Summary of Conssolidated Finnancial Statements
for thhe Fiscal Yea
ar Ended No
ovember 30, 2016
[J
JAPAN GAAAP]
Januaryy 11, 2017
Kewp
pie CorporatioonTokyoo Stock Excha
ange
2809
http:///www.kewpie..co.jp/english/
Mines
saburo Miyake
ative Director, President andd Chief Executivee, Representa
Corporate Officer
Contact:
ato Shinohara ,Masa
Corporate Officer aand General Manager
Mof Op
peration Prom ote Departme
ent
Schedule
ed date for ord
dinary general meeting of sh
hareholders: FebruaryF24, 2017
Schedule
ed date for diviidend paymen
nt: February 3,, 2017
Schedule
ed date for filin
ng annual secu
urities report: February 28, 20172
Suppleme
entary data: Yes
Y
Results b
briefing: Yes (foor corporate innvestors and iinvestment annalysts)
Listed com
mpany name:
Listed excchange:
Securitiess code:
URL:
ntative:
Represen(Amounts are rounded doown to the nearestt million yen.)

1. Conso
olidated busin
ness results for the fiscal year ended NovemberN30
0, 2016(From December 1, 2015 to Nov
vember 30, 20
016)(1) Coonsolidated op
perating resultts(Percentage figures
fshow channges from the samme period of the prrevious year.)Net sales
Fiscal year 2016
Fiscal year 2015

Operating incoome

Profit attrib
butable toowners off parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%%

Millions of yen%

552,306
6
549,774
4

0.5–

29,81826,35413.1–

31,36427,22415.22–

17,093
16,9730.7–(Note) C
Comprehensive income:Fiscal year 2016
Fiscal year 2015

¥110,955 million (DDecrease of 58.1%%)¥226,159 million (–%)

Earn
nings persharee (diluted)

Earnings
s per
share
e
Yen

113.471
111.82
1

Fiscal year 2016
Fiscal year 2015

ReturnR
on equityyYenOrdinary inccome
to total asssets%––

Operating income
to ne
et sales

%

8.0
8.3

8.3
7.5

%

5.4
4.8

(Reference) Equity in ea
arnings or losses
s of affiliates: Fiiscal year 2016 ¥295 million
Fiiscal year 2015 ¥134 million(Notes) 1. Because results have been re
etrospectively addjusted in accord
dance with chang
ges in accountingg policies, the comparative
nted.
year-on-yearr rate of change for fiscal year 20015 is not presen
2. Earnings perr share is based on profit attributaable to owners ofo parent.

(2) Coonsolidated fin
nancial positioonTootal assets
As of N
November 30, 20162
As of N
November 30, 20152
(Reference) Shareholdeers' equity:

Net asse
ets

Equity ratio

Net assets per share

Millions of yen

MillionsMof yen%Yen

385,914373,017245,8612
244,717
2

55.11
57.11

1,420.63
1,403.05

As of November 300, 2016
As of November 300, 2015

¥212,620 million¥212,937 million

onsolidated ca
ash flows(3) CoNet cassh provided by(used in) operating
activitiesaMillions of yen

Fiscal year 2016
Fiscal year 2015

45,26028,094

Net cash prov
vided by(used in) inv
vesting
activitie
esMillionsMof yen(32
2,046)(31
1,181)Net cashCash ancprovided bby
nd cash(used in) financingg
equivalents at the end
activitiesof the fiscal year
Millions of yyen

(5,805)(7,101)Millions of yen

40,7904
34,841(Note) T
The effect of retro
ospectively apply
ying changes in aaccounting policiies is reflected in the figures pressented for fiscal yeary2015.

2. Divideends
End of
1stquarter

AnnualA
dividendd per share
End of End oof
Year3rd
2nd
endquarterq
erquarteYen

Fiscal year 2015
Fiscal year 2016
Fiscal year 2017
(Foreccast)

Yen

Y
Yen

Total
T

Total amountsof dividends

Div
vidend on
Divvidend
payoout ratio
eqquity ratio(Conssolidated) (Connsolidated)

Yen

Yen

Millions of yen

%

%

–
–

12.50
15.00

–
–

16.50
19.50

29.00
2
34.50
3

4,401
5,163

25.9
30.4

2.2
2.4

–

18.00

–

18.00

36.00
3

30.1

(Notes) The amount of year-end dividennd for fiscal yearr 2016 is a forec
cast and it will bee determined at the meeting of thet Board of
Directors to be held on January 25, 2017.
The year-end dividenddfor fisca
al year 2015 inccludes a dividendd of ¥1 to commmemorate the 900th anniversary ofo launching
mayonnaise.
plying changes inn accounting poliicies is reflected in the figures preesented for fiscal year 2015.
The effect of rettrospectively app

asts of conso
olidated operrating results
s for the fisca
al year endingg November 330, 2017
3. Foreca(From December 1, 2016 to Nov
vember 30, 20
017)(Percentage figures
fshow channges from the samme period of the prrevious year.)
Profit atttributable toEarnings
E
perOperatiing income
Ordinary incommeownerrs of parent
share

Net sales
Six moonths ending
Mayy 31, 2017
Yea
ar endingNovember 30, 2017

Millions of yen%

Millions of yen%

Millions of yen%

Millions oof yen%

Yen

279,000

2.0

15,60
00

10.2

16,1008.9

8,66005.1

57.30

565,000

2.3

33,00
00

10.7

34,1008.7

18,0000

5.3

119.53*Notes(1) Chhanges in significant subsid
diaries during
g the period (Changes in specifiedssubssidiaries resultting in thechhange in the sccope of conso
olidation): Non
ne(2) Chhanges in accounting policie
es and estima
ates, and resta
atementsa) Changes in accountingapolicies due to reevision of accounting standards: Yesb) Changes in accountingapolicies due to reeasons other thant"a)" (aboove): Yesc) Changes in accountingaesttimates: Yesd) Restatementts: None
(N
Note)
Fo
or details, plea
ase refer to "III. Consolidate
ed financial sta
atements: 5. Notes
N
regardinng consolidated financial
sta
atements (Chhanges in acc
counting policcies) and (Chhanges in acc
counting policcies that are difficult todisstinguish fromm the changes in accounting
g estimates, anda changes in accounting estimates)" on page 14
an
nd page 15.
umber of issue
ed shares (commmon stock)(3) Nua) Number of issued shares ata the end of th
he period (including treasurry stock):0, 2016153,0
000,000 shareesNovember 30
November 30
0, 2015153,0000,000 shareeshares of treasury stock at thhe end of the period:pb) Number of sh
November 30
0, 2016
3,3
333,991 shareesNovember 30
0, 20151,2
232,318 shareesc) Average num
mber of sharess during the peeriod:
December 1, 2015 to Noveember 30, 201
16150,6636,098 sharees
December 1, 2014 to Noveember 30, 201
15151,7783,255 shareesof implementa
ation of auditting procedurres*Status oThis ssummary of connsolidated financial statementss is outside the scope of the au
uditing procedurres based on th
he Financial
Instruments and Excchange Act. As of the time of i ts disclosure, auditingaproceduures for consoli dated financial statements
d financial statements based onn the Financial Instruments andd Exchange Act are still in proce
ess of being
and non-consolidated
mented.
implement for an app
propriate usage of the fore
ecasts of ope
erating resultts and other sspecial notess*Stateme
The fforecasts and otheroforward loooking statemen
nts contained in this summary
y are based onn the informatio
on currently
availaable to the Com
mpany and cerrtain assumptio
ons considered reasonable byy the Companyy. Therefore, th
hey are notguara
anteed to be achhieved by the Company.
C
As a rresult, the forec
casts of operatin
ng results may differ significantly from theactual operating resu
ults due to various factors.

*Cash flo
ow index
Equity ratio (%)
Equity ratio based on market value (%%)
Interesst-bearing debt to cash flows raatio (year)
Interesst coverage ratioo (times)F
Fiscal year
2012

FiscalF
year
2013

Fiscal year
2014

Fiiscal year
2015

Fiscal year
2016

55.8
58.6
0.7
165.0

55.0
65.1
0.9
105.1

54.6
82.6
0.8
116.0

57.1
120.1
1.1
89.5

55.1
104.8
0.8
146.4

(Notes) Fiscal year 2015 includes data that has been reetroactively revis
sed in order to reeflect changes too standards for reecording net
sales.
Equity ratio = Shareholders'S
equuity / Total assetss
Equity ratio bassed on market va
alue = Total markket value of the sttock / Total assetts
Interest-bearing
g debt to cash flo
ows ratio = Intereest-bearing debt / Cash flows
Interest coverag
ge ratio = Cash flowsf/ Interest paaid* Each index iss calculated baseed on consolidateed financial figurres.
* Total market value of the stoc
ck is calculated bby multiplying thee final market pricce by the numbeer of issued sharees at the endof the fiscal yeary(excluding trreasury stock).
* Interest-bearring debt includes
s all consolidatedd balance sheet--reported liabilitie
es on which intere
rest is paid.
* Cash flows anda Interest paid are the same figgures as found unnder "Net cash providedpby (usedd in) operating ac
ctivities" and"Interest paidd" reported in thee consolidated staatements of cash
h flows, respectiv
vely.

Tab
ble of conte
ents
Basicc policy on earrnings distribu
utions, and divvidends for thee current and nextnfiscal yeaars .............................. 2
Manaagement policcies .......................................................................................................................................... 2
1. B
Basic policies of Company managementm..................................................................................................... 2
2. M
Management indexibenchmmarks .................................................................................................................. 2
3. M
Medium- to lon
ng-term busine
ess strategiess of the Compaany, and challenges ahead.................................... 3
III. Conssolidated finan
ncial statements ...................................................................................................................... 4
1. C
Consolidated BalanceB
Shee
ets ...................................................................................................................... 4
2. C
Consolidated StatementsS
off Income and C
Consolidated Statements off Comprehenssive Income ................ 6((Consolidated Statements ofo Income) .......................................................................................................... 6((Consolidated Statements ofo Comprehenssive Income) ............................................................................... 7
3. C
Consolidated StatementsS
off Changes in N
Net Assets ................................................................................... 8
4. C
Consolidated StatementsS
off Cash Flows ................................................................................................... 10
5. N
Notes regardin
ng consolidate
ed financial sta
atements ................................................................................... 12((Notes regardiing assumption of a going cconcern) .................................................................................... 12((Significant ma
atters forming the basis for tthe preparatio
on of consolida
ated financial sstatements) ............. 12((Changes in accounting poliicies) ............................................................................................................... 14((Changes in accounting poliicies that are ddifficult to distinguish from the changes inn accounting estimates,eaand changes in accounting estimates)e....................................................................................................... 15((Segment information)................................................................................................................................ 16((Per share info
ormation) .............................................................................................................................. 21((Significant subsequent events) ................................................................................................................. 22
IV. Others ............................................................................................................................................................... 23
plementary datta .......................................................................................................................................... 24
V. Suppl.
lI.

1

l. Basic policy on ea
arnings distrributions, annd dividends
s for the currrent and nextt fiscal yearss
The Commpany maintains a basic policypof provviding returns to its shareh
holders with ttop priority on
n dividend
paymentss, and accorrdingly aims to continue providing sta
able dividendss while also reviewing options for
repurchassing and retiring treasury stock as necesssary, giving considerationc
to factors succh as stock prrice trends
and financial conditionss.
ors to adequattely secure the
em to strengthhen its financial position
As for internal reserrves, the Company endeavo
ate supply of fu
unds for future
e expansion. The
T Company will take a meedium- to long--term view
and provide an adequa
e improvemen
nt of its facilitie
es and equipm
ment, researchh and develop
pment, andand continue to allocatte funds to theer streamlining
g of operationss in order to ennhance its com
mpetitiveness.
the furthe
Beginnning in the fiscal year endeed November 30, 2016, thee standard forr decisions onn amounts to be paid in
dividendss is described as below.
<Standard forf dividend deecisions (effecctive from the fiscal year end
ded Novembeer 30, 2016)>
The Compa
any will mainta
ain a consolida
ated dividend payout ratio ofo at least 30%% in principle,
and target a consolidated dividends on equity ratio (DDOE) of 2.2%.
The Arrticles of Incorrporation of thee Company sttipulate that the Company ca
an pay dividennds from surpllus twice ayear, com
mprising of inteerim and year-end dividendss based on thee resolution by
y the Board of Directors in ac
ccordancewith the pprovisions of Article
A
459, Paragraph 1 andd Article 454, ParagraphP
5 ofo the Compannies Act.
For thee fiscal year endedeNovembber 30, 2016, the Company
y intends to pa
ay a year-endd dividend of ¥19.50¥
pershare. Th
he annual divid
dends will be ¥34.50¥
per shaare, which includes the interrim dividend oof ¥15 paid in August,A
anincrease of ¥5.50 per sharesin compa
arison with thee previous fisc
cal year.
Accorddingly, the dividend payout ratiorand the D
DOE both on a consolidated basis will amoount to 30.4%% and 2.4%,
respective
ely.
In rega
ard to dividennds for the fis
scal year end
ding Novembe
er 30, 2017, thetCompanyy intends to pay annual
dividendss of ¥36 per shhare which inc
cludes an interrim dividend of ¥18 per sharre and a year--end dividend of ¥18 pershare, ann increase of ¥1.50 per shhare in compa
arison with th
he previous fiscal year. Acccordingly, we
e project a
dividend p
5%, respectiveely.
payout ratio and DOE both on a consolid ated basis of 30.1% and 2.5
The C
Company is a company su
ubject to conssolidated dividend regulations, meaningg that it calculates the
distributable amount fo
or dividends onn a consolidate
ed basis.

lI. Manag
gement policcies
1. Basic p
policies of Company manag
gement
The Grou
up's mission iss to unceasingly contribute too better and healthierhdietarry lifestyles of people from aroundatheworld preemised on thee notions of go
ood taste, kinddness and unniqueness, actting as a corpporate group in the foodsector whhich forms an essential part of human exisstence.
We willl remain commmitted to our innsistence on thoduct quality, whichw
has beeen the most fun
ndamental
he highest pro
concern oof the Group sinces
its estabblishment. At the same timee, every one ofo our executivves and emplloyees willremain coontinually awa
are of our aim
ms that involvee wholehearte
edly providing selective prodducts and serrvices that
only the K
Kewpie Groupp can provide, and putting su
uch aims into practice.
2. Managgement index benchmarks
The Grou
up has drawn
n up a three--year Medium
m-term Busine
ess Plan whic
ch starts fromm the fiscal ye
ear ended
Novembeer 30, 2016. Inn its final year, the fiscal yea
ar ending Noveember 30, 201
18, the plan caalls for us to achieve net
sales of ¥¥625.0 billion, operating income of ¥35.5 billion (operating income too net sales of 5.7%), ordina
ary incomeof ¥36.3 bbillion, profit atttributable to ownersoof pareent of ¥20.2 billion, return onn equity (ROE
E) of 8.5%, andd return on
assets (R
ROA) of 8.6%.
or net sales an
nd operating inncome in Japaan and overse
eas for the fisc
cal year endingg November 30,
3 2018Targets fo(Billions of yen)

In Japan

Overseeas

Total

Net sales

560.5

64.5

625.0
0

Operating income

28.4

7.1

35.5
5

2

m- to long-termm business sttrategies of thee Company, and challenges
s ahead3. Medium
The Medium-term Bussiness Plan whichw
begins ffrom the fisca
al year ended November 300, 2016, stipu
ulates fourmanagemment policies fo
ocused on ma
aking the mostt of our uniquee capabilities anda leveragingg our ability, with the aimof enablinng the Group tot achieve dramatic growth by pursuing new challenges
s. To that end,, the four policcies call forbase, enhancce our cost competitivenes
us to stre
engthen our managementmss, create addded value, an
nd take onchallenge
es in new areaas.
apan and overrseas(i) Main sstrategies in Ja
In JapanJ
Overseas<Create aadded value><Enhance oour cost comppetitiveness> <Penetrate KE
EWPIE brand>
Create va
alue that captu
ures needs
Streamline production, saales andMake proposaals that capturre
distribution
Utilize and develop sales channels
area-specific needs
en core producct proposals
Technologiccally revolution
nize product Expand new ccategories
Strengthemanufacturring
Strengthen exxport expansio
on areasusing strategiic products
Strengthen raw material buying
power
b
categ
gory
(ii) Main sstrategies by businessBusineess category
MainM
strategiess• Create demanddfor maayonnaise andd dressings thhrough propossals for new sa
alad styles
Condimen
nts products• Expand the market fo
or mayonnaise
e and dressings through pro posals that ca
aptureecific needs
area-spe• Cultivatee the food servvices market byb making full use of a new
w factory in the Tokyo
Egg products
metropoolitan area
• Pick up the pace of exxpansion into the householdd market• Achieve labor savingss by adopting new technolog
gies and enhaance profitability byoverhauling its producction structureeDelicatesssen products• Continue
e expansions through newly
y developed sales channelss and develop new sales
channels• Strength
hen business ffundamentals by revitalizing
g its mainstay products and shifting
more tow
ward value-ad
dded products
Processe
ed foods• Strength
hen business ffoundations byy optimizing its production sstructure and revampingr
product categories
e costs by reco
onstructing thee raw materials procuremennt system• Improve
Fine chem
mical productss• Create newnfunctions for hyaluronicc acid and builld a selling sysstem overseas• Strength
hen business ffoundations byy using resourrces more efficciently and reoorganizing
Distributio
on system
the netw
works of its disstribution locattions• Expand service areass through new expansion(Note)A
Amounts show
wn in the text, tables and ch
harts do not include consum
mption taxes.

3III. Consoolidated fina
ancial statem
ments
1. Conso
olidated Balancce Sheets(Millions of yen)

AssetsCurrennt assets
Cassh and depositss
Nottes and accountts receivable - trade
Seccurities
Purrchased goods anda products
Woork in processRaw
w materials andd supplies
Defferred tax assetts
Oth
her
Allo
owances for dou
ubtful accounts
Tota
al current assetts
Fixed aassetsTanngible fixed asse
ets
Buildings and structuress
Accumulated
d depreciation
Net book va
alue
Machinery, equuipment and veh
hicles
Accumulated
d depreciation
Net book va
alue
Land
Lease assets
Accumulated
d depreciation
Net book va
alueConstruction in progress
Other
Accumulated
d depreciation
Net book va
alue
Total tangible fixxed assetsIntaangible fixed asssets
Goodwill
Computer softw
ware
Other
Total intangible fixed assets
Inveestments and otheroassetsInvestment seccurities
Long-term loans receivableement benefits
Assets for retire
Deferred tax asssets
Other
Allowances for doubtful accoun
nts
Total investmen
nts and other as
ssets
Tota
al fixed assets
Total aassets4Previous fiscalfyear(As of November 30, 2015)

Current fisca
al year((As of November 30, 2016)

29,84478,151
5,000
17,178979
10,247
3,297
3,996
(176)
148,518

35,79475,1345,000
15,669
972
9,229
3,264
5,268
(173)
150,160
1

168,599(95,402)73,196
155,974(121,743)
34,23147,468
7,734(2,950)4,784
3,742
13,542(10,150)
3,392
166,815

179,7891(99,764)(
80,024
161,1691(1
122,204)
38,96548,0998,102(3,427)
4,675
7,238
14,820(10,444)(
4,375
183,378
1

1,785
3,176
697
5,659

1,563
3,129
982
5,675

28,547492
12,427
1,630
9,424
(499)
52,023
224,498
373,017

27,408
450
7,413
1,984
9,657
(213)
46,700235,7542
385,9143

(Millions of yen)Previous fiscalfyear(As of November 30, 2015)

Liabilities
Currennt liabilities
Nottes and accountts payable - traddeSho
ort-term loans payablep
Acccounts payable - otherAcccrued expensess
Acccrued income ta
axes
Defferred tax liabilitties
Resserves for saless rebates
Resserves for bonuses
Resserves for direcctors' bonuses
Othher reserves
Oth
her
Tota
al current liabilitties
Non-cuurrent liabilities
Bon
nds
Lon
ng-term loans pa
ayableLea
ase obligations
Defferred tax liabilitties
Liabilities for retirement benefits
Assset retirement obligations
Oth
her
Tota
al non-current liiabilities
Total liabilities
Net assets
Sharehholders' equity
Paid-in capital
Cap
pital surplus
Earrned surplus
Treeasury stockTota
al shareholderss' equity
Accum
mulated other coomprehensive inncome
Unrrealized holding
g gains (losses) on securities
Unrrealized gains (losses) on hedg
ges
Forreign currency translation adjus
stments
Acccumulated adjusstments for retirrement benefitsTota
al accumulated other compreheensive income
Non-coontrolling interests
Total nnet assets
Total liabilities and net asssets

5

Current fisca
al year((As of November 30, 2016)

45,192
9,096
18,62813,273
3,960
1
821
1,541
169
89
2,094
94,87047,0508,301
22,074
12,809
7,016
1
749
1,826
160
91
2,162
102,2451

10,000
6,343
3,727
7,956
3,075
748
1,578
33,429128,299

10,00012,498
3,774
5,135
3,893
1,112
1,392
37,807140,053
1

24,10430,302
154,421(1,416)
207,412

24,10430,300166,7651(6,123)215,047
2

9,330
(8)
(552)
(3,243)
5,525
31,780244,717
373,017

8,916
79(3,947)(7,474)(2,426)33,240245,8612
385,9143

olidated Statem
ments of Incomme and Consoolidated Statem
ments of Comprehensive Inncome
2. Conso(Consoolidated Statements of Income)(Millions of yen)

Net sales
Cost of saales
Gross pro
ofit
Selling, ge
eneral and adm
ministrative expenses
Operatingg income
Non-opera
ating income
Interesst income
Dividends income
Equity in earnings of affiliatesaSubsiddy incomeReverssal of allowancees for doubtful accountsa
Other
Total nnon-operating in
ncome
Non-opera
ating expenses
Interesst expenses
Other
Total nnon-operating exxpenses
Ordinary iincome
Extraordinnary gains
Gains on sales of inve
estment securities
Gains on sales of fixed assets
Compeensation incomeeGains on change in eq
quity
Gains on extinguishm
ment of tie-in sha
ares
Gains on step acquisitions
Gains on negative goo
odwillOther
Total eextraordinary ga
ains
Extraordinnary losses
Lossess on disposal off fixed assets
Lossess on valuation ofo investment seecurities
Lossess on impairment of fixed assetssLossess on liquidation of subsidiaries and affiliates
Lossess on valuation ofo investments inn capital of subssidiaries andaffiliates
Other
Total eextraordinary lossses
Profit befo
ore income taxeesIncome ta
axes
Income ta
axes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interrests
Profit attributable to owne
ers of parent

6

Previous fiscalfyear(From Decem
mber 1, 2014
to Novembe
er 30, 2015)

Current fisca
al year(From Decembe
er 1, 2015
to November 30,
3 2016)

549,774
432,489
117,285
90,931
26,354552,3065
428,848
4
123,457
1
93,63929,818

121
450
134
6
1,021
1,734

79
458
295
291
274
948
2,347

314
548
863
27,224311
490
801
31,364

105
128
86
1,197
901
830
105
462
3,816

396
160
158
15
730

1,368
9
373
261

1,178
320
89
-

257

-

195
2,465
28,576
8,860
17
8,878
19,697
2,724
16,973215
1,804
30,290
11,245(989)
10,25520,034
2,941
17,093

olidated Statements of Com
mprehensive In
ncome)(Conso(Millions of yen)

ProfitOther com
mprehensive inccome
Unreallized holding ga
ains (losses) on securities
Unreallized gains (lossses) on hedges
Foreign currency translation adjustme
ents
Adjustments for retirement benefits
Total oother comprehen
nsive income
Compreheensive income(Breakkdown)Com
mprehensive inccome attributab
ble to owners ofpparentCommprehensive inccome attributab
ble to non-contro
olling interests

7

Previous fiscalfyear(From Decem
mber 1, 2014
to Novembe
er 30, 2015)

Current fisca
al year(From Decembe
er 1, 2015
to November 30,
3 2016)

19,697

20,034

3,552
(12)
683
2,237
6,461
26,159(375)
113(4,179)(4,638)(9,079)10,95523,199

9,141

2,959

1,814

olidated Statem
ments of Channges in Net Asssets
3. Conso
Previous fiscal year (From Decem
mber 1, 2014 too November 30,
3 2015)(M
Millions of yen)

Sha
areholders' equity

Balance at tthe beginning of
the curreent fiscal year

Paid-in capital

Capitaal surplus

EarnedE
surplusTreasury stoock

24,10
04

3
30,309142,489(1,1550)

Cumulativve effects ofchangees in accounting
policiess
Restated ba
alanceTotal shareholders'
quity
eq

19
95,752(1,398)24,1004

330,309(1,398)141,091(1,1550)

19
94,354

Changes off items during the
fiscal yea
ar
Dividendss from surplus(3,642)(3,642)

Profit attriibutable toownerss of parent

16,973

16,973(6)

Repurchaase of shares(2666)(272)

Changes in equity incontrolled subsidiaries
Net changges of items otherr
than shhareholders'equityTotal changges of items
during th
he fiscal year-(6)

13,330(2666)

13,057

Balance at tthe end of thecurrent fiiscal year

24,10
04

3
30,302

154,421(1,4116)20
07,412

Accumulated other comprehensive income
Unrealized
holding gains(losses) on
securities
Balance at tthe beginning of
the curreent fiscal year

5,902

Unrealized
gains (losses)on hedges

4

Foreigncurrencytranslation
adjustments(1,234)

Total
Accumulated
accumulated Noon-controlling
adjustmentsaforinterests
otherretirement
omprehensivecobenefits
income(5,373)(701)

Cumulativve effects ofchangees in accounting
policiess
Restated ba
alance5,902

4(1,234)(5,373)(701)

Total net
assets25,346220,397(43)(1,441)25,302

218,955

Changes off items during the
fiscal yea
ar
Dividendss from surplus(3,642)

Profit attriibutable toownerss of parent

16,973(272)

Repurchaase of shares
Changes in equity incontrolled subsidiaries
Net changges of items otherr
than shhareholders'equity

3,428

(13)

681

2,130

6,226

6,477

12,704

Total changges of items
during th
he fiscal year

3,428

(13)

681

2,130

6,226

6,477

25,762

Balance at tthe end of thecurrent fiiscal year

9,330

(8)

(552)

(3,243)

5,525

31,780244,7178

nt fiscal year (From Decembber 1, 2015 to November 30
0, 2016)
Curren(M
Millions of yen)

Sha
areholders' equity

Balance at tthe beginning of
the curreent fiscal year

Paid-in capital

Capitaal surplus

EarnedE
surplusTreasury stoock

24,10
04

3
30,302

154,421(1,4116)

Total shareholders'
quity
eq

20
07,412

Cumulativve effects ofchangees in accounting
policiess
Restated ba
alance24,1004

330,302

154,421(1,4116)20
07,412

Changes off items during the
fiscal yea
ar
Dividendss from surplus(4,749)(4,749)Profit attriibutable toownerss of parent

17,09317,093(4,7006)

Repurchaase of shares
Changes in equity incontrolled subsidiaries(4,706)(2)(2)

Net changges of items otherr
than shhareholders'equityTotal changges of items
during th
he fiscal year-(2)

12,343(4,7006)

7,635

Balance at tthe end of thecurrent fiiscal year

24,10
04

3
30,300166,765(6,1223)

215,047

Accumulated other comprehensive income
Unrealized
holding gains(losses) on
securities
Balance at tthe beginning of
the curreent fiscal year

9,330

Unrealized
gains (losses)on hedges

Foreigncurrencytranslation
adjustments

(8)

(552)

Total
Accumulated
accumulated Noon-controlling
adjustmentsaforinterests
otherretirement
omprehensivecobenefits
income(3,243)

5,525

31,780

Cumulativve effects ofchangees in accounting
policiess
Restated ba
alanceTotal net
assets244,717
-

9,330

(8)

(552)

(3,243)

5,525

31,780244,717

Changes off items during the
fiscal yea
ar
Dividendss from surplus(4,749)Profit attriibutable toownerss of parent

17,093

Repurchaase of shares(4,706)

Changes in equity incontrolled subsidiaries
Net changges of items otherr
than shhareholders'equity

(2)
(414)

88

(3,395)(4,230)(7,951)

1,460(6,491)

Total changges of items
during th
he fiscal year

(414)

88

(3,395)(4,230)(7,951)

1,460

1,143

Balance at tthe end of thecurrent fiiscal year

8,916

79

(3,947)(7,474)(2,426)33,240245,8619

olidated Statem
ments of Cashh Flows
4. Conso(Millions of yen)

Cash flow
ws from operatin
ng activities
Profit b
before income taxes
Deprecciation and amo
ortization
Lossess on impairment of fixed assetssAmortiization of goodw
will
Retiremment benefit expenses
Equity in losses (earnings) of affiliates
Lossess (gains) on valu
uation of investment securities
Lossess on valuation ofo investments inn capital of subssidiaries andaffiliates
Gains on negative goo
odwillLossess (gains) on step acquisitions
Lossess (gains) on cha
ange in equity
Lossess (gains) on extinguishment of tie-in shares
Increasse (decrease) inn liabilities for reetirement beneffits
Decreaase (increase) in assets for retirement benefitss
Increasse (decrease) inn reserves for sales rebates
Increasse (decrease) inn reserves for directors' bonusees
Increasse (decrease) inn reserves for bonusesbIncreasse (decrease) inn allowances for doubtful accou
untsInteresst and dividendss income
Interesst expenses
Lossess (gains) on salees of investmen
nt securities
Lossess (gains) on salees and disposal of fixed assetss
Decreaase (increase) in notes and acc
counts receivab
ble - trade
Decreaase (increase) in inventories
Increasse (decrease) inn notes and acc
counts payable - trade
Increasse (decrease) inn accounts paya
able - other
Increasse (decrease) inn accrued consu
umption taxes
Increasse (decrease) inn long-term acc
counts payable
Other
Sub-tootalInteresst and dividendss income received
Interesst paid
Incomee taxes paid
Net caash provided by (used in) opera
ating activities

10

Previous fiscalfyear(From Decem
mber 1, 2014
to Novembe
er 30, 2015)

Current fisca
al year(From Decembe
er 1, 2015
to November 30,
3 2016)28,576
19,094
373
229
1,222
(134)
9

30,29018,254
89
221
993
(295)
320

257

-

(105)
(830)
(1,197)(901)
473(1,653)
(112)
56
340
(89)
(572)
314
52
1,258
8,854
(1,151)(12,687)(3,262)
(802)
(73)
288
37,830627(314)(10,049)
28,094154(1,837)
(71)
(9)
334
(287)
(538)
311
(396)
1,025
2,114
1,905
2,072
1,416
(450)
(185)
(1,646)53,787670(309)(8,888)45,260(Millions of yen)

Cash flow
ws from investingg activities
Purchaases of securitie
esProceeeds from redem
mption of securitiies
Purchaases of tangible
e fixed assets
Purchaases of intangib
ble fixed assets
Purchaases of investment securities
Proceeeds from sales ofo investment seecurities
Proceeeds from sales ofo shares of sub
bsidiaries and afffiliates
Acquissition of subsidia
aries' shares
Proceeeds from sales ofo subsidiaries' shares
Proceeeds from acquissition of subsidia
aries' shares ressulting
in chhange in scope of consolidationn
Net deecrease (increasse) in short-term
m loans receivab
ble
Payme
ents of long-term
m loans receivableCollecttion of long-term
m loans receivable
Payme
ents into time deeposits
Proceeeds from withdra
awal of time dep
positsOther
Net caash provided by (used in) investting activities
Cash flow
ws from financing
g activities
Net inccrease (decreasse) in short-term
m loans payablee
Repayyment of lease obligationsoProceeeds from long-te
erm loans payab
ble
Repayyment of long-term loans payab
ble
Proceeeds from share issuance to nonn-controlling inte
erestsCash ddividends paid
Cash ddividends paid tot non-controllin
ng interests
Repurcchase of sharess
Purchaase of treasury shares of subsidiaries
Net caash provided by (used in) financcing activities
Effects of exchange rate changes on cas
sh and cash equuivalents
Increase ((decrease) in ca
ash and cash eq
quivalents
Cash and cash equivalen
nts at the beginn
ning of the fisca
al yearIncrease iin cash and cassh equivalents reesulting from m erger withunconssolidated subsidiaries
Cash and cash equivalen
nts at the end off the fiscal year

11

Previous fiscalfyear(From Decem
mber 1, 2014
to Novembe
er 30, 2015)

Current fisca
al year(From Decembe
er 1, 2015
to November 30,
3 2016)(10,000)
10,000(30,032)(1,529)
(157)
178
58
(21)
30

(31,148)((1,290)
(123)
653
-

44

-

(82)
(21)
19
(98)
117
313
(31,181)

333
(39)
24
(3)
3
(456)
(32,046)((541)(1,753)
1,303(1,466)
181(3,642)
(550)
(79)
(551)
(7,101)
235(9,952)
44,788(1,312)(1,350)8,640(1,942)254(4,749)(610)(4,734)(5,805)(1,458)
5,949
34,841

5-

34,84140,790nsolidated fina
ancial stateme
ents
5. Notes regarding con(Notess regarding assumption of a going concerrn)
Not applicable(Signifficant matters forming the ba
asis for the prreparation of consolidatedcfinancial statem
ments)(1) Coonsolidated su
ubsidiaries
Thee Company ha
as fifty-six consolidated su bsidiaries in thetcurrent fis
scal year. Thee principal consolidated
subbsidiaries are Kewpie
K
Egg Corporation, De
eria Foods Coo., Ltd., Kewpie
e Jyozo Co., LLtd., K.R.S. Co
orporation,
Kan
nae Foods Co., Ltd., Gourm
met Delica Co.,, Ltd., Salad Club,
C
Inc. and AohataA
Corpooration.
In the current fiscalfyear, thee number of co
onsolidated su
ubsidiaries inccreased by two
wo because Fre
esh Delica
Nettwork Co., Ltd. and Kewpie Poland Sp. zoo.o. were newly established.
T
There are tweenty unconsolidated subsid iaries, and the principal coompany is K. LP Corporation. Thesecom
mpanies are exxcluded from the consolidattion, because each of the tootal amounts of their total assets,
a
net
sale
es, profit and lossland earned surplus (baased on the Company'sCownership perceentage) does notn have asignnificant effect ono the consoliidated financia
al statements.
(2) Appplication of th
he equity methhodThee equity methhod is applied
d to the inve
estments in thhree affiliated companies. The principa
al affiliatedcom
mpany accounted for by the equity method
d is Summit Oil
O Mill Co., Ltdd.
T
The investmen
nts in twenty unconsolidatedud subsidiariess including K. LP Corporatioon and in three affiliatedcom
mpanies includ
ding AK Frannchise System
m Co., Ltd. noot to be accounted for by the equity methodmareexcluded from thee scope of app
plication of thee equity metho
od, because eacheof the tottal amounts off profit andlosss and earned surpluss(based on the Com
mpany's ownerrship percentage) does not have a significcant effecton tthe consolidatted financial sttatements.
(3) Closing date of consolidated subsidiaries
The
e closing datee of eight forreign consolid
dated subsidiaries is September 30, annd that of four foreign
consolidated subsidiaries is De
ecember 31.
F
Four foreign subsidiaries whhose closing ddate is Decem
mber 31 are coonsolidated baased on their temporaryfina
ancial stateme
ents at Septe
ember 30. Oth
her eight fore
eign subsidiarries are conssolidated baseed on thefina
ancial statements at their ba
alance sheet d ate.
H
However, sign
nificant transactions of thosse subsidiarie
es for the period from the ddate of their respective
fina
ancial statements to the consolidated clossing date are reflectedrin thee consolidatedd financial stattements.
F
From the curreent fiscal yearr the closing ddate of Aohata
a Corporation is changed to November 30
0, which isthe same as the consolidated financialfclosinng date. Accoordingly, for coonsolidation puurposes, the accountingaa Corporation for the year under review
w was for 13 months (fromm November 1,
1 2015 toperiiod of Aohata
Novvember 30, 20016), and the differencedwass adjusted throough the cons
solidated stateements of incoome.
(4) Acccounting policcies
A. Valuation bassis and valuation methods ffor significant assetsaa) Securities(i) Held-to
o-maturity bondds are stated at amortized cost.
cDiscountts and premium
ms are amortiz
zed by thestraightt-line method.
(ii) Sharess in subsidiaries and affiliattes which aree not accountted for under the equity methodmarestated at
a moving ave
erage cost.
(iii) Other securitiesswith readily determ
minable fair va
alue are stated at fair valuee based on ma
arket priceat the closing date. Valuation diffferences com
mprise net ass
sets as unreaalized holding gains on
securities. When soldd, cost of salees is determine
ed by the movving average mmethod. Otherr securities
withoutt readily determ
minable fair va
alue are statedd at moving av
verage cost.
bb) Financial derivatived
insttruments
Financial derivatived
insttruments are sstated at fair value.
v
Hedge accounting is adopted for fiinancial deriva
ative instruments which connform to requirrements ofhedge acccounting.
cc) Inventories
d goods and products,p
workk in process, rawrmaterials and supplies are principallyy stated at
Purchased
monthly movingmaverage cost (a meth
hod whereby bookb
values are written dow
wn based on a decline in
the revenu
ue expected too be generate
ed from these inventories).
i
SomeS
joint prooducts are statted at costusing the retail method (a method w
whereby book valuesv
are written down baased on a dec
cline in theeto bee generated froom these inve
entories).
revenue expecteds
dep
preciable asseets
B. Depreciation methods for significantaa) Tangible fiixed assets (eexcluding leasee assets)
Tangible fiixed assets arre depreciatedd by the straight-line methodd.
12The maain useful life is as follows.
Building
gs:
2--50 years
Machinnery and equip
pment:
2--17 yearsbb) Intangible fixed assets (excluding(
lea
ase assets)
Intangible fixed assets area amortized by the straighht-line method.
Compuuter software purchased forr internal use
e is amortizedd by the straigght-line metho
od for five
years based on the estimated useful life for interna
al use.
cc) Lease asssets
The straig
ght-line method
d, which cons iders the lease period to bee the useful lifee and the residual value
to be zero, is applied to lease asssets related too finance leas
se transactionns that do noot transfer
ownershipp.
dd) Long-termm prepaid expeensesLong-termm prepaid expe
enses are amo
ortized by the straight-line method.
m
C. Accounting fo
or significant deferreddassetts
A
All business coommencemen
nt expenses arre expensed whenw
a paymeent is made.
s
for significant
s
rese
erves
D. Accounting standardsaa) Allowancees for doubtful accounts
To provide
e for a possib
ble bad-debt l oss, the Grou
up provides thhe expected uuncollectible amountaasallowance
es for doubtful accounts. Th e said amoun
nt is calculatedd by using creddit-loss predic
ction ratios
based onn historical da
ata for gene ral accounts receivable, andaby referrence to the individualcollectability for special receivables, ssuch as those in danger of beingb
uncollecctible.
bb) Reserves for sales rebaates
To provide
e for the payyment of reba
ates for the current fiscal year,yreservess for sales reebates areprovided ono an accrual basis, multiplyying the net sa
ales and each company's sttandard (the percentagepof the expected amountt of rebates in net sales).
cc) Reserves for bonuses
To provide
e for the paym
ment of bonuse
es to employee
es, reserves fo
or bonuses arre provided ac
ccording to
the expectted amount off the payment which attributtes to the current fiscal yearr.
dd) Reserves for directors' bonusesbe for the payment of bonu
uses to directors, reserves for directors'' bonuses are
e provided
To provide
according to the expected amount pa
ayable at the end
e of the currrent fiscal yearr.
E. Accounting fo
or retirement benefitsbaa) Method off attributing ex
xpected retirem
ment benefits to periods
In calculatting retiremen
nt benefit oblig
gations, expec
cted retirement benefits aree attributed to the period
up to the end
e of the current fiscal yea
ar on the bene
efit formula bassis.
bb) Accounting for amortiza
ation of actuarrial gains or lossses and priorr service costss
Prior service costs are amortized by the straight-liine method prrincipally overr twelve years based on
the averag
ge remaining employees'eseervice years.
Actuarial gains or losses are amo
ortized by the straight-line methodmprinciipally over twe
elve years
emaining emp
ployees' servic
ce years at each fiscal year,, and their amortizations
based on the average ree accrual yearss.
start from the following fiscal year of tthe respective
on fund assetts exceeds tha
at of retiremennt benefit oblig
gations for
In addittion, if the amount of pensio
corporate pension plann, it is recogniized as assetts for retiremeent benefits o n consolidate
ed balance
sheet.
F.

edge accountiing
Treatment for significant heaa) Method off hedge accou
untingDeferral hedge is applieed.
Allocatiion method is applied for traansactions tha
at meet the req
quirements forr that method..
Special treatment is applied for th e interest ratee swap transactions that meeet the require
ements forthe specia
al treatment.
bb) Hedging in
nstruments
Hedging in
nstruments are forward excchange contrac
cts and interesst rate swap trransactions.
cc) Hedged ite
ems
Hedged ite
ems are purch
hase transacti ons in foreign
n currencies annd others.
dd) Hedging policyp
The Groupp executes forward exchan ge contracts tot hedge riskss from fluctuattion in foreign exchange
rate and in
nterest rate sw
wap transactio
ons to hedge risks
rfrom projected fluctuatiion in interest rate.
In addittion, the Group never makees use of themm for the purpose of speculattive transactio
ons.
13

e
e)

Assessmeent of the effec
ctiveness of heedge accounting
Control prrocedures of hedge transa
actions are ex
xecuted accorrding to each company's bylaw.
bThe
effectivene
ess of the hed
dge except forr the following contracts is analyzed
aby coomparing mov
vements inthe fair va
alues of the hedgedhitemss with those ofo the hedging
g instrumentss, assessed andastrictly
controlled.
er, the assess
sment of the eeffectiveness is omitted forr interest rate swap transac
ctions that
Howevemeet the requirementsrforf the specia l treatment.

G. Method and periodpfor amoortization of go
oodwillA
As a general rule,r
goodwill is amortized on a straight--line basis ove
er the period ddeemed to bee valuable.
H
However, good
dwill is written off completel y in the fiscal year in which it arises if imm
material.
H. Scope of cassh in the conso
olidated statem
ments of cash
h flowsC
Cash in the coonsolidated sta
atements of ca
ash flows (cassh and cash equivalents)ecoonsists of cas
sh in hand,bbank deposits which can bee withdrawn frreely, and short-term investm
ments which ccan be easily convertedin
hs from the ac
cquisition datee which are att little risk of changescin
nto cash and matures within three monthvvalue.
I.

Other significcant matter forr the preparatiion of consolid
dated financial statements
C
Consumption taxestare recoorded in separrate accounts..

ges in accoun
nting policies)(ChangAppplication of Acccounting Standard for Businness Combina
ations, etc.
E
Effective from the current fiiscal year, thee Company ha
as applied thee “Accountingg Standard forr BusinessC
Combinations”” (ASBJ Sta
atement No. 21, Septem
mber 13, 2013), the “Acccounting Standard forC
Consolidated Financial
F
Statements” (ASB
BJ Statement No. 22, Septe
ember 13, 20113) and the “A
Accounting
S
Standard for Business
B
Diveestitures” (ASB
BJ Statement No. 7, September 13, 201 3), etc. As a result, theC
Company cha
anged the me
ethod of reco
ording the am
mount of diffference causeed by chang
ges in theC
Company’s ow
wnership interrests in subsid
diaries in the case of subsidiaries underr ongoing con
ntrol of theC
Company to one in which it is recorded ass capital surplus, and the method of recorrding acquisition-related
d as expense
ccosts to one in which they
y are recorded
es for the fisc
cal year in w
which they aree incurred.
F
Furthermore, forf business combinations ccarried out on or after the be
eginning of thee current fisca
al year, thehod to one in which the reviewed acqquisition cost allocation
C
Company cha
anged the acc
counting methrresulting from the finalization of the pro
ovisional accoounting treatm
ment is reflectted in the consolidated
ffinancial statem
ments for the fiscal year to w
which the datee of business combination bbelongs. In ad
ddition, theC
Company changed the pressentation met hod for “net inncome” and otherorelated ittems, and changed theppresentation ofo “minority intterests” to “noon-controlling interests.” To reflect these changes, the Companyhhas reclassifie
ed its full-year consolidated ffinancial state
ements for the previous fiscaal year.
In the conso
olidated statem
ment of cash fflows for the cu
urrent fiscal yeear, cash flowss on acquisitio
on or salesoof shares of su
ubsidiaries tha
at do not resullt in change inn the scope of consolidation were included in “Cashfflows from financing activitties” categoryy, and cash flows on costss related to aacquisition of shares ofssubsidiaries reesulting in chhange in thee scope of co
onsolidation oro costs arisiing in association withaacquisition or sales of sharres of subsidia
aries that do not result in changecin the scope of connsolidationw
were included in “Cash flows from operatiing activities” category.
ss Combinations, etc. is in lline with the transitional
Application of the Accounting Standarrd for Businesmmeasures provided for in paragraphp
58--2 (4) of the Accounting Standard
S
for B
Business Com
mbinations,pparagraph 44-5 (4) of the Ac
ccounting Stan
ndard for Conssolidated Finaancial Statemeents and paraggraph 57-4((4) of the Accoounting Standa
ard for Busine
ess Divestiture
es. The Compa
any is applyingg the said stanndard, etc.
p
prospectively fromf
the beginnning of the cu
urrent fiscal yeear.
The effect ofo this change on profit and loss is immate
erial.
anges to standdards for recorrding net salessCha
es payable to business partners for saless promotion (hT
The Group use
ed to record partp of expense
hereinafter
rreferred to as "sales promo
otion expensees, etc.") undeer selling, general and adm
ministrative exp
penses bymmostly includin
ng them in sales promotion
n expenses wh
hen the amount payable is fixed. From the current
ffiscal year, thee Group has changedcthe method to deeduct the sales promotion eexpenses, etc
c. from net
ssales when reccording sales.
In the businesss environment surrounding
g the Group, the competition becomes even fiercer, constantly
rrequiring the Group to spennd sales prom
motion expens
ses, etc. As a result, it becoomes necessa
ary for theGGroup to ensure more time
ely and appro
opriate profit control
cby clarifying correlaation between the salesps.
promotion acttivity and sales
Under the suchsbusinesss environmentt, the Group took the opportunity of deveelopment of fo
ormulating
the Medium-te
erm Business PlanP
starting ffrom the current year to re-v
verify the coveerage of sales promotion
14

eexpenses, etc. and the actu
ual status of trransactions, inn order to revie
ew standards for recording net sales,w
which is one ofo the importan
nt indices to mmeasure business performan
nce for the Grroup. It shed light on thesstatus that salles promotion expenses, ettc. comprise a part of sales conditions. Accordingly, thet Groupcconcluded that the method tot record net ssales after deducting sales promotion exxpenses, etc. ata the timew
when sales arre recorded shhould more ap
ppropriately reeflect the busin
ness performaance. At the samestime,
the Group revviewed the method of man
naging sales and sales pro
omotion expeenses, etc. an
nd pushed
fforward improvvement of a frameworkfforr operational processpreview
ws and systemm developme
ent. As thefframework is nownin place, thet Group hass implemented
d the change.
The change
es in the accounting policy hhave been ap
pplied retrospe
ectively and thhe consolidated financial
sstatements forr the previous fiscal year we
ere adjusted too reflect the reetrospective appplication.
As a result, compared withw those prioor to retrospec
ctive applicatio
on, net sales and gross pro
ofit for thepprevious fiscal year declined ¥28,417 mi llion, respectively; selling, generalgand aadministrative expensesddeclined ¥28,3
330 million; op
perating incomme, ordinary inncome and pro
ofit before incoome taxes dec
clined ¥86
mmillion, respecctively. On thee other hand, in the consollidated balancce sheets of tthe previous fiscal year,aaccrued expen
nses and defe
erred tax asseets (current assets)aincreassed ¥2,335 m
million and ¥59
98 million,
rrespectively.
Reflecting thetcumulativee impact on n
net assets at the beginning
g of the previious fiscal yea
ar, earned
ssurplus at the beginning of thatt
year decli ned ¥1,077 million.
m
Segment information andd the impact off this change ono per share information are
re outlined in the section
titled "(Segment information)" and "(Per sshare information)".
(Changges in accoun
nting policies thatt
are difficu
ult to distinguish from the changes in acccounting estim
mates, andchangees in accounting estimates))Chaanges to depre
eciation metho
od for tangible
e fixed assets and revision ofo useful life annd residual va
alue
The Group changed its depreciationdmmethod for tan
ngible fixed as
ssets to the sttraight-line me
ethod fromthe current fisccal year from thet declining bbalance metho
od mainly used in the past.
In the Foodds business, followingfthe terminated prroduction in Sengawa
S
Facttory in 2011, thet Groupp
proceeded with gradual reorrganization of production locations by con
nsolidating thee production capabilitiescoof core produ
ucts in the coondiments prroducts for ho
ome use line
e into Goka F
Factory. In addition, inaaccordance withw the Medium-term Businness Plan thatt has started in the currentt fiscal year, we
w plan toimmplement a drasticdreorgannization of ou
ur production locations
lcenttering on operrations in Kob
be Factoryeequipped with the state-of-the-art producttion facility. Th
he Group expects to be ablle to use the productionpffacility efficienttly and consistently by conccentrating prod
duction of coree products.
In the Distrribution system
m business, itt is confirmedd that the ratioo of generic w
warehouse fac
cilities hasinncreased; staable operationn at warehousse facilities is expected going forward thhrough standa
ardization,leeveling, and simplificationsofo operations e
enabled by inv
vestments in laarge-sized faccilities with a main
m
focus
o
on the joint distribution bus
siness; and sstable operatio
on of vehicles
s is expectedd over its use
eful life byaapplying limita
ation to drivers
s' on-duty hourrs.
As a result, the Group ha
as concluded tthat distributio
on of expensess using the strraight-line metthod is theddepreciation methodmthat reeflects the rea
ality of the Gro
oup. Furthermore, as a resuult of another review on
the expected periodpof use and the dispo
osal value of tangible fixed assets, the GGroup has changed theuuseful life of somesvehicles, to 8 to 15 yyears depending on the types of vehicless from the currrent fiscal
yyear from 4 years
yapplied in the past. The residual values of tan
ngible fixed aassets (exclud
ding somevvehicles) havee also been chhanged to ¥1, tthe memoranddum value.
With these changes described above,, operating income for the current fiscal year increased ¥2,395m
million, and ordinaryoincom
me and profitt before incom
me taxes inccreased ¥2,4440 million, res
spectively,
ccompared withh those by the previous metthod.
The impact on segment information is outlined in thee section titledd "(Segment innformation)".

15

ment informatio
on)
(Segm
[Segm
ment informatioon]
A. Outline of rep
ported segments
T
The reported segmentssof thet Company are those units for which separatesfinanncial statemen
nts can beoobtained amonng the constittuent units of the Group an
nd which are regularly exaamined by thee Board ofD
Directors for makingmdecisioons on the alllocation of maanagement reesources and for assessing
g businessp
performance. These segme
ents are cateegorized by productpand service,s
and cconsist of "Co
ondimentsp
products," "Eg
gg products,"" "Delicatesseen products,"" "Processed foods," "Finne chemical products,"""Distribution syystem" and "C
Common busin
ness operationns."
The followin
ng is the overv
view of each ssegment:
C
Condiments prroducts:
E
Egg products:
D
Delicatessen products:pP
Processed foo
ods:FFine chemical products:
D
Distribution syystem:C
Common busin
ness operations:e, dressings an
nd vinegar
Mayonnaise
Liquid egg, frozen egg, drieddegg, eggg spread, thick omelet
and shreddeed eggSalads, delicatessen fooods, boxed luunches, rice balls andpackaged sa
alads
Bottled and//or canned foo
ods including jjams, pasta sa
auces andsweet corn, baby foods an
nd nursing carre foodsaand otherrs
Hyaluronic acidTransportation and warehousing of foodd products
d food producttion equipment
Sale of food products andd to calculate amounts of n
net sales, proffit or loss, assets, liabilities and others by reported
B. Method used
segment
A
Accounting tre
eatment applied to the rep
ported segme
ents is much the same witth what is described in""Significant ma
atters forming the basis for tthe preparatio
on of consolida
ated financial statements."
Profit of thee reported segments is baseed on operating income. Inteersegment nett sales and traansfers arebbased on prevvailing market price.
(Chhanges to stanndards for reco
ording net salees)A
As described in "(Changes in accounting policies)", the changes to sttandards for reecording net salesshavebbeen retrospectively appliedd. Due to the changes, nett sales and se
egment profitss for the prev
vious fiscal
yyear respectivvely decreasedd ¥14,892 miillion and ¥63
3 million in thee "Condiments
ts products"; decreasedd¥¥143 million annd ¥0 million in the "Egg pro
oducts"; decre
eased ¥8,660 millionmand inccreased ¥1 million in the""Delicatessen products"; and decreased ¥¥4,721 million and ¥24 millio
on in the "Proccessed foods""(Chhanges to deprreciation methhod for tangibl e fixed assets
s and revision of useful life aand residual value)D
Due to the cha
anges to depre
eciation metho
od for tangible fixed assets anda revision oof useful life annd residual
vvalue, segmen
nt profits for thet current fisscal year incre
eased ¥166 millionmin the ""Condiments products";
inncreased ¥48
89 million in thet"Egg prod
ducts"; increa
ased ¥591 million in the "D
Delicatessen products";ddecreased ¥21
1 million in thee "Processed foods"; increa
ased ¥115 million in the "F
Fine chemical products";
inncreased ¥1,1
141 million in thet "Distributio
on system"; annd decreased ¥86 million in the "Commonn businessooperations", reespectively, coompared with tthose by the previouspmethod.

16

o amounts off net sales, proofit or loss, assets, liabilitiess and others bby reported seg
gment
C. Information on
P
Previous Fisca
al Year (From December 1, 2014 to Noveember 30, 2015)(M
Millions of yen)

Net sales
Net salesdeto outsid
customeers
Intersegment
net salessor transfe
fers
Total
Segment p
profit(loss)
Segment
assetsOthersDepreciatiion
and
ation
amortiza
Investmen
nt inaffiliatessaccounttedfor by equity
methodIncrease inntangiblee andintangibble
fixed asssets(Notes)Amoount reported
on thecoonsolidated
financialsttatements(Note)

Condiments
products

Egg
products

DelicaD
te
essen
pro
oductsProcesseed
foods

Fine
chemicalproducts

Distribution
systemComm
monbusiness
operattions

142,1633

104,642

10
00,43757,53
34

11,311

127,7475,9937

549,774–

549,774

6,798
8

5,818

218

2,50
09

298

24,30310,0
058

50,005(50,005)–

148,962

110,460

1000,65660,04
44

11,610152,05015,9995

599,780(50,005)

549,774

12,479
9

5,396

2,750

(29
92)

350

4,760

900

26,345

8

26,35496,275
555,70640,911
4

42,09
99

10,523

81,37010,6
601

337,488

35,528373,017

5,209
9

3,328

2,814

1,67
75

811

4,630

625
6

19,094–19,094

1,135
5

–

–

7
70

–

–

189

1,395

–

1,395

4
6,714

7,303

5,106

1,87
70

660

9,814

899

32,369–32,369Total

Adjustments

1
1. "Adjustments"" of ¥35,528 million in "Segmeent assets" main
nly includes com
mpany-wide asssets of ¥38,295 million andelimination of intersegment reeceivables and p ayables of ¥(4,150) million. Majo
or items in comppany-wide assets
s are surplus
operating fundds of the Company (cash and depposits and securrities) and long-te
erm investment fuunds (investment securities).
22. Adjustments area made betwee
en "Segment proofit (loss)" and "O
Operating incomee" reported in thee consolidated sttatements ofincome.
3
3. "Depreciation and amortization" and "Increaase in tangible and intangible fixed assets" iinclude "Long-te
erm prepaid
expenses."17

C
Current Fiscal Year (From DecemberD
1, 22015 to Novem
mber 30, 2016)(M
Millions of yen)

Net sales
Net salesdeto outsid
customeers
Intersegment
net salessor transfe
fers
Total
Segment p
profitSegment
assetsOthersDepreciatiion
and
ation
amortiza
Investmen
nt inaffiliatessaccounttedfor by equity
methodIncrease inntangiblee andintangibble
fixed asssets(Notes)Amoount reported
on thecoonsolidated
financialsttatements(Note)

Condiments
products

Egg
products

DelicaD
te
essen
pro
oductsProcesseed
foods

Fine
chemicalproducts

Distribution
systemComm
monbusiness
operattions

144,0999102,204

11
11,79951,25
52

10,863

126,926

5,160

552,306–

552,306

7,265
5

5,826

284

2,16
67

298

25,00210,3353

51,200(51,200)–

151,364
4
13,668
8

108,0305,483

11
12,084
3,465

53,42
20
51
17

11,161
1,031

151,929
4,889

15,5
514
763

603,506
29,818(51,200)–

552,306
29,818105,316
6

51,772

43,4794

37,95
52

10,051

90,48410,3
323

349,381

36,533385,914

5,159
9

3,044

2,342

1,78
85

642

4,618

661
6

18,254–

18,254

1,264
4

–

–

8
83

–

–

207
2

1,555

–

1,555

9
16,249

2,961

2,124

2,57
71

413

7,853

794

32,968–32,968Total

Adjustments

1
1. "Adjustments"" of ¥36,533 million in "Segmeent assets" main
nly includes com
mpany-wide asssets of ¥41,971 million andelimination of intersegment reeceivables and p ayables of ¥(4,6644) million. Majo
or items in comppany-wide assets
s are surplus
operating fundds of the Company (cash and depposits and securrities) and long-te
erm investment fuunds (investment securities).
22. Adjustments are made betwe
een "Segment pprofit" and "Opeerating income" reported in the consolidated statements ofincome.
3
3. "Depreciation and amortization" and "Increaase in tangible and intangible fixed assets" iinclude "Long-te
erm prepaid
expenses."18

ed informationn][RelatePrevious Fiscal YearY
(From December 1, 20 14 to Novemb
ber 30, 2015)
A. Information byb product andd service
ere since similar informationn is disclosed in "Segment in
nformation."
It is omitted he
B. Information byb regionaa) Net sales
e net sales too outside cus
stomers in Japan is more than 90% of net sales
It is omittted here since
reported inn the consolidated statemen
nts of income..
bb) Tangible fiixed assets
It is omitteed here sincee the amount of tangible fix
xed assets loc
cated in Japaan is more tha
an 90% of
tangible fixxed assets rep
ported in the cconsolidated balancebsheetss.
C. Information byb major custoomer
It is omitted herehsince thhere is no cu stomer occup
pying 10% orr more of nett sales reportted in thecconsolidated statementssof income.
Currrent Fiscal Yeear (From December 1, 2015
5 to Novembe
er 30, 2016)
A. Information byb product andd service
ere since similar informationn is disclosed in "Segment in
nformation."
It is omitted heb region
B. Information byaa) Net sales
e net sales too outside cus
stomers in Japan is more than 90% of net sales
It is omittted here since
reported inn the consolidated statemen
nts of income..
bb) Tangible fiixed assets
It is omitteed here sincee the amount of tangible fix
xed assets loc
cated in Japaan is more tha
an 90% of
tangible fixxed assets rep
ported in the cconsolidated balancebsheetss.
C. Information byb major custoomer
It is omitted herehsince thhere is no cu stomer occup
pying 10% orr more of nett sales reportted in thecconsolidated statementssof income.
[Inform
mation on losse
es on impairm
ment of fixed a ssets by reported segment]]
Previous Fiscal YearY
(From December 1, 20 14 to Novemb
ber 30, 2015)(M
Millions of yen)

Losses onnimpairmment
of fixed
assetsCondiments
products

Egg
products

DelicaD
te
essen
pro
oductsProcesseed
foods

Fine
chemicalproducts

Distribution
systemComm
monbusiness
operattions

118
8

41

0

11
15

10

85

1

Total

Adjustments

373

Total

–

373

ear (From December 1, 2015
5 to Novembe
er 30, 2016)
Currrent Fiscal Ye(MMillions of yen)

Losses onnimpairmment
of fixed
assetsCondiments
products

Egg
products

DelicaD
te
essen
pro
oductsProcesseed
foods

Fine
chemicalproducts

Distribution
systemComm
monbusiness
operattions

–

–

–

–

–

47

42

19

Total

89

Adjustments

Total

–

89

mation on amo
ortization of go
oodwill and un amortized balance by reporrted segment][InformPrevious Fiscal YearY
(From December 1, 20 14 to Novemb
ber 30, 2015)(M
Millions of yen)Amortization in
the currrent
fiscal ye
ear
Unamortizzedbalancee atthe end of
the currrent
fiscal ye
ear

Condiments
products

Egg
products

DelicaD
te
essen
pro
oductsProcesseed
foods

Fine
chemicalproducts

Distribution
systemComm
monbusiness
operattions

–

–

–

18
82

29

17

–

229

–

229

–

–

–

1,64
40

110

33

–

1,785

–

1,785

Total

Adjustments

Total

Currrent Fiscal Yeear (From December 1, 2015
5 to Novembe
er 30, 2016)(M
Millions of yen)Amortization in
the currrent
fiscal ye
ear
Unamortizzedbalancee atthe end of
the currrent
fiscal ye
ear

Condiments
products

Egg
products

DelicaD
te
essen
pro
oductsProcesseed
foods

Fine
chemicalproducts

Distribution
systemComm
monbusiness
operattions

–

–

–

18
82

29

10

–

221

–

221

–

–

–

1,45
58

81

23

–

1,563

–

1,563

Total

Adjustments

Total[Inform
mation on gains on negative goodwill by reeported segment]
Previous Fiscal YearY
(From December 1, 20 14 to Novemb
ber 30, 2015)(M
Millions of yen)

Gains one
negativegoodwill

Condiments
products

Egg
products

DelicaD
te
essen
pro
oductsProcesseed
foods

Fine
chemicalproducts

Distribution
systemComm
monbusiness
operattions

–

–

–

–

–

99

5

ear (From December 1, 2015
5 to Novembe
er 30, 2016)
Currrent Fiscal Ye
Not applicable.

20

Total

105

Adjustments

Total

–

105

hare information)(Per shPrevious fiscalfyear(From Decem
mber 1, 2014
to Novembe
er 30, 2015)

Current fisca
al year(From Decembe
er 1, 2015
to November 30,
3 2016)

Net assets per share (yen)1,403.05

1,420.63

Earnings per share (yen))111.82113.47

1
1. "Earnings perr share (diluted)" is not presentedd because of no issue of potentiall shares.
2
2. Calculation ba
asis of net assets
s per share is ass follows.
Previous fiscalfyear(From Decem
mber 1, 2014
to Novembe
er 30, 2015)

Current fisca
al year(From Decembe
er 1, 2015
to November 30,
3 2016)

Total net aassets (millions of yen)244,717245,861

Amount subtracted from total net assets (millions of yenn)31,78033,240(Notes)[31,780][33,240]

Net assets attributable too common stock
k at the end of th
he fiscal year
(millions of yen)

212,937

212,620

Number oof shares of com
mmon stock at thhe end of the fisscal year
(thousaand shares)

151,767

149,666

Previous fiscalfyear(From Decem
mber 1, 2014
to Novembe
er 30, 2015)

Current fisca
al year(From Decembe
er 1, 2015
to November 30,
3 2016)[Non-ccontrolling intere
ests]

3
3. Calculation ba
asis of earnings per
p share is as foollows.

16,97317,093

Amounts not attributable to common sha
areholders (milliions of yen)––

Profit attributable to owne
ers of parent atttributable to com
mmon stock(millions of yen)

16,97317,093

Average nnumber of sharees of common stocksduring the fiscal year
(thousaand shares)

151,783

150,636

Profit attributable to owne
ers of parent (mmillions of yen)4
4. As described in "(Changes in accounting policcies)," changes too standards for reecording net salees have been rettrospectively
applied. As a result, "Total net
n assets" for tthe previous fisc
cal year decreased ¥1,211 milliion, "Net assets
s per share"
decreased ¥7
7.48, "Profit attributable to ownerss of parent" and "Profit"
attributable to owners of paarent attributablee to common
stock" decreased ¥58 million, respectively, andd "Earnings per share"sdecreasedd ¥0.39.

21

uent events)(Signifficant subsequ
At tthe meeting ofo the Board ofo Directors heeld on Decem
mber 26, 2016, the Companny resolved too establish
Kew
wpie Mirai Tam
mago Foundation, a Genera
al Incorporatedd Foundation (hereinafter,(
thhe “Foundation”) and, inorde
er to fund thee activities off the Founda
ation through dividends, etc
c. of the Com
mpany's stockk, transfer
1,50
00,000 sharess of treasury stocks
to a trusst establishedd by the Company at a dispposition price of ¥1 pershaare. The dispossition of the shhares of treasu
ury stock is su
ubject to the approval at its 104th Ordinarry GeneralMeeeting of Shareeholders to be held on Febru
uary 24, 2017.
1. E
Establishment of new founda
ation(1) Purpose of esstablishment
To contribute to the realiza
ation of a hea
althy society byb actively sup
pporting a widde range of ac
ctivities bywith a focus onn food educatioon as a meanss to work towa
ard findingorganizations that contributte to society w
y society relate
ed to food.
solutions to isssues faced by(2) O
Outline of the foundation
K
Mirai TamagoTFounddation(i) Name: Kewpie(ii) Activitiess: To support organizationsotthat conduct fo
ood-related ac
ctivities to conntribute to sociiety, with afocus on food educatio
on, among othhers(iii) Funding for activities: ApproximatelyAy ¥50 million per
p yearActivitiess of the Found
dation will be funded from the funds to beb received aas the beneficiary of thetrust to whichw
the sharres of treasuryy stock will be transferred ass described in 2. below.
(iv) Date of establishmente: April 2017 ((scheduled)
Disposition of sharessof treasury stock
2. D(1) Purpose and reasonr
for thee disposition
The Company resolved to establish thee Foundation at the meetin
ng of the Boaard of Directorrs held on
December 26
6, 2016. In orrder to fund tthe activities of the Found
dation throughh dividends, etc.
eof theCompany's sttock, shares ofo treasury sto
ock will be trannsferred to a trust establishhed by the Co
ompany by
way of third-p
party allotmentt.
(2) O
Outline of dispposition(i) Number of shares to beb disposed off: 1,500,000 shares of commmon stock(ii) Disposition price: ¥1 per
p share(iii) Amount of proceeds: ¥1,500,000¥(iv) Method of
o offering or disposition:d
Di sposition by way
w of third-pa
arty allotment(v) Disposition to: Japan Trustee
T
Servicces Bank, Ltd..
(sub-trusttee, with Sumiitomo Mitsui Trust
T
Bank, Lim
mited as trusteee)(vi) Disposition date: To bee decidedT
dispositio
on of the sha
ares of treasu
ury stock is subjects
to a sspecial resolu
ution on a(vii) Other: Thefavorable issuance of shares at thee 104th Ordina
ary General MeetingMof Shaareholders to beb held on
garding the disposition will beb resolved att a meeting of the Board
Februaryy 24, 2017. Otther details regof Directtors following the Ordinary G
General Meetiing of Shareho
olders.

22

IV. Otherrs
1. Chang
ges in Officers (as of Februa
ary 24, 2017)entative Directtor(i) Changes in Represe
andidatei) New ca
Represenntative Directoor, President and Chief
Executivee Corporate OfficerOin charge of
Division oof Marketing

Ossamu Chonanii) Officer retiring from Representativ
Re Director possition
Represenntative Directoor, President and Chief
Executivee Corporate OfficerOin charge ofnesaburo Miya
ake
Min
Division oof Marketing(currently, Dirrector, Executive
Corporate Offficer in charge
e ofDelicatessen Products Bus
siness)(Scheduled too assume the office of
Executive Co rporate Advise
er afterthe retirementt)(ii) Chang
ges in Directorrs
andidatesi) New ca
Director, S
Senior Corporrate Officer in charge ofSeeiya Sato
Delicatesssen Products BusinessDirector, S
Senior Corporrate Officer in charge of
Division oof Research Development,
D
DivisionDof Qualityy Assurance an
nd Intellectuall Property Yosshinori Hamac
chiyo
Office, an
nd General Ma
anager of Divission of
Researchh Developmen
ntii) Officerss retiring from Director posittions
Director, Executive Corrporate Officerr inDcharge off Fine Chemiccal Business, Divisionof Researrch Developm
ment, Division ofo Quality Yosshiaki Wada
Assurancce, Intellectual Property Officce andDivision oof Fine Chemical
Director, Executive Corrporate Officerr in
Torru Hyodo
otion
charge off Group Promo

23(currently, Coorporate Officeer, General
Manager of To
Tokyo Branch Office)O(currently, Coorporate Officeer, General
Manager of D
Division of Res
searchDevelopmentt)V. Supp
plementary datad(Notes)1
1. Fraction errorrs may occur due
e to rounding figuures less than 10
00 million, exceptt for "10. Principaal management indexes."
2
2. The following changes took efffect at the begin ning of fiscal yea
ar 2016.
◊ Certain salees promotion expenses and trans portation and wa
arehousing expen
nses were deduccted from net sales.
The figure
es presented for fiscal year 20155 have been adju
usted in accordan
nce with the new
w accounting method appliedin fiscal yeary2016.
◊ The domesttic consolidated subsidiaries havve changed the depreciationdmetthod from the deeclining balance basis to thestraight-line basis.
The figure
es for fiscal yearr 2015 have not been retrospectiively adjusted for the change in tthe depreciation method, but
the effectt of the change in terms of fiscall year 2016 and fiscal year 2015
5 comparisons iss stated in the description offactors beehind changes inn operating incomme.

1. Summmary of net salees and operating income an
nd factors behind changes in operating inncome [Result]]<Net salees>(B
Billions of yen)
Formeraccounting
methodSegment
Condiments pro
oductsEgg products

FiscalYear
2014

Delicatessen prroducts
Processed foodds
Fine chemical productspDistribution sysstem
Common business operations
Total
Condiments pro
oductsEgg products

FiscalYear
2015

Delicatessen prroducts
Processed foodds
Fine chemical productspDistribution sysstem
Common business operations
Total

1sst
qua
arter

2nd
3rd
4th
2nd quarter3rd qua rter
quarter (Cumulative) quuarter (Cumulattive) quarter

Year

35
5.9
24
4.1
24
4.2
13
3.6
2
2.3
30
0.0
1.3
13 1.5
36
6.6
24
4.6
25
5.1
14
4.1
2
2.4
3 1.2
1.5
135
5.6

40.2
25.3
25.5
15.0
2.8
31.2
1.5
141.5
40.6
26.2
27.4
16.8
3.1
31.9
1.4
147.3

151.5
99.5
102.2
57.2
10.7
126.8
5.5
553.4
157.1
104.8
109.1
62.3
11.3
127.7
5.9
578.2

24

76.1
49.4
49.7
28.6
5.1
61.2
2.8
273.0
77.2
50.8
52.5
30.8
5.5
63.1
2.9
282.9

38.6
24.0
26.8
14.1
2.3
32.7
1.3
139.8
41.3
25.9
28.8
15.8
2.8
32.7
1.4
148.7

1144.7
733.4
766.5
422.7
77.5
933.9
44.1
4122.81188.5
766.7
811.3
466.6
88.3
955.8
44.3
4311.6

36.7
26.1
25.7
14.5
3.2
32.9
1.4
140.6
38.5
28.0
27.8
15.6
3.0
32.0
1.7
146.6

New
accounting
methodSegment
Condiments pro
oductsEgg products

Fiscal
Year
2015
(A)

Delicatessen prroducts
Processed foodds
Fine chemical productsp(Adjusted) Distribution sysstem
Common business operations
Total
Condiments pro
oductsEgg products
Fiscal
Year
2016
(B)

Delicatessen prroducts
Processed foodds
Fine chemical productspDistribution sysstem
Common business operations
Total
Condiments pro
oductsEgg products
Delicatessen prroducts

ds
Change Processed food(B) - (A) Fine chemical productspDistribution sysstem
Common business operations
Total

1sst
qua
arter

2nd
3rd
4th
2nd quarter3rd qua rter
quarter (Cumulative) quuarter (Cumulattive) quarter

Year

33
3.2
24
4.6
23
3.2
13
3.1
2
2.4
3 1.2
1.5
129
9.2

36.8
26.2
25.2
15.5
3.1
31.9
1.4
140.0

70.0
50.7
48.4
28.6
5.5
63.1
2.9
269.2

37.3
25.9
26.5
14.5
2.8
32.7
1.4
141.1

1077.3
766.6
744.9
433.1
88.3
955.8
44.3
4100.3

34.9
28.0
25.6
14.4
3.0
32.0
1.7
139.5

142.2
104.6
100.4
57.5
11.3
127.7
5.9
549.8

34
4.0
25
5.7
26
6.0
12
2.0
2
2.7
30
0.4
1.3
132
2.1

37.8
26.1
28.1
13.6
2.6
31.8
1.2
141.3

71.8
51.9
54.1
25.7
5.3
62.3
2.5
273.4

37.8
24.8
28.8
12.5
2.8
32.4
1.4
140.5

1099.6
766.7
822.9
388.1
88.1
944.7
33.8
4133.9

34.5
25.5
28.9
13.1
2.8
32.2
1.3
138.4

144.1
102.2
111.8
51.3
10.9
126.9
5.2
552.3

0
0.8
1.2
2
2.8
( 1.1)
0
0.3
(0
0.8)
(0
0.2)
3
3.0

1.0
(0.0)
2.9
(1.9)
(0.5)
(0.1)
(0.2)
1.2

1.8
1.1
5.7
(2.9)
(0.2)
(0.8)
(0.4)
4.2

0.5
(1.1)
2.3
(2.1)
(0.0)
(0.2)
(0.0)
(0.6)

22.3
00.1
88.0
(55.0)(00.2)(11.1)(00.5)
33.6

(0.4)
(2.5)
3.4
(1.3)
(0.2)
0.2
(0.3)
(1.1)

1.9
(2.4)
11.4
(6.3)
(0.4)
(0.8)
(0.8)
2.5

(Notes) 1. Figures of "2nd quarter" are diffe
erences betweenn "2nd quarter (CCumulative)" and "1st quarter."
2. Figures of "3rd quarter" are diffe
erences betweenn "3rd quarter (Cuumulative)" and "2nd"quarter (Cuumulative)."erences betweenn "Year" and "3rd quarter (Cumula
ative)."
3. Figures of "4th quarter" are diffe25

ng income><Operatin(B
Billions of yen)
Formeraccounting
methodSegment
Condiments pro
oductsEgg products

FiscalYear
2014

Delicatessen prroducts
Processed foodds
Fine chemical productspDistribution sysstem
Common business operations
Total
Condiments pro
oductsEgg products

FiscalYear
2015

Delicatessen prroducts
Processed foodds
Fine chemical productspDistribution sysstem
Common business operations
Total

New
accounting
methodSegment
Condiments pro
oductsEgg products

Fiscal
Year
2015
(A)

Delicatessen prroducts
Processed foodds
Fine chemical productsp(Adjusted) Distribution sysstem
Common business operations
Total
Condiments pro
oductsEgg products
Fiscal
Year
2016
(B)

Delicatessen prroducts
Processed foodds
Fine chemical productspDistribution sysstem
Common business operations
Total
Condiments pro
oductsEgg products
Delicatessen prroducts

ds
Change Processed food(B) - (A) Fine chemical productspDistribution sysstem
Common business operations
Total

1sst
qua
arter

2
2.3
(0
0.1)
0
0.4
(0
0.1)
0
0.2
0
0.6
0
0.3
3
3.6
2
2.6
1.5
0
0.3
(0
0.2)
0
0.0
1.0
0
0.3
5
5.5
1sst
qua
arter

2nd
3rd
4th
2nd quarter3rd qua rter
quarter (Cumulative) quuarter (Cumulattive) quarter

3.6
1.1
1.1
0.2
0.3
0.9
0.3
7.5
3.9
1.3
0.8
0.4
0.1
1.2
0.3
7.9

5.9
1.0
1.5
0.2
0.5
1.5
0.5
11.1
6.5
2.7
1.1
0.2
0.1
2.2
0.6
13.4

3.3
1.5
1.1
0.1
0.1
1.0
0.3
7.3
3.8
1.3
1.0
(0.0)
0.1
1.4
0.2
7.8

99.1
22.5
22.6
00.3
00.6
22.5
00.8
188.4
100.3
44.0
22.0
00.2
00.2
33.6
00.9
211.2

2.4
1.3
0.7
(0.1)
0.4
1.1
0.2
5.9
2.2
1.4
0.7
(0.4)
0.2
1.1
0.0
5.2

2nd
3rd
4th
2nd quarter3rd qua rter
quarter (Cumulative) quuarter (Cumulattive) quarter

Year

11.5
3.8
3.3
0.2
1.0
3.6
1.0
24.3
12.5
5.4
2.7
(0.3)
0.4
4.8
0.9
26.4
Year

2
2.5
1.5
0
0.3
(0
0.2)
0
0.0
1.0
0
0.3
5
5.4

3.8
1.3
0.8
0.3
0.1
1.2
0.3
7.8

6.3
2.7
1.1
0.1
0.1
2.2
0.6
13.1

3.8
1.3
1.0
0.0
0.1
1.4
0.2
7.8

100.1
44.0
22.0
00.1
00.2
33.6
00.9
200.9

2.4
1.4
0.7
(0.4)
0.2
1.1
0.0
5.4

12.5
5.4
2.8
(0.3)
0.4
4.8
0.9
26.4

1.6
1.5
0
0.3
(0
0.2)
0
0.2
0
0.9
0
0.0
4
4.4

4.6
1.7
1.1
0.5
0.4
1.2
0.2
9.8

6.2
3.2
1.5
0.3
0.6
2.1
0.3
14.2

4.7
1.4
1.1
0.3
0.3
1.4
0.2
9.3

100.9
44.6
22.6
00.6
00.9
33.5
00.4
233.4

2.8
0.9
0.9
(0.1)
0.1
1.4
0.3
6.4

13.7
5.5
3.5
0.5
1.0
4.9
0.8
29.8

(0
0.9)
(0
0.0)
0
0.0
(0
0.0)
0
0.2
(0
0.1)
(0
0.2)
( 1.0)

0.8
0.4
0.4
0.2
0.3
0.1
(0.1)
2.1

(0.1)
0.4
0.4
0.2
0.5
(0.0)
(0.3)
1.0

0.9
0.1
0.2
0.2
0.2
(0.1)
(0.1)
1.5

00.8
00.5
00.6
00.4
00.7
(00.1)(00.4)
22.5

0.4
(0.4)
0.1
0.4
(0.0)
0.2
0.3
0.9

1.2
0.1
0.7
0.8
0.7
0.1
(0.1)
3.5

(Notes) 1. Figures of "2nd quarter" are diffe
erences betweenn "2nd quarter (CCumulative)" and "1st quarter."
2. Figures of "3rd quarter" are diffe
erences betweenn "3rd quarter (Cuumulative)" and "2nd"quarter (Cuumulative)."
3. Figures of "4th quarter" are diffe
erences betweenn "Year" and "3rd quarter (Cumula
ative)."

26

ges in operatin
ng income (commparison withh the previous fiscal year)><Factors behind chang(Billions of yen)

Fiscal year
2015
(A)
(
Ope
erating income

26.4

Fiscal year
2016
(B)

29.8

Change(B) - (A)

3.5

* The impacct from changing
g the depreciationn method is an inncrease of ¥2.4 billionb(Including one-time write-of
off of residual boo
ok valueamounting to negative ¥2.8 billion that occ
curred in the firstt quarter).
* Sales promotion expensess and transportattion and warehouusing expenses for fiscal year 20
015 were adjusteed to reflect the amountsadeduced ffrom net sales.

27mary of net salees and operating income an
nd factors behind changes in operating inncome [Plan]
2. Summes><Net sale(B
Billions of yen)

Fiscal yeary2015

Fiscal year 2016
2
(A)

Fiscal year 2017
(Plan)(B)

Condimen
nts products

142.2

14
44.1

154.0

9.9

Egg produ
ucts

104.6

102.2

103.0

0.8

Delicatesssen products

100.4

111.8

114.8

3.0

Processedd foods

57.5

51.3

46.9

(4.4)

Fine chem
mical products

11.3

10.9

12.3

1.4

Distributio
on system

127.7

126.9

127.0

0.1

Common business
operationss

5.9

5.2

7.0

1.8

549.8

552.3

565.0

12.7

S
Segment

Total

Change(B) - (A)* Net sales for fiscal year 20
015 were adjuste
ed to reflect the aamounts deducte
ed from net saless.

<Operatin
ng income>(B
Billions of yen)

Fiscal yeary2015

Fiscal year 2016
(A)

Fiscal year 2017
(Plan)(B)

Condimen
nts products

12.5

13.7
1

15.2

1.5

Egg produ
ucts

5.4

5.5

5.6

0.1

Delicatesssen products

2.8

3.5

4.1

0.6

Processedd foods

(0.3)

0.5

0.3

(0.2)

Fine chem
mical products

0.4

1.0

1.2

0.2

Distributio
on system

4.8

4.9

5.8

0.9

Common business
operationss

0.9

0.8

0.8

0.0

26.4

29.8
2

33.0

3.2

S
Segment

Total* Operatingg income for fisca
al year 2015 wass adjusted to refleect the amounts deducted from net sales.

28

Change(B) - (A)ges in operatin
ng income (commparison withh the previous fiscal year)><Factors behind chang(Billions of yen)

Fiscal year
2017
(Plan)(B)

Fiscal year
2016
(A)
(
Ope
erating income

29.8

Change(B) - (A)

33.0

3.2

* Figures in
nclude an increa
ase of ¥2.8 billion
n of the one-timee write-off of resiidual book value due to the channges to deprecia
ation method
applied inn fiscal year 20166.

3.

omponents of selling, generral and administrative expennses [Result anda Plan]Capittal investmentts and main co(B
Billions of yen)

Fiscal year 20
015 Fiscal year 2016
(A)
(B)

Chan
nge
(B) - (A)Fisca
cal year
22017
Plan)
(P
((C)

ChangeC(C)( - (B)

Capital invvestments

32.4

33..0

0.6

31.4

(1.6)

Depreciattion expenses

19.1

18..3

(0.8)
(

16.8

(1.5)

Sales promotion expense
es*

3.5

3..7

0.2

4.0

0.3

Advertisin
ng expenses

8.7

8..7

0.0

9.7

1.0

Transporttation and wareh
housing
expensess*

25.0

25..0

0.0

25.7

0.7

Payroll exxpenses

28.7

29..8

1.1

31.3

1.5

Research and developme
ent expenses

4.2

4..0

(0.2)
(

4.3

0.3

* Sales pro
omotion expensees and transportation and warehhousing expense
es for fiscal year 2015 were adjuusted to reflect thet amounts
deduced ffrom net sales.

ume and amou
unt of salads ccondiments byy category typee (Kewpie Corrporation) [Reesult]
4. Domesstic sales voluFis cal year
2
2015
(A)
For houseehold use

For comm
mercial use

cal year
Fisc
2016
2
(B)

Ch
hange
(B) - (A)

Vollume (Thousand
ds of ton)

126

126

1

Am
mount (Billions of yen)*

63.8

63.9

0.1

ds of ton)
Vollume (Thousand

106

107

1

Am
mount (Billions of yen)*

41.6

41.3

(0.3)

* The amou
unts stated for fisscal year 2015 are adjusted figurees, calculated byy deducting certa
ain sales promotioon expenses anddtransporta
ation and wareho
ousing expensess from net sales.

29

5. Summ
mary of net salees and operating income in overseas ope
erations [Result and Plan]<Net salees>(B
Billions of yen)

Fiscal yyear
2015
5
(A)

Fiscal year
201
16
(B
B)

Cha
ange
(B) - (A)Fisccal year
22017
(P
Plan)
(C)

ChangeC(C) - (B)

3 7.7

37.8
3

0.1

43.1

5.2

China

14
4.2

15.7

1.5

18.1

2.4

Southeast Asia

7.9

7.6

(0.3)

8.1

0.5

North A
America

12
2.9

11.8

(1.0)

11.4

(0.4)

Export from Japan

2
2.7

2.7

0.0

5.4

2.7

Net sales in overseas operations**

For overrseas subsidiarie
es, figures are results from Octobber to Septemberr.
Net salees for fiscal year 2015 were adjus
sted to reflect thee amounts deduc
cted from net sales.

<Operatin
ng income>(B
Billions of yen)

Fisccal year
22017
Plan)
(P
(C)

Fiscal yyear
2015
5
(A)

Fiscal year
201
16
(B
B)

4
4.0

3.3

(0.7)

3.1

(0.2)

China

1.7

2.2

0.5

2.5

0.3

Southeast Asia

0.0

0.2

0.1

0.2

0.0

North A
America

1.9

0.6

(1.4)

0.1

(0.4)

Export from Japan

0.3

0.4

0.1

0.3

(0.1)

Operatingg income in overrseas operations

Cha
ange
(B) - (A)ChangeC(C) - (B)* For oversseas subsidiariess, figures are resu
ults from Octobeer to September.

6. Princip
pal items of chhanges in non--operating inccome (expensees) and extrao
ordinary gains (losses) [Ressult]
(B
Billions of yen)

Fiscal year
2015

Fiscal year
2016

Non-opera
ating income(expensses), net

0.9

1.5

0.7

Extraordinnary gains(losses), net

1.4

(1.1)

(2.4) consolidated subsidiary and A
AohataChangeItems of chhanges[Comparison with ffiscal year 2015
5]
Increase in su
ubsidy income

0.3

Increase in reeversal of allowaances for
doubtful accounts

0.3

Decrease in extraordinaryegaains due to
Aohata Corpo
oration becominng a(2.8)

Corporation's merger with itss subsidiary

7. Princip
pal items of chhanges in non--operating inccome (expensees) and extrao
ordinary gains (losses) [Plann](B
Billions of yen)

Fiscal year
2016

Fiscal year
2017
(Plan)

Non-opera
ating income(expensses), net

1.5

1.1

(0.4)

Decrease in reversal of allow
wances for
doubtful accounts(0.3)

Extraordinnary gains(losses), net

(1.1)

(2.1)

(1.0)

Decrease in gains
gon sales oof investment
securities(0.4)

Decrease in compensationcinncome(0.2)

Change30

Principal itemss of changes[Comparison with ffiscal year 20166]

mary and itemss of changes inn balance she
eets [Result]
8. Summ(B
Billions of yen)

Fiscal year
2015

Fiscal year
2016

148.5

150.2

1.6

Tangiblee andintanggible fixed
assetss

172.5

189.1

16.6

Investments andother assets

52.0

128.3

ChangeItems of chhanges[Comparison with ffiscal year 2015
5]

(Assets)
Current asssets

Increase in ca
ash and depositts

6.0

Decrease in notesnand accouunts
receivable - trrade(3.0)

Increase resu
ulting from purchhases

35.8

Decrease resulting from deprreciation(18.3)

46.7

afor retirem
ment benefits(5.3) Decrease in assets(5.0)

Increase in ac
ccounts payablee - other

3.4

140.1

11.8

Increase in ac
ccrued income ttaxes

3.1

Increase in loans payable

5.4

Increase in ea
arned surplus

12.3

Increase in tre
easury stock(4.7)

Decrease in accumulatedaothhercomprehensiv
ve income(8.0)

Fixed asssets(Liabilitiess)(Net asse
ets)

244.7

245.9

1.1

9. Princip
pal items of chhanges in cash
h flows [Resullt](B
Billions of yen)

Fiscal year
2015

Cash flow
ws from
operatinng activities

28.1

Fiscal year
2016

45.3

Change17.2

Cash flow
ws from
investinng activities(31.2)(32.0)(0.9)

Cash flow
ws fromfinancinng activities

(7.1)

(5.8)

1.3

31

Items of chhanges[Comparison with ffiscal year 2015
5]
Increase in nootes and accounnts receivable- trade(6.7)

Decrease in innventories

3.1

Increase in nootes and accounnts payable trade

14.8

Increase in ac
ccounts payablee - other

4.7

Increase in pu
urchases of tanggible fixed
assets(1.1)

Increase in loans payable

6.1

Increase in reepurchase of shaares(4.7)

ment indexes [Result][
10. Princcipal managem
Fiscal yyear
2012
2

Fiscal year
201
13

Fisca
al year
20
014

Fisccal year
22015

Fis
scal year
2016

Net sales (millions of yen
n)

504,9
997

530,549553
3,404

5449,774

552,306
5

V.S. preevious year (%))

3.8

5.1

4.3

–

0.5

23,3
368

22,402

24
4,343

226,354

29,818

1 2.3

(4.1)

8.7

–

13.1

Operatingg income to net sales (%)

4.6

4.2

4.4

4.8

5.4

Ordinary iincome (millionss of yen)

24,4
467

23,74925
5,368

227,224

31,364

Operatingg income (million
ns of yen)
V.S. preevious year (%))

Ordinary iincome to net sa
ales (%)
Profit (millions of yen)

4.8

4.5

4.6

5.0

5.7

12,2
291

12,567

13
3,366

116,973

17,093

2.4

2.4

2.4

3.1

3.1

Total net aassets (millions of yen)

195,9
928

210,285

220
0,397

2444,717

245,8612

Total asseets (millions of yen)
y

306,5
515

334,655356
6,994

3773,017

385,914
3

5
55.8

55.0

54.6

57.1

55.1

Cash flow
ws from operatin
ng activities (millionsof yen)33,2
246

27,36934
4,392

228,094

45,260Cash flow
ws from investingg activities (millionsof yen)

(24,4
434)

(21,897)(30,847)(331,181)(32,046)

Cash flow
ws from financing
g activities (millionsof yen)7,0022(2,307)(3,149)(7,101)(5,805)

Free cash
h flow (millions ofo yen)(operating cash flow + investing cash
flow)

8,8
811

5,471

3,545

(3,086)

13,213

Cash and cash equivalen
nts at the end off theear (millions of yen)yfiscal ye

40,3
387

43,963

44
4,788

334,841

40,790Interest-bearing debt (millions of yen)

23,1
185

25,882

29,110330,559

36,066

Paid-in ca
apital (millions ofo yen)

24,1
104

24,10424
4,104

224,104

24,104

Total nummber of issued shhares (thousand
ds ofshares))

153,0
000

153,000

153
3,000

1553,000

153,000
1

Net assets per share (yen)1,141 .68

1,230.32

1,284.36

1,4403.05

1,420.63

Earnings per share (yen))

82
2.09

83.94

88.69

111.82113.47

Free cash
h flow per sharee (yen)Profit ratioo (%)

Equity ratio (%)

58
8.85

36.55

23.52
2

(20.34)87.72

Return on
n equity (%)

7.4

7.1

7.0

8.3

8.0

Ordinary iincome to total assets
a
(%)

8.4

7.4

7.3

7.5

8.3

Annual divvidend per sharre (including inte
erim
dividend) (yen)

2
20.0

22.0

23.0

29.0

34.5

[interim diividend per share] (yen)[[9.5][11.0][[11.5][12.5][15.0]

Price earnnings ratio (time
es)

1 4.6

17.3

21.9

26.4

23.8

Dividend payout ratio (%)

2
24.4

26.2

25.9

25.9

30.4

Dividend oon equity ratio (%)
(

1.8

1.9

1.8

2.2

2.4

Number oof regular full-tim
me employees

12,4
425

12,59812
2,933

113,478

14,095

Average nnumber of temp
porary employee
es

11,1
154

11,316

11,84011,51911,150Stock pricce at the end of the fiscal year (yen)

1,2
200

1,454

1,942

2,953

2,703

* Consumpption taxes are not included in ne
et sales.
* Changess in accounting policiesphave beeen applied to sta ndards for recording net sales fo
or fiscal year 20116 and figures fo
or fiscal year
2015 werre adjusted to refflect retrospective
e application of tthe changes in ac
ccounting policies. Due to these cchanges, the figu
ures for “V.S.
previous year (%)” of fiscal year 2015 are not presented.

32