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 18, 2021

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
[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 25, 2021
Scheduled date of payment of dividend:
Scheduled date of filing of Securities Report:
June 28, 2021
Preparation of supplementary references regarding financial results:
No
Holding of financial results briefing:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 – March 31, 2021)(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, 2021
43,707
Fiscal year ended Mar. 31, 2020
44,643
Note: Comprehensive income (million yen)%

Million yen

%

(2.1)
(3,802)(2,067)0.3
186 (81.7)
246 (74.7)
Fiscal year ended Mar. 31, 2021: (3,911) (-%)
Fiscal year ended Mar. 31, 2020: (2,566) (-%)

(4,067)(2,486)-

Net income pershare

Million yen%

Million yen

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

Yen

Yen

%

Fiscal year ended Mar. 31, 2021
(116.47)(36.3)
Fiscal year ended Mar. 31, 2020
(74.37)(18.6)
Reference: Equity in earnings of affiliates (million yen) Fiscal year ended Mar. 31, 2021: Fiscal year ended Mar. 31, 2020: -

%

%

(6.4)
0.8

(8.7)
0.4

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of Mar. 31, 2021
As of Mar. 31, 2020
Reference: Shareholders’ equity (million yen)

Net assets per share

Equity ratio

Million yen

Yen%

31,002
9,990
33,141
12,802As of Mar. 31, 2021: 9,778

31.5
271.3238.2
365.01
As of Mar. 31, 2020: 12,647(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(3,532)
1,243

882(4,461)

3,202
2,751

9,431
8,877

Fiscal year ended Mar. 31, 2021
Fiscal year ended Mar. 31, 2020

2. Dividends
Dividends per share

Fiscal year ended Mar. 31, 2020
Fiscal year ended Mar. 31, 2021
Fiscal year ending Mar. 31, 2022
(forecast)

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

1Q-end2Q-end

Total

Total
dividends

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00

-

0.00
0.00

0.00
0.00

0
0

-

-

-

0.00

-

0.00

0.00

3Q-end Year-end-

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)
Net sales
Full year(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Million yen%

Million yen%

Million yen%

Million yen%

51,00016.7(1,100)-(1,200)-(1,700)-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, 2021:
36,158,884 shares
As of Mar. 31, 2020:
34,770,184 shares
2) Number of treasury shares at the end of period
As of Mar. 31, 2021:
119,343 shares
As of Mar. 31, 2020:
119,343 shares
3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2021:
34,923,094 sharesFiscal year ended Mar. 31, 2020:
33,439,753 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 – March 31, 2021)(1) Non-consolidated operating results(Percentages represent year-on-year changes)
Net sales
Fiscal year ended Mar. 31, 2021
Fiscal year ended Mar. 31, 2020

Operating profit

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

16,534
18,436(10.3)
1.3

687
885

(22.4)
30.0

(331)
816

28.1

(2,591)(2,244)-

Net income per share

Diluted net income per share

Yen

Yen

(74.20)(67.11)-

Fiscal year ended Mar. 31, 2021
Fiscal year ended Mar. 31, 2020

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

As of Mar. 31, 2021
As of Mar. 31, 2020
Reference: Shareholders’ equity (million yen)

Net assets
Million yen

28,751
11,16829,063
12,549As of Mar. 31, 2021: 11,155

Net assets per share

Equity ratio
%

Yen

38.8
309.5443.2
362.18
As of Mar. 31, 2020: 12,549* 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 a numberof factors.

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows

4(4) Outlook

5(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

7

4. Consolidated Financial Statements and Notes

8(1) Consolidated Balance Sheet

8(2) Consolidated Statements of Income and Comprehensive Income

10

Consolidated Statement of Income

10

Consolidated Statement of Comprehensive Income11(3) Consolidated Statement of Changes in Equity

12(4) Consolidated Statement of Cash Flows

14(5) Notes to Consolidated Financial Statements

16(Going Concern Assumption)

16(Notes to Consolidated Balance Sheet)

16(Notes to Consolidated Statement of Income)16(Notes to Consolidated Statement of Comprehensive Income)21(Notes to Consolidated Statement of Changes in Equity)

21(Notes to Consolidated Statement of Cash Flows)23(Business Combinations, etc.)24(Segment and Other Information)

24(Per Share Information)

25(Subsequent Events)

25

1

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

1. Overview of Results of Operations(1) Results of Operations
1) Consolidated performance(Millions of yen)

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

FY3/20(Apr. 1, 2019 – Mar. 31, 2020)
YoY change
YoY change
Results(Amount)(%)
44,643
130
0.3
186
(832)
(81.7)
246(729)(74.7)(2,486)(2,769)-FY3/21(Apr. 1, 2020 – Mar. 31, 2021)
YoY change
YoY change
Results(Amount)(%)
43,707(935)(2.1)(3,802)(3,989)(2,067)(2,314)(4,067)(1,580)-The fiscal year that ended in March 2021 was extremely challenging because the COVID -19 pandemic reduced
the number of customers as people had to stay home for safety and many stores were required to shorten operating
hours. After the end of the first state of emergency in May 2020, the Japanese economy briefly recovered in partdue to the Go To Campaign and other economic stimulus measures. However, sales remained sluggish because ofanother state of emergency caused by an increase in COVID-19 cases and the continuing need to reduce operating
hours. Although sales benefited from mergers and acquisitions as well as new restaurants, fiscal year sales
decreased because of the impact of COVID-19. Earnings decreased because of the significant negative effect ofthe decline in sales and despite measures such as holding down new investments and reductions in personnel
expenses, rent, utility expenses and other components of fixed costs.
The SRS Group continued to implement various measures to respond to the increase in takeout and delivery
demand while ensuring the safety of employees and customers based on our philosophy of "we contribute to society
through food." At the same time, we focused on lowering fixed costs by reducing delivery expenses, rent and otherexpenses and creating group synergies in the purchasing of food and fixtures. In addition, in order to get eachbusiness on a growth track, we plan to resume investment in sales promotion measures to strengthen sales of eatin products and to improve operational efficiency. At the same time, we are paying close attention to the impact ofthe most recent wave of COVID-19 cases.
2) Opening and closure of restaurants
Name
Washoku Sato
Tokutoku*
Kazokutei*
Nigiri Chojiro*
Tendon Tempura Honpo Santen
Meshiya Miyamoto Munashi
KatsuyaSushi delivery business
Himawari*

SUNROLLY FC Business*
OthersFY3/20(As of Mar. 31, 2020)
204 (-)
79 (63)80 (9)
68 (-)
43 (1)
55 (4)
38 (14)11 (4)
13 (-)
32 (-)
26 (-)

Newly opened
restaurants
4 (-)
- (-)
1 (-)
- (-)
1 (-)
- (-)
1 (-)
- (-)
- (-)
- (-)
1 (-)

Closed restaurants
2 (-)
10 (8)
13 (1)3 (-)- (-)
14 (2)
- (-)
1 (-)
4 (-)
13(-)
8 (-)

(Number of restaurants)
FY3/21(As of Mar. 31, 2021)
206 (-)
69 (55)68 (8)
65 (-)
44 (1)
41 (2)
39 (14)10 (4)
9 (-)
19 (-)
19 (-)

Domestic total
649 (95)8 (-)
68 (11)589 (84)
Overseas stores
16 (9)6 (6)2 (2)20 (13)
Worldwide total
665 (104)
14 (6)
70 (13)609 (97)
Note: Numbers in parentheses are franchised restaurants (domestic) and joint venture restaurants (overseas).
* Nigiri Chojiro includes CHOJIRO restaurants.
* Kazokutei includes Kashunan, Sanpoan, Kazokuan, Kyoshun, and Kyosai restaurants.
* Tokutoku includes Tokutoku and Dondontei restaurants.
* Himawari includes Sabo-Himawari restaurants.
* SUNROLLY FC Business is the total number of stores operated by SUNROLLY Co., Ltd. in the Popolamama, Mister
Donut, Doutor Coffee, and Oogamaya restaurants.

2

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

3) Other measures
Washoku Sato restaurants responded to the increase in takeout and delivery demand by continuing to conduct amarketing campaign for takeout products and increasing the number of stores that offer delivery services.
Furthermore, following the addition of the EPARK internet reservation service, all restaurants started accepting
takeout orders received via the internet using the LINE POCKEO service. These measures and other actions
increased the ability of Washoku Sato to provide takeout services that meet customers’ needs. For a recovery in
eat-in sales, Washoku Sato restaurants added Kobe beef menu items and offered for a limited time weekday
discount on buffet meals. In addition, Washoku Sato focused on increasing the number of customers by launching
an official Washoku Sato app for more convenience for customers and bringing them back to restaurants more
often.
Tendon Tempura Honpo Santen restaurants conducted a Lifestyle Support Campaign that included a discount fo r
tendon, one of the restaurant’s most popular items, and the ability at all locations to use a smartphone to easily
place takeout orders on the website. In June 2020, we opened the first new restaurant (the Yobitsugi Interchange
restaurant in Nagoya) in about two years. In August 2020, the first TV commercials for the Santen restaurant
category aired and there were other activities during the fiscal year to attract new customers.
To celebrate its 20th anniversary, Nigiri Chojiro restaurants launched menu items with seasonal ingredients, suchas a high-quality kinki (a type of rockfish) with a very soft texture and hokkigai clams, which produce a delicious
flavor the more they are chewed. There were also several limited time only campaigns, such as marukabu ri sushi
during the Setsubun period and a special menu for Hinamatsuri (Girls ’ Day). To meet the growing takeout anddelivery demand, we increased the selection of takeout items to allow customers to enjoy the flavors of Chojiro athome and continued to conduct the Special Prices for Take Home Meals campaign.
Kazokutei, Tokutoku restaurants took actions aimed at increasing takeout and delivery sales in response to the needto stay home for safety during the COVID-19 crisis. Takeout items were sold at special prices and more restaurants
started to offer delivering services. In addition, these restaurants concentrated on increasing the number offollowers of the LINE official account in order to add regular customers in new customer segments. Kazokutei
restaurants held regional product fairs, including fairs for the food of Kyushu and Niigata. Another initiative wasa lifestyle support campaign featuring different monthly items sold at low prices, such as tentojidon (rice withshrimp/egg topping), gyutojidon (rice with beef/egg topping) and chicken tendon. Restaurants also distributed
coupons for discounts valid only for takeout orders. Tokutoku restaurants held a Curry Fair featuring a 15%
discount for curry udon, which is the core menu item. To meet takeout demand, Tokutoku restaurants continued tohold a campaign featuring a reduced price for katsudon.
Miyamoto Munashi restaurants continued to sell 500 yen lunches on weekdays to attract more customers and soldmenu items with a large volume of food, such as a hamburger and cut steak meal and an extra large torikara(chicken) meal. We also enlarged the selection of takeout products to increase sales of takeout and delivery items.
To attract new customers, Katsuya restaurants used TV commercials and continued to sell limited time only menu
items such as beef cutlets and barbecued beef on rice, chicken cutlet curry udon and a rice bowl combining
tarekatsu (thin pork cutlet and sweet/spicy soy sauce) and deep -fried chicken (karaage). In addition, to meet theincreasing demand for takeout and delivery, we expanded the number of stores eligible for delivery and sold
Zenryoku 1kg Karaage at a special price as a takeout-only product.
The segment information is not provided because the SRS Group has only a single segment of food service business.
(2) Financial Position
In the previous fiscal year, temporary accounting was applied for the business combination of us and KAZOKUTEI
Co., Ltd., which was conducted on February 1, 2020, but it was fixed during the current fiscal year. As a result of
the finalization of this provisional accounting treatment, significant revisions to the initial allocation of acquisition
costs have been reflected in the comparative information included in the consolid ated financial statements for thecurrent fiscal year. In comparing and analyzing with the end of the previous fiscal year, the amount after reflecting
the revision of the initial allocation of the acquisition cost due to the finalization of the provisiona l accounting
treatment is used.
Total assets at the end of the current fiscal year decreased 2,138 million yen from the end of the previous fiscal

3

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

year to 31,002 million yen.
Current assets increased 2,669 million yen from the end of the previous fiscal y ear to 14,542 million yen. This was
mainly due to increases of 1,877 million yen in accounts receivable-other and 553 million yen in cash and deposits.
Non-current assets decreased 4,781 million yen from the end of the previous fiscal year to 16,275 million yen.
This was primarily due to decreases of 1,232 million yen in buildings and structures, net, 1,169 million yen in landand 863 million yen in intangible assets and other.
Current liabilities decreased 881 million yen from the end of the previous fiscal year to 7,009 million yen. Thiswas mainly due to a decrease in current liabilities and others of 6 83 million yen, an increase of 246 million yen incurrent portion of long-term borrowings and a decrease in accounts payable of 231 million yen.
Non-current liabilities increased 1,555 million yen from the end of the previous fiscal year to 14,002 million yen.
This was mainly due to an increase of 3,076 million yen in long-term borrowings and decreases of 1,015 million
yen in bonds payable and 386 million yen in deferred tax liabilities.
Net assets were 9,990 million yen, a decrease of 2,812 million yen from the end of the previous fiscal year.
(3) Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) increased 553 million yen from the end of the previous fiscal
year to 9,431 million yen.
The cash flow components and the main reasons for changes are as described below.
(Cash flows from operating activities)
Net cash used in operating activities was 3,532 million yen, compared with 1,243 million yen provided in theprevious fiscal year. This was mainly due to a loss before income taxes of 4,210 million yen, an impairment lossof 2,556 million yen, depreciation of 1,742 million yen and an increase in accounts receivable-other of 1,627
million yen.
(Cash flows from investing activities)
Net cash provided by investing activities was 882 million yen, compared with 4,461 million yen used in theprevious fiscal year. This was mainly due to proceeds from sales of property, plant and equipment of 1,824 million
yen and payments of 1,020 million yen for the purchase of property, plant and equipment.
(Cash flows from financing activities)
Net cash provided by financing activities was 3,202 million yen, compared with 2,751 million yen provided in theprevious fiscal year. This was mainly due to proceeds from long-term borrowings of 4,500 million yen andrepayments of long-term borrowings of 1,177 million yen.
(Reference) Trends in cash flow indicators
FY3/17
FY3/18
FY3/19FY3/20FY3/21Equity ratio (%)
45.1
45.8
48.3
38.2
31.5
Equity ratio based on market value (%)
89.0
103.2
112.3
94.4
99.9
Interest-bearing debt to cash flow ratio (years)
6.6
5.1
4.2
9.7
Interest coverage ratio (times)
12.6
15.5
19.3
12.4
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 stat ement of cash flows.
3. Interest-bearing debt includes all debts on the consolidated balance sheet that incur interest.
4. Interest-bearing debt to cash flow ratio and the interest coverage ratio for FY3/21 are not stated because operating
cash flow was negative.

4

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(4) Outlook
In the fiscal year ending in March 2022, restrictions on operating hours and other effects of the COVID -19
pandemic are expected to continue as uncertainty remains about when this crisis will end. As a result, the outlook
is for a continuation of an unstable business climate in which sales may be negatively affected by the pandemic
depending on upcoming events. We expect that progress with vaccinations will prevent an explosive increase ininfections and that the SRS Group’s sales will start to recover in the second half of the fiscal year.
Based on this outlook, we base our forecasts on the assumptions that, compared with the fiscal year that ended in
March 2020, which was not affected by COVID-19, first and second half sales will be down about 20% and 10%
respectively at urban restaurants and down about 10% and 5% at suburban locations. We forecast sales of 51,000
million yen, an operating loss of 1,100 million yen, an ordinary loss of 1,200 million yen and a loss attributable toowners of parent of 1,700 million yen.
We have established a new five-year medium-term business plan that has the central goals of quickly recoveringfrom the effects of the COVID-19 pandemic and making existing businesses more profitable in market conditio ns
both during the pandemic and after this crisis ends.
The new business plan has the following six components as well as the following sales and earnings targets for theplan’s five-year period.
1) Make existing restaurants more profitable during and after the COVID-19 pandemic
2) Activities to reflect the increasing use of “smart” technologies in society3) Target the demand for prepared meals that are taken home4) Switch to marketing strategies that reflect the customers’ viewpoints5) Continue opening more restaurants
6) Contribute to creating a sustainable society and accomplishing the Sustainable Development Goals
FY3/22

FY3/23

FY3/24

FY3/25

FY3/26

Net sales (Millions of yen)

51,00058,00062,00068,00074,000Ordinary profit (Millions of yen)

(1,200)

1,100

1,600

2,200

3,000

630

650

690

740

800

Number of restaurants(Risk information associated with the spread of new coronavirus (COVID -19) infections)
Predicting when the COVID-19 pandemic will end is still impossible and the performance of the SRS Group isaffected mainly by the decline in the number of customers at restaurants due to the refraining from going out,
reduced hours or temporary closures of stores, the sharp decline in foreign tourists in Japan and other reasons. If
these negative effects of the crisis continue for a long time or become even more serio us, there may be an effecton the results of operations and financial position of the SR S Group.
(Financial measures)
SRS borrowed 4,500 million yen during the fiscal year that ended in March 2021 and sold stock acquisition rights
on November 27, 2020. As of the end of March 2021, a total of 1,083 million yen had been procured. As of March
31, 2021, cash and cash equivalents totaled 9,431 million yen. In addition, there is a committed credit line totaling
4,500 million yen. As a result, we believe there is sufficient liquidity.
(5) Basic Policy for Profit Distribution and Dividends for the Current and Next Fiscal Years
Our basic policy on profit distribution is to maintain a stable dividend as much as possible rather than maintain acertain dividend payout ratio depending on business results.
However, there will be no year-end dividend for the fiscal year that ended in March 2021 because of the net loss.
For the fiscal year ending in March 2022, there is no plan at this time to pay a dividend because of the outlook fora continuation of the negative effects of the COVID-19 pandemic on sales and earnings.

5

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

2. Corporate GroupOur group is composed of the Company and its eight 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, KAZOKUTEI CO.,LTD., MIYAMOTO MUNASHI CO., LTD., SUNROLLY CO., LTD., SATO・
ARCLAND FOOD SERVICE CO., LTD., and SRS TAIWAN COMPANY LIMITED
operate restaurants that serve mainly Japanese food.
Note: On April 1, 2021, MIYAMOTO MUNASHI CO., LTD. (surviving company in an absorption-typemerger) and SUNROLLY CO., LTD. (dissolving company in an absorption -type merger) merged
through an absorption-type merger. Trade name of the surviving company, MIYAMOTO MUNASHI,
has been changed to M&S FOODSERVICE CO., LTD.
Others:SPACE SUPPLY CO., LTD. is primarily involved in the leasing of real estate.

(2) Systematic diagram of the business
Customers
Provide products
SUNROLLY CO., LTD.
(consolidated subsidiary)

Provide products
KAZOKUTEI CO., LTD.
(consolidated subsidiary)

Provideproducts

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

SRS TAIWAN COMPANY LIMITED(consolidated subsidiary)
Provideproducts

Provideproducts

Provideproducts
SATO FOODSERVICE CO., LTD.
(consolidated subsidiary)

FOODSNET CORPORATION(consolidated subsidiary)

Selling raw materials
products
Real estate leasing
Facilities leasing

MIYAMOTO MUNASHI CO., LTD.
(consolidated subsidiary)

Selling raw
materials
products

SRS HOLDINGS CO., LTD.
Real estate leasing

SPACE SUPPLY CO., LTD.

6

Selling raw
materials
products

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

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.

7

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/20(As of Mar. 31, 2020)(Thousands of yen)
FY3/21(As of Mar. 31, 2021)

AssetsCurrent assets
Cash and deposits

8,877,696

9,431,344

Accounts receivable - trade

1,191,318

1,419,874

Merchandise

45,50945,455

Raw materials and supplies

949,574

955,187

Current portion of long-term loans receivable

76,96874,808

Accounts receivable - other313,576

2,190,782

Other424,075

428,784

Allowance for doubtful accounts
Total current assets(5,168)(3,519)11,873,552

14,542,717

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation

24,288,988

23,146,838*3 (19,711,742)*3 (19,802,111)*2 4,577,245*2 3,344,727

875,864

857,022*3 (708,436)*3 (727,713)

167,428

129,308*2,*4 4,270,075*2,*4 3,100,507

2,186,647

1,951,971*3 (1,514,329)*3 (1,367,229)

Leased assets, net

672,317584,741

Construction in progress

59,12022,377Other

6,062,147

6,066,311*3 (4,686,874)*3 (5,030,437)

Other, net

1,375,273

1,035,873

Total property, plant and equipment

11,121,461

8,217,537

Goodwill

1,404,976

666,827

Other

1,476,449

613,101

Total intangible assets

2,881,425

1,279,928*1,*2 486,482*1,*2 577,686

Accumulated depreciation

Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

854,008

812,627

Guarantee deposits

4,738,731

4,343,637

Deferred tax assets

629,398

771,140

Other

360,816

279,582

Allowance for doubtful accounts(15,454)(6,376)

Total investments and other assets

7,053,982

6,778,298

21,056,869

16,275,764

Total non-current assets
Deferred assets
Total assets

8

210,909

184,155

33,141,330

31,002,637

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(Thousands of yen)
FY3/21(As of Mar. 31, 2021)

FY3/20(As of Mar. 31, 2020)
Liabilities
Current liabilities
Accounts payable - trade

1,503,966

1,443,250

Current portion of bonds payable

1,095,000

1,015,000*2 771,323*2 1,018,012

Current portion of long-term borrowings
Lease obligations

96,831

93,4342,308,386

2,077,275

Income taxes payable

252,740

228,048

Provision for bonuses

402,702357,284

Accounts payable - otherOther

1,460,575

777,493

Total current liabilities

7,891,526

7,009,799

Non-current liabilities
Bonds payable
Long-term borrowings

7,050,000

6,035,000*2 1,847,386*2 4,923,900

Lease obligations

1,198,785

1,159,670

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

388,357

1,814

47,89327,753850

10,170189,725

202,536

1,272,015

1,247,423

369,782

311,617

12,447,743

14,002,834

20,339,270

21,012,633

8,532,856

9,076,110

Deferred tax liabilities
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

6,391,352

6,934,606

Retained earnings(1,322,741)(5,390,248)

Treasury shares(120,009)(120,009)

Total shareholders’ equity

13,481,457

10,500,458

Valuation difference on available-for-sale securities

84,925

175,359

Deferred gains or losses on hedges

32,73152,755*4 (962,306)*4 (962,306)

11,07011,857(833,578)(722,333)

Accumulated other comprehensive income

Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights-

13,012

Non-controlling interests

154,182

198,866

12,802,060

9,990,004

33,141,330

31,002,637

Total net assets
Total liabilities and net assets

9FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Provision for share awards 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 (loss)
Non-operating income
Interest income
Dividend income
Rental income from buildings
Foreign exchange gains
Subsidy income
Subsidies for employment adjustment
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses on real estate
Miscellaneous loss
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Gain on cancellation of leasehold contracts
Compensation income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on cancellation of rental contracts
Impairment loss
Loss on store closings
Loss on COVID19
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Profit attributable to non-controlling interests
Loss attributable to owners of parent

10(Thousands of yen)
FY3/20FY3/21(Apr. 1, 2019 – Mar. 31, 2020) (Apr. 1, 2020 – Mar. 31, 2021)
44,643,353
43,707,743
15,521,822
15,540,206
29,121,531
28,167,537
207,290
850
13,739,504
275,548
308,629
1,318,532
156,277
1,614,246
1,221,637
4,615,658
468,558
1,700,695
3,135,526
172,061
28,935,016
186,514205,060
9,320*5 14,840,874
308,754351,499
1,598,376
184,141
1,801,204
1,425,987
5,423,201
531,236
1,711,404
3,446,337
133,125
31,970,523(3,802,986)

11,142
137,490
68,5607,459
56,090280,742

13,37918,370129,606338*6 1,721,484*5 94,557
85,766
2,063,503

100,71549,01570,773
220,503
246,753

127,229
76,020124,657
327,907(2,067,390)*3 3,999
186*4 24,134
153
42,74871,223*3 502,179
62,638564,817*1 45,792
21,977*2 2,325,433
2,393,203(2,075,226)
416,332(22,787)
393,544(2,468,771)
18,031(2,486,802)*1 19,773*2 2,556,421
102,965*7 29,012
2,708,172(4,210,745)
349,960(537,884)(187,923)(4,022,822)
44,684(4,067,507)

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(Consolidated Statement of Comprehensive Income)(Thousands of yen)
FY3/20FY3/21(Apr. 1, 2019 – Mar. 31, 2020) (Apr. 1, 2020 – Mar. 31, 2021)
Loss(2,468,771)(4,022,822)(105,270)

90,434

Deferred gains or losses on hedges

8,803

20,024Foreign currency translation adjustment

(939)

786

* (97,406)* 111,245(2,566,177)(3,911,577)(2,584,209)(3,956,261)

18,031

44,684

Other comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

11

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(3) Consolidated Statement of Changes in Equity
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodChanges during period

8,532,856

Issuance of new shares

Capital surplus

Retained earnings

4,981,675

Total shareholders’equityTreasury shares

1,363,313(295)

14,877,549

1,409,676

Dividends of surplus
Loss attributable to ownersof parent
Purchase of treasury shares
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

1,409,676(199,252)(199,252)(2,486,802)(2,486,802)(119,714)(119,714)-

1,409,676(2,686,055)(119,714)(1,396,092)

8,532,856

6,391,352(1,322,741)(120,009)

13,481,457(Thousands of yen)

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at
beginning of
periodChanges during
periodIssuance of newsharesDividends ofsurplusLossattributable toowners ofparentPurchase oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period190,195

Deferred
gains orlosses onhedges23,928

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment(962,306)

12,010Total
Share
Nonaccumulated acquisition controllingotherrightsinterests
comprehensive
income(736,172)-

136,150

Total net
assets

14,277,528

1,409,676(199,252)(2,486,802)(119,714)(105,270)

8,803

-

(939)

(97,406)-

18,031(79,374)(105,270)

8,803

-

(939)

(97,406)-

18,031(1,475,467)

84,92532,731(962,306)

11,070(833,578)-

154,182

12,802,060

12

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodChanges during period
Issuance of new shares
Dividends of surplus
Loss attributable to ownersof parent
Purchase of treasury shares
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Capital surplus

Retained earnings

8,532,856

6,391,352

543,254543,254(1,322,741)

Total shareholders’equityTreasury shares(120,009)

13,481,457

1,086,508(4,067,507)(4,067,507)-

543,254543,254(4,067,507)-(2,980,999)

9,076,110

6,934,606(5,390,248)(120,009)

10,500,458(Thousands of yen)

Accumulated other comprehensive income
Valuation
Total
Share
NonDeferred
Foreigndifference
Revaluation
accumulated acquisition controlling
gains orcurrency
on availablereserve forotherrightsinterests
losses ontranslation
for-salelandcomprehensive
hedgesadjustment
securities
incomeBalance at
beginning of
periodChanges during
periodIssuance of newsharesDividends ofsurplus
Loss attributableto owners ofparentPurchase oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period84,92532,731(962,306)

11,070(833,578)-

154,182

Total net
assets12,802,060

1,086,508(4,067,507)
90,43420,024-786

111,245

13,012

44,684

168,942

90,43420,024-786

111,245

13,012

44,684(2,812,056)

175,359

52,755(962,306)

11,857(722,333)

13,012

198,866

9,990,004

13

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/20FY3/21(Apr. 1, 2019 – Mar. 31, 2020) (Apr. 1, 2020 – Mar. 31, 2021)
Cash flows from operating activities
Loss before income taxes
Depreciation
Amortization of goodwill(2,075,226)(4,210,745)

1,707,555

1,742,330

172,061

133,125

Impairment loss

2,325,433

2,556,421

Gain on bargain purchase(24,134)-

Increase (decrease) in provision for bonuses(50,269)(45,418)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability(2,674)(10,727)-(20,140)

Interest and dividend income-

12,811(148,632)(31,749)

Interest expenses

100,715

127,229

Compensation income(42,748)(62,638)

Loss (gain) on sale of investment securities

(186)

-

Gain on sale of non-current assets(3,999)(502,179)

Loss on retirement of non-current assets

45,792

19,773

Decrease (increase) in trade receivables(75,178)(228,372)

Decrease (increase) in inventories(127,030)(5,422)

Decrease (increase) in accounts receivable - other(33,015)(1,627,044)

Increase (decrease) in trade payables(237,589)(61,092)

Increase (decrease) in accounts payable - other(110,412)(179,892)

Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund
receivable
Other, net(45,665)(408,146)

266,484(152,276)(59,583)(69,659)

Subtotal

1,581,693(3,023,816)

137,098

21,131(100,850)(128,501)Interest and dividends received
Interest paid
Proceeds from compensation
Income taxes paid
Income taxes refund

68,161

15,932(506,431)(444,885)

64,30327,3391,243,974(3,532,800)(2,228,077)(1,020,083)

Proceeds from sale of property, plant and equipment

4,000

1,824,814

Proceeds from sale of investment securities

1,889

-

Purchase of intangible assets(247,096)(124,855)

Payments for asset retirement obligations
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Payments of guarantee deposits(27,650)(218,364)*2 (2,084,642)-*2 50,069-(76,887)(81,100)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment

Proceeds from refund of guarantee deposits
Payments of construction assistance fund receivables
Proceeds from collection of construction assistance fundreceivables
Other, net
Net cash provided by (used in) investing activities

14

69,589435,588(49,007)(35,909)

94,92087,69831,45615,035(4,461,436)

882,823

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(Thousands of yen)
FY3/20FY3/21(Apr. 1, 2019 – Mar. 31, 2020) (Apr. 1, 2020 – Mar. 31, 2021)
Cash flows from financing activities
Proceeds from short-term borrowings

1,500,000-

Repayments of short-term borrowings(1,500,000)-

Proceeds from long-term borrowings

850,000

4,500,000

Repayments of long-term borrowings(1,041,568)(1,177,214)

Repayments of finance lease obligations(86,213)(114,768)

Proceeds from issuance of bonds

4,033,143-

Redemption of bonds(685,000)(1,095,000)

-

9,764

Proceeds from issuance of share acquisition rights
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Purchase of treasury shares-

1,079,611(119,714)-

Dividends paid

(199,252)-

Net cash provided by (used in) financing activities

2,751,395

3,202,392

Effect of exchange rate change on cash and cash equivalents

4,042

1,231

Net increase (decrease) in cash and cash equivalents(462,024)

553,647

Cash and cash equivalents at beginning of period

9,339,721

8,877,696*1 8,877,696*1 9,431,344

Cash and cash equivalents at end of period

15

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21(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.
FY3/20(As of Mar. 31, 2020)
50,000Investment securities (stocks)(Thousands of yen)
FY3/21(As of Mar. 31, 2021)
50,000*2. Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral
FY3/20(As of Mar. 31, 2020)
57,152

Buildings and structures
Land

2,804,319
189,410Investment securities

3,050,881

Total(Thousands of yen)
FY3/21(As of Mar. 31, 2021)
49,2772,804,319
278,099
3,131,695

Liabilities with collateral

FY3/20(As of Mar. 31, 2020)
Long-term borrowings(including current portion of long-term borrowings)

1,312,000(Thousands of yen)
FY3/21(As of Mar. 31, 2021)
2,699,400*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 reserve 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
FY3/20(As of Mar. 31, 2020)
The difference between the market value of land and bookvalue after revaluation(1,153,313)(Thousands of yen)
FY3/21(As of Mar. 31, 2021)(1,106,748)

Notes to Consolidated Statement of Income*1. Breakdown of loss on retirement of non-current assets

Buildings and structures
Machinery, equipment and vehicles
Property, plant and equipment, others
Intangible assets
Investment and other assets
Total(Thousands of yen)
FY3/20FY3/21(Apr. 1, 2019 – Mar. 31, 2020) (Apr. 1, 2020 – Mar. 31, 2021)
21,03815,611772
344
10,000
3,618
13,980198
45,792
19,773

16

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21*2. Impairment loss
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
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

ClassStoresBuildings and structures
Machinery, equipment and vehicles
Leased assets
Property, plant and equipment, others
Intangible assets, others
Investment and other assets

OthersGoodwill
Intangible assets, others

Location
Katsushika, Tokyo
Tama, Tokyo
Hachioji, Tokyo
Saitama, Saitama
Koshigaya, Saitama
Niiza, Saitama
Kawagoe, Saitama
Kawaguchi, Saitama
Asaka, Saitama
Ichikawa, Chiba
Shizuoka, Shizuoka
Hamamatsu, Shizuoka
Nagoya, Aichi
Gifu, Gifu
Mie, Mie
Kusatsu, Shiga
Uji, Kyoto
Kyotanabe, Kyoto
Kyoto, Kyoto
Ibaraki, Osaka
Sakai, Osaka
Shijonawate, Osaka
Motiguchi, Osaka
Neyagawa, Osaka
Izumisano, Osaka
Osaka, Osaka
Daito, Osaka
Higashiosaka, Osaka
Yao, Osaka
Toyonaka, Osaka
Hirakata, Osaka
Kadoma, Osaka
Ikeda, Osaka
Takatsuki, Osaka
Kashiba, Nara
Nara, Nara
Kitakatsuragi, Nara
Katuragi, Nara
Kako, Hyogo
Kobe, Hyogo
Amagasaki, Hyogo
Himeji, Hyogo
Akashi, Hyogo
Kawanishi, Hyogo
Okayama, Okayama(Overseas)
New Taipei, Taiwan
Taoyuan, Taiwan
Taichung, Taiwan
Taipei, Taiwan-(2) Reason for decision to recognize impairment losses
In the stores, for asset groups for which profit and loss from operating activities are continuously negative or expected to becontinuously negative, and for asset groups for which the decision was made to close stores, the total undiscounted future ca shflow from the asset group fell below the book value. As a result, the book value was reduced to the recoverable amount (thehigher of the net selling price or the value in use), and the amount of the reduction was recorded as an impairment loss unde r
extraordinary losses.
With respect to goodwill, intangible assets, and other assets that were generated at the time of the acquisition of shares in

17

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

consolidated subsidiary MIYAMOTO MUNASHI CO., LTD., the book value was reduced to the recoverable amount (thehigher of the net selling price or the value in use), taking into account the financial position and future prospects of thisconsolidated subsidiary, and the amount of the reduction was recorded as an impairment loss under extraordinary losses.
(3) Amount of impairment losses(Thousands of yen)Primary use

Class

AmountBuildings and structures

486,348

Machinery, equipment and vehicles
Stores6,946

Leased assets

184,861

Property, plant and equipment, others

188,184

Intangible assets, others

2,168

Investment and other assets

2,254

Goodwill

Others1,348,669

Intangible assets, others

106,000

Total

2,325,433(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 of the asset group is calculated based on the higher of the net selling price or the value in use, andthe value in use is calculated by discounting the future cash flows by 5.1% to 9.6%.
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
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

StoresClass

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

18

Location
Chiyoda, Tokyo
Koto, Tokyo
Adachi, Tokyo
Toshima, Tokyo
Setagaya, Tokyo
Katsushika, Tokyo
Suginami, Tokyo
Kiyose, Tokyo
Tachikawa, Tokyo
Machida, Tokyo
Tama, Tokyo
Higashikurume, Tokyo
Musashimurayama, Tokyo
Sapporo, Hokkaido
Higashikanbara, Niigata
Urayasu, Chiba
Nagareyama, Chiba
Narashino, Chiba
Funabashi, Chiba
Ichikawa, Chiba
Matsudo, Chiba
Chiba, Chiba
Yachiyo, Chiba
Asaka, Saitama
Saitama, Saitama
Kawagoe, Saitama
Soka, Saitama
Yashio, Saitama
Hiki, Saitama
Yokosuka, Kanagawa
Yokohama, Kanagawa

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

Primary use

Assets for leased

OthersClass

Location
Kawasaki, Kanagawa
Sagamihara, Kanagawa
Hiratsuka, Kanagawa
Hamamatsu, Shizuoka
Shizuoka, Shizuoka
Yaizu, Shizuoka
Gotenba, Shizuoka
Gifu, Gifu
Tokai, Aichi
Nagoya, Aichi
Anjo, Aichi
Ichinomiya, Aichi
Nishio, Aichi
Nisshin, Aichi
Tsu, Mie
Mie, Mie
Ritto, Shiga
Kusatsu, Shiga
Kyoto, Kyoto
Kyotanabe, Kyoto
Sagara, Kyoto
Izumisano, Osaka
Osaka, Osaka
Takatsuki, Osaka
Suita, Osaka
Higashiosaka, Osaka
Yao, Osaka
Toyonaka, Osaka
Minoo, Osaka
Kawachinagano, Osaka
Kishiwada, Osaka
Sakai, Osaka
Moriguchi, Osaka
Matsubara, Osaka
Izumiotsu, Osaka
Osakasayama, Osaka
Daito, Osaka
Ikeda, Osaka
Kadoma, Osaka
Kitakatsuragi, Nara
Sakurai, Nara
Nara, Nara
Yamatokoriyama, Nara
Kashihara, Nara
Wakayama, Wakayama
Akashi, Hyogo
Himeji, Hyogo
Kakogawa, Hyogo
Amagasaki, Hyogo
Nishinomiya, Hyogo
Kobe, Hyogo
Okayama, Okayama
Kurashiki, Okayama(Overseas)
Taichung, Taiwan
Miaoli, Taiwan

Buildings and structures
Land
Intangible assets, others
Buildings and structures
Property, plant and equipment, others
Goodwill
Intangible assets, others

Osaka, Osaka
Nishinomiya, Hyogo
Osaka, Osaka(2) Reason for decision to recognize impairment losses
In the stores, for asset groups for which profit and loss from operating activities are continuously negative or expected to becontinuously negative, and for asset groups for which the decision was made to close stores, the total undiscounted future ca sh

19

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

flow from the asset group fell below the book value. As a result, the book value was reduced to the recoverable amount (thehigher of the net selling price or the value in use), and the amount of the reduction was recorded as an impairment loss unde r
extraordinary losses.
In the assets for leased, for asset groups for which profit and loss from leased properties are continuously negative or expe cted
to be continuously negative, the total undiscounted future cash flow from the asset group fell below the book value. As a result,the book value was reduced to the recoverable amount (the higher of the net selling price or the value in use), and the amoun tof the reduction was recorded as an impairment loss under extraordinary losses.
With respect to goodwill, intangible assets, and other assets that were generated at the time of the acquisition of shares in
consolidated subsidiary KAZOKUTEI CO., LTD and intangible assets and other assets that were generated at the time of theacquisition of shares in MIYAMOTO MUNASHI CO., LTD,, the book value was reduced to the recoverable amount (the higherof the net selling price or the value in use), taking into account the financial position and future prospects of these consolidated
subsidiaries., and the amount of the reduction was recorded as an impairment loss under extraordinary losses.
(3) Amount of impairment losses
Primary use

Stores, etc.

Assets for leased

Others(Thousands of yen)AmountClass
Buildings and structures

839,825

Machinery, equipment and vehicles

19,170

Leased assets

83,869Property, plant and equipment, others

204,388

Intangible assets, others

5,430

Investments and other assets, others

5,064

Buildings and structures

28,625

Land

7,046

Intangible assets, others

75,049Buildings and structures

1,199

Property, plant and equipment, others

19

Goodwill

605,023

Intangible assets, others

681,708

Total

2,556,421(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 of the asset group is calculated based on the higher of the net selling price or the value in use, andthe value in use is calculated by discounting the future cash flows by 5.0% to 9.3%.
*3. Gain on sales of non-current assets
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
Gain on sales of non-current assets is mainly due to sale of buildings and structures, and property, plant and equipment,
others.
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Gain on sales of non-current assets is mainly due to sale of buildings and structures, and land.
*4. Details of gain on bargain purchase are as follows.
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

24,134-Gain on bargain purchase arising from the acquisition ofshares of SUNROLLY Co., Ltd.

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21*5. Subsidies for employment adjustment
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Special measures for subsidies for employment adjustment were applied to the absence allowance paid due to the shortened
operating hours and temporary closure of stores due to the effects of the COVID -19 pandemic. Accordingly, the Company
deducted 797,695 thousand yen out of 892,253 thousand yen in subsidies paid or expected to be paid from salaries andallowances in selling, general and administrative expenses, and posted the excess amount or expected excess amount of 94,557
thousand yen as subsidies for employment adjustment in non-operating income.
*6. Subsidy income
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Due to the impact of COVID-19, the amount of benefits, etc. paid or expected to be paid by the government and various local
governments is recorded as subsidy income under non-operating income.
*7. Loss on COVID19
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Following the declaration of a state of emergency due to the COVID-19 pandemic, some of the Group's stores were temporarilyclosed. The fixed costs (depreciation and land rent) incurred during the period of closure have been recorded as loss on
COVID19 under extraordinary losses.

Notes to Consolidated Statement of Comprehensive Income* Reclassification adjustments and tax effect with respect to other comprehensive income
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)
Valuation difference on available-for-sale securities:
Amount incurred during the year
Reclassification adjustments
Before tax effect adjustments
Tax effect
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges:
Amount incurred during the year
Reclassification adjustments
Before tax effect adjustments
Tax effect
Deferred gains or losses on hedges
Foreign currency translation adjustment:
Amount incurred during the year
Total other comprehensive income(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31,
2021)(121,036)(186)(121,222)
15,952(105,270)

91,204
91,204(769)
90,434

12,684
12,684(3,881)
8,803

28,85328,853(8,829)20,024(939)(97,406)

786
111,245

Notes to Consolidated Statement of Changes in Equity
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2019

Increase(Shares)Number of shares
as of Mar. 31, 2020

Decrease

Outstanding shares
Common shares (Note 1)

33,209,080

1,561,104-

34,770,184

Treasury shares
Common shares (Note 2)343
119,000
119,343
Notes: 1. The increase in outstanding shares of common shares is due to the common stock exchange in which SRS Holdings
Co., Ltd. is the wholly-owning parent company in the share exchange and KAZOKUTEI Co., Ltd. is the wholly

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

owned subsidiary and due to the common stock exchange in which SRS Holdings Co., Ltd. is th e wholly-owningparent company in the share exchange and SUNROLLY Co., Ltd. is the wholly owned subsidiary.
2. The increase of common shares in treasury shares is due to a market purchase as a trust asset of the Officer's Share
Benefit Trust. The number of shares at the end of the FY3/20 includes our shares (- shares at the beginning of
FY3/20 and 119,000 shares at the end of FY3/20) held by Custody Bank of Japan, Ltd. (trust account).
2. Share acquisition rights
Not applicable.
3. Dividends(1) Dividend payment
Resolution

Type ofshare

Total dividends(Thousands ofyen)

Source offunds

Dividend
per share(Yen)

Record date

Effective date

Board of Directors Meetingon May 10, 2019

Commonshares

199,252

Retainedearnings

6.00

Mar. 31, 2019

Jun. 28, 2019(2) Dividends with a record date in FY3/20 but an effective date in FY3/21
Not applicable.
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2020

Increase

Decrease(Shares)Number of shares
as of Mar. 31, 2021

Outstanding shares
Common shares (Note 1)
34,770,184
1,388,700
36,158,884
Treasury shares
Common shares (Note 2)
119,343
119,343
Notes: 1. The increase in issued shares of common stock is due to exercise of share acquisition rights.
2. The number of common shares in treasury shares at the end of the FY3/21 includes our shares (119,000 shares atthe beginning of FY3/21 and 119,000 shares at the end of FY3/21) held by Custody Bank of Japan, Ltd. (trust
account).
2. Share acquisition rights

Share acquisitionrights (itemized)

Type ofshares undershare
acquisitionrightsNumber of shares under share acquisition rights(shares)
As of Apr.
1, 2020

Increase

Reportingcompany(Parent
company)

Decrease

As of Mar.
31, 2021

Balance asof Mar. 31,
2021(Thousandsof yen)First series of stockacquisition rights
Common6,700,000
1,388,700
5,311,300
13,012
with exercise pricesharesrevision clause
Total
6,700,000
1,388,700
5,311,300
13,012
Notes: 1. The number of shares to be issued upon exercise of stock acquisition rights is the number of shares assumed to havebeen issued upon exercise of such rights.
2. The increase in the 1st series of stock acquisition rights with exercise price revision clause was due to the issuanceof stock acquisition rights.
3. The decrease in the 1st series of stock acquisition rights with exercise price revision clause was due to the exerciseof stock acquisition rights.
3. Dividends(1) Dividend payment
Not applicable.
(2) Dividends with a record date in FY3/21 but an effective date in FY3/22
Not applicable.

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

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 amountFY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

Cash and deposits

8,877,696

9,431,344

Cash and cash equivalents

8,877,696

9,431,344*2. Main breakdown of assets and liabilities of the company that became a new consolidated subsidiary through a shareexchange
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(1) The breakdown of assets and liabilities at the time of the start of consolidation due to the newly consolidation of
KAZOKUTEI Co., Ltd. as a result of a stock exchange and the relationship with the amount of subsidiary fund received by
the stock exchange are as follows.
(Thousands of yen)
Current assets
641,739
Non-current assets
3,913,981
Goodwill
1,065,156
Current liabilities(1,527,033)
Non-current liabilities(2,685,033)
Acquisition cost
1,408,810
Cash and cash equivalents of newly consolidated subsidiaries(82,719)
Loans from such companies performed between the acquisition
2,167,361
date and the deemed acquisition date
Our issue price as a result of the share exchanges(1,408,810)
Deduction: Purchase of shares of subsidiaries resulting in change
2,084,642
in scope of consolidation(2) The breakdown of assets and liabilities at the time of consolidation accompanying the consolidation SUNROLLY Co., Ltd.
as a result of the share exchange, and the relationship with the amount of funds received by the subsidiary through the shareexchange, are as follows.
(Thousands of yen)
Current assets
150,020
Non-current assets
346,857
Gain on bargain purchase(24,134)
Current liabilities(229,244)
Non-current liabilities(242,632)
Acquisition cost
866
Cash and cash equivalents of newly consolidated subsidiaries
38,486Loans from such companies performed between the acquisition
11,583date and the deemed acquisition date
Our issue price as a result of the share exchanges(866)
Deduction: Proceeds from purchase of shares of subsidiaries
50,069resulting in change in scope of consolidation
3. Material non-cash transactions(1) Assets and obligations applicable to finance lease transactions
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

63,33867,852

FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Thousands of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

1,409,676-

Assets and obligations applicable to finance leasetransactions(2) Increase in capital surplus due to share exchange

Increase in capital surplus due to share exchange

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

Business Combinations, etc.
(Determination of provisional accounting treatment for business combinations)
A preliminary accounting process was carried out on February 1, 2020 for a business combination between us and
KAZOKUTEI Co., Ltd. in the previous fiscal year, but it was finalized in the current fiscal year.
With the finalization of this provisional accounting treatment, the comparative information contained in the
consolidated financial statements for the current fiscal year reflects a significant review of the initial allocation of
acquisition costs. As a result of the allocation of 637,000 thousand yen for intangible assets and 220,083 thousand
yen to deferred tax liabilities, the provisionally calculated amount of goodwill decreased by 416,916 thousand yen
from 1,065,156 thousand yen to 648,239 thousand yen.
There have been no material adjustments to the initial allocation of the acquisition cost for the businesscombination between the Company and SUNROLLY Co., Ltd., that occurred on February 1, 2020.
Segment and Other Information
Segment information
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020) and FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Omitted since the Group has only a single business segment of food service business.
Related information
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020) and FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
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
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020) and FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
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
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020) and FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
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
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020) and FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
Omitted since the Group has only a single business segment of food service business.

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/21

Per-share Information(Yen)
FY3/20FY3/21(Apr. 1, 2019 – Mar. 31, 2020)(Apr. 1, 2020 – Mar. 31, 2021)
365.01271.32
Net assets per share(74.37)(116.47)
Net loss per share
Diluted net income per share
Notes: 1. Diluted net income per share in FY3/20 is not presented since the Company has no outstanding dilutive securities.
Diluted net income per share in FY3/21 is not presented since the Company has outstanding dilutive securities,
though posted a net loss.
2. The Company's shares held by Custody Bank of Japan, Ltd. (Trust Account) as trust assets of the Officer's Share
Benefit Trust are included in treasury shares, which are deducted from the total number of outstanding shares at theend of the fiscal year for the purpose of calculating net assets per share (119,000 shares for the previous fiscal year
and 119,000 shares for the current fiscal year). For calculation of net loss per share, treasury shares is included intreasury shares , which is deducted from the calculation of the average number of shares during the period (119,000
shares for the previous consolidated fiscal year and 119,000 shares for the current consolidated fiscal year).
3. Basis for calculating net assets per share is as follows.

Total net assets (Thousands of yen)
Deduction on total net assets(Thousands of yen)[of which share acquisition rights (Thousands ofyen)][of which non-controlling interests (Thousands ofyen)]
Net assets applicable to common shares (Thousandsof yen)Number of common shares at end of period used in
calculation of net assets per share (Shares)

FY3/20(As of Mar. 31, 2020)
12,802,060

FY3/21(As of Mar. 31, 2021)
9,990,004

154,182

211,879[-][13,012][154,182][198,866]

12,647,878

9,778,124

34,650,841

36,039,541

FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(2,486,802)(4,067,507)--(2,486,802)(4,067,507)

33,439,753

34,923,094

-

-

-

-

-

-

4. Basis for calculating net income per share is as follows.

Net loss per share
Loss attributable to owners of parent (Thousands ofyen)
Amounts not available to common shareholders(Thousands of yen)
Loss attributable to owners of parent applicable tocommon shares (Thousands of yen)
Average number of shares outstanding during theperiod (Shares)
Diluted net income per share
Adjustment to profit attributable to owners of parent(Thousands of yen)
Increase in number of common shares (Shares)
Description of the latent shares not included in thecalculation of diluted net income per share due totheir non-dilutive effect, and with significant
changes from the end of the previous fiscal year

Subsequent Events
Not applicable.
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 convenience ofreaders who prefer an English translation.

25