FOR TRALSLATION PURPOSE ONLYDISCLAIMER
This English translation is only for reference purpose. When there are any discrepancies between original
Japanese version and English translation version, the original Japanese version always prevails.
July 31, 2015

Summary of Financial Results of the First Quarter of the Fiscal Year Ending March 31, 2016
[Japanese standards] (Consolidated)
Stock Exchange listings: Tokyo
Company name:Sato Restaurant Systems Company Limited
Securities code:
8163
URL: http://www.sato-restaurant-systems.co.jp
Representative:
Yoshitaka Shigesato, President & Chief Executive Officer
Contact:
Masahiko Shigesato, Director & Executive Vice President
Tel: +81-6-7222-3101
Scheduled date of filing of quarterly report:
August 11, 2015
Scheduled date of payment of dividend:
N/A
Preparation of supplementary references regarding quarterly results:
No
Holding the briefing of quarterly results:
No(All amounts are rounded down to the nearest million yen)( means decrease)

1. Financial results of the First Quarter of the Fiscal Year Ending March 31, 2016 (April 1, 2015 – June 30, 2015)(1) Consolidated operating results (cumulative total)(Percentages represent changes from previous year)
Net sales

Operating income

Income attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen

9,386
8,918

5.3
38.5

35
59

41.0
6.7

5
31

83.6
50.2

43
12

1Q FY03/2016
1Q FY03/2015(Note) Comprehensive income

1Q FY03/2016:
1Q FY03/2015:%－－

23 million yen (3.6%)
22 million yen (68.8%)

Net profit per share

Diluted net profit per shareYen

1Q FY03/2016

1.47

1Q FY03/2015

0.45

Yen

－
－

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

28,35024,272

14,681
10,45651.3
42.5

438.34365.891Q FY03/2016
1Q FY03/2015(Reference) Shareholders equity: 1Q FY03/2016:
1Q FY03/2015:

14,556 million yen
10,321 million yen

2. Dividends
Annual dividend per share
1Q-end2Q-endYen－－

FY ending March 31, 2015
FY ending March 31, 2016
FY ending March 31, 2016 (forecasts)

Year-end

3Q-end
Yen

Yen

Total
Yen

Yen

－

－

5.00

5.00

－

－

5.00

5.00

(NOTE) Revisions to dividend forecasts published most recently: None

3. Consolidated performance forecasts for the Fiscal Year Ending March 31, 2016 (April 1, 2015 – March 31, 2016)(Percentages represent changes from previous year;  means decrease)

Net sales

Operating income

Income attributable toowners of parent

Ordinary income

Net profit per share

Million yen%

Million yen%

Million yen%

Million yen

%

Yen

2Q
(cumulative total)

19,700

5.6

400

28.2

370

36.7

100

67.3

3.22

Full term

40,900

7.7

1,260

6.5

1,220

8.3

490

41.7

15.29

(NOTE) Revisions to performance forecasts published most recently: None

FOR TRALSLATION PURPOSE ONLY
*Notes(1) Changes in important subsidiaries during the current quarterly consolidated cumulative period(changes in specific subsidiaries resulting in modifications of the consolidation scope): None
New company: None
Excluded company: None
(2) Application of special accounting methods to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting principles, changes and restatements of accounting estimates
1) Changes in accounting principles caused by revision of accounting standards:
2) Changes other than 1):
3) Changes in accounting estimates:
4) Restatements:

Yes
None
None
None

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury stock)
1Q FY03/2016:33,209,080 shares
1Q FY03/2015:
28,209,080 shares
2) Number of treasury stock at the end of the period
1Q FY03/2016:
163 shares
1Q FY03/2015:
163 shares
3) Average number of shares outstanding during the period (quarterly cumative)
1Q FY03/2016:
29,458,917 shares
1Q FY03/2015:
28,208,958 shares* Presentation concerning implementation status of quarterly review procedures
These quarterly financial results are not the subject of a quarterly review procedure based on the Financial
Instruments and Exchange Act, and at the time of disclosing these quarterly financial results, review procedures
regarding the quarterly financial statements based on the Financial Instruments and Exchange Act had not been
completed.
* Explanation regarding appropriate use of the earnings forecast and other special notes
Descriptions about the future such as performance forecasts contained in this document are based on information
currently available to the Company and certain presumptions considered to be reasonable, and therefore actual
business performance and other elements may differ substantially due to various factors.

Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY
○ Table of Contents: Appendix

1. Qualitative Information regarding the Current Quarter............................................................................................. 2(1) Descriptions regarding operating results.............................................................................................................. 2(2) Descriptions regarding financial position ............................................................................................................ 3(3) Descriptions regarding future prospects such as consolidated performance forecasts ........................................ 3
2. Matters regarding Summary Information (Notes) ..................................................................................................... 4(1) Changes in important subsidiaries during the current consolidated cumulative period ....................................... 4(2) Application of special accounting methods to the preparation of quarterly consolidated financial statement .... 4(3) Changes in accounting principles, changes and restatements of accounting estimates ....................................... 4
3. Summary of Important Information for Going Concern Assumption ....................................................................... 44. Quarterly Consolidated Financial Statements ........................................................................................................... 5(1) Quarterly Consolidated Balance Sheets ............................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Statement of Comprehensive Income ................................. 7
Quarterly Consolidated Statements of Income
For the first quarter consolidated cumulative period ....................................................................................... 7
Quarterly Consolidated Statement of Comprehensive Income
For the first quarter consolidated cumulative period ....................................................................................... 8(3) Notes on Quarterly Consolidated Financial Statements....................................................................................... 9(Going Concern Assumption).............................................................................................................................. 9(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ................................................ 9(Segment Information, etc.) ................................................................................................................................ 91

Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY
1. Qualitative Information regarding the Current Quarter(1)

Descriptions regarding operating results

The Group aims to be "the restaurant that brings the highest customer satisfaction", promoting various
measures proactively, and has also continued its effort towards accelerated opening of new fast-casual restaurants andincreasing profitability of pre-existing restaurant categories in order to achieve its basic policy for the new mid-term
management plan, namely "to be an essential social infrastructure and prosper over 100 years to come".
In addition, positioning the current term as "period for growth and development" flowing from the previous
term, and in an attempt to steadily implement its mid-term management plan and to further enhance its financial base,the Group decided at its board meeting held on May 15, 2015 to issue new shares through public offering, which led
to fund-raising of 4,342 million yen in total. These funds are intended to be allocated to opening new restaurants;
renovating existing restaurants; investment in facilities related to core system and others; financial investment tooverseas development; and to repay some of its loans.
①

Consolidated performance(million yen;  means decrease)

Actualresults
Net sales

1Q FY03/2015+/- amounts
YoY

+/-%
YoY

1Q FY03/2016+/- amounts
YoY

Actualresults

+/-%
YoY

8,918

2,479

38.5%

9,386

468

5.3%

Operating income

59

3

6.7%

35

24

41.0%

Ordinary income

31

31

50.2%

5

26

83.6%

12

58

－

43

30

－

Income attributable to owners ofparentNet sales increased due to increase in number of restaurants in operation and solid growth of sales of existing
restaurants. Although profitability in the current first quarter was lower as compared to previous year because ofincrease in labor cost and of expenses associated with capital expansion by public offering carried out in June, 2015,
the profitability has maintained adequate level largely as expected.
②

Measures for opening new restaurants(million yen;  means decrease)

Category

Washoku Sato
SushihanTendon & Tempura Honpo Santen
Nigiri CHOJIRO
Nigiri CHUJIRO
Katsuya
Miyakobito

As of end of
previous
consolidated fiscalyear
198 (－)
14 (－)
12 (－)
52 (－)
3 (－)
23 (11)21 (20)

1 (－)
－ (－)
1 (－)
－ (－)
－ (－)
3 (1)
－ (－)

As of end of thecurrent first quarter
consolidated fiscal
period199 (－)
14 (－)
13 (－)
52 (－)
3 (－)
26 (12)21 (20)Planned to open
during the current
consolidated fiscal
year
3 (－)
－ (－)
20 (4)4 (－)
3 (－)
16 (10)
－ (－)

5 (1)

328 (32)

46 (14)

Newly opened
restaurants

Total
323 (31)
NOTE: Numbers in parentheses represent FC restaurants

In addition to the restaurants newly opened during the current first quarter consolidated cumulative period,
contracts have already been executed to open 8 new restaurants (as of June 30, 2015).
Moreover, "Washoku Sato MOI branch" was opened in May, 2015, as our second restaurant in Indonesia,
leading to 7 restaurants in total overseas, including 4 in Taiwan, 2 in Indonesia and 1 in Thailand; and the Group has
currently 335 restaurants in operation domestic and overseas.

2

Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY③

Other measures

With respect to human resource measures, as part of our personnel system reform to build up environment inwhich every employee could fulfill his/her potential to the maximum extent, "short-working-hours regular employee
system" was introduced in October, 2014, followed by reconstruction of job-groups being the base of our personnel
system and by change in the job-group system allowing wide variety of work styles. In addition, we have started
attendance management by means of vein authentication using terminals to clock in/out so that burdens of in-store
operations could be reduced by abolishing the time card system, and we have started to work on higher efficiency inheadquarters tasks by outsourcing payroll-related operations.
Operational measures include sales of event-premium commodities with season specific themes as brushing up"Sato-Shabu" a very popular menu of all-you-can-eat style Shabu-Shabu at "Washoku Sato" restaurants, and TV
commercial featuring well-known talents has continued to be broadcasted, as part of our efforts to acquire newcustomers. At "Nigiri CHOJIRO" restaurants, the greatest joy is that customers would say "Delicious!" and they
deliver seasonal menu making use of fresh raw materials. In addition, 4 restaurants were renovated.
It should be noted that the Group is a single segment of food service business and therefore description ofsegmental performance is omitted.

(2)

Descriptions regarding financial position(Total assets)
Total assets at the end of the current first quarter consolidated fiscal period were 28,350 million yen (increaseby 4,077 million yen YOY).
Current assets were 11,458 million yen (increase by 3,932 million yen YOY). This is mainly due to, forexample, increase in cash and deposits by 3,778 million yen.
Fixed assets were 16,888 million yen (increase by 146 million yen YOY). This is mainly due to, for example,
increase in investment securities by 135 million yen.
(Liabilities)
Current liabilities at the end of the current first quarter consolidated fiscal period were 7,765 million yen(increase by 481 million yen YOY). These include mainly increase in short-term loans payable by 1,000 million yen,increase in accounts payable-other by 469 million yen and decrease in reserve for bonuses by 315 million yen.
Fixed liabilities were 5,902 million yen (decrease by 628 million yen YOY). This is mainly due to, for example,
decrease in long-term loans payable by 555 million yen.
(Net assets)
Net assets at the end of the current first quarter consolidated fiscal period were 14,681 million yen (increase by
4,224 million yen YOY).
(3)

Descriptions regarding future prospects such as consolidated performance forecasts

There is no change in consolidated performance forecasts for the second quarter consolidated cumulative
period and for the full term, as announced in the Summary of Financial Results on May 12, 2015.

3

Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY
2. Matters regarding Summary Information (Notes)(1)

Changes in important subsidiaries during the current quarterly consolidated cumulative period
Not applicable.

(2)

Application of special accounting methods to the preparation of quarterly consolidated financial statement
Not applicable.

(3)

Changes in accounting principles, changes and restatements of accounting estimates(Application of Accounting Standard for Business Combination, etc.)"Accounting Standard for Business Combination" (Corporate Accounting Standard No. 21 of September 13,2013), "Accounting Standard for Consolidated Financial Statements" (Corporate Accounting Standard No. 22 ofSeptember 13, 2013), and "Accounting Standard for Business Divestitures" (Corporate Accounting Standard No. 7
of September 13, 2013) have been applied to the Group's accounting method since the current first quarter
consolidated fiscal period, and therefore balance amount due to change in equity interest which the Group has inits subsidiaries in case of continuous control over them is allocated as capital surplus and expenses related toacquisition are allocated as having been incurred during the consolidated fiscal year during which such acquisition
took place. With respect to business combination to be carried out after the beginning of the current first quarter
consolidated fiscal period, accounting method has been revised so that allocation amount of acquisition cost
readjusted due to ascertainment of provisional accounting treatment should be reflected on the quarterly
consolidated financial statements for the quarterly consolidated fiscal period during which relevant businesscombination took place. In addition, the manner in which quarterly net profit and others are represented has beenrevised; and reference to "minority shareholders" has been changed to as "non-controlling shareholders". In orderto reflect such changes in representation, quarterly consolidated financial statements for the first quarter of theprevious consolidated cumulative fiscal period and consolidated financial statements for the previous consolidated
fiscal year were reconstructed accordingly.
Application of Accounting Standards for Business Combination and for others are in compliance with thetransitional treatments as set out in Accounting Standard for Business Combination, Sec. 58-2 (4), AccountingStandard for Consolidated Financial Statements, Sec. 44-5 (4), and Accounting Standard for Business Divestitures,
Sec. 57-4 (4), having been applied since the beginning of the current first quarter consolidated fiscal period andonwards.
These have no effect on the Group's loss/profit.

3. Summary of Important Information for Going Concern Assumption
Not applicable.

4Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY

4. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousand yen;  means decrease)

Previous consolidated
fiscal year
(March 31, 2015)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts

Current first quarter
consolidated fiscal period(June 30, 2015)

5,532,308
541,833
36,395
651,647
250,648514,238△477

9,310,412
518,329
32,608685,780
303,102608,715－

7,526,595

11,458,947

2,522,630
4,742,506
2,104,254

2,562,413
4,742,506
2,062,814

9,369,391

9,367,734

1,206,282
822,990

1,183,805
810,178

2,029,273

1,993,984

Investment and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts

822,623
698,913
3,051,899
401,559
383,435△14,665

958,347
681,898
3,052,886
361,033
487,331△14,707

Total investments and other assets

5,343,765

5,526,788

16,742,431

16,888,507

3,259

2,610

24,272,286

28,350,066

Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets

Total non-current assets
Deferred assets
Total assets

5Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY

(Thousand yen;  means decrease)

Previous consolidated
fiscal year
(March 31, 2015)

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Other

Current first quarter
consolidated fiscal period(June 30, 2015)

1,111,667－
100,000
2,403,186
1,686,382
297,104
471,966
1,214,125994,5211,000,000
100,000
2,301,000
2,156,287
136,866
156,203
920,9097,284,433

7,765,787

50,0004,398,835
289,282
84,71931,403
478,446
1,198,225－
3,842,990
289,282
83,03029,578
485,849
1,172,068

6,530,912

5,902,800

Total liabilities

13,815,345

13,668,587

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

6,361,756
2,810,575
1,535,148△129

8,532,856
4,981,675
1,350,741△129

10,707,350

14,865,143

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land

228,418△614,436

306,100△614,436

Total accumulated other comprehensive income△386,018△308,335

135,607

124,670

10,456,940

14,681,478

24,272,286

28,350,066

Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities for land revaluation
Deferred tax liabilities
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total non-current liabilities

Total shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets

6Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY

(2) Quarterly Consolidated Statements of Income and Statement of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the first quarter consolidated cumulative period)(Thousand yen;  means decrease)

Previous first quarter
consolidated cumulative period(April 1, 2014
- June 30, 2014)

Current first quarter
consolidated cumulative period(April 1, 2015
- June 30, 2015)

Net sales
Cost of sales

8,918,510
3,035,461

9,386,985
3,222,149

Gross profit

5,883,049

6,164,836

Selling, general and administrative expenses

5,823,358

6,129,596

Operating income

59,691

35,239Non-operating income
Interest income
Dividend income
House rent income
Foreign exchange gains
Miscellaneous income

3,159
6,702
25,481－
21,275

3,298
7,038
25,48021,384
13,733

Total non-operating income

56,61870,934Non-operating expenses
Interest expenses
Rent expenses on real estates
Share issuance cost
Foreign exchange losses
Miscellaneous loss

39,64520,929－13,75910,50135,244
20,68628,261－
16,833

Total non-operating expenses
Ordinary income

84,83531,473101,025
5,147

Extraordinary income
Gain on sales of non-current assets

4,129

－

4,129

－

6,459

3,101

6,459

3,101

29,142

2,046

85,034△45,993

106,854△50,508

Total income taxes

39,04056,345Loss△9,897△54,299

2,693△10,936△12,591△43,262

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred

Profit (loss) attributable to non-controlling interests
Loss attributable to owners of parent

7

Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY
(Quarterly Consolidated Statement of Comprehensive Income)(For the first quarter consolidated cumulative period)(Thousand yen;  means decrease)

Previous first quarter
consolidated
cumulative period(April 1, 2014
- June 30,
2014)

Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income(detail)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

8

Current first quarter
consolidated
cumulative period(April 1, 2015
- June 30,
2015)△9,897△54,299

32,473

77,682

32,473

77,682

22,57523,383

19,882
2,693

34,320△10,936

Sato Restaurant Systems Company Limited (8163)
Summary of Financial Results for the 1Q FY03/2016

FOR TRALSLATION PURPOSE ONLY
(3) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.

(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)
The Company has its capital stock and capital surplus increased by 2,171,000,000 yen, respectively, due tocapital expansion through public offering, the due date of payment of which was June 1, 2015.

(Segment Information, etc.)
The Group is a single segment of food service business and therefore description of segment information, etc. isomitted.

9