Message from the CEO

FY2022 presented a difficult operating environment. Escalating geopolitical risks triggered rises in raw material and energy prices while inflation and rapid interest rate hikes gave way to concerns of a global economic slowdown.
In response to a market environment facing such dramatic change, we focused on implementing appropriate revisions to sales prices while engaging in raw material position management, investing management resources in growth sectors, and expanding sales of certified sustainable oils and other high value-added products. Despite these efforts, profits were significantly below the profit plans we outlined at the beginning of the fiscal year due to customer inventory adjustments, a rising consumer sentiment towards thrift, and a long-term suspension of production activities at Blommer due to equipment problems. We take these results very seriously and are committed to resolving the various issues we face in FY2023.

We expect that the business environment in FY2023 will continue to lack transparency. Despite this, we are planning on a significant increase in profits. To fully achieve our profit plans, we will focus on addressing priority issues while applying the three basic policies outlined in Reborn 2024, our Mid-Term Management Plan that we announced in May 2022.
To strengthen our business foundation, we will enhance business-specific management and operations. In particular, we will focus on restoring the profitability of Blommer and the China Emulsified and Fermented Ingredients Business.
To strengthen global business management, we will promote profit management with a focus on capital efficiency by adopting business-specific ROIC. The transfer of fixed assets for the US oils and fats operating company we announced in April 2023 was conducted as a part of this initiative, and is designed to enable us to reposition our business portfolio to a focus on high value-added products.
To enhance sustainability, we will work to strengthen our supply chain for certified sustainable oils and promote our differentiation strategy. In the area of human resource development, we will focus on the hiring, development, and positioning of human resources capable of supporting global management.

It is in these uncertain operating environments that we must reemphasize the basics. We will strengthen our business foundation by having every member of the Fuji Oil Group revisit the basics, evaluate the meaning of actions and behavior that enable secure and stable business management, and work to build a daily track record of success.

Throughout our 70-year history, Fuji Oil has achieved growth by creating innovative products and contributing to delicious and healthy foods for our customers and society.
Everyone in management is working with an awareness that, in order for us to continue making sustainable contributions to our stakeholders, we must first return to a growth trajectory by restoring our core profitability and shifting to a focus on high value-added products.
We thank all our shareholders and investors and ask for your continued understanding and support.