Fuji Oil : Aug. 29，2022 Consolidated Financial Results for the Three Months Ended June 30, 2022 (Under Japanese GAAP) （133KB）

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results for the Three Months Ended June 30, 2022

(Under Japanese GAAP)

August 10, 2022

Company name:	Fuji Oil Company, Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	5017
URL:	http://www.foc.co.jp/
Representative:	Shigeto Yamamoto, Representing Director, President
Inquiries:	Ryuji Suzuki, General Manager, General Administration Department
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary materials on quarterly financial results:	Yes (Japanese only)
Holding of quarterly financial results briefing:	No

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
	Net sales	Operating profit	Ordinary profit	Profit attributable to
	owners of parent

For the three months ended June 30, 2022

For the three months ended June 30, 2021

Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
208,557	357.1	17,895	-	18,669	-	15,720	-
45,622
(39.9)	(652)	-	(899)	-	(12)	-

(Note)

Total comprehensive income:

For the three months ended June 30, 2022: 17,465 million yen (1,230.3%)

For the three months ended June 30, 2021: 1,312 million yen ([48.9]%)

Basic earnings per share

Diluted earnings per

share

For the three months ended

Yen -

Yen

-

204.00

-

June 30, 2022

For the three months ended

(0.16)

-

June 30, 2021

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

%

As of June 30, 2022

420,112

81,233

19.3

As of March 31, 2022

352,842

64,539

18.2

(Reference)

Equity:

As of June 30, 2022:

81,060 million yen

As of March 31, 2022:

64,369 million yen

2. Cash dividends

Annual dividends per share

First quarter-

Second quarter-

Third quarter-

Fiscal year-end

Total

end

end

end

Fiscal year ended March

Yen

-

Yen

-

Yen

-

Yen

-

Yen

-

-

0.00

-

10.00

10.00

31, 2022

Fiscal year ending March

-

31, 2023

Fiscal year ending March

0.00

-

10.00

10.00

31, 2023 (Forecast)

(Note)

Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial results forecast for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

							(Percentages indicate year-on-year changes.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
Six months ending	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen -
446,100		200.0	23,700	-	23,700	-	19,900	-	258 23
September 30, 2022
Full year	871,700		79.6	25,900	66.7	24,100	49.9	20,000	31.5	259 53
(Note) Revisions to the forecast of the financial results most recently announced: Yes

*Notes

(1)	Changes in significant subsidiaries during the three months ended June 30, 2022	:	None
(2)	Adoption of accounting treatment specific to the preparation of quarterly consolidated financial	:	None
	statements
(3)	Changes in accounting policies and accounting estimates, and restatement
	(i)	Changes in accounting policies due to revisions to accounting standards and other	:	None
		regulations
	(ii)	Changes in accounting policies due to reasons other than (i)	:	None
	(iii)	Changes in accounting estimates	:	None
	(iv)	Restatement	:	None

(4) Number of issued shares (common shares)
(i)	Total number of issued shares at the end of	As of June 30, 2022	78,183,677 shares	As of March 31,	78,183,677 shares
	the period (including treasury shares)	2022
(ii)	Number of treasury shares at the end of the	As of June 30, 2022	1,121,208 shares	As of March 31,	1,121,198 shares
	period	2022
(iii) Average number of shares outstanding	For the three months	77,062,473 shares	For the three months	77,062,479 shares
	during the period	ended June 30, 2022	ended June 30, 2021

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The forward-looking statements such as financial results forecasts contained in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable. Actual financial results may differ significantly from the forecasts due to various factors. For the assumptions underlying the financial results forecasts and cautions concerning the use thereof, please refer to "Explanation of Consolidated Earnings Forecasts and Forward-Looking Statements" on page 3 of the attachment.

○Table of Contents of Attachment
1. Qualitative Information on Financial Results for the First Three Months of the Current Fiscal Year .....................................	2
(1)	Explanation of Operating Results ...............................................................................................................................	2
(2)	Explanation of Financial Position...............................................................................................................................	2
(3)	Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking Statements ...............................	3
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .......................................................................	4
(1)	Quarterly Consolidated Balance Sheet........................................................................................................................	4
(2)	Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ...........	6
(3)	Notes to Quarterly Consolidated Financial Statements ................................................................................................	8
	(Notes on Going Concern Assumptions) ....................................................................................................................	8
	(Notes on Substantial Changes in the Amount of Shareholders' Equity) ......................................................................	8
	(Additional Information) ...........................................................................................................................................	8
	(Segment Information, etc.).......................................................................................................................................	8

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1. Qualitative Information on Financial Results for the First Three Months of the Current Fiscal Year

1. Explanation of Operating Results

In the first three months ended June 30, 2022, the Dubai crude oil price, at the level of US$101/bbl in the beginning of the fiscal year, declined to the US$97/bbl level in early April. This was because concerns over tight supply and demand were alleviated with a decrease in demand due to the lockdown in Shanghai, China, amid the spread of COVID-19 infections, and with decisions of the member countries of the International Energy Agency on the collaborative release of a total of 240 million barrels of oil reserves. After that, as the European Union agreed to phase out the import of crude oil and oil products from Russia, a crunch in supply and demand was again perceived, and the market turned upward. Moreover, as the lockdown in Shanghai was lifted in early June, demand for crude oil was expected to grow again and the price increased to the US$118/bbl level in mid-June. It then turned downward due to growing concern that aggressive anti-inflationinterest-rate hikes by the U.S. Federal Reserve Board and other central banks would bring about a recession, and the market ended the quarter at the US$113/bbl level. As a result, the average Dubai crude oil price during the first three months ended June 30, 2022 was approximately US$108/bbl.

On the other hand, the exchange rate, which started at the lower ¥122/US$ range, saw a growing trend for a weaker yen and stronger dollar due to the interest-rate hikes accelerated by the U.S. that rushed to contain inflation. The rate exceeded the ¥130/US$ range in early May. In June, the move to sell the yen continued as the Bank of Japan decided to keep its ultra-monetary- easing policy, which made the dollar-yen rate at the end of the quarter in the higher ¥136/US$ range, a record level not seen for about 24 years. As a result, the average exchange rate during the first three months of the current fiscal year was at the higher ¥129/US$ range.

Under such business environment, the recovery from the impact of the major periodic shut-down maintenance, conducted once in four years including the most recent operation done from May to July in the previous year, increased crude oil throughout at Sodegaura Refinery plant by 1.162 million kiloliters year on year to 1.859 million kiloliters. And the Company's sales volume of petroleum products and petrochemical products increased by 1.226 million kiloliters to 1.881 million kiloliters.

Given such circumstances, the consolidated financial results for the first three months ended June 30, 2022 were as follows. Net sales grew 162.9 billion yen year on year to 208.5 billion yen, mainly due to an increase in sales volume recovering from the impact of the major periodic shut-down maintenance. As for profit, operating profit was 17.8 billion yen, up 18.5 billion yen year on year, due to the effect of inventory valuation calculated by the average method and inventory write-downs based on a decrease in profitability, which drove down the cost of sales by 13 billion yen (compared with 2.8 billion yen in the same period of the previous fiscal year). Ordinary profit was 18.6 billion yen, up 19.5 billion yen year on year. Profit attributable to owners of parent was 15.7 billion yen, up 15.7 billion yen year on year.

As for profit in real terms, excluding the effect of the inventory valuation, operating profit amounted to 4.8 billion yen, up 8.3 billion yen year on year, and ordinary profit was 5.5 billion yen, up 9.3 billion yen year on year, due to the recovery from the impact of the major periodic shut-down maintenance and other factors.

(2) Explanation of Financial Position

(Current assets)

At the end of the first quarter of the fiscal year under review, current assets totaled 291.5 billion yen, an increase of 66.5 billion yen compared with the end of the previous fiscal year. This was mainly due to a 46.6 billion yen increase in inventories, a 24 billion yen increase in notes and accounts receivable - trade, and contract assets, and a 3.1 billion yen decrease in accounts receivable - other.

(Non-current assets)

At the end of the first quarter of the fiscal year under review, non-current assets increased 0.6 billion yen compared with the end of the previous fiscal year to 128.5 billion yen. This was mainly due to a 2.5 billion yen increase in investment securities, a 0.9 billion yen decrease in machinery, equipment and vehicles, and a 0.5 billion yen decrease in construction in progress.

(Current liabilities)

At the end of the first quarter of the fiscal year under review, current liabilities totaled 298.1 billion yen, an increase of 50.9 billion yen compared with the end of the previous fiscal year. This was mainly due to a 36.9 billion yen increase in short- term loans payable, an 11.3 billion yen increase in excise taxes payable on gasoline and other fuels, a 7.2 billion yen increase in accounts payable - trade, and a 5.7 billion yen decrease in accounts payable - other.

(Non-current liabilities)

At the end of the first quarter of the fiscal year under review, non-current liabilities totaled 40.7 billion yen, a decrease of 0.3 billion yen compared with the end of the previous fiscal year. This was mainly due to a 1.5 billion yen decrease in long-term loans payable and a 0.7 billion yen increase in provision for repairs.

(Net assets)

At the end of the first quarter of the fiscal year under review, net assets increased 16.6 billion yen compared with the end of the previous fiscal year to 81.2 billion yen. This was mainly due to a 14.9 billion yen increase in retained earnings and a 1.5 billion yen increase in foreign currency translation adjustments.

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(3) Explanation of Consolidated Financial Results Forecasts and Other Forward-Looking Statements

The financial results forecasts for the six months ending September 30, 2022 and for the full year (announced on May 10, 2022) are revised to reflect the trend of financial results after May 10, 2022.

The assumptions for the revised forecast are an average Dubai crude oil price of US$90/bbl in the second quarter and later (previous forecast: US$80/bbl) and an exchange rate of ¥130/US$ (previous forecast: ¥120/US$).

Net sales are expected to increase 87.6 billion yen from the previous forecast to 446.1 billion yen and, for the full year, increase by 169.4 billion yen from the previous forecast to 871.7 billion yen.

As for profit, the Company expects a solid trend in product margins, etc. in addition to a more substantive effect on lowering the cost of inventory due to the increase in the forecast crude oil price. As a result, for the six months ending September 30, 2022, operating profit is expected to increase by 17.6 billion yen from the previous forecast to 23.7 billion yen, ordinary profit by 17.5 billion yen to 23.7 billion yen, and profit attributable to owners of parent by 14.7 billion yen to 19.9 billion yen. For the full-year forecast, operating profit is expected to increase by 16.9 billion yen from the previous forecast to 25.9 billion yen, ordinary profit by 16 billion yen to 24.1 billion yen, and profit attributable to owners of parent by 13.4 billion yen to 20 billion yen.

As for profit in real terms, excluding the effect of the inventory valuation, for the six months ending September 30, 2022, operating profit is expected to increase by 5.3 billion yen from the previous forecast to 8.3 billion yen, and ordinary profit by 5.2 billion yen to 8.3 billion yen. For the full-year forecast, operating profit is expected to increase by 12.3 billion yen from the previous forecast to 18.3 billion yen, and ordinary profit by 11.4 billion yen to 16.5 billion yen.

The above forecasts are based on information available as of the date of publication of this document. Actual results may differ from the forecasts due to various factors.

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