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 Year Ended March 31, 2021
(Based on Japanese GAAP)May 14, 2021
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

General Manager

Takashi Sumii
Yoshitaka Utaida

Corporate Planning Division

Scheduled date of ordinary general meeting of shareholders:June 24, 2021

Scheduled date to file Securities Report:

June 24, 2021

Scheduled date to commence dividend payments:

June 25, 2021

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:

Yes

TEL

03-5941-7682(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating resultsPercentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%(8.0)
1,976(31.9)
2,050(31.7)
1,458(29.2)
0.7
2,900(6.9)
3,003(4.5)
2,058(10.4)Net salesYear ended March 31, 2021
Year ended March 31, 2020

Millions of yen
68,502
74,480

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen%%%–
4.2
3.3
2.9–
6.1
4.5
3.9

Diluted earnings pershare

Earnings per share
Yen
88.51
124.94

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
62,32063,767

Millions of yen
35,577
34,103

Cash flows fromoperating activities
Millions of yen
5,203
5,575

Cash flows frominvesting activities
Millions of yen(588)(2,098)

Net assets per share
%
57.1
53.5

Yen
2,159.46
2,069.93(3) Consolidated cash flows

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

Cash flows fromCash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(2,976)
12,385(3,657)
10,747

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)

Total cash
Dividend payout
dividends (Total) ratio (Consolidated)

Total

Ratio of dividends
to net assets(Consolidated)

YenYen

Yen

Yen

Yen

Millions of yen%%

––

15.00
8.00

––

16.0012.00

31.00
20.00

510329

24.8
22.6

1.5
0.9

–

7.00

–8.00

15.00

123.5

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
73,200Percentages 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
6.9
1,430 (27.6)
1,500 (26.9)
1,050 (28.0)
63.73

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:

NoRestatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

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 March 31, 2021

578 shares As of March 31, 2020

578 shares

Average number of shares during the period
Year ended March 31, 2021

16,475,422 shares Year ended March 31, 20202

16,475,422 shares

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

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

10,747

12,385Notes and accounts receivable - trade

11,39911,004Merchandise and finished goods

2,060

1,814

Work in process98

Raw materials and supplies

958

812

Accounts receivable - other127

33

Other

317

259

Allowance for doubtful accounts

(2)

(2)

25,61726,317

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

21,047

19,769

Accumulated depreciation(8,445)(7,736)

Buildings and structures, net

12,601

12,033

Machinery, equipment and vehicles

26,54624,828

Accumulated depreciation(13,830)(13,899)

Machinery, equipment and vehicles, net

12,716

10,928Tools, furniture and fixtures

1,733

1,719

(1,316)(1,308)

416

411

5,903

6,021

73

57

(12)

(3)

Leased assets, net

6153

Construction in progress

126

2

31,82629,451

169

166

Investment securities

4,666

5,077

Retirement benefit asset

151

243

Deferred tax assets

308

190

Guarantee deposits

355

241

Insurance funds

560

564

Other

138

99

Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

Total property, plant and equipmentIntangible assets
Investments and other assets

Allowance for doubtful accounts

(26)

(31)

Total investments and other assets

6,153

6,385

38,14936,003

63,76762,320Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Accounts payable - trade

7,938

7,753

715

673

Current portion of long-term borrowings

1,513

1,499

Accounts payable - other

3,605

2,866

Income taxes payable

439

305

Provision for bonuses

434

408

Provision for bonuses for directors (and other officers)

1615

Provision for sales rebates

1817

Electronically recorded obligations - operating

Electronically recorded obligations - non-operating

1

6

Other

1,072

1,458

Total current liabilities

15,757

15,004Long-term borrowings

8,571

7,141

Deferred tax liabilities

41

86

382

395

394

398

Non-current liabilities

Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Long-term accounts payable - other

4,425

3,519

Asset retirement obligations

–119

Other

90

77

Total non-current liabilities

13,90711,738

29,664

26,742

Share capital

5,424

5,424

Capital surplus

5,691

5,691

Retained earnings

22,19023,253

Total liabilities
Net assets
Shareholders' equity

Treasury shares

(1)

(1)

33,30534,367

Valuation difference on available-for-sale securities

899

1,268

Foreign currency translation adjustment

(44)

(22)

Remeasurements of defined benefit plans

(56)

(35)

Total shareholders' equity
Accumulated other comprehensive income

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4797

1,210

34,10335,577

63,76762,320Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Net sales

74,48068,502

Cost of sales

56,63552,643Gross profit

17,84415,859Selling, general and administrative expenses

14,944

13,882

Operating profit

2,900

1,976

Share of profit of entities accounted for using equity method

67–

Rental income

1515

Interest and dividend income

4035

Subsidies for employment adjustment–

47

Other90106Total non-operating income

213

204

100

83

Share of loss of entities accounted for using equity method–

22

Foreign exchange losses

1–

Other

823

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses

110

130

3,003

2,050

–

7

Subsidy income

159

108

Other

10–

Total extraordinary income

169

115

Impairment losses

40

Loss on disaster2–

Loss on sale of investment securities–

2

Loss on valuation of investment securities–

14

Loss on retirement of non-current assets

36

Loss on cancellation of rental contracts53–

Other

33

Total extraordinary losses

6826

3,104

2,140

Income taxes - current

958

658

Income taxes - deferred88

23

Ordinary profit
Extraordinary income
Gain on sale of investment securities

Extraordinary losses

Profit before income taxes

Total income taxes

1,046

681

Profit

2,058

1,458

Profit attributable to owners of parent

2,058

1,458

5

Consolidated statements of comprehensive income(Millions of yen)

ProfitFiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
2,058

1,458

Valuation difference on available-for-sale securities(328)369

Remeasurements of defined benefit plans, net of tax(2)

20(30)

22(361)

412

1,696

1,870

1,696

1,870

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 changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

5,424

Capital surplus

Retained earnings

5,691

20,626

Treasury shares(1)

Total shareholders'equity31,740Changes during period
Dividends of surplus
Profit attributable toowners of parent

(494)

(494)

2,058

2,058

Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during

–

–

1,564

–

1,564

5,424

5,691

22,190(1)

33,305

periodBalance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofperiod

1,227

Foreign currency

Remeasurements

translationof defined benefitadjustment

plans(14)Total accumulated
Total net assets

othercomprehensiveincome

(54)

1,159

32,900Changes during period
Dividends of surplus(494)

Profit attributable to2,058

owners of parent
Purchase of treasury–shares
Net changes in items
other than shareholders'

(328)

(30)

(2)

(361)

(361)

(328)

(30)

(2)

(361)

1,202

899

(44)

(56)

797

34,103equityTotal changes during
periodBalance at end of period

7Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod5,424

Capital surplus

Retained earnings

5,691

22,190Treasury shares(1)

Total shareholders'equity33,305

Changes during period
Dividends of surplus
Profit attributable toowners of parent

(395)

(395)

1,458

1,458

Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during

––

1,062

–

1,062

5,424

5,691

23,253(1)

34,367

periodBalance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofperiod

899

Foreign currencyRemeasurements

translationof defined benefit

adjustment

plans
(44)

Total accumulated
Total net assets

othercomprehensive
income(56)797

34,103

Changes during period
Dividends of surplus(395)

Profit attributable to1,458

owners of parent
Purchase of treasury–shares
Net changes in items
other than shareholders'

369

2220

412

412

369

2220412

1,474

1,268

(22)

(35)

1,210

35,577

equityTotal changes during
periodBalance at end of period

8Consolidated statements of cash flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Cash flows from operating activities
Profit before income taxes

3,104

2,140

Depreciation

2,966

2,952

40

Loss on tax purpose reduction entry of non-current assets

851–

Increase (decrease) in allowance for doubtful accounts(3)

5

Increase (decrease) in provision for bonuses

(0)

(26)

(0)

(0)

(15)

11(85)

12

Interest and dividend income

(40)

(35)

Interest expenses

10083

Impairment losses

Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)

Loss on retirement of non-current assets

36

Subsidy income(1,020)(108)

Decrease (increase) in trade receivables

1,999

394

Decrease (increase) in inventories

(79)

392

Increase (decrease) in trade payables(1,897)(227)

Decrease (increase) in prepaid expenses

(171)

12

Increase (decrease) in accounts payable - other(655)(404)

Increase (decrease) in accrued consumption taxes

535

537

Increase (decrease) in accrued expenses(85)(29)

Decrease (increase) in other assets

344

55

Increase (decrease) in other liabilities

(67)

59

Other, net

(67)

22

Subtotal

5,718

5,853

40117

Interest and dividends received
Interest paid

(100)

(83)

Subsidies received

1,020

108

Income taxes paid

(1,103)(792)

Net cash provided by (used in) operating activities

5,575

5,203

Cash flows from investing activities
Purchase of property, plant and equipment(2,017)(657)

Purchase of intangible assets

(51)

(48)

Purchase of investment securities

(22)

(22)

Proceeds from sale of investment securities–26

Other, net

(6)

113

(2,098)(588)

Net cash provided by (used in) investing activities

9

(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

Cash flows from financing activities
Proceeds from long-term borrowings–70

Repayments of long-term borrowings(1,696)(1,513)

Dividends paid
Repayments of installment payables
Other, net
Net cash provided by (used in) financing activities

(494)

(394)

(1,459)(1,130)(6)(7)(3,657)(2,976)

Net increase (decrease) in cash and cash equivalents

(179)

1,638

Cash and cash equivalents at beginning of period

10,927

10,747

Cash and cash equivalents at end of period

10,747

12,38510