Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended March 31, 2020
(Based on Japanese GAAP)May 14, 2020
Company name:
SEIKO PMC CORPORATION
Stock exchange listing: Tokyo
Stock code:4963
URL https://www.seikopmc.co.jp/
Representative Director
Representative:
Satoshi Takizawaand PresidentManaging Director, Head of AdministrationInquiries:
Hideki Inouchi
Division
Scheduled date to file Quarterly Securities Report:
May 15, 2020
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

03-6202-7331(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended March 31, 2020 (from January 1, 2020 to March 31, 2020)(1) Consolidated operating results (cumulative)
Net sales
Three months ended March 31, 2020Three months ended March 31, 2019

Millions of yen
6,613
6,722

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(1.6)
593(4.8)593 (10.6)
390 (21.9)
9.0
622
7.1
664
12.7
500
7.0

Earnings per share

Diluted earnings per share

Yen
12.89
16.50

Three months ended March 31, 2020Three months ended March 31, 2019

Yen––(2) Consolidated financial position
Total assets
As of March 31, 2020
As of December 31, 2019

Net assets

Millions of yen35,760
36,225Equity ratio

Millions of yen
27,11827,136%72.0
71.2

2. Cash dividends
Annual dividends per share

Year ended December 31, 2019Year ending December 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
8.00

Yen–

Yen
8.00

Yen
16.00

8.00

–

8.00

16.00

Year ending December 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
28,6502.4
2,700(3.2)
2,760(2.8)
1,860(5.2)
61.34

1

4. Notes(1) Changes in significant subsidiaries during the three months ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

30,743,604 shares As of December 31, 201930,743,604 shares

Number of treasury shares at the end of the period
As of March 31, 2020

422,255 shares As of December 31, 2019422,243 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended March 31, 2020

30,321,350 shares Three months ended March 31, 2019230,321,361 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,663,648
10,916,857

3,245,450
9,100,190

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,409,707
2,437,503

1,088,715
2,493,504

Work in process
Raw materials and supplies

356,563
1,077,577

427,784
1,102,498

Short-term loans receivable
Other

3,697,933
289,8593,449,624
308,194

Allowance for doubtful accounts
Total current assets(11,680)(18,068)

21,837,972

21,197,893

2,726,712

2,699,934

2,441,244
6,660,889

2,426,021
6,636,780

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net

980,307

1,222,190

12,809,154

12,984,926

Intangible assets

72,09066,597

Investments and other assets
Investment securities

964,335

800,492592,908(51,002)761,740(51,000)

Total property, plant and equipment

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

1,506,241

1,511,232

14,387,486

14,562,756

36,225,458

35,760,649

(Thousands of yen)
As of December 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

4,179,503

3,729,200

Short-term borrowings
Current portion of long-term borrowings

730,000
74,498730,000
73,680

Income taxes payable
Provision for bonuses

388,018
665,564

317,266
449,941

Other provisions
Other–
2,133,106

19,7002,528,953

Total current liabilities

8,170,691

7,848,742

Non-current liabilities
Long-term borrowings

689,375

663,379

7,800

7,800

118,894
88,94020,83189,063

Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligationsOther

13,358

12,100Total non-current liabilities

918,368

793,175

9,089,060

8,641,917

Share capital
Capital surplus

2,000,000
1,576,265

2,000,000
1,576,265

Retained earnings
Treasury shares

22,476,443(105,272)

22,624,719(105,284)

Total shareholders' equity

25,947,436

26,095,700

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

325,609

209,546

Deferred gains or losses on hedges
Foreign currency translation adjustment

51
68,640425(26,150)

Remeasurements of defined benefit plans(565,255)(540,912)(170,953)(357,091)

Non-controlling interests

Total accumulated other comprehensive income

1,359,916

1,380,123

Total net assets

27,136,398

27,118,732

36,225,458

35,760,649

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Three months ended

Three months ended

March 31, 2019

March 31, 2020

Net sales
Cost of sales

6,722,246
4,901,342

6,613,501
4,755,786

Gross profit

1,820,904

1,857,715

Selling, general and administrative expenses

1,198,121

1,264,595

622,782

593,119

Interest income
Dividend income

2,116
3,423

4,739
3,423

Purchase discounts
Foreign exchange gains

3,365
15,371

4,240–

Subsidy income
Other

16,2986,900–
11,172

Total non-operating income

47,47623,577

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

3,046

2,871

Sales discounts
Foreign exchange losses

1,323
–

1,287
17,727

Other

1,695

1,303

6,065

23,190Ordinary profit

Total non-operating expenses

664,193593,506

Extraordinary income
Gain on bargain purchase

85,367–

Total extraordinary income

85,367–Extraordinary losses
Loss on sales of non-current assets–381

Loss on retirement of non-current assets
Loss on valuation of investment securities

12,229
–

1,560
7,866

Provision of allowance for doubtful accounts
Loss on step acquisitions

4,000
59,043––75,272

9,808

Profit before income taxes

Total extraordinary losses

674,287

583,698

Income taxes - current
Income taxes - deferred

210,218(60,424)

195,788(38,283)

Total income taxes

149,794

157,504

Profit524,493

426,193

Profit attributable to non-controlling interests

24,21635,346

Profit attributable to owners of parent

500,276

390,846

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Three months ended

Three months ended

March 31, 2019

March 31, 2020

524,493

426,193

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

43,033696(116,063)
374

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

13,74919,895(109,931)
24,343

Share of other comprehensive income of entities accounted
for using equity method

2,458

–

Total other comprehensive income

79,832(201,277)

604,326

224,916

583,661

204,709

20,66420,207

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6