KENKO Mayonnaise Co., Ltd.
[Securities code: 2915]

Material for the Briefing Session
for FY 3/2021
May 19, 2021

©2021 KENKO Mayonnaise Co., Ltd.

Overview of the Resultsfor FY 3/2021©2021 KENKO Mayonnaise Co., Ltd.

2

Highlights of the Results for FY 3/2021 (Consolidated)
Profit attributable toowners of parent

Net sales

Ordinary profit

68,502 million yen

2,050 million yen(Down 8.0% YoY)

(Down 31.7% YoY)

(Down 29.2% YoY)

(Up 0.7% from the estimate)(Up 0.5% from the estimate)(Up 10.5% from the estimate)

1,458 million yen⇒ Sales and profit dropped, but maintained almost at the same level as
the forecast (announced in August 2020).

●Seasoning and Processed Foods Business ⇒ Decline in sales and profit

The segment performance was considerably affected by COVID-19,

Sales

mainly in the restaurant sector.
The sales of salads and delicatessen, processed egg products,
mayonnaise and dressings decreased.
●Delicatessen-related Business, etc.

⇒ Increase in sales and profit

The demand for delicatessen at mass retailers was healthy.

ProfitWe revised our business plan and reduced fixed costs and other expenses.

©2021 KENKO Mayonnaise Co., Ltd.

3

Results for FY 3/2021 (Consolidated)
Summary of theconsolidated
statements of income

FY 3/2021

FY 3/2020

Unit: million yen
AmountAmountYoY

Net sales

74,48068,502-8.0%

Gross profit

17,84415,859-11.1%

24.0%

23.2%

14,944

13,882

-7.1%

2,900

1,976

-31.9%

3.9%

2.9%

3,003

2,050

4.0%

3.0%

Profit before income taxes

3,104

2,140

-31.1%

Profit attributable to owners ofparent

2,058

1,458

-29.2%(Net profit margin) %

2.8%

2.1%

(Gross profit margin) %Selling, general andadministrative expenses
Operating profit(Operating profit margin) %Ordinary profit(Ordinary profit margin) %Earnings per share

124.94 yen©2021 KENKO Mayonnaise Co., Ltd.

Forecast for
FY 3/2021(announced on
August 11, 2020)

Comparedwith theestimate+0.7%

Amount68,000
-

2,100

-5.9%

3.1%
-31.7%

2,040

+0.5%

3.0%

88.51 yen

+10.5%

1,320
1.9%

80.12 yen4

Sales by Sector (Consolidated)

FY 3/2020

FY 3/2021
Other
3.8%
School
lunch
4.4%

Other

School 4.1%
lunch
4.3%

Bread

Restaurants

Bread

12.7%

27.6%

13.3%

Mass
retailersConvenience

24.6%

stores28.0%

Restaurants
23.8%

26.6%

Mass
retailersConvenience
stores26.7%

1

Restaurants

１

Mass retailers

2

Convenience

Convenience

stores２

3

Mass retailers

３

Restaurants©2021 KENKO Mayonnaise Co., Ltd.

stores5

Variations in Sales by Sector (Consolidated)
Net sales[million yen]

75,00070,00065,00060,000

Sales by sector[million yen]

73,989 74,480

25,00015,000●Convenience stores
FY 3/2020

FY 3/2021

19,828 million yen ⇒ 18,301 million yen

50,00010,00045,000

9,811

9,489

9,120

40,000

3,316

3,207

3,034

30,000+4.8%

20,236
16,969FY 3/2021

18,315 million yen ⇒ 19,195 million yen
20,00055,00035,000FY 3/2020

68,502

20,619●Mass retailers

3,038
FY3/2019
Consolidated net sales
Mass retailers
Other

3,085
FY3/2020
Restaurants
Bread©2021 KENKO Mayonnaise Co., Ltd.

5,000

●Restaurants
FY 3/2020

2,575
FY3/2021-7.7%

0FY 3/2021

20,556 million yen ⇒ 16,277 million yen-20.8%

Convenience stores
School lunch

6

(Reference) Trends by Industry
Trends by Industry (YoY sales growth rate)
110.0%

1st declaration of a state of emergency

2nd declaration of a state of emergency

Mass retailers (delicatessen)
100.0%

90.0%

Convenience
stores80.0%

Restaurants
70.0%

60.0%

2019

Mar.

2020

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

2021

Jan.

Feb.

Mar.

Sources
Restaurants: Japan Foodservice Association’s survey on the restaurant market trend
Mass retailers (delicatessen): Survey on sales at supermarkets (National Supermarket Association of Japan, Japan Supermarkets Association, and All Japan Supermarket Association)
Convenience stores: Statistical data on convenience stores provided by Japan Franchise Association©2021 KENKO Mayonnaise Co., Ltd.

7

Sales by Product (Consolidated)
FY 3/2021
Other
5.5%
Mayonnaise
and dressings

Salads

24.8%

44.1%

Egg products
25.6%

Note:
The photos are forexample purposes
only.

©2021 KENKO Mayonnaise Co., Ltd.

8

Variation in Sales by Product (Consolidated)
Net sales
Unit: million yen

Sales by Product
Unit: million yen

80,00066,93370,00060,00050,00040,00057,30160,32730,49625,45317,092

16,772

10,000032,45832,80640,00068,50235,00034,75630,00030,211
25,00018,055
17,064

13,69031,44327,25830,00020,00070,812

74,48072,759 73,989

20,322

17,577

20,964

17,777

21,43820,191

18,149 18,042

17,53320,00016,99015,00015,19010,000
3,768

1,066

1,107

1,318

1,470

1,560

1,596

1,491

FY3/2014

FY3/2015

FY3/2016

FY3/2017

FY3/2018

FY3/2019

FY3/2020

Consolidated net sales©2021 KENKO Mayonnaise Co., Ltd.

SaladsEgg products

Mayonnaise and dressings

FY3/2021

Other

5,000
0

9

Overview of Net Sales by Business Segment(Consolidated)
Unit: million yen

80,00075,000

Seasoning and Processed
Foods Business

74,480●Sales weight: Down 12.3%

68,50270,00065,000mainly in the restaurant sector.
16,21545,000■Processed egg products (net sales down 13.0%︔sales weight down 13.2%)

59,093
19,974

51,611

17,38640,00018,034

16,990●The demand for delicatessen at mass retailers is healthy.

1,020●The sales of Kanagawa Factory of KANTOH DIETCOOK Co.,
Ltd. is growing steadily.

20,00010,000

1,441

Other

16,057

14,2501,136
FY 3/2020

832
FY 3/2021■Seasoning and Processed Foods Business ■Delicatessen-related BusinessNet sales: Down 26.8%●The sales of Salad Cafe dropped, due to the voluntary restraint ofgoing out, etc. amid the COVID-19 pandemic.

Other( ■Salads and delicatessen ■Processed egg products ■Mayonnaise and dressings )©2021 KENKO Mayonnaise Co., Ltd.

●

Mainly the shop business (Salad Cafe)

5,000
0

●Net sales: +12.7%

Fresh delicatessen (daily delivered salads and delicatessen), undertaking production inside the corporate group30,00015,000■Mayonnaise and dressings (net sales down 5.8%︔sales weight down 5.9%)

Delicatessen-related
Business

35,00025,000●The sales decreased in each sector.
■Salads and delicatessen (net sales down 17.5%︔sales weight down 18.4%)

55,00050,000

Unit selling price: Down 2.7 yen/kg●The segment performance was considerably affected by COVID-19,

19,64460,000●Net sales: Down 12.7%

10

Net Sales and Profit by Business Segment (Consolidated)

FY 3/2020

FY 3/2021

74,480

Seasoning and Processed
Foods Business
Delicatessen-related
Business

YoY
difference%

68,502-5,978-8.0%

59,09351,611-7,481-12.7%

14,25016,057+1,806+12.7%

Other

1,136

832

-304

-26.8%

Segment profit

3,003

2,050

-952

-31.7%

2,532

1,617

-915

-36.1%

396

541

+145

+36.6%

Other

80

-35

-115

-

Adjustments

-6

-72

-66

-

Unit: million yen

Net sales

Seasoning and Processed
Foods Business
Delicatessen-related
Business©2021 KENKO Mayonnaise Co., Ltd.

11

Factors in Changes in Ordinary Profit(Unit: million yen)

3,000

2,500

(Consolidated)

Decline in
net sales

3,003-1,163
Impact on
production
efficiency

2,000
1st half: -764
2nd half: -399

1,500

1st half: -568
2nd half: -117

1st half: -967
2nd half: +14

131
1st half: +18
2nd half: +113

764

-685

1,000

Reduced fixed
costs

Changes iningredient prices

2,050

1st half: +347
2nd half: +417

YoY

-953

500

0

FY 3/2020©2021 KENKO Mayonnaise Co., Ltd.

FY 3/2021

12

Overview of the Balance Sheet (Consolidated)*Includes long-term accounts payable - other
Unit: million yen

FY 3/2020

FY 3/2021

Difference

Change from
FY 3/2020end (%)

Current assets

25,61726,317

+699

+2.7%

Non-current assets

38,14936,003-2,146-5.6%

63,76762,320-1,447-2.3%

15,633

13,059-2,573-16.5%

29,664

26,742-2,922-9.9%

Net assets

34,10335,577+1,474+4.3%

Total liabilities and net assets

63,76762,320-1,447-2.3%

2,069.93 yen

2,159.46 yen+89.53 yen

+4.3%

53.5%

57.1%

+3.6%

AssetsTotal assets

Liabilities

Balance of interest-bearing
debt*

Net assets per share
Equity ratio

Total assets decreased by 1,447 million yen, mainly due to the depreciation of new production sites.
 Equity ratio rose to 57.1%, through the steady repayment of interest-bearing debt.

©2021 KENKO Mayonnaise Co., Ltd.

13

Overview of Cash Flows (Consolidated)
Cash flows fromoperating activities
Cash and cash
equivalents at
end of previous
periodCash flows frominvesting activities-588-2,976

5,203

10,747

Cash flows fromfinancing activities

YoY(Unit: million yen)

Cash and cash
equivalents at
end of current
period12,385+1,638FY 3/2020

FY 3/2021

 In response to the decline in sales and profit, we made efforts to improve the efficiency of use of funds,

by such as reducing inventory assets and revising capital investment plans.As a result, the balance of cash
and deposits increased by 1,638 million yen from the end of the previous term, and cash on hand grew(enhancing our capacity to respond to emergencies).
©2021 KENKO Mayonnaise Co., Ltd.

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Outlook for
FY 3/2022©2021 KENKO Mayonnaise Co., Ltd.

15

Earnings Estimate for FY 3/2022 (Consolidated)
Summary of the consolidated
statements of income
Unit: million yen

FY 3/2021
AmountFY 3/2022 (estimate)AmountYoY

Net sales

68,502

73,200Gross profit

15,859-(Gross profit margin) %Selling, general and administrative
expenses

23.2%

13,882

-

1,976

1,430

2.9%

2.0%

2,050

1,500

3.0%

2.0%

Profit before income taxes

2,140

-

Profit attributable to owners of parent

1,458

1,050

2.1%

1.4%

Operating profit(Operating profit margin) %Ordinary profit(Ordinary profit margin) %(Net profit margin) %Earnings per share©2021 KENKO Mayonnaise Co., Ltd.

6.9%

88.51 yen

-27.6%-26.9%-28.0%

63.73 yen
16

Forecast of Net Sales by Business Segment (Consolidated)
Unit: million yen

Seasoning and Processed
Foods Business

80,00073,20075,00070,00017,192
16,21560,00045,00055,291

51,611

18,28817,38640,00025,00020,00016,99018,733+5.2%+10.3%●Enrich our product lineup for new lifestyles.
. ⇒Meet takeaway and delivery needs.

Delicatessen-related
Business

16,985

16,057832
FY 3/2021●

Net sales: +10.9%●Brand improvement ⇒ Increase funs via social media●Share information and cement cooperation with Diet Cook Supply.

Other( ■Salads and delicatessen ■Processed egg products ■Mayonnaise and dressings )©2021 KENKO Mayonnaise Co., Ltd.

Net sales: +5.8%

shop business (Salad Cafe) and overseas business923
FY 3/2022 (Est.)■Seasoning and Processed Foods Business ■Delicatessen-related Business●

Fresh delicatessen (daily delivered salads and delicatessen), undertaking production inside
the corporate group

Other

5,000
0

+6.0%

Mayonnaise and dressings●Meet the demand for delicatessen, which is growing amid the COVID-19
pandemic.

1,078

1,020

15,00010,000

Processed egg products●Increase sales channels, such as drugstores.
.

35,00030,000

Salads and delicatessen●Plan to revise the prices of mayonnaise products in Julyand onwards.

55,00050,000

Nets sales: +7.1%

Forecast for FY 3/2022

68,50265,000●17Forecast for Changes in Ordinary Profit
Improved
production
efficiency

Unit: million yen

4,000

Increase in
net sales

3,500(Consolidated)

Reduction of
fixed costs

545

-165

Changes iningredientprices

3,000

1,197

-2,127

2,500
2,000

1,500

2,050

With price revisions
factored in

1,000

YoY

500

Edible oil
Chicken
eggs

1,500

-550

0
FY 3/2021

FY 3/2022(Est.)©2021 KENKO Mayonnaise Co., Ltd.

18

(Reference) Market Prices of Ingredients●Edible oil
Japanese oil makers revised the prices of their products inSoybeans(Monthly average of market priceof soybeans in Chicago)

Unit: dollars/bushel

March 2021.
⇒ They plan to revise the prices again in the future.
As the inventory of old crops of soybeans and rapeseed isinsufficient, the market prices of new crops have already risen.

16
14
12
10
8
6
Jan. Feb. Mar. Apr. May Jun.

Market prices are estimated to skyrocket
unusually.

2019●Chicken eggs

Chicken eggs

The market price has been rising since the beginning of the

Unit: yen

year, due to the bird flu, which spread from November last year.

260

The price of compound feeds, which accounts for 60% of the cost

Jul. Aug. Sep. Oct. Nov. Dec.

2020

2021

(Zenno Egg Size M [Tokyo])*May 2021

210

for producing chicken eggs, is continuously rising, due to theskyrocketing of the market prices of corn and soymeal in Chicago.
⇒Our production costs also augmented accordingly.

In FY2021, it is projected to remain high.
©2021 KENKO Mayonnaise Co., Ltd.

160
110

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

2019

2020

2021

19

Dividends and Return to Shareholders
To continue the stable payment of dividends

Basic policy

To increase the dividend level according to performance
(%)

[Yen]

40

■ Common dividend (interim)■ Common dividend (term-end)
Payout ratio

30

20

23.6

23

23

13

19

40.0

15
19.1

19.0

16

10

10

FY 3/20142014年3月期

FY 3/2015
2015年3月期

11
FY 3/20162016年3月期©2021 KENKO Mayonnaise Co., Ltd.

14

18

20

15

24.8

12

FY 3/20182018年3月期

30.0

23.5

20.0

FY 3/20192019年3月期

8

15

10.0

8
FY 3/20172017年3月期

15

22.6

21.2
21.5

19.9

50.0

31

17

11
10

60.0

37
30

28
21

0

37

FY 3/20202020年3月期

FY 3/2021
2021年3月期

7
FY 3/2022 (Est.)
2022年3月期（予想）

0.0

20

Medium-Term
Management Plan fromFY2021 to FY2023©2021 KENKO Mayonnaise Co., Ltd.

21

Changes in the Business Environment
Business environment
 Changes in lifestyles
COVID-19

 Focus on health and immunity Diversification of workstyles

Food products

Demographic
dynamics(Japan)Environmentand society

GlobalDigitalIssues to be dealt with●To cope with the COVID-19 and adapt to thepost-pandemic society

・Diversification of the dietaryenvironment
 Intensification of competition
among business sectors●To grow the core business continuously Declining population and birthrate,
and aging Increase of single-personhouseholds●To seek new businesses while keeping
an eye towards the future ESG and SDGs
 Food loss issues
 Abnormal weather and large-scaledisasters Overseas interest in Japanesecuisine New dietary culture Digital transformation (DX) Utilization of AI and robot
technologies©2021 KENKO Mayonnaise Co., Ltd.

●Shift to ESG- and SDGs-oriented
corporate management●To promote globalization●To promote DX
22

Basic Policy in the New Medium-Term Management Plan
New Medium-Term management plan from FY2021 to FY2023

Transformation for improving corporate value
and achieving sustainable growth

Sustainability Policy

Four Themes
1. B to B to C

Environment

To become an environmentally friendly
company

2. Innovation
Society

To bring happiness to stakeholders

3. Structural reform
4. Global business©2021 KENKO Mayonnaise Co., Ltd.

HealthTo care for mental and physicalhealth and lives

23

Four Themes: (1) B to B to C
To conduct B to B to C businesses while coping with the COVID-19
and looking ahead to the post-pandemic market
Business
partners

Consumers

To increase opportunities for consumers to get to know our company firsthand
Recognition
Web
SocialMedia

Products

Interest

SearchPurchase

Sharing□Video content (recipes, dietary education, and factory tours)□Expansion of EC sites□Enrichment of websites (for menus)□One-portion products for eating alone □Ingredients for local cuisines and specialties□Response to the COVID-19 pandemic (to meet takeaway and delivery needs)

Activities & □Cooking lessons (Kitchen Space 831)
Research⇒Promotion of nutrition©2021 KENKO Mayonnaise Co., Ltd.

□Research into vegetables and salads⇒To find the strong points of vegetables
24

Four Themes: (2) Innovation
Crystallize our New KENKO vision into eco-friendly services.

New KENKO

Present

New KENKO

Establish a new future-oriented businessto meet social need, with the perspectivesof ESG, SDGs, and CSV incorporated.

Menu
promotionCorebusinessCorebusiness

Product
development

Salad Cafe

©2021 KENKO Mayonnaise Co., Ltd.

To develop cooking consultants
To open kitchen studios
To enrich plant-based products
To make next-generation
delicatessen and salads
To expand the operation of new
salad shops utilizing our know-how
25

Four Themes: (2) Innovation
Improvement in corporate value =Social value x Economic value
Product strategies

Social value (sustainability)●To extend best-before periods●Clean labels (transparency and added value)●Upcycling (to use up vegetables from roots to leaves)

Improvement
in corporate
value

Production strategies●To realize carbon neutrality⇒Designate Shizuoka Fujisan Factory a model
sustainable factoryWith solar panels installed, CO2 emissions are
reduced by 3%/yr.
●Collaborative initiatives between industry and academia

S

E

Economic value(business growth)G©2021 KENKO Mayonnaise Co., Ltd.

26

Four Themes: (3) Structural Reform
To execute reform for growing the core businessBusiness expansion
Growth of the core business●Market- and servicespecific strategies⇒Form 26 specific teams●Initiatives for new sales channels⇒To expand sales channels on new dietary
trends amid the COVID-19 pandemic

Reform and improvement
Workstyles
HR system Welfare
Personnel development⇒To motivate employees©2021 KENKO Mayonnaise Co., Ltd.

Systems
Promotion of DX⇒To improve business
operations again
Enhancement ofcorporate governanceImprovement activities
Reform of employees’
mindsets⇒Raising environmental
awareness⇒Educational activities for
improving productivity
27

Four Themes: (4) Global BusinessTo strengthen the foundation for our global business
Overseas footholds●North America: To plan the establishmentof footholds in the U.S. market●Indonesia: To expand the support for IKI

Development of products and HR●Utilization of overseas research centers⇒Product development considering
global food trends (plant-based, vegan, etc.)

Export and sale
●To increase exports and destinations(as of Mar. 2021: 46 countries/regions)⇒ Major targets:
The U.S., Canada, Australia, Taiwan,
and Indonesia
Target sales from export

1.1 billion yen
0.7 billion yen●Enrichment of the lineup of products
to be exported●Strengthening of global human resources
FY2020©2021 KENKO Mayonnaise Co., Ltd.

FY202328

Sustainability: (1) Policy and Issues

To become an environmentallyfriendly company
Ideal
state

Environment

Sustainability policy

Five Issues
Greenhouse gases●Carbon neutrality●Recycling-based economy

Ingredients

Ideal
state

Society

To bring happiness to stakeholders●Happiness of workers

Ideal
state

Container/
packaging materials●Harmony with local
communities and society

To care for mental and physicalhealth and lives
HealthContributing to the world by
providing quality foods

Company
Philosophy●To provide safe, reliable
products●To promote health-oriented
management©2021 KENKO Mayonnaise Co., Ltd.

HealthHuman resources

29

Sustainability: (2) SDGs-oriented initiatives
Greenhouse gases

To reduce CO2⇒Shift to environmentallyfriendly equipment
To use renewable energy
Streamline logistics management

Container/
packaging materials

Ingredients

To reduce food loss
⇒Development of upcycled products⇒Extension of best-before periods

To adopt sustainable
ingredients

HealthHuman resources

To reduce the use ofplastics

To develop productswith high added value

To improve the worklife balanceTo promote 3R activities

Education through foodTo respect diversity

To select environmentallyfriendly materials©2021 KENKO Mayonnaise Co., Ltd.

30

Sustainability: (3) Goals

IssuesGoals for FY2023

Goals for FY2030

Goals for FY2050

-3%

-50%

-100%

Removal of
R22
refrigerants

Naturalrefrigerants

Reductionof CO2

Reduction of(Compared with theemissions in FY 2019)
greenhouse gases
Shift toSubstitutefor CFCs

Use of sustainable
packaging materials

alternaterefrigerants
Adoption oflightweightpackaging

100%

Utilization of recyclable materials(for all items)

60%

100%

materials
Reduction of processing loss

Reduction of
waste©2021 KENKO Mayonnaise Co., Ltd.

(Compared with the loss in FY 2019)

-5%

-15%

-30%
31

Goals in the New Medium-Term Management Plan
New Medium-Term management plan from FY2021 to FY2023

Transformation for improving corporate value
and achieving sustainable growth
Goals for FY 2023

Consolidated net sales: 80 billion yen
Consolidated ordinary profit: 4 billion yen©2021 KENKO Mayonnaise Co., Ltd.

32

For Inquiries• Contact info︓
Publicity & IR Section, Corporate Planning Department,
Corporate Planning Division (Tokyo H.Q.)– Telephone: 03-5941-7682– E-mail: ir@kenkomayo.co.jp• Notes on the future outlook
This material is intended for providing investors with information only, not forsoliciting the trade of shares. The contents related to forecasts in this material
are based on goals and predictions, so they do not give any promise or
guarantee. Please use the information, while recognizing that actual businessperformance of our company may turn out to be different from the current
forecast. In addition, the contents related to business results, etc. have been
produced based on data that are considered reliable, but our company does
not guarantee their accuracy or safety. This material is provided, under theassumption that investors will use it at their discretion and on their own
responsibility for any purpose, so our company will not assume any
responsibility for any outcome.
©2021 KENKO Mayonnaise Co., Ltd.

33