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 Six Months Ended June 30, 2020
(Based on Japanese GAAP)
August 7, 2020
Company name:
SEIKO PMC CORPORATION
Stock exchange listing: Tokyo
Stock code:4963
URL https://www.seikopmc.co.jp/
Representative Director
Representative:
Satoshi Takizawa
and PresidentManaging Director, Head of AdministrationInquiries:
Hideki Inouchi
Division
Scheduled date to file Quarterly Securities Report:
August 14, 2020
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

September 8, 2020
Yes

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 six months ended June 30, 2020 (from January 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)
Net sales
Six months ended June 30, 2020
Six months ended June 30, 2019

Millions of yen
12,544
13,532

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(7.3)
970 (21.0)
983 (22.2)
619 (31.2)
7.7
1,228
28.9
1,264
25.4
900
16.2

Earnings per share

Diluted earnings per share

Yen
20.45
29.70

Six months ended June 30, 2020
Six months ended June 30, 2019

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2020
As of December 31, 2019Net assets

Millions of yen
34,891
36,225Equity ratio

Millions of yen
27,46827,136

%
74.6
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
8.00

Yen–

Yen
8.00

Yen
16.00

–

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
25,010 (10.6)
1,820 (34.8)
1,850 (34.9)
1,180 (39.8)
38.92

1

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 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:

No
No

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 June 30, 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 June 30, 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)
Six months ended June 30, 2020

30,321,350 shares Six months ended June 30, 2019230,321,361 shares

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

As of June 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,663,648
10,916,857

3,234,953
8,069,449

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,409,707
2,437,503

1,114,916
2,338,306

Work in process
Raw materials and supplies

356,563
1,077,577

445,174
1,173,839

Short-term loans receivable
Other

3,697,933
289,859

3,440,037
301,351

Allowance for doubtful accounts
Total current assets(11,680)(14,221)

21,837,972

20,103,808

2,726,712

2,692,645

2,441,244
6,660,889

2,424,262
6,672,943

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

980,307

1,394,379

12,809,154

13,184,230

Intangible assets

72,09070,631

Investments and other assets
Investment securities

964,335

835,028Retirement benefit asset
Other–
592,908

55,946672,246

Total property, plant and equipment

Allowance for doubtful accounts(51,002)(30,871)

Total investments and other assets

1,506,241

1,532,349

Total non-current assets
Total assets

3

14,387,486

14,787,211

36,225,458

34,891,019

(Thousands of yen)
As of December 31, 2019

As of June 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

4,179,503

3,195,744

Short-term borrowings
Current portion of long-term borrowings

730,000
74,498730,000
74,908

Income taxes payable
Provision for bonuses

388,018
665,564

257,561
692,279

Other provisions
Other–
2,133,106

39,4001,626,629

Total current liabilities

8,170,691

6,616,523

Non-current liabilities
Long-term borrowings

689,375

655,708

7,800

7,800

118,894
88,940–89,234

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

13,35853,375

Total non-current liabilities

918,368

806,1199,089,060

7,422,643

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)

22,853,807(105,284)

Total shareholders' equity

25,947,436

26,324,788

Total liabilities
Net assets
Shareholders' equity

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

325,609230,144

Deferred gains or losses on hedges
Foreign currency translation adjustment

5168,640

152(973)

Remeasurements of defined benefit plans(565,255)(516,569)(170,953)(287,245)

Non-controlling interests

Total accumulated other comprehensive income

1,359,916

1,430,833

Total net assets

27,136,398

27,468,376

36,225,458

34,891,019

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)Six months ended

Six months endedJune 30, 2019

June 30, 2020

Net sales
Cost of sales

13,532,282
9,889,178

12,544,171
9,144,165

Gross profit

3,643,103

3,400,005

Selling, general and administrative expenses

2,414,770

2,429,235

Operating profit

1,228,333

970,769

Interest income
Dividend income

6,946
11,215

15,687
12,092

Purchase discounts
Subsidy income

6,716
20,198

7,354
–

Other

32,17034,205

Total non-operating income

77,247

69,339Interest expenses
Sales discounts

6,513
2,448

5,737
2,538

Foreign exchange losses
Other28,578
3,337

41,211
7,274

Total non-operating expenses

40,87756,761

1,264,703

983,348

Gain on sales of non-current assets
Gain on bargain purchase585,367––

Total extraordinary income

85,373–Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets–

380

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

14,491
–

5,634
7,866

Impairment loss
Provision of allowance for doubtful accounts

–
4,000

10,326–

Loss on step acquisitions

59,043–

Total extraordinary losses

77,53424,2081,272,542

959,140

270,132

214,311

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

37,512

46,864

Total income taxes

307,644

261,175

Profit964,898

697,964

Profit attributable to non-controlling interests

64,271

78,029Profit attributable to owners of parent

900,626

619,9345

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

ProfitOther comprehensive income

Six months ended

Six months ended

June 30, 2019

June 30, 2020
964,898

697,964

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(16,410)330(95,464)
101

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(132,485)
39,790(61,224)
48,686

Total other comprehensive income(108,774)(107,901)

856,123590,062

840,749

503,643

15,374

86,419Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activitiesProfit before income taxes

Six months ended

Six months ended

June 30, 2019

June 30, 2020

1,272,542

959,140

501,395(85,367)

558,622–––

10,326
7,866

Loss (gain) on step acquisitions
Increase (decrease) in allowance for doubtful accounts

59,043
6,309

–
2,687

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses(84,209)
12,133(104,687)
26,335

Increase (decrease) in other provisions
Increase (decrease) in accounts payable-directors' bonuses

22,825(70,300)

39,400(61,900)

Interest and dividend income
Interest expenses(18,162)
6,513(27,779)
5,737

Foreign exchange losses (gains)
Loss (gain) on sales of non-current assets

24,791(5)

32,750380

Loss on retirement of non-current assets
Decrease (increase) in trade receivables

14,491
712,717

5,634
3,099,970

Decrease (increase) in inventories
Increase (decrease) in trade payables

182,705(321,239)(89,201)(977,345)

Decrease (increase) in accounts receivable - other
Other, net(4,514)(16,168)(4,837)(454,818)

2,215,499

3,028,282

18,162(6,519)

27,169(5,763)

Depreciation
Gain on bargain purchase
Impairment loss
Loss (gain) on valuation of investment securities

SubtotalInterest and dividends received
Interest paid
Income taxes paid

(267,323)(307,406)

Net cash provided by (used in) operating activities

1,959,819

2,742,281

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(901,670)
213(1,067,900)
343

Purchase of investment securities
Purchase of intangible assets(2,999)(11,103)(3,069)(12,094)

Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation

248,698–––(187,487)
191,859–
399,175

5,064
257,896

Cash flows from investing activities

Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales of membership
Net decrease (increase) in short-term loans receivable
Other, net(26,019)(15,403)

Net cash provided by (used in) investing activities(293,705)(830,791)

7

(Thousands of yen)

Cash flows from financing activities
Repayments of long-term borrowings
Dividends paidPayments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Six months ended

Six months ended

June 30, 2019

June 30, 2020
(36,328)(36,942)(257,698)(242,139)(130,713)–(4,842)(3,070)(429,583)(282,151)(46,195)(58,032)

Net increase (decrease) in cash and cash equivalents

1,190,334

1,571,305

Cash and cash equivalents at beginning of period

1,421,3851,663,648

Cash and cash equivalents at end of period

2,611,719

3,234,953

8