Announcement of the Settlement of Accounts for the Year Ending March 2011

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

Our settlement of accounts for the year ending March 2011 was announced on the afternoon of Monday, May 9 at the Tokyo Stock Exchange and Osaka Securities Exchange Press Clubs. An outline of the accounts is presented below.

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

Overview of the FY ending March 2011

Although the Japanese economy has shown slight recovery in corporate earnings during the year, prolonged deflation, deteriorating employment conditions, stronger yen and surging raw material prices, among other factors, continued to afflict the economy. Furthermore, the great earthquake that occurred in the eastern part of Japan on March 11, 2011 has exerted seriously negative influences on the Japanese economy, and business conditions in the days ahead remain unclear.

The food industry in which our group is placed continued to be challenged with thrifty consumer spending and lower pricing trends, and supply concerns triggered by the unfavorable weather along with growing demand from developing countries which boosted global pricing of raw materials to further worsen business conditions.

Amid such environment, we carried out measures from the middle term management plan “Innovation and Action 2010”, promoting “technological management”, engaging in product development fitting the needs of customers, delivering high-functionality ingredients, reducing production costs and focusing on “expansion of overseas businesses” and “reconstruction of soy protein businesses” positioned as key issues during our final year in business restructuring efforts .

As a result, for the annual term ending March 2011, we achieved net sales of 222,714 million yen (4.4% y-o-y increase), operating income of 16,590 million yen (decrease of 7.6% y-o-y), ordinary income of 16,243 million yen (decrease of 6.5% y-o-y) and net income of 9,783 million yen (decrease of 8.8% y-o-y).

Meanwhile, the Group recorded 329 million yen as extraordinary loss for expenses incurred from damages in fixed assets and inventories that occurred from our Kanto Plant, Protein Foods Tsukuba Plant and Chiba Plant as a result of the earthquake,.

[Breakdown of Results by Division]
<Oils and Fats Processing Division>
Domestically, sales for hard butters for chocolate experienced year-on-year decreases but coconut oil and palm oil grew in sales to increase sales overall. Raw material price hikes worsened profitability to post declines in earnings.

In our overseas subsidiaries, although hard butters for chocolate enjoyed robust increases in sales volume for the US and Asian markets, profits were negatively impacted by lowered retail pricing and increased raw material costs from the latter half of the quarter. Although nutritional oils and fats for infant milk formula continued to see steady results in Asia and specialty products improved in the US and Europe to post gains in sales, profits decreased in the overseas market overall.

Through these results, this division achieved a sales volume of 89,619 million yen (7.8% y-o-y increase) and an operating income of 6,546 million yen (decrease of 16.3% y-o-y).

<Confectionary and Baking Ingredients Division>
Domestically, colored chocolates achieved good results to garner improved sales overall for chocolates for industrial use. Although margarines expanded sales, sales for creams decreased compared to the previous year. Imported confectionary and baking ingredients improved on its sales of milk powder and cocoa products to achieve higher sales compared to the previous year. Overall, the division saw increases in sales domestically, but decreased in profit due to higher raw material prices.

Overseas, steady growth of sales for chocolates for industrial use, creams, margarines and shortenings targeted to Southeast Asia led to increases in both sales and profit.

Through these results, this division achieved a sales volume of 95,759 million yen (4.0% y-o-y increase) and an operating income of 8,198 million yen (decrease of 6.6% y-o-y).

<Soy Protein Division>
In the domestic market, soy protein ingredients for meats, fermentation and culture medium and for frozen foods generated improved sales. The agreement for joint venture company (Fuji Protein Technologies, Inc.) between Fuji Oil and Solae, LLC of the US was terminated in July 2010. Following this, imported sales from Solae had stopped, thereby narrowing the product mix for fishery and health foods to decrease sales but nevertheless recorded increased profit. Overseas, meats and health foods market in china continued to record excellent results, with sales exceeding the previous year.

Products for the instant noodle market posted steady growth for soy protein food products, and overall sales improved year-on-year.

Soy protein functional food ingredients improved in sales and earnings as a result of solid sales from beverages.

Soy milk achieved increased sales but mail orders struggled, resulting in overall sales to remain flat with earnings improved thanks to cost-cutting measures.

Through these results, this division achieved a sales volume of 37,335 million yen (decrease of 1.8% y-o-y) and an operating income of 1,845 million yen (35.2% y-o-y increase).

Predictions for the Next Fiscal Year (April 1, 2011 to March 31, 2012)

The food industry is expected to continue seeing adverse business environments due to the earthquake's impact to the Japanese economy, in addition to prolonged deflation and the lackluster economy the nation was already experiencing.

The Group has launched its new its middle term management plan “Global & Quality 2013” from this April amid such circumstances. While the business environment changes every moment, we will secure the capacity, profit and value to prevail as a global company upon formulating the following fundamental policies:
▪ ”promote global management”
▪ ”promote technological management”
▪ ”promote sustainable management”

Although the Group is forecasting circumstances that may be anticipated as of date, the situation may change through decreased consumption and other outcomes in light of the earthquake. We will promptly disclose information in the event that we expect significant impact.

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

End of report