Summary of Financial Statements for theYear Ended December 31, 2019 (J-GAAP) (Consolidated)
February 13, 2020
CompanySegue Group Co., Ltd.
Stock Code3968
URL: https://segue-g.jp/
Representative
Yasuyuki Aisu, President and CEO
Contact
Yasuhiro Fukuda, CFO
Expected date of annual shareholders’ meeting: March 24, 2020
Expected date of filing of annual securities report: March 25, 2020
Preparation of supplementary financial document: Yes
Results briefing: Yes (for institutional investors and analysts)

Stock Exchange: Tokyo Stock Exchange

T E L: +81-3-6228-3822Expected starting date of dividend payment: March 25, 2020

（Rounded down to million yen）

１. Consolidated business results for the fiscal year ended December 2019
(January 1, 2019 through December 31, 2019)(1) Consolidated results of operations(Percentages indicate year-over-year changes)

Net sales

Operating income

Million yen%
FY 2019
9,646
10.0
8,767
12.5
FY 2018(Note) Comprehensive income:
FY 2019: 371 million yen (223.0%)
FY 2018: 115 million yen (-84.5%)
Net income
per share

Million yen
548
484

Ordinary income%
13.2
26.7

Diluted net incomeper share

Million yen
554
485

Return onequity%
14.1
11.0

Net income attributable toowners of parent

Million yen
411377

Ratio of ordinary
income to total
assets%
9.6
9.3%
9.1
18.3

Ratio of operating
income to net sales

Yen
Yen%
%
FY 2019
35.90
35.11
15.7
5.7
FY 2018
33.15
32.21
15.8
5.5
(Reference) Investment earnings/loss on equity-method:
FY 2019: -million yen
FY 2018: -million yen(Note) The Company conducted a 2-for-1 stock split with an effective date of December 1, 2019. Therefore, net income per share anddiluted net income per share are calculated assuming that the stock split was conducted at the beginning of the previous fiscalyear.

(2) Consolidated financial position
Total assets
Million yen
6,146
5,350

FY 2019
FY 2018

Net assets
Million yen
2,786
2,450

Shareholders’ equity
ratio%
45.0
45.8

Net assets pershareYen
242.58213.88(Reference) Shareholders’ equity:
FY 2019: 2,768 million yen
FY 2018: 2,450 million yen(Note) The Company conducted a 2-for-1 stock split with an effective date of December 1, 2019. Therefore, net assets per share arecalculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

(3) Consolidated results of cash flows

FY 2019
FY 2018

Cash flows fromoperating activities
Million yen
760
434

Cash flows frominvesting activities
Million yen
-179
-297

Cash flows fromfinancing activities
Million yen-66-43

Cash and cash equivalents
at the end of period
Million yen
2,179
1,663

2. Dividends
Annual dividend
End of
End ofYear-end
2Q
3Q
Yen
Yen
Yen
0.00
5.00
0.00
10.00
0.00
10.00

End of1Q
Yen-Total
dividends
paid (total)

Total

Payout ratio(consolidated)

Ratio ofdividend paid
to net assets(consolidated)

Yen
Yen%
FY 2018
5.00
57
15.1
FY 2019
10.00
114
27.9
FY 2020 (forecast)
10.00
26.3(Note)
1. Breakdown of Year-End Dividends for the Fiscal Year Ended December 2019
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)
2. The Company conducted a 2-for-1 stock split with an effective date of December 1, 2019. The year-end dividend for the fiscal year
ended December 2018 reflects the stock split.

Yen
2.4
4.4

3．Forecast of consolidated business results for the year ending December 2020
(January 1, 2020 through December 31, 2020)
Net sales
Million yen

Full year

11,012(Percentages indicate year-over-year changes)

Operating income%Million yen

14.2581%

Ordinary income
Million yen

6.0594%

Net income attributable toowners of parent
Million yen%

7.2

436

Net income
per share

6.1*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes
in the scope of consolidation): None
(2) Changes in accounting policies, accounting estimates and restatement① Changes in accounting policies associated with revision of accounting standards:② Changes in accounting policies other than ①③ Changes in accounting estimates④ Restatement: None: Yes: None: None(3) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included)
FY 2019
11,487,200 shares
FY 2018
11,458,200 shares② Treasury stock at the end of period:
FY 2019236 shares
FY 201882 shares③ Average number of stock during period (cumulative period)
FY 2019
11,464,467 shares
FY 2018
11,383,035 shares(Note) The Company conducted a 2-for-1 stock split with an effective date of December 1, 2019. The number of shares iscalculated assuming that the stock split was conducted at the beginning of the fiscal year ended December 2018.

*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
and certain 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 variousfactors.
・The Company plans to hold a results briefing for institutional investors and analysts on February 19, 2020. The
materials distributed at the results meeting are scheduled to be posted on the Company's website promptly after themeeting.

Yen38.10

Summary of Financial Statements for the Year Ended December 31, 2019 (J-GAAP)

3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(Thousand yen)

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

FY 2018(As of December 31, 2018)

FY 2019(As of December 31, 2019)

1,663,362
1,166,419
23,445686,196
485,479
266,287
69,027-1,083

2,180,682
1,205,503
30,019640,109583,552
303,458
101,808-863

4,359,135

5,044,270

42,974-28,11459,057-31,519

14,86027,537-3,076-2,390

Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Automotive equipment
Accumulated depreciation-685

Tools, furniture and fixtures
Accumulated depreciation

Vehicles, net

800,792-648,461

873,837-719,871

Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

152,331639
167,831

153,965639
7,500
190,328Intangible assets
Goodwill
Software
Software in progress
Other

62,75910,955
144,926
839

116,783
171,848
12,056
1,209

Total intangible assets

219,481

301,897355,633
93,81367,824

335,759
94,472
83,964

Insurance funds
Claims in bankruptcy
Other
Allowance for doubtful accounts

70,1052,241
16,097-2,07578,1572,241
17,290-2,075

Total investments and other assets
Total noncurrent assets
Total assets

603,639
990,951
5,350,087

609,810
1,102,037
6,146,308

Investments and other assets
Investment securities
Long-term guarantee deposits
Deferred tax assets

3Summary of Financial Statements for the Year Ended December 31, 2019 (J-GAAP)(Thousand yen)

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
Long-term liabilities
Long-term debt
Obligations for retirement pay
Long-term accounts payable - otherTotal long-term liabilities
Total liabilities
Net assets
Shareholders' equityCapital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total accumulated other comprehensive income
Share subscription rights
Total net assets
Total liabilities and net assets

4FY 2018

FY 2019(December 31, 2018)(December 31, 2019)595,159
112,106
146,071
129,385
33,017821
1,620,429
48,951
2,685,943

508,448
8,028
104,963
161,415
113,435
79,0551,850
2,079,163
50,5593,106,919146,804
66,598

9,858
176,413
66,598

213,4022,899,346

252,869
3,359,789

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

507,243
279,743
1,874,669-213

2,304,355

2,661,442

147,002-617

106,685-71

146,385
2,450,741
5,350,087

106,613
18,463
2,786,518
6,146,308

Summary of Financial Statements for the Year Ended December 31, 2019 (J-GAAP)(2) Consolidated Statements of Income and Statements of Comprehensive Income
Consolidated Statement of Income(Thousand yen)

FY 2018(January 1, 2018December 31, 2018)
8,767,376
6,598,408

FY 2019(January 1, 2019December 31, 2019)
9,646,836
7,115,166

2,168,967
1,684,502
484,465

2,531,670
1,983,448
548,221

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

350
14,574
2,182
2,486

1,389
10,0362,724
2,853

Total non-operating income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

19,59317,004Non-operating expenses
Interest expenses
Guarantee commission
Foreign exchange loss
Stock issuance cost
Other

152
239
17,349360
141792409,951
300
195

Total non-operating expenses
Ordinary income

18,116
485,942

10,867554,359

Extraordinary income
Gains on sales of investment securities
Gain on reversal of subscription rights to shares

69,583-64,994
209

69,58365,204-

1,029

Total extraordinary loss
Profit before income taxes

555,526

1,029
618,534

Income taxes
Income taxes-deferred

183,707-5,556198,258
8,672

Total income tax
Net income
Net income attributable to owners of non-controlling
Net income attributable to owners of parent

178,151
377,375
377,375

206,930
411,603411,603

Total extraordinary income
Extraordinary loss
Loss on sales of investment securities

5Summary of Financial Statements for the Year Ended December 31, 2019 (J-GAAP)

Consolidated Statement of Comprehensive Income
FY 2018(January 1, 2018December 31, 2018)377,375

Net income
Other comprehensive income
Valuation difference on availablefor-sale securities
Deferred gains or losses on hedges-274,290

Total other comprehensive income
Comprehensive income
BreakdownComprehensive income attributable toowners of parent
Comprehensive income attributable toowners of non-controlling shareholders6(Thousand yen)
FY 2019(January 1, 2019December 31, 2019)
411,603-40,317

12,046545-262,243
115,131-39,772
371,831

115,131371,831--

Summary of Financial Statements for the Year Ended December 31, 2019 (J-GAAP)(3) Consolidated statement of changes in equity
FY 2018 (January 1, 2018 - December 31, 2018)(Thousand yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

498,306

270,806

7,482

7,482

Total shareholders'equity

Treasury shares

1,142,981-

1,912,094

Changes during period
Issuance of new shares

14,964

Dividend of surplus
Net income attributable toowners of parent

377,375

Purchase of treasury
sharesNet changes during period
other than shareholders'equity377,375-79-79-

Total changes during period

7,482

7,482

377,375-79392,261

Balance at end of current
period505,788278,288

1,520,357-79

2,304,355

Accumulated other comprehensive income
Valuation difference on
available-for-salesecurities
Balance at beginning ofcurrent period

421,293

Deferred gains orlosses on hedges

Total accumulated othercomprehensive income-12,663408,629

Share subscription
rightsTotal net assets-2,320,723

Changes during period
Issuance of new shares

14,964

Dividend of surplus
Net income attributable toowners of parent
Purchase of treasury
sharesNet changes during period
other than shareholders'equity377,375-79-274,290

12,046-262,243--262,243

Total changes during period-274,290

12,046-262,243-

130,017

Balance at end of current
period147,002-617

146,385-

2,450,741

7Summary of Financial Statements for the Year Ended December 31, 2019 (J-GAAP)FY 2019 (January 1, 2019 - December 31, 2019)(Thousand yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

505,788278,288

1,454

1,454

1,520,357

Total shareholders'equityTreasury shares-79

2,304,355

Changes during period
Issuance of new shares

2,908

Dividend of surplus-57,291-57,291

Net income attributable toowners of parent

411,603411,603

Purchase of treasuryshares
Net changes during period
other than shareholders'equity-134-134-Total changes during period

1,454

1,454

354,311-134

357,086

Balance at end of current
period507,243

279,743

1,874,669-213

2,661,442

Accumulated other comprehensive income
Valuation difference on
available-for-salesecurities
Balance at beginning ofcurrent period

147,002

Deferred gains orlosses on hedges

Total accumulated othercomprehensive income-617

146,385

Share subscription
rightsTotal net assets-2,450,741

Changes during period
Issuance of new shares

2,908

Dividend of surplus-57,291

Net income attributable toowners of parent
Net income

411,603

Purchase of treasury
sharesNet changes during period
other than shareholders'equity-134-40,317545-39,772

18,463-21,308

Total changes during period-40,317545-39,772

18,463335,777

Balance at end of current
period106,685-71

106,613

18,463

2,786,518

10

Summary of Financial Statements for the Year Ended December 31, 2019 (J-GAAP)(4) Consolidated statement of cash flows(Thousand yen)

FY 2018(January 1, 2018December 31, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwillShare-based compensation expenses
Gain on reversal of subscription rights to shares
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Foreign exchange losses (gains)
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in advance payments
Decrease (increase) in inventories

FY 2019(January 1, 2019December 31, 2019)555,526
98,067
10,213
3,015
14,931-350
152-69,583-515-73,414618,534
111,710
22,905
18,672-209-4,656
15,655-1,389179-63,965-1,03752,819-10,056
82,637-34,679
51,501

Decrease (increase) in advance payments
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Other-167,665-261,208-98,072-141,066

482,134-56,630

446,222-20,544

Subtotal

607,254

972,579

Interest and dividend income received
Interest expenses paid
Income taxes paid

350
-202
-172,577

1,306
-179
-213,196

Cash flows from operating activities

434,824

760,509-50,517
79,692-107,083-128,983-35,445
93,316-82,891-84,899-72,000-96,386-300
115-18,392
20-200
26,438-69
1,078-297,448-179,058-38,732-20,000-55
14,964-79--11,6902,908-134-57,291-43,901
515-66,207
1,037

93,9901,569,371
1,663,362

516,281
1,663,362
2,179,643

Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of subsidiary share capital associated with achange in the scope of consolidation
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Cash flows from investing activities
Cash flows from financing activities
Repayment of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Proceeds from issuance of shares
Purchase of treasury shares
Dividends paid
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the period
Cash and cash equivalents at the end of the period