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 Year Ended December 31, 2019
(Based on Japanese GAAP)
February 13, 2020
Company name:

SEIKO PMC CORPORATION

Stock exchange listing: Tokyo
Stock code:
4963
Representative:
Inquiries:

URL

https://www.seikopmc.co.jp/

Representative Director and President
Director, Head of Administration Division

Satoshi Takizawa
Hideki Inouchi

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 25, 2020
March 26, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 26, 2020
Yes

Holding of financial results meeting:

Yes

TEL

03-6202-7331(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2019 (from January 1, 2019 to December 31, 2019)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 201927,970
8.0
2,790
41.7
2,839
36.5
1,961
25.6
Year ended December 31, 201825,8893.2
1,969(11.3)
2,080(15.6)
1,561(21.9)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–7.9
8.3
10.0–6.66.5
7.6

Diluted earnings pershare

Yen
64.69
51.51

Year ended December 31, 2019Year ended December 31, 2018
(2) Consolidated financial position

Total assets
As of December 31, 2019
As of December 31, 2018

Net assets

Equity ratio

Millions of yen
36,22532,149Millions of yen
27,13624,112

Cash flows fromoperating activities
Millions of yen
3,278
1,519

Cash flows frominvesting activities
Millions of yen(2,311)(943)

Net assets per share%
71.2
75.0

Yen
850.11795.23(3) Consolidated cash flows

Year ended December 31, 2019Year ended December 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(711)
1,663(564)1,421

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2018Year ended December 31, 2019Year ending December 31, 2020
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%––8.00
8.00––

8.00
8.00

16.00
16.00

485
485

31.1
24.7

2.0
1.9

–

8.00

–

8.00

16.00

1

26.1

3. Forecast of consolidated financial results for the year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)
Net sales
Full year

Millions of yen
28,650Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
2.4
2,700(3.2)
2,760(2.8)
1,860(5.2)
61.34

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 201930,743,604 shares As of December 31, 2018

30,743,604 shares

Number of treasury shares at the end of the period
As of December 31, 2019422,243 shares As of December 31, 2018422,243 shares

30,321,361 shares Year ended December 31, 2018

30,321,450 shares

Average number of shares during the period
Year ended December 31, 20192

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2018

As of December 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,421,385
10,664,515

1,663,648
10,916,857

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,368,324
2,184,805

1,409,707
2,437,503

Work in process
Raw materials and supplies

351,125
1,170,695

356,563
1,077,577

Short-term loans receivable
Other

2,939,040
253,358

3,697,933
289,859

Allowance for doubtful accounts(4,964)(11,680)

20,348,285

21,837,972

10,661,446

11,104,300

Accumulated depreciation(8,215,698)(8,377,587)

Buildings and structures, net

2,445,747

2,726,712

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

20,039,851

21,218,583

Accumulated depreciation(18,014,957)(18,777,338)

2,024,894

2,441,244

Land

Machinery, equipment and vehicles, net

4,466,994

6,660,889

Construction in progress
Other

219,835
2,247,714

712,4622,330,668(1,988,281)(2,062,823)

259,433

267,845

Accumulated depreciation
Other, net

9,416,904

12,809,154

Intangible assets
Investments and other assets

Total property, plant and equipment

74,14572,090Investment securities
Deferred tax assets

1,901,919
230,772

964,335
97,499225,101(47,894)

495,409(51,002)

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

32,309,898

1,506,241

11,800,948

14,387,486

32,149,234

36,225,458

(Thousands of yen)
As of December 31, 2018

As of December 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade3,934,2004,179,503

Short-term loans payable
Current portion of long-term loans payable

730,000–

730,000
74,498

Income taxes payable
Accounts payable-directors' bonuses

279,873
70,300388,018
61,900

Provision for bonuses
Other

550,685
1,804,903

665,564
2,071,206

Total current liabilities

7,369,963

8,170,691

Non-current liabilities
Long-term loans payable–

689,375

Provision for retirement benefits for directors (and otherofficers)

15,9257,800

Retirement benefit liability
Asset retirement obligations

555,700
85,448118,894
88,940Other

9,706

13,358

666,780

918,368

8,036,743

9,089,060

Capital stock
Capital surplus

2,000,000
1,566,178

2,000,000
1,576,265

Retained earnings
Treasury shares

20,999,994(105,272)

22,476,443(105,272)

Total shareholders' equity

24,460,900

25,947,436

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

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

309,511

325,609

Deferred gains or losses on hedges
Foreign currency translation adjustment(1,000)70,1565168,640Remeasurements of defined benefit plans(727,077)(565,255)

Total accumulated other comprehensive income(348,410)(170,953)–

1,359,916

24,112,490

27,136,398

32,149,234

36,225,458

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2018

Fiscal year ended
December 31, 2019

Net sales

25,889,022

27,970,050

Cost of sales

19,361,745

20,251,931

Gross profit

6,527,276

7,718,118

Selling, general and administrative expenses

4,558,131

4,927,935

Operating profit

1,969,144

2,790,182

Non-operating income
Interest income

9,182

16,927

Dividend income
Purchase discounts

20,134
14,89021,96013,388

Share of profit of entities accounted for using equity method
Subsidy income

89,766––20,198Other

59,30451,918

Total non-operating income

193,278

124,392

Interest expenses
Sales discounts

2,900
5,354

13,687
4,604

Foreign exchange losses
Other

66,525
7,584

50,688
5,842

Total non-operating expenses

82,36474,8222,080,058

2,839,752

11,322
–

141
1,005

Gain on sales of memberships
Gain on bargain purchase

696
–

–
85,367

Total extraordinary income

12,01886,514

5–

32,480–35,47759,043Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on step acquisitions
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current

231

4,000

32,71898,5202,059,359

2,827,746

513,219

634,831

Income taxes - deferred(15,782)

56,051

Total income taxes

497,437

690,883

1,561,921

2,136,863–

175,272

1,561,921

1,961,590

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

December 31, 2018

December 31, 2019

1,561,921

2,136,863

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(181,369)(490)

16,0981,052

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(64,985)(248,667)

7,720
161,821

Share of other comprehensive income of entities accounted
for using equity method(45,365)–

Total other comprehensive income(540,879)

186,692

1,021,042

2,323,555

1,021,042

2,139,047–

184,508

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

6Consolidated statements of changes in equity
Fiscal year ended December 31, 2018
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

2,000,000

Retained earnings

1,566,178

Total shareholders'equity

Treasury shares

19,892,895(105,028)

23,354,045

Changes of items during period
Dividends of surplus(454,822)(454,822)

Profit attributable to owners ofparent

1,561,921

1,561,921

Purchase of treasury shares

(243)

(243)

Net changes of items other thanshareholders' equityTotal changes of items during period
Balance at end of current period––

1,107,099(243)

1,106,855

2,000,000

1,566,178

20,999,994(105,272)

24,460,900

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

490,880(509)

180,507

Total
accumulated
Total net assets
otherof defined benefit
comprehensive
plansincomeRemeasurements(478,409)

192,468

23,546,514

Changes of items during period
Dividends of surplus(454,822)

Profit attributable to owners ofparent

1,561,921

Purchase of treasury shares(243)

Net changes of items other thanshareholders' equity(181,369)(490)(110,350)(248,667)(540,879)(540,879)

Total changes of items during period(181,369)(490)(110,350)(248,667)(540,879)

565,976

Balance at end of current period

309,511(1,000)70,156(727,077)(348,410)

24,112,490

7

Fiscal year ended December 31, 2019
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

2,000,000

1,566,178

Retained earnings

Total shareholders'equityTreasury shares

20,999,994(105,272)

24,460,900

Changes of items during period
Dividends of surplus(485,141)(485,141)

Profit attributable to owners ofparent

1,961,590

1,961,590

Change in ownership interest ofparent due to transactions with noncontrolling interests

10,086

10,086

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period–

10,086

1,476,449–

1,486,535

2,000,000

1,576,265

22,476,443(105,272)

25,947,436

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

309,511(1,000)70,156

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements(727,077)(348,410)

Noncontrollinginterests

Total net assets–

24,112,490

Changes of items during period
Dividends of surplus(485,141)

Profit attributable to owners ofparent

1,961,590

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes of items other thanshareholders' equity

10,086

16,0981,052(1,515)

Total changes of items during period

16,0981,052(1,515)

Balance at end of current period

325,60951

68,6408

161,821

177,456

1,359,916

1,537,372

161,821

177,456

1,359,916

3,023,908(565,255)(170,953)

1,359,916

27,136,398

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2018

December 31, 2019

2,059,359

2,827,746

Depreciation
Gain on bargain purchase977,946–

1,072,419(85,367)

Loss (gain) on step acquisitions
Increase (decrease) in allowance for doubtful accounts–(2,426)59,0438,252(207,682)
1,053(203,633)
112,494

Increase (decrease) in provision for retirement benefits for
directors (and other officers)–(8,125)

Increase (decrease) in accounts payable-directors' bonuses
Interest and dividend income

19,010(29,316)(8,400)(38,887)

Interest expenses
Foreign exchange losses (gains)

2,900
56,146

13,68734,523

Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets(11,316)
32,480(141)
35,477–(1,005)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses

Loss (gain) on sales of investment securities
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in notes and accounts receivable - trade(89,766)–(354,935)(91,976)

Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other(355,378)
74,23396,446
10,136

Increase (decrease) in notes and accounts payable - trade
Other, net(155,563)(24,022)(89,981)
87,666

Subtotal

1,992,722

3,830,377

58,177(2,903)38,887(13,680)

Income taxes paid

(528,053)(577,246)

Net cash provided by (used in) operating activities

1,519,942

3,278,337(78,228)–(6,032)
2,055(1,191,629)
16,988(1,486,974)
347(8,802)(27,558)

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments into time deposits–

248,698(52,705)–

Proceeds from withdrawal of time deposits
Proceeds from sales of membership

53,5691,296––Net decrease (increase) in short-term loans receivable
Payments for asset retirement obligations

328,273(11,500)(758,893)–

Payments for guarantee deposits
Other, net(1,040)316(255,817)(27,026)(943,462)(2,311,200)

Net cash provided by (used in) investing activities

9(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Purchase of treasury shares
Payments from changes in ownership interests in subsidiaries

Fiscal year ended

Fiscal year ended

December 31, 2018

December 31, 2019(100,000)––(454,774)(72,247)(500,000)

(243)

–

that do not result in change in scope of consolidation
Other, net–

(130,713)(9,417)(8,125)

Net cash provided by (used in) financing activities(564,435)(711,087)

Effect of exchange rate change on cash and cash equivalents(20,164)(13,787)

Net increase (decrease) in cash and cash equivalents(8,119)242,263

Cash and cash equivalents at beginning of period

1,429,504

1,421,385

Cash and cash equivalents at end of period

1,421,385

1,663,648

10