Fuji Oil Holdings Inc

Today, I would like to thank the CEO of Fuji Seiyu for participating in the settlement explanation session. I would like to explain the settlement of 2025, which was announced yesterday, as well as the performance forecast for 2026. Please see the second page. This is today's statement. I will explain the achievements of the year 2025 and the performance forecast of the year 2026 in the order of focus projects. Please look at page 4. This is the achievement of the year 2025. The sales volume increased by 1,011 billion yen to 7,723 billion yen. The business profit increased by 2,28 billion yen to 3,60 billion yen. The total profit was 7.3 billion yen, which is 11.1 billion yen. First of all, in terms of sales value, we increased sales value as the price of raw materials such as palm oil and cacao rose, which is the main raw material. As a result, we increased sales value. Next is business profit. In the plant-based oil company business, The sale of chocolate oil and CBD has increased significantly. In addition, in the U.S. Brammer, which is a business chocolate business, the cost of special oil related to cacao decreased from 30.5 billion yen in 2024 to 1.4 billion yen in 2025, resulting in an increase in sales. As we announced on April 24, we are dismantling the loss-loss situation related to Brahma and Kurinobu tax cuts. This is due to the decrease in the number of sales due to the long period of demand stagnation in the U.S. and the increase in fixed costs due to the strengthening of management. As a result of the change in the initial business plan and results, necessary treatment. As for the total amount of money, the loss of Noren was 4.1 billion yen, and the loss of Kurinobe Tax Credit was 5.1 billion yen, which is a total of 9.3 billion yen. As a result, the total net profit of 2025 was 1.1 billion yen. Please see the following page. I will explain the business profits by business. In the plant-based oil production business, we were able to secure the supply of raw materials through the stable price of palm oil, which is the main raw material. In addition, in terms of CB, we aimed to optimize the sales price in addition to the high sales. In the business chocolate business, the sales of compound chocolate were high. In the United States, the number of pure chocolate sales has decreased due to the decline in the number of chocolate products, but in the business chocolate business, the sales of pure chocolate have increased due to the decrease in the amount of special effects of cacao in addition to the correctness of the price. In the import and export material business, in addition to the rise in the price of raw materials, and the number of sales decreased, resulting in a decline in sales. In the daizuka processing material business, we advanced the reduction of fixed costs, such as promoting resumption of business, but the number of sales of functional materials for drinks decreased, resulting in a decline in sales. Please see the 6th page. This is a waterhole chart for all-year business profits. First of all, in terms of quantity, the sales volume at the Brahma, a chocolate business for business use, has decreased, but the increase in the sales volume of CBE, a plant-based oil company, has increased by 700 million yen. In terms of cost-effectiveness, in addition to the optimization of the sales price as the price of raw materials increases, the sales price of CBE, a plant-based oil company, has increased. This added up to 3.28 billion yen. In terms of fixed costs, expenses, and exchange rates, the increase in fixed costs such as human resources cost increased to minus 10.7 billion yen. As a result, the business profit increased by 22.8 billion yen to 3.6 billion yen. Please look at page 7. I will explain the performance of Brammer. In the year 2025, we have been working on the biggest theme for the continued implementation of the Brammer structural reform project. The impact of the Kakao project has continued to remain, but the reform is progressing. The business profit is minus 1.4 billion yen, of which the Kakao special purpose unit is minus 1.4 billion yen. In February, we announced that the Kakao project Kakao's special agents are in a slump, but some of the sales were delayed towards the end of the year, leading to a decline in costs. In addition to Kakao's special agents, the business profits have deteriorated due to the formation of a one-off cost in the fourth quarter, but the revenue structure is improving. Since Kakao Kouto, In the end of 2025, various measures were implemented to reduce the number of special effects of cacao, and it became a manageable standard. In the year 2026, some of the effects remain, but it is limited. I will explain the growth strategy of Brammer in 2026 later. Next is page 8. I will explain the performance forecast for the year 2026. Please take a look at page 9. This is the performance forecast for the year 2026. The sales value is 7,540 billion yen of 18.3 billion yen. The business profit is 3.75 billion yen of 15 billion yen. The total profit is 195 billion yen of 8.4 billion yen. We are planning to reduce sales by reducing the price of raw materials, such as cacao, and reducing the price of sales. As for business profits, we are planning to increase profits mainly in the business chocolate business. I will explain about each business in the next page. As for the current profits, In addition to the reaction of the loss of raw materials in Brahma, which was formed in the previous year, we are planning to increase our profits by increasing our business profits. Please see the next 10 pages. This is a waterfall chart for the business profits expected in 2026. First of all, in the business chocolate business, in addition to the profitability improvement in Brahma, The new facilities that are planned to operate in each area are expected to improve by 13.1 billion yen. The import and export materials business and the soy production materials business are expected to improve by 500 million yen each. In the plant-based oil and gas business, we secured the raw material supply in 2025, but at the foot of the line, the plant-based oil and gas supply is at a high level, However, as of 2026, it is estimated that we will not be able to import raw materials, which is minus 9.1 billion yen. I will explain this idea later. In addition, the entire group will consider the risks such as the Middle East situation, US inflation, and changes in raw materials sales and market movements, On the other hand, we are planning a business profit of 3.75 billion yen in the year 2026 by investing minus 3.5 billion yen. Please see the 11th page. I will explain the situation of the balance and cash flow. First of all, the balance sheet. In the year 2025, net profit and loss have increased due to business investment. As for the driver's license, it was greatly improved in the fourth quarter due to the influence of the rise in the price of cacao, but it is at a high level due to the influence of the rise in the price of cacao. By the end of the year, the price of cacao stock will also drop and the recovery of the market share will continue, and it is expected that the reduction in net interest rates and the improvement of the net D ratio will continue. When it comes to the timing of the strategy investment, we will continue to implement measures to achieve the goal of net D ratio and net net profit and loss in 2027, although there is a slight delay in the net net profit and loss. Next is the cash flow. By improving the capital of the driver in the growth of profits and in Brammer, The sales cash flow has improved significantly, and the free cash flow has also increased. Even in the year 2026, we will continue to improve the average price of raw materials and the growth rate. Please see the 12th page. I will explain the FUJI LOIC and its response policy. First is the FUJI LOIC. In 2025, we maintained a high level of growth due to the growth of profits in the plant-based industry. In addition, in the chocolate industry, the driving capital continued to be high, but the loss improvement in Brahma and Fuji-Roeck improved from 2024. As a result of this, Fuji-Roeck in all companies from 2.1% in 2024 to 5.1% in 2025. In the year of 2026, the growth of profits in chocolate for business has become a driving force for growth. In addition, by implementing all kinds of measures, including the resumption of the business in the soy processing industry, we will be able to achieve more than 6% in the year of 2027. We will continue to work on it. Next, I will explain the disbursement. In 2025, the annual disbursement of 52 yen per share is scheduled. At the end of the year, there was an overhaul of the total profit, but we are planning to implement the disbursement as promised by the secretary. In the year 2026, the annual disbursement of 52 yen per share and we are planning to raise it to ¥10,000, which is ¥62,000. In the past, we have been focusing on 30% to 40% success rate, and we have been implementing stable and continuous disbursement. We believe it is important to meet the expectations of our shareholders, The sales success rate in the year of 2026 is 27%, which is a level that goes down in the range, but we will consider it while keeping in mind the progress of profits and the market environment as well as the additional returns. Next is page 13. Page 13 is a summary of the sales success rate in the year of 2026 regarding It is a matrix, so please refer to it. Page 15. From here, I will explain the ten-point measures for each business. In the plant oil business, the business interest in 2026 is 9.1 billion yen, and the current interest is 2.43 billion yen. In 2025, From the base to the paper, we were able to secure the recycling of raw materials by stabilizing the production of palm oil in the main raw materials. In the year of 2026, there was an influence of the Middle East situation, and the level of plant fertilizers and fertilizers was high at the foot, which was one of the reasons for the increase in demand in the year of 2025. and we are making a plan to reduce the amount of weight. As for the chocolate brand CB, the demand has continued to rise since the start of the Kakao price, and we have received high reviews from new customers. Even in the year 2026, the supply of our compound chocolate was reduced in terms of quantity It is expected that demand will continue to be high. In terms of revenue, sales have increased due to increasing demand in 2025. In the year 2026, we will proceed with a sales strategy that utilizes competitiveness. On the other hand, as a result of the decline in the price of cacao since the beginning of the year, There is a risk that some sales prices may be adjusted. We have made a budget for this. Next, I would like to talk about the strengthening of the supply chain. From the beginning of the year 2026, JPG Fuji, a joint venture company that specializes in environmental response, such as artificial oil, will start operation. This makes it possible to manage the farmland from the farmland to the crop. We will increase the reliability of supply stability and quality, and we will continue to strengthen the competitiveness of the plant-based seed business in the medium and long term. Please see page 16. I will explain the business chocolate business. In the year of 2026, we are planning to increase our business profit by 15.5 billion yen, which is 13.1 billion yen. Over the past two years, the global consumption of chocolate sweets has continued to cool down due to the rise in the price of cacao, but even in such an environment, we have been able to expand the sale of compound chocolate, which utilizes oil technology in the Fuji Seiyu Group. It is a great achievement to be able to increase the recognition in the market about the strength of quality, stability, and functionality. The price of cacao, which recorded a historical high, continued to fall, and we will continue to sell compote and chocolate because the recovery and demand expansion of the chocolate market are expected to be seen in the future. We are implementing equipment investment in five locations around the world. In the first quarter of 2025, new lines will be launched in Brazil. In the second quarter of 2026, new lines will be launched in Japan, in the first quarter in the United States, in Australia and in Australia. With these measures, the number of chocolates sold by the entire Fuji Seiyu Group decreased in the year of 2025, but as a whole, we were able to maintain a level close to the year of 2024. In the year of 2026, we raised it to 105% in the year of 2024, and in the year of 2027 we raised it to 110% in the year of 2024. We will achieve profit growth through the effect of equipment expansion. Please see page 17. I will explain the measures for Brahma. The business plan for Brahma in the year 2026 is that the sales value is 1,621 billion yen of the original revenue of 2.22 billion yen, and the business profit is 1.44 billion yen of 30 billion yen. In the year 2025, in Brahma, the continuation of cacao special effects and the rise in cacao prices led to a very severe market environment as chocolate consumption in the U.S. declined. On the other hand, after the announcement of the structural reform, we have been working on implementation of price reduction and revision of raw material revenue management, It has been a year in which we have steadily advanced our efforts to rebuild. In the year of 2026, we are planning a large-scale improvement of the Kakao special effect, improvement of the one-off cost, and the compound chocolate mix. First of all, regarding the Kakao special effect, it will continue until the first quarter of the year of 2026, The sale price has been reduced, and in the second quarter, we expect to see a reduction in Kakao's special features. In addition, as for the improvement in one-off cost costs, in 2025, there will be a change in incineration for Chicago factories, and about 1 billion yen in one-off cost costs for the fourth quarter will occur, but this is not expected to occur in 2026. This is the cause of the increase in sales. In addition, the results of profitability improvement due to the compound's discharging effect have also appeared consistently, and we are seeing improvements of 3 billion yen. First of all, it is market recognition. The American chocolate market is expected to recover with the stability of the cacao price. In terms of market recovery, We will definitely continue to sell compound products. As for the sale project, the Canadian Campbell Ford factory's new line is scheduled to start operation in the second half of the year in 2026. This new line will manufacture compound chocolates using Fuji-Seiyu's UC technology to answer customers' problems and strengthen the proposal for problem-solving. In addition, to support these measures, we are also maintaining the system at the same time. As for the sales system, from Japan, we are expanding the number of employees, including middle-class employees, in the development business. In addition, as for the production system, we have increased the number of middle-class employees related to production from Japan to a large extent in order to improve productivity of the East Greenville factory, which is a major factory. In addition, we have increased the number of middle-class employees related to We are implementing the enhancement of the production system. With these initiatives, we aim to expand the sales volume of CB Compound. Since its release in 2025, customers have evaluated it in terms of quality and functionality, and the sales contract for the 2026 year has also progressed as planned. In the future, we will continue to promote CB Compound, By promoting the functionality of compound products, sales will increase to 150% by 2024 in 2027. Through these initiatives, we will re-establish the revenue base of Brahma. Please see page 18. I will explain the import and export material business and the soy processing material business. First of all, the import and export materials business. In the year of 2026, the business profit was planned to be 1.6 billion yen. In the year of 2025, as the inflation in the Japanese market intensifies, it is believed that a permanent sale, including new product proposals, has been secured. In the year of 2026, We will continue to upgrade our high-quality products using the new technology. In addition, we will develop applications in Japan for Southeast Asia and Chinese group companies. We will also increase our profitability by optimizing our manufacturing in overseas locations. Next is the soy processing material. In the soybean processing material business, in 2026, there will be a improvement of 500 million yen in total cost. However, we expect 400 million yen, 500 million yen improvement of 400 million yen in business loss. However, at our feet, the intake needs of protein, including whey protein, are increasing, and we are also paying attention to soy protein. In addition, in 2025, In terms of functional materials for drinks, the number of sales has dropped significantly, but we are advancing the strengthening of the sales system. In the year 2026, we will continue to improve profitability by actively calculating the price of soy protein materials and functional materials, along with the recovery of sales. Please see the 19th page. I will explain the challenge area. In 2025, it was a year that focused on the expansion of the Korean product sector. By shaping products that meet the challenges faced by customers and society, several initiatives have begun to emerge as a result of both quantity and revenue. Specifically, Melavio, a plant-based oil company, In addition, the results of the CBE compound chocolate in the business chocolate business, Brahma, have been shown. In addition, in the import and fermentation material business, in April of 2026, we launched the new brand of plant-based fermentation material, the Dairy series. In the soy processing material business, we have developed a series of products we have launched a solution-solving product, and we are actively adopting it. In addition, we have developed plant-based dashi and miradashi, which combine the technology of yu-shi, nyu-ka, and da-i-zu, and we will continue to expand the product line-up, and we will continue to expand overseas, not just in Japan. At this point, the scale of the North Korean region It is still part of the previous business, but I feel that it is a solid answer as an area that will be the pillar of future business. In the year 2026, we will continue to strengthen the efforts of these challenging areas. Please see the 20th page. Finally, I will explain the progress for achieving the medium-term management plan. First of all, the year 2025 is the first year of the transition from a business to a subsidiary company. In terms of organization and business, we feel that this year is the right year to build a foundation for the next growth. Also, in terms of business, from 2024, Brammer and Kakao Tokushu Yoin, due to the low demand in the US market, Thank you for your concern, but as I explained, we were able to implement measures that will lead to recovery in the year 2026. As a FUJISEI Group, we were able to focus on each business headquarter under the new system, and we were able to update the business profits of 3.6 billion yen and the past highest interest rates. The ROE is 5%, the FUJI-ROIC is 5.1%, It is not yet a satisfactory level, but improvements have been made since 2024. Including the plan for 2026, the overall progress is as planned for the goal of achieving the goal in 2027. Regarding the business profit target of 3.75 billion yen in 2026, There may be some people who will accept it as conservative. However, this goal is set up with the intention of taking the risk of the Middle East situation, the American debt, and the change in the raw material market. In addition, we will create a synergy throughout the industry, focusing on business chocolate business in 2026 and 2027. We will definitely achieve the goals of the medium-term management plan by making sure that the growth of the Fuji Seiyu Group is certain. Thank you for your continued support of the Fuji Seiyu Group.