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.
November 5, 2021

Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2022
(Six Months Ended September 30, 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 filing of Quarterly Report:
November 12, 2021
Scheduled date of payment of dividend:
Preparation of supplementary references regarding quarterly results: No
Holding of quarterly results briefing:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022
(April 1, 2021 - September 30, 2021)(1) Consolidated operating results
Net sales

Operating profit

Million yen

Six months ended Sep. 30, 2021
19,114Six months ended Sep. 30, 2020
20,490Note: Comprehensive income (million yen)

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent%

Million yen

%

(6.7)
(2,588)2,832(8.9)(2,902)(2,817)Six months ended Sep. 30, 2021:
2,070 (-%)
Six months ended Sep. 30, 2020:(3,085) (-%)%

Million yen%

Million yen

2,009(3,067)-

Net income per share Diluted net income per share
Yen

Yen

Six months ended Sep. 30, 2021
54.38
53.87
Six months ended Sep. 30, 2020
(88.52)
Note: SRS Holdings has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ)
Statement No. 29, March 31, 2020) at the beginning of the first quarter of the current fiscal year. The figures for the six months
ended September 30, 2021 are after the application of this accounting standard.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

As of Sep. 30, 2021
33,70913,49839.3
As of Mar. 31, 2021
31,002
9,990
31.5
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2021: 13,242
As of Mar. 31, 2021: 9,778
Note: SRS Holdings has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) at the
beginning of the first quarter of the current fiscal year. The figures as of September 30, 2021 are after the application of thisaccounting standard.

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2021
0.00
Fiscal year ending Mar. 31, 2022
0.00
Fiscal year ending Mar. 31, 2022
(forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

0.00

0.00

-

0.00

0.00

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

Operating profit%

Million yen%(1,100)
Full year
51,00016.7
Note: Revisions to the most recently announced consolidated earnings forecasts: None

Million yen%

Million yen%(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
(2) Application of special accounting methods to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:
None4) Restatements:
None
Note: Please see “2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly Consolidated
Financial Statements (Changes in Accounting Policies)” on page 10 of the attachments for further
information.
(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of period (including treasury shares)
As of Sep. 30, 2021:
38,122,484 shares
As of Mar. 31, 2021:
36,158,884 shares
2) Number of treasury shares at the end of period
As of Sep. 30, 2021:
119,343 shares
As of Mar. 31, 2021:
119,343 shares
3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2021:
36,942,569 shares
Six months ended Sep. 30, 2020:
34,650,841 shares* This report is not subject to quarterly review 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 the Second Quarter of FY3/22

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

4(3) Explanation of Cash Flows

4(4) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Six-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Six-month Period8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10(Going Concern Assumption)

10(Changes in Accounting Policies)

10(Additional Information)

10(Notes to Consolidated Statement of Income)11(Significant Changes in Shareholders’ Equity)

11(Changes in Significant Subsidiaries during the Period)

12(Segment and Other Information)

12

1

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
1) Consolidated performance

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

First six months of FY3/21(Apr. 1, 2020 – Sep. 30, 2020)
YoY change
YoY change
Results(Amount)(%)
20,490(1,997)(8.9)(2,902)(3,343)(2,817)(3,360)(3,067)(3,275)-(Millions of yen)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)
YoY change
YoY change
Results(Amount)(%)
19,114(1,375)(6.7)(2,588)
313
2,832
5,650
2,009

5,076

-

The business climate remained challenging during the first half of the current fiscal year because the impact of the
COVID-19 pandemic has continued since last year. Restaurant business in Japan had to reduce operating hours
and people limited outings to only necessary errands, resulting in a decline in the number of people visiting storesand restaurants. The SRS Group remains committed to accomplishing the goals of the new medium -term businessplan by taking actions based on the plan’s goals of achieving a rapid recovery from the impact of the pandemic
and making current businesses more profitable. Furthermore, all activities are based on our philosophy of“contributing to society through food” along with measures to ensure the safety of our employees and customers
during the pandemic. Major initiatives during the first half included measures for meeting the increasing takeout
and delivery demand and continuous activities for reducing operating expenses. A number of activities during thefirst half were used to reflect changes in life styles caused by the pandemic. One initiative was the opening
Sumibiyaki Himono Teishoku Shinpachi Shokudo (Hankyu Umeda Store), our first restaurant created by changing
the format of a Meshiya Miyamoto Munashi restaurant, which is a format used primarily in urban locations. Anotherinitiative was the opening of the first Sato Marché restaurant (Kawachi-Kosaka Store), which uses a new format
targeting the market for prepared meals that are taken home. KAZOKUTEI Co., Ltd. started operating theKinshuko Service Area of the Akita Expressway and the Shiwa Service Area of the Tohoku Expressway. Overall,the SRS Group is taking numerous actions that reflect market conditions during the pandemic and the outlook forthe business climate after the pandemic ends.
Sales in the first half of the current fiscal year were lower than one year earlier because of reduced operating hours
caused by declarations of states of emergency and by numerous measures for safety during the pandemic. Operating
loss was improved by 313 million yen from one year earlier by lowering personnel, utility and other expenses.
However, there was an operating loss in the first half because sales were far below the level prior to the pandemic.
We posted an ordinary profit and profit attributable to owners of parent following the losses one year earlier
because of the receipt of a pandemic cooperation payment and other pandemic -related payments totaling 5,397
million yen, which was classified as non-operating income.

2FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22

2) Opening and closure of restaurants(Number of restaurants)
FY3/21
Newly
Second quarter of
No. of restaurants
Closed(As of Mar. 31,
openedFY3/22planned to openName
restaurants
2021)
restaurants(As of Sep. 30, 2021)
during FY3/22
Washoku Sato
206 (-)1 (-)
1 (-)
206 (-)
3
Kazokutei*
68 (8)- (-)
1 (-)
67 (8)
0
Nigiri Chojiro*
65 (-)1 (-)- (-)
66 (-)
3
Tokutoku
68 (55)- (-)3(3)
65 (52)
1
Tendon Tempura Honpo Santen
44 (1)- (-)- (-)
44 (1)
1
Meshiya Miyamoto Munashi
41 (2)- (-)
1 (-)
40 (2)
0
Katsuya39 (14)- (-)- (-)
39 (14)
3
Sushi delivery business
10 (4)- (-)- (-)
10 (4)
0
Himawari/Sabo-Himawari
9 (-)
- (-)
- (-)
9 (-)
0
Karayama
4 (-)
2 (-)
- (-)
6 (-)
3
M&S FC Business*
19 (-)1 (-)
1 (-)
19 (-)
0
Others16 (-)3 (-)
1 (-)
18 (-)
4
Domestic total
589 (84)
8 (-)
8 (3)
589 (81)18
Overseas stores
20 (13)1 (1)1 (-)
20 (14)
9
Worldwide total
609 (97)
9 (1)
9 (3)
609 (95)
27
Note: Numbers in parentheses are franchised restaurants (domestic) and joint venture restaurants (overseas).
* Kazokutei includes Kashunan, Sanpoan, Kazokuan, Kyoshun, and Kyosai restaurants.
* Nigiri Chojiro includes CHOJIRO restaurants.
* M&S FC Business is the total number of stores operated by M&S FOODSERVICE CO., LTD. in the Popolamama, Mister
Donut, Doutor Coffee, Oogamaya and Shinpachi Shokudo restaurants.

3) Other measures
To recover quickly from the pandemic downturn, Washoku Sato restaurants conducted several limited time only
campaigns to increase eat-in sales. Events included a Hakata Mentaiko Fair, featuring an original mentaiko(marinated cod roe) developed with a producer of mentaiko, and a Summer Special Price Campaign. To m eet thegrowing demand for the delivery of food, these restaurants enlarged the lineup of takeout items and continued toincrease the number of restaurants with a delivery service. For raising the frequency of customer visits, Washoku
Sato is continuing to work on increasing the number of people registered on its official app. In addition, restaurants
in the Kansai region are using Koshihikari rice grown in the Tanba area and selling this rice in stores to support
rice growers during the pandemic.
Tendon Tempura Honpo Santen restaurants conducted a Summer Tendon (shrimp tempura rice bowl) Campaign
with this popular menu item priced at only 390 yen. There was also a One Extra Shrimp Campaign and special
menu items like Stamina Niku (Meat) Tendon and Teriyaki Tsukimi Tendon that target young people. All of these
activities are aimed at bringing in new customers and giving customers reasons to visit these restaurants more
often.
To celebrate its 20th anniversary, Nigiri Chojiro restaurants added menu items with seasonal ingredients, such as
kinki (a type of rockfish) and Kinka iwashi (mackerel) from Miyagi prefecture. Restaurants also featured special
weekend-only menu items using high-end ingredients like premium sea urchins and striped bonito. In addition tomeasures to bring customers back more often, Nigiri Chojiro restaurants continued marketing activities for takeout
items to raise sales in this category. In another step to raise sales, the number of restaurants accepting internet
orders was increased.
Kazokutei, Tokutoku restaurants continued to place priority on expanding the selection of takeout items andconducting limited time only campaigns as operating hours were reduced and people stayed home during the
pandemic. To add new customer segments to the base of regular customers and bring customers in more often,these restaurants are continuing to concentrate on increasing the number of LINE official account registrations.
Kazokutei restaurants held limited time only events: the Summer Big Shrimp Fair an d the Shikoku Local Grower
Support Fair. To increase takeout sales, restaurants started selling Shrimp Tentojidon (rice with a shrimp/egg
topping) and Aki Shirasu Oroshi udon (udon noodles topped with fish and grated radish) together as a single menu
item and enhanced the takeout menu in other ways. Tokutoku restaurants held a limited time only Stamina Fair andTsukemen (dipping ramen) Fair. These restaurants also targeted the growing volume of takeout demand by addinga menu item that an entire family can enjoy: udon dishes with three types of bukkake udon ( cold broth over chilled
3FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22

udon noodles with a variety of toppings).
To attract new customers, Meshiya Miyamoto Munashi restaurants added a limited time only menu that included
Pacific saury from Japan, deep-fried oysters from Hiroshima and other dishes. In addition, more menu items wereadded for the takeout and delivery categories and hours for selling these items were extended in order to raisetakeout and delivery sales.
To attract new customers, Katsuya restaurants held special events for limited times that included the Tori Gaprao(a spicy Thai sauce) Chicken Katsu Fair and the Tartar Sauce Chicken Katsu and Karaage Fair. Another highlightof the first half was a Full Power Support Festival with four popular menu items discounted 150 yen for both eat in and takeout orders.
(2) Explanation of Financial Position
Total assets at the end of the second quarter of the current fiscal year increased 2,706 million yen from the end of
the previous fiscal year to 33,709 million yen.
Current assets increased 2,153 million yen from the end of the previous fiscal year to 16,696 million yen. This was
mainly due to increases of 1,649 million yen in accounts receivable-other and 940 million yen in cash and deposits.
Non-current assets increased 565 million yen from the end of the previous fiscal year to 16,841 million yen. Thiswas primarily due to increases of 357 million yen in other, net under property, plant and equipment and 91 million
yen in investment and other assets.
Current liabilities decreased 159 million yen from the end of the previous fiscal year to 6,849 million yen. Thiswas mainly due to an increase of 584 million yen in income taxes payable and decreases of 333 million yen inaccounts payable-trade, 127 million yen in current liabilities and others and 105 million yen in accounts payableother.
Non-current liabilities decreased 641 million yen from the end of the previous fiscal year to 13,361 million yen.
This was mainly due to decreases of 467 million yen in bonds payable and 456 million yen in long-term borrowings
and an increase of 267 million yen in non-current liabilities and others.
Net assets were 13,498 million yen, an increase of 3,508 million yen from the end of the previous fiscal year.
(3) Explanation of Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) increased 940 million yen from the end of the previous fiscal
year to 10,371 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 1,528 million yen, compared with 3,240 million yen used in thesame period of the previous fiscal year. This was mainly due to a profit before income taxes of 2,793 million yen,
an increase in accounts receivable-other of 2,043 million yen and depreciation of 643 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 906 million yen, compared with 785 million yen used in the same periodof the previous fiscal year. This was mainly due to payments of 765 million yen for the purchase of property, plantand equipment and payments of guarantee deposits of 167 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 312 million yen, compared with 2,333 million yen provided in thesame period of the previous fiscal year. This was mainly due to proceeds from issuance of shares resulting fromexercise of share acquisition rights of 1,472 million yen, repayments of long-term borrowings of 551 million yen
and redemption of bonds of 547 million yen.
(4) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements
There are no revisions to the full-year consolidated earnings forecast that was announced on May 18, 2021 in theSummary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021.

4

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/21(As of Mar. 31, 2021)(Thousands of yen)
Second quarter of FY3/22(As of Sep. 30, 2021)

AssetsCurrent assets
Cash and deposits

9,431,344

10,371,463

Accounts receivable - trade

1,419,874

1,151,254

Merchandise

45,45547,222

Raw materials and supplies

955,187

794,196

Current portion of long-term loans receivable

74,80873,494

2,190,782

3,840,498

Other

428,784

419,834

Allowance for doubtful accounts(3,519)(1,749)14,542,717

16,696,215

Buildings, net

2,979,162

3,036,718

Land

3,100,507

3,099,407

Other, net

2,137,867

2,495,079

Total property, plant and equipment

8,217,537

8,631,205

Goodwill

666,827

621,872

Other

613,101

693,504

1,279,928

1,315,377

577,686

604,716

Accounts receivable - otherTotal current assets
Non-current assets
Property, plant and equipment

Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable812,627

793,122

Guarantee deposits

4,343,637

4,309,547

Deferred tax assets

771,140

822,631

Other

279,582

371,103

Allowance for doubtful accounts(6,376)(5,942)

Total investments and other assets

6,778,298

6,895,178

16,275,764

16,841,761

184,155

171,248

31,002,637

33,709,225

Total non-current assets
Deferred assets
Total assets

5FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22

FY3/21(As of Mar. 31, 2021)(Thousands of yen)
Second quarter of FY3/22(As of Sep. 30, 2021)

Liabilities
Current liabilities
Accounts payable - trade

1,443,250

1,110,165

Current portion of bonds payable

1,015,000

935,000

Current portion of long-term borrowings

1,018,012

923,028

Accounts payable - other

2,077,275

1,971,392

Income taxes payable

228,048

812,062

Provision for bonuses

357,284

355,142

Other

870,928

743,141

7,009,799

6,849,931

Bonds payable

6,035,000

5,567,500

Long-term borrowings

4,923,900

4,467,382

Deferred tax liabilities for land revaluation

82,947

82,947

Deferred tax liabilities
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Retirement benefit liability

1,814

1,606

27,75327,753

10,17014,860202,536

205,339

Asset retirement obligations

1,247,423

1,254,690

Other

1,471,287

1,739,192

Total non-current liabilities

14,002,834

13,361,270

21,012,633

20,211,202

9,076,110

9,818,192

Capital surplus

6,934,606

3,675,748

Retained earnings(5,390,248)

579,802

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Share capital

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

Total shareholders’ equity

10,500,458

13,953,734

Valuation difference on available-for-sale securities

175,359

197,602

Deferred gains or losses on hedges

52,75538,307(962,306)(962,306)

11,857

15,444(722,333)(710,951)

Accumulated other comprehensive income

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

13,012

8,201

Non-controlling interests

198,866

247,038

9,990,004

13,498,023

31,002,637

33,709,225

Total net assets
Total liabilities and net assets

6FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)(Thousands of yen)First six months of FY3/21
First six months of FY3/22(Apr. 1, 2020 – Sep. 30, 2020) (Apr. 1, 2021 – Sep. 30, 2021)
20,490,027
19,114,890

Net sales
Cost of sales

7,456,279*2 6,723,823

Gross profit

13,033,747

12,391,067*2 15,935,975*2 14,979,878(2,902,227)(2,588,811)

8,324

4,760

Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income

9,145

9,325

Rental income from buildings

73,731

32,437

Foreign exchange gains

337

14,601

Subsidy income*1 27,947*1 5,396,851

Subsidies for employment adjustment*2 73,774*2 33,786

Miscellaneous income

29,39165,744

Total non-operating income

222,652

5,557,508

Interest expenses

61,69164,613

Rental expenses on real estate

40,61928,700Miscellaneous losses

35,67242,454

Total non-operating expenses

137,984

135,768(2,817,558)

2,832,928

Gain on sale of non-current assets

281

2,278

Total extraordinary income

281

2,278

Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

7,114

9,633

Impairment losses

94,10827,233

Loss on store closings

31,235

274

Provision for loss on store closings

35,447-*3 29,012*3 4,909

196,918

42,050(3,014,195)

2,793,156

Loss on COVID-19
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current

56,848779,110

Income taxes - deferred(8,813)(45,071)

Total income taxes

48,034734,038

Profit (loss)(3,062,230)

2,059,117

Profit attributable to non-controlling interests

5,047

50,005

Profit (loss) attributable to owners of parent(3,067,278)

2,009,112

7

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Thousands of yen)First six months of FY3/21
First six months of FY3/22(Apr. 1, 2020 – Sep. 30, 2020) (Apr. 1, 2021 – Sep. 30, 2021)
Profit (loss)(3,062,230)

2,059,117

Valuation difference on available-for-sale securities(3,864)

22,242

Deferred gains or losses on hedges(19,952)(14,448)

775

3,587

(23,042)

11,382(3,085,272)

2,070,499(3,090,320)

2,020,494

5,047

50,005

Other comprehensive income

Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY3/21
First six months of FY3/22(Apr. 1, 2020 – Sep. 30, 2020) (Apr. 1, 2021 – Sep. 30, 2021)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in provision for loss on store closings
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Gain on sale of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from compensation
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Payments of guarantee deposits
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
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease obligations
Redemption of bonds
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9(3,014,195)
840,867
66,562
94,1083,486

2,793,156
643,464
44,954
27,233
2,802(20,140)-

35,447(41,171)(981)(17,469)
61,691
7,114(17,721)46,477(78,367)(13,178)(480,458)(77,284)(206,946)(128,247)(2,940,406)
11,872(63,044)(275,842)
27,321(3,240,099)(2,142)(2,204)(14,085)
64,613(2,278)
9,633
269,571
159,898(2,043,425)(334,724)(159,004)
274,144(122,274)
55,696
1,665,028
9,309(64,649)
18,410(206,743)
107,088
1,528,444(726,830)(63,621)(100,946)(45,696)
146,153(35,909)(765,199)
3,923(107,884)(33,890)(167,916)
103,466(9,500)44,88742,930(3,775)(785,738)

27,429(906,640)

3,500,000(553,728)(65,586)(547,500)(551,699)(60,921)(547,500)-

1,472,502

2,333,184
825(1,691,828)
8,877,696
7,185,868

312,380
5,934
940,119
9,431,344
10,371,463

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition
SRS Holdings has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020) at the beginning of the first quarter of the current fiscal year. Based on this standard, revenue expected tobe received in exchange for the provision of goods and services is recognized when the control of the goods andservices is transferred to customers. As a result, franchise payments, franchise renewal fees and other franchising
revenues received by SRS Group companies that were recognized as sales wh en received are now recognized inequal installments over the entire length of each franchise contract. This change was made because these payments
are received due to the fulfillment of contractual obligations during designated periods.
For the application of the Accounting Standard for Revenue Recognition, in accordance with the transitional
treatment prescribed in Paragraph 84 of this standard, the cumulative effect of the retrospective application of the
new accounting standard, if it is applied prior to the first quarter of the current fiscal year, is added to or subtracted
from retained earnings at the beginning of the first quarter of the current fiscal year. The new standard is thenapplied beginning with this amount of retained earnings.
As a result, net sales, operating profit, ordinary profit and profit before income taxes increased 9,411 thousand yeneach in the first half of the current fiscal year. In addition, the new standard reduced retained earnings at the
beginning of the first half by 40,000 thousand yen.
In accordance with the transitional treatment prescribed in Paragraph 89 -2 of the Accounting Standard for Revenue
Recognition, no reclassification has been made to the prior year ’s consolidated financial statements to conform to
the new presentation.
Application of the Accounting Standard for Fair Value Measurement
SRS Holdings has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4,2019) from the beginning of the first quarter of the current fiscal year, and has applied the new accounting standard
in the Accounting Standard for Fair Value Measurement prospectively in accordance with the transitional treatmentprescribed in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragr aph 44-2 of the
Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effect of theapplication of these standards on the quarterly consolidated financial statements.
Additional Information
The impact of the COVID-19 pandemic on the economy continues to have a significant effect on the sales andearnings of the SRS Group.
Estimates used to determine the impairment of non-current assets, the ability to recover deferred tax assets andother items are calculated by using information that is available when the consolidated financial statements areprepared.
There are no significant changes in the assumptions concerning the effects of the pandemic on sales and earnings
that are in the Securities Report for the fiscal year that ended in March 2021.

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22

Notes to Consolidated Statement of Income*1. Subsidy income
Benefits, etc. paid or expected to be paid by the national government and various local governments due to theimpact of the COVID-19 pandemic are recognized as subsidy income under non-operating income.
*2. Subsidies for employment adjustment
First six months of FY3/21 (Apr. 1, 2020 – Sep. 30, 2020)
Special measures for subsidies for employment adjustment were applied to the absence allowance paid due to theshortened operating hours and temporary closure of stores due to the COVID -19 pandemic. Accordingly, 492,723
thousand yen of 566,498 thousand yen in subsidies received or expected to be received was deducted from salaries
and allowances in selling, general and administrative expenses. The excess amount and expected excess amountof 73,774 thousand yen was classified as subsidies for employment adjustment in non-operating income.
First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
Special measures for subsidies for employment adjustment were applied to the absence allowance paid due to theshortened operating hours and temporary closure of stores due to the effects of the COVID -19 pandemic.
Accordingly, 554,962 thousand yen in subsidies received or expected to be received, 5,481 thousand yen was
deducted from cost of sales and 515,693 thousand yen was deducted from salaries and allowances in selling,
general and administrative expenses. The excess amount and expected excess amount of 33,786 thousand yen wasclassified as subsidies for employment adjustment in non-operating income.
*3. Loss on COVID-19
Following the declaration of a state of emergency due to the COVID -19 pandemic, some of the SRS Group’s stores
were temporarily closed. The fixed costs (depreciation and land rent) incurred during the period of closure havebeen recorded as loss on COVID-19 under extraordinary losses.
Significant Changes in Shareholders’ Equity
I. First six months of FY3/21 (Apr. 1, 2020 – Sep. 30, 2020)
1. Dividend payment
Not applicable.
2. Significant changes in shareholders’ equity
Not applicable.
II. First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
1. Dividend payment
Not applicable.
2. Significant changes in shareholders’ equity
In the first six months of FY3/22, capital stock and capital surplus increased 742,082 thousand yen each due tothe exercise of share acquisition rights.
On May 18, 2021, in accordance with Article 448, Paragraph 1 of the Companies Act, the capital reserve was
reduced by 4,158,254 thousand yen and this amount was transferred to other capital surplus. Subsequently on
the same day, in accordance with Article 452 of the Companies Act, other capital surplus was reduced by
4,000,939 thousand yen and this amount was transferred to retained earnings to offset the retained loss. Thesechanges had no effect on total shareholders’ equity.

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/22

Changes in Significant Subsidiaries during the Period
Not applicable.
There are no changes involving specified subsidiaries. On April 1, 2021, consolidated subsidiary SUNROLLY CO.,LTD. merged (an absorption-type merger) with MIYAMOTO MUNASHI CO., LTD. The surviving company was
MIYAMOTO MUNASHI. SUNROLLY was dissolved following this merger and removed from the consolidated
financial statements in the first quarter of the current fiscal year. In addition, following this merger, MIYAMOTOMUNASHI changed its name to M&S FOODSERVICE CO., LTD.
Segment and Other Information
First six months of FY3/21 (Apr. 1, 2020 – Sep. 30, 2020) and first six months of FY3/22 (Apr. 1, 2021 – Sep. 30,
2021)
Omitted since the SRS Group has only a single business segment of food service business.
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.

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