FOR TRALSLATION PURPOSE ONLYDISCLAIMER
This English translation is only for reference purpose. When there are any discrepancies between original
Japanese version and English translation version, the original Japanese version always prevails.
October 30, 2015

Summary of Financial Results of the Second Quarter of the Fiscal Year Ending March 31, 2016
[Japanese standards] (Consolidated)
Stock Exchange listings: Tokyo
Company name:
SATO RESTAURANT SYSTEMS COMPANY LIMITED
Securities code:
8163
URL: http://www.sato-restaurant-systems.co.jp
Representative:
Yoshitaka Shigesato, President & Chief Executive Officer
Contact:
Masahiko Shigesato, Director & Executive Vice President
Tel: +81-6-7222-3101
Scheduled date of filing of quarterly report:
November 10, 2015
Scheduled date of payment of dividend:
N/A
Preparation of supplementary references regarding quarterly results:
No
Holding the briefing of quarterly results:
Yes (For institutional investors and analysts)(All amounts are rounded down to the nearest million yen)( means decrease)

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

Operating income

Income attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

19,704
18,647

5.7
37.8

504
556

9.5
20.9

428
584

26.7
36.7

182
305

40.3
9.7

2Q FY03/2016
2Q FY03/2015(Note) Comprehensive income

2Q FY03/2016:
2Q FY03/2015:

163 million yen (52.0%)
341 million yen ( 15.2%)

Net profit per share

Diluted net profit per shareYen

2Q FY03/2016
2Q FY03/2015

Yen

－
－

5.88
10.84

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen27,81324,272

14,821
10,45652.9
42.5

442.74365.892Q FY03/2016
FY03/2015(Reference) Shareholders equity: 2Q FY03/2016:
FY03/2015:

14,702 million yen
10,321 million yen

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

FY03/2015
FY03/2016

Year-end

3Q-endYen－－

FY03/2016 (forecasts)

Yen

Total
Yen

Yen

－

5.00

5.00

－

5.00

5.00

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

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

Net sales

Full term

Operating income

Income attributable toowners of parent

Ordinary income

Net profit per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

40,900

7.7

1,260

6.5

1,220

8.3

490

41.7

15.29

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

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

Yes
None
None
None

(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury stock)
2Q FY03/2016:33,209,080 shares
FY03/2015:
28,209,080 shares
2) Number of treasury stock at the end of the period
2Q FY03/2016:
163 shares
FY03/2015:
163 shares
3) Average number of shares outstanding during the period (quarterly cumulative)
2Q FY03/2016:
31,066,059 shares
2Q FY03/2015:
28,208,958 shares* Presentation concerning implementation status of quarterly review procedures
These quarterly financial results are not the subject of a quarterly review procedure based on the Financial
Instruments and Exchange Act, and at the time of disclosing these quarterly financial results, review procedures
regarding the quarterly financial statements based on the Financial Instruments and Exchange Act had not been
completed.
* Explanation regarding appropriate use of the earnings forecast and other special notes
Descriptions about the future such as performance forecasts contained in this document are based on information
currently available to the Company and certain presumptions considered to be reasonable, and therefore actual
business performance and other elements may differ substantially due to various factors.

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

FOR TRALSLATION PURPOSE ONLY
○ Table of Contents: Appendix

1. Qualitative Information regarding the Current Quarter............................................................................................. 2(1) Descriptions regarding operating results.............................................................................................................. 2(2) Descriptions regarding financial position ............................................................................................................ 3(3) Descriptions regarding future prospects such as consolidated performance forecasts ........................................ 3
2. Matters regarding Summary Information (Notes) ..................................................................................................... 4(1) Changes in important subsidiaries during the current consolidated cumulative period ....................................... 4(2) Application of special accounting methods to the preparation of quarterly consolidated financial statement .... 4(3) Changes in accounting principles, changes and restatements of accounting estimates ....................................... 4
3. Summary of Important Information for Going Concern Assumption ....................................................................... 44. Quarterly Consolidated Financial Statements ........................................................................................................... 5(1) Quarterly Consolidated Balance Sheets ............................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Statement of Comprehensive Income ................................. 7
Quarterly Consolidated Statements of Income
For the second quarter consolidated cumulative period................................................................................... 7
Quarterly Consolidated Statement of Comprehensive Income
For the second quarter consolidated cumulative period................................................................................... 8(3) Quarterly Consolidated Cash flow Statement ...................................................................................................... 9(4) Notes on Quarterly Consolidated Financial Statements...................................................................................... 10(Going Concern Assumption)............................................................................................................................. 10(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ............................................... 10(Segment Information, etc.) ............................................................................................................................... 10

1

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

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

Descriptions regarding operating results①

Consolidated performance(million yen;  means decrease)

Actualresults
Net sales

2Q FY03/2015+/- amounts
YoY

+/-%
YoY

Actualresults

2Q FY03/2016+/- amounts
YoY

+/-%
YoY

18,647

5,116

37.8%

19,704

1,057

5.7%

Operating income

556

96

20.9%

504

52

9.5%

Ordinary income

584

156

36.7%

428

156

26.7%

305

26

9.7%

182

123

40.3%

Income attributableowners of parentto

As for consolidated performance of the current second quarter consolidated cumulative period, net sales
increased due to increase in number of restaurants in operation and solid growth of sales of existing restaurants.
Although profitability in the current period was lower as compared to the previous year because of increase in laborcosts and of expenses associated with capital expansion by public offering carried out in June, 2015, the values of
consolidated performance forecasts for the second quarter consolidated cumulative period announced earlier on July
31, 2015 have been eventually exceeded, by virtue of reduction in utilities expenses and of proper control over sales
administrative expenses.
②

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

Category

As of end of
previous
consolidated
fiscal year

Washoku Sato
198 (－)
Sushi-han
14 (－)
Tendon & Tenpura restaurant Santen
12 (－)
Nigiri Chojiro
52 (－)
Nigiri Chujiro
3 (－)
Katsuya23 (11)
Miyakobito
21 (20)Total
323 (31)
NOTE: Numbers in parentheses represent FC restaurants

Newly
openedrestaurants

As of end of thecurrent second
quarter consolidated
fiscal period

Planned to open
during the current
consolidated fiscal
year

1 (－)
－ (－)
5 (－)
－ (－)
－ (－)
6 (3)
－ (－)
12 (3)

199 (－)
14 (－)
17 (－)
52 (－)
3 (－)
29 (14)21 (20)335 (34)

3 (－)
－ (－)
20 (4)4 (－)
3 (－)
16 (10)－ (－)
46 (14)In the current consolidated fiscal year, that is, the second year of our mid-term management plan, total 46 of
directly managed restaurants and FC restaurants are planned to be newly opened; and in practice, during the current
quarter consolidated cumulative period, 1 directly managed "Washoku Sato" restaurant, 5 directly managed "Tendon& Tenpura restaurant Santen" restaurants, and 6 "Katsuya" restaurants comprising 3 directly managed ones and 3 FCs
were newly opened, totaling 12 new restaurants among all categories. It should be noted that in addition to theabovementioned restaurants already in operation, contracts have been executed for opening 12 new restaurants (as of
September 30, 2015).
As part of its overseas development, the Group has adopted an approach to establish joint ventures with local
partner companies, and this year the second restaurant in Indonesia, i.e., "Washoku Sato MOI branch" was opened in
May and the second restaurant in Thailand, i.e., "Washoku Sato AMATA Home Pro branch" was opened in September.
Elsewhere, one of our hot pot restaurants of "Nabe Sato" operated in Taiwan was closed, and therefore 7 restaurants
remain in operation overseas and there are currently 342 restaurants of the Group in total domestically and overseas.
Renovation was carried out at 6 "Washoku Sato" restaurants and 4 "Nigiri Chojiro" restaurants.

2

FOR TRALSLATION PURPOSE ONLY③

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

Other measures

As part of its branding measures, and in order to enhance engagement with each stakeholder and to further
enhance corporate brand value, the Company published a branding document titled "Winning strategies for restaurant
business learning from 'Sato', the No.1 Japanese food family restaurant company with the highest number ofrestaurants" that represents attractiveness of us, sold by GENTOSHA MEDIA CONSULTING, INC. also available tothe public.
For operational measures at "Washoku Sato" restaurants, aiming at improvement in efficiency of cooking
processes and in quality stability, programmable IH cooking heaters have been installed at every restaurant since lastSeptember as alternatives to gas stove cookers, and in addition, new merchandise are offered along with brushing up
pre-existing ones.
At "Nigiri Chojiro" restaurants, the greatest joy is that customer would say "Delicious!", they deliver seasonalmenu making use of fresh raw materials such as Kinmedai (Red snapper) and Tachiuo (Cutlass fish). And in addition,
we organized a WEB-Limited "Chojiro Exam" to gain appreciation in which customers are invited to participate forthe purpose of entertainment and promotion in order to attract more people to visit our "Nigiri Chojiro" restaurants.
It should be noted that the Group is a single segment of food service business and therefore description ofsegmental performance is omitted.
(2)

Descriptions regarding financial position(Status of assets, liabilities and net assets)
Total assets at the end of the current second quarter consolidated fiscal period were 27,813 million yen(increase by 3,541 million yen from the end of the previous consolidated fiscal year).
(Assets)

Current assets were 10,852 million yen (increase by 3,325 million yen from the end of the previous
consolidated fiscal year). This is mainly due to, for example, increase in cash and deposits by 3,153 million yen.
Non-current assets were 16,959 million yen (increase by 216 million yen from the end of the previous
consolidated fiscal year). This is mainly due to, for example, increase in tangible assets - other (net) by 101 million
yen and increase in investments and other assets - other by 100 million yen.
(Liabilities)
Current liabilities were 6,752 million yen (decrease by 532 million yen from the end of the previous
consolidated fiscal year). This is mainly due to, for example, decrease in reserve for bonuses by 154 million yen anddecrease in current liabilities - other by 375 million yen.
Non-current liabilities were 6,239 million yen (decrease by 291 million yen from the end of the previous
consolidated fiscal year). This is mainly due to, for example, decrease in long-term loans payable by 315 million yen.
(Net assets)
Net assets at the end of the current second quarter consolidated fiscal period were 14,821 million yen (increaseby 4,365 million yen from the end of the previous consolidated fiscal year).
(Cash flow status)
Cash and cash equivalents (hereinafter, "business fund") at the end of the current second quarter consolidated
fiscal period were 7,685 million yen (increase by 2,153 million yen from the end of the previous consolidated fiscal
year). Each cash flow status and factors thereof in the current second quarter consolidated fiscal period consolidated
fiscal year are as follows.
(Cash flow from operating activities)
Business fund resulting from operating activities was 49 million yen (whereas it was 871 million yen in thesame period of the previous year). This includes mainly income before income taxes and minority interests of 419
million yen, depreciation of 638 million yen, decrease in accrued consumption taxes by 388 million yen, and income
taxes paid of 273 million yen.
(Cash flow from investment activities)
Business fund used for investment activities was 1,684 million yen (whereas it was 534 million yen in the same
period of the previous year). This includes mainly expense to time deposits of 1,000 million yen and expense byacquiring property, plant and equipment of 424 million yen.
(Cash flow from financial activities)
Business fund resulting from financial activities was 3,713 million yen (whereas 867 million yen was spent in
the same period of the previous year). This includes mainly proceeds from issuance of common stock of 4,313 million
yen, net decrease in long-term loans payable by 302 million yen and dividends paid of 141 million yen.
(3)

Descriptions regarding future prospects such as consolidated performance forecasts

There is no change in consolidated performance forecasts for the full term, as announced in the Summary of
Financial Results on July 31, 2015.
3

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

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

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

(2)

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

(3)

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

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

4

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

FOR TRALSLATION PURPOSE ONLY

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

Previous consolidated
fiscal year
(March 31, 2015)

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

Current second quarter
consolidated fiscal period(September 30, 2015)

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

8,685,404
564,465
37,579703,000
192,523
669,358－

7,526,595

10,852,332

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

2,521,128
4,742,506
2,205,666

9,369,391

9,469,302

1,206,282
822,990

1,161,328
804,4292,029,273

1,965,758

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

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

840,121760,890
3,058,922
394,949
483,744△14,294

Total investments and other assets

5,343,765

5,524,334

16,742,431

16,959,394

3,259

1,954

24,272,286

27,813,681

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

Total non-current assets
Deferred assets
Total assets

5

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

FOR TRALSLATION PURPOSE ONLY

(Thousand yen;  means decrease)

Previous consolidated
fiscal year
(March 31, 2015)

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

Current second quarter
consolidated fiscal period(September 30, 2015)

1,111,667
100,000
2,403,186
1,686,382
297,104
471,966
1,214,125

1,130,850
100,000
2,416,500
1,671,730
277,629
317,089
838,535

7,284,433

6,752,335

50,0004,398,835
289,282
84,71931,403
478,446
1,198,225－
4,083,643
289,282
81,342
29,578492,311
1,263,199

6,530,912

6,239,357

Total liabilities

13,815,345

12,991,692

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

6,361,756
2,810,575
1,535,148△129

8,532,856
4,981,675
1,576,845△129

10,707,350

15,091,248

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

228,418△614,436

225,943△614,436

Total accumulated other comprehensive income△386,018△388,492

135,607

119,232

10,456,940

14,821,988

24,272,286

27,813,681

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

Total shareholders’ equity

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

6

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

FOR TRALSLATION PURPOSE ONLY

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

Previous second quarter
consolidated cumulative period(April 1, 2014
- September 30, 2014)

Current second quarter
consolidated cumulative period(April 1, 2015
- September 30, 2015)

Net sales
Cost of sales

18,647,730
6,358,194

19,704,981
6,745,579

Gross profit

12,289,536

12,959,401

Selling, general and administrative expenses

11,732,551

12,455,178

Operating income

556,984

504,223

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

6,401
8,602
51,021
62,04836,834

6,881
8,938
51,020－25,098

Total non-operating income

164,907

91,938Non-operating expenses
Interest expenses
Rent expenses on real estates
Share issuance cost
Miscellaneous loss

79,512
41,914－
16,33770,85741,32028,261
27,625

Total non-operating expenses
Ordinary income

137,764
584,127

168,064
428,097

4,129

－

4,129

－

8,905
26,084
2,400

8,423
－
－

37,3908,423

Income before income taxes and minority interests

550,866

419,674

Income taxes - current
Income taxes - deferred

196,292
45,153

190,774
62,532

Total income taxes

241,446

253,307

Profit309,420

166,367

3,540△16,374

305,879

182,742

Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Loss on cancellation of rental contracts
Total extraordinary losses

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

7

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

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

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

8

Previous second quarter
consolidated cumulative
period(April 1, 2014
- September 30, 2014)

Current second quarter
consolidated cumulative
period(April 1, 2015
- September 30, 2015)

309,420

166,367

32,113△2,474

32,113△2,474

341,533

163,893

337,993
3,540

180,267△16,374SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

FOR TRALSLATION PURPOSE ONLY
(3) Quarterly Consolidated Cash flow Statement(Thousand yen;  means decrease)

Cash flow from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for directors' retirement benefits
Interest and dividend income
Interest expenses
Loss on valuation of investment securities
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Loss on cancellation of rental contracts
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flow from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Purchase of intangible assets
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments of construction assistance fund receivables
Collection of construction assistance fund receivables
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of finance lease obligations
Redemption of bonds
Proceeds from issuance of common shares
Cash dividends paid
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 the end of period

9Previous second
quarter consolidated
cumulative period(April 1, 2014 September 30, 2014)

Current second
quarter consolidated
cumulative period(April 1, 2015 September 30, 2015)

550,866
626,228
44,954△104,240△1,007－△15,003
79,512
26,084△4,1298,905
2,400△3,27645,023△120,503
215,720△175,589△49,482
1,126,465
8,440△79,155△184,742
871,007419,674
638,871
44,954△154,877△848△1,825△15,819
70,857－－
8,423－△22,632△52,536
19,183△388,473△15,473△164,069
385,408
8,805△72,038△273,122
49,052△425,624
4,239△18,582△90,119△42,663
85,491△65,000
44,211△26,895△534,944△1,000,000△424,319－△21,147△29,930△54,806
42,203△168,000
47,484△75,720△1,684,235

800,000△1,443,463△89,457△50,000－△84,626△867,547
11,465△520,020
5,533,179
5,013,159

1,000,000△1,302,162△106,749△50,000
4,313,938△141,044
3,713,981
74,296
2,153,095
5,532,308
7,685,404

SATO RESTAURANT SYSTEMS COMPANY LIMITED (8163)
Summary of Financial Results of the 2Q FY03/2016

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

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

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

10