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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 Year Ended March 31, 2020
(Based on Japanese GAAP)May 18, 2020
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

Managing Director and Chief Executive
Officer

Takashi SumiiKazuhiro Ito

TELScheduled date of ordinary general meeting of shareholders:June 24, 2020

Scheduled date to file Securities Report:

June 24, 2020

Scheduled date to commence dividend payments:

June 25, 2020

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:No03-5318-7530(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Net salesYear ended March 31, 2020
Year ended March 31, 2019

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
2,900(6.9)
3,003(4.5)
2,058(10.4)
3,116(25.3)
3,145(24.2)
2,296(20.2)

Millions of yen
74,48073,989%0.7
1.7

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
6.1
4.5
3.9
–
7.2
4.7
4.2

Yen
124.94139.40Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
63,767
70,105

Millions of yen
34,10332,900Cash flows fromoperating activities
Millions of yen
5,575
2,405

Cash flows frominvesting activities
Millions of yen(2,098)(8,895)

Net assets per share%
53.5
46.9

Yen
2,069.93
1,996.95(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(3,657)
10,747
4,345
10,927

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)

Total cash
Dividend payout
dividends (Total) ratio (Consolidated)

Total

Ratio of dividends
to net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

15.00
15.00

––

15.00
16.00

30.00
31.00

494
510

21.5
24.8

1.5
1.5

–––––

1–

3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

16,476,000 shares As of March 31, 201916,476,000 shares

Number of treasury shares at the end of the period
As of March 31, 2020

578 shares As of March 31, 2019578 shares

Average number of shares during the period
Year ended March 31, 2020

16,475,422 shares Year ended March 31, 2019

216,475,490 shares

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

As of March 31, 2020

AssetsCurrent assets
Cash and deposits

10,927

10,747

Notes and accounts receivable - trade

13,398

11,399Merchandise and finished goods

1,900

2,060

Work in process109

Raw materials and supplies

1,038

958

Accounts receivable - other89

127

Other

580

317

Allowance for doubtful accounts

(0)

(2)

27,94525,617

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

19,27521,047

Accumulated depreciation(7,682)(8,445)

Buildings and structures, net

11,593

12,601

Machinery, equipment and vehicles

23,35526,546

Accumulated depreciation(11,853)(13,830)

Machinery, equipment and vehicles, net

11,501

12,716

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

1,698

1,733

(1,177)(1,316)

521

416

5,900

5,903

8473

(15)

(12)

Leased assets, net

6961

Construction in progress

5,921

126

Total property, plant and equipment

35,507

31,826

201

169

5,041

4,666

Retirement benefit asset

75

151

Deferred tax assets

287

308

Guarantee deposits

362

355Insurance funds

569

560

Other

146

138

Intangible assets
Investments and other assets
Investment securities

Allowance for doubtful accounts

(32)

(26)

Total investments and other assets

6,450

6,153

42,15938,14970,10563,767

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Accounts payable - trade

9,648Electronically recorded obligations - operating

7,938

903

715

Current portion of long-term borrowings

1,696

1,513

Accounts payable - other

4,933

3,605

Income taxes payable

604

439

Provision for bonuses

435

434

Provision for bonuses for directors (and other officers)

17

16

Provision for sales rebates

17

18

Electronically recorded obligations - non-operating

921

1

Other

1,146

1,072

Total current liabilities

20,32315,757Long-term borrowings

10,085

8,571

Deferred tax liabilities

3941

468

382

Non-current liabilities

Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

395

394

5,792

4,425

98

90

16,88013,907

37,20429,664

Share capital

5,424

5,424

Capital surplus

5,691

5,691

Retained earnings

20,62622,190Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Treasury shares

(1)

(1)

31,74033,3051,227

899

Foreign currency translation adjustment

(14)

(44)

Remeasurements of defined benefit plans

(54)

(56)

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

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

41,159797

32,90034,10370,10563,767

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Net sales

73,98974,480

Cost of sales

55,77856,635Gross profit

18,21017,844

Selling, general and administrative expenses

15,094

14,944

Operating profit

3,116

2,900

Share of profit of entities accounted for using equity method

367

Rental income

1515

Interest and dividend income

3640

Other128

90

Total non-operating income

184213

Interest expenses

97

100

Foreign exchange losses

49

1

Non-operating income

Non-operating expenses

Other
Total non-operating expenses
Ordinary profit

98155

110

3,145

3,003

Extraordinary income
Gain on sales of investment securities

13–

Subsidy income

156

159

Other

562

10

Total extraordinary income

732

169

Impairment loss

44

4

Loss on disaster

222

Loss on retirement of non-current assets

19

3

Loss on cancellation of rental contracts

–

53

Other

10

3

Total extraordinary losses

96

68

Profit before income taxes

3,781

3,104

Income taxes - current1,266958

Income taxes - deferred

217

88

Total income taxes

1,484

1,046

Profit

2,296

2,058

Profit attributable to owners of parent

2,296

2,058

Extraordinary losses

5Consolidated statements of comprehensive income(Millions of yen)

ProfitFiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
2,296

2,058

Valuation difference on available-for-sale securities

163

(328)

Remeasurements of defined benefit plans, net of tax

32(2)

(16)

(30)

180(361)

2,476

1,696

2,476

1,696

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 changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

5,424

Capital surplus

Retained earnings

5,691

18,890Treasury shares(1)

Total shareholders'equity30,004

Changes during period
Dividends of surplus
Profit attributable toowners of parent

(560)

(560)

2,296

2,296

Purchase of treasury
shares(0)(0)

Net changes in items
other than shareholders'equityTotal changes during

––

1,736

(0)

1,736

5,424

5,691

20,626(1)

31,740periodBalance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofperiod

Foreign currency

Remeasurements

translationof defined benefit

adjustment

plans

1,064

2

Total accumulated
Total net assets

othercomprehensiveincome(87)979

30,984

Changes during period
Dividends of surplus(560)Profit attributable to2,296

owners of parent
Purchase of treasury(0)

sharesNet changes in items
other than shareholders'

163(16)32180

180163(16)

32

180

1,916

1,227(14)

(54)

1,159

32,900equityTotal changes during
periodBalance at end of period7

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

5,424

Capital surplus

Retained earnings

5,691

20,626

Treasury shares(1)

Total shareholders'equity31,740Changes during period
Dividends of surplus
Profit attributable toowners of parent(494)

(494)

2,058

2,058

Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during

––

1,564

–

1,564

5,424

5,691

22,190(1)

33,305

periodBalance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of
period1,227

Foreign currency

Remeasurements

translationof defined benefit

adjustment

plans
(14)

Total accumulated
Total net assets

othercomprehensive
income

(54)

1,159

32,900Changes during period
Dividends of surplus(494)

Profit attributable to2,058

owners of parent
Purchase of treasury–shares
Net changes in items
other than shareholders'

(328)

(30)

(2)

(361)

(361)

(328)

(30)

(2)

(361)

1,202

899

(44)

(56)

797

34,103equityTotal changes during
periodBalance at end of period8Consolidated statements of cash flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Cash flows from operating activities
Profit before income taxes

3,781

3,104

Depreciation

2,077

2,966

Impairment loss

444

Loss on tax purpose reduction entry of non-current assets–851

Increase (decrease) in allowance for doubtful accounts

(4)

(3)

Increase (decrease) in provision for bonuses

(3)

(0)

0(0)

37(15)(550)–

28(85)

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

(36)

(40)

Interest expenses

97100

Loss on retirement of non-current assets

193

Subsidy income(156)(1,020)Decrease (increase) in trade receivables

167

1,999

Decrease (increase) in inventories

28(79)

Increase (decrease) in trade payables(213)(1,897)

Decrease (increase) in prepaid expenses

8(171)

Increase (decrease) in accounts payable - other(999)(655)

Increase (decrease) in accrued consumption taxes

(268)

535

20(85)

Decrease (increase) in other assets

(197)

344

Increase (decrease) in other liabilities

(40)

(67)

Increase (decrease) in accrued expenses

Other, net(15)(67)

Subtotal

3,824

5,718

Interest and dividends received

3640

Interest paid

(97)

(100)

Subsidies received

156

1,020

Income taxes paid

(1,515)(1,103)

Net cash provided by (used in) operating activities

2,405

5,575

(6,635)(2,017)Purchase of intangible assets

(96)

(51)

Purchase of investment securities

(21)

(22)

Proceeds from sales of investment securities

19–

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

Purchase of shares of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities

9(2,164)–3(6)(8,895)(2,098)(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020

Cash flows from financing activities
Proceeds from long-term borrowings

4,960

–

Repayments of long-term borrowings(1,475)(1,696)

Dividends paid

(559)

(494)

Proceeds from installment plan

3,729

–

Repayments of installment payables(2,303)(1,459)(6)(6)

Other, net

4,345(3,657)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(2,145)(179)

Cash and cash equivalents at beginning of period

13,072

10,927

Cash and cash equivalents at end of period

10,927

10,74710