Announcement of the Settlement of Accounts for the Second Quarter of the Year Ending March 2013

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

Our settlement of accounts for the second quarter of the year ending March 2013 was announced on the afternoon of Friday, November 2 at the Tokyo Stock Exchange and Osaka Securities Exchange Press Clubs. An outline of the accounts is presented below.

Consolidated Results for the Second Quarter of the Year Ending March 2013 (April 1, 2012 to September 30, 2012)

Overview of the first half for FY ending March 2013

The Japanese economy during the first half of the fiscal year showed modest signs of recovery in terms of economic indexes and company earnings but continued to be challenged with severe economic issues, including prolonged trends of deflation and the rising yen, decrease in trade surplus and stagnating employment. The future projection of economic trend remains to be opaque both within Japan and globally following the ongoing financial instability in Europe and slowing economic growth of China and other emerging markets.

The food industry in which our group is placed continued to face adverse business conditions challenged with thrifty consumer spending and lower pricing trends.

Amid such environment, we carried out measures from our new middle term business plan “Global & Quality 2013”, engaging in product development fitting the needs of customers, delivering high-functionality ingredients and reducing production costs upon positioning “promotion of global management”, “promotion of technological management” and “promotion of sustainable management” as our fundamental policies.

As a result, for the first half of the year ending March 2013, we achieved net sales of 111,593 million yen (decrease of 4.2% y-o-y), operating income of 5,625 million yen (decrease of 6.5% y-o-y), ordinary income of 5,433 million yen (decrease of 7.9% y-o-y) and net income of 3,224 million yen (decrease of 18.5% y-o-y).

Overviews by division are as follows:

<Oils and Fats Processing Division>
Domestically, lower pricing following the declining key raw material market prices of coconut and palm oils among other products lead to decreased net sales for the division. We put efforts to maintain the profitability for coconut oil, palm oil and blended oil, but hard butters for chocolate experienced decreased profitability following the decline in cocoa butter market prices, and the segment overall posted lower sales and profit.

Overseas, hard butters for chocolate shrank in both sales and profits following decreased sales volume in the US, Europe and China together with staggering profitability comparable to that of Japan.

Through these results, this division achieved a sales volume of 43,781 million yen (decrease of 12.8% y-o-y) and an operating income of 1,247 million yen (decrease of 39.9% y-o-y).

<Confectionery and Baking Ingredients Division>
Domestically, sweet and colored chocolates sales volume increased but ice-coating chocolates decreased, resulting in decreased sales for chocolates for industrial use. Creams achieved improved sales through Fuji Oil’s acquisition of shares of Omu Milk Products Co., Ltd. making it a group subsidiary. Margarines and shortenings posted increased sales for products for breads.

Although milk powder and cocoa products dropped in sales, the division posted gains in sales and profit overall.

Overseas, the division posted increase in both sales and profit year-on-year following strong sales of chocolates for industrial use, creams, margarines and shortenings in China and Southeastern Asia.

Through these results, this division achieved a sales volume of 49,576 million yen (3.2% y-o-y increase) and an operating income of 3,593 million yen (26.9% y-o-y increase).

<Soy Protein Division>
Soy protein ingredients increased sales for fishery, but decreased in health foods, frozen foods, prepared foods and fermentation and culture medium which lead to decrease in sales overall.

Food function-enhancing ingredients decreased sales in export and rice but increased for fermentation and culture medium to post gains in sales.

Soy protein products sales improved as decrease in sales for products for instant noodles were offset by increase in catering foods and overseas sales.

Through these results, this division achieved a sales volume of 18,235 million yen (decrease of 0.3% y-o-y) and an operating income of 784 million yen (decrease of 29.0% y-o-y).

Predictions for Consolidated Results for the Year Ending March 2013 (April 1, 2012 to March 31, 2013)

*Qualitative information regarding forecast consolidated figures
No revisions have been made for the full-year forecast announced on May 8, 2012. 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