Summary of Financial Statements for the First Quarter of theYear Ending December 31, 2017 (J-GAAP) (Consolidated）
May 12, 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: May 12, 2017
Scheduled date of dividend payment: Explanatory documents supplement to the abridged quarterly financial statements: NoneBriefing for summary of quarterly financial results: None
(All amounts are rounded down to the nearest million yen)

1. Forecast for the Year Ending December 31, 2017 (from January 1, 2017, to December 31, 2017)(1) Consolidated Results of Operations (for three months)(Percentages indicate year-over-year changes)
Net sales

Operating income

million yen%

million yen%million yen

Q1 FY 2017
2,209263
Q1 FY 2016
Note: Comprehensive income (million yen) Q1 FY 2017: 179 (-%)
Net income per share

Profit attributable toowners of parent

Ordinary income%million yen270

Q1 FY 2016: - (-%)

193-%

-Diluted net income per share
Yen

Yen

Q1 FY 2017
70.13
66.27
Q1 FY 2016
Notes: 1. Because the Company did not prepare quarterly consolidated financial statements for the first quarter of FY 2016,
comparisons of changes in earnings between the first quarter of FY 2016 and the first quarter of FY 2017 are notpresented.
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%

Q1 FY 2017
4,154
FY 2016
3,708
Reference: Shareholders' equity (million yen)

1,731
1,546

41.7
41.7

Q1 FY 2017: 1,731

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

End of fiscal yearYenTotalYen

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

Profit attributable toowners of parent% million yen%

Net income pershareYen

7,593
10.4
303
39.0
359
25.7
251
54.6
90.96
Note: Revision of the latest published earnings forecast: None
Notes: On April 1, 2017, the Company executed a common stock split at the ratio of two shares to one. Net income per shareis 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(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(3) Issued shares (common stock)(i) Number of issued shares at end of period
Q1 FY 2017
2,771,000 shares FY 2016
2,757,400 shares(including treasury shares)
Q1 FY 2017
- shares FY 2016
- shares(ii) Number of Treasury shares at end of period
Q1 FY 2017
2,764,750 shares Q1 FY 2016
- shares(iii) Average number of shares outstanding during the period(cumulative quarterly statistics)
Notes: 1. Because the disclosure of quarterly earnings started in the current fiscal year, the average number of shares
outstanding during the previous fiscal year 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 regarding the appropriate use of financial forecasts
The full-year financial forecasts for the year ending December 31, 2017, remain in place, but because of the lack of visibility of market changes andthe business environment, prompt notification will be made of any changes should they occur.

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

Q1 FY 2017(as of March 31, 2017)

AssetsCurrent assets
Cash and deposits

1,212,782

1,598,176

Notes and accounts receivable - trade

1,180,937

1,224,504

Electronically recorded monetary claims - operating

Inventories

28,286
302,085

35,695279,279

Advance payments - trade
Accounts receivable - other

303,092
186,182

304,050
180,703

Deferred tax assets
Other

28,62552,08345,87862,811-237-277

3,293,838

3,730,822

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

36,992

36,992-24,178-24,647

Buildings and structures, netTools, furniture and fixtures
Accumulated depreciation

12,814
719,450-612,552

12,344
714,759-601,497

106,897

113,261

639
5,170

639
5,170

-4,960-5,000Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

209

170

Total property, plant and equipment
Intangible assets
Goodwill
Other

120,561

126,416

34,90823,12827,856
26,755

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

58,03754,612

24,38972,01225,02676,518Deferred tax assets
Insurance funds

54,25376,541

54,676
76,132

Other

8,743

10,673235,940

243,026

414,539
3,708,377

424,055
4,154,878

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 First Quarter of the Year Ending December 31, 2017

(units: 1,000 yen)
Q1 FY 2017(as of March 31, 2017)

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

394,574
40,000647,366
40,000Current portion of long-term loans payable
Lease obligations

85,004165

85,004165

Accounts payable - otherAccrued expenses

65,206
116,783

55,101
100,202

Income taxes payable
Accrued consumption taxes

95,71279,607

92,97083,159Provision for bonuses
Advances received

952,601

50,085997,037

Other
Total current liabilities
Non-current liabilities
Bonds payable

86,61063,126

1,916,263

2,214,21920,000-

Long-term loans payable
Lease obligations

38,732
55

17,481
13

Net defined benefit liability
Long-term accounts payable - other

119,903
66,778125,046
66,741

245,468

209,282

Total liabilities
Net assets
Shareholders' equity

2,161,732

2,423,501

Capital stock
Capital surplus

483,470
255,970

486,075
258,575

Retained earnings

823,957

1,017,849

1,563,398

1,762,500

984

1,368

-17,737-32,491-16,752
1,546,645-31,123
1,731,376

3,708,377

4,154,878

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 First Quarter of the Year Ending December 31, 2017(2) Consolidated statements of income and comprehensive income
Consolidated statement of income
First quarter

Net sales
Cost of sales(units: 1,000 yen)
FY 2017 (from January 1,2017, to December 31, 2017)
2,209,157
1,596,016

Gross margin on sales

613,141

Selling, general and administrative expenses
Operating income

349,798
263,342

Non-operating income
Interest and dividend income

63

Foreign exchange gains
Surrender value of insurance

3,091
3,817

Other

1,450
8,423

Total non-operating income
Non-operating expenses
Interest expenses

874

Other302

Total non-operating expenses
Ordinary income

1,177
270,588

Profit before income taxes
Income taxes - current
Income taxes - deferred

270,588
87,930-11,233

Total income taxes

76,696

ProfitProfit attributable to non-controlling interests

193,892-Profit attributable to owners of parent

193,892-5-Segue Group Co. Ltd. (3968) Summary of Financial Statements
for the First Quarter of the Year Ending December 31, 2017
Consolidated statement of comprehensive income
First quarter(units: 1,000 yen)
FY 2017 (from January 1,2017, to December 31, 2017)
ProfitOther comprehensive income

193,892

Valuation difference on available-for-sale securities

383

Deferred gains or losses on hedges-14,754

Accumulated other comprehensive income-14,370

Comprehensive income(Breakdown)

179,521Comprehensive income attributable to owners of parent

179,521-Comprehensive income related to non-controlling interests-6-