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 22, 2023

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
[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:
Satoru Ikeda, Executive Officer & Head of Corporate Strategy Division Tel: +81-6-7222-3101
Scheduled date of ordinary general meeting of shareholders:June 29, 2023
Scheduled date of payment of dividend:
Scheduled date of filing of Securities Report:
June 30, 2023
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, 2023 (April 1, 2022 – March 31, 2023)(1) Consolidated operating results
Net sales

Operating profit

Million yen%

54,505
Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022
42,885
Note: Comprehensive income (million yen)

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

Million yen

%

27.1
(606)
(669)
(1.9)
(4,635)
2,669
Fiscal year ended Mar. 31, 2023: (1,378) (-%)
Fiscal year ended Mar. 31, 2022: 1,695 (-%)

(1,451)
1,574-

Net income pershare

Million yen%

Million yen

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

Yen

Yen

%

(35.40)(10.4)
Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022
41.57
41.26
13.2
Reference: Equity in earnings of affiliates (million yen) Fiscal year ended Mar. 31, 2023: Fiscal year ended Mar. 31, 2022: -

%

%

(1.9)
8.0

(1.1)
(10.8)(2) Consolidated financial position
Total assets

Net assets

Million yen

Yen%34,37014,05535,492
14,390
As of Mar. 31, 2023: 13,716

As of Mar. 31, 2023
As of Mar. 31, 2022
Reference: Shareholders’ equity (million yen)

Net assets per share

Equity ratio

Million yen

39.9
331.7039.7
354.87
As of Mar. 31, 2022: 14,107(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

2,075
4,705

(2,801)(1,861)(30)
550

12,15012,834

Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022

2. Dividends
Dividends per share
1Q-endFiscal year ended Mar. 31, 2022
Fiscal year ended Mar. 31, 2023
Fiscal year ending Mar. 31, 2024
(forecast)

2Q-end3Q-end Year-end

Total

Total
dividends

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

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

0.00
0.00

-

5.00
0.00

5.00
0.00

199
0

12.0
-

1.6
-

-

0.00

-

5.00

5.00

25.9

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)
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

6.4

1,500

-

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) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:
None4) Restatements:
None(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of period (including treasury shares)
As of Mar. 31, 2023:
41,470,184 shares
As of Mar. 31, 2022:
39,872,284 shares
2) Number of treasury shares at the end of period
As of Mar. 31, 2023:
119,343 shares
As of Mar. 31, 2022:
119,343 shares
3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2023:
40,995,210 sharesFiscal year ended Mar. 31, 2022:
37,881,710 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(1) Non-consolidated operating results(Percentages represent year-on-year changes)
Net sales
Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022

Operating profit

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

18,645
16,282

14.5
(1.5)

137
820

(83.2)
19.4

(196)
732

-

(743)
528

-

Net income per share

Diluted net income per share

Yen

Yen

(18.15)
13.95

13.85

Fiscal year ended Mar. 31, 2023
Fiscal year ended Mar. 31, 2022

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

As of Mar. 31, 2023
As of Mar. 31, 2022
Reference: Shareholders’ equity (million yen)

Net assets
Million yen

31,832
14,79032,053
14,478
As of Mar. 31, 2023: 14,790

Net assets per share

Equity ratio
%

Yen

46.5
357.6945.2
364.11
As of Mar. 31, 2022: 14,474* 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 FY3/23

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 Years6

2. Corporate Group7

3. Basic Approach to the Selection of Accounting Standards

8

4. Consolidated Financial Statements and Notes

9(1) Consolidated Balance Sheet

9(2) Consolidated Statements of Income and Comprehensive Income

11

Consolidated Statement of Income

11

Consolidated Statement of Comprehensive Income13(3) Consolidated Statement of Changes in Equity

14(4) Consolidated Statement of Cash Flows

16(5) Notes to Consolidated Financial Statements

18(Going Concern Assumption)

18(Additional Information)

18(Notes to Consolidated Balance Sheet)

18(Notes to Consolidated Statement of Income)

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

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

26(Per-share Information)

27(Subsequent Events)

27

1

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

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

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

FY3/22(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

-

(Millions of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)
YoY change
YoY change
Results(Amount)(%)
54,505
11,619
27.1
(606)
4,028
(669)
(3,338)(1,451)(3,025)-

With the easing of restrictions following the end of all major pandemic safety measures in March 2022 and theJapanese government's travel support measures and easing of entry restrictions implemented in October 2022,
compatibility between pandemic safety measures and socio-economic activities was gradually achieved. In thefiscal year that ended in March 2023, the number of customers visiting our stores recovered, and both sales andoperating profit significantly exceeded the previous year's results. However, the recovery in sales at the SRS Groupwas held down by a decline in demand during dinner and nighttime operations caused by a change in consumer
behavior due to the pandemic and by the negative impact of inflation on consumer sentiment. Furthermore, theprolonged Ukraine crisis and the yen’s sharp decline caused rapid increases in the cost of raw materials, utilities
and other items. These factors resulted in an operating loss. There was an ordinary loss and loss attributable toowners of parent compared with profits one year earlier when subsidies for reducing operating hours were received.
On December 27, 2022, the SRS Holdings Board of Directors approved a resolution to purchase all of the stock of
NIS Inc., which operates a nationwide network of karaage restaurants using the TORISHO brand. The stock waspurchased on February 1, 2023. In the highly competitive market for restaurants specializing in takeout karaage,
NIS has grown steadily since its inception 12 years ago to 227 locations in Ja pan and other countries, the largest
in this restaurant category. Making NIS a subsidiary gives the SRS Group a sound position in the takeout market
for karaage, which is one of the best known and frequently purchased food items in Japan. This is expected tofurther strengthen the SRS Group’s portfolio of restaurants in the lower price sector and contribute toaccomplishing two goals. One is “targeting demand for prepared meals that are consumed at home,” a central
theme of the new medium-term business plan released in May 2021. The other is the corporate vision of “building
an infrastructure essential for society as a company that can be successful for 100 years.” Many synergies are
anticipated with other SRS Group operations, such as cost reductions by using the large volume procurement ofingredients with other group companies, the development of new menu items, collaboration with other SRS Group
restaurants, and other activities. The goal is to use these benefits for even higher earnings at franchised TORISHO
restaurants and the further expansion of the SRS Group’s activities for selling prepared meals that are consumed
at home.
Achieving a rapid recovery from the impact of the pandemic and making current businesses more profitable aremajor goals of the current medium-term business plan that started in the previous fiscal year. In addition to theactivities explained above, the Merchandising (MD) Division of the SRS Group completed measures for jointpurchasing and integrated procurement with KAZOKUTEI Co., Ltd., which reduced purchasing and delivery
expenses. In addition, underperforming restaurants were closed o r converted to other formats to improve
profitability, a unified customer loyalty point stamp function was added to the app of every group restaurant brand,
and there were measures to increase the number of customers who visit other SRS Group restaurants. Overall,group restaurants raised the speed of measures for growth following the end of the pandemic and continued towork on making existing businesses more profitable. Activities and an overview of restaurant format operations
are as follows.
Activities in major restaurant formats
Washoku Sato restaurants
These restaurants continued to focus on all-you-can-eat menu items with emphasis on Sato-style Yakiniku Premium,2

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

which was launched at all Washoku Sato restaurants in September 2022. There were also limited -time-only menu
items using an approach that differs from seasonal fairs for dishes like Mafugu and Taimeshi. Another event wasSpecial NMB (Nanban) Soba, a joint activity with NMB48, an all-female idol group that includes Nagisa Shibuya,
the first Washoku Sato Ambassador. Restaurants sold Yuzu NMB Soba with Yuba and Fried Mochi and Beef Cheese
Mizuna Curry NMB Soba. The SRS Group stamp function was added to the Washoku Sato app in order to attract
new customers from other group restaurants. Furthermore, restaurants began the trial operation of a mobile
ordering system that allows customers to use the app for ordering takeout items. This is expected t o improve
convenience for customers and raise productivity at restaurants. Sales were 24,028 million yen, which was 36.0%
higher than in the previous fiscal year. During the fiscal year, four restaurants were opened and 14 were closed,
resulting in 197 locations.
“Nigiri Chojiro” restaurants
To give customers a reason to visit restaurants more often, the Nigiri Chojiro app was launched in July 2022 andused to provide a variety of useful information along with discount coupons. In another step to increase sales,
restaurants held the Third Winter Flavors Fair that features seasonal ingredients such as kuruma shrimp withoutstanding texture and sweetness and kinmedai (alfonsino), a fish with a delicate flavor and just the right fat
content. In addition, there was a takeout fair during the three-day (from February 1 to 3) Setsubun holiday featuring
Fukuju-maki, a luxurious seafood roll with shrimp, grilled eels, herring roe and other ingredients. This event also
featured a Mini Kaburi 4-Roll Set that included an unatama roll, fried shrimp roll and other popular items. As aresult, sales increased 20.3% year on year to 12,161 million yen. During the fiscal year, one restaurant was opened,
resulting in 67 locations.
Tendon Tempura Honpo Santen restaurants
To increase the frequency of restaurant visits even more, restaurants started offering the Santen Official App in
September 2022. Used in conjunction with promotions using LINE (a popular social media app in Japan), the newapp supplies coupons exclusively for app members and information about promotions offering reduced prices.
There were several activities for sales growth: a Tendon Tempura Honpo Santen Day! Customer Appreciation
Festival, a limited-time-only 100 yen chuka-an tendon discount, a Twitter Follow & Retweet event, and a YouTube
channel registration event that distributed gifts. As a result, sales increased 8.6% year on year to 2,834 million yen.
During the fiscal year, eight restaurants were closed, resulting in 36 locations.
Kazokutei restaurants
Kazokutei used LINE for many sales promotion activities on a regular basis in order to bring in more customers.
More restaurants are using the Smartphone Order capability that improves convenience for customers andproductivity at restaurants. To raise the frequency of customer visits, there was a special event with a theme oftraveling around islands of Kyushu to enjoy the cuisine and food culture of Kyushu. In addition, menu items using
ingredients from islands of Kyushu were sold for a limited time, such as tenzaru soba with Kumamoto Amakusa
sea bream and Kyushu vegetables. As a result, sales increased 30.0% year on year to 4,351 million yen. During
the fiscal year, four restaurants were closed, resulting in 63 locations.
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 FY3/23

SRS Group: Opening and closure of restaurants(Number of restaurants)
FY3/22
FY3/23
Restaurants
Newly opened
ClosedName(As of Mar. 31,(As of Mar. 31, planned to open
restaurants
restaurants
2022)
2023)
during FY3/23
14 (-)
197 (-)
4
Washoku Sato207 (-)
4 (-)
67
(8)
4
(-)
63
(8)
Kazokutei*- (-)
66 (-)- (-)
67 (-)
3
Nigiri Chojiro*
1 (-)
63 (50)3 (1)60 (49)Tokutoku- (-)
44 (1)
8 (-)
36 (1)
2
Tendon Tempura Honpo Santen- (-)
41 (14)- (-)
45 (15)
7
Katsuya4 (1)38 (2)
12 (-)
26 (2)
Miyamoto Munashi- (-)
11 (4)
3 (1)
11 (3)
4
Sushi delivery business
3 (-)
9 (-)
1 (-)
8 (-)
Himawari/Sabo-Himawari
- (-)
6 (-)
- (-)
6 (-)
1
Karayama- (-)
20 (-)
2 (-)
24 (-)
6
M&S FC Business*
6 (-)
18 (-)
5 (-)
13 (-)
2
Others- (-)- (-)
14 (14)223 (223)
TORISHO*237 (237)
590 (79)255 (238)
66 (16)779 (301)
29
Domestic total
21 (16)10 (10)4 (3)7Overseas stores27 (23)
611
(95)
70
(19)
36
Worldwide total
265 (248)
806 (324)
Note: Numbers in parentheses include franchised, leased-band and joint venture restaurants.
* Restaurant openings and closures include TORISHO, the restaurants of NIS, which were acquired on February 1, 2023.
* 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.

(2) Financial Position
Total assets at the end of the current fiscal year decreased 1, 122 million yen from the end of the previous fiscal
year to 34,370 million yen.
Current assets decreased 1,351 million yen from the end of the previous fiscal year to 16,514 million yen. Thiswas mainly due to decreases of 1,376 million yen in other under current assets, 684 million yen in cash and deposits
and an increase of 426 million yen in accounts receivable-trade.
Non-current assets increased 253 million yen from the end of the previous fiscal year to 17,721 million yen. Thiswas primarily due to an increase of 562 million yen in goodwill, a decrease of 323 million yen in guarantee deposits,
and an increase in 285 million yen in deferred tax assets.
Current liabilities increased 613 million yen from the end of the previous fiscal year to 9,189 million yen. Thiswas mainly due to increases of 809 million yen in other under current liabilities, 229 mi llion yen in accounts
payable-trade, and a decrease of 660 million yen in income taxes payable.
Non-current liabilities decreased 1,401 million yen from the end of the previous fiscal year to 11,124 million yen.
This was mainly due to decreases of 935 million yen in bonds payable, 325 million yen in lease liabilities, and 187
million yen in retirement benefit liability.
Net assets were 14,055 million yen, a decrease of 334 million yen from the end of the previous fiscal year.
(3) Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) decreased 756 million yen from the end of the previous fiscal
year to 12,150 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 2,075 million yen, compared with 4,705 million yen provided in theprevious fiscal year. This was mainly due to a loss before income taxes of 1,472 million yen, depreciation of 1,595
million yen and a decrease in accounts receivable-other of 1,531 million yen.

4FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(Cash flows from investing activities)
Net cash used in investing activities was 2,801 million yen, compared with 1,861 million yen used in the previous
fiscal year. This was mainly due to payments of 1,741 million yen for the purchase of property, plant and equipment,
and 830 million yen for the purchase of shares of subsidiaries resulting in change in scope of consolidation.
(Cash flows from financing activities)
Net cash used in financing activities was 30 million yen, compared with 550 million yen provided in the same
period of the previous fiscal year. This was mainly due to proceeds from issuance of shares resulting from exerciseof share acquisition rights of 1,235 million yen, proceeds from long-term borrowings of 1,019 million yen,
repayments of long-term borrowings of 949 million yen, and redemption of bonds of 935 million yen.
(Reference) Trends in cash flow indicators
FY3/19FY3/20FY3/21
FY3/22
FY3/23Equity ratio (%)
48.3
38.2
31.5
39.7
39.9
Equity ratio based on market value (%)
112.3
94.4
99.9
90.4
114.1
Interest-bearing debt to cash flow ratio (years)
4.2
9.7
2.7
5.5
Interest coverage ratio (times)
19.3
12.4
36.6
17.4
Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on market value: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest payments
Notes: 1. Market capitalization is calculated by the number of shares outstanding at the end of the period, excluding treasury
shares.
2. Operating cash flows are the figures for operating cash flows in the consolidated statement of cash flows.
3. Interest-bearing debt includes all debts on the consolidated balance sheet that incur interest.
4. Interest-bearing debt to cash flow ratio and the interest coverage ratio for FY3/21 are not stated because operating
cash flow was negative.

(4) Outlook
In the fiscal year ending in March 2024, we expect a slow recovery in the number of customers at restaurants associal and economic activity return to normal accompanied by pandemic safety measures. However, the businessclimate is likely to remain extremely challenging because of the rising prices of energy, resources and raw materials
as well as the negative impact of inflation on consumer sentiment. There were many activities during the pastfiscal year to accomplish the goals of the medium-term business plan that started in the fiscal year that ended in
March 2022. One was the acquisition of NIS Inc., which operates TORISHO takeout karaage restaurants, to enlarge
the SRS Group’s presence in the market for prepared meals that is consumed at home and in the category ofrestaurants selling items at low prices. Another activity was the closing or business format conversions of
unprofitable restaurants in order to achieve a quick recovery of the profitability of current businesses, which were
impacted by the pandemic and increases in many types of expenses. We also developed prototype restaurants withhigher productivity and new menu items. Price revisions that reflected added value resulting from menu mix
changes were another activity during the past fiscal year. Sales and earnings began to recover slowly in the third
quarter of the past fiscal year because of these initiatives. Although we expect the business climate to remaindifficult, we forecast higher sales and earnings due to the benefits the numerous ac tivities. Based on the outlook
for social and economic activity in Japan to continue to recover and on information currently available and recent
results of operations, we forecast sales of 58,000 million yen, operating profit of 1,500 million yen, ordinar y profitof 1,400 million yen and profit attributable to owners of parent of 800 million yen in the fiscal year ending inMarch 2024.

5

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

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

FY3/23(Actual)FY3/24(Forecast forresults ofoperations)

Number of restaurants

Results and Forecast
FY3/22(Actual)
Net sales (Millions of yen)

42,88554,50558,000Ordinary profit (Millions of yen)

2,669

(669)

1,400

611

806

847

Number of restaurants(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 busin ess 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.
However, we post a net loss for the fiscal year ended in March 2023, and we regret to say that we will not pay a
year-end dividend. For the fiscal year ending in March 2024, we plan to pay a year-end dividend of 5.00 yen per
share.

6

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

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., NIS Inc., SATO・ARCLAND FOODSERVICE CO., LTD., and SRS TAIWAN COMPANY LIMITED operate restaurantsthat serve mainly Japanese food.
(2) Systematic diagram of the business
Customers

Provide products
SRS TAIWANCOMPANY LIMITED(consolidated subsidiary)

Provide products
Provideproducts

NIS Inc.
(consolidated subsidiary)

SATO・ARCLAND FOODSERVICE CO., LTD.
(consolidated subsidiary)
Provideproducts
SATO FOODSERVICE
CO., LTD.
(consolidated subsidiary)
Selling raw materials
products
Real estate leasing
Facilities leasing

Provideproducts

Provideproducts

Provideproducts

FOODSNETCORPORATION(consolidated subsidiary)

M&S FOODSERVICE
CO., LTD.
(consolidated subsidiary)

KAZOKUTEICO., LTD.
(consolidated subsidiary)

Selling raw
materials
products

Selling raw
materials
products

Selling raw
materials
products

SRS HOLDINGS CO., LTD.

7

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

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.

8

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Thousands of yen)
FY3/23(As of Mar. 31, 2023)

AssetsCurrent assets
Cash and deposits

12,834,637

12,150,379

Accounts receivable - trade

1,724,620

2,150,927

Merchandise

63,02658,486

Raw materials and supplies

807,469

1,105,146

Current portion of long-term loans receivable
Other
Allowance for doubtful accounts
Total current assets

72,78564,6542,364,990

988,317(2,184)(3,793)

17,865,346

16,514,119

23,569,967

23,078,254

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation*3

Buildings and structures, net(19,932,847)*2

Machinery, equipment and vehicles
Accumulated depreciation*3

Machinery, equipment and vehicles, net
Land

*3

(19,526,594)

3,637,120*2 3,551,660

889,202902,801(735,745)*3

143,925*2, *4 3,099,407*2, *4 3,094,528

Leased assets

2,094,115

Accumulated depreciation(758,875)

153,457*3(1,199,720)

1,896,160*3(1,179,175)

Leased assets, net

894,394

716,984

Construction in progress

31,815

11,323

Other

6,788,498

Accumulated depreciation*3

Other, net
Total property, plant and equipment(5,523,726)

6,812,601*3(5,672,667)

1,264,772

1,139,933

9,080,968

8,658,356

576,917

1,139,858

Intangible assets
Goodwill
Other
Total intangible assets

658,749

860,343

1,235,667

2,000,201*1, *2 621,780*2 636,868

Investments and other assets
Investment securities
Long-term loans receivable

757,208624,276

Guarantee deposits

4,322,291

3,998,578

Deferred tax assets

1,148,442

1,433,626

Other

307,099

374,044

Allowance for doubtful accounts(4,923)(4,096)

Total investments and other assets
Total non-current assets
Deferred assets
Total assets

97,151,899

7,063,298

17,468,535

17,721,856

158,910

134,166

35,492,792

34,370,142

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

FY3/22(As of Mar. 31, 2022)(Thousands of yen)
FY3/23(As of Mar. 31, 2023)

Liabilities
Current liabilities
Accounts payable - trade
Current portion of bonds payable
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other

1,659,167

1,888,789

935,000

935,000*2 913,044*2 1,051,626

201,579

190,420

2,499,651

2,631,668

Income taxes payable

742,630

81,741

Provision for bonuses

495,114

470,647

Other

1,130,103

1,939,752

Total current liabilities

8,576,292

9,189,645

5,100,000

4,165,000

Non-current liabilities
Bonds payable
Long-term borrowings*2 4,010,856*2 3,940,917

Lease liabilities

1,492,253

1,166,441

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*4 82,947*4 82,947

27,75327,753

19,42029,170211,40223,486

Asset retirement obligations

1,243,340

1,182,199

Other

338,121506,727

12,526,094

11,124,642

21,102,386

20,314,288

Share capital

10,454,085

11,077,683

Capital surplus

4,311,642

4,935,240

Retained earnings

145,310(1,543,803)

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

Total shareholders’ equity

14,791,028

14,349,111

213,260

260,385

Total non-current liabilities
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
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

10

49,524

14,471*4 (962,306)*4 (923,897)

15,793

16,144(683,728)(632,896)

3,914

-

279,191

339,639

14,390,406

14,055,853

35,492,792

34,370,142

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
42,885,172
54,505,020

Net sales
Cost of sales

15,163,164

18,995,066

Gross profit

27,722,007

35,509,953

175,243

206,220

9,250

9,750

14,281,639

16,262,453

329,502364,927

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

485,943

462,738

1,515,934

1,607,304

171,825

184,375

Utilities expenses

1,835,397

2,855,000

Supplies expenses

1,738,748

1,582,173

Rent expenses

5,610,131

5,804,149

Repair expenses

868,152

786,989

Depreciation

1,449,402

1,575,368

Miscellaneous expenses

3,796,494

4,325,339

Amortization of goodwill

89,90989,90932,357,574

36,116,700(4,635,567)(606,746)Interest income

9,278

8,881

Dividend income

18,97021,435

Rental income from buildings

64,87565,30018,4729,209*5 7,264,316-

Total selling, general and administrative expenses
Operating loss
Non-operating income

Foreign exchange gains
Subsidy income
Subsidies for employment adjustment*4 46,704-

148,655

70,344

7,571,272

175,171

128,652

119,383

Rental expenses on real estate

45,411

46,461

Miscellaneous losses

92,14571,953

Total non-operating expenses

266,209237,798

2,669,495(669,373)*3 1,694*3 2,690

22,573-Gain on extinguishment of tie-in shares-

19,867

Gain on cancellation of leasehold contracts-

32,247

24,26754,805*1 22,293*1 36,667

Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses

Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Compensation income

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Loss on valuation of investment securities
Impairment losses

11

-

65

5,453

2,796

*2 471,355*2 731,987

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
1,563
66,213

Loss on store closings
Loss on COVID-19*6 4,909

Litigation settlement--

20,000Total extraordinary losses

505,575

857,731

Profit (loss) before income taxes

2,188,188(1,472,299)

Income taxes - current

915,684

183,321

Income taxes - deferred(384,274)(264,723)

Total income taxes

531,410(81,401)

1,656,778(1,390,897)

Profit attributable to non-controlling interests

82,15760,447

Profit (loss) attributable to owners of parent

1,574,620(1,451,345)

Profit (loss)

12

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(Consolidated Statement of Comprehensive Income)(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Profit (loss)

1,656,778(1,390,897)

Valuation difference on available-for-sale securities

37,90047,125

Deferred gains or losses on hedges(3,231)(35,053)

3,936

351

* 38,604* 12,423

1,695,383(1,378,473)

1,613,225(1,438,921)

82,15760,447

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

13

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(3) Consolidated Statement of Changes in Equity
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
Share
Nonaccumulated acquisition controllingotherrightsinterests
comprehensive
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

14

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodChanges during period
Issuance of new shares
Dividends of surplus
Reversal of revaluation
reserve for land
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

10,454,085

4,311,642

623,597623,597

145,310

Total shareholders’equityTreasury shares(120,009)

14,791,028

1,247,195(199,359)(199,359)(38,408)(38,408)(1,451,345)(1,451,345)

623,597623,597(1,689,113)-(441,917)

11,077,683

4,935,240(1,543,803)(120,009)

14,349,111(Thousands of yen)

Accumulated other comprehensive income
Valuation
Deferreddifference
gains oron availablelosses on
for-salehedgessecurities
Balance at
beginning of
periodChanges during
periodIssuance of newsharesDividends ofsurplus
Reversal ofrevaluation
reserve for land
Loss attributableto owners ofparentNet changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period213,260

49,524

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment(962,306)

15,793

Total
Share
Nonaccumulated acquisition controllingotherrightsinterests
comprehensive
income(683,728)

3,914

279,191

Total net
assets

14,390,406

1,247,195(199,359)(38,408)(1,451,345)

47,125(35,053)

38,408351

50,831(3,914)60,447

107,364

47,125(35,053)

38,408351

50,831(3,914)60,447(334,552)

260,385

14,471(923,897)

16,144(632,896)-

339,639

14,055,853

15

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Cash flows from operating activities
Profit (loss) before income taxes

2,188,188(1,472,299)

Depreciation

1,471,841

1,595,169

Amortization of goodwill

89,90989,909Impairment losses

471,355

731,987

Increase (decrease) in provision for bonuses

137,830(24,917)

Increase (decrease) in allowance for doubtful accounts(2,788)

782

8,865

(187,915)

Increase (decrease) in retirement benefit liability
Interest and dividend income(28,248)(30,316)

Interest expenses

128,652

119,383

Compensation income(22,573)-

Gain on sale of non-current assets(1,694)(2,690)Loss on retirement of non-current assets

22,29336,667

Loss on sale of non-current assets

-

65

5,453

2,796

Gain on cancellation of leasehold contract-(32,247)

Loss (gain) on extinguishment of tie-in shares-(19,867)

Loss (gain) on valuation of investment securities

Decrease (increase) in trade receivables(302,992)(388,640)

Decrease (increase) in inventories

131,247(292,908)

Decrease (increase) in accounts receivable - other

199,320

1,531,763

Increase (decrease) in trade payables

212,494

218,700

Increase (decrease) in accounts payable - other398,256

121,260

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

964,91151,488100,787

Decrease (increase) in consumption taxes refund receivable
Other, net

135,979

182,890

Subtotal

5,119,315

3,245,272

Interest and dividends received
Interest paid
Proceeds from compensation

18,926

21,823(128,763)(120,983)

40,983-

Income taxes paid

(452,648)(1,107,720)

Income taxes refund

107,195

37,522

4,705,007

2,075,913(1,746,315)(1,741,537)

4,439

3,081

Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments for asset retirement obligations(134,143)(240,001)-*2 (830,687)(32,090)(108,429)

Payments of guarantee deposits

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(181,657)(104,534)

Proceeds from refund of guarantee deposits

249,287

233,683

Payments of construction assistance fund receivables
Proceeds from collection of construction assistance fundreceivables
Other, net(19,000)(38,500)

83,33780,124

Net cash provided by (used in) investing activities

16(84,926)(54,959)(1,861,069)(2,801,759)

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
Cash flows from financing activities
Proceeds from long-term borrowings-

1,019,000

Repayments of long-term borrowings(1,018,399)(949,541)

Repayments of finance lease liabilities(149,921)(201,847)(1,015,000)(935,000)

2,733,605

1,235,749-(199,359)

550,284(30,998)

9,071

743

Net increase (decrease) in cash and cash equivalents

3,403,293(756,101)

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

9,431,344

12,834,637-

71,843*1 12,834,637*1 12,150,379

Redemption of bonds
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

17FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Additional InformationSRS Holdings and some consolidated subsidiaries in Japan started using the group tax sharing system in the fiscal
year that ended in March 2023. The accounting treatment of corporate and local corporate income tax and tax
effect accounting and disclosures involving this accounting treatment are in accordance with Practi cal Solution on
the Accounting and Disclosure Under the Group Tax Sharing System ( Practical Issues Task Force (PITF) No. 42,
August 12, 2021).
Notes to Consolidated Balance Sheet*1. The following items are applicable to a non-consolidated subsidiaries.

Investment securities (stocks)

FY3/22(As of Mar. 31, 2022)
50,000(Thousands of yen)
FY3/23(As of Mar. 31, 2023)-

FY3/22(As of Mar. 31, 2022)
62,162(Thousands of yen)
FY3/23(As of Mar. 31, 2023)
52,3482,804,319

2,804,319

357,341

398,5133,223,823

3,255,180*2. Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral

Buildings and structures
Land
Investment securities
Total
Liabilities with collateral

FY3/22(As of Mar. 31, 2022)
Long-term borrowings(including current portion of long-term borrowings)

2,288,770(Thousands of yen)
FY3/23(As of Mar. 31, 2023)
2,608,540*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, March 31, 1999), and recorded “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
FY3/22(As of Mar. 31, 2022)
The difference between the market value of land and bookvalue after revaluation(1,131,912)

18(Thousands of yen)
FY3/23(As of Mar. 31, 2023)(1,147,928)

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

Notes to Consolidated Statement of Income*1. Breakdown of loss on retirement of non-current assets(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 - Mar. 31, 2022) (Apr. 1, 2022 - Mar. 31, 2023)
12,867
18,901
686
556
6,443
7,467
2,295
9,741
0
22,29336,667

Buildings and structures
Machinery, equipment and vehicles
Property, plant and equipment, others
Intangible assets, others
Investment and other assets, others
Total*2. Impairment loss
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)
The Group recognized an impairment loss on the following groups of assets.
(Thousands of yen)Primary use

StoresCorporate assets

Location
Hokkaido
Iwate
Saitama
Chiba
Tokyo
Kanagawa
Niigata
Shizuoka
Aichi

Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama(Overseas)
Taiwan

Osaka

Class
Buildings and structures

Amount215,528

Machinery, equipment and vehicles

4,648

Leased assets

49,895

Property, plant and equipment,
others188,593

Intangible assets, others

2,121

Buildings and structures

4,289

Property, plant and equipment,
others1,362Intangible assets, others

4,916

Total

471,355

The SRS Group regards each store as the base unit in identifying the smallest group of assets that generate cash flows. Assets
for leased and for unused real estate and other assets are grouped individually, and corporate assets are grouped in larger units
that include corporate assets.
For asset groups where operating activities are consistently unprofitable or expected to be unprofitable and asset groups where
the decision has been made to close a restaurant, book values were written down to the amount tha t can be recovered because
the future discounted cash flows from each asset group are less than the book value. These reductions are recorded as asset
impairment losses and classified as extraordinary losses.
The 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%.

19

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
The Group recognized an impairment loss on the following groups of assets.
(Thousands of yen)Primary use

LocationClass
Buildings and structures

StoresHokkaido
Ibaraki
Saitama
Chiba
Tokyo
Kanagawa
Niigata
Shizuoka
Aichi

Mie
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
OkayamaCorporate assets

353,828

Machinery, equipment and vehicles

7,273

Land

4,879

Leased assets

54,469Property, plant and equipment,
others98,318Intangible assets, others

1,921

Investment and other assets, others

Tokyo
Osaka

Amount113

Buildings and structures

53,611

Machinery, equipment and vehicles

13,554

Property, plant and equipment,
others17,476

Intangible assets, others

126,539

Total

731,987

The SRS Group regards each store as the base unit in identifying the smallest group of assets that generate cash flows. Assets
for leased and for unused real estate and other assets are grouped individually, and head office and corporate assets are groupedin larger units that include corporate assets.
For asset groups where business activities are consistently unprofitable or expected to be unprofitable and asset groups wher e
the decision has been made to close a restaurant, book values were written down to the amount that can be recovered because
the future discounted cash flows from each asset group are less than the book value. These reductions are recorded as asset
impairment losses and classified as extraordinary losses. At KAZOKUTEI CO., LTD., operating activities of a large unit that
includes corporate assets have been consistently unprofitable. As a result, based on the determination of the amount that canbe recovered in the future of this large unit including corporate assets, the book value of the corporate assets was complete ly
written off.
The 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 6.3%.
*3. Gain on sales of non-current assets
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 l and.
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
Gain on sales of non-current assets is mainly due to sale of property, plant and equipment, others, and land.

20

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23*4. Subsidies for employment adjustment
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.
*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 COVI D19 under extraordinary losses.

Notes to Consolidated Statement of Comprehensive Income* Reclassification adjustments and tax effect with respect to other comprehensive income(Thousands of yen)
FY3/22
FY3/23(Apr. 1, 2021 – Mar. 31, 2022) (Apr. 1, 2022 – Mar. 31, 2023)
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

49,54849,548(11,647)
37,90067,88467,884(20,758)
47,125(4,677)(4,677)
1,445(3,231)(50,494)(50,494)
15,441(35,053)

3,936
38,604351
12,423

Notes to Consolidated Statement of Changes in Equity
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

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

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 FY3/22 includes our shares (119,000 shares at the
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.

21

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

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 first 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 ofshare

Total dividends(Thousands of yen)

Source offunds

Dividend pershare (Yen)Record date

Effective date

Board of Directors
CommonRetained
March 31,
Meeting on
199,359
5.00
June 30, 2022
sharesearnings
2022
May 13, 2022
Note: Board of Directors resolution on May 13, 2022 includes our dividends (595 thousand yen) held by Custody Bank ofJapan, Ltd. (trust account) as trust assets of the Officer's Share Benefit Trust.
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
1. Type and number of outstanding shares and treasury shares
Number of shares
as of Apr. 1, 2022

Increase

Decrease(Shares)Number of shares
as of Mar. 31, 2023

Outstanding shares
Common shares (Note 1)
39,872,284
1,597,900
41,470,184
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 FY3/23 includes our shares (119,000 shares at the
beginning of FY3/23 and 119,000 shares at the end of FY3/23) 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, 2022

Reportingcompany(Parent
company)

Increase

Decrease

As of Mar.
31, 2023

Balance asof Mar. 31,
2023(Thousandsof yen)First series of stockacquisition rights
Common1,597,900
1,597,900
with exercise pricesharesrevision clause
Total
1,597,900
1,597,900
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 first series of stock acquisition rights with exercise price revision clause was due to the exerciseof stock acquisition rights.

22

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

3. Dividends(1) Dividend payment
Resolution

Type of share

Total dividends(Thousands of yen)

Dividend pershare (Yen)Record date

Effective date

Board of Directors
CommonMeeting on
199,359
5.00 March 31, 2022
June 30, 2022
sharesMay 13, 2022
Note: Board of Directors resolution on May 13, 2022 includes our dividends (595 thousand yen) held by Custody Bank ofJapan, Ltd. (trust account) as trust assets of the Officer's Share Benefit Trust.
(2) Dividends with a record date in FY3/23 but an effective date in FY3/24
Not applicable.

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 amountFY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Cash and deposits

12,834,637

12,150,379

Cash and cash equivalents

12,834,637

12,150,379*2. Main breakdown of assets and liabilities of the company that became a new consolidated subsidiary through a shareacquisition
The breakdown of assets and liabilities at the time of the start of consolidation due to the newly consolidation of NIS Inc.
as a result of a share acquisition and the relationship with the amount of acquisition cost and purchase of shares ofsubsidiaries resulting in change in scope of consolidation are as follows.
(Thousands of yen)
231,048405,879
652,849(228,377)(311,400)

Current assets
Non-current assets
Goodwill
Current liabilities
Non-current liabilities
Acquisition cost of newly consolidated subsidiaries
Cash and cash equivalents of newly consolidated
subsidiaries
Loans to such companies performed between the acquisition
date and the deemed acquisition dateLong-term account payable - other

750,000(154,312)
385,000(150,000)

Balance : Purchase of shares of subsidiaries resulting in

830,687change in scope of consolidation
3. Material non-cash transactions(1) Assets and obligations applicable to finance lease transactions

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(Thousands of yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

647,764-

Assets and obligations applicable to finance leasetransactions

23

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

Business Combinations, etc.
I. Transaction under common control
Absorption and merger of a non-consolidated subsidiary
On December 28, 2021, the SRS Holdings Board of Directors approved a resolution for the absorption and mergerof non-consolidated subsidiary SPACE SUPPLY CO., LTD. A contract for this action was signed on the same day
and, in accordance with the contract, the absorption and merger took place on April 1, 2022.
1. Summary of merger(1) Name and business activities of the merged company
Company to be merged
Name:
SPACE SUPPLY CO., LTD.
Business:
Leasing and management of real estate(2) Date of merger
April 1, 2022
(3) Method of merger
SRS Holdings (surviving company in an absorption-type merger) and SPACE SUPPLY CO., LTD. (dissolving
company in an absorption-type merger) merged through an absorption-type merger.
(4) Company’s name after merger
SRS HOLDINGS CO., LTD.
(5) Purpose
More efficient management by unifying business operations and the optimal utilization of assets
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.”
Extraordinary income of 19,867 thousand yen for a gain on extinguishment of tie -in shares was recorded due tothis absorption and merger.
II. Business combination using an acquisition
1. Summary of merger(1) Name and business activities of the acquired company
Name: NIS Inc.
Business activities: Operation of restaurants(2) Major reasons for the business combination
Based on the philosophy of “contributing to society through food,” the SRS Group has operated a food businesssince its inception that consists of restaurants that serve mainly Japanese cuisine. As of January 31, 2023, the SRSGroup had 573 restaurants in Japan and 21 restaurants in other countries.
The SRS Group is dedicated to earning profits as well as to operating as a social infrastructure for food that isessential for customers and all other stakeholders. Group companies have continuously taken actions to accomplish
this goal. In response to changes in life styles during the past few years due to the pandemic, the SRS Group has
also been placing priority on the expansion of business operations for prepared meals that are consumed at home.
This category includes takeout, delivery and other types of restaurant operations.
In the highly competitive market for restaurants specializing in takeout karaage, NIS has grown steadily since its
inception 12 years ago to 227 locations in Japan and other countries, the largest in this restaurant category. Making
NIS a subsidiary gives SRS Holdings a sound position in the takeout market for karaage, which is one of the best24FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

known and frequently purchased food items in Japan. This is expected to further strengthen SRS Holdings’
portfolio of restaurants in the lower price sector and contribute to accomplishing two goals. One is “targeting
demand for prepared meals that are consumed at home,” a central theme of the new medium-term business plan.
The other is the corporate vision of “building an infrastructure essential for society as a company that can be
successful for 100 years.” Many synergies are anticipated with other SRS Holdings operations, such as cost
reductions by using the large volume procurement of ingredients with other group companies, the development of
new menu items, collaboration with other SRS Holdings restaurants, and other activities. The goal is to use thesebenefits for even higher earnings at franchised TORISHO restaurants and the further expansion of the SRS Group’s
activities for selling prepared meals that are consumed at home.
(3) Date of merger
February 1, 2023 (deemed acquisition date: March 31, 2023)(4) Method of merger
Share acquisition(5) Company’s name after merger
No change.
(6) Percentage of voting rights acquired
100%(7) Major reasons for deciding the acquisition
Purchase of shares by using a cash payment
2. Period of business results of the acquired company included in the consolidated financial statements
In tFY3/23, the acquired company is included only in the consolidated balance sheet. Business results are notincluded in the consolidated financial statements.
3. Breakdown by type of acquisition and acquisition cost
Type of acquisition

Cash

Acquisition cost

750 million yen
750 million yen

4. Details and amount of major acquisition-related costs
Advisory fees, expenses, etc. 34,742 thousand yen
5. The amount of goodwill arising, factors causing goodwill and method and term to amortize goodwill(1) The amount of goodwill arising652,849 thousand yen*At the end of the fiscal year under review, the identification of identifiable assets at the date of the businesscombination have not been completed, and the allocation of acquisition costs has not been completed.
(2) Factors causing goodwill
The acquisition cost of the acquired company at the time of the business combination was higher than the net
assets of this company. As a result, the amount by which the acquisition cost exceeds net assets was recognized as
goodwill.
(3) Method and term to amortize goodwill
Straight-line method over 15 years

25FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

6. Amounts and breakdown of assets acquired and liabilities assumed on the date of the business combination(Thousands of yen)
231,048405,879

Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities

636,927
228,377
311,400

Total liabilities

539,777

7. Approximate amount and calculation method of the impact on the consolidated statement of income for thecurrent fiscal year assuming that the business combination has been completed on the first day of the fiscal year
This information is omitted because the estimated monetary impact is negligible.
Segment and Other Information
Segment information
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) and FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
Omitted since the Group has only a single business segment of food service business.
Related information
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) and FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
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 tha n 10% of net sales on the consolidated statement ofincome.
Information related to impairment losses on non-current assets for each reportable segment
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) and FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
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
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) and FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
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
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022) and FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)
Not applicable.

26

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for FY3/23

Per-share Information

Net assets per share

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)
354.87(Yen)
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)
331.7041.57(35.40)Net income (loss) per share

Diluted net income per share
41.26
Notes: 1. Diluted net income per share in FY3/23 is not presented since the Company has no 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 period for the purpose of calculating net assets per share (119,000 shares for FY3/22 and 119,000 sharesfor FY3/23).
For calculation of net income (loss) per share and diluted net income per share is included in treasury shares, which
is deducted from the calculation of the average number of shares during the period (119,000 shares for FY3/22 and
119,000 shares for FY3/23).
3. Basis for calculating net assets per share is as follows.

Total net assets (Thousands of yen)

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

FY3/23(As of Mar. 31, 2023)
14,055,853

283,106

339,639[3,914][-][279,191][339,639]

14,107,300

13,716,214

39,752,941

41,350,841

FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

1,574,620(1,451,345)--

1,574,620(1,451,345)

37,881,710

40,995,210--

277,530---

Deduction on total net assets (Thousands of yen)[of which share acquisition rights(Thousands of yen)][of which non-controlling interests(Thousands of yen)]
Net assets applicable to common shares(Thousands of yen)
Number of common shares at end of period used in
calculation of net assets per share (Shares)
4. 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.

27