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

Material for Briefing Session
For FY 3/2023
May. 23, 2023

©2023 KENKO Mayonnaise Co., Ltd.

Table of Contents

1. Results for FY 3/2023
2. Forecast for FY 3/2024
3. Progressof Medium-Term Management Plan

©2023 KENKO Mayonnaise Co., Ltd.

２

1.Results for FY 3/2023
Director Kunikazu Shimamoto©2023 KENKO Mayonnaise Co., Ltd.

３

Highlights of the Results for FY 3/2023 (Consolidated)（millions of yen）

Net sales

FY 3/2022
Result75,647

Operatingprofit1,616

Ordinary
profit1,622

Profitattributableto owners ofparent1,211

FY 3/203(Est.)

FY 3/2023
Result

80,700*1)

326Comparedwith theestimate

Results
YoY

82,363

＋2.1％

＋8.9%

105

-67.8%-93.5%

169-54.2%-89.6%

485＋54.2%-59.9%

*1)

370
*1)

315
*2)

* 1) Date of earnings forecast announcement: November 14, 2022
* 2) Date of earnings forecast announcement: February 13, 2023

Sales
●Net sales recovered, mainly in the food service sector, against the backdropof the lifting of restrictions on activities, etc.
●Effects of price revisions, mainly for mayonnaise
Profit●The prices of raw ingredients,
especially edible oil and eggs, soared●Rising energy costs©2023 KENKO Mayonnaise Co., Ltd.

An unprecedented
increase in costs
4

（Reference）Market Prices of Main Ingredients【Edible oil market price】【Egg market price】

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

JA Zenno, size M (Tokyo)（Yen/kg）

450

400
350

400

402

343

300
250

350

200
300

150
100

250

200

50
0

FY 3/2020 FY 3/2021 FY 3/2022 FY 3/2023

The price is still at a high level,although it seems somewhat calm.
©2023 KENKO Mayonnaise Co., Ltd.

FY 3/2020 FY 3/2021 FY 3/2022 FY 3/2023

The market soared fromthe second half of FY2022.
5

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

1H:-1,710
2H: -3,906
1H: -192
2H: -646＋4,905

1H: -100
2H:＋90＋105
1H:＋142
2H: -37

1H:＋1,803

169

2H:＋3,102

FY 3/2022

Increase in
net sales©2023 KENKO Mayonnaise Co., Ltd.

Price
increases

Manufacturing
cost

Fixed costs,
etc.

IngredientimpactFY 3/2023
6

Schedule and Impact of Price Revisions
FY 3/2022● = when to start

1Q

2Q

3Q

●

4Q

1Q

2Q

3Q

●

●

Dressing

●

●

Sauce

●

●

Mayonnaise

●

Egg

●

Salad
Japaneseside dishes（millions of yen）

FY 3/2024

FY 3/2023

FY 3/2022

Scheduled

4Q

2Q

●

●

●

●

●

FY 3/2023
1H:＋1,803

1Q

2H:＋3,102

The amount of effect on price revisions
implemented for FY 3/2023

FY 3/2023
The amount of effecton consolidated ordinary profit

4.9billion

Effect of FY 3/2023

The amount of effect on price revisions
implemented for FY 3/2022

Approx. 1.5 billion(JPY)

Effect of FY 3/2022
Approx. 3.5 billion
(JPY)

1Q

2Q

©2023 KENKO Mayonnaise Co., Ltd.

3Q

4Q

1Q

2Q

3Q

4Q

7

Results by Segment
YoY

FY 3/2022

FY 3/2023

75,64782,363＋8.9％

Seasoning and Processed Foods
Business

57,552

63,678＋10.6％

Delicatessen–related Business

17,232

17,733

＋2.9％

861

951

＋10.5％

1,622

169-89.6％

1,887

-235

-112.5%

Delicatessen-related Business

984

720

-26.8％

Other

-57

14

-

-1,191-329-（millions of yen）

Net sales

Other

Profit by Segment
Seasoning and Processed Foods
Business

Adjustments©2023 KENKO Mayonnaise Co., Ltd.

％

8

Nets sales by Segment（millions of yen）

Segment

90,00082,36380,00075,64723,80370,00020,033

YoY■Seasoning andProcessed Foods
Business■Mayonnaise anddressings●Resilient demand for dining out＋10.6％

50,00019,300＋18.8％＋5.9％●Adoption of egg products
for fast food●Decline in sales of Kinshi Egg for
noodles due to the unseasonable
summer weather●Suspended sales, etc., of someproducts＋5.9％●Sales of Long-Life Salad recovered●Expand the lineup of the Japaneseside dishes "WASAI BANSAI" series
and the "Noseru Dake(simply add)
Series"

20,44640,00030,00020,000■Salads anddelicatessen
17,141

18,157■Other
1,076

1,270

■Delicatessen-related
10,000017,232

17,733861

951

FY 3/2022

FY 3/2023©2023 KENKO Mayonnaise Co., Ltd.

Business■Other (Salad Cafe)

as a result of the lifting ofrestrictions on activities●Price increases implemented●Effects of price revisions
from October 2022
●Increased awareness of“Garlic Butter Sauce"60,000■Processed egg
products

Comments＋18.0％●Expand sales of frozen delicatessen
products+2.9%●Demand for ready-to-eat meals has
stabilized as demand for dining out
recovers●Price revisions implemented＋10.5％●Recovery of visitor numbers as
a result of the lifting of restrictions on
activities●Two new stores opened

＋2.9％

9

Sales by Channels (Consolidated)
Variations
In Sales by Channels（millions of yen）

（％）

30.0%

90,00082,36380,00070,00060,00050,00075,64774,480
3,085
3,207

9,489

68,502

3,162
3,312

2,574
3,034

9,636

3,747
3,592

9,831

+18.5%

27.6%

+8.5%

26.6%

25.0%

+2.0%

24.6%

20,46315.0%

22,292
19,19521,653

+3.0%

5.0%

0

FY 3/2020

24.6%

27.1%
24.8%

16,277

FY 3/2021

Restaurants
Convenience stores
School lunch

18,611FY 3/2022

22,438FY 3/2023

Mass retailers
Bread
Other

©2023 KENKO Mayonnaise Co., Ltd.

12.7%

13.3%

12.7%

11.9%

10.0%

20,00020,556

23.8%

25.5%

27.2%

+6.2%

40,00010,000

26.7%

28.6%

19,273

19,82818,315

28.0%

20.0%

9,120

18,301

30,000

Variations in Sales Composition
by Channels+20.6%

4.3%
4.1%

0.0%

FY 3/2020

4.4%
3.8%
FY 3/2021

Restaurants
Convenience stores
School lunch

4.4%

4.6%

4.2%

4.4%

FY 3/2022

FY 3/2023

Mass retailers
Bread
Other

10

Overview of the Balance sheet (Consolidated) The equity ratio was 59.1%, almost the same level as in the previous fiscal year.
 The balance of interest-bearing debt decreased steadily(down 22.3% year on year).
 The D/E ratio improved to 0.22 times from the end of the previous fiscal year

Maintained
a soundfinancial position

due to the decrease in the balance of interest-bearing debt.
（millions of yen）

70,000FY 3/2022

70,00060,00060,00050,000Current liabilities

Current assets

16,06827,868Non-current liabilities

40,0009,153

50,000Current assets

29,651

Current liabilities

18,087

Non-current liabilities

40,0007,348

30,00030,00020,000FY 3/2023（millions of yen）

Non-current assets

33,892

Net assets

36,53920,00010,00010,00000
その他データEquity ratio（％）
Balance ofinterest-bearing debt（millions of yen）
Net debt-to-equity ratio（times）©2023 KENKO Mayonnaise Co., Ltd.

Non-current assets

32,577

FY 3/2022

Net assets

36,794FY 3/2023

59.2

59.1

10,427

8,102

0.29

0.22

11

Overview of Cash Flows (Consolidated)
Operating CF

Profit before income taxes decreased

Investing CF

Acquisition of intangible fixed assets (restructuring of core systems)

Financing CF

Steady repayment of interest-bearing debt

（millionsof yen）
（百万円）

5,000
4,000
3,000

Operating CF

Investing CF

Financing CF

Free cash flow

3,757
3,338

2,670

1,000
0
-1,000-419-856-2,000-3,000-4,000-3,281FY 3/2022©2023 KENKO Mayonnaise Co., Ltd.

FY 3/2023

Difference

Cash flows fromoperatingactivities

3,757

3,526

-231

Cash flows frominvestingactivities

-419

-856

-437

Free cash flow

3,338

2,670

-668

Cash flows fromfinancing
activities-3,281-2,822＋459

Cash and cash
equivalents
at end of period

12,441

12,289-152（millions of yen）

3,526

2,000

FY 3/2022-2,822
FY 3/2023

12

2.Forecast for FY3/2024©2023 KENKO Mayonnaise Co., Ltd.

13

Earning Estimate for FY 3/2024 (Consolidated)（Millions of yen）

Net sales
Operating profit％

Ordinary profit％
Profit attributableto owners of parent％

Earnings per share

FY 3/2023

FY 3/2024 (Est.) *AmountAmountYoY

82,36387,400

105

1,220

0.1%

1.4%

169

1,300

0.2%

1.5%

485

570

0.6%

0.7%

29.86yen

Key Issues+667.8%＋17.4％

35.05yen* Date of earnings forecast announcement: May 15, 2023

 Scheduled to implement additional price increases
 Implementing product consolidation and promoting sales of

products that can secure profits
 Greater efficiency＋6.1％

Increases inboth sales and profit
Recovery of profit levels(improved production efficiency, centralized production,
reduced management costs)©2023 KENKO Mayonnaise Co., Ltd.

14

Forecast of Net sales by Segment for FY 3/2024（Millions of yen）

90,00087,40082,36380,00070,00023,80328,33860,00050,00020,446

17,096

Segment■Seasoning andProcessed Foods
Business＋7.2％■Mayonnaise anddressings＋19.1％■Processed egg
products-16.4％●Additional price increases
implemented●Product consolidation■Salads and＋17.1％■Other

＋25.7％

delicatessen

30,00018,15720,0001,270●Response to a decrease in
the sales volume of processed

21,2581,596■Delicatessen-related
Business0

Main initiatives and issues

egg products

40,00010,000

YoY

17,733＋2.3％

18,136951

975

2023年3月期
FY
3/20232024年3月期
FY
3/2024（予想）(Est.)©2023 KENKO Mayonnaise Co., Ltd.

■Other (Salad Cafe)●Expand sales channels other thanthe cold delicatessen counter●Strengthening of Salad Cafe brand＋2.5％

products└Collaboration with fresh commodities

15

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

· Decreased factory
operating rate・ Rising energy costs
・ Product consolidation· Improved
production efficiency
The impact of restrictions on
the sales volume of egg products
and the suspension of sales forsome egg products

1,300
FY 3/2023

Price increases©2023 KENKO Mayonnaise Co., Ltd.

Decreased
sales
volumeManufacturing
cost

Fixed costs,
etc.

IngredientimpactFY 3/2024（Est.）

16

Dividend Forecast
The Company’s basic policy is to maintain continuous and stabledividends and to raise the level of dividends according tobusiness performance, while aiming to increase corporate value.

Dividends(yen/share)
Payout ratio (%)
Dividend yield (%)
Dividend on equity（DOE）（%）

40
30

Dividend(interim)
Dividend(term-end)

the dividend by 8 yen

FY
3/2018FY
3/2019FY
3/2020FY
3/2021FY
3/2022FY
3/2023FY
3/2024(Est.)

37

30

31

20

17

17

25

21.2

21.5

24.8

22.6

22.9

56.9

71.3

1.06

1.37

1.52

1.06

1.23

1.41

-

2.1

1.5

1.5

0.9

0.8

0.8

-

15

16

19

20
10

FY 3/2024
Scheduled to increase

12
18

15

15

FY 3/2019

FY 3/2020

0
FY 3/2018

15
10

9

8

7

8

10

FY 3/2021

FY 3/2022

FY 3/2023

FY 3/2024(Est.)

Dividend yield = Dividend per share (total)/Share price (closing price) as of March 31 of each year x 100
Dividend on equity (DOE) = Dividend per share (total)/((Beginning of fiscal year + Year-end consolidated net assets per share) ÷ 2) × 100©2023 KENKO Mayonnaise Co., Ltd.

17

3.Progress of MediumTerm Management Plan

©2023 KENKO Mayonnaise Co., Ltd.

18

Basic Policy in the Medium-Term Management Plan

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

Innovation

StructuralreformGlobalbusiness

Sustainability Policy
Environment

Society

Health●Greenhouse gases●Ingredients●Container/

Packaging materials●Health
●Human resources

Transformation for improving corporate value
and achieving sustainable growth©2023 KENKO Mayonnaise Co., Ltd.

19

Four themes in the Medium-Term Management Plan
Four Themes
B to B to C

Contribute by communicating
our know-how to consumers

Innovation

Create a New KENKO based onawareness of environmental
conservation looking ahead tothe global environment of the future
Implement reform to growthe core business

GlobalbusinessStrengthen the foundationfor our global business©2023 KENKO Mayonnaise Co., Ltd.

Main initiatives
Dissemination of
products and know-how

Strengthening of
the EC sites
Consideration of
New KENKO
Expansion of Japanese
local cuisine

Personnel system
reformRestructuring ofcore systems
Overseas bases
Export sales

20

B to B to C Results of the Second Year
Dissemination of
products and know-how
 Salad Cafe

- A size that can be easily tasted 16 new products were added

Seize opportunities to gain recognition by
opening new stores◆ New store openings
November: Shinjuku, Tokyo
February: Aobadai, Kanagawa◆Special event stall (Delicatessen, Sandwich and Sweets)
JR Kyoto Isetan and Matsuzakaya Takatsuki store
Shinjuku Takashimaya and Abeno Harukas
Kintetsu Main Store Cooking lesson

Resuming face-to-face lessons
via video and online

Ranked 1stin thenational
sponsoringorganization
ranking

Kitchen Space 831
A total of 90 people attended per year

from December 2022 face-to-face lessons resumed (full)

Ranked 4th

in the national
popular course
ranking forcooking andgourmetIn STOAKA web-siteranking
Result of June 2022

 Food education activities

・ Farm Love with
Farmers & Kids Festa 2022
・ Suginami Food Education Course (2 times)

 Use of SNS

Communication tool to expand fans
• Build contacts with users→About 114,000 followers(Total Twitter/Instagram)Strengthen sales todrugstores and mass retailers

Strengthening of the EC sites
Create an environment where our products can bepurchased at any time

[EC sales (thousand yen)]*Total EC sites(KENKO Mayonnaise and 2 major companies)

The
numberof items
handled64,21567,895436• Salad Cafe Insta Live (from May)
More than 2,000 views
The number of followers
increased by approx. 370.
FY 3/2020©2023 KENKO Mayonnaise Co., Ltd.

FY 3/2023

21

Results of the Second Year

Innovation

Plant-based food products made mainly from plant ingredients
Cherish Japanese traditions: Discover and develop products that make use of the idea.

Plant-based food mainly from plantingredients

HAPPY!! with VEGE

To a world where you can eat Japanese foodanytime, anywhere

Expansion of local cuisine
New products in February 2023［“WASAI BANSAI🄬“ series,
sales weight (tons)］

＋11%

Total

Initiatives for New KENKO

25items

FY2021●Group General Fair

●Regional Revitalization

Introducing our know-how, technologies,
and new products“Stepping into tomorrow,leading to the future”

Local production for local consumption andupcycling food

1,553 visitors●Improve product value
Development of salad creamy dressing
with processability and functionality
Kanto Diet Cookrelease of the 30% off calorie
delicatessen series©2023 KENKO Mayonnaise Co., Ltd.

FY2022▶”Fukuyama Factory Manager Series”
Certified as the “8th Fukuyama Brand”
EC site opened and expanded nationwide▶Joint development with Senrei (Onagawa-cho, Miyagi)"Garibata Soy Sauce of Scallop String”
Drugstores and mass retailers
in the Tohoku region
Now on sale (at Yakuodo, Yamazawa)

22Structural reform

Results of the Second Year
Programs and Systems

Improvement activities
Through cross-departmental activities, progressstatus and success stories are visualized andactivities are revitalized.

Building a foundation for operations in FY2024

・ Personnel system reform<Objective> Aim at the growth of individuals andthe happiness of workers, leading to
the sustainable development of thecompany.

·Identify issues for improvement andloss reduction➡172 issues were extracted

・ Reform of core systems

49% of the overall issues

were resolved* In the previous fiscal year,
37.3% of the issues were resolved.
2021

2022

2023

<Objective> Strengthening of coordination ofindividualized systems·Strengthening of IT in response tochanging legislation·Response to the shortage ofIT human resources, etc.

Worker-friendly
workplace environment〈Proportion of female managers〉

（％）

17.3

·The ratio of women in managerial positions increased by
2.1% from the previous year.
·Introduction and continuation of a system that responds tolife events
Promotion of taking childcare leave for moms and dads
“Maternity and Childcare Leave Consultation Desk” was established in June.
We are strengthening awareness within the company and promoting
understanding of the system.

·Improve organizational capabilities and skills through training
tailored to each level
Third-year Young Career Training, Female Career Training, etc.
©2023 KENKO Mayonnaise Co., Ltd.

14.8 15.2

9.1

FY201810.0 10.3

FY2019FY2020

FY2021

FY2022

FY202323

Global businessResults of the Second YearFor export

Overseas bases•Export sales increased 7%

year on year

•Profit increased year-on-year inboth Indonesia and North America

EU area87%

East Asia
110%

Middle East and Africa
134%
Southeast Asia

North
America
110%

81%

Oceania
121%

2021

2022

Indonesia
North America

Increased corporate value•Disclosure of the English versionof the Integrated Report•Renewal of the English version of the website(number of accesses increased by 84% compared to before renewal)•New product Sesame Mayo Sauce
released shelf life 300 days
•Five items with extended shelf lives
realized 300 days or more
©2023 KENKO Mayonnaise Co., Ltd.

•All seven factories have acquired
the certification of international
standard FSSC22000(Food Safety System Certification)•Secure and develop
global human resources

24

Sustainability

Sustainability Policy

Company Philosophy
Environment

Society

HealthTo becomean environmentallyfriendly company

To bring happinessto stakeholders

For healthy lives

Carbon neutrality

Happiness of workers

Recycling-based economy

Harmony with local communities
and society

To provide safe,
reliable products
To promote health-oriented
management

Creation of a sustainable society
Key Issues
Greenhousegases

Ingredients©2023 KENKO Mayonnaise Co., Ltd.

Container/
Packaging materials

HealthHuman
resources
22

Sustainability

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●Reduce greenhouse

FY2021

gas emissions-2.5%-8.1%※(Target for FY2022 -3.5%)

FY2022-8.1%

FY2023

Goals for FY2023
Revised target

Reductionof CO2-9.1% ※

(Initial target -3%)

Target●Switching to alternative refrigerant

93% Completion (Target for FY2022 93%)

Alternative
CFCs

Promote switching toalternative refrigerant●shift to biomass ink

Use ofsustainable
packagingmaterials

for outermayonnaise packaging●No more boxes

packaging material

for some productNew packaging for“KENKO Restaurant
taste Mayonnaise”└（in a box）

Reduction ofwaste●Lightweight●Expand merchandise,outer bags of which are switchedto biomass ink└（no box）● Waste reduction -12.4% ※Reduction of waste and processing losses(Target for FY2022 -9.6%)

Breakdown©2023 KENKO Mayonnaise Co., Ltd.

Sludge reduction

Revised target-13.4% ※(Initial target -5%)
Utilization of animal and26
plant residues※ Basic unit compared to FY2019

Sustainability

Announcement of Our Endorsement of
TCFD Recommendations

March 2023
The Company declared its endorsement of the “Task Force on Climate-related
Financial Disclosures (TCFD)” recommendation.
Based on the TCFD recommendation, we will analyze therisks and opportunities that climate change brings to ourbusiness and disclose information on our corporate<Risks and opportunities based on climate change scenarios (partial)>
website.
See here for details: (Only Japanese language)https://www.kenkomayo.co.jp/cms/img/pages/csr/eco/tcfd2023.pdf

Item

Risks
Transition
Risks

Disclosed content
Governance of the organization related toGovernance climate-related risks and opportunities
Strategy

The actual and potential impact of climate-relatedrisks and opportunities on the organization’s
business, strategies and financial plans

How the organization selects, manages andRisk
assesses climate-related risks
Management
Indicators and targets used to assess and manage

Metrics and climate-related risks and opportunities
Targets©2023 KENKO Mayonnaise Co., Ltd.

Physical
Risks

Risk
Business impact
・ Fluctuations in

Measures andopportunities· High efficiency of resources,

energy costs

such as energy conservation· Energy· Selection of packaging

conservationmaterials and materials with

policyconsideration for·Development of

the environment

low-carbon· Development of plant-based

technologies

food· Changes incustomer
behavior andreputation· Dissemination of information

・ Fluctuations in
raw material costs· Decentralization of raw
material production areas· Strengthening ofcooperation with suppliers· Formulation of a BCP
based on the assumptionof meteorologicaldisasters· Intensifying
abnormal weather
conditions

on implementation of climatechange initiatives

27

Important Issues for FY 3/2024
Consolidated net sales:

Consolidated ordinary profit:

87.4 billion yen

1.3 billion yen

Recovering profit is
our top priority.
(Ⅱ) Productconsolidation(Ⅰ) Price increases●Review price increases
based on an appropriate
assessment of raw material
market conditions●Selection and sales
promotion of productsthat can secure profits

FDF prices will be revised from July 2023.

B to B to C

Innovation(Ⅲ) Greater efficiency●Increased production
efficiency●Centralized production●Reduced management
costs

Globalbusiness

StructuralreformSustainability

The external environment
Soaring raw
material costs

Rising energy
costs

Logistics 2024
Problem©2023 KENKO Mayonnaise Co., Ltd.

Increased
inbounddemandRecovery of
the flow ofpeopleTalentShortage

Globalwarming

Increased
healthawareness

28

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©2023 KENKO Mayonnaise Co., Ltd.

29