Kansai Food Market : Supplementary information to Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022

Kansai Food Market Ltd. Supplementary information to Financial Results

for the Third Quarter of the Fiscal Year

Ending March 31, 2022

February 9, 2022

Scheme of business integration between H2O Retailing Corp. and Kansai Super Market Ltd.

Reflection to Consolidated Financial results

Forecast of FY2022

Non-consolidatedresults・Izumiya Co., Ltd.

• Hankyu Oasis Co., Ltd.
• (References) Kansai Super Market Business

Kansai Food Market Ltd. (9919) Supplementary information to Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022

Scheme of business integration between H2O Retailing Corp. and Kansai Super Market Ltd.

Due to the share exchange on December 15, 2021, Izumiya Co., Ltd. and Hankyu Oasis Co., Ltd. became wholly owned subsidiaries of Kansai Super Market Ltd. And H2O Retailing Corp. became the parent company of Kansai Super Market Ltd.

As of February 1, 2022, Kansai Super Market Ltd. changed its name to Kansai Food Market Ltd. Kansai Food Market Ltd. is an intermediate holding company with four subsidiaries, Izumiya Co., Ltd., Hankyu Oasis Co., Ltd., and new Kansai Super Market Ltd. (including its subsidiary

Kansai Super Premium Co., Ltd.), which operates Kansai Super Market business.

Reflection to Consolidated Financial results

Until 2Q, consolidated results include Kansai Super Market Ltd. and Kansai Super Premium Co., Ltd. For 3Q, consolidated results include Izumiya Co., Ltd. and Hankyu Oasis Co., Ltd. (Apr.-Dec.) due to reverse acquisition occurred by share exchange. The results of Kansai Super Market Ltd. and Kansai Super Premium Co., Ltd. are not included, only the BS as of 3Q is consolidated.

Therefore, since the scope of consolidation of 3Q is significantly different from 2Q, YoY comparisons of consolidated results are meaningless. The following pages provide financial result YoY comparisons of the results of each of Izumiya Co., Ltd., Hankyu Oasis Co., Ltd. and Kansai Super Market business. (Company name described as of the end of 3Q)

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Kansai Food Market Ltd. (9919) Supplementary information to Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022

Forecast of FY2022

As for the consolidated results for the full fiscal year, as mentioned above, consolidated results of 3Q include results of Izumiya Co., Ltd. and Hankyu Oasis Co., Ltd. Consolidated results of 4Q include results of 5 companies, the Company, Izumiya Co., Ltd., Hankyu Oasis Co., Ltd., Kansai Super Market Ltd. which changed its company name from KS Company Split Preparation Co,. Ltd. on February 1, 2022 and Kansai Super Premium Co., Ltd.

For reference, total results of each companies for the full year are shown below.

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Kansai Food Market Ltd. (9919) Supplementary information to Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022

Non-consolidated results

・Izumiya Co., Ltd.

< Overview of financial results >

			（millions of yen）
	Amount	YoY	Inc./Dec.
Gross Sales	105,548	4.1%	4,120
Gross Profit	27,660	4.2%	1,108
Gross profit/ Gross Sales	26.21%	-	0.03pt
Other operating revenue	7,862	(11.6)%	(1,027)
SG & A	33,226	2.4%	782
SG & A/ Net Sales	31.48%	-	(0.51)pt
Operating profit	2,296	(23.4)%	(701)
Operating profit/ Gross Sales	2.18%	-	(0.78)pt

* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

< Numbers of stores >
Total	76
YoY difference	2
< Opening and closing stores >
Opening	-
Closing	Kamishinjo (Osaka), Mozu (Osaka)
< Monthly Sales >
	April	May	June	July	August	September
Existing stores	(7.1)%		(0.6)%	0.7%		(0.8)%	(5.7)%	(0.4)%
	October	November	December	1-3Q
Existing stores	(0.5)%		(5.0)%	(5.0)%		(2.8)%
< Forecast of FY2022 >
							(millions of yen)
	1-3Q		4Q		FY2022
	Amount	YoY	Forecast	YoY	Forecast	YoY
Gross Sales	105,548		4.1%	33,203		5.1%	138,752	4.3%
Operating profit	2,296		(23.4)%	113		16.3%	2,410	(22.1)%

* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

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Kansai Food Market Ltd. (9919) Supplementary information to Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2022

・Hankyu Oasis Co., Ltd.

< Overview of financial results >

（millions of yen）

	Amount	YoY	Inc./Dec.
Gross Sales	83,997	(0.6)%	(517)
Gross Profit	23,172	2.4%	543
Gross profit/ Gross Sales	27.59%	-	0.81pt
Other operating revenue	5,436	0.8%	43
SG & A	26,879	2.0%	539
SG & A/ Net Sales	32.00%	-	0.83pt
Operating profit	1,730	2.8%	47
Operating profit/ Gross Sales	2.06%	-	0.07pt

* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

< Numbers of stores >
Total	76
YoY difference	(1)
< Opening and closing stores >
Opening	Kobe-Sannomiya (Hyogo)
Closing	Hirakata-Deguchi (Osaka), Abiko (Osaka)
< Monthly Sales >
	April	May	June	July	August	September
Existing stores	(5.8)%		0.7%	6.3%		2.3%	1.9%	2.4%
	October	November	December	1-3Q
Existing stores	1.5%		(0.9)%	(5.6)%		0.1%
< Forecast of FY2022 >
							(millions of yen)
	1-3Q		4Q		FY2022
	Amount	YoY	Forecast	YoY	Forecast	YoY
Gross Sales	83,997		(0.6)%	25,783		(1.8)%	109,781	(0.9)%
Operating profit	1,730		2.8%	162		-	1,892	24.9%

* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

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