Summary of Financial Statements for the Second Quarter of theFiscal Year Ending December 31, 2017 (J-GAAP) (Consolidated)
August 14, 2017
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: August 14, 2017
Scheduled date of dividend payment: Explanatory documents supplement to the abridged quarterly financial statements: Yes
Briefing for summary of quarterly financial results: Yes (for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2017 (from January 1, 2017,to June 30, 2017)(Percentages indicate year-over-year changes)(1) Consolidated Results of Operations (for six months)
Net sales

Operating income

million yen%

million yen%

million yen

Q2 FY 2017
3,740294
Q2 FY 2016
Note: Comprehensive income (million yen) Q2 FY 2017: 206 (-%)
Net income per share

Profit attributable toowners of parent

Ordinary income%million yen

304

Q2 FY 2016: - (-%)

214-%

-Diluted net income per share
Yen

Yen

Q2 FY 2017
77.56
73.40
Q2 FY 2016
Notes: 1. Because the Company did not prepare quarterly consolidated financial statements for the second quarter of FY
2016, comparisons of changes in earnings between the second quarter of FY 2016 and the second quarter of FY
2017 are not presented.
2. The Company executed a common stock split at the ratio of two shares to one on April 1, 2017, net income pershare and diluted net income per share are calculated under the assumption that the stock split took effect at thestart of the fiscal year ending December 31, 2017.
(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

million yen

million yen%

Q2 FY 2017
4,197
FY 2016
3,708
Reference: Shareholders' equity (million yen)

1,769
1,546

42.2
41.7

Q2 FY 2017: 1,769

FY 2016: 1,546

2. Dividends
Annual dividends
End of Q1

End of Q2
Yen

End of Q3
Yen

FY 2016
0.00
FY 20170.00FY 2017 (forecast)
Note: Revision of the latest published dividend forecast: None

End of fiscal year

Yen

TotalYen

Yen-0.00

0.00

-0.00

0.00

3. Forecast for the Year Ending December 31, 2017 (from January 1, 2017, to December 31, 2017)(Percentages indicate year-over-year changes)

Net sales
Full year

million yen

Operating income% million yen

Ordinary income% million yen

7,593
10.4303
39.0
Note: Revision of the latest published earnings forecast: None359

Profit attributable toowners of parent% million yen

25.7251

Net income pershare%Yen

54.6

90.96

Notes: On April 1, 2017, the Company executed a common stock split at the ratio of two shares to one. Net income per share is calculated
under the assumption that the stock split took effect at the start of the fiscal year ending December 31, 2017.

* Explanatory notes(1) Changes in major subsidiaries during the fiscal quarter(changes in specified subsidiaries in conjunction with change in the scope of consolidation): None
(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): None(iii) Change of accounting estimates(iv) Restatement: None: None(4) Issued shares (common stock)(i) Number of issued shares at end of period
Q2 FY 2017
2,801,200 shares FY 2016
2,757,400 shares(including treasury shares)
Q2 FY 2017
- shares FY 2016
- shares(ii) Number of Treasury shares at end of period
Q2 FY 20172,771,250 shares Q2 FY 2016
- shares(iii) Average number of shares outstanding during the period(cumulative quarterly statistics)
Notes: 1. Because the disclosure of earnings for the second quarter started in the current fiscal year, the average number ofshares outstanding during the second quarter of the fiscal year ending December 31, 2016 is not presented.
2. On September 21, 2016, the Company executed a common stock split at the ratio of 100 shares to 1, and on April 1,
2017, the Company executed a common stock split at the ratio of two shares to one. Outstanding shares (of commonstock) are presented under the assumption that the stock splits took effect at the beginning of the fiscal year ending
December 31, 2016.

* Quarterly summary of financial statements is outside the scope of the quarterly review.
* Explanation and other explanatory notes pertaining to the appropriate use of financial forecasts- These materials contain forward-looking statements including forecasts of the Company’s business performance, which are basedon certain assumptions made in accordance with information currently available and judged to be reasonable and are notintended as a guarantee that the Company will achieve these targets. In addition, actual results may differ materially from theseforecasts as a result of various factors, including actual business performance.
- The Company plans to hold a results briefing for institutional investors and analysts on August 21, 2017. The materials distributedat the results meeting are scheduled to be posted on the Company's website promptly after the meeting.

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Second Quarter of the Year Ending December 31, 2017

1. Consolidated financial statements and major explanatory notes(1) Consolidated balance sheets(units: 1,000 yen)
FY 2016(as of December 31, 2016)

Q2 FY 2017(as of June 30, 2017)

AssetsCurrent assets
Cash and deposits

1,212,782

2,074,854

Notes and accounts receivable - trade

1,180,937

713,041

Electronically recorded monetary claims - operating

Inventories

28,286
302,085

39,773
243,366

Advance payments - trade
Accounts receivable - other

303,092
186,182

332,531
214,181Deferred tax assets
Other

28,62552,08357,48556,440-237-82

3,293,838

3,731,594Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

36,992

38,074-24,178-25,138

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

12,814
719,450-612,552

12,935752,911

Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

106,897-599,415
153,495

639
5,170

639
5,170

-4,960-5,039209

131

Total property, plant and equipment
Intangible assets
Goodwill
Other

120,561

167,201

34,90823,12820,804

Total intangible assets
Investments and other assets
Investment securities
Long-term guarantee deposits

58,03753,654

24,38972,012

24,711
76,046

Deferred tax assets
Insurance funds

54,25376,541

56,98576,625

Other

8,743

10,320235,940

244,689414,539
3,708,377

465,545
4,197,139

Leased assets, net

Total investments and other assets
Total non-current assets
Total assets-3-32,849

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Second Quarter of the Year Ending December 31, 2017

(units: 1,000 yen)
FY 2016(as of December 31, 2016)

Q2 FY 2017(as of June 30, 2017)

Liabilities
Current liabilities
Accounts payable - trade
Current portion of bonds

394,574
40,000409,726
40,000Current portion of long-term loans payable
Lease obligations

85,004
165

81,234137

Accounts payable - otherAccrued expenses

65,206
116,783

98,929187,889

Income taxes payable
Accrued consumption taxes

95,71279,607129,153
76,443

Advances received
Other

952,601
86,6101,150,743
60,946

Total current liabilities

1,916,263

2,235,203

Non-current liabilities
Bonds payable
Long-term loans payable

20,00038,732-Lease obligations
Net defined benefit liability

55
119,903

125,447

Long-term accounts payable - other

66,77866,741

245,468
2,161,732

192,188
2,427,391

Net assets
Shareholders' equity
Capital stock

483,470

491,895

Capital surplus
Retained earnings

255,970
823,957

264,395
1,038,896

1,563,398

1,795,187

Total non-current liabilities
Total liabilities

Total shareholders' equity
Accumulated other comprehensive income

984-17,737

Valuation difference on available-for-sale securities

Deferred gains or losses on hedges-16,752

Accumulated other comprehensive income

1,546,645
3,708,377

Total net assets
Total liabilities and net assets-4-1,087-26,526-25,439

1,769,747
4,197,139

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Second Quarter of the Year Ending December 31, 2017(2) Consolidated statements of income and comprehensive income
Consolidated statement of income
Second quarter

Net sales
Cost of sales(units: 1,000 yen)
Q2 FY 2017 (from January 1,2017, to June 30, 2017)
3,740,518
2,720,332

Gross margin on sales

1,020,185

Selling, general and administrative expenses
Operating income

726,161
294,024

Non-operating income
Interest and dividend income

70
2,887

Foreign exchange gains
Surrender value of insurance

4,090
4,996

Subsidy income
Other

469

Total non-operating income

12,513Non-operating expenses
Interest expenses
Other

1,181
479

Total non-operating expenses

1,661

Ordinary income
Profit before income taxes

304,876
304,876

Income taxes - current
Income taxes - deferred

117,648-27,710

Total income taxes
Profit89,937214,939

Profit attributable to non-controlling interests
Profit attributable to owners of parent

214,939-5-Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Second Quarter of the Year Ending December 31, 2017
Consolidated statement of comprehensive income
Second quarter(units: 1,000 yen)
Q2 FY 2017 (from January 1,2017, to June 30, 2017)
ProfitOther comprehensive income

214,939

Valuation difference on available-for-sale securities

102

Deferred gains or losses on hedges-8,789

Accumulated other comprehensive income-8,686Comprehensive income(Breakdown)

206,252

Comprehensive income attributable to owners of parent

206,252-

Comprehensive income related to non-controlling interests-6-