Supplementary Material for

FY2021 Q3 Financial Results

September 13, 2021

◤◤ Contents⚫ Consolidated Financial Highlights (Cumulative)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 Business12⚫ Dividends

14⚫ Consolidated Financial Forecast15◤◤ Consolidated Financial Highlights (Cumulative)<Millions of yen>

<Millions of yen>

Net Sales
270,000

20.0%

16.3%
36,000

15.9%

15.0%

14.1%

16.0%

12.1%

240,000

32,000210,000

259,362

267,374

220,351

180,000
187,293

198,364

FY17 Q3<Millions of yen>

12.0%

28,00024,00035,14530,48036,4938.0%

32,41029,7224.0%

20,000150,000

25,000Gross Profit

40,000FY18 Q3

FY19 Q3

FY20 Q3

9.0%

FY17 Q3

FY21 Q3

12.0%

22,0009.0%

18,0006.0%

14,0009.4%

6.0%

20,000FY18 Q3

FY19 Q3

売上総利益
Gross
profit<Millions of yen>

SG&A Expenses

10.3%

0.0%

FY20 Q3

Operating Profit
5.9%

FY21 Q3

売上高総利益率
Grossmargin

6.6%

7.9%
8.0%

7.2%

6.0%

6.9%
15,00019,322
10,00017,93920,652

4.2%
17,813

18,6793.0%

5,000

11,158
0.0%

FY17 Q3

FY18 Q3

FY19 Q3

販売管理費
SG&A
expenses

FY20 Q3

FY21 Q3

売上高販管費率
SG&A ratio

14,493

10,00011,181

21,2284.0%

2.0%

11,7836,000

0.0%
FY17 Q3

FY18 Q3
営業利益 profit
OperatingNote: Fiscal year (FY) represents the one-year period from November 1 to October 31 of the following year.

FY19 Q3

FY20 Q3

FY21 Q3

売上高営業利益率
Operating margin1

◤◤ Consolidated Financial Highlights (Cumulative)<Millions of yen>

<Millions of yen>

Ordinary Profit

24,0008.3%

20,000
6.4%

5.8%

6.6%

7.1%

16,00022,2059.0%

12,0006.0%

3.0%

14,606
11,94515,000FY19 Q3

経常利益profit
Ordinary

3.4%

6,434
0.0%

FY18 Q3

FY20 Q3

8.0%
5.6%

6,000

11,5918,000
FY17 Q3

9,000

Owners of Parent

4.0%

4.2%

6.0%

4.5%
14,883

4.0%

11,65618,48512,000

12.0%

Profit Attributable to

FY21 Q3

売上高経常利益率
Ordinary margin

7,941

9,292

2.0%

3,000

0.0%
FY17 Q3

FY18 Q3

FY19 Q3

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

FY20 Q3

FY21 Q3

売上高当期純利益率
Netmargin[Financial Overview]⚫ Net sales
Net sales increased by ¥8,011 million (3.1%) year on year, driven by the Gyomu Super Business, which was grown by theaccelerated store openings and the increased exposure on television, magazines, newspapers, and social media.
⚫ Gross profit
Gross profit decreased by ¥4,082 million (11.2%) year on year because Cook Innoventure Co., Ltd., which mainly operates therestaurant business, was excluded from the scope of consolidation from FY2020 Q3.
⚫ SG&A expenses
SG&A expenses decreased by ¥6,632 million (37.2%) year on year due to decreases in personnel expenses and rent expenses
caused by the exclusion mentioned above.
⚫ Operating profit
As a result of the above, operating profit increased by ¥2,549 million (13.7%) year on year.
⚫ Ordinary profit
Ordinary profit increased by ¥3,720 million (20.1%) year on year primarily due to the recording of foreign exchange gains.
⚫ Profit attributable to owners of parent
As a result of the above, profit attributable to owners of parent increased by ¥3,227 million (27.7%) 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 933 storesas of July 31, 2021.

◼ The ratio of private label products increased year on year partly
because of these products being featured on television,magazines, newspapers, and social media.
◼ On August 26, we opened an experimental store under our
direct operations in Nishinari-ku, Osaka-shi, using next
generation technology such as AI camera.
<Millions of yen>

<Millions of yen>

Net Sales

Operating Profit(cumulative)(cumulative)
280,000

25,00020,000240,000

12.0%
7.4%

8.2%

7.3%

8.5%

15,000200,000
239,825
160,000
161,386

175,315

262,749

193,895

FY18 Q3

FY19 Q3

10,00011,866

12,756

FY17 Q3

FY18 Q3

9.0%

23,925

15,810

FY20 Q3

FY21 Q3

6.0%
3.0%

5,000

120,000
FY17 Q3

20,3169.1%

0.0%
FY19 Q3

営業利益profit
Operating

FY20 Q3

FY21 Q3

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◤◤ Outline of Gyomu Super Franchise Agreement
We operate Gyomu Super stores under a franchise system except 2 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 2 stores in Hyogo prefecture 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 July 31, 2021）(Standard Store Franchisees)

Directly managed areas

Indirectly managed areas

Number of franchisees

8815Type 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
FY2021 Q3 (alone):

Opened 13 stores
Closed 2 stores
Net increase of 11 stores

Q3 (cumulative): Net increase of 54 stores(90.0% progress as of July 31, 2021)
Strong store openings in the Kyushu area
under direct management: +16 stores for Q3 (cumulative)

Number of Stores by Area
866 stores as ofJuly 31, 2020

Hokkaido 16
Kyushu 24

関西直轄
Kansai
228店舗

Chiba

245

関東直轄
Kanto
191店舗

238

地方エリア
315店舗
Other
（＋2）

40
千葉県
Saitama神奈川県
33店舗
53 55店舗Kanagawa
東京都
64店舗

68
Tokyo
77

343
(Stores)

Total Number of Gyomu Super Stores

950

933

939

933 stores (+67) as ofJuly 31, 2021

Hokkaido 17 (+1)
Kyushu 46 (+22)

900
879

Kansai

Chiba

253
850

(+8)

845

Kanto
255
(+17)

Other

800
FY20192019年

FY2020
2020年

10月

10月

FY2021
Q3
2021年(cumulative)
7月

FY2021
2021年
Target
10月目標

362
(+19)

43
Saitama (+3)
58
Kanagawa
(+5)

Tokyo

72

(+4)

82

(+5)

Directly managed areas: Hokkaido, Kanto, Kansai, and Kyushu
Indirectly managed areas: Other5◤◤ Year-on-year Changes in Product Shipments to
Gyomu Super Stores◼ Despite the already high performance for FY2020 due to the increased demand for eating at home,
the product shipments for FY2021 Q1-Q3 still remained strong with a year-on-year increase.
[Existing Stores in Directly Managed Areas]
Monthly Trends for Product Shipments<YoY Change (%)>

135

128.6

130

110
105 103.6

95

109.1
110.4

112.5
105.3

105.0 104.3

103.3

125

115.8

101.1

111.0
106.8 107.0

106.8

111.2

109.7

94.2 103.4

91.5

103.5

120
108.0

108.4

94.4

136.6

135.8

131.1

130

113.3 113.6
110.9[All Stores Nationwide]
Monthly Trends for Product Shipments

135

119.6

120

100

140

131.0
124.1

125

115

<YoY Change (%)>

107.4

109.7

109.8

115

124.9

110.0

110
105

107.4

100

90

122.6

119.8
115.9 120.1

117.8

112.5

110.2 111.5

115.1 115.3

105.5

109.4

110.2

115.5

110.3

116.7
113.3

114.3

114.5

115.9 114.4

101.7 110.1 110.8 111.9
98.9

102.4

95
11月
Nov. 12月
Dec.

1月
Jan.

2月
Feb.

3月
Mar. 4月
Apr.

FY2019
2019年

5月
May

6月
Jun.

FY2020
2020年

7月
Jul.

8月
Aug.

9月
Sep. 10月
Oct.

11月
Nov. 12月
Dec.

1月
Jan.

2月
Feb.

2021年
FY2021

3月
Mar.

2019年
FY2019

4月
Apr.

5月
May
2020年
FY2020

6月
Jun.

7月
Jul.

8月
Aug.

9月
Sep. 10月
Oct.

FY2021
2021年[Year-on-year % Changes in Product Shipments to Gyomu Super Stores]
Products Shipments toExisting Stores

FY2021

Directly
managedareas
Nationwide

Existing
storesAll
storesAll
stores

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

H1

May

Jun.

Jul.

Q1 (alone):108.8%

103.6

113.3

109.1

104.3

94.4

91.5

101.9

94.2

103.4

103.5

Q2 (alone):

96.1%

109.0

119.7

116.1

111.0

100.5

98.0

108.3

100.9

110.5

111.0

Q3 (alone):

99.8%

110.0

120.1

115.3

112.5

102.4

98.9

109.1

101.7

111.5

110.8

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

Q3 (cumulative): 101.3%

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 in January and
April 2021, respectively. The number is one of the largest in Japan’s
supermarket industry. Our original products produced at these plants
are available only at Gyomu Super stores and enjoy strong consumer
acceptance.

◼ Products produced by Kobe Bussan Group’s plants
Produced at our new
plant in Miyagi

Produced at our new
plant in Okayama

Spicychicken

Chickencutlets

Milk pack dessert(Mizu-yokan)¥321 (6 pieces)¥537 (1 kg)¥267 (1 kg)

Frozen chicken
boneless leg

Frozenblueberries

Sunflower
seeds¥699 (2 kg)¥483 (500 g)¥246 (260 g)

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 theworld at reasonable prices at home.

Ratio of Private Label Products(cumulative)

34.0%

33.0%

32.0%

32.75%

31.47%

33.01%◼ Import products
31.38%

31.45%

31.0%
30.34%

32.94%

31.65%

30.74%

30.68%

Q3
3Q

Q4
4Q

30.88%

30.0%
Q1
1Q

Q2
2Q
2019年
FY2019FY20202020年

FY2021
2021年[Ratio of Private Label Products]
Q1 (alone): 32.75%
Q2 (alone): 33.24%
Q3 (alone): 32.82%

Note: All prices exclude 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.

◼ The Restaurant & Delicatessen Business, which was
renamed from the Kobe Cook Business, has now
incorporated the BBQ business, which was previouslyclassified into the Other businesses.
◼ Kobe Cook World Buffet has reviewed its operations
to improve the breakeven point amid the COVID-19
crisis.
◼ Premium Karubi and Chisouna recorded strong sales.

Kobe Cook World Buffet<Millions of yen>

<Millions of yen>

Net Sales

Premium Karubi

Operating Profit(cumulative)(cumulative)
3,000

2,632

2,500

1,911

1,500

1,000

1,326

4.7%

80
72

-29
-20

2,000

Chisouna

-120

1,520

5.0%
-24

-49

-308

-1.3%

-2.2%

0.0%
-5.0%

-5.2%
-11.7%-220-10.0%

944-320-15.0%
FY17 Q3500
FY17 Q3

FY18 Q3

FY19 Q3

FY20 Q3

FY21 Q3

FY18 Q3

FY19 Q3

営業利益 profit
Operating

FY20 Q3

FY21 Q3

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.

8◤◤ Restaurant & Delicatessen Business
Kobe Cook World Buffet
Total Number of Restaurants: 15 (as of July 31, 2021)

FY2021 Q3 (alone):
Opened 1 restaurant
Q3 (cumulative): Net decrease of 2 restaurants
Remained strong at Nara Koryo restaurant (located in Koryo-cho,
Kitakatsuragi-gun, Nara) opened in June even amid the COVID-19 crisis.
Maintained ongoing efforts such as promoting a takeout service to cater forcustomer needs.

Harborland Restaurant Renovated to Reopen
as Restaurant under Direct Operations
On July 12, Kobe Cook World Buffet reopened Harborland restaurant (located in Chuo-ku,
Kobe-shi, Hyogo) under our direct operations. As a directly operated restaurant, we take on
various initiatives to operate restaurants more efficiently including reducing labor cost by
introducing self checkout; digitalizing manuals; and launching takeout, subscription (aflat-rate system for lunch box service), and delivery services.

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.

Sample of takeout menu
Note: Products and prices may vary byshop and season.
9◤◤ Restaurant & Delicatessen BusinessPremium Karubi
Total Number of Restaurants: 8 (as of July 31, 2021)

FY2021 Q3 (alone):
Opened 2 restaurants
Q3 (cumulative): Net increase of 5 restaurants
Steadily increased the number of the restaurants even amid the COVID-19 crisis.
Captured more attention from media, resulting in increased exposure on television and websites.

What is Premium Karubi?
Premium Karubi is a BBQ restaurant chain directly operated by Kobe
Bussan since 2018. We seek to differentiate it from other competitors
by offering a wide selection of premium dishes such as the best
selected meats and in-house made desserts and gelatos.

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
Opened on June 10

Kawaguchi Kita

2-43-10 Shibanakada, Kawaguchi-shi, Saitama

Shinkoiwa

3-40-11 Matsushima, Edogawa-ku, Tokyo

Opened on July 21

Note: Menus may vary by restaurant and season.

10◤◤ Restaurant & Delicatessen Business
Chisouna
Total Number of Shops: 42 (as of July 31, 2021)

FY2021 Q3 (alone):
Opened 5 shops
Q3 (cumulative): Net increase of 17 shops
Remained strong due to an increase in Gyomu Super customers andmenu changes.
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 FY2021 Q3 (alone)Endo642-１ Endo, Fujisawa-shi, Kanagawa

Minamiikoma

93 Kobirao-cho, Ikoma-shi, Nara

Meishinohama

２-４-１ Meishin-cho, Amagasaki-shi, Hyogo

Orio

2-20-10 Asakawa, Yahatanishi-ku, Kitakyushu-shi,
Fukuoka

KurumeHigashikushihara

686ｰ１ Higashikushihara-machi, Kurume-shi, Fukuoka

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.

◼ In May, a solar power plant (9.9 MW) started
operating in Misaki-cho, Osaka.
◼ We plan to gradually start operating solar
power plants in Fukushima and Miyagi.
Kobe Bussan’s Solar Power Plant(Photo: Solar Power Plant in Misaki-cho, Osaka)<Millions of yen>

<Millions of yen>

Net Sales(cumulative)
1,981

2,000

1,808

1,788

19.2%

(cumulative)
14.5%

16.4%
13.0%

10.0%
380

150

626
50

365

-50
0

297
0.0%

FY18 Q3

FY19 Q3

FY20 Q3

FY21 Q3

233

5.0%
0.0%

91
0
FY17 Q3

FY17 Q3

20.0%
15.0%

250

1,000

500

Operating Profit

450
350

1,500

Kobe Bussan’s Woody Biomass Power Plant-5.0%
FY18 Q3

FY19 Q3

営業利益 profit
Operating

FY20 Q3

FY21 Q3

営業利益率
Operatingmargin12

◤◤ 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 July 31, 2021)[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] New
3 in Osaka
14.2 MW[Solar Power]
1 in Tokushima
2.1 MW[Solar Power]
1 in Wakayama
1.6 MW13◤◤ Dividends
Kobe Bussan regards returning profits toshareholders as one of key management<Yen>

Dividend per Share

20

25%

issues. Our basic policy is to secure funds
necessary for our business growth and21.55%
15

distribute profits to shareholders according

to the operating results.
Having revised upward the consolidated
financial forecast for FY2021, we plan to20%

17.86%
15.81%

16.68%

10

20.00

15%

15.00
5
6.25

8.12

10%

10.00

increase a year-end dividend for FY2021
from ¥15.00 to ¥20.00 per share (or from¥30.00 to ¥40.00 had the stock split notbeen carried out).

0

5%
2017年
FY2017

2018年
FY20182019年
FY20192020年
FY2020

10月期

10月期

10月期

10月期

1株当たり配当金
Dividend
per share

2021年
FY2021
Forecast
10月期予想配当性向(連結)
Payoutratio

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.

14◤◤ Consolidated Financial Forecast◼ We revised upward the financial forecast for FY2021 in June.
Progress towards FY2021 Forecast
Q3 actual (cumulative)

YoY

Net Sales

267,374

103.1%

Operating profit

21,228113.7%

Ordinary profit

22,205120.1%

Profit attributable toowners of parent

14,883127.7%(Millions of yen)

Full-year forecast

Progress towards
full-year forecast

Before upward revision Before upward revision
358,000

74.7%

341,000

78.4%

29,40072.2%

24,80085.6%

30,00074.0%

24,80089.5%

20,00074.4%

16,00093.0%

Gyomu Super Business Guideline towards FY2021 Forecast
FY2021 target

Action plan

Target ofstore openings

Net increase of 60 stores(Revised upward from thenet increase of 45 stores of
the initial target for FY2021)

Product
shipments toexisting stores

Higher than FY2020 results

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 FY2020 results, which were favorably impacted by
the COVID-19 infections.
15• This material contains forward-looking statements based onassumptions, estimates, and plans as of September 13, 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.
• 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.
ir@kobebussan.co.jp