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, 2021
(Under Japanese GAAP)
June 11, 2021
Company name: Kobe Bussan Co., Ltd.
Listing:
Tokyo Stock Exchange
Security code:
3038
URL:
https://www.kobebussan.co.jp/
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, 2021
Scheduled date to commence payment of dividends:–
Preparation of supplementary material on quarterly financial results:
Yes (https://www.kobebussan.co.jp/ir/news.php)
Investors meeting presentation for quarterly financial results:
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, 2021 (from November 1, 2020 to April 30, 2021)(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, 2021
176,437
0.2
14,38716.1
15,19021.9
10,133
34.3
April 30, 2020
176,069
21.8
12,39332.9
12,465
31.4
7,546
24.7
Note: Comprehensive income
For the six months ended April 30, 2021: ¥10,283 million [49.3%]
For the six months ended April 30, 2020: ¥6,887 million [17.3%]
Basic earnings
per share

Diluted earnings
per share

Six months ended
Yen
Yen
April 30, 2021
46.89
45.83
April 30, 2020
35.08
34.32
Note: As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, both basic and diluted earnings per
share were calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended
October 31, 2020.
(2) Consolidated financial position
Total assets
Net assets
Equity-to-asset ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
April 30, 2021
142,424
66,85745.6
300.41
October 31, 2020
148,175
59,26839.0
267.42
Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income)As of April 30, 2021: ¥64,979 million
As of October 31, 2020: ¥57,758 million
Note:
As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, net assets per share was calculated
based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended October 31, 2020.
2.

Cash Dividends

Annual dividends per share
SecondThird
FiscalTotal
quarter-end
quarter-end
year-end
Fiscal year
Yen
Yen
Yen
Yen
Ended October 31, 2020
0.00
－
30.00
30.00
Ending October 31, 2021
0.00
Ending October 31, 2021 (Forecast)
－
20.00
20.00
Notes: 1. Revisions to cash dividend forecast published most recently: Yes
For more information on the revisions, please refer to the Notice of Revisions to Consolidated Financial Forecast and Cash
Dividend Forecast (available in Japanese only) published on June 11, 2021.
2. Reflecting the effect of the 2-for-1 stock split of common shares effective on November 1, 2020, the year-end dividend
forecast for the fiscal year ending October 31, 2021 is ¥20.00 per share (or ¥40.00 had the stock split not been carried out).
First
quarter-end
Yen－－Consolidated financial forecast for the fiscal year ending October 31, 2021 (from November 1, 2020 to October 31, 2021)(Percentage indicates year-on-year changes.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions
Millions
Millions
MillionsYenof yen%of yen%of yen%of yen%Fiscal year
358,000
5.0
29,40023.3
30,00026.9
20,00032.9
92.84
Note: Revisions to earnings forecast published most recently: Yes
For more information on the revisions, please refer to the Notice of Revisions to Consolidated Financial Forecast and Cash
Dividend Forecast (available in Japanese only) published on June 11, 2021.
3.

[Notes](1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scopeof consolidation): None
(2) Application of accounting methods used specifically for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements(i) Changes in accounting policies due to application of new or revised accounting standards: None(ii) Changes in accounting policies due to reasons other than above (i):None(iii) Changes in accounting estimates:None(iv) Restatements of prior period financial statements:
None(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury shares)
As of April 30, 2021:
273,600,000 shares
As of October 31, 2020:
273,600,000 shares(ii) Number of shares of treasury shares at the end of the period
As of April 30, 2021:
57,295,708 shares
As of October 31, 2020:
57,614,064 shares(iii) Average number of shares of common shares outstanding during the period
Six months ended April 30, 2021:
216,099,989 shares
Six months ended April 30, 2020:
215,145,584 shares
Notes:
1. As we conducted a 2-for-1 stock split of common shares effective on November 1, 2020, the number of sharesissued was calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal
year ended October 31, 2020.
2. The number of shares of Kobe Bussan (176,000 shares) held by Custody Bank of Japan, Ltd. (“Trust Account”) as
trust property for a Board Benefit Trust was included in the number of shares of treasury shares as of October 31,
2020 and April 30, 2021, which was to be deducted from the calculation of the number of shares of treasury shares
as of such periods, and the average number of shares of common shares for the six months ended April 30, 2020
and the six months ended April 30, 2021.

* This financial results report is not subject to audit procedures to be performed by certified public accountants or an audit firm.
* Proper use of earning forecast, and other special notes
The forward-looking statements including earnings forecast contained in this document are based on information currently available
to us and certain assumptions that we believe are reasonable. Accordingly, actual results may differ significantly from the results
anticipated in these forward-looking statements due to a variety of factors. For more information on the assumptions and disclaimers
with respect to earnings and other forecasts, please refer to “1. Qualitative Information on Quarterly Consolidated Financial Results(3) Overview of forward-looking statements including consolidated financial forecast” on page 3 of the Attached Materials.

2

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Results ································································ P. 2
(1) Overview of quarterly consolidated operating results ··············································································· P. 2
(2) Overview of quarterly consolidated financial position ·············································································· P. 3
(3) Overview of forward-looking statements including consolidated financial forecast ············································ P. 3
2. Quarterly Consolidated Financial Statements and Major Notes ······································································· P. 4(1) Quarterly consolidated balance sheets ································································································· P. 4(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income ··········· P. 6
Quarterly consolidated statements of income ······················································································ P. 6
Quarterly consolidated statements of comprehensive income ··································································· P. 7
(3) Notes to quarterly consolidated financial statements ················································································ P. 8
(Going concern assumption) ·········································································································· P. 8
(Significant changes in shareholders’ equity) ······················································································· P. 8
(Segment information) ················································································································· P. 8

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1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly consolidated operating results
During the six months ended April 30, 2021 (from November 1, 2020 to April 30, 2021) (hereinafter the “period underreview”), Japan’s economic outlook remained uncertain, reflecting labor shortage, an increase in logistics costs, and the
COVID-19 pandemic around the world.
Japan’s food retail industry has become more competitive because players in other industries such as e-commerce operatorsand drugstore chains have expanded the sale of food products, and food delivery service providers are coming to the fore.
Additionally, the environment surrounding, and what consumers require of, the food retail industry are rapidly changing. Thechange is caused by an implementation of measures to prevent the COVID-19 infections at restaurants, as well as an increasein the demand for eating at home, resulting from remote work and request for certain restaurants to temporarily close or shorten
opening hours as measures against the spread of COVID-19.
Under such circumstances, with the corporate vision of continuously strengthening “Integrated Food Production & Distribution
Operations,” the Kobe Bussan Group has enhanced competitiveness by proactively developing products. Also, we haveprovided consumers with high quality and attractive products at best prices by being attentive and responsive to their needs.
Consequently, in terms of operating results for the period under review, we reported net sales of ¥176,437 million (up 0.2%
year on year), operating profit of ¥14,387 million (up 16.1%), ordinary profit of ¥15,190 million (up 21.9%), and profit
attributable to owners of parent of ¥10,133 million (up 34.3%).
The operating results by business segment are as follows:
Note that Cook Innoventure Co., Ltd., G.communication Co., Ltd., G.taste Co., Ltd., and 11 other consolidated subsidiaries,
which comprised the Cook Innoventure Business in the previous fiscal year, were excluded from the scope of consolidation on
April 1, 2020, the deemed date of sale. Accordingly, the business segment no longer existed at the beginning of the period
under review.
Also, we reviewed the classification of business segments based on perspectives of our group’s business expansion andmanagement control system. Since the beginning of the period under review, the Restaurant & Delicatessen Business has beenrenamed from the Kobe Cook Business to incorporate the BBQ business, which was previously classified into the Other
businesses.
(i) Gyomu Super BusinessThis business segment covers Gyomu Super stores, selling at best prices not only national brand products but also private
label products that are imported directly by ourselves or produced by our group’s domestic plants. In the period underreview, Gyomu Super stores have expanded nationwide with 922 stores as a result of a net increase of 43 stores after
opening 45 stores and closing two.
The breakdown of new store openings was 31 stores in directly managed areas and 14 stores in indirectly managed areas.
We work on store openings focusing on the Kanto and Kyushu areas under direct management, and strongly encourage
franchise owners to relocate stores which have been deteriorated with many years in operation.
Our private label products, which represent Gyomu Super’s attractiveness, have been frequently featured on television,magazines, newspapers, and other media, leading to enhancement of its brand recognition and acquisition of new
customers. Also, we analyze that the increased demand for eating at home amid the COVID-19 crisis helped attract morecustomers to the stores, which contributed to stronger operating results. Consequently, net sales of the Gyomu Super
Business for the period under review stood at ¥173,596 million (up 10.2% year on year).
(ii) Restaurant & Delicatessen BusinessThis business segment covers Kobe Cook World Buffet, one of the largest buffet-style restaurant chains in Japan; Premium
Karubi, a BBQ restaurant chain where customers enjoy the best selected premium meats and in-house made desserts; andChisouna, a delicatessen shop chain focusing on health-conscious food made with minimal additives and preservatives ataffordable prices, under the philosophy of providing an authentic Japanese dining experience with fresh homemade food.
In the period under review, Kobe Cook World Buffet opened none and closed three restaurants, resulting in 14 restaurants
nationwide. Net sales decreased year on year because certain restaurants have temporarily closed or shortened opening
hours to prevent the COVID-19 infections since early January this year. Premium Karubi opened three restaurants andclosed none, resulting in six restaurants nationwide. Although the restaurants have also shortened opening hours, net sales-2-

showed a positive trend given an increase in the number of the restaurants and BBQ popularity. Chisouna opened 12 shops
and closed none, resulting in 37 shops nationwide. Net sales remained strong thanks to an increase in Gyomu Super
customers and the implementation of measures to prevent the COVID-19 infections at shops.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥1,601 million (up9.5% year on year).
(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. As we did
not open any power plants in the period under review, we currently operate 16 solar power plants collectively generating
approximately 22.0 MW and one woody biomass plant generating approximately 6.2 MW. The plant count and output
remain unchanged from the end of the previous fiscal year.
Consequently, net sales of the Eco Renewable Energy Business for the period under review stood at ¥1,234 million (up3.5% year on year).

(2) Overview of quarterly consolidated financial position(i) Assets, liabilities, and net assets(Assets)
Total assets as of April 30, 2021 decreased by ¥5,750 million from the end of the previous fiscal year to ¥142,424 million.
This was mainly due to a decrease in cash and deposits of ¥13,218 million resulting from repayment of borrowings, and anincrease in property, plant and equipment of ¥5,159 million resulting from the construction of a new office building andthe facility expansion of food production plants for private label products.
(Liabilities)
Total liabilities as of April 30, 2021 decreased by ¥13,339 million from the end of the previous fiscal year to ¥75,566
million. This was mainly due to a decrease in long-term borrowings of ¥9,469 million.
(Net assets)
Total net assets as of April 30, 2021 increased by ¥7,588 million from the end of the previous fiscal year to ¥66,857
million. This was mainly due to an increase in retained earnings of ¥6,891 million.
(ii) Cash flows
Total cash and cash equivalents as of April 30, 2021 decreased by ¥12,761 million from the end of the previous fiscal year
to ¥55,523 million.
Each cash flow and their factors are as follows:(Cash flows from operating activities)
Cash flows from operating activities for the period under review amounted to an inflow of ¥5,156 million (an inflow of¥14,043 million for the same period of the previous fiscal year). This was mainly due to an increase in profit before income
taxes and a decrease in trade payables.
(Cash flows from investing activities)
Cash flows from investing activities for the period under review amounted to an outflow of ¥7,254 million (an outflow of¥10,126 million for the same period of the previous fiscal year). This was mainly due to purchase of property, plant andequipment.
(Cash flows from financing activities)
Cash flows from financing activities for the period under review amounted to an outflow of ¥11,232 million (an inflow of¥3,495 million for the same period of the previous fiscal year). This was mainly due to repayment of long-term borrowings.
(3) Overview of forward-looking statements including consolidated financial forecast
We revised upward the financial forecast for the fiscal year ending October 31, 2021. This was because the number of store
openings of Gyomu Super, which is our core business, will significantly be higher than that in the initial plan; the productshipments to Gyomu Super franchisees remain better-than-expected; and the profit margin has improved due to the increased
ratio of private label products and the improved efficiency in logistics-related operations. For more information on therevision, please refer to the Notice of Revisions to Consolidated Financial Forecast and Cash Dividend Forecast (available inJapanese only) published on June 11, 2021.
-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets

Previous fiscal year
(As of October 31, 2020)(Millions of yen)
Current quarter(As of April 30, 2021)

AssetsCurrent assets:
Cash and deposits

69,81056,591

Notes and accounts receivable - trade17,546

19,609Merchandise and finished goods

9,065

9,376

298

338

Raw materials and supplies

1,222

1,553

Other

4,227

2,388

(14)

(15)

102,156

89,842

Buildings and structures, net

11,43013,254Land

10,353

10,249Other, net

19,26022,700Total property, plant and equipment

41,044

46,204547

869

Investments and other assets

4,426

5,507

Total non-current assets

46,01952,582

148,175

142,424

Work in process

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

Intangible assets

Total assets-4-

(Millions of yen)Previous fiscal year
(As of October 31, 2020)

Current quarter(As of April 30, 2021)

Liabilities
Current liabilities:
Accounts payable - trade22,161

17,786

Short-term borrowings

14,59815,944

Income taxes payable

4,812

4,856

Provision for bonuses

299

291

Other

5,033

3,944

Total current liabilities

46,90642,824

34,69025,220Retirement benefit liability

612

654

Guarantee deposits received

6,048

6,300

332

327

39

48

276

191

41,99932,742

88,90675,566

Non-current liabilities:
Long-term borrowings

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

64

500

Capital surplus

8,539

8,230

Retained earnings

60,243

67,134

Treasury shares(9,465)(9,413)

Total shareholders’ equity

59,38066,45113(44)

Foreign currency translation adjustment(1,634)(1,427)

Total accumulated other comprehensive income(1,621)(1,471)

Share acquisition rights

1,510

1,878

Total net assets

59,26866,857148,175

142,424

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

Total liabilities and net assets-5-(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income

Net sales

For the six months endedApril 30, 2020
(From November 1, 2019
to April 30, 2020)
176,069(Millions of yen)
For the six months endedApril 30, 2021
(From November 1, 2020
to April 30, 2021)
176,437

Cost of sales

148,979

154,865

Gross profit

27,08921,572

Selling, general and administrative expenses

14,696

7,184

Operating profit

12,393

14,387

Interest income

126

60

Dividend income

00

Rental income31

31Foreign exchange gains

70

454

Gain on valuation of derivatives

41

136

Subsidy income

112

144

Other

309

147

Total non-operating income

692

975

Interest expenses

181

92

Rental costs

14

14

Provision of allowance for doubtful accounts

273

15

Other

149

49

Total non-operating expenses

619

171

12,465

15,190Gain on sale of non-current assets

141Gain on reversal of share acquisition rights

2–

Total extraordinary income

16

1

18

22

Non-operating income:Non-operating expenses:

Ordinary profit
Extraordinary income:Extraordinary losses:
Loss on retirement of non-current assets
Loss on sale of non-current assets

–

110

1,380

–

Loss on store closings

12–

Provision for loss on store closings

112

–

1,524

132

Profit before income taxes

10,95815,060

Income taxes - current

4,316

4,648

Income taxes - deferred

(56)

277

Total income taxes

4,260

4,926

Profit6,697

10,133

Profit (loss) attributable to non-controlling interests

(849)

–

Profit attributable to owners of parent

7,546

10,133

Impairment losses

Total extraordinary losses-6-Quarterly consolidated statements of comprehensive income

Profit

For the six months endedApril 30, 2020
(From November 1, 2019
to April 30, 2020)
6,697(Millions of yen)
For the six months endedApril 30, 2021
(From November 1, 2020
to April 30, 2021)
10,133

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

(2)

(57)

Foreign currency translation adjustment

191

207

Total other comprehensive income

189

149

6,887

10,283

Owners of parent

7,737

10,283

Non-controlling interests

(850)

–

Comprehensive income
Comprehensive income attributable to:-7-(3) Notes to quarterly consolidated financial statements(Going concern assumption)
Not applicable.
(Significant changes in shareholders’ equity)
Not applicable.
(Segment information)
I. For the six months ended April 30, 2020 (from November 1, 2019 to April 30, 2020)
1. Information on amounts of net sales and profit (loss) by reportable segment(Millions of yen)
Reportable Segment
Gyomu
Super
Business
Net sales
Sales toexternalcustomers

Restaurant
Eco
Cook
&
Renewable
Innoventure
Delicatessen
EnergyBusiness
Business
Business

Total

Other
*1

Total

Adjustment Consolidated*2*3

157,586

1,462

15,772

1,192

176,01355

176,069–

176,069

Intersegment
sales ortransfers

1,082

77

–

–

1,159

–

1,159

(1,159)–

Total

158,668

1,539

15,772

1,192

177,17355

177,228(1,159)176,069

Segment
13,30117379
183
13,882(55) 13,827(1,433)
12,393
profit (loss)*1 The Other businesses are those not classified into any reportable segment, including the rental facilities business and 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 ¥(1,433) million is corporate expenses unallocated to each reportablesegment. The expenses are general and administrative expenses unattributable to any reportable segments.
*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)
The recorded amount of impairment losses of non-current assets was ¥1,380 million yen for the six months ended April
30, 2020, of which ¥0 million was incurred by the Gyomu Super Business segment and ¥1,379 million by the Cook
Innoventure Business segment.

-8-II. For the six months ended April 30, 2021 (from November 1, 2020 to April 30, 2021)
1. Information on amounts of net sales and profit (loss) by reportable segment(Millions of yen)
Reportable Segment
Restaurant&
Delicatessen
Business

Eco
Renewable
EnergyBusiness

Total

Other
*1

Total

173,596

1,601

1,234

176,433

4

176,437–

176,437

753

74

–

827

–

827

(827)

–

174,350

1,676

1,234

177,2614

177,265(827)

176,437

Gyomu
Super
Business
Net sales
Sales toexternalcustomers
Intersegment
sales ortransfers
Total

Adjustment Consolidated*2*3

Segment
16,052(156)
226
16,121(36)
16,085(1,697)
14,387
profit (loss)*1 The Other businesses are those not classified into any reportable segment, including the rental facilities business and 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 ¥(1,697) million is corporate expenses unallocated to each reportablesegment. The expenses are general and administrative expenses unattributable to any reportable segments.
*3 Segment profit (loss) is adjusted with operating income reported on quarterly consolidated statements of income.
2. Changes in reportable segments
Cook Innoventure Co., Ltd., G.communication Co., Ltd., G.taste Co., Ltd., and 11 other consolidated subsidiaries, which
comprised the Cook Innoventure Business in the previous fiscal year, were excluded from the scope of consolidation on
April 1, 2020, the deemed date of sale. Accordingly, the business segment no longer existed at the beginning of the period
under review. Also, we reviewed the classification of business segments based on perspectives of our group’s businessexpansion and management control system. Since the beginning of the period under review, the Restaurant &Delicatessen Business has been renamed from the Kobe Cook Business to incorporate the BBQ business, which waspreviously classified into the Other businesses.
The segment information for the six months ended April 30, 2020 was prepared according to the reportable segments
applied to the six months ended April 30, 2021.
3. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment.
(Significant impairment losses related to non-current assets)
Not applicable.

-9-