1.

March 14, 2024 Kobe Bussan Co., Ltd. Listing: Tokyo Stock Exchange Company name: 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: March 15, 2024 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 three months ended January 31, 2024 (from November 1, 2023 to January 31, 2024) For the three months ended January 31, 2024: ¥5,732 million [333.6%] For the three months ended January 31, 2023: ¥1,322 million [(74.9) %] As of January 31, 2024: ¥112,859 million As of October 31, 2023:¥111,691 million Consolidated financial forecast for the fiscal year ending October 31, 2024 (from November 1, 2023 to October 31, 2024)
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: None 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 (4) Number of shares issued (common shares) Number of shares issued at the end of the period (including treasury shares) (i) As of January 31, 2024: As of October 31, 2023: (ii) Number of shares of treasury shares at the end of the period As of January 31, 2024: As of October 31, 2023: (111)
The number of shares of Kobe Bussan (275,200 shares) held by Custody Bank of Japan, Ltd. (the "Trust Account") as Note: trust property for a Board Benefit Trust was included in the number of shares of treasury shares at the end of the period. Also, the number of shares of Kobe Bussan held by the Trust Account was included in the number of shares of treasury shares to be deducted from the calculation of the average number of shares of common shares outstanding during the period (275,200 shares for the three months ended January 31, 2024 and 168,400 shares for the three months ended January 31, 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.
Contents of Attached Materials

1. Qualitative Information on Quarterly Consolidated Financial Results
(1) Overview of quarterly operating results During the three months ended January 31, 2024 (from November 1, 2023 to January 31, 2024) (hereinafter the "period under review"), Japan's economy was on a gradual recovery trend thanks to the lifting of restrictions on economic activities due to COVID-19. Nevertheless, the economic outlook has still remained unclear due to new geopolitical risks such as the intensified situation in the Middle East in addition to the prolonged Russia-Ukraine conflict, precarious fluctuations in foreign exchange rates, and soaring energy costs. Players in the food retail industry have continued to face severe circumstances, including a rise in a savings-oriented attitude of consumers caused by the galloping inflations and an increase in various costs. 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 been engaged in a business that is attentive and responsive to customers' needs by enhancing our strength to provide them with high-quality and attractive products at best prices. Consequently, in terms of operating results for the period under review, we reported net sales of ¥120,904 million (up 12.0% year on year), operating profit of ¥8,531million (up 34.6%), ordinary profit of ¥8,063 million (up 280.6%), and profit attributable to owners of parent of ¥5,524 million (up 309.7%). The operating results by business segment are as follows: (i) Gyomu Super Business This business segment covers Gyomu Super stores, which mainly sell products at best prices including those originally produced by our group's domestic plants or those with attractive private labels directly imported by ourselves under the concept of providing authentic food products from around the world. In the period under review, Gyomu Super stores have expanded nationwide with 1,051 stores as a result of a net increase of three stores after opening three stores and closing none. Of the three new store openings, none was in directly managed areas and all three stores in indirectly managed areas. Our franchisees remain keen to open new stores, and some of them 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 the rise in purchase costs caused by the sharp exchange rate fluctuations and price hikes resulted in a decline in personal consumption, which further encouraged a savings-oriented attitude of consumers. This very attitude led to customers visiting our stores to buy low price products of Gyomu Super. Also, the expanded performance resulted from mass and social media coverage of our products. Consequently, net sales of the Gyomu Super Business for the period under review stood at ¥116,817 million (up 11.4% 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 under the concept of offering everyday dining with a focus on foods made in-house and available at affordable prices. In the period under review, Kobe Cook World Buffet opened one restaurant and closed none, resulting in 15 restaurants nationwide. We strived to improve customer satisfaction through measures such as menu changes. Our efforts paid off with the number of customer visits almost recovering to the level before the COVID-19 pandemic backed by more tourists from abroad visiting Japan. Premium Karubi opened one restaurant and closed none, resulting in 21 restaurants nationwide. The number of customer visits increased thanks to the increased media coverage. Chisouna opened three shops and closed none, resulting in 117 shops nationwide. While more customers were attracted by a variety of foods relevant to their needs and an introduction of new dishes, such an increase in the number of shops helped boost net sales. Consequently, net sales of the Restaurant & Delicatessen Business for the period under review stood at ¥3,145 million (up 30.1% year on year).
(iii) Eco Renewable Energy Business
This business segment covers renewable energies generated by our own solar and woody biomass power plants.  Currently, we operate 19 solar power plants collectively generating approximately 81.0 MW and one woody biomass power plant generating approximately 6.2 MW, all of which are generating electricity steadily. We continue supplying safe and environmentally friendly electricity using renewable energy. Consequently, net sales of the Eco Renewable Energy Business for the period under review stood at ¥933 million (up 32.8% year on year).
(2)  Overview of quarterly financial position
(Assets) Total assets as of January 31, 2024 decreased by ¥8,412 million from the end of the previous fiscal year to ¥203,479 million. This was mainly due to a decrease in current assets of ¥7,962 million. This decrease was mostly attributable to a decrease in cash and deposits of ¥5,030 million. (Liabilities) Total liabilities as of January 31, 2024 decreased by ¥9,749 million from the end of the previous fiscal year to ¥87,689 million. This was mainly due to a decrease in current liabilities of ¥9,950 million. The decrease in current liabilities was mainly attributable to decreases in accounts payables - trade of ¥5,118 million and income taxes payable of ¥1,895 million.
(Net assets)
Total net assets as of January 31, 2024 increased by ¥1,337 million from the end of the previous fiscal year to ¥115,789 million. This was mainly due to an increase in retained earnings of ¥664 million resulting from accumulation of earnings, partially offset by payment of dividends.
(3)  Overview of forward-looking statements including consolidated financial forecast
It remains unchanged from our financial forecast published on December 15, 2023.
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. (Segment information) For the three months ended January 31, 2023 (from November 1, 2022 to January 31, 2023) I.
*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 ¥(1,008) million is corporate expenses unallocated to each reportable segment. 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. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment. Not applicable.
II. For the three months ended January 31, 2024 (from November 1, 2023 to January 31, 2024) 1. Information on amounts of net sales and profit (loss) and disaggregated revenue by reportable segment *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 ¥(1,166) 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 2. Information on impairment losses of non-current assets, goodwill, and other information by reportable segment. Not applicable.