Message from the CFO

My name is Sunao Maeda. I have been appointed to the position of CFO.
Since joining the Company, I have worked mainly in finance and accounting in Japan as well as at locations in Europe and Southeast Asia. I promise to use my cumulative experience to contribute to increasing the corporate value of the Fuji Oil Group from the perspective of global finance. I will work to improve earnings and our financial position by implementing the various policies outlined in the FY2023 full-year plan and the Mid-Term Management Plan Reborn 2024, and by advancing initiatives to address our continuously evolving operating environment.

FY2022 showed signs of mild economic growth following a recovery from conditions caused by the COVID-19 pandemic. However, FY2022 was overall a very difficult year during which the business environment was impacted by issues such as advancing global inflation and declining economic sentiment driven by the monetary policy of various countries. In Japan, the business environment was impacted by consumer thrift caused by soaring costs for energy and raw materials. Earnings were also mixed, with our Group having recorded increased net sales but lower profits. In particular, the Vegetable Oils and Fats Business and the Industrial Chocolate Business in the USA, the Emulsified and Fermented Ingredients Business in China, and the Soy-based Ingredients Business in Japan all recorded significant declines in profits.
Looking at our financial position, while we were able to reduce our CCC by 11 days, we faced higher operating capital due to rising raw material prices and the impact of conversions to the yen. Due to these and other factors, total assets increased by 52.2 billion yen and also interest-bearing debt increased by 19.6 billion yen. As a result, our net D/E ratio was 0.80 times, representing an increase of 0.07 pts compared to the end of the previous fiscal year.

Looking at FY2023, we are planning on lower net sales but increased profit. These plans incorporate a recovery from transitional profit decline factors that affected Blommer in FY2022 in addition to the impact of continued revisions to appropriate prices and increased volume.

Looking at our financial strategy, in addition to the above profit increase factors, we will also work to improve our financial position by appropriately controlling cash flow. We set a goal to reduce CCC by an additional six days to 98 days, which is based on expectations that raw material market stability will lead to inventory reduction, to generate 40 billion yen in operating cash flow.

With the Mid-Term Management Plan Reborn 2024, we have newly adopted ROIC as a tool for promoting business portfolio management. In response to changes in our external environment, in April 2023 we transferred the fixed assets of a US oils and fats company in order to reposition our business portfolio towards a focus on high added-value. In FY2022, our overall ROIC was 2.0% but for FY2023 we plan to improve this to 3.3%.

I believe that communication with our investors is incredibly important, and I will work to improve our corporate value by engaging in investor dialogue. I ask for your continued guidance and support.