Fuji Nihon Seito : Summary of Consolidated Financial Results For the 3rd Quarter Ended December 31, 2021 (Japanese Accounting Standards)（January 31,2022）

• Notes

1. Significant changes in subsidiaries during the nine months of fiscal year 2021
   (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
4. 1. Changes in accounting policy due to any revision of accounting standards: Yes

※ Summary of Consolidated Financial Results for the 3rd quarter is exempt from the quarterly audit review before this disclosure.

※ Explanation on appropriate use of business forecasts, and other special notes:

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 3rd Quarter of Fiscal Year 2021" on page 3 of the Appendix.

1. The Results for the 3rd Quarter of Fiscal Year 2021

(1) Qualitative information regarding consolidated operating results

During the 3rd quarter of fiscal year 2021, the Japanese economy has been in the confusion caused by the lingering COVID-19. The economic outlook is still unclear and uncertain because a new COVID-19 variant has been expanded again, though there were signs of economic recovery once: the number of people infected anew decreased as the vaccination rate became higher and the restriction imposed on the action of people was eased.

The sugar refining industry has continued to be tough sales environment in general under the further decrease in consumption as usual due to the impact of COVID-19.

Under these economic environments, our Group made a lot of effort 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 improvement of customer satisfaction.

As a result of the 3rd quarter, net sales increased by 8.0% year on year to 15,411 million yen. Operating profit increased by 11.0% year on year to 1,366 million yen. Ordinary profit increased by 7.5% year on year to 1,583 million yen. Net profit attributable to owners of parent increased by 38.0% year on year to 1,352 million yen.

Operating results of each segment is as follows:

• Sugar Business

In the Sugar Business, our Group had an increase in sales volume and net sales in comparison to the previous same period, which was damaged particularly by the spread of COVID-19. However, the operating profit was less than the previous same period, though we raised our sales prices under the situation that the steeply rising of raw sugar price outpaced an increase in domestic sales prices.

As a result of the above, the Sugar Business reported net sales of 8,391 million yen (up of 5.8% against the same period of last year) and operating profit of 1,000 million yen (down of 25.6% against the same period of last year).

• Functional Materials Business

As for the functional dietary fiber Inulin, the sales volume increased at home and abroad thanks to large demands as health food materials in functional foods, low carb foods, and protein supplements and our Group had an increase in net sales. Regarding the UNITEC FOODS Co. Ltd., a consolidated subsidiary, they had an increase in net sales in comparison to the previous same period in spite of the spread of COVID-19 due to the increase in the sales volume of pectin and gelatin, which were their main products.

As a result of the above, the Functional Materials Business reported net sales of 6,322 million yen (up of 10.6% against the same period of last year) and operating profit of 603 million yen (up of 133.5% against the same period of last year).

• Real Estate Business

In the Real Estate Business, net sales of 430 million yen (down of 1.7% against the same period of last year) and operating profit of 401 million yen (up of 22.1% against the same period of last year). However, 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 267 million yen (up of 52.1% against the same period of last year) and operating profit of 20 million yen (operating losses in the same period of last year was 13 million yen).

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(2) Qualitative information regarding consolidated financial position

Total assets as of December 31, 2021, increased by 5.2% compared to the end of the previous fiscal year to 24,698 million yen.

The changes of financial position of the 3rd quarter of fiscal year 2021 are as follows:

• Assets

Current assets increased by 9.9% compared to the end of previous fiscal year to 11,577 million yen. This was mainly due to an increase of inventories and so on.

Non-current assets increased by 1.4% compared to the end of the previous fiscal year to 13,120 million yen. This was mainly due to an increase of investment securities and so on.

• Liabilities

Current liabilities increased by 0.8% compared to the end of the previous fiscal year to 3,660 million yen. This was mainly due to an increase of accounts payable - trade and so on.

Non-current liabilities decreased by 2.0% compared to the end of the previous fiscal year to 1,563 million yen. This was mainly due to a decrease of long-term loans payable and so on.

• Net assets

Net assets increased by 6.7% compared to the end of the previous fiscal year to 19,474 million yen. This was mainly due to an increase of retained earnings attributable to owners of parent.

(3) Qualitative information regarding consolidated business forecasts

The consolidated business forecasts for the fiscal year 2021, ending March 31, 2022, are announced in the press release issued on January 31, 2022, "Revisions to full-year business forecasts" (Japanese only).

The business 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 2021.

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