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, 2022
(Under Japanese GAAP)
June 13, 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 file Quarterly Securities Report:
June 14, 2022
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, 2022 (from November 1, 2021 to April 30, 2022)(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, 2022
198,161
12.3
14,733
2.4
16,3807.8
11,037
8.9
April 30, 2021
176,437
0.2
14,38716.1
15,19021.9
10,13334.3
Note: Comprehensive income
For the six months ended April 30, 2022: ¥11,331 million [10.2%]
For the six months ended April 30, 2021: ¥10,283 million [49.3%]
Basic earnings
per share
Six months endedApril 30, 2022
April 30, 2021

Yen
50.57
46.89

Diluted earnings
per share
Yen
49.74
45.83

(2) Consolidated financial position
Total assets
Net assets
As ofMillions of yen
Millions of yen
April 30, 2022
171,923
85,907
October 31, 2021
156,737
78,218Reference: Equity (Shareholders’ equity + Valuation and translation adjustments)
As of April 30, 2022: ¥83,872 million
As of October 31, 2021: ¥76,411 million
2.

Equity ratio
%
48.8
48.8

Net assets per shareYen
383.86350.49Cash Dividends

Annual dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Fiscal year
Yen
Yen
Yen
Ended October 31, 2021
0.00
–
20.00
Ending October 31, 2022
0.00
Ending October 31, 2022 (Forecast)–
21.00
Note: Revisions to cash dividend forecast published most recently: NoneFirst
quarter-end
Yen
–
–

Total
Yen
20.00
21.00

Consolidated financial forecast for the fiscal year ending October 31, 2022 (from November 1, 2021 to October 31, 2022)(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
380,000
5.0
28,800
5.4
29,2000.4
19,8001.1
91.44
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): 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: 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, 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 April 30, 2022:
55,102,520 shares
As of October 31, 2021:
55,587,320 shares(iii) Average number of shares of common shares outstanding during the period
Six months ended April 30, 2022:
218,257,206 shares
Six months ended April 30, 2021:
216,099,989 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 six months ended April 30, 2021 and 168,400 shares for the six months
ended April 30, 2022) was included in the number of shares of treasury shares as of October 31, 2021 and April 30,
2022, and the number of shares of treasury shares to be deducted from the calculation of the average number of sharesof common shares outstanding for the six months ended April 30, 2021 and the six months ended April 30, 2022.

* 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. 8

-1-

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Overview of quarterly consolidated operating results
During the six months ended April 30, 2022 (from November 1, 2021 to April 30, 2022) (hereinafter the “period underreview”), Japan was on the way to resuming its economic activities thanks to expanded vaccination and testing as well as
improved medical delivery system in spite of the rebound of COVID-19. Overseas countries are also restarting their economic
activities in a phased manner by easing movement restrictions. Such developments have increased demand for various items,
resulting in a rise in prices around the world. In addition, the environment surrounding Japan has remained precarious due tothe surge in prices of energy against the backdrop of the Russian invasion of Ukraine and the rapidly weakening yen triggeredby the interest rate increase in the United States.
As such, Japan’s food retail industry is hard-pressed to deal with a further increase in costs resulting from the global hike inprices, the weakened yen, and a rise in personnel and utility expenses.
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 proactive product development. 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 ¥198,161 million (up 12.3%
year on year), operating profit of ¥14,733 million (up 2.4%), ordinary profit of ¥16,380 million (up 7.8%), and profit
attributable to owners of parent of ¥11,037 million (up 8.9%).
The operating results by business segment are as follows:(i) Gyomu Super BusinessThis business segment covers Gyomu Super stores, selling at best prices not only national label 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 969 stores as a result of a net increase of 19 stores after
opening 34 stores and closing 15.
The breakdown of new store openings was 26 stores in directly managed areas and eight 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.
In terms of operating results, despite the rise in purchase costs due to price increases, we have continued expanding
business performance, driven by successful pricing strategy and significantly increased 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 ¥193,532 million (up 11.5% 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 served a-la-carte buffet style BBQ restaurant chain where customers enjoy the best selected premium meats andin-house made desserts; and Chisouna, a delicatessen shop chain focusing on health-conscious food made with minimal
additives and preservatives at affordable prices, based on the philosophy of providing an authentic Japanese dining
experience with fresh homemade food.
In the period under review, Kobe Cook World Buffet opened one and closed seven restaurants, resulting in nine restaurants
nationwide. The certain restaurants temporarily closed or shortened opening hours to prevent the COVID-19 infections.
Premium Karubi opened three restaurants and closed none, resulting in 13 restaurants nationwide. Given an increase in thenumber of the restaurants and BBQ popularity, Premium Karubi has only a limited effect on net sales from COVID-19.
Chisouna opened 16 shops and closed none, resulting in 65 shops nationwide. It remained positive due to an improved
brand recognition through increased exposure to media as well as strong shop openings.
Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥3,238 million (up102.2% year on year).
(iii) Eco Renewable Energy BusinessThis business segment covers renewable energies generated by our own solar and woody biomass power plants. We did-2-not open any power plants during the period under review, but opened one solar power plant in Misaki-cho, Sennan-gun,Osaka in May 2021, resulting in a year-on-year increase by one solar power plant. Currently, we operate 17 solar power
plants collectively generating approximately 32.1 MW and one woody biomass power plant generating approximately 6.2
MW.
Consequently, net sales of the Eco Renewable Energy Business for the period under review stood at ¥1,388 million (up12.4% year on year).

(2) Overview of quarterly consolidated financial position
Assets, liabilities, and net assets(Assets)
Total assets as of April 30, 2022 increased by ¥15,186 million from the end of the previous fiscal year to ¥171,923 million.
This was mainly due to an increase in current assets of ¥13,635 million, which was mostly attributable to an increase in cash
and deposits of ¥10,086 million resulting from new borrowings for the facility enhancement of our group’s domestic plants.
(Liabilities)
Total liabilities as of April 30, 2022 increased by ¥7,497 million from the end of the previous fiscal year to ¥86,015 million.
This was mainly due to an increase in long-term borrowings of ¥10,613 million resulting from new borrowings for a reason
already mentioned above.
(Net assets)
Total net assets as of April 30, 2022 increased by ¥7,689 million from the end of the previous fiscal year to ¥85,907 million.
This was mainly due to an increase in retained earnings of ¥6,674 million.

(3) Overview of forward-looking statements including consolidated financial forecast
It remains unchanged from our financial forecast published on December 14, 2021.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Millions of yen)
Current quarter(As of April 30, 2022)

Previous fiscal year
(As of October 31, 2021)
AssetsCurrent assets:
Cash and deposits

57,79967,886

Notes and accounts receivable - trade

19,837

21,637

Securities

–

2,000

12,817

12,861353

380

Raw materials and supplies

1,493

1,821

Other

3,576

2,912

Allowance for doubtful accounts

(15)

(2)

95,862

109,498

Buildings and structures, net

15,534

15,952

Land

13,35013,264

Other, net

25,60727,311

Total property, plant and equipment

54,49356,528884

1,028

Merchandise and finished goods
Work in process

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

Intangible assets
Investments and other assets

5,496

4,868

Total non-current assets

60,87462,425

156,737

171,923

Total assets-4-

(Millions of yen)Previous fiscal year
(As of October 31, 2021)

Current quarter(As of April 30, 2022)

Liabilities
Current liabilities:
Accounts payable - trade25,15827,856

Short-term borrowings

15,155

10,072

Income taxes payable

5,194

5,531

Provision for bonuses

354

402

Other

5,184

3,716

Total current liabilities

51,04747,58019,53430,148Retirement benefit liability

713

739

Guarantee deposits received

6,512

6,751

465

492

58

65

186

237

27,471

38,43578,51886,015

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

500

500

Capital surplus

9,581

9,992

Retained earnings

76,592

83,266

Treasury shares(9,135)(9,053)

Total shareholders’ equity

77,53984,70662(54)

Foreign currency translation adjustment(1,190)(779)

Total accumulated other comprehensive income(1,127)(833)

Share acquisition rights

1,807

2,035

Total net assets

78,21885,907

156,737

171,923

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, 2021
(From November 1, 2020
to April 30, 2021)
176,437(Millions of yen)
For the six months endedApril 30, 2022
(From November 1, 2021
to April 30, 2022)
198,161

Cost of sales

154,865

174,438

Gross profit

21,572

23,722

Selling, general and administrative expenses

7,184

8,989

Operating profit

14,387

14,733

Interest income

6042Dividend income

00

Rental income

31

125

Foreign exchange gain

454

987

Gain on valuation of derivatives

136

231

Subsidy income

144

182

Other

147

186

Total non-operating income

975

1,755

Interest expenses

92

45

Rental costs

14

15

Fuel sale costs

28

38

Provision of allowance for doubtful accounts

15

–

Other

20

9

Non-operating income:Non-operating expenses:

Total non-operating expenses

171

108

15,19016,380Gain on sale of non-current assets

1

6Gain on reversal of share acquisition rights–

7

Total extraordinary income

1

13

Loss on retirement of non-current assets

22

18

Loss on sale of investment securities–

50

Loss on sale of non-current assets

110–

Total extraordinary losses

132

68

Profit before income taxes

15,06016,325

Income taxes - current

4,648

5,475

Income taxes - deferred

277

(187)

Total income taxes

4,926

5,287

Profit10,133

11,037

Profit attributable to owners of parent

10,133

11,037

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

Profit

For the six months endedApril 30, 2021
(From November 1, 2020
to April 30, 2021)
10,133(Millions of yen)
For the six months endedApril 30, 2022
(From November 1, 2021
to April 30, 2022)
11,037

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

(57)

(116)

Foreign currency translation adjustment

207

410

Total other comprehensive income

149

293

Comprehensive income

10,283

11,331

Comprehensive income attributable to owners of parent

10,283

11,331-7-

(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 Revenue Recognition, etc.)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)
and the Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, March
26, 2021) since the beginning of the first quarter of this fiscal year. In accordance with theses accounting policies, whencontrol 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 the cumulative effect of applying the new accounting policy retrospectively to or from retained earnings at
the beginning of the first quarter of this 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.
This change in accounting polices has a minimal effect on the quarterly consolidated financial statements.
Moreover, in accordance with the transitional treatment set forth in paragraph 28-15 of the Accounting Standard for
Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), disaggregated revenue from contracts withcustomers has not been presented for the six months ended April 30, 2021.
(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 first quarter of thisfiscal year. In accordance with the transitional treatment set forth in paragraph 19 of the Fair Value AccountingStandards 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 andothers prospectively. There is no effect on the quarterly consolidated financial statements by applying the standard.
(Segment information)
I. 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)
Gyomu
Super
Business
Net sales
Sales toexternal customers
Intersegment
sales or transfers
Total
Segment
profit (loss)
*1
*2

*3

Reportable Segment
Restaurant
Eco&
Renewable
Delicatessen
EnergyBusiness
Business

Total

Other
*1

Total

Adjustment Consolidated*2*3

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

16,052(156)

226

16,121(36)

16,085(1,697)

14,387The Other businesses are those not classified into any reportable segment, including the rental facilities business andthe tourism business.
Details of adjustment are as follows:(1) The amount of adjustment for net sales represents eliminations of intersegment transactions.
(2) The amount of adjustment for segment profit (loss) of ¥(1,697) million is corporate expenses unallocated to eachreportable segment. The expenses are general and administrative expenses unattributable to any reportablesegments.
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.

-8-II. 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) 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

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

16,620(89)

244

16,774(26)

16,748(2,014)

14,733

Segment
profit (loss)
*1
*2

*3
*4

The Other businesses are those not classified into any reportable segment, including the tourism business.
Details of adjustment are as follows:(1) The amount of adjustment for net sales represents eliminations of intersegment transactions.
(2) The amount of adjustment for segment profit (loss) of ¥(2,014) million is corporate expenses unallocated to eachreportable segment. The expenses are general and administrative expenses unattributable to any reportablesegments.
Segment profit (loss) is adjusted with operating income reported on quarterly consolidated statements of income.
The revenue recognition method is as described in “Changes in accounting policies” in the Notes.

2. Matters related to changes in segment reportingAs described in “Changes in accounting policies,” the method of accounting for revenue recognition was changed byapplying the Revenue Recognition Standard, etc. from the beginning of the first quarter of this fiscal year. Accordingly,
the method of measuring segment profit or loss was changed.
This change has a minimal effect on “Sales to external customers” and “Segment profit (loss)” of each reportable segment
for the six months ended April 30, 2022.
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-