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, 2019
(Based on Japanese GAAP)
November 8, 2019
Company name:KENKO Mayonnaise Co., Ltd.

Stock exchange listing: Tokyo
Stock code:

2915

Representative:

President and Representative Director

Inquiries:

URL

https://www.kenkomayo.co.jp
Takashi Sumii

Managing Director and Chief Executive

Kazuhiro Ito

Officer

Scheduled date to file Quarterly Securities Report:

TEL

03-5318-7530

November 11, 2019

Scheduled date to commence dividend payments:

December 2, 2019

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:Yes(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, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2019
Six months ended September 30, 2018

Millions of yen
37,76637,409Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
1.0
1,490
2.4
1,590
5.2
1,104
22.2
1.0
1,456 (32.4)
1,512 (30.8)
903 (39.4)

Earnings per share

Diluted earnings per share

Yen
67.03
54.84

Six months ended September 30, 2019
Six months ended September 30, 2018

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
65,42070,105

As of September 30, 2019
As of March 31, 2019

Equity ratio

Millions of yen
33,61932,900%51.4
46.9

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
15.00
15.00

Yen–

Yen
15.00

Yen
30.00

–

16.00

31.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Full year

Millions of yen
76,000Percentages 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
2.7
3,300
5.9
3,300
4.9
2,350
2.3
142.641

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(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:No

Changes in accounting policies due to other reasons:No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No(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, 201916,476,000 shares As of March 31, 201916,476,000 shares

Number of treasury shares at the end of the period
As of September 30, 2019578 shares As of March 31, 2019578 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201916,475,422 shares Six months ended September 30, 20182

16,475,514 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits

10,927

9,782Notes and accounts receivable - trade

13,39812,391

Merchandise and finished goods

1,900

1,806

Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts

1012

1,038

984

670

276(0)(0)27,94525,253

Buildings and structures, net

11,593

13,469Machinery, equipment and vehicles, net

11,501

13,658

Land

5,900

5,904

Construction in progress

5,921

35590

545

35,50733,614201

187

Investment securities

5,041

4,954

Deferred tax assets

287

273

1,153

1,168(32)(30)

Total current assets
Non-current assetsProperty, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets

OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

6,450

6,365

42,15940,166

70,10565,420(Millions of yen)
As of March 31, 2019

As of September 30, 2019

Liabilities
Current liabilities
Accounts payable - trade

9,648Electronically recorded obligations - operating

8,312

903

800

1,696

1,592

Income taxes payable

604

548

Other provisions

469

584

Electronically recorded obligations - non-operating

921

112

Other

6,080

4,751

Total current liabilities

20,323

16,701

10,085

9,316

468

364

Current portion of long-term borrowings

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

395

384

Other

5,931

5,033

Total non-current liabilities

16,88015,09937,20431,801

Share capital

5,424

5,424

Capital surplus

5,691

5,691

Retained earnings

20,62621,483(1)(1)

31,74032,598

Total liabilities
Net assets
Shareholders' equity

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,227

1,131

Foreign currency translation adjustment

(14)

(66)

Remeasurements of defined benefit plans

(54)

(44)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4

1,159

1,020

32,90033,61970,10565,420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, 2018

September 30, 2019

Net sales

37,40937,766

Cost of sales

28,292

28,735Gross profit

9,117

9,030

Selling, general and administrative expenses

7,660

7,539

Operating profit

1,456

1,490

Share of profit of entities accounted for using equity method

683

Interest and dividend income

2020

Other

7952

Total non-operating income

106156

Interest expenses

4652

Other

34

Non-operating income

Non-operating expenses

Total non-operating expenses

4956

1,512

1,590

Subsidy income

6322

Other14–Total extraordinary income

77

22

Impairment loss

221

Loss on disaster

150

Loss on retirement of non-current assets

10

Other–

2

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses

38

5

1,551

1,607

Income taxes

647

502

Profit903

1,104

Profit attributable to owners of parent

903

1,104

Profit before income taxes

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

ProfitSix months ended

Six months ended

September 30, 2018

September 30, 2019
903

1,104

Valuation difference on available-for-sale securities

178(96)

Remeasurements of defined benefit plans, net of tax

169(23)

(52)

171

(138)

1,074

965

1,074

965

Other comprehensive income

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
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, 2018

September 30, 2019

Cash flows from operating activities
Profit before income taxes

1,551

1,607

Depreciation

974

1,476

Increase (decrease) in provision

107

113

Increase (decrease) in retirement benefit liability

16(10)

6(103)(20)(20)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Interest expenses

4652

Decrease (increase) in trade receivables

(945)

1,007

Decrease (increase) in inventories

238

146

Increase (decrease) in trade payables

867(1,439)

Increase (decrease) in accounts payable - other129(781)

Other, net

(52)

826

Subtotal

2,919

2,875

Interest and dividends received

20

20

Interest paid

(46)

(53)

Income taxes paid

(702)

(527)

Net cash provided by (used in) operating activities

2,191

2,315

Cash flows from investing activities
Purchase of property, plant and equipment(4,175)(1,556)

Purchase of intangible assets

(20)

(33)

Purchase of investment securities

(11)

(11)

Proceeds from sales of investment securities

19–

Other, net
Net cash provided by (used in) investing activities

(1)

(0)

(4,189)(1,602)

Cash flows from financing activities
Proceeds from long-term borrowings

700–

Repayments of long-term borrowings

(593)

(873)

Dividends paid

(312)

(246)

Proceeds from installment plan

1,334

–

Repayments of installment payables(1,225)

(734)

(2)

(4)

Other, net(99)(1,858)Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(2,097)(1,145)

Cash and cash equivalents at beginning of period

13,072

10,927

Cash and cash equivalents at end of period

10,975

9,782

7