Report for the First Six Months of the 45Th Term from May 1, 2016 to October 31, 2016

Report for the First Six Months of the 45th Term From May 1, 2016 to October 31, 2016

Securities Code: 2910 To Our Shareholders Looking Back at the First Six Months of the 45th Term

Kozo Iwata, Chairman, President and CEO

During the first half of the 45th term, we achieved net sales and going forward, we will work to grasp the changes in the of 24,773 million yen (102.1% year-on-year) and operating consumption structure, and develop a new business plan income of 1,261 million yen (142.0% year-on-year), both of that takes into account not only existing actual stores, but which are record-high numbers. also the establishment of online shops and free standing I would like to offer my sincere thanks for the continued stores. support of our shareholders and customers during this We have expanded our facilities every nine years, first half of the term. Furthermore, I am truly happy that completing the first stage of the Shizuoka factory in 1991, we were able to achieve our goals without confronting the second stage in 2000, and the third stage in 2009. any major setbacks thanks to the earnest efforts of our As a response to possible significant changes in consumer employees. needs with regards to our products, brought about by The summer of 2016 not only brought a record-breaking changes in the consumption structure, with careful succession of excessively hot days, but also saw many planning, we are considering the fourth stage of the producing areas affected by flood damage and a lack of Shizuoka factory as well as expanding facilities at the Kobe sunlight due to heavy rains, including Hokkaido which factory. In an era where the working-age population is experienced major damage from the impact of three steadily declining, we are further automating our factories typhoons, the highest number ever to hit that region in and making greater quality improvements through recorded history. the skillful combination of handmade techniques and In the month of October alone, the impact from typhoons mechanization in order to save energy. affected approximately 15 million yen worth of net sales. After the Great Hanshin-Awaji Earthquake of 1995, we had Furthermore, the upsurge in vegetable prices led to an no option but to halt operations at the Kobe factory and increase of 15 million yen in the prices of raw materials. partially transfer production from Kobe to the Shizuoka However, the said upsurge in vegetable prices also turned factory as our alternative production site. Today, as we out to be the main factor of excellent results in our salad experience frequent earthquakes in various regions, sales, as we were able to stably supply them, which caused including the Kumamoto Earthquakes, we will use our an increase in net sales and contributed to profit. This is past experience in Kobe and proceed with upgrading both thanks to our producers, with whom we share a common our Shizuoka and Kobe factories as a part of our efforts in philosophy and values, and with whom we have built future risk management, to ensure alternate production at relationships of trust throughout the years. I admire their either factory to some extent in the event of such disaster. dedication, and I am grateful for their tremendous efforts The kanji Chinese characters for “meal” can be seen as and cooperation in ensuring the stable and consistent comprising three characters which can be interpreted as supply of secure, safe and high-quality raw materials. “improving people.” In the era we live in today, Japan is In the retail industry, stores located in railway station the first among developed nations to experience a super terminal buildings and in shopping areas within railway aging society with a declining birthrate. We are facing an stations were further developed, and compounds such as era where the relationship between food and health is malls, as well as online retailing, have become widespread. increasingly important to enjoy a healthy and fulfilling As a result, the consumption structure is changing significantly. life in the later years, which entails food education from The Company has also worked to further enhance customer childhood. We will change the dining table, a place where satisfaction. For example, we experimented with a new people gather, to become a place where people appreciate retailing method that sells packed products only, instead of healthy, delicious and enjoyable communication. the conventional method focused on face-to-face selling, in As the Mirai Salad Company, we shall not rest on the shopping areas within metropolitan railway stations such success of our first half business results. We will further as “RF1 in Lumine Shinjuku,” and “RF1 in Tokyo Station focus our energies as well as remain diligent in our City GranSta.” Moreover, in the Kansai area, for stores such management while upholding our values of “health, as “RF1 in Hankyu Department Store Umeda,” we installed security and safety, deliciousness, freshness, service and cases to display packed products at the customers’ eye-level environment.” and within easy reach, in order to save customers the stress We look forward to the continued patronage, support and of queuing and to prevent product imbalance. Next year, cooperation of all our shareholders. January 2017

1 *The numbers for the first six months of the 41st term are our non-consolidated results, Financial Highlights because we did not have consolidated subsidiaries at that time.

We developed our lineup of packaged products so that customers can shop quickly even during the evening rush hour, and continued the introduction of multi-level open cases at POINT stores located in railway station terminal buildings and in shopping areas within railway 1 stations in our aim of creating sales floors that satisfy our customers.

We worked on new product development in order to increase the number of items purchased per customer and creating new demand. In conjunction with this, we made proposals for high POINT value-added products with strictly selected ingredients and cooking methods for the “O-bon” 2 Festival in summer and the consecutive public holidays in autumn when people gather together.

Although the number of customers visiting our stores temporarily decreased due to unseasonable weather, including the series of typhoons that hit during August, our focus on POINT sales of salad products, which are the Company’s forte, combined with upsurge in vegetable 3 prices since September, led to increases in net sales and operating income.

Net income attributable Net sales Operating income to owners of the parent

24,773million yen 1,261million yen 890million yen （Year-on-year increase of 2.1％） (Year-on-year increase of 42.0％） (Year-on-year increase of 63.9％）

(Millions of yen) ■■ First six months ■ Full year (Millions of yen) ■■ First six months ■ Full year (Millions of yen) ■■ First six months ■ Full year 60,000 3,000 2,000 2,548 48,835 48,956 48,877 49,935 1,621 1,500 1,894 1,976 40,000 2,000 1,185 1,641 1,000 881 935 890 23,586 23,983 23,660 24,272 24,773 1,261 20,000 1,000 888 543 616 562 604 500 365 321 297

0 0 0 The 41st The 42nd The 43rd The 44th The 45th The 41st The 42nd The 43rd The 44th The 45th The 41st The 42nd The 43rd The 44th The 45th term term term term term term term term term term term term term term term

Overview of Factors affecting consolidated balance sheets consolidated cash ﬂows Dividends per share

(Millions of yen) (Millions of yen) ■ Increase ■ Decrease (yen) ■■ Interim ■ Year-end 50.0 Total Total liabilities Effect of Total Total liabilities Cash flows from 50 assets assets and net assets and net assets exchange rate 45.0 operating activities change on cash and 30,945 31,104 30,945 31,104 1,565 cash equivalents 40.0 40.0 40 Current liabilities Current liabilities 11,377 (8) 11,701 5,568 5,133 Cash flows Cash flows Current Current from investing 32.0 from financing 27.0 assets assets Non-current activities 30 25.0 Non-current activities 22.0 22.0 (Estimate) 17,096 17,161 liabilities liabilities (707) (525) 438 567 20 Net assets Net assets 16.0 24,937 25,403 (Estimate) Non-current Non-current assets assets Cash and Cash and 10 18.0 18.0 18.0 18.0 13,848 13,942 cash equivalents cash equivalents at beginning of period at end of period 9.0 0 The 44th The end of The 44th The end of The first half of the 45th term The 41st The 42nd The 43rd The 44th The 45th term the second quarter term the second quarter term term term term term of the 45th term of the 45th term The Company executed a two-for-one stock split The end of the second quarter of the 45th term effective May 1, 2016. The dividends figures stated Equity ratio: 81.7% for the periods prior to the 44th term are the actual Net assets per share: 956.44 yen amounts before the stock split.

2 Net Sales by Brand for the First Six Months of the 45th Term (Consolidated)

● We proposed healthy diets and healthy Net eating habits centered on salad, with sales16,677million yen the theme of food and health, by (Year-on-year decrease of 0.2％) distributing leaflets educating consumers about food combinations and the value of seasonal ingredients, as well as widely communicating Composition ratio of net sales health-related information. 67.3% ● At the time when vegetable prices RF1 soared, our 3 0-ingredient green salad 167 stores and other mainstay products were popular among many of our customers. Hokkaido 30-ingredient green salad

Net ● We rolled out the Itohan and Yugo sales 3,267million yen products in addition to our (Year-on-year increase of 20.4％) mainstay RF1 salad products and aggressively conducted sales promotions offering combinations Composition of salads and entrées, thereby ratio of net sales creating sales floors that match our Green gourmet 13.2% customers’ needs. 49 stores Avocado and Okinawa shima tofu Japanese-style salad

Net ● We developed ideas for meals incorporating a sales million yen modern version of “one soup and three 1,838 dishes” in the form of “one soup, two dishes (Year-on-year decrease of 5.8％) plus Japanese-style salad,” enabling customers to appreciate seasonal ingredients, the bounty of the sea and the fruits of the mountains. Composition Based on these ideas, we bolstered sales of Itohan ratio of net sales products using seasonal ingredients and promoted both set meals with the % Japanese salad Itohan 7.4 recommended daily intake of vegetables and 32 stores low-calorie bento box lunches with the theme Assortment of one day’s worth of of “further raising health consciousness.” nourishing vegetables

Net ● As well as continuing sales of sales1,402million yen croquettes with the theme of food and (Year-on-year increase of 3.7％) health, we also rolled out croquettes using seasonal ingredients such as Hokkaido corn and “Naruto kintoki” (a sweet potato grown in sandy soil). In Composition ratio of net sales addition, we also carried out sales promotions for new potatoes, mainly Kobe Croquettes 5.7% through the distribution of leaflets 38 stores about the Danshaku potatoes grown in Naruto Kintoki sweet potato and Tannocho, Kitami City, Hokkaido. mushroom croquette

Net ● With the theme of “KENKO service sales 802million yen and the vegetable lifestyle,” we (Year-on-year increase of 0.7％) worked to enhance our juice products, which harness the power of vegetables by presenting them Composition as an option for supplementing the ratio of net sales nutritional deficiency that tends to VEGETERIA 3.2% occur as the season changes from 26 stores summer to autumn. Healthy 30-ingredient greens

Net ● With the theme of “bringing the sales 595million yen energy of Asia to meals,” we continued (Year-on-year increase of 11.6％) working on dissemination of information on Asian cuisine and its health benefits, including menus Composition evoking the energy and vitality of Asia. Yugo ratio of net sales Among these, sales of products ASIAN SALAD Yugo 2.4% containing ingredients and flavors 11 stores reminiscent of Southeast Asia, such as coriander, ong choy, and tandoori Three-herb aromatic Thai salad chicken, performed well. 3 Net Sales by Brand for the First Six Months of the 45th Term Topics Our strong “bonds and relationships of trust” with producers 〜Riding out the Hokkaido typhoons〜

In August 2016, three typhoons struck Hokkaido successively for the first time in recorded history, with the fourth almost in plain sight. There are a large number of producers in Hokkaido who regularly trade with us, and among those are the potato farmers of Kitami City, Hokkaido who have been our partners since 1990. Rock Field has endeavored to establish communication through informal discussions and networking events with producers and has also implemented measures to ensure the understanding and sharing of the Company’s philosophy and values in order for them to produce secure, safe, high-quality and delicious Flooded Danshaku potato fields potatoes. The producers under our contract, with whom we have built relationships of trust over the years, and who regularly produce delicious potatoes for us, have suffered from damages caused by the consecutive typhoons, such as the flooding of fields and the collapse of vinyl greenhouses.

Our Chairman, Kozo Iwata, who was concerned about the damages since there Collapsed vinyl greenhouses were no prior cases of such typhoons striking Hokkaido, took to himself to contact our producers and visit the typhoon- devastated areas, witnessing the casualties arising from the disaster. He also promised to give his support going forward. Although there are cases of flooding, leading to delayed harvests, as well as road closures and other inconveniences, we were able to secure delicious new potatoes this year as well, thanks to our producers. Inspecting the environment We will further strengthen the “bonds and relationships of trust” with our producers, uniting to support each other through difficult times.

Asian salads setting today’s trend

Coriander was widely popular in 2016. Our brand, “ASIAN SALAD Yugo,” has already been providing coriander a few years earlier as a popular ingredient in our salads, truly standing as a trendsetter.

Steamed chicken and Fresh spring rolls with coriander coriander salad 100g ¥562(incl. tax) ¥648 per piece(incl. tax) One dish to provide both the unique taste of coriander This delectable dish uses coriander mixed heartily with and the refreshing fragrance of dill. The salad is further various ingredients such as jasmine rice, cucumber and accentuated by the flavor of the moist steamed chicken chicken. Best enjoyed with a dash of Thai fish sauce. and the aroma of cashew nuts.

4 Special Feature Our philosophy and values as embodied Cultivating crops while experiencing the seasons At the Shizuoka factory, we think that an environment where people can experience the seasons is important for personal growth. To know what kinds of produce are best for each season, as well as respect nature and show our gratitude by consuming Spring in the “Shizuoka factory” the produce, are the things we try to promote. The child day care center connected to the factory is where we strive daily to promote “food education,” the concept of cultivating the energy of life through food.

Materializing ideas Because Rock Field is involved in bringing food with its taste enriched by raw materials In 1991, the Shizuoka factory was constructed on a vast plot cultivated in lush nature, we value the opportunities provided through our business activities of vacant land. In its premises are 240 jirokaki persimmon trees in which we can be at one with nature and learn from it. planted to symbolize the completion of the construction, nurtured in the safe hands of our employees. There are over 1,100 plants at the factory, including jirokaki Summer We want to make the factory a place not only for manufacturing persimmons, Japanese zelkovas, and camphor trees. products, but also for experiencing important things such as An estimated 36% of the total factory plot is afforested, personal health, the gifts of Mother Nature, and the joy of eating. counting shrubs such as rosemary and mountain phlox.

With this in mind, the factory, rooted in the region, has grown These were taken care of by our employees themselves. into a place for relaxation, blessed with beautiful water, teeming Through this, and other activities such as planting with life, and covered by lush greenery. vegetable seeds, nurturing, harvesting and eating The trees and shrubs in the factory, such as the herb garden that them with children at the child day care center, not to luxuriously decorates the entrance, are meticulously cared for by our mention our business activities that take the region and Autumn employees who cherish nature and all living things. environment into consideration, we will continue to Our slow but steady efforts came to fruition in 2010, when the factory contribute to the realization of a sustainable society, with received the “Green Plant Award from Japan’s Minister of Economy, an appreciation for the natural environment in mind. Trade and Industry.” The ideal factory we seek to create is a place that is friendly to both nature and the people who work there. In an environment such as this, we are learning so much every day while respecting nature, as well as experiencing for ourselves the changing of seasons. Winter

Mills and a biotope surrounded by water Three white windmills stand tall at the factory, powered by the refreshing breeze. The energy produced by the wind is used at the water purification facility at the Shizuoka factory. After being used to wash the vegetables, the water is then purified there by utilizing the properties of microbes, making clean, clear water. For our shareholders The water from the water purification facility flows Event schedule back into the biotope surrounding the premises, once 1 0：0 0 “A Visit to the Shizuoka Factory” Assembly at Hamamatsu more returning to the neighboring Tenryugawa River Station; bus sets off in a near-natural state. Every April and October we hold a complimentary event for our 1 1：0 0 shareholders, inviting them to visit our factories and offices. On October Arrival at Shizuoka factory 22, 2016, we hosted our 13th visit to the Shizuoka factory. 1 1：1 5 Introduction of the Shipping cartons from farm to factory An astounding turnout of 573 members of our shareholders applied for 60 Company by an officer spots, in which 52 lucky shareholders from all over Japan were selected at Introduction of factory Two types of containers are used to transport produce from random to join this event. premises through video feed the farms to the factory: metal containers for potatoes, and 1 1：4 5 plastic containers known as “shipping cartons.” Factory tour These reusable containers, brought back and forth 1 2：4 0 Sampling of the Company’s between the farms and the factory, save up to 101 tons products; socializing of forest resources per year. 1 4：1 5 Furthermore, we recycle 100% of the organic waste from End of event; bus returns to Hamamatsu Station preparing vegetables. An estimated 70% is used as fertilizer for the ground, and the rest given to livestock as fodder.

5 6 Topics We co-sponsored “Dance! KOBE Fountain of Light” with a Kobe Croquettes stand.

Kobe Luminarie was first held in 1 9 9 5, the year of the Great Hanshin-Awaji Earthquake, partly in memory of the victims of the earthquake and partly to express the dreams and hopes for the reconstruction and restoration of the city. The event, which symbolizes the aspirations of the city and its citizens who will continue to pass on the memory of the disaster, will be held for the 22nd time this year. On behalf of the many citizens who wish to continue holding Kobe Luminarie, and with the aim of supporting this event, thirteen food and beverage companies representing the local Kobe and Hyogo area created a co- sponsorship project entitled “Dance! KOBE Fountain of Light.” As part of this, Rock Field has opened a Kobe Croquettes stand for the past two years. The event, which features specialty foods unique to Kobe and an impressive stage program that includes jazz and flute performances, was a great success day after day. Our store was also well patronized and enabled the employees to share the joy of making even a small contribution to the development of the city of Kobe.

Stock Information (as of October 31, 2016) Information for Shareholders

Total number of shares Fiscal year From May 1 of each year through authorized for issuance 40,000,000 shares ■Distribution of Shareholders by Type April 30 of the following year Total number of Ordinary general July Report for the First Six Months issued shares 26,788,748 shares meeting of General corporations Foreign Number of shares shareholders 127 0.86％ corporations, etc. of the 45th Term constituting one share unit 100 shares 126 0.86％ Record date of Year-end Dividends: April 30 Number of shareholders 14,684 Securities ﬁrms dividends from Interim Dividends: October 31 Treasury stock surplus From May 1, 2016 to October 31, 2016 * By resolution of the Board of Directors held on 26 0.18％ April 14, 2016, we conducted a two-for-one split of Number of 1 0.01％ Stock transfer agent Mitsubishi UFJ Trust and Banking common shares effective on May 1, 2016. Financial Shareholders Account management Corporation As a result, the total number of issued shares is 26,788,748. Individuals institutions Total: 14,684 institution for special The total number of shares authorized for issuance and and others accounts the amount of capital stock have not changed. 32 0.21％ 14,372 Administrative zip code: 541-8502 ■Major Shareholders 97.88％ office of stock 3-6-3, Fushimimachi, Chuo-ku, transfer agent Osaka-shi Number of Name shares Mitsubishi UFJ Trust and Banking Foreign corporations, etc. Corporation IWATA Co., Ltd. 2,300,000 Treasury stock Osaka Securities Agent Department Meiji Yasuda Life Insurance 3,403,756 shares 228,628 shares 1,312,600 Telephone (Toll-free phone): Company 12.71％ 0.85％ 0120-094-777 Rock Field Trading-Partner 1,264,580 General Stock listings Tokyo Stock Exchange Shareholding Association Individuals corporations and others Public notices Public notices shall be made The Shikoku Bank, Ltd. 1,242,920 4,885,288 Number of 11,084,327 electronically. (URL: http://www. Kozo Iwata 784,200 shares shares owned shares rockfield.co.jp/) If electronic notice Total: Rock Field Employee 18.24％ 41.38％ cannot be made due to accidents or 576,294 26,788,748 Shareholding Association other unavoidable reasons, the Securities shares Financial notice shall appear in The Nikkei. Japan Trustee Services 508,100 ﬁrms institutions Bank, Ltd. (Trust account) 163,705 7,023,044 Please contact your securities firm for such inquiries as changes The Master Trust Bank of shares shares of name or address, procedures relating to requests to sell 482,400 or additionally purchase fractional shares, and requests for Japan, Ltd. (Trust account) ％％ 0.61 26.21 documentation required for procedures. Please contact the Mitsubishi UFJ Lease & 482,064 stock transfer agent (concurrently serving as the account Finance Company Limited management institution for special accounts) listed above, for The Minato Bank, Ltd. 413,120 inquiries relating to shares managed in a special account, etc.

Corporate Information (as of October 31, 2016) ■Corporate Profile ■Directors and Audit & Supervisory Board Members Company name Rock Field Co., Ltd. Chairman, President and CEO Kozo Iwata Established June 8, 1972 Senior Managing Director Takashi Furutsuka Kobe Head Office zip code: 658-0024 Senior Managing Director Toshihiro Hosomi 15-2 Uozakihamamachi, Higashinada-ku, Kobe-shi, Hyogo Prefecture, Japan Director Osamu Izawa Phone number: +81-78-435-2800 (Representative) Outside Director Atsushi Horiba Fax number: +81-78-435-2805 Outside Director Chiyono Terada Capital stock 5,544 million yen Audit & Supervisory Board Member (Full-time) Goro Oka Number of employees 1,469 Minoru Okuda Subsidiaries Kobe Delicatessen Co., Ltd. Outside Audit & Supervisory Board Member Securities Code: 2910 Iwata (Shanghai) Restaurant Management Co., Ltd. Outside Audit & Supervisory Board Member Takao Ishimura