KENKO Mayonnaise Co., Ltd.

[Securities code: 2915]

Material for Briefing Session
For FY 3/2024 1H
Nov.22,2023©2023 KENKO Mayonnaise Co., Ltd.

Table of Contents

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

©2023 KENKO Mayonnaise Co., Ltd.

２

1.Results for FY 3/2024 1H©2023 KENKO Mayonnaise Co., Ltd.

３

Highlights of the Results for FY 3/2024 1H (Consolidated)▶Net sales up 7.4%, ordinary profit up 31.8%• Recovery in sales, centered on food service sector• Expansion of sales, centered on products for use in
fast food• Penetration of price increases
FY 3/2023 1H（millions of yen）

Net sales 1H
recorded all time highFY 3/2024 1H

ResultResultYoY

Net sales

40,75043,763+7.4%

Gross profit

8,045

8,079

+0.4%

Selling, general andadministrative expenses

7,425

7,296

-1.7%

（%）

1.5%

620

782

+26.2%

Ordinary profit
（%）

642

1.6%

847

+31.8%

Profit attributable toowners of parent

482

542

+12.4%

29.66yen

33.65yen(%)(%)

Operating profit

Earnings per share©2023 KENKO Mayonnaise Co., Ltd.

19.7%

18.2%

18.5%

16.7%

1.8%
1.9%

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

FY3/2023 1H

Price
increases

99-25

Fixed costs,
etc.

Manufacturing
cost

-272

Decreased
sales
volumeIngredientimpactFY3/2024 1H

YoY ＋204million yen*Rounded down to the nearest million yen©2023 KENKO Mayonnaise Co., Ltd.

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Nets sales by Segment（millions of yen）

Segment

50,00043,76345,000Foods Business

40,75040,00013,65435,00011,598

10,767

8,951

20,00015,0008,699

10,888725

586

10,000

9,090

8,608

5,000

0

■Mayonnaise anddressings■Processed egg
products

30,00025,000■Seasoning and Processed489
FY3/2023
1H453
FY3/2024
1H©2023 KENKO Mayonnaise Co., Ltd.

YoY
＋8.1％

＋17.7％-16.9％

Main Points
 Effects of price increases
 Expansion in sales of products for use
in fast food Effects of price increases
 Expansion in sales of mayonnaise formass retailers
 Menu proposals with adjusted egg
usage Impact of supply restrictions■Salads anddelicatessen＋25.2％

 Expansion of low volume salads under
B to B to C strategy
 Strong performance of potato salad,the mainstay product■Other＋23.7％●Expansion of frozen meat products andfrozen potatoes■Delicatessen-relatedBusiness■Other(Salad Cafe)＋5.6％

 Effects of price increases
 Development and sale of high unit
price products
 Expansion of sales categories andchannels-7.5%

 Closure of 1 store Decrease in department store delidemand due to recovery ofrestaurants

６

Results by Segment（millions of yen）

FY 3/2023 1H

FY 3/2024 1H

YoY

40,75043,763Seasoning and Processed Foods Business

31,651

34,220+8.1%

Mayonnaise and dressings

11,59813,654+17.7%

Processed egg products

10,767

8,951-16.9%

Salads and delicatessen

8,699

10,888+25.2%

586

725+23.7%

8,608

9,090

+5.6%

Other *salad Cafe

489

453

-7.5%

Profit by segment

642847

Seasoning and Processed Foods Business

275

392

+42.8%

Delicatessen-related Business

376

451

+19.8%

615+157.7%-15-12ーNet sales（百万円）*Business of KENKO Mayonnaise

OtherDelicatessen-related Business*Business of consolidated
subsidiaries

OtherAdjustments©2023 KENKO Mayonnaise Co., Ltd.

+7.4%+31.8%

７Sales by Channels (Consolidated)（millions of yen）

Variations
In Sales by Channels
Other

50,00043,76340,000

Variations in Sales Composition
by Channels

40,75037,76637,487+17%

Restaurants

29%

30%

Mass
retailers

28%

School lunch-5%

Convenience
storesBread22%+9%

33,53320%
Mass retailers

30,000

+11%

Bread

Convenience
stores

20,000-8%

10,000

12%

10%
Other

Restaurants

5%

+19%

4%

School lunch
0FY3/2020
1H

FY3/2021
1H

FY3/2022 FY3/2023 FY3/2024
1H
1H1H©2023 KENKO Mayonnaise Co., Ltd.

0%

FY3/2020
1H

FY3/2021
1H

FY3/2022
1H

FY3/2023
1H

FY3/2024
1H

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Overview of the Balance sheet(Consolidated)▶Assets: Increase in accounts receivable – trade and cash
and deposits▶Liabilities: Increase in accounts payable – trade andelectronically recorded obligations - operating▶Decrease in interest-bearing debt
＊ Includes long-term accounts payable-other（millions of yen）

FY 3/2023

Equity ratio 56.1%
Stable financial foundation

1H FY 3/2024

Change fromFY 3/2023
end

Current assets

29,65135,112+18.4%

Non-current assets

32,57732,123-1.4%

62,22967,236

+8.0%

8,102

7,066

-12.8%

25,43529,535+16.1%Net assets

36,79437,700+2.5%

Total liabilities and net assets

62,22967,236+8.0%

2,281.75yen

2,337.97yen

59.1%

56.1%

AssetsTotal assets
Liabilities

Balance of interest-bearing
debt＊

Net assets per share
Equity ratio©2023 KENKO Mayonnaise Co., Ltd.

-3.0%
９

Overview of Cash Flows （Consolidated）（millions of yen）

FY3/2023 1H

FY 3/2024 1H

Main Points
・Increase in profit

Cash flow fromoperating activities

2,319

3,157

before income taxes
・Increase in trade payables andtrade receivables

Cash flow frominvesting activities

-193

-427

Cash flow fromfinancing activities-1,330-1,198・Repayments of long-termborrowings

Cash and cash equivalents
at end of period

13,23813,820Up 582 million yen YoY©2023 KENKO Mayonnaise Co., Ltd.

・Purchase of property, plant andequipment
・Purchase of intangible assets

102．Forecast for FY3/2024©2023 KENKO Mayonnaise Co., Ltd.

11

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

Net sales

FY 3/2023

FY 3/2024(Est.)※Amount

AmountYoY

82,36387,400Operating profit

105

1,220％

0.1%

1.4%

169

1,300

0.2%

1.5%

485

570

0.6%

0.7%

29.86yen

35.05yen

Ordinary profit％
Profit attributable toowners of parent％

Earnings per share

Key Issues＋6.1％-+667.8%＋17.4％* Date of earnings forecast announcement: May 15, 2023

 Penetration of price increases
 Product consolidation
 Greater efficiency(Improve production efficiency, centralized production, and reduced

Priority issue
Ensure profit

management costs)©2023 KENKO Mayonnaise Co., Ltd.

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

90,00087,40082,363■Seasoning and80,000

28,33823,80370,00017,096

20,44640,00030,00018,15720,0001,270

10,000021,258
1,596
18,136

17,733951

Processed Foods
Business■Mayonnaise anddressings

60,00050,000

Segment

975

FY3/2023
2023年3月期

FY3/2024
2024年3月期(Est.)（予想）©2023 KENKO Mayonnaise Co., Ltd.

YoY

＋7.2％

Main points in 2H
 Penetratio n ofpric e inc reas e Consolidat io n of produc ts
 Centr alizatio n of produc tio n＋19.1％■Processed egg
products-16.4％■Salads anddelicatessen＋17.1％■Other＋25.7％

 Expansi on in s ales ofprocessed egg produc ts
 Develop m en t and s ale ofproduc t s using plantingredients■ Delicatessen-related＋2.3％

 Development and sale ofhigh unit price products
 Expansion of sales
categories and channels■Other (Salad Cafe)＋2.5％

 Strengthening of Salad CafebrandBusiness13

Forecast for Changes in Ordinary Profit(Consolidated)-7,139（millions of yen）

-734-1,131-185-5,089FY 3/2023

Priceincreases

Decreased
sales
volumeManufacturing
cost

Fixed costs,etc.

IngredientimpactFY 3/2024（Est.）

YoY ＋1,131 million yen*Rounded down to the nearest million yen©2023 KENKO Mayonnaise Co., Ltd.

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Shareholder Returns and Dividend Forecast＜Basic Policy＞
To maintain and continue stable dividends while aiming toincrease corporate value, raising the dividend level based on
business performance

FY 3/2024✓Interim dividend
10yen/share✓Term-end dividend
15yen/shareDecided

FY
3/2018FY
3/2019FY3/2020

FY
3/2021FY
3/2022FY
3/2023FY
3/2024（Est.）

37303120171725

Payout ratio（％）

21.2

21.5

24.8

22.6

22.9

56.9

71.3

Dividend yield（％）

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

1612

1098

78

Dividends（yen/share）

Dividend on equity（DOE）（%）

Forecast(yen/share)■Dividend(term-end)■Dividend(interim)

40
35
30
25
2015
105
019

1815151510
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.

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3.Progress ofMedium-Term Management Plan

©2023 KENKO Mayonnaise Co., Ltd.

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Basic Policy in the Medium-Term Management Plan

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

Sustainability Policy

Structuralreform

Environment

Globalbusiness

HealthSociety●Greenhouse gases●Ingredients●Container/Packaging materials●Health●Human resources

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

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B to B to C

Results of the Third Year, 1H▼Use social media
Communication tool for fan growth●Build user contact points→ Approx. 128,000 followers▼Strengthen e-commerce sites
Develop environment that allows our products
to be purchased any time
●E-commerce site sales (thousand yen)
*Total of KENKO Mayonnaise and 2 major companies’ e-commerce sites)

80,000 (Target)*Total of X (formerly Twitter) and Instagram●Implemented campaign via X (formerly Twitter)

Items handled
Approx. 360

FY201967,895

FY2023●Strengthen sales of popular product assortments

Won Blockbuster Processed Food for Industrial Use Award!
“Kaoru Truffle” series
Won 27th Blockbuster Processed Food forIndustrial Use Award(Organized by THE JAPAN FOOD JOURNAL Co., Ltd.)©2023 KENKO Mayonnaise Co., Ltd.

●Winning points• Easy to create a luxury feel and add
value to a menu
• Highly versatile allowing enjoyment
with a wide range of menus

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Innovation

Results of the Third Year, 1H▼New product launch “FDF Plus”▼Development of plant-based foodsmainly made from plant ingredients＼The Company’s first long-life salad／
Delicious way to reduce food waste with long 90-day shelf life

Hopes for a global environmentfriendly future
Cherish Japan’s traditional
foods
Development of egg-like processed foods
using plant ingredients
Collaboration and co-development with UMAMI
UNITED JAPAN Ltd.

Ministry of Agriculture, Forestry and Fisheries“Loss-non mark”▼Present recipes in response to soaring egg prices
When egg prices soared, featured products and menus
to replace egg salad on the Company’s website“Marude Tomago no Salad”(Launched October 16)

 Deliciousness of eggs for all Egg-free Based on plant-derived ingredients out ofconsideration for the future environment▼Environmental activities●KYUSHU DIET COOK
Support for “MORIKAWAKAITO
Project” (run by Saga Prefecture)

Egg salad＋potato salad
sandwich

Egg salad＋macaroni salad
sandwich©2023 KENKO Mayonnaise Co., Ltd.

Forest conservation activities at“KYUSHU DIET COOK MIRAI NO
MORI”

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Structural reform Results of the Third Year, 1H▼Export sales YoY＋24%▼Structures and systems
・Lead up to start of operation in FY2024• Development of personnel system• Renewal of core systems

Global business

Progress onschedule

Europe+151％

EastAsia+15%▼Human capital management initiatives
・Human resource development• Next-generation management • On-the-job trainer
trainingtraining• Career training for women• E-learning

・Support systems for balancing work with parenting• Uploading of materials explaining systems toemployee website• Establishment of in-house helpdesk• Implementation of individual interviews, including
supervisors▼Strengthening corporate governance• Implementation of executive coaching in collaborationwith outside specialists• Implementation of officer study sessions, mainly foroutside officers• Election of two female Directors©2023 KENKO Mayonnaise Co., Ltd.

AmericasMiddle East,Africa, otherSE Asia

-26％+35%+50%

Oceania andPacific+58％▼Launch of two new export products• Creamy Golden Sesame Dressing 200ml• Creamy Nuts Dressing 200ml▼Stable procurement of ingredients• Strengthening of collaboration withoverseas suppliers
Mexico, Vietnam, Sri Lanka, Brazil, etc.

▼Strengthening dissemination ofinformation overseas• Launch of official English language
Instagram account (August 8)

Featuring KENKOMayonnaise products
and recipes!

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Sustainability

Sustainability Policy

Company Philosophy
SocietyHealth

To becomean environmentallyfriendly company

To bring happinessto stakeholders

For healthy lives

Carbon neutrality

Happiness of workers

To provide safe,
reliable products

Environment

Recycling-based economy

Harmony with local communities
and society

To promote health-oriented
management

Creation of a sustainable society
Key Issues
Greenhousegases

Ingredients©2023 KENKO Mayonnaise Co., Ltd.

Container/
Packaging materials

HealthHumanresources

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Sustainability

Goals for Sustainability

Reaching Medium- to Long-Term Goals and Strengthening Initiatives▶ Sustainability Promotion Office Established in April 2022
<Goals are reviewed according to achievement level and social and environmental changes>

Goals
Reduction ofgreenhousegases(*) Compared to FY2019 intensity

Use ofsustainable
packagingmaterials

Results of FY2022●Reduction of greenhouse gases
Results -8.1% （*）●Switching to alternative refrigerant

93% Completion●shift to biomass ink

for outermayonnaise packaging●Reduction ofgreenhouse gases

Full-year goal -9.1%（*）

1H results -6.9%（*）

 Plan for 99% completion of shift to alternaterefrigerants• KENKO Restaurant taste
Mayonnaise• Sesame Mayo Sauce• Smile Table “fullness”●No more boxes● Expand merchandise,outer bags of which areswitched to biomass ink●Lightweightpackaging material

for some product└（in a box）

Reduction ofwaste

Goals for FY2023●Reduction of waste
Results -12.4% （*）• Improvement of yield• Reduction of sludge• Utilization of animal(*) Compared to FY2019 intensity
residues©2023 KENKO Mayonnaise Co., Ltd.

Thinner film
Completed switch
for 93% of target products└（no box）●Reduction of waste Full-year goal -13.4%（*）

1H results -17.1%（*）
Reuse of eggshells

Feed (potato peel)
manufacturing plant

Since 1H 2019
1,878t reduction

22

FY 3/2024 Full-Year Targets
Medium-Term Management Plan (April 2021 to March 2024)
B to B to C

Globalbusiness

Structuralreform

Innovation

Sustainability

Top priority is recovering profit(1)Price increases• Price revisions of egg products sinceMarch 2023
• Price revisions of FDF and Japaneseside dishes since July 2023

(2)Product consolidation• Selection and sales promotion ofproducts that can secure profits

Consolidated net sales
87.4 billion yen(3)Greater efficiency••••

Increased production efficiency
Centralized production
Reduced management costs
Promotion of cross-departmental
operational streamlining

Consolidated ordinary profit
1.3 billion yen

New Medium-Term Management Plan commencing April 2024
Plan to report details at financial results presentation in May 2024
©2023 KENKO Mayonnaise Co., Ltd.

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For Inquiries• Contact information
Publicity & IR Section
Public Relations Department,
Corporate Planning Division (Tokyo H.Q.)– E‐mail: ir@kenkomayo.co.jp• 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.
©2023 KENKO Mayonnaise Co., Ltd.

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