Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Nine Months Ended July 31, 2024
(Under Japanese GAAP)
September 11, 2024
Company name: Kobe Bussan Co., Ltd.
Listing:
Prime Market of Tokyo Stock Exchange
Securities code:
3038
URL:
https://www.kobebussan.co.jp/english/
Representative:
Hirokazu Numata, President and Representative Director
Contact:
Masahiro Sakamoto, Manager, Corporate Planning Department
Phone:+81-79-458-0339
Scheduled date to commence payment of dividends:–
Preparation of supplementary material on quarterly financial results:
Yes (https://www.kobebussan.co.jp/english/ir/news.php)
Holding of quarterly financial results briefing:
Yes (for institutional investors and securities analysts)(Amounts less than one million yen have been omitted.)1.

Consolidated financial results for the nine months ended July 31, 2024 (from November 1, 2023 to July 31, 2024)(1) Consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
July 31, 2024
377,283
11.4
26,64014.4
21,980(3.1)
14,847(4.8)
July 31, 2023
338,767
12.9
23,278
6.6
22,694(4.0)
15,590(2.1)
Note: Comprehensive income
For the nine months ended July 31, 2024: ¥15,200 million [2.0%]
For the nine months ended July 31, 2023: ¥14,902 million [(10.5)%]
Basic earnings
per share
Nine months ended
July 31, 2024
July 31, 2023

Yen
67.24
71.04

Diluted earnings
per share
Yen
66.80
70.16

(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
July 31, 2024
224,040
125,927
October 31, 2023
211,891
114,451
Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of July 31, 2024:¥122,610 million
As of October 31, 2023: ¥111,691 million
2.

Equity ratio
%
54.7
52.7

Net assets per shareYen
554.98506.23

Cash Dividends

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Fiscal year
Yen
Yen
Yen
Ended October 31, 2023
0.00
–
22.00
Ending October 31, 2024
0.00
Ending October 31, 2024 (Forecast)–
23.00
Note: Revisions to cash dividend forecast published most recently: NoneFirst
quarter-end
Yen
–
–

Total
Yen
22.00
23.00

Consolidated financial forecast for the fiscal year ending October 31, 2024 (from November 1, 2023 to October 31, 2024)(Percentage indicates year-on-year changes.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions
Millions
Millions
MillionsYenof yen%of yen%of yen%of yen%Fiscal year
498,000
7.9
31,0000.9
33,00010.1
21,5004.6
97.44
Note: Revisions to earnings forecast published most recently: None3.

[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): None
(2) Application of accounting methods used specifically for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements(i) Changes in accounting policies due to application of new or revised accounting standards: None(ii) Changes in accounting policies due to reasons other than above (i):None(iii) Changes in accounting estimates:None(iv) Restatements of prior period financial statements:
None(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury shares)
As of July 31, 2024:
273,600,000 shares
As of October 31, 2023:
273,600,000 shares(ii) Number of shares of treasury shares at the end of the period
As of July 31, 2024:
52,671,455 shares
As of October 31, 2023:
52,968,055 shares(iii) Average number of shares of common shares outstanding during the period
Nine months ended July 31, 2024:
220,800,697 shares
Nine months ended July 31, 2023:
219,465,181 shares
Note:

The number of shares of Kobe Bussan held by Custody Bank of Japan, Ltd. (the “Trust Account”) as trust property fora Board Benefit Trust was included in the number of shares of treasury shares at the end of the period (275,200 shares
as of July 31, 2024 and 275,200 shares as of October 31, 2023). Also, the number of shares of Kobe Bussan held by theTrust Account was included in the number of shares of treasury shares to be deducted from the calculation of theaverage number of shares of common shares outstanding during the period (275,200 shares for the nine months ended
July 31, 2024 and 275,200 shares for the nine months ended July 31, 2023).

* Review procedures for the attached quarterly financial statements by certified public accountants or an audit firm: None
* Proper use of earning forecast, and other special notes
The forward-looking statements including earnings forecast contained in this document are based on information currently available
to us and certain assumptions that we believe are reasonable. Accordingly, actual results may differ significantly from the results
anticipated in these forward-looking statements due to a variety of factors. For more information on the assumptions and disclaimers
with respect to earnings and other forecasts, please refer to “1. Overview of Financial Performance (3) Overview of forward-looking
statements including consolidated financial forecast” on page 3 of the Attached Materials.

2

Contents of Attached Materials
1. Overview of Financial Performance····································································································· P. 2
(1) Overview of quarterly consolidated operating results ··············································································· P. 2
(2) Overview of quarterly consolidated financial position ·············································································· P. 3
(3) Overview of forward-looking statements including consolidated financial forecast ············································ P. 3
2. Quarterly Consolidated Financial Statements and Major Notes ······································································· P. 4(1) Quarterly consolidated balance sheets ································································································· P. 4(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income ··········· P. 6
Quarterly consolidated statements of income ······················································································ P. 6
Quarterly consolidated statements of comprehensive income ··································································· P. 7
(3) Notes to quarterly consolidated financial statements ················································································ P. 8
(Going concern assumption) ·········································································································· P. 8
(Significant changes in shareholders’ equity) ······················································································· P. 8
(Changes in accounting policies) ····································································································· P. 8
(Quarterly consolidated statements of cash flows) ················································································· P. 8
(Segment information) ················································································································· P. 9

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1. Overview of Financial Performance(1) Overview of quarterly consolidated operating results
During the nine months ended July 31, 2024 (from November 1, 2023 to July 31, 2024) (hereinafter the “period underreview”), Japan’s economy was on a moderate recovery trend, with the normalization of its economic activities leading toincreased traffic of people, recovery in the demand of inbound tourists, and the improvement in income environments.
Nevertheless, the economic outlook has still remained unclear due to the factors such as the prolonged Russia-Ukraine conflict,the intensified situation in the Middle East, precarious fluctuations in foreign exchange rates, and soaring energy costs.
Players in the food retail industry have continued to face severe circumstances, including a rise in a savings-oriented attitude of
consumers caused by the galloping inflations and an increase in various costs.
Under such circumstances, in line with the Group’s goal of further strengthening “Integrated Food Production & Distribution
Operations,” the Kobe Bussan Group has enhanced its competitiveness through increased production capacity and proactive
product development. Also, we have been engaged in a business that is attentive and responsive to customers’ needs byenhancing our strength to provide them with high-quality and attractive products at best prices.
Consequently, in terms of operating results for the period under review, we reported net sales of ¥377,283 million (up 11.4%
year on year), operating profit of ¥26,640 million (up 14.4%), ordinary profit of ¥21,980 million (down 3.1%), and profit
attributable to owners of parent of ¥14,847 million (down 4.8%).
The operating results by business segment are as follows:(i) Gyomu Super BusinessThis business segment covers Gyomu Super stores, which mainly sell products at best prices including those originallyproduced by our group’s domestic plants or those with attractive private labels directly imported by ourselves under theconcept of providing authentic food products from around the world. In the period under review, Gyomu Super stores have
expanded nationwide with 1,071 stores as a result of a net increase of 23 stores after opening 41 stores and closing 18.
The breakdown of new store openings was 28 stores in directly managed areas and 13 stores in indirectly managed areas. We
proceeded smoothly with the store opening plan for the current fiscal year, working on new store openings in all locations inJapan with a particular focus on the Kyushu area.
In terms of operating results, we have continued expanding business performance. This is because we have overcome a rise inpurchase costs caused by the sharp fluctuations in foreign exchange rates and price hikes through a successfully implemented
pricing strategy as well as a great deal of media coverage of our private label products, which represent Gyomu Super’s
attractiveness.
Consequently, net sales of the Gyomu Super Business for the period under review stood at ¥363,723 million (up 10.9% year onyear).
(ii) Restaurant & Delicatessen BusinessThis business segment covers Kobe Cook World Buffet, one of the largest buffet-style restaurant chains in Japan; Premium
Karubi, a served a-la-carte buffet style BBQ restaurant chain where customers enjoy the best selected premium meats and inhouse made desserts; and Chisouna, a delicatessen shop chain under the concept of offering everyday dining with a focus onfoods made in-house and available at affordable prices.
In the period under review, Kobe Cook World Buffet opened one restaurant and closed none, resulting in 15 restaurants
nationwide. The sales recovered to the level before the COVID-19 pandemic backed by high demand from families and moretourists from abroad in addition to our efforts to improve customer satisfaction through measures such as menu changes.
Premium Karubi opened two restaurants and closed none, resulting in 22 restaurants nationwide. The number of customer
visits increased thanks to the increased media coverage. Chisouna opened 15 shops and closed 3, resulting in 126 shops
nationwide. While more customers were attracted by a variety of foods relevant to their needs and an introduction of newdishes, such an increase in the number of shops helped boost net sales.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥10,093 million (up26.3% year on year).

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(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. Currently, we
operate 19 solar power plants collectively generating approximately 81.0 MW and one woody biomass power plant generating
approximately 6.2 MW, all of which are generating electricity steadily. We continue supplying safe and environmentallyfriendly electricity using renewable energy.
Consequently, net sales of the Eco Renewable Energy Business for the period under review stood at ¥3,431 million (up 28.3%
year on year).

(2) Overview of quarterly consolidated financial position(Assets)
Total assets as of July 31, 2024 increased by ¥12,149 million from the end of the previous fiscal year to ¥224,040 million. Thiswas mainly due to an increase in current assets of ¥10,704 million.
This increase was mostly attributable to increases in cash and deposits of ¥5,096 million and in merchandise and finishedgoods of ¥4,057 million.
(Liabilities)
Total liabilities as of July 31, 2024 increased by ¥673 million from the end of the previous fiscal year to ¥98,113 million. Thiswas mainly due to an increase in current liabilities of ¥3,455 million, partly offset by a decrease in non-current liabilities of¥2,781 million.
The increase in current liabilities was mainly attributable to an increase in short-term borrowings of ¥4,787 million, partly
offset by a decrease in income taxes payable of ¥2,324 million.
The decrease in non-current liabilities was mainly attributable to a decrease in long-term borrowings of ¥6,086 million, partly
offset by an increase in other (non-current liabilities) of ¥2,783 million(Net assets)
Total net assets as of July 31, 2024 increased by ¥11,475 million from the end of the previous fiscal year to ¥125,927 million.
This was mainly due to an increase in retained earnings of ¥9,987 million.

(3) Overview of forward-looking statements including consolidated financial forecast
It remains unchanged from our financial forecast published on December 15, 2023.

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2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Millions of yen)
Current quarter(As of July 31, 2024)

Previous fiscal year
(As of October 31, 2023)
AssetsCurrent assets:
Cash and deposits

92,59097,687

Accounts receivable - trade26,93926,839Merchandise and finished goods

16,64520,703378

387

Raw materials and supplies

1,801

1,980

Other

3,303

4,762

Allowance for doubtful accounts

(17)

(13)

141,641

152,346

Buildings and structures, net

16,186

19,461

Machinery, equipment and vehicles, net

22,977

24,588Land

19,897

19,870

Other, net

5,133

1,737

Total property, plant and equipment

64,19565,657

1,509

1,865

Work in process

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

Intangible assets
Investments and other assets

4,544

4,171

Total non-current assets

70,24971,694

211,891

224,040

Accounts payable - trade32,231

33,659

Short-term borrowings

1,317

6,105

Income taxes payable

4,562

2,237

Provision for bonuses

473

271

Other

10,473

10,238

Total current liabilities

49,05752,51237,00030,913Retirement benefit liability

688

742

Guarantee deposits received

7,589

7,985

Asset retirement obligations
Provision for share awards for directors(and other officers)
Other

1,672

1,725

110

130

1,320

4,103

Total non-current liabilities

48,38245,60097,43998,113

Total assets
Liabilities
Current liabilities:

Non-current liabilities:
Long-term borrowings

Total liabilities-4-

(Millions of yen)
Current quarter(As of July 31, 2024)

Previous fiscal year
(As of October 31, 2023)
Net assets
Shareholders’ equity:
Share capital

500

500

Capital surplus

12,137

12,668Retained earnings

108,797

118,785

Treasury shares(9,087)(9,039)Total shareholders’ equity

112,348

122,91427

64

Foreign currency translation adjustment

(684)

(368)

Total accumulated other comprehensive income

(657)

(304)

2,760

3,316

114,451

125,927

211,891

224,040

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

Share acquisition rights
Total net assets
Total liabilities and net assets-5-(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income

Net sales

For the nine months ended
July, 31 2023
(From November 1, 2022
to July, 31, 2023)
338,767(Millions of yen)
For the nine months ended
July, 31, 2024
(From November 1, 2023
to July, 31, 2024)
377,283

Cost of sales

299,658

333,189

Gross profit

39,10944,093

Selling, general and administrative expenses

15,83017,453Operating profit

23,27826,640Interest income

371

384

Dividend income

8

6

Rental income

122

202

Foreign exchange gain

811–

Subsidy income

113

117

Other

331

318

1,759

1,029

Interest expenses

46

21

Rental costs

26

22

Foreign exchange losses–

626

Fuel sale costs

64

62

2,180

4,918

26

37

Non-operating income:

Total non-operating income
Non-operating expenses:

Loss on valuation of derivatives
Other
Total non-operating expenses

2,344

5,688

22,69421,980Gain on sale of investment securities

5

14

Gain on sale of non-current assets

31Gain on reversal of share acquisition rights

1028

Total extraordinary income

18

44

Loss on retirement of non-current assets

41

151

Loss on sale of non-current assets–

0Loss on sale of investment securities–

81

Total extraordinary losses

41

233

Profit before income taxes

22,671

21,791

Income taxes - current

6,873

6,938

Income taxes - deferred

207

5

Total income taxes

7,081

6,944

Profit15,59014,847

Profit attributable to owners of parent

15,59014,847

Ordinary profit
Extraordinary income:Extraordinary losses:-6-Quarterly consolidated statements of comprehensive income

Profit

For the nine months ended
July, 31 2023
(From November 1, 2022
to July, 31, 2023)
15,590(Millions of yen)
For the nine months ended
July, 31, 2024
(From November 1, 2023
to July, 31, 2024)
14,847

Other comprehensive income:
Valuation difference on available-for-sale securities

23

36

Foreign currency translation adjustment

(711)

315

Total other comprehensive income

(688)

352

14,902

15,20014,902

15,200Comprehensive income
Comprehensive income attributable to:
Owners of parent-7-

(3) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable.
(Significant changes in shareholders’ equity)
Not applicable.
(Changes in accounting policies)
Not applicable.
(Quarterly consolidated statements of cash flows)
The quarterly consolidated statements of cash flows for the period under review are not prepared. The amounts ofdepreciation (including amortization of intangible assets excluding goodwill) and amortization of goodwill for the period
under review are as follows.
(Millions of yen)
For the nine months ended
For the nine months ended
July, 31 2023
July, 31, 2024
(From November 1, 2022
(From November 1, 2023
to July, 31, 2023)
to July, 31, 2024)
Depreciation
3,764
4,399
Amortization of goodwill
3
17

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(Segment information)
I. For the nine months ended July 31, 2023 (from November 1, 2022 to July 31, 2023)
1. Information on amounts of net sales and profit (loss) by reportable segment(Millions of yen)
Gyomu
Super
Business

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment Consolidated*2*3

Timing ofrevenue recognition
Goods or services
transferred
at a point in time

325,223

7,929–

333,15330

333,183–

333,183

Goods or services
transferredover time
Revenue fromcontracts withcustomers
Net sales
Sales toexternal customers

2,844

64

2,675

5,584

–

5,584

–

5,584

328,067

7,994

2,675

338,73730

338,767–

338,767

328,067

7,994

2,675

338,73730

338,767–

338,767Intersegment
sales or transfers

3,546

229

–

3,775

–

3,775

(3,775)–

Total

331,614

8,223

2,675

342,51230

342,543(3,775)

338,767

Segment
25,550360
726
26,637 (33)
26,604(3,325)23,278
profit (loss)*1 The Other businesses are those not classified into any reportable segment, including the tourism business.
*2 Details of adjustment are as follows:(1) The amount of adjustment for net sales represents eliminations of intersegment transactions.
(2) The amount of adjustment for segment profit (loss) of ¥(3,325) million is corporate expenses unallocated to eachreportable segment. The expenses are general and administrative expenses unattributable to any reportablesegments.
*3 Segment profit (loss) is adjusted with operating income reported on the quarterly consolidated statements of income.
2. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment.
(Significant impairment losses related to non-current assets)
Not applicable.

-9-II. For the nine months ended July 31, 2024 (from November 1, 2023 to July 31, 2024)
1. Information on amounts of net sales and profit (loss) and disaggregated revenue by reportable segment(Millions of yen)
Gyomu
Super
Business

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment Consolidated*2*3

Timing ofrevenue recognition
Goods or services
transferred
at a point in time

360,595

10,005–

370,60135

370,636–

370,636

Goods or services
transferredover time
Revenue fromcontracts withcustomers
Net sales
Sales toexternal customers

3,128

87

3,431

6,647

–

6,647

–

6,647

363,723

10,093

3,431

377,24835

377,283–

377,283

363,723

10,093

3,431

377,24835

377,283–

377,283

Intersegment
sales or transfers

4,561

388

–

4,950

–

4,950

(4,950)–

Total

368,285

10,481

3,431

382,19835

382,233(4,950)377,283

Segment
28,593778
876
30,247 (21)30,226(3,586)
26,640profit (loss)*1 The Other businesses are those not classified into any reportable segment, including the tourism business.
*2 Details of adjustment are as follows:(1) The amount of adjustment for net sales represents eliminations of intersegment transactions.
(2) The amount of adjustment for segment profit (loss) of ¥(3,586) million is corporate expenses unallocated to eachreportable segment. The expenses are general and administrative expenses unattributable to any reportablesegments.
*3 Segment profit (loss) is adjusted with operating income reported on quarterly consolidated statements of income.
2. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment.
(Significant impairment losses related to non-current assets)
For the nine months ended July 31, 2024, an impairment loss on non-current assets was recorded. The amount of thesaid loss was ¥81 million in the Gyomu Super Business segment.

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