Fuji Oil : Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (Under Japanese GAAP)

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 Fiscal Year Ended March 31, 2022

(Under Japanese GAAP)

	May 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 of the annual general meeting of shareholders:	June 28, 2022
Scheduled date to commence dividend payments:	June 29, 2022
Scheduled date to file the securities report:	June 28, 2022
Preparation of supplementary materials on financial results:	Yes (Japanese only)
Holding of financial results briefing:	Yes (for institutional investors and analysts; Japanese only)
	(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Consolidated operating results					(Percentages indicate year-on-year changes.)
		Net sales			Operating profit	Ordinary profit	Profit attributable to
				owners of parent
		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Fiscal year ended March 31,
2022		485,302		40.8	15,539	118.9	16,076	93.9		15,203	132.9
Fiscal year ended March 31,
2021		344,612		(25.5)	7,098	-	8,293	-		6,528	-
(Note)	Total comprehensive income:
	Fiscal year ended March 31, 2022: 17,123 million yen (148.4%)
	Fiscal year ended March 31, 2021: 6,892 million yen (-%)
		Basic earnings per Diluted earnings	Return on equity Return on assets	Operating profit
		share			per share	margin
		Yen	-		Yen -		%			%		%
Fiscal year ended March 31,
2022		197.29		-		27.1			5.3		3.2
Fiscal year ended March 31,
2021		84.72		-		14.6			3.3		2.1
(Reference) Share of profit (loss) of entities accounted for using equity method:
	Fiscal year ended March 31, 2022: 831 million yen
	Fiscal year ended March 31, 2021: 2,777 million yen
(2) Consolidated financial position
		Total assets	Net assets	Equity-to-asset ratio	Net assets per share
		Millions of yen	Millions of yen			%			Yen -
As of March 31, 2022	352,842		64,539			18.2			835.28
As of March 31, 2021	253,007		48,188			19.0			623.28
(Reference)	Equity: As of March 31, 2022:	64,369 million yen
	As of March 31, 2021: 48,031 million yen
(3) Consolidated cash flows
		Cash flows from	Cash flows from	Cash flows from		Cash and cash
		equivalents at end of
		operating activities	investing activities	financing activities
			year
		Millions of yen	Millions of yen		Millions of yen		Millions of yen
Fiscal year ended March 31,
2022		(31,999)		(12,546)			39,940			7,912
Fiscal year ended March 31,
2021				22,762		(4,056)			(16,712)			12,336

2. Cash dividends

			Annual dividends per share		Total	Dividend	Dividends on
				payout ratio	net assets
	First quarter-	Second	Third	Fiscal year-		dividends
	Total	(consolidate	(consolidate
	end		quarter-end	quarter-end	end		d)	d)
	Yen	-	Yen -	Yen -	Yen -	Yen - Millions of yen	%	%
Fiscal year ended	-	0.00	-	10.00	10.00	772	11.8	1.7
March 31, 2021
Fiscal year ended	-	0.00	-	10.00	10.00	772	5.1	1.4
March 31, 2022
Fiscal year ending
March 31, 2023		-	0.00	-	10.00	10.00		11.7
(Forecast)

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
			Millions of yen	%		Millions of yen	%		Millions of yen	%		Millions of yen	%		Yen -
	Six months ending	358,500		141.1	6,100		-	6,200		-	5,200		-	67.48
	September 30, 2022
	Full year		702,300		44.7		9,000		-		8,100		-		6,600		-		85.64

*Notes

(1) Changes in significant subsidiaries during the fiscal year ended March 31, 2022 (changes in	:	None
specified subsidiaries resulting in changes in the scope of consolidation)
(2) Changes in accounting policies and accounting estimates, and restatement
(i) Changes in accounting policies due to revisions to accounting standards and other regulations :	Yes
(ii) Changes in accounting policies due to reasons other than (i)			:	None
(iii) Changes in accounting estimates				:	None
(iv) Restatement				:	None
(3) Number of issued shares (common shares)
(i) Total number of issued shares at the end of the	As of March 31,	78,183,677 shares	As of March 31,	78,183,677 shares
period (including treasury shares)	2022	2021
(ii) Number of treasury shares at the end of the	As of March 31,	1,121,198 shares	As of March 31,		1,121,198 shares
period	2022	2021
(iii) Average number of shares outstanding during	Fiscal year ended	77,062,479 shares	Fiscal year ended	77,062,479 shares
the period	March 31, 2022	March 31, 2021

(Reference) Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

(1) Non-consolidated operating results					(Percentages indicate year-on-year changes.)
	Net sales			Operating profit	Ordinary profit	Profit
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Fiscal year ended March 31,
2022	476,215			41.5	15,151	128.7	14,775	186.4	13,529		229.2
Fiscal year ended March 31,
2021	336,460		(25.9)	6,623	-	5,159	-	4,110		-
	Basic earnings per	Diluted earnings
	share			per share
	Yen	-		Yen -
Fiscal year ended March 31,
2022	175.21		-
Fiscal year ended March 31,
2021	53.23		-

(2) Non-consolidated financial position		(Percentages indicate year-on-year changes.)
		Total assets	Net assets	Equity-to-asset ratio	Net assets per share
		Millions of yen	Millions of yen	%	Yen -
As of March 31, 2022	332,842	43,884	13.2	568.33
As of March 31, 2021		236,274	31,571	13.4	408.86
(Reference)	Equity:

As of March 31, 2022: 43,884 million yen

As of March 31, 2021: 31,571 million yen

• Financial results reports are exempt from audits 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 "Outlook for the Future" on page 5 of the attachment.

The Company will hold a financial results briefing for institutional investors and analysts. The financial results materials used in this briefing will be disclosed on TDnet on the same day and posted on our company website. In addition, a transcript of the financial results briefing and a summary of questions and answers will be disclosed on our company website within a few days after the financial results briefing.

○Table of Contents of Attachment
1. Overview of Operating Results, Etc. .......................................................................................................................................	22
(1)	Overview of Operating Results for the Fiscal Year Ended March 31, 2022 ..............................................................	2
(2)	Overview of Financial Position for the Fiscal Year Ended March 31, 2022 ..............................................................	4
(3)	Overview of Cash Flows for the Fiscal Year Ended March 31, 2022 ........................................................................	4
(4)	Outlook for the Future...............................................................................................................................................	5

1. Basic Policy on Profit Distribution and Dividends for the Fiscal Year Ended March 31, 2022 and the Fiscal

	Year Ending March 31, 2023 ..................................................................................................................................................	5
2.	Status of the Corporate Group.................................................................................................................................................	66
3.	Basic Views Concerning the Selection of Accounting Standards ..............................................................................................	7
4.	Consolidated Financial Statements and Significant Notes Thereto ...........................................................................................	8
	(1)	Consolidated Balance Sheet ......................................................................................................................................	8
	(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income..................................	10
	(3)	Consolidated Statement of Changes in Equity.........................................................................................................	12
	(4)	Consolidated Statement of Cash Flows ...................................................................................................................	14
	(5)	Notes to Consolidated Financial Statements............................................................................................................	16
		(Notes on Going Concern Assumption) ..........................................................................................................................	16
		(Changes in Accounting Policies) ...................................................................................................................................	16
		(Additional Information).................................................................................................................................................	16
		(Segment Information, Etc.)............................................................................................................................................	16
		(Per Share Information) ..................................................................................................................................................	17
		(Significant Subsequent Events) .....................................................................................................................................	18
5.	Non-consolidated Financial Statements and Significant Notes Thereto ..................................................................................	19
	(1)	Balance Sheet ..................................................................................................................................................................	19
	(2)	Statement of Income........................................................................................................................................................	21
	(3)	Statement of Changes in Equity ......................................................................................................................................	22

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1. Overview of Operating Results, Etc.

1. Overview of Operating Results for the Fiscal Year Ended March 31, 2022

[Business environment surrounding the Group]

In the crude oil market, the Dubai crude started the period at the US$61/bbl level and followed a rising trend backed by expectations for economic recoveries associated with progress in COVID-19 vaccination in the United States and Europe. Subsequently, it reached the US$84/bbl level in late October against the backdrop of a major hurricane approaching oil production facilities along the U.S. Gulf Coast and tighter supply and demand caused by supply disruptions from some oil-producing countries. While in late November there was a phase of price adjustment due to a risk aversion move induced by the spread of a new COVID-19 variant, Omicron, the Dubai crude continued to rise further, underpinned by resilient economic recoveries especially in the U.S. and the underlying robust energy demand, as well as due to growing concerns from January onward over geopolitical risks caused by rising tensions in the Ukraine situation. The Russian invasion of Ukraine at the end of February and the following economic sanctions on Russia by Western countries raised concerns about the impact on the supply of Russian crude oil, and the Dubai crude temporarily rose to US$127/bbl in March. As a result, it marked about US$78/bbl on a yearly average basis, up US$33/bbl over the previous period.

In the foreign exchange market, the yen started the period at the higher ¥110/US$ level and continued to be appreciated, hitting the mid-¥107/ US$ level temporarily due in part to the U.S. interest rate increase being put on hold. Then it got weakened, reaching the higher ¥111/US$ level as the Federal Open Market Committee (FOMC) noted the possibility of an early interest rate increase. Entering November, the yen weakened to the mid-¥115/US$ level against the backdrop of the FRB's decision to start scale-back in quantitative easing amid growing concerns about inflation in the U.S. In January, the ¥/US$ rate kept fluctuating in a narrow range in the context of the rising tensions in Ukraine. Then in March, the Bank of Japan's stance to maintain its monetary easing policy, in contrast to the FRB's decision to raise interest rate, led to dollar buying and yen selling on the prospect of a widening interest rate differential between the U.S. and Japan, with the yen temporarily depreciating to the ¥125/US$ level. As a result, the yen marked about ¥112/US$ on a yearly average basis, a depreciation of about ¥6/US$ over the previous period.

Looking at the domestic oil product market, demand for Gasoline was at 97.8% of the previous period's figure, reflecting an improvement in fuel efficiency and a decrease in the number of gasoline passenger cars owned, while a rebound from the previous period's decrease due to people's avoidance of going out acted as a positive factor. Demand for Jet Fuel was at 121.2% of the previous period's figure due to a recovery in demand for air transport of passengers and freight. Demand for Gas Oil was at 100.2% of the previous period's figure due to increases in freight transport. Kerosene was at 93.2% of the figure of the previous period, when there were high demands caused by strong cold waves. As a result, the total sales volume of the products was at 101.0% of the previous period's figure.

[Status of business of the Group]

Petroleum refining and sales business

The Company carried out a major periodical shut-down maintenance and repair (SDM), which is conducted once every four years, from May to July in 2021 at Sodegaura Refinery by shutting down all the production facilities. As a result, crude oil throughput was 6,259 thousand kL, down by 7.2% as compared to the previous period. The utilization rate of the crude distillation unit was 75.4% on average during the period. The crude distillation unit maintained safe and stable operation from the 3rd quarter onward, with an average utilization rate of 98.0% during the 3rd and 4th quarters.

Total sales volume of petroleum products including petrochemicals and others came to 6,466 thousand kL, down by 9.4% as compared to the previous period, due to lower production volumes as a result of a major SDM, despite a recovery in demand for petroleum products due to progress in COVID-19 vaccination and the associated recovery in economic activities.

Looking at sales by product, Gasoline, Jet Fuel, Kerosene, Gas Oil and Benzene/Xylene are down by 6.3%, 12.8%, 12.3%, 9.6%, and 14.6% year-on-year, respectively.

Activities of Group companies

PETRO PROGRESS PTE LTD, an important overseas operation base of the Company located in Singapore, has continued business operations such as purchase and sale of crude oil and petroleum products.

Japan Oil Engineering Company Ltd. (JOE) is working on the projects which will contribute to the development of a low carbon society, in addition to its core businesses of consulting and engineering for development and production of oil and gas. Among such projects are the environmental engineering and consulting services related to CO2-EOR (injection of CO2 for enhanced oil recovery) and CCS (capture and storage of CO2 from emissions to prevent it from entering the atmosphere) technologies, methane hydrate development, offshore wind and geothermal power generation.

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