Message from the CEO

FY2023 was a severe operating environment during which we faced climate change and geopolitical risks. However, by strengthening our business foundation and working to restore base profitability, we were successful in surpassing initial profit targets for FY2023. On the other hand, Blommer, which we added to the consolidated Group in 2019, saw a significant decline in profitability and we recorded extraordinary losses on projections that earnings would transition below business targets assumed at the time of acquisition. We take this result very seriously and, to address the issues that became evident through these results, we will steadily execute the structural reforms announced in March 2024 to improve profitability and grow the company into a core part of the Industrial Chocolate business.

FY2024 is the final year of our Mid-Term Management Plan, Reborn 2024. While we face an environment lacking transparency amid dramatic changes in raw material prices, foreign currency rates, and interest rates, we will strengthen business-axis operations and management and build a sound business foundation and management by continuing to implement measures aligned with the three basic policies outlined in the Mid-Term Management Plan, including adopting the FUJI ROIC to conduct profit management focused on capital efficiency and strengthening our supply chain. Through these measures, we will take a dynamic leap forwards towards the next mid-term management plan and beyond.

With a history going back over 70 years, the Fuji Oil Group has grown into a company that contributes to deliciousness and health for customers and society by creating innovative products in the four business domains of Vegetable Oils and Fats, Industrial Chocolate, Emulsified and Fermented Ingredients, and Soy-based Ingredients. Moving forward, we will fuse the technology and knowhow cultivated through those businesses to transcend business-axis boundaries and create new value that responds to food issues by providing cross-over solutions. In doing so, we will expand our opportunities for profit and achieve sustainable growth.

I will continue working towards making sustainable contributions for all our stakeholders, and I ask for the continued support of our shareholders and investors.