Integrated Report

2022
KENKO Mayonnaise Co., Ltd.

Introduction

Company Philosophy and Group Management Policy
Since its establishment, the Group has evolved and developed from seasonings to salads and salad cuisinewith the aim of enriching people’s minds and valuing their health through food.

Contributing to the world
by providing quality foods.
Body and Mind (mind/body/soul)and Environment

Company
Philosophy

Our Company Philosophy represents our significance of existence, mission, and responsibility in society,based on our desire to respond to the changing needs and expectations of the times,
take on the challenge of creating new value, and continue to grow together with society.

To becomeNo.1 Salad Company.
To provide the number one quality
products / services in Japan.

Group
Management
PolicyWe aim to create a company where salads play the main role, the staple meal, and the main dish on the table.
We also aim to lead the market with salads, and to establish a genre of salad cuisine.
Furthermore, it is our responsibility as a manufacturer to provide safe, reliable, and high-quality products forthe satisfaction of our customers, and we will continue to work tirelessly to achieve higher quality and service.

01

Integrated Report 2022

Introduction

Table ofContents

Strategy

Introduction

Sustainability

Corporate Governance

Performance andCorporate Information

01 Company Philosophy and Group Management Policy
02 Table of Contents
03 History of the KENKO Mayonnaise Group
05 KENKO Mayonnaise at a Glance

Strategy

07 Message from Top Management
11 Value Creation Process
13 Medium-Term Management Plan
15 Strategy by Segment
Seasoning and Processed Foods Business
17

Sustainability

Comments From Business Leaders

19

Delicatessen-related Business

20

Other

21 Sustainability of the KENKO Mayonnaise Group
23 Environmental Initiatives
25 Community and Social Initiatives
27 Human Resource Development Initiatives
29 Education Through Food

Corporate
Governance

31 Corporate Governance
35 Compliance
36 Risk Management
37 List of Officers
39 Dialogue With the President and an External Director

The KENKO Mayonnaise Group’s Integrated Report 2022 is issued to shareholders,investors, and all other stakeholders with the aim of further deepening theirunderstanding of the Group’s strategies. The report comprehensively describes theGroup’s efforts to enhance its corporate value, its business model and Medium-Term
Management Plan, its strategies for value creation, and its management foundation.
Please visit our corporate website for financial information, CSR activity reports,
products and business activities that cannot be fully covered in this report.
This report was compiled with reference to the International <IR> Framework of theInternational Integrated Reporting Council (IIRC) and the Guidance for Collaborative
Value Creation of the Ministry of Economy, Trade and Industry.
Forward-looking Statements
Forward-looking statements in this report, including performance forecasts, are basedon information currently available and are deemed reasonable, but contain
uncertainties. Actual results may differ from these statements due to various factors.
Organizations Covered
KENKO Mayonnaise Co., Ltd. and its consolidated subsidiaries
Period Covered
FY2021 (April 1, 2021 to March 31, 2022)* Some of the information includes information outside the period covered.

Publication

45 Corporate Information
46 Stock Information

Major Disclosures and Communication Tools
Statutory disclosures and timely
disclosures

Voluntary disclosures

Annual Securities Report

Financial information

Editorial Policy

43 Financial and Non-financial Highlights

Financial Results
Financial Statements,
Business Report, andtheir supplementaryschedules(Notice of convocation)

Financial results briefing
materials
Shareholder newsletter- KENKO REPORT

Integrated ReportNon-financial information(CSR, ESG, etc.)

Performance andCorporate
Information

Corporate Governance
ReportCorporate profile
Corporate website

The Group conducts timely disclosure of information
through the contents described above as a tool forcommunication with its stakeholders. In addition
to financial information, the Integrated Report also
includes non-financial information, presenting information on the Group in an easy-to-understand format.

November 2022

02

Introduction

History of the KENKO Mayonnaise GroupThe Group was established in 1958 as a company selling cooking oil,and started as a mayonnaise manufacturer for commercial use.
The turning point was in 1977.
A major bread manufacturer asked us if we could develop a sandwich filling that could be used even in the summer,and “long-life salad” was born.
Since then, we have contributed to the world by actively developing products and menu items that meet market needs,
with the aim of becoming the No. 1 salad company.
We will continue to accurately identify the challenges ahead in the food market,
and aim to be a company that can grow sustainably.

1992
Launched KENKO
Restaurant taste
Mayonnaise.

1986
Launched Burdock Salad forcommercial
purpose.

History of our products
1961
Launched KENKO Mayonnaise
AS for commercial salads.

Flavorful andrich egg-yolk
typemayonnaise.

Burdock, which isusually used in Japanesecuisine, was now used insalads and weestablished a new
standard for salads.

Expandedbusiness withmayonnaise anddressings as its
foundation.

1977
Launched Fashion Delica
Foods (FDF®), the industry’s
first long-life salad.
Launched and createda market for long-life
salad amidst the
expanding restaurant
and home meal market.

2009
Launched
Low-calorie
Non-oilDressing series.

1990
Launched KOBE
Salad ICHIBANKAN
series.

Responding to
growing
healthconsciousness.

Delicious salads
are ready in notime just by
drizzling andmixing withdressing.

1970s

1980s

1990s

Through sales of cooking oil, KENKO
Mayonnaise becomes a manufacturer
dedicated to mayonnaise for commercial use.

Pioneering the fiber boom andexpanding business.

The Japanese food market entered aperiod of maturity, moving from an
era of quantity to an era of quality.

1986 Launched Burdock Salad for commercial
purpose.
Expanded business into seasoned
processed foods and processed egg
products, with a focus on salads.

1992 The trade name was changed to KENKO
Mayonnaise Co., Ltd. from KENKOMayonnaise Co., Ltd.

History of the Group
1958 The Company was established.
1966 The trade name was changed to KENKOMayonnaise Co., Ltd.
1970 Became a dedicated manufacturer ofmayonnaise for commercial use.

03

Integrated Report 2022

1994 Registered as an over-the-counter stockof Japan Securities Dealers Association(JASDAQ market of the Tokyo Stock
Exchange).

Introduction

Strategy

Created from theidea of “it would
be nice if thisproduct existed...”Corporate GovernanceOur first pasta sauce.
Pasta sauce to makeeating vegetables tasty.

Our first canned product.
Just open the can, andit’s like eating out.

SOUZAITEI
seriesFreshly-baked taste
with a distinctive egg
flavor made possibleby the use of the best
manufacturingmethods and broths.

2013
Launched Salad Madeby Professional Chefs
series.
Professional
taste madeeasy athome.

2021
Simply put it on rice,
Launched
bread, salad, and you have
Noseru Dake an easy staple meal ormain dish.
(simply add)
seriesJapanese side disheswith emphasis on
Japanese traditions
and ingredients.

Delicious
salads andprepared
foods for all.

Performance andCorporate Information

2022
Launched CANDISH® andPasta Sauce Great
with Vegetables.

2014
Launched SOUZAITEI( Japanese omelet ) series
and WASAI BANSAI® series.

2011
Launched
Garlic Butter
Sauce.

2010
Launched Yawaraka
Shoku (soft texturefood) series.

Sustainability

WASAI BANSAI®
series

2014
Launched
World Traveler
Dressings
series.

2018
Launched
Plant-based Food

Proposing new
enjoyment of food andfood styles.

Offering local
delicacies thatare popular incountries aroundthe world.

2000s
Becoming the No. 1 Salad Company by expanding business areas and aggressively expanding
into the global market
Anticipating customer needs by developing products with high added value and functionality
2005 Established Salad Cafe Co., Ltd.

2012 Designated for First Section of the Tokyo
Stock Exchange.
Established an office in Indonesia (Jakarta).
2014 Completed
Shizuoka
Fujisan Factory.

2007 Issued new shares through third-party allotment.
2011 Listed on the Second Section of theTokyo Stock Exchange.

2018 Completed Kanagawa Factory of KANTOHDIET COOK Co., Ltd.
Invested (indirect) in Hans Kissle Company,
LLC, an U.S. home meal manufacturer
2022 Transitioned to the Tokyo Stock
Exchange Prime Market

2015 Opened Vancouver Research Office(Vancouver, Canada).

04

Introduction

KENKO Mayonnaise at a Glance
The manufacturer function of KENKO Mayonnaise, which has know-how in the development and production of Salads andDelicatessen Products, Processed Egg Products, Mayonnaise and Dressings, the delicatessen function of consolidated subsidiaries,
which have know-how in the production of fresh delicatessen products and is also involved in menu development, and the shop
and web function of Salad Cafe, which operates shops mainly in department stores and shopping malls in Kansai and Kanto
region, publishes recipe books, and disseminates information via the web and social media. Each function complements theother in the pursuit of customer satisfaction through the collection and dissemination of information.

Segment composition ratio (Fiscal year ended March 31, 2022)

Delicatessen-related BusinessSeasoning and Processed Foods BusinessNet sales

17,323 million yen

Net sales

57,552 million yen

Profit by segment

984 million yen

Mayonnaise and Dressings

20,033 million yen

Other

Processed Egg Products

19,300 million yen

Net sales

Net sales

75,647 million yen

Salads and Delicatessen

17,141 million yen

861 million yen

Other1,076 million yen

Loss by segment

Profit by segment(57) million yen

1,887* million yen* Net sales do not include overseas
operations as they are accounted
for by the equity method.

1*1 Includes dividend income from Group companies

Core Products
Garlic Butter Sauce
This popular product isin liquid form that does
not harden even when refrigerated, does not burneasily when heated, andgives a great flavor without other seasoning.
Ranked #1 best seller inthe condiments & sauces
category on the major ecommerce site Amazon.
(As of November 14)

05

Integrated Report 2022

1st

HAPPY!! with VEGEWASAI BANSAI®

This series proposes a new enjoyment of food and food style in which
eating vegetables makes both the bodyand mind happy. Plant-based products
made mainly from vegetable ingredients, without dairy
products, eggs, ormeat. A total of sevenproducts are currently on the market.

These Japaneseside dishes ( WASOUZAI) emphasize
Japanese traditions andingredients, and are characterized by theirbrilliant appearance and delicious taste
just by serving. We will continue to incorporate local cuisine into our productlineup to bring widely familiar tastes tothe rest of the world.

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Net sales and profit by segment

Seasoning and Processed Foods Business(Millions of yen)

45,8942,502

FY2012

Net sales

Profit by segment

49,73347,541

2,106

FY2013

2,648

55,03558,51160,13959,68959,09357,552
51,611

3,012

2,862

3,400

3,219
2,532
1,617

FY2014FY2015FY2016FY2017FY2018FY2019FY20201,887

FY2021

Delicatessen-related Business(Millions of yen)

7,526
320

Net sales

Profit (loss) by segment

9,419

8,586

369

348

10,660645

11,062
1,023

11,327

13,105811

14,25016,057

17,232

984

396

541

FY2019FY2020

FY2021

832

861

(83)
FY2012FY2013

FY2014FY2015FY2016FY2017

1,238

1,238

1,292

FY2018

Other(Millions of yen)

Net sales

Profit (loss) by segment

1,113

1,173

1,175

1,194

6
(255)

(216)

(229)

FY2012FY2013

FY2014

(77)

(31)

(98)

FY2015FY2016FY2017FY20181,13680

FY2019(35)(57)

FY2020

FY2021* There are adjustments in addition to the above.

06

Strategy

Message from Top Management

We will deliver an exciting
KENKO Mayonnaise and promotea transformation for achieving
sustainable growth.
President andRepresentative Director
S u m i i

T a k a s h i

We would like to express ourappreciation for your continued
support and patronage.
The Company has completed the firstyear of its Medium-Term Management
Plan, the KENKO Transformation Plan,and has begun to take steady steps
toward sustainable growth.
We will pursue value creation unique to
KENKO Mayonnaise.

07

Integrated Report 2022

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Starting Point of KENKO Mayonnaise Revisited by the COVID-19 Pandemic
KENKO Mayonnaise was established in March 1958 andlaunched the industry’s first long-life salad in October 1977. As
a commercial food manufacturer that supports the restaurant
and home meal industry, we have developed as a marketleading company, focusing on salads to add flavor to a variety
of dining scenes. While the Company’s performance continued to grow steadily, a trial came in 2020. The spread of COVID-19 had a major impact, including closure and shorter
opening hours of restaurants and activity restrictions. The impact directly hit the Group, and in the fiscal year ended March
31, 2021, sales of potato salad, mayonnaise, and dressing forcommercial use, which had been our mainstay products in therestaurant industry, declined significantly. On the other hand,
we made efforts to respond to changes in food styles, withgrowth in small-volume products in response to food loss andwaste reduction and take-out demand, and in delicatessen at
mass retailers due to the increase in time spent at home. Whilethese food styles have taken root in the subsequent COVID-19
pandemic, they are changing on a daily basis.
The COVID-19 pandemic made us rethink the starting point
and strengths of KENKO Mayonnaise. Our Company Philosophy expresses our commitment to “Contributing to the world
by providing quality foods,” and “Body and Mind (mind/body/soul) and Environment,” and our Group Management Policy
stipulates that we aim to “become No.1 salad company,” and“provide the number one quality products / services in Japan.”
We have always pursued foods ranging from seasonings tosalads and “salad cuisine,” and the history and strength of theGroup are founded on the fact that we have always beenahead of the times in our ability to respond to different fields
and business categories, being one of the best in Japan interms of our ability to propose menu items and our accumulation of recipes. With this strength, we are committed to enriching the minds of our stakeholders and making sure that theyremain healthy physically. While keeping all employees awareof this, we have reaffirmed that it is our role in these difficult
times to strive for the sustainable expansion of our corporate
value.
In May 2021, the Group announced its Medium-Term Management Plan, the KENKO Transformation Plan (see page 13
for details). In order to create a bright future in the midst of
the drastically changing market environment triggered by the
COVID-19 pandemic, we decided to face the fiscal year ended
March 31, 2022 by revisiting the starting point of the Groupand organizing from scratch what we can do, what we will
grow, and what we can strengthen and reform.

Secured Sales Exceeding Those of the Fiscal Year Ended March 31, 2020 in the Fiscal Year Ended March 31, 2022
For the fiscal year ended March 31, 2022, on a consolidated
basis, we reported net sales of 75,647 million yen (up 10.4%
YoY), operating profit of 1,616 million yen (down 18.2% YoY),
ordinary profit of 1,622 million yen (down 20.9% YoY), andprofit attributable to owners of parent of 1,211 million yen(down 16.9% YoY).
It should be noted that net sales exceeded the level of fiscal
year ended March 31, 2020. This is due to the fact that some
sections of the food service industry have begun to see arecovery in the flow of people, as people have learned tocoexist with COVID-19. Although the situation remains unpredictable, we can say that the demand in the market is steadily
improving.

On the other hand, as the first year of the KENKO Transformation Plan, in addition to addressing demand for small-volume products and take-outs based on B to B to C, one of thethemes of the Medium-Term Management Plan, businesses
such as the Delicatessen-related Business, which captured thedemand for home meals as a new food style, significantly expanded sales and profits, driving the growth of the Groupoverall.
The recovery of the demand environment and the responseto new food styles have produced steady results, and we feelthat we have emerged from the turmoil caused by the COVID-19 and have a bright future ahead of us.

08Strategy

Message from Top Management

Meanwhile, profits were impacted by dry weather in North
America that led to reduced production of soybeans and rapeseed, the main raw materials for cooking oil, and a significant
cost increase due to some competition with biofuel applications that caused prices to skyrocket. Other factors that put
pressure on profits included soaring prices for various resources and the rapid increase in prices of commodities.
Because these raw materials and resource price hikes werebeyond the scope that could be absorbed by corporate
efforts, the Group implemented price revisions for products
including mayonnaise and dressings, sauces, processed egg
products, long-life salads, Japanese side dishes and otherfoods. Although conditions were difficult due to the COVID-19
pandemic, as a company with strength in our ability to propose menu items, we have been making proposals that serve
our customers to the best of our ability and responding tothem with care. This situation is continuing through the fiscal
year ending March 31, 2023. For this reason, we decided topostpone our announcement of earnings forecast for the fiscal
year ending March 31, 2023 at the beginning of the fiscal year,
and to instead announce our full-year earnings forecast in lightof the price revisions in July and December 2021, January andOctober 2022, and our performance in the first half of the fiscal
year.

KENKO Transformation Plan That Started During the COVID-19 Pandemic
The KENKO Transformation Plan, a Medium-Term Management Plan launched in April 2021, targets net sales of 80
billion yen and ordinary profit of 4 billion yen for the fiscal
year ending March 31, 2024 on a consolidated basis. It has
four key themes: “B to B to C,” “Innovation,” “Structural Reform,”and “Global Business.”
In “B to B to C,” we are implementing measures to increase
opportunities for consumers to get to know us directly. As acommercial manufacturer, we feel that we must not only provide assistance behind the scenes as a supporter, but also
strengthen our products and business to appeal to and be understood by both the industry and consumers. To this end wewill utilize the product development capabilities that the Grouphas cultivated, reduce the size of our commercial-use products
to smaller volumes, and renew the packaging of some products
to promote sales to consumers as well, thereby improving theGroup’s brand recognition. In this fiscal year, we sold the Noseru
Dake (simply add) series and the Senbiki (easy demarcation)
Sauce series, and received high acclaim for their ease of use andtheir ability to broaden the range of menu items.
Another major change that occurred during the COVID-19
pandemic has been the e-commerce site and online presence.
Although our products are for commercial use, we are now inan era where they can be delivered to homes. We have also
increased the number of products registered on our e-commerce site for purchase, and major e-commerce sites now
offer our products. Online, we are also engaged in the production and streaming of web-based videos introducing our09

Integrated Report 2022

products and menus. Kitchen Space 831, a cooking class previously held in the Cooking Lab at the Tokyo Headquarters, is
now held online and has been well received by participants
for the wealth of knowledge and skill of the instructors, as well
as for the recipes that only food professionals can provide. We
hope to make effective use of the assets we have accumulated
up until now, namely our ability to propose salad cuisine
menus and recipes, and to continue to serve as a catalyst for
consumers to become familiar with the Company.
In addition to existing menu item development, Salad Cafe
has supervised salads for major convenience stores andopened limited-time-only stores near train stations, in orderto make many customers aware of the appeal of Salad Cafe
products.
In “Innovation,” we hope customers wouldn’t focus toomuch on the conventional KENKO Mayonnaise. It would benice to see some ideas that are new and unconventional. In
addition to the development of products that propose the enjoyment of food and new food styles, we will also work on upcycling that convert discarded raw materials into new
products and ingredient-based products.
As part of our efforts to promote regional revitalization, we
will also focus on commercializing local cuisine. Each region ofJapan has unique eating styles for agricultural products thatare grown in the region. We will continue to develop products
while discovering these foods. Although salads are a food culture imported from outside Japan, we have a desire to share
Japanese food and local cuisines of Japan with the rest of theIntroduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Informationworld. We will continue to commercialize Japanese cuisine sothat we can offer them to the rest of the world.
Under “Structural Reform,” we will move forward with therestructuring of administrative divisions that form the foundation of the Group, the restructuring of our core systems,
and the reform of our personnel system. Until now, we haveprioritized capital investment in our factories, which are responsible for product development and manufacturing, andas a result, administrative divisions, including the headquarters, administrative core systems, and personnel system
reforms have taken a backseat. For this reason, we are proceeding with the establishment of these systems with theaim of starting operation in FY2024.
In the “Global Business,” we are working to strengthen export sales, particularly in North America and Asia, where wehave expanded up until now. Going forward, the contractionof the Japanese market will become apparent along with the
population decline. This means that we must also look to ex-pand overseas for us to achieve sustainable growth. Alongwith increasing the number of exporting countries and expanding sales in priority areas such as North America and Asia,
we will work to strengthen the foundation of our global business by acquiring and training personnel who will drive ouroverseas business.
The KENKO Transformation Plan is a Medium-Term Management Plan with the fiscal year ended March 31, 2022 as its firstyear. By steadily implementing these four themes, we are
creating new KENKO Mayonnaise value while restoring the
KENKO Mayonnaise of the past.

Rebuilding a Structure Suitable of a Company Listed on the Prime Market
The KENKO Transformation Plan also sets forth our Sustainability Policy and key issues to become a sustainable company.
The Sustainability Policy clearly defines our goals for the environment, society, and health, and we have also set greenhousegases, ingredients, container/packaging materials, health, andhuman resources as our key issues.
While we have given priority to promoting labor saving
through improving work efficiency and installing the latest
equipment, we must also proactively consider environmental
initiatives. Changes in the environment is something that will
have a significant impact on our business. We are seriously
considering and working on ways to create a sustainable society, such as how to effectively utilize potato peels and eggshells produced in the manufacturing process, and how torecover and utilize the heat produced during the productionof long-life salads.
To accelerate these sustainability efforts, we have established a dedicated department and expressed our support for
the United Nations Food Systems Summit 2021. We will continue to focus on initiatives aimed at achieving even higher
goals in the future.

In April 2022, we transitioned to the Prime Market of theTokyo Stock Exchange under its new market classification.
Since listing on JASDAQ in 1994, we have steadily transitioned
through the listing markets, each time establishing corporate
governance and compliance systems appropriate for a company in the relevant market. As with the other markets, there
were various criteria in this transition to the Prime Market, andwe will continue to pursue a system that not only meets thesecriteria but is also appropriate for a company listed on thePrime Market.
Currently, we are facing major challenges in the environment surrounding us, such as high raw material prices and the
COVID-19 pandemic, but we would like to overcome thesechallenges, rebuild, and show our stakeholders that KENKO
Mayonnaise is making a leap. We will continue on our path tobecoming an exciting KENKO Mayonnaise so that our stakeholders will once again come to see KENKO Mayonnaise as aninteresting company that is engaged in various activities. We
ask for your continued support.

10Strategy

Value Creation Process
Sensitive to the ever-changing market environment, the KENKO Mayonnaise Group is engaged in business activities with the goal of transforming itself
With the Medium-Term Management Plan as the major axis, we are executing activities for business expansion and value creation through an integrated

MarketbackgroundEscalating
globalenvironmental
issuesManagement resources

Production centers for safeand reliable products
Manufacturing
capitalSoaring pricesof rawmaterials
NaturalcapitalIncreasingenergy costs

Difficulty insustaining
agriculture(lack ofsuccessors)

Nationwide:
in-house

7 factories, Consolidated
subsidiaries 10 factories
Integrated production lines (Nishi-Nihon, Shizuoka Fujisan Factory)
Production lines for a wide variety of products“Contributing to t
“Body and Mind (Extensive procurement network
Cooperation with contract farmers
Support for sustainable agriculture
Development capabilities to create food markets

Intellectual
capitalMore than 23,000 menu items
Approximately 1,600 products
Responding to diverse needsdDevelopment of long-life salads

M

Leading the industry

Menu item proposal approach
Proposals that support customers

Diversifying
consumerneeds

Aiming to be a group of food professionals

HumancapitalFood safety
and reliability

Salad and Food Basics Examination
TAMAGO SPECIALIST (egg specialist)
Holders of certifications such as Readymade Meal certification or Food Specialist

Creating the future of food together
Decliningbirthrate andaging population
Expansion of
single-personhouseholds

Further social
advancementof women andthe elderly

11

Integrated Report 2022

D

Human resource development

Social andrelational capital

Distribution

our products are for commercial use
90% ofand our customers are food professionals

Education and research support activities

Administration

Financial foundation for value creation

Pr

Equity ratio 59.2%
Financial
capital

Froz
DelicatTokyo Stock Exchange Prime Market
Net sales 75,647 million yen
Ordinary profit 1,622 million yen (FY2021)

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

to enhance corporate value and achieve sustainable growth by utilizing the Group’s management resources.
management through organization, business, and field, and the sharing of information between these, while having their own strategy at each stage.

Business model

Value creation

Company Philosophy

he world by providing quality foods”(mind/body/soul) and Environment”

For the future of thefood and the body
Healthy and happy eating habits

Seasoning andProcessed
Foods
Providing enjoyment of cooking
and showing the potential andattractiveness of vegetables,
leading to an interest in foodIntegrated
approach

Salad
Cafe

Fresh
delicatessen

Medium-Term Management Plan
Providing products andmenu items that revitalize
the food market

Strategy by business

Salads andDelicatessen

Eggs
Mayonnaise andDressings

zentessenIngredients

Strategy by field

Overseas

Creating an environment inwhich both men and women,
regardless of gender or nationality,
can work comfortably and take on
new challenges<21 fields>
Purchasing

roduction

Quality
Menu item
development

Co r

Product
development

porateAchieving sustainable growthand profitability

Sales

Governance

Sustainability
12Strategy

Medium-Term Management Plan
The KENKO Mayonnaise Group launched a new Medium-Term Management Plan, the KENKO Transformation Plan, in FY2021.
Facing the challenges of a changing environment and society, we will continue our transformation to enhance corporate value
and achieve sustainable growth to meet the expectations of the market.

Basic Policy in the Medium-Term
Management Plan for FY2021 to FY2023

Company Philosophy
CSV “Creation of Shared Value”
Four Themes

Sustainability Policy

B to B to C

Innovation

Structural reform

Global business

Environment

Society

HealthGreenhouse gases Ingredients HealthContainer/packaging materials Human resources

Transformation for improving corporate value and achieving sustainable growth
B to B to C

Increase opportunities for consumers to get to know KENKO Mayonnaise firsthandProduct strategy

Sales strategy

Expansion and renewal of small-volume products
Long-life salads

118 products

Improve brand awarenessthrough design changes (37 of the
products underwent
design changes)

Sachets

30 products

Convenience fortake-out, etc.

MarketingStrengthen PR for

Increased exposure and word-of- Garlic Butter Sauce
mouth exposure contribute toincreased sales and recognition.

Salad Cafe
Creation of new
brand/Strategy forstores near train
stations

Opening of Chef’s DELI/
WaSaRa Shibuya
Scramble Square Branch

Utilization of the web and online
Noseru Dake (simply add) series

5 products

Simplicity and Products that support home cooking
reduced cooking
time

114 productsVideo production and streaming
For opportunities to promote
the attractiveness of products
and ingredients, and to let
people know about our factories
New sales promotion tool

Cooking class

Mayo sauce

5 products

Drawing the line
is easy

Futureinitiatives

13

Integrated Report 2022

Maximize our strengths of productappeal and menu item
development capabilities to createfans of the Company

Release offactory tour
video
Use of video tocommunicate
the appeal of
products andmenus
Vegetables (831*)x
nutritionx
professional taste* The number 831 is read as yasai in Japanese, which refers to vegetables.

KENKO Mayonnaise
e-commerce
websiteNet sales +8.3% (YoY)
About 400 products available for purchase

Development of small volume and room temperature products in demand Information brand strategies (use of social media)
Strengthen sachet products Development of value-added and functional products in response to soaring ingredient prices
Thoroughly strengthen area marketingIntroduction

Innovation

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Create a New KENKO based on awareness of environmental conservation

Product development
Plant-based foodUpcycled and ingredient-based products

Regional revitalization

Upcycled food products

Activities for regional revitalization

Increased utilization of raw materials(DIET COOK SHIRAOI Factory)

Attractive local ingredientsand technology

Utilizing the cabbage
scraps generated
during cut vegetableproduction as aningredient

Plant-based products
made mainly fromvegetable ingredients,
without dairy products,
eggs, or meat

Cole slaw made withcabbage cores

Minus Good and Plus Good products
Minus Good*1
Reduction of additives
Plus Good*2
Focus on ingredients
Nutritional enhancement
Sustainable

New ingredient-based products
Stable supply of quality ingredients
Simplicity, reduction of food loss and waste

Our product andmenu development capabilities
Nationwide sales and production centers
Revitalization of local
economies

The second round: Two menu
items are now on sale at the
Fish Market Okasei in Onagawa Town, Miyagi Prefecture!

FrozenMashedPotato Portion

Tuna Flakes
CL-500Luxurious! Two-color
salmon bowl (using Goku Uma Garlic
Soy Sauce and Ra-mayo (chili oil
flavored mayonnaise type) Sauce)

32 products launched*1 “Minus Good” means improving the value of a product by subtracting something from the product such as additives and other elements.
*2 “Plus Good” means improving the value of a product by adding something to the product such as focusing on ingredients and enhancing nutrition.

Futureinitiatives

Development of value-added products (plant-based foods, nutrition-added products) and research on vegetable functionality
Standardization of carton sizes and use of recycled nylon Introduction of DX (digital ledger management, collaborative robots, etc.)
Food loss and waste reduction and sustainability initiatives Promotion of regional revitalization Expansion of export-ready products

Structural reform

Implement reform to grow the core business

Global business

Personnel and improvement activities

Strengthen the foundation for our global business

Strengthen export sales

Business process improvement Productivity improvement
Comfortable work environment

Export products, mainly mayonnaise anddressings, to 49 countries Export net sales
and regions

Enhancement of childcare leave system and employment follow-up
Implementation of career training
Briefing sessions for young employees, etc.

Expand longshelf life
products forexportIncreased byfrom FY2020

Increase in average length of service of women, promotion to
management positions, development of executive candidates

Futureinitiatives

2020

Core system restructuring (to be operational in
FY2024) and security reform
Personnel system reform (to be operational in FY2024)
Cost reduction = increase in overall facility efficiency +increase in yield
Enhancement of governance, capital policy, anddisclosure contents

Goals for sustainability

30.6 %

3 countries

Futureinitiatives

FY2021 results

2021

(FY)

Increase in number of countries for exports andexpand sales in priority areas
Products for global use (exports, research information)
Acquisition of FSSC22000 certification at all factories
Enhancement of English disclosure

Goals for FY2023[Issues]

Actual CO2 reduction -2.7%

Reduction of greenhouse gases

Shift substitute refrigerants 91% completed

CFC substitutes Switching to substitute refrigerants

Use of sustainable
packaging materials

Shift to biomass ink
for outer mayonnaise packaging

Switching to lightweight packaging materials

Reduction of waste

to
8% reduction Group-wide compared
FY2019 intensities

Reduction of processing losses 5% FY2019 intensities

compared to
FY2019 intensities

Reduction of CO2 emissions -3% FY2019 intensities
compared tocompared to14Strategy

Strategy by Segment
Seasoning and Processed Foods BusinessNet sales (millions of yen)
60,13959,68959,093

Mayonnaise
and Dressings

51,611

Fiscal year ended March
31, 2022
Sales composition ratio

57,552

Other

76.1%

Processed Egg
Products

Salads andDelicatessen

FY2017FY2018FY2019FY2020

FY2021Business conditions
The recovery from the significant decline caused by the spread ofMain businesses

Mayonnaise and Dressings
Processed Egg Products(Atsuyaki tamago (thick omelets), kinshi tamago(narrowly stripped cooked eggs), egg salad, etc.)

COVID-19 in the previous fiscal year has progressed, and sales of all
product groups increased compared to the previous fiscal year. In
Salads and Delicatessen, sales increased due to a recovery in sales of amainstay product, potato salad in 1 kg package, to restaurants andother customers, as well as its adoption as a promotional item for fast
food. In Processed Egg Products, sales increased due to an increase inegg salad for major bread manufacturers and convenience stores, as

Salads and Delicatessen(Long-life salad using potato, burdock, tuna, etc.)well as the adoption of atsuyaki tamago (thick omelets) by restaurant
chains and convenience stores. In Mayonnaise and Dressings, sales increased due to the effect of the price revision of mayonnaise productsthat has been underway since July 2021, in addition to the response to
demand for small-volume products and take-out based on B to B to C,
one of the themes of the Medium-Term Management Plan.

Future initiatives
We will continue to develop products that respond to new lifestyles and lifestyle diversification, as well as small-volume,room-temperature products. In addition to the reduction of the size of existing products, we have been focusing on the development of new products. In June 2022, we launched our first pasta sauce series, Pasta Sauce Great with Vegetables, andour first canned product CANDISH®. We will leverage our accumulated product development capabilities to deliver productsthat meet the needs of a wide range of markets, not just products for commercial use.
In addition to raw materials, material prices, logistics costs, and energy costs continue to rise. We are unable to absorb suchcost increases by corporate efforts alone, and therefore have implemented another price revision in October 2022. We willcontinue to not only deliver products to our customers, but also develop value-added products and propose menu items
that the market demands, and together we will continue to boost the food market.

15

Integrated Report 2022

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Sales composition ratio (%)
By business
Other
Salads andDelicatessen

By sales channels

2.4

2.0

1.9

33.2

31.4

29.8

33.7

4.2
4.3
12.7

3.8
4.4
13.3

4.2
4.4
12.7

Restaurants

27.6

23.8

24.6

CVS

26.6

26.7

25.5

Mass retailers

24.6

28.0

28.6

FY2019FY2020

FY2021

Other
School lunches
Bread

33.5

Processed
Egg Products

33.8

Mayonnaise andDressings

30.5

32.9

34.8

FY2019FY2020

FY2021* CVS stands for convenience stores.

TO P I C S

The Noseru Dake (simply add) series
won the 52nd Food Industrial Technical Award in 2022
Our product, the Noseru Dake series, received the 52nd Food Industrial
Technical Award (Product and Technology Category) sponsored by Shokuhin
Sangyo Shimbunsha Co., Ltd. The award recognizes companies and organizations that have developed technologies and products that have contributed to the development of
the food industry. The Products and Technology Category selects companies, individuals, or organizations that have developed products or technologies that have contributed to the improvement of
dietary life and the development of the food industry through superior domestic technologies. The Noseru Dake series is a series of
convenient long-life pouched side dishes that can be easily prepared as a staple meal or main dish by simply putting them on rice,bread, salad, etc. Each package is a 160 g small-volume type that is easy to use up. In addition to the authentic taste of the seasonings and spices used, the product was selected for the award because of its simplicity and hygienic features that meet the growing
need to use up food when cooking at home or taking out, which has increased due to the COVID-19 pandemic, and its contribution
to the reduction of food loss and waste, a growing concern from the perspective of the SDGs.

Regional revitalization efforts
We are working on the product development of local cuisines that are enjoyed and cherished in regions unique to Japan, with thehope of bringing them to the rest of Japan and overseas. One such product is WASAI BANSAI®, a series of Japanese side dishes thatemphasize Japanese traditions and ingredients, with a total of 21 items on the market.
In addition, we would like to revitalize regional economies by leveraging our product, menu development capabilities andour nationwide sales and production bases with attractive local ingredients and know-how. In
cooperation with Senrei Co., Ltd., which engages in sales of fresh fish and manufacture andsales of fishery products in Onagawa Town, Miyagi Prefecture, and Kuriya Co., Ltd., which provides consulting services, we are currently developing products and menu items with the aimof revitalizing the local community. We will promote this initiative as a new community-based
initiative that will help resolve issues such as the shortage of labor force due to the outflow of
population and the decline in economic and social sustainability in rural areas.

16Strategy

Strategy by Segment
Comments FromBusiness Leaders
Mayonnaise and Dressings BusinessWe want to deliver our products popularamong businesses to a wider audience!
In this business, we focused on countermeasures in response to the COVID-19
pandemic and measures to cope with soaring raw material prices.
We are developing products for take-out demand and for ready-made mealand home meals. We launched sachets (20 g) of sauces from around the world to
be attached to lunchboxes or side dishes so that customers can enjoy tastechanges. In addition, from the viewpoint of food loss and waste reduction and to
make it easier for mass retailers and drugstores to handle, popular tastes are now available in 200 ml size. The launch of small-volume products has made it easier for general customers to purchase our products directly from us.
Regarding the sharp rise in the cost of raw materials, the price of cooking oil, in particular, has soared, forcing
us to revise the prices of mayonnaise and dressings that use oil. Because simply revising prices would only increase the burden on customers, we responded by developing a new Salad Creamy Dressing “fullness®” that possess processing aptitude and functionality.
Mayonnaise has now become a basic seasoning, and there are many types of dressings. As amanufacturer, we would like to develop sauces that serve as new basic seasonings and develop Mr. I
Sales Division
new markets.

Eggs Business

Product development to catch customer needs and convey the attractiveness of egg products
We developed Frozen Atsuyaki Tamago (thick omelets) 100 g, renewed our egg salad, and developed new
products with take-out demand in mind.
Until now, we have recommended thawing frozen atsuyaki tamago (thick omelets) in running water, but
we have focused on the problem of restaurants that do not have sinks or other facilities to thaw the omelets
in running water. To simplify operations, we are developing products using new packaging materials thatcan be defrosted and heated in a microwave oven.
For egg salad, we extended the expiration dates of two major products and reviewed the additives used.
We focused on improving the richness, flavor, and smoothness of the eggs, and repeated trial production
and tasting with project members. The Oishisa Tsuzuku (products to last tasty) series of boiled eggs, scrambled eggs, egg sheets, and other products with excellent preservation properties were designed to be safe andsecure for take-out use, and boiled eggs were developed in small volumes and with an emphasis on ease of use
in order to reduce waste.
In the future, we will develop microwavable egg dishes and expand our product lineup that reflects our commitment to eggs and can adapt to changes in the market. We will deliver egg products thatuse all raw egg materials without waste, with a view to effective utilization of eggshells.
Mr. M

User Sales Division

17

Integrated Report 2022

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Salads and Delicatessen Business

Reviewing expiration dates and volume, and creating products for overseas and 10 years into the future
We are working on extending the shelf life of our main products to reduce food loss and waste and for our
global strategy. The four small volume salads now use new packaging materials and have a shelf life of 60 days
from the date of manufacture to meet the demand of mass retailers and take-out customers. We are also working
on verifying other mainstay products with new specifications to deliver Japanese salads and side dishes overseas.
Two new products in the Noseru Dake (simply add) series were released, bringing the total to five. The convenienceof completing a dish by simply unsealing and placing the product on top, the novelty of the Asian menu items, and theuse of soybean meat were well regarded, and the Company was awarded the 52nd Food Industrial Technical Award.
For WASAI BANSAI®, which delivers Japanese food culture, we have launched a menu
item using seafood as a new ingredient. Although seafood is an ingredient whose quality
is difficult to maintain, after numerous quality checks, we were able to develop a few products and expand our product range. We will continue to discover and widely disseminate local cuisinesthat are popular in various regions.
Mr. S
We launched German Curry Potatoes, a product conceived by factory employees, as a new initiaSales Division
tive of the Company. We want to continue to launch products that leverage the particularities andstrengths that only production sites know.

Ingredients BusinessFrozen Delicatessen Business

Development and proposal of productsthat help create more spare time andreduce waste loss

We will devote ourselves to creating
hit products originating from the
Frozen Delicatessen Business!

In the ingredients business that launched in
FY2021, we explored the possibilities of commercializing
our main raw materials and otherproducts. The cut frozen pumpkins
and sweet potatoes launched thisfiscal year are cut into easy-to-use
sizes and heat-treated. They can be used without preprocessing,thus saving time in work, cooking, and production. With a shelf lifeof 730 or 1095 days from the date of manufacture in frozen condition, the products maintain stable quality throughout the year andcan be used for a long time, leading to a
reduction in waste loss.
Although our approach to theseproducts is unlike how we treat otherproducts, we will continue to focus ondeveloping products that take advantage of the quality of
Mr. K
the ingredients.
Purchasing Division

The Frozen Delicatessen Business is a business with great
potential for growth within the
Company. Having said that, we
believe it is necessary to seek
new ideas and approaches inpromoting product development of frozen
delicatessen products and frozen foods,
such as by leveraging our basic knowledge,
trends, distribution, and menu item proposals. We are working on product development by segmenting themain raw materials to be made into products, target customers,
etc., in detail. In July 2022, two items were newly developed—Gohan No Otomo: Frozen Matsumaezuke (dried squid, fish roe andseaweed marinated with spicy soy sauce) and Frozen SOUZAI(Japanese side dishes) Series: Hijiki Seaweed
and Bean Salad. The Frozen SOUZAI series
is designed for the elderly with a focus on
nutrition and texture. We will continue to
add value to our products by catching theneeds of the market and develop productswith an eye toward export
Mr. H
routes, taking advantage ofSales Division
their long shelf life.

18

Strategy

Strategy by Segment

Delicatessen-related BusinessNet sales (millions of yen)

Fiscal year ended
March 31, 2022
Sales composition
ratio

11,327

13,105

14,25016,057

17,23222.8%

FY2017Main businesses

Businesses conducted by consolidated subsidiaries in Japan
Manufacture of fresh side dishes (daily-delivery salads
and Japanese side dishes) and sales to mass retailers
Production of cooked processed foods and processed egg
products on consignment from KENKO Mayonnaise

TO P I C S

FY2018FY2019FY2020

FY2021Business conditions
The new factory at DIET COOK SHIRAOI Co., Ltd. andKanagawa Factory at KANTOH DIET COOK Co., Ltd., whichbegan operations in 2018, have seen steady growth in sales
and a significant improvement in profits, due in part to risingdemand for ready-made meals in the COVID-19 pandemic.
DIET COOK companies are sharing information on developed products and examples of successful developments aspart of their product strategy. We shared and commercialized
regional cuisines and best-selling menu items at each consolidated subsidiary. We also developed environmentally friendly
upcycled products and strengthened our efforts to enhance
our product appeal.

Development of upcycled products
The Group is developing upcycled products aspart of its SDGs initiatives.
The factor y at DIET
COOK SHIRAOI developed an upcycled product, Cole Slaw Made with
Cabbage Cores, which utilizes cabbage cores and scraps.
They were sold in the prepared foods section of supermarkets in the Hokkaido area.
Upcycling is the process of finding new value in items
that were previously discarded, scraps from the manufacturing process, or irregular products that don’t comply
with specifications, and reincarnating them by adding
value. We will continue to develop products that reducefood loss and waste and add value.

19

Integrated Report 2022

Future initiatives
We will continue to implement product strategies,
take on the challenge of expanding into new channels,
and develop human resources.
As a new initiative, together with the Japan Readymade Meal Association, we will conduct a demonstration test of a prepared food serving robot at KANTOHDIET COOK to promote automation of work processes.
By introducing robots to the most labor-intensive partof the prepared food production process, serving, we
aim to streamline the production site and solve theproblems faced by the prepared food industry.
(Japan Ready-made Meal Association participates as a partnercompany after being selected for a model demonstration project“Smart Food Industry Demonstration Project among the Agricultural, Forestry and Fishery Products and Food Products Export
Promotion Emergency Measures Projects” by the Ministry of Agriculture, Forestry and Fisheries of Japan)

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Other
Net sales (millions of yen)
1,292

Fiscal year ended
March 31, 2022
Sales composition
ratio

1,194

1,136
832

861

FY2020

FY2021

1.1%

FY2017Main businesses

Shop business (Salad Cafe) and overseas business** Overseas business is not included in net sales as they are an affiliate
accounted for by the equity method.

Salad Cafe Salad Cafe Keio Department Store Shinjuku openednewon November 22, 2022! It offers a selection of salads
locationand delicatessen items sold by weight, as well as
information boxed lunches, sandwiches, and appetizers.

TO P I C SSalad Cafe’s vegetable sweets brand
YASAI no OKASHIYASAI no OKASHI is a brand launched by Salad Cafe,
which specializes in salads, with the hope of delivering
health and healing by combining vegetables and sweets.
We opened a store in Keio Department Store Shinjuku in
February 2022, Takashimaya Shinjuku in May, and Kintetsu Department Store Main Store Abeno Harukas in Julyfor a limited period of time. Sweet potato sticks madefrom Kagoshima-grown Beni Haruka sweet potatoes andpound cakes made from pumpkin, tomato & cream
cheese, and chestnut & sweet potato were available atthe stores. By using vegetables, customers were able toenjoy pound cakes without feeling guilty about eating
sweets. We willcontinue to bringthe appeal ofvegetables to ourcustomers.

FY2018FY2019Business conditions
Salad Cafe opened its first two brands, Chef’s DELI and
WaSaRa Shibuya Scramble Square Store, in the Kanto area inMarch 2022. A new brand of vegetable-based sweets, YASAIno OKASHI also opened a stall at an event. As part of our information and branding strategy, we have launched theSalad Cafe app and an official LINE account, in addition to
our Twitter and Instagram accounts.
In our overseas business, we are quick to incorporate
overseas trends, share them with the Group, and utilize
them in product planning and development. In terms of
production, we are working on product development andequipment upgrades in order to make better proposals by
combining the Group’s know-how with the characteristics ofeach region and future trends.

Future initiatives
Salad Cafe not only sells salads in the food markets at
department stores, but will also consider a wide range ofother initiatives in the future, such as online development
utilizing know-how cultivated through store operations,sales of recipes, and sales floor development in train stations, creating all kinds of points of contact with customers.
In the overseas business, we will continue to develop
products and menu items that incorporate regional
characteristics and food trends and that can be communicated to local people and the rest of the world.

20

Sustainability

Sustainability of the KENKO Mayonnaise GroupThe KENKO Mayonnaise Group has established a Sustainability Policy for the environment, society, and health in order toachieve a sustainable society. We will meet the expectations of the changing times, take on the challenge of creating newvalue, and continue to grow together with society.

Sustainability Policy

Environment

Society

HealthTo become an environmentallyfriendly company

To bring happiness forstakeholders

For healthy lives

Carbon neutrality

Happiness of workers

To provide safe, reliable products

Recycling-based economy

Harmony with local communities
and society

To promote health-oriented
management

Creation of a sustainable society

Comment from staff in charge of sustainability
Committed to addressing social issues through business activities and working towarda sustainable society as a company that manufactures food products
We believe that the practice of our Company Philosophy, “Contributing to the world by providing quality foods” and “Body and Mind
(mind/body/soul) and Environment,” is what leads to sustainability,and based on this philosophy, we formulated our Sustainability Policy
in 2021.
We have identified greenhouse gases, ingredients, container/
packaging materials, health, and human resources as the five key
issues, and we recognize that global environmental protection
and climate change issues are particularly urgent.
The main raw materials of our Group are agricultural products. In addition to working to
reduce the environmental impact of our business activities, as a food manufacturer, we willleverage our product development capabilities to develop products that help reduce foodloss and waste and promote the use of raw materials that have a low environmental impact
and that are sustainable.
From September 2022, the packaging material for KENKO Restaurant taste Mayonnaise (500g) was switched to a film using
biomass ink. Biomass inks are inks manufactured using plant-derived resources as part of the raw materials. Not only does
biomass ink reduce the use of petroleum resources used for ordinary inks, but it also contributes to the reduction of CO 2
emissions through its carbon neutral concept, in which the plants used as raw materials absorb CO2 as they grow, so thateven if they are burned when disposed of, the overall amount of CO2, which causes global warming, does not increase.
Moreover, for products such as mayonnaise that are sold in individual packages, we will gradually eliminate the use of individual boxes for customers who wish to not use them. In addition to
reducing waste materials and CO2 emissions, it also improves production efficiency by decreasing
the number of man-hours required at production factories.
As a food manufacturer, the Group is committed to addressing social issues Mr. K
through its business activities and contributing to the realization of a sustainable Sustainability
society and the health and happiness of people.
Promotion Office21

Integrated Report 2022

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Five Key Issues
We will address the following five key issues based on the Sustainability Policy.
We will formulate goals for each of these key issues and promote activities in conjunction with the Sustainable Development Goals (SDGs).
Key issues
Greenhousegases

Theme of initiatives

Related SDGs

CO2 reduction/use of renewable energy/improvement of logistics
Responding to climate change is an urgent issue, and we have set greenhouse gas reduction
targets aimed for carbon neutrality. We will accelerate reduction measures not only at
production factories but also throughout the supply chain in order to reduce greenhouse gases.

Reduction of food loss and waste/sustainable sourcing of raw materials
We believe that the issue that must be solved with a greater sense of mission, as a food
manufacturer, is the reduction of food loss and waste. We will leverage our product development
capabilities to develop products that help reduce food loss and waste, and we will also promote
the use of raw materials that have a low environmental impact and lead to sustainability.

Ingredients

Reduction of plastic usage/promotion of 3R activities/selection of environmentallyfriendly materials

Container/
packagingmaterials

The elimination of plastics is an urgent issue in terms of ocean pollution and CO2 emissions during
combustion, and we have set a target to reduce the amount of plastic used. We will accelerate ourinitiatives to select environmentally friendly materials and reduce the amount of plastic used.

Development of value-added products (plant-based foods, nutritional appeals, foods for the elderly,etc.)/educational activities through food

HealthAiming to realize a healthy and sustainable society and dietary life, we will develop productsthat contribute to the health and health care of all people, using our products as a starting
point, and develop functional foods and health-oriented products that lead to good health.

Human resources

Improvement of work-life balance/respect for diversity/provision of learning
opportunities for employees
We will aim to improve the work-life balance of our employees, who are responsible for solving
sustainability-related issues, by responding to changes in working styles and lifestyles so thatthey can work with enthusiasm.

Targets
Issues

Initiatives

Numerical targets

CO2 reduction amount(compared to FY2019 intensities)

Target for FY2023-3%
Target for FY2030 -50%
Target for FY2050 -100%

CFC substitutes

Target for FY2023 Switching to substitute refrigerants
Target for FY2030 Elimination of R22 refrigerant
Target for FY2050 100% natural refrigerant

Reduction of greenhousegases

Sustainable use of
packaging
resources

Target for FY2023 Switching to lightweight packaging materials
Switching to lightweight packaging materials
Target for FY2030 Recycled materials 60%
Use of recyclable materials (all items)
Target for FY2050 Recycled materials 100%

Reduction of
waste

Reduction of processing losses(compared to FY2019 intensities)

Target for FY2023 -5%
Target for FY2030 -15%
Target for FY2050 -30%
* Targets will be reviewed in response to changes in the social environment.

Disclosures for TCFD (Task Force on Climate-related Financial Disclosures)
The Group is currently preparing for disclosures in line with the disclosure framework recommended by the TCFD.
Based on our Sustainability Policy, we have been reducing CO2 emissions and waste through various measures such as maintaining zero emissions at all Group factories, reviewing production processes, and improving energy efficiency.
Going forward, we will proactively disclose information while contributing to a sustainable society and enhancing our corporate
value.

22

Sustainability

Environmental Initiatives
As a food manufacturer that handles food as a blessing of nature, the KENKO Mayonnaise Group is also committed toenvironmental initiatives. We are working to promote the SDGs through initiatives that make use of by-products generated in
the process of making products, zero-emission activities, and reduction of food loss and waste.

Environmental management
To promote environmental management within the Group,
we have established the Environmental Management Measures
Committee in FY2010. The committee formulates environmental
targets and plans, monitors the status of environmental management, implements environmental conservation measures,and conducts zero emissions renewal reviews. In addition, each
Environmental Management Promotion Committee conducts
activities such as waste reduction, zero-emission and energysaving activities, compliance management of environmental
laws and regulations, and zero-emission internal audits.

Factory Environmental Management
Promotion Committee
Tokyo Headquarters Environmental
Management Promotion Committee

Environmental
Management
Measures Committee

Sales Office Environmental
Management Promotion Committee
Affiliates Environmental
Management Promotion Committee

Initiatives to reduce waste
Initiatives to convert waste to animal feed
In 2009, the Nishi-Nihon Factory, located in Maizuru City, Kyoto Prefecture, began a project to convert potato peels, molding residue, and other by-products generated in the potato salad manufacturing process into liquid feed at the factory and supply it to pig
farms as an environmental initiative. (Adopted by the Ministry of Agriculture, Forestry and Fisheries as the Promotional Activity of
Utilization of Recyclable Food Waste in FY2009)
Liquefied feed shipment
volume: 1,360 tons/year

Potato peels(FY2021 result)

Enzymetreatment

Potato peels, etc.
generated in the
manufacturing process

Feed manufacturing plantin the Nishi-Nihon Factory

Potato peels, etc., afterliquefaction process

2013

Received the 22nd Food Safety and Environmental Contribution Award (established by THE JAPAN FOOD JOURNAL Co., Ltd.)

2014

Received the 1st Food Industry Mottainai Award, Food Industry Affairs Bureau Director-General’s Award(Implemented by the Council for Promotion of Integrated Biomass Resource Utilization, part of a project subsidized by the Ministry of Agriculture, Forestry and Fisheries)

Compost business
Since 2018, the Kanagawa Factory at KANTOH DIET
COOK has been conducting primary fermentation ofvegetable scraps generated at the factory utilizing
food residue fermentation and decomposition
equipment. These scraps are composted at a recycling center and supplied to agricultural producers,
thereby realizing a recycling-oriented society using
the composting business.

Vegetable scraps,
which used to be anindustrial waste, are now
transformed into compost
and feed, and supplied toagricultural producers for use
in vegetable production,
creating a positive
food loop.

Organic
microorganisms

Factory

Food residue
fermentation anddecomposition equipment

Primary fermentation
treatment of vegetable scraps

ent
pm
Shi

Vegetables

Compostbusiness

Composting
Recycling company

Markets

Vegetable
production

Agricultural producers

23

Integrated Report 2022

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Initiatives to achieve zero waste emissions
We are implementing the 3R activities of “Reduce, Reuse, Recycle” to build a recycling-oriented society. Since FY2006, we have been engaged in 3R activities with the primary
focus on reduce (curbing generation), and we have started to curb waste generation by
improving processes, especially during production. As a result, we achieved a waste recycling rate of over 90% in FY2007 and zero emissions at all of our own factories in FY2008.
Once a year, we hold an in-house presentation on the status of zero-emission achievement
at each factory, and award certificates to the best factory and excelling factories. In FY2015,
consolidated subsidiaries also began zero emission initiatives, and from FY2020, all Groupfactories have achieved zero emissions.

Product provision initiatives
As part of our social contribution and food loss and waste reduction efforts, the Group donates products that are still safe toeat but are difficult to sell for various reasons, such as fractions generated when packing manufactured products into cases fordelivery, to various organizations, including Kid’s Cafeterias and local NPOs.
Factory

Donation recipients

Start of Donation weight/
initiatives month (FY2021)

Specified Nonprofit Organization Foodbank Kansai

Examples of donated products

2017

Approximately
80 kg

Sachets of mayonnaise, dressing,tartar sauce

Second Harvest Japan
Shizuoka
Japan’s first food bank that delivers food donated by food companies toFujisan Factory the poor, elderly, and others in need.

2015

Approximately
800 kgAtsuyaki tamago (thick omelets),dashimaki tamago (rolled egg)

Gotenba
Factory2021

Approximately
80 kg

FDF (pumpkin salad)2022

Approximately
10 kg

Burdock salad, pumpkin salad

2010

Approximately
100 kgJapanese side dishes (WASAI BANSAI®,
Bimi Hyakusai), yogurt fruit sauce, bean
salad, glass noodle salad, etc.

2022

Approximately
50 kg

Japanese side dishes (WASAI BANSAI®,
Bimi Hyakusai), refreshing glass noodle
salad, frozen minced meat, burdock
salad mayonnaise flavor, etc.

2021

Approximately
500 kgProvided products using colorful
ingredients such as potato salad

2021

Approximately
14 kg

Provided leftover ingredients from the
shop

2021

Approximately
20 kg

Provided leftover ingredients from theshop

Kobe Factory

Nishi-Nihon
Factory

KANTOH DIET
EGG Higashi
Murayama
Factory

KANTOH DIET
COOK
Tokorozawa
Factory
Salad Cafe
(Kansai)
Salad Cafe
(Kanto)An organization that distributes food donated by companies and otherorganizations to welfare facilities and organizations that support thosein need, free of charge.

Kid’s Cafeterias in Gotenba City and Oyama Town
(5 locations in total)
Specified Nonprofit Organization Machizukuri
Support ClubAn organization that serves as a networking center connecting citizens
and civic activity groups in Maizuru, and provides support for the
management and activities of civic activity groups.

Second Harvest Japan

Kid’s Cafeteria and other network in Higashi
Murayama City
(Higashi Murayama City Council of Social Welfare)
Saitama Kid’s Cafeteria Network
An organization that provides support for collaborations and exchanges
of information between Kids’ Cafeterias in Saitama Prefecture, sharing offood ingredients, and for those who want to set up cafeterias or
volunteer; collaborates with Saitama Prefecture (government); andcreates a map of Kid’s Cafeterias.

Happy Diner Ainowa
An organization that operates a cafeteria where children, parents, andgrandparents can communicate in Suita City, Osaka Prefecture, born outof a desire to create a place where people can be happy.

Suginami Ward Kid’s Cafeteria Network
A network of 18 Kid’s Cafeterias in Suginami Ward, which are connectedto each other to exchange information and circulate materials, with theaim of expanding the circle of support for children.

24Sustainability

Community and Social Initiatives
The KENKO Mayonnaise Group conducts support activities in the international community as well as interactions with thelocal communities where its headquarters and factories are located. We also focus on research activities in the field of
education and the development of human resources who can play an active role in the food market, for the sake of asustainable society.

Sponsoring regional events
As a manufacturer of food products for commercial use, although we have few opportunities to be known to the general public,
we value our interactions with the local community so that many people can learn about us and our products and support us.
In 2006, we began sponsorship activities mainly for events held in the area where our headquarters is located. After relocating
our headquarters in 2009, we continue to participate in events and offer our products mainly in Suginami Ward. Each of our offices,
factories, and consolidated subsidiaries also take part in local activities by sponsoring local events and providing our products. Currently, although opportunities for activities are decreasing due to the COVID-19 pandemic, we will continue to participate
in activities in the future.

Tokyo Headquarters
Suginami Charity Walk Bazaar at school for disabled children
Bazaar at nearby nursery school Suginami Festa
Koenji Festival Tokyo Koenji Awa-Odori
Donation to Suginami Ward Next Generation Development Fund
Bazaar at mother and child support facility
Sports festival on sports day, etc.

In-house factories/consolidated subsidiaries
Local events and festivals
Participation in local events

Contribution to international society
Support activities for the Japan Association for the World Food Programme
In September 2005, we became a supporting member of the Japan Association for the World Food Programme. WFP is the only food aid agency
within the United Nations, established in 1961 with the aim of eradicating
hunger and poverty, and the WFP Headquarters Japan Liaison Office wasestablished in 1996.
Fundraising for the Horn of Africa Campaign for Hunger Relief in 2006
Fundraising for the School Feeding Program Campaign in 2007
(for 4 years until 2010)
Emergency fundraising for Myanmar Cyclone and Sichuan Earthquake in
China
Donations and others for emergency relief for the Sahel drought in West
Africa in June 2012
Emergency fundraising for Philippine Typhoon
Emergency fundraising for Ebola
Participation in Walk the World, a charity organized by WFP

25

Integrated Report 2022

Japanese Organization for International
Cooperation in Family Planning
An international cooperation organization thatworks to protect the lives and health of pregnant
and nursing mothers and women around the world.
Annual donation of collected items (unsent
postcards, used Japanese postage stamps, foreign
coins and currency) since 2008

ChildFund Japan
An organization that supports impoverishedchildren in Asia.
Donated unsent postcards and unused stamps tothe Let’s Improve the Learning Environment forChildren in Nepal! campaign in 2016

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Education and research support activities
In line with our Company Philosophy, the Group is engaged in food-related research in cooperation with educational institutions.
Vegetables, seafood, and seaweed used in salads are particularly difficult to keep fresh, and their quality varies greatly depending on
the combination of ingredients and seasonings. We hope to enrich people’s dietary life by scientifically examining salads.

Establishment of the Salad Science (KENKO Mayonnaise) endowed courseat Tokyo University of Marine Science and Technology
Period October 2013 to March 2024
Contents Education and research is conducted
on various issues related to salads,
such as their preparation and processing characteristics, quality retention,and interaction with seasonings, aswell as on advanced technologies foraddressing issues related to salads.

Establishment of Bareisho Genetic Resources Development endowed
course at Obihiro University of Agriculture and Veterinary Medicine.
Period From April 2013
Contents Established jointly with five related organizations, including the Hokkaido Bareisho Association. In order to produce stable, sustainable, safe, and secure Bareisho
potatoes in the future, we are conducting educational and research activities
together with the Bareisho Genetic Resources Development Laboratory.

Comprehensive collaborative agreementwith Tokyo University of Agriculture
Period From August 2016
Contents The purpose of the agreement is to contribute tosolving food and environmental problems on a global
scale by developing activities that can contribute to
the revitalization of foodand related industries, andby developing international
cooperation activities
through support for fooddevelopment. Through thiscollaboration, we will also
strive to develop humanresources who can play anactive role in Japan andoverseas.

Salad Science Endowed Course interview available on the website
This website features interviews with Tokyo University of Marine Science and Technology’s
Salad Science Endowed Course on its past efforts, future prospects, and the future of salads.
This is a digest version of the interview.
The endowed course was established in 2013, and since 2018 it has been held by Specially
Appointed Professor Suzuki and Specially Appointed Assistant Professor Lee from Tokyo University of Marine Science and Technology. Professor Suzuki and Assistant Professor Lee have been Assistant Professor Lee and Professor
Suzukireexamining the question, “What is a salad?” and to clarify this question, they are researchingsalad from a variety of materials and perspectives. For example, they have examined the question of how potatoes change. Potatoes
have the property of becoming gelatinized when heated and then aging when cooled. As a potato ages, its digestibility changes andthe response from human ingestion changes. The changes in blood glucose levels when ingesting potatoes in various states are being
studied in real-time, utilizing the latest measuring devices that can measure blood glucose levels without drawing blood. Their scopeof research varies widely, and other research areas include ginger and salmon, as well as food smells and aromas.
Why research salads at the Tokyo University of Marine Science and Technology? It all started with refrigeration technology. The
know-how of refrigeration technology was not studied much in agriculture departments, and it was in the fishery industry, where
refrigeration technology was essential, that the know-how of handling under refrigeration and the reaction of microorganisms wasavailable. Refrigeration and freezing techniques are very important because even the slightest deterioration of vegetables is immediately apparent from their appearance, causing them to lose their commercial value.
Please click here for more information on the Salad
Professor Suzuki says he would like to systematically compile a book on
Science Endowed Course interview.
salads as “Saladology” in the future. We hope that you also have a look at
https://www.kenkomayo.co.jp/company/
the long interview with the professors, which contains the details of his reeffort/effort2/saladscience (in Japanese only)
search and the thoughts of the professors and our employees.

26Sustainability

Human Resource Development Initiatives
In order to respond to changes in the market environment and diversifying customer needs, it is necessary to further improve theinternal environment, develop human resources, and appoint diverse personnel to management and core positions to ensure avariety of perspectives, experience, and insight. We will promote the development of internal environments, teams and humanresources that comprehend and accept different values and cultures, create social value and generate innovation.

Initiatives for the active participation of women
We believe that promoting diversity in the appointment of human resources will lead to sustainable growth of the Company.
One of the major factors is the active participation of women, and we will promote the development and promotion of women to
management positions according to their motivation and abilities.
To enable our employees to achieve a balance between work and childcare, we are making efforts to enhance our childcare
leave system and employment follow-up. For example, we offer shorter working hours for mothers of elementary school students
up to fourth grade. Specifically, to provide opportunities to think about careers, we will conduct career training (to learn about one’s
strengths, utilize and develop them, and understand the significance of continuing to work), hold exchange meetings with senior
employees who have experienced marriage, childbirth, and childcare, and hold lectures by employees who can serve as role models for younger employees. To expand care for employees after marriage, maternity leave, childcare leave, and returning to work, wewill hold briefings for younger employees, issue guidebooks, expand the content and frequency of briefings and provide morecompany information during the period of childcare leave.
The rate of female managers was 15.2% as of the end ofPercentage of women in management positions
FY2021, and we aim to maintain this rate at or above the cur(%)
rent level in the future through the implementation of female
20
employee exchange meetings, career training programs, andthe introduction of a comeback employment system. At the
15.2
14.8
15
same time, we aim to increase the average length of service offemale employees from 8 years as of FY2021 to 10 years by
10.3
10.0
10
9.1
FY2026. While continuing to promote the development ofhighly motivated women and their promotion to management positions, we intend to increase the number of female
candidates for executive positions through means such as encouraging their participation in management developmenttraining programs.

5

0

2017

2018

2019

2020

2021
(End of fiscal year)

Promotion of mid-career hires to management positions
Mid-career hires accounted for 48.1% of all management
positions as of March 2021. In order to secure a variety ofperspectives, experience, and insight, we believe it is important to keep the rate of mid-career hires in management
positions above the current level, and we renewed the career
recruitment (mid-career recruitment) page on our corporatewebsite in October 2021. We will continue active recruitment
with a view to promoting mid-career hires to management positions.

Number of managers and rate of mid-career hires(Persons)
300

200

Number of mid-career hires in management positions
Number of new graduate hires who were promoted to
management positions after years of service

43.7

44.2

45.7

Rate of mid-career hires
in management positions

75

47.0

50

0

2017

Integrated Report 2022

48.1

25

100

0

27

(%)

2018

2019

2020

2021
(End of fiscal year)

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Recruitment of foreign nationals
We hire personnel regardless of nationality. Furthermore, there are currently two foreign nationals* in management positions
who have developed their careers at the Company and are succeeding in global business expansion, acceptance and training oftechnical intern trainees, and other areas. Toward further globalization, we hired two foreign nationals in FY2021 and one foreign
national in FY2022 as full-time employees. Because we are in the process of training candidates for future management positions,
we have not set a specific target for the number of foreign nationals in management positions at this time. We will continue active
recruitment, regardless of nationality, gender, age, or job category, seeking global ideas and knowledge. In addition, we will also
train our foreign national employees with a view to promoting them to management positions.
* Became naturalized citizens after joining the Company and now hold Japanese nationality.

Employment of people with disabilities
Under our Charter of Corporate Behavior, we aim to create acheerful and lively atmosphere in our workplaces, at which theemployees can demonstrate their individuality and creativity,
and we actively and continuously provide opportunities forour motivated employees with disabilities to play an active
part so that they can work confidently. Some of these employees are in management positions, active as our core personnel
and department managers.

Employment rate of people with disabilities(%)

Employment rate of people with disabilities at the Company
Statutory employment rate

3

2.5

2

2.82
2.45
2.2
2018

2.53
2.2
2019

2.45
2.2
2020

2.3
2021 (End of fiscal year)

Comment from staff in charge of human resources
We would like to provide a full training lineup and self-improvement opportunities through the use of online resources
Same as last year, face-to-face training was difficult in FY2021 due to COVID-19. We implemented the following three types of
online training web-based training, recorded streaming training, and live streaming training.
For web-based training, we worked to create content and systems that provide participants with satisfaction similar to that of faceto-face training, while minimizing the risk of infection. We asked participants to take online training courses that used to be conducted
face-to-face, such as training for new graduates, training for OJT trainers, follow-up training for new graduates, and career training foryoung employees in their third year with the Company. Because the training was conducted online, it was somewhat difficult to have
conversations in group work and communicate with each participant. However, it was a great opportunity for participants to interact
with their colleagues assigned to different locations, and it raised their motivation toward their work.
In the recorded streaming training, courses on how to read financial statements and intellectual property rights were conductedby in-house instructors this year as a review of basic knowledge as a member of society. More than 95% of participants were satisfied with the recorded streaming training, which allows them to learn at their convenience. It took time to prepare the videos, but
above all, we were happy to hear that participants were able to reconfirm their knowledge and learn new things. In the live streaming training, we implemented training to promote knowledge on labor-management for managers. The content of the pasttraining was broken down into smaller sessions, with shorter timeframes and multiple dates. We also streamed the recorded video subsequently for those who were unable to attend the live streaming, and were able to have most of the targeted employees
participate.
Going forward, we will focus on creating opportunities to interact
with people from various professions and locations, and on providing learning opportunities and reskilling in a variety of genres that
Ms. K
Ms. O
will encourage employees to voluntarily take on their own. In addiGeneral Affairs
General Affairs
tion we will create an environment that will also help them in
Headquarters
Headquarters
their self-improvement.

28

Sustainability

Education Through Food
At a time when learning opportunities for direct contact with food, such as factory tours, cooking classes for elementary school
children, and cooking lessons, are drastically decreasing, we are using the internet to deliver opportunities for people to become
interested in food as much as possible, and to learn about the joy and correct knowledge of cooking.
Through communication with people of all ages, we will nurture their health, mind, and body.

Release of factory tour video
While actual factory tours are not available as an extracurricular lesson, we have created a factory tour video for use in schoolclasses for elementary school students to familiarize them with the manufacturing process of the foods they eat every day.
The content of the video is designed to provide students with a fun way to learn how products are made at the factory throughquizzes. A study sheet is also available to deepen understanding along with the video.

Potato salad factory tour

Mayonnaise factory tour

Food education activities
Conducting food education events
While the COVID-19 pandemic caused the cancellation of events and making it
difficult to conduct food education activities at schools, we conducted a foodeducation event at the Saitama Kid’s Cafeteria Network in December 2021, when
the outbreak had temporarily calmed. The event included a mayonnaise-making
experience and viewing of a factory video of the mayonnaise-making process withquizzes. In November 2022, our employee in charge of product development, who
is a registered dietitian, gave a lecture on “Edible vegetable fats and oils“ for the volunteers of the Suginami Public Health Center’s Health Promotion Division, who arein charge of promoting food education. We will continue to monitor the situationand promote the implementation of events to encourage interest in food.
Release of cooking videos
During the period when school cooking classes were not available, we produced
cooking videos of dishes that could be easily prepared with ingredients available athome to let the children experience the joy of food-related activities. The videos aredesigned for parents and children to challenge themselves at home.
Examplesof thevideos29

Integrated Report 2022

Handmade mayonnaise and arranged sauces
Handmade potato salad and takoyaki-style potato salad
Easy pilaf and special rice balls with Garlic Butter Sauce
Let’s make potato salad pizza and KENKO style fruit salad!

Packaged side dishes factory tour

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Kitchen Space 831 cooking class
Cooking classes that have been held at our in-house kitchen space
Cooking Lab are now being held as online courses. This popular course isattended by approximately 1,000 participants per year (FY2021 results)
and introduces a variety of menu items each month with the keywords
vegetables × nutrition × professional taste. Under the supervision of aregistered dietitian, participants can learn about nutrition that is not only delicious to makebut also beneficial to the mind and body. We provide useful information on everyday
meals, such as the nutritional properties of ingredients and effective ways to eat them.

Instructed by employees in charge of menu
development for food professionals

Popular course on Street Academy (June 2022 results)
Ranking of
host organizations in Japan

1 st(Out of more than 240 organizations)

Garlic Butter Sauce - My Absolute Favorite!
Garibata Bisha-gake* The Best 5 Menu Items
CoursePopular Ajillo Sauce! 7 Great Dishes Using Spanish
Ajillo Sauce Course

Ranking of
popular courses in Japan
Cookingandgourmet4 th(Out of 3,020 courses)

The service of Street Academy, a learning market that connects people who want to teach and people who want tolearn, is used as a platform for notification and recruiting
for cooking classes.

https://www.street-academy.com/organizers/
kitchenspace831 (in Japanese only)* “Bisha-gake” means putting plenty of sauce on the foodComment from staff in charge of food education
We want to hold events using factory videos and online resources
to increase interest in food through food education.
COVID-19 caused the cancellation of events and the inability to conduct food education activities on a school-by-school basis,making it a difficult time for us to decide how we would conduct food education and what we would do about it. Because children
were not able to take social study tours such as factory tours, we felt that food education activities using a factory tour video introducing our factories would be effective. However, although there were good videos, we had not been able to link them to foodeducation due to a lack of experience in video PR.
Although we had been unable to conduct face-to-face activities, in December 2021, when the outbreak had temporarily calmed,
we visited the Saitama Kid’s Cafeteria Network. We held food education activities for children and their guardians in the Kid’s Cafeteria, including a mayonnaise-making class and viewing of a factory video of the mayonnaise-making process with quizzes. Although
it had been a while since this activity was held, the response was very positive, and it was a good experience for us to hear how
they felt about actually eating the homemade mayonnaise and see their reactions to the factory video.
We would like to continue to utilize this experience and the Company’s strengths to expand thescope of our activities in the future, including not only mayonnaise-making, but also food education related to potatoes and eggs, and workshops inspired by our cooking classes to encouragechildren to like vegetables even if they are not fond of them. We
intend to continue to enjoy these activities, while coming up with Ms. I
ideas for activities that can increase interest in food and the Com- Product Development Division(Member of CSR Committee)
pany’s products.

30

Corporate GovernanceCorporate GovernanceIn order to fulfill our social responsibility as a company and continue to be a trusted company, we believe that the basis ofcorporate governance is not only to comply with laws and regulations, but also to continue to improve and strengthen ourmanagement foundation.
We also aim to become a more open company by further establishing and thoroughly implementing a governance system
and increasing the transparency of our corporate activities through timely and appropriate information disclosure.

Corporate governance structure
Corporate governance structure diagram (as of October 31, 2022)

General Meeting of Shareholders
Appointment/dismissal

Nomination andRemuneration
Committee

ReportAccounting Auditor

ReportAuditsCoordination

AuditsSelection andsupervision
Coordination

ReportCoordination

Executive Committee
Instructions
and orders

Coordination
Division Liaison Committee

Consultation
Response

Internal Control Office
5 members

Instructions
and orders
Internal audits

Each department, division,
office, Group company

Instructions

Instructions and advice

Coordination

Instructions
and orders
Sustainability
Related
Promotion Management
OfficeCouncil31

Integrated Report 2022

CSR
Committee

Risk
Management
Committee

Compliance
Committee

EthicsCommittee

Internal Control
Evaluation
Committee

Advice and guidance

Coordination

Legal counsels, tax accountants, and other professionals

Instructions

President and Representative Director

Business execution

Response

Coordination

Internal control and risk management

Consultation

Coordination

Board of Corporate Auditors
3 Corporate Auditors(including 2 External Corporate Auditors)

AuditsBoard of Directors
9 Directors(including 3 External Directors)

Appointment/dismissal
Management and monitoring

Appointment/dismissal

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Outline of Board of Directors, Board of Corporate Auditors, and Nomination and Remuneration Committee
Board ofDirectors

Chair: President and Representative Director
Composition: 9 Directors and 3 Corporate
Auditors
Meetings held in FY2021: 13 times

Contents of the meetings: Regular Board of Directors meetings are held atleast once a month as a body for making decisions on important matterssuch as management policies and approval of financial statements, andextraordinary Board of Directors meetings are held as necessary.

Board ofCorporate
Auditors

Chair: Full-time Corporate Auditor
Composition: 3 Corporate Auditors
Meetings held in FY2021: 12 times

Contents of the meetings: In accordance with laws and regulations, theArticles of Incorporation, and the Board of Corporate Auditors Regulations,
the Board of Corporate Auditors meets once a month as a body to form
audit policy and audit opinions. In addition, it works closely with theInternal Control Office through information exchange.

Chair: External Director
Nomination
Composition: 3 External Directors (including
andcommittee chair),Remuneration
Representative Director, andCommittee
1 Director
Meetings held in FY2021: 7 times

Contents of the meetings: As an advisory body to the Board of Directors,
the committee reports on proposals to be submitted to the General
Meeting of Shareholders regarding the election and dismissal of Directors
and the individual remuneration of Directors.

Expertise and experience of Directors
The Group strives to ensure the balance and diversity of knowledge, experience, and abilities of the Board of Directors as a whole, after
identifying the skills required in light of the medium to long-term management approach and business strategy, as shown in the table below.
Skills matrix
Name

Legal affairs,
Corporate
Finance and compliance, andmanagement accounting risk management

Marketing

Production andtechnologicaldevelopment

Globalbusiness

Market trends
Sustainability of products and(ESG)
raw materials

Takashi Sumii
Yoichi Terajima
Manabu Kawakami
Masaki Enya
Kunikazu Shimamoto
Kenji Tachibana
Kazumi Sakuramoto[External]

Takeharu Imashiro[External]

Tomoko Mita
[External]

Expertise

Reasons for selecting the item
Leadership and decisiveness for steering an organization toward its goals are required in order to instill and communicate the
Corporate management
Company’s management vision and execution policies both internally and externally, and to increase its corporate value.
Expertise in the areas of finance and accounting is required in order to build a robust financial foundation that can support growth
Finance and accounting
strategies, and to execute precise capital policies.
Legal affairs, compliance,
Expertise in compliance and risk management skills for maintaining an awareness of crisis even during ordinary times andand risk management
preventing potential risks from materializing are required in order to ensure soundness and obtain trust from society.
Capabilities to accurately analyze markets, customers, products, and information are required in order to fulfill social roles
Marketingexpected of the Company amid an uncertain and complicatedly changing management environment.
Production andExpertise and experience in production technology and product development are required in order to further enhance its corporate
technological development value as a manufacturer.
Expertise and experience for actively and prominently approaching overseas markets are required in order to ensure the Group’s
Global businessongoing survival and development.
An attitude and expertise for always maintaining a long-term perspective and harmonizing with various environments both in andSustainability (ESG)
outside of the Company are required in order to advance the Sustainability Policy.
Market trends of products
Capabilities for ascertaining the market trends of product and raw materials in a timely manner are required in order to adapt to an
and raw materials
uncertain and constantly changing environment.

32Corporate GovernanceCorporate GovernanceEvaluations of the effectiveness of the Board of Directors
The Company conducts an effectiveness evaluation in the form of a questionnaire in order to enhance the effectiveness of theBoard of Directors. We aim to achieve sustained growth and increase corporate value over the medium to long term by striving to
improve the effectiveness of the Board of Directors and further strengthen corporate governance.
1. Details and methods of evaluation[Evaluation scope] All 13 Board of Directors meetings held from April 1, 2021 through March 31, 2022.
[Evaluators]
All 9 Directors and 4 Corporate Auditors[Evaluation method] The evaluation was based on a questionnaire with a maximum score of 5 points and an open-ended question for each
evaluation item in the major categories of “Composition of the Board of Directors,” “Operation of the Board of Directors,”and “Deliberations of the Board of Directors.”[Report on results] The results of the questionnaire are reported at the Board of Directors.

2. Summary of evaluation results
Composition of the Board of Directors
Although most of the respondents generally agreed that there were no problems, there was a shared recognition of issues related tothe election of Directors with management experience at other companies and ensuring diversity, based on the Corporate Governance
Code revised in June 2021.
Operation of the Board of Directors
The scores for all questions increased compared to the previous questionnaire, mainly due to the fact that advance briefings for Directors and Corporate Auditors have become a common practice, which has deepened the sharing of information by External Directors
and External Corporate Auditors on the agenda items. On the other hand, some respondents indicated that even more time should be
set aside for reading proposals in advance, depending on the content of the proposals.
Deliberations of the Board of Directors
While there were responses that both the quality and quantity of deliberations had improved from the previous fiscal year, there were
responses indicating that there were still room for improvement in both quality and quantity of deliberations for a Board of Directors of
a Prime Market company, and that there was a need for creative ways to stimulate more active discussions.

3. Issues and future initiatives
Based on the shared understanding of the issues identified through this effectiveness evaluation, we will take the following measures.
In terms of the composition of the Board of Directors, we will proceed with the selection of candidates with management experience at othercompanies for the General Meeting of Shareholders to be held in June 2023, and we will enhance the training of Directors and Corporate Auditors
more than ever to allow them to acquire and improve the skills necessary for our management strategy, with the cooperation of outside vendors.
We will further enhance the role of the advance briefings for the purpose of sharing information with external officers as the main
objective, and clarify the division of roles between the advance briefings and the Board of Directors meetings by identifying concerns
and revisions in advance, so that each person can clarify the issues to be discussed before the Board of Directors meetings.
The Company will enhance its deliberations on issues to be supervised by the Board of Directors in accordance with the Corporate
Governance Code.

Policy on remuneration for officers
Remuneration, etc., for Directors and Corporate Auditors for the fiscal year under review
The Company’s basic policy on remuneration for Directors and Corporate Auditors is resolved by the Board of Directors.
Because the Nomination and Remuneration Committee, which is an advisory body to the Board of Directors, reports to theBoard of Directors after confirming the consistency of the content of remuneration, etc., for each individual Director with thedecision-making policy, the Board of Directors also respects such report and determines that the content of remuneration foreach individual Director is in line with the decision-making policy.

33

Integrated Report 2022

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Policy for determining the amount or calculation method of remuneration, etc. (excluding performance-linked
remuneration, etc., or non-monetary remuneration, etc.)
With respect to fixed remuneration, the Nomination and Remuneration Committee determines the amount to be paid in accordance with factors such as the Director’s position and responsibilities, and reports the amount to the Board of Directors. Only fixed
remuneration is paid for External Directors.
Policy regarding the details of performance indicator related to performance-linked remuneration, etc.,
and the determination of the calculation method of the amount or numerical number
Performance-linked remuneration is calculated by the Nomination and Remuneration Committee based on the percentage ofachievement against targets for consolidated operating profit, consolidated ordinary profit, etc., for each fiscal year, and is reported
to the Board of Directors. The Board of Directors respects the report, makes a resolution, and pays the amount.
Calculation method of performance-linked remuneration for the 65th fiscal year (for Directors excluding External Directors)
1. The performance indicator to be evaluated shall be consolidated ordinary profit at the end of the fiscal year in order to raiseawareness of performance improvements.
2. Performance-linked remuneration shall be paid when actual results exceed the announced consolidated ordinary profit.
3. The total amount of performance-linked remuneration shall be calculated by multiplying the amount exceeding the announced
consolidated ordinary profit by a certain coefficient determined by the Nomination and Remuneration Committee.
However, such coefficient shall be less than the dividend payout ratio.
4. The performance-linked remuneration for each eligible Director shall be paid by allocating the total amount calculated in 3. aboveby the ratio of the monthly base remuneration.

Policy regarding the details of non-monetary remuneration, etc., and the determination of the amount or numericalnumber or the method of calculation
For the purpose of providing incentives to pursue sustained improvement of the Company’s corporate value, and to encourage further sharing of value between our Directors and shareholders, the Company has a remuneration system to grant restricted stock.
The total number of shares of the Company’s common stock to be granted to eligible Directors shall not exceed 30,000 shares per
year. The specific allocation will be deliberated by the Nomination and Remuneration Committee in the future.
Policy for determining the ratio of the amount of remuneration, etc., in items to to the amount of remuneration,etc., for each individual Director
The ratio of fixed remuneration and performance-linked remuneration is determined by the Nomination and Remuneration Committee based on factors such as the Director’s position and responsibilities, and reported to the Board of Directors. Note that only
fixed remuneration is paid for External Directors.
Policy for determining the timing or conditions for granting remuneration, etc.
Fixed remuneration is monthly fixed monetary remuneration. Fixed remuneration is determined by the Nomination and Remuneration Committee based on factors such as the Director’s position and responsibilities, and reported to the Board of Directors. The
Board of Directors respects the report and makes a resolution. Performance-linked remuneration is determined by the Nomination
and Remuneration Committee after the end of the fiscal year, taking into consideration consolidated operating profit, consolidated
ordinary profit, etc., as of the fiscal year ending March 31 of the same year, and is reported to the Board of Directors. The Board of
Directors respects the report and makes a resolution, and pays the remuneration in cash once a year after the conclusion of theGeneral Meeting of Shareholders. Only fixed remuneration is paid for External Directors.
Matters concerning delegation of authority to determine the details of remuneration, etc., for each individual Director
The decision of the details of remuneration, etc., to be paid to each individual Director shall be delegated to each Director, etc., whoconstitutes the Nomination and Remuneration Committee, and each Director, etc., who constitutes the Nomination and Remuneration
Committee determines the details based on the Company’s business performance, etc., and in accordance with factors such as the position and responsibilities of each Director within the total amount of remuneration, etc., resolved at the General Meeting of Shareholders.
The Nomination and Remuneration Committee consists of 5 members: 3 External Directors (including the committee chair), 1 President
and Representative Director, and 1 Director. The reason for delegating the determination of the details of individual Director remuneration is to incorporate the appropriate involvement and advice of External Directors and to ensure transparency in deliberations.
Amount of remuneration, etc. for Directors and Corporate Auditors
Officer category
Directors(of which External Directors)
Corporate Auditors(of which External Corporate Auditors)

Total remuneration, etc.
(million yen)

Total remuneration, etc. by type (million yen)
Base remuneration Performance-linked
remuneration, etc.

Number of eligible officers(persons)

231 (14)207 (14)23 (---)

12 (3)

29 (21)29 (21)--- (---)

4 (3)(Notes) 1. At the 49th Ordinary General Meeting of Shareholders held on June 29, 2006, the remuneration for Directors of the Company, excluding employee salaries, wasapproved at a maximum of 300 million yen per annum. The number of Directors as of the conclusion of the Ordinary General Meeting of Shareholders was 9.
2. At the 49th Ordinary General Meeting of Shareholders held on June 29, 2006, the remuneration for Corporate Auditors of the Company was approved at a maximum of 50 million yen per annum. The number of Corporate Auditors as of the conclusion of the Ordinary General Meeting of Shareholders was 4.
3. The above payment amount includes 45 million yen (45 million yen for Directors and - million yen for Corporate Auditors), which was recorded as provision for
retirement benefits for directors (and other officers) in the current fiscal year. With regard to retirement benefits, a resolution has been adopted to abolish such
benefits at the conclusion of the 64th Ordinary General Meeting of Shareholders held on June 24, 2021.

34

Corporate GovernanceCompliance
The basic approach of the Group’s compliance is not only to comply with laws, regulations, and internal rules,
but also to faithfully meet the expectations of society based on our Company Philosophy,“Contributing to the world by providing quality foods,” “Body and Mind (mind/body/soul) and Environment.”

Compliance structure
The Group has established a Compliance Committee and an Ethics

Compliance structure diagram

Committee as a structure to promote compliance. The Compliance
Committee is responsible for preventing misconduct within the Com-

Board of Directors

Board of Corporate
Auditors

Compliance
Committee

Ethics Committeepany in accordance with the Compliance Committee Regulations.
The Ethics Committee has established a whistleblowing hotline inaccordance with the Ethics Committee Regulations.
The Compliance Committee and the Ethics Committee are eachchaired by a Director and convened by summoning at least one Corporate Auditor. The Company will request a Compliance Committee
meeting to be held for cases of serious compliance violations thathave been consulted with or reported to the Ethics Committee. The
Compliance Committee works with the Ethics Committee to promptly
resolve problems and take measures to prevent recurrence.

Group employees

Compliance activities
Holding of Compliance Committee meetings
In principle, the Compliance Committee meets 4 times a year in accordance with the Compliance Committee Regulations. It is responsible for compliance-related awareness-raising activities, formulation of activity policies and plans, reporting on current
conditions, and deliberation of requests and pending issues.
Spreading the Company Philosophy to Directors, Corporate Auditors, and employees
We have published a Group Charter which contains our Company Philosophy, Charter of Corporate Behavior, Code of Conduct,whistleblowing hotline, and mental health consultation hotline. The Group Charter is distributed to Directors, Corporate Auditors,
and all employees, and its contents are explained at the training session for new employees.
Posting case studies related to operations
In addition to laws, regulations, and internal rules related to our business, we also post case studies of compliance issues related torelationships among employees and with business partners on our internal information website to alert employees to complianceissues.
Implementation of compliance training
We conduct training by year and by job level. In addition to this, we conduct e-learning training for the acquisition of knowledge
on food-related laws and regulations and to raise awareness of various types of harassment.
Internal audits to check for compliance violations
Internal audits are conducted by the Internal Control Office at each division and Group company to check for deviations from laws,
regulations, and internal rules. The results are reported by the General Manager of the Internal Control Office to the President andRepresentative Director, as well as to the Directors and Corporate Auditors.
Operation of internal reporting system
The Group has established a whistleblowing hotline to receive consultations on harassment and compliance issues. Two consultation hotlines have been established: an Ethics Committee hotline and an external consultation hotline provided by an external
attorney, and consultations can be made anonymously.

35

Integrated Report 2022

Introduction

Strategy

Risk management

Sustainability

Corporate Governance

Performance andCorporate Information

Please click here for more information on major risks.
https://www.kenkomayo.co.jp/ir/policy/risk (in Japanese only)

The Group considers risk management to be an important foundation for maintaining sound corporate governance andimplements appropriate responses to all types of risks. In terms of crisis management, we strive to develop and maintaina system to establish BCP so that we can minimize the impact on our core business operations and ensure business continuity
and early recovery.

Risk management structure
In accordance with the Risk Management Regulations,

Risk management structure diagramrisk management is promoted mainly by the Risk Manage-

Board of Directors of KENKO Mayonnaise

ment Committee, which is composed of the heads ofdepartments and Directors who are responsible for major

Risk Management Committee(risk determination and company-wide management)risks to the Group. The chair of the Risk Management Committee is appointed by the President and Representative

Each department and Group company

Director. The activities of the Risk Management Committee(implementation of countermeasures)are regularly reported to the Board of Directors.
Major risks
Risk factors in the Group’s business and matters that
may have a significant impact on investors’ decisions aredescribed on the right.

Major
risks

Business environment
Fluctuations in purchase prices of raw materials, etc.
Product safety Outsourcing of logistics
Information systems Fluctuations in monetary situation
Impairment of fixed assets Labor
Medium-Term Management Plan Climate change

Risk management promotion activities
Media training
In our Company, the Risk Management Committee plays a central role in conducting
media training (simulated press conference training) that simulates a crisis response in
the event of a crisis.
BCP (business continuity planning)
The production functions of the Group are located throughout Japan. In anticipationof major damage from a large-scale earthquake or other natural disaster, each Group
company has formulated a BCP, and the entire Group is working to ensure a stablesupply of products and services to customers even in the event of a disaster.

Media training

Raising employee security awareness and providing a safe work environment
As a risk countermeasure against recent virus e-mails, we conduct targeted e-mail training to improve IT literacy within the
Company. By increasing the level of training content and sending training e-mails multiple times a year, we feel that our knowledgeof virus e-mails has increased.
For security measures, we have installed asset and log management software. When an incident occurs, thelog management makes it possible to accurately assess the situation, enabling employees to perform their workin a safer environment than ever before. We also feel that improving internal IT literacy and thorough asset andlog management enables us to do business with our customers with peace of mind.
Currently, we have installed EDR (Endpoint Detection and Respond) and next- Mr. Y
generation antivirus software, including a twenty-four hours a day, seven days a Information Systems
week monitoring system by an external organization, and we will continue to fur- Division
ther improve security.

36

Corporate Governance

List of Officers

Takashi Sumii

Manabu Kawakami

Kunikazu Shimamoto

President and Representative Director

Director
Responsible for Related Business Division and Product Division

Director
Responsible for Product Development Division

November1992 Joined the Company
April 2021 Executive Officer and General Manager, Salad Cafe/
Delicatessen Business Division of the Company
June 2021 Director of the Company (current position)

April 1988 Joined the Company
April 2021 Executive Officer and General Manager, ProductDevelopment Division of the Company
June 2021 Director of the Company (current position)

June 1978 Joined the Company
June 1999 Director of the Company
June 2000 President and Representative Director of
the Company (current position)

Yoichi Terajima

Masaki Enya

Kenji Tachibana

Director and Executive Vice President
Responsible for Production Unit and Quality Assurance Division

Director
Responsible for Sales Unit, Purchasing Division, and Logistics Division

Director
Responsible for Corporate Planning Division,
Overseas Business Division, and Administrative Unit

April 1983 Joined the Company
April 2021 Director and Senior Executive Officer of
the Company
June 2021 Director and Executive Vice President of
the Company (current position)

37

Integrated Report 2022

April 1989 Joined the Company
April 2021 Executive Officer and General Manager,
User Sales Division of the Company
June 2021 Director of the Company (current position)

April 1990 Joined the Company
July 2020 General Manager, Gotenba Factory of the Company
June 2021 Director of the Company (current position)

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

In order to prevent COVID-19 infection,
masks were removed only when taking the photograph.

Kazumi Sakuramoto

Tomoko Mita

External Director

External Director

February 2002 Professor, the Faculty of Fisheries of Tokyo
University of Fisheries (now Tokyo University ofMarine Science and Technology)
April 2018 Professor Emeritus of Tokyo University of Marine
Science and Technology (current position)
June 2019 External Director of the Company (current position)

April 1982 Joined the Tokyo Regional Taxation Bureau
October 2017 Established the Tomoko Mita Tax
Accountant Office (current position)
June 2019 External Director of the Company (current position)

Takeharu Imashiro

Akihiko Watanabe

External Director

Full-Time Corporate Auditor

April 1983 Joined the Ministry of Agriculture,
Forestry and Fisheries
January 2018 Advisor of Tokio Marine & Nichido Fire
Insurance Co., Ltd. (current position)
June 2019 External Director of the Company (current position)

April 1982 Joined the Company
April 2017 Executive Officer and Acting General
Manager, Human Resources & Labor
Relations Division of the Company
June 2020 Full-Time Corporate Auditor of theCompany (current position)

Noriki Kanda
External Corporate Auditor
January 2016 Corporate Auditor of AOHATA Corporation
April 2020 Counselor of the Company
June 2020 External Corporate Auditor of theCompany (current position)

Masato Tajima
External Corporate Auditor
April 2018 Director and Senior Managing Executive
Officer, Director of Home Use Frozen
Foods Unit of Maruha Nichiro Corporation
July 2019 Counselor of the Company
June 2020 External Corporate Auditor of theCompany (current position)

38

Corporate GovernanceDialogue With
the President and an External Director
Toward enhancing corporate value

Sharing issues in the agenda explanationin advance enables rich discussions
on enhancing corporate value

Takashi Sumii
President andRepresentative Director

39

Integrated Report 2022

Takeharu Imashiro
External Director(Independent officer)

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

The unchanged impression of KENKO Mayonnaise
since appointment
Imashiro: I joined the Ministry of Agriculture, Forestry andimpression of the Company as a growing food company that

Fisheries in 1983, and have been involved in operations aimed

produces healthy food products, mainly vegetables, has not

at ensuring the stable production of agricultural and foodchanged at all. However, because I took office in June 2019, a

products exposed to risks in the natural and economic envi-

series of events have since occurred continuously that haveronment, and the stable supply of these products as safe andradically changed the business environment, from the spreaddelicious foods that consumers demand. Although I was in-of the COVID-19 to soaring grain and energy prices, as well as

volved with food companies, my encounter with the Company

the conflict in Ukraine. We suddenly went from normal times

was because President Sumii was my mentor from my home-

to an emergency, and I realized from the inside how difficult it

town.

is to manage a corporate crisis.

Sumii: That is correct. I approached you in the fall of 2018.

Sumii: It is indeed. But even during such times, Director

You were in the Ministry of Agriculture, Forestry and Fisheries

Imashiro was able to provide us with coherent insights andand had a deep knowledge of the food industry. I remember

opinions in various important situations based on his wealthhow grateful I was for the opportunity to have someone withof knowledge from his extensive experience at government

so much experience as an External Director.

agencies. I was very happy to have Mr. Imashiro as an External

Imashiro: I remember how excited I was when President

Director in these circumstances.

Sumii approached me. Before and since my appointment, my

Expectations for advice from a broad perspective on
how a company should be
Sumii: What I expected from Director Imashiro upon assum-

Company and pointing out any possible insufficiencies in ad-

ing the position was advice from the perspective of what hevance, I believe, is my most important role.

would think from the viewpoint of shareholders.

Sumii: Thank you very much. I was also hoping for advice

Imashiro: I believe that the role of an External Director is tofrom a broad perspective of how a company should be. It

point out when a company’s policies and strategies are not in

would be very difficult if we are not on the same page regard-line with the way the world, including shareholders, think anding this point. In the midst of a drastically changing businesssee things. As a government worker, I have spent many years

environment, although it is easy to get caught up with internal

in an environment where compliance with laws, regulations,circumstances, I am very grateful for the advice you gave us,

and the Articles of Incorporation was taken for granted. Mak-

which reminded us to change course each time.

ing sure that such compliance is thorough within the40

Corporate GovernanceDialogue With the President and an External Director

Advance briefings for agenda items tofully understand internal issues
Sumii: How is our Board of Directors?

Imashiro: Additionally, I don’t see the advance briefings

Imashiro: All three External Directors attended all 13 Board

becoming a place for establishing the foundation for theof Directors meetings held in FY2021. We received materials inagenda’s approval. There were times when we, the External

advance of the meetings, studied them carefully before the

Directors, would modify the content on the spot. Then, after

sessions, and had an advance briefing on the agenda.

sharing the issues, we will go to the Board of Directors meet-

I believe that the Company has established an environment ining. We often had lively discussions at these times.

which External Directors can freely express their opinions on

Sumii: Because you have an understanding of the issues

the management of the Company.

within the Company, discussions at the Board of Directors

Sumii: The advance briefings also serve to educate Directors

meetings are more engaging and we can use our time morewith short terms of office and administration staff of the Board

efficiently. Furthermore, we can benefit from the experienceof Directors. It offers them the opportunity to learn how to ex-

and insight of the External Directors to receive in-depth sug-plain things clearly and to make sure that External Directors

gestions and advice that are not superficial. The countenances

are properly informed about the problems facing the Compa-

of our Internal Directors and administration staff of the Board

ny. I believe this is important for both parties.

of Directors have also changed.

Committed to preserving the global environment
as a food manufacturer
Imashiro: The Company also has a firm policy on sustain-

emissions and use of CFC substitutes, we are also addressing

ability. In addition to reducing greenhouse gases, such as CO2

the issue of food loss and waste, which has a significant effecton food companies. Furthermore, we are working to reduce
the amount of plastic in containers and packaging materials,
and many of our products are health-conscious. (See page 22
for details)
Sumii: With regard to factories, the question of how to use
residual materials effectively has been brought up. Residuals
are something that is always generated in the production process. However, in order to make sure that as few components
as possible are disposed of, we must consider this issue. Moreover, in terms of food loss and waste, although there are times
when products must be discarded for various reasons, we are
now beginning to establish a system to work together as aGroup to reuse them or provide them to those who needthem.
Imashiro: As a food manufacturer, food loss and waste is
not only about reducing loss, but also to make the most of the

41

Profilefood loss and waste that is produced in the manufacturing

Sumii has served at his current post since June 2000.
Born in August 1953. Graduated from Tokyo University of Fisheries(now Tokyo University of Marine Science and Technology).
Born in Kagawa Prefecture.

process. I think the efforts to develop upcycled products andIntegrated Report 2022

utilize them as fertilizer and eco-feed is a great idea. Livestockrelated feed is often imported, so it would be great if it could

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

be produced domestically. It is very valuable to see food com-

circulation cycle. I hope that you will continue to actively pro-panies and livestock farmers working well together to create amote this effort. (See page 23 for details)

Aiming for an evolved governance structure to berecognized as a global company
Sumii: What challenges do you see in the Company’s corporate governance structure?
Imashiro: As a corporate structure, each committee such as
the compliance, internal control evaluation, risk management,
ethics, functions as an organized body, with input from the
Corporate Auditors. The Nomination and Remuneration Committee is also making headway in substantive discussions
about remuneration standard and the characteristics that officers must possess. Are there any challenges that President
Sumii feels need to be addressed?
Sumii: We are proud of our advanced product and menu
item development capabilities, as well as our sales capabilities,
including menu item proposals and exhibitions. Although wehave been focusing on the construction of new factories andtheir facilities, I feel there is still room for improvement in theadministrative divisions within the headquarters, such as thecore system and the personnel system. We need to makechanges according to changes in the world.
Imashiro: In some areas, I feel that the way we do things is
becoming dependent on particular individuals. I think it would
be better to fundamentally change the personnel system soProfileImashiro has served at his current post since June 2019. Joined
the Ministry of Agriculture, Forestry and Fisheries in 1983.
After serving as Director-General of the Agricultural Production
Bureau and Director-General of the Food Safety and Consumer
Affairs Bureau, he retired in July 2017.
Born in February 1960. Graduated from the Faculty of Law,
the University of Tokyo. Born in Kagawa Prefecture.

that people can see their own future selves and career path.
I think that if you make your career image and the satisfaction

pandemic. I believe that our governance structure is well bal-

you get from your work more specific, changes can be made,anced between the weft of organizational work and the warp

and I want employees to proceed toward that goal.

of the President’s leadership. I’m looking forward to seeing

Sumii: I feel that we also need various systems to be put in

how this will evolve in the future.

place to promote diversity. Although we are improving theSumii: For such evolution to happen, the suggestions andworking environment, and adopting shortened working hours

feedback of the External Directors are indispensable. I ask forand childcare leave systems, women’s sensibility is essential foryour continued support.

product development at a food company, and so we will continue to take steps to create a comfor table work ing
environment. Furthermore, in order to develop as a global
company, we need to create a company that people overseas
find attractive as well.
Imashiro: I was also impressed by President Sumii’s outstanding leadership in navigating through the unprecedentedchanges in the business environment, including the COVID-19

42

Performance and Corporate Information

Financial and Non-financial Highlights
Financial highlights (consolidated)Accounting period (fiscal year)

2012

2013

2014

2015

Profit and loss
Net sales(Millions of yen)

54,53357,30160,327

66,933Gross profit(Millions of yen)

14,904

14,77015,71817,244

Operating profit(Millions of yen)

2,778

2,428

3,001

3,436

Ordinary profit(Millions of yen)

2,574

2,258

2,776

3,426

4.7

3.9

4.6

5.1

1,409

1,265

1,642

2,085

Ordinary profit margin(%)

Profit attributable to owners of parent (Millions of yen)
Financial position
Total assets(Millions of yen)

33,99839,68639,44842,306

Interest-bearing debt

(Millions of yen)

5,526

9,943

8,584

7,617

Net assets(Millions of yen)

14,801

15,81017,967

19,311Equity ratio

(%)

43.5

39.8

45.5

45.6

Cash flows from operating activities (A)(Millions of yen)

2,822

1,265

3,859

4,270

Cash flows from investing activities (B)(Millions of yen)

(2,003)(4,853)(3,496)(458)

Cash flows from financing activities(Millions of yen)

1,082

1,552

530

(1,177)

Free cash flows (A+B)(Millions of yen)819

(3,588)

363

3,812

Cash and cash equivalents at end of period(Millions of yen)

5,919

3,884

4,778

7,412

Capital expenditure(Millions of yen)

664

6,424

766

1,769

Depreciation(Millions of yen)

960

1,004

1,421

1,508

Research and development expenses(Millions of yen)

446

456

477

518

Return on equity (ROE)

(%)

10.0

8.3

9.6

11.2

Return on assets (ROA)

(%)

8.0

6.1

7.0

8.4

Earnings per share

(Yen)

99.16

89.08

115.57146.76

Net assets per share(Yen)

1,041.54

1,112.55

1,264.38

1,358.94

Dividends per share

(Yen)

21.00

21.00

23.00

28.00

Cash flows

Related information

Indicators

Non-financial highlights
Number of managers (persons)

Number of employees (persons)
2,923

3,047

3,137

3,213

3,192

252

251

243

236

Percentage of women in management positions (%)

237
9.1

2017

43

2018

Integrated Report 2022

2019

2020

2021

2017

2018

2019

2020

2021

2017

10.0

10.3

2018

2019

14.8

15.2

2020

2021

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

2016

2017

2018

2019

2020

2021

70,81272,75973,98974,48068,50275,647

18,37818,922

18,21017,84415,85915,795

3,987

4,173

3,116

2,900

1,976

1,616

4,017

4,149

3,145

3,003

2,050

1,622

5.7

5.7

4.3

4.0

3.0

2.1

2,867

2,877

2,296

2,058

1,458

1,211

51,442

64,837

70,10563,76762,32061,7607,651

13,78919,02015,633

13,05910,42728,45630,98432,90034,10335,57736,539

55.3

47.8

46.9

53.5

57.1

59.2

4,692

4,950

2,405

5,575

5,203

3,757

(3,929)(11,811)(8,895)(2,098)

(588)

(419)

5,603

6,154

4,345

(3,657)(2,976)(3,281)763(6,861)(6,490)

3,477

4,615

3,338

13,77913,072

10,927

10,747

12,385

12,441

3,361

13,734

7,230

5,969

587

178

1,754

1,745

2,077

2,966

2,952

2,797

536

545

583

614

451

380

12.0

9.7

7.2

6.1

4.2

3.4

8.6

7.1

4.7

4.5

3.3

2.6

194.88174.65139.40124.94

88.51

74.32

1,727.17

1,880.61

1,996.95

2,069.93

2,159.46

2,245.07

37.00

37.00

30.00

31.00

20.00

17.00

* Figures less than the indicated amounts are rounded down and percentages are rounded off.

Ratio of employees with disabilities (%)

CO2 reduction rate (compared to FY2019 intensities)

Waste reduction rate (compared to FY2019 intensities)

0%
(1)%
2.01

2.45

2.53

2.82

2.45

(2.7)%
(8)%

2017

2018

2019

2020

2021

2019

2020

2021

2019

2020

2021

44

Performance and Corporate Information

Corporate Information
Company profile (as of March 31, 2022)

List of officers (as of October 31, 2022)

KENKO Mayonnaise Co., Ltd.

Company nameDate of establishment March 1958
3-3-16, Miyakodori, Nada-ku, Kobe City,
Hyogo, Japan(Tokyo Headquarters)
3-8-13, Takaido Higashi, Suginami-ku,
Tokyo, Japan

Headquarters
location

External Director Kazumi Sakuramoto

Director and Executive Yoichi Terajima
Vice President

External Director Tomoko Mita

Director
Director

Kenji Tachibana

Director

Number of employees 3,192 (consolidated)
Securities code

2915
(First Section of the Tokyo Stock Exchange,
moved to the Prime Market on April 4, 2022)

Websitewww.kenkomayo.co.jp/en

External Director Takeharu Imashiro

Akihiko Watanabe
Manabu Kawakami Full-Time
Corporate Auditor
Masaki Enya
External Corporate Noriki Kanda
Kunikazu Shimamoto Auditor

Director

5,424.03 million yen

CapitalPresident andTakashi Sumii
Representative Director

External Corporate Masato Tajima
Auditor

Production centers

Consolidated subsidiaries
DIET COOK SHIRAOI Co., Ltd.
lilac FOODS Co., Ltd.
KANTOH DIET COOK Co., Ltd.
KANTOH DIET EGG Co., Ltd.

In-house: 7 factories
Consolidated subsidiaries:
10 factories

Overseas network
PT. Intan Kenkomayo Indonesia(Indonesia)

Overseas network

Vancouver Research Office (Canada)
DIET COOK SHIRAOI

Hans Kissle Company, LLC (U.S.)

lilac FOODSKANSAI DIET COOK Co., Ltd.
DIET COOK SUPPLY Co., Ltd.
KYUSHU DIET COOK Co., Ltd.

Hidaka Factory of KANTOH DIET EGG

Salad Cafe Co., Ltd.

Aizu Wakamatsu Factory of KANTOH DIET EGG

Higashi Murayama Factory of KANTOH DIET EGG
Salad Cafe Head Office

Tokorozawa Factory of KANTOH DIET COOKKANSAI DIET COOK

Tokyo Headquarters
Atsugi Factory

Nishi-Nihon Factory

Kanagawa Factory of KANTOH DIET COOK

Nishi-Kobe Factory

Gotenba Factory

KYUSHU DIET COOK

Shizuoka Fujisan Factory
Kobe Factory

Yamanashi Factory

DIET COOK SUPPLY

Vancouver Research OfficeHans Kissle Company, LLC

Nationwide
network
PT.Intan Kenkomayo Indonesia

45

Integrated Report 2022

Introduction

Strategy

Sustainability

Corporate Governance

Performance andCorporate Information

Stock Information
Stock information (as of September 30, 2022)
Total number of authorized shares 33,500,000 shares
Total number of issued shares

16,476,000 shares (including 200,578 treasury shares)

Number of shareholders

11,173
Investment in the Company
Number of shares held
Shareholding ratio (%)(thousands of shares)

Major shareholders
T&A CO., LTD.

1,457

8.96

The Master Trust Bank of Japan, Ltd. (trust account)

1,304

8.02

The Dai-ichi Life Insurance Company, Limited

757

4.65

Suzuyo Construction Holdings Company

623

3.83

Nippon Life Insurance Company

577

3.55

Sumitomo Mitsui Banking Corporation

559

3.44

NORTHERN TRUST CO. (AVFC) RE THE HIGHCLERE INTERNATIONALINVESTORS SMALLER COMPANIES FUND

555

3.41

Kikkoman Corporation

491

3.02

Custody Bank of Japan, Ltd. (trust account)

484

2.98

Kieikai Research Foundation

450

2.76

* The shareholding ratio is calculated by subtracting the number of treasury shares from the total number of shares issued.

Stock price and trading volume
VolumeStock price (closing price)(Yen)(Thousands of shares)

5,000

5,000

4,000

4,000

3,000

3,000

2,000

2,000

1,000

1,000

0

0
6

FY201791236FY201891236FY20199123

6FY202091236FY2021912

3

FY20226
946

KENKO Mayonnaise Co., Ltd.

KENKO Mayonnaise Co., Ltd.