Fuji Oil : Financial Report

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 10, 2023

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2023
	(Under Japanese GAAP)
Company name:	FUJI OIL HOLDINGS INC.
Listing:	Tokyo Stock Exchange
Securities code:	2607
URL:	https://www.fujioilholdings.com/
Representative:	Mikio Sakai, President and CEO
Inquiries:	Takekuni Takamura, General Manager, Consolidation Accounting Group
Telephone:	[phone]

Scheduled date for ordinary general meeting of shareholders:	June 28, 2023
Scheduled date for dividend payment:	June 29, 2023
Scheduled date to file annual securities report:	June 28, 2023
Preparation of supplementary material on consolidated financial results:	Yes
Holding of consolidated financial results briefing:	Yes (For institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 - March 31, 2023)

(1) Consolidated operating results				(Percentages indicate year-on-year changes.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
	March 31, 2023	557,410		28.5	10,940	△27.1	9,690	△32.5	6,126	△46.7
	March 31, 2022	433,831		18.9	15,008	△16.2	14,360	△18.2	11,504	4.4

(Note) Comprehensive income	For the Fiscal year ended March 31, 2023:	¥18,811 million	[△39.8%]
			For the Fiscal year ended March 31, 2022:	¥31,254 million	[172.1%]
		Basic earnings	Diluted earnings	Return on			Ratio of		Ratio of
			ordinary profit		operating profit
			per share	per share	equity
				to total assets		to net sales
	Fiscal year ended		Yen	Yen		%		%		%
	March 31, 2023		71.27	－		3.1		2.2		2.0
	March 31, 2022		133.84	－		6.6		3.7		3.5
(Note) Share of profit (loss) of entities accounted for using equity method
			For the Fiscal year ended March 31, 2023:	¥1,007 million
			For the Fiscal year ended March 31, 2022:	¥144 million

(2) Consolidated financial position

		Total assets		Net assets		Equity-to-asset ratio	Net assets per share
	As of		Millions of yen		Millions of yen		%	Yen
	March 31, 2023		468,789		210,983		43.3	2,359.34
	March 31, 2022		416,617		189,495		44.7	2,168.13
(Reference) Shareholder's equity	As of March 31, 2023:	¥202,820 million
			As of March 31, 2022:	¥186,377 million

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents
	operating activities	investing activities	financing activities
	at end of fiscal year
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	7,594	△16,487	9,804	18,991
March 31, 2022	3,537	△18,807	9,387	15,915

2. Cash dividends

		Annual dividends per share		Total		Ratio of
						Payout ratio	dividends to
	First	Second	Third	Fiscal		dividends
	Total	(consolidated)	net assets
	quarter-end	quarter-end	quarter-end	year-end	(annual)
			(consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Fiscal year ended	－	26.00	－	26.00	52.00	4,475	38.9	2.6
March 31, 2022
Fiscal year ended	－	26.00	－	26.00	52.00	4,475	73.0	2.3
March 31, 2023
Fiscal year ending
March 31, 2024	－	26.00	－	26.00	52.00		28.0
(Forecast)

3. Consolidated forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 - March 31, 2024)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per
		owners of parent	share
	Millions of		%	Millions of	%	Millions of	%	Millions of	%	Yen
	yen		yen	yen	yen
Six months ending	265,000		△1.3	6,000	18.5	5,000	△6.8	10,000	209.8	116.33
September 30, 2023
Fiscal year ending	550,000		△1.3	16,500	50.8	15,000	54.8	16,000	161.1	186.12
March 31, 2024

* Notes

(1) Changes in significant subsidiaries during the period
(Changes in specified subsidiaries resulting in the change in scope of consolidation):	Yes

New: 1 company (Company Name) Fuji Oil International Inc.

Note: Please refer to "3. Consolidated Financial Statements and Key Notes (5) Notes to Consolidated Financial Statements (Basis of Consolidated Financial Statements)" on page 14 of the Accompanying Materials for details.

(2) Changes in accounting policies, changes in accounting estimates, and restatement
(i)	Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
(ii)	Changes in accounting policies due to other reasons:	None
(iii)	Changes in accounting estimates:	None
(iv)	Restatement:	None

Note: Please refer to "3. Consolidated Financial Statements and Key Notes (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)" on page 14 of the Accompanying Materials for details.

(3) Number of issued shares (common shares)

1. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2023	87,569,383 shares
As of March 31, 2022	87,569,383 shares

1. Number of treasury shares at the end of the period

As of March 31, 2023	1,604,642 shares
As of March 31, 2022	1,607,211 shares

1. Average number of shares outstanding during the period

Fiscal Year Ended March 31, 2023	85,963,933 shares
Fiscal Year Ended March 31, 2022	85,960,286 shares

• Consolidated financial results reports are exempt from review conducted by certified public accountants or an audit corporation.
• Explanations and other special notes concerning the appropriate use of business results forecasts
  The forward-looking statements such as result forecasts included in this document are based on the information available to the Company at the time of the announcement and on certain assumptions considered reasonable. Actual results may differ materially from the forecast depending on a range of factors. Please refer "1. Qualitative Information on Results for the Fiscal Year Ended March 31, 2023 (4) Future Outlook" on page 4 for details.

Accompanying Materials - Contents

1. Qualitative Information on Results for the Fiscal Year Ended March 31, 2023………………………………………..……	2
(1) Details of Operating Results………………………………………………………………………………………………	2
(2) Details of Financial Position………………………………………………………………………………………………	3
(3) Details of Cash Flows……………………………………………………………………………………………………	4
(4) Future Outlook.………………………………………………..…………………………………………………………	4
(5) Basic Policy on the Payment of Dividends and Dividends for the Fiscal Year under Review and Next Fiscal Year……	4
2. Basic Concept concerning the Selection of Accounting Standards…………………………………………………………	5
3. Consolidated Financial Statements and Key Notes……………………………………………………………….…………..	6
(1) Consolidated Balance Sheets………………………………………………………………………………….……….….	6
(2) Consolidated Statements of Income and Comprehensive Income……………………………………………..…………	8
Consolidated Statements of Income……………………………………………..……………………..……..…………..	8
Consolidated Statements of Comprehensive Income……………………………………………..………………………	9

1. Consolidated Statements of Changes in Equity………………………………………………………………………...... 10
2. Consolidated Statements of Cash Flows……………………………………………………………………….…………. 12

(5) Notes to Consolidated Financial Statements………………………………………………………………………………	14
(Notes Relating to Assumptions for the Going Concern) …………………………………………………….…………	14
(Basis of Consolidated Financial Statements) …………………………………………………………………………..	14

(Changes in Accounting Policies) ………………………………………………………………………………………. 14

(Changes in Presentation) ……………………………………………………………………………………….………	15
(Additional Information) ……………………………………………………………………………………….……….	15
(Business Combinations, etc.) ……………………………………………………………………………………….….	16
(Segment Information) ………………………………………………………………………………………….……….	18
(Per Share Information) ……………………………………………………………………………………….……….	19
(Significant Subsequent Events) ……………………………………………………………………………….……….	20

-1-

1. Qualitative Information on Results for the Fiscal Year Ended March 31, 2023

(1) Details of Operating Results

During the consolidated fiscal year under review, although the global economy began to move on from the impact of COVID-19 towards the normalization of economic activities, the future continued to lack transparency due to financial policy and other in response to global inflation.

Raw material prices for palm oil and soybeans, our main raw materials, rose in the beginning of the fiscal year due to the effect of the situation in Ukraine and Indonesian palm oil export restrictions. However, from the second half of the fiscal year, prices came down from those high levels and have been on a stable trend. Production costs increased due to rising logistics costs and labor costs as well as due to the effect of yen depreciation in Japan.

We formulated our new Mid-term Management Plan, Reborn 2024, for the three years from this fiscal year to FYE March 2025. This plan adopts the basic policies of "strengthening our business foundation", "strengthening global business management", and "enhancing sustainability". We are working to improve our corporate value by restoring basic profitability through initiatives such as optimizing sales prices, strengthening business-specific performance management, and market differentiation through sustainable procurement.

As a result of the above, the operating results for the fiscal year ended March 31, 2023 under review were as follows.

	Net sales	Operating profit	Ordinary profit	Profit attributable to
	owners of parent
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	557,410	10,940	9,690	6,126
March 31, 2022	433,831	15,008	14,360	11,504
Year-on-year change	+123,579	△4,068	△4,669	△5,377
(Year-on-year change rate)	(+28.5%)	(△27.1%)	(△32.5%)	(△46.7%)

The operating results by reported segment are shown below.

	Net sales			Operating profit
		Year-on-year change			Year-on-year change
	Millions of yen	Millions of yen	%	Millions of yen		Millions of yen	%
Vegetable Oils and Fats	203,448	+68,471	+50.7%	7,021		△380	△5.1%
Industrial Chocolate	228,513	+42,973	+23.2%	4,973		△2,574	△34.1%
Emulsified and Fermented Ingredients	91,164	+12,017	+15.2%	1,490		△126	△7.8%
Soy-based Ingredients	34,284	+116	+0.3%	1,277		△872	△40.6%
Adjustment	－	－	－	△3,822		△113	－
Total	557,410	+123,579	+28.5%	10,940		△4,068	△27.1%

(Vegetable Oils and Fats)

Net sales increased significantly due to higher sales prices to reflect rising prices for palm oil, our main raw material, and other raw materials. Net sales also rose on the launch of operations at a new plant in North America and on the effect of yen depreciation in foreign exchange rates. Despite the contribution of steady sales in Southeast Asia, operating profit decreased due to increased depreciation and other fixed costs associated with the launch of operations at a new plant in North America.

(Industrial Chocolate)

Net sales increased due to the effect of yen depreciation in foreign exchange rates and higher sales prices to reflect rising raw material prices. Despite the contribution of steady sales in Brazil, operating profit decreased on factors such as an increase of labor costs and other fixed costs and lower sales volume due to cocoa processing facilities problem on the second quarter in North America, in addition to lower sales volume in Japan.

(Emulsified and Fermented Ingredients)

Net sales increased due to higher sales prices to reflect higher raw material prices and the effect of yen depreciation in foreign exchange rates. Despite the higher sales volume of whipping cream, margarine and other in Japan, operating profit decreased due to lower sales volume in China associated with decreased demand caused by prolonged Zero-COVID policy.

(Soy-based Ingredients)

Net sales increased due to higher sales prices to reflect rising raw material prices despite the deconsolidation of a soy protein food company in China in the previous fiscal year. Despite the contribution of the higher sales of functional ingredients in Japan, operating profit decreased due to a decrease in sales volume of soy protein ingredients.

-2-