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 4, 2022

Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2023
(Six Months Ended September 30, 2022)[Japanese GAAP]
Company name: SRS HOLDINGS CO., LTD.
Listing: Tokyo Stock Exchange
Securities code: 8163
URL: https://srs-holdings.co.jp/
Representative: Masahiko Shigesato, President & Chief Executive Officer
Contact:
Masahiro Tanaka, Director & Head of Administration Division
Tel: +81-6-7222-3101
Scheduled date of filing of Quarterly Report:
November 11, 2022
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, 2023
(April 1, 2022 - September 30, 2022)(1) Consolidated operating results
Net sales

Operating profit

Million yen

Six months ended Sep. 30, 2022
25,920Six months ended Sep. 30, 2021
19,114
Note: Comprehensive income (million yen)

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

Million yen

%

35.6
(722)
(762)
(6.7)
(2,588)2,832
Six months ended Sep. 30, 2022:(805) (-%)
Six months ended Sep. 30, 2021:
2,070 (-%)%

Million yen%

Million yen

(864)
2,009

-

Net income per share Diluted net income per share
Yen

Yen

(21.26)
54.38

53.87

Total assets

Net assets

Six months ended Sep. 30, 2022
Six months ended Sep. 30, 2021

(2) Consolidated financial position
Million yen

As of Sep. 30, 2022
As of Mar. 31, 2022
Reference: Shareholders’ equity (million yen)

Equity ratio

Million yen

33,62235,492As of Sep. 30, 2022: 14,322%

14,62914,390
As of Mar. 31, 2022: 14,107

42.6
39.7

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

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2022
0.00
Fiscal year ending Mar. 31, 2023
0.00
Fiscal year ending Mar. 31, 2023
(forecast)
Note: Revisions to the most recently announced dividend forecast: Yes

-

5.00

5.00

-

0.00

0.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
Net sales
Million yen(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent

Operating profit%

Million yen%

Full year
54,00025.9(700)Note: Revisions to the most recently announced consolidated earnings forecasts: Yes

Million yen%

Million yen

%

(800)

-

(1,500)-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, 2022:
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 Sep. 30, 2022:
119,343 shares
As of Mar. 31, 2022:
119,343 shares
3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2022:
40,690,383 shares
Six months ended Sep. 30, 2021:
36,942,569 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 FY3/23

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

2(2) Explanation of Financial Position

3(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(Additional Information)

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

12(Segment and Other Information)

12

1

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

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

Net sales
Operating profit
Ordinary profit
Profit attributable toowners of parent

First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)
YoY change
YoY change
Results(Amount)(%)
19,114(1,375)(6.7)(2,588)
313
2,832
5,650
2,009

5,076

-

(Millions of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)
YoY change
YoY change
Results(Amount)(%)
25,920
6,805
35.6
(722)
1,866
(762)
(3,595)(864)(2,874)-

Sales increased significantly and there was a big decline in the operating loss in the first half of the current fiscal
year as the number of customers increased following the end in late March of all major restrictions in Japan
involving the pandemic. However, there was an operating loss due to the limited recovery in sales caused by a newwave of the COVID-19 pandemic since July, and rapid increases in the cost of raw materials, utilities and otheritems caused primarily by the Ukraine crisis and the yen’s decline. There was also an ordinary loss and loss
attributable to owners of parent compared with profits one year earlier when subsidies for reducing operating hours
were received.
The primary goals of the new medium-term business plan, which started in the fiscal year that ended in March
2022, are achieving a rapid recovery from the impact of the pandemic and making current businesses more
profitable. The SRS Group is speeding up actions for growth in the business climate after the pandemic ends andconstantly working on making current operations more profitable. Examples of these measures include cutting
fixed expenses by combining the head office of KAZOKUTEI Co., Ltd. with the SRS Holdings head office,converting underperforming restaurants to other formats to improve profitability and adding a unified customer
loyalty point stamp function to the app of every group restaurant brand to increase the number of customers who
visit other types of SRS Group restaurants. Activities and an overview of restaurant format operations are as
follows.
Activities in major restaurant formats
Washoku Sato restaurants
To improve earnings following the pandemic downturn and attract an even larger number of customers, Washoku
Sato started selling in September 2022 at all restaurants a new all-you-can-eat yakiniku, shabu-shabu and a la carte
menu item called Sato-Style Yakiniku Premium. Mookata of Thailand, which is meat and vegetables c ooked in apan by diners at the table, was used as the basic idea for the development of original plate. There were many
advertisements on TV, the internet and other channels for this new all -you-can-eat option featuring Washoku Sato
Ambassador Nagisa Shibuya, a member of a well-known all-female idol group. To bring in new customers, aloyalty point stamp function was added to the Washoku Sato app. There were also many activities to increase thenumber of people registered for this app. Due to these activities, the number of app members has been climbing
steadily and in September, reached Washoku Sato’s target number for the second year following the launch of thisapp. In addition, sales were 11,205 million yen, which was 46.4% higher than in the first half of the previous fiscal
year. During the first half of this fiscal year, one restaurant was opened and one was closed, resulting in 207
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 September, some restaurants started
accepting takeout orders from smartphones using the new app, which increases conve nience for customers andproductivity for restaurants. For sales growth, restaurants held limited time only fairs featuring seasonal menu
items. Two examples of seasonal ingredients are nodoguro, which has a delicious fat with plenty of flavor, and2

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

fresh mackerel, which has a firm texture and rich, oily flavor. For takeout orders, restaurants are selling
Omotenashi Zukushi prepared with seasonal ingredients such as tachiuo (beltfish) and see eel. As a result, sales
increased 29.0% year on year to 5,960 million yen.
Tendon Tempura Honpo Santen restaurants
Restaurants held a limited time only 390-yen Festival featuring four popular types of tendon at a price of only 390
yen as many other restaurants were raising prices repeatedly. The festival brought in n ew customers and increased
the frequency of customer visits. In another step to raise sales, restaurants started selling Teriyaki Tsukimi Tendon,
which features a teriyaki sauce and a presentation based on viewing the moon, a seasonal theme. As in the prev ious
fiscal year, there were TV commercials featuring a popular duo Shimofuri Myojo and promotions using LINE (apopular social media app in Japan), Instagram and other internet channels with the goal of bringing in new
customers. As a result, sales increased 9.5% year on year to 1,421 million yen. During the first half, one restaurant
was closed, resulting in 43 locations.
Kazokutei restaurants
To increase the number of customers, restaurants held an Anniversary Festival Campaign to celebrate the 7 0th
anniversary of the Kazokutei Group and periodically conducted a Twitter & Instagram Message Submission
Campaign. For raising the frequency of customer visits, restaurants held a fair featuring regional ingredients basedon the theme of visiting Shikoku and the islands of the Seto Inland Sea. Two featured dishes are tenzaru soba
(tempura with chilled buckwheat noodles) with alfonsino and vegetables from Shikoku and a Shikoku Island breeze
set with fried sea bass from Kagawa prefecture and Aki whitebait rice. As a result, sales increased 40.9% year on
year to 2,064 million yen During the first half, one restaurant was closed, resulting in 66 locations.
Segment information is not provided because the SRS Group has only a single segment of food service b usiness.
2) Opening and closure of restaurants(Number of restaurants)
FY3/22
Second quarter ofRestaurants
Newly opened
ClosedName(As of Mar. 31,
FY3/23planned to open
restaurants
restaurants
2022)(As of Sep. 30, 2022) during FY3/23
Washoku Sato207 (-)1 (-)
1 (-)
207 (-)
4
Kazokutei*
67 (8)- (-)
1 (-)
66 (8)
0
Nigiri Chojiro*
66 (-)- (-)- (-)
66 (-)
3
Tokutoku
63 (50)- (-)
1 (1)62 (49)0Tendon Tempura Honpo Santen
44 (1)- (-)
1 (-)
43 (1)
2
Katsuya41 (14)1 (1)- (-)
42 (15)
7
Meshiya Miyamoto Munashi
38 (2)- (-)
3 (-)
35 (2)
0Sushi delivery business
11 (4)1 (-)
1 (-)
11 (3)
4
Himawari/Sabo-Himawari
9 (-)
- (-)
1 (-)
8 (-)
0
Karayama
6 (-)
- (-)
- (-)
6 (-)
1
M&S FC Business*
20 (-)1 (-)
1 (-)
20 (-)
6
Others18 (-)- (-)
1 (-)
17 (-)
2
Domestic total
590 (79)
4 (1)
11 (2)
583 (78)
29
Overseas stores21 (16)3 (3)2 (1)22 (18)
7Worldwide total
611 (95)
7 (4)
13 (3)
605 (96)36
Note: Numbers in parentheses include franchised, leased-band and joint venture restaurants.
* Kazokutei includes Kashunan, Sanpoan, Kazokuan, Kyoshun, and Kyosai restaurants.
* Nigiri Chojiro includes CHOJIRO restaurants.
* M&S FC Business is the total number of stores operated by M&S FOODSERVICE CO., LTD. in the Popolamama, Mister
Donut, Doutor Coffee, Oogamaya and Shinpachi Shokudo restaurants.

(2) Explanation of Financial Position
Total assets at the end of the second quarter of the current fiscal year decreased 1,869 million yen from the end of
the previous fiscal year to 33,622 million yen.
Current assets decreased 1,370 million yen from the end of the previous fiscal year to 16,494 million yen. Thiswas mainly due to a decrease of 1,621 million yen in accounts receivable-other and an increase of 242 million yen
3FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/23

in raw materials and supplies.
Non-current assets decreased 486 million yen from the end of the previous fiscal year to 16,982 million yen. Thiswas primarily due to decreases of 148 million yen in guarantee deposits, 135 million yen in property and equipment,
others, net and 107 million yen in buildings, net.
Current liabilities decreased 801 million yen from the end of the previous fiscal year to 7,774 million yen. Thiswas mainly due to decreases of 598 million yen in income taxes payable, 145 million yen in accounts payableother and 100 million yen in provision for bonuses.
Non-current liabilities decreased 1,306 million yen from the end of the previous fiscal year to 11,219 million yen.
This was mainly due to decreases of 467 million yen in bonds payable, 439 million yen in long-term borrowings
and 187 million yen in retirement benefit liability.
Net assets were 14,629 million yen, an increase of 238 million yen from the end of the previous fiscal year.
(3) Explanation of Cash Flows
Cash and cash equivalents (hereinafter, “net cash”) decreased 65 million yen from the end of the previous fiscal
year to 12,768 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 854 million yen, compared with 1,528 million yen provided in thesame period of the previous fiscal year. This was mainly due to a loss before income taxes of 806 million yen, adecrease in accounts receivable-other of 1,521 million yen and depreciation of 754 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,022 million yen, compared with 906 million yen used in the same periodof the previous fiscal year. This was mainly due to payments of 850 million yen for the purchase of property, plantand equipment, and purchase of intangible assets of 140 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities was 29 million yen, compared with 312 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 1,236 million yen, redemption of bonds of 467 million yen and repayments of longterm borrowings of 457 million yen(4) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
We have revised the consolidated earnings forecasts which were announced on May 13, 2022 in the Summary of
Financial Results for the Fiscal Year Ended March 31, 2022.
For more details, please refer to the news release “Revisions to the Full Year Earnings Forecasts and Year-end
Dividend Forecasts” announced on November 4, 2022 (Japanese version only).

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Thousands of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

AssetsCurrent assets
Cash and deposits

12,834,637

12,768,914

Accounts receivable - trade

1,724,620

1,713,504

Merchandise

63,02664,304

Raw materials and supplies

807,469

1,049,823

Current portion of long-term loans receivable

72,78568,544

1,855,168

233,617

Other

509,822598,699

Allowance for doubtful accounts(2,184)(2,975)

17,865,346

16,494,433

Buildings, net

3,216,288

3,108,437

Land

3,099,407

3,099,407

Other, net

2,765,272

2,629,514

Total property, plant and equipment

9,080,968

8,837,359

Goodwill

576,917531,963

Other

658,749

653,448

1,235,667

1,185,411

621,780

559,519

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

Intangible assets

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

757,208

652,148

Guarantee deposits

4,322,291

4,173,571

Deferred tax assets

1,148,442

1,199,545

307,099

378,981

Other
Allowance for doubtful accounts(4,923)(4,514)

Total investments and other assets

7,151,899

6,959,252

17,468,535

16,982,022

158,910

146,504

35,492,792

33,622,960

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 FY3/23

FY3/22(As of Mar. 31, 2022)(Thousands of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

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

1,659,167

1,695,118

935,000

935,000

913,044913,889

2,499,651

2,354,262

Income taxes payable

742,630

143,755

Provision for bonuses

495,114394,143

Other

1,331,683

1,338,304

Total current liabilities

8,576,292

7,774,474

Bonds payable

5,100,000

4,632,500

Long-term borrowings

4,010,856

3,570,906

82,947

82,94727,75327,753

19,42024,370211,40223,486

1,243,340

1,189,733

Accounts payable - otherNon-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
Asset retirement obligations
Other

1,830,374

1,667,463

Total non-current liabilities

12,526,094

11,219,160

21,102,386

18,993,635

Share capital

10,454,085

11,077,683

Capital surplus

4,311,642

4,935,240

Retained earnings

145,310(919,026)

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

Total shareholders’ equity

14,791,028

14,973,888

213,260

204,748

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

6

49,52492,282(962,306)(962,306)

15,793

13,932(683,728)(651,341)

3,914

-

279,191

306,779

14,390,406

14,629,325

35,492,792

33,622,960

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/23(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 FY3/22
First six months of FY3/23(Apr. 1, 2021 – Sep. 30, 2021) (Apr. 1, 2022 – Sep. 30, 2022)
19,114,890
25,920,607

Net sales
Cost of sales*2 6,723,823

9,036,790

Gross profit

12,391,067

16,883,817*2 14,979,878

17,606,155(2,588,811)(722,337)

4,760

4,268

Dividend income

9,325

10,165

Rental income from buildings

32,43732,725

14,601-*1 5,396,851-

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

Foreign exchange gains
Subsidy income
Subsidies for employment adjustment*2 33,786-

65,74445,894

5,557,508

93,053

Interest expenses

64,61360,753

Rental expenses on real estate

28,70023,108-54

Miscellaneous income
Total non-operating income
Non-operating expenses

Foreign exchange losses
Miscellaneous losses

42,45449,520Total non-operating expenses

135,768

133,437

2,832,928(762,721)

2,278

1,575

Gain on extinguishment of tie-in shares-

19,867

Gain on cancellation of leasehold contracts-

19,681

2,278

41,124

Loss on retirement of non-current assets

9,633

14,724

Impairment losses

27,23356,422274

14,236

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

Total extraordinary income
Extraordinary losses

Loss on store closings
Loss on COVID-19*3 4,909-

Total extraordinary losses

42,05085,384

Profit (loss) before income taxes

2,793,156(806,981)

Income taxes - current

779,11093,743

Income taxes - deferred(45,071)(63,336)

Total income taxes

734,038

30,407

Profit (loss)

2,059,117(837,388)

Profit attributable to non-controlling interests

50,00527,587

Profit (loss) attributable to owners of parent

2,009,112(864,976)

7

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/23(Quarterly Consolidated Statement of Comprehensive Income)(For the Six-month Period)(Thousands of yen)First six months of FY3/22
First six months of FY3/23(Apr. 1, 2021 – Sep. 30, 2021) (Apr. 1, 2022 – Sep. 30, 2022)
Profit (loss)

2,059,117(837,388)

22,242(8,511)Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(14,448)

42,758Foreign currency translation adjustment

3,587(1,860)Total other comprehensive income

11,38232,3862,070,499(805,002)

2,020,494(832,590)

50,00527,587

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/23(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY3/22
First six months of FY3/23(Apr. 1, 2021 – Sep. 30, 2021) (Apr. 1, 2022 – Sep. 30, 2022)
Cash flows from operating activities
Profit (loss) before income taxes

2,793,156(806,981)

Depreciation

643,464

754,706

Amortization of goodwill

44,95444,954

Impairment losses

27,23356,422

Increase (decrease) in retirement benefit liability

2,802(187,915)

Increase (decrease) in provision for bonuses(2,142)(100,970)

Increase (decrease) in allowance for doubtful accounts(2,204)381

Interest and dividend income(14,085)(14,433)

Interest expenses

64,61360,753Gain on sale of non-current assets(2,278)(1,575)

9,633

14,724

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

Gain on cancellation of leasehold contracts-(19,681)

Loss on retirement of non-current assets

Decrease (increase) in trade receivables

269,571

12,060Decrease (increase) in inventories

159,898(243,151)

Decrease (increase) in accounts receivable - other(2,043,425)

1,521,215

Increase (decrease) in trade payables(334,724)

34,416

Increase (decrease) in accounts payable - other(122,274)(145,561)

Increase (decrease) in accrued consumption taxes(159,004)

533,137

274,144

100,787

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

55,696(29,322)

Subtotal

1,665,028

1,564,100

Interest and dividends received
Interest paid
Proceeds from compensation

9,309

10,079(64,649)(60,655)

18,410-

Income taxes paid

(206,743)(696,856)

Income taxes refund

107,088

37,522

1,528,444

854,191(765,199)(850,380)

3,923

1,959

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets(107,884)(140,387)

Payments for asset retirement obligations(33,890)(32,856)

Payments of guarantee deposits(167,916)(65,949)

Proceeds from refund of guarantee deposits

103,466

74,463

Payments of construction assistance fund receivables
Proceeds from collection of construction assistance fundreceivables
Other, net(9,500)(29,300)

42,93040,762

27,429(20,416)(906,640)(1,022,103)

Net cash provided by (used in) investing activities

9FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/23(Thousands of yen)First six months of FY3/22
First six months of FY3/23(Apr. 1, 2021 – Sep. 30, 2021) (Apr. 1, 2022 – Sep. 30, 2022)
Cash flows from financing activities
Proceeds from long-term borrowings-

19,000

Repayments of long-term borrowings(551,699)(457,055)

Repayments of finance lease obligations(60,921)(101,338)

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

(547,500)(467,500)

1,472,502

1,236,068-(199,359)

312,380

29,8145,934

530

940,119(137,566)

9,431,344

12,834,637-

71,843

10,371,463

12,768,914

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of period

10FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/23(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Additional Information
The impact of the COVID-19 pandemic on the economy continues to have a significant effect on the sales andearnings of the SRS Group.
Estimates used to determine the impairment of non-current assets, the ability to recover deferred tax assets andother items are calculated by using information that is available when the consolidated financial statements areprepared.
Our assumption is that the impact of the pandemic on sales that occurred during the fiscal year that ended in March2022 will slowly decline from the first half to the second half of the current fiscal year, although the rate of decline
will differ depending on business formats and restaurant locations. Estimates of the need for the impairment of
non-current assets and for the ability to use deferred tax assets are based on this assumption.
In the current fiscal year, sales are slowly recovering due to the absence of requests to reduce operating hours andother restrictions involving the pandemic. As of the end of September 2022, the pandemic was still affecting resultsof operations and predicting the end of the pandemic is still impossible. Therefore, the assumptions used fo r theaccounting estimates in the Securities Report for the previous fiscal year have been revised. We now expect the
pandemic to continue to affect results of operations throughout the current fiscal year. This revision has only anegligible effect on the consolidated financial statements for the second quarter of the current fiscal year.
Due to the uncertainty about when the pandemic will end, the SRS Holdings Group ’s financial condition,
performance and cash flows may be impacted if the effects of the pa ndemic continue for a long time.
Notes to Consolidated Statement of Income*1. Subsidy income
First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
Due to the impact of COVID-19, the amount of benefits, etc. paid or expected to be paid by the government andvarious local governments is recorded as subsidy income under non-operating income.
*2. Subsidies for employment adjustment
First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
Special measures for subsidies for employment adjustment were applied to the absence allowance paid due to theshortened operating hours and temporary closure of stores due to the effects of the COVID -19 pandemic.
Accordingly, 554,962 thousand yen in subsidies received or expected to be received, 5,481 thousand yen was
deducted from cost of sales and 515,693 thousand yen was deducted from salaries and allowances in selling,
general and administrative expenses. The excess amount and expected excess amount of 33,786 thousand yen wasclassified as subsidies for employment adjustment in non-operating income.
*3. Loss on COVID-19
First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
Following the declaration of a state of emergency due to the COVID -19 pandemic, some of the SRS Group’s stores
were temporarily closed. The fixed costs (depreciation and land rent) incurred during the period of closure havebeen recorded as loss on COVID-19 under extraordinary losses.

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

Significant Changes in Shareholders’ Equity
I. First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
1. Dividend payment
Not applicable.
2. Significant changes in shareholders’ equity
In the first six months of FY3/22, capital stock and capital surplus increased 742,082 thousand yen each due tothe exercise of share acquisition rights.
On May 18, 2021, in accordance with Article 448, Paragraph 1 of the Companies Act, the capital reserve was
reduced by 4,158,254 thousand yen and this amount was transferred to other capital surplus. Subseque ntly on
the same day, in accordance with Article 452 of the Companies Act, other capital surplus was reduced by
4,000,939 thousand yen and this amount was transferred to retained earnings to offset the retained loss. Thesechanges had no effect on total shareholders’ equity.
II. 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.
Segment and Other Information
First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021) and first six months of FY3/23 (Apr. 1, 2022 – Sep. 30,
2022)
Omitted since the SRS Group has only a single business segment of food service business.

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

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