News Release

2010.8.5Announcement of the Settlement of Accounts for the First Quarter of the Year Ending March 2011

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

Our settlement of accounts for the first quarter of the year ending March 2011 was announced on the afternoon of Thursday, August 5 at the Tokyo Stock Exchange and Osaka Securities Exchange Press Clubs. An outline of the accounts is presented below.

Consolidated Results for the First Quarter of the Year Ending March 2011
(April 1, 2010 to June 30, 2010)

Consolidated operating results (total)

(% is in comparison to the previous year)

  Net sales Operating income Ordinary income Net income
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%)
First quarter of the
year ending March 2011
53,510 7.2 4,520 26.8 4,570 35.9 2,997 39.2
First quarter of the
year ending March 2010
49,920 (12.4) 3,564 40.6 3,363 34.3 2,153 15.8

Overview of the first quarter for FY ending March 2011

The Japanese economy during the first quarter period continued to experience recovery as implicated through export volume and other indicators following stimulus measures within Japan and throughout the world, together with steady economic growths of China and Southeast Asia. Domestic consumption, however, remained to be negatively impacted by struggling capital investments, prolonged deflation and unstable employment conditions.

The food industry in which our group is placed was also affected by the aforementioned economic circumstances, and was challenged with slowing consumption triggered by thrifty consumer spending and the lower pricing trend.

Amid such environment, we achieved favorable results through carrying out measures from the medium-term business plan "Innovation and Action 2010", promoting "technological management", engaging in product development fitting the needs of customers, delivering unique high-functionality ingredients, reducing production costs and focusing on "expansion of overseas businesses" and "reconstruction of soy protein businesses" positioned as key issues.

As a result, for the first quarter of the year ending March 2011, we achieved consolidated net sales of 53,510 million yen (7.2% y-o-y increase), operating income of 4,520 million yen (26.8% y-o-y increase), ordinary income of 4,570 million yen (35.9% y-o-y increase) and net income of 2,997 million yen (39.2% y-o-y increase).

Overviews by division are as follows:

<Oils and Fats Processing Division>
Domestically, general oils and fats for processing together with specialty products such as hard butters for chocolate continued to demonstrate steady results, but higher raw material prices lead to decreased profit despite the increase in sales.

In our overseas subsidiaries, although hard butters for chocolate continued to struggle, sales for general oils and fats improved. There were some impact from the rise in raw material prices but the subsidiaries nevertheless maintained profitability to post gains in both sales and profit.

Through these results, this division achieved a sales volume of 20,719 million yen (7.8% y-o-y increase) and an operating income of 1,700 million yen (13.4% y-o-y increase).

<Confectionery and Baking Ingredients Division>
Domestically, chocolates for industrial use such as for frozen chocolates and chocolates for baking in addition to colored chocolates continued to achieve steady results. Creams and margarines also saw improved sales volume following increased sales of products focused on functionality. Imported confectionery and baking ingredients improved on its sales of milk powder products.

Our subsidiary overseas posted excellent results on its sales of chocolates for Southeast Asia. Sales for creams and margarines targeted to the region also demonstrated solid figures.

Through these results, this division achieved a sales volume of 23,144 million yen (8.6% increase y-o-y) and an operating income of 2,334 million yen (44.0% y-o-y increase).

<Soy Protein Division>
Domestically, soy protein products achieved gains in sales volume and profit as it continued to hold strong for the meats and prepared foods markets and improved in health foods and fishery. For soy protein products, although instant noodles increased its sales volume, the overall sales remained almost flat. For soy protein food function-enhancing ingredients, markets for noodles generated positive results following continued efforts to expand usage options. Sales of soy milk continued to face unfavorable market conditions in the soy milk and mail order division.

Through these results, this division achieved a sales volume of 9,646 million yen (2.7% y-o-y increase) and an operating income of 486 million yen (9.5% y-o-y increase).

Predictions for Consolidated Results for the Year Ending March 2011
(April 1, 2010 to March 31, 2011)

(% is in comparison to the previous year)

  Net sales Operating income Ordinary income Net income
for the term
Net income
per share
(yen)
(millions of yen) (%) (millions of yen) (%) (millions of yen) (%) (millions of yen) (%)
First 2 Quarters 106,500 4.1 7,100 (10.2) 6,800 (9.1) 4,500 (6.0) 52.35
Full Year 223,600 4.9 16,200 (9.8) 15,600 (10.2) 10,000 (6.8) 116.33

(Note) No revisions for forecast consolidated figures were made this quarter

*Qualitative information regarding forecast consolidated figures
No revisions have been made for the forecast announced on May 7, 2010 of the first 2 quarters as well as of the year. Revisions will promptly be announced if deemed necessary after determining the changes that may arise in the Company's business environment.

*Explanation and other notes regarding appropriate utilization of the predictions
The forecasts above have been made based on assumptions deemed rational together with information available at the time of this announcement, and the actual results may differ from these forecasts due to various factors.

End of report

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