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, 2021
(Based on Japanese GAAP)

November 12, 2021

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:
Director
Scheduled date to file Quarterly Securities Report:

Kenji Tachibana
November 12, 2021

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

December 2, 2021
Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-5941-7682(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, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2021
Six months ended September 30, 2020

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%
37,487
11.8
700
31.9
699
12.2
456
8.2
33,533 (11.2)
530 (64.4)
623 (60.8)
422 (61.8)
Earnings per share

Diluted earnings per share

Yen
27.97
25.62

Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2021
As of March 31, 2021

Net assets

Millions of yen
62,54062,320Equity ratio

Millions of yen
35,83635,577

%
57.3
57.1

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
8.00
7.00

Yen–

Yen
12.00

Yen
20.00

–

8.00

15.00

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
73,2006.9
1,430 (27.6)
1,500 (26.9)
1,050 (28.0)
63.73

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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:

Yes
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, 2021

16,476,000 shares As of March 31, 2021

16,476,000 shares

Number of treasury shares at the end of the period
As of September 30, 2021

200,578 shares As of March 31, 2021

578 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

16,333,755 shares Six months ended September 30, 2020

216,475,422 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

12,385
11,004

12,583
11,686Merchandise and finished goods
Work in process

1,814
8

1,909
12812
292

940
318

Raw materials and supplies
Other
Allowance for doubtful accounts

(2)

(2)

26,31727,447

12,033

11,684

10,9286,021

10,046
6,021

2
464

2
413

29,451

28,169Intangible assets
Investments and other assets

166

229

Investment securities
Deferred tax assets

5,077
190

5,444
132

Other
Allowance for doubtful accounts

1,148(31)

1,148
(30)

Total investments and other assets

6,385

6,69436,003

35,09362,32062,540Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, netLand
Construction in progress
Other, net
Total property, plant and equipment

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating
Current portion of long-term borrowings
Income taxes payable
Other provisions

7,753

9,420

673
1,499

802
1,443305
441

316
512

Other

4,330

3,802

Total current liabilities

15,004

16,297

7,141

6,190

395

5398

370

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

3,802

3,839

Total non-current liabilities

11,738

10,406

26,742

26,704

Share capital
Capital surplus

5,424
5,691

5,424
5,691

Retained earnings
Treasury shares

23,253(1)

23,512(332)

Total shareholders' equity

34,36734,295

1,268

1,548

(22)
(35)

7(15)

1,210

1,54035,577

35,83662,32062,540Total 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

4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, 2020September 30, 2021

Net sales
Cost of sales

33,53326,06437,48729,649Gross profit

7,468

7,838

Selling, general and administrative expenses

6,937

7,138

530

700

Share of profit of entities accounted for using equity method
Interest and dividend income

2521–
18

Subsidies for employment adjustment
Other

4360

139

Total non-operating income

15059

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

4337

Share of loss of entities accounted for using equity method
Other–
1315
7

Total non-operating expenses

5760623

699

Gain on sale of investment securities
Subsidy income

7716

Total extraordinary income

157Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

30

Loss on sale of investment securities
Loss on valuation of investment securities

2––
4

Other

2–

Total extraordinary losses

85Profit before income taxes

630

701

Income taxes

208

244

Profit422

456

Profit attributable to owners of parent

422

456

5

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income(Millions of yen)Six months ended

Six months ended

September 30, 2020

September 30, 2021
422

456

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

272
10279
19

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

(76)

30

Total other comprehensive income

206

330

628

786

628

786

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, 2020

September 30, 2021

Cash flows from operating activities
Profit before income taxes

630

701

Depreciation
Increase (decrease) in provisions

1,498
14

1,40070

16

11Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income

23(21)(18)

Interest expenses
Subsidies for employment adjustment

43(43)

37(1)Subsidy income
Decrease (increase) in trade receivables(7)
378(6)(681)

Decrease (increase) in inventories
Increase (decrease) in trade payables

471(271)

(225)
1,795

Increase (decrease) in accounts payable - other
Other, net

(359)
224

38(487)

Subtotal

2,576

2,638

Interest and dividends received
Interest paid

99(43)

81(37)

subsidies received,etc
Income taxes paid

50(362)7(248)Net cash provided by (used in) operating activities

2,320

2,441

Cash flows from investing activities
Purchase of property, plant and equipment

(602)

(149)

Purchase of intangible assets
Purchase of investment securities

(11)
(12)

(88)
(10)

Proceeds from sale of investment securitiesOther, net

1222

2(0)

(591)

(247)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings

70–

Repayments of long-term borrowings
Purchase of treasury shares

(768)
–

(1,006)(331)

Dividends paid
Repayments of installment payables

(262)
(684)

(197)
(457)

Other, net

(3)

(3)

(1,649)(1,996)

79

197

Cash and cash equivalents at beginning of period

10,747

12,385

Cash and cash equivalents at end of period

10,827

12,583

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

7