Announcement of the Settlement of Accounts for the First Quarter of the Year Ending March 2015

(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 2015 was announced on the afternoon of Friday, August1 at the Tokyo Stock Exchange Press Clubs. An outline of the accounts is presented below.

Consolidated Results for the First Quarter of the Year Ending March 2015 (April 1, 2014 to June 30, 2014)

Overview of the first quarter of the year ending March 2015

In the Japanese economy during the company’s first quarter period, there were concerns over the impact of an increase in the consumption tax on the economy, but the steady recovery of the economy continued with improvements in corporate earnings and individual consumption being seen and robust movements in stock prices. However, while a recovery in the economy of the United States was seen, the future of the economic situation overseas remained uncertain with slowing growth in developing countries and conflicts in certain areas among other factors.

The domestic food industry in which our group is placed continued to face adverse business conditions as a result of a continuing rise in raw material prices following the depreciating yen.

Amid such environment, we created a new middle term business plan called “Renaissance Fuji 2016”, engaging in product development fitting the needs of customers, delivering high-functionality ingredients and reducing production costs upon positioning “promotion and acceleration of global management”, “promotion and acceleration of technological management” and “promotion and acceleration of sustainable management” as our fundamental policies.

As a result, for the first quarter of the year ending March 2015, we achieved net sales of 63,802 million yen (increase of 8.4% y-o-y), operating income of 3,480 million yen (decrease of 1.2% y-o-y), ordinary income of 3,540 million yen (decrease of 0.1% y-o-y) and net income of 2,893 million yen (increase of 37.2% y-o-y).

Overviews by division are as follows:

<Oils and Fats Processing Division>
Domestically, the sales volume of palm oil and hard butters for chocolate increased, but the sales volume of blended oils centering on industrial use 18-liter square cans decreased. Net sales increased as a result of an increase in the sale prices of coconut oil, palm oil, and hard butters for chocolate.

Overseas, the sales volume of hard butters for chocolate in the United States and China increased, and sales and profits increased due to factors including an overall increase in sales prices and favorable yen conversion rates due to the weakened yen.

Through these results, this division achieved a sales volume of 24,860 million yen (increase of 11.6% y-o-y) and an operating income of 1,183 million yen (increase of 81.9% y-o-y).

<Confectionery and Baking Ingredients Division>
Domestically, sweet chocolates, ice-coating chocolates, colored chocolates, and molded chocolates posted gains, resulting in increased sales for chocolates for industrial use. Sales of cream and margarine increased and sales of prepared products decreased, but net sales overall increased. In terms of profitability, profits decreased overall as a result of the weakened yen and an increase in the price of raw materials.

Overseas, sales of cream in Southeast Asia progressed favorably and increased, and sales of margarine also increased in Southeast Asia and China, leading to an overall increase in sales and profits.

Through these results, this division achieved a sales volume of 29,178 million yen (8.4% y-o-y increase) and an operating income of 2077 million yen (14.1% y-o-y decrease).

<Soy Protein Division>
Soy protein ingredients decreased sales for meat, health foods, and in the fishery market, but sales for prepared foods, processed foods, and sales in China increased, leading to an increase in sales overall. Functional food ingredients improved in sales following increase in sales for exports and products for cooked noodles. Soy protein products sales saw lower revenue as retail foods accumulated lower sales. Sales of soy milk increased due to the sale of new products. The overall sales increased but were impacted by struggling profitability of soy protein ingredients due to the high price of raw materials, and thus resulted in significantly lower profit.

Through these results, this division achieved a sales volume of 9,763 million yen (1.3% y-o-y increase) and an operating income of 220 million yen (51.3% y-o-y decrease).

Predictions for Consolidated Results for the Year Ending March 2015 (April 1, 2014 to March 31, 2015)

*Qualitative information regarding forecast consolidated figures
No revisions have been made for the first 2 quarters and the full-year forecast announced on May 9, 2014. 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