Summary of Financial Statements for the Third Quarter of theYear Ending December 31, 2019 (J-GAAP) (Consolidated）
November 13, 2019
Company
Segue Group Co., Ltd.
Stock Code3968
URL: https://segue-g.jp/
Representative
Yasuyuki Aisu, President and CEO
Contact
Yasuhiro Fukuda, CFO
Expected date of filing of quarterly report: November 13, 2019
Expected starting date of dividend payment: Preparation of quarterly supplementary financial document: Yes
Quarterly results briefing: None

Stock Exchange: Tokyo Stock Exchange

T E L: +81-3-6228-3822（Rounded down to million yen）

１. Consolidated business results for the nine months ended September 2019
(January 1, 2019 through September 30, 2019)(Percentages indicate year-over-year changes)(1) Consolidated results of operations
Net sales

Operating income

Million yen%
Q3 FY 2019
7,379
11.0
6,649
16.6
Q3 FY 2018
(Note) Comprehensive income
Q3 FY 2019: 321 million yen (185.9%)
Q3 FY 2018: 112 million yen (-54.0%)
Net income
per shareYen
Q3 FY 2019
49.95
Q3 FY 2018
54.67

Million yen
438
388

Net income attributableto owners of parent
Million yen%286-7.9310
27.3

Ordinary income%
12.9
15.1

Million yen
439
387%
13.5
10.3

Diluted net income pershareYen
48.85
53.09

(2) Consolidated financial position
Total assets
Million yen
6,241
5,350

Q3 FY 2019
FY 2018(Reference) Shareholders’ equity
Q3 FY 2019: 2,715 million yen
Q3 FY 2018: 2,450 million yen

Shareholders’ equity
ratio

Net assets
Million yen

%
43.5
45.8

2,734
2,450

2. Dividends
End of 1Q

End of 2Q
Yen-Yen
0.00
0.00

FY 2018
FY 2019
FY 2019 (forecast)(Note) Revisions to dividend forecast for the current quarter: Yes

Annual dividend
End of 3Q
Yen-Year-end

Total

Yen
10.00

Yen
10.00

10.00

10.00

1. The Company plans to conduct a 2-for-1 stock split with an effective date of December 1, 2019. Accordingly, the year-end dividend forthe fiscal year ending December 2019 (forecast) has been adjusted to reflect the impact of the stock split.
2. Breakdown of Year-End Dividends for the Fiscal Year Ending December 2019 (Forecast)Ordinary dividend: 5 yen, Commemorative dividend: 5 yen (commemorative dividend for the 25th anniversary of the Company's
founding and the listing on the 1st Section of TSE)
The year-end dividend for the fiscal year ending December 2019 (forecast) without considering the stock split is a total of 20 yen,including an ordinary dividend of 10 yen and a commemorative dividend of 10 yen. This is an increase in the commemorative dividend.
3. The dividend for the fiscal year ended December 2018 is the actual amount before the stock split.
4. Regarding the above stock split and revisions to the dividend forecasts, please refer to the press release "Notice of Stock Split, PartialChanges to Articles of Incorporation associated with the Stock Split, and Revision to Dividend Forecast (Increase in Dividend)" dated
November 13, 2019.

1

3．Forecast of consolidated business results for the year ending December 2019
(Percentages indicate year-over-year changes)(January 1 2019 through December 31, 2019)
Net sales
Million yen

Operating income%

Million yen%

Ordinary income
Million yen%

Net income
attributable to ownersof parent
Million yen%

Net income pershare

Full year
9,476
8.156617.0574
18.1371-1.4(Note) Revisions to business forecast for the current quarter: None
(Note) The Company plans to conduct a 2-for-1 stock split with an effective date of December 1, 2019. Net income per share wascalculated assuming that the stock split was conducted at the beginning of the fiscal year ending December 2019.

Yen

32.45

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes
in the scope of consolidation): None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: Yes: None: None

(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
Q3 FY 2019
5,732,800 shares
FY 2018
5,729,200 shares②Treasury stock at the end of period
Q3 FY 2019118 shares
FY 2018
41 shares③Average number of stock during period (quarterly cumulative period)
Q3 FY 2019
5,731,197 shares
Q3 FY 2018
5,685,148 shares*Quarterly financial summary is not subject to auditing procedures by certified public accountants or auditing
firms.
*Explanation regarding appropriate use of business forecasts and other special instructions
 Forecasts regarding future performance in this material are based on information currently available to the company andcertain assumptions that the company deems to be reasonable at the time this report was prepared. The Company does
not promise about the achivement. Actual results may differ significantly from the forecasts due to various factors.

22. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Thousand yen)
FY 2018(As of December 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Electronically Recorded Monetary Claims
Inventories
Advance payments - trade
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets

Q3 FY 2019
(As of September 30, 2019)

1,663,362
1,166,419
23,445686,196
485,479
266,287
69,027-1,0834,359,135

1,775,039
1,655,188
22,154
528,922576,313
388,039
103,685-2,414
5,046,927

42,974-28,114
14,86059,057-30,548
28,508-

5,003-4,088915

800,792-648,461
152,331639
167,831

848,386-693,729
154,657
639
184,72162,75910,955
144,926
839
219,481

123,150
145,361
40,2701,209
309,992

355,633
93,81367,824
70,1052,241
16,097-2,075
603,639
990,951
5,350,087

438,805
96,06175,97771,701
6,328
17,409-6,162
700,121
1,194,834
6,241,762

Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Automotive equipment
Accumulated depreciation
Vehicles, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term guarantee deposits
Deferred tax assets
Insurance funds
Claims in bankruptcy
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets3

(Thousand yen)
FY 2018(As of December 31, 2018)
Liabilities
Current liabilities
Accounts payable-trade
Current portion of long-term loans payable
Accounts payable
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Advances received
Other
Total current liabilities

Q3 FY 2019
(As of September 30, 2019)595,159
112,106
146,071
129,385
33,017821
1,620,429
48,951
2,685,943

700,995
9,528
99,926
131,895
75,22280,62863,3462,072,137
26,5403,260,219

146,804
66,598
213,4022,899,346

11,865
168,987
66,598247,4503,507,669

505,788278,288
1,520,357-79

506,206
278,706
1,749,323-213

Long-term liabilities
Long-term debt
Obligations for retirement pay
Long-term accounts payable
Total long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

2,304,355

2,534,022

Other accumulated comprehensive income
Valuation difference on securities
Deferred gains or losses on hedges

Total shareholders' equity

147,002-617

181,366
240

Total other accumulated comprehensive income
Share subscription rights

146,385-

181,607
18,4632,450,741
5,350,087

2,734,092
6,241,762

Total net assets
Total liabilities and net assets4Quarterly Consolidated Statements of Income and Statements of Comprehensive Income
Quarterly Consolidated Statement of Income
Third Quarter
Q3 FY 2018
(January 1, 2018September 30, 2018)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income(Thousand yen)
Q3 FY 2019
(January 1, 2019September 30, 2019)

6,649,633
5,025,960
1,623,672
1,235,421
388,251

7,379,802
5,465,618
1,914,183
1,475,825
438,358

Non-operating income
Interest Income and Dividends
Surrender value of insurance
Subsidy income
Other
Total non-operating income

254
14,540880
1,636
17,311

785
7,789
2,724
2,379
13,678Non-operating expenses
Interest expenses
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income

152
17,765463
18,381
387,181

135
11,969540
12,645439,391

Extraordinary income
Gains on sales of investment securities
Gain on reversal of share subscription rights
Total extraordinary income

69,58369,583

209
209

Extraordinary loss
Gains on sales of investment securities
Total extraordinary income
Profit before income taxes

456,765

1,029
1,029
438,572

164,116-18,154
145,962
310,803-

159,376-7,061
152,314286,257-

310,803286,257

Income taxes
Income taxes-deferred
Total income tax
Net income
Net income attributable to owners of non-controllingshareholders
Net income attributable to owners of parent

5

Quarterly Consolidated Statement of Comprehensive Income
Third Quarter(Thousand yen)
Q3 FY 2019
(January 1, 2019September 30, 2019)

Q3 FY 2018
(January 1, 2018September 30, 2018)
Net income
Other comprehensive income
Valuation difference on securities
Deferred gains or losses on hedges
Total other comprehensive income
Comprehensive income
BreakdownComprehensive income attributable toowners of parent
Comprehensive income attributable toowners of non-controlling shareholders

6310,803

286,257-209,579
11,215-198,363
112,439

34,364857
35,221
321,478

112,439

321,478--