In recent news, ITOCHU has sold part of shares in its affiliate, Tommy Hilfiger Japan (hereafter THJ) as ordinary shares to the licensing source, the Tommy Hilfiger Group BV (hereafter THG), and converting the remaining ordinary shares to preferred stock without no voting rights attached, transferring management rights to THG by doing so.

THJ is developing business in Japan selling Tommy Hilfiger brand products through licensing from THG. Since ITOCHU’s acquisition of a controlling stake in the company in December 2000, active business expansion has seen the value of the brand achieve phenomenal success in Japan, with THJ sales quadrupling over the last seven years of rapid growth.

While this has been happening, the brand holder, THG, has in recent years strongly promoted global strategies based on marketing and advertising of its brand in order to achieve improved brand equity on a global scale, including the Japanese market. As a part of this, THG approached ITOCHU in regards to a transfer of management rights for the Japanese market. From ITOCHU’s point of view, we believe that we have already attained our primary goals in regards to the brand, and in respect of THG’s strong desire, judged this to be the perfect opportunity for both companies; hence the transfer was made smoothly and speedily.

ITOCHU hopes to see THJ and the Tommy Hilfiger brand experience growth and development on a global level in the future, and hope to maintain our excellent relationship with the Tommy Hilfiger Group through general trading and through human resources support, including the members of the management team who produced such splendid growth results in the Japanese market.