Summary of Consolidated Financial Statements
for the Second Quarter of the Fiscal Year Ending November 30, 2017
[JAPAN GAAP]
July 3, 2017
Kewpie Corporation
Tokyo Stock Exchange2809
http://www.kewpie.co.jp/english/
Osamu Chonan,
Representative Director, President and Chief Executive Corporate Officer
Contact:
Masato Shinohara,
Corporate Officer and General Manager of Operation Promote Department
Scheduled date for filing quarterly securities report: July 14, 2017
Scheduled date for dividend payment: August 7, 2017
Quarterly supplementary data: Yes
Quarterly results briefing: Yes (for corporate investors and investment analysts)
Listed company name:
Listed exchange:
Securities code:
URL:
Representative:(Amounts are rounded down to the nearest million yen.)

1. Consolidated business results for the second quarter of the fiscal year ending November 30, 2017
(From December 1, 2016 to May 31, 2017)(1) Consolidated operating results (Cumulative)(Percentage figures show changes from the same period of the previous year.)Net sales
Six months ended
May 31, 2017
Six months ended
May 31, 2016

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

277,186

1.4

14,791

4.4

15,246

3.1

8,047

(1.6)

273,422

1.6

14,161

8.0

14,782

9.5

8,182(15.1)(Note) Comprehensive income:Six months ended May 31, 2017
Six months ended May 31, 2016

Earnings per share¥14,574 million (Increase of 73.3%)¥8,412 million (Decrease of 42.8%)

Earnings per share(diluted)Yen

Six months ended
May 31, 2017
Six months ended
May 31, 2016

Yen

53.69

–

54.02

–

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

As of May 31, 2017
As of November 30, 2016
(Reference) Shareholders’ equity:

Equity ratio

Millions of yen

414,845
385,914257,208
245,861

As of May 31, 2017
As of November 30, 2016

¥222,177 million¥212,620 million

i

%

53.6
55.1

2. Dividends
End of 1stquarter

End of 2ndquarter

Annual dividend per share
End of 3rd
Year-endquarter

Yen––

Fiscal year 2016
Fiscal year 2017

Yen

Yen

15.00
18.00

Fiscal year 2017 (Forecast)

Total
Yen

Yen

–

19.50

34.50

–

18.00

36.00

(Note) Revision to the most recently announced forecast of dividends: None

3. Forecasts of consolidated operating results for the fiscal year ending November 30, 2017
(From December 1, 2016 to November 30, 2017)
Net salesYear ending
November 30, 2017

(Percentage figures show changes from the previous year.)
Profit attributable toEarnings perowners of parent
share

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

560,000

1.4

31,0004.0

32,0002.0

17,4001.8

Yen

115.64(Note) Revision to the most recently announced forecast of consolidated operating results: Yes*Notes(1) Changes in significant subsidiaries during the six months (Changes in specified subsidiaries resulting in thechange in the scope of consolidation): None
(2) Application of special accounting treatments for the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies and estimates, and restatementsa) Changes in accounting policies due to revision of accounting standards: Noneb) Changes in accounting policies due to reasons other than “a)” (above): Nonec) Changes in accounting estimates: Noned) Restatements: None
(4) Number of issued shares (common stock)a) Number of issued shares at the end of the period (including treasury stock):
May 31, 2017
153,000,000 shares
November 30, 2016
153,000,000 sharesb) Number of shares of treasury stock at the end of the period:
May 31, 2017
1,834,803 shares
November 30, 2016
3,333,991 sharesc) Average number of shares during the period:
December 1, 2016 to May 31, 2017
149,879,862 shares
December 1, 2015 to May 31, 2016
151,467,232 sharesii

*Quarterly financial statements are not subject to quarterly review procedures under the Financial
Instruments and Exchange Act.
*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 the information currently
available to the Company and certain assumptions considered reasonable by the Company. Therefore, they are notguaranteed to be achieved by the Company. As a result, the forecasts of operating results may differ significantly from theactual operating results due to various factors.

iii

Table of contentsl.

Quarterly consolidated financial statements and major notes ................................................................... 2
1.

Quarterly Consolidated Balance Sheets .................................................................................................... 2

2.

Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ............................................................................................................................. 4(Quarterly Consolidated Statements of Income) (Six months ended May 31, 2016 and May 31, 2017) .... 4(Quarterly Consolidated Statements of Comprehensive Income) (Six months ended
May 31, 2016 and May 31, 2017) ............................................................................................................. 5

3.

Quarterly Consolidated Statements of Cash Flows .................................................................................... 6

4.

Notes regarding quarterly consolidated financial statements ..................................................................... 8(Notes regarding assumption of a going concern) ..................................................................................... 8(Notes regarding the significant changes in the amount of shareholders’ equity) ...................................... 8(Additional information) .............................................................................................................................. 8(Business combination) .............................................................................................................................. 8(Segment information)................................................................................................................................ 9(Significant subsequent events) ............................................................................................................... 10ll.

Supplementary data ...................................................................................................................................... 11
1.

Summary of net sales and operating income and factors behind changes in operating income ............... 11

2.

Capital investments and main components of selling, general and administrative expenses .................. 13

3.

Domestic sales volume and amount of salads condiments by category type (Kewpie Corporation) ........ 14

4.

Summary of net sales and operating income in overseas operations ...................................................... 14

5.

Summary of and principal items of changes in non-operating income (expenses) andextraordinary gains (losses) ..................................................................................................................... 15

6.

Summary of and principal items of changes in balance sheets ................................................................ 15

7.

Summary of and principal items of changes in cash flows ....................................................................... 16

8.

Transition of principal management indices ............................................................................................. 171

l. Quarterly consolidated financial statements and major notes
1. Quarterly Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Purchased goods and products
Work in process
Raw materials and supplies
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
Construction in progress
Other
Accumulated depreciation
Net book value
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Assets for retirement benefits
Other
Allowances for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

2

Previous fiscal year
(As of November 30, 2016)

Current second quarter(As of May 31, 2017)35,79475,1345,000
15,669
972
9,229
8,533
(173)
150,160

31,27079,90818,00015,0501,244
11,232
8,915(190)
165,432

179,789(99,764)
80,024
161,169(122,204)
38,96548,0997,238
22,922(13,871)
9,050
183,378

183,863(102,097)
81,765
166,372(120,021)
46,351
48,887
2,567
24,237(14,780)
9,457
189,028

1,563
4,112
5,675

4,574
4,183
8,757

27,408
7,413
12,092(213)
46,700235,754385,91431,258
8,293
12,282(207)
51,626249,413414,845(Millions of yen)Previous fiscal year
(As of November 30, 2016)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Accrued income taxes
Reserves
Other
Total current liabilities
Non-current liabilities
Bonds
Long-term loans payable
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
Non-controlling interests
Total net assets
Total liabilities and net assets

3

Current second quarter(As of May 31, 2017)

47,050
8,301
7,016
2,828
37,048102,245

49,471
8,753
5,122
4,749
26,01994,115

10,00012,4983,893
1,112
10,30337,807140,053

10,00036,7593,984
1,116
11,66063,521
157,637

24,10430,300166,765(6,123)215,047

24,10429,425
169,997(3,351)
220,175

8,916
79(3,947)(7,474)(2,426)33,240245,861
385,914

11,029(1)(2,007)(7,018)2,001
35,031
257,208
414,845

2. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income(Quarterly Consolidated Statements of Income)(Six months ended May 31, 2016 and May 31, 2017)(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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Business commencement expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gains on sales of investment securities
Gains on sales of fixed assets
Subsidy income
Total extraordinary gains
Extraordinary losses
Losses on disposal of fixed assets
Losses on impairment of fixed assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

4

Previous second quarter(From December 1, 2015
to May 31, 2016)

Current second quarter(From December 1, 2016
to May 31, 2017)

273,422
213,464
59,95745,795
14,161

277,186
213,885
63,301
48,50914,791

29
253
194
579
1,056

35
304
50
571
962

157
15
263
436
14,782

174
137
196
507
15,246

265
70
14
350

57
42
35
136

510
49
365
925
14,207
4,752
9,454
1,272
8,182

691
222
67
981
14,401
4,727
9,673
1,626
8,047

(Quarterly Consolidated Statements of Comprehensive Income)(Six months ended May 31, 2016 and May 31, 2017)(Millions of yen)

ProfitOther comprehensive income
Unrealized holding gains (losses) on securities
Unrealized gains (losses) on hedges
Foreign currency translation adjustments
Adjustments for retirement benefits
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controlling interests

5

Previous second quarter(From December 1, 2015
to May 31, 2016)

Current second quarter(From December 1, 2016
to May 31, 2017)

9,454

9,673

120
(13)
(1,452)303(1,042)
8,412

2,153
(98)
2,322
523
4,901
14,574

7,332

12,475

1,080

2,098

3. Quarterly Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Losses on impairment of fixed assets
Equity in losses (earnings) of affiliates
Losses (gains) on valuation of investment securities
Increase (decrease) in reserves
Increase (decrease) in liabilities for retirement benefits
Decrease (increase) in assets for retirement benefits
Interest and dividends income
Interest expenses
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
Other
Sub-totalInterest and dividends income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Acquisition of subsidiaries’ shares resulting in change in scope of
consolidation
Purchases of investment securities
Net decrease (increase) in short-term loans receivable
Payments of long-term loans receivableCollection of long-term loans receivable
Payments into time deposits
Payments for acquisition of business
Other
Net cash provided by (used in) investing activities

6

Previous second quarter(From December 1, 2015
to May 31, 2016)

Current second quarter(From December 1, 2016
to May 31, 2017)

14,207
10,326
49
(194)
166
1,824
0
(900)
(282)
157
448
(1,018)260
871(5,188)20,729286(156)(4,605)
16,253

14,401
8,052
222
(50)
1,882
17
(880)
(340)
174
652
(3,961)(501)
488(3,029)17,128347(156)(7,436)
9,882(14,327)(424)(15,528)
(480)

-

(82)

(88)
32
(33)
12
(3)
475
(14,357)

(884)
(181)
(251)
114
(195)
(4,380)152(21,717)(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to non-controlling interests
Repurchase of shares
Proceeds from sales of shares
Other
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

7

Previous second quarter(From December 1, 2015
to May 31, 2016)

Current second quarter(From December 1, 2016
to May 31, 2017)

100
3,940
(915)
(2,504)(295)(4,731)(605)(5,012)(590)(3,706)
34,841
31,134(464)
25,400(1,130)(2,918)
(479)
(2)
1
(861)
19,544571
8,281
40,79049,072

4. Notes regarding quarterly consolidated financial statements(Notes regarding assumption of a going concern)
Not applicable.
(Notes regarding the significant changes in the amount of shareholders’ equity)
Not applicable.
(Additional information)
Application of Guidance on Recoverability of Deferred Tax Assets
From the first quarter, the Company has applied “Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26, March 28, 2016).
(Business combination)
Business combination through acquisition
The Company decided to acquire the business of production and sale centered on mayonnaise and othercondiments from a condiment production company in Poland, Mosso Kwaśniewscy Sp.J., and awholly-owned subsidiary of the Company “Mosso Kewpie Poland Sp. z o.o.” and Mosso Kwaśniewscy Sp.J.
executed a business transfer agreement on September 29, 2016, and thus the business was acquired on
January 12, 2017.
(1)

Outline of the business combination(a) Names, and descriptions of businesses, of the companies involved in the business combination(i) Company to acquire the business
Name:
Mosso Kewpie Poland Sp. z o.o.
(consolidated subsidiary of the Company)
Description of the business: Production and sale centered on mayonnaise and other condiments(ii) Company to transfer the business
Name:
Mosso Kwaśniewscy Sp.J.
Description of the business: Production and sale centered on mayonnaise and other condiments(b) Primary reason for the business combination
The primary reason for the business combination is to accelerate our expansion in Europe byacquiring brands, production centers and sales channels in Eastern Europe.
(c) Date of the business combination
January 12, 2017(d) Legal form of the business combination
Acquisition by business transfer(e) Name of the company after the business combination
Mosso Kewpie Poland Sp. z o.o.
(f) Primary basis for determining the acquiring company
Mosso Kewpie Poland Sp. z o.o., a consolidated subsidiary of the Company, acquired the businessof production and sale centered on mayonnaise and other condiments in consideration for cash.

(2)

Period of the financial results of the acquired business included in the quarterly consolidated
statements of income
From January 12, 2017 to March 31, 2017 (the end of the second quarter of the “acquiring company” is
March 31)

(3)

Cost of acquisition of the acquired business and the breakdown thereof by consideration type
Consideration of acquisition
Cash and deposits ¥4,547 million
Cost of acquisition¥4,547 million(4)

Details and amount of the principal acquisition-related costs
Remuneration and commissions to advisors¥191 million

8

(5)

Amount of the goodwill recognized, reason for the recognition, and method and period for amortizationof the goodwill(a) Amount of the goodwill recognized¥3,051 million
The amount of goodwill is a provisional figure and based on the reasonable information currently
available, since the allocation of the acquisition costs has not been finalized.
(b) Reason for the recognition
The goodwill is recognized from future excess earning power expected to be generated from futurebusiness operations(c) Method and period for amortization
The goodwill is amortized by the straight-line method over 10 years(6)

Amounts and primary components of acquired assets and assumed liabilities as of the date of thebusiness combination
Current assets¥1,266 million
Fixed assets¥1,296 million
Total assets¥2,562 million
Current liabilities
Non-current liabilities
Total liabilities(7)¥1,002 million¥63 million¥1,066 million

Approximate amount of impact of the above mentioned business combination on the quarterly
consolidated statements of income for the first six months of this fiscal year on the assumption that thebusiness combination was completed at the beginning of the fiscal year.
It is omitted here due to its immateriality. No audit attestation has been received for the provisional
calculation of the above mentioned approximate amount.

(Segment information)[Segment information]
I. Previous second quarter (From December 1, 2015 to May 31, 2016)
1. Information on amounts of net sales and profit or loss by reported segment(Millions of yen)

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

Distribution
systemCommonbusiness
operations

Amount reported
on the quarterly
consolidated
statement ofincome(Note)

Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

71,78751,86254,061

25,686

5,306

62,2682,450

273,422–

273,422

3,890

3,169

138

1,056

158

12,337

5,090

25,839(25,839)–

75,677
6,204

55,031
3,156

54,1991,486

26,742
318

5,464
598

74,605
2,125

7,540
272

299,262
14,161(25,839)–

273,422
14,161

Total

Adjustments(Note) Adjustments are made between “Segment profit” and “Operating income” reported on the quarterly consolidated statement ofincome.

2. Information on losses on impairment of fixed assets or goodwill, etc. by reported segment(Significant losses on impairment of fixed assets)
For the six months ended May 31, 2016, the Company recorded losses on impairment of fixed assets of ¥47
million in the “Distribution system” segment and of ¥2 million in the “Common business operations” segment.
(Significant changes in amount of goodwill)
Not applicable.

9(Significant gains on negative goodwill)
Not applicable.
II. Current second quarter (From December 1, 2016 to May 31, 2017)
1. Information on amounts of net sales and profit or loss by reported segment(Millions of yen)

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

Distribution
systemCommonbusiness
operations

Amount reported
on the quarterly
consolidated
statement ofincome(Note)

Condiments
products

Egg
products

Delicatessen
products

Processed
foods

Fine
chemicalproducts

73,95049,93756,82423,234

5,096

64,203

3,939

277,186–

277,186

3,685

3,078

117

1,094

189

13,353

5,842

27,361(27,361)–

77,635
7,344

53,0152,033

56,941
1,655

24,329
280

5,286
136

77,557
2,888

9,781
452

304,547
14,791(27,361)–

277,186
14,791

Total

Adjustments(Note) Adjustments are made between “Segment profit” and “Operating income” reported on the quarterly consolidated statement ofincome.

2. Information on losses on impairment of fixed assets or goodwill, etc. by reported segment(Significant losses on impairment of fixed assets)
Not applicable.
(Significant changes in the amount of goodwill)In the six months ended May 31, 2017, a consolidated subsidiary of the Company recorded goodwill of¥3,051 million in the “Condiments products” segment following a transfer of business from MossoKwaśniewscy Sp.J. The amount of goodwill is provisional and based on rational information that was
obtainable, because the allocation of the acquisition cost has not been finalized.
(Significant gains on negative goodwill)
Not applicable.
(Significant subsequent events)
1. Abolishment of a consolidated subsidiary’s defined-benefit pension plan
HENNINGSEN FOODS, INC., a consolidated subsidiary of the Company (the end of the second quarter for
HENNINGSEN FOODS, INC. is March 31), is proceeding with the abolishment of its defined benefit pension
plan, and conducted partial lump-sum payments on June 1, 2017 and June 16, 2017.
The amount of the effect from this event is currently under calculation.
2. Sales of investment securities
The Company resolved, at the meeting of its Board of Directors held on June 26, 2017, to sell a part of theshares of Nakashimato Co., Ltd., an “other affiliated company,” held by the Company, and sold such shares onJune 30, 2017.
Accordingly, extraordinary gains of ¥1,058 million are expected to be recorded in the financial results for thethird quarter of the fiscal year ending November 30, 2017.

10

ll. Supplementary data
(Notes) 1. Fraction errors may occur due to rounding figures less than 100 million (excluding “8. Transition of principal management
indices”).
2. Planned figures in this supplementary data are figures disclosed on July 3, 2017.
3. The following changes took effect at the beginning of fiscal year 2016.
◊ Certain sales promotion expenses and transportation and warehousing expenses were deducted from net sales.
The figures presented for fiscal year 2015 have been adjusted in accordance with the new accounting method applied infiscal year 2016.
◊ The domestic consolidated subsidiaries have changed the depreciation method from the declining balance basis to thestraight-line basis.
The figures for fiscal year 2015 have not been retrospectively adjusted for the change in the depreciation method.

1. Summary of net sales and operating income and factors behind changes in operating income<Net sales>(Billions of yen)Segment
Condiments products
Egg products
FiscalYear
2015

Delicatessen products
Processed foods

Fine chemical products(Adjusted) Distribution system
Common business operations
Total
Condiments products
Egg products
Fiscal
Year
2016
(A)

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

Fiscal
Year
2017
(B)

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

Change Processed foods(B) - (A) Fine chemical products
Distribution system
Common business operations
Total

1st
quarter

4th
3rd
2nd
2nd quarter3rd quarter
quarter (Cumulative) quarter (Cumulative) quarter

Year

33.2
24.6
23.2
13.1
2.4
31.2
1.5
129.2
34.0
25.7
26.0
12.0
2.7
30.4
1.3
132.1

36.8
26.2
25.2
15.5
3.1
31.9
1.4
140.0
37.8
26.1
28.1
13.6
2.6
31.8
1.2
141.3

70.0
50.7
48.4
28.6
5.5
63.1
2.9
269.2
71.8
51.9
54.1
25.7
5.3
62.3
2.5
273.4

142.2
104.6
100.4
57.5
11.3
127.7
5.9
549.8
144.1
102.2
111.8
51.3
10.9
126.9
5.2
552.3

34.3
24.0
27.5
11.0
2.3
31.0
2.0
132.1

39.7
25.9
29.3
12.3
2.8
33.2
2.0
145.1

74.0
49.9
56.8
23.2
5.1
64.2
3.9
277.2

149.6
102.2
116.4
46.1
10.4
129.6
5.7
560.0

0.3
(1.7)
1.6
(1.1)
(0.4)
0.6
0.7
(0.1)

1.9
(0.2)
1.2
(1.4)
0.2
1.4
0.8
3.8

2.2
(1.9)
2.8
(2.5)
(0.2)
1.9
1.5
3.8

5.5
(0.0)
4.6
(5.2)
(0.5)
2.7
0.5
7.7

37.3
25.9
26.5
14.5
2.8
32.7
1.4
141.1
37.8
24.8
28.8
12.5
2.8
32.4
1.4
140.5

107.3
76.6
74.9
43.1
8.3
95.8
4.3
410.3
109.6
76.7
82.9
38.1
8.1
94.7
3.8
413.9

34.9
28.0
25.6
14.4
3.0
32.0
1.7
139.5
34.5
25.5
28.9
13.1
2.8
32.2
1.3
138.4

(Notes) 1. Figures of “Year” in Fiscal Year 2017 indicate planned figures disclosed on July 3, 2017.
2. Figures of “2nd quarter” are differences between “2nd quarter (Cumulative)” and “1st quarter.”
3. Figures of “3rd quarter” are differences between “3rd quarter (Cumulative)” and “2nd quarter (Cumulative).”
4. Figures of “4th quarter” are differences between “Year” and “3rd quarter (Cumulative).”11

<Operating income>(Billions of yen)Segment
Condiments products
Egg products
FiscalYear
2015

Delicatessen products
Processed foods

Fine chemical products(Adjusted) Distribution system
Common business operations
Total
Condiments products
Egg products
Fiscal
Year
2016
(A)

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

Fiscal
Year
2017
(B)

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

Change Processed foods(B) - (A) Fine chemical products
Distribution system
Common business operations
Total

1st
quarter

4th
3rd
2nd
2nd quarter3rd quarter
quarter (Cumulative) quarter (Cumulative) quarter

3.8
1.3
1.0
0.0
0.1
1.4
0.2
7.8
4.7
1.4
1.1
0.3
0.3
1.4
0.2
9.3

10.1
4.0
2.0
0.1
0.2
3.6
0.9
20.9
10.9
4.6
2.6
0.6
0.9
3.5
0.4
23.4

2.4
1.4
0.7
(0.4)
0.2
1.1
0.0
5.4
2.8
0.9
0.9
(0.1)
0.1
1.4
0.3
6.4

Year

2.5
1.5
0.3
(0.2)
0.0
1.0
0.3
5.4
1.6
1.5
0.3
(0.2)
0.2
0.9
0.0
4.4

3.8
1.3
0.8
0.3
0.1
1.2
0.3
7.8
4.6
1.7
1.1
0.5
0.4
1.2
0.2
9.8

6.3
2.7
1.1
0.1
0.1
2.2
0.6
13.1
6.2
3.2
1.5
0.3
0.6
2.1
0.3
14.2

2.6
1.0
0.6
(0.1)
(0.0)
1.3
0.2
5.6

4.8
1.0
1.1
0.3
0.1
1.6
0.3
9.2

7.3
2.0
1.7
0.3
0.1
2.9
0.5
14.8

15.0
4.2
4.1
0.3
0.8
5.8
0.8
31.0

1.0
(0.4)
0.2
0.2
(0.2)
0.4
0.2
1.2

0.2
(0.7)
(0.1)
(0.2)
(0.2)
0.4
0.0
(0.6)

1.1
(1.1)
0.2
(0.0)
(0.5)
0.8
0.2
0.6

1.3
(1.3)
0.6
(0.2)
(0.2)
0.9
0.0
1.2

(Notes) 1. Figures of “Year” in Fiscal Year 2017 indicate planned figures disclosed on July 3, 2017.
2. Figures of “2nd quarter” are differences between “2nd quarter (Cumulative)” and “1st quarter.”
3. Figures of “3rd quarter” are differences between “3rd quarter (Cumulative)” and “2nd quarter (Cumulative).”
4. Figures of “4th quarter” are differences between “Year” and “3rd quarter (Cumulative).”

12

12.5
5.4
2.8
(0.3)
0.4
4.8
0.9
26.4
13.7
5.5
3.5
0.5
1.0
4.9
0.8
29.8

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

Fiscal year
2016
(A)

*
*

Fiscal year
2017
(B)

Change(B) - (A)First half

14.2

14.8

0.6

Second half
(Plan)

15.7

16.2

0.6

Year

29.8

31.0

1.2

Figures of second half (plan) indicate differences between the whole year and the first half.
The Company recognized a one-time write-off of residual book value amounting to negative ¥2.8 billion that occurred in the firstquarter of fiscal year 2016 as a result of the change to the depreciation method applied in fiscal year 2016.
The above had the effect of increasing operating income by ¥2.8 billion, which is reflected in the above graph.

2. Capital investments and main components of selling, general and administrative expenses(Billions of yen)

2nd quarter 2nd quarter2nd quarter
2015
2016
2017
(Cumulative) (Cumulative) (Cumulative)(Adjusted)(A)(B)

Change(B) - (A)Fiscal year
2015
(Adjusted)

Fiscal year
2016

Fiscal year
2017
(Plan)

Capital investments

20.5

15.1

16.2

1.1

32.4

33.0

31.4

Depreciation expenses

9.0

10.3

8.1

(2.3)

19.1

18.3

16.8

Sales promotion
expenses

1.7

1.7

1.9

0.2

3.5

3.7

4.1

Advertising expenses

4.3

4.2

5.2

1.0

8.7

8.7

9.7

Transportation andwarehousing expenses

12.5

12.5

12.7

0.3

25.0

25.0

25.7

Payroll expenses

14.0

14.5

15.5

1.0

28.7

29.8

31.3

Research anddevelopment expenses

1.9

1.8

1.9

0.1

4.2

4.0

4.3

13

3. Domestic sales volume and amount of salads condiments by category type (Kewpie Corporation)
2nd quarter 2nd quarter 2nd quarter
2017
2016
2015
(Cumulative) (Cumulative) (Cumulative)(B)(A)(Adjusted)
For householduseVolume(Thousands of ton)Amount(Billions of yen)

VolumeFor commercial (Thousands of ton)useAmount(Billions of yen)

Change(B) - (A)Fiscal year
2015
(Adjusted)

Fiscal year
2016

63

65

64

(0)

126

126

32.1

32.5

32.8

0.3

63.8

63.9

53

53

54

1

106

107

20.6

20.4

20.3

(0.1)

41.6

41.3

4. Summary of net sales and operating income in overseas operations<Net sales>(Billions of yen)

2nd quarter 2nd quarter 2nd quarter
2015
2016
2017
(Cumulative) (Cumulative) (Cumulative)(Adjusted)(A)(B)
Net sales in overseas operations
China

Fiscal year
2016

Fiscal year
2017
(Plan)

17.4

19.2

19.7

0.5

37.7

37.8

41.7

6.3

7.4

8.3

0.9

14.2

15.7

18.2

4.0

3.9

4.1

0.2

7.9

7.6

8.5

Condiments
products

2.4

3.0

3.2

0.2

5.4

6.3

6.2

Egg
products

3.4

3.3

2.1

(1.3)

7.5

5.5

4.0

1.4

1.5

2.1

0.5

2.7

2.7

4.8

Southeast Asia

North America

Change(B) - (A)Fiscal year
2015
(Adjusted)

Export from Japan* For overseas subsidiaries, figures of “2nd quarter” are results from October to March, while figures of “fiscal year” are results from
October to September.
* The change of “Net sales in overseas operations” includes a 1.6 billion yen reduction caused by the impact of the exchange rate.

<Operating income>(Billions of yen)

2nd quarter 2nd quarter2nd quarter
2017
2016
2015
(Cumulative) (Cumulative)(Cumulative)(B)(A)

Change(B) - (A)Fiscal year
2015

Fiscal year
2016

Fiscal year
2017
(Plan)

1.8

2.0

1.0

(1.0)

4.0

3.3

2.2

China

0.7

0.9

0.9

0.1

1.7

2.2

2.5

Southeast Asia

0.1

0.1

0.1

0.0

0.0

0.2

0.3

Condiments
products

0.2

0.2

0.2

0.0

0.5

0.5

0.4

Egg products

0.7

0.5

(0.5)

(0.9)

1.5

0.1

(1.2)

0.2

0.3

0.1

(0.1)

0.3

0.4

0.3

Net sales in overseas operations

North America
Export from Japan* For overseas subsidiaries, figures of “2nd quarter” are results from October to March, while figures of “fiscal year” are results from
October to September.
* The change of “Net sales in overseas operations” includes a 0.1 billion yen reduction caused by the impact of the exchange rate.

14

5. Summary of and principal items of changes in non-operating income (expenses) and extraordinary gains(losses)(Billions of yen)

2nd quarter2nd quarter
2016
2015
(Cumulative)(Cumulative)(A)
Non-operating
income(expenses),net

Extraordinary
gains(losses), net

2nd quarter
2017(Cumulative)(B)

Items of changes[Comparison with 2nd quarter2016 (cumulative)](B) - (A)
Decrease in equity inearnings of affiliates

0.4

0.6

0.5 Increase in business
commencement
expenses

1.5

(0.6)

(0.8)

Fiscalyear
2015

Fiscalyear
2017(Plan)

Fiscal
year
2016

(0.1)
0.9

1.5

1.0

1.4

(1.1)

(0.9)

(0.1)

Decrease in gains onsales of investment
securities(0.2)

Increase in losses on
disposal of fixed
assets

(0.2)

6. Summary of and principal items of changes in balance sheets(Billions of yen)

Fiscal year
2016
(A)

2nd quarter
2017
(B)

Change(B) - (A)

Items of changes[Comparison with fiscal year 2016](Assets)

Current assets

150.2

165.4

15.3

Decrease in cash and deposits(4.5)

Increase in notes and accounts receivable- trade4.8

Increase in securities

13.0

Increase resulting from purchases

13.1

Decrease resulting from depreciation(8.1)

Increase in goodwill

3.0

Increase in investment securities

3.9

Decrease in accounts payable - facilities(4.6)

Fixed assets
Tangible andintangible fixed
assets

189.1

Investments andother assets

46.7

197.8

8.7

51.6

4.9

(Liabilities)

140.1

157.6

17.6

Decrease in accrued expenses(2.5)

Increase in loans payable

24.7

Increase in earned surplus

3.2

Decrease in treasury stock

2.8

Increase in unrealized holding gains(losses) on securities

2.1

Increase in foreign currency translation
adjustments

1.9(Net assets)

245.9

257.2

11.3

15

7. Summary of and principal items of changes in cash flows(Billions of yen)

2nd quarter2nd quarter
2016
2015
(Cumulative)(Cumulative)(A)

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

10.6(20.0)

(3.5)

16.3

(14.4)(5.0)

2nd quarter
2017(Cumulative)
(B)

9.9

(21.7)

Items of changes[Comparison with 2ndquarter 2016 (cumulative)](B) - (A)
Decrease indepreciation
andamortization(2.3)

Increase in notes
and accounts
receivable trade(2.9)

Increase in
Income taxes
paid

(2.8)

Increase inpurchases oftangible fixed
assets(1.2)

Increase inpayments foracquisition ofbusiness(4.4)

Increase in loans
payable20.7

19.5 Decrease inrepurchase ofshares16

4.7

Fiscal year
2015

Fiscal year
2016

28.1

45.3

(31.2)(32.0)

(7.1)

(5.8)

8. Transition of principal management indices

Net sales (millions of yen) *1
Operating income (millions of yen)

2nd quarter
2015(Cumulative)

2nd quarter
2016(Cumulative)

2nd quarter
2017(Cumulative)

Fiscal year
2015

Fiscal year2016

269,198

273,422

277,186

549,774552,306

13,117

14,161

14,791

26,35429,818Operating income to net sales (%)

4.9

5.2

5.3

4.8

5.4

Ordinary income (millions of yen)

13,501

14,782

15,24627,22431,364

Ordinary income to net sales (%)

5.0

5.4

5.5

5.0

5.7

9,640

8,182

8,047

16,97317,093

3.6

3.0

2.9

3.1

3.1

Net assets (millions of yen)

235,359

245,626

257,208

244,717245,861

Total assets (millions of yen)

373,092

377,712414,845

373,017385,914

54.9

56.4

53.6

57.1

55.1

Cash flows from operating activities(millions of yen)

10,596

16,253

9,882

28,09445,260Cash flows from investing activities(millions of yen)

(20,006)(14,357)(21,717)(31,181)(32,046)

Cash flows from financing activities(millions of yen)

(3,478)(5,012)

19,544(7,101)(5,805)

Free cash flow (millions of yen)(operating cash flow + investing cash flow)(9,410)1,896(11,835)(3,086)

13,213

Cash and cash equivalents at the end of theperiod (millions of yen)

32,28931,13449,072

34,84140,790Interest-bearing debt (millions of yen)

30,62233,92060,99330,55936,066

1,349.92

1,423.57

1,469.76

1,403.05

1,420.63

63.51

54.02

53.69

111.82113.47(61.99)12.52(78.96)(20.34)87.72

Interim (annual) dividend per share (yen)

12.5

15.0

18.0

29.0

34.5

Number of regular full-time employees

13,495

13,941

14,794

13,47814,095

Average number of temporary employees

11,777

11,254

11,511

11,51911,150Stock price at the end of the period (yen)

2,742

2,975

2,890

2,953

2,703

Profit (millions of yen) *2
Ratio of profit to net sales (%) *2

Equity ratio (%)

Net assets per share (yen)Profit per share (yen) *2
Free cash flow per share (yen)*1 Consumption taxes are not included in net sales.
*2 “Profit” in this chart refers to “profit attributable to owners of parent.”

17