Fuji Oil : Sep. 06，2023 Consolidated Financial Results for the Three Months Ended June 30, 2023 (Under Japanese GAAP) （114KB）

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, 2023

(Under Japanese GAAP)

August 10, 2023

Company name:	Fuji Oil Company, Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	5017
URL:	https://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 14, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary materials on quarterly financial results:	Yes (Japanese only)
Holding of quarterly financial results briefing:	None

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

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)

(1) 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, 2023

For the three months ended June 30, 2022

Millions of yen

123,780

208,557

%

(40.6)

357.1

Millions of yen

2,667

17,895

%

(85.1)

-

Millions of yen

3,379

18,669

%

(81.9)

-

Millions of yen

2,885

15,720

%

(81.6)

-

(Note)

Total comprehensive income:

For the three months ended June 30, 2023: 2,819 million yen [-83.9%]

For the three months ended June 30, 2022: 17,465 million yen [- %]

Basic earnings per share

Diluted earnings per

share

For the three months ended

Yen -

Yen -

37.39

-

June 30, 2023

For the three months ended

204.00

-

June 30, 2022

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of June 30, 2023

Millions of yen

Millions of yen

%

300,361

73,705

24.5

As of March 31, 2023

336,985

71,658

21.2

(Reference) Equity:

As of June 30, 2023: 73,518 million yen

As of March 31, 2023: 71,476 million yen

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Fiscal year ended March

Yen

-

Yen

-

Yen

-

Yen

-

Yen

-

-

0.00

-

10.00

10.00

31, 2023

Fiscal year ending March

-

31, 2024

Fiscal year ending March

0.00

-

10.00

10.00

31, 2024 (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, 2024 (from April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Basic earnings

per share

Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%		Millions of yen	%	Yen -
310,400	(30.2)	2,900	(82.4)	2,800	(83.8)		2,400	(83.4)	31.10
September 30, 2023
Full year	688,000	(19.1)	7,600	51.1	6,800	44.5		5,600	56.6	72.57
(Note) Revisions to the forecast of the financial results most recently announced: None

*Notes

(1) Changes in significant subsidiaries during the three months ended June 30, 2023		:	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 regulations :	None
(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 the	As of June 30, 2023	78,183,677 shares	As of March 31,	78,183,677 shares
period (including treasury shares)	2023
(ii) Number of treasury shares at the end of the	As of June 30, 2023	1,020,910 shares	As of March 31,	1,020,910 shares
period	2023
(iii) Average number of shares outstanding during	For the three months	77,162,767 shares	For the three months	77,062,473 shares
the period (cumulative)	ended June 30, 2023	ended June 30, 2022

* 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 Financial Results Forecasts and Other 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 Positions	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 Assumption)	8
	(Notes on Significant Changes in the Amount of Shareholders' Equity)	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

Dubai crude oil prices for the first quarter of the current fiscal year started at the US$84/bbl level. However, in early April, a number of OPEC-plus oil producing countries, led by Saudi Arabia, announced an additional reduction of oil production of 1.16 million barrels per day, causing concerns about tight supply and demand for crude oil leading to an upward trend in the oil market. However, the price subsequently fell sharply due to growing concerns about a decline in demand for crude oil caused by the delay in economic recovery in China and the spread of anxiety over the financial system following a series of failures of U.S. regional banks. In June, Saudi Arabia announced a voluntary additional crude oil production cut, and the market temporarily turned upward. However, the price closed the period at the $76 level due to the strong view that the global economy would remain sluggish as a result of continued interest rate hikes. As a result, it marked about US$78/bbl on a quarterly average basis.

On the other hand, in the foreign exchange market, the yen started the period at the lower ¥133/US$ level. In April, the Bank of Japan decided to maintain the monetary easing policy and yield curve control measures at its monetary policy meeting. Even after the meeting, the Bank of Japan continued to emphasize the continuation of the policies. In the U.S., the FOMC sent signals that the ongoing interest rate hiking cycle would be prolonged. Both incidents highlighted such situations as the difference in interest rates in the U.S. and Japan. Against this background, the U.S. dollar went up and up against the yen, and the yen ended the period at the higher ¥144/US$ level. As a result, the yen was in the mid ¥137/US$ level on a quarterly average basis.

Under such business environment, the volume of crude oil processed at the Sodegaura Refinery decreased by 0.641 million kiloliters year on year to 1.218 million kiloliters mainly due to the execution of a minor periodic shutdown maintenance (SDM). The Company's sales volume of petroleum products, petrochemical products and others also decreased by 0.583 million kiloliters to 1.299 million kiloliters.

Given such circumstances, the consolidated financial results for the first three months ended June 30, 2023 were as follows: Net sales were 123.7 billion yen, down 84.7 billion yen from the same period of a year earlier, due in large part to a decline in sales volumes caused by the minor periodic SDM. Looking at profit and loss for the period, operating profit was 2.6 billion yen, a decrease of 15.2 billion yen from the same period of a year earlier, due to a large year-on-year decline in the positive effect of inventory valuation ( i.e., effect on cost of sales arising from inventory valuation using the gross average method and the lower of cost or market method), which pushed down the cost of sales by 3.5 billion yen (in the same period of a year earlier, the positive effect of inventory valuation pushed down the cost of sales by 13.0 billion yen). Ordinary profit was 3.3 billion yen, a decrease of 15.2 billion yen year on year, mainly due to the recording of 0.3 billion yen in interest expenses despite the reporting of 0.4 billion yen in foreign exchange gains and 0.7 billion yen in equity in earnings of affiliates, and others. Profit attributable to owners of parent was 2.8 billion yen, a decrease of 12.8 billion yen from the same period of a year earlier.

As for profit in real terms, excluding the effect of the inventory valuation, operating loss and ordinary loss excluding the effect of inventory valuation amounted to 0.8 billion yen (a decrease of 5.6 billion yen year on year) and 0.1 billion yen (a decrease of

5.7 billion yen year on year), respectively, primarily due to the minor periodic SDM.

1. Explanation of Financial Positions

(Current assets)

At the end of the first quarter of the fiscal year under review, current assets totaled 174.2 billion yen, a decrease of 36.6 billion yen compared with the end of the previous fiscal year. This was mainly due to a 43.6 billion yen decrease in notes and accounts receivable - trade and a 10.5 billion yen increase in inventory.

(Non-current assets)

At the end of the first quarter of the fiscal year under review, non-current assets totaled 126.0 billion yen, almost the same amount as at the end of the previous fiscal year.

(Current liabilities)

At the end of the first quarter of the fiscal year under review, current liabilities totaled 188.5 billion yen, a decrease of 37.9 billion yen compared with the end of the previous fiscal year. This was mainly due to a 36.2 billion yen decrease in short- term loans payable, a 5.9 billion yen decrease in accounts payable - other, and a 4.9 billion yen increase in excise taxes payable on gasoline and other fuels.

(Non-current liabilities)

At the end of the first quarter of the fiscal year under review, non-current liabilities totaled 38.0 billion yen, a decrease of 0.6 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 1.0 billion yen increase in provision for repairs.

(Net assets)

At the end of the first quarter of the fiscal year under review, net assets totaled 73.7 billion yen, an increase of 2.0 billion yen compared with the end of the previous fiscal year. This was mainly due to a 2.1 billion yen increase in retained earnings.

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

There are no changes to the consolidated financial results forecasts for the six months ending September 30, 2023 and for the full year ending March 31, 2024 from those stated in "Consolidated Financial Results for the Fiscal Year Ended March 31, 2023," announced on May 10, 2023.

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