Fuji Oil Holdings Inc

Good morning. My name is Sakai. Nice to meet you. I would like to take a look back on the past three years and especially the year of 2024. First, I would like to talk about the operating profit of the year of 2024. As you can see, the previous year's operating profit was 99 billion yen. In the case of Brahma Chocolate, it has caused a great loss, and it has had a great impact on the entire company's budget. I would like to express my deepest apologies for not being able to meet your expectations and trust. I am sorry about that. I would like to express my deepest apologies for not being able I would like to briefly look back on the past three years. There was no improvement in the profits of Brahma chocolate. Also, the operation of the new Chinese cream factory was delayed. In terms of chocolate business other than Brahma chocolate, the supply chain was strengthened, The profit was increased by the sales strategy that adjusted the material for the timely price reduction and added precision. Brazil's Harald, who started a new factory, also stood up smoothly. In addition, we introduced Fuji-ROIC and PPE, which are our own productivity indicators, I think that it was recommended to see the efficiency of each factory in terms of revenue and other profits. As for the issue, I will mention it on the next page, but I think that the area of the pure mochikabu company was suitable for promoting globalization in a pure market environment. in the face of the global crisis, such as the spread of COVID-19 and the global spread of raw materials, I think it was an extremely unfavorable situation. Also, for Fuji, who has a lot of know-how in Japan, I think it was an inefficient situation. In 2024, These are the three major issues that have come to light. In the case of Brahma Chocolate, the movement of the cacao market, especially since April last year, has not been able to respond well, from the end of the year to the end of the year, even if it enters a downward trend once in October. There are external factors as well, I think that the management of the company was insufficient, such as timely and accurate understanding of the current situation. Regarding the cream business in China, we focused on the response to the declining market and the speed of the know-how from Japan. We think that corporate governance has been advanced to a certain extent by moving to the inspection and committee establishment companies, but we must say that the governance within the group is developing. Since 2025, by unifying holding and Fuji Seiyu Nihon and unifying them, we will speed up the development of know-how, and we are in a position to further strengthen the supply chain with consideration of the Kawakami raw materials. In addition, in the integrated system, we will clarify the business axis and functional axis, and we will accelerate the review of the product portfolio of each business, which has been late in the evolution of group governance, and the review of the entire business portfolio. Finally, I am sorry to say this, but I will resign this year with the Board of Directors. I would like to thank all the investors, analysts, and all the companies involved. Thank you very much. Thank you very much.

Next, I would like to introduce the CFO.

Thank you very much. I would like to explain the results of the fiscal year of 2024 and the results of the fiscal year of 2025. Please look at the 6th page. This is the results of the fiscal year of 2024. The sales value is 67.12 billion yen, and the operating profit is 8.3 billion yen. The current net profit is 4.3 billion yen, and the current profit is 2.2 billion yen. First of all, in terms of sales, the increase in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the rise in the sales price due to the the sales of compound chocolates in Japan and Southeast Asia in the CBE and commercial chocolate business have improved. However, due to the volatile influence of the cacao price, there was a major loss due to cacao special effects in Brammer, resulting in a decline in joint profits. I will explain the details later, but in 2020, The current operating profit is 3.5 billion yen, and the actual operating profit is 4.4 billion yen. As for the current operating profit, the operating profit of the existing business has increased, but the operating profit of the programmer is the main one. Please see the 7th page. I will explain the operating profit by business. In the plant-based dairy business, the sales of plant-based dairy, chocolate dairy, and CBD increased significantly due to the rise in the number of sales of cacao products. In the business-based chocolate business, sales increased in Japan, Brazil, and Southeast Asia. On the other hand, the number of fixed expenses was reduced due to the closure of the Chicago factory in Bramah, the United States, but due to the rise in the number of cacao products, which resulted in a large-scale profit. In addition, we believe that the operating profit of the chocolate business, in addition to the cacao specialty store, was 14.7 billion yen. In the import and export material business, the sales for fresh bread in Japan have increased significantly. In China, the price of raw materials has risen and the profitability has decreased, resulting in a profit. In the soy-based material business, and the sales of functional materials in Japan have decreased significantly. Please see the 8th page. This is an additional analysis of the total sales revenue in the past year of 2024. We would like to explain the effect of the Kakao special agent, which was created with the rise of Kakao science. Although it contains raw materials, it has a significant impact on the performance. First of all, the number of sales. The number of sales increased in Southeast Asia and Japan, Brazil, and Southeast Asia. However, the number of sales decreased due to the closure of the Chicago factory in Bramah. The number of sales is now minus 3.1 billion yen. As for the cost-saving factor, the cost-saving factor is that the cost-saving factor is that the cost-saving factor is that the cost-saving factor is the cost-saving factor. The price reduction was carried out, and the short-term cost was added to 2.9 billion yen. In terms of fixed costs, expenses, and expenses, the fixed costs were reduced due to the closure of the Brammer Chicago factory, but due to the increase in human resources in each group, it was reduced to 3.7 billion yen. In addition, we believe that the operating profit based on actual power, except for Brammer's Kakao special, was 4.4 billion yen. In addition, in Brammer, a loss of 30.5 billion yen was generated, resulting in a profit of 9.9 billion yen in continued operating profits in 2024. The information on the 9th page is a matrix of business and area, so please refer to it. Please see the 11th page. Next, I would like to explain the performance forecast for 2025. From 2025 onwards, there will be changes in the accounting standards and management system. I will explain the aim of the change in the system later. I will explain the two changes in the management system. The first point is the application of the IFRS. We have made a decision based on the Japanese standard, but we will apply IFRS from the first quarter of 2025. As a result, we will set a business profit as a business management policy, and we will proceed with the opening in an easy-to-understand manner for everyone to understand. The main change in the business profit based on the IFRS from the Japanese standard so far is that there will be no incineration. as well as other commercial and external revenue, capital loss, as well as use-to-purchase capital loss. The second change is the segment information change based on the management approach. This time, Fuji Seiyu Group and Fuji Seiyu combined to become Fuji Seiyu as a new business holding company, and we have changed the management from area management to business management. In the past, the group management expenses, which were mainly focused on the group management expenses, have been separated into items that do not include each business. Since 2025, the group management expenses have been separated into items that are mainly focused on the group management expenses, and the group management expenses have been separated into items that are mainly focused on each business, especially Japan. In addition, since 2025, Fuji Seiyu has changed its management system from the management system of the area to the management system of the business. As a result, we will continue to hold meetings in three areas, Japan, the West, and Asia, in accordance with the management approach. We would like to ask you to look at the numbers in a different way from before by eliminating the group management method and changing the area management by managing management approaches. There may be some difficult aspects, but we will explain them carefully, including the IR activities, so that you can understand them. Thank you for your understanding. Please look at the 12th page. First, let's look at the business results for 2024. Based on the sales profit of 9.9 billion yen, we added 3.1 billion yen due to the change in the operating standard. As a result, the business profit reference value of 2024 will be 1.3 billion yen. Next, the annual revenue forecast for 2025 is 8 billion yen in sales, 29.5 billion yen in business profit, and 16.5 billion yen in long-term profit. However, the sales price is expected to rise due to the increase in the current material price in the chocolate business. The business profit is expected to fall due to the decline in the cost of raw materials in the first quarter of 2024, but we are planning to improve the special effect of cacao in Plummer, and we are planning 29.5 billion yen of increase from 1.3 billion yen of reference business profit in 2024. In addition, we will explain the Kakao special offer of Brammer in 2025, which is expected to be less than 3 billion yen, and the actual business profit is estimated to be 3.25 billion yen. As for the long-term profit, it is expected to fall due to the reduction in the amount of raw materials, but it is expected to rise due to the improvement of Brammer. Please see the 13th page. This is an estimate of the performance of each business. As for the year 2024, the sales and business profits divided by the group management table and the reference value of the business profits. As for the year 2025, the business profits in IFRS are listed. First, I will explain the premise. In the year 2024, the plant-based business, the chocolate business, focusing on early-stage sales and high-priced cacao chocolate, and we have achieved the highest sales in the past with multiple group companies. In the year 2025, CBE and compound chocolate will continue to sell well, but we will see a decline in the amount of raw materials produced in the year 2024, and we are planning to increase the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing the cost by increasing The import and export materials industry is expected to see a cost increase due to the rise in raw materials prices, but we are planning to recover sales in China. We are planning to increase the number of sales in the daizuka materials industry. Please see the 14th page. This is an additional analysis of the continued business profits. The business profits in 2024 are 9.9 billion yen, IFRS adjustment of 3.1 billion yen has been added, and the reference business profit of 2024 will be 1.3 billion yen. In 2025, we expect to see improvements of 27.5 billion yen in total in terms of sales and sales performance due to the improvement of the stock market and the optimization of the sales price. On the other hand, in the plant-based business and the chocolate business, each company is planning its revenue by the decline of the current revenue. The business revenue for 2025 is estimated to be 29.5 billion yen. Please see the 15th page. I will explain the performance of Grammar. In 2024, Due to the impact of the change in the price of cacao, the sales volume of cacao has declined, but compared to the third quarter, the fourth quarter has seen improvement in the measures implemented. First, I would like to explain the fourth quarter of Grammar in 2024. The fourth quarter has a sales value of 4.82 billion yen, and the operating profit is 13 billion yen. Our Kakao special effect is minus 4 billion yen, and in addition to that, our actual operating profit is 2.8 billion yen. This is a summary of the Kakao special effect of the fourth quarter. First of all, regarding the previous evaluation, we have changed the hedge operation from the fourth quarter, and as a result, we have greatly reduced the position of Kakao Sakemono. In terms of sales, the sales price has risen as expected, but the cost of raw materials has been higher than expected, so the improvement range has been lowered. As for the cost of re-purchasing of raw materials, we have made price changes for improvement, but the cost of re-purchasing has continued to rise at a high level. As a result, the Kakao special effect of the fourth quarter has been reduced by 4 billion yen. In 2024, the total sales revenue will be 18.9 billion yen, and the operating profit will be minus 3.12 billion yen. Among them, Kakao special services will be minus 3.5 billion yen, so the operating profit will be minus 6 billion yen, excluding special services. As a result of the reduction in the cost due to the closure of the Chicago factory and the effect of the cacao price, we have made a significant improvement in the total cost. Please see the 16th page. I will explain the forecast for the year 2025 and future measures. In the year 2025, the sales volume of Brahma is 2435 million yen, business profit is 15 million yen, and Kakao's profit is 30 million yen. In addition to Kakao's profit, the business profit is estimated to be 45 million yen. In the year 2025, I will explain the difference between Kakao's profit and 30 million yen. First of all, regarding the previous evaluation, as I explained earlier, we have restricted the previous position, so we do not expect to see any evaluation losses. In terms of sales losses, we expect that sales losses will not be large due to sales at a suitable price throughout the year. The cost of re-entry in the previous year is greatly different from the cost of re-entry in the previous year. The cost of re-entry in the previous year is higher than the cost of re-entry in the previous year, and the loss is expected to occur. On the other hand, in the case of the previous year, the effect of the cost of re-entry appears, and it is expected that it will be minus 2.9 billion yen in the future. In addition to the Kakao special oil, the business profit has been improved from last year due to cost reduction effects and inflation of the price drop. Next, I will explain about the internal support and the external environment for 2025. In terms of internal support, we recommend the replacement of product port folio and focus on higher value-added chocolate business. Among them, we will strengthen the sales of CBE compound. In terms of the cacao business, we will reduce the use of cacao only. In addition, we will reduce the supply of cacao beans for long-term use by diversifying the supply of cacao beans. By doing so, we will improve our basic revenue and reduce the exposure of cacao beans. In terms of the external environment, the price of cacao is rising, and the rapid sales of cacao beans is limited. As for the spread, it will not be resolved immediately, but it will be gradually reduced and trained in the near future. We believe that it will be resolved after the deadline. Please see the 17th page. Next, I would like to explain the balance sheet. This is the end of the year 2024. With the rise in Kakao's sales, as well as the increase in the number of drivers, the interest rate has also increased. As shown in the graph on the right side of the slide, the interest rate has especially increased. We have been promoting the promotion of Kakao business in Brammer, but the Kakao price has risen more than before, and the interest rate has increased along with the driver's capital. In terms of the balance sheet, we have recognized it as an important issue. In order to respond to this, we will continue to reduce the sales price and promote the optimization of the sales price. Please take a look at the 18th page. I will explain the cash flow as well as the response policy. As for the cash flow, in 2024, the sales cash flow will increase the output of the driving capital, the investment cash flow will increase the output by promoting and expanding the investment according to the demand, and the diamond cash flow will increase the income by increasing the short-term and temporary income. In 2015, we will work to restore the driving capital, and we will proceed with the repayment of interest payments. As for the disbursement, we are planning to pay 52 yen for both 2024 and 2025. The disbursement success in 2024 is large from 200% and from 30% to 40% as proposed in the medium-term management plan, but we want to implement 52 yen under the disbursement policy of stable disbursement. Please see the 19th page. This is the ratio of Fuji-ROIC. In 2024, Fuji-ROIC of all companies is 1.6%. In terms of business, we have grown a lot in the business sector, and in the chocolate business, we have greatly improved the performance of Brammer. Since 2025, we have been able to improve the performance of Brammer Please refer to the right-hand side of the slide to see the impact of Fuji-ROIC. As of 2025, we are planning to improve the industry-specific chocolate industry and the soy-based material industry. As we move into the industry-specific company-based industry, Fuji-ROIC is considered to be an important KPI. It is also included in the evaluation of each executive body. and we will continue to improve it as an important KPI for the improvement of asset efficiency. Page 20 is the matrix of HPS for each company based on the information exchange policy from 2025. We hope you will refer to it. Thank you for your attention. This concludes the report on the performance of the industry in 2025 from Maeda.

Next, I would like to introduce the CEO, Omori.

I am Omori, the CEO from April of this year. I would like to introduce the CFO, Maeda, regarding the performance forecast for the year 2024 and 2025. First, I would like to explain the future plans. Please see the 22nd page. In the beginning, I raised the issues in the medium-term plan from Sakai, but I will continue to respond to these issues and raise three plans for 2025 for the growth of Fuji Seiyu. The first is This is the evolution of governance. This time, we will proceed with the management of the entire Fujiseiyu by the integration of companies. And we will do our best to stop the red blood of Brahma. In addition, we would like to speed up the implementation of business strategies by strengthening the perspective of the manufacturer so that Fujiseiyu Group can earn more as a manufacturing industry. The second is the strengthening of the existing area. In 2024, the sales of FUJISEI's existing area, CBE, and compound chocolate expanded. This greatly contributed to the revenue, but in order to further develop, it is essential to secure stable raw materials. to further strengthen the supply chain of raw materials. In addition, we will expand the global business of problem-solving type in Japan and expand the revenue. The third is the expansion of the challenge area. New products and new sales that connect customers and society to problem-solving, and develop it into a new market. Plant-based food is also one of them. The keywords are deliciousness, health, and sustainability. We will contribute to solving the problems of people and the earth, and develop the next pillar of revenue. Next, please look at page 23. As for the evolution of governance, Since 2025, we have moved to business-based companies, but I would like to explain again. In the traditional organizational system, as shown in the slide on the left, in the group-based system, we set up an area-based company globally in each area, and each area carried out business on its own, and the group-based system monitored as a functional axis. As a result, we were able to measure the business development in the area, but on the other hand, there was a lack of resources in the area, and the delay in dealing with important issues due to the division, as well as the delay in the initiative for the reduction of raw materials and the major environmental changes in the world. In terms of the new organizational system, the monitoring by the functional axis continued, we changed the management of each group company by the head office. This is not simply a change in management, but it means that Fuji Seiyu will return to the manufacturing industry once again and create value as a manufacturing company. In the business branch, the head of each business group will manage the management directly, including the group companies, We also think that it will be possible to carry out optimal distribution and rapid implementation of trial and error issues. In addition to CFO in the functional axis, the safety quality and production technology will manage the production and safety of each company globally. In addition, in the development of research and development, we will develop the technology that is progressing in each area. I would like to implement a growth strategy to address the important issues as a whole company. Please see page 24. I will explain the direction of each business in the existing area and the expansion of the challenge area in two ways. First, it is a plant-based oil business. One of the strengths of the existing area is that It is a response to the demand for CBE. In 2024, the sales volume of CBE will be 124% in total, and there will be strong demand even at the foot of the high market. As for the CB in 2025, it is an existing equipment that is almost fully produced, but by advancing efficiency, it is expected to improve profitability by increasing the number of sales and decreasing the price. In addition, we will strengthen the supply chain of palm oil, sunflower oil, and shea butter for stable supply of CB. FarmU has established JPG Fuji, a joint venture company in Malaysia, and is preparing for operation in 2026. This operation allows us to secure high-quality, traceable, and sustainable raw materials. The supply of palm oil has been strengthened, and in April, the French province oil company, which mainly deals with palm oil, joined the Fuji Oil Group. In Ghana, Fuji Oil Ghana is aiming for stable operation of production equipment, and we are moving forward to stable supply of shea butter. As for the North Korean region, We will use the knowledge we gained from the beginning of the industrialization to make use of this animal-based compost. We will also focus on the product that utilizes its own acidification technology. By responding to the needs of diversification and creating sustainable food resources, we will be able to solve long-term social issues We will continue to improve the value of the product portfolio. Please see the next page. Next is the business chocolate business. As for the strengthening of existing areas, we will work to improve the profits of Brahma first. As I explained in the introduction of the processing business earlier, the growth strategy of Brahma is We will proceed with the replacement of the product portfolio and the business development of compound chocolates. We will also develop sugar-free and high-protein chocolates, which we are good at in the past, as compound chocolates, and sell products that meet market needs from both functions and costs. In Chicago, we opened an R&D center, so this facility is the center, and we will continue to promote compound chocolate in the U.S. In addition, we will continue to expand compound chocolate in the global market. In 2024, the demand for compound chocolate expanded in the background of Kakao Daka. Here is an example. In Brazil, we have continued to sell compound chocolate that uses CBE, and in Gaucho, we have continued to sell low-carb chocolate in compound chocolate. We will continue to strengthen these products and implement equipment investment in each area to increase the number of sales. In terms of expanding the supply chain, In the current situation where the price of cacao is still high, we have already released a new milk chocolate type product that does not use cacao beans at all as a product equipped with deliciousness and cost performance. It is also possible to use as it is, and by mixing it with existing chocolate, the cost is reduced, so we have received high reviews from our customers. We will continue to develop products and imagine the market by solving these problems. Please see page 26. First of all, regarding the import and export material business on the left, the existing area has been strengthened by the strengthening of sales in China. We are struggling with sales along with the stagnation of supply and demand, we would like to measure the sales recovery by promoting the proposed business that has been established in Japan. As for the challenge area, we will expand this product to the new market using unique materials unique to Fuji Seiyu. The soy milk cream butter is a product using Fuji's unique soy milk material, but the new functionality and quality, which are different from the general butter, have been evaluated and the sales volume has been greatly increased. We will strengthen the product of discrimination and improve the revenue. Finally, I would like to talk about soybean processing materials. In 2024, we will continue to improve the business, such as improving the production of soybean protein foods in Japan. As for strengthening existing areas, we will continue to improve the profitability by replacing the port folio. As for the expansion of the challenge area, we will continue to expand the sales of problem-solving products. In 2024, the achievement of new products with market needs will continue to increase. In 2025, we will continue to strengthen the sales of problem-solving products and increase the fulfillment of the line-up. Last but not least, Fujisei moved to a sub-company company and decided to move to a manufacturing company. Fujisei's DNA is to solve customer and social problems with the power of technology. The problems of the earth, social problems in each area, and customer problems, In addition, by contributing to the problem-solving of each phase, such as the personal problems of consumers, we will increase the value of the service. In addition, we will also develop a business model in Japan for overseas group companies. It is essential to develop human resources. In the summer of this year, we will announce the mid-term management plan. This time, the change in the company system and the change in the management of the company are overlapping, and the announcement will be dragged into the 25th year, but I would like to once again show you what Fuji Seiyu is aiming for. Thank you for your attention.