Material for the Briefing Session
for FY 3/2022 1H
KENKO Mayonnaise Co., Ltd.
(Securities code: 2915)©2021 KENKO Mayonnaise Co., Ltd.

Overview of the Results for FY 3/2022 1H©2021 KENKO Mayonnaise Co., Ltd.

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Highlights of the Results for FY 3/2022 1H (Consolidated)

1) Results for FY 3/2022 1H

Consolidated net sales

Summary

37,487 million yen (Up 11.8% YoY)
Consolidated ordinary profit

699 million yen (Up 12.2% YoY)

(Million yen)
25,00020,00015,000Consolidated net sales
quarterly variations
Period before last

18,510Previous period

18,282

17,814● Drastic cost increases due toskyrocketing raw material prices→ Increased factory operation rate and profit improvements
such as cost reductions resulted in a 12.2% profit increase

Consolidated ordinary profit
quarterly variations(Million yen)

Current period

19,256● Increase in sales and profit● An 11.8% increase in sales YoY

19,205900

Period before lastPrevious period

Current period

845
745

700

659

15,719500
415

10,000

284

300
5,000
100
−360
1Q (Apr.–Jun.)©2021 KENKO Mayonnaise Co., Ltd.

2Q (Jul.–Sep.)-100

1Q (Apr.–Jun.)

2Q (Jul.–Sep.)

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Results for FY 3/2022 1H (Consolidated)

1) Results for FY 3/2022 1H

Summary of the consolidated statements of income

FY 3/2022 1H

FY 3/2021 1H(Million yen)AmountAmountProportion

YoY

Proportion

Net sales

33,533-37,487-+11.8%

Cost of sales

26,064

77.7%

29,64979.1%+13.8%

Gross profit

7,468

22.3%

7,838

20.9%

+5.0%

SG&A expenses

6,937

20.7%

7,138

19.0%

+2.9%

Operating profit

530

1.6%

700

1.9%

+31.9%

Ordinary profit

623

1.9%6991.9%+12.2%

Profit before incometaxes

630

1.9%

701

1.9%

+11.3%

Profit attributable toowners of parent

422

1.3%

456

1.2%

+8.2%

Earnings per share

25.62 yen©2021 KENKO Mayonnaise Co., Ltd.

27.97 yen4

Factors in Changes in Ordinary Profit (Consolidated)(Million yen)

1) Results for FY 3/2022 1H−1,429+917
2,000

1,500+597

Control of
fixed costs

Production
efficiency

1,000

623
500

623
0

Increase innet sales

FY 3/2021 1H©2021 KENKO Mayonnaise Co., Ltd.

Rise of raw
materials prices
YoY +75699−10699

FY 3/2022 1H
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Revisions of Selling Price1) Results for FY 3/2022 1H

Edible oil market price(Nikkei avg. prices of soybeans and rapeseed (incl. land transport))(Yen/kg)

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Note: Prices for Oct.–Dec. 2021 and Jan.–Mar. 2022 are forecasts.

400

Chicken egg market price
FY 2017(Yen/kg)260

FY 2018

FY 2019(JA Zenno, size M [Tokyo])
FY 2020

FY 2021240

350

220300

200
180

250

160200140120150
Apr.–Jun. (1Q)

Jul.–Sep. (2Q)

Oct.–Dec. (3Q)

Jan.–Mar. (4Q)

Apr.–Jun. (1Q)

Jul.–Sep. (2Q)

Oct.–Dec. (3Q)

Jan.–Mar. (4Q)

Price revision scheduleMayonnaise

Long-life salads

Mayonnaise, dressings,and sauces

Shipments from July 1

Shipments from December 1

Shipments from January 1, 2022

● Change rate: ca. 3 to 10%

Mayonnaise©2021 KENKO Mayonnaise Co., Ltd.

● Change rate: Depends on proportion of edible oil in product.

Long-life salads

Dressings

Sauces6Overview of Net Sales by Segment (Consolidated)(Million yen)
40,000Net sales composition

37,48737,76635,0009,862

33,5338,469

7,764

30,00025,00030,294
10,422

25,4208,974

28,424

9,768

20,0009,669

15,0009,260

8,219750

463

10,0005,00001) Results for FY 3/2022 1H516

6,891

7,738

8,649

580

374414FY 3/2020 1H

FY 3/2021 1H

FY 3/2022 1H■ Seasoning &processed foods■ Delicatessen-related■ Other©2021 KENKO Mayonnaise Co., Ltd.

■ Seasoning and Processed Foods business(Up 11.8% YoY)
Salads, delicatessen, mayonnaise and dressings, andprocessed egg products● Sales weight: Up 9.8% YoY● Unit selling price: Up 1.8% YoY● Data by product (YoY)■ Salads and delicatessen■ Processed egg products■ Mayonnaise and dressings

Net sales+9.1%

Sales weight
+7.4%

+8.8%

+9.8%

+17.6%+11.8%■ Delicatessen-related business (Up 11.8% YoY)
Fresh delicatessen (daily delivered salads and delicatessen),contracted production undertaken by the Group● For both Dietcook Shiraoi, in its fourth year of operation;and the Kantoh Dietcook Kanagawa Factory, sales grewand profit improved.

■ Other (Up 10.7% YoY)
Shop business (Salad Cafe) and overseas business*● Increased YoY*Due to entities accounted for using equity method, overseas
business is not included in net sales.

7Profit by Segment (Consolidated)● Seasoning and processed
foods business(Million yen)
1,400

Salads, delicatessen, mayonnaise anddressings, and processed egg products

1,200
1,0008001) Results for FY 3/2022 1H● Delicatessen-related business
Fresh delicatessen (daily delivered salads
600 and delicatessen), contracted production
undertaken by the Group

1205001004008040200

40020010000FY 3/2020 1H FY 3/2021 1H FY 3/2022 1H(Million yen)

Shop business (Salad Cafe) andoverseas business*60300600● Other200
FY 3/2020 1H FY 3/2021 1H FY 3/2022 1H−20(20)FY3/2020 1H

FY3/2021 1HYoY

FY 3/2020 1H

FY 3/2021 1H

FY 3/2022 1H

Segment profit

1,590

623

699

+12.2%● Seasoning andprocessed foods
business

1,240447270−39.6%

261

219517+136.1%98

4−8-−10−47−79-● Delicatessen-relatedbusiness● Other
Adjustments©2021 KENKO Mayonnaise Co., Ltd.

FY3/2022 1H8Overview of the Balance Sheet (Consolidated)(Million yen)

FY 3/2021

FY 3/2022 1H

Difference1) Results for FY 3/2022 1H

YoY

Current
assets26,317

Non-current
assets

36,00335,093

−909

−2.5%

62,32062,540

+220

+0.4%

Current
liabilities

15,004

16,297+1,293+8.6%

Non-current
liabilities

11,738

10,406−1,331−11.3%

26,742

26,704−37−0.1%

Balance of interestbearing debt

13,05911,581−1,478−11.3%Net assets

35,57735,836

+258

+0.7%

Total liabilities and net
assets62,32062,540+220+0.4%

Equity ratio

57.1%

57.3%

AssetsTotal assets

Liabilities

Total liabilities©2021 KENKO Mayonnaise Co., Ltd.

27,447+1,130+4.3%

Key differences
Notes and accounts receivable trade+681
Investment securities+366

Machinery, equipment,
and vehicles−882

Accounts payable - trade +1,667
Other current liabilities−528

Long-term borrowings

−950

+0.2%
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Overview of Cash Flows (Consolidated)

1) Results for FY 3/2022 1H(Million yen)

Cash and cash
equivalents at endof period

−247

2,441

Investing CF−1,996

Cash and cash
equivalents at endof period

Financing CF

Operating CF

12,583

12,385
YoY +197
FY 3/2021 1H

FY 3/2022 1H(Million yen)

Key difference factors

Cash flows fromoperating activities

Profit before income taxes: +701
Increase in trade payables: +1,795
Decrease in trade receivables: −681

Cash flows frominvesting activities

Purchase of property, plant, and equipment: −149

Cash flows fromfinancing activities

Repayments of long-term borrowings: −1,006
Repayments of installment payables: −457
Purchase of treasury shares: −331

©2021 KENKO Mayonnaise Co., Ltd.

Depreciation: +1,400
Decrease in inventories: −22510Outlook for FY 3/2022©2021 KENKO Mayonnaise Co., Ltd.

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Business Environment in the Second Half
Raw materials

COVID-192) Earnings Estimate for FY 3/2022

Changes in consumption
behavior● Skyrocketing price of edible oil● Lifting of movement restrictions● Demand for takeaway/delivery● Poor potato harvest→ Altering the restaurant industry
trends● Healthy demand in home meal anddelivery services● Concern about re-spread ofinfection● Revenge consumption expected● Rising logistics and fuel costs✔ Revise selling price (mayonnaise, dressings, sauces, long-life salads)✔ Continuously control fixed and SG&A costs✔ Ensure stable operation of production factories and develop newsales channels©2021 KENKO Mayonnaise Co., Ltd.

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Earnings Estimate for FY 3/2022 (Consolidated)(Million yen)

80,000Consolidated net sales
74,48075,000

Summary of the consolidated statements of income

FY 3/2021

73,200FY 3/2022 (Est.)

68,50270,000(Million yen)

65,00060,00055,00050,0000FY 3/2020

FY 3/2021 FY 3/2022 (Est.)

Consolidated ordinary profit(Million yen)AmountAmountYoY

Net sales

68,502

73,200+6.9%

Operating profit

1,976

1,430

−27.6%

2.9%

2.0%

2,050

1,500

3.0%

2.0%

1,458

1,050

2.1%

1.4%

Operating profit margin (%)

Ordinary profit

3,500
3,0002) Earnings Estimate for FY 3/2022−26.9%

3,003

Ordinary profit margin (%)

2,500

2,050

2,000

1,500

1,500

Profit attributable toowners of parent
Net profit margin (%)

1,000

Earnings per share

500

88.51 yen

−28.0%

63.73 yen

0FY 3/2020

FY 3/2021 FY 3/2022 (Est.)©2021 KENKO Mayonnaise Co., Ltd.

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Forecast for Changes in Ordinary Profit for FY 3/2022 (Consolidated)

2) Earnings Estimate for FY 3/2022(Million yen)

−3,456+1,074+1,708

Productionefficiency
1H: +917
2H: +157

Control offixed costs

Increase innet sales

2,050

1H: +597
2H: +1,111+124
Rise of raw
materials prices
1H: −1,429
2H: −2,027

1H: −10
2H: +134

1,500−550
FY 3/2021©2021 KENKO Mayonnaise Co., Ltd.

FY 3/2022 (Est.)
14Forecast for Net Sales by Segment (Consolidated)
Net sales composition(Million yen)
80,00074,48068,50270,000

16,458
16,21560,00050,000

Forecast for FY 3/2022

73,20019,64459,093

19,974

51,611

17,38655,291

2) Earnings Estimate for FY 3/2022

18,164■Seasoning and Processed Foods business
Salads, delicatessen, mayonnaise and dressings, andprocessed egg products+7.1% (YoY)■ Salads and delicatessen■ Processed egg products■ Mayonnaise and dressings

+1.5%
+4.5%
+15.6%

40,000■Delicatessen-related business
30,00019,64518,034
16,99020,00010,0000

16,985

16,057

14,250

1,025

1,020

1,441

1,136

832923

FY 3/2020
FY 3/2021
FY 3/2022 (Est.)■ Seasoning & ■ Delicatessen-related■ Otherprocessed foods©2021 KENKO Mayonnaise Co., Ltd.

Fresh delicatessen (daily delivered salads anddelicatessen), contracted production undertakenby the Group■Other+5.8% (YoY)

Shop business (Salad Cafe) and overseas business*+10.9% (YoY)*Due to entities accounted for using equity method, overseas
business is not included in net sales.

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Dividends and Return to Shareholders■ Common dividend (interim)

23.6

19.9

19.1

19.0

21.2

28

112313

21.5

24.8

22.6

30

31151619172012101011

FY 3/2014

FY 3/2015

FY 3/2016©2021 KENKO Mayonnaise Co., Ltd.

14
FY 3/201723.537(Yen)21

Payout ratio (%)■ Common dividend (year-end)

37232) Earnings Estimate for FY 3/2022

18

FY 3/201815
FY 3/201915
FY 3/2020

15887

FY 3/2021

FY 3/2022 (Est.)

16Medium-Term Management Plan
(FY 2021 to 2023)©2021 KENKO Mayonnaise Co., Ltd.

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Basic Policy for the Medium-Term Management Plan3) MTMP

Creating Shared Value (CSV)
B to B to C

Structuralreform

Four
ThemesInnovation

Globalbusiness

Sustainability Policy
Environment

Key issues● Greenhouse gases● Raw materials

Society● Container & packaging● HealthHealth● Human resources

Transformation for improving corporate value
and achieving sustainable growth
Goals forFY2023

Consolidated net sales
80 billion yen©2021 KENKO Mayonnaise Co., Ltd.

Consolidated ordinary profit
4 billion yen
18Medium-Term Management Plan—Four Themes (1)3) MTMP

Increase opportunities for all consumers tolearn about KENKO Mayonnaise directly(1) B to B to C

● New products for business useNewNewNewNewNewNew

Long shelf life type→ For takeouts

Single-portion sizes

Add new flavors anddifferentiate fromusual dishes● Product PR
Garlic Butter Sauce
Featured on TV, in magazines, and in online media
Displayed in supermarket and drugstore storefronts
 We will continue to actively engage in this PR.

©2021 KENKO Mayonnaise Co., Ltd.

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Medium-Term Management Plan—Four Themes (2)3) MTMP

Increase opportunities for all consumers tolearn about KENKO Mayonnaise directly(1) B to B to C

● Online streaming of productintroduction and recipe videos● Recipe publications releasedContains 202 recipes→ Popular Salad Cafe salads→ Recommended website recipes● Online cooking lessons● Salad Cafe
Collaborative products

Product supervision

Collaborated with Suzuhiro Kamaboko

Supervised FamilyMart salads©2021 KENKO Mayonnaise Co., Ltd.

Kenko Kitchen Space
Cooking lessons for consumers

20Medium-Term Management Plan—Four Themes (3)(2) Innovation

3) MTMP

Crystallize our New KENKO vision into eco-friendly businesses● Development of plant-based products
Soy meat series(four products)

Chickpea hummus

Made with soy meat

Soy milk white sauce

Simply-topped meal series

New● Research■ Development of upcycled products■ Cultivation of food specialists■ KENKO-endowed Salad Science courses (at a university)©2021 KENKO Mayonnaise Co., Ltd.

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Medium-Term Management Plan—Four Themes (4)(3) Structural reform

3) MTMP

Sustainable growth of core business● Workstyle and job satisfaction reforms● Introduction of new backbone system

A fair, satisfactory, and transparent HR system■ Completion planned for FY 2023

→ Workstyle and job satisfaction improvement■ Centralized monitoring of management

Company growth andtransformation

Job satisfaction
reformTalentmanagement■ Thorough unit controlindicesWorkstylereform● Improved governance■ Established a Nomination andRemuneration Committee.

■ Evaluated the effectiveness of the Boardof Directors.

Management
philosophy andstrategy

HR strategy

HR system■ Abolished the officer retirement benefitsystem.

■ Abolished anti-takeover measures.
©2021 KENKO Mayonnaise Co., Ltd.

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Medium-Term Management Plan—Four Themes (5)(4) Global business

3) MTMPStrengthen the foundation of our global business● Overseas locations■ Indonesia
・ Movement restrictions in Indonesia→ Affect on sales activities■ North America
・ Sales are in line with previous year・ Affected by skyrocketing raw material prices

・ Sauce production and sale going smoothly● Expansion of exports and sales● Cultivation of global business persons■ Products exported to 48 countries and■ Encouragement of language learning→ Particular growth in Asia and Americas■ Recruitment of diverse human resources■ Providing extended best-before periods for→ Hiring of competent human resources
regardless of nationality

regions (as of September 2021)

exported products■ Development of new export products©2021 KENKO Mayonnaise Co., Ltd.

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Sustainability Policy3) MTMP

Company Philosophy

Contributing to the world by providing quality foods

Management foundation

Creating shared value

Sustainability Policy

Environment

SocietyHealth

To become anenvironmentallyfriendly company

To bring happinessto stakeholders

To care for mental andphysical health and lives

Key issues● Greenhouse gases● Raw materials● Container & packaging● Health

ESGSDGs● Human resources

Contributing to the realization of a sustainable society©2021 KENKO Mayonnaise Co., Ltd.

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Sustainability Initiatives (Progress)

IssuesReduction of waste

CO2reduction−3%(Compared to FY 2019 intensities)● Shift to alternate
refrigerants→ 84% complete
Use of sustainable
packaging materials

Goals for FY 2023

FY 2021 1H● FY 2021 CO2
reduction target: by 1%

Reduction ofgreenhouse gases

3) MTMPCFCsubstitutes● Shift to biomass ink forouter mayonnaise packaging● Reduced by 6% groupwide(FY2021 1H)

Promoting the use ofalternate refrigerants

Using lightweightpackaging materials

Reducing waste andprocessing losses−5%(Compared to FY 2019 intensities)©2021 KENKO Mayonnaise Co., Ltd.

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Sustainability Initiatives● Long-life salads
1977
World-first sale
→ Contribution to foodwaste elimination andimproved convenience● High added value recycling
・ Using potato skins for pig feed・ Using egg shells for fertilizer3) MTMP

● Aid activities
・ Endorsement of food bankactivities
・ Support for children’s foodkitchens● Respect for diversity
Awarded Shizuoka Prefectural
Governor’s Award for being an
outstanding enterprise in theemployment of people withdisabilities● Resilient raw materials (potatoes)● SDGs education

Contribution to breeding and the development ofnew cultivars

Training for employees using e-learning- Joining in research on pest-resistant cultivars● Creation of factory tour videos- Development of cultivars suited to salads (Sayaka)©2021 KENKO Mayonnaise Co., Ltd.

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For Inquiries• Contact information
Publicity & IR Section, Corporate Planning Department, Corporate
Planning Division (Tokyo H.Q.)– Telephone: +81-3-5941-7682– E-mail:
ir@kenkomayo.co.jp• 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.

©2021 KENKO Mayonnaise Co., Ltd.

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