Financial Results 1Q （April 1, 2025 - June 30, 2025）

August 8, 2025

Company name: FUJI OIL CO., LTD. Listing: Tokyo Stock Exchange

Securities code: 2607

URL: https://www.fujioil.co.jp/en/ Representative: Tatsuji Omori, President and CEO

Inquiries: Masaaki Nakanishi, Deputy General Manager, Finance and Accounting Headquarters Telephone: +81-(0)3-4477-5416

Scheduled date to commence dividend payments: －

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

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

1. Consolidated financial results for the three months ended June 30, 2025 (April 1, 2025 - June 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Business profit		Operating profit		Profit before tax		Profit
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	181,831	19.3	5,663	△32.1	4,841	△39.0	3,350	△52.7	3,296	△42.1
      June 30, 2024	152,366	-	8,346	-	7,932	-	7,091	-	5,694	-

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Three months ended	Millions of yen	%	Millions of yen	%	Yen	Yen
      June 30, 2025	3,248	△38.2	929	△94.7	37.78	-
      June 30, 2024	5,258	-	17,444	-	61.18	-

      (Note) Business Profit is calculated by adding share of profit (loss) of investments accounted for using equity method to operating profit and excluding gains and losses due to non-recurring factors.

   2. Consolidated financial position

   	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
   As of	Millions of yen	Millions of yen	Millions of yen	%
   June 30, 2025	607,969	210,088	205,986	33.9
   March 31, 2025	597,076	210,926	206,923	34.7

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	26.00	-	26.00	52.00
   Fiscal year ending March 31, 2026	-
   Fiscal year ending March 31, 2026 (Forecast)		26.00	-	26.00	52.00

   (Note) Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated forecasts for the fiscal year ending March 31, 2026 (April 1, 2025 - March 31, 2026)

(Percentages indicate year-on-year changes.)

(Note) Revisions to the consolidated forecast most recently announced: None

1. Significant changes in the scope of consolidation during the period: Yes New company: 2 companies (PROVENCE HUILES S.A.S, etc.)

   Excluded company: 1 company (The former FUJI OIL CO., LTD.)

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of June 30, 2025	87,569,383 shares
      As of March 31, 2025	87,569,383 shares

   2. Number of treasury shares at the end of the period

      As of June 30, 2025	1,595,456 shares
      As of March 31, 2025	1,595,432 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by

  certified public accountants or an audit firm: None

• Explanations and other special notes concerning the appropriate use of business results forecasts

  The forward-looking statements included in this document are based on the information available at the time of this announcement. The actual results may differ from the forecasts in this report due to various factors.

  The Group has voluntarily adopted International Financial Reporting Standards (IFRS) from the first quarter of the fiscal year ending March 31, 2026, and figures for the previous fiscal year have been reclassified to IFRS basis. Please refer to "2. Quarterly Consolidated Financial Statements (First-Time Adoption of IFRS) (Accompanying Materials)" for the differences of the consolidated financial figures between Japanese Generally Accepted Accounting Principles (hereinafter, "Japanese GAAP") and IFRS.

• How to access quarterly supplementary material on financial results

Quarterly supplementary material on financial results is disclosed in Investor Relation on our company's website on the same day.

Accompanying Materials - Contents

1. Qualitative Information on Results for the Three Months Ended June 30, 2025
   1. Details of Operating Results

      Operating results for the first three months of the current consolidated fiscal year were as follows.

      	Net sales	Business profit	Profit before tax	Profit attributable to owners of parent
      Three months ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
      June 30, 2025	181,831	5,663	3,350	3,248
      June 30, 2024	152,366	8,346	7,091	5,258
      Change	+29,465 +19.3%	△2,682 △32.1%	△3,740 △52.7%	△2,010 △38.2%

      Net sales increased due to higher sales prices to reflect rising key raw material prices, driven by an increase in palm oil prices compared to the same period last year, as well as sustained high cocoa beans prices following the soaring in 2024. Business profit decreased due to a decline in profitability at Blommer Chocolate Company, LLC (USA, hereinafter "Blommer") resulting from higher procurement prices for cocoa beans and increased related costs, despite steady sales of vegetable fats for chocolate in the Vegetable Oils and Fats segment and compound chocolate in the Industrial Chocolate segment. Profit attributable to owners of parent decreased due to impairment losses on non-current asset held for employee benefit purposes and an increase in interest expenses resulting from higher financing costs in addition to the decrease in business profit.

      From the current fiscal year, the Company has allocated corporate expenses which were not allocated to each reported segment and were included in "Adjustment". Therefore, segment information for the previous fiscal year has been analyzed comparatively by allocating corporate expenses to each reported segment.

      The operating results by reported segment are shown below.

      	Net sales			Business profit
      		Year-on-year change			Year-on-year change
      	Millions of yen	Millions of yen	%	Millions of yen	Millions of yen	%
      Vegetable Oils and Fats	63,197	+15,509	+32.5%	9,014	+4,437	+97.0%
      Industrial Chocolate	87,641	+14,068	+19.1%	△3,302	△6,562	-
      Emulsified and Fermented Ingredients	22,486	+320	+1.4%	70	△456	△86.6%
      Soy-based Ingredients	8,504	△433	△4.9%	△27	△25	-
      Adjustment	-	-	-	△91	△76	-
      Total	181,831	+29,465	+19.3%	5,663	△2,682	△32.1%

      (Vegetable Oils and Fats)

      Net sales increased due to higher sales prices to reflect rising raw material prices. Business profit increased mainly due to steady sales of vegetable fats for chocolate.

      (Industrial Chocolate)

      Net sales increased due to higher sales prices to reflect rising raw material prices. Business profit decreased due to a decline in profitability at Blommer resulting from higher procurement prices for cocoa beans and increased related costs and the rebound of recognition of gain on valuation of futures contracts for the first three months of the previous consolidated fiscal year.

      (Emulsified and Fermented Ingredients)

      Net sales were at approximately the same level as the first three months of the previous consolidated fiscal year due to higher sales prices to reflect rising raw material prices, despite a decrease in sales volume. Business profit decreased due to the decrease in sales volume and a decline in profitability resulting from higher procurement prices.

      (Soy-based Ingredients)

      Net sales decreased mainly due to a decrease in sales volume of soy protein foods and functional ingredients. Business profit decreased mainly due to the decrease in sales volume of functional ingredients.

   2. Details of Financial Position

      1. Details of Consolidated Financial Position

         The consolidated financial position at the end of the three months of the fiscal year is as follows.

         (Millions of yen)

         		As of March 31, 2025	As of June 30, 2025	Change
         	Current assets	363,997	358,252	△5,744
         	Non-current assets	233,079	249,716	+16,637
         Assets		597,076	607,969	+10,892
         	Interest-bearing debt	283,721	288,536	+4,815
         	Other	102,428	109,343	+6,915
         Liabilities		386,150	397,880	+11,730
         Equity		210,926	210,088	△838

         (Assets)

         Current assets decreased due to a decrease in cash and cash equivalents despite an increase in inventories attributable to rising raw material price and a newly consolidated company. Non-current assets increased due to an increase in goodwill resulting from the acquisition of shares of a newly consolidated company and purchase of property, plant and equipment. As a result, assets increased by 10,892 million yen from the end of the previous consolidated fiscal year to 607,969 million yen.

         (Liabilities)

         Liabilities increased due to an increase in trade payables which are included in other, as well as an increase in interest-bearing debt such as short-term borrowings along with the acquisition of shares of a newly consolidated company and an increase in working capital. As a result, liabilities increased by 11,730 million yen from the end of the previous consolidated fiscal year to 397,880 million yen.

         (Equity)

         Equity decreased by 838 million yen from the end of the previous year to 210,088 million yen mainly due to a decrease in other components of equity associated with the yen appreciation against the US dollar.

      2. Details of Consolidated Cash Flows

         The cash flows for the first three months of the consolidated fiscal year are as follows.

         (Millions of yen)

         	Three months ended June 30, 2024	Three months ended June 30, 2025	Change
         Cash flows from operating activities	△38,184	△12,606	+25,577
         Cash flows from investing activities	△4,374	△23,411	△19,037
         Free Cash flows	△42,558	△36,018	6,540
         Cash flows from financing activities	47,095	469	△46,626
         Cash and cash equivalents at end of period	33,432	34,296	+864

         (Cash flows from operating activities)

         Cash flows from operating activities for the first three months of the current consolidated fiscal year resulted in expenditures of 12,606 million yen. Expenditures decreased by 25,577 million yen compared to the first three months of the previous consolidated fiscal year mainly due to calming down of working capital requirements.

         (Cash flows from investing activities)

         Cash flows from investing activities for the first three months of the current consolidated fiscal year resulted in expenditures of 23,411 million yen. Expenditures increased by 19,037 million yen compared to the first three months of the previous consolidated fiscal year mainly due to the acquisition of shares of a newly consolidated company and purchase of property, plant and equipment.

         (Cash flows from financing activities)

         Cash flows from financing activities for the first three months of the current consolidated fiscal year resulted in income of 469 million yen. Income decreased by 46,626 million yen compared to the first three months of the previous consolidated fiscal year mainly due to the rebound of the previous year and using of funds in hand.

   3. Information on the Future Outlook, Including Consolidated Business Results Forecasts

   The consolidated business results forecasts for the full year remain unchanged from the business performance forecast announced on May 12, 2025

2. Quarterly Consolidated Financial Statements

1. Quarterly Consolidated Statements of Financial Position

   (Millions of yen)
   	Transition Date (As of April 1, 2024)	As of March 31, 2025	As of June 30, 2025
   Assets
   Current assets
   Cash and cash equivalents	28,499	70,840	34,296
   Trade receivables	92,399	112,298	114,118
   Inventories	109,349	160,718	177,848
   Other financial assets	2,888	1,304	1,745
   Other current assets	13,427	10,197	21,892
   Assets held for sale	-	8,637	8,351
   Total current assets	246,565	363,997	358,252
   Non-current assets
   Property, plant and equipment	141,344	138,081	141,976
   Right-of-use assets	10,048	9,257	11,589
   Intangible assets	33,605	32,572	32,013
   Goodwill	21,907	20,763	32,900
   Investments accounted for using equity method	11,134	13,426	12,991
   Retirement benefit asset	39	39	-
   Deferred tax assets	2,496	10,218	9,338
   Other financial assets	9,426	8,400	8,616
   Other non-current assets	624	319	289
   Total non-current assets	230,628	233,079	249,716
   Total assets	477,193	597,076	607,969

   (Millions of yen)
   	Transition Date (As of April 1, 2024)	As of March 31, 2025	As of June 30, 2025
   Liabilities
   Current liabilities
   Trade payables	41,013	46,538	56,784
   Short-term borrowings	64,373	195,284	215,515
   Current portion of bonds payable	34,989	-	-
   Lease liabilities	2,410	2,062	2,483
   Income taxes payable	4,316	7,566	3,842
   Other financial liabilities	6,148	10,093	10,701
   Other current liabilities	15,589	14,063	13,778
   Liabilities directly associated with assets held for sale	-	259	265
   Total current liabilities	168,842	275,867	303,372
   Non-current liabilities
   Bonds payable	5,978	30,811	30,823
   Long-term borrowings	43,496	57,625	42,197
   Lease liabilities	7,168	6,668	8,857
   Deferred tax liabilities	14,627	10,777	8,089
   Retirement benefit liability	1,985	1,784	1,877
   Other non-current liabilities	2,526	2,613	2,663
   Total non-current liabilities	75,781	110,282	94,508
   Total liabilities	244,624	386,150	397,880
   Equity
   Share capital	13,208	13,208	13,208
   Capital surplus	15,323	8,443	8,442
   Retained earnings	151,046	150,944	151,917
   Treasury shares	△1,947	△1,919	△1,919
   Other components of equity	42,846	36,245	34,338
   Equity attributable to owners of parent	220,477	206,923	205,986
   Non-controlling interests	12,091	4,003	4,101
   Total equity	232,569	210,926	210,088
   Total liabilities and equity	477,193	597,076	607,969

2. Quarterly Consolidated Statements of Income and Comprehensive Income

   Quarterly Consolidated Statements of Income (First three months period)

   (Millions of yen)
   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Net sales	152,366	181,831
   Cost of sales	126,883	158,389
   Gross profit	25,483	23,442
   Selling, general and administrative expenses	17,747	19,354
   Other income	435	934
   Other expenses	239	181
   Operating profit	7,932	4,841
   Finance income	423	508
   Finance costs	1,645	2,120
   Share of profit (loss) of investments accounted for using equity method	381	120
   Profit before tax	7,091	3,350
   Income tax expense	1,397	54
   Profit	5,694	3,296
   Profit attributable to
   Owners of parent	5,258	3,248
   Non-controlling interests	435	47
   Earnings per share
   Basic earnings per share (yen)	61.18	37.78
   Diluted earnings per share (yen)	-	-

   Quarterly Consolidated Statements of Comprehensive Income (First three months period)

   (Millions of yen)
   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Profit	5,694	3,296
   Other comprehensive income
   Items that will not be reclassified to profit or loss
   Net change in fair value of equity instruments measured through other comprehensive income	52	132
   Remeasurements of defined benefit plans	△3	△37
   Total of items that will not be reclassified to profit or loss	48	94
   Items that may be reclassified to profit or loss
   Cash flow hedges	2,096	△275
   Exchange differences on translation of foreign operations	9,005	△1,604
   Share of other comprehensive income of investments accounted for using equity method	599	△581
   Total of items that may be reclassified to profit or loss	11,701	△2,461
   Total other comprehensive income	11,749	△2,366
   Comprehensive income	17,444	929
   Comprehensive income attributable to
   Owners of parent	16,357	915
   Non-controlling interests	1,086	14

3. Quarterly Consolidated Statements of Changes in Equity

   For the three months ended June 30, 2024

   (Millions of yen)

   	Share capital	Capital surplus	Retained earnings	Treasury shares	Other components of equity	Equity attributable to owners of parent	Non-controlling interests	Total equity
   Balance at beginning of period	13,208	15,323	151,046	△1,947	42,846	220,477	12,091	232,569
   Profit	-	-	5,258	-	-	5,258	435	5,694
   Other comprehensive income	-	-	-	-	11,098	11,098	650	11,749
   Comprehensive income	-	-	5,258	-	11,098	16,357	1,086	17,444
   Dividends of surplus	-	-	△2,237	-	-	△2,237	△13	△2,251
   Purchase of treasury shares	-	-	-	△0	-	△0	-	△0
   Disposal of treasury shares	-	-	-	3	-	3	-	3
   Transfer from other components of equity to retained earnings	-	-	△73	-	73	-	-	-
   Share-based payment transactions	-	△3	-	-	-	△3	-	△3
   Other	-	-	-	-	△965	△965	-	△965
   Total transactions with owners	-	△3	△2,311	3	△891	△3,203	△13	△3,217
   Balance at end of period	13,208	15,319	153,994	△1,944	53,054	233,632	13,163	246,796

   For the three months ended June 30, 2025

   (Millions of yen)

   	Share capital	Capital surplus	Retained earnings	Treasury shares	Other components of equity	Equity attributable to owners of parent	Non-controlling interests	Total equity
   Balance at beginning of period	13,208	8,443	150,944	△1,919	36,245	206,923	4,003	210,926
   Profit	-	-	3,248	-	-	3,248	47	3,296
   Other comprehensive income	-	-	-	-	△2,332	△2,332	△33	△2,366
   Comprehensive income	-	-	3,248	-	△2,332	915	14	929
   Dividends of surplus	-	-	△2,237	-	-	△2,237	△12	△2,250
   Purchase of treasury shares	-	-	-	△0	-	△0	-	△0
   Disposal of treasury shares	-	-	-	-	-	-	-	-
   Transfer from other components of equity to retained earnings	-	-	△37	-	37	-	-	-
   Share-based payment transactions	-	△1	-	-	-	△1	-	△1
   Other	-	-	-	-	387	387	96	483
   Total transactions with owners	-	△1	△2,275	△0	425	△1,851	84	△1,767
   Balance at end of period	13,208	8,442	151,917	△1,919	34,338	205,986	4,101	210,088

4. Quarterly Consolidated Statements of Cash flows (First three months period)

   (Millions of yen)
   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Cash flows from operating activities
   Profit before tax	7,091	3,350
   Depreciation and amortization	4,947	4,718
   Decrease (increase) in retirement benefit asset	0	△14
   Increase (decrease) in retirement benefit liability	18	32
   Interest and dividend income	△257	△339
   Interest expenses	1,565	1,793
   Impairment losses	-	686
   Share of loss (profit) of investments accounted for using equity method	△381	△120
   Loss (gain) on disposal of non-current assets	33	15
   Decrease (increase) in trade receivables	△10,605	97
   Decrease (increase) in inventories	△24,170	△12,787
   Increase (decrease) in trade payables	△1,040	8,150
   Decrease (increase) in advance payments to suppliers	△6,626	△9,996
   Other	△4,503	△615
   Subtotal	△33,927	△5,030
   Interest and dividends received	458	99
   Interest paid	△1,522	△1,995
   Income taxes refund (paid)	△3,192	△5,680
   Net cash provided by (used in) operating activities	△38,184	△12,606
   Cash flows from investing activities
   Purchase of property, plant and equipment	△3,516	△5,877
   Proceeds from sale of property, plant and equipment	8	31
   Purchase of intangible assets	△823	△784
   Payments for acquisition of subsidiaries	-	△16,726
   Payments for investments in capital	△13	△6
   Payments for loans receivable	△0	△18
   Other	△28	△30
   Net cash provided by (used in) investing activities	△4,374	△23,411

   (Millions of yen)
   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Cash flows from financing activities
   Net increase (decrease) in short-term borrowings	41,642	3,819
   Net increase (decrease) in commercial papers	10,000	-
   Proceeds from long-term borrowings	10,000	-
   Repayments of long-term borrowings	△1,003	△440
   Proceeds from issuance of bonds	25,000	-
   Redemption of bonds	△35,000	-
   Dividends paid	△2,237	△2,237
   Dividends paid to non-controlling interests	△13	△12
   Other	△1,292	△660
   Net cash provided by (used in) financing activities	47,095	469
   Effect of exchange rate changes on cash and cash equivalents	395	△995
   Net increase (decrease) in cash and cash equivalents	4,932	△36,544
   Cash and cash equivalents at beginning of period	28,499	70,840
   Increase or decrease in cash and cash equivalents resulting from transferring to assets held for sale	△0	-
   Cash and cash equivalents at end of period	33,432	34,296

5. Notes to Quarterly Consolidated Financial Statements (Notes Relating to Assumptions for the Going Concern)

Not applicable.

From the current fiscal year, the Company has allocated corporate expenses which were not allocated to each reported segment and were included in "Adjustment". Therefore, in the segment information for the previous fiscal year, corporate expenses have been allocated to each reported segment.

First three months period of the previous fiscal year (April 1, 2024 - June 30, 2024)

(Millions of yen)

(Note) 1. Adjustment of business profit △14 million yen includes the elimination of intersegment transactions.

2. Business profit is calculated by adding share of profit (loss) of investments accounted for using equity method to operating profit and excluding gains and losses arising from non-recurring factors.

First three months period of the current fiscal year (April 1, 2025 - June 30, 2025)

(Millions of yen)

(Note) 1. Adjustment of business profit △91 million yen includes the elimination of intersegment transactions.

2. Business profit is calculated by adding share of profit (loss) of investments accounted for using equity method to operating profit and excluding gains and losses arising from non-recurring factors.

The adjustment from business profit to profit before tax is as follows:

(First-Time Adoption of IFRS)

The Group prepared its consolidated financial statements in compliance with IFRS from the current fiscal year. The most recent consolidated financial statements prepared in accordance with Japanese GAAP are those for the fiscal year ended March 31, 2025, and the transition date to IFRS is April 1, 2024.

1. Exemptions and mandatory exceptions under IFRS 1

   In principle, IFRS requires that companies adopting IFRS for the first time (hereinafter, "First-time Adopter") apply the standards required under IFRS retrospectively. However, for some of the standards required under IFRS, IFRS 1 First-Time Adoption of International Financial Reporting Standards (hereinafter, "IFRS 1") specifies standards for which the exemption is applied mandatorily and those for which the exemption is applied voluntarily. The impact based on the application of these exemptions is adjusted in retained earnings and other components of equity at the transition date.

   The exemptions that the Group applies in connection with the transition from Japanese GAAP to IFRS are as follows:

   • Business combinations

     IFRS 1 permits a First-time Adopter to elect not to apply IFRS 3 Business Combinations (hereinafter," IFRS 3") retrospectively to business combinations that occurred before the transition date to IFRS. If any business combination is restated upon retrospective application, all later business combinations shall be restated to comply with IFRS 3.

     The Group has elected not to apply IFRS 3 retrospectively to business combinations that occurred before the transition date. Accordingly, goodwill and equivalent to goodwill in equity method affiliates arising from business combinations that occurred before the transition date were recorded at the carrying amount under Japanese GAAP at the transition date. However, goodwill was tested for impairment as of the transition date irrespective of whether there was any indication of impairment.

   • Use of deemed cost

     Under IFRS 1, the fair value of property, plant and equipment at the transition date can be used as deemed cost. The Group uses the fair value at the transition date as the deemed cost for certain items of property, plant and equipment.

   • Designation of financial instruments recognized before the transition date

     IFRS 1 permits First-time Adopter to designate financial assets in accordance with IFRS 9 Financial Instruments (hereinafter, "IFRS 9") on the basis of the facts and circumstances that exist as at the transition date. The Group has designated equity instruments that were held as at the transition date as financial instruments measured at fair value through other comprehensive income (equity instruments) on the basis of the circumstances that existed as at the transition date.

   • Leases (as lessee)

     IFRS 1 permits First-time Adopter to determine whether or not an arrangement contains a lease on the basis of facts and circumstances existing at the transition date. When First-time Adopter that is a lessee recognizes lease liabilities and right-of-use assets, it may measure lease liabilities and right-of-use assets for all of its leases at the transition date. The Group measured lease liabilities at the transition date at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate at the transition date. The Group measured right-of-use assets at the transition date at an amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments relating to the leases recognized in the statement of financial position immediately before the transition date.

   • Share-based payments

     IFRS 1 permits First-time Adopter to elect not to apply IFRS 2 Share-based Payment (hereinafter, "IFRS 2") to share-based payments vested before the transition date. The Group elected not to apply IFRS 2 to share-based payments vested before the transition date.

2. Mandatory exceptions to retrospective application under IFRS 1

   IFRS 1 prohibits the retrospective application of IFRS for certain items including "estimates," "derecognition of financial assets and financial liabilities," "hedge accounting," "non-controlling interests," and "classification and measurement of financial assets." The Group has applied IFRS to these items prospectively from the transition date.

3. Reconciliations

The reconciliations required to be disclosed under IFRS 1 are as follows. "Change in FYE" includes reconciliations that reflect the alignment of subsidiaries' fiscal year ending with the Group's as part of the transition to IFRS. "Reclassification" includes reconciliations that do not affect retained earnings and comprehensive income. "Difference in recognition and measurement" includes reconciliations that affect retained earnings and comprehensive income.

Reconciliation of equity as of April 1, 2024 (The transition date)

Reconciliations of equity as of the end of the first quarter of the previous fiscal year (June 30, 2024)

Reconciliations of equity as of March 31, 2025 (The previous fiscal year consolidated financial statements)

Reconciliations of profit or loss and comprehensive income for the first three months period of the previous fiscal year (April 1, 2024 - June 30, 2024)

Reconciliation of profit or loss and comprehensive income for the previous fiscal year (From April 1, 2024 to March 31, 2025)

Notes on reconciliations

1. Reclassification

   1. Inventories

      Merchandise, finished goods, raw materials, and supplies, which were separately presented under Japanese GAAP are reclassified to "Inventories" under IFRS.

   2. Other financial assets (current assets)

      Foreign exchange forward contracts, etc., included in other (current assets) under Japanese GAAP are reclassified to "Other financial assets" (current assets) under IFRS.

   3. Other current assets

      Advance payment, suspense paid income tax and income taxes receivable, etc., which were included in other (current assets) under Japanese GAAP are reclassified to "Other current assets" under IFRS.

   4. Assets held for sale, Liabilities directly associated with assets held for sale

      Assets or asset group held for sale are reclassified to "Assets held for sale" and "Liabilities directly associated with assets held for sale" under IFRS.

   5. Property, plant and equipment

      Buildings and structures, machinery equipment and vehicles, and land, etc., which were separately presented under Japanese GAAP are reclassified to "Property, plant and equipment" under IFRS.

   6. Intangible assets

      Customer-related intangible assets which were separately presented under Japanese GAAP and right of trademark and software, etc., included in other (intangible assets) under Japanese GAAP are reclassified to "Intangible assets" under IFRS.

   7. Investments accounted for using equity method

      Investments accounted for using equity method included in investment securities under Japanese GAAP, are reclassified to "Investments accounted for using equity method" under IFRS.

   8. Other financial assets (non-current assets)

      Listed shares and unlisted shares included in investment securities under Japanese GAAP, and guarantee deposits and investment in capital, etc., included in other (investments and other assets) under Japanese GAAP, are reclassified to "Other financial assets" (non-current assets) under IFRS.

   9. Other non-current assets

      Long-term prepaid expenses, etc., included in other (investments and other assets) under Japanese GAAP, are reclassified to "Other non-current assets" under IFRS.

   10. Lease liabilities

       Lease liabilities included in other (current liabilities) under Japanese GAAP are reclassified to "Lease liabilities (current liabilities)" under IFRS.

   11. Short-term borrowings

       Commercial paper separately presented under Japanese GAAP are reclassified to "Short-term borrowings" under IFRS.

   12. Other financial liabilities (current liabilities)

       Construction accounts payable and accounts payable, etc., included in other (current liabilities) under Japanese GAAP are reclassified to "Other financial liabilities" (current liabilities) under IFRS.

   13. Other current liabilities

       Provision for bonuses which were separately presented under Japanese GAAP and accrued expenses, etc., included in other (current liabilities) under Japanese GAAP are reclassified to "Other current liabilities" under IFRS.

   14. Other non-current liabilities

       Deposits Received - Long Term, etc., included in other (non-current liabilities) under Japanese GAAP are reclassified to "Other non-current liabilities" under IFRS.

   15. Other components of equity

       Foreign currency translation adjustment, remeasurements of defined benefit plans, valuation difference on available-for-sale securities, and deferred gains or losses on hedges, which were separately presented under Japanese GAAP are reclassified to "Other components of equity" under IFRS.

   16. Non-operating income (losses), Extraordinary income (losses)

       Income and expenses, which were presented as non-operating income, non-operating expenses, extraordinary income, and extraordinary losses under Japanese GAAP, are included in "Finance income" and "Finance costs" for finance-related items, "Cost of sales" for impairment losses, etc., and "Other operating income", "Other operating expenses" and "Share of profit (loss) of investments accounted for using equity method" for the other items under IFRS.

   17. Income tax expense

       Income taxes - current and income taxes - deferred, which were separately presented under Japanese GAAP are reclassified in total as "Income tax expense" under IFRS.

2. Differences in recognition and measurement

1. Non-marketable equity instruments

   Under Japanese GAAP, non-marketable equity instruments were carried at cost. Under IFRS, they are designated as equity instruments measured at fair value through other comprehensive income in accordance with IFRS 9, and accordingly, equity instruments are measured at fair value, regardless of whether they are marketable or not, with the changes in fair value recognized through other comprehensive income.

2. Goodwill

   Under Japanese GAAP, goodwill was amortized on a straight-line basis over a reasonably estimated period during which its effect is expected to continue. Under IFRS, goodwill arising from business combinations is not amortized but tested for impairment each fiscal year.

3. Deferred tax assets and liabilities

   Under Japanese GAAP, deferred tax assets on unrealized profits from intercompany inventories transactions were measured using the seller's effective tax rate. Under IFRS, they are measured using the buyer's effective tax rate. As a result of the transition to IFRS, adjustments were made to deferred tax assets and liabilities due to temporary differences and the reassessment of the recoverability of deferred tax assets.

4. Employee benefits

   Under Japanese GAAP, service cost, interest expense, and expected return on plan assets for retirement benefits under defined benefit plans were recognized in profit or loss. Actuarial gains and losses and past service cost arising from the plans were also recognized in profit or loss in the fiscal year in which they were incurred.

   Under IFRS, on the other hand, current service cost and past service cost for retirement benefits under defined benefit plans are recognized in profit or loss, and interest expense is recognized in profit or loss at an amount calculated by multiplying the net defined benefit liability (asset) by the discount rate. Remeasurement of the net defined benefit liability (asset) is recognized in other comprehensive income, and directly reclassified to retained earnings from other components of equity when incurred without being recognized through profit or loss. Remeasurement consists of actuarial gains and losses on defined benefit obligations and return on plan assets (excluding interest income on plan assets).

   In addition, if defined benefit assets exceed obligation, the asset ceiling is determined as the present value of the future economic benefits available in the form of refunds from the plan or reductions in future contributions.

5. Deemed cost

   In applying IFRS, the Group elected to use the deemed cost exemption under IFRS 1 and measured certain items of property, plant and equipment at fair value as of the transition date.

6. Lease liabilities and right-of-use assets

   Under Japanese GAAP, leases as a lessee were classified as either finance leases or operating leases, and operating leases were accounted for in a similar manner to ordinary rental transactions. Under IFRS, leases as a lessee are not classified as finance leases or operating leases, and right-of-use assets and lease liabilities are recognized for lease transactions.

7. Provision for paid absence

   Unused paid absences, which were not required to be recognized under Japanese GAAP, are recognized as a provision under IFRS.

8. Levies

   Under Japanese GAAP, levies such as fixed asset taxes were expensed over the fiscal year in which the payment obligation arose. Under IFRS, the full amount is expensed when the obligating event occurs.

9. Inventories

   Under Japanese GAAP, some subsidiaries included transportation costs to deliver products to customers in the cost of inventories. Under IFRS, all costs except for those incurred in bringing the inventories to their present location or condition are recognized as "Selling, general and administrative expenses" when they are incurred.

10. Financial instruments (Foreign exchange forward contracts)

    Under Japanese GAAP, some subsidiaries designated allocation method for foreign exchange forward contracts. Under IFRS, these transactions are subject to cash flow hedge accounting.

11. Change in Scope of Consolidation

    Under Japanese GAAP, subsidiaries and affiliates of insignificant materiality were accounted for using the cost method. Under IFRS, such entities are included in the scope of consolidation as subsidiaries or equity-method associates.

12. Reconciliation of retained earnings

The impact of the reconciliations on retained earnings is as follows (figures in parentheses represent loss).

Reconciliation of cash flows for the three months ended June 30, 2024 (from 4/1/2024 to 6/30/2024) and the fiscal year ended March 31, 2025 (from 4/1/2024 to 3/31/2025)

There are no significant differences between the consolidated cash flows statements based on Japanese GAAP and the consolidated cash flows statements based on IFRS.