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, 2022
(Under Japanese GAAP)
December 15, 2022
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 27, 2023
Scheduled date to file Annual Securities Report:
January 30, 2023
Scheduled date to commence payment of dividends:
January 12, 2023
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, 2022 (from November 1, 2021 to October 31, 2022)(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, 2022
406,813
12.4
27,8201.9
32,125
10.4
20,832
6.3
October 31, 2021
362,064
6.2
27,311
14.5
29,08723.0
19,59230.2
Note: Comprehensive income
For the fiscal year ended October 31, 2022: ¥21,876 million [8.9%]
For the fiscal year ended October 31, 2021: ¥20,086 million [41.0%]
Basic earnings
Diluted earnings
Return on equity*
per shareper share
Fiscal year ended
Yen
Yen
%
October 31, 2022
95.35
93.87
24.3
October 31, 2021
90.48
88.52
29.2
* Equity = Shareholders’ equity + Valuation and translation adjustments(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
October 31, 2022
180,275
97,220
October 31, 2021
156,737
78,218Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of October 31, 2022: ¥94,990 million
As of October 31, 2021: ¥76,411 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
Millions of yen
October 31, 2022
21,582October 31, 2021
21,261
2.

Cash flows frominvesting activities
Millions of yen(12,483)(17,407)

Ordinary profit tototal assets ratio
%
19.1
19.1

Equity ratio

Operating profit
margin
%
6.8
7.5

%
52.7
48.8

Net assets per shareYen
433.53350.49Cash flows fromfinancing activities
Millions of yen(3,752)(16,526)

Cash and cash equivalents
at end of period
Millions of yen
65,75356,710Cash dividends

Fiscal year ended
October 31, 2021
October 31, 2022
Fiscal year ending
October 31, 2023 (Forecast)

Note:

Annual dividend per share
First
SecondThird
Fiscalquarter-end quarter-end quarter-end year-end
Yen
Yen
Yen
Yen
0.00
20.00
–
–
0.00
22.00
–
–

–

0.00

–

22.00

Total

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

Yen Millions of yen
20.00
4,363
22.00
4,824

%
22.1
23.1

22.00

22.7

Breakdown of year-end dividend for the fiscal year ended October 31, 2022:
Ordinary dividend of ¥21.00 per share and special dividend of ¥1.00 per share

%
6.5
5.6

Consolidated financial forecast for the fiscal year ending October 31, 2023 (from November 1, 2022 to October 31, 2023)(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
440,000
8.2
29,7006.8
32,5001.2
21,200
1.8
97.02

3.

[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): None
(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, 2022:
273,600,000 shares
As of October 31, 2021:
273,600,000 shares(ii) Number of shares of treasury shares at the end of the period
As of October 31, 2022:
54,490,520 shares
As of October 31, 2021:
55,587,320 shares(iii) Average number of shares of common shares outstanding during the period
Fiscal year ended October 31, 2022:
218,489,985 sharesFiscal year ended October 31, 2021:
216,527,896 shares
Note: The number of shares of Kobe Bussan held by Custody Bank of Japan, Ltd. (“Trust Account”) as trust property for a
Board Benefit Trust (176,000 shares for the fiscal year ended October 31, 2021 and 168,400 shares for the fiscal year
ended October 31, 2022) was included in the number of shares of treasury shares as of October 31, 2021 and October
31, 2022.
Also, the number of shares of Kobe Bussan held by Custody Bank of Japan, Ltd. (“Trust Account”) was included in thenumber of shares of treasury shares to be deducted from the calculation of the average number of shares of commonshares outstanding for the fiscal year ended October 31, 2021 and the fiscal year ended October 13, 2022 (176,000
shares for the fiscal year ended October 31, 2021 and 171,090 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, 2022 (from November 1, 2021 to October 31, 2022)(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, 2022
395,092–
24,710–28,756–
19,668–October 31, 2021
370,772
11.0
22,93018.4
24,70226.2
16,705
34.9
Basic earnings
per share

Diluted earnings
per share

Fiscal year ended
Yen
Yen
October 31, 2022
90.02
88.63
October 31, 2021
77.15
75.47
Note:
Since the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. have been applied
from the beginning of the fiscal year ended October 31, 2022, the figures for the current fiscal year 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
Equity ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
October 31, 2022
168,078
83,41948.3
370.54
October 31, 2021
145,973
66,69644.5
297.64
Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of October 31, 2022: ¥81,189 million
As of October 31, 2021: ¥64,889 million
Note:
Since the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. have been applied
from the beginning of the fiscal year ended October 31, 2022, the figures for the current fiscal year reflect the adoption of
the said standards.

* 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, 2023” 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, 2023 ················································································ 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, etc.) ··········································································································· 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, 2022 (from November 1, 2021 to October 31, 2022) (hereinafter the “period underreview”), Japan lifted movement restrictions and was gradually resuming its economic activities thanks to expandedvaccination and testing capabilities as well as improved medical delivery system in spite of the rebound of COVID-19.
Meanwhile, various costs were sharply rising partly due to poor harvests caused by droughts around the world, restrictions onimport and export of grains and energy resources against the backdrop of the Russian invasion of Ukraine, and the rapidly
weakening yen triggered by the interest rate increase in the United States.
As a savings-oriented attitude of consumers is still prevailing, players in the food retail industry are hard-pressed to deal withsuch cost rises.
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 provided 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 ¥406,813 million (up 12.4%
year on year), operating profit of ¥27,820 million (up 1.9%), ordinary profit of ¥32,125 million (up 10.4%), and profit
attributable to owners of parent of ¥20,832 million (up 6.3%).
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 1,007 stores as a result of a net increase of 57 stores after opening 79 stores and closing 22.
The breakdown of new store openings was 61 stores in directly managed areas and 18 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 franchise owners to relocate stores which have deteriorated after many years in operations. Although we fell shortof our store opening target for the period under review partly due to a delay in delivery of refrigeration equipment caused by
the semiconductor shortage, our franchisees remain keen to open new stores.
In terms of operating results, we have continued expanding business performance. This is because we have overcome adecline in profit margin due to the rise in purchase costs caused by the depreciation of yen and price hikes through a
successfully implemented pricing strategy and a significantly increased mass and social 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 ¥396,296 million (up 11.5% 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 and closed seven restaurants, resulting in 11 restaurants
nationwide. Although the certain restaurants closed down because of the COVID-19 infections, the number of customer visits
to the restaurants has gradually recovered partly due to the reopening of three restaurants after renovation and menu changes.
Premium Karubi opened six restaurants and closed none, resulting in 16 restaurants nationwide. Each restaurant performed
well by continuing to attract more customers. Accordingly, the expansion of the business scale through an increase in thenumber of restaurants helped operations become more efficient. Chisouna opened 38 shops and closed none, resulting in 87
shops nationwide. Net sales expanded thanks to a variety of foods that caters to customers’ needs and the significantly
increased number of shops.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥7,323 million (up88.3% year on year).
- 2 -[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 Nishigo-mura, Nishishirakawa-gun, Fukushima since June in the period under review, we
currently operate 18 solar power plants collectively generating approximately 51.0 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 ¥3,152 million (up 18.1%
year on year).

(2) Analysis of financial position(Assets)
Total assets as of October 31, 2022 increased by ¥23,538 million from the end of the previous fiscal year to ¥180,275 million(up 15.0% year on year).
This was mostly attributable to an increase in current assets of ¥20,148 million to ¥116,011 million (up 21.0% year on year).
This was mainly due to increases in cash and deposits of ¥9,241 million resulting from new borrowings to be used for thefacility enhancement of our group’s domestic plants, merchandise and finished goods of ¥4,677 million following the
expansion of our business scale and product range, and accounts receivable - trade of ¥3,412 million.
(Liabilities)
Total liabilities as of October 31, 2022 increased by ¥4,536 million from the end of the previous fiscal year to ¥83,055 million(up 5.8% year on year). This was mostly attributable to a decrease in current liabilities of ¥3,060 million and an increase in
non-current liabilities of ¥7,596 million.
Current liabilities amounted to ¥47,987 million (down 6.0% year on year). This was mainly due to a decrease in short-termborrowings of ¥6,937 million resulting from the partial repayment of the outstanding borrowings, partially offset by anincrease in accounts payable-trade of ¥4,008 million caused by the expansion of our business scale.
Non-current liabilities amounted to ¥35,067 million (up 27.7% year on year). This was mainly due to an increase in long-termborrowings of ¥6,782 million to be used for the facility enhancement of our group’s domestic plants.
(Net assets)
Total net assets as of October 31, 2022 increased by ¥19,002 million from the end of the previous fiscal year to ¥97,220
million (up 24.3% year on year). This was mainly due to an increase in retained earnings of ¥16,469 million.
Consequently, the equity ratio as of October 31, 2022 increased by 3.9 percentage points year on year to 52.7%. Net assets per
share stood at ¥433.53 for the current fiscal year compared to ¥350.49 for the previous fiscal year.

(3) Analysis of cash flows
Total cash and cash equivalents as of October 31, 2022 (hereinafter “net cash”) increased by ¥9,042 million from the end of
the previous fiscal year to ¥65,753 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 ¥21,582 million (up ¥320
million year on year). This was mainly due to an increase in profit before income taxes of ¥2,287 million, and foreignexchange gains of ¥2,133.
(Cash flows from investing activities)
Net cash used in investing activities for the period under review amounted to an outflow of ¥12,483 million (down ¥4,924
million year on year). This was mainly due to a decrease in an outflow of ¥6,887 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 outflow of ¥3,752 million (down ¥12,774
million year on year). This was mainly due to an increase in the proceeds of ¥15,000 million from long-term borrowings.

- 3 -(4) Outlook for the fiscal year ending October 31, 2023
We are planning to further grow our mainstay Gyomu Super Business with an aim to have 1,047 Gyomu Super stores (netincrease of 40 stores) by the end of the fiscal year ending October 31, 2023. 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.
Although costs will likely continue to increase due to soaring prices of food ingredients and crude oil caused by the unstableworld situation and natural disasters as well as rising labor costs, we carry on striving to expand our business performance as
described above.
All in all, in terms of operating results for the fiscal year ending October 31, 2023, we forecast nets sales of ¥440,000 million,
operating profit of ¥29,700 million, ordinary profit of ¥32,500 million, and profit attributable to owners of parent of ¥21,200
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, 2021)(Millions of yen)
Current fiscal year
(As of October 31, 2022)

AssetsCurrent assets:
Cash and deposits

57,79967,040Accounts receivable - trade

19,837

23,249－2,000

12,817

17,495353

435

Raw materials and supplies

1,493

1,798

Other

3,576

3,995

(15)

(2)

95,862116,011

Securities
Merchandise and finished goods
Work in process

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

23,47425,194

Accumulated depreciation(7,939)(9,192)

Buildings and structures, net

15,53416,001

Machinery, equipment and vehicles

28,25334,378

Accumulated depreciation(13,689)(16,579)

Machinery, equipment and vehicles, net

14,564

17,79913,35016,430

22

25

(17)

(18)

5

6

Construction in progress

10,314

7,031

Other

2,462

2,961

(1,738)(2,118)Land
Leased assets
Accumulated depreciation
Leased assets, net

Accumulated depreciation
Other, net

724

842

54,493

58,112

Goodwill

17

12

Other

867

1,028

Total Intangible assets

884

1,041

Investment securities

1,784

1,267

Long-term loans receivable

1,645

1,135

Deferred tax assets

Total property, plant and equipment
Intangible assets

Investments and other assets

1,470

1,564

Leasehold and guarantee deposits

430

561

Other

392

803

Allowance for doubtful accounts

(226)

(222)

Total investments and other assets

5,496

5,109

60,87464,263

156,737

180,275

Total non-current assets
Total assets- 5 -(Millions of yen)Previous fiscal year
(As of October 31, 2021)

Current fiscal year
(As of October 31, 2022)

Liabilities
Current liabilities:
Accounts payable - trade25,15829,167

Short-term borrowings

15,155

8,217

1

2

Income taxes payable

5,194

6,026

Provision for bonuses

354

414

Other

5,182

4,159

Total current liabilities

51,04747,987

19,534

26,317

Lease obligations

Non-current liabilities:
Long-term borrowings
Lease obligations

4

3

Deferred tax liabilities

117

120

Retirement benefit liability

713

650

Guarantee deposits received

6,512

7,167

465

528

58

81

Asset retirement obligations
Provision for share awards for directors(and other officers)
Other

64

198

27,47135,06778,51883,055

Share capital

500

500

Capital surplus

9,581

10,466

Retained earnings

76,592

93,061

Treasury shares(9,135)(8,953)

Total shareholders’ equity

77,53995,074

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:

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

62

(3)

(1,190)(80)

Total valuation and translation adjustments(1,127)(84)

Share acquisition rights

1,807

2,229

Total net assets

78,21897,220156,737

180,275

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, 2021
(From November 1, 2020
to October 31, 2021)
362,064(Millions of yen)
For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)
406,813

Cost of sales

318,940

360,217Gross profit

43,123

46,596Advertising expenses

158

262

Rent expenses on land and buildings

564

759

6,378

7,504

459

362

Selling, general and administrative expenses:

Freight costs
Promotion expenses
Outsourcing expenses

625

709

3,316

4,051

Legal welfare expenses

448

485

Provision for bonuses

191

236

Wages, salaries and expenses

Retirement benefit expenses

90

13

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

494

666

18

23

1

(1)

5

5

Other

3,058

3,697

Total selling, general and administrative expenses

15,812

18,77627,311

27,820Interest income

101

279

Dividend income

09Lease revenue

110

251

Gain on valuation of derivatives

220

478

Foreign exchange gains

826

2,790

Subsidy income

529

323

Amortization of goodwill

Operating profit
Non-operating income:Fuel sale income

67

81

Other

241

306

2,097

4,520

Interest expenses

181

86

Rental costs

29

32

Commission expenses

10

Fuel sale cost64

79

Provision of allowance for doubtful accounts

16－

Total non-operating income
Non-operating expenses:

Other

28

16

Total non-operating expenses

321

215

29,08732,125

Ordinary profit-7-

For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)(Millions of yen)
For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)

Extraordinary income:Gain on sale of non-current assets

56Gain on reversal of share acquisition rights

18

15

Total extraordinary income

24

22

Loss on retirement of non-current assets

70

73

Loss on sale of non-current assets

127

4

Loss on sale of investment securities－

50

Impairment losses

176

994

Total extraordinary losses

373

1,122

Profit before income taxes

28,73831,025

Income taxes - current

8,877

10,254

Income taxes - deferred

268

(62)

Total income taxes

9,145

10,192

Profit19,592

20,832

Profit attributable to owners of parent

19,592

20,832Extraordinary losses:-8-

Consolidated statements of comprehensive income

Profit

For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)
19,592(Millions of yen)
For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)
20,832Other comprehensive income:
Valuation difference on available-for-sale securities

49

(66)

Foreign currency translation adjustment

444

1,109

Total other comprehensive income

494

1,043

20,086

21,87620,086

21,876Comprehensive income
Comprehensive income attributable to:
Owners of parent-9-

(3) Consolidated statements of changes in equity
For the fiscal year ended October 31, 2021 (From November 1, 2020 to October 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
Balance, November 1, 2020
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposable of treasury
sharesTransfer from capitalsurplus to share capital
Net change of items otherthan shareholders’ equity
Total changes of items
during period
Balance, October 31, 2021

Capital surplus
64

Retained earnings

Treasury shares

60,243(9,465)

8,539(3,242)

19,592

19,592
(0)

(0)

330

1,809

(436)

–
–

436

1,042

16,349330

18,158500

9,581

76,592(9,135)77,539Share
AcquisitionrightsTotal net assets

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance, November 1, 2020

59,380(3,242)

1,478
436

Total

13

Foreign currencytranslation
adjustment(1,634)

Total(1,621)

1,510

59,268Changes of items during
periodDividends of surplus–(3,242)–

19,592–(0)

Disposable of treasury
shares–

1,809Transfer from capitalsurplus to share capital––

Profit attributable toowners of parent
Purchase of treasury
sharesNet change of items otherthan shareholders’ equity

49

444

494

296

791

Total changes of items
during period

49

444

494

296

18,949Balance, October 31, 2021

62

(1,190)(1,127)

1,807

78,218- 10 -

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
Purchase of treasury
shares
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
Purchase of treasury
shares

20,832–

Disposable of treasury
sharesNet change of items otherthan shareholders’ equity

1,066
(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- 11 -

(4) Consolidated statements of cash flows
For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)(Millions of yen)
For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)

Cash flows from operating activities:
Profit before income taxes

28,73831,025

Depreciation

4,151

4,896

Impairment losses

176

994

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

808

731

2

(16)

55

59

Increase (decrease) in retirement benefit liability

100

(62)

Interest and dividend income

(101)

(288)

Loss (gain) on valuation of derivatives

(220)

(478)

Interest expenses

181

86

Foreign exchange losses (gains)(936)(3,069)–50

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

121

(2)

Loss on retirement of property, plant and equipment

69

73

Decrease (increase) in trade receivables(2,283)(3,378)Decrease (increase) in inventories(4,050)(5,003)

Decrease (increase) in other current assets

(237)

162

Increase (decrease) in trade payables

3,002

4,020

Increase (decrease) in other current liabilities

760

480

Increase (decrease) in guarantee deposits received

463

655

Decrease (increase) in advance payments to suppliers

(787)

(195)

Other, net

218

120

Subtotal

30,23430,860Loss (gain) on sale of investment securities

Interest and dividends received

91

295

(189)

(74)

Income taxes paid

(8,874)(9,499)Net cash provided by (used in) operating activities

21,261

21,582

Interest paid

- 12 -

(Millions of yen)
For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)

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

Cash flows from investing activities:
Payments into time deposits(685)(1,158)Proceeds from withdrawal of time deposits

1,225

1,158

Purchase of property, plant and equipment(17,994)(11,106)

Proceeds from sale of property, plant and equipment

69

176

Purchase of intangible assets

(434)

(288)

Proceeds from sale of investment securities

240

370

–

(2,000)Purchase of securities
Loan advances

(63)

－

Proceeds from collection of loans receivable

517

514

Other, net

(282)

(150)

(17,407)(12,483)

Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from long-term borrowings–

15,000

Repayments of long-term borrowings(14,598)(15,155)(0)－Proceeds from disposal of treasury shares

1,316

769

Dividends paid

(3,242)(4,363)(1)(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(16,526)(3,752)

1,098

3,695

(11,574)

9,042

Cash and cash equivalents at beginning of period

68,28556,710Cash and cash equivalents at end of period

56,71065,753Purchase of treasury shares

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 Revenue Recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) andthe Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, March 26, 2021)
since the beginning of the current fiscal year. In accordance with theses accounting policies, when control over the promised
goods or services are transferred to the customer, revenue will be recognized at the amount expected to be received in
exchange for the said goods or services.
In applying the Accounting Standard for Revenue Recognition and other standards, the Company has added or subtracted thecumulative effect of applying the new accounting policy retrospectively to or from retained earnings at the beginning of thecurrent fiscal year and applied the new accounting policy from the restated balance pursuant to the transitional treatment set
forth in the proviso of paragraph 84 of the Accounting Standard for Revenue Recognition.
As a result of the application of the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable trade” presented under “Current assets” in the consolidated balance sheet as of October 31, 2021 is presented as “Accounts
receivable - trade” effective from the fiscal year under review.
Note that, in accordance with the transitional treatment set forth in paragraph 89-2 of the Accounting Standard for Revenue
Recognition, the line items for the previous fiscal year have not been reclassified using the new presentation method. In
addition, in accordance with the transitional treatment set forth in paragraph 89-3 of the Accounting Standard for Revenue
Recognition, the disaggregation of revenue from contracts with customers has not been provided for the previous fiscal year.
Consequently, this change in accounting policies has a minimal effect on the consolidated financial statements.

(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No.30; July 4, 2019;
hereinafter, the “Fair Value Accounting Standards”) and other standards since the beginning of the current fiscal year. In
accordance with the transitional treatment set forth in paragraph 19 of the Fair Value Accounting Standards and paragraph 44–
2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Company has applied the
new accounting policies set forth by the Fair Value Accounting Standards and others prospectively. There is no effect on thequarterly consolidated financial statements by applying the standard.

(Segment information, etc.)
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 and assess
its performance.
We have business headquarters in head office to manage stores and restaurants as a franchisor of each business, and work 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 of Renewable Electric
Energy by Operators of Electric Utilities of Japan” enacted on July 1, 2012.

- 14 -

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 to thedescription 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.

3. Information on amounts of net sales, profit or loss, assets, and other items by reportable segment
For the fiscal year ended October 31, 2021 (from November 1, 2020 to October 31, 2021)(Millions of yen)
Gyomu
Super
Business
Net sales
Sales toexternal customers

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment
Consolidated*2355,466

3,889

2,668

362,02440

362,064–

362,064

Intersegment
sales or transfers

1,742

148

–

1,891

–

1,891

(1,891)–

Total

357,209

4,038

2,668

363,91640

363,956(1,891)

362,064

Segment
profit (loss)

31,035(455)

480

31,060(52)

31,008(3,696)27,311

Segment assets

107,392

3,005

20,773

131,172141

131,31325,423

156,737

2,950

139

863

3,953

9

3,962

188

4,151

Other items:
Depreciation*3

Increases in
7,040
1,387
5,399
13,82743
13,871
4,514
18,385property, plant andequipment 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 ¥(3,696) 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 ¥25,423 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 ¥188 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 ¥4,514
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, 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.

- 16 -

(Per share information)

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

For the fiscal year ended
October 31, 2021
(From November 1, 2020
to October 31, 2021)

For the fiscal year ended
October 31, 2022
(From November 1, 2021
to October 31, 2022)¥350.49¥90.48¥88.52¥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 (176,000 shares (on a post-stock split basis) and 168,400 shares at the end of the previous and current fiscal years,
respectively) was included in the number of treasury shares, which was to be deducted from the number of shares issued at theend 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 (176,000 shares (on a post-stock split basis) and 171,090 shares at the end of the previous and current fiscal
years, respectively) was included in the number of treasury shares, which was to be deducted from the calculation of theaverage of shares of common shares outstanding during the period.
2. As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, basic earnings per share 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, 2021.
3. 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, 2021
(From November 1, 2020
to October 31, 2021)

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

19,592–
19,592

20,832–
20,832

216,527,896

218,489,985

–

–

–

–

4,810,911(4,810,911)

3,444,782(3,444,782)––