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Supplementary Material for FY2024 Financial Results December 13, 2024 Securities code: 3038
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◤◤ 目 次 ⚫ Consolidated Financial Highlights 2 ⚫ Gyomu Super Business 5 ⚫ Outline of Gyomu Super Franchise Agreement 6 ⚫ Changes in Total Number of Gyomu Super Stores 7 ⚫ Year-on-year Changes in Product Shipments to Gyomu Super Stores 8 ⚫ Kobe Bussan’s Strengths: “Unique Products with Competitive Advantages” 9 ⚫ Restaurant & Delicatessen Business 10 ⚫ Eco Renewable Energy Business 14 ⚫ Action to Implement Management that is Conscious of Cost of Capital and Stock Price 16 ⚫ Shareholder Returns 17 ⚫ Consolidated Financial Forecast 18 ⚫ Medium-term Management Plan 20 ⚫ Status of the Exercise of Stock Options 23 ⚫ Status of Our Sustainability Initiatives 24 1 ◤◤ Contents
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2 [Financial Overview] ⚫ Net sales Net sales increased by ¥46,337 million (10.0%) year on year with robust new store openings and continued strong product shipments to existing stores. ⚫ Gross profit Gross profit increased by ¥5,693 million (10.8%) year on year due to the continued strong net sales despite the impact of the exchange rate fluctuations. ⚫ SG&A expenses SG&A expenses increased by ¥2,060 million (9.4%) year on year due to increases in freight costs along with increased net sales of the Gyomu Super Business and personnel and rent expenses resulting from the opening of directly operated restaurants. On the other hand, the SG&A ratio decreased by 0.1 percentage point due to the sales growth. ⚫ Operating profit As a result of the factors above, operating profit increased by ¥3,633 million (11.8%) year on year. ⚫ Ordinary profit Ordinary profit increased by ¥1,605 million (5.4%) year on year due to improvement in the mark-to-market valuation of forward exchange contracts entered into to hedge risks of exchange rate fluctuations. ⚫ Profit attributable to owners of parent As a result of the factors above, profit attributable to owners of parent increased by ¥883 million (4.3%) year on year. (Millions of yen) FY23 FY24 Percentage change FY23 Aug.-Oct. FY24 Aug.-Oct. Percentage change FY24 forecast Achievement rate to full-year forecast Net sales 461,546 507,883 +10.0% 122,779 130,600 +6.4% 498,000 102.0% Gross profit (Gross margin) 52,719 (11.4%) 58,413 (11.5%) +10.8% 13,610 14,319 +5.2% － － SG&A expenses (SG&A ratio) 22,002 (4.8%) 24,062 (4.7%) +9.4% 6,171 6,609 +7.1% － － Operating profit (Operating margin) 30,717 (6.7%) 34,350 (6.8%) +11.8% 7,438 7,710 +3.7% 31,000 110.8% Ordinary profit (Ordinary margin) 29,970 (6.5%) 31,576 (6.2%) +5.4% 7,276 9,595 +31.9% 33,000 95.7% Profit attributable to owners of parent (Net margin) 20,560 (4.5%) 21,443 (4.2%) +4.3% 4,969 6,595 +32.7% 21,500 99.7% ◤◤ Consolidated Financial Highlights
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Note: Fiscal year (FY) represents the one-year period from November 1 to October 31 of the following year. 3 ◤◤ Consolidated Financial Highlights 23,851 27,311 27,820 30,717 34,350 7.0% 7.5% 6.8% 6.7% 6.8% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 15,000 20,000 25,000 30,000 35,000 40,000 FY2020 FY2021 FY2022 FY2023 FY2024 Operating Profit Operating Profit Operating margin <Millions of yen> 21,347 15,812 18,776 22,002 24,062 6.3% 4.4% 4.6% 4.8% 4.7% 0.0% 2.0% 4.0% 6.0% 8.0% 0 10,000 20,000 30,000 40,000 FY2020 FY2021 FY2022 FY2023 FY2024 SG&A Expenses SG&A Expenses SG&A ratio <Millions of yen> 340,870 362,064 406,813 461,546 507,883 200,000 300,000 400,000 500,000 600,000 FY2020 FY2021 FY2022 FY2023 FY2024 Net Sales <Millions of yen> 45,198 43,123 46,596 52,719 58,413 13.3% 11.9% 11.5% 11.4% 11.5% 0.0% 4.0% 8.0% 12.0% 16.0% 20,000 30,000 40,000 50,000 60,000 FY2020 FY2021 FY2022 FY2023 FY2024 Gross Profit Gross Profit Gross margin <Millions of yen>
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4 ◤◤ Consolidated Financial Highlights 148,175 156,737 180,275 211,891 233,392 0 50,000 100,000 150,000 200,000 250,000 FY2020 FY2021 FY2022 FY2023 FY2024 Total Assets <Millions of yen> 59,268 78,218 97,220 114,451 132,773 39.0% 48.8% 52.7% 52.7% 55.4% 0.0% 20.0% 40.0% 60.0% 0 50,000 100,000 150,000 FY2020 FY2021 FY2022 FY2023 FY2024 Net Assets Net assets Equity ratio <Millions of yen> 15,047 19,592 20,832 20,560 21,443 4.4% 5.4% 5.1% 4.5% 4.2% 0.0% 2.0% 4.0% 6.0% 8.0% 5,000 10,000 15,000 20,000 25,000 FY2020 FY2021 FY2022 FY2023 FY2024 Profit Attributable to Owners of Parent Profit attributable to owners of parent Net margin <Millions of yen> 23,646 29,087 32,125 29,970 31,576 6.9% 8.0% 7.9% 6.5% 6.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 10,000 15,000 20,000 25,000 30,000 35,000 FY2020 FY2021 FY2022 FY2023 FY2024 Ordinary Profit Ordinary Profit Ordinary margin <Millions of yen>
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◤◤ Gyomu Super Business Gyomu Super is our core business. Operating results of this business segment reflect wholesale sales to, and royalty fee from, Gyomu Super franchisees earned by Kobe Bussan, a franchisor (franchising headquarters), as well as earnings of Kobe Bussan Group’s plants. Inside the Gyomu Super Yokohama Izumi Store ◼ Gyomu Super stores have expanded nationwide with 1,084 stores as of October 31, 2024. ◼ Net sales for FY2024 Q4 exceeded the planned amount due to strong performance of the existing stores. ◼ We have achieved 100 stores in Kyushu. Note: Due to a change in the reportable segment structure in FY2021, the figures for FY2020 are reclassified retrospectively to reflect the change. 5 320,110 355,466 396,296 446,908 489,102 100,000 200,000 300,000 400,000 500,000 FY2020 FY2021 FY2022 FY2023 FY2024 Net Sales<Millions of yen> 26,449 31,035 31,612 34,139 37,350 8.3% 8.7% 8.0% 7.6% 7.6% 5.0% 6.0% 7.0% 8.0% 9.0% 0 10,000 20,000 30,000 40,000 FY2020 FY2021 FY2022 FY2023 FY2024 Operating Profit Operating profit Operating margin <Millions of yen>
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千葉県 33店舗 神奈川県 55店舗 東京都 64店舗 関西直轄 228店舗 関東直轄 191店舗 地方エリア 315店舗 We operate Gyomu Super stores under a franchise system except 4 stores of our own. Our franchise agreement has 2 types as follows: • General franchise contract, which allows a franchisee to open 1 store in our directly managed areas (*1). • Area franchise contract, which allows a franchisee to open multiple stores in a defined prefecture in our indirectly managed areas (*2). Also, we own 4 stores in Hyogo, Osaka and Kanagawa prefectures under direct operations. *1 Directly managed areas • Hokkaido area: Hokkaido prefecture • Kanto area: Tokyo, Chiba, Kanagawa, and Saitama prefectures • Kansai area: Osaka, Kyoto, Hyogo (excl. Awaji Island), Nara, Wakayama, and Shiga prefectures • Kyushu area: Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, and Kagoshima prefectures *2 Indirectly managed areas • Other areas: Prefectures other than those listed above P&L account Monthly amount Composition Net sales ¥43,500,000 100.0％ Gross profit ¥7,395,000 17.0％ SG&A expenses ¥6,499,000 14.9％ (Rent expenses) ¥1,300,000 3.0％ (Personnel expenses) ¥2,393,000 5.5％ Operating profit ¥896,000 2.1％ Outline of Franchise Contract & Requirements (as of October 31, 2024) Simulated Earnings (Standard Store Franchisees) Directly managed areas Indirectly managed areas Number of franchisees 91 14 Type of franchise agreement Single-unit franchise (A general franchisee can open 1 store per contract.) Multi-unit franchise (An area franchisee has an exclusive right to open multiple stores in a prefecture defined under the contract.) Initial franchise fee (excl. consumption taxes) ¥2,000,000 Population in the prefecture x ¥2 Franchise deposit ¥10,000,000 Population in the prefecture x ¥5 Royalty fee 1% of total purchase of goods 1% of purchase of defined goods Facility expenses It costs between ¥32 million and ¥38 million to construct racks for shelf-stable foods and refrigeration equipment (the above construction cost is a rough estimate and varies depending on properties). Equipment, construction work, POS registers, and other funds for start-up are required separately. Distribution expenses Principally paid by franchise headquarters Negotiable * By purchasing items such as fresh food separately, many of franchisees operate more efficiently than the above simulation. 6 ◤◤ Outline of Gyomu Super Franchise Agreement
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950 1,007 1,048 1,084 1,118 800 900 1,000 1,100 1,200 2021年 10月 2022年 10月 2023年 10月 2024年 10月 2025年 10月目標 Total Number of Gyomu Supper Stores(Stores) Other 388 Kansai 274 Hokkaido 31 (-2) Kyushu 100 (+13) (Incl. 6 stores in Kagoshima) Tokyo 86 Saitama 67 Chiba 61 Kanagawa 77 Kanto 291 Other 380 (Incl. 6 stores in Kagoshima) Kansai 266 Hokkaido 33 Kyushu 87 Tokyo 83 Saitama 65 Chiba 57 Kanagawa 77 Kanto 282 Number of Stores by Area 1,048 stores as of October 31, 2023Gyomu Super opened 56 stores and closed 20, resulting in a net increase of 36 stores during FY2024, and opened 15 stores and closed 2 store during FY2024 Q4 alone. The above result exceeded the full-year target (a net increase of 35 stores) by one. Directly managed areas: Hokkaido, Kanto, Kansai, and Kyushu Indirectly managed areas: Other Note: Effective April 1, 2024, the area category of Kagoshima prefecture was changed from indirectly managed areas to directly managed areas. FY2021 FY2022 FY2024 FY2025 Target 7 FY2023 （+8） （+8） （+9） （+2） （+3） （±0） （+4） 1,084 stores as of October 31, 2024 (+36) ◤◤ Changes in Total Number of Gyomu Super Stores
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118.6 110.3 111.2 108.6 113.2 110.5 110.3 113.6 110.0 112.7 108.3 112.3 111.6 112.5 109.3 112.0 108.3 111.8 116.6 110.3 115.3 117.3 113.4 115.3 113.1 110.5 114.4 112.8 111.1 109.9 110.0 106.8 110.2 109.2 104.4 105.7 104.0 107.0 110.0 113.0 116.0 119.0 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 [All Stores Nationwide] Monthly Trends for Product Shipments 2022年 2023年 2024年 <YoY Change(%)> Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 110.2 102.4 103.1 101.1 105.3 102.9 103.1 105.5 103.4 104.9 101.7 105.1 105.6 107.2 103.9 106.8 103.2 106.8 110.5 105.6 110.3 111.9 109.0 111.1 108.7 106.9 110.6 107.9 107.5 104.9 105.4 103.1 105.0 105.4 101.1 102.2 100.0 103.0 106.0 109.0 112.0 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 [Existing Stores in Directly Managed Areas] Monthly Trends for Product Shipments 2022年 2023年 2024年 <YoY Change(%)> ◼ Product shipments exceeded the previous year's level as customers became more thrifty and favored our relatively low prices compared to competitors. [Year-on-year % Changes in Product Shipments to Gyomu Super Stores] Note: “Nationwide” represents the product shipments to the stores in both directly and indirectly managed areas. ◤◤ Year-on-year Changes in Product Shipments to Gyomu Super Stores FY2024FY2023FY2022 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. FY2024FY2023FY2022 8 Products shipments to existing stores in directly managed areas for each quarter alone Q1: 108.6% Q2: 106.7% Q3: 104.5% Q4: 102.9% FY2024 Nov. Dec. Jan. Feb. Mar. Apr. H1 May June July Aug. Sept. Oct. H2 Full Directly Managed areas Existing stores 108.7 106.9 110.6 107.9 107.5 104.9 107.7 105.4 103.1 105.0 105.4 101.1 102.2 103.7 105.6 All Stores 112.7 110.2 113.8 111.7 111.0 109.1 111.3 109.8 107.4 109.7 109.5 105.1 105.7 107.8 109.5 Nationwide All Stores 113.1 110.5 114.4 112.8 111.1 109.9 111.7 110.0 106.8 110.2 109.2 104.4 105.7 107.7 109.6
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34.29% 34.74% 34.75% 34.74% 34.47% 34.82% 34.68% 34.57% 34.23% 34.33% 34.51% 34.51% 34.00% 34.25% 34.50% 34.75% 35.00% 1Q 2Q 3Q 4Q Ratio of Private Label Products 2022年10月期 2023年10月期 2024年10月期 Note: All prices include tax. Products and prices are different depending on stores and seasons. 9 Enhancing Original Products New Plant Started Operations Chocolate Bavarian cream ¥332 (1kg) Medium-spicy, large- size curry for grown-ups ¥343 (220g x 4) Tenderly braised pork ¥505 (550g) ■Products produced by the new plant of Miyagi Seifun■Private label products Milk daifuku ¥321 (750g) ◼ A new head factory of Miyagi Seifun in Watari-gun, Miyagi started its operations in April 2024. ◼ With the factory added to the Group, we have come to own 26 domestic food plants. Photo: Exterior view of the new plant Produced by our plants: 10.8% Imported: 23.7% Q1 Q2 Q3 Q4 FY2022 FY2023 FY2024 Organic extra virgin olive oil ¥1,077/¥1,274 (500ml) The new plant increased Miyagi Seifun’s production capacity by approx. 2.5 times. Brazilian chicken thigh ¥1,056 (2kg) ◤◤ Kobe Bussan’s Strengths: “Unique Products with Competitive Advantages”
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The Restaurant & Delicatessen Business covers restaurants and delicatessen shops that we operate directly or as a franchisor (franchising headquarters). This business segment includes Kobe Cook World Buffet, a buffet-style restaurant chain; Premium Karubi, a served a-la-carte buffet style BBQ restaurant chain; and Chisouna, a delicatessen shop chain. Kobe Cook World Buffet Premium Karubi Chisouna ◼ All the three brands performed well. ◼ The restaurant business successfully attracted customers due to further exposure on TV programs. ◼ Chisouna steadily opened new shops. As a result of the above, the segment performance improved significantly. Note: Due to a change in the reportable segment structure in FY2021, the figures for FY2020 are reclassified retrospectively to reflect the change. 10 ◤◤ Restaurant & Delicatessen Business 2,508 3,889 7,323 10,950 14,149 0 4,000 8,000 12,000 16,000 FY2020 FY2021 FY2022 FY2023 FY2024 Net Sales<Millions of yen> -68 -455 -119 512 1,038 -2.7% -11.7% -1.6% 4.7% 7.3% -12.0% -6.0% 0.0% 6.0% 12.0% 18.0% -800 -400 0 400 800 1,200 FY2020 FY2021 FY2022 FY2023 FY2024 Operating Profit Operaing profit Operaing margin <Millions of yen>
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Kobe Cook World Buffet Kobe Cook World Buffet operates a network of 16 restaurants (as of October 31, 2024). It opened 2 restaurants and closed none, resulting in a net increase of 2 restaurants during FY2024, and opened 1 restaurant and closed none during FY2024 Q4 alone. We got increased exposure on TV programs and social media. Overview of FY2024 Business Strategy for FY2025 Seasonal special offer in September and October: Asian Fair We held the Asian Fair from September 1 to October 31. This series of Fair events has been raising its awareness from customers year by year, and the genuine Asian cuisine we served was well-received mainly by female guests. We continue to hold a fair that makes guests feel as if they were traveling the world by offering world cuisine for each fair period. As for FY2024 results, Harborland Restaurant reached record high annual sales. The sales of all other restaurants surpassed those in the previous year. We will continuously develop and roll out menus targeted at female guests and families who continue supporting us. We also expect demand from large party guests such as tourists from home and abroad to remain strong. With the aim of consistently exceeding the previous year’s sales and number of customers, we will encourage customers to visit the restaurant more frequently by offering services that satisfy customers with a dining experience unparalleled to any other restaurant chains in terms of the menu, volume of food, and price. While enhancing its own brand image with differentiation from competitors in mind, we will put more effort into the franchisee and store development for further franchise expansion. 11 ◤◤ Restaurant & Delicatessen Business
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Premium Karubi We operates a network of 22 restaurants (as of October 31, 2024). Premium Karubi opened 2 restaurants and closed none, resulting in a net increase of 2 restaurants during FY2024, and did not open or close any restaurants during FY2024 Q4 alone. We plan to start franchising the brand. Overview of FY2024 and Business Strategy for FY2025 Note: Menus may vary by restaurant and season. 12 Premium Karubi Shonandai Store Note: Menus may vary by restaurant and season. Restaurants Opened during FY2024 Shonandai 7-37-9 Shonandai, Fujisawa-shi, Kanagawa Shizuoka Magarikane 5-chome 5-5-10 Magarikane, Suruga-ku, Shizuoka- shi, Shizuoka Even after summer, the broadcast on television in June remained effective in attracting customers. For FY2024, annual sales of the existing stores exceeded those for the previous year due to further media coverage. As one of the initiatives for FY2025, we have revised menus in November to tackle soaring purchase prices of meat. As for franchising this brand, we have received many inquiries from companies interested in joining its franchisees so far. We continue to work hard to franchise this brand. ◤◤ Restaurant & Delicatessen Business
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Factors behind Strong Performance 13 Note: Products and prices may vary by shop and season. Despite continuous soaring prices of raw materials, Chisouna maintains a price advantage by working on menu changes and improvement in cooking operations efficiency. In addition, a strong synergy effect on attracting more customers to Gyomu Super stores is accelerating the willingness of franchisees to open new shops. The store policy of providing freshly prepared dishes by in- store cooking staff with large serving size keeps attracting customers. To create more attractive shop floor that satisfies customers, we continue to expand a variety of menu items while increasing the number of shops along with Gyomu Super store openings. ◤◤ Restaurant & Delicatessen Business Chisouna Chisouna operates a network of 130 shops (as of October 31, 2024). Chisouna opened 20 shops and closed 4, resulting in a net increase of 16 shops during FY2024, and opened 5 shops and closed 1 during FY2024 Q4 alone. We expanded a variety of desserts during FY2024.
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304 480 676 938 1,144 12.7% 18.0% 21.5% 25.7% 25.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0 300 600 900 1,200 1,500 FY2020 FY2021 FY2022 FY2023 FY2024 Operating Profit 営業利益 営業利益率 <Millions of yen> ◤◤ Eco Renewable Energy Business We provide eco-friendly, safe, and reliable renewable energy by operating solar and woody biomass power plants. Operating profit Operating margin Photo: Higashimatsushima Solar Power Plant with a capacity of 30 MW ◼ A new plant in Higashimatsushima-shi, Miyagi with a generation capacity of 30 MW started operations on October 18, 2023, which results in all of our planned solar power plants in operation with a total capacity of 81 MW. ◼ Going forward, this business is estimated to improve operating profit and operating margin as depreciation is expected to decrease. 14 Area A Area B Area C 2,401 2,668 3,152 3,646 4,575 1,000 2,000 3,000 4,000 5,000 FY2020 FY2021 FY2022 FY2023 FY2024 Net Sales<Millions of yen>
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[Solar Power] 4 in Hyogo 4.5 MW [Solar Power] 5 in Hokkaido 5.9 MW [Solar Power] 1 in Fukuoka 0.9 MW [Solar Power] 3 in Osaka 14.2 MW [Solar Power] 1 in Tokushima 2.1 MW [Solar Power] 1 in Ibaraki 2.4 MW [Biomass] Shiranuka - cho, Hokkaido 6.2 MW [Solar Power] 1 in Wakayama 1.6 MW [Solar Power] 1 in Shiga 0.5 MW [Solar Power] 1 in Fukushima 18.9 MW ◤◤ Eco Renewable Energy Business Plant Locations Solar Power: 19 locations 81.0 MW Biomass: 1 location 6.2 MW (as of October 31, 2024) 【 Solar Power 】 1 in Miyagi 30.0 MW 15
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◤◤ Action to Implement Management that is Conscious of Cost of Capital and Stock Price We aim to grow our businesses consistently through resource allocation focusing on investment for growth and stable shareholder return. Operating cash flow Cash and deposits Strengthening the business foundation Investment for growth Shareholder return ROE 17.8% Cash inflows Cash outflows Stable working capital Enhancing manufacturing capacity for PB products M&A Logistics center The three-year medium-term management plan starting from FY2024 has set the targets to annually make 10 billion yen or more capital investment and increase the ratio of private label products (PB ratio) to 37%. In addition, we have set a target figure of ROIC and improve capital efficiency by achieving it, thereby increasing our enterprise value over the medium to long term. WACC Recognized as approx. 4.7% Dividend Payout Ratio 23.7% ROIC 12.8% Approach to Cash Allocation FY2024-FY2026 Liabilities Repayment of borrowings 16 Dividends
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20.00 22.00 22.00 23.00 26.00 22.1% 23.1% 23.5% 23.7% 24.0% 20% 21% 22% 23% 24% 25% 5 10 15 20 25 30 2021年 2022年 2023年 2024年 2025年予想 Dividend per Share 1株当たり配当金 配当性向(連結) <Yen> ◤◤ Shareholder Returns Dividends Shareholder Benefit Program Number of shares held Shareholder incentives Continuous ownership years Less than 3 years Continuous ownership years 3 years or more 100-999 JCB Gift Card ¥1,000 JCB Gift Card ¥3,000 1,000-1,999 JCB Gift Card ¥10,000 JCB Gift Card ¥15,000 2,000 or more JCB Gift Card ¥15,000 JCB Gift Card ¥20,000 Note: Shareholders may opt to exchange the gift cards for an assortment of private label products worth the face value. Sample FY2022FY2021 FY2023 FY2024 Dividend per share Payout ratio Kobe Bussan regards returning profits to shareholders as one of key management issues. Our basic policy is to secure funds necessary for our business growth and distribute profits to shareholders according to the operating results. For FY2024, we paid the annual year-end dividends of ¥23.00 per share according to the initial forecast. For FY2025, we plan to pay the annual dividends of ¥26.00 per share. The shareholder benefit program has been introduced to express Kobe Bussan’s gratitude for the continuous support of its shar eholders and to gain the deeper understanding of customers for its businesses. We will send JCB Gift Card to shareholders who hold 100 shares or more as of October 31 of each year, according to the number of years of ownership and the number of shares held. FY2025 Target 17
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◤◤ Consolidated Financial Forecast FY2024 actual FY2025 forecast Year on year Net sales 507,883 525,000 103.4% Operating profit 34,350 37,700 109.8% Profit attributable to owners of parent 21,443 24,000 111.9% FY2025 target Action plan Target of store openings Net increase of 34 stores Open new stores focusing on the Kanto area and encourage relocating stores Strengthen property data-gathering capability driven by headquarters. Growth in existing store sales 101-2% YoY or higher Acquire more savings-oriented consumers Aim for sales growth through strengthening guidance on store operations by our supervisors Product development Rise in PB ratio Focus on private label products developed by our group plants and those imported directly by ourselves. Gyomu Super Business Guideline towards FY2025 Forecast FY2025 Forecast (Millions of yen) 18
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Appendix 19
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Seek to consistently grow our businesses with a focus on the Gyomu Super Business by enhancing private label products. ■Basic Policy and Strategy 1. Expand Restaurant & Delicatessen Business 2. Strengthen production capacity of private label items produced by our plants 3. Consistently grow Gyomu Super Business ■Key Measures 1. Open new Gyomu Super stores consistently to exceed 1,130 stores. 2. Increase product shipments to existing Gyomu Super stores by 2% or higher year on year. 3. Increase the PB ratio to 37%. 4. Invest more than 10 billion yen in our group's plants annually to strengthen domestic PB products. 5. Encourage our franchisees to introduce energy-saving refrigeration equipment and automatic ordering systems to improve efficiency in store operations. 6. Open new shops consistently in the Restaurant & Delicatessen Business and start franchising Premium Karubi. 20 ◤◤ Medium-term Management Plan: Basic Policy and Strategy toward FY2026
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◤◤ Medium-term Management Plan: Numerical Targets (Millions of yen) FY2024 actual FY2025 forecast FY2026 target Net sales 507,883 525,000 562,000 Operating profit 34,350 37,700 41,000 ROIC Maintain 10% or higher, aiming for growth every year 21
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◤◤ Medium-term Management Plan: Long-term Vision By serving a noble cause of offering more value with less price, we, as an integrated food company, are committed to improving customers’ affluent life. 1. Expand the Gyomu Super chain to reach over 1,500 stores 2. Raise the PB ratio to 40% or higher 3. Achieve a total of over 500 shops for all brands of the Restaurant & Delicatessen Business 4. Reduce the SG&A ratio by investing in distribution centers 5. Raise the consolidated operating margin to 10% or higher ■Targets for Achievement of Long-term Vision 22
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◤◤ Status of the Exercise of Stock Options Date of resolution at the annual general meeting of shareholders January 30, 2019 January 28, 2021 January 27, 2023 Category and number of grantees 7 directors of Kobe Bussan 353 employees of Kobe Bussan 19 directors of our group companies 321 employees of our group companies 7 directors of Kobe Bussan 435 employees of Kobe Bussan 19 directors of our group companies 467 employees of our group companies 6 directors of Kobe Bussan 532 employees of Kobe Bussan 23 directors of our group companies 539 employees of our group companies Total number of share acquisition rights 11,641 units 14,954 units 21,894 units Class and number of shares for the purpose of share acquisition rights Ordinary share 4,656,400 shares* Ordinary share 1,495,400 shares Ordinary share 2,189,400 shares Ratio to number of shares issued 1.7% 0.5％ 0.8% Amount to be paid in upon the exercise of share acquisition rights 974 yen* 2,940 yen 3,525 yen Exercise period From April 1, 2021 to October 31, 2027 From April 1, 2023 to October 31, 2029 From April 1, 2025 to October 31, 2031 Cumulative number of units exercised 7,257 units 2,301 units － We have granted stock options to all directors and employees of the Kobe Bussan Group to increase our enterprise value by boosting their motivation and awareness of the need to improve our business performance. * The figures in the table reflect the effect of the 2-for-1 stock splits carried out on November 1, 2020 and November 1, 2019. 23 We continue to consider introducing an employee incentive plan utilizing treasury shares.
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◤◤ Status of Our Sustainability Initiatives Measurement item Period: From November 1, 2022 to October 31, 2023 Period: From November 1, 2023 to October 31, 2024 Percentage point change Proportion of females in positions of chief or higher 20.3% 19.2% -1.1pt Proportion of females in managerial positions 11.9% 10.1% -1.8pt Rate of females taking childcare leave 107.7% 72.7% -35.0pt Rate of males taking childcare leave 66.7% 76.9% +10.2pt Rate of paid leave taken 84.7% 83.8% -0.9pt Rate of life support and refreshment leave taken 96.7% 96.6% -0.1pt • Established the Kobe Bussan Group Human Rights Policy and Supply Chain Code of Conduct. • Conducted a questionnaire survey about the status of our business partners’ efforts as part of the Human Rights Due Diligence process. • Set targets of a proportion of females newly employed and the number of males taking childcare leave, and established the action plan to achieve the targets. Measures taken in FY2024 24
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• This material contains forward-looking statements based on assumptions, estimates, and plans as of December 13, 2024. • Please note that actual results may differ significantly from these forward-looking statements due to uncertain factors arising from changes in the economic climate. • This material is not intended to solicit and encourage purchase of shares. • This material has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated material and the Japanese original, the original shall prevail. For information regarding this material, please contact: IR-Public Relations, Kobe Bussan Co., Ltd. ir@kobebussan.co.jp 25