Fuji Oil : Mar. 08，2024 Consolidated Financial Results for the Nine Months Ended December 31, 2023 (Under Japanese GAAP) （116KB）

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 Nine Months Ended December 31, 2023

(Under Japanese GAAP)

February 9, 2024

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:	February 13, 2024
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 nine months ended December 31, 2023 (from April 1, 2023 to December 31, 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 nine months ended December 31, 2023

For the nine months ended December 31, 2022

Millions of yen

535,893

680,237

%

(21.2)

115.3

Millions of yen

8,134

2,653

%

206.6

(48.8)

Millions of yen	%	Millions of yen	%
10,126	357.4	8,768	385.8
2,213
(54.1)	1,805	(66.9)

(Note)	Total comprehensive income:
	For the nine months ended December 31, 2023: 13,047 million yen [56.0%]
	For the nine months ended December 31, 2022: 8,363 million yen [19.1%]
		Basic earnings per share	Diluted earnings per
			share
For the nine months ended	Yen	Yen
113.64	-
December 31, 2023
For the nine months ended	23.41	-
December 31, 2022
(2) Consolidated financial position
		Total assets	Net assets	Equity-to-asset ratio
		Millions of yen	Millions of yen	%

As of December	31, 2023		411,147		83,932
As of March 31,	2023		336,985		71,658
(Reference) Equity:	As of December 31, 2023: 83,735 million yen
		As of March 31, 2023: 71,476 million yen

20.4

21.2

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	-	0.00	-
31, 2024
Fiscal year ending March					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

Millions of yen

% Millions of yen

% Millions of yen

% Millions of yen

%

Yen

Full year

728,300

(14.4)

5,700

13.3

7,900

67.9

6,900

93.0

89.42

(Note) Revisions to the forecast of the financial results most recently announced: Yes

*Notes

(1)	Changes in significant subsidiaries during the nine months ended December 31, 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	As of December 31,	78,183,677 shares	As of March 31,		78,183,677 shares
		the period (including treasury shares)	2023		2023
	(ii)	Number of treasury shares at the end of the	As of December 31,	1,020,911 shares	As of March 31,		1,020,910 shares
		period	2023	2023
	(iii) Average number of shares outstanding	For the nine months	77,162,767 shares	For the nine months	77,120,097 shares
		during the period (cumulative)	ended December 31,	ended December 31,
		2023		2022

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of financial results forecast, 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 Nine 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

1

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

1. Explanation of Operating Results

Dubai crude oil prices for the first nine months of the current fiscal year started at the US$84/bbl level. However, in early April, concerns about tight supply and demand for crude oil increased due to the additional reduction of oil production by OPEC-plus, which led to an upward trend in the oil market. Subsequently, however, the price fell to the US$71/bbl level in June due to growing concerns over an economic downturn, mainly from the spread of anxiety about the financial system in conjunction with the further interest raises by central banks in Europe and the U.S. and the collapse of U.S. regional banks. Thereafter, Saudi Arabia and Russia announced a voluntary additional crude oil production cut, creating an upward trend from July onward. In September, the two said countries further announced that they would extend the voluntary production cut until the end of 2023, raising awareness of a still tighter supply and demand for crude oil, which caused the price level to be over US$90/bbl continuously. In October, military conflict arose between Israel and the Islamic armed organization Hamas. Although strong awareness of increasing geopolitical risks arose, the crude oil prices instantly reversed to a decline as the conflict between the two had a limited impact on the crude oil supply to neighboring countries. Since then, with greater concern over the deterioration of economic sentiment indices for China and other countries, awareness of crude oil supply and demand slackness rose, consequently causing crude oil prices to fall significantly. The crude oil finished trading at the end of the third quarter at the US$77/bbl level. As a result, the average Dubai crude oil price during the first nine months ended December 31, 2023 was at the US$82/bbl level.

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. Against the background that the Bank of Japan continued to maintain the policies even after the meeting, and the inflation-controlling interest rate hiking cycle prolonged in the U.S. as the FOMC suggested, the yen weakened to the ¥151/US$ level in November. Thereafter, the yen continued to swing back stronger against the backdrop of heightened expectations of policy revisions by the Bank of Japan and an indication of the end of the interest rate hiking cycle in the U.S., ending the period at the upper ¥141/US$ level. As a result, the average exchange rate during the first nine months of the current fiscal year was at the lower ¥143/US$ range.

Under such business environment, the volume of crude oil processed at the Sodegaura Refinery decreased 0.739 million kiloliters year on year to 5.147 million kiloliters mainly due to the execution of minor periodic shutdown maintenance (SDM). The Company's sales volume of petroleum products, petrochemical products and others also decreased 0.834 million kiloliters to 5.393 million kiloliters.

Given such circumstances, the consolidated financial results for the first nine months ended December 31, 2023 were as follows: Net sales were 535.8 billion yen, down 144.3 billion yen from the same period 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 8.1 billion yen, an increase of 5.4 billion yen from the same period a year earlier, due to a year-on-year increase 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 6.3 billion yen (in the same period of a year earlier, the positive effect of inventory valuation pushed down the cost of sales by 1.1 billion yen). Ordinary profit was 10.1 billion yen, an increase of 7.9 billion yen year on year, mainly due to the recording of 1.8 billion yen in equity in earnings of affiliates and 1.4 billion yen in foreign exchange gains. Profit attributable to owners of parent was 8.7 billion yen, an increase of 6.9 billion yen from the same period a year earlier.

As for profit in real terms, excluding the effect of inventory valuation, operating profit and ordinary profit amounted to 1.7 billion yen (an increase of 0.2 billion yen year on year) and 3.7 billion yen (an increase of 2.6 billion yen year on year), respectively, primarily due to the continuous firm product margins despite the impact of the minor periodic SDM.

1. Explanation of Financial Positions

1. Status of assets, liabilities and net assets (Current assets)
   At the end of the third quarter of the fiscal year under review, current assets totaled 281.6 billion yen, an increase of 70.6 billion yen compared with the end of the previous fiscal year. This was mainly due to a 37.5 billion yen increase in inventories and a 32.6 billion yen increase in notes and accounts receivable - trade.

(Non-current assets)

At the end of the third quarter of the fiscal year under review, non-current assets were up 3.4 billion yen compared with the end of the previous fiscal year to 129.4 billion yen. This was mainly due to a 4.8 billion yen increase in investment securities and a 1.0 billion yen decrease in machinery, equipment and vehicles.

(Current liabilities)

At the end of the third quarter of the fiscal year under review, current liabilities totaled 291.0 billion yen, an increase of 64.4 billion yen compared with the end of the previous fiscal year. This was mainly due to a 34.3 billion yen increase in short- term loans payable and a 25.4 billion yen increase in accounts payable - trade.

(Non-current liabilities)

At the end of the third quarter of the fiscal year under review, non-current liabilities totaled 36.1 billion yen, a decrease of

2.5 billion yen compared with the end of the previous fiscal year. This was mainly due to a 2.7 billion yen decrease in long- term loans payable.

2

(Net assets)

At the end of the third quarter of the fiscal year under review, net assets totaled 83.9 billion yen, an increase of 12.2 billion yen compared with the end of the previous fiscal year. This was mainly due to a 7.9 billion yen increase in retained earnings and a 3.7 billion yen increase in foreign currency translation adjustments.

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

The financial results forecasts for the full year are revised to reflect the trend of financial results and other factors after the previous forecasts (announced on November 10, 2023).

The assumptions for the revised forecast are an average Dubai crude oil price of US$75/bbl in the fourth quarter (previous forecast: US$85/bbl) and an exchange rate of ¥145/US$ (previous forecast: ¥145/US$).

Net sales are expected to decrease 8.5 billion yen from the previous forecast to 728.3 billion yen.

As for profit, the Company expects a less substantive effect of inventory valuation on lowering the cost of sales due to the lowering of the assumed crude oil price, and operating profit is expected to decrease by 7.9 billion yen from the previous forecast to 5.7 billion yen, ordinary profit is expected to decrease by 6.9 billion yen to 7.9 billion yen, and profit attributable to owners of parent is expected to decrease by 5.2 billion yen to 6.9 billion yen.

As for profit in real terms, excluding the effect of the inventory valuation, operating profit is expected to increase 1.8 billion yen from the previous forecast to 1.9 billion yen, and ordinary profit by 2.8 billion yen to 4.1 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.

3

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto

1. Quarterly Consolidated Balance Sheet

						(Millions of yen)
				As of the end of		As of the end of third quarter of
				the previous fiscal year		the fiscal year under review
				(March 31, 2023)		(December 31, 2023)
Assets
	Current assets
		Cash and deposits	12,463		13,745
		Notes and accounts receivable - trade	69,461	102,142
		Securities	-		400
		Inventories	119,288	156,863
		Accounts receivable - other	1,929		5,084
		Other	7,827	3,412
		Total current assets	210,970		281,647
	Non-current assets
		Property, plant and equipment
			Buildings and structures, net	12,056	11,646
			Storage tanks, net	2,651		2,566
			Machinery, equipment and vehicles, net	29,862	28,826
			Land	51,541		51,541
			Construction in progress	1,152	1,285
			Other, net	590		574
			Total property, plant and equipment	97,855		96,441
		Intangible assets
			Software	478	520
			Other	134		134
			Total intangible assets	612		654
		Investments and other assets
			Investment securities	26,169	31,010
			Long-term loans receivable	641		641
			Net defined benefit asset	761	728
			Other	380		430
			Allowance for doubtful accounts	(407)	(407)
			Total investments and other assets	27,545		32,403
		Total non-current assets	126,014		129,499
	Total assets	336,985		411,147

4

					(Millions of yen)
			As of the end of		As of the end of third quarter of
			the previous fiscal year		the fiscal year under review
			(March 31, 2023)		(December 31, 2023)
Liabilities
	Current liabilities
		Accounts payable - trade	35,792		61,204
		Short-term loans payable	130,316	164,703
		Current portion of long-term loans payable	10,949		9,619
		Accounts payable - other	26,402	22,449
		Excise taxes payable on gasoline and other fuels	16,482		23,981
		Income taxes payable	213	1,466
		Provision for bonuses	336		149
		Other	6,052	7,449
		Total current liabilities	226,545		291,023
	Non-current liabilities
		Long-term loans payable	19,793		17,091
		Deferred tax liabilities	8,854	9,132
		Provision for special repairs	2,387		2,685
		Provision for repairs	5,080	4,818
		Net defined benefit liability	1,740		1,808
		Provision for directors' retirement benefits	23	24
		Other	900		629
		Total non-current liabilities	38,780		36,190
	Total liabilities	265,326		327,214
Net assets
	Shareholders' equity
		Capital stock	24,467	24,467
		Capital surplus	25,495		25,495
		Retained earnings	18,653	26,650
		Treasury stock	(1,271)		(1,271)
		Total shareholders' equity	67,345		75,342
	Accumulated other comprehensive income
		Valuation difference on available-for-sale securities	842	1,095
		Deferred gains or losses on hedges	155		462
		Revaluation reserve for land	1	1
		Foreign currency translation adjustments	2,571		6,327
		Remeasurements of defined benefit plans	560	506
		Total accumulated other comprehensive income	4,130		8,393
	Non-controlling interests	182		197
	Total net assets	71,658		83,932
Total liabilities and net assets	336,985		411,147

5

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income

		Quarterly consolidated statement of income
		First nine months
					(Millions of yen)
			First nine months of		First nine months of
			the previous fiscal year		the fiscal year under review
			(From April 1, 2022		(From April 1, 2023
			to December 31, 2022)		to December 31, 2023)
Net sales	680,237		535,893
Cost of sales	674,021	524,257
Gross profit	6,216		11,635
Selling, general and administrative expenses	3,563		3,501
Operating profit	2,653		8,134
Non-operating income
	Interest income	41		161
	Dividend income	172	93
	Foreign exchange gains	1,070		1,452
	Equity in earnings of affiliates	1,854	1,804
	Rent income from storage tanks	162		155
	Other	216	246
	Total non-operating income	3,518		3,914
Non-operating expenses
	Interest expenses	3,268		1,261
	Rent expenses on storage tanks	159	157
	Other	530		503
	Total non-operating expenses	3,958		1,922
Ordinary profit	2,213		10,126
Extraordinary income
	Gain on sales of non-current assets	0		9
	Total extraordinary income	0		9
Extraordinary losses
	Loss on retirement of non-current assets	23	6
	Loss on cancellation of leases	-		0
	Total extraordinary losses	23	6
Profit before income taxes	2,190		10,129
Income taxes - current	369		1,207
Income taxes - deferred	2		136
Total income taxes	372		1,344
Profit	1,818		8,785
Profit attributable to non-controlling interests	13	16
Profit attributable to owners of parent	1,805		8,768

6

		Quarterly consolidated statement of comprehensive income
		First nine months
					(Millions of yen)
			First nine months of		First nine months of
			the previous fiscal year		the fiscal year under review
			(From April 1, 2022		(From April 1, 2023
			to December 31, 2022)		to December 31, 2023)
Profit	1,818		8,785
Other comprehensive income
	Valuation difference on available-for-sale securities	(14)		252
	Deferred gains or losses on hedges	509		306
	Foreign currency translation adjustments	1,166		683
	Remeasurements of defined benefit plans, net of tax	(80)		(53)
	Share of other comprehensive income of entities	4,964		3,072
	accounted for using equity method
	Total other comprehensive income	6,545		4,262
Comprehensive income	8,363		13,047
(Comprehensive income attributable to)
	Comprehensive income attributable to owners of parent	8,350		13,030
	Comprehensive income attributable to non-controlling	13	16
	interests

7

(3) Notes to Quarterly Consolidated Financial Statements

(Notes on Going Concern Assumption) Not applicable.

(Notes on Significant Changes in the Amount of Shareholders' Equity) Not applicable.

(Segment Information, etc.)

Segment information is omitted as the Group has only one segment consisting of the petroleum refining and sales business.

8