Summary of Consolidated Financial Results

For the 1st Quarter Ended June 30, 2022 (Japanese Accounting Standards)

July 29, 2022

Company name:

Fuji Nihon Seito Corporation

Listing: Standard Market of Tokyo Stock Exchange

Stock code:

2114

https://www.fnsugar.co.jp

Company Representative:

Seiji Sakurada, President and Chief Executive Officer

Contact person in charge:

Atsuko Yoshimizu, Director & Executive Officer, Division Head of Administration

TEL.81-3-3667-7811

Planned date for submission of quarterly financial report:

August 10, 2022

Planned date to start dividend payment:

―

Preparation of supplementary material for quarterly financial statements: None

Briefing session for quarterly financial statements:

None

(Rounded down to millions of Japanese yen)

1. Consolidated Financial Results for the 1st Quarter of Fiscal Year 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated Results of Operations

(Percentages are shown as year-on-year changes)

Net sales

Operating Profit

Ordinary Profit

Profit attributable

to owners of parent

The 1st quarter ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

June 30, 2022

5,336

10.6

475

51.3

608

74.4

480

37.3

June 30, 2021

4,825

8.4

314

2.4

348

(15.5)

350

25.2

Note: Comprehensive income

The 1st quarter ended June 30, 2022: 544 million yen (37.1%)

The 1st quarter ended June 30, 2021: 397 million yen (9.4%)

Net Profit

Diluted Net

per Share

Profit per Share

The 1st quarter ended

Yen

June 30, 2022

17.91

―

June 30, 2021

13.05

―

(2) Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

As of

Million yen

Million yen

％

June 30, 2022

25,936

19,908

76.9

March 31, 2022

24,745

19,712

79.8

(Reference) Shareholders' Equity: As of June 30, 2022: 19,951 million yen

As of March 31, 2022: 19,755 million yen

2. Cash Dividends

Cash Dividend per Share

1Q

2Q

3Q

4Q

Annual

Year ended

Yen

Yen

Yen

Yen

Yen

March 31, 2022

―

0.00

―

13.00

13.00

March 31, 2023

―

Year ending

0.00

―

14.00

14.00

March 31, 2023 (forecast)

Note: Revision of the dividend forecast announced most recently: None

Breakdown of dividend for the fiscal year ended March 31, 2022:

Ordinary dividend 11.00 yen, 20th anniversary commemorative dividend 2.00 yen

3. Consolidated Business Forecasts for the Fiscal Year 2023 (from April 1, 2022 to March 31, 2023)

(Percentages are shown as year-on-year changes)

Net Sales

Operating Profit

Ordinary Profit

Profit attributable

Net Profit

to owner of parent

per Share

Million Yen

%

Million Yen

%

Million Yen

%

Million Yen

%

Yen

Year ending March 31, 2023

21,100

5.0

1,350

(15.9)

1,550

(19.2)

1,150

(28.8)

42.83

Note: Revision of the business forecasts announced most recently: None

  • Notes
  1. Significant changes in subsidiaries during the period
    (Changes in specified subsidiaries resulting in changes of scope of consolidation): None
  2. Application of accounting method unique to preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policy and accounting estimates, and restatement
    1. Changes in accounting policy due to any revision of accounting standards: None

(ii) Changes in accounting policy other than (i) above:

None

(iii) Changes in accounting estimates:

None

(iv) Restatement:

None

(4) Number of outstanding shares (common shares)

Unit: 1 share

(i) Number of outstanding shares at the end of

As of June 30,

29,748,200

As of March 31,

29,748,200

period (including treasury shares)

2022

2022

(ii) Number of treasury shares at the end of

As of June 30,

2,896,344

As of March 31,

2,896,344

period

2022

2022

(iii) Average number of shares during the period

As of June 30,

26,851,856

As of June 30,

26,851,941

2022

2022

※ Summary of Consolidated Financial Results is exempt from the audit review before this disclosure.

※ Explanation on appropriate use of business forecasts, and other special notes: (Caution regarding forward-looking statements)

Business forecasts and other forward-looking statements contained in this report and supplementary materials are based on information currently available to the Company and on certain assumptions deemed as rational and are not intended to guarantee the achievements by the Company. Actual results may differ significantly from such forecasts due to various factors. For assumptions used for business forecasts and notes in using such forecasts, please refer to "(3) Qualitative information regarding consolidated business forecasts" in "1. The Results for the 1st quarter of Fiscal Year 2022" on page 3 of the Appendix.

○Appendix

1. The Results for the 1st quarter of Fiscal Year 2022………………………………………………………………...

2-3

(1) Qualitative information regarding consolidated operating results …………………………………………….

2

(2) Qualitative information regarding consolidated financial position …………………………………………….

3

(3) Qualitative information regarding consolidated business forecasts ………………………………………….

3

2. Quarterly consolidated Financial Statements……………………………………………………………………….

4-9

  1. Consolidated balance sheets……………………………………………………………………………………... 4-5

(2) Consolidated statements of income and consolidated statements of comprehensive income……………

6-7

(3) Notes on consolidated financial statements……………………………………………………………………..

8-9

(Notes on assumptions of going concern) ……………………………………………………………………..

8

(Notes on occurrence of significant changes to shareholders' equity) ……………………………………...

8

(Segment information, etc.)………………………………………………………………………………………

8-9

(Notes on occurrence of significant subsequent events) …………………………………………………….

9

- 1 -

1. The Results for the 1st Quarter of Fiscal Year 2022

(1) Qualitative information regarding consolidated operating results for the fiscal year 2022

In the 1st quarter of fiscal year 2022, the Japanese economy was going severe circumstances. Economic activities are temporarily recovering, because regulations imposed on the movement of people for preventing the spread of COVID-19 have been relaxed. However, the market price of resources and energy rose due to the impact of Russia's Military Attack on Ukraine, and the Japanese yen got rapidly weaker, and some cities such as Shanghai have been on lockdown. These situations have made the economic outlook still unclear and uncertain.

The sugar refining industry has continued to be tough sales environment because the consumption of sugar has been decreasing annually since before. To make matters worse, we have a slump in domestic consumption by the spread of COVID-19 and a rapid increase in costs of energy.

Under these economic environments, our Group made a lot of efforts to control the quality strictly, to maintain stable supply in the Sugar Business and continued to focus on providing high-value added sales proposal to our customers in the Functional Materials Business for enhancing customer satisfaction.

As a result, our consolidated net sales increased by 10.6% year on year to 5,336 million yen. Operating profit increased by 51.3% year on year to 475 million yen. Ordinary profit increased by 74.4% year on year to 608 million yen. Net profit attributable to owners of parent increased by 37.3% year on year to 480 million yen.

Operating results of each segment are as follows:

  • Sugar Business

In the Sugar Business, the sales volume has been recovering because regulations imposed on the movement of people have been relaxed. Nevertheless, it was not enough, and the sales volume, mainly one of granulated sugar, was less than the same period of last year. However, we managed to reflect an increased cost caused by a higher overseas raw sugar market price in our sales prices, so that we achieved higher net sales than the previous same period. Regarding operating profit, it was less than the previous same period due to a highly increased manufacturing cost such as costs of raw material and energy.

As a result of the above, the Sugar Business reported net sales of 2,766 million yen (up of 5.3% against the same period of last year) and operating profit of 253 million yen (down of 9.3% against the same period of last year).

  • Functional Materials Business

In the Functional Materials Business, the sales volume of functional dietary fiber "Inulin" has increased from the same period of last year because "Inulin" has been chosen as health foods materials in many functional foods by domestic users and the overseas sales has been expanding. Accordingly, Fuji Nihon Thai Inulin Co., Ltd., a consolidated subsidiary, which manufactures "Inulin" in Thailand, has increased production volume and consequently improved profitability.

Regarding UNITEC FOODS Co. Ltd., a consolidated subsidiary, the sales volume increased from the same period of last year because the sales for health foods and nursing care foods were going well, so that net sales also increased from the same period of last year

As a result of the above, the Functional Materials Business reported net sales of 2,307 million yen (up of 16.4% against the same period of last year) and operating profit of 331 million yen (up of 120.7% against the same period of last year).

  • Real Estate Business

In the Real Estate Business, net sales of 143 million yen (up of 0.0% against the same period of last year) and operating profit of 133 million yen (up of 0.1% against the same period of last year). As a result, the business results were the same levels as that in the same period of last year, and it has continued to contribute to stable earnings.

  • Other Food Business

In the Other Food Business such as bakery business in Thailand, net sales of 120 million yen (up of 63.1% against the same period of last year) and operating profit of 14 million yen (operating losses in the same period of last year was 0 million yen). As a result, its profitability was improved.

- 2 -

(2) Qualitative information regarding consolidated financial position

Total assets as of June 30, 2022 increased by 4.8% compared to the end of the previous fiscal year to 25,936 million yen. The changes of financial position of the 1st quarter of fiscal year 2022 are as follows:

  • Assets

Current assets increased by 8.9% compared to the end of previous fiscal year to 12,457 million yen. This was mainly due to an increase of inventories and so on.

Non-current assets increased by 1.3% compared to the end of the previous fiscal year to 13,478 million yen. This was mainly due to an increase of investment securities and so on.

  • Liabilities

Current liabilities increased by 26.5% compared to the end of the previous fiscal year to 4,332 million yen. This was mainly due to an increase of accounts payable - trade and so on.

Non-current liabilities increased by 5.5% compared to the end of the previous fiscal year to 1,696 million yen. This was mainly due to an increase of long-term loans payable and so on.

  • Net assets

Net assets increased by 1.0% compared to the end of the previous fiscal year to 19,908 million yen. This was mainly due to an increase of retained earnings and so on.

(3) Qualitative information regarding consolidated business forecasts

The consolidated results for the 1st quarter of fiscal year 2022 recorded a positive growth against the original business forecasts released on April 28, 2022. In making them, we took the impact of COVID-19 into consideration, but the COVID-19 situation remains very fluid. Now that the accelerating spread is expected again, the Company decide not to change the annual plans for fiscal year 2022.

The financial forecasts are based on information available at the time of the above release. Actual results may differ from such forecasts due to various volatile factors toward the end of fiscal year 2022.

- 3 -

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Fuji Nihon Seito Corporation published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2022 02:57:01 UTC.