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June 13, 2022 Kobe Bussan Co., Ltd. Prime Market of Tokyo Stock Exchange Company name: Listing: Securities code: 3038 URL: https://www.kobebussan.co.jp/english/ Hirokazu Numata, President and Representative Director Representative: 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: Holding of quarterly financial results briefing: Yes (https://www.kobebussan.co.jp/english/ir/news.php) Yes (for institutional investors and securities analysts) (Amounts less than one million yen have been omitted.) Consolidated financial results for the six months ended April 30, 2022 (from November 1, 2021 to April 30, 2022) 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%] ¥83,872 million As of April 30, 2022: As of October 31, 2021:¥76,411 million Consolidated financial forecast for the fiscal year ending October 31, 2022 (from November 1, 2021 to October 31, 2022)
3. [Notes] (1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries resulting in the change in scope of 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 None (ii)  Changes in accounting policies due to reasons other than above (i): (iii) Changes in accounting estimates: None (iv)  Restatements of prior period financial statements: None Please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to quarterly consolidated Note: 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 t the end of the period (including treasury shares) 273,600,000 shares As of April 30, 2022: 273,600,000 shares As of October 31, 2021: (ii)  Number of shares of treasury shares at t he end of the period 55,102,520 shares As of April 30, 2022: As of October 31, 2021: 55,587,320 shares (111) 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 shares of 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.
Contents of Attached Materials

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 under review"), 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 to the surge in prices of energy 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 such, Japan's food retail industry is hard-pressed to deal with a further increase in costs resulting from the global hike in prices, the weakened yen, and a rise in personnel and utility expenses. Under such circumstances, in line with the Group's goal of f further strengthening "Integrated Food Production & Distribution Operations," the Kobe Bussan Group has enhanced its competitiveness through 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￥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 Business
This 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 under review, 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 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 in-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 the number 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 (up 102.2% year on year). (iii) Eco Renewable Energy Business This business segment covers renewable energies generated by our own solar and woody biomass power plants. We did 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 (up 12.4% 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.
2.  Quarterly Consolidated Financial Statements and Major Notes

(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, 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 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 with customers 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 this 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 the quarterly consolidated financial statements by applying the standard.
(Segment information)

For the six months ended April 30, 2021 (from November 1, 2020 to April 30, 2021) I. 1. Information on amounts of net sales and profit (loss) by reportable segment 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 reportable segment. The expenses are general and administrative expenses unattributable to any reportable segments. Segment profit (loss) is adjusted with operating income reported on the quarterly consolidated statements of income. *3 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.
II. For the six months ended April 30, 2022 (from November 1, 2021 to April 30, 2022) *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 each reportable segment. The expenses are general and administrative expenses unattributable to any reportable segments. Segment profit (loss) is adjusted with operating income reported on quarterly consolidated statements of income. *3 *4 The revenue recognition method is as described in "Changes in accounting policies" in the Notes. 2. Matters related to changes in segment reporting As described in "Changes in accounting policies," the method of accounting for revenue recognition was changed by applying 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.