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 13, 2022

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
[Japanese GAAP]
Company name: SRS HOLDINGS CO., LTD.
Listing: Tokyo Stock Exchange
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 29, 2022
Scheduled date of payment of dividend:
June 30, 2022
Scheduled date of filing of Securities Report:
June 30, 2022
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, 2022 (April 1, 2021 – March 31, 2022)(1) Consolidated operating results
Net sales

Operating profit

Million yen%

Fiscal year ended Mar. 31, 2022
42,885
Fiscal year ended Mar. 31, 2021
43,707
Note: Comprehensive income (million yen)

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

Million yen

%

(1.9)
(4,635)
2,669(2.1)(3,802)(2,067)
Fiscal year ended Mar. 31, 2022: 1,695 (-%)
Fiscal year ended Mar. 31, 2021: (3,911) (-%)

1,574
(4,067)-

Net income pershare

Million yen%

Million yen

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

Yen

Yen

%

Fiscal year ended Mar. 31, 2022
41.57
41.26
13.2
Fiscal year ended Mar. 31, 2021
(116.47)(36.3)
Reference: Equity in earnings of affiliates (million yen) Fiscal year ended Mar. 31, 2022: Fiscal year ended Mar. 31, 2021: -

%

%

8.0
(6.4)

(10.8)(8.7)

Note: SRS Holdings has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) at the
beginning of the current fiscal year. The figures for the fiscal year ended Mar. 31, 2022 are after the application of this accounting
standard.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Net assets per share

Equity ratio

Million yen

Yen%

As of Mar. 31, 2022
35,492
14,39039.7
354.87
As of Mar. 31, 2021
31,002
9,990
31.5
271.32
Reference: Shareholders’ equity (million yen)
As of Mar. 31, 2022: 14,107
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 current fiscal year. The figures as of Mar. 31, 2022 are after the application of this accounting standard.

(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

4,705(3,532)(1,861)
882

550
3,202

12,834
9,431

Fiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2021

2. Dividends
Dividends per share
1Q-endFiscal year ended Mar. 31, 2021
Fiscal year ended Mar. 31, 2022
Fiscal year ending Mar. 31, 2023
(forecast)

2Q-end3Q-end Year-end

Total

Total
dividends

Dividends to
Dividend
payout ratio net assets ratio(Consolidated) (Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00

-

0.00
5.00

0.00
5.00

0
199

12.0

1.6

-

0.00

-

5.00

5.00

22.6

FOR TRANSLATION PURPOSE ONLY
3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
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%

58,000

35.2

1,200

-

1,100

(58.8)

900(42.8)

Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in thescope of consolidation): None
(2) 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 “4. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial
Statements (Changes in Accounting Policies)” on page 16 of the attachments for further information.
(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of period (including treasury shares)
As of Mar. 31, 2022:
39,872,284 shares
As of Mar. 31, 2021:
36,158,884 shares
2) Number of treasury shares at the end of period
As of Mar. 31, 2022:
119,343 shares
As of Mar. 31, 2021:
119,343 shares
3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2022:
37,881,710 sharesFiscal year ended Mar. 31, 2021:
34,923,094 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Percentages represent year-on-year changes)(1) Non-consolidated operating results
Net sales
Fiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2021

Operating profit

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

16,282
16,534(1.5)(10.3)

820
687

19.4
(22.4)

732
(331)

-

528
(2,591)-

Net income per share
Fiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2021

Diluted net income per share

Yen

Yen

13.95
(74.20)13.85-(2) Non-consolidated financial position
Total assets
Million yen

As of Mar. 31, 2022
As of Mar. 31, 2021
Reference: Shareholders’ equity (million yen)

Net assets
Million yen

32,053
14,47828,751
11,168
As of Mar. 31, 2022: 14,474

Net assets per share

Equity ratio
%

Yen

45.2
364.1138.8
309.54As of Mar. 31, 2021: 11,155* 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 FY3/22

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

4(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(Changes in Accounting Policies)

16(Notes to Consolidated Balance Sheet)

17(Notes to Consolidated Statement of Income)17(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.)

23(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 FY3/22

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

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

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)(Millions of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)
YoY change
YoY change
Results(Amount)(%)
42,885(822)(1.9)(4,635)
(832)
2,669
4,736
-

-

1,574

5,642

-

Sales decreased and the operating loss increased in the fiscal year that ended in March 2022. The main reason wasa continuation of the downturn in the number of customers because of reduced operating hours due to the prolonged
pandemic and a downturn in consumer sentiment caused by the need to limit non-essential and non-urgent outings
and the emergence of new COVID variants. Despite this challenging business climate, ordinary profit and profit
attributable to owners of parent improved from the previous fiscal year’s results and became profitable. This wasdue to the receipt of a pandemic cooperation money and other pandemic-related money totaling 7,264 million yen
as non-operating income.
The SRS Group remains committed to accomplishing the goals of the new medium-term business plan 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 tosociety through food” along with measures to ensure the safety of our employees and customers during the
pandemic. Major initiatives included measures for meeting the increasing takeout and delivery demand andcontinuous activities for reducing operating expenses. In addition, there were several activities to meet customers’
needs as the pandemic alters their lifestyles. We opened Nigiri Chojiro restaurants that are combined with a Takuhai
Nigiri Chojiro, which specializes in the home-delivery of sushi. We opened the first Sato Marché restaurant(Kawachi-Kosaka Store), which uses a new format targeting the market for prepared meals that are taken home.
At Meshiya Miyamoto Munashi restaurants, where sales have decreased along with the drop in the number offoreign tourists, some locations were converted to Sumibiyaki Himono Teishoku Shinpachi Shokudo restaurants.
At KAZOKUTEI Co., Ltd., the Expressway Business Department was established to increase the focus of thiscompany on business opportunities at expressway service areas. During the fiscal year that ended in March 2022,
four service areas were opened, raising the total to five locations throughout Japan. Overall, there were manyactions at the SRS Group during the fiscal year that reflect market conditions during the pandemic and the outlook
for the business climate after the pandemic ends.
2) Opening and closure of restaurants
Name
Washoku Sato
Kazokutei*
Nigiri Chojiro*
Tokutoku
Tendon Tempura Honpo Santen
KatsuyaMeshiya Miyamoto Munashi

Sushi delivery business
Himawari/Sabo-Himawari
Karayama

M&S FC Business*
OthersDomestic total
Overseas stores
Worldwide total

FY3/21(As of Mar. 31,
2021)
206 (-)
68 (8)
65 (-)
68 (55)44 (1)
39 (14)41 (2)
10 (4)
9 (-)
4 (-)
19 (-)
16 (-)
589 (84)
20 (13)609 (97)

Newly opened
restaurants

Closedrestaurants

2 (-)
1 (-)
2 (-)
- (-)
- (-)
2 (-)
- (-)
1 (-)
- (-)
2 (-)
2 (-)
5 (-)
17 (-)3 (3)
20 (3)

1 (-)
2 (-)
1 (-)
5 (5)
- (-)
- (-)
3 (-)
- (-)
- (-)
- (-)
1 (-)
3 (-)
16 (5)
2 (-)
18 (5)

2(Number of restaurants)
FY3/22
Restaurants(As of Mar. 31,
planned to open
2022)
during FY3/22
207 (-)
3
67 (8)
066 (-)
3
63 (50)1
44 (1)
1
41 (14)3
38 (2)0
11 (4)
0
9 (-)
0
6 (-)
3
20 (-)
0
18 (-)
4590 (79)18
21 (16)9611 (95)
27

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

Note: Numbers in parentheses include franchised, leased-band and joint venture restaurants.
* 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.
* Restaurant openings and closings include three locations that were converted to a different brand.

3) Other measures
To improve earnings following the pandemic downturn, Washoku Sato restaurants started promotional activities
using TV commercials, internet ads, newspaper inserts and other media with the main goal of attracting young
people and new customers. Promotions feature Nagisa Shibuya, a member of a well-known all-female idol group,as the “Washoku Sato Ambassador.” In a move to increase eat-in sales, Washoku Sato restaurants held several
limited time only campaigns featuring menu items using local and seasonal ingredients. Two examples are the
Hokkaido Fair and Soshun (“early spring) Fair. To meet the continuing increase in takeout and delivery demand,
Washoku Sato stepped up activities that reflect customers’ needs, such as the half-price sale of takeout tendon(shrimp tempura rice bowl) for a limited time.
To give customers reasons to visit more often, Tendon Tempura Honpo Santen restaurants held a campaign using
LINE (a popular social media app in Japan), a New Year Appreciation Fair, and a Santen Day! Customer
Appreciation Fair. Restaurants also featured menu items incorporating seasonal ingredients such as Japanese smelt
and sakura shrimp and menu items with meat miso and pork for young people. To attract new customers, theserestaurants used TV commercials featuring a popular comedian.
To meet the increasing demand in the takeout and delivery categories, in “Nigiri Chojiro” restaurants, we changed
the name of some “Nigiri Chujiro” restaurants exclusively for the delivery of sushi to “Takuhai Nigiri Chojiro”.
The aim is to use the powerful Nigiri Chojiro brand for more growth in the meal delivery sector. Restaurants also
sold Celebration Sushi Boxes during the New Year season, Fukujumaki, which has generous portions of herringroe, eel and other seafood and is sold during the Setsubun season (early February), and other special products forconstantly promoting sales of takeout items. Raising takeout and delivery sales was the goal of all these activities.
To celebrate its 20th anniversary, Nigiri Chojiro sold sushi with Kuruma Shrimp and thick scallops and a dessert
item called Haru no Sosaku Dorayaki (special red bean filled pancakes) as part of measures for a recovery of eatin sales.
To attract new customers, Kazokutei, Tokutoku restaurants continued to place priority on conducting limited time
only campaigns. To add new customer segments to the base of regular customers and bring customers in more
often, these restaurants continued to concentrate on increasing the number of LINE (a social media app) official
account registrations.
Kazokutei restaurants sold Oyster Udon in a Pot, featuring oysters, a taste of winter, for a limited time and held aEchigo Niigata Melting Snow Blessing Fair that featured menu items with ingredients from Niigata prefecture.
For increasing takeout sales, these restaurants used numerous measures to meet the rising demand in the takeout
category, such as by selling a Shrimp Tendon and Sansai Udon Double Bento for customers looking for a menu
item with large volume.
Tokutoku restaurants sold several winter-only menu items such as the popular Udon in a Pot and Udon with Crab
Eggs and Ankake (thick sauce). During the limited time only Lifestyle Support Takeout Fair, these restaurants soldkatsudon and a Katsudon Udon Double Bento at low prices and used other measures to increase takeout sales.
To attract new customers, Meshiya Miyamoto Munashi restaurants offered a number of menu items for a limited
time, such as a Gyusukinabe Teishoku and Very Spicy Miso Korean Stew Teishoku. With the aim of raising thefrequency of customer visits, these restaurants used LINE for the dissemination of information, distributed
members-only discount coupons and conducted other promotional activities to attract more customers. Restaurants
also held takeout and delivery campaigns throughout the fiscal year.
To attract new customers, Katsuya restaurants held a Demi Chicken Katsu Fair and a Roast Katsu and Pork Stamina
Yakiniku Fair for the sale of limited time only menu items. There was also a Roast Katsu and Hirekatsu (Pork
Fillet) Festival. Four popular menu items were sold at reduced prices for both eat-in and takeout orders.
Segment information is not provided because the SRS Group has only a single segment of food service business.

3FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(2) Financial Position
Total assets at the end of the current fiscal year increased 4,490 million yen from the end of the previous fiscal
year to 35,492 million yen.
Current assets increased 3,322 million yen from the end of the previous fiscal year to 17,865 million yen. This was
mainly due to an increase of 3,403 million yen in cash and deposits, a decrease of 335 million yen in accounts
receivable-other and an increase of 304 million yen in accounts receivable-trade.
Non-current assets increased 1,192 million yen from the end of the previous fiscal year to 17,468 million yen. Thiswas primarily due to increases of 377 million yen in deferred tax assets, 309 million yen in leased assets, net and292 million yen in buildings and structures, net.
Current liabilities increased 1,566 million yen from the end of the previous fiscal year to 8,576 million yen. Thiswas mainly due to increases of 514 million yen in income taxes payable, 422 million yen in accounts payableother and 352 million yen in current liabilities and others.
Non-current liabilities decreased 1,476 million yen from the end of the previous fiscal year to 12,526 million yen.
This was mainly due to decreases of 935 million yen in bonds payable and 913 million yen in long-term borrowings
and an increase of 332 million yen in lease obligations.
Net assets were 14,390 million yen, an increase of 4,400 million yen from the end of the previous fiscal year.
(3) Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) increased 3,403 million yen from the end of the previous fiscal
year to 12,834 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 4,705 million yen, compared with 3,532 million yen used in theprevious fiscal year. This was mainly due to a profit before income taxes of 2,188 million yen, depreciation of
1,471 million yen, impairment loss of 471 million yen and income taxes paid of 452 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,861 million yen, compared with 882 million yen provided in theprevious fiscal year. This was mainly due to payments of 1,746 million yen for the purchase of property, plant andequipment, proceeds from collection of guarantee deposits of 249 million yen and payments of guarantee deposits
of 181 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 550 million yen, compared with 3,202 million yen provided in theprevious fiscal year. This was mainly due to proceeds from issuance of shares resulting from exercise of shareacquisition rights of 2,733 million yen, repayments of long-term borrowings of 1,018 million yen and redemptionof bonds of 1,015 million yen.
(Reference) Trends in cash flow indicators
FY3/18
FY3/19FY3/20FY3/21
FY3/22Equity ratio (%)
45.8
48.3
38.2
31.5
39.7
Equity ratio based on market value (%)
103.2
112.3
94.4
99.9
90.4
Interest-bearing debt to cash flow ratio (years)
5.1
4.2
9.7
2.7
Interest coverage ratio (times)
15.5
19.3
12.4
36.6
Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest payments
Notes: 1. Market capitalization is calculated by the number of shares outstanding at the end of the period, excluding treasury
shares.
2. Operating cash flows are the figures for operating cash flows in the consolidated statement of cash flows.
3. Interest-bearing debt includes all debts on the consolidated balance sheet that incur interest.

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

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) Outlook
In the fiscal year ending in March 2023, we expect the business climate to remain extremely difficult. There arestill no signs of the end of the pandemic and the cost of food ingredients and energy is high because of the Ukraine
crisis and weaker yen. During the next fiscal year, there will be many initiatives aimed at accomplishing the goalsof the new medium-term business plan, which started in the fiscal year that ended in March 2022. Major goals area rapid recovery from the impact of the pandemic and making current businesses more profitable based on market
conditions while living with the pandemic and after the pandemic ends. The forecast for the fiscal year ending inMarch 2023 assumes that there will be no reductions in operating hours due to the pandemic. Based on informationthat is currently available and on the current business climate, we forecast sales of 58,000 million yen, operating
profit of 1,200 million yen, ordinary profit of 1,100 million yen and profit attributable to owners of parent of 900
million yen.
Medium-term Business Plan
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

FY3/22 Results and Forecast
FY3/22(Actual)FY3/23(Forecast for resultsof operations)

Net sales (Millions of yen)

42,88558,000Ordinary profit (Millions of yen)

2,669

1,100

611

637

Number of restaurants(Financial measures)
Following the exercise of share acquisition rights, which was issued on November 27, 2020, a total of 2,746 million
yen had been procured in FY3/22. As of March 31, 2022, cash and cash equivalents totaled 12,834 million yen. In
addition, there is a committed credit line totaling 2,981 million yen. As a result, we believe there is sufficientliquidity.
(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. We use retained earnings for new restaurants,
redecoration of existing restaurants and other activities aimed at strengthening our business operations. In
accordance with these policies, we have taken steps for the purposes of improving our business processes andincreasing financial soundness in order to become more profitable. Comprehensively taking into consideration
future business prospects and retained earnings, we have determined that the dividend for the end of the period
will be 5.00 yen per share. For the fiscal year ending in March 2023, we plan to pay a year-end dividend of 5.00
yen per share.
As specified under the Articles of Incorporation decided at the 43rd annual meeting of shareholders held on June29, 2011, “Pursuant to Article 459, Paragraph 1 of the Companies Act of Japan, retained earnings can be directed
toward dividend payment upon resolution of the board of directors.”
The dividend from retained earnings for the current fiscal year is as follows:
Date of resolution

Total amount of dividend(Thousands of yen)

Board of Directors meeting on
May 13, 2022

199,359

5

Dividend per share
(Yen)
5.00

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

2. Corporate GroupOur group is composed of the Company and its seven 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., M&S FOODSERVICE CO., LTD., SATO ・ARCLAND FOOD SERVICE CO.,LTD., and SRS TAIWAN COMPANY LIMITED operate restaurants that serve mainly
Japanese food.
Others:SPACE SUPPLY CO., LTD. is primarily involved in the leasing of real estate.
Note: On April 1, 2022, SRS Holdings (surviving company in an absorption-type merger) and SPACESUPPLY CO., LTD. (dissolving company in an absorption-type merger) merged through anabsorption-type merger.
(2) Systematic diagram of the business
Customers

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

M&S FOODSERVICE 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 FY3/22

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 FY3/22

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/21(As of Mar. 31, 2021)(Thousands of yen)
FY3/22(As of Mar. 31, 2022)

AssetsCurrent assets
Cash and deposits

9,431,344

12,834,637

Accounts receivable - trade

1,419,874

1,724,620

Merchandise

45,45563,026

Raw materials and supplies

955,187

807,469

Current portion of long-term loans receivable

74,80872,7852,190,782

1,855,168

Other

428,784

509,822

Allowance for doubtful accounts(3,519)(2,184)

14,542,717

17,865,346

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

23,146,838

23,569,967

Accumulated depreciation*3 (19,802,111)*3 (19,932,847)

Buildings and structures, net*2 3,344,727*2 3,637,120

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

857,022889,202*3 (727,713)*3 (735,745)

129,308

153,457*2,*4 3,100,507*2,*4 3,099,407

1,951,971

2,094,115*3 (1,367,229)*3 (1,199,720)

584,741

894,394

22,37731,815

6,066,311

6,788,498(5,030,437)(5,523,726)

1,035,873

1,264,772

8,217,537

9,080,968

Goodwill

666,827

576,917

Other

613,101

658,749

1,279,928

1,235,667*1,*2 577,686*1,*2 621,780

812,627

757,208

Guarantee deposits

4,343,637

4,322,291

Deferred tax assets

771,140

1,148,442

Other279,582

307,099

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

Allowance for doubtful accounts(6,376)(4,923)

Total investments and other assets

6,778,298

7,151,899

16,275,764

17,468,535

Total non-current assets
Deferred assets
Total assets

8

184,155

158,91031,002,637

35,492,792

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

FY3/21(As of Mar. 31, 2021)(Thousands of yen)
FY3/22(As of Mar. 31, 2022)

Liabilities
Current liabilities
Accounts payable - trade

1,443,250

1,659,167

Current portion of bonds payable

1,015,000

935,000*2 1,018,012*2 913,044

93,434

201,579

Current portion of long-term borrowings
Lease liabilities

2,077,275

2,499,651

Income taxes payable

Accounts payable - other

228,048

742,630

Provision for bonuses

357,284

495,114

Other
Total current liabilities

777,493

1,130,103

7,009,799

8,576,292

6,035,000

5,100,000

Non-current liabilities
Bonds payable
Long-term borrowings*2 4,923,900*2 4,010,856

Lease liabilities

1,159,670

1,492,253

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

1,814

-

27,75327,753

10,17019,420202,536

211,402

1,247,423

1,243,340

311,617

338,121

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

14,002,834

12,526,094

21,012,633

21,102,386

9,076,110

10,454,085

Capital surplus

6,934,606

4,311,642

Retained earnings(5,390,248)

145,310

Total liabilities
Net assets
Shareholders’ equity
Share capital

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

Total shareholders’ equity

10,500,458

14,791,028

Valuation difference on available-for-sale securities

175,359

213,260

Deferred gains or losses on hedges

52,75549,524*4 (962,306)*4 (962,306)

11,857

15,793(722,333)(683,728)

Accumulated other comprehensive income

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

13,012

3,914

Non-controlling interests

198,866

279,191

Total net assets
Total liabilities and net assets

99,990,004

14,390,406

31,002,637

35,492,792

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(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 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 losses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Compensation income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Impairment losses
Loss on store closings
Loss on COVID-19
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

10(Thousands of yen)
FY3/22
FY3/21(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
43,707,743
42,885,172
15,540,206*4 15,163,164
28,167,537
27,722,007
205,060
9,320*4 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)

175,243
9,250*4 14,281,639
329,502
485,943
1,515,934
171,825
1,835,397
1,738,748
5,610,131
868,152
1,449,402
3,796,494
89,90932,357,574(4,635,567)

13,37918,370129,606338*5 1,721,484*4 94,557
85,766
2,063,503

9,278
18,97064,875
18,472*5 7,264,316*4 46,704
148,655
7,571,272

127,229
76,020124,657
327,907(2,067,390)

128,652
45,411
92,145266,2092,669,495*3 502,179
62,638564,817*3 1,694
22,57324,267*1 19,773*2 2,556,421
102,965*6 29,012
2,708,172(4,210,745)
349,960(537,884)(187,923)(4,022,822)
44,684(4,067,507)*1 22,293
5,453*2 471,355
1,563*6 4,909
505,575
2,188,188915,684(384,274)
531,410
1,656,778
82,157
1,574,620

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(Consolidated Statement of Comprehensive Income)(Thousands of yen)
FY3/22
FY3/21(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
Profit (loss)(4,022,822)

1,656,778

Valuation difference on available-for-sale securities

90,43437,900

Deferred gains or losses on hedges

20,024(3,231)

786

3,936

* 111,245* 38,604(3,911,577)

1,695,383(3,956,261)

1,613,225

44,684

82,157

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

11

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(3) Consolidated Statement of Changes in Equity
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
Loss attributable to ownersof parent
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
Deferreddifference
gains oron availablelosses on
for-salehedgessecurities
Balance at
beginning of
periodChanges during
periodIssuance of newsharesLoss attributableto owners ofparentNet changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period84,92532,731

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment(962,306)

11,070Total
Share
Nonaccumulated acquisition controllingotherrightsinterests
comprehensive
income(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

12

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

FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

9,076,110

Capital surplus

Retained earnings

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

Total shareholders’equityTreasury shares(120,009)

10,500,458(40,000)
9,076,110

6,934,606

1,377,975

1,377,975(5,430,249)(40,000)(120,009)

10,460,457

Changes during period
Issuance of new shares

2,755,951

Deficit disposition
Profit attributable to ownersof parent
Net changes in items otherthan shareholders’ equity
Total changes during period(4,000,939)

4,000,939-

1,574,620

1,574,620

1,377,975(2,622,963)

5,575,559-

4,330,571

Balance at end of period

10,454,085

4,311,642

145,310(120,009)

14,791,028(Thousands of yen)

Accumulated other comprehensive income
Valuation
Deferreddifference
gains oron availablelosses on
for-salehedgessecurities
Balance at
beginning of
periodCumulative
effects ofchanges inaccounting
policies
Restated balance
Changes during
periodIssuance of newsharesDeficitdisposition
Profit attributableto owners ofparentNet changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period175,359

175,359

52,75552,755

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment(962,306)

11,857(962,306)

11,857

Total
NonShareaccumulated acquisition controlling
otherinterests
rightscomprehensive
income(722,333)(722,333)

13,01213,012

Total net
assets

198,866

9,990,004(1,833)(41,834)

197,033

9,948,170

2,755,951
1,574,620

37,900(3,231)-

3,936

38,604(9,097)

82,157

111,665

37,900(3,231)-

3,936

38,604(9,097)

82,157

4,442,236

213,260

49,524(962,306)

15,793(683,728)

3,914

279,191

14,390,406

13FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/21
FY3/22(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill(4,210,745)

2,188,188

1,742,330

1,471,841

133,125

89,909Impairment losses

2,556,421

471,355

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

137,830

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(10,727)(2,788)(20,140)-

12,8118,865Interest and dividend income(31,749)(28,248)

Interest expenses

127,229

128,652

Compensation income(62,638)(22,573)

Gain on sale of non-current assets(502,179)(1,694)

19,77322,293-

5,453(228,372)(302,992)(5,422)

131,247

Loss on retirement of non-current assets
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other(1,627,044)

199,320

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

212,494

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

398,256

Increase (decrease) in accrued consumption taxes(408,146)(175,566)

Decrease (increase) in consumption taxes refund receivable(152,276)

51,488Other, net(69,659)

135,979

Subtotal(3,023,816)

5,119,315

Interest and dividends received
Interest paid
Proceeds from compensation

21,131

18,926(128,501)(128,763)

15,932

40,983

Income taxes paid

(444,885)(452,648)

Income taxes refund

27,339107,195(3,532,800)

4,705,007

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment(1,020,083)(1,746,315)

Proceeds from sale of property, plant and equipment

1,824,814

4,439

Purchase of intangible assets(124,855)(134,143)

Payments for asset retirement obligations(218,364)(32,090)

Payments of guarantee deposits(81,100)(181,657)

Proceeds from refund of guarantee deposits

435,588249,287

Payments of construction assistance fund receivables
Proceeds from collection of construction assistance fundreceivables
Other, net(35,909)(19,000)

87,69883,337

15,035(84,926)

Net cash provided by (used in) investing activities

882,823(1,861,069)

14

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(Thousands of yen)
FY3/21
FY3/22(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
Cash flows from financing activities
Proceeds from long-term borrowings

4,500,000-

Repayments of long-term borrowings(1,177,214)(1,018,399)

Repayments of finance lease obligations
Redemption of bonds
Proceeds from issuance of share acquisition rights
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(114,768)(149,921)(1,095,000)(1,015,000)

9,764

-

1,079,611

2,733,605

3,202,392

550,284

1,231

9,071

Net increase (decrease) in cash and cash equivalents

553,647

3,403,293

Cash and cash equivalents at beginning of period

8,877,696

9,431,344

Cash and cash equivalents at end of period

9,431,344

12,834,637

15

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(5) Notes to 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 current fiscal year. Based on this standard, revenue expected to be received in
exchange for the provision of goods and services is recognized when the control of the goods and services istransferred to customers. As a result, franchise payments, franchise renewal fees and other franchising revenues
received by SRS Group companies that were recognized as sales when received are now recognized in equal
installments over the entire length of each franchise contract. This change was made because these payments arereceived 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 current fiscal year, is added to or subtracted from retained
earnings at the beginning of the current fiscal year. The new standard is then applied beginning with this amountof retained earnings.
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.
As a result, compared to before the application of the Accounting Standard for Revenue Recognition, deferred tax
assets increased 3,938 thousand yen, other current liabilities increased 27,443 thousand yen, retained earnings
decreased 20,639 thousand yen and non-controlling interests decreased 2,866 thousand yen in the consolidatedbalance sheet in the current fiscal year. In the consolidated statement of income in the current fiscal year, net sales,
operating profit, ordinary profit and profit before income taxes increased 19,434 thousand yen each, profit
increased 18,329 thousand yen and profit attributable to owners of parent increased 19,361 thousand yen
In the consolidated cash flow statements in the current fiscal year, net profit before income taxes increased 19,434
thousand yen and other included in cash flows from operating activities decreased 19,434 thousand yen.
The beginning balance of retained earnings decreased 40,000 thousand yen and the beginning balance of noncontrolling interests decreased 1,833 thousand yen in the consolidated statement of changes in shareholders’ equity
due to the cumulative effect reflected in net assets at the beginning of the current fiscal year.
The effect of these changes on per-share information is shown in the corresponding section.
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 current fiscal year, and has applied the new accounting standard in the AccountingStandard for Fair Value Measurement prospectively in accordance with the transitional treatment prescribed in
Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effect of the application ofthese standards on the consolidated financial statements.

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

Notes to Consolidated Balance Sheet*1. The following items are applicable to a non-consolidated subsidiaries.

Investment securities (stocks)

FY3/21(As of Mar. 31, 2021)
50,000(Thousands of yen)
FY3/22(As of Mar. 31, 2022)
50,000FY3/21(As of Mar. 31, 2021)
49,2772,804,319(Thousands of yen)
FY3/22(As of Mar. 31, 2022)
62,1622,804,319

278,099357,341

3,131,695

3,223,823*2. Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral

Buildings and structures
Land
Investment securities
Total
Liabilities with collateral

FY3/21(As of Mar. 31, 2021)
Long-term borrowings(including current portion of long-term borrowings)

2,699,400(Thousands of yen)
FY3/22(As of Mar. 31, 2022)
2,288,770*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
FY3/21(As of Mar. 31, 2021)
The difference between the market value of land and bookvalue after revaluation(1,106,748)(Thousands of yen)
FY3/22(As of Mar. 31, 2022)(1,131,912)

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)
FY3/21
FY3/22(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
15,611
12,867
344
686
3,618
6,443
2,295
198
19,77322,293

17

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22*2. Impairment loss
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

StoresAssets for leased

OthersClass

Location

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

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

Hokkaido
Saitama
Chiba
Tokyo
Kanagawa
Niigata
Gifu
Shizuoka
Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Okayama(Overseas)
Taiwan
Osaka
Hyogo
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 cash
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 under
extraordinary losses.
In the assets for leased, for asset groups for which profit and loss from leased properties are continuously negative or expected
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 amountof 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.

18

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(3) Amount of impairment losses
Primary use

Stores, etc.

(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

Assets for leased

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

Others19

Goodwill (Note 1)

605,023

Intangible assets, others (Note 2)

681,708

Total
2,556,421
Note 1: Goodwill resulting from the acquisition of shares in KAZOKUTEI CO., LTD.
Note 2: Include intangible assets and other assets of 594,533 thousand yen resulting from the acquisition of shares in
KAZOKUTEI CO., LTD. and other intangible assets and other assets of 86,842 thousand yen resulting from theacquisition of shares in MIYAMOTO MUNASHI CO., LTD.
(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%.
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
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

Class

Location

StoresBuildings and structures
Machinery, equipment and vehicles
Leased assets
Property, plant and equipment, others
Intangible assets, others

Hokkaido
Iwate
Saitama
Chiba
Tokyo
Kanagawa
Niigata
Shizuoka
Aichi
Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama(Overseas)
TaiwanOthersBuildings and structures
Property, plant and equipment, others
Intangible assets, others

Osaka

19

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22(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 cash
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 under
extraordinary losses.
(3) Amount of impairment losses
Primary use

Class
Buildings and structures

StoresOthers(Thousands of yen)Amount215,528

Machinery, equipment and vehicles

4,648

Leased assets

49,895

Property, plant and equipment, others

188,593

Intangible assets, others

2,121

Buildings and structures

4,289

Property, plant and equipment, others

1,362

Intangible assets, others

4,916

Total

471,355(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 5.9%.
*3. Gain on sales of non-current assets
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.
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
Gain on sales of non-current assets is mainly due to sale of buildings and structures, and land.
*4. 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.
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
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 9,577 thousand yen out of 730,099 thousand yen in subsidies paid or expected to be paid from cost of sales, and673,818 thousand yen from salaries and allowances in selling, general and administrative expenses, and posted the excess
amount or expected excess amount of 46,704 thousand yen as subsidies for employment adjustment in non-operating income.

20

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/22*5. Subsidy income
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.
*6. Loss on COVID-19
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(Thousands of yen)
FY3/21
FY3/22(Apr. 1, 2020 – Mar. 31, 2021) (Apr. 1, 2021 – Mar. 31, 2022)
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

91,204
91,204(769)
90,43449,54849,548(11,647)
37,90028,85328,853(8,829)20,024(4,677)(4,677)
1,445(3,231)

786
111,245

3,936
38,604

Notes to Consolidated Statement of Changes in Equity
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)
1. Type andnumber 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) as trust assets of the Officer's Share Benefit Trust.
2. Share acquisition rights

Share acquisitionrights (itemized)
Reportingcompany(Parent
company)First series of stockacquisition rights
with exercise pricerevision clause
Total

Type ofshares undershare
acquisitionrightsNumber of shares under share acquisition rights(shares)

Balance asof Mar. 31,
2021(Thousandsof yen)As of Apr.
1, 2020

Increase

Decrease

As of Mar.
31, 2021-

6,700,000

1,388,700

5,311,300

13,012-6,700,000

1,388,700

5,311,300

13,012

Commonshares21

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

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.
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2021

Increase(Shares)Number of shares
as of Mar. 31, 2022

Decrease

Outstanding shares
Common shares (Note 1)
36,158,884
3,713,400
39,872,284
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 FY3/22 includes our shares (119,000 shares atthe beginning of FY3/22 and 119,000 shares at the end of FY3/22) held by Custody Bank of Japan, Ltd. (trust
account) as trust assets of the Officer's Share Benefit Trust.
2. Share acquisition rights

Share acquisitionrights (itemized)

Type ofshares undershare
acquisitionrightsNumber of shares under share acquisition rights(shares)
As of Apr.
1, 2021

Increase

Decrease

As of Mar.
31, 2022

Balance asof Mar. 31,
2022(Thousandsof yen)Reportingcompany(Parent
company)First series of stockacquisition rights
Common5,311,300
3,713,400
1,597,900
3,914with exercise pricesharesrevision clause
Total
5,311,300
3,713,400
1,597,900
3,914
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 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 FY3/22 but an effective date in FY3/23

Resolution

Type of
share

Total
dividends(Thousands ofyen)

Source offunds

Dividend
per share(Yen)

Board of Directors
Meeting on
May 13, 2022

Commonshares

199,359Retainedearnings

5.00

22

Record date

Effective date

March 31, 2022

June 30, 2022

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

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 amountFY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

Cash and deposits

9,431,344

12,834,637

Cash and cash equivalents

9,431,344

12,834,637

FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Thousands of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

67,852647,764

2. Material non-cash transactions(1) Assets and obligations applicable to finance lease transactions

Assets and obligations applicable to finance leasetransactions

Business Combinations, etc.
Transaction under common control
Merger of consolidated subsidiaries
At a meeting of the Board of Directors of SRS Holdings on January 12, 2021, a decision was made to merge
MIYAMOTO MUNASHI CO., LTD. and SUNROLLY Co., LTD., consolidated subsidiaries of SRS Holdings, andthese companies were merged on April 1, 2021.
(1) Summary of merger
1) Name and business activities of merging companies
i. Company to merge
Name:
MIYAMOTO MUNASHI CO., LTD.
Business:
Operation of restaurants
ii. Company to be merged
Name:
SUNROLLY Co., LTD.
Business:
Operation of restaurants
2) Date of merger
April 1, 2021
3) Method of merger
An absorption-type merger between MIYAMOTO MUNASHI CO., LTD., which will be the surviving company,
and SUNROLLY Co., LTD., which will be dissolved.
4) Company’s name after acquisition
M&S FOODSERVICE CO., LTD.
(2) Summary of accounting methods applied
Accounting methods used for this merger as a transaction under common control are based on “AccountingStandard for Business Combinations” and “Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures.”23

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

Segment and Other Information
Segment information
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) and FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
Omitted since the Group has only a single business segment of food service business.
Related information
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) and FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
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
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) and FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
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
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) and FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
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
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021) and FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
Not applicable.

24

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

Per-share Information

Net assets per share

FY3/21(Apr. 1, 2020 – Mar. 31, 2021)
271.32(Yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)
354.87(116.47)

41.57

Net income (loss) per share

Diluted net income per share
41.26
Notes: 1. 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 FY3/21 and 119,000
shares for FY3/22).
For calculation of net income (loss) per share and diluted net income per share, treasury shares is included in treasury
shares, which is deducted from the calculation of the average number of shares during the period (119,000 shares for
FY3/21 and 119,000 shares for FY3/22).
3. As described in Changes in Accounting Policies, the Company has applied the Accounting Standard for Revenue
Recognition (ASBJ Statement No. 29, March 31, 2020) in accordance with the transitional treatment prescribed in
Paragraph 84 of this standard. As a result, net assets per share for FY3/22 decreased by 0.52 yen, and net income pershare and diluted net income per share increased by 0.51 yen each.
4. 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 of yen)]

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

FY3/22(As of Mar. 31, 2022)
14,390,406

211,879

283,106[13,012][3,914][198,866][279,191]

9,778,124

14,107,300

36,039,541

39,752,941

FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(4,067,507)

1,574,620--(4,067,507)

1,574,620

34,923,094

37,881,710

-

-

-

277,530--[of which non-controlling interests (Thousands of yen)]
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)
5. Basis for calculating net income (loss) per share is as follows.

Net income (loss) per share
Profit (loss) attributable to owners of parent(Thousands of yen)Amounts not available to common shareholders(Thousands of yen)
Profit (loss) attributable to owners of parent
applicable to common shares (Thousands of yen)
Average number of common shares outstanding
during the period (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

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