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 Nine Months Ended July 31, 2021
(Under Japanese GAAP)
September 13, 2021
Company name: Kobe Bussan Co., Ltd.
Listing:
Tokyo Stock Exchange
Security 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 file Quarterly Securities Report:
September 14, 2021
Scheduled date to commence payment of dividends:–
Preparation of supplementary material on quarterly financial results:
Yes (https://www.kobebussan.co.jp/english/ir/news.php)
Investors meeting presentation for quarterly financial results:
None(Amounts less than one million yen have been omitted.)1.

Consolidated financial results for the nine months ended July 31, 2021 (from November 1, 2020 to July 31, 2021)(1) Consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
July 31, 2021
267,374
3.1
21,22813.7
22,20520.1
14,883
27.7
July 31, 2020
259,362
17.7
18,67928.918,485
26.6
11,65625.4
Note: Comprehensive income
For the nine months ended July 31, 2021: ¥15,439 million [41.7%]
For the nine months ended July 31, 2020: ¥10,892 million [19.4%]
Basic earnings
per share

Diluted earnings
per share

Nine months ended
Yen
Yen
July 31, 2021
68.83
67.29
July 31, 2020
54.15
52.89
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
July 31, 2021
150,148
72,56947.1
325.87
October 31, 2020
148,175
59,26839.0
267.42
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of July 31, 2021:¥70,650 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 Dividends

Annual dividends per share
SecondThird
FiscalTotal
quarter-end
quarter-end
year-end
Fiscal year
Yen
Yen
Yen
Yen
Ended October 31, 2020
0.00
－
30.00
30.00
－
Ending October 31, 2021
0.00
Ending October 31, 2021 (Forecast)
20.00
20.00
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 ¥20.00 per share (or ¥40.00 had the stock split not been carried out).
First
quarter-end
Yen－－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
358,000
5.0
29,40023.3
30,00026.9
20,00032.9
92.84
Note: Revisions to earnings forecast published most recently: None
3.

[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 July 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 July 31, 2021:
56,796,508 shares
As of October 31, 2020:
57,614,064 shares(iii) Average number of shares of common shares outstanding during the period
Nine months ended July 31, 2021:
216,230,356 shares
Nine months ended July 31, 2020:
215,261,744 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 July 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 nine months ended July 31, 2020
and the nine months ended July 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 ································································ P. 2
(1) Overview of quarterly consolidated operating results ··············································································· P. 2
(2) Overview of quarterly consolidated 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 consolidated operating results
During the nine months ended July 31, 2021 (from November 1, 2020 to July 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 ¥267,374 million (up 3.1%
year on year), operating profit of ¥21,228 million (up 13.7%), ordinary profit of ¥22,205 million (up 20.1%), and profit
attributable to owners of parent of ¥14,883 million (up 27.7%).
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.
(i) Gyomu Super BusinessThis 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 underreview, Gyomu Super stores have expanded nationwide with 933 stores as a result of a net increase of 54 stores after
opening 58 stores and closing four.
The breakdown of new store openings was 41 stores in directly managed areas and 17 stores in indirectly managed areas.
We work on store openings focusing on the Kanto and Kyushu areas under direct management, and strongly encourage
franchise owners to relocate stores which have been deteriorated with many years in operations.
We analyze that the growth of operating results was driven by continuous strong store openings, as well as enhancement of
Gyomu Super’s brand recognition and acquisition of new customers led by our private label products, which represent
Gyomu Super’s attractiveness and have been frequently featured on television, magazines, newspapers, and other media.
Consequently, net sales of the Gyomu Super Business for the period under review stood at ¥262,749 million (up 9.6% 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 restaurant chain where customers enjoy the best selected premium meats and in-house made desserts; andChisouna, a delicatessen shop chain focusing on health-conscious food made with minimal additives and preservatives ataffordable 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 five restaurants and closed none, resulting in eight-2-

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 17 shops and closed none, resulting in
42 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 ¥2,632 million (up37.7% year on year).
(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. Having
opened one solar power plant in Osaka 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 ¥1,981 million (up10.8% year on year).

(2) Overview of quarterly consolidated financial position(Assets)
Total assets as of July 31, 2021 increased by ¥1,973 million from the end of the previous fiscal year to ¥150,148 million. Thiswas mainly due to increases in property, plant and equipment of ¥9,997 million resulting from the construction of a new officebuilding and the facility expansion of our group’s domestic plants; merchandise and finished goods of ¥2,063 million resulting
from the increased product shipments; and notes and accounts receivable - trade of ¥1,601 million, which were partially offset
by a decrease in cash and deposits of ¥12,449 million resulting from the repayment of borrowings.
(Liabilities)
Total liabilities as of July 31, 2021 decreased by ¥11,327 million from the end of the previous fiscal year to ¥77,579 million.
This was mainly due to a decrease in long-term borrowings of ¥11,304 million.
(Net assets)
Total net assets as of July 31, 2021 increased by ¥13,300 million from the end of the previous fiscal year to ¥72,569 million.
This was mainly due to an increase in retained earnings of ¥11,640 million.
(3) Overview of forward-looking statements including consolidated financial forecast
The consolidated financial forecast for the fiscal year ending October 31, 2021 remains unchanged from the Notice ofRevisions to Consolidated Financial Forecast and Cash Dividend Forecast (available in Japanese only) published on June 11,
2021.

-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 July 31, 2021)

AssetsCurrent assets:
Cash and deposits

69,81057,360Notes and accounts receivable - trade17,54619,147

Merchandise and finished goods

9,065

11,128298

329

Raw materials and supplies

1,222

1,510

Other

4,227

3,164

(14)

(14)

102,156

92,626

Buildings and structures, net

11,43014,124Land

10,353

13,340

Other, net

19,26023,578

Total property, plant and equipment

41,04451,042547

866

Investments and other assets

4,426

5,613

Total non-current assets

46,01957,522

148,175

150,148

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 July 31, 2021)

Liabilities
Current liabilities:
Accounts payable - trade22,161

24,174

Short-term borrowings

14,59815,956

Income taxes payable

4,812

3,128

Provision for bonuses

299

154

Other

5,033

3,098

Total current liabilities

46,906

46,512

34,69023,386Retirement benefit liability

612

672

Guarantee deposits received

6,048

6,395

332

328

39

53

276

231

41,99931,06688,906

77,579Non-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 capital

64

500

Capital surplus

8,539

8,665

Retained earnings

60,24371,883

Treasury shares(9,465)(9,332)

Total shareholders’ equity

59,38071,71613129

Foreign currency translation adjustment(1,634)(1,195)

Total accumulated other comprehensive income(1,621)(1,065)

Share acquisition rights

1,510

1,919

Total net assets

59,26872,569148,175

150,148

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

Net sales

For the nine months ended
July 31, 2020
(From November 1, 2019
to July 31, 2020)
259,362(Millions of yen)
For the nine months ended
July 31, 2021
(From November 1, 2020
to July 31, 2021)
267,374

Cost of sales

222,869

234,963

Gross profit

36,49332,410

Selling, general and administrative expenses

17,813

11,181

Operating profit

18,67921,228Interest income

213

78

Dividend income

00

Rental income

6545

Foreign exchange gains–

512

Gain on valuation of derivatives–

135

Subsidy income

113

202

Other

375

243

Total non-operating income

769

1,218

Interest expenses

256

137

Rental costs

21

22

Foreign exchange losses

22–

Loss on valuation of derivatives

51–

Provision of allowance for doubtful accounts

434

14

Other

175

67

Total non-operating expenses

962

241

18,48522,205Gain on sale of non-current assets

162Gain on sale of shares of subsidiaries and associates

245–

Total extraordinary income

261

2

Loss on retirement of non-current assets

21

29

Loss on sale of non-current assets

39

127

1,380

–

Loss on store closings

12–

Provision for loss on store closings

112

–

1,567

156

Profit before income taxes

17,17922,051

Income taxes - current

6,157

6,669

Income taxes - deferred

215

498

Total income taxes

6,372

7,168

Profit10,806

14,883(849)–

11,656

14,883Non-operating income:Non-operating expenses:

Ordinary profit
Extraordinary income:Extraordinary losses:

Impairment losses

Total extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-6-

Quarterly consolidated statements of comprehensive income

Profit

For the nine months ended
July 31, 2020
(From November 1, 2019
to July 31, 2020)
10,806(Millions of yen)
For the nine months ended
July 31, 2021
(From November 1, 2020
to July 31, 2021)
14,883

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

32

116

Foreign currency translation adjustment

52

439

Total other comprehensive income

85

556

10,892

15,43911,741

15,439(849)–

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 nine months ended July 31, 2020 (from November 1, 2019 to July 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

239,825

1,911

15,772

1,788

259,29764

259,362–259,362Intersegment
sales ortransfers

1,309

100

–

–

1,409

–

1,409

(1,409)–

Total

241,135

2,012

15,772

1,788

260,70764

260,772(1,409)259,362

Segment
profit (loss)*1

20,316

(24)

379

233

20,904(84)

20,820(2,141)

18,679*2*3

The Other businesses are those not classified into any reportable segment, including the rental facilities businessand the tourism business.
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 ¥(2,141) million is corporate expenses unallocated toeach reportable segment. The expenses are general and administrative expenses unattributable to any
reportable segments.
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 ¥1,380 million for the nine months ended July 31,
2020, of which ¥0 million was incurred by the Gyomu Super Business segment and ¥1,379 million by the Cook
Innoventure Business segment.
3. Information on assets by reportable segment(Significant decrease in assets due to a decline in the number of subsidiaries)
The segment assets of the Cook Innoventure Business as of July 31, 2020 decreased by ¥24,637 million from the end of
the fiscal year ended October 31, 2019. This was because Cook Innoventure Co., Ltd., G.communication Co., Ltd.,
G.taste Co., Ltd. (presently Yakiniku Sakai Holdings Inc.), and 11 other consolidated subsidiaries were excluded from thescope of consolidation.

-8-II. For the nine months ended July 31, 2021 (from November 1, 2020 to July 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

262,749

2,632

1,981

267,36410

267,374–

267,374

Intersegment
sales ortransfers

1,192

107

–

1,300

–

1,300

(1,300)–

Total

263,942

2,740

1,981

268,66410

268,674(1,300)267,374

Segment
profit (loss)*1

23,925(308)

380

23,997(61)

23,935(2,707)

21,228Gyomu
SuperBusiness
Net sales
Sales toexternalcustomers*2*3

Adjustment Consolidated*2*3

The Other businesses are those not classified into any reportable segment, including the rental facilities businessand the tourism business.
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 ¥(2,707) million is corporate expenses unallocated toeach reportable segment. The expenses are general and administrative expenses unattributable to any
reportable segments.
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. (presently Yakiniku Sakai Holdings Inc.), and11 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 and management control system. Since the beginning of theperiod under review, the Restaurant & Delicatessen Business has been renamed from the Kobe Cook Business toincorporate the BBQ business, which was previously classified into the Other businesses.
The segment information for the nine months ended July 31, 2020 was prepared according to the reportable segments
applied to the nine months ended July 31, 2021.
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-