Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2018
(Based on Japanese GAAP)May 15, 2018
Company name:KENKO Mayonnaise Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
2915

URL

http://www.kenkomayo.co.jp

Representative:

President and Representative Director
Managing Executive Officer and General

Takashi Sumii

Inquiries:

ManagerCorporate Planning Office

Atsushi Kyogoku

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 29, 2018
June 29, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

July 2, 2018
Yes

Holding of financial results meeting:

Yes

TEL

03-5318-7530(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2018
72,759
2.7
4,173
4.7
4,149
3.3
2,877
0.4
Year ended March 31, 201770,812
5.8
3,987
16.0
4,017
17.2
2,867
37.5
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
9.7
7.1
5.7
–
12.0
8.6
5.6

Diluted earnings pershareEarnings per share
Yen
174.65194.88Year ended March 31, 2018Year ended March 31, 2017(2) Consolidated financial position

Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Millions of yen
64,87751,442Millions of yen
30,98428,456

Cash flows fromoperating activities
Millions of yen
4,950
4,692

Cash flows frominvesting activities
Millions of yen(11,811)(3,929)Net assets per share%
47.8
55.3

Yen
1,880.61
1,727.17(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows fromCash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
6,154
13,072
5,603
13,7792. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(Forecast)

Total cash
Dividend payout Ratio of dividends
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

14.00
18.00

––

23.00
19.00

37.00
37.00577609

19.0
21.2

2.4
2.1

–

18.00

–

19.00

37.00

121.2

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Net sales
Millions of yen
Six months ending
September 30, 2018
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

38,600

4.3

2,080

(3.4)

2,100(3.9)

1,400(6.0)

84.97

77,000

5.8

4,100

(1.8)

4,150

0.0

2,880

0.1

174.804. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2018

16,476,000 shares As of March 31, 201716,476,000 shares

Number of treasury shares at the end of the period
As of March 31, 2018

441 shares As of March 31, 2017273 shares

Average number of shares during the period
Year ended March 31, 2018

16,475,679 shares Year ended March 31, 2017

214,713,067 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

13,77911,436

13,072
13,566Merchandise and finished goods
Work in process

1,881
17

1,866
10

Raw materials and supplies
Deferred tax assets

919
350

1,100
321

Accounts receivable - other
Other

711
101

47
457

Allowance for doubtful accounts

(2)

(0)

29,19630,443

12,11816,819

Accumulated depreciation(6,656)(7,142)

Buildings and structures, net

5,461

9,676

Machinery, equipment and vehicles

16,255

16,602

Accumulated depreciation(9,601)(10,697)

Machinery, equipment and vehicles, net

6,653

5,904

1,335

1,414

Accumulated depreciation(962)(1,057)

Tools, furniture and fixtures, net

373

356

5,968

5,978

15(10)

15(8)46Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Tools, furniture and fixtures

Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress

8

8,543

18,46930,466

Total intangible assets
Investments and other assets

268

219

Investment securities
Deferred tax assets

2,047
398

2,370
329

Guarantee deposits
Insurance funds

365
542

365
553

OtherAllowance for doubtful accounts

192
(40)

166
(36)

Total property, plant and equipment
Intangible assets

Total investments and other assets
Total non-current assets
Total assets

3

3,506

3,748

22,24534,43451,44264,877

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

8,751

9,940

–920

825
1,165

4,139
909

6,606
866

Provision for bonuses
Provision for directors' bonuses

420
15

438
16Provision for sales rebates
Notes payable - facilities

24
167

20–

Electronically recorded obligations - operating
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable

Other

1,138

1,427

Total current liabilities

16,487

21,307

1,489
77

7,131
70

384
443

439
365

3,512
550

3,986
550

40

41

Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Long-term accounts payable - other
Other provision
Other
Total non-current liabilities

6,498

12,58622,98533,893

Capital stock
Capital surplus

5,424
5,691

5,424
5,691

Retained earnings
Treasury shares

16,688(0)

18,890(1)

Total shareholders' equity

27,80330,004798

1,064

9(155)

2(87)Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4652979

28,45630,98451,44264,877

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Net sales

70,81272,759

Cost of sales

52,43353,837Gross profit

18,37818,922

Selling, general and administrative expenses

14,391

14,748Operating profit

3,987

4,173

Non-operating income
Interest income

00

Dividend income
Rent income

33
1533
15

Reversal of provision for otherOther30
92–98

Total non-operating income

1721485368

Share of loss of entities accounted for using equity method
Share issuance cost

324094–

Other

15

10

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income
Gain on sales of investment securities
Gain on donation of non-current assets

142

173

4,017

4,149

30

68–
79–

Other

00

Total extraordinary income

3878

25
3133

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Other

64

Total extraordinary losses

3421

Profit before income taxes4,021

4,205

Income taxes - current

1,244

1,377

Income taxes - deferred

(90)

(49)

Total income taxes

1,154

1,328

Profit

2,867

2,877

Profit attributable to owners of parent

2,867

2,877

5

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
2,867

2,877

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

7957265
68

Share of other comprehensive income of entities accounted
for using equity method(4)(7)

Total other comprehensive income

131326

2,999

3,203

2,999

3,203

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

2,180

Capital surplus

Retained earnings

2,448

14,161

Treasury shares(0)

Total shareholders'equity18,790

Cumulative effects ofchanges in accounting
policies
Restated balance

99
2,180

2,448

3,2433,243

14,26199(0)18,890Changes of items duringperiod
Issuance of new shares
Dividends of surplus
Profit attributable toowners of parent

6,486
(440)

(440)

2,867

2,867

Purchase of treasury
shares(0)(0)

Net changes of items
other than shareholders'equityTotal changes of items
during period

3,243

3,243

2,426

(0)

8,912

Balance at end of current
period

5,424

5,691

16,688(0)27,8037

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period719

Foreign currencytranslation

Remeasurementsof defined benefit

adjustmentplans
14(212)

Total accumulated
otherTotal net assets

comprehensive
income520

19,311

Cumulative effects ofchanges in accounting
policies
Restated balance

99
719

14(212)520

19,411

Changes of items during
periodIssuance of new shares

6,486

Dividends of surplus(440)

Profit attributable to2,867

owners of parent
Purchase of treasury
sharesNet changes of items
other than shareholders'

(0)

79(4)

57

131

131

Total changes of items
during period

79(4)

57

131

9,044Balance at end of current
period798

9(155)

652

28,456equity8Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Treasury shares

Total shareholders'Capital surplus

Retained earnings

5,424

5,691

16,688(0)27,803

5,424

5,691

16,688(0)27,803equityCumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent(675)

(675)

2,877

2,877

Purchase of treasuryshares(0)(0)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

––

2,202

(0)

2,201

5,424

5,691

18,890(1)

30,0049

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period

Foreign currencytranslation

Remeasurementsof defined benefit

adjustment

plans

Total accumulated
otherTotal net assets

comprehensive
income7989(155)

652

28,456798

9(155)

652

28,456

Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items duringperiod
Dividends of surplus(675)

Profit attributable toowners of parent

2,877

Purchase of treasury
shares(0)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period265(7)

68326

326

265

(7)

68

326

2,527

1,0642(87)979

30,984

10Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
4,021

4,205

1,754
3

1,745
3

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(3)
3(5)
17

Increase (decrease) in provision for directors' bonuses
Increase (decrease) in other provision

1(30)

1–

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement40

21

Depreciation
Impairment loss

benefits
Interest and dividend income

5655(34)(34)

Interest expenses
Loss on retirement of non-current assets

53256813

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

(193)
(216)

(2,129)(158)

Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in prepaid expenses

157(14)

2,014
(13)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes

(8)
(64)

544
100

Increase (decrease) in accrued expenses
Decrease (increase) in other assets

65(96)

94(266)

Increase (decrease) in other liabilities
Other, net

53
32

585

5,604

6,368

Interest and dividend income received
Interest expenses paid

34(52)

34(68)

Income taxes paid

(892)

(1,383)

Net cash provided by (used in) operating activities

4,692

4,950

Purchase of property, plant and equipment
Purchase of intangible assets(3,850)(59)(11,759)(10)

Purchase of investment securities
Proceeds from sales of investment securities

(19)
–(62)
210(0)(3,929)(11,811)

Proceeds from long-term loans payable
Repayments of long-term loans payable324(1,488)

6,986(1,099)Proceeds from issuance of common shares
Cash dividends paid

6,486
(440)

–(674)

Proceeds from installment plan
Repayments of installment payables

2,063(1,338)2,708(1,768)

(3)

1

5,603

6,154

6,366(707)Cash and cash equivalents at beginning of period

7,412

13,779Cash and cash equivalents at end of period

13,77913,072

Subtotal

Cash flows from investing activities

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

11