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 Fiscal Year Ended October 31, 2021
(Under Japanese GAAP)
December 14, 2021
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 hold ordinary general meeting of shareholders:January 27, 2022
Scheduled date to file Annual Securities Report:
January 28, 2022
Scheduled date to commence payment of dividends:
January 28, 2022
Preparation of supplementary material on financial results:
Yes (https://www.kobebussan.co.jp/english/ir/news.php)
Holding of 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 fiscal year ended October 31, 2021 (from November 1, 2020 to October 31, 2021)(1) Consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
October 31, 2021
362,064
6.2
27,311
14.5
29,08723.0
19,59230.2
October 31, 2020
340,870
13.8
23,85124.0
23,646
21.7
15,04724.8
Note: Comprehensive income
For the fiscal year ended October 31, 2021: ¥20,086 million [41.0%]
For the fiscal year ended October 31, 2020: ¥14,250 million [22.3%]
Basic earnings
Diluted earnings
Ordinary profit toOperating profit
Return on equity*
per shareper share
total assets ratio
marginFiscal year ended
Yen
Yen
%
%
%
October 31, 2021
90.48
88.52
29.2
19.1
7.5
October 31, 2020
69.86
68.24
29.5
15.9
7.0
* Equity = Shareholders’ equity + Valuation and translation adjustments
Note: As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, both basic and diluted earnings per
share were calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended
October 31, 2020.
(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
October 31, 2021
156,737
78,21848.8
350.49October 31, 2020
148,175
59,26839.0
267.42
Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of October 31, 2021: ¥76,411 million
As of October 31, 2020: ¥57,758 million
Note:
As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, net assets per share was calculated
based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended October 31, 2020.
(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
Millions of yen
October 31, 2021
21,261
October 31, 2020
19,543

Cash flows frominvesting activities
Millions of yen(17,407)(17,314)

Cash flows fromfinancing activities
Millions of yen(16,526)(3,704)

Cash and cash equivalents
at end of period
Millions of yen
56,71068,285

2.

Cash Dividends

Fiscal year ended
October 31, 2020
October 31, 2021
Fiscal year ending
October 31, 2022 (Forecast)

Notes:

Annual dividend per share
First
SecondThird
Fiscalquarter-end quarter-end quarter-end year-end
Yen
Yen
Yen
Yen
0.00
30.00
–
–
0.00
20.00
–
–

–

0.00

–

21.00

Total

Total
dividends(Annual)Dividend
Dividend on
payout ratio
equity(Consolidated) (Consolidated)

Yen Millions of yen
30.00
3,242
20.00
4,363

%
21.5
22.1

21.00

23.0

%
12.7
6.5

1. Breakdown of year-end dividend for the fiscal year ended October 31, 2020:
Ordinary dividend of ¥25.00 per share and special dividend of ¥5.00 per share
2. Reflecting the effect of the 2-for-1 stock split of common shares effective on November 1, 2020, the year-end dividend
forecast for the fiscal year ending October 31, 2021 is ¥20.00 per share (or ¥40.00 had the stock split not been carried out).

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
19,800
1.1
91.44

3.

2

[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): None
(2) 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: None(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(3) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury shares)
As of October 31, 2021:
273,600,000 shares
As of October 31, 2020:
273,600,000 shares(ii) Number of shares of treasury shares at the end of the period
As of October 31, 2021:
55,587,320 shares
As of October 31, 2020:
57,614,064 shares(iii) Average number of shares of common shares outstanding during the period
Fiscal year ended October 31, 2021:
216,527,896 sharesFiscal year ended October 31, 2020:
215,403,790 shares
Notes:
1. As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, the number of sharesissued was calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal
year ended October 31, 2020.
2. 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, which was to be deducted from the calculation of the number of shares of treasury shares as of October 31,
2021, and the average number of shares of common shares outstanding for the fiscal year ended October 31, 2021.
[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended October 31, 2021 (from November 1, 2020 to October 31, 2021)(1) Non-consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
October 31, 2021
370,772
11.0
22,93018.4
24,70226.2
16,70534.9
October 31, 2020
333,994
20.6
19,361
24.7
19,56719.4
12,381
24.6
Basic earnings
per share

Diluted earnings
per share

Fiscal year ended
Yen
Yen
October 31, 2021
77.15
75.47
October 31, 2020
57.48
56.15
Note: As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, both basic and diluted earnings per
share were calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended
October 31, 2020.
(2) Non-consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
October 31, 2021
145,973
66,69644.5
297.64
October 31, 2020
140,640
51,07835.2
229.50
Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of October 31, 2021: ¥64,889 million
As of October 31, 2020: ¥49,568 million
Note:
As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, net assets per share was calculated
based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended October 31, 2020.

* 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. Overview of Operating Results (4) Outlook for the fiscal year ending
October 31, 2022” on the Attached Materials.

3

Contents of Attached Materials
1. Overview of Operating Results ············································································································· P. 2
(1) Analysis of operating results ············································································································ P. 2
(2) Analysis of financial position ··········································································································· P. 3
(3) Analysis of cash flows ··················································································································· P. 3
(4) Outlook for the fiscal year ending October 31, 2022 ················································································ P. 4
2. Basic Policy Regarding Selection of Accounting Standards ············································································ P. 4
3. Consolidated Financial Statements and Notes ···························································································· P. 5
(1) Consolidated balance sheets ············································································································ P. 5
(2) Consolidated statements of income and consolidated statements of comprehensive income ·································· P. 7
Consolidated statements of income ·································································································· P. 7
Consolidated statements of comprehensive income ··············································································· P. 9(3) Consolidated statements of changes in equity ························································································ P. 10(4) Consolidated statements of cash flows ································································································ P. 12(5) Notes to consolidated financial statements ··························································································· P. 14(Going concern assumption) ·········································································································· P. 14(Segment information) ················································································································· P. 14(Per share information) ················································································································ P. 17(Subsequent events) ···················································································································· P. 17-1-

1. Overview of Operating Results(1) Analysis of operating results
During the fiscal year ended October 31, 2021 (from November 1, 2020 to October 31, 2021) (hereinafter the “period underreview”), Japan’s economic outlook remained uncertain, reflecting soaring prices of food ingredients and shipping costs aswell as lifestyle changes against a backdrop of the spread of COVID-19 infections that started last year and economic losses asa result of the state of emergency in various parts of Japan.
Japan’s food industry has become even more competitive because players in other industries such as e-commerce operators anddrugstore chains have expanded the sale of food products.
Under such circumstances, the number of new store openings of Gyomu Super, which is the Kobe Bussan Group’s mainstay
business, significantly increased from a year earlier. Also, existing stores remained strong because we successfully attracted
more customers. This was because private label products derived from our strength of “Integrated Food Production &Distribution Operations” were featured on television, magazines, newspapers, and social media.
Consequently, in terms of operating results for the period under review, we reported net sales of ¥362,064 million (up 6.2%
year on year), operating profit of ¥27,311 million (up 14.5%), ordinary profit of ¥29,087 million (up 23.0%), and profit
attributable to owners of parent of ¥19,592 million (up 30.2%).
The operating results by business segment are as follows:
Note that Cook Innoventure Co., Ltd., G.communication Co., Ltd., G.taste Co., Ltd. (presently Yakiniku Sakai Holdings Inc.),
and 11 other consolidated subsidiaries, which comprised the Cook Innoventure Business in the previous fiscal year, were
excluded from the scope of consolidation on April 1, 2020, the deemed date of sale. Accordingly, the business segment nolonger existed at the beginning of the period under review.
Also, we reviewed the classification of business segments based on perspectives of our group’s business expansion andmanagement control system. Since the beginning of the period under review, the Restaurant & Delicatessen Business has beenrenamed from the Kobe Cook Business to incorporate the BBQ business, which was previously classified into the Other
businesses.
[Gyomu Super Business]
This business segment covers Gyomu Super stores, selling at best prices not only national brand products but also private label
products that are imported directly by ourselves or produced by our group’s domestic plants. In the period under review,
Gyomu Super stores have expanded nationwide with 950 stores as a result of a net increase of 71 stores after opening 77 storesand closing six.
The breakdown of new store openings was 52 stores in directly managed areas and 25 stores in indirectly managed areas. We
work on store openings focusing on the Kanto and Kyushu areas under direct management, and strongly encourage franchiseowners to relocate stores which have been deteriorated with 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. Through such products that meetcustomer needs, we acquired more customers with a savings-oriented mindset.
Consequently, net sales of the Gyomu Super Business for the period under review stood at ¥355,466 million (up 11.0% year onyear).
[Restaurant & Delicatessen Business]
This 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 and inhouse made desserts; and Chisouna, a delicatessen shop chain focusing on health-conscious food made with minimal additives
and preservatives at affordable prices, under 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 three restaurants, resulting in 15 restaurants
nationwide. Net sales decreased year on year because certain restaurants temporarily closed or shortened opening hours toprevent the COVID-19 infections appropriately. Premium Karubi opened seven restaurants and closed none, resulting in 10
restaurants nationwide. Although the restaurants have also shortened opening hours, net sales showed a positive trend given an-2-increase in the number of the restaurants and BBQ popularity. Chisouna opened 24 shops and closed none, resulting in 49
shops nationwide. Net sales remained strong thanks to an increase in Gyomu Super customers and the implementation of
measures to prevent the COVID-19 infections at shops.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥3,889 million (up55.0% year on year).
[Eco Renewable Energy Business]
This business segment covers renewable energies generated by our own solar and woody biomass power plants. Having
opened one solar power plant in Osaka since May in the period under review, we currently 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 ¥2,668 million (up 11.1%
year on year).

(2) Analysis of financial position(Assets)
Total assets as of October 31, 2021 increased by ¥8,562 million from the end of the previous fiscal year to ¥156,737 million(up 5.8% year on year).
Current assets decreased by ¥6,293 million from the end of the previous fiscal year to ¥95,862 million (down 6.2% year onyear). This was mainly due to a decrease in cash and deposits of ¥12,010 million resulting from the repayment of borrowings,
which was partially offset by an increase in merchandise and finished goods of ¥3,752 million to prepare for anticipatedincrease in product shipments and delay in delivery of imported products.
Non-current assets increased by ¥14,855 million from the end of the previous fiscal year to ¥60,874 million (up 32.3% year onyear). This was mainly due to an increase in property, plant and equipment of ¥13,448 million resulting from the constructionof a new office building and the facility expansion of our group's domestic plants.
(Liabilities)
Total liabilities as of October 31, 2021 decreased by ¥10,387 million from the end of the previous fiscal year to ¥78,518
million (down 11.7% year on year).
Current liabilities increased by ¥4,140 million from the end of the previous fiscal year to ¥51,047 million (up 8.8% year onyear). This was mainly due to an increase in accounts payable - trade of ¥2,996 million.
Non-current liabilities as of October 31, 2021 decreased by ¥14,528 million from the end of the previous fiscal year to ¥27,471
million (down 34.6% year on year). This was mainly due to a decrease in long-term borrowings of ¥15,155 million.
(Net assets)
Total net assets as of October 31, 2021 increased by ¥18,949 million from the end of the previous fiscal year to ¥78,218
million (up 32.0% year on year). This was mainly due to an increase in retained earnings of ¥16,349 million.
Consequently, the equity ratio as of October 31, 2021 increased by 9.8 percentage points year on year to 48.8%. Net assets per
share stood at ¥350.49 for the current fiscal year compared to ¥267.42 for the previous fiscal year.
As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, net assets per share was calculated
based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended October 31, 2020.

(3) Analysis of cash flows
Total cash and cash equivalents as of October 31, 2021 (hereinafter “net cash”) decreased by ¥11,574 million from the end of
the previous fiscal year to ¥56,710 million.
The status of each cash flow and its factors are as follows:(Cash flows from operating activities)
Net cash provided by operating activities for the period under review amounted to an inflow of ¥21,261 million (up ¥1,718
million year on year). This was mainly due to an increase in profit before income taxes of ¥6,506 million.
(Cash flows from investing activities)
Net cash used in investing activities for the period under review amounted to an outflow of ¥17,407 million (up ¥92 million
year on year). This was mainly due to an increase in an outflow of ¥5,982 million resulting from purchase of property, plant-3-and equipment and no payments for sale of shares of subsidiaries resulting in change in scope of consolidation during thecurrent fiscal year from November 1, 2020 to October 31, 2021 in contrast with the payment of ¥5,136 million during theprevious fiscal year.
(Cash flows from financing activities)
Net cash used in financing activities for the period under review amounted to an outflow of ¥16,526 million (up ¥12,822
million year on year). This was mainly due to an increase in an outflow of ¥1,518 million due to repayments of long-termborrowings and no proceeds from long-term borrowings during the current fiscal year from November 1, 2020 to October 31,
2021 in contrast with the proceeds of ¥11,660 million during the previous fiscal year.
(4) Outlook for the fiscal year ending October 31, 2022
We are planning to further grow our mainstay Gyomu Super Business with an aim to have 1,010 Gyomu Super stores (netincrease of 60 stores) by the end of the fiscal year ending October 31, 2022. To further enhance private label products derived
from Gyomu Super’s strength of “Integrated Food Production & Distribution Operations,” we continue to make capital
investment in facilities of our group’s plants.
In the Restaurant & Delicatessen Business, we work on developing and expanding the competitive business formats byaddressing constantly changing consumer needs and taking advantage of our product strength.
Meanwhile, the world situation remains unpredictable because the COVID-19 pandemic has not been settled yet. In addition,
we have to assume a continuous rise in cost primarily caused by soaring prices of food ingredients and crude oil. To manage
such risks, we strive to expand businesses by improving supply chains as well as increasing efficiency of the headquartersfunction and store operations. Considering such risks will cause the earnings growth to slow down, we have formulated a planwith a certain degree of impact factored in.
Accordingly, in terms of operating results for the fiscal year ending October 31, 2022, we forecast nets sales of ¥380,000
million, operating profit of ¥28,800 million, ordinary profit of ¥29,200 million, and profit attributable to owners of parent of¥19,800 million on a consolidated basis.

2. Basic Policy Regarding Selection of Accounting Standards
With respect to accounting standards, we apply Japanese GAAP to ensure comparability with other domestic competitors.

-4-

3. Consolidated Financial Statements and Notes(1) Consolidated balance sheets
Previous fiscal year
(As of October 31, 2020)(Millions of yen)
Current fiscal year
(As of October 31, 2021)

AssetsCurrent assets:
Cash and deposits

69,81057,799Notes and accounts receivable - trade17,546

19,837

Merchandise and finished goods

9,065

12,817298

353

Raw materials and supplies

1,222

1,493

Other

4,227

3,576

(14)

(15)

102,156

95,862Work in process

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

18,31023,474

Accumulated depreciation(6,879)(7,939)Buildings and structures, net

11,43015,534

Machinery, equipment and vehicles

22,72928,253

Accumulated depreciation(11,701)(13,689)

Machinery, equipment and vehicles, net

11,027

14,564

10,353

13,350Land
Leased assets

22

22

(15)

(17)

6

5

Construction in progress

7,686

10,314

Other

2,009

2,462

(1,469)(1,738)539

724

41,04454,493

Goodwill

22

17

Other

524

867

Total Intangible assets

547

884

1,977

1,784

256

1,645

1,769

1,470

Leasehold and guarantee deposits

356

430

Other

292

392

Allowance for doubtful accounts

(224)

(226)

Total investments and other assets

4,426

5,496

46,01960,874

148,175

156,737

Accumulated depreciation
Leased assets, net

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets

Total non-current assets
Total assets-5-

(Millions of yen)Previous fiscal year
(As of October 31, 2020)

Current fiscal year
(As of October 31, 2021)

Liabilities
Current liabilities:
Accounts payable - trade22,161

25,158

Short-term borrowings

14,59815,1550

1

Income taxes payable

4,812

5,194

Provision for bonuses

299

354

Other

5,033

5,182

Total current liabilities

46,90651,047

34,69019,534

Lease obligations

Non-current liabilities:
Long-term borrowings
Lease obligations

7

4

Deferred tax liabilities

128

117

Retirement benefit liability

612

713

Guarantee deposits received

6,048

6,512

332

465

39

58

Asset retirement obligations
Provision for share awards for directors(and other officers)
Other

140

64

41,99927,471

88,90678,518

Share capital

64

500

Capital surplus

8,539

9,581

Retained earnings

60,24376,592

Treasury shares(9,465)(9,135)

Total shareholders’ equity

59,38077,539Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:

Accumulated other comprehensive income:
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

13

62(1,634)(1,190)Total valuation and translation adjustments(1,621)(1,127)

Share acquisition rights

1,510

1,807

Total net assets

59,26878,218148,175

156,737

Total liabilities and net assets-6-

(2) Consolidated statements of income and quarterly consolidated statements of comprehensive income
Consolidated statements of income

Net sales

For the fiscal year ended
October 31, 2020
(From November 1, 2019
to October 31, 2020)
340,870(Millions of yen)
For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)
362,064

Cost of sales

295,671

318,940

Gross profit

45,19843,123

Selling, general and administrative expenses:
Advertising expenses

169

158

Rent expenses on land and buildings

1,832

564

Freight costs

5,434

6,378

415

459

Promotion expenses
Outsourcing expenses

688

625

6,908

3,316

Legal welfare expenses

750

448

Provision for bonuses

126

191

Retirement benefit expenses

144

90

Depreciation
Provision for bonuses for directors(and other officers)
Provision of allowance for doubtful accounts

706

494

15

18

17

1

Amortization of goodwill

79

5

Other

4,056

3,058

Total selling, general and administrative expenses

21,347

15,812

23,851

27,311

Interest income

252

101

Dividend income

00Lease revenue

79

110

Gain on valuation of derivatives–

220

Foreign exchange gains

–

826

124

529

Wages, salaries and expenses

Operating profit
Non-operating income:Subsidy income
Fuel sale income

60

67

Other

393

241

Total non-operating income

910

2,097

Interest expenses

318

181

Rental costs

28

29

Loss on valuation of derivatives

64–

Commission expenses

11Foreign exchange losses

6–

Fuel sale cost

58

64

Provision of allowance for doubtful accounts

443

16

Other

194

28

1,116

321

23,64629,087

Non-operating expenses:

Total non-operating expenses
Ordinary profit-7-

For the fiscal year ended
October 31, 2020
(From November 1, 2019
to October 31, 2020)(Millions of yen)
For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)

Extraordinary income:Gain on sale of non-current assets

103

Gain on sale of shares of subsidiaries and associates

245

–

2

18

352

24

98

70

Loss on sale of non-current assets

40

127

Provision for loss on store closings

112–

Loss on store closings

12–

Impairment losses

1,503

176

Total extraordinary losses

1,767

373

Profit before income taxes

22,231

28,738

Income taxes - current

8,013

8,877

Income taxes - deferred

19

268

Total income taxes

8,032

9,145

Profit14,19819,592(849)–

15,047

19,592Gain on reversal of share acquisition rights
Total extraordinary income

5

Extraordinary losses:
Loss on retirement of non-current assets

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-8-

Consolidated statements of comprehensive income

Profit

For the fiscal year ended
October 31, 2020
(From November 1, 2019
to October 31, 2020)
14,198(Millions of yen)
For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)
19,592Other comprehensive income:
Valuation difference on available-for-sale securities

14

49

Foreign currency translation adjustment

37

444

Total other comprehensive income

51

494

14,25020,08615,09920,086(849)–

Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-9-(3) Consolidated statements of changes in equity
For the fiscal year ended October 31, 2020 (From November 1, 2019 to October 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
Balance, November 1, 2019
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Disposable of treasury
sharesIncrease in retained
earnings resulting fromexclusion of subsidiaries
from consolidation
Net change of items otherthan shareholders’ equity
Total changes of items
during period
Balance, October 31, 2020

Capital surplus
64

Retained earnings

8,405

Treasury shares

47,11845,946(2,150)(2,150)15,047

15,047

133

175

309

228

228
–

–

133

13,124

175

13,43464

8,539

60,243(9,465)59,380

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance, November 1, 2019

Total

(9,641)(1)Foreign currencytranslation
adjustment(1,672)

Total(1,673)

Shareacquisitionrights

Noncontrollinginterests

787

5,507

Total
net
assets50,568Changes of items during
periodDividends of surplus–(2,150)

Profit attributable toowners of parent–

15,047

–

309

–

228

Disposable of treasury
sharesIncrease in retained
earnings resulting fromexclusion of subsidiaries
from consolidation
Net change of items otherthan shareholders’ equity

14

37

51

722

(5,507)(4,733)

Total changes of items
during period

14

37

51

722

(5,507)

8,700

Balance, October 31, 202013

(1,634)(1,621)

1,510–

59,268- 10 -

For the fiscal year ended October 31, 2021 (From November 1, 2020 to October 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
Balance, November 1, 2020
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposable of treasury
sharesIncrease in retained
earnings resulting fromexclusion of subsidiaries
from consolidation
Net change of items otherthan shareholders’ equity
Total changes of items
during period
Balance, October 31, 2021

Capital surplus
64

Retained earnings

Treasury shares

60,243(9,465)

8,539(3,242)

19,592

19,592
(0)

(0)

330

1,809

(436)

–
–

436

1,042

16,349330

18,158500

9,581

76,592(9,135)77,539Share
AcquisitionrightsTotal net assets

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance, November 1, 2020

59,380(3,242)

1,478
436

Total

13

Foreign currencytranslation
adjustment(1,634)

Total(1,621)

1,510

59,268Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposable of treasury
sharesIncrease in retained
earnings resulting fromexclusion of subsidiaries
from consolidation
Net change of items otherthan shareholders’ equity–(3,242)–

19,592

–

(0)

–

1,809

–

–

49

444

494

296

791

Total changes of items
during period

49

444

494

296

18,949Balance, October 31, 2021

62

(1,190)(1,127)

1,807

78,218- 11 -

(4) Consolidated statements of cash flows
For the fiscal year ended
October 31, 2020
(From November 1, 2019
to October 31, 2020)(Millions of yen)
For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)

Cash flows from operating activities:
Profit before income taxes

22,231

28,738Depreciation

3,632

4,151

Impairment losses

1,503

176

840

808

460

2

6

55

Share-based payment expenses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability

150

100

Interest and dividend income

(253)

(101)

Loss (gain) on valuation of derivatives

64

(220)

Interest expenses

318

181

Foreign exchange losses (gains)
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of property, plant and equipment

(26)

(936)

(245)

–

(63)

121

Loss on retirement of property, plant and equipment

98

69

Decrease (increase) in trade receivables(1,952)(2,283)

Decrease (increase) in inventories(2,864)(4,050)Decrease (increase) in other current assets

(195)

(237)

Increase (decrease) in trade payables

1,642

3,002

Increase (decrease) in other current liabilities

726

760

Increase (decrease) in guarantee deposits received

408

463

Decrease (increase) in advance payments to suppliers

367

(787)

Other, net

63

218

Subtotal

26,91430,234

Interest and dividends received

258

91

Interest paid

(300)

(189)

Income taxes paid

(7,328)(8,874)

Net cash provided by (used in) operating activities

19,543

21,261- 12 -

(Millions of yen)
For the fiscal year ended
October 31, 2020
(From November 1, 2019
to October 31, 2020)

For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)

Cash flows from investing activities:
Payments into time deposits

(962)

(685)

Proceeds from withdrawal of time deposits

950

1,225

Purchase of property, plant and equipment(12,011)(17,994)

Proceeds from sale of property, plant and equipment

238

69

Purchase of intangible assets

(114)

(434)

Purchase of investment securities(5)–

Proceeds from sale of investment securities

2

240

Purchase of shares of subsidiaries and associates
Payments for sale of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of securities(0)–(5,136)–(5,000)–

Proceeds from sale of securities

5,000

–

Loan advances

(271)

(63)

90

517

Proceeds from collection of loans receivable
Payments for acquisition of businesses

(150)

–

53

(282)

(17,314)(17,407)

Proceeds from long-term borrowings

11,660–

Repayments of long-term borrowings(13,080)(14,598)

900–(1,279)

–

–

(0)

246

1,316

9

–

(2,150)(3,242)

Repayments of finance lease obligations

(10)

(1)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(3,704)(16,526)42

1098(1,433)(11,574)

Cash and cash equivalents at beginning of period

69,71868,285

Cash and cash equivalents at end of period

68,28556,710

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities:

Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury shares
Proceeds from disposal of treasury shares
Proceeds from share issuance to non-controllingshareholders
Dividends paid

- 13 -

(5) Notes to consolidated financial statements(Going concern assumption)
Not applicable.

(Segment information)
1. Overview of reportable segment
The reportable segment of the Company are components for which discrete financial information is available and whose
operating results are regularly reviewed by the Board of Directors to make decisions about allocation of resources and assess
its performance.
We have business headquarters in head office to manage stores and restaurants as a franchisor of each business, and work on
business activities based on comprehensive domestic and overseas strategies for our products and services.
Also, to resolve power shortage by stably supplying safe and reliable energy and address environmental issues including
global warming, we engage in the solar power business and the biomass power business in accordance with Feed-in Tariffs(FIT) for renewable energy sources under the “Act on Special Measures concerning the Procurement of Renewable Electric
Energy by Operators of Electric Utilities of Japan” enacted on July 1, 2012.
Furthermore, we developed the Cook Innoventure Business to promote the restaurant business through, and provide foodproducts produced by our group companies to, G.communication Group, an operator of approximately 600 restaurants
nationwide, by making it a subsidiary of the Company. In the fiscal year ended October 31, 2020, we lost control of Cook
Innoventure Co., Ltd. due to the transfer of all of its shares and the retirement of the executives whom we sent to thecompany. As such, Cook Innoventure Co., Ltd., G.communication Co., Ltd., G.taste Co., Ltd. (presently Yakiniku Sakai
Holdings Inc.), and 11 other consolidated subsidiaries, which comprised the Cook Innoventure Business, were excluded fromthe scope of consolidation on April 1, 2020, the deemed date of sale.
Accordingly, our reportable segments consist of three segments: the Gyomu Super Business to manage Gyomu Super storesas a franchisor (franchise headquarters); the Restaurant & Delicatessen Business to operate restaurants and delicatessen shops
directly or as a franchisor; and the Eco Renewable Energy Business to stably supply safe and reliable energy.

2. Method of calculating the amount of net sales, profit or loss, assets, and other items by reportable segment
The accounting standards and methods for the business segments subject to segment reporting are largely identical to thedescription in “Significant Accounting Policies for the Consolidated Financial Statements.”
Segment profit is the figure on a basis of operating profit.
Intersegment sales or transfers is calculated at prevailing market prices.

- 14 -

3. Information on amounts of net sales, profit or loss, assets, and other items by reportable segment
For the fiscal year ended October 31, 2020 (from November 1, 2019 to October 31, 2020)(Millions of yen)
Reportable Segment
Gyomu
Super
Business
Net sales
Sales toexternalcustomers

Restaurant
Eco
Cook
&
Renewable
Innoventure
Delicatessen
EnergyBusiness
Business
Business

Total

Other
*1

Total

Adjustment Consolidated*2

320,1102,508

15,772

2,401

340,79377

340,870–

340,870

Intersegment
sales ortransfers

1,617

130

–

–

1,748

–

1,748

(1,748)–

Total

321,728

2,639

15,772

2,401

342,54177

342,618(1,748)340,870

Segment
profit (loss)

26,449

(68)

379

304

27,065(98)

26,967(3,115)23,851

Segment assets

96,754

2,329–

15,773

114,856

85

114,942

33,232

148,175

2,213

70

386

784

3,454

9

3,463

169

3,632

Other items:
Depreciation*3

Increases inproperty, plantand equipment
7,962
253
713
3,421
12,352
44
12,396492
12,889and intangible
assets*3*1 The Other businesses are those not classified into any reportable segment, including the rental facilities businessand 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 ¥(3,115) million is corporate expenses unallocated toeach reportable segment. The expenses are general and administrative expenses unattributable to any
reportable segments.
(3) The amount of adjustment for segment assets of ¥33,232 million is corporate assets unattributable to any
reportable segments. Most of those assets belong to the Company’s administrative departments(4) The amount of adjustment for depreciation of ¥169 million is the amount of corporate expenses unattributable
to any reportable segments.
(5) The amount of adjustment for increases in property, plant and equipment and intangible assets of ¥492 million
is an increase in corporate assets unattributable to any reportable segments.
*3 Increases in property, plant and equipment and intangible assets include recognition and amortization of long-term
prepaid expenses.
*4 In the fiscal year ended October 31, 2020, Cook Innoventure Co., Ltd., G.communication Co., Ltd., G.taste Co., Ltd.
(presently Yakiniku Sakai Holdings Inc.), and 11 other consolidated subsidiaries, which comprised the Cook
Innoventure Business were excluded from the scope of consolidation. Accordingly, segment assets as well as net
sales, segment profit, and other items (depreciation, increases in property, plant and equipment and intangible assets)of the Business have been unrecorded since the beginning of the third quarter of the fiscal year ended October 31,
2020.

- 15 -

For the fiscal year ended October 31, 2021 (from November 1, 2020 to October 31, 2021)(Millions of yen)
Reportable Segment
Gyomu Super
Business

Restaurant&
Delicatessen
Business

355,466

3,889

2,668

Intersegment
sales ortransfers

1,742

148

Total

357,209

Segment
profit (loss)
Segment assets

Net sales
Sales toexternalcustomers

Eco
Renewable
EnergyBusiness

Other
*1

Total

362,02440

362,064–

362,064

–

1,891

–

1,891

(1,891)

–

4,038

2,668

363,91640

363,956(1,891)

362,064

31,035(455)

480

31,060(52)

31,008(3,696)27,311

107,392

3,005

20,773

131,172141

131,31325,423

156,737

2,950

139

863

3,953

9

3,962

188

4,151

Total

Adjustment Consolidated*2

Other items:
Depreciation*3

Increases inproperty, plantand equipment
7,040
1,387
5,399
13,82743
13,871
4,514
18,385and intangible
assets*3*1 The Other businesses are those not classified into any reportable segment, including the rental facilities businessand 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 ¥(3,696) million is corporate expenses unallocated toeach reportable segment. The expenses are general and administrative expenses unattributable to any
reportable segments.
(3) The amount of adjustment for segment assets of ¥25,423 million is corporate assets unattributable to any
reportable segments. The assets are attributable to the Company’s administrative departments.
(4) The amount of adjustment for depreciation of ¥188 million is the amount of corporate expenses unattributable
to any reportable segments.
(5) The amount of adjustment for increases in property, plant and equipment and intangible assets of ¥4,514
million is an increase in corporate assets unattributable to any reportable segments.
*3 Increases in property, plant and equipment and intangible assets include recognition and amortization of long-term
prepaid expense.
*4 In the fiscal year ended October 31, 2020, we lost control of Cook Innoventure Co., Ltd. due to the transfer of allof its shares and the retirement of the executives whom we sent to the company. As such, Cook Innoventure Co.,
Ltd., G.communication Co., Ltd., G.taste Co., Ltd. (presently Yakiniku Sakai Holdings Inc.), and 11 otherconsolidated subsidiaries, which comprised the Cook Innoventure Business, were excluded from the scope of
consolidation on April 1, 2020, the deemed date of sale.
Also, we reviewed the classification of business segments based on perspectives of our group’s businessexpansion and management control system. Since the beginning of the period under review, the Restaurant &Delicatessen Business has been renamed from the Kobe Cook Business to incorporate the BBQ business, which
was previously classified into the Other businesses.
The segment information for the fiscal year ended October 31, 2020 was prepared according to the reportablesegments applied to the fiscal year ended October 31, 2021.

- 16 -

(Per share information)

Net assets per share
Basic earnings per share
Diluted earnings per share

For the fiscal year ended
October 31, 2020
(From November 1, 2019
to October 31, 2020)

For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)¥267.42¥69.86¥68.24¥350.49¥90.48¥88.52(Notes)1. For the purpose of calculating the amount of net assets per share, the number of shares of the Company held by a Board Benefit
Trust (176,000 thousand shares (on a post-stock split basis) and 176,000 thousands shares at the end of the previous and current
fiscal years, respectively) was included in the number of treasury shares, which was to be deducted from the number of sharesissued at the end of the fiscal year.
For the purpose of calculating basic earnings per share and diluted earnings per share, the number of shares of the Company
held by the Trust (176,000 thousand shares (on a post-stock split basis) and 176,000 thousands shares at the end of the previous
and current fiscal years, respectively) was included in the number of treasury shares, which was to be deducted from thecalculation of the average of shares of common shares outstanding during the period.
2. As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, basic earnings per share and diluted
earnings per share were calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal
year ended October 31, 2020.
3. The calculation basis for basic earnings per share and diluted earnings per share are shown as follows.

Basic earnings per share
Profit attributable to owners of parent (millions of yen)
Profit not attributable to common shareholders (millions of yen)
Profit attributable to common shareholders of parent (millions of yen)
Average number of shares of common shares outstanding during the
fiscal year (shares)
Diluted earnings per share
Adjustment to profit attributable to owners of parent (millions of yen)
(Of which, interest expenses after deducting the amount equivalent totaxes) (millions of yen)
Number of shares of common shares to be increased (share)(Of which, number of share acquisition rights) (share)
Summary of potentially dilutive shares not included in the calculationof diluted earnings per share due to their anti-dilutive effect(Subsequent events)
Not applicable- 17 -For the fiscal year ended
October 31, 2020
(From November 1, 2019
to October 31, 2020)

For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)

15,047–
15,047

19,592–
19,592

215,403,790

216,527,896––
5,094,130(5,094,130)–

4,810,911(4,810,911)–