Announcement of the Settlement of Accounts for the First 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 first quarter of the year ending March 2013 was announced on the afternoon of Friday, August 3 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 2013 (April 1, 2012 to June 30, 2012)

Overview of the first quarter for FY ending March 2013

The Japanese economy during the first quarter 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 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 quarter of the year ending March 2013, we achieved consolidated net sales of 55,977 million yen (decrease of 5.4% y-o-y), operating income of 2,963 million yen (decrease of 24.2% y-o-y), ordinary income of 2,887 million yen (decrease of 24.9% y-o-y) and net income of 1,880 million yen (decrease of 29.6% 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 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 experienced lower sales and profit.

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

Through these results, this division achieved sales of 21,961 million yen (decrease of 14.8% y-o-y) and an operating income of 556 million yen (decrease of 59.9% y-o-y).

<Confectionery and Baking Ingredients Division>
Domestically, sweet and colored chocolates sales increased to mark improved sales for chocolates for industrial use. Creams achieved improved sales through Fuji Oil’s acquisition of Omu Milk Products Co., Ltd. as a group subsidiary. Margarines and fillings posted increased sales for products for breads. Although milk powder products dropped in sales, the division posted gains in sales and profit overall.

Overseas, the division posted increase in sales year-on-year following good sales of chocolates for industrial use, creams and margarines in China and Southeastern Asia, but preparation products for Japan struggled and marked a fall in profit.

Through these results, this division achieved a sales volume of 24,862 million yen (4.0% y-o-y increase) and an operating income of 1,891 million yen (4.2% y-o-y increase).

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

Food function-enhancing ingredients increased sales for fermentation and culture medium, but the decline in export resulted in a decrease in sales.

Soy protein products grew in sales for catering foods market but decreased for products for instant noodles to post a decrease in sales all together.

Through these results, this division achieved a sales volume of 9,152 million yen (decrease of 3.7% y-o-y) and an operating income of 515 million yen (decrease of 27.5% 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 half-year and full-year forecasts 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