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 Nine Months Ended September 30, 2019
(Based on Japanese GAAP)
November 13, 2019
Company name:
SEIKO PMC CORPORATION
Stock exchange listing: Tokyo
Stock code:4963
URL https://www.seikopmc.co.jp/
Representative Director
Representative:
Satoshi Takizawa
and President
Director, Head of Administration
Inquiries:
Hideki Inouchi
Division
Scheduled date to file Quarterly Securities Report:
November 14, 2019
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 nine months ended September 30, 2019 (from January 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended September 30, 2019Nine months ended September 30, 2018

Millions of yen
20,74019,093

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
8.6
1,949
38.4
1,962
31.1
1,397
21.3
4.8
1,408(8.5)
1,496 (13.1)
1,152 (16.9)

Earnings per share

Diluted earnings per share

Yen
46.10
38.01

Nine months ended September 30, 2019
Nine months ended September 30, 2018

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2019
As of December 31, 2018

Net assets

Millions of yen
34,48032,149Equity ratio

Millions of yen
26,18624,112

%
72.3
75.0

2. Cash dividends
Annual dividends per share

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

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, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2019 (from January 1, 2019 to December 31, 2019)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
27,280
5.4
2,450
24.4
2,520
21.2
1,810
15.9
59.69

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended September 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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 September 30, 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 September 30, 2019422,243 shares As of December 31, 2018422,243 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended September 30, 2019

30,321,361 shares Nine months ended September 30, 2018

230,321,480 shares

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

As of September 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade1,421,385
10,664,515

2,938,217
9,498,767

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,368,324
2,184,805

1,134,738
2,212,867

Work in process
Raw materials and supplies

351,125
1,170,695

390,554
1,009,256

Short-term loans receivable
Other

2,939,040
253,358

3,090,310
310,823

Allowance for doubtful accounts
Total current assets(4,964)(12,637)

20,348,285

20,572,898

2,445,747

2,703,735

2,024,894
4,466,994

2,101,342
6,564,454

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3479,268

996,746

9,416,904

12,366,278

74,14568,161

1,901,919

899,977455,873(47,894)

624,394(50,997)2,309,898

1,473,374

11,800,948

13,907,814

32,149,234

34,480,713

(Thousands of yen)
As of December 31, 2018

As of September 30, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade3,934,200

3,710,232

Short-term loans payable
Income taxes payable

730,000
279,873730,000
224,813

Provision for bonuses
Current portion of long-term loans payable

550,685–

394,341
71,224

Other provision
Other–
1,875,203

46,4252,017,458

Total current liabilities

7,369,963

7,194,494

Non-current liabilities
Long-term loans payable–

676,878

Provision for directors' retirement benefits
Net defined benefit liability

15,925555,700

7,800313,073

Asset retirement obligations
Other

85,4489,706

86,02516,008

Total non-current liabilities

666,780

1,099,786

8,036,743

8,294,281

Shareholders' equity
Capital stock

2,000,000

2,000,000

Capital surplus
Retained earnings

1,566,178
20,999,994

1,576,265
21,912,699

Treasury shares(105,272)(105,272)

24,460,900

25,383,691

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

309,511(1,000)281,261204

Foreign currency translation adjustment
Remeasurements of defined benefit plans

70,156(727,077)(51,525)(667,391)

Total accumulated other comprehensive income(348,410)(437,451)

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

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

4–

1,240,192

24,112,490

26,186,432

32,149,234

34,480,713

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

Nine months ended

September 30, 2018

September 30, 2019

Net sales
Cost of sales

19,093,084
14,260,419

20,740,512
15,140,906

Gross profit

4,832,665

5,599,605

Selling, general and administrative expenses

3,423,832

3,650,341

Operating profit

1,408,832

1,949,264

Interest income
Dividend income

7,783
14,5108,087
15,019Purchase discounts
Share of profit of entities accounted for using equity method

11,17667,027

10,812–

Subsidy income
Other–
40,344

20,19842,219Total non-operating income

140,842

96,336

Non-operating income

Non-operating expenses
Interest expenses

2,183

9,875

Sales discounts
Foreign exchange losses

4,076
40,3583,670
65,477

Other

6,379

4,576

Total non-operating expenses

52,99883,6001,496,676

1,962,000

Extraordinary income
Gain on sales of non-current assets

230

142

Gain on sales of memberships
Gain on bargain purchase

696––
85,367

Total extraordinary income

926

85,510

5

–

5,608
–

17,971
4,000

Loss on step acquisitions
Other–
50

59,043–

Total extraordinary losses

5,664

81,014

Profit before income taxes

1,491,938

1,966,496

Income taxes - currentIncome taxes - deferred

426,906(87,564)

495,013(40,502)

Ordinary profit

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Provision of allowance for doubtful accounts

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5339,342454,510

1,152,596

1,511,986–

114,139

1,152,596

1,397,846

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

ProfitOther comprehensive income

Nine months ended

Nine months endedSeptember 30, 2018

September 30, 2019

1,152,596

1,511,986

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(56,871)
1,912(28,250)
1,205

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(85,700)
50,320(170,609)
59,686

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

26,857–

Total other comprehensive income(63,481)(137,968)

1,089,114

1,374,017

1,089,114

1,308,805–

65,212Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests6