Fuji Nihon Seito : Summary of Consolidated Financial Results For the 1st Quarter Ended June 30,2017 (Japanese Accounting Standards) (July 31, 2017)

Summary of Consolidated Financial Results

For the 1st Quarter Ended June 30, 2017(Japanese Accounting Standards)

Company name:

Fuji Nihon Seito Corporation

Listing: The 2nd Section of Tokyo Stock Exchange

July 31, 2017

Company Representative:

Yoshikazu Funakoshi President and Chief Executive Officer

Stock code: 2114http://www.fnsugar.co.jp

Contact person in charge: Masahiro Sazuka, Director & Managing Executive Officer, Division Head ofAdministration

Planned date for submission of quarterly report:	August 10, 2017
Planned date to start dividend payment:	N/A

TEL.[phone]

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 Ended June 30, 2017 (April 1,2017-June 30, 2017)

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
   June 30, 2017	Million yen	％	Million yen	％	Million yen	％	Million yen	％
   	5,012	0.7	207	(9.5)	276	17.7	165	4.6
   June 30, 2016	4,978	0.3	229	(19.1)	234	(20.2)	158	(14.4)

   Note: Comprehensive income

   1st quarter ended June 30, 2017: 341 million yen (up 656.6%)

   1st quarter ended June 30, 2016: 45 million yen （down 76.1%)

   Net Profit per Share	Diluted net Profit per Share
   June 30, 2017	Yen	Yen
   	6.17	―
   June 30, 2016	5.90	―

2. Consolidated Financial Position

Total Assets	Net Assets	Equity Ratio
As of June 30, 2017	Million yen	Million yen	％
	22,091	16,052	72.9
As of March 31, 2017	22,231	16,006	72.2

(Reference) Shareholders' Equity: As of June 30, 2017: 16,099 million yen As of March 31,2017: 16,042 million yen

２．Cash Dividends

Cash Dividend per Share
First quarter	Second quarter	Third quarter	Fourth quarter	Total
For the year ended	Yen	Yen	Yen	Yen	Yen
March 31,2017	―	0.00	―	11.00	11.00
March 31,2018	―
Year ended March 31,2018(forecast)	0.00	―	10.00	10.00

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

Breakdown of dividend for the fiscal year ended March 31, 2017: Ordinary dividend 10.00 yen, 15th anniversary commemorative divided 1.00 yen.

３．Consolidated Financial Forecasts for the Fiscal Year Ended March 31, 2018 (April 1, 2017 - March 31, 2018)

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

Net Sales		Operating Profit		Ordinary Profit		Profit attributable to owner of parent		Net Profit per Share
The 2nd quarter ending Sept. 30,2017	Million Yen	％	Million Yen	％	Million Yen	％	Million Yen	％	Yen
	10,000	1.8	450	1.7	500	(4.2)	300	(20.7)	11.17
Year ending March 31, 2018	20,000	3.4	850	37.0	1,000	16.8	620	(13.2)	23.09

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

• Notes

  （１） Significant changes in subsidiaries during the 1st quarter of fiscal year 2017

  (Change in specified subsidiaries resulting in change of scope of consolidation): None

  （２） Adoption of accounting method unique to present quarterly consolidated financial statements: None

  （３） Changes in accounting policy , accounting estimates and restatement

  (i) 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

  As of June 30, 2017	29,748,200	As of March 31, 2017	29,748,200
  As of June 30, 2017	2,895,793	As of March 31, 2017	2,895,754
  As of June 30, 2017	26,852,417	As of June 30, 2016	26,852,609

  （４） Number of outstanding shares (common shares) Unit:1 share (i)Number of outstanding shares at the period end

  (including treasury stocks)

• Number of treasury stocks at the period end

• Average number of shares during the period (from the beginning of fiscal year to the period end)

• Summary of Consolidated Financial Results for the 1st 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.Qualitative Information Regarding the Results for the 1st Quarter of Fiscal Year 2017" on the page 3 of the Appendix.

○Appendix

1．Qualitative Information Regarding the Results for the Three Months of Fiscal Year 2017……………… 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)Quarterly consolidated balance sheets……………………………………………………………………………… 4-5 (2)Quarterly consolidated statements of income and consolidated statements of comprehensive income……… 6-7 (3)Notes on quarterly consolidated financial statements………………………………………………………… 8-9

（Notes on assumptions of a going concern）…………………………………………………………………… 8

（Notes on occurrence of significant changes to shareholder's equity）……………………………… 8

（Segment information) ……………………………………………………………………………………………… 9

１． The Results for the 1st Quarter of Fiscal Year 2017

（１）Operating Results (consolidated)

During the 1st quarter of fiscal year 2017, the Japanese economy continued moderate recovery momentum as well as the fiscal year 2016, due to improvement of employment and income supported by increase export and upside corporate earnings. Economic prospect expect to continue recovering behind steady domestic demand, even international situation has being uncertain.

The sugar refining industry has been tough situation under the decrease in consumption due to continuous hitting popularity of alternative sweetened preparations, isomerized sugar and other sweeteners.

Under these economic environments, our Group made effort to maintain stable supply on sugar, with maintain quality management and improve of customer satisfaction, and for functional materials business, we have been concentrating on pursuing high-value added on sales activity.

As a result, consolidated net sales increased 0.7% year on year to 5,012 million yen. Operating profit decreased 9.5% year on year to 207 million yen. Ordinary profit increased 17.7% year on year to 276 million yen. Net profit attributable to owners of parent was increased 4.6% year on year to 165 million yen.

Operating results of each segment is as follows:

① Sugar Business

Regarding the Sugar business, sales to confectioneries and frozen dessert vendors were heading start well, but to distributors were slow moving and the sales volume is less than the same period last year. However, it has recorded slightly increase in revenue because of sales price higher than the same period last year. On the aspect of production cost, we have focused on reduction of processing expenditure, but the purchase cost of raw sugar has risen and decreased the margin.

As a result of the above, the Sugar Business reported net sales of 3,101 million yen (rise of 0.5% against the same period last year) and operating income of 311 million yen (down 9.7% against the same period last year).

② Functional Materials Business

As for the functional dietary fiber Inulin recorded revenue growth because of effective sales promotion as high-value added proposal to new clients and increased sales volume for main big users. Also Consumer Affairs Agency has granted our application for presenting the potency/effect on label of products as supporting the functions of the intestines during the 1st quarter, so we focus more sales after the 2nd quarter. Regarding UNITEC Foods Co. Ltd., a consolidated subsidiary decreased profit due to sluggish sales volume of main product gelatin and OEM business.

As a result of the above, the Functional Materials Business reported net sales of 1,729 million yen (rise of 1.1% against the same period last year) and operating income of 6 million yen (operating losses on the same period last year was 4 million yen).

③ Real Estate Business

In the Real Estate Business, sales revenue increased 1.1% year on year to 152 million yen and operating profit increased 0.8% to 135 million yen. It has contributed to stable profits overall.

④ Other Food Business

In the other food business such as baking business of DAY PLUS (THAILAND) Co., Ltd., operation result is sales revenue decreased 1.5% to 29 million yen and operating losses of 37 million yen (operating losses om the same period last year was 22 million yen).