Supplementary Material for

FY2022 Q1 Financial Results

March 14, 2022

◤◤ Contents⚫ Consolidated Financial Highlights

1⚫ Gyomu Super Business3⚫ Outline of Gyomu Super Franchise Agreement4⚫ Changes in Total Number of Gyomu Super Stores5⚫ Year-on-year Changes in Product Shipments to Gyomu Super Stores

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

7⚫ Restaurant & Delicatessen Business8⚫ Eco Renewable Energy Business

12⚫ Shareholder Returns

14⚫ Consolidated Financial Forecast

15⚫ Medium-term Management Plan

16◤◤ Consolidated Financial Highlights<Millions of yen>

<Millions of yen>

Net Sales

100,000

13,00090,00012,000Gross Profit
20.0%

15.3%

15.3%

15.9%
16.0%
12.3%

96,80970,00085,045

81,59760,00012.2%

11,00080,00067,227

12,98010,0009,000

70,63612.0%
11,781
10,256

10,816

10,444

4.0%

8,000

50,000FY18 Q1

FY19 Q1<Millions of yen>

FY20 Q1

FY21 Q1

12.0%
9.3%

8,000

6,000

4,000

6.0%

4,000

3.0%

2,000

0.0%

0

7,346

2,000

4.0%
3,410

4.5%
4,335

0
FY18 Q1

FY19 Q1

FY20 Q1

SG&A expenses

FY21 Q1

FY22 Q1

Gross margin

Operating Profit

10.0%
8.3%

9.0%

6,457

FY20 Q1

9.0%

6,000

6,596

FY19 Q1

Gross profit<Millions of yen>

SG&A Expenses

8,000
9.6%

0.0%
FY18 Q1

FY22 Q1

FY21 Q1
SG&A ratio

FY22 Q1

8.0%

7.7%

6.9%
5.7%

8.0%

6.0%
7,446

7,034

6.0%

5,634
3,799

4,219

4.0%

2.0%
FY18 Q1

FY19 Q1

FY20 Q1

Operating profit

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

FY21 Q1

FY22 Q1

Operating margin1

◤◤ Consolidated Financial Highlights<Millions of yen>

<Millions of yen>

Ordinary Profit

8,000

10.0%
8.3%

6,000

4,000

5.7%
5.0%
5,751

2,000

7.9%

7.0%

3,377

7,019

7,629

8.0%

5.4%

6.0%

4.0%

4,045

2.0%
FY19 Q1

4,000

2,000

0
FY18 Q1

6,000

Profit Attributable to
Owners of Parent

FY20 Q1

Ordinary profit

FY21 Q1

FY22 Q1

Ordinary margin

3.9%

8.0%

5.3%

4.4%
3.8%

2,607

2,695

FY18 Q1

FY19 Q1

6.0%

5,121

4,598

4.0%

3,559

0

2.0%
FY20 Q1

FY21 Q1

Profit attributable to owners of parent

FY22 Q1

Net margin[Financial Overview]⚫ Net sales
Net sales increased by ¥11,764 million (13.8%) year on year, driven by the Gyomu Super Business, whose growth was fueled by asignificant year-on-year increase in store openings and continuous exposure to television, magazines, newspapers, and social media.
⚫ Gross profit
Gross profit increased by ¥1,336 million (12.8%) year on year in line with an increase in net sales with the gross margin down slightly
by 0.1% due to significant cost rises such as unfavorable foreign exchange rates as well as soaring prices of raw materials and ocean
freights, which continued from FY2021 Q2.
⚫ SG&A expenses
SG&A expenses increased by ¥924 million (27.1%) year on year due to increases in freight costs, and personnel expenses for our
directly operated BBQ restaurants.
⚫ Operating profit
As a result of the above, operating profit increased by ¥411 million (5.9%) year on year with the operating margin down slightly by 0.6%.

⚫ Ordinary profit
As there were no significant non-operating items, ordinary profit increased by ¥610 million (8.7%) year on year.
⚫ Profit attributable to owners of parent
As a result of the above, profit attributable to owners of parent increased by ¥522 million (11.4%) 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 956
stores as of January 31, 2022.
◼ The ratio of private label products continued increasing
because of continuous exposure to television, magazines,
newspapers, and social media.
◼ The number of commercial customers was on a recovery trend
due to the reopening of restaurants.
Gyomu Super Tengachaya Ekimae Store<Millions of yen>

<Millions of yen>

Net Sale

100,000

Operating Profit
9.4%

10,0008,000

80,000

8.9%

8.5%
6.8%

7.3%

8.0%

6,000

60,00040,00058,174

61,793

71,792

83,70994,57920,000

6.0%

4,000
2,000

8,408

7,853
3,936

4,526

FY18 Q1

FY19 Q1

FY18 Q1

FY19 Q1

FY20 Q1

FY21 Q1

FY22 Q1

4.0%

6,074
2.0%

0

0

10.0%

0.0%

FY20 Q1

Operating profit

FY21 Q1

FY22 Q1

Operating margin

Note: Due to a change in the reportable segment structure in FY2021, the figures for FY2020 are reclassified retrospectively to reflect the change.
Accordingly, the figures for these two years are not consistent with those for FY2019 or before.
３◤◤ Outline of Gyomu Super Franchise Agreement
We operate Gyomu Super stores under a franchise system except 3 stores of our own.
Our franchise agreement has 2 types as follows:• General franchise contract, which allows a franchisee to open one store in our directly managed areas (*1).
• Area franchise contract, which allows a franchisee to open multiple stores in a defined prefecture in our indirectly managed
areas (*2). Also, we own 3 stores in Hyogo and Osaka prefectures under direct operations.
関西直轄
228店舗

*1 Directly managed areas• Hokkaido area: Hokkaido prefecture• Kanto area:
Tokyo, Chiba, Kanagawa, and Saitama prefectures• Kansai area:
Osaka, Kyoto, Hyogo (excl. Awaji Island), Nara, Wakayama, and Shiga prefectures• Kyushu area:
Fukuoka, Saga, Nagasaki, Kumamoto, Oita, and Miyazaki prefectures 地方エリア

関東直轄
191店舗

Outline of Franchise Contract & Requirements

Simulated Earnings（as of January 31, 2022）(Standard Store Franchisees)

Directly managed areas

Indirectly managed areas

Number of franchisees

8715Type of franchise
agreement

Single-unit franchise(A general franchisee can open
one store per contract.)

Multi-unit franchise(An area franchisee has an
exclusive right to open multiple
stores in a prefecture defined
under the contract.)

Initial franchise fee(excl. consumption taxes)¥2,000,000

Population in the prefecture x ¥2

Franchise deposit¥10,000,000

Population in the prefecture x ¥5

1% of total purchase of goods

1% of purchase of defined goods

Royalty fee

Facility expenses

Distribution expenses

It costs between ¥20 million and ¥29 million to construct racks for
shelf-stable foods and refrigeration equipment (the above
construction cost is a rough estimate and varies depending on
properties). Equipment, construction work, POS registers, and otherfunds for start-up are required separately.
Principally paid byfranchise headquarters

神奈川県
55店舗

東京都
64店舗

315店舗

*2 Indirectly managed areas• Other areas:
Prefectures other than those listed above

千葉県
33店舗

Negotiable

P&L accountMonthlyamountComposition

Net sales¥32,000,000

100.0％

Gross profit¥5,120,000

16.0％

SG&A expenses¥4,480,000

14.0％(Rent expenses)¥1,300,000

4.1％(Personnel expenses)¥1,440,000

4.5％¥640,000

2.0％Operating profit* By purchasing items such as fresh food separately, many offranchisees operate more efficiently than the above simulation.
４◤◤ Changes in Total Number of Gyomu Super Stores
During FY2022 Q1, we achieved a net increase of 6
stores (opened 19 and closed 13).
Although in November 2021, store closings increased
because a certain franchisee cancelled the franchisecontract due to management change, this has alreadybeen incorporated into our plan (net increase of 60
stores per year).
We saw strong store openings in the Kyushu andHokkaido areas.

Number of Stores by Area
900 stores as ofJanuary 31, 2021

Hokkaido 16
Kyushu 36

関西直轄
228店舗

Kansai
250

Chiba
関東直轄
191店舗

Saitama

247

東京都
64店舗

Kanto

地方エリア
315店舗
（＋2）

Total Number of Gyomu Supper Stores

55店舗

55

Kanagawa
70

Tokyo

Other

(Stores)

神奈川県
41

81

351

1,050

1,010
1,000

956 stores as ofJanuary 31, 2022 (+56)

956
950

900

900

850

Hokkaido 21（＋5）
Kyushu 58（＋22）

Kansai

Chiba

255

851

Other

800

FY20202020年
FY2020Q1
1月

Saitama(+5)

FY 20212021年
FY2021Q1
1月

2022年
FY2022
Q1
1月

2022年
FY2022
Target
10月目標

362
(+11)

（＋22）

Kanto

60

260

(+5)

(+13)

45
(+4)

Kanagawa

Tokyo
82

73
(+3)

(+1)

（＋3）

Directly managed areas: Hokkaido, Kanto, Kansai, and Kyushu
Indirectly managed areas: Other5◤◤ Year-on-year Changes in Product Shipments to
Gyomu Super Stores◼ Product shipments for FY2022 Q1 remained strong with a year-on-year increase partly because ofcontinuous exposure on television, magazines, newspapers, and social media.
<YoY Change (%)>

[Existing Stores in Directly Managed Areas]
Monthly Trends for Product Shipments

135

110.9

110
105
100

110.2

103.6 102.4

125

115.8

113.3 113.6

110.4

135.8

130

119.2

120

136.6

135

124.1

125

115

140

128.6 131.0

130[All Stores Nationwide]
Monthly Trends for Product Shipments<YoY Change (%)>

109.7 109.9 109.8
108.4

109.1
104.3

103.1 103.5 102.9 109.7 104.5

103.1
94.4

95

91.5

120
115

110
105

94.2

118.6
115.9

120.1 119.8

122.6

124.9

115.3
115.1

110.0 110.3

110.8
112.5

111.2

119.9
113.1

111.1
115.9

111.5
114.3 113.3

102.4
98.9

100

90

131.1

114.5

101.7

95

Nov. Dec.

Jan.

Feb.

Mar.

Apr.

FY2020May

June

FY2021

July

Aug. Sept. Oct.

Nov. Dec.

Jan.

FY2022Feb. Mar. Apr.

May

FY2020

FY2021June

July

Aug. Sept. Oct.

FY2022[Year-on-year % Changes in Product Shipments to Gyomu Super Stores]
FY2021
Nov.
Directly
managedareas
Nationwide

Dec.

Jan.

Feb.

Existing
103.6 113.3 109.1 104.3
StoresAll
109.0 119.7 116.1 111.0
storesAll110.0 120.1 115.3 112.5
stores

FY2022

Mar.

Apr.

H1

May

June

July

Aug.

Sept.

Oct.

H2

Full

Nov.

Dec.

Jan.

94.4

91.5

101.9

94.2

103.1

103.5

102.9

109.9

104.5

102.8

102.4

110.2

102.4

103.1

100.5

98.0

108.3

100.9

110.5

111.0

111.1

118.1

111.9

110.4

109.3

116.6

108.8

109.3

102.4

98.9

109.1

101.7

111.5

110.8

111.1

119.9

113.1

111.2

110.2

118.6

110.3

111.2

Note: “Nationwide” represents the product shipments to the stores in both directly and indirectly managed areas.
6◤◤ Kobe Bussan’s Strengths:“Unique Products with Competitive Advantages”
Enhancing Original Products

Samples of Private Label Products

Today, we have come to own 25 plants with the food production
plants in Miyagi and Okayama having started their operations inJanuary and April 2021, respectively. The number is one of thelargest in Japan’s supermarket industry. Our original products
produced at these plants are available only at Gyomu Super storesand enjoy strong consumer acceptance.

■Products produced by Kobe Bussan Group’s plants

Also, food products directly imported from approximately 45
countries under the concept, “the flavors of the world, to Japan,”are popular with customers because they enjoy genuine taste ofcountries across the world at reasonable prices at home.

35.0%

Ratio of Private Label Products
34.29%

Chicken legs withspicy curry sauce

FrozenSanuki udon

Milk pack dessert(Mizu-yokan)¥321 (2 pieces)¥169 (200 g x 5 pcs)

¥278 (1 kg)

Frozenfried eggplants

Shoestring
Fries

Oats
Porridge¥192 (500 g)¥278 (1 kg)¥159 (500 g)◼ Import products

34.0%

33.0%

32.0%

31.0%

33.01%

32.94%

31.38%

31.45%

32.75%

31.47%Q1

Q2
FY2020Q3
FY2021

FY2022
FY2021

33.12%

31.65%

Q4

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

7◤◤ Restaurant & Delicatessen Business
The Restaurant & Delicatessen Business covers restaurants and delicatessen shops that we operate directly or as afranchisor (franchising headquarters). This business segment includes Kobe Cook World Buffet, a buffet-style restaurant
chain; Premium Karubi, a served a-la-carte buffet style BBQ restaurant chain; and Chisouna, a delicatessen shop chain.

◼ We strengthen the Restaurant & Delicatessen
Business as a food infrastructure company.
◼ Kobe Cook World Buffet has yet to get customers
fully back.
◼ Premium Karubi and Chisouna have continued
increasing the number of customers.
Kobe Cook World Buffet<Millions of yen>

<Millions of yen>

Net Sales

2,000

100
1,592

1,500

50

500

839
463

Operating profit
8.0%
3.0%

2.2%
28

750

-46

-50

-6.1%
FY18 Q1

0
FY20 Q1

FY21 Q1

0.0%
-62

10

545

FY19 Q1

4.0%

25

-100

FY18 Q1

Chisouna

5.1%

0
1,000

Premium Karubi

FY22 Q1

FY19 Q1

FY20 Q1

営業利益 profit
Operating

FY21 Q1

-4.0%
-3.9%
-8.0%
FY22 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 for these two years are not consistent with those for FY2019 or before.
8◤◤ Restaurant & Delicatessen Business
Kobe Cook World Buffet
Total Number of Restaurants: 8 (as of January 31, 2022)

During FY2022 Q1, Kobe Cook World Buffet experienced a net decrease of
7 restaurants (closed 7).
It continued to make efforts such as promoting a takeout service to caterfor customer needs.

Initiatives to Reduce Food Waste
Harborland Restaurant (located in Chuo-ku, Kobe-shi, Hyogo), which Kobe Cook World Buffet
reopened as a directly operated restaurant on July 2021, strengthened initiatives to reducefood waste. For example, after the last order of lunch and dinner hours, the restaurant offers
50% discount at a section in the restaurant designated for selling “by weight” at ¥1.00 (¥1.08
including taxes) per gram.

Measures to Prevent COVID-19 Infections
Kobe Cook World Buffet has strengthened measures to prevent the COVID-19 infections sothat customers can enjoy meals with peace of mind.
◼ Measures for employees
Wash and sanitize hands, and gargle; clean, sterilize and disinfect the restaurant; andcheck health condition before work.
◼ Measures to protect safety of customers
Provide alcohol spray in the restaurants; regularly exchange, wash, and sterilize tongs andother utensils shared and used for self-service in the restaurants; ventilate the restaurantwith a supply and exhaust system; and wear disposable vinyl gloves for foodservice.
◼ Certain restaurants were temporarily closed or shortened opening hours due to therebound of COVID-19.

Initiatives to reduce food waste

9◤◤ Restaurant & Delicatessen BusinessPremium Karubi
Total Number of Restaurants: 12 (as of January 31, 2022)

During FY2022 Q1, Premium Karubi achieved a net increase of 2 restaurants.
In November and December 2021, it was allowed to serve alcohol under normal operating hours.
It took some necessary measures including menu changes because of soaring purchase prices of meat.

Differentiation from Other Competitors
What makes Premium Karubi different from other BBQ restaurants isthe best selected, perfectly aged meat and in-house made desserts
and gelatos. The restaurants are increasing the number of customers,
primarily women, by offering new menus for each season so that
repeat customers can enjoy our meals.

Since December 2021, all the restaurants have run a marketing
campaign titled “Italy Fair.” Through this fair, we have offered alimited-time menu to enhance customer satisfaction.

Restaurants Opened during FY2022 Q1
Kohoku Hiyoshi

6-1-15 Hiyoshi, Kohoku-ku, Yokohama-shi, Kanagawa

Shikinomori

720 Kamishirane-cho, Asahi-ku, Yokohama-shi, Kanagawa* We plan to open new restaurants in April onwards in series.

Note: Menus may vary by restaurant and season.

10◤◤ Restaurant & Delicatessen Business
Chisouna
Total Number of Shops: 57 (as of January 31, 2022)

During FY2022 Q1, Chisouna achieved a net increase of 8 shops.
Franchisees are eager to establish a Chisouna section in newly opened
Gyomu Super stores.

Measures to Prevent COVID-19 Infections
Chisouna strengthened measures to prevent the COVID-19
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 FY2022 Q1
Chiyo

3-1-2 Chiyo, Yahatanishi-ku, Kitakyushu-shi, Fukuoka

Oita Mie

1518 Akamine, Mie-cho, Bungoono-shi, Oita

Kanoya2-3683-6 Fudamoto, Kanoya-shi, Kagoshima

Yamashina
Higashino

7 Higashino Katasagari-cho, Yamashina-ku, Kyoto-shi, Kyoto

ShinjoTakada195 Soone, Yamatotakada-shi, Nara

Matsuyama
Hirata27-1 Hirata-cho, Matsuyama-shi, Ehime

Hayama1-28-15 Hayama, Nagasaki-shi, Nagasaki

Saga Kita

4-8-2 Takakise-nishi, Saga-shi, Saga

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

◼ A solar power plant in Misaki-cho, Osaka, started
operations in May 2021, resulting in a year-onyear increase by 1 solar power plant.
◼ Although profit declined due to the recording ofdepreciation of the above solar power plant, net
sales increased by 9.5% year on year.
◼ We plan to gradually start operating solar power
plants in Fukushima and Miyagi.
<Millions of yen>

<Millions of yen>

Net sales

800

Kobe Bussan’s Woody Biomass Power Plant

Operating profit

120

600

528

537

581

20.0%

15.3%

636

9.4%

8.6%

80
3.8%

0

-14.4%

20

60

46-15.0%
FY18 Q1

FY18 Q1

FY19 Q1

FY20 Q1

FY21 Q1

FY22 Q1

0.0%-10.0%

-40
0

10.0%

-5.0%

-19

132

15.0%

5.0%

89

40

400

200

Kobe Bussan’s Solar Power Plant(Photo: Solar Power Plant in Misaki-cho, Osaka)

FY19 Q1

FY20 Q1

Operating
営業利益profit
Operatingprofit

FY21 Q1

FY22 Q1

営業利益率
Operating margin12◤◤ Eco Renewable Energy Business
Plant Locations

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

17 locations

32.1 MW

1 location

6.2 MW

Biomass:[Solar Power]
5 in Hokkaido
5.9 MW(as of January 31, 2022)[Solar Power]
1 in Shiga
0.5 MW[Solar Power]
4 in Hyogo
4.5 MW[Solar Power]
1 in Fukuoka
0.9 MW[Solar Power]
1 in Ibaraki
2.4 MW[Solar Power]
3 in Osaka
14.2 MW[Solar Power]
1 in Tokushima
2.1 MW[Solar Power]
1 in Wakayama
1.6 MW

13

◤◤ Shareholder Returns
Dividends
Dividend per Share<Yen>

Kobe Bussan regards returning profits to shareholders as one of key

25

management issues. Our basic policy is to secure funds necessary forour business growth and distribute profits to shareholders according20

to the operating results.

15

For FY2021, we had paid the annual dividends of ¥20.00 per share

17.8%

21.5%

5

For FY2022, we plan to pay the annual dividends of ¥21.00 per share.

0

Note: The figures in the graph on the right have been adjusted for the effect ofthe 2-for-1 stock splits carried out in November 2018, November 2019,

23.0%

25%
20%

16.6%

15%

10

according to the initial forecast.

22.1%

20.00

21.00

15.00
8.12
FY2018
2018年

and November 2020.

5%

10.00

FY2019FY20202019年
2020年
1株当たり配当金
Dividend
per share

10%

FY2022
2022年目標
Target配当性向(連結)
Payoutratio
FY2021
2021年

0%

Shareholder Benefit Program
The shareholder benefit program has been introduced to express Kobe Bussan’s gratitude for the continuous support of its shareholders
and to gain the deeper understanding of customers for its businesses. Subject to shareholders who hold 100 shares or more as of
October 31, 2021, we will send JCB Gift Card, which was changed from conventional incentives, Gyomu Super Gift Certificate.
Shareholder incentives
Number of shares held

Continuous ownership years
Less than 3 years

Continuous ownership years
3 years or more

100-999

JCB Gift Card ¥1,000

JCB Gift Card ¥3,000

1,000-1,999

JCB Gift Card ¥10,000

JCB Gift Card ¥15,000

2,000 or more

JCB Gift Card ¥15,000

JCB Gift Card ¥20,000

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

Sample14

◤◤ Consolidated Financial Forecast
Progress towards FY2022 Forecast
Q1 actual(Millions of yen)

Full-year forecast

Year on year

Progress towards
full-year forecast

Net sales

96,809380,000

13.8%

25.5%

Operating profit

7,446

28,800

5.9%

25.9%

Profit attributable toowners of parent

5,121

19,800

11.4%

25.9%

While considering risks of continuous cost rises such as unfavorable foreign exchange rates as well
as soaring prices of raw materials and ocean freights, we strive to achieve the above target throughadopting our sales strategy flexibly to business environment and making cost reduction efforts.

Gyomu Super Business Guideline towards FY2022 Forecast
FY2022 target

Target ofstore openings

Net increase of
60 stores

Product shipments
to existing stores

Higher thanFY2021 results

Action plan
Open stores focusing on the Kanto and Kyushu areas under
direct management.
Strengthen property data-gathering capability driven byheadquarters.
Prevent opportunity loss by increasing product supply
capacity.
Exceed FY2021 results, which were favorably impacted by the
COVID-19 infections.
15◤◤ Medium-term Management Plan
Medium-term Management Plan FY2022–FY2024
Basic policy

1. Grow our mainstay Gyomu Super Business by enhancing private label products.
2. Grow the delicatessen business in response to changes in Japan's social and economic
circumstances, represented by a lower birthrate and aging population, and the promotion of
women’s participation in the workplace.
3. Grow the restaurant business to meet the diversified food needs.

4. Promote social contribution activities and eco-friendly businesses through food.
5. Improve productivity by enhancing employee satisfaction as well as focusing on securing anddeveloping talented personnel.
6. Strive to increase the corporate value by strengthening initiatives for ESG issues and SDGs.

Consolidated Numerical Targets
FY2021 actual(Millions of yen)

FY2024 target

Net sales

362,064

410,000

Operatingprofit27,311

32,000ROE

29.2％

20% or higher foreach fiscal year of the plan16• This material contains forward-looking statements based onassumptions, estimates, and plans as of March 14, 2022.

• Please note that actual results may differ significantly from theseforward-looking statements due to uncertain factors arising fromchanges in the economic climate.
• This material is not intended to solicit and encourage purchase ofshares.
• This material has been translated from the Japanese original forreference purposes only. In the event of any discrepancy between
this translated material and the Japanese original, the original shallprevail.

For information regarding this material, please contact:
IR-Public Relations, Kobe Bussan Co., Ltd.
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