This document is a translation of the Japanese language original version. In the event of any discrepancy,errors and/or omissions, the Japanese language version shall prevail.

November 16, 2022

Notice regarding Formulation of a Revised Medium-Term Business Plan
J-Oil Mills, Inc. announces that J-Oil Mills Group has established numerical targets and future initiatives forthe revised Sixth Medium-Term Business Plan, which was announced on May 20, 2022.
1.

Circumstances behind the Revision of Medium-Term Business PlanOn May 20, 2021, the Group announced the Sixth Medium-Term Business Plan, “Transforming forGrowth," which concludes in FY2024, and has been working to achieve the strategic goals laid out therein.
However, conditions for procuring raw materials have changed significantly since the original formulationof the plan.
Market prices of raw materials such as soybeans, rapeseed, and palm oil are rising sharply due to a
deterioration in the supply outlook of grains and raw materials for oils and fats caused by substantialchanges in global conditions as well as increased demand for edible oils for biodiesel and otherapplications, unseasonable weather in major countries producing raw materials, and reduced production
due to COVID-19-related labor shortages.
Moreover, we project that the outlook surrounding procurement costs associated with edible oils andfats will remain uncertain due to both higher energy and logistics costs caused by soaring crude oil prices
and the ongoing depreciation of the yen against the US dollar in foreign currency exchange markets.
Considering these changes in the business environment, the Group has decided to revise the Sixth
Medium-Term Business Plan.

2.

Key Changes in the Revised Medium-Term Business PlanA) Policies and Strategies
Although we have made no changes to the vision or primary strategies set forth in the Sixth
Medium-Term Business Plan (announced in May 2021), we have decided to extend the period
allotted for achievement of the plan's numerical targets by two years while dedicating this spanof time to the establishment of a highly resilient framework capable of withstanding majorchanges in our surrounding business environment, a goal we aim to accomplish through astronger business foundation and earnings recovery. When formulating the revised MediumTerm Business Plan, we once again identified opportunities and risks presented by medium- tolong-term changes in our business environment while identifying the following three priorities
based on assessments of our strengths.
Through the successful implementation of these initiatives, we intend to restore profitability andgenerate growth moving forward.

1

Three priorities
Revised Policy One

Structural reforms

Revised Policy Two

Growth strategies

Revised Policy Three

Investment strategies

Strengthen profit base: SCM* reform andproduction base optimization
Develop and expand lineup of growth-driving
products characterized by advantages of lower
workload, economic load and environmental
impactInvest proactively overseas and in new business
areas* SCM: Supply Chain Management
Note: Please refer to our website for more details concerning the revised Sixth Medium-Term Business Plan.

https://www.j-oil.com/en/ir/management/plan.html
B) Numerical Targets
Initial Targets

Net sales
Operating profit
Operating profit
margin
ROE
ROIC
EPS

Revised Targets
FY2024(Initial targets)
220.0 billion yen
11.0 billion yen

Net sales
Operating profit
Operating profit
marginROEROIC
EPS

5.0%
8.0%
5.5%
260 yenFY2026(Revised targets)-*
11.0 billion yen
-*
8.0%
5.0%
260 yen* To ensure that we can respond flexibly to changes in our surrounding business environment and facilitate
growth while emphasizing capital efficiency, we have decided to exclude net sales and operating profit margin
from the plan's numerical targets.

C) Dividend Policy
While targeting the stable return of profits to shareholders, we maintain a basic policy of steadily andappropriately distributing earnings in accordance with a long-term perspective that includes a focus
on strengthening our corporate structure and proactive business development. We aim to achieve aconsolidated dividend payout ratio of 40% and will accordingly continue to reliably and sustainably
strengthen the returns we provide to our shareholders.
###2