FOR TRANSLATION PURPOSE ONLYDISCLAIMER
This English translation is only for reference purpose. When they are any discrepancies between original Japaneseversion and English translation version, the original Japanese version always prevails.
May 10, 2019

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2019
[Japanese GAAP]
Company name: SRS HOLDINGS CO., LTD.
Listing: Tokyo Stock Exchange, First Section
Securities code: 8163
URL: https://srs-holdings.co.jp/
Representative: Masahiko Shigesato, President & Chief Executive Officer
Contact:
Masahiro Tanaka, Director & Head of Administration Division
Tel: +81-6-7222-3101
Scheduled date of ordinary general meeting of shareholders:June 27, 2019
Scheduled date of payment of dividend:
June 28, 2019
Scheduled date of filing of Securities Report:
June 28, 2019
Preparation of supplementary references regarding financial results:
No
Holding of financial results briefing:
Yes (For institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 – March 31, 2019)(1) Consolidated operating results
Net sales(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Million yen%

Fiscal year ended Mar. 31, 2019
44,512
Fiscal year ended Mar. 31, 201844,155
Note: Comprehensive income (million yen)

0.8
1.8

Net income pershare

Million yen%

Million yen

1,019
37.5
741
82.6
Fiscal year ended Mar. 31, 2019:
Fiscal year ended Mar. 31, 2018:%

Million yen

%

282
108

160.3
-

976
64.7
592
42.2
228 (up 29.3%)
177 (-%)

Diluted net income
Ratio of ordinary Ratio of operating
Return on equity
per share
profit to total assets
profit to sales

Yen

Yen

%

Fiscal year ended Mar. 31, 2019
8.51
2.0
Fiscal year ended Mar. 31, 2018
3.27
0.8
Reference: Equity in earnings of affiliates (million yen) Fiscal year ended Mar. 31, 2019: Fiscal year ended Mar. 31, 2018: -

%

%

3.3
1.9

2.3
1.7

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of Mar. 31, 2019
As of Mar. 31, 2018
Reference: Shareholders’ equity (million yen)

Net assets per share

Equity ratio
%

Yen

48.3
45.8
As of Mar. 31, 2018: 14,079

425.83423.98Million yen

29,274
14,27730,768
14,214As of Mar. 31, 2019: 14,141(3) Consolidated cash flow
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

2,084
1,970

(1,842)
1,039(1,635)
(984)

9,339
10,732

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

2. Dividends
Dividends per share
Total

Yen

Yen

Million yen

%

%

5.00
6.00

5.00
6.00

166
199

153.0
70.5

1.2
1.4

1Q-end2Q-end3Q-end

Yen

Yen

Yen

-

-

-

-

-

-

5.00

5.00

Fiscal year ended Mar. 31, 2018
Fiscal year ended Mar. 31, 2019
Fiscal year ending Mar. 31, 2020
(forecast)

Dividend
Dividends topayout ratio net assets ratio(Consolidated) (Consolidated)

Total
dividends

Year-end

57.3

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)
Net sales
Full year

Million yen
46,000Operating profit%
3.3

Million yen
950

%
(6.8)

(Percentages represent year-on-year changes)
Profit attributable to
Net income perowners of parent
share

Ordinary profit
Million yen
1,000

%
2.4

Million yen
290

%
2.6

Yen
8.73

FOR TRANSLATION PURPOSE ONLY
* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in thescope of consolidation): None
New companies: Excluded companies: (2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:
None4) Restatements:
None(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of period (including treasury shares)
As of Mar. 31, 2019:33,209,080 shares
As of Mar. 31, 2018:33,209,080 shares
2) Number of treasury shares at the end of period
As of Mar. 31, 2019:343 shares
As of Mar. 31, 2018:294 shares
3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2019:33,208,768 sharesFiscal year ended Mar. 31, 2018:33,208,814 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2019 (April 1, 2018 – March 31, 2019)(1) Non-consolidated operating results(Percentages represent year-on-year changes)
Net sales
Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

Operating profit

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

18,19325,899(29.8)(24.2)

681
194

251.2
955.2

637
189

235.9
(6.1)

186
20

830.1
-

Net income per share

Diluted net income per share

Yen

Yen

5.61
0.60

-

Fiscal year ended Mar. 31, 2019
Fiscal year ended Mar. 31, 2018

(2) Non-consolidated financial position
Total assets
Million yen

As of Mar. 31, 2019
As of Mar. 31, 2018
Reference: Shareholders’ equity (million yen)

Net assets
Million yen

25,416
13,79926,75913,827
As of Mar. 31, 2019: 13,799

Net assets per share

Equity ratio
%

Yen

54.3
51.7
As of Mar. 31, 2018: 13,827

415.55416.37* This financial report is not subject to audit by certified public accountants or auditing firms.
* Explanation regarding appropriate use of the earnings forecasts and other special notes
Forecasts regarding future performance in this document are based on certain assumptions judged to be valid andinformation currently available to us. Actual performance may differ significantly from these forecasts for anumber of factors.

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows3(4) Outlook

4(5) Basic Policy for Profit Distribution and Dividends for the Current and Next Fiscal Years5

2. Corporate Group6

3. Basic Approach to the Selection of Accounting Standards

6

4. Consolidated Financial Statements and Notes

7(1) Consolidated Balance Sheet

7(2) Consolidated Statements of Income and Comprehensive Income

9

Consolidated Statement of Income

9

Consolidated Statement of Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

11(4) Consolidated Statement of Cash Flows

13(5) Notes to Consolidated Financial Statements

15(Going Concern Assumption)

15(Notes to Consolidated Balance Sheet)

15(Notes to Consolidated Statement of Income)16(Notes to Consolidated Statement of Comprehensive Income)18(Notes to Consolidated Statement of Changes in Equity)

18(Notes to Consolidated Statement of Cash Flows)

19(Change in Presentation)

20(Segment and Other Information)

20(Per Share Information)

21

1

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

1. Overview of Results of Operations(1) Results of Operations
1) Consolidated performance
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)
YoY change
YoY change
Results(Amount)(%)
44,155800
1.8

Net sales(Millions of yen)
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)
YoY change
YoY change
Results(Amount)(%)
44,512356
0.8Operating profit

741

335

82.6

1,019

277

37.5

Ordinary profit
Profit attributable toowners of parent

592

175

42.2

976

383

64.7

108

342

-

282

174

160.3

In the fiscal year ended March 31, 2019, heavy rain and flooding typhoons, earthquakes and other natural
disasters mainly in western Japan, had a negative impact on sales. However, sales were higher than one year
earlier because newly opened locations increased the number of restaurants and sales at existing Nigiri Chojiro
restaurants were higher.
Earnings were higher than one year earlier as the benefits of sales growth and the proper control over selling,
general and administrative expenses offset a negative impact caused by higher personnel expenses.
2) Opening and closure of restaurants(Number of restaurants)
Restaurants
ClosedFY3/19planned to open
restaurants(As of Mar. 31 2019)
during FY3/19
2 (-)
204 (-)
6 (-)

FY3/18(As of Mar. 31, 2018)

Newly opened
restaurants

200 (-)

6 (-)

46 (2)

2 (-)

5 (1)

43 (1)

6 (3)

- (-)

1 (-)

- (-)

1 (-)

1 (-)

1 (-)

- (-)

- (-)

1 (-)

- (-)

57 (-)

5 (-)

2 (-)

60 (-)

6 (-)

6 (-)

1 (-)

- (-)

7 (-)

3 (-)

Miyakobito
Meshiya Miyamoto
Munashi
Katsuya/Karayama

14 (13)

- (-)

1 (-)

13 (13)- (-)

66 (6)

2 (-)

5 (1)

63 (5)

5 (-)

36 (16)

4 (-)

- (-)

40 (16)7 (2)Domestic total

426 (37)

21 (-)

15 (2)

432 (35)

34 (5)

Overseas stores

6 (4)

6 (4)

2 (2)

10 (6)3 (1)Name
Washoku Sato
Tendon Tempura
Honpo Santen
Nabeichi
Meotozenzai
Nigiri Chojiro*

Nigiri Chujiro

Worldwide total
432 (41)
27 (4)
17 (4)
442 (41)
Note: Numbers in parentheses represent FC restaurants (domestic) and joint venture restaurants (overseas).
* Nigiri Chojiro includes Chojiro restaurants.

37 (6)

3) Other measures
Washoku Sato restaurants continued to use numerous activities to give customers a reason to visit more
frequently. One step was the addition for a limited time only of all -you-can-eat black hair wagyu (Japanese beef)
and beef tripe as a premium course to Sato-Shabu (all-you-can-eat shabu-shabu) and Sato-Suki (all-you-can-eat
sukiyaki), which are this restaurant’s primary menu items. Another change was the replacement of desserts forpremium courses with all-you-can eat soft-serve ice cream so that customers can enjoy various toppings.
Tendon Tempura Honpo Santen restaurants sold limited-time-only items such as a seasonal menu featuringoysters from Japan’s Seto Inland Sea and sakura shrimp and a Tori Zukushi (all-chicken) Fair to give customers areason to come more often. To improve quality and productivity, udon broth dispensers were placed in all Santen
restaurants. There were also measures for serving food faster after receiving orders and reducing the cost of foodand ingredients.
2

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

Nigiri Chojiro restaurants created new menu items in shorter cycles to attract new customers and bring in thesame customers more frequently. There were 12 special menus featuring seasonal ingredients. At Nigiri Chujiro,
a home-delivery sushi restaurant, trials started for a new format that includes an eat-in space in addition to theusual home delivery and take-out services. The aim is to improve profit margins and open more of theserestaurants faster. A Chojiro restaurant in Shijokiyamachi, Kyoto has gained strong support from foreign tourists.
This restaurant has received a Trip Advisor Certificate of Excellence for five consecutive years starting in 2014,
which qualifies it for the Trip Advisor Hall of Fame.
Meshiya Miyamoto Munashi restaurants continued to concentrate on improving the performance of existing
locations. Restaurants sold limited-time-only items such as set menu dishes with beef, beef suki-nabe andseafood sundubu (spicy tofu stew). These restaurants also increased the selection of a la carte dishes. To increase
the number of lunch customers, restaurants sold special lunch menu items available only at individual locations.
Katsuya restaurants sold limited-time-only menu items like mapo-chicken cutlets and miso cutlets of chicken
tsukune (chicken meatballs). There were also marketing activities using a tie-up with a television program.
The segment information is not provided because the SRS Group has only a single segment of food service
business.
(2) Financial Position
Total assets at the end of the fiscal year decreased 1,494 million yen from the end of the previous fiscal year to
29,274 million yen.
Current assets decreased 1,422 million yen from the end of the previous fiscal year to 11,726 million yen. Thiswas mainly due to a decrease of 1,498 million yen in cash and deposits.
Non-current assets decreased 74 million yen to 17,438 million yen. This was primarily due to decreases of 179
million yen in leased assets, net, and 172 million yen in goodwill.
Current liabilities decreased 647 million yen from the end of the previous fiscal year to 7,001 million yen mainly
due to a decrease of 644 million yen in current portion of long-term loans payable.
Non-current liabilities decreased 910 million yen to 7,995 million yen mainly due to a decrease of 742 million
yen in long-term loans payable.
Net assets were 14,277 million yen, an increase of 62 million yen from the end of the previous fiscal year.
(3) Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) decreased 1,392 million yen from the end of the previous
fiscal year to 9,339 million yen.
The cash flow components and the main reasons for changes are as described below.
(Cash flows from operating activities)
Net cash provided by operating activities was 2,084 million yen, compared with 1,970 million yen provided in
the previous fiscal year. This was mainly due to profit before income taxes of 653 million yen and depreciationof 1,564 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,842 million yen, compared with 1,039 million yen provided in theprevious fiscal year. This was mainly due to payments of 1,755 million yen for the purchase of property, plantand equipment, and payments for guarantee deposits of 114 million yen.
(Cash flows from financing activities)
Net cash used in financing activities was 1,635 million yen, compared with 984 million yen used in the previous
fiscal year. This was mainly due to repayments of long-term loans payable of 1,687 million yen, and proceedsfrom issuance of bonds of 683 million yen.

3

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(Reference) Trends in cash flow indicators
FY3/15

FY3/16

FY3/17

FY3/18

FY3/19Equity ratio (%)

42.5

51.8

45.1

45.8

48.3

Equity ratio based on market value (%)

123.4

94.1

89.0

103.2

112.3

3.0

6.0

6.6

5.1

4.2

Interest-bearing debt to cash flow ratio (years)

Interest coverage ratio (times)
17.7
9.1
12.65
15.54
19.29
Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest payments
Notes: 1. Market capitalization is calculated by the number of shares outstanding at the end of the period, excluding treasury
shares.
2. Operating cash flows are the figures for operating cash flows in the consolidated statement of cash flows.
3. Interest-bearing debt includes all debts on the consolidated balance sheet that incur interest .

(4) Outlook
We expect the outlook for the Japanese economy to remain unclear because of the increasing risk of slower
global economic growth due to U.S.-China trade tension, problems involving Brexit and other events. In
addition, we foresee a continuation of a difficult operating environment for the Group. Competition withcompanies outside the restaurant industry is increasing, personnel expenses are rising because of Japan’s labor
shortage, and consumer spending in Japan is likely to be weak due to the planned consumption tax hike in
October 2019 and the accompanying measures to exempt some items from this tax increase.
Against this backdrop, we continue to pursue the management policy of “aiming to be the restaurant that brings
the highest customer satisfaction” and we will undertake the following measures to achieve the goals of the New
Medium-term Business plan - Project MIRAI -, which started in the previous fiscal year.
(Restaurant Opening Measures)
As for restaurant openings, three are planned for Washoku Sato, two for Tendon Tempura Honpo Santen, one for
Nabeichi, five for Nigiri Chojiro, two for Nigiri Chujiro, two for Miyamoto Munashi, three for Katsuya(including two franchises), and two for Karayama. Overseas, five are planned for Washoku Sato restaurants in
Taiwan, five in Thailand and one Nigiri Chojiro in Singapore. A total of 31 new restaurant openings are planned
for the domestic and overseas markets.
(Marketing Measures)
Washoku Sato restaurants continue to upgrade its Sato-Shabu (all-you-can-eat shabu-shabu) and Sato-Suki (allyou-can-eat sukiyaki), which are this restaurant’s primary menu items. We will also continue to create menu
selections that incorporate the self-service all-you-can-drink alcohol bar/beverage bar Sato Bar & Sato Café. The
objective is to improve productivity and become a family restaurant that can cater to a wider range of customers.
In response to the October consumption tax hike and exemptions, Washoku Sato plans to expand the homedelivery business by using outside delivery companies. Also, all restaurants will start accepting reservations
through the Washoku Sato website. We plan to take more actions that create new sales channels in order to offer
greater convenience for customers.
As in the previous fiscal year, Santen is making menu items more attractive, reinforcing promotional activities
and improving sales systems in order to make this business model even stronger. In addition, we will start ahome-delivery sales channel by using outside delivery companies. Santen will also take steps to become more
profitable and restart the opening of new restaurants. We will increase the pace of measures to use labor -saving
equipment by adding an automated ordering system and performing tests for the use of dishwashing robots.
At Nigiri Chojiro, we continue to open new restaurants in the Kansai area while promoting expansion into newcommercial areas of the Chubu area. Another activity is the growth of franchising operations in Singapore, siteof the first Nigiri Chojiro restaurant outside Japan.
Miyamoto Munashi restaurants are continuing to redecorate restaurants and offer limited-time-only dishes with

4

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

the goal of increasing profitability of existing locations. To increase productivity, we plan to develop a newformat for this restaurant and start using an automated ordering system to reduce the workload for the restaurant
staff.
At Katsuya, we will continue opening directly managed and franchised restaurants in the Kansai area while
taking initiatives to boost the profitability of existing restaurants.
(Other Measures)
All the group companies need to establish both higher productivity and systematic labor management. To
accomplish these goals, we plan to shift restaurant operations away from a labor -intensive model in order toboost efficiency. We will take actions to create new forms of added value by combining the value added by AI
and robots with the value of services provided by people. Accompanying these measures will be steps to use
human resources for only tasks with the highest productivity. Two examples of these activities are the use of AI
and robots for more efficient dishwashing operations and the use of automated ordering systems. We also plan todevelop an app that efficiently performs every step from reception, receiving customers’ orders to processing
payments. We plan to start using this app on a trial basis. In addition, group companies will continue to improve
the working environment, upgrade management skills so that people are used properly based on accurate demand
forecasts, ensure strict compliance with laws and regulations, and improve profitability.
To succeed in Japan’s highly competitive restaurant market, we will continue to consider the use of alliances and
M&A for the purposes of continuing to grow, chiefly in the Kansai and Chubu areas, and build stronger
relationships with customers.
(Outlook)
As of now, the consolidated business results for the next fiscal year are expected to be: 46,000 million yen fornet sales, 950 million yen for operating profit, 1,000 million yen for ordinary profit, and 290 million yen for
profit attributable to owners of parent.
(5) Basic Policy for Profit Distribution and Dividends for the Current and Next Fiscal Years
The basic policy for the distribution of earnings is to base distributions on re sults of operations. For thedividend, our policy is to maintain stability as much as possible rather than adhering to a specific payout ratio.
We use retained earnings for new restaurants, redecoration of existing restaurants and other activities aimed atstrengthening our business operations. In accordance with these policies, we have taken steps for the purposes ofimproving our business processes and increasing financial soundness in order to become more profitable.
For the fiscal year that ended in March 2019, we plan to pay a commemorative dividend of 1 yen per share forthe 50 th anniversary of our establishment, which we reached in August 2018. This dividend expresses ourappreciation to shareholders and other stakeholders for their support and cooperation. With the ordinary year-end
dividend of 5 yen, this will result in a fiscal year dividend of 6 yen per share. For the fiscal year ending in March
2020, we plan to pay a year-end dividend of 5 yen per share.
As specified under the Articles of Incorporation decided at the 43rd annual meeting of shareholders held on June29, 2011, “Pursuant to Article 459, Paragraph 1 of the Companies Act of Japan, retained earnings can be directed
toward dividend payment upon resolution of the board of directors.”
The dividend from retained earnings for the current fiscal year is as follows:
Date of resolution

Total amount of dividend(Thousand yen)

Board of Directors meeting on
May 10, 2019

199,252

5

Dividend per share
(Yen)
6.00

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

2. Corporate GroupOur group is composed of the Company and its six affiliates whose main business is operating restaurants.
We do not provide segment information because we have only a single business segment of food service
business.
Our group’s business content and relationship with the Company are described below with a systematic chart ofthe business.
(1) Our group’s business content and relationship with the Company
Restaurant management: SATO FOODSERVICE CO., LTD., FOODSNET CORPORATION, MIYAMOTOMUNASHI CO., LTD., SATO・ARCLAND FOOD SERVICE CO., LTD., and SRSTAIWAN COMPANY LIMITED operate restaurants that serve mainly Japanese food.
Others:SPACE SUPPLY CO., LTD. is primarily involved in the leasing of real estate.
(2) Systematic diagram of the business

Customers

Provide products

Provide products

SATO・ARCLAND FOOD SERVICE
CO., LTD.
(consolidated subsidiary)
Provideproducts

SRS TAIWAN COMPANY LIMITED(consolidated subsidiary)

Provideproducts

SATO FOODSERVICE CO., LTD.
(consolidated subsidiary)

FOODSNET CORPORATION(consolidated subsidiary)

Selling raw materials
products
Real estate leasing
Facilities leasing

Selling raw
materials
products

Provideproducts
MIYAMOTO MUNASHI CO., LTD.
(consolidated subsidiary)

Selling raw
materials
products

SRS HOLDINGS CO., LTD.
Real estate leasing

SPACE SUPPLY CO., LTD.

3. Basic Approach to the Selection of Accounting Standards
The Group expects to employ Japanese accounting standards for the time being. However, we intend to consider
the future adoption of International Financial Reporting Standards (IFRS) depending on the ratio of foreign
shareholders and adoption trends among other companies in Japan.

6

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/18(As of Mar. 31, 2018)(Thousands of yen)
FY3/19(As of Mar. 31, 2019)

AssetsCurrent assets
Cash and deposits

10,838,502

9,339,721

Accounts receivable - trade727,663

842,705

Merchandise

37,92337,525

Raw materials and supplies

787,256

669,858

Other

757,544836,339

13,148,890

11,726,151

17,288,703

18,127,336

Accumulated depreciation*3 (14,141,548)*3 (14,528,548)

Buildings and structures, net*2 3,147,154*2 3,598,788

728,667

777,291*3 (625,619)*3 (660,268)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

103,048

117,023*2,*4 2,832,185*2,*4 2,832,185

2,140,517

2,235,187*3 (1,091,215)*3 (1,365,043)

1,049,301

870,143

48,97023,606

3,909,895

4,435,414*3 (2,916,114)*3 (3,293,626)

993,780

1,141,787

8,174,440

8,583,534

2,449,528

2,277,467

Intangible assets
Goodwill
Other
Total intangible assets

955,493862,0423,405,022

3,139,509

Investments and other assets
Investment securities*1,*2 698,768*1,*2 609,408

Long-term loans receivable

1,000,642

956,431

Guarantee deposits

3,191,254

3,189,265

Deferred tax assets

648,333

594,539Other

402,905

374,657

Allowance for doubtful accounts(8,193)(9,121)

Total investments and other assets

5,933,710

5,715,181

17,513,174

17,438,225

106,542

109,686

30,768,606

29,274,063

Total non-current assets
Deferred assets
Total assets

7

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(Thousands of yen)
FY3/19(As of Mar. 31, 2019)

FY3/18(As of Mar. 31, 2018)
Liabilities
Current liabilities
Accounts payable - trade

1,354,133

Current portion of bonds
Current portion of long-term loans payable
Lease obligations

1,360,759

615,000

685,000*2 1,675,520*2 1,031,224

145,505

84,7782,010,721

2,005,408

Income taxes payable

497,408

285,691

Provision for bonuses

300,917366,631

Other

1,049,258

1,181,930

Total current liabilities

7,648,465

7,001,422

Accounts payable - otherNon-current liabilities
Bonds payable
Long-term loans payable

3,980,000

3,995,000*2 2,521,481*2 1,778,606

Lease obligations

1,204,812

1,176,782

Deferred tax liabilities for land revaluation*4 82,947*4 82,947

Deferred tax liabilities
Provision for retirement benefits for directors (andother officers)
Asset retirement obligations

145,868-

27,75327,753672,272

703,696

Other

270,373

230,326

Total non-current liabilities

8,905,508

7,995,112

16,553,973

14,996,535

Capital stock

8,532,856

8,532,856

Capital surplus

4,981,675

4,981,675

Retained earnings

1,246,810

1,363,313

Total liabilities
Net assets
Shareholders’ equity

Treasury shares
Total shareholders’ equity

(245)

(295)

14,761,096

14,877,549

261,692

190,195

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8-

23,928*4 (962,306)*4 (962,306)

19,26012,010(681,352)(736,172)

134,889

136,150

14,214,633

14,277,528

30,768,606

29,274,063

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Thousands of yen)
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018) (Apr. 1, 2018 – Mar. 31, 2019)44,155,516
44,512,381
15,367,304
15,134,020
28,788,212
29,378,361

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances
Employees’ bonuses
Provision for bonuses
Welfare expenses
Retirement benefit expenses
Utilities expenses
Supplies expenses
Rent expenses
Repair expenses
Depreciation
Miscellaneous expenses
Amortization of goodwill
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
House rent income
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses on real estates
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries
Gain on cancellation of leasehold contracts
Insurance income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Loss on cancellation of rental contracts
Impairment loss
Loss on disaster
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

190,020
13,103,055
285,000
289,604
1,182,258
219,216
1,818,200
1,151,398
4,493,368
502,908
1,549,114
3,090,669
172,061
28,046,876
741,335

215,820
13,215,515
278,512357,091
1,271,905
137,634
1,844,019
1,153,005
4,511,365
483,153
1,551,367
3,167,708
172,061
28,359,161
1,019,200

16,14918,36373,121
71,107
178,742

12,655
15,07872,21934,34450,772
185,069

126,846
59,84987,781
52,836327,313592,764

108,060
58,601
61,310227,972
976,297

35,077284,325
319,403

11,809*3 86,963
98,772*1 35,196
12,075*2 306,445
353,717558,449
592,814(167,179)
425,634
132,814
24,288
108,525*1 37,240
3,780*2 330,563*4 50,157
421,741
653,329454,282(84,761)
369,520
283,808
1,261
282,547

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(Consolidated Statement of Comprehensive Income)(Thousands of yen)
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018) (Apr. 1, 2018 – Mar. 31, 2019)
Profit132,814283,808

25,070(71,496)-

23,928Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

19,260(7,250)* 44,331* (54,819)

177,146

228,989

152,857

227,727

24,288

1,261

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

10FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(3) Consolidated Statement of Changes in Equity
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury shares
Reversal of revaluation
reserve for land
Change of scope of
consolidation
Change of scope of
consolidation - foreign
currency translation
adjustment
Net changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
periodCapital surplus

8,532,856

4,981,675

Retained earnings

Treasury shares

Total shareholders’equity1,000,894(214)

14,515,211(166,044)(166,044)

108,525

108,525(30)(30)

384,764

384,764(81,330)(81,330)--

245,916(30)

245,885

8,532,856

4,981,675

1,246,810(245)

14,761,096(Thousands of yen)

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Reversal ofrevaluation reserve
for land
Change of scope of
consolidation
Change of scope of
consolidation foreign currencytranslation
adjustment
Net changes of
items other thanshareholders’ equity
Total changes of
items during period
Balance at end ofcurrent period

236,621

Deferred
gains orlosses onhedges

Revaluation
reserve forland-(577,541)

Total
NonForeign
accumulated controllingcurrency
otherinterests
translation
comprehensive
adjustment
income-(340,919)

110,600

Total net
assets

14,284,892(166,044)
108,525(30)
384,764(81,330)

19,26025,070-(384,764)

25,070-(384,764)

261,692-(962,306)

11

19,26019,260(359,694)

24,288(335,405)

19,260(340,433)

24,288(70,258)

19,260(681,352)

134,889

14,214,633

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury shares
Reversal of revaluation
reserve for land
Change of scope of
consolidation
Change of scope of
consolidation - foreign
currency translation
adjustment
Net changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end of current
periodCapital surplus

8,532,856

4,981,675

Retained earnings

Treasury shares

Total shareholders’equity1,246,810(245)

14,761,096(166,043)(166,043)

282,547

282,547
(50)

(50)
-

-

-

-

116,503(50)

116,452

8,532,856

4,981,675

1,363,313(295)

14,877,549(Thousands of yen)

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginningof current period
Changes of items
during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Reversal ofrevaluation reserve
for land
Change of scope of
consolidation
Change of scope of
consolidation foreign currencytranslation
adjustment
Net changes of
items other thanshareholders’ equity
Total changes of
items during period
Balance at end ofcurrent period

261,692

Deferred
gains orlosses onhedges

Revaluation
reserve forland-(962,306)

Total
NonForeign
accumulated controllingcurrency
otherinterests
translation
comprehensive
adjustment
income19,260(681,352)

134,889

Total net
assets

14,214,633(166,043)
282,547(50)--(71,496)

23,928-(7,250)(54,819)

1,261(53,557)(71,496)

23,928-(7,250)(54,819)

1,261

62,894

190,195

23,928(962,306)

12,010(736,172)

136,150

14,277,528

12

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018) (Apr. 1, 2018 – Mar. 31, 2019)
Cash flows from operating activities
Profit before income taxes

558,449

653,329

1,563,697

1,564,858

Amortization of goodwill

172,061

172,061

Impairment loss

306,445

330,563

Increase (decrease) in provision for bonuses

19,07465,713

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income(3,754)928(1,825)-(34,513)(27,733)

Interest expenses

126,846

108,060

Depreciation

Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets

12,075-(35,077)-

35,19637,240Loss (gain) on sales of shares of subsidiaries(284,325)-

Decrease (increase) in notes and accounts receivable - trade(25,757)(115,168)

48,290117,287

Increase (decrease) in notes and accounts payable - trade(37,744)

7,419

Increase (decrease) in accounts payable - other(34,338)

267

Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund
receivable
Other, net

289,831(18,199)(226,601)(39,883)724(38,215)

Subtotal

2,448,755

2,818,530

Decrease (increase) in inventories

Interest and dividend income received
Interest expenses paid
Proceeds from insurance income

21,545

15,362(126,627)(108,630)-

86,963

Income taxes refund

20,770-

Income taxes paid

(393,721)(727,411)

Net cash provided by (used in) operating activities

1,970,722

2,084,814(950,834)-

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

856,756

106,240

Purchase of property, plant and equipment(1,719,293)(1,755,836)

Proceeds from sales of investment securities
Purchase of intangible assets
Proceeds from sales of intangible assets

162,363-(105,641)(112,815)

303,415-

Proceeds from sales of shares of subsidiaries

2,520,000-

Payments for guarantee deposits(63,363)(114,725)

Proceeds from collection of guarantee deposits

129,366

90,099Payments of construction assistance fund receivables(70,107)(70,000)

Collection of construction assistance fund receivables

89,394

93,910

Other, net(113,016)(79,101)

Net cash provided by (used in) investing activities

1,039,040(1,842,229)

13

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(Thousands of yen)
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018) (Apr. 1, 2018 – Mar. 31, 2019)
Cash flows from financing activities
Proceeds from long-term loans payable

700,000

300,000

Repayments of long-term loans payable(2,118,463)(1,687,649)

Repayments of finance lease obligations(153,922)(149,495)

Proceeds from issuance of bonds

1,268,543

683,033

Redemption of bonds(515,000)(615,000)

(30)

(50)

Purchase of treasury shares
Cash dividends paid

(166,044)(166,043)

Net cash provided by (used in) financing activities(984,917)(1,635,206)

Effect of exchange rate change on cash and cash equivalents

47,32981

Net increase (decrease) in cash and cash equivalents

2,072,174(1,392,540)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary

8,532,038

10,732,262

128,048-*1 10,732,262*1 9,339,721

Cash and cash equivalents at end of period

14

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Notes to Consolidated Balance Sheet*1. The following items are applicable to a non-consolidated subsidiaries.

Investment securities (stocks)

FY3/18(As of Mar. 31, 2018)
50,000(Thousands of yen)
FY3/19(As of Mar. 31, 2019)50,000FY3/18(As of Mar. 31, 2018)
76,988(Thousands of yen)
FY3/19(As of Mar. 31, 2019)
65,4392,804,319

2,804,319

327,590

258,500

3,208,898

3,128,258*2. Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral

Buildings and structures
Land
Investment securities
Total
Liabilities with collateral

FY3/18(As of Mar. 31, 2018)
Long-term loans payable(including current portion of long-term loans payable)

2,597,380(Thousands of yen)
FY3/19(As of Mar. 31, 2019)
1,937,850*3. Accumulated depreciation include accumulated impairment losses.
*4. Revaluation of Land
The Company revalued land used for business operations pursuant to the Act on Revaluation of Land (Act No. 34, March 31,
1998) and the Act for Partial Revision of the Act on Revaluation of Land ( Act No. 24, revised on March 31, 1999), andrecorded “deferred tax liabilities for land revaluation” under liabilities and “revaluation res erve for land” under net assets.
- Method of revaluation:

Land is revalued by using the method stipulated in “Basic Notice on Asset Valuations for
Determining the Value of Land Used for Calculating Land Value Tax” as provided for in Article
16 of the Land Value Tax Act in accordance with Article 2, Item 4 of the Enforcement
Regulations for the Act on Revaluation of Land (Ordinance No. 119, March 31, 1998).

- Date of revaluation: March 31, 2000
FY3/18(As of Mar. 31, 2018)
The difference between the market value of land and bookvalue after revaluation(1,212,457)

15(Thousands of yen)
FY3/19(As of Mar. 31, 2019)(1,186,561)

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

Notes to Consolidated Statement of Income*1. Breakdown of loss on retirement of non-current assets(Thousands of yen)
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018) (Apr. 1, 2018 – Mar. 31, 2019)28,747
23,143

Buildings and structures
Machinery, equipment and vehicles

643

Property, plant and equipment, others

11,342

Investment and other assets

1,430
6,999
64
37,24067

Total

35,196*2. Impairment loss
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)
The Group recognized an impairment loss on the following groups of assets.
(1) Overview of groups of assets for which impairment losses have been recognizedPrimary use

Stores, etc.

Class

Buildings and structures
Machinery, equipment and vehicles
Leased assets
Property, plant and equipment, others
Long-term prepaid expenses

Location
Nagoya, Aichi
Ayabe, Kyoto
Kyoto, Kyoto
Koshigaya, Saitama
Kawagoe, Saitama
Soka, Saitama
Ranzan, Saitama
Osakasayama, Osaka
Osaka, Osaka
Daito, Osaka
Ikeda, Osaka
Higashiosaka, Osaka
Yao, Osaka
Shinonoi, Nagano
Minato, Tokyo
Higashikurume, Tokyo
Musashimurayama, Tokyo
Tachikawa, Tokyo
Ikoma, Nara
Kobe, Hyogo
Amagasaki, Hyogo
Takarazuka, Hyogo(2) Reason for decision to recognize impairment losses
The book values of assets associated with stores that have been consistently unprofitable and assets associated with storesthat are to be closed have been reduced to the amounts that can be recovered. These reductions have been recognized as an
impairment loss under extraordinary losses.
(3) Amount of impairment losses(Thousands of yen)Primary use

Stores, etc.

Class

AmountBuildings and structures

92,408

Machinery, equipment and vehicles

1,048

Leased assets

156,967

Property, plant and equipment, others

55,606Long-term prepaid expenses

414

Total

306,445(4) Method used to group assets
The Group regards each store as the base unit in identifying the smallest group of assets that generate cash flows. Assets forleased and idle assets, however, are grouped on an individual asset basis.

16

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(5) Method for calculating recoverable amountThe recoverable amount for the asset group is measured by using utility value which is calculated by discounting future cash
flows by 4.9%.
FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
The Group recognized an impairment loss on the following groups of assets.
(1) Overview of groups of assets for which impairment losses have been recognizedPrimary use

Stores, etc.

Class

Buildings and structures
Machinery, equipment and vehicles
Leased assets
Property, plant and equipment, others
Intangible assets, others
Investments and other assets, others

Location
Nerima, Tokyo
Ichikawa, Chiba
Noda, Chiba
Saitama, Saitama
Koshigaya, Saitama
Kawagoe, Saitama
Kawaguchi, Saitama
Soka, Saitama
Nagoya, Aichi
Komaki, Aichi
Otsu, Shiga
Kusatsu, Shiga
Uji, Kyoto
Kyoto, Kyoto
Osakasayama, Osaka
Osaka, Osaka
Daito, Osaka
Higashiosaka, Osaka
Yao, Osaka
Hirakata, Osaka
Amagasaki, Hyogo
Kobe, Hyogo
Nishinomiya, Hyogo
Okayama, Okayama
Overseas:
Taoyuan, Taiwan(2) Reason for decision to recognize impairment losses
The book values of assets associated with stores that have been consistently unprofitable and assets associated with storesthat are to be closed have been reduced to the amounts that can be recovered. These reductions have been recognized as an
impairment loss under extraordinary losses.
(3) Amount of impairment losses
Primary use(Thousands of yen)AmountClass
Buildings and structures

115,925

Machinery, equipment and vehicles
Stores, etc.

1,082

Leased assets

161,799

Property, plant and equipment, others

47,904

Intangible assets, others

570

Investments and other assets, others

3,281

Total

330,563(4) Method used to group assets
The Group regards each store as the base unit in identifying the smallest group of assets that generate cash flows. Assets forleased and idle assets, however, are grouped on an individual asset basis.
(5) Method for calculating recoverable amountThe recoverable amount for an asset group is measured by using utility value which is calculated by discounting future cash
flows by 5.0%.

17

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19*3. Insurance income
Insurance income is mainly for damage caused by the Typhoon No. 21 in 2018.
*4. Loss on disaster
Loss on disaster mainly includes the amount losses on damage caused by the Typhoon No. 21 in 2018.

Notes to Consolidated Statement of Comprehensive Income* Reclassification adjustments and tax effect with respect to other comprehensive income(Thousands of yen)
FY3/18
FY3/19(Apr. 1, 2017 – Mar. 31, 2018) (Apr. 1, 2018 – Mar. 31, 2019)
Valuation difference on available-for-sale securities:
Amount incurred during the year

71,446(89,359)(35,321)-

Before tax effect adjustments

36,124(89,359)

Tax effect(11,054)

17,863

Valuation difference on available-for-sale securities

25,070(71,496)

Deferred gains or losses on hedges:
Amount incurred during the year-

34,478

Reclassification adjustments--

Reclassification adjustments

Before tax effect adjustments-

34,478Tax effect-(10,550)

Deferred gains or losses on hedges-

23,92819,260(7,250)44,331(54,819)

Foreign currency translation adjustment:
Amount incurred during the year
Total other comprehensive income

Notes to Consolidated Statement of Changes in Equity
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2017

Increase(Shares)Number of shares
as of Mar. 31, 2018

Decrease

Outstanding shares
Common shares

33,209,080--

33,209,080

262

32

-

294

Treasury shares
Common shares (Note)

Note: The number of treasury shares of common shares increased 32 shares due to the acquisition of odd -lot shares.
2. Share acquisition rights
Not applicable.
3. Dividends(1) Dividend payment
Resolution
Board of Directors Meetingon May 12, 2017

Type ofshare
CommonsharesTotal dividends(Thousands of yen)
166,044

18

Source offunds
Retainedearnings

Dividend pershare (Yen)Record date

Effective date

5.00

Mar. 31, 2017

Jun. 30, 2017

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19(2) Dividends with a record date in FY3/18 but an effective date in FY3/19
Type of
Total dividends
Source of
Resolution
share(Thousands of yen)funds
Board of Directors Meeting
CommonRetained
166,043
on May 11, 2018
sharesearnings

Dividend pershare (Yen)Record date

Effective date

5.00

Mar. 31, 2018

Jun. 29, 2018

FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
1. Type of number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2018

Increase(Shares)Number of shares
as of Mar. 31, 2019

Decrease

Outstanding shares
Common shares

33,209,080--

33,209,080

294

49

-

343

Treasury shares
Common shares (Note)

Note: The number of treasury shares of common shares increased 49 shares due to the acquisition of odd-lot shares.
2. Share acquisition rights
Not applicable.
3. Dividends(1) Dividend payment
Resolution
Board of Directors Meetingon May 11, 2018

Type ofshare
CommonsharesTotal dividends(Thousands of yen)
166,043

Source offunds
Retainedearnings(2) Dividends with a record date in FY3/19 but an effective date in FY3/20
Type of
Total dividends
Source of
Resolution
share(Thousands of yen)funds
Board of Directors Meeting
CommonRetained
199,252
on May 10, 2019
sharesearnings

Dividend pershare (Yen)Record date

Effective date

5.00

Mar. 31, 2018

Jun. 29, 2018

Dividend pershare (Yen)Record date

Effective date

6.00

Mar. 31, 2019

Jun. 28, 2019

Notes to Consolidated Statement of Cash Flows*1. Reconciliation of cash and cash equivalents at the end of the fiscal year and the balance sheet amount
FY3/18(Apr. 1, 2017 – Mar. 31, 2018)(Thousands of yen)
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)

Cash and deposits

10,838,502

9,339,721

Time deposits with maturities over 3 months(106,240)-

Cash and cash equivalents

10,732,262

9,339,721

FY3/18(Apr. 1, 2017 – Mar. 31, 2018)(Thousands of yen)
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)99,119129,894*2. Material non-cash transactions
Assets and obligations applicable to finance lease transactions

Assets and obligations applicable to finance leasetransactions

19

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

Change in Presentation
Changes resulting from the application of the Partial Amendments to Accounting Standard for Tax EffectAccounting
SRS HOLDINGS has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 2018) at the beginning of thecurrent fiscal year. Accordingly, deferred tax assets and deferred tax liabilities are reclassified and included in
the investments and other assets section and the non-current liabilities section, respectively.
As a result, deferred tax assets of 209,306 thousand yen under current assets are included in deferred tax assetsof 648,333 thousand yen under investments and other assets in the consolidated balance sheet as of March 31,
2018.
Segment and Other Information
Segment information
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018) and FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
Omitted since the Group has only a single business segment of food service business.
Related information
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018) and FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
1. Information by product and service
Omitted since sales to external customers which account for more than 90% of net sales shown on the
consolidated statement of income are derived from a single product or service category.
2. Information by region(1) Net sales
Omitted since sales to external customers in Japan exceeded 90% of net sales on the consolidated statement ofincome.
(2) Property, plant and equipment
Omitted since property, plant and equipment in Japan exceeded 90% of property, plant and equipment on the
consolidated balance sheet.
3. Information by major client
Omitted since no external customer accounts for more than 10% of net sales on the consolidated statement ofincome.
Information related to impairment losses on non-current assets for each reportable segment
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018) and FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
Omitted since the Group has only a single business segment of food service business.
Information related to goodwill amortization and the unamortized balance for each reportable segment
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018) and FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
Omitted since the Group has only a single business segment of food service business.
Information related to gain on bargain purchase for each reportable segment
FY3/18 (Apr. 1, 2017 – Mar. 31, 2018) and FY3/19 (Apr. 1, 2018 – Mar. 31, 2019)
Not applicable.

20

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/19

Per-share Information

Net assets per share

FY3/18(Apr. 1, 2017 – Mar. 31, 2018)423.98(Yen)
FY3/19(Apr. 1, 2018 – Mar. 31, 2019)3.27
Net income per share
Notes: 1. Diluted net income per share is not presented since the Company has no outstanding dilutive securities.

425.838.51

2. Basis for calculating net assets per share is as follows.

Total net assets (Thousands of yen)

FY3/18(As of Mar. 31, 2018)
14,214,633

FY3/19(As of Mar. 31, 2019)14,277,528

134,889

136,150[134,889][136,150]

14,079,743

14,141,377

33,208,786

33,208,737

Deduction on total net assets(Thousands of yen)[of which non-controlling interests(Thousands of yen)]
Net assets applicable to common shares(Thousands of yen)
Number of common shares at end of
period used in calculation of net assets per
share (Shares)
3. Basis for calculating net income per share is as follows.

FY3/18(Apr. 1, 2017 – Mar. 31, 2018)
Profit attributable to owners of parent(Thousands of yen)Amounts not available to commonshareholders (Thousands of yen)
Profit attributable to owners of parent
applicable to common shares(Thousands of yen)
Average number of shares outstanding
during the period (Shares)

FY3/19(Apr. 1, 2018 – Mar. 31, 2019)108,525

282,547--

108,525

282,547

33,208,814

33,208,768

This financial report is solely a translation of the Company’s Kessan Tanshin (including attachments) in Japanese, which
has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenienceof readers who prefer an English translation.

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