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, 2023
(Under Japanese GAAP)
March 14, 2023
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, 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 three months ended January 31, 2023 (from November 1, 2022 to January 31, 2023)(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, 2023
107,94211.5
6,338(14.9)
2,118 (72.2)
1,348(73.7)
January 31, 2022
96,809
13.8
7,446
5.9
7,629
8.7
5,121
11.4
Note: Comprehensive income
For the three months ended January 31, 2023: ¥1,322 million [(74.9) %]For the three months ended January 31, 2022: ¥5,261 million [13.7%]
Basic earnings
per share
Three months ended
January 31, 2023
January 31, 2022

Yen
6.15
23.48

Diluted earnings
per share
Yen
6.07
23.07

(2) Consolidated financial position
Total assets
Net assets
Equity ratio
As ofMillions of yen
Millions of yen%
January 31, 2023
180,767
94,04450.7
October 31, 2022
180,275
97,22052.7
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of January 31, 2023: ¥91,698 million
As of October 31, 2022: ¥94,990 million
2.

Net assets per shareYen
418.12433.53

Cash DividendsFirstquarter-end
Yen––

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Yen
Yen
Yen
0.00
–
22.00

Fiscal year
Ended October 31, 2022
Ending October 31, 2023
Ending October 31, 2023 (Forecast)
0.00
Note: Revisions to cash dividend forecast published most recently: None

–

22.00

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): 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(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, 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 January 31, 2023:
54,288,520 shares
As of October 31, 2022:
54,490,520 shares(iii) Average number of shares of common shares outstanding during the period
Three months ended January 31, 2023:
219,195,680 shares
Three months ended January 31, 2022:
218,128,928 shares
Note:

The number of shares of Kobe Bussan (168,400 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 January 31, 2023.
Also, the number of shares of Kobe Bussan held by Custody Bank of Japan, Ltd. (“Trust Account”) was included in thenumber of shares of treasury shares to be deducted from the calculation of the average number of shares of commonshares outstanding for the three months ended January 31, 2022 and the three months ended January 31, 2023 (176,000
shares for the three months ended January 31, 2022 and 168,400 shares for the three months ended January 31, 2023).

* 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.

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
(Subsequent events) ···················································································································· P. 8
(Segment information) ················································································································· P. 9

- 1 -

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly operating results
During the three months ended January 31, 2023 (from November 1, 2022 to January 31, 2023) (hereinafter the “period underreview”), the Japanese economy began to show signs of gradual recovery as the easing of movement and immigration
restrictions due to COVID-19 resulted in increased traffic. Nevertheless, the future economic situation has still remained
unclear due to the prolonged Russian-Ukraine situation and soaring costs of raw materials and energy, as well as sharp
fluctuations in foreign exchange rates.
As a savings-oriented attitude of consumers is prevailing, players in the food retail industry are hard-pressed to deal with suchcost rises.
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 ¥107,942 million (up 11.5%
year on year), operating profit of ¥6,338million (down 14.9%), ordinary profit of ¥2,118 million (down 72.2%), and profit
attributable to owners of parent of ¥1,348 million (down 73.7%).
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 1,012 stores as a result of a net increase of five stores after opening seven stores and closing two.
The breakdown of new store openings was five stores in directly managed areas and two 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. Our franchisees
remain keen to open new stores and some of them are strongly encouraged to relocate stores whose facilities havedeteriorated over many years in service.
In terms of operating results, we have continued expanding business performance. This is because we have overcome adecline in profit margin due to the rise in purchase costs caused by the sharp fluctuations in foreign exchange rates andprice hikes 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 ¥104,818 million (up 10.8% 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 one restaurant and closed none, resulting in 12 restaurants
nationwide. The number of customer visits to the restaurants has gradually recovered partly due to the reopening of one
restaurant after renovation and menu changes. Premium Karubi opened one restaurant and closed none, resulting in 17
restaurants nationwide. Each restaurant performed well by continuing to attract more customers. Accordingly, theexpansion of the business scale through an increase in the number of restaurants helped operations become more efficient.
Chisouna opened five shops and closed none, resulting in 92 shops nationwide. Net sales expanded thanks to a variety offoods that caters to customers’ needs and the significantly increased number of shops.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥2,417 million (up51.8% year on year).

- 2 -(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, resulting in a year-on-year increase by one solar power plant. 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 ¥702 million (up10.4% year on year).

(2) Overview of quarterly financial position(Assets)
Total assets as of January 31, 2023 increased by ¥491 million from the end of the previous fiscal year to ¥180,767 million.
This was mainly due to an increase in non-current assets of ¥312 million. This increase was mostly attributable to an increasein property, plant and equipment of ¥683 million resulting from the facility enhancement of our group’s domestic plants.
(Liabilities)
Total liabilities as of January 31, 2023 increased by ¥3,668 million from the end of the previous fiscal year to ¥86,723
million. This was mainly due to an increase in non-current liabilities of ¥12,918 million, partially offset by a decrease incurrent liabilities of ¥9,249 million.
The decrease in current liabilities was mainly attributable to decreases in accounts payables - trade of ¥5,313 million andincome taxes payable of ¥5,444 million.
The increase in non-current liabilities was mainly attributable to an increase in long-term borrowings of ¥11,534 million
resulting from new borrowings for a reason already mentioned above.
(Net assets)
Total net assets as of January 31, 2023 decreased by ¥3,176 million from the end of the previous fiscal year to ¥94,044
million. This was mainly due to a decrease in retained earnings of ¥3,475 million resulting from payment of dividends.

(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 January 31, 2023)

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

67,04070,875

Accounts receivable - trade

23,24920,472

Securities

2,000

2,000

Merchandise and finished goods

17,495

16,779435

410

Raw materials and supplies

1,798

2,056

Other

3,995

3,589

(2)

(13)

116,011116,190

Buildings and structures, net

16,001

16,118

Machinery, equipment and vehicles, net

17,79917,781

Land

16,43016,594

Other, net

7,880

8,301

Total property, plant and equipment

Work in process

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

58,112

58,796

Intangible assets

1,041

1,118

Investments and other assets

5,109

4,661

Total non-current assets

64,26364,576180,275

180,767

Accounts payable - trade29,16723,853

Short-term borrowings

8,217

7,912

Income taxes payable

6,026

581

Total assets
Liabilities
Current liabilities:

Provision for bonuses

414

235

Other

4,162

6,155

Total current liabilities

47,987

38,73726,31737,852Retirement benefit liability

650

665

Guarantee deposits received

7,167

7,360

528

528

81

87

322

1,491

35,06747,98583,05586,723

Non-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 January 31, 2023)

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

500

500

Capital surplus

10,466

10,643Retained earnings

93,061

89,586

Treasury shares(8,953)(8,920)Total shareholders’ equity

95,074(91,808)

Valuation difference on available-for-sale securities

(3)

59

Foreign currency translation adjustment

(80)

(169)

Total accumulated other comprehensive income

(84)

(110)

Share acquisition rights

2,229

2,345

Total net assets

97,22094,044

180,275

180,767

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 three months ended
January 31, 2022
(From November 1, 2021
to January 31, 2022)
96,809(Millions of yen)
For the three months ended
January 31, 2023
(From November 1, 2022
to January 31, 2023)
107,942

Cost of sales

85,02896,681Gross profit

11,781

11,261

Selling, general and administrative expenses

4,335

4,922

Operating profit

7,446

6,338

Interest income

20

88

Dividend income

00

Rental income

63

12

Subsidy income

84

23

Foreign exchange gain

8

–

Other

66

68

Total non-operating income

242

192

Interest expenses

18

16

Foreign exchange losses－

787

Rental costs

78

Fuel sale costs

18

20

Loss on valuation of derivatives

7

3,576

Provision of allowance for doubtful accounts

－

0

Other

7

2

Total non-operating expenses

59

4,412

7,629

2,118

Gain on sale of non-current assets

60Gain on reversal of share acquisition rights

5–

Total extraordinary income

110Loss on retirement of non-current assets

1

1

Loss on sale of investment securities

50–

Total extraordinary losses

51

1Profit before income taxes

7,589

2,117

Income taxes - current

2,463

473

Income taxes - deferred

5295

Total income taxes

2,468

768

Profit

5,121

1,348

Profit attributable to owners of parent

5,121

1,348

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, 2022
(From November 1, 2021
to January 31, 2022)
5,121(Millions of yen)
For the three months ended
January 31, 2023
(From November 1, 2022
to January 31, 2023)
1,348

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

(141)

63

Foreign currency translation adjustment

282

(89)

Total other comprehensive income

140

(26)

5,261

1,322

5,261

1,322

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 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.
(Subsequent events)(Completion of liquidation of consolidated subsidiaries)
The Company completed liquidating its consolidated subsidiaries, KB Global Partners, Inc. and J.J. Dining, Inc. on
February 11, 2023, and Kobe Bussan USA, Inc. on February 13, 2023.
1. Reason for dissolution and liquidation
The Company established Kobe Bussan USA, Inc., KB Global Partners, Inc., and J.J. Dining, Inc. to operate restaurant
business in the United States. However, it dissolved and liquidated them as it had suspended the operations since 2018
in view of their profitability.
2. Outline of consolidated subsidiaries
Name
Line of business
Shareholder and shareholding ratio

Kobe Bussan USA, Inc.
International restaurant business
Kobe Bussan 100%

Name
Line of business
Shareholder and shareholding ratio

KB Global Partners, Inc.
International wholesale business
Kobe Bussan 100%

Name
Line of business
Shareholder and shareholding ratio

J.J. Dining, Inc.
International restaurant business
Kobe Bussan 100%

3. Date of completion of the liquidation
February 11, 2023

KB Global Partners, Inc.
J.J. Dining, Inc.

February 13, 2023

Kobe Bussan USA, Inc.

4. Impact of the dissolution and liquidation on the Group’s profit or loss
This dissolution and liquidation have a minimal effect on the Group’s profit or loss.
5. Impact of the dissolution and liquidation on the Group operating activities
This dissolution and liquidation have a minimal effect on our operating activities.

-8-

(Segment information)
I. 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) 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)

96,809Segment
8,408
(62)
60
8,406
(16)
8,390
(943)
7,446
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 ¥(943) 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.

-9-II. For the three months ended January 31, 2023 (from November 1, 2022 to January 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

103,901

2,398– 106,299

4 106,304–

106,304

–

1,638

–

1,638

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

917

19

104,8182,417

702 107,938

4 107,942–

107,942

104,8182,417

702 107,938

4 107,942–

107,942Intersegment
sales or transfers

1,097

59

1,156

(1,156)–

Total

105,9152,477

4 109,099(1,156)

107,942

702

–

1,638

1,156

702 109,095–

Segment
7,306
17
44
7,368
(21)
7,347
(1,008)
6,338
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 ¥(1,008) 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 -