Nisshin OilliO : Financial Results Briefing for the Year Ended March 31, 2023

The Nisshin OilliO Group, Ltd.

FY2022

Financial Results Briefing

May 19, 2023

Summary of Financial Results for FY2022

3

Summary of Financial Results for FY2022 and Earnings Forecast for FY2023

■ Financial Results for FY2022

• Both net sales and profits increased. Consolidated net sales were ¥556.5 billion, and consolidated operating profit was ¥16.1 billion.
• • Despite a challenging cost environment due to soaring prices for raw materials and other factors, sales and profits for domestic oil and fat increased as a result of phased implementation and maintenance of sales price revisions.
  • Overseas processed oil and fat posted higher sales and profits due to a higher refining margin for palm oil and an increase in the sales volume of specialty fats as well as positive foreign exchange effects as a result of the weaker yen.
  • Profit exceeding forecasts was achieved due in part to mark-to-market valuation gains on palm oil transactions in overseas processed oil and fat (+¥1.45 billion year-on-year).

■ Earnings Forecast for FY2023

• Consolidated net sales of ¥540.0 billion, consolidated operating profit of ¥16.0 billion (the same level as FY2022), and higher profit attributable to owners of parent of ¥11.5 billion.
• • In addition to maintaining sales at appropriate prices as prices for raw materials decline, sales volumes are expected to increase, resulting in higher profits.
  • Regarding overseas processed oil and fat, sales volume of specialty fats will increase, but due to effects from factors including refining margins and mark-to-market valuation gains on palm oil transactions, both of which are expected to decrease from the previous fiscal year, profits will decline.

Summary of FY2022 Financial Results

4

(Billion yen)

	FY2022 results	FY2021 results	YoY change	Change (%)
Net sales	556.5	432.7	＋123.7	+28.6%
Operating profit			＋4.5	＋38.7%
Percentage of operating	16.1	11.6
		＋0.2P	－
profit	2.9%	2.7%
to net sales
Ordinary profit	16.2	12.6	＋3.5	＋28.4%
Profit attributable to	11.1	8.5	＋2.5	＋29.8%
owners of parent

* Amounts of less than 0.1 billion yen are rounded down

FY2022 Results by Business Segment (Net Sales and Operating Profit)

5

(Billion yen)

		FY2022 results	FY2021 results	YoY change
		Change	Change (%)
Net sales	556.5	432.7	+123.7	＋
		28.6%
Oil and Fat	468.3	355.0	+113.3	＋31.9%
	Oil and Meal	350.3	267.8	+82.5	+30.8%
	Processed Oil and Fat	118.0	87.1	+30.8	+35.4%
Processed Food and Materials	65.1	58.1	+6.9	＋11.9%
Fine Chemical	20.4	17.0	+3.4	+20.3%
Other/Adjustments	2.6	2.5	＋0.0	＋2.2%
Operating profit	16.1	11.6	+4.5	＋38.7%
Oil and Fat	14.6	8.9	+5.6	＋63.0%
	Oil and Meal	9.0	4.7	+4.3	+92.9%
	Processed Oil and Fat	5.5	4.2	+1.2	+29.8%
Processed Food and Materials	0.5	1.6	(1.1)	(68.1%)
Fine Chemical	1.3	1.3	＋0.0	+3.6%
Other/Adjustments	(0.3)	(0.3)	(0.0)	―

* Amounts of less than 0.1 billion yen are rounded down