Summary of Financial Statements for the Third Quarter of theYear Ending December 31, 2018 (J-GAAP) (Consolidated）
November 13, 2018
Stock Exchange: Tokyo Stock Exchange
Company Name: Segue Group Co., Ltd.
Code Number:3968
URL: http://segue-g.jp/
Representative: Yasuyuki Aisu, President and CEO
Contact:
Yasuhiro Fukuda, Director, Manager of Administration Department
Tel.: +81-3-6228-3822
Scheduled date of filing quarterly securities report: November 13, 2018
Scheduled date of dividend payment: ―Explanatory documents supplement to the abridged quarterly financial statements: Yes
Briefing for summary of quarterly financial results: None
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of the Year Ending December 31, 2018(from January 1, 2018, to September 30, 2018)(Percentages indicate year-over-year changes)(1) Consolidated Results of Operations (for nine months)
Net sales

Operating income

million yen%million yen%million yen

Q3 FY 2018
6,649
16.6
388
15.1
5,701
337
Q3 FY 2017
13.8
161.0
Note: Comprehensive income (million yen) Q3 FY 2018: 112 (-54.0%)
Net income per share

Profit attributable toowners of parent

Ordinary income%million yen

387
10.3
351
147.6
Q3 FY 2017: 244 (― %)310244%

27.3
156.3

Diluted net income per share
Yen

Yen

Q3 FY 2018
54.67
53.09
43.84
41.71
Q3 FY 2017
Note: Basic earnings per share and diluted earnings per share for the quarter have been calculated taking into account acommon stock split executed at the ratio of two shares for one on April 1, 2017, and a common stock split executed at
the ratio of two shares for one on October 1, 2017. For the purposes of the said calculations, all stock splits mentioned
are assumed to have occurred at the beginning of the fiscal year ended December 31, 2017.
(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

million yen

Q3 FY 2018
FY 2017
Reference: Shareholders' equity (million yen)million yen

%

2,442
2,320

44.8
40.3

5,449
5,154
Q3 FY 2018: 2,442

FY 2017: 2,320

2. Dividends
Annual dividends
End of Q1

End of Q2
Yen

End of Q3
Yen

FY 2017―0.00
0.00―
FY 2018FY 2018 (forecast)
Note: Revision of the latest published dividend forecast: None―

End of fiscal yearYen―

TotalYen

Yen

0.00

0.00

0.00

0.00

3. Forecast for the Year Ending December 31, 2018 (from January 1, 2018, to December 31, 2018)(Percentages indicate year-over-year changes)

Net sales
Full year

million yen

Operating income% million yen

Ordinary income% million yen

8,436
8.345819.9
Note: Revision of the latest published earnings forecast: None459

Profit attributable toowners of parent% million yen

4.9362

Net income pershare%

Yen

13.5

63.90

* Explanatory notes(1) Changes in major subsidiaries during the fiscal quarter(changes in specified subsidiaries in conjunction with change in the scope of consolidation): Yes
One new company (company name) Falcon System Consulting Co., Ltd.

(2) Application of accounting procedures specific to creation of quarterly consolidated financial statements: None
(3) Change of accounting policies; change or restatement of accounting estimates(i) Change of accounting policies caused by revision of accounting standards : None(ii) Change of accounting policies other than stated in (i)(iii) Change of accounting estimates: None: None(iv) Restatement: None(4) Issued shares (common stock)(i) Number of issued shares at end of period
Q3 FY 2018
5,702,000 shares FY 2017
5,668,800 shares(including treasury shares)
Q3 FY 201841 shares FY 2017
- shares(ii) Number of Treasury shares at end of period
Q3 FY 2018
5,685,148 shares Q3 FY 2017
5,568,400 shares(iii) Average number of shares outstanding during the period(cumulative quarterly statistics)
Note: The number of common shares issued and outstanding has been calculated taking into account a common stock split
executed at the ratio of two shares for one on April 1, 2017, and a common stock split executed at the ratio of two sharesfor one on October 1, 2017. For the purposes of the said calculations, all stock splits mentioned are assumed to haveoccurred at the beginning of the fiscal year ended December 31, 2017.

* Quarterly summary of financial statements is outside the scope of the quarterly review by certified public accountant
or audit firm.
* Explanation and other explanatory notes regarding the appropriate use of financial forecasts- These materials contain forward-looking statements including forecasts of the Company’s business performance, which are based on certain
assumptions made in accordance with information currently available and judged to be reasonable and are not intended as a guarantee that the Company
will achieve these targets. In addition, actual results may differ materially from these forecasts as a result of various factors, including actual businessperformance.

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third Quarter of the Year Ending December 31, 2018

2. Consolidated financial statements and major explanatory notes(1) Consolidated balance sheets(units: 1,000 yen)
FY 2017(as of December 31, 2017)
AssetsCurrent assets
Cash and deposits

Q3 FY 2018(as of September 30, 2018)

1,469,381

1,895,650

1,102,032
14,416

1,003,837
22,790

Securities
Inventories

99,990768,834―
538,809

Advance payments - trade
Accounts receivable - other317,612
225,939438,944426,688

Deferred tax assets
Other

22,60558,28636,90082,433

Notes and accounts receivable - trade
Electronically recorded monetary claims - operating

Allowance for doubtful accounts-143
4,078,956

Total current assets
Non-current assets-88

4,445,965

Property, plant and equipment
39,24442,974

Accumulated depreciation-26,138

Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation

13,105
748,421-596,381-27,599

Buildings and structures

152,040

Tools, furniture and fixtures, net

639
5,170
-5,117

Land
Leased assets
Accumulated depreciation

15,375
800,822-636,454

164,367
639
――

52―

165,838

180,382
65,280Software in progress
Other

6,700
―

100,776

27,917

14,708

Total intangible assets

34,618

180,765

705,105
77,118448,327
76,093

Deferred tax assets
Insurance funds

10,42964,92438,297
63,733

Other
Allowance for loan losses

17,031―

17,737-1,339Leased assets, net
Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets
Investment securities
Long-term guarantee deposits

Total investments and other assets
Total non-current assets
Total assets-3-874,608

642,849

1,075,065
5,154,021

1,003,998
5,449,964

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third Quarter of the Year Ending December 31, 2018

(units: 1,000 yen)
FY 2017(as of December 31, 2017)

Q3 FY 2018(as of September 30, 2018)

Liabilities
Current liabilities
Accounts payable - trade
Current portion of bonds

856,368
20,000883,376―

Current portion of long-term loans payable
Lease obligations

38,73255――

Accounts payable - otherAccrued expenses

103,942
128,417

68,797
133,326

Income taxes payable
Accrued consumption taxes

105,958
64,249104,732
40,062―
1,110,251

59,036
1,444,574

Provision for bonuses
Advances received
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities

92,302

41,3672,520,277

2,775,273

114,549

22,557

Net defined benefit liability
Long-term accounts payable - other131,873
66,598142,714
66,598

Total non-current liabilities

313,020

231,870

Total liabilities
Net assets
Shareholders' equity

2,833,298

3,007,144

Capital stock
Capital surplus

498,306
270,806

503,174
275,674Retained earnings
Treasury shares

1,142,981―

1,453,785

Total shareholders' equity

1,912,094

2,232,554

421,293-12,663

211,713

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Deferred gains or losses on hedges
Accumulated other comprehensive income
Total net assets
Total liabilities and net assets-4--79-1,447

408,629

210,265

2,320,723
5,154,021

2,442,820
5,449,964

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third Quarter of the Year Ending December 31, 2018

(2) Consolidated statements of income and comprehensive income
Consolidated statement of income
Third quarter

Net sales
Cost of sales

Q3 FY 2017 (from January 1,2017, to September 30, 2017)
5,701,122
4,264,519(units: 1,000 yen)
Q3 FY 2018 (from January 1,2018, to September 30, 2018)
6,649,633
5,025,960

Gross margin on sales

1,436,603

Selling, general and administrative expenses
Operating income

1,099,388
337,214

1,623,672
1,235,421
388,251

Non-operating income
Interest and dividend income

179

254

Foreign exchange gains
Surrender value of insurance

2,004
6,205

―
14,540

Other

7,558

2,517

Total non-operating income
Non-operating expenses
Interest expenses

15,947

17,311

1,443

152

Foreign exchange losses
Other―
641

17,765

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred

463

2,084

18,381

351,077

387,181―

69,583―351,077
112,200

69,583456,765
164,116-5,263-18,154

Total income taxes

106,937

145,962

ProfitProfit attributable to non-controlling interests

244,140

310,803――
244,140

Profit attributable to owners of parent-5-310,803

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third Quarter of the Year Ending December 31, 2018
Consolidated statement of comprehensive income
Third quarter(units: 1,000 yen)
Q3 FY 2017 (from January 1,2017, to September 30, 2017)244,140

Q3 FY 2018 (from January 1,2018, to September 30, 2018)
310,803

Valuation difference on available-for-sale securities

969

Deferred gains or losses on hedges-554-209,579

ProfitOther comprehensive income

415
244,555

Accumulated other comprehensive income

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income related to non-controlling interests-6-

11,215-198,363
112,439

244,555

112,439――