SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2014
[JAPAN GAAP]
January 8, 2015
Listed company name:
Listed exchange:
Security code number:
URL:
Representative:
Contact:

Kewpie Corporation
Tokyo Stock Exchange2809
http://www.kewpie.co.jp/english/
Minesaburo Miyake, President and Representative Director
Masato Shinohara,
Officer and General Manager of Operation Promote Department
Scheduled date for ordinary general meeting of shareholders: February 26, 2015
Scheduled date for dividend payment: February 5, 2015
Scheduled date for filing annual securities report: February 27, 2015
Supplementary data: Yes
Results briefing: Yes (for corporate investors and investment analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated business results for the fiscal year ended November 30, 2014
(From December 1, 2013 to November 30, 2014)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Fiscal year 2014
Fiscal year 2013

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

553,404
530,549

4.3
5.1

24,34322,402

8.7(4.1)

25,36823,7496.8(2.9)

13,366
12,5676.4
2.2(Note) Comprehensive income: Fiscal year 2014 \18,968 million (Decrease of 1.5%)
Fiscal year 2013 \19,256 million (Increase of 20.8%)

Net income
per share
Fiscal year 2014
Fiscal year 2013

Net income
per share - diluted

Return on equity

Ordinary income
to total assets

Operating income
to net sales

Yen

Yen

%

%

%

88.69
83.94

-

7.0
7.1

7.3
7.4

4.4
4.2

(Reference) Equity in earnings or losses of affiliates:

Fiscal year 2014 \(102) million
Fiscal year 2013 \111 million(2) Consolidated financial position
Total assets
Fiscal year 2014
Fiscal year 2013
(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

356,994
334,655

220,397
210,28554.6
55.0

1,284.36
1,230.32

Fiscal year 2014 \195,051 million
Fiscal year 2013 \184,204 million(3) Consolidated cash flows
Net cash provided by Net cash provided by Net cash provided by
Cash and cash equivalents(used in) operating(used in) investing(used in) financing
at the end of the fiscal year
activities
activities
activities
Fiscal year 2014
Fiscal year 2013

Millions of yen

Millions of yen

Millions of yen

Millions of yen

34,39227,369(30,847)(21,897)(3,149)(2,307)44,78843,963

2. Dividends
Annual dividend per share
End of End of
Year2nd
3rd
endquarter quarterEnd of
1stquarter

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year 2013
Fiscal year 2014

-

11.00
11.50

-

11.00
11.50

22.00
23.00

Fiscal year 2015
(Forecast)

-

12.50

-

13.50

26.00

Total amountof annualdividends

Dividend
Dividend on
payout ratio
equity(Consolidated) (Consolidated)

Millions of yen

3,294
3,468

%

%

26.2
25.9

1.9
1.8

25.8

(Note) The amount of year-end dividend for fiscal year 2014 is a forecast and it will be determined by the Board of Directors
held on January 23, 2015.
The year-end dividend for fiscal year 2015 (forecast) includes a dividend of \1 to commemorate the 90th anniversary oflaunching mayonnaise.

3. Forecasts of consolidated operating results for the fiscal year ending November 30, 2015
(From December 1, 2014 to November 30, 2015)(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income

Millions of yen%

Six months ending
May 31, 2015

281,000

Year ending
November 30, 2015

573,000

Millions of yen

Ordinary income%

Millions of yen%

2.9

12,300 10.8

12,5003.5

25,50026,2004.8

Net income
per share

Net income
Millions of yen

%

Yen

7.7

8,400 36.1

55.33

3.3

15,300 14.5

100.78*Notes(1) Changes in significant subsidiaries during the period (Changes in specific subsidiaries resulting in thechange in the scope of consolidation): None
(2) Changes in accounting policies and estimates, and restatementsa) Changes in accounting policies due to revision of accounting standards: Yesb) Changes in accounting policies due to reasons other than "a)" (above): Nonec) Changes in accounting estimates: Noned) Restatements: None
(Note)
From the end of the current fiscal year, the Company and its domestic consolidated subsidiaries haveapplied "Accounting Standard for Retirement Benefits" (ASBJ Statement No.26 of May 17, 2012) and"Guidance on Accounting Standard for Retirement Benefits" (ASBJ Guidance No.25 of May 17, 2012).
For more details on impact due to this change, please refer to "l. Consolidated financial statements: 5.
Notes regarding consolidated financial statements (Changes in accounting policies) " on page 13.
(3) Number of issued shares (common stock)a) Number of issued shares at the end of each period (including treasury stock):
November 30, 2014
153,000,000 shares
November 30, 2013
153,000,000 sharesb) Number of treasury stock at the end of each period:
November 30, 2014
1,132,849 shares
November 30, 2013
3,278,555 sharesc) Average number of issued shares during each period:
December 1, 2013 to November 30, 2014
150,703,628 shares
December 1, 2012 to November 30, 2013
149,722,634 shares*Status of implementation of auditing proceduresThis summary of consolidated financial statements is outside the scope of the auditing procedures
based on the Financial Instruments and Exchange Act. As of the time of its disclosure, auditing
procedures for consolidated financial statements and non-consolidated financial statements based on
the Financial Instruments and Exchange Act are still in process of being implemented.
*Statement for an appropriate usage of the forecasts of operating results and other special notes
The forecasts and other forward looking statements contained in this summary are based on theinformation currently available to the Company and certain assumptions considered reasonable by theCompany. In other words, they are not guaranteed to be achieved by the Company. As a result, theforecasts of operating results could differ significantly from the actual operating results due to various
factors.
*Cash flow index
Fiscal year
2010

Fiscal year
2011

Fiscal year
2012

Fiscal year
2013

Fiscal year
2014

Equity ratio (%)

54.2

58.0

55.8

55.0

54.6

Equity ratio based on market price (%)

53.7

57.3

58.6

65.1

82.6

Interest-bearing debt to cash flows ratio (years)

0.9

0.5

0.7

0.9

0.8

Interest coverage ratio (times)

75.2

108.0

165.0

105.1

116.0

(Notes) "Equity ratio" = Equity / Total assets"Equity ratio based on market price" = Market value of total stock / Total assets"Interest-bearing debt to cash flows ratio" = Interest-bearing debt / Cash flows"Interest coverage ratio" = Cash flows / Interest paid
* Each index is calculated based on consolidated financial figures.
* "Market value of total stock" is calculated by multiplying the final market price by the
number of issued shares at the end of the fiscal year (excluding treasury stock).
* "Interest-bearing debt" includes all liabilities requiring the payment of interest under theliabilities section of the consolidated balance sheet.
* "Cash flows" and "Interest paid" are the figures of "Net cash provided by (used in)operating activities" and "Interest paid" reported in consolidated statements of cash flows,
respectively.

Table of contentsl. Consolidated financial statements …………………………………………………………………………………………
2
1. Consolidated Balance Sheets ………………………………………………………………………………………………
2
2. Consolidated Statements of Income
and Consolidated Statements of Comprehensive Income ……………………………………………

4(Consolidated Statements of Income)…………………………………………………………………………………………
4(Consolidated Statements of Comprehensive Income)……………………………………………………………………………
5

3. Consolidated Statements of Changes in Net Assets………………………………………………………………………………
6

4. Consolidated Statements of Cash Flows …………………………………………………………………………………………
8
5. Notes regarding consolidated financial statements …………………………………………………………………
10(Notes regarding assumption of a going concern) ………………………………………………………………
10(Significant matters forming the basis for the preparations of consolidated financial statements) …………………………
10(Changes in accounting policies) …………………………………………………………………………………………….
13(Changes in presentation method) …………………………………………………………………………………………….
13(Segment information) …………………………………………………………………………………………….
14(Per share information) …………………………………………………………………………………………….
19(Significant subsequent events) …………………………………………………………………………………………….
20
ll. Supplementary data …………………………………………………………………………………………………………
22

1

l. Consolidated financial statements
1. Consolidated Balance Sheets(Millions of yen)Previous fiscal year
Current fiscal year
(As of November 30, 2013) (As of November 30, 2014)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Purchased goods and products
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowances for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Net book value
Machinery, equipment and vehicles
Accumulated depreciation
Net book value
Land
Lease assets
Accumulated depreciation
Net book value
Construction in progress
Other
Accumulated depreciation
Net book value
Total tangible fixed assets
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Prepaid pension costs
Assets for retirement benefits
Deferred tax assets
Other
Allowances for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

2

33,967
77,46010,00012,478
950
5,878
2,142
3,801
(242)
146,435

34,81581,49810,00014,811
1,142
6,995
2,453
3,079
(203)
154,593138,035(82,213)55,822
133,368(109,274)
24,09442,191
6,158(2,523)
3,634
7,401
10,544(7,860)2,684
135,828

151,166(86,759)
64,406142,058(113,659)
28,39946,1097,573(3,256)
4,317
7,144
11,894(8,720)3,173
153,550

1,857
810
2,667

183
2,456
748
3,388

23,536593
15,736
1,355
9,078
(575)
49,724
188,220334,655

26,568
501
8,207
1,853
8,872
(540)
45,462
202,401
356,994(Millions of yen)Previous fiscal year
Current fiscal year
(As of November 30, 2013) (As of November 30, 2014)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Accounts payable - otherAccrued expenses
Accrued income taxes
Deferred tax liabilities
Reserves for sales rebates
Reserves for bonuses
Reserves for directors' bonuses
Other reserves
Other
Total current liabilities
Non-current liabilities
Bonds
Long-term loans payable
Deferred tax liabilities
Reserves for retirement benefits
Liabilities for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Paid-in-capital
Capital surplus
Earned surplus
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Unrealized holding gains (losses) on securities
Unrealized gains (losses) on hedges
Foreign currency translation adjustments
Accumulated adjustments for retirement benefits
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

350,786
8,312
20,113
9,140
2,725
15
912
1,117
139
2,637
95,901

53,775
7,859
25,294
9,826
5,278
22
934
1,054
112
28
1,910
106,097

10,000
3,711
7,469
2,315
332
4,639
28,468124,369

10,000
6,632
5,652
2,581
653
4,980
30,499136,596

24,10429,434132,491(3,392)
182,638

24,10430,309142,489(1,150)195,752

4,771(4)(3,200)1,566
26,080210,285334,655

5,902
4(1,234)(5,373)(701)
25,346220,397356,994

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Dividends income of insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Business commencement expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gains on sales of fixed assets
Gains on sales of investment securities
Gains on sales of shares of subsidiaries and affiliates
Compensation income
Gains on negative goodwill
Other
Total extraordinary gains
Extraordinary losses
Losses on disposal of fixed assets
Losses on impairment of fixed assets
Losses on withdrawal from employees' pension fund
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests
Net income

4

Previous fiscal year
(From December 1, 2012
to November 30, 2013)

Current fiscal year
(From December 1, 2013
to November 30, 2014)

530,549
402,283
128,266
105,864
22,402

553,404
419,042
134,362
110,018
24,343

156
464
111
177
826
1,736

152
388
190
1,118
1,850

259
11
119
389
23,749

296
189
102
237
825
25,368

321
212
161
1,200
1,896

104
45
198
406
4
759

1,089
1,114
386
649
3,240
22,405
7,424
236
7,660
14,744
2,176
12,567

883
586
82
1,551
24,575
9,212
(82)
9,130
15,445
2,078
13,366

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Income before minority interests
Other comprehensive income
Unrealized holding gains (losses) on securities
Unrealized gains (losses) on hedges
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority interests

5

Previous fiscal year
(From December 1, 2012
to November 30, 2013)

Current fiscal year
(From December 1, 2013
to November 30, 2014)

14,744

15,445

2,232
(20)
2,294

1,224
6
2,289

5
4,511
19,2562
3,522
18,96816,4902,766

16,4722,495

3. Consolidated Statements of Changes in Net Assets
Previous fiscal year (From December 1, 2012 to November 30, 2013)(Millions of yen)
Shareholders' equity
Paid-in-capital
Balance at the beginning of
the current period

Capital surplus

24,104

Earned surplus

29,434

Total shareholders'equityTreasury stock

123,143(3,389)173,292

Changes during the current
periodDividends from surplus(3,219)(3,219)Net income

12,567

12,567(3)

Repurchase of shares(3)

Change in treasury stock
arising from change inequity in affiliates
accounted for using
equity method-

Allotment of treasury
stock by shareexchange-

Net changes of items
other thanshareholders' equity
Total changes during thecurrent period

-

-

9,348

(3)

9,345

Balance at the end of thecurrent period

24,10429,434132,491(3,392)

182,638

Accumulated other comprehensive income
Unrealized
holding gains(losses) on
securities

Balance at the beginning of
the current period

2,646

Unrealized gains Foreign currency(losses) on
translation
hedgesadjustments

7(5,009)

Accumulated
adjustments for
retirement
benefits

Total
accumulated
othercomprehensive
income-(2,355)

Minority interests

Total net assets

24,991

195,928

Changes during the current
periodDividends from surplus(3,219)Net income

12,567

Repurchase of shares(3)

Change in treasury stock
arising from change inequity in affiliates
accounted for using
equity method-

Allotment of treasury
stock by shareexchange-

Net changes of items
other thanshareholders' equity

2,124

(11)

1,809

-

3,922

1,089

5,012

Total changes during thecurrent period

2,124

(11)

1,809

-

3,922

1,089

14,357

Balance at the end of thecurrent period

4,771

(4)

(3,200)-1,566

26,080210,2856

Current fiscal year (From December 1, 2013 to November 30, 2014)(Millions of yen)
Shareholders' equity
Paid-in-capital
Balance at the beginning of
the current period

Capital surplus

24,104

Earned surplus

29,434

Total shareholders'equityTreasury stock

132,491(3,392)

182,638

Changes during the current
periodDividends from surplus(3,369)(3,369)Net income

13,366

13,366

Repurchase of shares

(4)

(4)

Change in treasury stock
arising from change inequity in affiliates
accounted for using
equity method

(6)

(6)

2,253

3,128

Allotment of treasury
stock by shareexchange875

Net changes of items
other thanshareholders' equity
Total changes during thecurrent period

-

875

9,997

2,242

13,114

Balance at the end of thecurrent period

24,10430,309142,489(1,150)195,752

Accumulated other comprehensive income
Unrealized
holding gains(losses) on
securities

Balance at the beginning of
the current period

4,771

Unrealized gains Foreign currency(losses) on
translation
hedgesadjustments(4)(3,200)

Accumulated
adjustments for
retirement
benefits

Total
accumulated
othercomprehensive
income-1,566

Minority interests

Total net assets

26,080210,285

Changes during the current
periodDividends from surplus(3,369)Net income

13,366

Repurchase of shares(4)

Change in treasury stock
arising from change inequity in affiliates
accounted for using
equity method(6)

Allotment of treasury
stock by shareexchange

3,128

Net changes of items
other thanshareholders' equity

1,130

9

1,965

(5,373)(2,268)(734)(3,002)

Total changes during thecurrent period

1,130

9

1,965

(5,373)(2,268)(734)

10,111

Balance at the end of thecurrent period

5,902

4

(1,234)(5,373)(701)

25,346220,397

7

4. Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Losses on impairment of fixed assets
Amortization of goodwill
Equity in losses (earnings) of affiliates
Losses (gains) on valuation of investment securities
Gains on negative goodwill
Increase (decrease) in reserves for retirement benefits
Decrease (increase) in prepaid pension costs
Increase (decrease) in liabilities for retirement benefits
Decrease (increase) in assets for retirement benefits
Increase (decrease) in reserves for sales rebates
Increase (decrease) in reserves for directors' bonuses
Increase (decrease) in reserves for bonuses
Increase (decrease) in allowances for doubtful accounts
Interest and dividends income
Interest expenses
Losses (gains) on sales of investment securities
Losses (gains) on sales and disposal of fixed assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in long-term accounts payable
Other
SubtotalInterest and dividends income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

8

Previous fiscal year
(From December 1, 2012
to November 30, 2013)

Current fiscal year
(From December 1, 2013
to November 30, 2014)

22,405
14,572
1,114
45
(111)
8
(1,200)
(413)
189
(83)
9
113
84
(620)
259
(2)
783
(10,162)
(940)
8,760
4,265
143
(57)
(111)
39,051647(260)(12,068)
27,36924,575
16,132
586
14
102
4
(406)
(2,315)
15,736
2,523(16,198)
22
(26)
(72)
(77)
(540)
296
(45)
784
(3,419)(3,215)
2,613
414
2,473
(201)
368
40,128594(296)(6,034)34,392

(Millions of yen)

Cash flows from investing activities
Purchases of securities
Proceeds from redemption of securities
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Purchases of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Purchases of shares of subsidiaries and affiliates
Acquisition of subsidiaries' shares
Proceeds from sales of subsidiaries' shares
Proceeds from acquisition of subsidiaries' shares resulting inchange in scope of consolidation
Proceeds from sales of subsidiaries' shares resulting inchange in scope of consolidation
Payments of loans receivableCollection of loans receivable
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayment of lease obligations
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Cash dividends paid
Cash dividends paid to minority shareholders
Repurchase of shares
Net cash provided by (used in) financing activities
Effects of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

9Previous fiscal year
(From December 1, 2012
to November 30, 2013)

Current fiscal year
(From December 1, 2013
to November 30, 2014)(25,450)(1,021)
(714)
659
(697)
623

(10,000)
10,000(28,243)(1,252)(1,092)133
1,946(2,184)
(35)
432

-

70

131

-

(138)
299
(3)
3,000
1,415
(21,897)

(146)
201
(20)
(657)
(30,847)310(1,120)3,830(1,177)(500)(3,219)(426)(3)(2,307)411
3,576
40,38743,963(1,530)(1,332)
4,610(1,010)(3,369)(513)(4)(3,149)429
825
43,96344,788

5. Notes regarding consolidated financial statements(Notes regarding assumption of a going concern)
Not applicable.
(Significant matters forming the basis for the preparations of consolidated financial statements)(1) Consolidated subsidiaries
The Company has fifty-two consolidated subsidiaries in the current fiscal year. The principal
consolidated subsidiaries are Kewpie Egg Corporation, Deria Foods Co., Kewpie Jyozo Co., Ltd.,
K.R.S. Corporation, Ltd., Kanae Foods Co., Ltd., Gourmet Delica Co., Ltd. and Salad Club, Inc. In thecurrent fiscal year, the number of consolidated subsidiaries increased by two because Green MessageCo., Ltd. was newly established and the Company acquired additional shares of Tou Kewpie Co., Ltd.
On the other hand, the number of consolidated subsidiaries decreased by one because Hanshin
Delica Co., Ltd. and Kayaka Co., Ltd., consolidated subsidiaries, were merged into one company.
There are fifteen unconsolidated subsidiaries, and the principal company is Asato Logistics
Corporation. These companies are excluded from the scope of consolidation, because their total
amounts of total assets, net sales, net income and earned surplus (based on the Company's
ownership percentage) do not have a significant effect on the consolidated financial statements.
(2) Application of the equity method
The equity method is applied to the investments in five affiliated companies. The principal affiliates
accounted for using equity method are Aohata Corporation and Summit Oil Mill Co., Ltd. In the current
fiscal year, the number of affiliates decreased by one because Tou Kewpie Co., Ltd. became theCompany's consolidated subsidiary by acquisition of additional shares.
The investments in fifteen unconsolidated subsidiaries including Asato Logistics Corporation and in
five affiliated companies including Tohoku Aohata Co., Ltd. not to be accounted for by the equity
method are excluded from the scope of application of equity method, because the total amounts of net
income and earned surplus (based on the Company's ownership percentage) do not have a significant
effect on the consolidated financial statements.
(3) Closing date of consolidated subsidiaries
The closing date of Kewpie (Thailand) Co., Ltd., Beijing Kewpie Foods Co., Ltd. and Hangzhou Kewpie
Foods Co., Ltd. is December 31, and that of Kifuki U.S.A. Co., Inc., Q&B Foods, Inc., Henningsen
Foods, Inc., Henningsen Foods, Netherlands Inc., Kewpie Malaysia Sdn. Bhd., Kewpie Vietnam Co.,
Ltd. and PT. Kewpie Indonesia is September 30.
Kewpie (Thailand) Co., Ltd., Beijing Kewpie Foods Co., Ltd. and Hangzhou Kewpie Foods Co., Ltd.
are consolidated based on their temporary financial statements as of September 30. Kifuki U.S.A. Co.,
Inc., Q&B Foods, Inc., Henningsen Foods, Inc., Henningsen Foods, Netherlands Inc., Kewpie Malaysia
Sdn. Bhd., Kewpie Vietnam Co., Ltd. and PT. Kewpie Indonesia are consolidated based on thefinancial statements as of their balance sheet date.
Significant transactions for the period from October 1 to November 30 are reflected in the
consolidated financial statements.
(4) Accounting standards
A. Valuation basis and valuation methods for significant assetsa) Securities(i) Held-to-maturity bonds are calculated by the amortized cost method (straight-line method).
(ii) Shares in subsidiaries and affiliates which are not accounted for under the equity method arestated at moving average cost.
(iii) Other securities with readily determinable fair value are stated at fair value based on market
price at the closing date. Valuation differences comprise net assets as unrealized holding
gains on securities. When sold, cost of sales is determined by the moving average method.
Other securities without readily determinable fair value are stated at moving average cost.

10b) Financial derivative instruments
Financial derivative instruments are stated at fair value.
Hedge accounting is adopted for financial derivative instruments which conform torequirements of hedge accounting.
c) Inventories
Purchased goods and products, work in process, raw materials and supplies are principallystated at monthly moving average cost (a method whereby book values are written down basedon a decline in the revenue expected to be generated from these inventories). Some joint
products are stated by the retail method (a method whereby book values are written down basedon a decline in the revenue expected to be generated from these inventories).
B. Depreciation methods for significant depreciable assetsa) Tangible fixed assets (excluding lease assets)
Tangible fixed assets are mainly depreciated by the declining balance method except for thefollowing assets.
Buildings (excluding equipment fixed inside buildings) acquired on and after April 1, 1998, aredepreciated by the straight-line method.
The same basis with the Corporation Tax Act is mainly adopted for useful life and residual
value.
b) Intangible fixed assets (excluding lease assets)
Intangible fixed assets are amortized by the straight-line method.
The same basis with the Corporation Tax Act is mainly adopted for useful life.
Computer software purchased for internal use is amortized by the straight-line method for five
years based on the estimated useful life for internal use.
c) Lease assets
The straight-line method, which considers the lease period to be the useful life and the residual
value to be zero, is applied to lease assets related to finance lease transactions that do nottransfer ownership.
Finance lease transactions that do not transfer ownership whose start date falls on or before
November 30, 2008 are accounted for by the same method as that applied to operating leases.
d) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method.
C. Method of accounting for significant deferred assets
Business commencement expenses is recorded as expenses in full at the time of payment.
D. Accounting standards for significant reservesa) Allowances for doubtful accounts
To provide for a possible bad-debt loss, the Group provides the expected uncollectible amountas allowances for doubtful accounts. The said amount is calculated by using credit-loss
prediction ratios based on historical data for general accounts receivable, and by reference tothe individual collectability for special receivables, such as those in danger of being uncollectible.
b) Reserves for sales rebates
To provide for the payment of rebates for the current fiscal year, reserves for sales rebates areprovided on an accrual basis, multiplying the net sales and each company's standard (thepercentage of the expected amount of rebates in net sales).
c) Reserves for bonuses
To provide for the payment of bonuses to employees, reserves for bonuses are provided
according to the expected amount of the payment which attributes to the current fiscal year.
d) Reserves for directors' bonuses
To provide for the payment of bonuses to directors, reserves for directors' bonuses are provided
according to the expected amount payable at the end of the current fiscal year.

11E. Accounting for retirement benefitsa) Periodic allocation method for projected retirement benefits
In calculating retirement benefit obligations, the method of allocating the projected retirement
benefits at the end of the current fiscal year is based on a straight-line basis.
b) Method of accounting for actuarial gains and losses and prior service costs
Prior service costs are amortized by the straight-line method over twelve years (except for fromten to thirteen years of K.R.S Corporation) based on the average remaining employees' service
years.
Actuarial gains or losses are amortized by the straight-line method over twelve years (except
for from ten to thirteen years of K.R.S Corporation) based on the average remaining employees'
service years at each fiscal year, and their amortizations start from the next year of therespective accrual years.
In addition, if the amount of pension fund assets exceed that of retirement benefit obligations
for benefit pension plan, it is provided as assets for retirement benefits on consolidated balance
sheet.
F. Treatment for significant hedge accountinga) Deferral hedge is applied as the method of hedge accounting.
Allocation method is applied for transactions that meet the requirements for that method.
Special treatment is applied for the interest rate swap transactions that meet the requirements
for the special treatment.
b) Hedging instruments are forward exchange contracts and interest rate swap transactions.
c) Hedged items are purchase transactions in foreign currencies and interest of loans.
d) The Company and consolidated subsidiaries execute forward exchange contracts to hedge risks
from fluctuation in foreign exchange rate and interest rate swap transactions to hedge risks fromprojected fluctuation in interest rate.
In addition, the Company and consolidated subsidiaries never make use of them for the
purpose of speculative transactions.
e) Assessment of the effectiveness of hedge accounting
Control procedures of hedge transactions are executed according to each company's bylaw. The
effectiveness of the hedge is analyzed by comparing movements in the fair value of the hedged
items with those of the hedging instruments, assessed and strictly controlled.
However, the assessment of the effectiveness is omitted for interest rate swap transactions
that meet the requirements for the special treatment.

G. Method and period for amortization of goodwill
As a general rule, goodwill is amortized on a straight-line basis over its estimated useful life.
However, trivial goodwill is fully amortized in the fiscal year in which it is incurred.
H. Scope of cash in the consolidated statements of cash flows
Cash in the consolidated statements of cash flows (cash and cash equivalents) consists of cash in
hand, bank deposits which can be withdrawn freely, and short-term investments which can be easily
converted into cash and matures within three months from the acquisition date which are at little riskof changes in value.
I. Other significant matter for the preparation of consolidated financial statements
Consumption taxes are recorded in separate accounts.

12

(Changes in accounting policies)
Adoption of accounting standard for retirement benefits
The Company and its domestic consolidated subsidiaries have applied the "Accounting Standard for
Retirement Benefits" (ASBJ Statement No. 26 of May 17, 2012; hereinafter, the "AccountingStandard") and the "Guidance on Accounting Standard for Retirement Benefits" (ASBJ Guidance
No. 25 of May 17, 2012; hereinafter, the "Guidance") from the end of the current fiscal year (except
for stipulations in article 35 of the Accounting Standard and article 67 of the Guidance). Under the
new standard, pension fund assets are deducted from retirement benefit obligations and the net
amount is recognized as assets for retirement benefits or liabilities for retirement benefits, andunrealized actuarial gains and losses and unrealized prior service costs are recorded as assets for
retirement benefits or liabilities for retirement benefits.
In accordance with transitional accounting as stipulated in article 37 of the Accounting Standard,
the effect of the changes in accounting policies arising from the initial application is recognized inaccumulated adjustments for retirement benefits as a component of accumulated othercomprehensive income.
As a result of the above, assets for retirement benefits amounted to \8,207 million and liabilities
for retirement benefits amounted to \2,581 million at the end of the current fiscal year. Accumulated
other comprehensive income decreased by \5,373 million and minority interest decreased by \418
million.
In addition, net assets per share decreased by \35.38 in the current fiscal year.
(Changes in presentation method)
Consolidated statements of income"Business commencement expenses" was included in "Other" account of "Non-operating expenses"
for the previous fiscal year, but because its amount exceeded 10% of total non-operating expenses
for the current fiscal year , it was changed to be presented as a separate account. In order to reflect
this change in presentation method, the consolidated financial statements of the previous fiscal year
have been reclassified.
As a result, in the consolidated statements of income for the previous fiscal year, \130 million
that was presented in "Other" account of "Non-operating expenses" has been reclassified as \11
million in "Business commencement expenses" and \119 million in "Other."13

(Segment information)(1) Segment information
A. Outline of reported segments
The reported segments of the Company are those units for which separate financial statements canbe obtained among the constituent units of the Group and which are regularly examined by the
Board of Directors for making decisions on the allocation of management resources and forassessing business performance. These segments are categorized by product and service, andconsist of "Condiments products," "Egg products," "Delicatessen products," "Processed foods,""Fine chemical products," "Distribution system" and "Common business operations".
The following are the outline of each segment:
Condiments products:

Mayonnaise, dressings and vinegar

Egg products:

Liquid egg, frozen egg, dried egg, egg spread, thick omelet
and shredded egg

Delicatessen products:

Salads, delicatessen foods, boxed lunches, rice balls andpackaged salads

Processed foods:

Bottled and/or canned foods including jams, pasta saucesand sweet corn, baby foods and nursing care foods

Fine chemical products:

Hyaluronic acid and EPA

Distribution system:

Transportation and warehousing of food products

Common business operations:

Sale of food products

B. Method used to calculate amounts of net sales, profit or loss, assets, liabilities and others byreported segment
Accounting treatment applied to the reported segments is much the same with what is described in"Significant matters forming the basis for the preparations of consolidated financial statements."
Profit of the reported segments is based on operating income. Intersegment net sales andtransfers are based on prevailing market price.

14

C. Information on amounts of net sales, profit or loss, assets, liabilities and others by the reported
segment
Previous Fiscal Year (From December 1, 2012 to November 30, 2013)(Millions of yen)
Condiments
products

Egg
products

Delicatessen
products

Processed
foods

145,367

91,15897,98358,431

3,725

5,866

377

1,810

Total

149,093

97,024

98,36060,241

Segment profit(loss)

11,519

3,414

3,460

(896)

909

3,208

Segment assets

88,235

49,11332,41930,4209,623

71,531

Net sales
Net sales
to outside
customers
Intersegment
net salesor transfers

Finechemicalproducts

Distribution
system

9,676 120,320
328

23,665

10,004 143,985

Adjustments

Amount reported
on the consolidated
financialstatements (Note)-

530,549

44,883 (44,883)-

16,723 575,433 (44,883)

530,549

Commonbusiness
operations

Total

7,612 530,549
9,110

781

22,396

5

22,402

8,252 289,595

45,059334,655

OthersDepreciation
and
4,219
2,536
1,674
1,225
621
3,704
590 14,572
14,572amortization
Investment inaffiliates
accounted
1,076
258
1,358
138
2,831
2,831
for by equity
methodIncrease intangible and
6,973
5,573
4,026
2,057
1,408
6,054
1,028 27,122
27,122
intangible
assets(Notes) 1. "Adjustments" of \45,059 million in "Segment assets" mainly include company-wide assets of \50,585 million andelimination of intersegment receivables and payables of \(4,134) million.
Major items in company-wide assets are surplus operating funds of the Company (cash and deposits and securities)
and long-term investment funds (investment securities).
2. Adjustments are made between "Segment profit (loss)" and "Operating income" reported in the consolidated
statements of income.
3. "Depreciation and amortization" and "Increase in tangible and intangible assets" include "Long-term prepaid expenses".

15

Current Fiscal Year (From December 1, 2013 to November 30, 2014)(Millions of yen)

Net sales
Net sales
to outside
customers
Intersegment
net salesor transfers
Total

Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

151,465

99,513 102,225

57,152

10,726 126,789

6,020

360

1,812

157,413 105,534 102,586

58,964

5,948

273

Distribution
system

23,916

11,000 150,706

Segment profit

11,510

3,756

3,279

164

1,030

3,613

Segment assets

91,27951,84240,60933,41910,66375,046

Adjustments

Amount reported
on the consolidated
financialstatements (Note)-

553,404

47,779 (47,779)-

14,979 601,184 (47,779)

553,404

Commonbusiness
operations

Total

5,531 553,404
9,447

982

24,336

7

24,3439,802 312,663

44,331356,994

OthersDepreciation
and
4,809
2,745
1,933
1,216
744
4,080
602 16,132
16,132amortization
Investment inaffiliates
accounted
1,071
194
3,454
173
4,893
4,893
for by equity
methodIncrease intangible and
8,528
3,551
7,102
2,195
908
6,446
1,379 30,111
30,111
intangible
assets(Notes) 1. "Adjustments" of \44,331million in "Segment assets" mainly include company-wide assets of \50,623 million andelimination of intersegment receivables and payables of \(5,192) million.
Major items in company-wide assets are surplus operating funds of the Company (cash and deposits and securities)
and long-term investment funds (investment securities).
2. Adjustments are made between "Segment profit" and "Operating income" reported in the consolidated statements ofincome.
3. "Depreciation and amortization" and "Increase in tangible and intangible assets" include "Long-term prepaid expenses".

16

(2) Related information
Previous Fiscal Year (From December 1, 2012 to November 30, 2013)
A. Information by product and service
It is omitted here since similar information is disclosed in "Segment information."
B. Information by regiona) Net sales
It is omitted here since net sales to outside customers in Japan is more than 90% of net sales
reported in the consolidated statements of income.
b) Tangible fixed assets
It is omitted here since the amount of tangible fixed assets located in Japan is more than 90% of
tangible fixed assets reported in the consolidated balance sheets.
C. Information by main customer
It is omitted here since there is no customer occupying 10% or more of net sales reported in the
consolidated statements of income.
Current Fiscal Year (From December 1, 2013 to November 30, 2014)
A. Information by product and service
It is omitted here since similar information is disclosed in "Segment information."
B. Information by regiona) Net sales
It is omitted here since net sales to outside customers in Japan is more than 90% of net sales
reported in the consolidated statements of income.
b) Tangible fixed assets
It is omitted here since the amount of tangible fixed assets located in Japan is more than 90% of
tangible fixed assets reported in the consolidated balance sheets.
C. Information by main customer
It is omitted here since there is no customer occupying 10% or more of net sales reported in the
consolidated statements of income.

17

(3) Information on losses on impairment of fixed assets by reported segment
Previous Fiscal Year (From December 1, 2012 to November 30, 2013)(Millions of yen)

Losses on
impairmentof fixed assets

Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

Distribution
systemCommonbusiness
operations

-

-

120

936

-

57

-

Total

Adjustments

-

1,114

Total

1,114

Current Fiscal Year (From December 1, 2013 to November 30, 2014)(Millions of yen)

Losses on
impairmentof fixed assets

Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

Distribution
systemCommonbusiness
operations

235

350

-

-

-

-

-

Total

Adjustments

-

586

Total

586

(4) Information on amortization and unamortized balance of goodwill by reported segment
Previous Fiscal Year (From December 1, 2012 to November 30, 2013)
There was no significant amortization and unamortized balance of goodwill.
Current Fiscal Year (From December 1, 2013 to November 30, 2014)(Millions of yen)
Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

Distribution
systemCommonbusiness
operations

Amortizationin the current
fiscal year

-

-

-

-

7

6

-

14

-

14

Unamortizedbalance atthe end of
the current
fiscal year

-

-

-

-

140

43

-

183

-

183

Total

Adjustments

Total(5) Information on gains on negative goodwill by reported segment
Previous Fiscal Year (From December 1, 2012 to November 30, 2013)(Millions of yen)

Gains onnegativegoodwill

Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

Distribution
systemCommonbusiness
operations

-

-

-

1,200

-

-

-

Total

1,200

Adjustments

-

Total

1,200

Current Fiscal Year (From December 1, 2013 to November 30, 2014)(Millions of yen)

Gains onnegativegoodwill

Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

Distribution
systemCommonbusiness
operations

104

301

-

-

-

-

-

18

Total

406

Adjustments

-

Total

406

(Per share information)
Previous fiscal year
(From December 1, 2012
to November 30, 2013)

Current fiscal year
(From December 1, 2013
to November 30, 2014)

Net assets per share (yen)1,230.32

1,284.36

Net income per share (yen)

83.94

88.69

(Notes) 1. "Net income per share - diluted" is not presented because of no issue of potential shares.
2. Calculation basis of net assets per share is as follows.
Previous fiscal year
(From December 1, 2012
to November 30, 2013)

Current fiscal year
(From December 1, 2013
to November 30, 2014)

Total net assets (millions of yen)

210,285

220,397

Amount subtracted from total net assets (millions of yen)

26,08025,346[26,080][25,346]

Net assets attributable to common stock at the end of
the fiscal year
(millions of yen)

184,204

195,051

Number of common stock at the end of the fiscal year
(thousand shares)

149,721

151,867

Previous fiscal year
(From December 1, 2012
to November 30, 2013)

Current fiscal year
(From December 1, 2013
to November 30, 2014)

12,567

13,366--

Net income attributable to common stock (millions of yen)

12,567

13,366Weighted average number of common stock(thousand shares)

149,722150,703[Minority interests]

3. Calculation basis of net income per share is as follows.

Net income (millions of yen)Amounts not attributable to common shareholders(millions of yen)19

(Significant subsequent events)
Organization restructuring(Making a company a consolidated subsidiary by company split)
The Company and Aohata Corporation (“Aohata”) made a contract of absorption-type company split
on December 24, 2013, which made Aohata as a successor company of the business of selling breadrelated products such as jams, whipped cream and spread, to the Company by a company split (the“Company Split”), and it became effective on December 1, 2014. As a result of the Company Split, theCompany came to own 45.64% of Aohata's issued shares and Aohata became the Company's
consolidated subsidiary because it came to be under the substantial control of the Company.
(1) Outline of the Company Split
A. Name and description of business of the acquired companya) Name
Aohata Corporationb) Description of business
Production and sale of jams
B. Main reason of the Company Split
The Company conducted the Company Split because this would enable Aohata to operate bothmanufacturing and selling businesses, which would promote its prompt decision-making, uniqueselling system and rapid product development in consideration of diversifying customer needs andchanging preferences. It would also enable the Processed foods business of the Company as awhole to improve market competitiveness. Both companies agreed to the idea that making Aohata aconsolidated company would contribute to the further growth and development of them and to theenhancement of corporate value, because it would lead to many positive changes, such as thefurther active utilization of each others' management know-how as to endless promotion of therationalization, integration of both companies' sales channels in and outside of Japan, enhancementof partnership between them in processing fruits, strengthening the Processed foods business andimproving profitability of the Company, and strengthening the management base of Aohata throughfurther utilizing the management resources of the Company more than ever.
C. Effective date of the Company Split
December 1, 2014
D. Legal form of the Company Split
Absorption-type company split that positions the Company as a transferring company and
Aohata as a succeeding company in exchange for shares
E. Ratios of voting rights owned immediately before the date of the Company Split, additionallyacquired on the date of the Company Split, and owned after the acquisitiona) Ratio of voting rights owned immediately before the date of the Company Split
36.24%b) Ratio of voting rights additionally acquired on the date of the Company Split
9.40%c) Ratio of voting rights owned after the acquisition
45.64%
F. Principal basis for determining the acquiring company
The Company was determined as the acquiring company because the Company came to exert
effective control over Aohata by owning 45.64% of its total voting rights after the Company Split.
(2) Calculation of acquisition cost
Cost of acquisition of the acquired company and the breakdown of the costMarket value of the common stocks held by the Company immediately
before the date of the Company Split
Market value of the common shares additionally acquired by the Company
on the date of the Company Split
Acquisition cost

20

4,229 million yen
2,020 million yen
6,250 million yen

(3) Amounts of assets acquired and liabilities assumed as of the date of the Company Split and major
components of them
Current assets
8,800 million yen
Fixed assets
5,184 million yen
Total assets
13,984 million yen
Current liabilities
Non-current liabilities
Total liabilities

5,093 million yen
546 million yen
5,640 million yen(4) Outline of accounting treatment applied
In the Company Split, the Company is a transferring company and Aohata is a succeeding company.
However, as Aohata has become the Company's subsidiary, this company split is a reverse acquisition
that positions the Company as an acquiring company and Aohata as an acquired company based on"Accounting Standard for Business Combinations" (ASBJ Statement No. 21 issued on December 26,2008) and "Guidance on Accounting Standard for Business Combinations and Accounting Standard
for Business Divestitures" (ASBJ Guidance No.10 issued on December 26, 2008.)

21

ll. Supplementary data
(Notes) 1. Except for "10. Transition of principal management indices", fraction errors may occur due to rounding figures less than
100 million.
2. The forecast information in this supplementary data is reported based on available information as of the date hereof
and assumptions on uncertain factors which may have an effect on the future operating results. It could differ
significantly from the actual operating results due to various factors.

1. Summary of net sales and operating income and factors behind changes in operating income [Result]<Net sales>(Billions of yen)Segment

1stquarter

2ndquarter

2nd quarter(Accumulated)

3rdquarter

3rd quarter(Accumulated)

4thquarter

Condiments products
32.8
35.7
68.5
36.5
104.9
33.6
Egg products
21.1
21.7
42.8
20.7
63.5
22.1
Delicatessen products
20.9
23.2
44.1
24.6
68.7
22.8
Fiscal
Processed foods
14.0
15.6
29.6
14.7
44.3
14.8
Year
Fine chemical products
1.7
1.9
3.6
2.3
5.8
2.5
2012
Distribution system
28.1
28.8
56.9
29.4
86.3
29.4
Common business operations
1.4
1.6
3.0
1.4
4.4
1.8
Total
119.9
128.5
248.4
129.5
377.9
127.1
Condiments products
33.1
38.6
71.7
37.8
109.5
35.9
Egg products
21.8
22.3
44.1
22.2
66.3
24.8
Delicatessen
products
22.7
24.4
47.2
26.1
73.3
24.7
Fiscal
Processed
foods
13.8
15.4
29.1
14.8
43.9
14.5
Year
2013
Fine chemical products
2.3
2.2
4.5
2.3
6.8
2.9
(A)
Distribution system
28.4
29.9
58.4
31.1
89.5
30.9
Common business operations
2.8
1.7
4.5
1.4
5.9
1.7
Total
124.9
134.5
259.5
135.7
395.1
135.4
Condiments products
35.9
40.2
76.1
38.6
114.7
36.7
Egg products
24.1
25.3
49.4
24.0
73.4
26.1
Delicatessen
products
24.2
25.5
49.7
26.8
76.5
25.7
Fiscal
Processed
foods
13.6
15.0
28.6
14.1
42.7
14.5
Year
2014
Fine chemical products
2.3
2.8
5.1
2.3
7.5
3.2
(B)
Distribution system
30.0
31.2
61.2
32.7
93.9
32.9
Common business operations
1.3
1.5
2.8
1.3
4.1
1.4
Total
131.5
141.5
273.0
139.8
412.8
140.6
Condiments products
2.8
1.6
4.4
0.8
5.3
0.8
Egg products
2.2
3.0
5.2
1.9
7.1
1.3
Delicatessen products
1.5
1.1
2.6
0.7
3.2
1.0
Processed
foods
(0.2)
(0.4)
(0.5)
(0.7)
(1.3)
(0.0)
Changes(B) - (A) Fine chemical products
0.0
0.6
0.6
0.1
0.7
0.3
Distribution system
1.6
1.3
2.9
1.6
4.5
2.0
Common business operations
(1.4)
(0.2)
(1.7)
(0.1)
(1.8)
(0.3)
Total
6.6
7.0
13.5
4.1
17.7
5.2
(Notes) 1. Figures of "2nd quarter" are differences between "2nd quarter (Accumulated)" and "1st quarter".
2. Figures of "3rd quarter" are differences between "3rd quarter (Accumulated)" and "2nd quarter (Accumulated)".
3. Figures of "4th quarter" are differences between "Year" and "3rd quarter (Accumulated)".

22

Year

138.6
85.6
91.6
59.1
8.3
115.7
6.2
505.0
145.4
91.2
98.0
58.4
9.7
120.3
7.6
530.5
151.5
99.5
102.2
57.2
10.7
126.8
5.5
553.4
6.1
8.4
4.2
(1.3)
1.1
6.5
(2.1)
22.9

<Operating income>(Billions of yen)Segment

1stquarter

2ndquarter

2nd quarter(Accumulated)

3rdquarter

3rd quarter(Accumulated)

4thquarter

Condiments products
2.3
3.1
5.4
3.8
9.3
2.2
Egg products
1.3
1.4
2.7
1.2
4.0
0.9
Delicatessen products
0.5
0.9
1.5
1.1
2.5
0.6
Fiscal
Processed foods
(0.3)
(0.1)
(0.4)
(0.2)
(0.6)
(0.5)
Year
Fine chemical products
0.2
0.2
0.4
0.3
0.6
0.3
2012
Distribution system
0.7
1.0
1.6
1.1
2.8
0.5
Common business operations
0.2
0.2
0.5
0.2
0.7
0.1
Total
5.0
6.7
11.7
7.5
19.2
4.2
Condiments products
2.3
4.0
6.3
2.9
9.2
2.3
Egg products
0.6
1.1
1.8
1.1
2.9
0.5
Delicatessen
products
0.4
1.0
1.4
1.3
2.7
0.7
Fiscal
Processed foods
(0.4)
(0.0)
(0.4)
(0.1)
(0.5)
(0.4)
Year
2013
Fine chemical products
0.3
0.2
0.5
0.1
0.6
0.3
(A)
Distribution system
0.3
1.1
1.3
1.0
2.4
0.8
Common business operations
0.3
0.3
0.6
0.2
0.8
(0.0)
Total
3.9
7.6
11.5
6.6
18.1
4.3
Condiments products
2.3
3.6
5.9
3.3
9.1
2.4
Egg products
(0.1)
1.1
1.0
1.5
2.5
1.3
Delicatessen
products
0.4
1.1
1.5
1.1
2.6
0.7
Fiscal
Processed foods
(0.1)
0.2
0.2
0.1
0.3
(0.1)
Year
2014
Fine chemical products
0.2
0.3
0.5
0.1
0.6
0.4
(B)
Distribution system
0.6
0.9
1.5
1.0
2.5
1.1
Common business operations
0.3
0.3
0.5
0.3
0.8
0.2
Total
3.6
7.5
11.1
7.3
18.4
5.9
Condiments products
(0.1)
(0.4)
(0.4)
0.4
(0.0)
0.0
Egg products
(0.7)
(0.0)
(0.7)
0.3
(0.4)
0.8
Delicatessen products
(0.0)
0.1
0.1
(0.2)
(0.1)
(0.1)
0.3
0.3
0.6
0.2
0.8
0.3
Changes Processed foods(B) - (A) Fine chemical products
(0.1)
0.1
(0.0)
0.0
0.0
0.1
Distribution system
0.3
(0.1)
0.2
(0.1)
0.1
0.3
Common business operations
(0.1)
(0.0)
(0.1)
0.1
(0.0)
0.2
Total
(0.3)
(0.1)
(0.4)
0.7
0.3
1.6
(Notes) 1. Figures of "2nd quarter" are differences between "2nd quarter (Accumulated)" and "1st quarter".
2. Figures of "3rd quarter" are differences between "3rd quarter (Accumulated)" and "2nd quarter (Accumulated)".
3. Figures of "4th quarter" are differences between "Year" and "3rd quarter (Accumulated)".

23

Year

11.5
4.9
3.1
(1.0)
1.0
3.2
0.8
23.4
11.5
3.4
3.5
(0.9)
0.9
3.2
0.8
22.4
11.5
3.8
3.3
0.2
1.0
3.6
1.0
24.3
(0.0)
0.3
(0.2)
1.1
0.1
0.4
0.2
1.9

<Factors behind changes in operating income (comparison with the previous fiscal year)>(Billions of yen)

Fiscal year
2013
(A)

Fiscal year
2014
(B)

22.4

24.3

Operating income

Change(B) - (A)1.9(Billions of yen)

(1.6)

Depreciation expenses
Marketing expenses (sales promotion expenses and advertising expenses)

(1.0)
0.1

Research and development expenses (excluding depreciation expenses)

Increase in gross profit resulting fromincrease in net sales

5.6

(1.6)

Materials and energy costs
Impacts of fluctuations in the hen's egg market price(2.6)(Egg products business)

0.6

Retirement benefit costs(0.2)

Social insurance cost

Revisions to prices of condiments products

1.3

Improvement of total costs
(0.7)
(3.0)

(2.0)

(1.0)

0
0.0

2.0
Other than those above(such as distribution & payroll expenses and Distribution system business)

1.0

2.0

24

3.0

4.0

5.0

6.0

2. Net sales and operating income, and factors behind changes [Forecast]<Net sales>(Billions of yen)

Fiscal year 2015
(Forecast)(B)

Fiscal year 2014
(A)

Segment

151.5
99.5
102.2
57.2
10.7
126.8
5.5
553.4

Condiments products
Egg products
Delicatessen products
Processed foods
Fine chemical products
Distribution system
Common business operations
Total

Change(B) - (A)

158.5
98.0
107.0
63.0
13.5
127.0
6.0
573.0

7.0
(1.5)
4.8
5.8
2.8
0.2
0.5
19.6

<Operating income>(Billions of yen)

Fiscal year 2015
(Forecast)(B)

Fiscal year 2014
(A)

Segment

Change(B) - (A)

11.5
12.7
3.8
4.7
3.3
3.4
0.2
(0.8)
1.0
1.0
3.6
3.6
1.0
0.9
24.3
25.5
<Factors behind changes in operating income (comparison with the previous fiscal year)>

1.2
0.9
0.1
(1.0)
0.0
0.0
(0.1)
1.2

Condiments products
Egg products
Delicatessen products
Processed foods
Fine chemical products
Distribution system
Common business operations
Total(Billions of yen)

Fiscal year
2014
(A)

Fiscal year
2015
(Forecast)
(B)

24.3

25.5

Operating income

Change(B) - (A)

1.2(Billions of yen)

(3.4)

Depreciation expenses(0.5)

Marketing expenses (sales promotion expenses and advertising expenses)(0.3)

Research and development expenses (excluding depreciation expenses)

Increase in gross profit resulting fromincrease in net sales

7.1

(0.4)

Materials and energy costs
1.3

Impacts of fluctuations in the hen's egg market price(Egg products business)(0.4)

Retirement benefit costs
1.6

Improvement of total costs

Other than those above

(3.8)
(4.0)

(3.0)

(2.0)

(such as distribution & payroll expenses and Distribution system business)

(1.0)

0
0.0

1.0

2.0

25

3.0

4.0

5.0

6.0

7.0

8.0

3. Capital investments and main components of selling, general and administrative expenses[Result and forecast](Billions of yen)

Fiscal year
2012

Fiscal year
2013

Fiscal year
2014
(A)

Fiscal year
2015
(Forecast)(B)

Change(B) - (A)Capital investments

20.9

27.1

30.1

41.2

11.1

Depreciation expenses

14.1

14.6

16.1

19.5

3.4

Sales promotion expenses

19.5

20.5

21.4

20.7

(0.7)

Advertising expenses

7.9

7.9

8.0

9.3

1.3

Transportation and warehousing expenses

28.9

30.5

32.0

33.2

1.2

Payroll expenses

24.3

25.4

26.5

29.6

3.1

Research and development expenses

3.4

3.7

3.9

4.2

0.3

4. Domestic sales volume and amount of salads condiments by category type (Kewpie Corporation) [Result]Fiscal year
2012

Fiscal year
2013
(A)

Fiscal year
2014
(B)

Volume (Thousands of ton)

127

128

125

(3)

Amount (Billions of yen)

73.8

75.4

76.1

0.7

Volume (Thousands of ton)

107

107

105

(2)

Amount (Billions of yen)

40.9

41.5

41.8

0.3

Change(B) - (A)For household use

For commercial use* Results for the fiscal year 2012 have been reclassified in accordance with the change in product categories made in the fiscal
year 2013.

5. Summary of net sales and operating income in overseas operations [Result and forecast](Billions of yen)

Fiscal year
2012

Fiscal year
2013

Fiscal year
2014
(A)

Fiscal year
2015
(Forecast)(B)

Change(B) - (A)

18.4

23.8

31.6

37.0

5.4

China*

5.8

8.1

11.0

14.4

3.4

South-east Asia*

3.6

5.2

6.4

8.6

2.2

North America*

7.2

8.4

11.7

11.2

(0.5)

Export from Japan

1.7

2.1

2.6

2.8

0.2

0.8

1.2

2.8

3.1

0.3

Net sales in overseas operations

Operating income in overseas operations* For overseas subsidiaries, shown as China, South-east Asia and North America, figures are results from October to
September.

26

6. Results of non-operating income and expenses, extraordinary gains and losses
and principal items of changes in comparison with the fiscal year 2013 [Result](Billions of yen)

Non-operating
income andexpenses, net

Extraordinary gains
and losses, net

Fiscal year
2013

Fiscal year
2014

1.3

1.0

(1.3)

Principal items of changes(Comparison with the fiscal year 2013)
Decrease in equity in earnings of affiliates
Increase in business commencement expenses

(0.2)
(0.2)

Increase in gains on sales of shares of subsidiaries
and affiliates

0.2

Decrease in gains on negative goodwill(0.8)(0.8) Decrease in losses on disposal of fixed assets andlosses on impairment of fixed assets
Decrease in losses on withdrawal from employees'
pension fund

0.7
0.4

7. Forecasts of non-operating income and expenses, extraordinary gains and losses
and principal items of changes in comparison with the fiscal year 2014 [Forecast](Billions of yen)

Fiscal year2014
Non-operating
income andexpenses, net

Extraordinary gains
and losses, net

1.0

(0.8)

Fiscal year
2015
(Forecast)

Principal items of changes(Comparison with the fiscal year 2014)

0.7 Decrease in other non-operating income

0.6

Increase in extraordinary gains resulting from making
Aohata Corporation a consolidated subsidiary
Decrease in gains on sales of shares of subsidiaries
and affiliates
Decrease in gains on negative goodwill

27

(0.4)
1.9
(0.2)
(0.4)

8. Principal items of changes in balance sheets in comparison with the end of the fiscal year 2013 [Result](Billions of yen)

Fiscal year
2013

Fiscal year
Change2014

Principal items of changes(Comparison with the fiscal year 2013)(Assets)

146.4

Current assets
Fixed assets
Tangible andintangible
fixed assets

154.6

8.2

Increase in notes and accounts receivable- tradeIncrease in inventories

4.0
3.6
33.0
(16.1)(0.6)
3.0

Increase resulting from purchases

138.5

156.9

18.4 Decrease resulting from depreciation
Decrease resulting from impairment
Increase in investment securities

Investments and otherassets49.7

45.5(4.3) Decrease in prepaid pension costs and(7.5)

assets for retirement benefits(Liabilities)

124.4

136.6

12.2

Increase in notes and accounts payable - trade
Increase in accounts payable - other
Increase in loans payable

3.0
5.2
2.5

Increase in earned surplus
Decrease in treasury stock

10.0
2.2

(Net assets)

210.3

220.4

10.1

Increase in foreign currency translation
adjustments
Decrease in accumulated adjustments
for retirement benefits

2.0
(5.4)

9. Results of cash flows and principal items of changes in comparison with the fiscal year 2013 [Result](Billions of yen)

Fiscal year
2013

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

27.4(21.9)(2.3)

Fiscal year2014

Principal items of changes(Comparison with the fiscal year 2013)

34.4

Increase in income before income taxes and minority
interests
Decrease in notes and accounts receivable - trade
Decrease in notes and accounts payable - trade
Decrease in income taxes paid

6.7
(6.1)
6.0

Increase in purchases of tangible and intangible fixed assets(3.0)(30.8)

Increase in purchases of shares of subsidiaries andaffiliates
Decrease in proceeds from withdrawal of time depostis withmaturity over 3 months

Decrease in loans payable(3.1) Decrease in redemption of bonds
Increase in cash dividends paid

28

2.2

(2.2)
(3.0)
(0.9)
0.5
(0.2)

10. Transition of principal management indicesFiscal year
2010

Fiscal year
2011

Fiscal year
2012

Fiscal year
2013

Fiscal year
2014

Net sales (millions of yen)

471,010486,435

504,997

530,549

553,404

V.S. previous year (%)

4.2

3.3

3.8

5.1

4.3

22,11920,81623,36822,402

24,343

24.7

(5.9)

12.3

(4.1)

8.7

Operating income to net sales (%)

4.7

4.3

4.6

4.2

4.4

Ordinary income (millions of yen)

22,762

21,912

24,467

23,74925,368

Ordinary income to net sales (%)

4.8

4.5

4.8

4.5

4.6

10,613

9,449

12,291

12,567

13,366

2.3

1.9

2.4

2.4

2.4

Net assets (millions of yen)

180,901

185,293

195,928

210,285

220,397

Total assets (millions of yen)

287,957

275,790

306,515334,655

356,994

54.2

58.0

55.8

55.0

54.6

Cash flows from operating activities (millions of yen)

25,731

23,40533,24627,36934,392

Cash flows from investing activities (millions of yen)

(15,120)(12,166)(24,434)(21,897)(30,847)

Cash flows from financing activities (millions of yen)

(5,381)(19,583)

7,022(2,307)(3,149)10,611

11,239

8,811

5,471

3,545

33,121

24,50940,38743,96344,788Interest-bearing debt (millions of yen)

23,923

10,90923,18525,882

29,110Paid-in-capital (millions of yen)

24,104

24,104

24,104

24,104

24,104

Number of issued shares (thousands of shares)

155,464

153,000

153,000

153,000

153,000

Net assets per share (yen)1,029.26

1,068.67

1,141.68

1,230.32

1,284.36

Net income per share (yen)

69.97

62.63

82.09

83.94

88.69

Free cash flow per share (yen)

69.95

74.50

58.85

36.55

23.52

Return on equity (%)

7.0

6.0

7.4

7.1

7.0

Ordinary income to total assets (%)

8.1

7.8

8.4

7.4

7.3

Annual dividend per share (including interim dividend)

18.0

18.0

20.0

22.0

23.0

[8.0]

[9.0]

[9.5]

[11.0][11.5]0

Price earnings ratio (times)

14.6

16.9

14.6

17.3

21.9

Dividend payout ratio (%)

25.7

28.7

24.4

26.2

25.9

Dividend on equity ratio (%)

1.8

1.7

1.8

1.9

1.8

Number of regular full-time employees
Average number of temporary employees

11,732
10,923

12,028
10,83012,425
11,154

12,598
11,316

12,933
11,840Stock price at the end of the fiscal year (yen)

1,019

1,056

1,200

1,454

1,942

Operating income (millions of yen)
V.S. previous year (%)

Net income (millions of yen)
Net income ratio (%)

Equity ratio (%)

Free cash flow (millions of yen)(operating cash flow + investing cash flow)
Cash and cash equivalents at the end of the fiscal
year (millions of yen)[Interim dividend per share] (yen)(Note) Consumption taxes are not included in net sales.

29