Supplementary Material for

FY2023 Financial Results

December 15, 2023

Securities code: 3038

◤◤ Contents⚫ Consolidated Financial Highlights

2⚫ Gyomu Super Business4⚫ Outline of Gyomu Super Franchise Agreement5⚫ Changes in Total Number of Gyomu Super Stores

6⚫ Year-on-year Changes in Product Shipments to Gyomu Super Stores

7⚫ Kobe Bussan’s Strengths: “Unique Products with Competitive Advantages”

8⚫ Restaurant & Delicatessen Business9⚫ Eco Renewable Energy Business13⚫ Shareholder Returns

15⚫ Consolidated Financial Forecast

16⚫ Medium-term Management Plan

17
1

◤◤ Consolidated Financial Highlights<Millions of yen>

<Millions of yen>

Net Sales

500,000

60,000Gross Profit

15.7%

16.0%

13.3%

11.9%

50,000

11.5%

11.4%

12.0%

400,000
40,000461,546
300,000
299,616

362,064

340,870

406,81330,000<Millions of yen>

FY2020

FY2021

FY2022<Millions of yen>

SG&A Expenses

6.3%

22,000

4.4%

4.8%

4.6%

27,891
21,347

14,00015,812

18,77622,002

10,000FY2019FY202043,123

FY2021

販売管理費
SG&A expenses

FY2022

FY2023

売上高販管費率
SG&A ratio

FY2020

FY2021

売上総利益
Gross profit

FY20239.3%

26,00045,19846,5964.0%
0.0%

FY2019FY201918,00047,13020,000200,000

30,0008.0%
52,71910.0%

35,0008.0%

30,0006.0%

25,000

4.0%

20,0002.0%

15,0000.0%

10,000

FY2022

FY2023

売上高総利益率
Gross margin

Operating Profit
10.0%

6.4%

7.0%

7.5%

6.8%

6.7%

8.0%
6.0%

19,23923,851

27,311

27,82030,717

4.0%
2.0%
0.0%

FY2019FY2020

FY2021

営業利益
Operating profit

FY2022

FY2023

売上高営業利益率
Operating margin

Note: Fiscal year (FY) represents the one-year period from November 1 to October 31 of the following year.
2◤◤ Consolidated Financial Highlights<Millions of yen>

<Millions of yen>

Ordinary Profit

35,00010.0%
8.0%

30,000

6.5%

20,000

5.4%

6.9%

6.5%

8.0%

4.0%

6.0%

20,00029,087
19,434

32,12529,97023,6462.0%

FY2021

経常利益
Ordinary profit

FY2022

5.1%

6.0%
4.5%

FY2023

売上高経常利益率
Ordinary margin

4.0%

4.0%

0.0%
FY20204.4%

15,00010,000FY20198.0%

7.9%

25,00015,00025,000

Profit Attributable to
Owners of Parent

19,592
10,00012,056

20,832

20,5602.0%

15,047

5,000

0.0%

FY2019FY2020

FY2021

親会社株主に帰属する当期純利益
Profit attributable to owners of parent

FY2022

FY2023

売上高当期純利益率
Net margin[Financial Overview]⚫ Net sales
Net sales increased by ¥54,733 million (13.5%) year on year with robust new store openings and continued strong product shipments to existing
stores.
⚫ Gross profit
Gross profit increased by ¥6,123 million (13.1%) year on year due to the continued strong net sales despite the impact of the exchange rate
fluctuations.
⚫ SG&A expenses
SG&A expenses increased by ¥3,226 million (17.2%) year on year due to increases in freight costs for the Gyomu Super Business and personnel andrent expenses resulting from the opening of our directly operated BBQ restaurants.
⚫ Operating profit
As a result of the factors above, operating profit increased by ¥2,897million (10.4%) year on year.
⚫ Ordinary profit
Ordinary profit decreased by ¥2,154 million (6.7%) year on year due to a valuation loss on forward exchange contracts entered into to hedge theexchange rate fluctuation risk.
⚫ Profit attributable to owners of parent
As a result of the factors above, profit attributable to owners of parent decreased by ¥272 million (1.3%) year on year.

3◤◤ Gyomu Super BusinessGyomu Super is our core business. Operating results of this business segment reflect wholesale sales to, androyalty fee from, Gyomu Super franchisees earned by Kobe Bussan, a franchisor (franchising headquarters), as wellas earnings of Kobe Bussan Group’s plants.

◼ Gyomu Super stores have expanded nationwide with 1,048
stores as of October 31, 2023.
◼ Net sales for FY2023 exceeded the planned amount due tostrong performance of the existing stores.
◼ On October 26, we opened Yokohama Izumi Store, a directly
operated store with one of the largest store floor areas in the
Kanto region.
<Millions of yen>

Net Sales<Millions of yen>

500,000

Inside the Gyomu Super Yokohama Izumi StoreOperating Profit

40,00035,000400,000

12.0%

8.0%

8.3%

8.7%

8.0%

30,000300,000

7.6%

25,000200,000

100,000

10.0%

264,171

320,110355,466

396,296446,908

6.0%

20,00015,00026,44931,03531,612

34,13921,0380.0%
FY2019FY2019FY2020

FY2021

FY2022

FY20234.0%
2.0%

10,0000

8.0%

FY2020

FY2021

営業利益
Operating profit

FY2022

FY2023

営業利益率
Operating margin

Note: Due to a change in the reportable segment structure in FY2021, the figures for FY2020 are reclassified retrospectively to reflect the change.
Accordingly, the figures for these four years are not consistent with that for FY2019.
4◤◤ Outline of Gyomu Super Franchise Agreement
We operate Gyomu Super stores under a franchise system except 4 stores of our own.
Our franchise agreement has 2 types as follows:• General franchise contract, which allows a franchisee to open 1 store in our directly managed areas (*1).
• Area franchise contract, which allows a franchisee to open multiple stores in a defined prefecture in our indirectly managed
areas (*2).
関西直轄
Also, we own 4 stores in Hyogo, Osaka and Kanagawa prefectures under direct operations.
228店舗*1 Directly managed areas• Hokkaido area: Hokkaido prefecture• Kanto area:
Tokyo, Chiba, Kanagawa, and Saitama prefectures• Kansai area:
Osaka, Kyoto, Hyogo (excl. Awaji Island), Nara, Wakayama, and Shiga prefectures• Kyushu area:
Fukuoka, Saga, Nagasaki, Kumamoto, Oita, and Miyazaki prefectures 地方エリア

関東直轄
191店舗

Outline of Franchise Contract & Requirements

Simulated Earnings(as of October 31, 2023)(Standard Store Franchisees)

Directly managed areas

Indirectly managed areas

Number of franchisees

9015Type of franchise
agreement

Single-unit franchise(A general franchisee can open
1 store per contract.)

Multi-unit franchise(An area franchisee has an
exclusive right to open multiple
stores in a prefecture defined
under the contract.)

Initial franchise fee(excl. consumption taxes)¥2,000,000

Population in the prefecture x ¥2

Franchise deposit¥10,000,000

Population in the prefecture x ¥5

1% of total purchase of goods

1% of purchase of defined goods

Royalty fee

Facility expenses

Distribution expenses

It costs between ¥32 million and ¥38 million to construct racks for
shelf-stable foods and refrigeration equipment (the above
construction cost is a rough estimate and varies depending on
properties). Equipment, construction work, POS registers, and otherfunds for start-up are required separately.
Principally paid byfranchise headquarters

神奈川県
55店舗

東京都
64店舗

315店舗

*2 Indirectly managed areas• Other areas:
Prefectures other than those listed above

千葉県
33店舗

Negotiable

P&L accountMonthlyamountComposition

Net sales¥43,500,000

100.0％

Gross profit¥7,395,000

17.0％

SG&A expenses¥6,499,000

14.9％(Rent expenses)¥1,300,000

3.0％(Personnel expenses)¥2,393,000

5.5％¥896,000

2.1％

Operating profit* By purchasing items such as fresh food separately, many offranchisees operate more efficiently than the above simulation.

5◤◤ Changes in Total Number of Gyomu Super Stores
Number of Stores by Area

Gyomu Super opened 53 stores and closed 12,
resulting in a net increase of 41 stores during FY2023,
and opened 19 stores and closed 3 during FY2023 Q4
alone.
The above result exceeded the full-year target (a netincrease of 40 stores) by one.

1,007 stores as of
October 31, 2022

1,048

Chiba

Kansai

51

260
Kanto
276

Saitama
Kanagawa

65

76
Tokyo

371

Total Number of Gyomu Supper Stores

1,100

Hokkaido 26
Kyushu 74

Other(Stores)

千葉県
33店舗

84

1,083

1,007
1,000
900

950

1,048 stores as of
October 31, 2023 (+41)

879

Hokkaido 33 (+7)

800

Kyushu 87 (+13)
Kansai

700

266
(+6)

600

Kanto
282

Other

500

380

2020年
FY20202021年
FY2021

2022年
FY2022

2023年
FY2023

2024年
FY2024

10月

10月

10月

10月

10月目標

(+9)

(+6)

Saitama
65
(±0)

Chiba
57
(+6)

Kanagawa
77
Tokyo (+1)83(-1)

TargetDirectly managed areas: Hokkaido, Kanto, Kansai, and Kyushu
Indirectly managed areas: Other

6◤◤ Year-on-year Changes in Product Shipments to
Gyomu Super Stores◼ Product shipments to existing stores during FY2023 remained strong, along with recovering thenumber of customer visits nationwide.
<YoY Change(%)><YoY Change(%)> [Existing Stores in Directly Managed Areas]

Monthly Trends for Product Shipments

Monthly Trends for Product Shipments
113.3

115.0
110.0
105.6
105.0
100.0

109.1
107.2
106.8
106.8
105.3
103.1

103.6

103.9

102.4

104.3
103.2

95.0
94.4
Nov. Dec. Jan.

11月 12月 1月

Feb.

2月

105.5

102.9

101.1

90.0

105.6

103.1

Mar.

3月

2021年
FY2021

125

111.9
111.1
110.3
109.9

110.5

110.2

103.5

120

104.9
109.0 105.1

103.4
103.1
102.9

104.5
101.7

120.1

119.9
117.3

102.4

100
94.2

4月

118.6

116.6 113.6
115.3
115.3
112.5
115.3
113.2
113.1
111.5
112.0
112.7
112.5
115 111.6
111.8
110.8
111.2
110.3
113.4
108.3
110
112.3
111.1
110.5
110.3
110.0 110.3
109.3
108.6
110.0
108.3
105

91.5

Apr.

[All Stores Nationwide]

May

5月

2022年
FY2022

98.9

101.7

95
June

6月

July

7月

Nov. Dec. Jan.

Aug. Sept. Oct.

8月

11月 12月 1月

9月 10月

Feb.

2月

Mar.

3月

2021年
FY2021

2023年
FY2023

Apr.

4月

May

5月

2022年
FY2022[Year-on-year % Changes in Product Shipments to Gyomu Super Stores]
FY2023
Nov. Dec.

Jan.

Feb. Mar. Apr.

H1

May

June

July

Aug. Sept. Oct.

H2

Full

June

6月

July

7月

Aug. Sept. Oct.

8月

9月 10月

2023年
FY2023

Products shipments
to existing stores in
directly managed areasfor each quarter alone

Directly Existing 105.6 107.2 103.9 106.8 103.2 106.8 105.6 110.5 105.6 110.3 111.9 109.0 111.1 109.4 107.7
storesManagedAll
112.1 112.6 109.5 112.5 108.5 112.7 111.4 116.5 111.1 115.5 117.1 113.4 114.7 114.7 113.1
areasStoresQ1: 105.7%

Nationwide

Q4: 110.7%

All
111.6 112.5 109.3 112.0 108.3 111.8 111.0 116.6 110.3 115.3 117.3 113.4 115.3 114.7 112.9
StoresQ2: 105.5%
Q3: 108.8%

Note: “Nationwide” represents the product shipments to the stores in both directly and indirectly managed areas.
7◤◤ Kobe Bussan’s Strengths:“Unique Products with Competitive Advantages”
Enhancing Original Products

Samples of Private Label Products◼ Products produced by Kobe Bussan Group’s plants

Ratio of Private Label Products
35.0%

34.82%

34.75%

34.74%

34.68%

34.74%

34.47%

34.0%

34.29%

Produced by our plants：11.1%
Imported：23.5%
33.01%

33.0%

34.57%

32.75%

32.94%

33.12%
Chicken cutlet withsalt and seaweed¥559 (900 g)

Frozen Sanuki
udon noodles¥178 (250 g x 5)

Organic oat
flakes¥267 (500 g)

Grilled chicken
thigh skewers¥1,458(22 g x 50 skewers)◼ Import products

32.0%
Q1
1Q
2021年10月期
FY2021◼

Spicy curry-flavoredchicken legs
¥365 (2 legs)

Q2
2Q
2022年10月期
FY2022

Q3
3Q

Q4
4Q
2023年10月期
FY2023

While shipments of private label products were on therise, national brand products continued to perform evenstronger.

◼

The price revision of national brand products lowered theratio of private label products.

Tempe¥375 (450 g)

Note: All prices include tax.
Products and prices are different depending on stores and seasons.

8◤◤ Restaurant & Delicatessen Business
The Restaurant & Delicatessen Business covers restaurants and delicatessen shops that we operate directly or as afranchisor (franchising headquarters). This business segment includes Kobe Cook World Buffet, a buffet-style restaurant
chain; Premium Karubi, a served a-la-carte buffet style BBQ restaurant chain; and Chisouna, a delicatessen shop chain.

◼

All the three brands performed well.

◼

Each brand increased its media exposure as we
successfully differentiated ourselves from competitors interms of prices and menu items.

As a result of the above, the segment performance improved
significantly.
Kobe Cook World Buffet<Millions of yen>

<Millions of yen>

Net Sales

Premium Karubi

Chisouna

Operating Profit

600

12,000

400
9,000

12.0%
5.7%
4.7%

200
0

6,000

10,950

2,185

2,508

FY2019FY2020

-200

-2.7%

FY20190

FY2022512

FY2023

4.0%
0.0%

-455

-4.0%

-1.6%

-8.0%

-600

3,889

FY2021

-119

-68

-400

7,323

3,000

124

8.0%

FY2020-11.7%FY2021
FY2022

営業利益
Operating profit-12.0%FY2023

営業利益率
Operating margin

Note: Due to a change in the reportable segment structure in FY2021, the figures for FY2020 are reclassified retrospectively to reflect the change.
Accordingly, the figures for these four years are not consistent with that for FY2019.
9◤◤ Restaurant & Delicatessen Business
Kobe Cook World Buffet
Total Number of Restaurants: 14 (as of October 31, 2023)

Kobe Cook World Buffet opened 3 restaurants and closed none, resulting in a netincrease of 3 restaurants during FY2023, and did not open or close any restaurants
during FY2023 Q4 alone.
A new store is scheduled to open in Chiba in January 2024.

Getting back to the Founding Concept
A marketing campaign from July with a tagline of “Enjoy foods & drinks from around the World”
was well received by numerous customers during the summer vacation period. The campaign
helped them recall World Buffet’s founding concept: A restaurant offering more than 100 kindsof dishes from around the world in the spacious restaurant without worrying about time. In

September and October, we held the “Asian Fair.” In this way going forward, we will continue tooffer a world cuisine fair whose theme area changes every two months so that we provide amenu that satisfies many guests and a comfortable space that meets their needs.

Business Strategy for FY2024
We expect to continue enjoying demand from large party guests such as tourists from home
and abroad. Also, we may capture group demand for dining events including year-end parties,
new year parties, and parties after a sports day or cultural festival in school as well as demand
from families during holiday seasons.
Going forward, we will encourage customers to visit the restaurant more frequently bycontinuing to offer services that satisfy customers with a dining experience unparalleled to any
other restaurant chains in terms of the menu, volume of food, and price. In doing so, we will

Seasonal special offer
in September and October: “Asian Fair”

recover sales to their pre-pandemic levels in all our restaurants.
10◤◤ Restaurant & Delicatessen BusinessPremium Karubi
Total Number of Restaurants: 20 (as of October 31, 2023)

Premium Karubi opened 4 restaurants and closed none, resulting in a net increase of 4 restaurants during
FY2023, and opened 1 restaurant and closed none during FY2023 Q4 alone.
The performance remained strong despite soaring prices of raw materials and changes in foot traffic resulting
from the resumption of events following the lifting of movement restrictions.

Overview of FY2023

Grand Menu

The business throughout FY2023 was significantly impacted by a number of
persistent adverse factors such as precarious fluctuations in foreignexchange rates, increased prices of raw materials, and a rise of personal
and utilities costs. In the first half, the number of customer visits remained
strong even in the face of the COVID-19 pandemic, though partly offset in
the second half by a shift of foot traffic to events and travels following thelifting of movement restrictions along with the reclassification of COVID-19
into Category V infectious disease. To overcome these challenges and gaina profit, we took measures such as introducing the Premium Course menu,changing menu, and running seasonal special fairs while focusing on
customer satisfaction and customer visits. This is how we successfully
expanded the number of restaurants in the ongoing game of survival of thefittest in the BBQ restaurant business.

Restaurants Opened during FY2023
Lake Town

5-1-2 Lake Town, Koshigaya-shi, SaitamaFuji

1 Takashima-cho, Fuji-shi, Shizuoka

Nakatomatsuri

828-18 Nakatomatsuri-cho, Utsunomiya-shi, Tochigi

MatsudoKiyoshigaoka

3-11-1 Kogane Kiyoshigaoka, Matsudo-shi, Chiba

Note: Menus may vary by restaurant and season.

Shonandai Store has opened in Fujisawa-shi, Kanagawa on December 5.
11◤◤ Restaurant & Delicatessen Business
Chisouna
Total Number of Shops: 114 (as of October 31, 2023)

Chisouna opened 29 shops and closed 2, resulting in a net increase of 27
shops during FY2023, and opened 12 shops and closed none during FY2023
Q4 alone.
We achieved 100 shops nationwide in May.

Factors behind Strong Performance
Despite continuous soaring prices of raw materials, Chisouna
maintains a price advantage by working on price revisions, menuchanges, and improvement in cooking operations efficiency. In
addition, a strong synergy effect on attracting more customers to
Gyomu Super stores is accelerating the willingness of franchisees
to open new shops. The voluminous fresh homemade foods keep
attracting customers.

Business Strategy for FY2024
During FY2023, we developed and offered approximately 40 new
dishes, of which desserts sold particularly well.
In FY2024, we will continue to significantly expand a variety ofdesserts, striving to create more attractive shops to satisfy
customers.
Note: Products and prices may vary by shop and season.

12◤◤ Eco Renewable Energy BusinessWe provide eco-friendly, safe, and reliable renewable energy by operating solar andwoody biomass power plants.
◼ The year-on-year increase in both net sales andoperating profit was achieved thanks in part to asolar power plant in Nishigo-mura, Nishishirakawagun, Fukushima with a generation capacity of approx.
18.9 MW, which started operations in June 2022.
◼ A new plant in Higashimatsushima-shi, Miyagi with ageneration capacity of approx. 30.0 MW started
operations on October 18, 2023.

Area B

Area A

Kobe Bussan’s Solar Power Plant(Photo: Higashimatsushima Power Plant
with a capacity of 30 MW,
which started operations in October 2023)◼ As a result of the above, all of our planned solar
power plants are now in operation with a total
capacity of 81.0 MW.
<Millions of yen>

Net Sales<Millions of yen>

Area C

4,000

Operating Profit

1,000

25.7%

800
18.0%

600

20.0%

15.4%
2,000

1,000

2,341

2,401

2,668

3,152

3,646

938

12.7%

400
200

25.0%

21.5%

3,000

361

676
480

5.0%
FY2019FY2019FY2020

FY2021

FY2022

FY2023

15.0%
10.0%

304

0
0

30.0%

FY2020

FY2021

営業利益
Operating profit

FY2022

FY2023

営業利益率
Operating margin13◤◤ Eco Renewable Energy Business
Plant Locations

Solar Power:[Biomass]
Shiranuka-cho,
Hokkaido
6.2 MW

19 locations

81.0 MW

1 location

6.2 MW

Biomass:[Solar Power]
5 in Hokkaido
5.9 MW(as of October 31, 2023)【Solar Power】
1 in Miyagi
30.0 MW[Solar Power]
1 in Shiga
0.5 MW[Solar Power]
4 in Hyogo
4.5 MW[Solar Power]
1 in Fukushima
18.9 MW[Solar Power]
1 in Fukuoka
0.9 MW[Solar Power]
1 in Ibaraki
2.4 MW[Solar Power]
3 in Osaka
14.2 MW[Solar Power]
1 in Tokushima
2.1 MW[Solar Power]
1 in Wakayama
1.6 MW
14◤◤ Shareholder Returns
Dividends
Dividend per Share<Yen>

Kobe Bussan regards returning profits to shareholders as one of key

25

management issues. Our basic policy is to secure funds necessary for

21.5%

22.1%

23.1%

23.5%

23.6%

our business growth and distribute profits to shareholders according to

25%
20%

the operating results.

20

15%

For FY2023, we paid the annual year-end dividends of ¥22.00 per share15

as in previous years.

20.00

22.00

22.00

23.00

5%

15.00

For FY2024, we plan to pay the annual dividends of ¥23.00 per share.

10

Note: The figures in the graph on the right have been adjusted for the effect ofthe 2-for-1 stock splits carried out in November 2019, and November
2020.

FY2020
FY2021
FY2022
2020年
2021年
2022年
Dividend per share
1株当たり配当金10%

FY2024FY20232023年
2024年予想
Target配当性向(連結)
Payout ratio

0%

Shareholder Benefit Program
The shareholder benefit program has been introduced to express Kobe Bussan’s gratitude for the continuous support of its shareholders
and to gain the deeper understanding of customers for its businesses. We will send JCB Gift Card to shareholders who hold 100 shares ormore as of October 31 of each year, according to the number of years of ownership and the number of shares held.
Shareholder incentives
Number of shares held

Continuous ownership years
Less than 3 years

Continuous ownership years
3 years or more

100-999

JCB Gift Card ¥1,000

JCB Gift Card ¥3,000

1,000-1,999

JCB Gift Card ¥10,000

JCB Gift Card ¥15,000

2,000 or more

JCB Gift Card ¥15,000

JCB Gift Card ¥20,000

SampleNote: Shareholders may opt to exchange the gift cards for an assortment of private label products worth the face value.

15◤◤ Consolidated Financial Forecast
FY2024 Forecast
FY2023 actual(Millions of yen)

FY2024 forecast

Year on year

Net sales

461,546

498,000

107.9%

Operating profit

30,71731,000100.9%

Profit attributable to owners of parent

20,56021,500104.6%

The above forecast reflects the assumption that the weak yen against US dollar will continuingly
increase the cost of imported products as well as the costs of raw materials and infrastructure.

Gyomu Super Business Guideline towards FY2024 Forecast
FY2024 target

Action plan

Target ofstore openings

Net increase of
35 stores

Open stores focusing on the Kanto and Kyushu areas under
direct management.
Strengthen property data-gathering capability driven byheadquarters.

Growth in existing
store sales

102% YoY or higher

Acquire more savings-oriented consumers
Improve efficiency in store operations

Product
development

Rise in PB ratio

Focus on private label products developed by our groupplants and those imported directly by ourselves.
16◤◤ Medium-term Management Plan: Basic Policy
By serving a noble cause of offering more value with less price, we, as anintegrated food company, are committed to improving customers’ affluent life.
Expand Restaurant & Delicatessen BusinessFranchisePremium Karubi

Mid-term vision

Reach total of 200
shops for all brands

Strengthen production capacity of private brand items
produced by our plants
Start operation of
two or more newplantsInvest in our groupplants to increase
production capacity

Seek to consistently
grow our businesses
with a focus on the
Gyomu Super
Business by

Raise PB ratio

enhancing private
label products.

Consistently grow Gyomu Super BusinessOpen new storesconsistently

Grow
existing store sales

1st year

Improve efficiency in store
operations

3rd year

2nd year
2024

2025

2026
17

◤◤ Medium-term Management Plan: Numerical Targets(Millions of yen)

FY2023
actualFY2024
forecast

FY2026targetNet sales

461,546

498,000

543,000

Operatingprofit30,71731,00037,000ROIC

Maintain 10% or higher, aiming for growth every year18• This material contains forward-looking statements based onassumptions, estimates, and plans as of December 15, 2023.

• Please note that actual results may differ significantly from theseforward-looking statements due to uncertain factors arising fromchanges in the economic climate.
• This material is not intended to solicit and encourage purchase ofshares.
• This material has been translated from the Japanese original forreference purposes only. In the event of any discrepancy between
this translated material and the Japanese original, the original shallprevail.

For information regarding this material, please contact:
IR-Public Relations, Kobe Bussan Co., Ltd.
ir@kobebussan.co.jp
19