Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Three Months Ended January 31, 2021
(Under Japanese GAAP)
March 15, 2021
Company name: Kobe Bussan Co., Ltd.
Listing:
Tokyo Stock Exchange
Security code:
3038
URL:
https://www.kobebussan.co.jp/
Representative:
Hirokazu Numata, President and Representative Director
Contact:
Masahiro Sakamoto, Manager, Corporate Planning Department
Phone:+81-79-496-6610
Scheduled date to file Quarterly Securities Report:
March 16, 2021
Scheduled date to commence payment of dividends:–
Preparation of supplementary material on quarterly financial results:
Yes (https://www.kobebussan.co.jp/ir/news.php)
Investors meeting presentation for quarterly financial results:
No(Amounts less than one million yen have been omitted.)1.

Consolidated financial results for the three months ended January 31, 2021 (from November 1, 2020 to January 31, 2021)(1) Consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
January 31, 2021
85,045
4.2
7,034
24.9
7,019
22.0
4,598
29.2
January 31, 2020
81,597
15.5
5,634
33.5
5,751
42.2
3,559
32.1
Note: Comprehensive income
For the three months ended January 31, 2021: ¥4,626 million [22.6%]
For the three months ended January 31, 2020: ¥3,775 million [34.3%]
Basic earnings
per share

Diluted earnings
per share

Three months ended
Yen
Yen
January 31, 2021
21.29
20.80
January 31, 2020
16.55
16.22
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-to-asset ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
January 31, 2021
140,488
60,87542.1
273.85October 31, 2020
148,175
59,26839.0
267.42
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of January 31, 2021: ¥59,171 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.
2.

Cash DividendsFirstquarter-end
Yen－－

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Yen
Yen
Yen
0.00
－
30.00

Total

Fiscal year
Yen
Ended October 31, 2020
30.00
Ending October 31, 2021
Ending October 31, 2021 (Forecast)
0.00
－
15.00
15.00
Notes: 1. Revisions to cash dividend forecast published most recently: None
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 ¥15.00 per share (or ¥30.00 had the stock split not been carried out).

3.

Consolidated financial forecast for the fiscal year ending October 31, 2021 (from November 1, 2020 to October 31, 2021)(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
341,000
0.0
24,8004.0
24,8004.9
16,0006.3
74.28
Note: Revisions to earnings forecast published most recently: None
[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): None
(2) Application of accounting methods used specifically for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements(i) Changes in accounting policies due to application of new or revised accounting standards: 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(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury shares)
As of January 31, 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 January 31, 2021:
57,524,508 shares
As of October 31, 2020:
57,614,064 shares(iii) Average number of shares of common shares outstanding during the period
Three months ended January 31, 2021:
216,018,209 shares
Three months ended January 31, 2020:
215,005,032 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,
2020 and January 31, 2021, which was to be deducted from the calculation of the number of shares of treasury
shares as of such periods, and the average number of shares of common shares for the three months ended January
31, 2020 and the three months ended January 31, 2021.
* This financial results report is not subject to audit procedures to be performed by certified public accountants or an audit firm.
* Proper use of earning forecast, and other special notes
The forward-looking statements including earnings forecast contained in this document are based on information currently available
to us and certain assumptions that we believe are reasonable. Accordingly, actual results may differ significantly from the results
anticipated in these forward-looking statements due to a variety of factors. For more information on the assumptions and disclaimers
with respect to earnings and other forecasts, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Results(3) Overview of forward-looking statements including consolidated financial forecast” on page 3 of the Attached Materials.

2

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly operating results··························································································· P. 2
(2) Overview of quarterly financial position·························································································· P. 3
(3) Overview of forward-looking statements including consolidated financial forecast·········································· P. 3
2. Quarterly Consolidated Financial Statements and Major Notes

P. 4(1) Quarterly consolidated balance sheets····························································································· P. 4(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income ·········· P. 6
Quarterly consolidated statements of income ·················································································· P. 6
Quarterly consolidated statements of comprehensive income ································································ P. 7
(3) Notes to quarterly consolidated financial statements ············································································ P. 8
(Going concern assumption)······································································································ P. 8
(Significant changes in shareholders’ equity) ··················································································· P. 8
(Segment information) ············································································································ P. 8

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1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly operating results
During the three months ended January 31, 2021 (from November 1, 2020 to January 31, 2021) (hereinafter the “period underreview”), Japan’s economic outlook remained uncertain, reflecting labor shortage, an increase in logistics costs, and the
COVID-19 pandemic around the world.
Japan’s food retail industry has become more competitive because players in other industries such as e-commerce operatorsand drugstore chains have expanded the sale of food products, and food delivery service providers are coming to the fore.
Additionally, the environment surrounding, and what consumers require of, the food retail industry are rapidly changing. Thechange is caused by an implementation of measures to prevent the COVID-19 infections at restaurants, as well as an increasein the demand for eating at home, resulting from remote work and request for certain restaurants to temporarily close or shorten
opening hours as measures against the spread of COVID-19.
Under such circumstances, with the corporate vision of continuously strengthening “Integrated Food Production & Distribution
Operations,” the Kobe Bussan Group has enhanced competitiveness by proactively developing products. Also, we haveprovided consumers with high quality and attractive products at best prices by being attentive and responsive to their needs.
Consequently, in terms of operating results for the period under review, we reported net sales of ¥85,045 million (up 4.2% year
on year), operating profit of ¥7,034 million (up 24.9%), ordinary profit of ¥7,019 million (up 22.0%), and profit attributable toowners of parent of ¥4,598 million (up 29.2%).
The operating results by business segment are as follows:
Note that Cook Innoventure Co., Ltd., G.communication Co., Ltd., G.taste Co., Ltd., 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 no longer 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.
(i) Gyomu Super BusinessThis business segment covers Gyomu Super stores, selling at best prices not only national label products but also private
label products that are imported directly by ourselves or produced by our group’s domestic plants. In the period underreview, Gyomu Super stores have expanded nationwide with 900 stores as a result of a net increase of 21 stores after
opening 22 stores and closing one.
The breakdown of new store openings was 17 stores in directly managed areas and five stores in indirectly managed areas.
We work on store openings focusing on Kanto and Kyusyu areas, and strongly encourage franchise owners to relocate
stores which have been deteriorated with many years in operation.
Our private label products, which represent Gyomu Super’s attractiveness, have been frequently featured on television,magazines, newspapers, and other media, leading to enhancement of its brand recognition and acquisition of new
customers. Also, we analyze that the increased demand for eating at home amid the COVID-19 crisis helped attract morecustomers to the stores, which contributed to stronger operating results. Consequently, net sales of the Gyomu Super
Business for the period under review stood at ¥83,709 million (up 16.6% year on year).
(ii) Restaurant & Delicatessen BusinessThis business segment covers Kobe Cook World Buffet, one of the largest buffet-style restaurant chains in Japan; Premium
Karubi, a BBQ buffet style restaurant chain where customers enjoy the best selected premium meats; and Chisouna, adelicatessen shop chain focusing on health-conscious food made with minimal additives and preservatives at affordable
prices, based on the philosophy of providing an authentic Japanese dining experience with fresh homemade food.
In the period under review, Kobe Cook World Buffet opened none and closed one restaurant, resulting in 16 restaurants
nationwide. Net sales decreased year on year because certain restaurants have temporarily closed or shortened opening
hours to prevent the COVID-19 infections since early January this year. Premium Karubi opened one restaurant and closed-2-none, resulting in four restaurants nationwide. Although the restaurants have also shortened opening hours, net sales
showed a positive trend given an increase in the number of the restaurants and BBQ popularity. Chisouna opened fourshops and closed none, resulting in 29 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 ¥750 million (down
10.6% year on year).
(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. As we did
not open any power plants in the period under review, we currently operate 16 solar power plants collectively generating
approximately 22.0 MW and one woody biomass plant generating approximately 6.2 MW. The plant count and output
remain unchanged from the end of the previous fiscal year.
Consequently, net sales of the Eco Renewable Energy Business for the period under review stood at ¥581 million (up 8.3%
year on year).

(2) Overview of quarterly financial position(Assets)
Total assets as of January 31, 2021 decreased by ¥7,686 million from a year earlier to ¥140,488 million. This was mainly due
to a decrease in current assets of ¥11,332 million, which was mostly attributable to a decrease in cash and deposits of ¥7,017
million, resulting from repayment of borrowings and payment of dividends.
(Liabilities)
Total liabilities as of January 31, 2021 decreased by ¥9,293 million from a year earlier to ¥79,612 million. This was mainly
due to decreases in income taxes payable of ¥2,589 million, accounts payables - trade of ¥2,545 million, and short-termborrowings of ¥2,360 million.
(Net assets)
Total net assets as of January 31, 2021 increased by ¥1,607 million from a year earlier to ¥60,875 million. This was mainly
due to an increase of retained earnings of ¥1,347 million.

(3) Overview of forward-looking statements including consolidated financial forecast
It remains unchanged from our financial forecast published on December 14, 2020.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets

Previous fiscal year
(As of October 31, 2020)(Millions of yen)
Current quarter(As of January 31, 2021)

AssetsCurrent assets:
Cash and deposits

69,81062,793

Notes and accounts receivable - trade17,546

16,206Merchandise and finished goods

9,065

8,159

298

267

Raw materials and supplies

1,222

1,484

Other

4,227

1,926

(14)

(14)

102,156

90,823

Buildings and structures, net

11,43011,508Land

10,353

10,368Other, net

19,26020,902

Total property, plant and equipment

41,044

42,779547

634

Investments and other assets

4,426

6,252

Total non-current assets

46,01949,665

148,175

140,488

Work in process

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

Intangible assets

Total assets-4-

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

Current quarter(As of January 31, 2021)

Liabilities
Current liabilities:
Accounts payable - trade22,161

19,615

Short-term borrowings

14,598

12,238

Income taxes payable

4,812

2,222

Provision for bonuses

299

137

Other

5,033

4,306

Total current liabilities

46,90638,521

34,69033,668Retirement benefit liability

612

629

Guarantee deposits received

6,048

6,148

332

329

39

43

276

272

41,99941,091

88,906

79,612

Non-current liabilities:
Long-term borrowings

Asset retirement obligations
Provision for share awards for directors(and other officers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:
Share capital64

64

Capital surplus

8,539

8,562

Retained earnings

60,24361,590Treasury shares(9,465)(9,451)

Total shareholders’ equity

59,38060,76513(44)

Foreign currency translation adjustment(1,634)(1,549)Total accumulated other comprehensive income(1,621)(1,593)

Share acquisition rights

1,510

1,703

Total net assets

59,26860,875

148,175

140,488

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

Total liabilities and net assets-5-(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income(Millions of yen)
For the three months ended
For the three months ended
January 31, 2020
January 31, 2021
(From November 1, 2019
(From November 1, 2020
to January 31, 2020)
to January 31, 2021)
Net sales
81,59785,045
Cost of sales

68,616

74,600Gross profit

12,98010,444

Selling, general and administrative expenses

7,346

3,410

Operating profit

5,634

7,034

Interest income

5132

Dividend income

00

Rental income

1818Gain on valuation of derivatives

46–

Subsidy income

14

17

Other

168

57

Total non-operating income

299

125

Interest expenses

85

52

Foreign exchange losses

1

22

Rental costs

7

7

Loss on valuation of derivatives–

15

Provision of allowance for doubtful accounts

14

13

Other

73

30

Non-operating income:Non-operating expenses:

Total non-operating expenses

182

141

5,751

7,019

Gain on sale of non-current assets

120Gain on reversal of share acquisition rights

2–

Total extraordinary income

150Loss on retirement of non-current assets

82Loss on sale of non-current assets–

5

Impairment losses

24–

Loss on store closings

3–

Provision for loss on store closings

13–

Total extraordinary losses

49

8Profit before income taxes

5,717

7,011

Income taxes - current

1,750

1,949

Income taxes - deferred

345

463

Total income taxes

2,095

2,413

Profit

3,621

4,598

62

–

3,559

4,598

Ordinary profit
Extraordinary income:Extraordinary losses:

Profit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Quarterly consolidated statements of comprehensive income

Profit

For the three months ended
January 31, 2020
(From November 1, 2019
to January 31, 2020)
3,621(Millions of yen)
For the three months ended
January 31, 2021
(From November 1, 2020
to January 31, 2021)
4,598

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

0

(57)

Foreign currency translation adjustment

153

85

Total other comprehensive income

153

27

3,775

4,626

3,712

4,626

62

–

Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-7-(3) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable.
(Significant changes in shareholders’ equity)
Not applicable.
(Segment information)
I. For the three months ended January 31, 2020 (from November 1, 2019 to January 31, 2020)
1. Information on amounts of net sales and profit (loss) by reportable segment(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*3

71,792

839

8,392

537

81,561

36

81,597–

81,597

Intersegment
sales ortransfers

623

45

–

–

668

–

668

(668)

–

Total

72,415

885

8,392

537

82,23036

82,266(668)

81,597

Segment
6,074
25
227
46
6,374
(24)
6,350
(715)
5,634
profit (loss)*1 The Other businesses are those not classified into any reportable segment, including the rental facilities business and 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 ¥(715) million is corporate expenses unallocated to each reportablesegment. The expenses are general and administrative expenses unattributable to any reportable segments.
*3 Segment profit (loss) is adjusted with operating income reported on the quarterly consolidated statements of income.
2. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment.
(Significant impairment losses related to non-current assets)
The recorded amount of impairment losses of non-current assets was ¥24 million yen for the three months ended January
31, 2020, of which ¥0 million was incurred by the Gyomu Super Business segment and ¥23 million by the Cook
Innoventure Business segment.

-8-II. For the three months ended January 31, 2021 (from November 1, 2020 to January 31, 2021)
1. Information on amounts of net sales and profit (loss) by reportable segment(Millions of yen)
Reportable Segment
Restaurant&
Delicatessen
Business

Eco
Renewable
EnergyBusiness

Total

Other
*1

Total

83,709750

581

85,041

4

85,045–85,045Intersegment
sales ortransfers

353

35

–

389

–

389

(389)

–

Total

84,063786

581

85,431

4

85,435(389)

85,045Gyomu
SuperBusiness
Net sales
Sales toexternalcustomers

Adjustment Consolidated*2*3

Segment
7,853
(46)
89
7,896
(15)
7,880
(846)
7,034
profit (loss)*1 The Other businesses are those not classified into any reportable segment, including the rental facilities business and 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 ¥(846) million is corporate expenses unallocated to each reportablesegment. The expenses are general and administrative expenses unattributable to any reportable segments.
*3 Segment profit (loss) is adjusted with operating income reported on quarterly consolidated statements of income.
2. Changes in reportable segments
Cook Innoventure Co., Ltd., G.communication Co., Ltd., G.taste Co., Ltd., 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 no longer existed at the beginning of the period
under review. 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 waspreviously classified into the Other businesses.
3. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment.
(Significant impairment losses related to non-current assets)
Not applicable.

-9-