Financial and Performance Review for the First Quarter of the Year Ending March 2008

(Note) Figures shown have been rounded down to the nearest million yen.

Our financial and performance review for the first quarter of the year ending March 2008 was announced on Thursday, August 2 at the Tokyo Stock Exchange and Osaka Securities Exchange Press Clubs. An outline of the announcement is presented below.

Performance Review for the First Quarter of the Year Ending March 2008
(April 1 to June 30, 2007)

The domestic economy in Japan during the first quarter of the year ending March 2008 generally continued to perform well thanks to increased capital investment, improved employment conditions and strong personal consumption, which were backed by improved corporate profits.
The food industry, to which we belong, faced ongoing harsh business conditions, such as skyrocketing raw material prices, intensified competition between companies and stagnant or shrinking markets.
In such an environment, to start growing again, our group was committed to measures to enhance our core businesses and accelerate our overseas development. The result was an increase in sales, although operating income and ordinary income in the first quarter of the year ending March 2008 declined mainly due to high raw material prices.
Consequently, in the first quarter of the year ending March 2008, we achieved sales of 47,741 million yen (an increase of 8.9% over the previous year), an operating income of 1,360 million yen (a decrease of 12.5% over the previous year), an ordinary income of 1,218 million yen (a decrease of 10.2% over the previous year), and a net profit for the quarter of 698 million yen (an increase of 14.4% over the previous year).

The overview by sector is as follows.

<Oils and Fats Processing Business>
Domestically, the sales of specialty products such as hard butters for chocolate and functional oils and fats grew steadily, and fats for frying also saw an increase in sales volume. Overseas, specialty products such as hard butters for chocolate continued to do well. However, profits were down from the previous year because rises in raw material prices were not sufficiently offset by a revision of sales prices and cost reductions, especially in the domestic market.
Through its efforts, this business group achieved sales of 17,757 million yen (an increase of 10.2% over the previous year) and an operating income of 544 million yen (a decrease of 17.7% over the previous year).

<Confectionery and Baking Ingredients Business>
In the Japanese market, various types of ingredient chocolate continued to enjoy satisfactory sales compared to the previous term, and the sales of cream products and fillings also grew steadily. Imported confectionery and baking ingredients saw sales increase as well. Overseas, our group companies in Singapore and Indonesia both experienced good performance.
Through its efforts, this business group achieved sales of 20,463 million yen (an increase of 12.6% over the previous year) and an operating income of 1,010 million yen (an increase of 0.2% over the previous year), as the decrease in domestic income due to higher raw material costs was offset by profit growth in our overseas companies.

<Soy Protein Business>
Soy protein ingredients, soy peptide, water-soluble soy polysaccharides and soy milk all experienced a decline in demand.
While soy protein food products for industrial use struggled, the sales of products sold through co-ops showed strong growth.
Through its efforts, this business group achieved a sales volume of 9,520 million yen (a decrease of 0.0% over the previous year) and recorded an operating loss of 194 million yen (an operating loss of 115 million yen was achieved in the previous year).

Predictions for Non-consolidated Results for the Year Ending March 2008 (April 1, 2007 to March 31, 2008)
At this point, we have not made any amendment to the predictions of results for either the mid term or whole year released on May 10, 2007.

(Note) The forecasts above have been made based on the information available at the time of this announcement, and the actual results may differ from these forecasts due to various factors.

End of report