Investor Relations

Message from CEO

Message from CEO

Since our founding in 1950, Fuji Oil has been dedicated to materials development with a particular focus on the use of southern plant-based oils and soybeans as raw materials. Over the years, we have continued to achieve technical innovation in the field of food materials.

Today, we pursue synergy between the three segments of oils and fats, confectionery and bakery ingredients, and soy as we continue to expand our operations to the global stage. Our mainstay products include hard butters for chocolate and industrial-use chocolate, confectionery and bakery ingredients such as cream and margarine, and soy-based ingredients such as soy protein foods.

On today, May 8, we have released the FY2017 financial results and our FY2018 Plan.

Our results in FY2017 set record highs with revenue of 307.6 billion yen, operating income of 20.5 billion yen and net income of 13.7 billion yen. Operating income by area in Japan, China, elsewhere in Asia and in the Americas (the U.S. and Brazil) exceeded targets. Groupwide revenues have entered a new stage by overcoming the levels of 300 billion yen in revenue and 20 billion yen in operating income.

Our Mid-Term Management Plan, "Towards a Further Leap 2020," covers a time in what some call the age of disruption. It will lay a critical foundation for vaulting toward sustainable growth. In FY2017, the initial year of the plan, we commenced new initiatives at the holding company and in each area. A story comprises four parts: an exposition, rising action, a climax and a resolution. FY2017 has surely been the year of the exposition. I see FY2018 as an important year of rising action when we will prepare the moves that will lead to the climax and resolution. The plan sets targets of 322 billion yen in revenue and 21.3 billion yen in operating income, but there remains a considerable gap before we take the "Leap" and become "How we should be."

Along with the plan's three basic objectives of enhancing core competence, growth for the soy business and steady expansion of high added-value business, we must also relentlessly proceed with selecting businesses (and production sites) to concentrate on, profit structure reforms through cost-cutting and other productivity improvements, and improved financial health through CCC contraction and better capital efficiency. The only way to beat the global competition is to have a clear understanding of our progress toward the plan's targets and to consistently execute action toward its implementation. We cannot survive by sustaining the status quo, so we shall always retain a sense of urgency as we take on the transformation.

Furthermore, it is essential that we move forward on Environmental Social and Corporate Governance (ESG) to raise the Fuji Oil Group's social value. ESG is quickly becoming a more common form of assessment criteria for corporate value. These days now, a company cannot even stick around if it does not actively contribute to the public good. Along with cutting CO2 emissions, promoting diversity and strengthening risk management and governance, achieving solutions through food production, especially those that address the health of people and communities with plant-based food (PBF), is our mission here at the Fuji Oil Group. It is also the way to achieve sustainable growth. Everyone in the Group is well aware of ESG. While each of us makes what we do "Work for people," we are endeavoring to achieve the Mid-Term Management Plan's targets and make a further leap. We are holding deeper dialog with investors, analysts and all stakeholders and practicing ESG management (i.e. Conscientious Management) that delivers delicious and healthy food. I hope to receive your continued support and encouragement.

President and CEO

President and CEO Hiroshi Shimizu

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