FOR TRANSLATION PURPOSE ONLYDISCLAIMER
This English translation is only for reference purpose. When they are any discrepancies between original Japaneseversion and English translation version, the original Japanese version always prevails.
November 6, 2023

Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2024
(Six Months Ended September 30, 2023)[Japanese GAAP]
Company name:Securities code:
Representative:
Contact:

SRS HOLDINGS CO., LTD.
Listing: Tokyo Stock Exchange
8163
URL: https://srs-holdings.co.jp/
Masahiko Shigesato, President & Chief Executive Officer
Satoru Ikeda, Director, Executive Officer & Head of Corporate Strategy Division
Tel: +81-6-7222-3101
Scheduled date of filing of Quarterly Report:
November 10, 2023
Scheduled date of payment of dividend:
Preparation of supplementary references regarding quarterly results: No
Holding of quarterly results briefing:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2024
(April 1, 2023 - September 30, 2023)(1) Consolidated operating results
Net sales

Operating profit

Million yen

Six months ended Sep. 30, 2023
29,203Six months ended Sep. 30, 2022
25,920Note: Comprehensive income (million yen)

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

Million yen

%

12.7
969
967
35.6
(722)
(762)
Six months ended Sep. 30, 2023:
910 (-%)
Six months ended Sep. 30, 2022:(805) (-%)%

Million yen%

Million yen

714
(864)

-

Net income per share Diluted net income per share
Yen

Yen

17.28
(21.26)-

Total assets

Net assets

Six months ended Sep. 30, 2023
Six months ended Sep. 30, 2022

(2) Consolidated financial position
Million yen

As of Sep. 30, 2023
As of Mar. 31, 2023
Reference: Shareholders’ equity (million yen)

Equity ratio

Million yen

33,551
34,376
As of Sep. 30, 2023: 14,596%

14,966
14,055
As of Mar. 31, 2023: 13,716

43.5
39.9

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

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2023
0.00
Fiscal year ending Mar. 31, 2024
0.00
Fiscal year ending Mar. 31, 2024
(forecast)
Note: Revisions to the most recently announced dividend forecast: None

-

0.00

0.00

-

5.00

5.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)
Net sales
Million yen(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit%

Million yen%

58,0006.4
1,500
Full year
Note: Revisions to the most recently announced consolidated earnings forecasts: None

Million yen%

Million yen

%

1,400

-

800

-

FOR TRANSLATION PURPOSE ONLY
Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in thescope of consolidation): None
(2) Application of special accounting methods to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:
None4) Restatements:
None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of period (including treasury shares)
As of Sep. 30, 2023:
41,470,184 shares
As of Mar. 31, 2023:
41,470,184 shares
2) Number of treasury shares at the end of period
As of Sep. 30, 2023:
119,043 shares
As of Mar. 31, 2023:
119,343 shares
3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2023:
41,351,095 shares
Six months ended Sep. 30, 2022:
40,690,383 shares* This report is not subject to quarterly review by certified public accountants or auditing firms.
* Explanation regarding appropriate use of the earnings forecasts and other special notes
Forecasts regarding future performance in this document are based on certain assumptions judged to be valid andinformation currently available to us. Actual performance may differ significantly from these forecasts for a numberof factors.

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24

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

2(2) Explanation of Financial Position

4(3) Explanation of Cash Flows

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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

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

7

Quarterly Consolidated Statement of Income
For the Six-month Period

7

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

9(4) Notes to Quarterly Consolidated Financial Statements

11(Going Concern Assumption)

11(Changes in the Scope of Consolidation or Application of the Equity Method)

11(Significant Changes in Shareholders’ Equity)

11(Segment and Other Information)

11(Business Combinations, etc.)

121

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24

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

Net salesFirst six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)
YoY change
YoY change
Results(Amount)(%)
25,9206,805
35.6(Millions of yen)First six months of FY3/24(Apr. 1, 2023 – Sep. 30, 2023)
YoY change
YoY change
Results(Amount)(%)
29,203
3,282
12.7

Operating profit

(722)

1,866

-

969

1,691

-

Ordinary profit
Profit attributable toowners of parent(762)(3,595)

-

967

1,730

-

(864)

(2,874)

-

714

1,579

-

During the first half of the fiscal year, rules for wearing masks have been relaxed in March 2023 and in May theJapanese government downgraded COVID-19 to the same level as that of seasonal influenza. In addition, foreign
visitors are returning, and the national and local governments have extended support for travel within Japan andhave distributed premium gift certificates. As a result, social and economic activity began to return to normal, andpeople are returning to SRS Group restaurants and first half sales were far higher than during the sa me period of
FY3/23 when the seventh wave of the pandemic hit Japan. Despite these positive trends, the business climate
remains challenging because of the Ukraine conflict, the yen ’s depreciation, the high cost of raw materials andenergy, and rising wages due to the labor shortage. In the first half, the SRS Group returned to profitability with a
big improvement in earnings. There was an operating profit, ordinary profit and profit attributable to owners ofparent due in part to activities in the previous fiscal year to improve profitability and to government assist ance forlowering utility expenses.
Achieving a rapid recovery from the impact of the pandemic and making current businesses more profitable are
the major goals of the current medium-term business plan. One step for accomplishing these goals is conversion sof Tendon Tempura Honpo Santen and Tokutoku restaurants to a more profitable new business model. Another isthe addition of more functions to the SRS Group app and progress with the digital transformation, such as theinstallation of check-in machines and the use of table service robots at more restaurants. There is also moreprogress with post-merger integration involving NIS Inc., which was acquired on February 1, 2023, including the
integration of purchasing, delivery and back-office tasks with those of the SRS Group. An overview of theoperations of restaurant formats is as follows.
Washoku Sato restaurants
To further increase productivity, the use of table service robots was expanded to 71 locations and machines thatallow customers to use the app to check in are now in use at 138 locations. As in the previous fiscal year, there
were advertisements and other marketing activities using several media. This includes TV commercials and SNS
ads featuring Nagisa Shibuya, a member of the NMB48 all-female idol group who is the first Washoku Sato
Ambassador. There are also leaflets delivered with newspapers. The lineup of all -you-can-eat menu items, such as
Sato Style Yakiniku and Sato-Shabu, was expanded with special events. One is a Cow Tongue All -You-Can-Eat
Campaign featuring limited time only items like tongue in thick sections and tongue nigiri. Another special event
was the Korea Fair with all-you-can-eat courses like samgyeopsal (grilled pork belly) and cold noodles. During
the first half of this fiscal year, one restaurant was opened and one was closed, resulting in 197 locations. Sales
were 12,738 million yen, which was 13.7% higher than in the first half of the previous fiscal year.
“Nigiri Chojiro” restaurants
To bring customers to restaurants more often, the Nigiri Chojiro app was used to provide a variety of information
along with discount coupons. In addition, there were new energetic TV commercials featuring scenes of meal
preparation skills and sushi with the goal of more sales growth. A Natsusuzumi Fair was held that featured flavorfuleel (hamo) dishes and natural extra-large shrimp with a firm texture and sweetness. During the first half, one
restaurant was opened and one was closed, resulting in 67 locations. As a result, sales increased 11.0% year on
year to 6,630 million yen.

2

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24

Tendon Tempura Honpo Santen restaurants
For more improvements in productivity, this format has created a self -service restaurant format and started
operating the first location of this type in June 2023 by rebuilding the existing Narumi restaurant in Nagoya. To
improve profitability following the downturn caused by the recent high ingredients prices, the Grand Menu wasrevised with measures that include a revision of the lowest p rice of 390 yen that was maintained for many years.
Used in conjunction with promotions on LINE (a popular social media app in Japan) and Instagram, members only coupons and information about promotions offering reduced prices were distributed using the ap p. In addition,
all restaurants now accept take-out orders from mobile phones using the app to order provide even moreconvenience for customers. During the first half, two restaurants were closed, resulting in 34 locations. As a result,sales decreased 15.7% year on year to 1,198 million yen.
Kazokutei restaurants
To bring in customers more frequently, the Kazokutei app that was launched in April 2023 was used to provide
information about promotions and distribute reduced -price coupons. For attracting new customers, there was amovie-tie up marketing campaign using the film Konnichiwa, Kaasan (Mom, Is That You?!). Customers received
scratch cards to win movie tickets. There was also an X (formerly Twitter) Follow & Repost campaign. A Summer
Food Fair was held in August, when restaurants are very busy, that featured two special box lunch items, one with
Kobe beef and the other with ma-anago (salt-water eels). During the first half, three restaurants were closed,
resulting in 60 locations. As a result, sales increased 15.7% year on year to 2,389 million yen.
Segment information is not provided because the SRS Group has only the food service business segment.
SRS Group: Opening and closure of restaurants(Number of restaurants)
Second quarter
Restaurants
of FY3/24
planned to open
(As of Sep. 30,
during FY3/24
2023)
197 (-)
2

FY3/23(As of Mar. 31,
2023)

Newly opened
restaurants

Washoku Sato

197 (-)

1 (-)

1 (-)

Nigiri Chojiro/CHOJIRO

67 (-)

1 (-)

1 (-)

67 (-)

5

Kazokutei*

63 (8)

- (-)

3 (1)

60 (7)

1

Tokutoku

60 (49)

- (-)

1 (-)

59 (49)1

Katsuya45 (15)

1 (-)

- (-)

46 (15)

7

Tendon Tempura Honpo Santen

36 (1)

- (-)

2 (-)

34 (1)

2

Miyamoto Munashi

26 (2)

- (-)

1 (-)

25 (2)-

Sushi delivery business11 (3)

- (-)

- (-)

11 (3)

3

Himawari

8 (-)

- (-)

- (-)

8 (-)

-

Karayama

6 (-)

1 (-)

- (-)

7 (-)

2

M&S FC Business*

24 (-)

2 (-)

- (-)

26 (-)

4

Name

Closedrestaurants

Others13 (-)

1 (-)

1 (-)

13 (-)

5

Torisho

223 (223)

11 (11)32 (32)202 (202)

52

Domestic total

779 (301)

18 (11)42 (33)755 (279)

84

Overseas stores27 (23)

- (-)

2 (2)

25 (21)

10Worldwide total
806 (324)
18 (11)44 (35)780 (300)
94
Note: Numbers in parentheses include franchised, leased-band and joint venture restaurants.
* Kazokutei includes Kashunan, Sanpoan, Kazokuan, Kyoshun, and Kyosai restaurants.
* M&S FC Business is the total number of stores operated by M&S FOODSERVICE CO., LTD. in the Popolamama, Mister
Donut, Doutor Coffee, Oogamaya and Shinpachi Shokudo restaurants.

3

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24(2) Explanation of Financial Position
A provisional accounting treatment was used in the previous fiscal year for the acquisition of NIS Inc. on February
1, 2023. The accounting treatment was finalized in the second quarter of the current fiscal year. Due to thefinalization of the provisional accounting treatment, comparative information in the first half consolidated
financial statements incorporates a significant revision of the initial acquisition cost allocation. Comparisons withthe end of the previous fiscal year and analysis use figures that have been revised to reflect the changes in theinitial acquisition cost allocation due to the finalization of the provisional accounting treatment.
Total assets at the end of the second quarter decreased 824 million yen from the end of the previous fiscal year to33,551 million yen.
Current assets decreased 1,010 million yen from the end of the previous fiscal year to 1 5,503 million yen. Thiswas mainly due to decreases of 936 million yen in cash and deposits and 192 million yen in other under current
assets.
Non-current assets increased 197 million yen from the end of the previous fiscal year to 17,926 million yen. Thiswas primarily due to increases of 217 million yen in property and equipment, others, net and 198 million yen in
investment securities.
Current liabilities decreased 532 million yen from the end of the previous fiscal year to 8,657 million yen. Thiswas mainly due to decreases of 515 million yen in other current liabilities and 195 million yen in accounts payabletrade.
Non-current liabilities decreased 1,203 million yen from the end of the previous fiscal year to 9,927 million yen.
This was mainly due to decreases of 520 million yen in long-term borrowings and 472 million yen in bonds payable.
Net assets were 14,966 million yen, an increase of 910 million yen from the end of the previous fiscal year.
(3) Explanation of Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) decreased 936 million yen from the end of the previous fiscal
year to 11,213 million yen.
The cash flow components and the main reasons for changes are as described below.
(Cash flows from operating activities)
Net cash provided by operating activities was 1,061 million yen, compared with 854 million yen provided in thesame period of the previous fiscal year. This was mainly due to a profit before income taxes of 972 million yen,depreciation of 750 million yen and a decrease in accrued consumption taxes of 502 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 912 million yen, compared with 1,022 million yen used in the same periodof the previous fiscal year. This was mainly due to payment of 911 million yen for the purchase of property, plantand equipment, proceeds from refund of guarantee deposits of 145 million yen, and payment of 72 million yen for
asset retirement obligations.
(Cash flows from financing activities)
Net cash used in financing activities was 1,095 million yen, compared with 29 million yen provided in the same
period of the previous fiscal year. This was mainly due to repayments of long-term borrowings of 527 million yen,
and redemption of bonds of 467 million yen.
(4) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
There are no revisions to the full-year consolidated earnings forecast that was announced on May 22, 2023 in theSummary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2023.

4

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Thousands of yen)
Second quarter of FY3/24(As of Sep. 30, 2023)

AssetsCurrent assets
Cash and deposits

12,150,379

11,213,620

Accounts receivable - trade2,150,927

2,235,587

Merchandise
Raw materials and supplies

58,48662,2281,105,146

1,133,588

Current portion of long-term loans receivable

64,65466,607

Other

988,317795,716

Allowance for doubtful accounts(3,793)(3,455)

16,514,119

15,503,893

Buildings, net

3,118,524

3,265,958

Land

3,094,528

3,054,228

Other, net

2,445,303

2,662,713

Total property, plant and equipment

8,658,356

8,982,900

1,084,225

1,019,363

945,343866,028

2,029,569

1,885,392

Investment securities

636,868

835,785

Long-term loans receivable

624,276

635,918

Guarantee deposits

3,998,578

3,929,094

Deferred tax assets

1,410,700

1,310,534

Other

374,044

350,307

Allowance for doubtful accounts(4,096)(3,676)

Total investments and other assets

7,040,372

7,057,964

17,728,297

17,926,257

134,166

121,759

34,376,583

33,551,910

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

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Total non-current assets
Deferred assets
Total assets

5FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24

FY3/23(As of Mar. 31, 2023)(Thousands of yen)
Second quarter of FY3/24(As of Sep. 30, 2023)

Liabilities
Current liabilities
Accounts payable - trade

1,888,789

1,693,403

935,000

940,000

Current portion of long-term borrowings

1,051,626

1,044,745

Accounts payable - other

2,631,668

2,715,007

81,741

249,966

Current portion of bonds payable

Income taxes payable
Provision for bonuses

470,647

400,239

Other

2,130,172

1,614,238

Total current liabilities

9,189,645

8,657,601

Bonds payable

4,165,000

3,692,500

Long-term borrowings

3,940,917

3,420,225

82,947

82,94727,75327,75329,17034,520Non-current liabilities

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

23,486

21,847

1,182,199

1,189,518

Other

1,679,609

1,458,274

Total non-current liabilities

11,131,083

9,927,586

20,320,729

18,585,187

Share capital

11,077,683

11,077,683

Capital surplus

4,935,240

4,481,953

Retained earnings(1,543,803)(376,166)

Treasury shares(120,009)(119,707)

Total shareholders’ equity

14,349,111

15,063,763

260,385

398,473

Asset retirement obligations

Total liabilities
Net assets
Shareholders’ equity

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

6

14,471

43,790(923,897)(923,897)

16,144

14,587(632,896)(467,046)

339,639

370,006

14,055,853

14,966,723

34,376,583

33,551,910

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Six-month Period)(Thousands of yen)First six months of FY3/23
First six months of FY3/24(Apr. 1, 2022 – Sep. 30, 2022) (Apr. 1, 2023 – Sep. 30, 2023)
25,920,607
29,203,137

Net sales
Cost of sales

9,036,790

10,210,236

Gross profit

16,883,817

18,992,901

Selling, general and administrative expenses

17,606,155

18,023,465

Operating profit (loss)(722,337)

969,435

Interest income

4,268

3,650

Dividend income

10,165

11,172

Rental income from buildings

32,72531,842Foreign exchange gains-

37,505

Miscellaneous income

45,894

27,114

Total non-operating income

93,053111,285

Interest expenses

60,75354,080Rental expenses on real estate

23,10823,46854-

Non-operating income

Non-operating expenses

Foreign exchange losses
Miscellaneous losses

49,52035,667

Total non-operating expenses

133,437

113,216(762,721)

967,504

Gain on sales of non-current assets

1,575

1,612

Gain on extinguishment of tie-in shares

19,867-

Gain on cancellation of leasehold contracts

19,681

1,151-

66,066

41,124

68,83014,724

17,654-

194

Impairment losses

56,42233,403

Loss on store closings

14,236

12,185

Total extraordinary losses

85,38463,437

Profit (loss) before income taxes

Ordinary profit (loss)
Extraordinary income

Compensation income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets(806,981)

972,896

Income taxes - current

93,743

202,656

Income taxes - deferred(63,336)

25,520Total income taxes

30,407228,177(837,388)

744,719

Profit attributable to non-controlling interests

27,58730,366

Profit (loss) attributable to owners of parent(864,976)

714,352

Profit (loss)

7

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Thousands of yen)First six months of FY3/23
First six months of FY3/24(Apr. 1, 2022 – Sep. 30, 2022) (Apr. 1, 2023 – Sep. 30, 2023)
Profit (loss)(837,388)

744,719(8,511)138,088

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

42,75829,319Foreign currency translation adjustment(1,860)(1,556)

Total other comprehensive income

32,386

165,850(805,002)

910,570(832,590)

880,203

27,58730,366Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY3/23
First six months of FY3/24(Apr. 1, 2022 – Sep. 30, 2022) (Apr. 1, 2023 – Sep. 30, 2023)
Cash flows from operating activities
Profit (loss) before income taxes(806,981)

972,896

Depreciation

754,706

750,408

Amortization of goodwill

44,95464,861

Impairment losses

56,42233,403

Increase (decrease) in retirement benefit liability(187,915)(1,638)

Increase (decrease) in provision for bonuses(100,970)(70,408)

381

(758)

(14,433)(14,822)60,75354,080

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Compensation income-(66,066)

Gain on sale of non-current assets(1,575)(1,612)

Loss on retirement of non-current assets

14,724

17,654-

194

Loss on sale of non-current assets
Loss (gain) on extinguishment of tie-in shares(19,867)-

Gain on cancellation of leasehold contract(19,681)(1,151)

Decrease (increase) in trade receivables

12,060(84,024)

Decrease (increase) in inventories(243,151)(31,791)

Decrease (increase) in accounts receivable - other

1,521,215(2,961)

Increase (decrease) in trade payables

34,416(196,751)

Increase (decrease) in accounts payable - other(145,561)(109,403)

Increase (decrease) in accrued consumption taxes

533,137(502,976)

Decrease (increase) in consumption taxes refund receivable

100,787-

Other, net(29,322)

10,466

Subtotal

1,564,100

819,600

10,07911,124(60,655)(53,894)-

66,066

Income taxes paid

(696,856)(37,540)

Income taxes refund

37,522

255,793

Net cash provided by (used in) operating activities

854,191

1,061,149(850,380)(911,090)

Interest and dividends received
Interest paid
Proceeds from compensation

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

1,959

41,446

Purchase of intangible assets(140,387)(53,674)

Payments for asset retirement obligations(32,856)(72,024)

Payments of guarantee deposits(65,949)(41,368)

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

974,463145,943(29,300)(56,000)

40,76238,651(20,416)(4,262)(1,022,103)(912,378)

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24(Thousands of yen)First six months of FY3/23
First six months of FY3/24(Apr. 1, 2022 – Sep. 30, 2022) (Apr. 1, 2023 – Sep. 30, 2023)
Cash flows from financing activities
Proceeds from long-term borrowings

19,000-

Repayments of long-term borrowings(457,055)(527,797)

Repayments of finance lease liabilities(101,338)(99,903)

Redemption of bonds
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Dividends paid

(467,500)(467,500)

1,236,068-(199,359)-

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-

98

29,814(1,095,103)

530

9,573

Net increase (decrease) in cash and cash equivalents(137,566)(936,759)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of period

12,834,637

12,150,379

71,843-

12,768,914

11,213,620

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in the Scope of Consolidation or Application of the Equity Method
Important changes in the scope of consolidation
At a meeting of the Board of Directors on April 18, 2023, Board of Directors of SRS Holdings and NIS Inc.
(“Former NIS”) approved resolutions for a divestiture by Former NIS on July 1, 2023 and the absorption of thedivested business by NIS Inc. (“New NIS”), which was established by SRS Holdings on April 12, 2023. As a result,
New NIS is included in the scope of consolidation beginning with the first quarter of the current fiscal year.
Significant Changes in Shareholders’ Equity
I. First six months of FY3/23 (Apr. 1, 2022 – Sep. 30, 2022)
1. Dividend payment
Resolution

Type ofshare

Total dividends(Thousands ofyen)

Dividend
per share(Yen)

Record date

Effective date

Source offunds

Board of Directors
CommonRetained
Meeting on May
199,359
5.00 March 31, 2022
June 30, 2022
sharesearnings
13, 2022
Note: Total dividends paid in accordance with a resolution approved by the SRS Holdings Board of Directors on
May 13, 2022 includes a payment of 595 thousand yen for shares held by Custody Bank of Japan, Ltd. (trust
account) as trust assets of the Officers’ Share Benefit Trust.
2. Significant changes in shareholders’ equity
In the first six months of FY3/23, capital stock and capital surplus increased 623,597 thousand yen each due tothe exercise of share acquisition rights.
II. First six months of FY3/24 (Apr. 1, 2023 – Sep. 30, 2023)
1. Dividend payment
Not applicable.
2. Significant changes in shareholders’ equity
In accordance with a resolution approved by the Board of Directors of SRS Holdings on May 22, 2023, on thesame day, the capital reserve was reduced by 414,875 thousand yen and the total amount was transferred to othercapital surplus. Other capital surplus of 453,283 thousand yen was transferred to retained earnings to offset theretained loss. These changes had no effect on total shareholders’ equity.
Segment and Other Information
First six months of FY3/23 (Apr. 1, 2022 – Sep. 30, 2022) and first six months of FY3/24 (Apr. 1, 2023 – Sep. 30,
2023)
Omitted since the SRS Group has only the food service business segment.

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/24

Business Combinations, etc.
Finalization of provisional accounting treatment for business combinations
A provisional accounting treatment was used in the previous fiscal year for the acquisition of NIS Inc. on February
1, 2023. The accounting treatment was finalized in the second quarter of the current fiscal year.
Due to the finalization of the provisional accounting treatment, comparative information in the first halfconsolidated financial statements incorporates a significant revision of the initial acquisition cost allocation. The
acquisition cost was allocated as follows: 85,000 thousand yen to intangible assets, and 29,367 thousand yen todeferred tax liabilities. As a result, provisional goodwill of 652,849 thousand yen was reduced by 55,632 thousand
yen to 597,217 thousand yen.

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

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