Today, I will explain our FY 2026, the first quarter results. First, please turn to page two. For the first quarter FY 2026, consolidated net profit came to JPY 293.8 billion, and core profit to JPY 249.5 billion. Core profit increased by 38% year-on-year, or JPY 68.5 billion. Extraordinary gains and losses, on the other hand, declined by JPY 58.5 billion year-on-year. In FY 2025, gains were concentrated in the first quarter, including approximately JPY 88 billion from the sale of C.P. Pokphand, in addition to gains from the sales of Provence Huiles and JAMCO . In contrast, this fiscal year, such gains were limited to JPY 44.5 billion, mainly from the sale of oil interests in Azerbaijan. Even so, growth and core profit more than offset that decline, resulting in a year-on-year increase of JPY 9.8 billion in consolidated net profit.
As shown on the slide, both consolidated net profit and core profit reached record highs for the first quarter. Moreover, these were not only record highs for the first quarter, but also the highest profits ever recorded for any quarter. In the first quarter, core profit was exceptionally strong, up 38% year-on-year, with all segments posting profit growth. Non-resource core profit came to JPY 211.5 billion, a record high for the first quarter, exceeding JPY 200 billion for the first time. To strengthen our earnings base, we plan to make investments of approximately JPY 1.5 trillion in this fiscal year. This slide shows the progress toward the new investments of JPY 1.2 trillion, excluding approximately JPY 300 billion in CapEx. Investments executed in the first quarter totaled approximately JPY 312 billion, together with approximately JPY 360 billion in approved projects, including the investment in Aviation Capital Group, ACG.
Announced today, the total amount already executed or committed has reached approximately JPY 670 billion. This means that progress has already exceeded 50% and we are steadily building up our investments. As for shareholder returns, we have decided to proceed with the JPY 300 billion share buyback announced at the beginning of the fiscal year. This slide shows FY 2026, the first quarter business results, and the breakdown of the increase in profit. On the far left, core profit for the first quarter FY 2025 is shown at JPY 181 billion. Moving to the right, the impact from resource prices was a positive JPY 4 billion, while Forex had a positive impact of JPY 12 billion, as the average exchange rate during the quarter was approximately JPY 15 weaker against the U.S. dollar. With regard to the impact from the Middle East situation, our initial plan assumed a negative impact of JPY 7.5 billion for the full year.
There were negative factors such as higher costs resulting from the rise in energy prices and a slowdown in Middle East-related business. On the other hand, improved profitability due to higher market prices for basic chemicals also contributed, and as a result, the total impact from the Middle East situation in the first quarter was a positive JPY 5 billion. For the turnaround of underperforming businesses in the previous fiscal year, we are planning a full-year contribution of JPY 25 billion, and this is progressing as planned. As for the contribution from new investments executed in FY 2025 or in April 2026 contributed JPY 11 billion to profit. On the far right, organic growth, excluding such factors as Forex and the impact from the Middle East situation, contributed a profit increase of JPY 31.5 billion.
The total of seven businesses listed as major items accounted for more than JPY 20 billion of profit growth through organic growth. As a result, the first quarter core profit came to JPY 249.5 billion, and consolidated net profit, including extraordinary gains, came to JPY 293.8 billion. At the top of the slide, core profit is shown as having increased by JPY 68.5 billion, or 38% year-on-year. On the left side of the slide, resource prices, Forex, and the impact from the Middle East situation, what we would call market and Forex-related factors, accounted for a total profit increase of JPY 21 billion. On the other hand, on the right side of the slide, the combined JPY 47.5 billion increase reflects a solid and sustainable improvement in our earnings base.
As shown by the blue box, core profit increased year-on-year in all nine segments, including not only our eight division companies but also Others, Adjustments & Eliminations , which mainly comprises CITIC. In addition, six division companies, excluding Metals & Minerals and General Products & Realty, achieved record-high core profit. Although this is not shown on the slide, every operating division also posted year-on-year profit growth. We often describe our approach as consistent management, and I believe these results show that we are successfully putting that approach into practice across all division companies and operating divisions by making our strong areas even stronger, while also steadily lifting the level of the other areas. These two graphs show on the left our first quarter core profit for the past five years and on the right, our quarterly core profit from the first quarter FY 2025 through the first quarter FY 2026.
We are confident that we have a well-diversified portfolio across business areas and a solid earnings base with low volatility. However, I believe core profit may have appeared somewhat stagnant for a while. This time, core profit has grown significantly, and we believe these results demonstrate that we have entered a new earnings stage. Next, please turn to page nine. This time, we have partially revised our full-year forecast by segment. We have revised Machinery upward by JPY 40 billion, from JPY 180 billion to JPY 220 billion, and Energy & Chemicals upward by JPY 36 billion, from JPY 75.5 billion to JPY 111.5 billion. On the other hand, we have revised Others, Adjustments & Eliminations downward by JPY 76 billion. Our company-wide forecast remains unchanged at JPY 950 billion. For Machinery, profit contributions from our investment in ACG, which we announced today, will begin from the fourth quarter.
In addition, as part of the series of transactions for the acquisition of ACG, we expect to record an extraordinary gain in connection with our subscription to Tokyo Century's bond-type class shares. Furthermore, reflecting the upward revision at Hitachi Construction Machinery, as well as the solid performance of the other businesses, we have revised the full-year forecast upward by JPY 40 billion. The breakdown is approximately JPY +8 billion in core profit and approximately JPY +32 billion in extraordinary gains. For Energy & Chemicals, we realized a gain of JPY 34 billion on the sale of CIECO Azer in the first quarter. In addition, reflecting the exceptionally strong progress in the Chemicals business, we have revised the segment upward by JPY 36 billion.
On the other hand, for Others, Adjustments & Eliminations , we have reduced the portion corresponding to extraordinary gains and other items that were incorporated into this segment at the beginning of the fiscal year. Next, please turn to page 11. I would like to explain the investment in ACG and our subscription to Tokyo Century's bond-type class shares, both of which we announced today. We also held a joint briefing from 4:00 P.M., but here I would like to explain this transaction from ITOCHU's perspective. In the leasing business, including aircraft leasing, building up assets is essential for profit growth. Accordingly, I believe this business is generally seen as one with relatively low capital efficiency. I would like to explain why we made this investment decision under such circumstances. First, this transaction involves ITOCHU and Tokyo Century each holding a 50% stake in ACG.
ITOCHU holds a 30% stake in Tokyo Century, and including the indirect 15% interest held through Tokyo Century, we will be able to hold an effective 65% interest in ACG, directly and indirectly, in an asset-light form through the equity method. ACG is the world's ninth-largest aircraft leasing company and has the strength of being able to place direct orders for new aircraft with Airbus and Boeing. In order to maintain and strengthen this competitive advantage going forward, further expansion of its business scale is necessary. As a wholly owned subsidiary of Tokyo Century, ACG was subject to certain constraints in terms of risk tolerance and capital efficiency.
Although ACG has funded itself almost entirely on a standalone basis, by having both ITOCHU and Tokyo Century account for it under the equity method, we believe those constraints will be eased, enabling ACG to build up its asset base and expand the scale of its business. The second point concerns our subscription to JPY 10 billion in bond-type class shares. As ACG is moving from being a consolidated subsidiary to an equity-method affiliate, Tokyo Century reviewed its capital structure and funding arrangements. As a result, from the standpoint of securing financial soundness by maintaining and enhancing its credit rating level, Tokyo Century decided to issue bond-type class shares, and ITOCHU will subscribe to them. ITOCHU's equity ownership in Tokyo Century will remain unchanged at 30%. However, through the subscription to the class shares, our ratio based on the number of shares will exceed 1/3, which will reduce tax expenses.
As a result, an extraordinary gain will be recorded, and going forward, this will generate annual profit contributions of more than JPY 5 billion. Please note that this is the result of our subscribing to the bond-type class shares issued at Tokyo Century's own decision. From our perspective, we view this as, in substance, a package deal together with the investment in ACG. In addition, ITOCHU will pay Tokyo Century approximately JPY 310 billion for the purchase of ACG shares. Tokyo Century will use those funds for investments in and acquisitions of assets related to FMV leases, leases for IT equipment and the like, as well as data centers, storage batteries, overseas mobility, and other areas. We will also be able to benefit from 30% of the profits generated by these initiatives. Through this series of comprehensive measures, ITOCHU and Tokyo Century will further evolve their collaboration.
As for the profit targets of JPY 16 billion for FY 2026, JPY 30 billion for FY 2027, and JPY 50 billion in around five years, these figures relate only to the Aerospace business. Of the JPY 16 billion for FY 2026, JPY 3 billion will come from ACG profit contributions, reflecting only the fourth quarter. The FY 2027 target includes JPY 16 billion, and the five-year target includes the over JPY 20 billion from ACG. A profit in the over JPY 20 billion in five years may appear insufficient to reach an 8% ROI. However, as stated in the materials, by positioning ACG as the core of the platform, we believe we can accelerate growth in adjacent businesses, and that including those spillover effects, an 8% ROI can be more than adequately achieved in around five years.
I n addition, t he reduction in tax expenses associated with profit contributions from Tokyo Century resulting from our subscription to the bond-type class shares is not included in this return estimate. Therefore, when considered together as one package, we believe an 8% ROI can be achieved even before five years, and ultimately, we determined that this investment has sufficient potential to achieve an ROI of 10%, and therefore we decided to proceed with this transaction. That concludes my explanation. Thank you for your attention.