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 Six Months Ended April 30, 2023
(Under Japanese GAAP)
June 13, 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 file Quarterly Securities Report:
June 14, 2023
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)
Holding of quarterly 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 six months ended April 30, 2023 (from November 1, 2022 to April 30, 2023)(1) Consolidated operating results(Percentage indicates year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
April 30, 2023
221,968
12.0
14,133(4.1)
13,198 (19.4)
9,110(17.5)
April 30, 2022
198,161
12.3
14,733
2.4
16,3807.8
11,0378.9
Note: Comprehensive income
For the six months ended April 30, 2023: ¥8,365 million [(26.2) %]For the six months ended April 30, 2022: ¥11,331 million [10.2%]
Basic earnings
per share
Six months endedApril 30, 2023
April 30, 2022

Yen
41.54
50.57

Diluted earnings
per share
Yen
41.02
49.74

(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
April 30, 2023
193,494
101,506
October 31, 2022
180,275
97,220
Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of April 30, 2023: ¥98,985 million
As of October 31, 2022: ¥94,990 million
2.

Equity ratio
%
51.2
52.7

Net assets per share
Yen
450.98433.53

Cash Dividends

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Fiscal year
Yen
Yen
Yen
Ended October 31, 2022
0.00
–
22.00
Ending October 31, 2023
0.00
Ending October 31, 2023 (Forecast)–
22.00
Note: Revisions to cash dividend forecast published most recently: NoneFirst
quarter-end
Yen
–
–

Total
Yen
22.00
22.00

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
21,2001.8
97.02
Note: Revisions to earnings forecast published most recently: None3.

[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) 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: 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 “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to quarterly consolidated
financial statements (Changes in accounting policies)” on page 8 of the Attached Materials.

(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury shares)
As of April 30, 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 April 30, 2023:
54,109,820 shares
As of October 31, 2022:
54,490,520 shares(iii) Average number of shares of common shares outstanding during the period
Six months ended April 30, 2023:
219,292,944 shares
Six months ended April 30, 2022:
218,257,206 shares
Note:

The number of shares of Kobe Bussan (168,400 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, 2022 andApril 30, 2023, 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 outstanding for the six months ended April 30, 2022 andthe six months ended April 30, 2023.

* 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
(Changes in accounting policies) ····································································································· P. 8
(Segment information) ················································································································· P. 9

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1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly consolidated operating results
During the six months ended April 30, 2023 (from November 1, 2022 to April 30, 2023) (hereinafter the “period underreview”), the Japanese economy began to show signs of gradual recovery as the easing of movement and immigration
restrictions due to COVID-19 resulted in increased traffic. Nevertheless, the future economic situation has still remained
unclear due to the prolonged Russian-Ukraine situation and soaring costs of raw materials and energy, as well as sharp
fluctuations in foreign exchange rates.
As a savings-oriented attitude of consumers is prevailing, players in the food retail industry are hard-pressed to deal with suchcost 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 andproactive 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 ¥221,968 million (up 12.0%
year on year), operating profit of ¥14,133 million (down 4.1%), ordinary profit of ¥13,198 million (down 19.4%), and profit
attributable to owners of parent of ¥9,110 million (down 17.5%).
The operating results by business segment are as follows:(i) Gyomu Super BusinessThis 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 1,023 stores as a result of a net increase of 16 stores after opening 24 stores and closing eight.
The breakdown of new store openings was 19 stores in directly managed areas and five 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. Some of ourfranchisees are strongly encouraged to relocate stores whose facilities have deteriorated over many years in service.
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, price hikes through a successfully implemented
pricing strategy, and 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 ¥215,111 million (up 11.2% year onyear).
(ii) Restaurant & Delicatessen BusinessThis 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 two restaurants and closed none, resulting in 13 restaurants
nationwide. The number of customer visits has gradually been recovering partly due to the Japanese government lifting themask mandate and the limit on the number of people per table, along with the reopening of two restaurants after renovation andmenu changes. Premium Karubi opened three restaurant and closed none, resulting in 19 restaurants nationwide. Each
restaurant performed well by continuing to attract more customers. Accordingly, the expansion of the business scale through anincrease in the number of restaurants helped operations become more efficient. Chisouna opened 13 shops and closed two,
resulting in 98 shops nationwide. Net sales expanded thanks to a variety of foods that caters to customers’ needs and thesignificantly increased number of shops.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥5,222 million (up61.3% year on year).

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(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. We did notopen any power plants during the period under review, but opened one solar power plant in Nishigo-mura, Nishishirakawa-gun,
Fukushima since June 2022, resulting in a year-on-year increase by one solar power plant. Currently, we operate 18 solar
power plants collectively generating approximately 51.0 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 ¥1,630 million (up 17.4%
year on year).

(2)

Overview of quarterly consolidated financial position(Assets)
Total assets as of April 30, 2023 increased by ¥13,218 million from the end of the previous fiscal year to ¥193,494 million.
This was mainly due to an increase in current assets of ¥11,725 million.
This increase was mostly attributable to an increase in cash and deposits of ¥16,047 million resulting from new borrowings to
be used for the facility enhancement of our group’s domestic plants, partially offset by a decrease in merchandise and finishedgoods of ¥2,185 million.
(Liabilities)
Total liabilities as of April 30, 2023 increased by ¥8,933 million from the end of the previous fiscal year to ¥91,988 million.
This was mainly due to an increase in non-current liabilities of ¥11,680 million, partly offset by a decrease in current
liabilities of ¥2,747 million.
The decrease in current liabilities was mainly attributable to a decrease in short-term borrowings of ¥3,105 million, partially
offset by an increase in accounts payable-trade of ¥1,459 million.
The increase in non-current liabilities was mainly attributable to an increase in long-term borrowings of ¥10,718 million
resulting from new borrowings for a reason already mentioned above.
(Net assets)
Total net assets as of April 30, 2023 increased by ¥4,285 million from the end of the previous fiscal year to ¥101,506 million.
This was mainly due to an increase in retained earnings of ¥4,286 million.

(3) Overview of forward-looking statements including consolidated financial forecast
It remains unchanged from our financial forecast published on December 15, 2022.

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2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Millions of yen)
Current quarter(As of April 30, 2023)

Previous fiscal year
(As of October 31, 2022)
AssetsCurrent assets:
Cash and deposits

67,04083,088

Accounts receivable - trade

23,24923,991

Securities

2,000

－

Merchandise and finished goods

17,495

15,310435

410

Raw materials and supplies

1,798

2,017

Other

3,995

2,933

(2)

(15)

116,011

127,736

Buildings and structures, net

16,001

16,228

Machinery, equipment and vehicles, net

17,79917,306

Land

16,43016,453

Other, net

7,880

9,986

Total property, plant and equipment

Work in process

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

58,112

59,975Intangible assets

1,041

1,495

Investments and other assets

5,109

4,287

Total non-current assets

64,26365,757

180,275

193,494

Accounts payable - trade29,16730,626

Short-term borrowings

8,217

5,112

Income taxes payable

6,026

4,214

Total assets
Liabilities
Current liabilities:

Provision for bonuses

414

461

Other

4,162

4,826

Total current liabilities

47,98745,23926,31737,036Retirement benefit liability

650

687

Guarantee deposits received

7,167

7,423

528

551

81

95

322

953

35,067

46,74883,05591,988Non-current liabilities:
Long-term borrowings

Asset retirement obligations
Provision for share awards for directors(and other officers)
Other
Total non-current liabilities
Total liabilities-4-

(Millions of yen)
Current quarter(As of April 30, 2023)

Previous fiscal year
(As of October 31, 2022)
Net assets
Shareholders’ equity:
Share capital

500

500

Capital surplus

10,466

10,857Retained earnings

93,061

97,347

Treasury shares(8,953)(8,891)

Total shareholders’ equity

95,074

99,813

Valuation difference on available-for-sale securities

(3)

20

Foreign currency translation adjustment

(80)

(848)

Total accumulated other comprehensive income

(84)

(828)

Share acquisition rights

2,229

2,521

Total net assets

97,220101,506

180,275

193,494

Accumulated other comprehensive income:

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 six months endedApril 30, 2022
(From November 1, 2021
to April 30, 2022)
198,161(Millions of yen)
For the six months endedApril 30, 2023
(From November 1, 2022
to April 30, 2023)
221,968

Cost of sales

174,438

197,450

Gross profit

23,722

24,518Selling, general and administrative expenses

8,989

10,384

Operating profit

14,733

14,133

Interest income

42

247

Dividend income

00

Rental income

125

68

Foreign exchange gain

987

213

Gain on valuation of derivatives

231－

Subsidy income

182

67

Other

186

226

1,755

823

Interest expenses

45

31

Rental costs

15

17

Fuel sale costs

38

41

Loss on valuation of derivatives

－

1,659

Other

9

9

Non-operating income:

Total non-operating income
Non-operating expenses:

Total non-operating expenses

108

1,759

16,38013,198Gain on sale of investment securities－

4

Gain on sale of non-current assets

60Gain on reversal of share acquisition rights

70

Total extraordinary income

135Loss on retirement of non-current assets

18

7Loss on sale of investment securities

50－

Total extraordinary losses

68

7

Profit before income taxes

16,325

13,195

Income taxes - current

5,475

4,045

Income taxes - deferred

(187)

40

Total income taxes

5,287

4,085

Profit11,037

9,110

Profit attributable to owners of parent

11,037

9,110

Ordinary profit
Extraordinary income:Extraordinary losses:-6-Quarterly consolidated statements of comprehensive income

Profit

For the six months endedApril 30, 2022
(From November 1, 2021
to April 30, 2022)
11,037(Millions of yen)
For the six months endedApril 30, 2023
(From November 1, 2022
to April 30, 2023)
9,110

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

(116)

23

Foreign currency translation adjustment

410

(768)

Total other comprehensive income

293

(744)

11,3318,365

11,331

8,365

Comprehensive income
Comprehensive income attributable to:
Owners of parent-7-

(3) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable.
(Significant changes in shareholders’ equity)
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.

-8-

(Segment information)
I. For the six months ended April 30, 2022 (from November 1, 2021 to April 30, 2022)
1. Information on amounts of net sales and profit (loss) by reportable segment(Millions of yen)
Gyomu
Super
Business

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment Consolidated*2*3

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

191,844

3,216–

195,0601

195,062–

195,062

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

1,688

22

1,388

3,098

–

3,098

–

3,098

193,532

3,238

1,388

198,1591

198,161–

198,161

193,532

3,238

1,388

198,1591

198,161–

198,161Intersegment
sales or transfers

1,360

74

–

1,435

–

1,435

(1,435)–

Total

194,893

3,312

1,388

199,5941

199,596(1,435)

198,161

Segment
16,620(89)
244
16,774 (26)
16,748(2,014)
14,733
profit (loss)*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 ¥(2,014) million is corporate expenses unallocated to eachreportable segment. The expenses are general and administrative expenses unattributable to any reportablesegments.
*3 Segment profit (loss) is adjusted with operating income reported on the quarterly consolidated statements of income.
2. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment.
(Significant impairment losses related to non-current assets)
Not applicable.

-9-II. For the six months ended April 30, 2023 (from November 1, 2022 to April 30, 2023)
1. Information on amounts of net sales and profit (loss) and disaggregated revenue by reportable segment(Millions of yen)
Gyomu
Super
Business

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment Consolidated*2*3

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

213,242

5,181－

218,423

4

218,427－

218,427

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

1,869

41

1,630

3,541

－

3,541

－

3,541

215,111

5,222

1,630

221,9644

221,968－

221,968

215,111

5,222

1,630

221,9644

221,968－

221,968

Intersegment
sales or transfers

2,308

122

－

2,430

－

2,430

(2,430)－Total

217,419

5,344

1,630

224,3944

224,399(2,430)221,968

Segment
15,822
154
332
16,309 (31)16,278(2,144)
14,133
profit (loss)*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 ¥(2,144) million is corporate expenses unallocated to eachreportable segment. The expenses are general and administrative expenses unattributable to any reportablesegments.
*3 Segment profit (loss) is adjusted with operating income reported on 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)
Not applicable.

- 10 -