Fuji Oil Holdings Inc

Thank you very much for participating in our second quarter of the fiscal year of 2025. First of all, I would like to explain the results of the fiscal year and the follow-up forecast. I will explain the current situation of Brahma Company later than Tanaka, the CEO. Thank you very much. Please take a look at the second page. This is today's agenda. I will explain in order of the second half of the year, the performance forecast of the second half of the year, and the operations of the plumber. Please take a look at the fourth page. This is the performance of the second half of the year in 2025. The net profit is 5.97 billion yen, which is 3,757 billion yen. As for the business profit, it is 15.4 billion yen, which is 8.7 billion yen. As for the intermediate profit, it is 8.5 billion yen, which is 6.5 billion yen. First of all, about the net profit, we have to take into account as the price of raw materials increases, and the sales price is optimized. As for business profits, we have seen a significant increase in the cost of chocolate for plant-based oil production and the cost of the cost of cacao for the U.S. Brahma company in the business chocolate business. In addition, the negative impact of 7.8 billion yen on the Kakao special services in the second quarter of the fourth quarter was the negative impact of 7.8 billion yen. In this regard, the actual business profit was 23.1 billion yen, and it was an increase of 6.6 billion yen compared to the previous year, including Kakao special services. In terms of intermediate profits, the growth of the plant-based oil business and the reduction in costs of the special effect of cacao from Brahma increased. Please see the 5th page. I will explain the business profits by business. In the plant-based oil business, in addition to the rapid sales of CBE, the optimization of sales science also contributed to the increase in profits. In addition, the number of sales of frying oil has also increased. In the business chocolate business, the sale of compound chocolate is currently in decline. In the case of Brahma, the number of sales of pure chocolate has decreased due to the decline in US chocolate consumption, but in addition to the price optimization, the cost of cacao special effects has decreased, resulting in an increase in the business chocolate business. In the import and export business, the price of raw materials such as oil and other materials rose in advance, leading to a decline. In the soy processing material business, the number of sales of functional materials for drinks decreased, leading to a decline. Please see the 6th page. This is the Waterfall Chart of all-year and same-year business profits in the fourth quarter. In the past, we have considered and demonstrated the effects of the special effects of cacao from raw materials and other factors, but since the reduction in the effects of special effects of cacao is ongoing, I will explain it as a comparison of the joint business profits from this period. First of all, regarding the quantity factor, the sales volume of the plant-based fertilizer business CB and the non-fertilized fertilizer has increased by 400 million yen. As a result of the increase in the price of raw materials, the sales price has been optimized. In addition, the sales price of CBE, a plant-based oil company, has increased by 14.3 billion yen. In terms of fixed costs, expenses, and exchange rates, the fixed costs of human resources have increased by minus 6 billion yen. As a result, the business profit increased by 8.7 billion yen to 15.4 billion yen. From now on, if we consider the Kakao special forces of Brahma, the actual business profit was 23.1 billion yen. Please see the 7th page. I will explain the balance sheet and cash flow. First of all, about the balance sheet, In addition to the rise in raw material prices, assets have increased due to the acquisition of new joint companies. In addition, the increase in driving capital has also increased in debt. Next is the cash flow. The sales cash flow improved at the same level as the previous year due to the progress of the price reduction. The investment cash flow and 33.1 billion yen as a result of the acquisition of the new joint venture company. Regarding the advantage and disadvantage of the balance sheet, the paper machine was recommended at a high level as a result of the increase in operating capital, but in the case of the paper machine, it is thought that improvements will be made by improving the efficiency of revenue and operating capital. We recognize that this is one of the important issues in terms of welfare. We will continue to reduce welfare. Please see page 8. Page 8 is a matrix between the business and the area, so please refer to this. Please see page 10. Next, I will explain the performance forecast for the second quarter. In Kamiki, plant-based oil production business was the focus of sales of CBE. With the rising price of cacao, the consumption of chocolate and the price of raw materials, as well as the continued deterioration of China's economy, and the uncertainty of the Trump administration policy in the U.S. have been considered risks. Since it is very difficult to determine at this point, We decided to postpone the planning for the next phase. However, the current sales status of CBE and compound chocolate is in good condition. In terms of the situation of the Brahma company, we are losing to Kamiki, but we are progressing according to the plan, and the joint business profits of Kamiki have been increased in terms of the company's planned expenses. We believe that the sales status of CBs will not change significantly for the future. We will make sure that the risk situation that we have raised is firmly understood and the impact will be minimized. If there is a situation that needs to be corrected at the stage when the future is expected, we will proceed with the response so that we can show it to everyone at that time. I will explain each segment in detail on the next page. Please take a look at page 11. This is an outline of the profits for each segment. As for the plant-based oil production business, in addition to CB, the sale of non-fertilized oil has also increased significantly. The paper machine has been increased in the same period of time as the previous year. As for the paper machine, we will continue to provide stable supply of CBE, while paying attention to the consumer behavior of raw materials prices and chocolate sweets. The demand for CBE at our feet is still intense, and we believe that it is important to supply these demands stably and stably. In terms of production, full capacity is still in place, By optimizing and strengthening the production system, we will continue to respond to strong demand. In terms of sales, the current order is going well. However, there is a weakness in chocolate demand. This is seen globally, so we will continue to follow customers and sell CDs. In terms of the efforts in the Chosun area, we have developed the MERABIO series in October 2025. This is a new brand that combines the freshness and healthiness of plants in addition to the sweetness of animals and grains, and the kneading of sauces and dumplings, and is currently in progress. We will continue to enhance the proposal for processed food for the first time. Please see page 12. In addition to Brahma's achievements, we continued the demand shift from paper machine to pure chocolate to compound chocolate, and the sales increased significantly. Due to the rising price of cacao and yu-c, it became a source of revenue at the same price as the previous year. In the case of Shimo, it is necessary to stop the consumption of chocolate, We will continue to secure profitability while promoting the optimization of prices. We think that the demand shift from pure chocolate to compound chocolate will continue in the future. We are planning to expand capacity in each area in the coming year by investing in equipment that should take in these demands. Although the demand is weak, we will continue to optimize the price by utilizing technology such as oil and paper and continue to propose and distribute compound chocolate, which will lead to stable growth. In terms of efforts in the challenge area, we are strengthening the product development of cacao bean raw materials. Here is a picture of ANOZA-M, which is developing products in Japan. We are in the midst of an environment where the price of cacao continues to rise, but we have received reviews of the deliciousness and ease of handling of the product itself, and we have received very good responses from our customers. As for these cacao raw materials and unsuitable products, we will continue to develop cacao beans raw materials and unsuitable products not only in Japan but also overseas. Please see page 13. I will explain the reform and growth strategy of Brammer in detail after this. First, I will explain the performance of Brammer. Since last year, the loss has continued due to the influence of the high price of cacao, but the measures for reducing the influence of cacao's special effect have progressed, and the progress has been almost as planned in the Kamiki area. Since the beginning of this year, we have been looking forward to the improvement of Kakao's special features, and we believe that it is time for profit improvement. In addition, in the second half of this year, the sales volume was 48.3 billion yen, and business profits were minus 2.1 billion yen. Among them, it was analyzed that Kakao's special features were minus 3.7 billion yen, In addition to that, the actual business profit was plus 1.6 billion yen. Next, I would like to talk about the special features of Kakao in the second quarter. First of all, we have reduced the position of Kakao in our account. As a result, the occurrence of loss of evaluation has been greatly reduced, and we do not expect the occurrence of loss of evaluation in the future. The sales price has risen according to the plan in the second half of the sales period, and we believe that improvements will be made to the stock price. In addition to the development of the replacement cost, the second half of the sales period was affected by the loss of the stock's one-off evaluation source. However, if we look at the past six months, the cost of replacement for the previous month has been the same as planned, and since the beginning of this year, we have seen improvements in the cost of replacement due to the progress of price changes. In addition to the Kakao special services, the business profit has been improved by the increase in the number of sales of compound products and the price reduction effect, In addition to the Kakao special agents in Kamiki, we have secured 200 million yen and Kuro-ji. In terms of the future investment, we are looking forward to the recovery of profits through the strengthening of the management system at Brahma Inc. In addition to the progress of the reduction of Kakao special agents, we are looking forward to the recovery of profits through the optimization of the sales price and the distribution of compound products. We will continue to respond to the growth trend. Please see the 14th page. In the import and export material business, the paper machine has advanced in price optimization, but the price of oil and other raw materials has risen in the past and has become the current price. As for the paper machine, in addition to improved productivity due to the optimization of price, We will strengthen the proposal of a high-value product group, including the Onjiku Fromage series. In the soy bean processing material business, the paper machine has become active due to the decrease in the number of sales of functional materials for beverage manufacturers. As for the paper machine, we will be using a new product such as Soya Cell, which is a problem-solving new product that improves the workability of customers, I would like to improve the performance. This is my explanation. In Kamiki, the wind blew due to changes in the external environment, mainly due to the oil production business, and we were able to increase the results that exceeded the plan. In addition, we have strengthened the management system of Brahma, and we have also reduced the impact of the change in the Kakao price. In the Fuji Group, I would like to carry out a growth strategy while establishing a synergy within the FUJI group. We will continue to work hard to achieve the long-term plan. Thank you for your support. Thank you for your explanation. Thank you for your attention.

Next, I would like to explain from Tanaka, the highest executive officer. Mr. Tanaka, please.

I am Tanaka, the COO. I would like to explain the efforts of the Brahma company. In the case of Brahma, we are very worried about the future of the company, but we will continue to respond to the problems of the company, as well as to the Kakao Kakao Co., Ltd. from last year. I would like to explain the current situation of Brahma to everyone. Thank you for your cooperation. First of all, I would like to take a look back at the reason why we purchased Brahma and its purpose. FUJISEI Group has designed a business chocolate business as a driver for future global growth areas. Since 2015, we have been actively developing M&A, and we have been pursuing business purchases in Brazil, Malaysia, and Australia. In the course of this extension, we implemented the acquisition of Brahmansha, which has a history of brand power in the market, in cooperation with North America, which is the largest consumer country of the United States. The aim of the project was to sell compound chocolate using the technology that Fujiseyu is good at using in the use of brand power and sales. Since the acquisition of Brammer, multiple issues have been intensified due to the changes in the external environment. I would like to summarize the two issues and explain them in detail. The first point is on the left. It is the response to the change in the external environment after the sale. The second point is the response to the rise in the price of cacao beans, which has been in full swing since 2024. The first point is the potential of the problem caused by the change in the US market environment after the sale. More specifically, we have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have also identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. We have identified as a problem for Brammer as well as for the supply and demand of the equipment. As a result, the press margin here is greatly deteriorating, which leads to a large decline in assets. At the same time, in the United States, the inflation in post-corona, the rise in the gold market, the change in the labor market environment, and the delay in these price increases have led to a decline in profitability in Burma. As for the second point, it is written on the right side, but it is a trend called the rise in cacao prices. Since 2023, in West Africa, which is the main main producer of cacao beans, we have seen a decline in weather issues for two consecutive years, including in Cote d'Ivoire and Ghana. This is due to the rise in prices that have not been seen in the past, as well as the decline in price in the food market. In the past, the hedging method used by many chocolate makers did not work. This is called the Kakao special unit, but the cost associated with it has been greatly increased. In addition, as the price of chocolate increases with the rise of Kakao, the cost of chocolate and its consumption will be reduced. In other words, it is a problem that leads to a decrease in revenue. Since the purchase, I have been faced with two major issues. I would like to explain the progress of the structural reform that was announced last year as the first point of response. I will explain the progress of the structural reform in response to the first point of response that I explained earlier. Regarding the closure of the Chicago factory, which was divided into three steps, we stopped production in March 2020 and completed all operations in the first quarter of the same year. We have realized its effect. Regarding the Chicago factory, the problem of equipment aging was big, but we decided to close it and implement it. In addition, the production transfer to other factories was also managed within the same year, and we believe that we have achieved the goal of reducing the cost reduction of $30 million, which was expected as an improvement effect. In addition to the reduction in the production cost described above, we believe that we have achieved a certain effect in terms of the optimization of the overall production of Brahma. Next, I would like to talk about step 2, which is described in the middle. In terms of the optimization of the Kakao processing business, we aimed to strengthen the governance of Brammer through the strengthening of the Kakao processing business. The answer is the reshaping of the same business as the closure of the Chicago factory, as well as the revision of the contract that is being sold outside the company in the Kakao processing business, including the enhancement of position management, and the enhancement of risk management. Unfortunately, in terms of the fiscal year 2024, although we were in the middle of dealing with it, as I explained earlier, because of the sudden change in the Kakao market, we were able to cause a major loss due to the increase in costs over the response period, but due to the correctness of the Kakao business, In addition, we believe that there is a certain effect in improving the supply method, including management enhancement, as well as the improvement of the supply method, including high-end and medium-sized companies. In addition, the burden that occurred in 2024 regarding the emergence of the past special forces that I have explained so far is still affecting the year 2025, but we see that it will become the peak of the peak period. Despite the changes in the external environment due to these two efforts, the reform will definitely progress, and the current profit-making improvement of Brahma is expected to proceed well in the future. Step 3 is the promotion of the strategy of discrimination, which is written on the far right. I will explain this on the next page, but including the development of compound chocolates of CB, which used the technology and know-how of the Fujise Group, In addition, we are currently working on the development of component chocolate with functional components that are good for people with disabilities. We want to strengthen the response as the axis of the future growth strategy of Brahma. Please see the 19th page. I will explain the growth strategy of Brahma, which is in step 3 of the structural reform that I explained earlier. As I have explained so far, the profitability improvement due to the reform of the Brammer structure and the reduction in the impact of the change in the cacao price have been made. In the future, we think that it is necessary to mix compound chocolate of high-functioning compound chocolate, which is a specialty of Fuji, for future growth. For this reason, in terms of production, the expansion of production capacity due to equipment expansion at the Campbell Ford factory in Canada, or the construction of a stable production system. In the sales field, we are working together with organizations and employees to strengthen the marketing of compound chocolate. In the development field, we are working together with the development of new products to strengthen customer support through the opening of the Chicago Islandie Center. In addition, in order to accelerate our efforts, in addition to the adoption of specialized human resources in the local area, additional human resources will be sent from Japan, which is what we are currently doing. As I explained earlier, we are currently working on the development of a real-time product that utilizes high-quality and high-functional products. The high price of cacao since 2024 has had a very severe impact on Brahma, which is true on the one hand, It is believed that this will be a chance for Brahma to grow. In the past, in the American market, pure chocolate was the main market, but in the past, in the market of cacao, the attention and understanding towards CB compound chocolate has gradually deepened in the customers. We have received evaluation of its functionality, and many customers have adopted it and are now considering it. As a result, some achievements have been made in the year 2025, and we hope that you will understand that we are in the process of making a full-scale effort with the expansion of the production system after next year. In the case of the further expansion of COMPANO CHOCOLATE, the construction of Campbell Ford, which is scheduled to start in 2026, In addition, we will make full use of the technology of the FUJISEI Group to pursue functionality and high-price prices, and we will proceed with development of services for ice coating and aging. We are thinking of moving to the phase of improving the profitability of Brammer by advancing the strategy that we have just explained and increasing the price of high-price products. Finally, I would like to talk about the second issue that I explained earlier, which is the supply and demand of cacao prices. As I explained in the reference slide, we are also working on the response of our own company, ZAIKO KANRI and SANCHITA KAKUKA. As I explained in the reference slide, the supply and demand of cacao prices has been adjusted with the supply and demand of the past two years. As a result, due to the adjustment of demand, we see that the cost-effectiveness of demand is becoming more and more balanced. We are also working on risk management in this period. We are also working on risk exposure management by enhancing the risk management of risk management through high-risk management. Even if the situation is the same again, I think that we are in a position to minimize risk. Given these circumstances, I think that there will be changes in the market and the environment in the future, but we want to make appropriate and rapid response to them to minimize the impact and realize the growth strategy of Brahma Share. Thank you for your attention.