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, 2017
(Based on Japanese GAAP)
November 9, 2017
Company name:KENKO Mayonnaise Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

2915
President

URL

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

Inquiries:
Director and Managing Executive Officer
Scheduled date to file Quarterly Securities Report:

Takashi Murata
November 13, 2017

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

December 4, 2017
Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-5318-7530(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, 2017 (from April 1, 2017 to September 30, 2017)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2017
Six months ended September 30, 2016

Millions of yen
37,021
36,009Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
2.8
2,152 (13.1)
2,184 (12.3)
1,489 (11.9)
8.3
2,476
35.6
2,490
38.8
1,690
11.1

Earnings per share

Diluted earnings per share

Yen
90.43
118.98Six months ended September 30, 2017
Six months ended September 30, 2016

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2017
As of March 31, 2017

Net assets

Millions of yen
57,44851,442Equity ratio

Millions of yen
29,781
28,456

%
51.8
55.3

2. Cash dividends
Annual dividends per share

Year ended March 31, 2017
Year ending March 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
14.00
18.00

Yen–

Yen
23.00

Yen
37.00

–

19.00

37.00

Year ending March 31, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
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
75,000
5.9
4,080
2.3
4,100
2.1
2,870
0.1
174.201

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2017(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:

No
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, 201716,476,000 shares As of March 31, 201716,476,000 shares

Number of treasury shares at the end of the period
As of September 30, 2017284 shares As of March 31, 2017273 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201716,475,718 shares Six months ended September 30, 2016

2

14,210,787 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of September 30, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

13,77911,436

14,44014,415Merchandise and finished goods
Work in process

1,881
17

1,784
14

Raw materials and supplies
Deferred tax assets

919
350

1,000364

Other
Allowance for doubtful accounts

813
(2)

145
(1)

29,19632,164

Buildings and structures, net
Machinery, equipment and vehicles, net

5,461
6,653

5,239
6,164

Land
Construction in progress

5,968
8

5,968
3,657

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

Other, net

377

347

18,46921,377

Total intangible assets
Investments and other assets

268

223

Deferred tax assets
Other

398
3,148

328
3,391

Total property, plant and equipment
Intangible assets

Allowance for doubtful accounts

(40)

(37)

Total investments and other assets

3,506

3,682

22,24525,28451,44257,448

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2017

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

8,751

11,558

920
909

813
819

Other provision
Other

460
5,445

578
5,787

Total current liabilities

16,487

19,558Non-current liabilities
Long-term loans payable

1,489

3,123

443
934

407
951

3,630

3,625

Current portion of long-term loans payable
Income taxes payable

Net defined benefit liability
Other provision
Other
Total non-current liabilities

6,498

8,108

22,98527,666

Capital stock
Capital surplus

5,424
5,691

5,424
5,691

Retained earnings
Treasury shares

16,688(0)

17,799(0)Total shareholders' equity

27,803

28,914798

991

9(155)

2(126)

Total 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

4652

867

28,45629,781

51,44257,448

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, 2016

September 30, 2017

Net sales
Cost of sales

36,00926,43637,021
27,445Gross profit

9,5739,576

Selling, general and administrative expenses

7,097

7,423

Operating profit

2,476

2,152

Interest income
Dividend income

018019

Other

4955

Total non-operating income

6874

Interest expenses
Share of loss of entities accounted for using equity method

29
1430
7

Other

105

Total non-operating expenses

54

43

2,490

2,184

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income
Subsidy income

178

Other

50

Total extraordinary income

228

Loss on retirement of non-current assets
Impairment loss

4251

Total extraordinary losses

67

Profit before income taxes

2,506

2,185

Income taxes - current
Income taxes - deferred

832
(16)

728
(32)

Extraordinary losses

Total income taxes

815

696

Profit

1,690

1,489

Profit attributable to owners of parent

1,690

1,489

5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2016

September 30, 2017

1,690

1,489

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax(70)
38193
28

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

(24)

(7)

Total other comprehensive income

(56)

214

1,634

1,704

1,634

1,704

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, 2016

September 30, 2017

Cash flows from operating activities
Profit before income taxes

2,506

2,185

Depreciation
Increase (decrease) in provision

824
129923131

Increase (decrease) in net defined benefit liability
Interest and dividend income

47(19)

5(19)Interest expenses
Decrease (increase) in notes and accounts receivable - trade29(665)30(2,978)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

55
619

19
2,807

Increase (decrease) in accounts payable - other
Other, net(128)
(103)

566
455

Subtotal

3,295

4,126

19(29)

19(30)

Interest and dividend income received
Interest expenses paid
Income taxes paid(397)(911)

Net cash provided by (used in) operating activities

2,888

3,204

(1,337)(36)(4,133)
(9)

(10)
(0)

(11)
(0)

(1,385)(4,155)

Cash flows from financing activities
Proceeds from long-term loans payable

324

2,053

Repayments of long-term loans payable
Cash dividends paid

(762)
(241)

(525)
(378)

Proceeds from installment plan
Repayments of installment payables

762
(643)

1,353
(890)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities

Other, net

(1)

(1)

(562)

1,611

Net increase (decrease) in cash and cash equivalents

940

660

Cash and cash equivalents at beginning of period

7,412

13,779Cash and cash equivalents at end of period

8,353

14,440Net cash provided by (used in) financing activities

7