FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

DISCLAIMER
This English translation is only for reference purpose. When there are any discrepancies between original Japanese version andEnglish translation version, the original Japanese version always prevails.
November 6, 2020

Summary of Consolidated Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2021
(Six Months Ended September 30, 2020)[Japanese GAAP]
Company name: SRS HOLDINGS CO., LTD.

Listing: Tokyo Stock Exchange, First Section

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 10, 2020

Scheduled date of payment of dividend:-

Preparation of supplementary references regarding quarterly results:

No

Holding of quarterly results briefing:No(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, 2021
(April 1, 2020 – September 30, 2020)(1) Consolidated operating results
Net sales

Operating profit

Million yen%

Six months ended Sep. 30, 2020
20,490Six months ended Sep. 30, 201922,487
Note: Comprehensive income (million yen)

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

Million yen%

Million yen%

Million yen%(3,067)
207

(4.0)

(8.9)
(2,902)(2,817)2.6
441(13.5)
542
12.2
Six months ended Sep. 30, 2020: (3,085) (-%)
Six months ended Sep. 30, 2019: 153 (down41.7%)

Net income per share

Diluted net income per share

Yen

Yen

(88.52)
6.26-

Six months ended Sep. 30, 2020
Six months ended Sep. 30, 2019(2) Consolidated financial position
Total assets

Net assets

Million yen

As of Sep. 30, 2020
As of Mar. 31, 2020
Reference: Shareholders’ equity (million yen)

Net assets per share

Equity ratio
%

Yen

30.5
38.2
As of Mar. 31, 2020: 12,647

275.82365.01Million yen

31,295
9,716
33,141
12,802As of Sep. 30, 2020: 9,557

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

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2020
0.00
Fiscal year ending Mar. 31, 2021
0.00
Fiscal year ending Mar. 31, 2021
(forecast)
Note: Revisions to the most recently announced dividend forecast: Yes

-

0.00

0.00

-

0.00

0.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)
Net sales
Million yen

Operating profit%

Million yen(Percentages represent year-on-year changes)
Profit attributable to
Net income perowners of parent
share

Ordinary profit%

Million yen

45,0000.8(4,000)(4,000)
Full year
Note: Revisions to the most recently announced earnings forecast: Yes%-

Million yen(5,500)%-Yen(158.73)

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in thescope of consolidation): None
New companies: Excluded companies: (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:
2) Changes in accounting policies other than 1) above:3) Changes in accounting -based estimates:
4) Restatements:

None
None
None
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, 2020:
34,770,184 shares
As of Mar. 31, 2020:
34,770,184 shares
2) Number of treasury shares at the end of period
As of Sep. 30, 2020:
119,343 shares
As of Mar. 31, 2020:
119,343 shares
3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2020:
34,650,841 shares
Six months ended Jun. 30, 2019:33,208,737 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 anumber of factors.

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance.............................................................................

2(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...........................................................................................................
(1) Quarterly Consolidated Balance Sheet.................................................................................................................................
(2) Quarterly Consolidated Statements of Income and Comprehensive Income.......................................................................
Quarterly Consolidated Statement of Income

5
5
7
7

For the Six-month Period.................................................................................................. ..............................................
Quarterly Consolidated Statement of Comprehensive Income

78

For the Six-month Period.................................................................................................. ..............................................

8(3) Quarterly Consolidated Statements of Cash Flows..............................................................................................................

9(4) Notes to Quarterly Consolidated Financial Statements........................................................................................................

10(On Going ConcernAssumption).......................................................................................................................................

10(Additional Information)....................................................................................................................................................

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

10(Significant Changes in Shareholders' Equity)..................................................................................................................

10(Segment and Other Information)......................................................................................................................................

11(Business Combinations, etc.)............................................................................................................................................

11

1

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

1. Qualitative Information on Quarterly Consolidated Financial Results(1) Explanation of Results of Operations①Consolidated Performance(Millions of yen)First six months of FY 3/20

First six months of FY 3/21

(Apr. 1, 2019 - Sep. 30, 2019)(Apr. 1, 2020 - Sep. 30, 2020)

Results

Net Sales

YoY

YoY

change(Amount)change(%)

Results

YoY

YoYchange(Amount)change(%)

22,487578

2.6

20,490(1,997)(8.9)

Operating profit

441

(69)

(13.5)(2,902)(3,343)-

Ordinary profit

542

58

12.2

(2,817)(3,360)

-

207

(8)

(4.0)

(3,067)(3,275)-

Profit attributable toowners of parent

In the first half of the fiscal year ending March 31, 2021, the consolidated financial results were not favorable due to the drop
in demand for eating out due to the infection spread of the new coronavirus (COVID-19). After cancellation of the state of
emergency, economic activity gradually resumed, and with the effects of economic stimulus measures such as "Go To
campaign", consolidated financial results are gradually recovering. However, in urban areas, sales are still sluggish because of
the large impact of the decline in demand due to the refraining from going out and events, the disappearance of inbounddemand, working from home, and the penetration of home-based lessons. As a result, sales for the first half of the current
consolidated cumulative period were lower than the previous year's results, despite the impact of increased sales due to M & A
and new store openings. Gross profit margin decreased due to the impact of the decrease in sales, the increase in the sales
composition ratio of take-out and delivery sales, and the increase in the sales composition ratio of all-you-can-eat shabu-shabu.
As a result, incomes fell significantly below the previous fiscal year's results.
Under these circumstances, our Group continued to implement various measures to respond to the increase in takeout anddelivery demand while ensuring the safety of employees and customers in order to realize our philosophy of "We contribute tosociety through food." At the same time, we focused efforts on reducing fixed costs by reducing delivery costs and rent, andcreating group synergies in the purchasing of foodstuffs and fixtures. In addition, in order to get each business on a growth
track as sales recover, we plan to resume investment in sales promotion measures to strengthen sales of eat-in products and to
improve operational efficiency, while paying close attention to the impact of the re-expansion of the new coronavirus (COVID19).
②Other Measures
At Washoku Sato restaurants, in order to respond to the increase in take-out and delivery demand, new products such as "beefsukiyaki-bento" and "yakiniku-bento" were added, and special take-out campaigns were continued. We have expanded thenumber of stores that can handle delivery services and started experiment of accepting take-out orders from our website. In
addition, aiming for an early recovery of eat-in sales, we carried out "summer discount campaign" and "autumn menu special
discount campaign" as limited-time campaigns while giving maximum consideration to the safety of customers and employees.
As an initiative to improve productivity, we have expanded the number of stores that have introduced an automatic orderingsystem.
At Tendon Tempura Honpo Santen restaurants, we continued a discount campaign limited to take-outs and responded to
growing demand for take-out and delivery. At the same time, as initiatives to acquire new customers, we appealed the tempuraof shrimp volume increase campaign and "high quality" using the first TVCM.
At Nigiri Chojiro restaurants, we sold red sea bream, which is characterized by a moderately greasy and slightly sweet taste,
and pike conger which is the summer seasonal food, as "Chojiro 20th Anniversary Pre-Anniversary". We carried out a "lunch
profitable campaign" that offers standard products on the lunch menu at a special price as a limited-time campaign. In addition,
we have added a set product with hors d'oeuvre and hand-rolled sushi to the take-out menu so that you can enjoy the taste of
Chojiro at home, and expanded the products for sale.
2FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

At Kazokutei, Tokutoku restaurants, in order to respond to the self-restraint of going out due to the corona disaster, as a measure
to expand sales of take-out and delivery, ''Katsudon, Tendon, Oyakodon 399 yen campaign" and expansion of stores that canhandle delivery services aiming to acquire new customers and increase the frequency of visits by existing customers, we held a"Producing area support Kochi / Shikoku edition" fair in the Kazokutei restaurant. And we carried out and sold the higher
volume menu in the Tokutoku restaurant as "Tokutokumorimori" fair. In addition, we continued sales promotion measuresusing LINE as a measure to fix a new customer base, and implemented efforts to create synergies by joining the Group.
At Miyamoto Munashi restaurants, we continued to sell 500 yen lunch on weekdays, expanded the grilled fish menu, and solddraft beer and beef sirloin at special prices for limited-term campaigns in order to acquire the number of customers. We also
expanded our take-out products to enhance sales of take-out and delivery products.
At Katsuya restaurants, in addition to broadcasting TVCM as part of efforts to acquire new customers, we also sold limitedtime products such as "Keichanyaki-chicken-cutlets" and "ginger grilled beef curries".
The segment information is not provided because the SRS Group has only a single segment of food service business.
[SRS Group Restaurants]Name

FY 3/20

Newly opened

Closed(As of Mar. 31, 2020)

restaurants

restaurants

Second quarter of
FY 3/21(As of Sep. 30, 2020)

Washoku Sato

204 ( - )

2(-)

-(-)

206 ( - )Tokutoku*

79 (63)

-(-)

5(3)

74 (60)

Kazokutei*

80 ( 9 )

1(-)

8(-)

73 ( 9 )Nigiri Chojiro*

68 ( - )

-(-)

2(-)

66 ( - )Tendon Tempura Honpo Santen

43 ( 1 )

1(-)

-(-)

44 ( 1 )Meshiya Miyamoto Munashi

55 ( 4 )-(-)

11 ( 1 )

44 ( 3 )Katsuya38 (14)

1(-)

-(-)

39 (14)

Himawari*

13 ( - )

-(-)

4(-)

9(-)

Sushi delivery business*

11 ( 4 )

-(-)

-(-)

11 ( 4 )SUNROLLY FC Business*

32 ( - )-(-)

10 ( - )22 ( - )Others26 ( - )

-(-)

5(-)

21 ( - )Domestic total

649 (95)5(-)

45 ( 4 )

609 (91)

Overseas stores16 ( 9 )

3(3)

-(-)

19 (12)

Worldwide total

665 (104)8(3)45 ( 4 )

628 (103)

Note: Numbers in parentheses represent FC restaurants (domestic) and joint venture restaurants (overseas).
* Nigiri Chojiro includes CHOJIRO restaurants.
* Kazokutei includes Kashunan, Sanpoan, Kazokuan, Kyoshun, and Kyosai restaurants.
* Tokutoku includes Dondontei.
* Himawari includes Sabo-Himawari.
* SUNROLLY FC Business is the total number of stores operated by SUNROLLY Co., Ltd. in Popolamama, Mister Donut,
Doutor Coffee, and Oogamaya restaurants.
(2) Explanation of Financial Position
In the previous fiscal year, temporary accounting was applied for the business combination of us and KAZOKUTEI Co., Ltd.,
which was conducted on February 1, 2020, but it was fixed during the second quarter of the current fiscal year. As a result of
the finalization of this provisional accounting treatment, significant revisions to the initial allocation of acquisition costs have3FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

been reflected in the comparative information included in the quarterly consolidated financial statements for the second quarterof the current fiscal year. In comparing and analyzing with the end of the previous fiscal year, the amount after reflecting therevision of the initial allocation of the acquisition cost due to the finalization of the provisional accounting treatment is used.
Total assets at the end of the second quarter decreased 1,845 million yen from the end of the previous fiscal year to 31,295
million yen.
Current assets decreased 1,390 million yen from the end of the previous fiscal year to 10,482 million yen. This was mainly due
to a decrease of 1,691 million yen in cash and deposits and an increase of 330 million yen in other current assets.
Non-current assets decreased 441 million yen to 20,615 million yen. This was primarily due to a decrease of 134 million yen
guarantee deposits, a decrease of 93 million yen in buildings, net, and a decrease of 78 million yen in intangible assets andother.
Current liabilities decreased 850 million yen from the end of the previous fiscal year to 7,040 million yen. This was mainly
due to a decrease in current liabilities and others of 694 million yen and a decrease in accounts payable of 262 million yen.
Non-current liabilities increased 2,090 million yen to 14,538 million yen. This was mainly due to an increases of 2,662 million
yen in long-term loans payable and a decrease of 547 million yen in bonds payable.
Net assets were 9,716 million yen, a decrease of 3,085 million yen from the end of the previous fiscal year.
(3) Explanation of Cash Flows

Cash and cash equivalents (hereinafter, “net cash”) decreased 1,691 million yen from the end of the previous fiscal
year to 7,185 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 3,240 million yen, compared with 767 million yen provided in thesame period of the previous fiscal year. This was mainly due to loss before income taxes of 3,014 million yen,depreciation of 840 million yen and decrease in accrued consumption taxes of 480 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 785 million yen, compared with 1.301 million yen provided in the same
period of the previous fiscal year. This was mainly due to payments of 726 million yen for the purchase ofproperty, plant and equipment.
(Cash flows from financing activities)
Net cash acquired as a result of financing activities was 2,333 million yen, compared with 1,142 million yen usedin the same period of the previous fiscal year. This was mainly due to income of long-term loans payable of 3,500
million yen and repayments of long-term loans payable of 553 million yen, redemption of bonds of 547 million
yen.
(4) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
Although the consolidated financial forecasts for the fiscal year ending March 2021 was undecided in the "Financial Results
for the Fiscal Year Ending March 2020" announced on May 18, 2020 and in the "First Quarter Financial Results for the Fiscal
Year Ending March 2021" announced on August 7, 2020, we have calculated the full-year consolidated earnings forecast for
the fiscal year ending March 2021 based on the information and forecasts available at this time.
For details, please refer to the "Notice Regarding Revisions to Full-Year Consolidated Earnings Forecasts and Dividends from
Retained Earnings (No Interim Dividend) and Revisions to Year-End Dividend Forecasts" announced on November 6, 2020.

4

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
FY 3/20(As of Mar. 31, 2020)
AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Merchandise
Raw materials and supplies
Current portion of long-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

5

Second quarter of FY 3/21
(As of Sep. 30, 2020)

8,877,696
1,191,318
45,509949,574
76,968
737,651(5,168)
11,873,552

7,185,868
1,209,133
44,461
904,20775,6581,068,124(4,716)
10,482,737

4,154,669
4,270,075
2,696,715
11,121,461

4,060,889
4,270,075
2,685,915
11,016,879

1,404,976
1,476,449
2,881,425

1,338,413
1,397,466
2,735,879

486,482
854,008
4,738,731
629,398
360,816(15,454)
7,053,982
21,056,869
210,909
33,141,330

478,199
849,529
4,604,050
652,149
293,908(14,925)
6,862,912
20,615,671
197,495
31,295,905

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21(Thousands of yen)
FY 3/20(As of Mar. 31, 2020)
Liabilities
Current liabilities
Accounts payable-trade
Current portion of bonds
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for loss on store closing
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities for land revaluation
Deferred tax liabilities
Provision for directors’ retirement benefits
Provision for directors' stock benefits
Liability for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

Second quarter of FY 3/21
(As of Sep. 30, 2020)

1,503,966
1,095,000
771,323
2,308,386
252,740
402,702
1,557,406
7,891,526

1,490,973
1,095,000
1,054,971
2,046,203
93,477
361,530
35,447
863,0297,040,633

7,050,000
1,847,386
82,947388,357
47,893
850
189,725
1,272,015
1,568,567
12,447,743
20,339,270

6,502,500
4,510,223
82,947
389,079
27,753
5,610
193,212
1,244,201
1,582,957
14,538,483
21,579,116

8,532,856
6,391,352(1,322,741)(120,009)
13,481,457

8,532,856
6,391,352(4,390,019)(120,009)
10,414,179

84,92532,731(962,306)
11,07081,061
12,778(962,306)
11,845(833,578)(856,620)

154,182
12,802,060
33,141,330

159,230
9,716,788
31,295,905

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21(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 FY 3/20
(Apr. 1, 2019-Sep. 30, 2019)

First six months of FY 3/21
(Apr. 1, 2020- Sep. 30, 2020)

Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividends income
House rent income
Foreign exchange gains
Subsidy income
Employment adjustment subsidies
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses on real estates
Miscellaneous loss
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on cancellation of leasehold contracts
Compensation income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on cancellation of leasehold contracts
Loss on closing of stores
Provision for loss on store closings
Loss from the new coronavirus(COVID-19)
Total extraordinary losses
Profit (loss) before income taxes

22,487,074
7,709,589
14,777,484
14,336,439
441,044

20,490,027
7,456,279
13,033,747※ 2 15,935,975(2,902,227)

5,771
128,365
34,712
6,483
31,438
206,770

8,324
9,145
73,731337※ 1 27,947※ 2 73,774
29,391
222,652

50,74927,722
26,566
105,037
542,777

61,691
40,61935,672
137,984(2,817,558)

3,999
186
153
4,118
8,459

281
281

25,033
13,29018,60056,924

7,114
94,10831,23535,447※ 3 29,012
196,918

494,312(3,014,195)

Income taxes-current
Income taxes-deferred
Total income taxes
Profit(loss)
Profit(loss) attributable to non-controlling interests

260,804
27,605
288,410
205,901

56,848(8,813)48,034(3,062,230)(2,013)

5,047

207,915(3,067,278)

Profit (loss) attributable to owners of parent

7

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

Quarterly Consolidated Statements of Comprehensive Income(For the Six-month Period)(Thousands of yen)First six months of FY 3/20
(Apr. 1, 2019-Sep. 30, 2019)
Profit(loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

8

First six months of FY 3/21
(April 1, 2020-Sep. 30, 2020)

205,901(3,062,230)(25,524)(20,160)(6,941)(52,627)
153,274(3,864)(19,952)775(23,042)(3,085,272)

155,288(3,090,320)(2,013)

5,047

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)First six months of FY 3/20
(Apr. 1, 2019-Sep. 30, 2019)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Impairment loss
Increase(decrease) in liability for retirement benefits
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in provision for loss on store closings
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Gain or loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable-trade
Decrease(increase) in inventories
Increase (decrease) in notes and accounts payable-trade(
Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accounts payable –other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Cash flows from operating activities
Cash flow from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Proceeds from sales of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments for construction assistance fund receivables
Collections of construction assistance fund receivables
Other,netCash flow from investing activities
Cash flow from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of finance lease obligations
Redemption of bonds
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9First six months of FY 3/21
(Apr. 1, 2020-Sep. 30, 2020)

494,312783,261
86,03013,290-(3,014,195)
840,867
66,562
94,1083,486-(20,140)(42,718)

35,447(41,171)

18,204(981)(134,136)
50,749(186)
25,033(23,765)
26,544(154,369)(292,199)
266,484(112,464)(22,500)
981,570
128,237(50,889)(291,313)
767,605(17,469)
61,691
7,114(17,721)46,477(13,178)(480,458)(77,284)(206,946)(206,614)(2,940,406)
11,872(63,044)(275,842)
27,321(3,240,099)(1,250,170)(12,622)(15,115)
1,889(36,947)
31,137(48,000)
47,279(18,654)(1,301,204)(726,830)(63,621)(100,946)(45,696)
146,153(35,909)44,887(3,775)(785,738)(556,588)(44,481)(342,500)(199,252)(1,142,822)(2,160)(1,678,583)
9,339,721
7,661,138

3,500,000(553,728)(65,586)(547,500)
2,333,184
825(1,691,828)
8,877,696
7,185,868

FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Additional Information
Our company has made changes to the assumptions regarding the impact of the spread of the new coronavirus(COVID-19) describedin the "Accounting Estimates Associated with the Expansion of the new coronavirus(COVID-19)" section of the additional
information in the previous fiscal year's securities report.
In the previous fiscal year, it was difficult to predict the spread of the new corona infectious diseases and the timing of convergence.
Accordingly, assuming that the impact of the new coronavirus (COVID-19) would continue until September 2020, based on
information available as of the end of the previous fiscal year, we made accounting estimates such as determining whether it isnecessary to recognize impairment losses on fixed assets and determining the recoverability of deferred tax assets.
Economic activities gradually resumed after the termination of the Emergency Situation Declaration and have been gradually
recovering, partly due to the effects of economic stimulus measures such as "Go To campaign". However, the impact of the newcoronavirus (COVID-19) continued at the end of the second quarter of the fiscal year under review, and it is difficult to accurately
predict the timing of the future convergence. Accordingly, our company has revised the assumptions used in the accounting estimatesstated in the securities report for the previous consolidated fiscal year, we have reviewed the assumptions that the effects of the newcoronavirus (COVID-19) will continue during the current consolidated fiscal year, and made accounting estimates. The effect of thischange on the consolidated financial statements for the second quarter of the current fiscal year is immaterial.
The timing of convergence for the new coronavirus (COVID-19) is uncertain, and if the impact is prolonged, it may affect the Group's
financial position, operating results and cash flow conditions.
Notes to Consolidated Statement of Income※1 Subsidy income
Current Second Quarter (From Apr. 1, 2020 - Sep. 30, 2020)
Benefits paid by the government and local governments in accordance with the impact of the new coronavirus (COVID-19) arerecorded as non-operating income as subsidy income.
※2 Employment adjustment subsidies
Current Second Quarter (From Apr. 1, 2020 - Sep. 30, 2020)
Due to the impact of the new coronavirus(COVID-19), the special measures of the employment adjustment subsidy was applied to theleave allowance, etc. provided by shortening the business hours of the store and implementing temporary closure. Of the subsidy
payment amount and estimated payment amount of 566,498 thousand yen, 492,723 thousand yen is deducted from the salary andallowance of selling, general and administrative expenses, and the excess amount and estimated excess amount of 73,774 thousand
yen are recorded as non-operating income as an employment adjustment subsidy.
※3 Loss from the new coronavirus (COVID-19)
Current Second Quarter (From Apr. 1, 2020 - Sep. 30, 2020)
In response to the announcement of a state of emergency due to the new coronavirus (COVID-19), some stores of the Group have been
temporarily closed. Fixed costs (depreciation and land rent) incurred during the holiday period are recorded as extraordinary losses as
losses due to the new coronavirus (COVID-19).
Significant Changes in Shareholders' Equity
Not applicable.

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FOR TRANSLATION PURPOSE ONLYSRS HOLDINGS CO., LTD. (8163)
Summary of Financial Results for the Second Quarter of FY3/21

Segment and Other Information
Segment Information
FY3/20 (Apr. 1, 2019 - Sep. 30, 2019) and FY3/21 (Apr.1, 2020 - Sep. 30, 2020)
The SRS Group does not provide segment information because it has only a single business segment of food service business.

Business Combinations, etc.
(Determination of provisional accounting treatment for business combinations)
A preliminary accounting process was carried out on February 1, 2020 for a business combination between us and a family company,
Ltd. in the previous fiscal year, but it was finalized in the second quarter of the fiscal year under review.
With the finalization of this provisional accounting treatment, the comparative information contained in the quarterly consolidated
financial statements for the second quarter of the current consolidated cumulative period reflects a significant review of the initial
allocation of acquisition costs. As a result of the allocation of 637,000 thousand yen for intangible fixed assets and 220,083 thousand
yen to deferred tax liabilities, the provisionally calculated amount of goodwill decreased by 416,916 thousand yen from 1,065,156
thousand yen to 648,239 thousand yen.
There have been no material adjustments to the initial allocation of the acquisition cost for the business combination between the
Company and SUNROLLY Co., Ltd., that occurred on February 1, 2020.

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