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, 2023
(Under Japanese GAAP)
December 15, 2023
Company name: Kobe Bussan Co., Ltd.
Listing:
Prime Market of 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 30, 2024
Scheduled date to file Annual Securities Report:
January 31, 2024
Scheduled date to commence payment of dividends:
January 15, 2024
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, 2023 (from November 1, 2022 to October 31, 2023)(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, 2023
461,546
13.5
30,717
10.4
29,970(6.7)
20,560(1.3)
October 31, 2022
406,813
12.4
27,8201.9
32,125
10.4
20,832
6.3
Note: Comprehensive income
For the fiscal year ended October 31, 2023: ¥19,987 million [(8.6)%]
For the fiscal year ended October 31, 2022: ¥21,876 million [8.9%]
Basic earnings
Diluted earnings
Return on equity*
per shareper share
Fiscal year ended
Yen
Yen
%
October 31, 2023
93.59
92.51
19.9
October 31, 2022
95.35
93.87
24.3
* Equity = Shareholders’ equity + Valuation and translation adjustments(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
October 31, 2023
211,891
114,451
October 31, 2022
180,275
97,220
Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of October 31, 2023: ¥111,691 million
As of October 31, 2022: ¥94,990 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
Millions of yen
October 31, 2023
30,343October 31, 2022
21,582
2.

Cash flows frominvesting activities
Millions of yen(6,821)(12,483)

Ordinary profit tototal assets ratio
%
15.3
19.1

Equity ratio

Operating profit
margin
%
6.7
6.8

%
52.7
52.7

Net assets per shareYen
506.23433.53

Cash flows fromfinancing activities
Millions of yen
80(3,752)

Cash and cash equivalents
at end of period
Millions of yen
91,26565,753

Cash dividends

Fiscal year ended
October 31, 2022
October 31, 2023
Fiscal year ending
October 31, 2024 (Forecast)

Annual dividend per share
First
SecondThird
Fiscalquarter-end quarter-end quarter-end year-end
Yen
Yen
Yen
Yen
0.00
22.00
–
–
0.00
22.00
–
–

–

0.00

–

23.00

Total

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

Yen Millions of yen
22.00
4,824
22.00
4,859

%
23.1
23.5

23.00

23.6

Note:
Breakdown of year-end dividend for the fiscal year ended October 31, 2023:
Ordinary dividend of ¥22.00 per share

%
5.6
4.7

Consolidated financial forecast for the fiscal year ending October 31, 2024 (from November 1, 2023 to October 31, 2024)(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
498,000
7.9
31,0000.9
33,00010.1
21,500
4.6
97.44

3.

[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): Yes
Newly included: None
Excluded:
3 companies(Company name: KB GLOBAL PARTNERS, INC., J.J. DINING, INC., KOBE BUSSAN USA, INC.)(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: Yes(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
Note:
Please refer to “3. Consolidated Financial Statements and Notes (5) Notes to consolidated financial statements(Changes in accounting policies)” on page 14 of the Attached Materials.
(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, 2023:
273,600,000 shares
As of October 31, 2022:
273,600,000 shares(ii) Number of shares of treasury shares at the end of the period
As of October 31, 2023:
52,968,055 shares
As of October 31, 2022:
54,490,520 shares(iii) Average number of shares of common shares outstanding during the period
Fiscal year ended October 31, 2023:
219,677,661sharesFiscal year ended October 31, 2022:
218,489,985 shares
Note: The number of shares of Kobe Bussan held by Custody Bank of Japan, Ltd. (the “Trust Account”) as trust property fora Board Benefit Trust was included in the number of shares of treasury shares at the end of the period (275,200 shares
as of October 31, 2023 and 168,400 shares as of October 31, 2022). Also, the number of shares of Kobe Bussan held by
the Trust Account was included in the number of shares of treasury shares to be deducted from the calculation of theaverage number of shares of common shares outstanding during the period (202,635 shares for the fiscal year ended
October 31, 2023 and 168,400 shares for the fiscal year ended October 31, 2022).
[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended October 31, 2023 (from November 1, 2022 to October 31, 2023)(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, 2023
446,858
13.1
26,782
8.4
25,993(9.6)
17,812(9.4)
October 31, 2022
395,092–
24,710–28,756–
19,668–
Basic earnings
per share

Diluted earnings
per share

Fiscal year ended
Yen
Yen
October 31, 2023
81.09
80.15
October 31, 2022
90.02
88.63
Note:
Since the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. have been applied
from the beginning of the previous fiscal year, the figures for the fiscal year ended October 31, 2022 reflect the adoption of
the said standards. Accordingly, year-on-year percentage changes have not been provided.
(2) Non-consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
October 31, 2023
195,966
98,506
October 31, 2022
168,078
83,419Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of October 31, 2023: ¥95,745 million
As of October 31, 2022: ¥81,189 million

Equity ratio
%
48.9
48.3

Net assets per shareYen
433.96370.54* 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, 2024” on page 4 of the Attached Materials.

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, 2024 ················································································ 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(Changes in accounting policies) ····································································································· 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, 2023 (from November 1, 2022 to October 31, 2023) (hereinafter the “period underreview” or the “current fiscal year”), Japan further normalized its socioeconomic activities thanks to the lifting of movement
and immigration restrictions due to COVID-19 as well as the reclassification of COVID-19 into Category V infectious disease(the same category as common infectious diseases) in May. Nevertheless, the economic outlook has still remained unclear due
to the prolonged Russian-Ukraine situation, the concern about the economic slowdown caused by monetary tightening aroundthe world, precarious fluctuations in foreign exchange rates, and soaring energy costs.
Players in the food retail industry have continued to face severe circumstances, including a fall in demand for the homecooking with more consumers dining out and a rise in a savings-oriented attitude of consumers caused by the galloping
inflations, as well as an increase in various costs.
Under such circumstances, in line with the Group’s goal of further strengthening “Integrated Food Production & Distribution
Operations,” the Kobe Bussan Group has enhanced its competitiveness through increased production capacity and proactive
product development. Also, we have been engaged in a business that is attentive and responsive to customers’ needs byenhancing our strength to provide them with high-quality and attractive products at best prices.
Consequently, in terms of operating results for the period under review, we reported net sales of ¥461,546 million (up 13.5%
year on year), operating profit of ¥30,717 million (up 10.4%), ordinary profit of ¥29,970 million (down 6.7%), and profit
attributable to owners of parent of ¥20,560 million (down 1.3%).
The operating results by business segment are as follows:[Gyomu Super Business]
This business segment covers Gyomu Super stores, which mainly sell products at best prices including those originallyproduced by our group’s domestic plants or those with attractive private labels directly imported by ourselves under theconcept of providing authentic food products from around the world. In the period under review, Gyomu Super stores have
expanded nationwide with 1,048 stores as a result of a net increase of 41 stores after opening 53 stores and closing 12.
The breakdown of new store openings was 38 stores in directly managed areas and 15 stores in indirectly managed areas.
While we work on store openings in all locations in Japan, we put a particular focusing on the Kyusyu area, and strongly
encourage some of our franchisees to relocate stores which have deteriorated after many years in operations.
In terms of operating results, we have continued expanding business performance. This is because we have overcome a rise inpurchase costs caused by the sharp fluctuations in foreign exchange rates and price hikes through a successfully implemented
pricing strategy as well as a great deal of media coverage of our private label products, which represent Gyomu Super’s
attractiveness.
Consequently, net sales of the Gyomu Super Business for the period under review stood at ¥446,908 million (up 12.8% 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 under the concept of offering everyday dining with a focus onfoods made in-house and available at affordable prices.
In the period under review, Kobe Cook World Buffet opened three restaurants and closed none, resulting in 14 restaurants
nationwide. We strived to improve customer satisfaction through measures such as menu changes. Our efforts paid off with thenumber of customer visits almost recovering to the level before the COVID-19 pandemic backed by the Japanese government
lifting the mask mandate and the limit on the number of people per table as well as more tourists from abroad visiting Japan.
Premium Karubi opened four restaurants and closed none, resulting in 20 restaurants nationwide. The attention to thisrestaurant brand grew year by year thanks to increased media coverage. Given this environment, we successfully improved ouroperational efficiency by not only increasing customer visits at the existing restaurants but also pursuing the economy of scale
through increasing the number of restaurants. Chisouna opened 29 shops and closed two, resulting in 114 shops nationwide.
While more customers were attracted by a variety of foods relevant to their needs and an introduction of new dishes, such asignificant increase in the number of shops helped boost net sales.

- 2 -Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥10,950 million (up49.5% 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 Higashimatsushima-shi, Miyagi since October in the period under review, we currently
operate 19 solar power plants collectively generating approximately 81.0 MW and one woody biomass power plant generating
approximately 6.2 MW. The existing power plants also continue generating electricity steadily.
Consequently, net sales of the Eco Renewable Energy Business for the period under review stood at ¥3,646 million (up 15.7%
year on year).
(2) Analysis of financial position(Assets)
Total assets as of October 31, 2023 increased by ¥31,615 million from the end of the previous fiscal year to ¥211,891 million(up 17.5% year on year).
This was mostly attributable to an increase in current assets of ¥25,629 million to ¥141,641 million (up 22.1% year on year).
This was mainly due to increases in cash and deposits of ¥25,550 million.
(Liabilities)
Total liabilities as of October 31, 2023 increased by ¥14,384 million from the end of the previous fiscal year to ¥97,439
million (up 17.3% year on year). This was mostly attributable to an increase in non-current liabilities of ¥13,314 million.
Non-current liabilities amounted to ¥48,382 million (up 38.0% year on year). This was mainly due to an increase in long-termborrowings of ¥10,682 million to be used for the facility enhancement of our group’s domestic plants.
(Net assets)
Total net assets as of October 31, 2023 increased by ¥17,230 million from the end of the previous fiscal year to ¥114,451
million (up 17.7% year on year). This was mainly due to an increase in retained earnings of ¥15,736 million.
Consequently, the equity ratio as of October 31, 2023 remained at 52.7%, unchanged from the end of the previous fiscal year.
Net assets per share stood at ¥506.23 for the current fiscal year compared to ¥433.53 for the previous fiscal year.

(3) Analysis of cash flows
Total cash and cash equivalents as of October 31, 2023 (hereinafter “net cash”) increased by ¥25,512 million from the end of
the previous fiscal year to ¥91,265 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 ¥30,343 million (up ¥8,760
million year on year). This was mainly due to decreases in inventories of ¥5,897 million and income taxes paid of ¥1,552
million, partially offset by an increase in loss on valuation of derivatives of ¥4,560 million(Cash flows from investing activities)
Net cash used in investing activities for the period under review amounted to an outflow of ¥6,821 million (down ¥5,662
million year on year). This was mainly due to a decrease in an outflow of ¥2,419 million resulting from purchase of property,
plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities for the period under review amounted to an inflow of ¥80 million (down ¥3,832 million
year on year). This was mainly due to a decrease in an outflow of ¥6,937 million due to repayments of long-term borrowings.

- 3 -(4) Outlook for the fiscal year ending October 31, 2024
We are planning to further grow our mainstay Gyomu Super Business with an aim to have 1,083 Gyomu Super stores (netincrease of 35 stores) by the end of the fiscal year ending October 31, 2024. 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 and expand the variety of our directly imported products.
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.
We carry on striving to expand our business performance as described above, although the outlook has still remained unclear
due to precarious fluctuations in foreign exchange rates, changes in the military situations around the world, and Japan's 2024
problem in transportation and logistics industries (an expected shortage of truck drivers resulting from their overtime hours
cap).
All in all, in terms of operating results for the fiscal year ending October 31, 2024, we forecast nets sales of ¥498,000 million,
operating profit of ¥31,000 million, ordinary profit of ¥33,000 million, and profit attributable to owners of parent of ¥21,500
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, 2022)(Millions of yen)
Current fiscal year
(As of October 31, 2023)

AssetsCurrent assets:
Cash and deposits

67,04092,590Accounts receivable - trade

23,24926,939Securities

2,000

－

Merchandise and finished goods

17,495

16,645Work in process

435

378

Raw materials and supplies

1,798

1,801

Other

3,995

3,303

Allowance for doubtful accounts

(2)

(17)

116,011

141,641

25,194

26,431

Accumulated depreciation(9,192)(10,245)

Buildings and structures, net

16,001

16,186

Total current assets
Non-current assets:
Property, plant and equipment:
Buildings and structures

Machinery, equipment and vehicles

34,37842,477

Accumulated depreciation(16,579)(19,499)

Machinery, equipment and vehicles, net

17,79922,977

16,43019,897

25

25

(18)

(21)

Land
Leased assets
Accumulated depreciation

63

Construction in progress

Leased assets, net

7,031

4,200

Other

2,961

3,344

(2,118)(2,415)842

929

58,11264,195

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

12

7

Other

1,028

1,502

Total Intangible assets

1,041

1,509

Investment securities

1,267

1,051

Long-term loans receivable

1,135

607

Deferred tax assets

1,564

1,744

Leasehold and guarantee deposits

561

703

Other

803

867

Allowance for doubtful accounts

(222)

(431)

Total investments and other assets

5,109

4,544

Investments and other assets

Total non-current assets
Total assets- 5 -64,26370,249180,275

211,891(Millions of yen)Previous fiscal year
(As of October 31, 2022)

Current fiscal year
(As of October 31, 2023)

Accounts payable - trade29,16732,231

Short-term borrowings

8,217

1,317

2

2

Income taxes payable

6,026

4,562

Provision for bonuses

414

473

Other

4,159

10,471

Total current liabilities

47,98749,05726,31737,000

3

1

Deferred tax liabilities

120

161

Retirement benefit liability

650

688

Guarantee deposits received

7,167

7,589

528

1,672

81

110

198

1,157

35,067

48,382

83,05597,439

Share capital

500

500

Capital surplus

10,466

12,137Retained earnings

93,061

108,797

Treasury shares(8,953)(9,087)

Total shareholders’ equity

95,074112,348

Liabilities
Current liabilities:

Lease obligations

Non-current liabilities:
Long-term borrowings
Lease obligations

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

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

(3)

27

(80)

(684)

Total valuation and translation adjustments

(84)

(657)

Share acquisition rights

2,229

2,760

Total net assets

97,220114,451

180,275

211,891

Total liabilities and net assets-6-

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

Net sales

For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)
406,813(Millions of yen)
For the fiscal year ended
October 31, 2023
(From November 1, 2022
to October 31, 2023)
461,546

Cost of sales

360,217

408,827

Gross profit

46,59652,719Selling, general and administrative expenses:
Advertising expenses

262

324

Rent expenses on land and buildings

759

1,066

7,504

8,003

362

354

Freight costs
Promotion expenses
Outsourcing expenses

709

857

4,051

4,975

Legal welfare expenses

485

630

Provision for bonuses

236

310

Wages, salaries and expenses

Retirement benefit expenses

13

78

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

666

764

23

29

(1)

14

5

5

Other

3,697

4,586

Total selling, general and administrative expenses

18,77622,002

27,82030,717

Interest income

279

872

Dividend income

99Lease revenue

251

212

Gain on valuation of derivatives

478

－

2,790

2,156

323

130

Amortization of goodwill

Operating profit
Non-operating income:

Foreign exchange gains
Subsidy income
Fuel sale income

81

92

Other

306

333

4,520

3,807

Interest expenses

86

58

Rental costs

32

35

Commission expenses

0－

Loss on valuation of derivatives

－

4,082

Fuel sale cost

79

88

Provision of allowance for doubtful accounts

－

248

Other

16

41

Total non-operating expenses

215

4,554

32,12529,970Total non-operating income
Non-operating expenses:

Ordinary profit-7-

For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)(Millions of yen)
For the fiscal year ended
October 31, 2023
(From November 1, 2022
to October 31, 2023)

Extraordinary income:Gain on sale of investment securities－

9

Gain on sale of non-current assets

66Gain on reversal of share acquisition rights

1530

Total extraordinary income

22

46

Loss on retirement of non-current assets

73

61

Loss on sale of non-current assets

4－

Loss on sale of investment securities

50－

Impairment losses

994

－

1,122

61

Profit before income taxes

31,02529,956

Income taxes - current

10,254

9,610

Income taxes - deferred

(62)

(215)

Total income taxes

10,192

9,395

Profit20,832

20,560

Profit attributable to owners of parent

20,832

20,560Extraordinary losses:

Total extraordinary losses-8-Consolidated statements of comprehensive income

Profit

For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)
20,832(Millions of yen)
For the fiscal year ended
October 31, 2023
(From November 1, 2022
to October 31, 2023)
20,560

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

(66)

30

Foreign currency translation adjustment

1,109

(603)

Total other comprehensive income

1,043

(572)

21,876

19,987

21,876

19,987

Comprehensive income
Comprehensive income attributable to:
Owners of parent-9-

(3) Consolidated statements of changes in equity
For the fiscal year ended October 31, 2022 (From November 1, 2021 to October 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital
Balance, November 1, 2021
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Disposable of treasury
sharesNet change of items otherthan shareholders’ equity
Total changes of items
during period
Balance, October 31, 2022

Capital surplus

500

Retained earnings

Treasury shares

76,592(9,135)

9,581

77,539(4,363)(4,363)

20,832

20,832

884

181

1,066

–

884

16,469181

17,535500

10,466

93,061(8,953)

95,074

Share
AcquisitionrightsTotal net assets

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance, November 1, 2021

Total

62

Foreign currencytranslation
adjustment(1,190)Total(1,127)

1,807

78,218Changes of items during
periodDividends of surplus－(4,363)

Profit attributable toowners of parent－

20,832

Disposable of treasury
shares－

1,066

Net change of items otherthan shareholders’ equity

(66)

1,109

1,043

422

1,466

Total changes of items
during period

(66)

1,109

1,043

422

19,002

Balance, October 31, 2022

(3)

(80)

(84)

2,229

97,220- 10 -

For the fiscal year ended October 31, 2023 (From November 1, 2022 to October 31, 2023)(Millions of yen)
Shareholders’ equity
Share capital
Balance, November 1, 2022
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposable of treasury
sharesNet change of items otherthan shareholders’ equity
Total changes of items
during period
Balance, October 31, 2023

Capital surplus

500

Retained earnings

Treasury shares

93,061(8,953)

10,466

95,074(4,824)(4,824)

20,56020,560

1,671

(399)

(399)

265

1,936
－

－

1,671

15,736(134)

17,273500

12,137

108,797(9,087)112,348

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance, November 1, 2022

Total

Foreign currencytranslation
adjustment

(3)

(80)

Share
Acquisitionrights

Total
(84)

2,229

Total net assets

97,220Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares(4,824)－

20,560(399)

Disposable of treasury
sharesNet change of items otherthan shareholders’ equity

－

1,936

－
30

(603)

(572)

530

(42)

Total changes of items
during period

30

(603)

(572)

530

17,230

Balance, October 31, 2023

27

(684)

(657)

2,760

114,451- 11 -

(4) Consolidated statements of cash flows
For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)(Millions of yen)
For the fiscal year ended
October 31, 2023
(From November 1, 2022
to October 31, 2023)

Cash flows from operating activities:
Profit before income taxes

31,02529,956

Depreciation

4,896

5,195

Impairment losses

994－

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

731

974

(16)

262

59

58

Increase (decrease) in retirement benefit liability

(62)

38

Interest and dividend income

(288)

(881)

Loss (gain) on valuation of derivatives

(478)

4,082

86

58

Interest expenses
Foreign exchange losses (gains)(3,069)(2,080)Loss (gain) on sale of investment securities

50

(9)

Loss (gain) on sale of property, plant and equipment

(2)

(6)

Loss on retirement of property, plant and equipment

73

61

Decrease (increase) in trade receivables(3,378)(3,687)

Decrease (increase) in inventories(5,003)

893

162

172

4,020

3,062

Increase (decrease) in other current liabilities

480

1,928

Increase (decrease) in guarantee deposits received

655

422

Decrease (increase) in advance payments to suppliers

(195)

407

Other, net

120

(324)

Subtotal

30,86040,582

Interest and dividends received

295

863

Interest paid

(74)

(51)

Income taxes paid

(9,499)(11,051)

Net cash provided by (used in) operating activities

21,58230,343

Payments into time deposits(1,158)(624)

Proceeds from withdrawal of time deposits

1,158

532

Purchase of property, plant and equipment(11,106)(8,687)

Proceeds from sale of property, plant and equipment

176

47

Purchase of intangible assets

(288)

(689)

Proceeds from sale of investment securities

370

269

(2,000)

－

－

2,000

Decrease (increase) in other current assets
Increase (decrease) in trade payables

Cash flows from investing activities:

Purchase of securities
Loan advances
Proceeds from collection of loans receivable

514

518

Other, net

(150)

(187)

(12,483)(6,821)

Net cash provided by (used in) investing activities- 12 -

(Millions of yen)
For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)

For the fiscal year ended
October 31, 2023
(From November 1, 2022
to October 31, 2023)

Proceeds from long-term borrowings

15,00012,000

Repayments of long-term borrowings(15,155)(8,217)－(399)

Cash flows from financing activities:

Purchase of treasury shares
Proceeds from disposal of treasury shares

769

1,524

(4,363)(4,824)(2)(2)

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(3,752)

80

3,695

1,909

9,042

25,512

Cash and cash equivalents at beginning of period

56,71065,753

Cash and cash equivalents at end of period

65,753

91,265

Dividends paid
Repayments of finance lease obligations- 13 -

(5) Notes to consolidated financial statements(Going concern assumption)
Not applicable.
(Changes in accounting policies)(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Guidance No.31; June 17, 2021;
hereinafter, the “Fair Value Accounting Standards”) since the beginning of the first quarter of this fiscal year. In
accordance with the transitional treatment set forth in paragraph 27-2 of the Fair Value Accounting Standards, theCompany has applied the new accounting policies set forth by the Fair Value Accounting Standard prospectively. Thereis no effect on the quarterly consolidated financial statements by applying the standard.

(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 andassess its performance.
We have business headquarters in head office to manage stores and restaurants as a franchisor of each business, andwork 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 ofRenewable Electric Energy by Operators of Electric Utilities of Japan” enacted on July 1, 2012.
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 tothe description 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, 2022 (from November 1, 2021 to October 31, 2022)(Millions of yen)
Gyomu
Super
Business

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment
Consolidated*2

Timing ofrevenue recognition
Goods or services
transferred
at a point in time392,853

7,271－

400,12440

400,165－

400,165

Goods or services
transferredover time
Revenue fromcontracts withcustomers
Net sales
Sales toexternal customers

3,443

52

3,152

6,648

－

6,648

－

6,648

396,296

7,323

3,152

406,77340

406,813－406,813396,296

7,323

3,152

406,77340

406,813－406,813Intersegment
sales or transfers

3,073

167

－

3,241

－

3,241

(3,241)－

Total

399,370

7,491

3,152

410,01540

410,055(3,241)

406,813

Segment
profit (loss)

31,612(119)676

32,169(39)

32,130(4,310)27,820

Segment assets

125,662

5,191

22,590

153,443

17

153,461

26,814

180,275

3,381

248

1,075

4,706

10

4,716

180

4,896

Other items:
Depreciation*3

Increases inproperty, plant and
4,835
974
3,867
9,677
3
9,680
602
10,283equipment andintangible assets*3*1 The Other businesses are those not classified into any reportable segment, including 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 ¥(4,310) 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 ¥26,814 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 ¥180 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 ¥602 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.

- 15 -

For the fiscal year ended October 31, 2023 (from November 1, 2022 to October 31, 2023)(Millions of yen)
Gyomu
Super
Business

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment
Consolidated*2

Timing ofrevenue recognition
Goods or services
transferred
at a point in time

443,042

10,860－453,90240

453,943－

453,943

Goods or services
transferredover time
Revenue fromcontracts withcustomers
Net sales
Sales toexternal customers

3,866

90

3,646

7,603

－

7,603

－

7,603

446,908

10,9503,646

461,50540

461,546－461,546446,908

10,9503,646

461,50540

461,546－461,546

Intersegment
sales or transfers

4,867

362

－

5,230

－

5,230

(5,230)－Total

451,776

11,313

3,646

466,73640

466,777(5,230)461,546

Segment
profit (loss)

34,139512938

35,589(53)

35,536(4,819)30,717

Segment assets

155,354

7,328

26,651

189,334

15

189,349

22,541

211,891

3,320

312

1,335

4,967

1

4,968

226

5,195

Other items:
Depreciation*3

Increases inproperty, plant and
6,572
781
3,472
10,825
9
10,835874
11,709equipment andintangible assets*3*1 The Other businesses are those not classified into any reportable segment, including 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 ¥(4,819) 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 ¥22,541 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 ¥226 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 ¥874 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.

- 16 -

(Per share information)
For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)

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

For the fiscal year ended
October 31, 2023
(From November 1, 2022
to October 31, 2023)¥506.23¥93.59¥92.51¥433.53¥95.35¥93.87(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 (275,200 shares as of October 31, 2023 and 168,400 shares as of October 31, 2022) was included in the numberof treasury shares, which was to be deducted from the number of shares issued 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 (202,635 shares as of October 31, 2023 and 168,400 shares as of October 31, 2022) was included in thenumber of treasury shares, which was to be deducted from the calculation of the average number of shares of common shares
outstanding during the period.
2. 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, 2022
(From November 1, 2021
to October 31, 2022)

For the fiscal year ended
October 31, 2023
(From November 1, 2022
to October 31, 2023)

20,832－
20,832

20,560－20,560218,489,985

219,677,661

－

－

－

－

3,444,782(3,444,782)

2,574,229(2,574,229)－－