Supplementary Material for

FY2021 Q2 Financial Results

June 11, 2021

◤◤ Contents⚫ Consolidated Financial Highlights (Cumulative)1⚫ Gyomu Super Business3⚫ Changes in Total Number of Gyomu Super Stores

４⚫ Changes in Product Shipments to Gyomu Super Stores

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

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

13⚫ Consolidated Financial Forecast

14◤◤ Consolidated Financial Highlights (Cumulative)
Net Sales<Millions of yen>
28,000
16.4%<Millions of yen>
180,000

26,000Gross Profit
20.0%

15.9%

15.1%

15.4%

16.0%

12.2%

160,000
24,000140,000

176,069

120,000
124,252

176,437

144,520

131,498<Millions of yen>

27,08922,00022,95920,00020,401

19,892

FY17 Q2

FY18 Q2

8.0%

21,57218,000100,000
FY17 Q2

12.0%

FY18 Q2

FY19 Q2

FY20 Q2

FY21 Q2

SG&A Expenses

0.0%

15.0%

FY19 Q2

売上総利益
Gross
profit<Millions of yen>

16,000

4.0%

FY20 Q2

FY21 Q2

売上高総利益率
Gross margin

Operating Profit

16,00010.0%
8.2%

14,000

10.6%

9.3%

9.4%

12,00010,00013,635

13,151

14,00010.0%

8.3%
14,6964.1%

5.0%

12,194

8,000

7,184
FY18 Q2

5.8%

5.9%

FY19 Q2

販売管理費
SG&A
expenses

FY20 Q2
売上高販管費率
SG&A ratio

FY21 Q2

0.0%

8.0%

7.0%

6.0%
14,387

10,0004.0%

12,393

8,000

6,000
FY17 Q2

12,000

6.5%

6,000

2.0%

9,324
7,249

7,697

FY17 Q2

FY18 Q2

0.0%
FY19 Q2

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

FY20 Q2

FY21 Q2

売上高営業利益率
Operating margin1

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

<Millions of yen>

16,00014,000

8.6%
6.6%

6.5%

7.1%

5.5%

12,00015,19010,000

10.0%

12,0008.0%

10,000

6.0%

8,000

4.0%

6,000

2.0%

4,000

Profit Attributable to

Owners of Parent
5.7%

3.6%

3.9%

4.2%

9,487

8,014

7,294

FY17 Q2

FY18 Q2

6,000

4,454
0.0%

FY19 Q2

経常利益profit
Ordinary

FY20 Q2
売上高経常利益率
Ordinary
marginFY21 Q2

6.0%

4.3%

4.0%
10,133

12,465
8,000

8.0%

5,180

6,049

7,546

2.0%

2,000

0.0%
FY17 Q2

FY18 Q2

FY19 Q2

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

FY20 Q2

FY21 Q2

売上高当期純利益率
Netmargin[Financial Overview]⚫ Net sales
Net sales increased by 368 million yen (0.2%) year on year because the Gyomu Super Business remained strong due to an
ongoing increase in the demand for eating at home amid the COVID-19 crisis.
⚫ Gross profit
Gross profit decreased by 5,517 million yen (20.4%) year on year because Cook Innoventure Co., Ltd., which mainly operates
the restaurant business, was excluded from the scope of consolidation from FY2020 Q3.

⚫ SG&A expenses
SG&A expenses decreased by 7,511 million yen (51.1%) year on year due to a decrease in personnel expenses and rent
expenses caused by the exclusion mentioned above.
⚫ Operating profit
As a result of the above, operating profit increased by 1,944 million yen (16.1%) year on year.
⚫ Ordinary profit
Ordinary profit increased by 2,724 million yen (21.9%) 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 2,586 million yen (34.3%) 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.

◼ We revised upward the targeted store openings for FY2021
from a net increase of 45 to 60 stores (a total of 939 stores).
◼ Gyomu Super stores have expanded nationwide with 922 storesas of April 30, 2021.
◼ The ratio of private label products has continued to increase
partly because of these products being featured on television,magazines, and newspapers.
Operating Profit

Net Sales<Millions of yen>(cumulative)(cumulative)<Millions of yen>
16,000180,000

7.2%

7.1%

7.8%

9.2%
8.4%

10.0%

8.0%

14,000160,000

6.0%

12,00016,052140,000

173,596

10,000157,586

120,000

100,000

8,000

106,498
FY17 Q2

115,369
FY18 Q2

126,760

2.0%

9,928
7,716

8,209

FY17 Q2

FY18 Q2
FY19 Q2
営業利益 profit
Operating

6,000

FY19 Q2

FY20 Q2

FY21 Q2

4.0%

13,300

0.0%
FY20 Q2
FY21 Q2
営業利益率
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 forthese two years are not consistent with those for FY2019 or before.

３◤◤ Changes in Total Number of Gyomu Super Stores
FY2021 Q2 (alone):
Net increase of 22 stores
Q2 (cumulative): Net increase of 43 stores

Number of Stores by Area
862 stores as ofApril 30, 2020

FY2021 Target: Net increase of 60 stores(71.7% progress as of April 30, 2021)

関西直轄
Kansai
228店舗

Strong store openings in the Kyushu area under direct
management: +12 stores for Q2 (cumulative)
Total Number of Gyomu Super Stores(Stores)

950

922

Chiba

244

Kanto
関東直轄
191店舗
237

939

千葉県
Saitama 40
33店舗
神奈川県
52
Kanagawa
55店舗

68

東京都
Tokyo
64店舗

地方エリア
Others
315店舗

77

343

900
850

Hokkaido 18
Kyushu 20879
845

922 stores as ofApril 30, 2021(+60 stores)
Kansai
252

800
2019年
FY20192020年
FY202010月

10月

Outline of Franchise
Contract & Requirements

2021年Q2
FY2021(cumulative)
4月

2021年
FY2021
Target
10月目標

Simulated Average Earnings(Standard Store Franchisees)

(+8)
（＋2）
（＋1）

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

Franchise deposit¥10,000,000

Royalty fee

1% ofpurchase cost

Note: Equipment, construction work,
POS registers, and other funds forstart-up are required separately.

＋０MonthlyamountComposition

Others

Net sales

32,000100.0％

359

Gross profit

5,120

16.0％

SG&A expenses

4,480

14.0％

(Rent expenses)

1,300

4.1％

(Personnel expenses)

1,440

4.5％

640

2.0％

P&L accountOperating profit* Separate requirements apply for indirectly managed areas.

Hokkaido 16 (-2)
Kyushu 42 (+22)
Chiba

Kanto
253

（＋１５）

(+16)

（＋9）

(+16)
（＋7）

43
Saitama (+3)

57 （＋2）Kanagawa
(+5)
（＋2）
71
(+3)
Tokyo
（＋2）

82
(+5)
（＋3）

（＋8）
Kanto area (under direct management):
Kansai area (under direct management):

Tokyo, Chiba, Kanagawa, and Saitama
Osaka, Kyoto, Hyogo (excl. Awaji Island), Nara,
Wakayama, and Shiga
Kyushu area (under direct management): Fukuoka, Saga, Nagasaki, Kumamoto, Oita, andMiyazaki
Hokkaido area (under direct management): Hokkaido
Others (under indirect management):
Prefectures other than those listed above４◤◤ Changes in Product Shipments to Gyomu Super Stores◼ Despite the already high performance for FY2020, the product shipments for FY2021 H1 still
remained strong with a year-on-year increase.
<YoY Change (%)>

135

[Existing Stores in Directly Managed Areas]

110.9

110
110.4
105 103.6
100

112.5
105.3

108.4 109.7

95

94.4

101.1

107.4

106.8 107.0

106.8

111.2

111.0

105.0 104.3
103.3

125

115.8

113.3 113.6
109.1

131.1

130

119.6

120
115

135.8 136.6

135

124.1

125

Monthly Trends for Product Shipments

140

128.6 131.0

130[All Stores Nationwide]<YoY Change (%)>

Monthly Trends for Product Shipments

109.8

120

124.9

117.8

112.5

115
109.7

108.0

110
105

91.5

105.5
109.4

107.4

110.2

Feb. 3月
Mar. 4月
Apr. 5月
May
2月
FY2019
2019年

Jun.
6月

FY2020
2020年

Jul.
7月

Aug. 9月
Sep. 10月
Oct.
8月

116.7

113.3
110.1

115.9

114.3

110.3

111.9

114.5

114.4

98.9
102.4

95
Nov. 12月
Dec. 1月
Jan.
11月

115.5
110.2

110.0 115.1 115.3

100

90

122.6

115.9 120.1 119.8

Nov. 12月
Dec.
11月

Jan.
1月

FY2021
2021年

Feb. 3月
Mar. 4月
Apr. May
Jun. 7月
Jul.
Aug. 9月
Sep. 10月
Oct.
2月
5月 6月
8月
2019年
2020年
2021年
FY2019FY2021
FY2020[Year-on-year % Changes in Product Shipments to Gyomu Super Stores]
FY2020Nov. Dec.

Jan.

Feb.

Mar. Apr.

H1

May

FY2021Jun.

Jul.

Aug. Sep.

Oct.

H2

Full

Nov. Dec.

Jan.

Feb.

Mar.

Apr.

H1

Existing
110.9 110.4 113.6 119.6 128.6 131.0 119.3 124.1 115.8 108.4 109.7 109.7 109.8 112.8 115.9 103.6 113.3 109.1 104.3 94.4 91.5 101.9
storesAll
115.4 114.1 117.7 124.4 135.0 137.7 124.3 130.9 121.1 113.0 113.6 114.3 114.4 117.8 120.9 109.0 119.7 116.1 111.0 100.5 98.0 108.3
storesAll
Nationwide
115.9 115.1 119.8 124.9 135.8 136.6 125.0 131.1 122.6 114.3 113.3 115.9 114.5 118.5 121.6 110.0 120.1 115.3 112.5 102.4 98.9 109.1
storesDirectly
managedareas

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

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

Samples of Private Label Products

Today, we have come to own 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
New

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%

31.0%

32.75%

31.47%

30.34%

33.01%

Mont blancmousse cake

Natural yeast
bread

Milk pack dessert(Mizu-yokan)

375 yen (1 pack)

246 yen (1 loaf)

267 yen (1kg)

Frozen chicken
boneless leg

Frozen fried
eggplant

Belgian sugar
waffles

699 yen (2kg)

159 yen (500g)

408 yen (Pack of 10)◼ Import products
31.65%

31.38%

31.45%

30.88%

30.74%

30.68%

2Q
Q2

3Q
Q3

4Q
Q4

30.0%
1Q
Q1
2019年
FY20192020年
FY2020[Ratio of Private Label Products]
Q1 (alone): 32.75% Q2 (alone): 33.24%

2021年
FY2021

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

６◤◤ Restaurant & Delicatessen Business
The Restaurant & Delicatessen Business covers restaurants and delicatessen shops that we operate directly or asa franchisor. 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

Premium Karubi

Operating Profit

Net Sales(cumulative)<Millions of yen>

1,601
1,462

48

1,088

-100

5.0%

17

0

902
800

10.0%

50

-50
1,200

(cumulative)<Millions of yen>
100

2,000

1,600

Chisouna

-48

-8.2%

-44

4.4%

1.2%

-4.9%

-156

0.0%

-9.7%

-5.0%

-10.0%

-150
584

-200

-15.0%
FY17 Q2400
FY17 Q2

FY18 Q2

FY19 Q2

FY20 Q2

FY21 Q2

FY18 Q2

FY19 Q2

営業利益 profit
Operating

FY20 Q2

FY21 Q2

営業利益率
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 forthese two years are not consistent with those for FY2019 or before.

7◤◤ Restaurant & Delicatessen Business
Kobe Cook World Buffet

Total Number of Restaurants: 14 (as of April 30, 2021)

FY2021 Q2 (alone):
Net decrease of 2 restaurants
Q2 (cumulative): Net decrease of 3 restaurants
Maintained ongoing efforts such as promoting a takeout service to cater forcustomer needs.

Opening a new restaurant in Koryo-cho, Kitakatsuragi-gun, Nara on June 16even amid the COVID-19 crisis.

Measures to Prevent COVID-19 Infections
Kobe Cook World Buffet has strengthened measures to prevent the COVID-19
infections so that customers can enjoy meals with peace of mind.
◼ Measures for employees
Wash and sanitize hands, and gargle; clean, sterilize and disinfect therestaurant; and check health condition before work.
◼ Measures to protect safety of customers
Provide alcohol spray in the restaurants; regularly exchange, wash, andsterilize tongs and other utensils shared and used for self-service in therestaurants; ventilate the restaurant with a supply and exhaust system;
and wear disposable vinyl gloves for foodservice.

◼ Certain restaurants were temporarily closed or shortened opening hours
due to the rebound of COVID-19.
Sample of takeout menu8◤◤ Restaurant & Delicatessen BusinessPremium Karubi

Total Number of Restaurants: 6 (as of April 30, 2021)

FY2021 Q2 (alone):
Net increase of 2 restaurants
Q2 (cumulative): Net increase of 3 restaurants
Steadily increased the number of the restaurants evenamid the COVID-19 crisis.
What is Premium Karubi?
Premium Karubi is a BBQ restaurant chain directly operated

by Kobe Bussan since 2018. We seek to differentiate it fromother competitors by offering premium dishes such as thebest 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
Opened on March 16

Tachikawa

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

Fujimino

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

Kawaguchi Kita

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

Opened on April 13
Opened on June 10

Note: Menus may vary by restaurant and season.

9◤◤ Restaurant & Delicatessen Business
Chisouna

Total Number of Shops: 37 (as of April 30, 2021)

FY2021 Q2 (alone):
Net increase of 8 shops
Q2 (cumulative): Net increase of 12 shops
Remained strong due to an increase in Gyomu Super
customers and menu changes.
Measures to Prevent COVID-19 Infections
Chisouna strengthened measures to prevent the COVID-19
infections with the safety of customers and employees as thefirst 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 Q2 (alone)
Otokoyama

2-2 Takezono, Otokoyama, Yawata-shi, Kyoto

Miyazaki Otsuka

1068-1 Ikenouchi, Otsuka-cho, Miyazaki-shi, Miyazaki

Honda

3-46-1 Honda-cho, Midori-ku, Chiba-shi, Chiba

Shino

1-12-1 Miyakodai, Higashitsutsujigaoka, Kameoka-shi, Kyoto

Joetsu Inter

1359-4 Azakubota, Tomioka, Joetsu-shi, Niigata

Einomaru

4-1-18 Einomaru, Yahatanishi-ku, Kitakyushu-shi, Fukuoka

Ogori1111-1 Azatakada, Tsuko, Ogori-shi, Fukuoka

Hasama26 Kitagata, Hasama-machi, Yufu-shi, Oita

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

◼ This business segment deals with renewableenergies centering on solar power generation.

◼ In May, a solar power plant (9.9 MW) started
operating in Misaki-cho, Osaka.
◼ Going forward, we plan to gradually start
operating solar power plants in Fukushima andMiyagi.
Net Sales

Operating Profit<Millions of yen>
300

(cumulative)<Millions of yen>(cumulative)

1,500

1,151

1,200

1,192

1,234

200

11.2%

100
900

41

0

13.4%

154

30.0%

15.4%

183

18.3%

226

365

-100

20.0%
10.0%

0.0%
-10.0%

-43

600

300

Kobe Bussan’s Woody Biomass Power Plant

Kobe Bussan’s Solar Power Plant-22.2%-20.0%

194-200-30.0%
FY17 Q2

0
FY17 Q2

FY18 Q2

FY19 Q2

FY20 Q2

FY21 Q2

FY18 Q2

FY19 Q2

営業利益
Operating profit

FY20 Q2

FY21 Q2

営業利益率
Operating margin11◤◤ Eco Renewable Energy Business
Plant Locations

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

16 locations

22.0 MW

1 location

6.2 MW

Biomass:[Solar Power]
5 in Hokkaido
5.8 MW(as of April 30, 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]
2 in Osaka
4.2 MW[Solar Power]
1 in Tokushima
2.1 MW[Solar Power]
1 in Wakayama
1.6 MW12◤◤ Dividends
Dividend per ShareKobe Bussan regards returning profits toshareholders as one of key management

<Yen>
20

25%

issues. Our basic policy is to secure funds
necessary for our business growth and21.55%
15
17.86%

distribute profits to shareholders according
to the operating results.

10

15.81%

20%

16.68%

20.00

15.00

Having revised upward the consolidated
financial forecast for FY2021, we plan to

5

15%

10.00
8.12
6.25

increase a year-end dividend for FY2021
from 15.00 to 20.00 yen per share (or from30.00 to 40.00 yen had the stock split notbeen carried out).

0

10%
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)
Payout ratio

Note: The figures in the graph above have been adjusted for the effect of the

2-for-1 stock splits carried out in November 2018, November 2019, andNovember 2020.

13

◤◤ Consolidated Financial Forecast◼

We revised upward the financial forecast for FY2021 because the number of store openings of Gyomu Super
will significantly be higher than that in the initial plan, and the profit margin has improved due to theincreased ratio of private label products.

Progress towards FY2021 Forecast
Q2 actual (cumulative)

YoY

Net Sales

176,437

100.2%

Operating profit

14,387116.1%

Ordinary profit

15,190121.9%

Profit attributable toowners of parent

10,133134.3%(Millions of yen)

Full-year forecast

Progress towards
full-year forecast

Before upward revision Before upward revision
358,000

49.3％

341,000

51.7％

29,40048.9％

24,80058.0％

30,00050.6％

24,80061.3％

20,00050.7％

16,00063.3％

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.
14• This material contains forward-looking statements based onassumptions, estimates, and plans as of June 11, 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