KENKO Mayonnaise Co., Ltd.
[Securities code: 2915]

Material for Briefing Session
For FY 3/2023 1H
Nov. 22, 2022

©2022 KENKO Mayonnaise Co., Ltd.

Table of Contents

1. Results for FY 3/2023 1H
2. Forecast for FY 3/2023
3. Progressof Medium-Term Management Plan

©2022 KENKO Mayonnaise Co., Ltd.

1

1.Results for FY 3/2023 1H©2022 KENKO Mayonnaise Co., Ltd.

2

Highlights of the Results(millions of yen)
50,000■Net sales (Consolidated)(millions of yen)
750

40,75040,000(Consolidated)
1.9%

1.6%

642

650
37,487600

10,00055000500

FY3/2022 1H

1.5%

699

33,533

FY3/2021 1H

2.0%

1.9%

700

30,00020,000■ Ordinary profit
Ordinary profit margin

FY3/2023 1H

623

1.0%

0.5%

FY3/2021 1H

FY3/2022 1H

FY3/2023 1H♢ Consolidated net sales: 8.7% increase YoYConsolidated ordinary profit : 8.2% decrease YoY♢ In terms of sales,
lifting of the state of emergency and effect of price revisions♢ In terms of profit, impact of soaring ingredient prices and energy costs©2022 KENKO Mayonnaise Co., Ltd.

３

Statements of Income (Consolidated)

FY3/2023 1H

FY 3/2022 1H（millions of yen）

AmountAmountYoY

Net sales

37,48740,7508.7%

Gross profit

7,838

8,045

2.6%

20.9%

19.7%

7,138

7,425

4.0%

700

620

-11.4%

1.9%

1.5%

699

642

1.9%

1.6%

2

70

3,500%

Profit before income taxes

701

712

1.6%

Profit attributableto owners of parent

456

482

5.7%

1.2%

1.2%

％

Selling, general and administrative
expenses
Operating profit％

Ordinary profit％

Total extraordinary
income and losses％

Earnings per share©2022 KENKO Mayonnaise Co., Ltd.

27.97yen-8.2%

29.66yen４

Factors in Changes in Ordinary Profit (Consolidated)（millions of yen）

3,000+1,803

-192
-100

2,500-1,710

・Higher energy costs

2,000・Improvement inplant utilization

1,500・Fixed andSG&A costs

1,000+142500

-57

699
0

FY3/2022
1H

Increase in
net sales©2022 KENKO Mayonnaise Co., Ltd.

・Edible oil,chicken egg, etc.

ReviseManufacturing Fixed costs,etc.
selling price
cost

Ingredientimpact642
FY3/2023
1H
５

Results by Segment
Net sales by Segment(millions of yen）(millions of yen）

45,000900

40,75040,00037,48731,651
11,59835,00028,424

9,669

Seasoning andProcessed Foods
Business+20.0%

Seasoning andProcessed Foods
Business

699

700

Mayonnaise anddressings

30,000800

Profit by Segment
Delicatessen-related
Business

Other642

270
600

＋1.9％
25,00010,767

9,768

8,469

8,699

10,000

516

586

5,000

8,649

8,608

0414
FY3/2022 1H489
FY3/2023 1H(Other: Shop business (Salad Cafe) and overseas business)*Overseas Business is accounted for by the equity method,
it is not included in net sales.

©2022 KENKO Mayonnaise Co., Ltd.

＋2.7％

400

300

517

Salads and delicatessen-0.5％＋18.1%-27.3％

376

200＋13.6％
Other275

500

Processed egg
products

20,00015,000+10.2%

Delicatessen-related
Business

1000ー-８
FY3/2022 1H

Other-100(100)(Down 79 *includingadjustments)

6
FY3/2023 1H(Down 15 *includingadjustments)

６

By Segment for 1H Key Points
Segment

ProductMayonnaiseand dressings

Seasoning andProcessed Foods

Processed egg
products

Net sales
growth rate

Profit growthrate bysegment+20.0%

・Launched “fullness®”, a new product with processingaptitude and functionality
・Implemented price revisions+10.2%

・Sales of Kinshi egg (shredded egg) for noodles
decreased due to unseasonable weather during thesummer
・Sales of egg salads to major bread manufacturers
and convenience stores increased
・Atsuyaki tamago (thick omelets) adopted byrestaurant chains and convenience stores+1.9%

BusinessSalads anddelicatessen
OtherDelicatessen-related
Business

Fresh salads,
Japaneseside dishes, etc.

+2.7%

・Potato salad (1 kg package), a key product, recoveredin net sales
・The "WASAI BANSAI🄬" series of Japanese side dishes
sold well+13.6%

・Products addressing labor shortages, such as frozen
potatoes that can be used without preprocessing,enjoyed favorable sales-0.5%-27.3%

Salad CafeOverseas

Other*Profit only foroverseas operations(due to equity methodaffiliates)©2022 KENKO Mayonnaise Co., Ltd.

1H Key Points+18.1%

ー・Stable demand for home meal・Expand introduction of
three fresh products (meat, fish, vegetables)
to the sales floor【Salad Cafe】
・Increased number of customers because of lifting of
the state of emergency
・Relocated due to rebuilding of a department store
・Opened a new brand “YASAI no OKASHI” for a limited
period of time
【Overseas】
・Recovered spending after COVID-197

Sales by Channels (Consolidated)
Variations in
Sales by channels（millions of yen）

45,00040,000Mass retailers
Bread

Restaurants
School lunch

40,75037,487

Sales composition
by channels
Convenience
storesCVS

Other+17.3%+11.9%

35,000-0.3%
30,000+10.1%

25,00020,000+20.3%

15,00010,000

+0.2%

5,000

School Other
lunch 4.5％

4.5％

Bread11.9%

Massretailers
26.7%

Convenience
storesRestaurants
26.2%
26.2%0FY 3/2022 1H

FY 3/2023 1H©2022 KENKO Mayonnaise Co., Ltd.

８

Overview of the Balance sheet (Consolidated)
FY 3/2022

FY 3/2023
1HDifference

Change from
FY 3/2022
end

Current assets

27,86830,066

2,198

+7.9%

Non-current assets

33,892

33,085

-807

-2.4%

61,76063,151

1,390

+2.3%

10,427

9,278-1,149-11.0%

25,221

25,953732＋2.9%

36,53937,198658+1.8%

61,76063,151

1,390

+2.3%

2,285.53yen +40.46yen+1.8%*Includes long-term accounts payable - other(millions of yen)

AssetsTotal assets
Liabilities

Balance ofinterest-bearing debt*

Net assets
Total liabilities and net assets

Net assets per share
Equity ratio©2022 KENKO Mayonnaise Co., Ltd.

2,245.07yen

59.2%

58.9%

-0.3%

９

Overview of Cash Flows (Consolidated)

3,000

FY3/2023
1H

FY3/2022
1H(millions of yen)

2,000

1,000

0

▲-1,000
1,000▲-2,000
2,000
Operating
営業CF
CF

Investing
投資CF
CF

Financing
財務CF
CF

FY3/2022
1H

FY3/2023
1H

Difference

Cash flows fromoperating activities

2,441

2,319-122

Cash flows frominvesting activities-247-193+54

Free cash flow

2,194

2,126-68

Cash flows fromfinancing activities-1,996-1,330+666

Cash and cash
equivalents
at end of period

12,583

13,238+655♢Cash flows from operating activities: Profit before income taxes and depreciation♢Cash flows from investing activities: Acquisition of software and other intangible assets, etc.
♢Cash flows from financing activities: Repayment of interest-bearing debt and dividend payments©2022 KENKO Mayonnaise Co., Ltd.

10

2.Forecast for FY3/2023©2022 KENKO Mayonnaise Co., Ltd.

11Business Environment in 2H
Shifting
global situation

Surging

Soaringexchange rate

ingredient prices

fluctuations

Higher energy costs

Changing
lifestyles● Current business environment will continue to be a challenge in 2H and beyond● Respond to rising costs by revising prices,
reducing expenses, improving production efficiency, etc.

【Reference】（Yen/kg） Soybeans and rapeseed average price ofinstitutional use (tank truck base)
450

（Yen）
160

*Average of every three months

437

400

Jul.–Sep.

392

350

Apr.–Jun.

300【Reference】
Foreign exchange rates (JPY/USD)

1501401301202501102000

FY2019FY2020©2022 KENKO Mayonnaise Co., Ltd.

FY2021

FY20221000

Jan.
FY2022Nov.
FY202212

Earning Estimate (Consolidated)
FY 3/2022（Millions of yen）

Amount75,647

Net sales【Net sales (consolidated)】

FY 3/2023(Est.)
Amount（millions of ten）

85,00080,000YoY

80,70080,70075,64775,00070,000+6.7%

68,50265,00060,0001,616

Operating profit%

Ordinary profit

2.1％

0.4%

-370

-77.2％

2.1％

0.5%-Profit attributableto owners of parent

1,211%

1.6％

74.32 yen

-55,000
50,0000FY 3/2021 FY 3/2022【Ordinary profit (consolidated)】

3,500
3,000

-

2,500
2,000

2,050
1,622

1,500
1,000

-370

500
0
FY 3/2021 FY 3/2022©2022 KENKO Mayonnaise Co., Ltd.

FY 3/2023(Est.)（millions of yen）

1,622
%

Earnings per share326-79.8％

FY 3/2023(Est.)

13Forecast for Changes in Ordinary Profit (Consolidated)（millions of yen）

8,000
1H︓-1,710+5,091

7,000

6,000

2H︓-4,365

-167

-333

-6,075

・Edible oil,chicken egg, etc.

1H︓-192
2H︓ +25
・Higher energy costs

5,000・Improvement inplant utilization

4,000699

1H︓-100

3,000

2H︓-233
・Cost reduction measures

2,000+232

1,000

1H︓+1420

1,622

2H︓ +90

・Structural reform expenses

1H︓+1,803
2H︓+3,288

370
FY 3/2022
results

Increase innet sales©2022 KENKO Mayonnaise Co., Ltd.

Reviseselling price

Manufacturing
cost

IngredientimpactFixed costs,etc.

FY 3/2023(Est.)
14

Dividend Policy and Shareholder Returns
Basic policy is to maintain and continue stable dividends
while aiming to increase corporate value,raising the dividend level based on business performanceDividends FY3/2023

Interim dividend

Undecided

8yen/share

Term-end dividend

Undecided

9yen/share(Est.)■ Dividends andPayout Ratio

Dividends(yen/share)
Payout ratio (%)©2022 KENKO Mayonnaise Co., Ltd.

Total
17yen
(Est.)

FY3/2018

FY3/2019

FY3/2020

FY3/2021

FY3/2022

3730

31

20

1721.2

21.5

24.8

22.6

22.9
15

3.Progress of Medium-TermManagement Plan

©2022 KENKO Mayonnaise Co., Ltd.

16

Basic Policy in the Medium-Term Management Plan

Company Philosophy
CSV “Creation of Shared Value”
Four Themes
B to B to C

Increase opportunities for consumers to get
to know KENKO Mayonnaise firsthandInnovation

Create a New KENKO based on awareness ofenvironmental conservation looking ahead tothe global environment of the future

Structuralreform

Implement reform to grow the core business

Globalbusiness

Strengthen the foundationfor our global business

Sustainability Policy
Environment● Greenhouse gases● Ingredients

SocietyHealth● Container/
packaging materials● Health● Human resources

Transformation for improving corporate value
and achieving sustainable growth©2022 KENKO Mayonnaise Co., Ltd.

17Four themes
Market Environment✔Diversified lifestyles caused

B to B to C

by COVID-19✔Establishment of SDGs
✔Soaring ingredient prices

Innovation

Structuralreform・Develop small volume androom temperature products
・Information brand strategies
・Promote small pouch products
・Respond to soaring ingredient prices
・Thoroughly market the area

✔Growing health consciousness✔Spread of ethical consumption✔Aging society✔Initiatives
for local economy and society✔Labor shortages

・Development of high value-added products
・Introduction of DX (Digital ledger✔Gender equality

・Restructuring of core systems
・Reform of security
・Cost reductions・Reform of personnel systems andenhancement of personnel development
・Enhancement of governance, capital
policy, and disclosure✔New normal✔Work-life balance✔Digitization✔TSE market reorganization✔Contraction of Japanese market

GlobalbusinessIssues✔Expansion of global market✔Expansion of ecommerce market✔High U.S. inflation✔Soaring ingredient prices©2022 KENKO Mayonnaise Co., Ltd.

management, collaborative robots, etc.)

・Promotion of regional revitalization
・Standardization of carton sizes
・Loss reduction
・Expansion of export-ready products

・Increase in number of countries forexports and expand sales in priority
areas
・FSSC 22000 certification
・Products for global use
・Enhancement of English disclosure

18

Initiatives ①

B to B to C

EC sites

GlobalbusinessSocial media

Net sales target +18% YoY[EC sales (thousand yen)]▶ Website*Total EC sites(KENKO Mayonnaise and 2 major companies)

75,000Integrated withproduct website in 201963,634(including Twitter/Instagram)● Enjoy increased publicity

・Opened in April 2022
Official LINE account of
Salad Cafe

▶ Campaign
FY2019● Build user contact points→ Approx. 110,000 followers● Strengthen promotion▶ Items handledExpanded to 411 items
For new customers

Structuralreform

innovation

FY2022(Goals)

Aiming to develop as a new sales channel⇒ Communication toolfrom recognition to fan growth

Garlic butter sauce
Contributed to boosting sales and brand recognition
thanks to increased media exposure, etc.,
word of mouth and spread of recommendations

Total company-wide sales exceed 4 million bottles

Total EC sites Sales volume(KENKO Mayonnaise and 2 major companies)(515g and 205g total)(Aug. 2022)

Total EC sales: approx. 160,000 bottles
Amazon “Condiments & Sauces” Bestseller #1
FY2011©2022 KENKO Mayonnaise Co., Ltd.

FY2019FY202119

Initiatives ②

B to B to C

Structuralreform

innovation

Globalbusiness

In Pursuit of Local Cuisine
Cherish unique local cuisines toward
a world where they can be enjoyed
Japanese food anytime and anywhere
Product on sale in July 2022

Total

24 items

NewNew

New

Robot Technology
Drive streamlining of manufacturing sites
Scheduled demonstration test ofa prepared food serving robot
at KANTOH DIET COOK
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©2022 KENKO Mayonnaise Co., Ltd.

［“WASAI BANSAI🄬“ series,sales weight (tons)］+13%

FY2021 1H

FY2022 1HTopics
Received the 52nd (2022)
The Food Industrial Technical Award“Noseru Dake” (simply add) 5 productsReceived JAPAN MILLET AWARD
Daily Foods [Fall 2022] Gold Prize“Kale and Quinoa Saladwith Cheese” by Salad Cafe20

Initiatives ③

B to B to Cinnovation

Structural Reform Initiatives

Structuralreform

GlobalbusinessApproach to Global Markets● Reform of security● Export business・Addressing unauthorized access,cyber-attacks, etc.

Export products to 49 countries
and regions (FY2021)● Strengthening risk management

・Conduct media training
・In-house risk management training

Main sales
channels● Reconstruction of core systems

Supermarkets, sushi boats,
restaurants, and hotel buffets, etc.

and reform of personnel systems

・Scheduled to begin operation
in FY2024● Enhancement of disclosure● Promotion
Product website in English Expanding
the information volume

・Integrated Report→ To be released by the end of November 2022
(website)©2022 KENKO Mayonnaise Co., Ltd.

21

Sustainability Policy

Company Philosophy

To becomean environmentallyfriendly company

To bring happinessto stakeholders

Carbon neutrality

Happiness of workers

Recycling-based economy

HealthSociety

Environment

Harmony with local communities
and society

For healthy lives
To provide safe,
reliable products
To promote health-orientedmanagement

Creation of a sustainable society
Key Issues
Greenhousegases

Ingredients©2022 KENKO Mayonnaise Co., Ltd.

Container/Packaging materials

HealthHumanresources22

Goals for Sustainability
Reaching medium-to long-term goals and strengthening initiatives▶ Sustainability Promotion Office established in April 2022

Goals
Reduction ofgreenhousegases

Initiatives for FY2022● More efficient energy-using equipment● Shift to alternate refrigerants→ Almost complete by FY2023

Goals for FY2023
Reductionof CO2
Alternative
CFCs-3%(Compared to FY 2019 intensities)

Promoting the use ofalternative refrigerants● Shift to biomass ink

Use ofsustainable
packagingmaterials

for outer mayonnaise packaging● No more boxes
for some products(in a box)

Reduction ofwaste-11.4%

New packaging for“KENKO Restaurant
taste Mayonnaise”(no box)● Reduction of sludge ⇒ 24.8% down(Compared to FY 2019 weight)● Utilization of animal and plant residues(FY2022 1H results)*Targets will be reviewed according to social environmental changes.
©2022 KENKO Mayonnaise Co., Ltd.

Lightweightpackagingmaterial

Reduction of wasteand processing losses-5%(Compared to FY 2019 intensities)⇒ Target already achieved (Rescheduling)23

Final Year Targets of the Medium-Term Management Plan

Goals for KENKO Transformation Plan (FY2023)
Consolidated
net sales

80 billion yen

FY2022
Expectedto achieve

Consolidated
ordinary profit

4 billion yen

Reviewingthe Goals● The external environment, including global situation, exchange rates, ingredient prices,and energy costs, has changed significantly since the plan started.
● This trend of rising ingredient prices and energy costs is expected to continue
in the next fiscal year and beyond.

・Uncertainty about the external environment and cost increases
in FY2023 at this time.
・Target for consolidated ordinary profit to be announced
in the next fiscal year.
©2022 KENKO Mayonnaise Co., Ltd.

24

For Inquiries• Notes on the future outlook
This material is intended for providing investors with information only, not forsoliciting the trade of shares. The contents related to forecasts in this material are
based on goals and predictions, so they do not give any promise or guarantee.
Please use the information, while recognizing that actual business performance ofour company may turn out to be different from the current forecast.
In addition, the contents related to business results, etc. have been produced basedon data that are considered reliable, but our company does not guarantee theiraccuracy or safety.
This material is provided, under the assumption that investors will use it at theirdiscretion and on their own responsibility for any purpose, so our company will notassume any responsibility for any outcome.

• Contact information
Publicity & IR Section
Public Relations Department,
Corporate Planning Division (Tokyo H.Q.)– E‐mail: ir@kenkomayo.co.jp©2022 KENKO Mayonnaise Co., Ltd.