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, 2023
(Under Japanese GAAP)
September 12, 2023
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 file Quarterly Securities Report:
September 13, 2023
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, 2023 (from November 1, 2022 to July 31, 2023)(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, 2023
338,767
12.9
23,278
6.6
22,694(4.0)
15,590(2.1)
July 31, 2022
300,016
12.2
21,847
2.9
23,638
6.5
15,932
7.1
Note: Comprehensive income
For the nine months ended July 31, 2023: ¥14,902 million [(10.5)%]
For the nine months ended July 31, 2022: ¥16,643 million [7.8%]
Basic earnings
per share
Nine months ended
July 31, 2023
July 31, 2022

Yen
71.04
72.97

Diluted earnings
per share
Yen
70.16
71.81

(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
July 31, 2023
198,141
108,763
October 31, 2022
180,275
97,220
Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of July 31, 2023:¥106,135 million
As of October 31, 2022: ¥94,990 million
2.

Equity ratio
%
53.6
52.7

Net assets per shareYen
482.31433.53

Cash Dividends

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Fiscal year
Yen
Yen
Yen
Ended October 31, 2022
0.00
–
22.00
Ending October 31, 2023
0.00–
Ending October 31, 2023 (Forecast)
22.00
Note: Revisions to cash dividend forecast published most recently: NoneFirst
quarter-end
Yen
–
–

Total
Yen
22.00
22.00

Consolidated financial forecast for the fiscal year ending October 31, 2023 (from November 1, 2022 to October 31, 2023)(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
440,000
8.2
29,7006.8
32,5001.2
21,2001.8
97.02
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): Yes
Newly included: None
Excluded:
3 companies(Company name: KB GLOBAL PARTNERS, INC., J.J. DINING, INC., KOBE BUSSAN USA, INC.)(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: Yes(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
Note:

Please refer to “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to quarterly consolidated
financial statements (Changes in accounting policies)” on page 8 of the Attached Materials.

(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, 2023:
273,600,000 shares
As of October 31, 2022:
273,600,000 shares(ii) Number of shares of treasury shares at the end of the period
As of July 31, 2023:
53,544,720 shares
As of October 31, 2022:
54,490,520 shares(iii) Average number of shares of common shares outstanding during the period
Nine months ended July 31, 2023:
219,465,181 shares
Nine months ended July 31, 2022:
218,355,926 shares
Note: The number of shares of Kobe Bussan held by Custody Bank of Japan, Ltd. (the “Trust Account”) as trust property
for a 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, 2023 and 168,400 shares as of October 31, 2022). Also, the number of shares of Kobe Bussan
held by the Trust Account was included in the number of shares of treasury shares to be deducted from thecalculation of the average number of shares of common shares outstanding during the period (275,200 shares forthe nine months ended July 31, 2023 and 168,400 shares for the nine months ended July 31, 2022).
* This financial results report is not subject to audit procedures to be performed by certified public accountants or an audit firm.
* 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. Qualitative Information on Quarterly Consolidated Financial Results(3) Overview of forward-looking statements including consolidated financial forecast” on page 3 of the Attached Materials.

2

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Results ································································ 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
(Segment information) ················································································································· P. 9

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1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly consolidated operating results
During the nine months ended July 31, 2023 (from November 1, 2022 to July 31, 2023) (hereinafter the “period underreview”), Japan further normalized its socioeconomic activities thanks to the lifting of movement and immigration restrictions
due to COVID-19 as well as the reclassification of COVID-19 into Category V infectious disease (the same category as
common infectious diseases) in May. Nevertheless, the economic outlook has still remained unclear due to the prolonged
Russian-Ukraine situation, the concern about the economic slowdown caused by monetary tightening around the world,
precarious fluctuations in foreign exchange rates, and soaring energy costs.
Players in the food retail industry have continued to face severe circumstances, including a fall in demand for the homecooking with more consumers dining out and a rise in a savings-oriented attitude of consumers caused by the galloping
inflations, as well as 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 ¥338,767 million (up 12.9%
year on year), operating profit of ¥23,278 million (up 6.6%), ordinary profit of ¥22,694 million (down 4.0%), and profit
attributable to owners of parent of ¥15,590 million (down 2.1%).
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 1,032 stores as a result of a net increase of 25 stores after opening 34 stores and closing nine.
The breakdown of new store openings was 26 stores in directly managed areas and eight stores in indirectly managed areas.
While we work on store openings in all locations in Japan, we put a particular focusing on the Kyusyu area. The number ofstore openings has continued to grow steadily as planned for the current fiscal year.
In terms of operating results, we have continued expanding business performance. This is because we have overcome a risein purchase 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 ¥328,067 million (up 12.1% year
on year).
(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 andin-house made desserts; and Chisouna, a delicatessen shop chain under the concept of offering everyday dining with a focus
on foods made in-house and available at affordable prices.
In the period under review, Kobe Cook World Buffet opened three restaurants and closed none, resulting in 14 restaurants
nationwide. We strived to improve customer satisfaction through measures such as menu changes. Our efforts paid off with
the number of customer visits almost recovering to the level before the COVID-19 pandemic backed by the Japanese
government lifting the mask mandate and the limit on the number of people per table as well as more tourists from abroad
visiting Japan. Premium Karubi opened three restaurants and closed none, resulting in 19 restaurants nationwide. The
attention to this restaurant brand grew year by year thanks to increased media coverage. An increase in the number ofrestaurants in addition to an increase in the number of customer visits led to the expansion of the business scale and theimprovement of operational efficiency. Chisouna opened 17 shops and closed two, resulting in 102 shops nationwide.
While more customers were attracted by a variety of foods relevant to their needs and an introduction of new dishes, such asignificant increase in the number of shops helped boost net sales.
-2-Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥7,994 million (up54.7% year on year).
(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. We did
not open any power plants during the period under review, but opened one solar power plant in Nishigo-mura,Nishishirakawa-gun, Fukushima since June 2022, which contributed to our net sales from the beginning of the current
fiscal year. Also, our existing plants continued to operate as planned. Currently, we operate 18 solar power plants
collectively generating approximately 51.0 MW and one woody biomass power plant generating approximately 6.2 MW.
Consequently, net sales of the Eco Renewable Energy Business for the period under review stood at ¥2,675 million (up20.5% year on year).

(2) Overview of quarterly consolidated financial position
Assets, liabilities, and net assets(Assets)
Total assets as of July 31, 2023 increased by ¥17,866 million from the end of the previous fiscal year to ¥198,141 million.
This was mainly due to an increase in current assets of ¥16,064 million, which was mostly attributable to an increase in cash
and deposits of ¥19,296 million resulting from new borrowings for the facility enhancement of our group’s domestic plants.
(Liabilities)
Total liabilities as of July 31, 2023 increased by ¥6,322 million from the end of the previous fiscal year to ¥89,378 million.
This was mainly due to an increase in non-current liabilities of ¥12,792 million, partly offset by a decrease in current
liabilities of ¥6,469 million.
The decrease in current liabilities was mainly attributable to a decrease in short-term borrowings of ¥3,543 million resulting
from the repayment of the outstanding borrowings and income taxes payable of ¥4,059 million.
The increase in non-current liabilities was mainly attributable to an increase in long-term borrowings of ¥10,691 million
resulting from new borrowings for a reason already mentioned above.
(Net assets)
Total net assets as of July 31, 2023 increased by ¥11,543 million from the end of the previous fiscal year to ¥108,763
million. This was mainly due to an increase in retained earnings of ¥10,766 million.

(3) Overview of forward-looking statements including consolidated financial forecast
It remains unchanged from our financial forecast published on December 15, 2022.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Millions of yen)
Current quarter(As of July 31, 2023)

Previous fiscal year
(As of October 31, 2022)
AssetsCurrent assets:
Cash and deposits

67,04086,337

Accounts receivable - trade

23,24923,526

Securities

2,000

－

Merchandise and finished goods

17,49515,851435

388

Raw materials and supplies

1,798

1,941

Other

3,995

4,044

(2)

(14)

116,011132,075

Buildings and structures, net

16,001

15,990Machinery, equipment and vehicles, net

17,79916,605

Land

16,43016,449Other, net

7,880

11,351

Total property, plant and equipment

Work in process

Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment:

58,11260,397

Intangible assets

1,041

1,548

Investments and other assets

5,109

4,119

Total non-current assets

64,26366,065

180,275

198,141

Accounts payable - trade29,16729,945

Short-term borrowings

8,217

4,674

Income taxes payable

6,026

1,967

Total assets
Liabilities
Current liabilities:

Provision for bonuses

414

246

Other

4,162

4,685

Total current liabilities

47,98741,51826,31737,009Retirement benefit liability

650

707

Guarantee deposits received

7,167

7,465

528

552

81

103

322

2,021

35,06747,85983,05589,378Non-current liabilities:
Long-term borrowings

Asset retirement obligations
Provision for share awards for directors(and other officers)
Other
Total non-current liabilities
Total liabilities-4-

(Millions of yen)
Current quarter(As of July 31, 2023)

Previous fiscal year
(As of October 31, 2022)
Net assets
Shareholders’ equity:
Share capital

500

500

Capital surplus

10,466

11,761Retained earnings

93,061

103,828

Treasury shares(8,953)(9,181)

Total shareholders’ equity

95,074

106,908

Valuation difference on available-for-sale securities

(3)

19

Foreign currency translation adjustment

(80)

(791)

Total accumulated other comprehensive income

(84)

(772)

Share acquisition rights

2,229

2,628

Total net assets

97,220108,763

180,275

198,141

Accumulated other comprehensive income:

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 2022
(From November 1, 2021
to July, 31, 2022)
300,016(Millions of yen)
For the nine months ended
July, 31, 2023
(From November 1, 2022
to July, 31, 2023)
338,767

Cost of sales

264,532

299,658

Gross profit

35,484

39,109Selling, general and administrative expenses

13,636

15,830Operating profit

21,847

23,278Interest income

99

371

Dividend income

98

Rental income

188

122

Non-operating income:

Foreign exchange gain

1,401

811

Subsidy income

311

113

Other

305

331

2,315

1,759

Interest expenses

65

46

Rental costs

24

26

Fuel sale costs

58

64

Loss on valuation of derivatives

367

2,180

9

26

525

2,344

23,63822,694Gain on sale of investment securities–

5

Gain on sale of non-current assets

63Gain on reversal of share acquisition rights

7

10

Total extraordinary income

1318

Loss on retirement of non-current assets

25

41

Loss on sale of non-current assets

4－

Loss on sale of investment securities

50－

Total extraordinary losses

81

41

Profit before income taxes

23,57022,671

Income taxes - current

7,578

6,873

Income taxes - deferred

59

207

Total income taxes

7,638

7,081

Profit15,932

15,590

Profit attributable to owners of parent

15,932

15,590Total non-operating income
Non-operating expenses:

Other
Total non-operating expenses
Ordinary profit
Extraordinary income:Extraordinary losses:-6-Quarterly consolidated statements of comprehensive income

Profit

For the nine months ended
July, 31 2022
(From November 1, 2021
to July, 31, 2022)
15,932(Millions of yen)
For the nine months ended
July, 31, 2023
(From November 1, 2022
to July, 31, 2023)
15,590

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

(78)

23

Foreign currency translation adjustment

789

(711)

Total other comprehensive income

710

(688)

16,643

14,902

16,643

14,902Comprehensive 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)(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Guidance No.31; June 17, 2021;
hereinafter, the “Fair Value Accounting Standards”) since the beginning of the first quarter of this fiscal year. In
accordance with the transitional treatment set forth in paragraph 27-2 of the Fair Value Accounting Standards, theCompany has applied the new accounting policies set forth by the Fair Value Accounting Standard prospectively. Thereis no effect on the quarterly consolidated financial statements by applying the standard.

-8-

(Segment information)
I. For the nine months ended July 31, 2022 (from November 1, 2021 to July 31, 2022)
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

290,053

5,132–

295,18624

295,210–295,210

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

2,549

36

2,220

4,806

–

4,806

–

4,806

292,602

5,169

2,220

299,99224

300,016–300,016

292,602

5,169

2,220

299,99224

300,016–300,016

Intersegment
sales or transfers

2,172

122

–

2,294

–

2,294

(2,294)–

Total

294,774

5,291

2,220

302,28624

302,310(2,294)300,016

Segment
24,432(102)
427
24,757 (33)
24,724(2,876)
21,847
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 ¥(2,876) 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, 2023 (from November 1, 2022 to July 31, 2023)
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

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 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.

- 10 -