Supplementary Material for

FY2021 Q1 Financial Results

March 15, 2021

◤◤ Contents⚫ Consolidated Financial Highlights

1⚫ Gyomu Super Business3⚫ Changes in Total Number of Gyomu Super Stores

４⚫ Changes in Product Shipments to Gyomu Super Stores

５⚫ Kobe Bussan’s Strengths: “Unique Products with Competitive Advantages”

６⚫ Restaurant & Deli Business７⚫ Eco Renewable Energy Business11⚫ Dividends

13⚫ Consolidated Financial Forecast

14⚫ Medium-term Business Plan

15◤◤ Consolidated Financial Highlights
Net Sales<Millions of yen>

Gross Profit<Millions of yen>

90,00015,00085,00016.5%

13,000

20.0%

15.3%

15.3%

15.9%
16.0%

12.3%
80,00011,00075,00085,045

81,59770,000

9,000
7,000

65,00062,122

67,227

FY19 Q1

FY20 Q1

FY21 Q1

SG&A Expenses
15.0%

10.7%

6,000

6,652

9.6%

9.3%

6,457

6,596

9.0%

7,346

3,000

10.0%

FY17 Q1

FY18 Q1

FY19 Q1

4.0%

2,000

5.0%

4.0%
0.0%

Gross
profit
売上総利益

FY19 Q1

販売管理費
SG&A
expenses

FY20 Q1
売上高販管費率
SG&A
ratio

FY20 Q1

6,000

FY21 Q1

Gross margin
売上高総利益率

Operating Profit

8,000

8.3%

5.8%

10.0%
8.0%

6.9%
6.0%

5.7%

6.0%

FY21 Q1

7,034

4,000
3,000

0.0%
FY18 Q1

10,444

5,000

3,410
FY17 Q1

10,816

7,000

5,000
4,000

10,256<Millions of yen>

8,000

7,000

10,2445,000

FY18 Q1<Millions of yen>

8.0%

12,98070,63660,000
FY17 Q1

12.0%

4.0%

5,634
3,592

2.0%

4,219

3,799

2,000

0.0%
FY17 Q1

FY18 Q1

FY19 Q1

営業利益profit
OperatingNote: Fiscal year (FY) represents the one-year period from November 1 to October 31 of the following year.

FY20 Q1

FY21 Q1

Operating margin
売上高営業利益率1

◤◤ Consolidated Financial Highlights
Ordinary Profit<Millions of yen>

<Millions of yen>

8,000
7,000

8.3%

7.5%

6,000

7.0%
5.0%

10.0%

5,000

8.0%

4,000

6.0%

3,000

4.0%

2,000

Owners of Parent
3.9%

4,000

4.0%

3,000

4,598
3,559

5,751
4,653
3,377

4,045

2,000
FY17 Q1

FY18 Q1
FY19 Q1
FY20 Q1
FY21 Q1
経常利益profit
売上高経常利益率
Ordinary margin
Ordinary

2.0%

1,000

0.0%

0

2,220

2,607

6.0%
5.0%

3.8%

5,000

7,019

5.4%

4.4%
3.6%

5.7%

Profit Attributable to

2,695

3.0%
2.0%
1.0%
0.0%

FY17 Q1
FY18 Q1
FY19 Q1
親会社株主に帰属する当期純利益
Profitattributable to owners of parent

FY20 Q1
FY21 Q1
Net margin
売上高当期純利益率[Financial Overview]⚫ Net sales
Although Cook Innoventure Co., Ltd., which mainly operates restaurant business, was excluded from the scope of consolidationfrom FY2021, net sales increased by 3,448 million yen (4.2%) year on year, driven by Gyomu Super Business.
⚫ Gross profit
Gross profit decreased by 2,535 million yen (19.5%) year on year due to the exclusion mentioned above.
⚫ SG&A expenses
SG&A expenses decreased by 3,936 million yen (53.6%) year on year due to a decrease in personnel expenses and utility
expenses caused by the exclusion mentioned above.
⚫ Operating profit
As a result of the above, operating profit increased by 1,400 million yen (24.9%) year on year.
⚫ Ordinary profit
Ordinary profit increased by 1,267 million yen (22.0%) year on year thanks to a less adverse impact of foreign exchange rates.
⚫ Profit attributable to owners of parent
As a result of the above, profit attributable to owners of parent increased by 1,039 million yen (29.2%) year on year.
2◤◤ 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 900
stores as of January 31, 2021.
◼ Net sales remained strong because staying and working at
home has continued to increase demand for eating at home.
◼ The ratio of private label products has continued to increase
partly because of these products being featured on television,magazines, and newspapers.
Gyomu Super Business<Millions of yen>

Gyomu Super Business

Net Sales

Operating Profit<Millions of yen>

9.4%

10,000
8,000

8.5%
7.1%

6.8%

7.3%

8.0%

6,000

6.0%

4,000
2,000

7,853
3,758

3,936

4,526

FY17 Q1

FY18 Q1

FY19 Q1

FY18 Q1

FY19 Q1

FY20 Q1

FY21 Q1

4.0%

6,074
2.0%

0

FY17 Q1

10.0%

0.0%

営業利益 profit
Operating

FY20 Q1

FY21 Q1

営業利益率
OperatingmarginNote: Due to a change in the reportable segment structure in FY2021, the figures for FY2020 are reclassified retrospectively to reflect the change. Accordingly, the figures forthese two years are not consistent with those for FY2019 or before.

３◤◤ Changes in Total Number of Gyomu Super Stores
FY2021 Q1: Net increase of 21 stores

Number of Stores by Area

FY2021 Target: Net increase of 45 stores(46.7% progress as of January 31, 2021)

851 stores as ofJanuary 31, 2020

Strong store openings in directly managed areas in
Kyushu (+6 stores)(Stores)

1,000

879

Chiba
Kanto

関東直轄
234
191店舗

900

Saitama
千葉県
33店舗5239
神奈川県
Kanagawa
55店舗

67

東京都
Tokyo
64店舗

Others
地方エリア
315店舗
339

924

900
850

Kansai
関西直轄
228店舗
245

1,000

Total Number of Gyomu Super Stores

950

Hokkaido 17
Kyushu 16

76

845

800
2019年
FY20192020年
FY20202021年
FY2021

2021年
FY2021

長期目標
Long-term

10月

10月

1月
Q1

Target
10月目標

Target900 stores as ofJanuary 31, 2021(+49 stores)

Hokkaido 16 (-1)
Kyushu 36 (+20)

Kansai

Chiba

250

Outline of Franchise
Contract & Requirements

(+5)
（＋2）
（＋1）

Simulated Average Earnings(Standard Store Franchisees)(Thousands of yen)

Initial franchise fee(Consumption taxes
not included)¥2,000,000

MonthlyamountComposition

Net sales

32,000100.0％

P&L accountFranchise deposit¥10,000,000

Gross profit

5,120

16.0％

Royalty fee

1% ofpurchase cost

SG&A expenses

4,480

14.0％

(Rent expenses)

1,300

4.1％

(Personnel expenses)

1,440

4.5％

640

2.0％

Note: Equipment, construction work,
POS registers, and other funds forstart-up are required separately.
Note: Separate requirements apply
for indirectly managed areas.

Operating profit＋０

Saitama
Kanto
247

（＋１５）

Others
351

(+13)
（＋9）

41
(+2)

55（＋2）（＋2） (+3)

Kanagawa
70（＋2）(+3)
Tokyo

81

（＋7）

（＋3）(+5)

Kanto (directly managed areas):
Kansai (directly managed areas):

Tokyo, Chiba, Kanagawa, and Saitama
Osaka, Kyoto, Hyogo (excl. Awaji Island), Nara,
Wakayama, and Shiga
Fukuoka, Saga, Nagasaki, Kumamoto, Oita, andMiyazaki
Hokkaido
Prefectures other than those listed above

(+12)
（＋8）

Kyushu (directly managed areas):
Hokkaido (directly managed areas):
Others (indirectly managed areas):４◤◤ Changes in Product Shipments to Gyomu Super Stores
Kobe Bussan has achieved a year-on-year increase in product shipments to
all Gyomu Super stores nationwide for 70 consecutive months.
<YoY Change (%)>

[Existing Stores in Directly Managed Areas]

135

128.6

130

105
100

[All Stores Nationwide]
Monthly Trends for Product Shipments
135.8 136.6

135
124.1

131.1

130

124.9

119.6

120

110

140

131.0

125

115

<YoY Change (%)>

Monthly Trends for Product Shipments

113.3 113.6

112.5

110.9

109.1
103.6 110.4
103.3

101.1

105.3

106.8

111.0

109.7

111.2

120.1 119.8

120108.4 107.4 109.7 108.0

110

110.0

105

115.1

110.2

110.1

114.5

115.9
114.3

114.4

111.9

110.3
109.4

107.4
Nov. 12月
Dec.
11月

Feb.
Mar. Apr. May
Jun.
Jul.
Aug. Sep. Oct.
2月
3月
4月 5月 6月
7月
8月
9月 10月FY2020FY2019FY2021
2019年
2020年
2021年

113.3

110.2

105.5

116.7

115.5

115.3

115

106.8 107.0

117.8

115.9

109.8

105.0

Nov. Dec.
Jan.
11月
12月 1月

122.6

125

115.8

Jan.
1月

Feb. 3月
Mar. 4月
Apr. 5月
May
2月
FY20192019年
2020年
FY2020Jun. 7月
Jul. 8月
Aug. 9月
Sep. 10月
Oct.
6月
FY2021
2021年[Year-on-year % Changes in Product Shipments to Gyomu Super Stores]
FY2020
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

H1

May

FY2021
Jun.

Jul.

Aug.

Sep.

Oct.

H2

Full

Nov.

Dec.

Jan.

Q1

Existing
110.9 110.4 113.6 119.6 128.6 131.0 119.3 124.1 115.8 108.4 109.7 109.7 109.8 112.8 115.9 103.6 113.3 109.1 108.8
storesAll
115.4 114.1 117.7 124.4 135.0 137.7 124.3 130.9 121.1 113.0 113.6 114.3 114.4 117.8 120.9 109.0 119.7 116.1 115.1
storesAll
Nationwide
115.9 115.1 119.8 124.9 135.8 136.6 125.0 131.1 122.6 114.3 113.3 115.9 114.5 118.5 121.6 110.0 120.1 115.3 115.3
storesDirectly
managedareas

Note: “Nationwide” represents the product shipments to the stores in both directly and indirectly managed areas.

5◤◤ Kobe Bussan’s Strengths:“Unique Products with Competitive Advantages”
Enhancing Original Products

Samples of Private Label Products

Today we have come to own 24 plants with the confectionery plant located in
Okayama acquired in April 2020, as well as the meat processing plant in◼ Products produced by Kobe Bussan Group’s plants

Kanagawa and the food production plant in Miyagi, which started theiroperation in July 2020 and January 2021, respectively. The number is one of
the largest in Japan’s supermarket industry. Our original products produced atthese plants are available only at Gyomu Super stores and enjoy strong
consumer acceptance.
Also, food products directly imported from approximately 40 countries under
the concept, “the flavors of the world, to Japan,“ are popular with consumers
because they enjoy genuine taste of countries across the world at reasonable
prices at home.

Ratio of Private Label Products
34.0%

33.0%

The ratio of private label products
has risen because of a substantial
increase in shipments of imported
private label products andincreased production capacity of
the Kobe Bussan Group’s plants inwhich capital investments weremade.

32.75%

32.0%
31.47%

31.38%
30.88%

31.0%

31.45%

30.74%

Bulk
sausages

Natural yeast
bread

Milk pack dessert(Mizu-yokan)

460 yen (1,000g)

228 yen (1 loaf)

248 yen (1kg)

Frozen chicken
boneless leg

Frozen fried
eggplant

Belgian sugar
waffles

648 yen (2kg)

148 yen (500g)

378 yen (Pack of 10)◼ Import products

31.65%

30.68%

30.34%
30.0%
Q1
1Q

H1
2Q
FY20192019年

FY20202020年

Q1-Q3
Full-year
3Q
4Q
FY2021
2021年

Note: All prices exclude tax.
Products and prices are different depending on stores and seasons.

６◤◤ Restaurant & Deli BusinessRestaurant & Deli Business covers restaurants and delicatessen shops that we operate directly or as a franchisor.
This business segment includes Kobe Cook World Buffet, a buffet-style restaurant chain; Premium Karubi, a BBQ
buffet-style restaurant chain; and Chisouna, a delicatessen shop chain.

◼ Restaurant & Deli Business, which was renamed from
Kobe Cook Business, has now incorporated the BBQ
business, which was previously classified into “Other”
businesses.
◼ Kobe Cook World Buffet faced difficult times amid the
COVID-19 crisis (with the number of restaurants
having decreased by 7 from a year earlier).
◼ Premium Karubi and Chisouna recorded strong sales.

Kobe Cook World Buffet

Net Sales

40

1,000
839
750

5.1%

20

2.2%

463

-20
-40

274

200

28

10

0

545

600
400

Operating Profit<Millions of yen>

800

Chisouna

Restaurant & Deli BusinessRestaurant & Deli Business<Millions of yen>

Premium Karubi

10.0%
3.0%

5.0%

25

0.0%
-5.0%

-36
-6.1%

-13.1%-46-60
FY17 Q1

0
FY17 Q1

FY18 Q1

FY19 Q1

FY20 Q1

FY21 Q1

FY18 Q1

FY19 Q1

Operating
営業利益profit

FY20 Q1-10.0%-15.0%

FY21 Q1

Operatingmargin
営業利益率

Note: Due to a change in the reportable segment structure in FY2021, the figures for FY2020 are reclassified retrospectively to reflect the change. Accordingly, the figures forthese two years are not consistent with those for FY2019 or before.

7◤◤ Restaurant & Deli Business
Kobe Cook World Buffet
Total Number of Restaurants: 16 (as of January 31, 2021)

FY2021 Q1: Closed 1 restaurant

Maintained ongoing efforts such as promoting a takeout service tocater for customer needs.
Improved the breakeven point through reviewing to change
operations and menu.
Measures to Prevent COVID-19 Infections
Kobe Cook World Buffet has strengthened measures to prevent the COVID-19
infections so that customers can enjoy meals with peace of mind.
◼ Measures for employees
Wash and sanitize hands, and gargle; clean, sterilize and disinfect therestaurant; and check health condition before work.
◼ Measures to protect safety of customers
Provide alcohol spray in the restaurants; regularly exchange, wash, andsterilize tongs and other utensils shared and used for self-service in therestaurants; ventilate the restaurant with a supply and exhaust system;
and wear disposable vinyl gloves for foodservice.
◼ Certain restaurants were temporarily closed or shortened opening hours
due to the rebound of COVID-19.

Sample of takeout menu8◤◤ Restaurant & Deli BusinessPremium Karubi
Total Number of Restaurants: 4 (as of January 31, 2021)

FY2021 Q1: Opened 1 restaurant
Showed a positive trend given an increase in
the number of the restaurants and BBQ popularity.
What is Premium Karubi?
Premium Karubi is a BBQ buffet-style restaurant chain directly
operated by Kobe Bussan since 2018. We seek to differentiate itfrom other competitors by offering premium dishes such as thebest selected meats as well as desserts and gelatos created bypâtissiers exclusively dedicated to us.

Restaurant Locations
Miyamaedaira

2-6-14, Tsuchihashi, Miyamae-ku, Kawasaki-shi, Kanagawa

Kamiooka

1-9-24, Nakazato, Minami-ku, Yokohama-shi, Kanagawa

Nishitsuruma

2-1-3, Nishitsuruma, Yamato-shi, Kanagawa

Kasukabe

3-11-10, Yutaka-cho, Kasukabe-shi, Saitama

Tachikawa

1-5-8, Wakaba-cho, Tachikawa-shi, Tokyo

Fujimino

3-5-2, Tsurugamai, Fujimino-shi, Saitama

Scheduled toopen onMarch16
Scheduled toopen onApril 13

Note: Menus may vary by restaurant and season.

9◤◤ Restaurant & Deli Business
Chisouna
Total Number of Shops: 29 (as of January 31, 2021）

FY2021 Q1: Opened 4 restaurants
Remained strong due to an increase in Gyomu Super customers andmenu changes.
Measures to Prevent COVID-19 Infections
Chisouna strengthened measures to prevent the COVID19 infections with the safety of customers and employees
as the first priority.
• Sell pre-packaged fried foods, or otherwise cover foods
with a clear lid.
• Always keep alcohol spray near tongs shared and used
for self-service.

Shops Opened during FY2021 Q1
Tsunishi
1-5-8, Tsunishi, Kamakura-shi, Kanagawa
Akashi3-10-52, Suzuri-cho, Akashi-shi, Hyogo

Murakami
386, Chugen-machi, Murakami-shi, Niigata
Taisho Keisatsu Mae
1-6-7, Kobayashinishi, Taisho-ku, Osaka-shi, Osaka

Note: Products and prices may vary by shop and season.
10◤◤ Eco Renewable Energy BusinessWe provide eco-friendly, safe, and reliable renewable energy by operating solar andwoody biomass power plants.

◼ This business segment deals with renewableenergies centering on solar power generation.
◼ In early summer this year, a solar power plant(9.9MW) is scheduled to start operating in
Misaki-cho, Osaka.
◼ Going forward, we plan to gradually start
operating solar power plants in Fukushima andMiyagi.
Eco Renewable Energy Business<Millions of yen>

Net Sales<Millions of yen>

Kobe Bussan’s Solar Power Plant

Kobe Bussan’s Biomass Power Plant

Eco Renewable Energy Business
Operating Profit

100
581

600

528

537

15.3%

8.6%

10.0%

3.8%

70

500
400

-14.4%
20

10

300
200
100

89

40

-20

132

-30

46

0.0%
-10.0%-20.0%-19-30.0%-39.5%

76-50-40.0%
FY17 Q1

0
FY17 Q1

20.0%

FY18 Q1

FY19 Q1

FY20 Q1

FY21 Q1

FY18 Q1
FY19 Q1
営業利益
Operating profit

FY20 Q1
FY21 Q1
Operating margin
営業利益率

11

◤◤ Eco Renewable Energy Business
Plant Locations

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

16 locations

22.0MW

1 location

6.2MW

Biomass:[Solar Power]
5 in Hokkaido
5.8MW(as of January 31, 2021)[Solar Power]
1 in Shiga
0.5MW[Solar Power]
4 in Hyogo
4.5MW[Solar Power]
1 in Fukuoka
0.9MW[Solar Power]
1 in Ibaraki
2.4MW[Solar Power]
2 in Osaka
4.2MW[Solar Power]
1 in Tokushima
2.1MW[Solar Power]
1 in Wakayama
1.6MW

12

◤◤ Dividends
Kobe Bussan regards returning profits toshareholders as one of key management issues.
Our basic policy is to secure funds necessary for

Dividend per Share

<Yen>
20

25%

our business growth and distribute profits toshareholders according to the operating results.

21.55%
15
20%

For FY2020, we paid the annual dividends of

17.86%
10

30.00 yen per share, up 5.00 yen from theinitial forecast of 25.00 yen per share by paying
year-end dividends only as in the past years.
For FY2021, with the 2-for-1 stock split inNovember 2020 taken into account, we plan to
pay a year-end dividend of 15.00 yen per share(or 30.00 yen had the stock split not been
carried out).

15.81%

16.68%
15.00

5
6.25

8.12

15.00

15%

10.00

0

10%
FY2017
2017年

FY2018
2018年

FY20192019年

FY2020
2020年

10月期

10月期

10月期

10月期

Dividend per share
1株当たり配当金

FY2021
2021年
Forecast
10月期予想Payout ratio
配当性向(連結)

Note: The figures in the graph above have been adjusted for the effect of the
2-for-1 stock splits carried out in November 2018, November 2019, andNovember 2020.

13

◤◤ Consolidated Financial Forecast
Progress towards FY2021 Forecast(Millions of yen)

YoY

Progress towards
full-year forecast

FY2021 Q1 actual

Full-year forecast

Net Sales

85,045341,000

104.2%

24.9％

Operating profit

7,034

24,800125.3%

28.4％

Profit attributable to ownersof parent

4,598

16,000129.7%

28.8％

Net sales remain strong as planned.
Operating profit exceeds the forecast due to the impact of the strong yen and the improvementof the ratio of private label products.

Gyomu Super Business Guideline towards FY2021 Forecast
FY2021 target
Target ofstore openings

Net increase of 45 stores

Product
shipments toexisting stores

Higher than FY2020 results

Action plan
Open stores focusing on Kanto and Kyusyu areas.
Strengthen property data-gathering capability driven byheadquarters.
Prevent opportunity loss by increasing product supply
capacity.
Exceed FY2020 results, which were favorably impacted by
the COVID-19 infections.
14◤◤ Medium-term Business Plan
Kobe Bussan formulated the medium-term business plan for 3 years from FY2020 to FY2022.
Basic Policy(1) Grow our core business, Gyomu Super, by enhancing private label products.
(2) Grow the deli business to respond to changes in Japan's social and economic circumstances, represented by theadvancing low birthrate and aging population, and the promotion of women’s participation in the workplace.

(3) Grow the restaurant business by strengthening “Integrated Food Production & Distribution Operations” bysatisfying diverse needs and wants of consumers for food preferences.
(4) Promote eco-friendly business and CSR activities through "Shoku," which basically means anything related tofood practices in Japanese language.
(5) Improve productivity by enhancing employees’ satisfaction as well as focusing on recruiting and retaining
talented employees and training them.

Numerical Targets(Millions of yen)

FY2022 forecast(Medium-termbusiness plan)

FY2020 actual

FY2021 forecast

Net sales

340,870

341,000

358,050

Operatingprofit23,85124,80026,000ROE

29.5％

20% or higher each fiscal year,
while improving financial standings15• This material contains forward-looking statements based onassumptions, estimates, and plans as of March 15, 2021.
• 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.

For information regarding this material, please contact:
IR-Public Relations, Kobe Bussan Co., Ltd.
ir@kobebussan.co.jp