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 Six Months Ended September 30, 2018
(Based on Japanese GAAP)
November 9, 2018
Company name:KENKO Mayonnaise Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

2915
URL https://www.kenkomayo.co.jp
President and Representative Director
Takashi Sumii

Inquiries:

Managing Executive Officer and General
Manager Corporate Planning Office

Atsushi Kyogoku

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 13, 2018
December 3, 2018

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

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

1. Consolidated financial results for the six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)
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%
Six months ended September 30, 2018
37,4091.0
1,456 (32.4)
1,512 (30.8)
903 (39.4)
Six months ended September 30, 201737,0212.8
2,152 (13.1)
2,184 (12.3)
1,489 (11.9)
Earnings per share

Diluted earnings per share

Yen
54.84
90.43

Six months ended September 30, 2018
Six months ended September 30, 2017

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
65,72764,837

As of September 30, 2018
As of March 31, 2018

Equity ratio

Millions of yen
31,74530,984%48.3
47.8

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
18.00
15.00

Yen–

Yen
19.00

Yen
37.00

–

15.00

30.00

Year ending March 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)

Net sales

Full year

Millions of yen
74,500Percentages 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
2.4
2,920 (30.0)
3,000 (27.7)
2,270 (21.1)
137.781

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) 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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2018

16,476,000 shares As of March 31, 2018

16,476,000 shares

Number of treasury shares at the end of the period
As of September 30, 2018493 shares As of March 31, 2018

441 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

16,475,514 shares Six months ended September 30, 20172

16,475,718 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

13,072
13,566

10,975
14,511

Merchandise and finished goods
Work in process

1,866
10

1,636
13

Raw materials and supplies
Other

1,100
504

1,089
717

Allowance for doubtful accounts
Total current assets

(0)

(0)

30,121

28,943

Non-current assets
Property, plant and equipment
Buildings and structures, net

9,676

9,782

Machinery, equipment and vehicles, net
Land

5,904
5,978

8,198
5,900

Construction in progress
Other, net

8,543
363

7,922
476

Total property, plant and equipment

30,46632,279Intangible assets
Investments and other assets

219

239

Deferred tax assets
Other611
3,455

560
3,741

Allowance for doubtful accounts

(36)

(36)

Total investments and other assets

4,030

4,265

34,71636,78464,83765,727

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating

9,940
825

10,622
1,010

Current portion of long-term loans payable
Income taxes payable

1,165
866

1,024743

Other provision
Other475
8,034

583
6,517

Total current liabilities

21,307

20,502

Non-current liabilities
Long-term loans payable

7,131

7,379

365
989

388
996

Other

4,059

4,715

Total non-current liabilities

12,546

13,48033,85333,982

Capital stock
Capital surplus

5,424
5,691

5,424
5,691

Retained earnings
Treasury shares

18,890(1)

19,480(1)

Total shareholders' equity

30,00430,595

1,064

1,242

2
(87)

(21)
(71)

Net defined benefit liability
Other provision

Total liabilities
Net assetsShareholders' 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

4979

1,150

30,984

31,74564,83765,727

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018Net sales
Cost of sales

37,021
27,44537,40928,292Gross profit

9,576

9,117

Selling, general and administrative expenses

7,423

7,660

Operating profit

2,152

1,456

Interest income
Dividend income

019020Share of profit of entities accounted for using equity method
Other–
55

679

Total non-operating income

74

106

30

46

75–
3

Non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses

4349

2,184

1,512

Subsidy income
Other

8063
14

Total extraordinary income

877

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

51

Loss on disaster
Impairment loss–11522

Total extraordinary losses

738

2,185

1,551

696

647

Profit1,489

903

Profit attributable to owners of parent

1,489

903

Profit before income taxes
Income taxes

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2017

September 30, 2018

1,489903

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

19328178
16

Share of other comprehensive income of entities accounted
for using equity method

(7)

(23)

Total other comprehensive income

214

171

1,704

1,074

1,704

1,074

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

6

Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

Cash flows from operating activities
Profit before income taxes

2,185

1,551

DepreciationIncrease (decrease) in provision

923
131

974
114

Increase (decrease) in net defined benefit liability
Interest and dividend income

5(19)16(20)

Interest expenses
Decrease (increase) in notes and accounts receivable - trade30(2,978)46(945)Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

19
2,807

238
867

566
455

129(52)

4,126

2,919

19(30)

20(46)

Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid(911)(702)

Net cash provided by (used in) operating activities

3,204

2,191

Purchase of property, plant and equipment
Purchase of intangible assets(4,133)(9)(4,175)(20)

Purchase of investment securities
Proceeds from sales of investment securities

(11)
–(11)
19

Cash flows from investing activities

Other, net

(0)

(1)

(4,155)(4,189)Proceeds from long-term loans payable
Repayments of long-term loans payable

2,053
(525)

700
(593)

Cash dividends paid
Proceeds from installment plan(378)
1,353

(312)
1,334

Repayments of installment payables
Other, net(890)(1)(1,225)(2)

Net cash provided by (used in) financing activities

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

1,611

(99)

Net increase (decrease) in cash and cash equivalents

660(2,097)

Cash and cash equivalents at beginning of period

13,77913,072

Cash and cash equivalents at end of period

14,44010,975

7