Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2020
(Based on Japanese GAAP)
November 13, 2020
Company name:KENKO Mayonnaise Co., Ltd.

Stock exchange listing: Tokyo
Stock code:

2915

Representative:

President and Representative Director

Inquiries:

URL

https://www.kenkomayo.co.jp
Takashi Sumii

Senior Managing Director and Chief

Yoichi Terajima

Executive Officer

Scheduled date to file Quarterly Securities Report:

TEL

03-5941-7682

November 13, 2020

Scheduled date to commence dividend payments:

December 2, 2020

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:No(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2020
Six months ended September 30, 2019

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
33,533 (11.2)
530 (64.4)
623 (60.8)
422 (61.8)
37,766
1.0
1,490
2.4
1,590
5.2
1,104
22.2
Earnings per share

Diluted earnings per share

Yen
25.62
67.03

Six months ended September 30, 2020
Six months ended September 30, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
62,087
63,767

As of September 30, 2020
As of March 31, 2020

Equity ratio

Millions of yen
34,467
34,103%55.5
53.5

2. Cash dividends
Annual dividends per share

Year ended March 31, 2020
Year ending March 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
15.00
8.00

Yen–

Yen
16.00

Yen
31.00

–

12.00

20.00

Year ending March 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)Net sales
Full year

Millions of yen
68,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
(8.7)
2,100 (27.6)
2,040 (32.1)
1,320 (35.9)
80.12

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No

Changes in accounting policies due to other reasons:No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2020

16,476,000 shares As of March 31, 2020

16,476,000 shares

Number of treasury shares at the end of the period
As of September 30, 2020

578 shares As of March 31, 2020

578 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

16,475,422 shares Six months ended September 30, 2019

216,475,422 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

AssetsCurrent assets
Cash and deposits

10,747

10,827

Notes and accounts receivable - trade

11,39911,020

Merchandise and finished goods

2,060

1,640

Work in process914

Raw materials and supplies

958

902

Other

445

534

Allowance for doubtful accounts

(2)

(2)

25,617

24,937

Buildings and structures, net

12,601

12,328

Machinery, equipment and vehicles, net

12,716

11,775

Land

5,903

6,019

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

Construction in progress

126

7

Other, net

478

540

31,82630,672

169

154

Investment securities

4,666

4,936

Deferred tax assets

308

224

1,205

1,194

(26)(32)

Total property, plant and equipment
Intangible assets
Investments and other assets

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

6,153

6,323

38,14937,15063,76762,087

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating
Current portion of long-term borrowings

7,938

7,675

715

707

1,513

1,493

Income taxes payable

439

273

Other provisions

470

478

Other4,679

4,135

Total current liabilities

15,757

14,765

8,571

7,893

382

384

394

407

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other

4,558

4,168

Total non-current liabilities

13,907

12,85429,664

27,619

5,424

5,424

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

5,691

5,691

Retained earnings

22,19022,349(1)(1)

33,30533,463

Valuation difference on available-for-sale securities

899

1,171

Foreign currency translation adjustment

(44)

(121)

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Remeasurements of defined benefit plans

(56)

(46)

Total accumulated other comprehensive income

797

1,004

34,103

34,467

63,76762,087

Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Net sales37,766

33,533

Cost of sales

28,735

26,064Gross profit

9,030

7,468

Selling, general and administrative expenses

7,539

6,937

Operating profit

1,490

530

Share of profit of entities accounted for using equity method

83

25Interest and dividend income

20

21

Subsidies for employment adjustment–43

Non-operating income

Other

52

60

Total non-operating income

156

150

52

43

Other

4

13

Total non-operating expenses

56

57

1,590

623

Gain on sales of investment securities–

7

Subsidy income

227

Total extraordinary income

22

15

Impairment loss

1–

Loss on disaster0–

Loss on retirement of non-current assets

03

Loss on sales of investment securities–2Other22

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses
Profit before income taxes
Income taxes

58

1,607

630

502

208

Profit1,104422

Profit attributable to owners of parent

1,1044225

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

ProfitSix months ended

Six months ended

September 30, 2019

September 30, 2020

1,104422

Valuation difference on available-for-sale securities

(96)

272

Remeasurements of defined benefit plans, net of tax

910(52)

(76)

(138)

206

965

628

965

628

Other comprehensive income

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6

Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

September 30, 2019

September 30, 2020

Cash flows from operating activities
Profit before income taxes

1,607

630

Depreciation

1,476

1,498

Increase (decrease) in provisions

113

14

Increase (decrease) in retirement benefit liability(10)

16(103)

2

Interest and dividend income

(20)

(21)

Interest expenses

52

43

Subsidies for employment adjustment

–

(43)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

Subsidy income

(316)

(7)

Decrease (increase) in trade receivables

1,007

378

Decrease (increase) in inventories

146

471

Increase (decrease) in trade payables(1,439)(271)

Increase (decrease) in accounts payable - other(781)(359)

Other, net

826

224

Subtotal

2,558

2,576

Interest and dividends received

2099

Interest paid

(53)

(43)

subsidies received,etc

316

50

Income taxes paid

(527)

(362)

Net cash provided by (used in) operating activities

2,315

2,320

(1,556)(602)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets

(33)

(11)

Purchase of investment securities

(11)

(12)

–12

Proceeds from sales of investment securities
Other, net(0)22(1,602)(591)

Proceeds from long-term borrowings–70

Repayments of long-term borrowings

(873)

(768)

Dividends paid

(246)

(262)

Repayments of installment payables

(734)

(684)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Other, net
Net cash provided by (used in) financing activities

(4)

(3)

(1,858)(1,649)Net increase (decrease) in cash and cash equivalents(1,145)79

Cash and cash equivalents at beginning of period

10,927

10,747

Cash and cash equivalents at end of period

9,782

10,827

7