Good afternoon, everyone. I am President Ishii. Thank you very much for taking the time to join us today. I will now provide an overview of our business results for the first half of FY 2026. First, please turn to page two of the materials for the highlights of the first half results. Consolidated net profit for the first half was JPY 580.5 billion, an increase of JPY 80.2 billion year-on-year and a record high for any first half. Progress against our full-year forecast of JPY 950 billion reached 61%, indicating extremely strong performance. I would particularly like to highlight the recovery and further buildup of our core profit-generating capability. Core profit for the first half was JPY 504.5 billion, a substantial year-on-year increase of JPY 125.5 billion and a record high for any first half.
Progress against the full-year core profit forecast of JPY 900 billion was also a solid 56%. In addition to profit contributions from new investments, the earnings power of existing businesses is steadily strengthening and driving robust growth in core profit. Next, please turn to page three. In core profit by segment, every segment recorded an increase in the second quarter, as in the first quarter. Earnings were not concentrated in any particular business or field. Under our diversified portfolio, each segment strengthened its earning power. We believe this reflects the steady execution of our management approach, focused on broad-based growth. Please turn to page four, which shows quarterly core profit trends. Second-quarter core profit exceeded the strong first-quarter result and surpassed JPY 250 billion for the quarter alone, lifting us to a higher earning stage.
As shown in the chart on the right, the strong growth of our non-resource businesses, a key ITOCHU strength, is driving the expansion of our core profit-generating capability. We will continue to respond flexibly to changes in the business environment and accelerate the buildup of core profit that is resilient to economic fluctuations. Next, please turn to page five. A vital foundation supporting our resilient core profit is the sound management of our group companies. In the first half, 155 of our 249 existing group companies, slightly more than 60%, recorded higher profits year-on-year, and 81 of them achieved record-high first-half profits. Each company remains responsive to changing conditions on the front lines and steadily increases earnings almost every year, one step at a time, like climbing a mountain path. This broad-based growth, including among small and medium-sized group companies, is a major strength underpinning our core profit.
On the right are examples in which we deepened our understanding of the businesses over time, strengthened capital relationships, and drove growth through hands-on management. The accumulation of steady growth at each company has developed into a robust and extensive group company base that supports ITOCHU. Next, please turn to page six. I will explain the progress of our growth investments. In FY 2026, we expanded growth investment to JPY 1.5 trillion level to accelerate growth through a gear shift. In addition to making additional investments in Hitachi Construction Machinery and ITOCHU-SHOKUHIN, we decided to make sizable strategic investments in Aviation Capital Group, or ACG, to enter the aircraft leasing business, and in DENTSU SOKEN to further expand our digital business. At present, we have identified investments totaling approximately JPY 1.2 trillion, equivalent to around 80% of the annual plan.
While building near-term earnings through additional investments in existing businesses, we will also take strategic and proactive measures to achieve sustainable profit growth. These include investments in new growth fields with a medium-to-long-term perspective, while considering the creation of new core businesses and expansion into adjacent areas. Next, please turn to page 11 of the materials. As shown at the bottom of the page, we have left our FY 2026 full-year consolidated net profit forecast unchanged at JPY 950 billion. I understand that many of you may expect an upward revision, but as of today, we are maintaining the forecast. As I have explained, our earning power is clearly strengthening. Strategic, sizable investments and alliances are also progressing smoothly, and we have solid confidence in achieving the JPY 950 billion forecast for this fiscal year.
In the second half, we will further strengthen our management foundation to achieve a gear shift in earnings. We will maintain the merchant's mindset of steadily building value through each transaction while continuing to advance growth investments and rigorously implement earn, cut, prevent principles. Through these efforts, we aim to achieve sustained profit growth, with profits continuing to rise in the next fiscal year and beyond. We intend to reconsider the full-year forecast for this fiscal year after assessing changes in the business environment and the progress of various management initiatives during the second half. I will now explain the progress of each segment. Please also refer to page nine as appropriate. In textile, DESCENTE continues to perform strongly. Cooperation with ANTA, China's leading sports apparel company, has been successful, and DESCENTE has become established as a premium sports brand in China.
Even amid weak consumption, it continues to attract affluent customers and maintain strong performance. In footwear, new initiatives are also progressing, including the launch of new products designed at DESCENTE Korea's development base. Sports-related businesses other than DESCENTE are also expanding, resulting in strong overall performance. In machinery, the North American power business is performing strongly. In addition to higher electricity prices reflecting rising fuel costs, inquiries have increased, including requests for power supply from semiconductor plants and data centers. We expect further growth over the medium to long term. Hitachi Construction Machinery, in which we increased our ownership ratio, is also performing well and contributing to ITOCHU's earnings. In automobile trading, the business for Panama and Mongolia is strong, while conditions remain difficult in the Middle East. Key topics include our subscription for bond-type class shares in Tokyo Century and investment in ACG, aircraft leasing business.
Participation in ACG will allow us to further expand our aircraft industry value chain, including the aircraft parts business, Killick Aerospace, in which we have already invested, and the aircraft engine maintenance company in which we recently announced an investment. We also expect further joint investments with Tokyo Century and expansion into financing businesses. In metals and minerals, the Australian coking coal business, which was a major negative factor in the previous fiscal year, recovered operations and turned around in the first half.
Meanwhile, operations at the North American coking coal business have been suspended due to a suspected underground fire, and restoration work is underway. Coking coal operations remain challenging, but we are working intensively to resume operations as quickly as possible, including procuring the necessary equipment. Marubeni-Itochu Steel is also progressing steadily, supported by a recovery in the North American steel pipe and steel products markets protected by tariffs.
For new investments, we are exploring opportunities in mineral resources other than iron ore and coking coal, including copper, nickel, and aluminum. In energy and chemicals, in addition to recording a gain on the sale of CIECO Azer in the first quarter, the chemicals business posted record-high first-half profit in the second quarter against the backdrop of higher market prices associated with the Middle East situation. As a result, the segment as a whole achieved a high progress rate. The same applies to other general trading companies, and those with strong trading capabilities have secured solid earnings. The panic over supply concerns following the closure of the Strait of Hormuz has subsided through measures such as diversifying procurement sources, but commodity prices remain at high levels. Although a degree of normalization is expected in the second half, we continue to expect the chemicals business to contribute to earnings.
In food, in addition to the recovery in Dole's earnings, the North American oilseeds processing business is performing strongly amid firm biofuel market conditions. FamilyMart has implemented measures to strengthen sales, including enhanced promotions, but unfavorable weather reduced customer traffic. NIPPON ACCESS profits also remain below its normalized level due to unfavorable weather and higher logistics costs. Other group companies are generally performing well, and the segment overall is progressing steadily toward achieving its forecast. Going forward, we will pursue new developments in the food wholesale industry centered on ITOCHU-SHOKUHIN. In general products and realty, we completed the measures to stop losses in the Finnish pulp business in the previous fiscal year. Profit contributions are progressing from the strong performance of the U.K. tyre business, ETEL, and from new investments such as Sun Frontier Fudousan.
Leveraging its approximately 70% share of the market for tyres for leased vehicles, ETEL is capturing demand growth accompanying the shift from individual vehicle ownership to leasing, and it is increasing earnings. In North America, however, high mortgage rates continue to weigh on housing sales and construction, and our housing materials business is also struggling. Consequently, progress for the segment as a whole remains low. In businesses such as wooden fencing that use Canadian lumber, high tariffs on raw materials arising from U.S.-Canada trade issues are pressuring profitability. We will steadily implement measures such as changing sourcing regions and relocating production bases to minimize the impact. In ICT and financial business, progress in the first half was 50%, indicating steady performance.
As we strengthen our digital value chain strategy, core company CTC continues to perform strongly by capturing robust IT demand and is aiming for a fourth consecutive year of record-high profit. We also expect synergies from the alliance with DENTSU SOKEN, whose business domains are highly complementary. Overseas retail finance businesses and HOKEN NO MADOGUCHI Group are also performing steadily, and the segment overall remains firm. As this segment is weighted toward the second half, we expect further upside for the full year. In The 8th, in addition to higher earnings at FamilyMart, profit contributions from Informa and Seven Bank, in which we invested in the previous fiscal year, are progressing steadily. As the segment responsible for the investment in DENTSU SOKEN, The 8th will deepen collaboration with Dentsu Group and develop ideas to utilize our extensive retail data and advance our retail media strategy.
Next, please turn to page 15 of the materials. As shown at the top of the page, our shareholder returns policy remains unchanged from the initial announcement. We plan to pay a record-high dividend per share of JPY 44 or higher, marking the 12th consecutive annual increase, and to conduct record-high share buybacks of JPY 300 billion or more. Together, these measures are expected to result in a record-high total payout ratio of 64%. While placing priority on growth investments, we will implement optimal cash allocation. Finally, although this takes us back in the materials, please turn to page 12. So far this fiscal year, we have enhanced earning power at the front line through hands-on management while advancing strategic cross-sector growth investments. Through these efforts, we have worked to strengthen the earnings base of existing businesses and build new pillars of earnings.
Going forward, we will continue to accumulate growth investments, further strengthen the earnings base through hands-on management, and accelerate the proactive replacement of low-efficiency assets. In this way, we will achieve both accelerating profit growth and highly efficient management. We value the long-term relationships of trust we have built with investors. Our fundamental approach to generating earnings is to carefully nurture each business over time, much like cultivating a field, and to steadily grow earnings for our investors day by day, whatever the conditions. Some initiatives take time to bear fruit, and we hope you will assess our growth from a medium to long-term perspective. That concludes my remarks. Thank you for your kind attention.