Summary of Financial Statements for the Third Quarter of theFiscal Year Ending December 31, 2017 (J-GAAP) (Consolidated)
November 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: November 14, 2017
Scheduled date of dividend payment: Explanatory documents supplement to the abridged quarterly financial statements: None
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 Fiscal Year Ending December 31, 2017 (from January 1, 2017,to September 30, 2017)(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 2017
5,701
13.8
337
161.0
5,009
129
Q3 FY 2016
Note: Comprehensive income (million yen) Q3 FY 2017: 244 (-%)
Net income per share

Profit attributable toowners of parent

Ordinary income%million yen%24495

156.3-351
147.6
141
Q3 FY 2016: -21 (-%)

Diluted net income per share
YenYenQ3 FY 2017
43.84
41.71
20.40
Q3 FY 2016
Notes: 1. Because the Company did not prepare quarterly consolidated financial statements for the third quarter of FY 2015,
comparisons of changes in earnings between the third quarter of FY 2016 are not presented.
2. 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 one hundred shares for one on September 21, 2016, a common stocksplit 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 areassumed to have occurred at the beginning of the fiscal year ended December 31, 2016.
3. Diluted earnings per share data for the third quarter of the fiscal year ended December 2016 is not stated since theshares of the Company were not listed and the average share price during the term was not known.
(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

million yen

million yen%

Q3 FY 2017
4,500
FY 2016
3,708
Reference: Shareholders' equity (million yen)

1,814
1,546

40.3
41.7

Q3 FY 2017: 1,814

FY 2016: 1,546

2. Dividends
Annual dividends
End of Q1

End of Q2
Yen

End of Q3
Yen

FY 2016
0.00
FY 2017
0.00
FY 2017 (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, 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

7,710
12.1
357
63.8
Note: Revision of the latest published earnings forecast: Yes

424

Profit attributable toowners of parent% million yen

48.5

291

Net income pershare%Yen

79.6

52.43

Notes: The Company executed a common stock split at the ratio of two shares for one on April 1, 2017, and a common stock split at the ratioof two shares for one on October 1, 2017. Basic earnings per share has been calculated assuming the stock splits occurred at thebeginning of the fiscal year ending December 31, 2017.

* Explanatory notes(1) Changes in major subsidiaries during the fiscal quarter: 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)(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 2017
5,634,800 shares FY 2016
5,514,800 shares(including treasury shares)
Q3 FY 2017
- shares FY 2016
- shares(ii) Number of Treasury shares at end of period
Q3 FY 2017
5,568,400 shares Q3 FY 2016
4,668,000 shares(iii) Average number of shares outstanding during the period(cumulative quarterly statistics)
Notes: The number of common shares issued and outstanding has been calculated taking into account a common stock split
executed at the ratio of one hundred shares for one on September 21, 2016, 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 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 beginningof the fiscal year ended 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.
.

Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third 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)

Q3 FY 2017(as of September 30, 2017)

AssetsCurrent assets
Cash and deposits

1,212,782

1,948,044

Notes and accounts receivable - trade

1,180,937

1,169,428

Electronically recorded monetary claims - operatingInventories

28,286
302,085

31,228367,076

Advance payments - trade
Accounts receivable - other

303,092
186,182

317,938
125,141

Deferred tax assets
Other

28,62552,08334,82955,819-237-158

3,293,838

4,049,347

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

36,992

38,074-24,178-25,629

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

12,814
719,450-612,552

12,444725,414-579,923

106,897

145,490

639
5,170

639
5,170

-4,960-5,078Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

209

91

Total property, plant and equipment
Intangible assets
Goodwill
Other

120,561

158,666

34,90823,12813,75233,010Total intangible assets
Investments and other assets
Investment securities
Long-term guarantee deposits

58,037

46,76324,38972,012

26,11975,094

Deferred tax assets
Insurance funds

54,25376,54153,13775,019

Other

8,743

16,102

235,940

245,473414,539
3,708,377

450,9034,500,251

Leased assets, net

Total investments and other assets
Total non-current assets
Total assets-3-Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third Quarter of the Year Ending December 31, 2017

(units: 1,000 yen)
Q3 FY 2017(as of September 30, 2017)

FY 2016(as of December 31, 2016)
Liabilities
Current liabilities
Accounts payable - trade
Current portion of bonds

394,574
40,000863,947
20,000Current portion of long-term loans payable
Lease obligations

85,004165

59,98396

Accounts payable - otherAccrued expenses65,206
116,783

65,070117,300

Income taxes payable
Accrued consumption taxes

95,71279,607

Provision for bonuses
Advances received―
952,601

76,062
73,16753,263

Other

86,61061,633

1,916,263

2,492,216

Total current liabilities
Non-current liabilities
Bonds payable

1,101,693

20,000―Long-term loans payable
Lease obligations

38,73255――

Net defined benefit liability
Long-term accounts payable - other

119,903
66,778127,080
66,598245,468

193,678

Total liabilities
Net assets
Shareholders' equity

2,161,732

2,685,895

Capital stock
Capital surplus

483,470
255,970495,048
267,548

Retained earnings

823,957

1,068,097

1,563,398

1,830,693

984

1,954

-17,737-18,292-16,752
1,546,645-16,337
1,814,355

3,708,377

4,500,251

Total non-current liabilities

Total shareholders' equity
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-Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third Quarter of the Year Ending December 31, 2017(2) Consolidated statements of income and comprehensive income
Consolidated statement of income
Third quarter
Q3 FY 2016 (from January 1,2016, to September 30, 2016)
5,009,294
3,879,083(units: 1,000 yen)
Q3 FY 2017 (from January 1,2017, to September 30, 2017)
5,701,122
4,264,519

Gross margin on sales

1,130,211

1,436,603

Selling, general and administrative expenses
Operating income

1,000,995
129,216

1,099,388
337,214

Net sales
Cost of sales

Non-operating income
Interest and dividend income

145
10,193Foreign exchange gains
Surrender value of insurance

4,470
810

179
2,004
6,205

1,933

5,375
2,183

Total non-operating income

17,554

15,947

Non-operating expenses
Interest expenses
Expenses related to stock listing

2,727

1,443
―

Subsidy income
Other

2,000
227

Other641

Total non-operating expenses
Ordinary income

4,955
141,8152,084
351,077

Extraordinary income
Gain on transfer of business
Gain on sales of non-current assets

15,000――Total extraordinary income

15,059―Profit before income taxes
Income taxes - current
Income taxes - deferred

156,875
53,0678,557

351,077
112,200-5,263

Total income taxes

61,624

106,937

ProfitProfit attributable to non-controlling interests

95,250―244,140―

Profit attributable to owners of parent

95,250244,140

59-5-Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the Third Quarter of the Year Ending December 31, 2017
Consolidated statement of comprehensive income
Third quarter

ProfitOther comprehensive income

Q3 FY 2016 (from January 1,2016, to September 30, 2016)
95,250(units: 1,000 yen)
Q3 FY 2017 (from January 1,2017, to June 30, 2017)244,140-643-115,642

969-554-116,286-21,035

415
244,555-21,035

244,555――

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Accumulated other comprehensive income

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