Supplementary Material for

FY2023 Q3 Financial Results

September 12, 2023

◤◤ 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

1◤◤ Consolidated Financial Highlights (Cumulative)<Millions of yen>

<Millions of yen>

Net Sales

350,000

40,00015.9%

Gross Profit
16.0%

14.1%
12.1%

300,000

35,000250,000

30,000200,000
150,000

220,351

300,016

267,374

259,362

338,767

35,14535,484

11.5%

39,109<Millions of yen>

FY21 Q3

FY22 Q3<Millions of yen>

9.4%

20,0006.9%

15,0004.2%
20,652

17,813
11,181

5,000

4.7%

4.5%

13,6360
FY19 Q3

FY20 Q3

FY21 Q3

販売管理費
SG&A expenses

FY22 Q3

10.0%

25,0008.0%

20,0006.0%

15,000

4.0%

10,00015,830

FY23 Q3

売上高販管費率
SG&A ratio
SG&A
ratio

FY20 Q3

FY21 Q3

Gross profit
売上総利益
Gross
profit

FY23 Q3

SG&A Expenses

2.0%

5,000

0.0%

0

8.0%

0.0%

FY19 Q3
FY20 Q3

12.0%

4.0%

20,000FY19 Q3

10,00032,41025,000100,000

25,00036,49311.8%

FY22 Q3

FY23 Q3

Gross margin
売上高総利益率
GrossmarginOperating Profit
10.0%

6.6%

7.2%

7.9%

7.3%

6.9%

8.0%
6.0%

14,493

18,67921,22821,847

23,278

4.0%
2.0%
0.0%

FY19 Q3

FY20 Q3

FY21 Q3

営業利益
Operating profit

Note: Fiscal year (FY) represents the one-year period from November 1 to October 31 of the following year.

FY22 Q3

FY23 Q3

売上高営業利益率
Operating margin2◤◤ Consolidated Financial Highlights (Cumulative)<Millions of yen>
25,00020,000<Millions of yen>

Ordinary Profit
8.3%
7.1%

6.6%

10.0%
6.7%

8.0%

10,00018,485

14,606

23,63822,694

4.2%

FY20 Q3

FY21 Q3

経常利益
Ordinary profit

FY22 Q3

FY23 Q3

売上高経常利益率
Ordinary margin

4.5%

4.6%

5,000

6.0%
4.0%

4.0%

0.0%
FY19 Q3

5.3%

10,000

2.0%

0

5.6%

15,0006.0%
22,2058.0%

7.9%

15,0005,000

20,000

Profit Attributable to
Owners of Parent

9,292

11,656

14,883

15,932

15,590
2.0%

0

0.0%

FY19 Q3

FY20 Q3

FY21 Q3

親会社株主に帰属する四半期純利益
Profit attributable to owners of parent

FY22 Q3

FY23 Q3

売上高四半期純利益率
Net margin[Financial Overview]⚫ Net sales
Net sales increased by ¥38,750 million (12.9%) year on year with robust new store openings and continued strong product shipments to existing
stores.
⚫ Gross profit
Gross profit increased by ¥ 3,625 million (10.2%) 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 ¥2,193 million (16.1%) 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 ¥1,431million (6.6%) year on year
⚫ Ordinary profit
Ordinary profit decreased by ¥944 million (4.0%) year on year due to a valuation loss on forward exchange contracts entered into to hedge theexchange rate fluctuation risk. While the valuation loss varies depending on the exchange rates at quarter-end, we expect the loss to be reduced by
the end of FY2023.
⚫ Profit attributable to owners of parent
As a result of the factors above, profit attributable to owners of parent decreased by ¥342 million (2.1%) 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 1,032
stores as of July 31, 2023.
◼ Net sales for FY2023 Q3 exceeded the planned amount due tostrong performance of the existing stores.
◼ We have also revised prices for some of the imported private
label items, given the weakening yen since this spring.

<Millions of yen>

Net Sales (cumulative)<Millions of yen>

Operating Profit (cumulative)

350,000

30,000300,000

25,000250,000

20,0008.0%

200,000

15,0007.0%

150,000
100,000

193,895

239,825

262,749

292,602

328,067

10,00010.0%
8.2%

15,8108.5%

20,316

9.1%
8.4%

23,925

6.0%
25,5500

FY19 Q3

FY20 Q3

FY21 Q3

FY22 Q3

FY23 Q3

5.0%
4.0%

FY19 Q30

9.0%

24,432

5,000

50,0007.8%

FY20 Q3

FY21 Q3

Operating profit
営業利益

FY22 Q3

FY23 Q3

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.
4
Accordingly, the figures for these four years are not consistent with that for FY2019.

◤◤ Outline of Gyomu Super Franchise Agreement
We operate Gyomu Super stores under a franchise system except 3 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). Also, we own 3 stores in Hyogo and Osaka prefectures under direct operations.
関西直轄
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

関東直轄
191店舗

Outline of Franchise Contract & Requirements

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

Directly managed areas

Indirectly managed areas

Number of franchisees

8915Type 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

地方エリア
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
Gyomu Super opened 34 stores and closed 9,
resulting in a net increase of 25 stores during
FY2023 Q3 cumulative, and opened 10 stores andclosed 1 during FY2023 Q3 alone.
The progress at the end of FY2023 Q3 was 63%
toward the full-year target of a net increase of 40
stores.

Number of Stores by Area千葉県
33店舗

979 stores as ofJuly 31, 2022

Kyushu 67
Chiba

Kansai

47

258
Kanto

Total Number of Gyomu Supper Stores

265(cumulative)

Saitama

74
Tokyo

81

368

1,032
1,000

Kanagawa

63

Other

1,100

1,047

979

1,032 stores as ofJuly 31, 2023 (+53)

933
900

Hokkaido 21

Hokkaido 32 (+11)
Kyushu 83 (+16)

866

Chiba

Kansai

55

262

800

(+4)

Kanto
279
(+14)

700

Other
FY2020
2020年
Q3

7月

FY2021
2021年
Q3

7月

FY2022
2022年
Q3

7月

FY2023
2023年
Q3

7月

FY2023
2023年
Target

10月目標

376
(+8)

Saitama(+8)

65

Kanagawa

(+2)

76
Tokyo

(+2)

83
(+2)

Directly 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 the existing stores remained strong with the number of customer visits on the
rise.
<YoY Change(%)><YoY Change(%)>[Existing Stores in Directly Managed Areas]
Monthly Trends for Product Shipments

110.5
110.3
109.9
109.1
105.6
106.8
106.8
107.2
105.3
104.9
105.1
103.9
105.5
103.5

120.0

104.3
104.5
103.1
103.1
103.6
103.4 102.9
103.2
102.9
101.7
103.1
102.4
101.1

110.0

110.2
110.0

105.6
105.0
100.0
95.0

94.4

91.5

Monthly Trends for Product Shipments

125.0

113.3

115.0

115.0

[All Stores Nationwide]

118.6

120.1

119.9
115.3

112.0
111.6 112.5
111.2 112.5

105.0

111.8

Mar.
3月

FY2021
2021年

Apr.
4月

94.2
May June
5月
6月

July
7月

FY2022
2022年

Aug.
Oct.
8月 Sept.
9月 10月

112.3

101.7

102.4
98.9

95.0
Nov. 12月
Dec. 1月
Jan. Feb.
11月
2月

113.6 115.3
112.7
111.5
110.8

110.5
113.1
110.0 111.1
110.0 110.3
110.3 110.3
109.3 108.6 108.3
108.3

100.0

90.0

116.6

113.2

Nov. 12月
Dec. 1月
Jan. Feb.
11月
2月

Mar.
3月

FY2021
2021年

2023年
FY2023

Apr.
4月

May
5月 June
6月

FY2022
2022年

July
7月 Aug.
8月 Sept.
9月 Oct.
10月
FY2023
2023年[Year-on-year % Changes in Product Shipments to Gyomu Super Stores]
FY2023
Nov.

Directly
managedareas
Nationwide

Existing
105.6
storesAll
112.1
storesAll
111.6
stores

Products shipments toexisting stores in
directly managed areasfor each quarter alone

Dec.

Jan.

Feb.

Mar.

Apr.

H1

May

June

July

107.2

103.9

106.8

103.2

106.8

105.6

110.5

105.6

110.3

Q1：105.7％

112.6

109.5

112.5

108.5

112.7

111.4

116.5

111.1

115.5

Q2：105.5％

112.5

109.3

112.0

108.3

111.8

111.0

116.6

110.3

115.3

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：11.2%
Imported：23.5%
33.01%

33.0%

33.12%
32.94%

32.75%

32.0%

1Q
2021年10月期
FY2021

2Q
2022年10月期
FY2022

3Q

4Q

Potato Salad

Mackerel Flakes
with Spicy Cod Roe

Natural Yeast
White Bread¥429 (500 g x 2)¥257 (1 bottle)¥284 (1 loaf)

French Mini
Croissants¥429 (240 g)

Broccoli◼ Import products

2023年10月期
FY2023◼

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

◼

Notably, the extreme heat has driven a surge indemand for beverages and other summer season items.

Tempe¥375 (450 g)¥181 (500 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.

◼

Various events held during the Golden Week holidays
and summer vacation helped attract more customers.

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

<Millions of yen>

Net Sales (cumulative)

8,000

Premium Karubi

Chisouna

Operating Profit (cumulative)

400

12.0%

300
200

6,000

4.7%

100
4,000

7,994

-308

1,520

1,911

FY19 Q3

FY20 Q3

-6.0%

-400

0

FY22 Q3

FY23 Q3

0.0%-11.7%-12.0%FY19 Q3

FY21 Q3

360

-2.0%

-1.3%

-300
2,632

-102

6.0%

72

-200

5,169

2,000

-24

0
-100

4.5%

FY20 Q3

FY21 Q3

営業利益
Operating profit

FY22 Q3

FY23 Q3

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.
9
Accordingly, the figures for these four years are not consistent with that for FY2019.

◤◤ Restaurant & Delicatessen Business
Kobe Cook World Buffet
Total Number of Restaurants: 14 (as of July 31, 2023)

Kobe Cook World Buffet opened 3 restaurants and closed none, resulting in a netincrease of 3 restaurants during FY2023 Q3 cumulative, and opened 1 restaurant andclosed none during FY2023 Q3 alone.
We enjoyed strong sales due to the growing demand from large party guests such as
tourist groups from abroad.

Getting back to the Founding Concept
July and August featured a marketing campaign with a tagline of “Enjoy foods & drinks fromaround the World.”
Taking advantage of a summer vacation season with no movement restrictions imposed for the

first time in three years, the campaign was intended to remind customers of World Buffet’s
founding concept: A restaurant offering more than 100 kinds of dishes from around the worldin the spacious restaurant without worrying about time. The campaign was well accepted, withthe highest number of customer visits during the summer vacation period since the outbreak of
the COVID-19.

Overview of FY2023 & Business Strategy
All our restaurants continue to see an increase in group demand thanks to a recovery in thenumber of tourists from home and abroad, recovering the number of customer visits steadily.
Sales, especially in Harborland Restaurant, are expected to exceed the pre-COVID-19 level.
Going forward, we continue to offer services that satisfy customers with the menu, volume offood and price unparalleled to any other restaurant chains.

Seasonal limited offer: “Enjoy foods &drinks from around the world”
10◤◤ Restaurant & Delicatessen BusinessPremium Karubi
Total Number of Restaurants: 19 (as of July 31, 2023)

Premium Karubi opened 3 restaurants and closed none, resulting in a net increase of 3 restaurants during
FY2023 Q3 cumulative, and did not open or close any restaurants during FY2023 Q3 alone.
The number of customer visits remained strong during the summer vacation despite a high traffic of people toevent venues following the lifting of movement restrictions.

Differentiation from Other Competitors

Grand Menu

What makes Premium Karubi different from other BBQ restaurants isthe best selected, perfectly aged meat and in-house made desserts
and gelatos. The restaurants offer new menus for each season sothat repeat customers can enjoy our meals. We ran a marketing

campaign titled “Italy Fair” from June to August.
Also, our dessert buffet uses seasonal ingredients every season. In
July and August, we offered summery gelatos featuring ramune soda
(Japanese lemonade) and watermelon flavors with popping candy,
which were well received by customers.

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

A new store is scheduled to open in Matsudo-shi, Chiba
in September.

Note: Menus may vary by restaurant and season.

11

◤◤ Restaurant & Delicatessen Business
Chisouna
Total Number of Shops: 102 (as of July 31, 2023)

Chisouna opened 17 shops and closed 2, resulting in a net increase of 15
shops during FY2023 Q3 cumulative, and opened 4 shops and closed none
during FY2023 Q3 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.

Recent Development
We introduced a new format in which a Chisouna section wasestablished in a drugstore in December 2022 with favorable
responses from franchisees and customers.
We are focusing on new dish development to satisfy diverse

customers.
As such, we continue to expand the number of shops without
limiting those established in Gyomu Super stores.

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 in part by the additionof a solar power plant in Nishigo-mura,Nishishirakawa-gun, Fukushima with a generation
capacity of approx. 18.9 MW, which started
operations in June 2022.
◼ Our solar power plants are going to generate a totalof 80 MW after a new plant in Miyagi with ageneration capacity of approx. 30 MW will start
operations in the fall of 2023.
<Millions of yen>

Net Sales (cumulative)

Construction Area B

Kobe Bussan’s Solar Power Plant(Photo: Higashimatsushima Power Plant
with a capacity of 30 MW,
which will start operations this fall)
Construction Area C<Millions of yen>

3,000

1,000

2,500

800

2,000

600

1,500
1,000

2,675
1,808

1,788

1,981

2,220

Operating Profit (cumulative)
27.2%

19.2%

19.3%

20.0%

16.4%
13.0%

297

233

726
380

427

5.0%
FY19 Q3

FY19 Q3

FY20 Q3

FY21 Q3

FY22 Q3

FY23 Q3

15.0%
10.0%

0

0

30.0%
25.0%

400
200

500

Construction Area A

FY20 Q3

FY21 Q3

営業利益
Operating profit

FY22 Q3

FY23 Q3

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

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

18 locations

51.0 MW

1 location

6.2 MW

Biomass:[Solar Power]
5 in Hokkaido
5.9 MW(as of July 31, 2023)[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<Yen>

Kobe Bussan regards returning profits to shareholders as one of key

Dividend per Share25

management issues. Our basic policy is to secure funds necessary forour business growth and distribute profits to shareholders according to20

the operating results.

21.5%

17.8%

22.1%

23.1%

23.0%

20%

15

For FY2022, we paid the annual year-end dividends of ¥22.00 per share,up ¥1.00 from the initial forecast of ¥21.00.

15%

10
5

For FY2023, we plan to pay the annual dividends of ¥22.00 per share.

0
Note: The figures in the graph on the right have been adjusted for the effect of

25%

20.00

22.00

22.00

15.00

5%

10.00
FY20192019年

the 2-for-1 stock splits carried out in November 2019, and November

FY2021
FY20202020年
2021年
Dividend per share
1株当たり配当金10%

FY2023
FY2022
2022年
2023年予想
TargetPayout ratio
配当性向(連結)

0%

2020.

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

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

Sample15

◤◤ Consolidated Financial Forecast
FY2023 Forecast
Q3 actual(Millions of yen)

Full-year forecast

Progress towards
Full-year forecast

Net sales

338,767

440,000

77.0%

Operating profit

23,27829,70078.4%

Profit attributable toowners of parent

15,59021,20073.5%[Note]
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 FY2023 Forecast
FY2023 target

Action plan

Target ofstore openings

Net increase of
40 stores

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

Product
development

Rise in PB ratio

Focus on private label products developed by our groupplants and those imported directly by ourselves.
16• This material contains forward-looking statements based onassumptions, estimates, and plans as of September 12, 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
17