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 Three Months Ended January 31, 2022
(Under Japanese GAAP)
March 14, 2022
Company name: Kobe Bussan Co., Ltd.
Listing:
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:
March 15, 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 three months ended January 31, 2022 (from November 1, 2021 to January 31, 2022)(1) Consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
January 31, 2022
96,809
13.8
7,446
5.9
7,629
8.7
5,121
11.4
January 31, 2021
85,045
4.2
7,034
24.9
7,019
22.0
4,598
29.2
Note: Comprehensive income
For the three months ended January 31, 2022: ¥5,261 million [13.7%]
For the three months ended January 31, 2021: ¥4,626 million [22.6%]
Basic earnings
per share
Three months ended
January 31, 2022
January 31, 2021

Yen
23.48
21.29

Diluted earnings
per share
Yen
23.07
20.80

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
January 31, 2022
163,90279,49747.3
October 31, 2021
156,737
78,21848.8
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of January 31, 2022: ¥77,580 million
As of October 31, 2021: ¥76,411 million
2.

Net assets per shareYen
355.44350.49Cash DividendsFirstquarter-end
Yen––

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Yen
Yen
Yen
0.00
–
20.00

Fiscal year
Ended October 31, 2021
Ending October 31, 2022
Ending October 31, 2022 (Forecast)
0.00
Note: Revisions to cash dividend forecast published most recently: None

–

21.00

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 January 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 January 31, 2022:
55,333,320 shares
As of October 31, 2021:
55,587,320 shares(iii) Average number of shares of common shares outstanding during the period
Three months ended January 31, 2022:
218,128,928 shares
Three months ended January 31, 2021:
216,018,209 shares
Note:

The number of shares of Kobe Bussan (176,000 shares) held by Custody Bank of Japan, Ltd. (“Trust Account”) as trust
property for a Board Benefit Trust was included in the number of shares of treasury shares as of October 31, 2021 andJanuary 31, 2022, which was to be deducted from the calculation of the number of shares of treasury shares as of such
periods, and the average number of shares of common shares outstanding for the three months ended January 31, 2021
and the three months ended January 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 operating results ······························································································· P. 2
(2) Overview of quarterly 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

-1-

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly operating results
During the three months ended January 31, 2022 (from November 1, 2021 to January 31, 2022) (hereinafter the “period underreview”), Japan’s economy temporarily showed a recovery trend of consumer spending primarily due to the cancellation of thedeclaration of a state of emergency following the end of the fifth wave of COVID-19. However, the economic situation has
remained unstable since early in the new year, as demonstrated by the re-request for the restaurant industry to shorten opening
hours following the spread of the Omicron variant of COVID-19. In addition, a spate of price increases was observed due to a
prolonged supply bottleneck caused by an increase in global demand for raw materials, the weakening of yen, and a surge inprices of ocean freights and crude oil.
In Japan’s food retail industry, players in other industries such as e-commerce operators and drugstore chains have expanded
the sale of food products. To meet diversified consumption patterns, the players launched producing meal kits and frozen foods
and providing food delivery service for restaurants. Such businesses have accelerated the growth of the home cooking market
and the home meal replacement market. Additionally, the environment surrounding, and what consumers require of, the foodretail industry keep changing because the spread of COVID-19 has forced people to work at home and restaurant operators to
implement measures against the infections.
Under such circumstances, our private label products delivered through “Integrated Food Production & Distribution
Operations” were frequently featured on television, magazines, newspapers, and social media, thereby boosting the number ofcustomer visits to Gyomu Super stores. Besides, our pricing strategy in Gyomu Super has paid off with continued steady
growth of the existing stores.
Consequently, in terms of operating results for the period under review, we reported net sales of ¥96,809 million (up 13.8%
year on year), operating profit of ¥7,446 million (up 5.9%), ordinary profit of ¥7,629 million (up 8.7%), and profit attributableto owners of parent of ¥5,121 million (up 11.4%).
The operating results by business segment are as follows:(i) Gyomu Super BusinessThis business segment covers Gyomu Super stores, selling at best prices not only national label products but also private
label products that are imported directly by ourselves or produced by our group’s domestic plants. In the period underreview, Gyomu Super stores have expanded nationwide with 956 stores as a result of a net increase of six stores after
opening 19 stores and closing 13.
The breakdown of new store openings was 14 stores in directly managed areas and five 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 product strategies, we continued to focus on strengthening facilities of our group’s plants and enhancing imported
products as well as providing customers with national brand products with high-cost performance. Such products that meet
diverse customer needs were frequently featured on television, magazines, newspapers, and social media, contributing to
attracting more customers. In addition, with successful pricing strategy against a backdrop of soaring prices of raw
materials, we have grown our businesses favorably.
Consequently, net sales of the Gyomu Super Business for the period under review stood at ¥94,579 million (up 13.0% 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 none and closed seven restaurants, resulting in eightrestaurants nationwide. The certain restaurants temporarily closed or shortened opening hours to prevent the COVID-19
infections. Premium Karubi opened two restaurants and closed none, resulting in 12 restaurants nationwide. Given an
increase in the number of the restaurants and BBQ popularity, Premium Karubi has only a limited effect on net sales from-2-

COVID-19. Chisouna opened eight shops and closed none, resulting in 57 shops nationwide. It remained positive due to an
improved brand recognition through increased exposure to media as well as strong shop openings.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥1,592 million (up112.2% 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 Misaki-cho, Sennan-gun,Osaka in May 2021, resulting in a year-on-year increase by one solar power plant. Currently, we operate 17 solar power
plants collectively generating approximately 32.1 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 ¥636 million (up 9.5%
year on year).

(2) Overview of quarterly financial position(Assets)
Total assets as of January 31, 2022 increased by ¥7,164 million from the end of the previous fiscal year to ¥163,902 million.
This was mainly due to an increase in current assets of ¥6,438 million, which was mostly attributable to an increase in cash
and deposits of ¥7,472 million resulting from new borrowings for the facility enhancement of our group’s domestic plants.
(Liabilities)
Total liabilities as of January 31, 2022 increased by ¥5,885 million from the end of the previous fiscal year to ¥84,404
million. This was mainly due to an increase in non-current liabilities of ¥14,407 million, partially offset by a decrease incurrent liabilities of ¥8,521 million.
The decrease in current liabilities was mainly attributable to decreases in accounts payables - trade of ¥3,830 million andincome taxes payable of ¥2,610 million.
The increase in non-current liabilities was mainly attributable to an increase in long-term borrowings of ¥14,229 million
resulting from new borrowings for a reason already mentioned above.
(Net assets)
Total net assets as of January 31, 2022 increased by ¥1,278 million from the end of the previous fiscal year to ¥79,497
million. This was mainly due to an increase in retained earnings of ¥757 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 January 31, 2022)

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

57,79965,272

Notes and accounts receivable - trade

19,83718,280

Merchandise and finished goods

12,817

13,182353

345

Raw materials and supplies

1,493

1,843

Other

3,576

3,384

Allowance for doubtful accounts

(15)

(6)

95,862

102,301

Buildings and structures, net

15,534

15,882

Land

13,35013,264

Other, net

25,607

26,582

Total property, plant and equipment

54,49355,729884

887

Investments and other assets

5,496

4,982

Total non-current assets

60,87461,600156,737

163,902

Work in process

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

Intangible assets

Total assets-4-

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

Current quarter(As of January 31, 2022)

Liabilities
Current liabilities:
Accounts payable - trade25,15821,327

Short-term borrowings

15,155

14,224

Income taxes payable

5,194

2,583

Provision for bonuses

354

189

Other

5,184

4,201

Total current liabilities

51,04742,525

19,53433,764Retirement benefit liability

713

723

Guarantee deposits received

6,512

6,643

465

483

58

63

186

199

27,471

41,87878,51884,404Non-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

9,810

Retained earnings

76,59277,350Treasury shares(9,135)(9,093)

Total shareholders’ equity

77,53978,56762(79)

Foreign currency translation adjustment(1,190)(907)

Total accumulated other comprehensive income(1,127)(986)

Share acquisition rights

1,807

1,917

Total net assets

78,21879,497

156,737

163,902

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 three months ended
January 31, 2021
(From November 1, 2020
to January 31, 2021)
85,045(Millions of yen)
For the three months ended
January 31, 2022
(From November 1, 2021
to January 31, 2022)
96,809

Cost of sales

74,60085,028Gross profit

10,444

11,781

Selling, general and administrative expenses

3,410

4,335

Operating profit

7,034

7,446

Interest income

32

20

Dividend income

00

Rental income

1863

Subsidy income

1784

Foreign exchange gain

–

8

Other

57

66

Total non-operating income

125

242

Interest expenses

52

18

Foreign exchange losses

22–

Rental costs

7

7

Fuel sale costs

13

18

Loss on valuation of derivatives

15

7

Provision of allowance for doubtful accounts

13

–

Other

16

7

Total non-operating expenses

141

59

7,019

7,629

Gain on sale of non-current assets

06Gain on reversal of share acquisition rights–

5

Total extraordinary income

011

Loss on retirement of non-current assets

2

1

Loss on sale of non-current assets

5–

Loss on sale of investment securities–

50

Total extraordinary losses

851

Profit before income taxes

7,011

7,589

Income taxes - current

1,949

2,463

Income taxes - deferred

463

5

Total income taxes

2,413

2,468

Profit

4,598

5,121

Profit attributable to owners of parent

4,598

5,121

Non-operating income:Non-operating expenses:

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

Profit

For the three months ended
January 31, 2021
(From November 1, 2020
to January 31, 2021)
4,598(Millions of yen)
For the three months ended
January 31, 2022
(From November 1, 2021
to January 31, 2022)
5,121

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

(57)

(141)

Foreign currency translation adjustment

85

282

Total other comprehensive income

27

140

4,626

5,261

4,626

5,261

Comprehensive 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 fiscal quarter of this fiscal year. In accordance with theses accounting policies,
when control over the promised goods or services are transferred to the customer, revenue will be recognized at theamount 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 fiscal 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 first quarter of the previous fiscal year.
(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 three months ended January 31, 2021 (from November 1, 2020 to January 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

83,709750

581

85,041

4

85,045–85,045Intersegment
sales or transfers

353

35

–

389

–

389

(389)

–

Total

84,063786

581

85,431

4

85,435(389)

85,045

7,853

(46)

89

7,896

(15)

7,880

(846)

7,034

Segment
profit (loss)
*1
*2

*3

The Other businesses are those not classified into any reportable segment, including the rental facilities business andthe 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 ¥(846) 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.
(Significant impairment losses related to non-current assets)
Not applicable.

-8-II. For the three months ended January 31, 2022 (from November 1, 2021 to January 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

93,754

1,581–

95,335

1

95,337–

95,337

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

824

10

636

1,472

–

1,472

–

1,472

94,5791,592

636

96,8081

96,809–96,80994,5791,592

636

96,8081

96,809–96,809Intersegment
sales or transfers

686

33

–

719

–

719

(719)

–

Total

95,265

1,625

636

97,527

1

97,529(719)

96,809

8,408

(62)

60

8,406

(16)

8,390

(943)

7,446

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 ¥(943) 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 first quarter of this fiscal year.
3. 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-