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 Three Months Ended June 30, 2018
(Based on Japanese GAAP)
August 6, 2018
Company name:KENKO Mayonnaise Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

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

Inquiries:

Managing Executive Officer and GeneralManager Corporate Planning Office

Atsushi Kyogoku

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

August 7, 2018–

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

NoNo

TEL 03-5318-7530(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2018 (from April 1, 2018 to June 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%
Three months ended June 30, 2018
18,3661.1
748 (22.5)765 (22.9)
526 (22.0)
Three months ended June 30, 201718,1632.8
966 (15.4)
992 (14.7)
674 (14.6)
Earnings per share

Diluted earnings per share

Yen
31.93
40.95

Three months ended June 30, 2018
Three months ended June 30, 2017

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
65,55764,837

As of June 30, 2018
As of March 31, 2018

Equity ratio

Millions of yen
31,28230,984%47.7
47.8

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
18.00

Yen–

Yen
19.00

Yen
37.00

18.00

–

19.00

37.00

Year ended March 31, 2018Year ending March 31, 2019Year 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
Millions of yen
Six months endingSeptember 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

38,6004.3

2,080(3.4)

2,100(3.9)

1,400(6.0)

84.97

77,0005.8

4,100(1.8)

4,150

0.0

2,880

0.1

174.801

4. Notes(1) Changes in significant subsidiaries during the three months ended June 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 June 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 June 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)
Three months ended June 30, 2018

16,475,520 shares Three months ended June 30, 20172

16,475,719 shares

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

As of June 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

13,072
13,566

10,615
14,238Merchandise and finished goods
Work in process

1,866
10

1,892
12

Raw materials and supplies
Other

1,100
504

994
839

Allowance for doubtful accounts
Total current assets

(0)

(0)

30,121

28,591

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

9,676

9,915

Machinery, equipment and vehicles, net
Land

5,904
5,978

8,497
5,900

Construction in progress
Other, net

8,543
363

7,822
495

Total property, plant and equipment

30,46632,633

Intangible assetsInvestments and other assets

219

229

Deferred tax assets
Other

611
3,455

543
3,596

Allowance for doubtful accounts

(36)

(36)

Total investments and other assets

4,030

4,103

34,71636,96564,83765,557

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2018

As of June 30, 2018

Liabilities
Current liabilities
Accounts payable - trade

9,940

10,151

825
1,165

1,002
1,102

866
475

307
325

Other

8,034

7,461

Total current liabilities

21,307

20,350Long-term loans payable
Net defined benefit liability7,131
365

7,598
368

Other provision
Other989
4,059

992
4,964

Total non-current liabilities

12,546

13,92433,85334,275

Shareholders' equity
Capital stock

5,424

5,424

Capital surplus
Retained earnings

5,691
18,890

5,691
19,103(1)(1)

30,00430,217

1,064
2

1,141
(5)

Electronically recorded obligations - operating
Current portion of long-term loans payable
Income taxes payable
Other provisionNon-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive incomeValuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(87)

(71)

Total accumulated other comprehensive income

979

1,064

30,98431,282

64,83765,557

Total net assets
Total liabilities and net assets

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

Three months ended

June 30, 2017

June 30, 2018

Net sales
Cost of sales

18,163
13,486

18,366
13,704Gross profit

4,677

4,662

Selling, general and administrative expenses

3,710

3,913

966

748

Interest income
Dividend income

017–
17

Share of profit of entities accounted for using equity method
Other–
30

125

Total non-operating income

47

44

1425

32–
2

Operating profit
Non-operating income

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

20

27

992

765

Subsidy income
Other

7–

62
13

Total extraordinary income

776

Ordinary profit
Extraordinary income

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

40119619

Profit before income taxes

994

822

Income taxes

319

296

Profit674

526

Profit attributable to owners of parent

674

526

5

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2017

June 30, 2018
674

526

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

154
1477
16

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

(7)

(8)

Total other comprehensive income

161

85

836

611

836

611

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

6