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, 2022
(Under Japanese GAAP)
September 12, 2022
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, 2022
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, 2022 (from November 1, 2021 to July 31, 2022)(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, 2022
300,016
12.2
21,847
2.9
23,638
6.5
15,932
7.1
July 31, 2021
267,374
3.1
21,22813.7
22,20520.1
14,88327.7
Note: Comprehensive income
For the nine months ended July 31, 2022: ¥16,643 million [7.8%]
For the nine months ended July 31, 2021: ¥15,439 million [41.7%]
Basic earnings
per share
Nine months ended
July 31, 2022
July 31, 2021

Yen
72.97
68.83

Diluted earnings
per share
Yen
71.81
67.29

(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
July 31, 2022
173,318
91,510
October 31, 2021
156,737
78,218Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of July 31, 2022:¥89,332 million
As of October 31, 2021: ¥76,411 million
2.

Equity ratio
%
51.5
48.8

Net assets per shareYen
408.59350.49Cash Dividends

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Fiscal year
Yen
Yen
Yen
Ended October 31, 2021
0.00
–
20.00
Ending October 31, 2022
0.00–
Ending October 31, 2022 (Forecast)
21.00
Note: Revisions to cash dividend forecast published most recently: NoneFirst
quarter-end
Yen
–
–

Total
Yen
20.00
21.00

Consolidated financial forecast for the fiscal year ending October 31, 2022 (from November 1, 2021 to October 31, 2022)(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
380,000
5.0
28,800
5.4
29,2000.4
19,8001.1
91.44
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: 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, 2022:
273,600,000 shares
As of October 31, 2021:
273,600,000 shares(ii) Number of shares of treasury shares at the end of the period
As of July 31, 2022:
54,961,720 shares
As of October 31, 2021:
55,587,320 shares(iii) Average number of shares of common shares outstanding during the period
Nine months ended July 31, 2022:
218,355,926 shares
Nine months ended July 31, 2021:
216,230,356 shares
Note:

The number of shares of Kobe Bussan held by Custody Bank of Japan, Ltd. (“Trust Account”) as trust property for a
Board Benefit Trust (176,000 shares for the nine months ended July 31, 2021 and 168,400 shares for the nine months
ended July 31, 2022) was included in the number of shares of treasury shares as of October 31, 2021 and July 31, 2022,
and the number of shares of treasury shares to be deducted from the calculation of the average number of shares ofcommon shares outstanding for the nine months ended July 31, 2021 and 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. 8

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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, 2022 (from November 1, 2021 to July 31, 2022) (hereinafter the “period underreview”), Japan lifted movement restrictions and was gradually resuming its economic activities thanks to expandedvaccination and testing capabilities as well as improved medical delivery system in spite of the rebound of COVID-19.
Meanwhile, various costs were sharply rising partly due to poor harvests caused by droughts around the world, restrictions onimport and export of grains and energy resources against the backdrop of the Russian invasion of Ukraine, and the rapidly
weakening yen triggered by the interest rate increase in the United States.
As a savings-oriented attitude of consumers is still prevailing, players in the food retail industry are hard-pressed to deal with
the impact of such cost rises on their operating results.
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 provided consumers with high-quality and attractive products at best prices by being
attentive and responsive to their needs.
Consequently, in terms of operating results for the period under review, we reported net sales of ¥300,016 million (up 12.2%
year on year), operating profit of ¥21,847 million (up 2.9%), ordinary profit of ¥23,638 million (up 6.5%), and profit
attributable to owners of parent of ¥15,932 million (up 7.1%).
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 979 stores as a result of a net increase of 29 stores after opening 48 stores and closing 19.
The breakdown of new store openings was 35 stores in directly managed areas and 13 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, and strongly
encourage franchise owners to relocate stores which have deteriorated after many years in operations.
In terms of operating results, we have overcome the rise in purchase costs due to price increases and continued to expand
business performance, through a successfully implemented pricing strategy and a significantly increased mass and social
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 ¥292,602 million (up 11.4% 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 focusing on health-conscious food made with minimal
additives and preservatives at affordable prices, based on the philosophy of providing an authentic Japanese dining
experience with fresh homemade food.
In the period under review, Kobe Cook World Buffet opened one and closed seven restaurants, resulting in nine restaurants
nationwide. Although the certain restaurants closed down because of the COVID-19 infections, the number of customer
visits to the restaurants has gradually recovered partly due to the reopening of one restaurant after renovation and menuchanges. Premium Karubi opened five restaurants and closed none, resulting in 15 restaurants nationwide. Each restaurant
performed well by continuing to attract more customers. Accordingly, the expansion of the business scale through anincrease in the number of restaurants helped operations become more efficient. Chisouna opened 24 shops and closed none,
resulting in 73 shops nationwide. Net sales expanded thanks to an increase in Gyomu Super customers, the implementationof measures to prevent the COVID-19 infections at shops, and the significantly increased number of shops.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥5,169 million (up96.4% year on year).
-2-

(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. During theperiod under review, we newly opened one solar power plant in Nishigo-mura, Nishishirakawa-gun, Fukushima. 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 ¥2,220 million (up12.0% year on year).

(2) Overview of quarterly consolidated financial position
Assets, liabilities, and net assets(Assets)
Total assets as of July 31, 2022 increased by ¥16,581 million from the end of the previous fiscal year to ¥173,318 million.
This was mainly due to an increase in current assets of ¥13,808 million, which was mostly attributable to an increase in cash
and deposits of ¥8,060 million resulting from new borrowings for the facility enhancement of our group’s domestic plants.
(Liabilities)
Total liabilities as of July 31, 2022 increased by ¥3,289 million from the end of the previous fiscal year to ¥81,808 million.
This was mainly due to an increase in long-term borrowings of ¥10,148 million resulting from new borrowings for thereason mentioned above, partially offset by a decrease in short-term borrowings of ¥6,452 million resulting from repayment
in part of the outstanding borrowings.
(Net assets)
Total net assets as of July 31, 2022 increased by ¥13,291 million from the end of the previous fiscal year to ¥91,510 million.
This was mainly due to an increase in retained earnings of ¥11,568 million.

(3) Overview of forward-looking statements including consolidated financial forecast
It remains unchanged from our financial forecast published on December 14, 2021.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Millions of yen)
Current quarter(As of July 31, 2022)

Previous fiscal year
(As of October 31, 2021)
AssetsCurrent assets:
Cash and deposits

57,79965,860Notes and accounts receivable - trade

19,837

20,818

Securities

–

2,000

12,817

14,466353

397

Raw materials and supplies

1,493

1,784

Other

3,576

4,347

Allowance for doubtful accounts

(15)

(2)

95,862

109,671

15,534

16,251

Machinery, equipment and vehicles, net

14,56418,093Land

13,35016,024

Other, net

11,043

7,432

Total property, plant and equipment

54,49357,801884

1,017

Investments and other assets

5,496

4,828

Total non-current assets

60,874

63,647

156,737

173,318

Merchandise and finished goods
Work in process

Total current assets
Non-current assets:
Property, plant and equipment:
Buildings and structures, net

Intangible assets

Total assets-4-

(Millions of yen)Previous fiscal year
(As of October 31, 2021)

Current quarter(As of July 31, 2022)

Liabilities
Current liabilities:
Accounts payable - trade25,15826,529

Short-term borrowings

15,155

8,702

Income taxes payable

5,194

3,279

Provision for bonuses

354

195

Other

5,184

4,856

Total current liabilities

51,04743,564

19,53429,683Retirement benefit liability

713

757

Guarantee deposits received

6,512

6,879

465

519

58

71

186

333

27,471

38,24478,51881,808Non-current liabilities:
Long-term borrowings

Asset retirement obligations
Provision for share awards for directors(and other officers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:
Share capital

500

500

Capital surplus

9,581

10,118Retained earnings

76,592

88,161

Treasury shares(9,135)(9,030)Total shareholders’ equity

77,53989,75062(16)Foreign currency translation adjustment(1,190)(400)

Total accumulated other comprehensive income(1,127)(417)

Share acquisition rights

1,807

2,177

Total net assets

78,21891,510156,737

173,318

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

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, 2021
(From November 1, 2020
to July 31, 2021)
267,374(Millions of yen)
For the nine months ended
July 31, 2022
(From November 1, 2021
to July 31, 2022)
300,016

Cost of sales

234,963

264,532

Gross profit

32,41035,484

Selling, general and administrative expenses

11,181

13,636

Operating profit

21,22821,847

Interest income

7899

Dividend income

09

Rental income

45

188

Foreign exchange gain

512

1,401

Gain on valuation of derivatives

135–

Subsidy income

202

311

Other

243

305

1,218

2,315

Interest expenses

137

65

Rental costs

22

24

Fuel sale costs

45

58

Loss on valuation of derivatives–

367

Provision of allowance for doubtful accounts

14

–

Other

21

9

Total non-operating expenses

241

525

22,20523,638Gain on sale of non-current assets

2

6Gain on reversal of share acquisition rights–

7

Total extraordinary income

2

13

Loss on retirement of non-current assets

29

25

Loss on sale of non-current assets

127

4

Loss on sale of investment securities

–

50

156

81

Profit before income taxes

22,051

23,570

Income taxes - current

6,669

7,578

Income taxes - deferred

498

59

Total income taxes

7,168

7,638

Profit14,883

15,932

Profit attributable to owners of parent

14,883

15,932Non-operating income:

Total non-operating income
Non-operating expenses:

Ordinary profit
Extraordinary income:Extraordinary losses:

Total extraordinary losses-6-Quarterly consolidated statements of comprehensive income

Profit

For the nine months ended
July 31, 2021
(From November 1, 2020
to July 31, 2021)
14,883(Millions of yen)
For the nine months ended
July 31, 2022
(From November 1, 2021
to July 31, 2022)
15,932Other comprehensive income:
Valuation difference on available-for-sale securities

116

(78)

Foreign currency translation adjustment

439

789

Total other comprehensive income

556

710

15,43916,643

15,43916,643Comprehensive 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 Revenue Recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)
and the Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, March
26, 2021) since the beginning of the first quarter of this fiscal year. In accordance with theses accounting policies, whencontrol over the promised goods or services are transferred to the customer, revenue will be recognized at the amount
expected to be received in exchange for the said goods or services.
In applying the Accounting Standard for Revenue Recognition and other standards, the Company has added or
subtracted the cumulative effect of applying the new accounting policy retrospectively to or from retained earnings at
the beginning of the first quarter of this fiscal year and applied the new accounting policy from the restated balance
pursuant to the transitional treatment set forth in the proviso of paragraph 84 of the Accounting Standard for Revenue
Recognition.
This change in accounting polices has a minimal effect on the quarterly consolidated financial statements.
Moreover, in accordance with the transitional treatment set forth in paragraph 28-15 of the Accounting Standard for
Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), disaggregated revenue from contracts withcustomers has not been presented for the nine months ended July 31, 2021.
(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No.30; July 4, 2019;
hereinafter, the “Fair Value Accounting Standards”) and other standards since the beginning of the first quarter of thisfiscal year. In accordance with the transitional treatment set forth in paragraph 19 of the Fair Value AccountingStandards and paragraph 44–2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4,2019), the Company has applied the new accounting policies set forth by the Fair Value Accounting Standards andothers prospectively. There is no effect on the quarterly consolidated financial statements by applying the standard.
(Segment information)
I. For the nine months ended July 31, 2021 (from November 1, 2020 to July 31, 2021)
1. Information on amounts of net sales and profit (loss) by reportable segment(Millions of yen)
Gyomu
Super
Business
Net sales
Sales toexternal customers

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment Consolidated*2*3

262,749

2,632

1,981

267,36410

267,374–

267,374

Intersegment
sales or transfers

1,192

107

–

1,300

–

1,300

(1,300)–

Total

263,942

2,740

1,981

268,66410

268,674(1,300)267,374

23,925(308)

380

23,997(61)

23,935(2,707)

21,228Segment
profit (loss)
*1
*2

*3

The Other businesses are those not classified into any reportable segment, including the tourism business.
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 ¥(2,707) million is corporate expenses unallocated to eachreportable segment. The expenses are general and administrative expenses unattributable to any reportablesegments.
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.
Not applicable.

-8-II. 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) 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

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

24,432(102)

427

24,757(33)

24,724(2,876)

21,847

Segment
profit (loss)
*1
*2

*3
*4

The Other businesses are those not classified into any reportable segment, including the tourism business.
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.
Segment profit (loss) is adjusted with operating income reported on quarterly consolidated statements of income.
The revenue recognition method is as described in “Changes in accounting policies” in the Notes.

2. Matters related to changes in segment reportingAs described in “Changes in accounting policies,” the method of accounting for revenue recognition was changed byapplying the Revenue Recognition Standard, etc. from the beginning of the first quarter of this fiscal year. Accordingly,
the method of measuring segment profit or loss was changed.
This change has a minimal effect on “Sales to external customers” and “Segment profit (loss)” of each reportable segment
for the nine months ended July 31, 2022.
3. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment.
Not applicable.

-9-