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, 2016
(Based on Japanese GAAP)
November 7, 2016
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 8, 2016

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

December 2, 2016
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, 2016 (from April 1, 2016 to September 30, 2016)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2016
Six months ended September 30, 2015

Millions of yen
36,00933,244

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
8.3
2,476
35.6
2,490
38.8
1,690
11.1
10.5
1,826
31.0
1,793
41.2
1,522 106.7

Earnings per share

Diluted earnings per share

Yen
118.98107.12Six months ended September 30, 2016
Six months ended September 30, 2015

Yen––(2) Consolidated financial position
Total assetsAs of September 30, 2016
As of March 31, 2016

Net assets

Millions of yen
44,07542,306Equity ratio

Millions of yen
20,804
19,311

%
47.2
45.6

2. Cash dividends
Annual dividends per share

Year ended March 31, 2016
Year ending March 31, 2017

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
11.00
14.00

Yen–

Yen
17.00

Yen
28.00

–

16.00

30.00

Year ending March 31, 2017 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
70,800
5.8
4,100
19.3
4,200
22.6
2,680
28.5
188.591

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2016(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
NoChanges 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, 2016

14,211,000 shares As of March 31, 2016

14,211,000 sharesNumber of treasury shares at the end of the period
As of September 30, 2016

234 shares As of March 31, 2016

209 shares

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

14,210,787 shares Six months ended September 30, 2015

214,210,837 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of September 30, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

7,412
11,242

8,353
11,908Merchandise and finished goods
Work in process

1,728
13

1,617
11

Raw materials and supplies
Deferred tax assets

860
309

917
315

Other
Allowance for doubtful accounts

273
(4)

141
(3)

21,83623,262

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

5,601
5,848

5,504
6,553

Land
Construction in progress

4,697
352

4,697
97

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

Other, net

370

381

16,87017,234

Total intangible assets
Investments and other assets

332

310

Deferred tax assets
Other

297
3,011407
2,901

Total property, plant and equipment
Intangible assets

Allowance for doubtful accounts

(42)

(40)

Total investments and other assets

3,266

3,268

20,46920,81242,30644,075

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2016

As of September 30, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade

8,594

9,213

1,389
466

1,247
898

417
27424
134

Other

5,418

5,276

Total current liabilities

16,313

17,195Long-term loans payable
Net defined benefit liability

2,184486

1,888
477

Other provision
Other908
3,101

926
2,782

Total non-current liabilities

6,680

6,075

22,994

23,270Shareholders' equity
Capital stock

2,180

2,180

Capital surplus
Retained earnings

2,448
14,161

2,448
15,710(0)(0)

18,79020,339Valuation difference on available-for-sale securities
Foreign currency translation adjustment

719
14648
(9)

Remeasurements of defined benefit plans

(212)

(174)

Total accumulated other comprehensive income

520

464

19,31120,80442,30644,075Current portion of long-term loans payableIncome taxes payable
Provision for bonuses
Other provisionNon-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
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, 2015

September 30, 2016

Net sales
Cost of sales

33,244
24,64836,00926,436Gross profit

8,5969,573

Selling, general and administrative expenses

6,770

7,097

Operating income

1,826

2,476

Interest income
Dividend income

016018

Other

6349

Total non-operating income

80

68

3368

29
14

Other

1010

Total non-operating expenses

113

54

1,793

2,490

Non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method

Ordinary income
Extraordinary income
Gain on sales of shares of subsidiaries and associates
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses

190––
5175196

22

9442

13

6

1,976

2,506

Income taxes - current

452

832

Income taxes - deferred1(16)Profit before income taxes

Total income taxes

453

815

Profit

1,522

1,690

Profit attributable to owners of parent

1,522

1,690

5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2015

September 30, 2016

1,522

1,690

Valuation difference on available-for-sale securitiesRemeasurements of defined benefit plans, net of tax(49)
17(70)
38

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

(193)

(24)

Total other comprehensive income

(225)

(56)

1,297

1,634

1,297

1,634

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, 2015

September 30, 2016

Cash flows from operating activities
Profit before income taxes

1,976

2,506

DepreciationIncrease (decrease) in provision

743
12582430

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

15(17)

47(19)

Interest expenses
Decrease (increase) in notes and accounts receivable - trade33(1,040)

29(665)Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

(89)
1,197

55
619(10)191(128)
(4)

3,124

3,295

17(33)

19(29)

Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid

(709)

(397)

Net cash provided by (used in) operating activities

2,399

2,888

Purchase of property, plant and equipment
Purchase of intangible assets

(203)
(50)

(1,337)(36)

Proceeds from sales of investment securities
Purchase of investment securities

537
(101)

–
(10)

Cash flows from investing activities

Other, net

(1)

(0)

Net cash provided by (used in) investing activities

180(1,385)

Proceeds from long-term loans payable
Repayments of long-term loans payable–(576)

324(762)

Cash dividends paid
Proceeds from installment plan

(184)
435

(241)
762

Repayments of installment payables
Other, net(617)
(0)

(643)
(1)

Cash flows from financing activities

(943)

(562)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities

1,636

940

Cash and cash equivalents at beginning of period

4,778

7,412

Cash and cash equivalents at end of period

6,414

8,353

7