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, 2018
(Based on Japanese GAAP)
February 13, 2019
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 26, 2019
March 27, 2019

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

March 27, 2019
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, 2018 (from January 1, 2018 to December 31, 2018)(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, 201825,8893.2
1,969(11.3)
2,080(15.6)
1,561(21.9)
Year ended December 31, 201725,0863.0
2,220(3.5)
2,464
6.5
1,999
11.4

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–6.6
6.5
7.6
–
8.97.98.9

Diluted earnings pershare

Yen
51.51
65.94

Year ended December 31, 2018Year ended December 31, 2017(2) Consolidated financial position

Total assets
As of December 31, 2018
As of December 31, 2017

Net assets

Equity ratio

Millions of yen
32,224
32,106

Millions of yen
24,112
23,546

Cash flows fromoperating activities
Millions of yen
1,519
1,646

Cash flows frominvesting activities
Millions of yen(943)(1,213)

Net assets per share%
74.8
73.3

Yen
795.23776.56(3) Consolidated cash flows

Year ended December 31, 2018Year ended December 31, 2017

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(564)
1,421(372)1,429

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

Year ended December 31, 2017
Year ended December 31, 2018Year ending December 31, 2019
(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%%––

6.00
8.00

––

7.00
8.00

13.00
16.00

394
485

19.7
31.1

1.7
2.0

–

8.00

–

8.00

16.00

1

28.5

3. Forecast of consolidated financial results for the year ending December 31, 2019 (from January 1, 2019 to December 31, 2019)
Net sales
Millions of yen
Six months ending
June 30, 2019
Full year

Percentages 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

13,740

9.4

960

0.7

1,010

0.2

690

(11.0)

22.7628,400

9.7

2,320

17.8

2,400

15.4

1,700

8.8

56.07

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(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, 2018

30,743,604 shares As of December 31, 2017

30,743,604 shares

Number of treasury shares at the end of the period
As of December 31, 2018422,243 shares As of December 31, 2017

422,028 shares

30,321,450 shares Year ended December 31, 2017

30,321,672 shares

Average number of shares during the period
Year ended December 31, 20182

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2017

As of December 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

1,429,504
11,154,652

1,421,385
10,664,515

Electronically recorded monetary claims - operating
Merchandise and finished goods

631,457
1,972,755

1,368,324
2,184,805

Work in process
Raw materials and supplies

273,460
1,119,257

351,125
1,170,695

Deferred tax assets
Short-term loans receivable

275,5093,267,313

293,830
2,939,040

295,899(7,645)

253,358(4,964)

20,412,16520,642,115

10,436,486(8,024,352)

10,661,446(8,215,698)

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

2,412,133

2,445,747

Machinery, equipment and vehicles
Accumulated depreciation

19,660,671(17,579,921)

20,039,851(18,014,957)

2,080,749

2,024,894

LandConstruction in progress

4,472,316
57,636

4,466,994
219,835

Other
Accumulated depreciation

2,253,386(1,960,277)

2,247,714(1,988,281)

Machinery, equipment and vehicles, net

Other, net
Total property, plant and equipment
Intangible assets

293,109259,433

9,315,945

9,416,904

95,47574,145Investments and other assets
Investment securities

2,066,501

1,901,919

Deferred tax assets
Other

15,271
248,567

11,778225,101

Allowance for doubtful accounts(47,725)(47,894)

Total investments and other assets

2,282,614

2,090,905

Total non-current assets
Total assets

3

11,694,035

11,581,955

32,106,200

32,224,070

(Thousands of yen)
As of December 31, 2017

As of December 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade4,109,458

3,934,200

Short-term loans payable
Income taxes payable

830,000
283,978730,000
279,873

Accounts payable-directors' bonuses
Provision for bonuses

51,290550,853

70,300550,685

Asset retirement obligations
Other

11,5001,946,536–
1,804,903

Total current liabilities

7,783,617

7,369,963

Non-current liabilities
Provision for directors' retirement benefits

15,925

15,925Net defined benefit liability
Asset retirement obligations

405,071
84,363555,700
85,448Deferred tax liabilities
Other

259,405
11,30474,836
9,706

Total non-current liabilities

776,069

741,6178,559,686

8,111,580

Shareholders' equity
Capital stock

2,000,000

2,000,000

Capital surplus
Retained earnings

1,566,178
19,892,895

1,566,178
20,999,994

Treasury shares(105,028)(105,272)

23,354,045

24,460,900

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

490,880(509)

309,511(1,000)Foreign currency translation adjustmentRemeasurements of defined benefit plans

180,507(478,409)

70,156(727,077)

Total accumulated other comprehensive income

192,468(348,410)

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4

23,546,514

24,112,490

32,106,200

32,224,070

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2017

Fiscal year ended
December 31, 2018

Net sales

25,086,913

25,889,022

Cost of sales

18,366,379

19,361,745

Gross profit

6,720,533

6,527,276

Selling, general and administrative expenses

4,499,976

4,558,131

Operating profit

2,220,557

1,969,144

Non-operating income
Interest income

10,317

9,182

Dividend income
Purchase discounts

23,974
13,05020,134
14,890Foreign exchange gains
Share of profit of entities accounted for using equity method

17,181
146,328–
89,766

Other

48,24359,304

Total non-operating income

259,096

193,278

Interest expenses
Sales discounts

2,908
5,504

2,900
5,354

Foreign exchange losses
Other

–
6,742

66,525
7,584

Total non-operating expenses

15,15682,3642,464,497

2,080,058

279
77,697

11,322–Non-operating expenses

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

696

77,977

12,018Loss on sales of non-current assets
Loss on retirement of non-current assets–
13,1005
32,480

Impairment loss
Other

34,023––231

Total extraordinary income
Extraordinary losses

47,12332,718

Profit before income taxes

Total extraordinary losses

2,495,351

2,059,359

Income taxes - current
Income taxes - deferred

513,419(17,600)

513,219(15,782)

Total income taxes

495,819

497,437

Profit1,999,532

1,561,921

Profit attributable to owners of parent

1,999,532

1,561,921

5

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

December 31, 2017

December 31, 2018

1,999,532

1,561,921

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

74,327(1,858)(181,369)(490)

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

28,816
143,191(107,892)(248,667)

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

42,906(2,458)

Total other comprehensive income

287,383(540,879)

2,286,915

1,021,042

2,286,915

1,021,042––

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, 2017
(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'equityTreasury shares

18,257,223(104,834)

21,718,567

Changes of items during period
Dividends of surplus(363,860)(363,860)

Profit attributable to owners ofparent

1,999,532

1,999,532

Purchase of treasury shares

(194)

(194)

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

1,635,671(194)

1,635,477

2,000,000

1,566,178

19,892,895(105,028)

23,354,045

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

416,553

1,348

108,784

Total
accumulated
Total net assets
otherof defined benefit
comprehensive
plansincomeRemeasurements(621,601)(94,914)

21,623,652

Changes of items during period
Dividends of surplus(363,860)

Profit attributable to owners ofparent

1,999,532

Purchase of treasury shares(194)

Net changes of items other thanshareholders' equity

74,327(1,858)71,723

143,191

287,383

287,383

Total changes of items during period

74,327(1,858)71,723

143,191

287,383

1,922,861

Balance at end of current period

490,880(509)

180,507(478,409)

192,468

23,546,514

7

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 earnings1,566,178

Total shareholders'equityTreasury 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' equity
Total 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)

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

565,976

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

24,112,490

8(248,667)(540,879)(540,879)

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, 2017

December 31, 2018

2,495,351

2,059,359

Depreciation
Increase (decrease) in allowance for doubtful accounts

945,221(2,579)977,946(2,426)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for bonuses(211,928)(4,839)(207,682)
1,053

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

10,580(34,292)

19,010(29,316)

Interest expenses
Foreign exchange losses (gains)

2,908(22,382)

2,900
56,146

Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets(279)
13,100(11,316)
32,480

Impairment loss
Loss (gain) on sales of investment securities

34,023(77,697)––

Share of loss (profit) of entities accounted for using equity
method(146,328)(89,766)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(823,816)(167,183)(354,935)(355,378)

Decrease (increase) in accounts receivable - other
Increase (decrease) in notes and accounts payable - trade(83,119)
518,815

74,233(155,563)

Other, net(191,136)(24,022)

Subtotal

2,254,416

1,992,722

63,812

58,177

Interest expenses paid
Income taxes paid

(2,908)(669,303)(2,903)(528,053)

Net cash provided by (used in) operating activities

1,646,016

1,519,942

Interest and dividend income received

Cash flows from investing activities
Purchase of investment securities(723,520)(78,228)

Proceeds from sales of investment securities
Purchase of property, plant and equipment

116,451(983,528)–(1,191,629)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

280(28,371)

16,988(8,802)––(52,705)
53,569–448,953

1,296
328,273996––(11,500)

Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales of membership
Net decrease (increase) in short-term loans receivableCollection of long-term loans receivable from employees
Payments for asset retirement obligations
Other, net
Net cash provided by (used in) investing activities

9(44,444)(724)(1,213,184)(943,462)

(Thousands of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Cash dividends paid
Purchase of treasury shares
Other, net

Fiscal year ended

Fiscal year ended

December 31, 2017

December 31, 2018–(100,000)(363,615)(194)(454,774)(243)(8,896)(9,417)

Net cash provided by (used in) financing activities(372,706)(564,435)

Effect of exchange rate change on cash and cash equivalents

8,332(20,164)

Net increase (decrease) in cash and cash equivalents

68,457(8,119)Cash and cash equivalents at beginning of period

1,361,047

1,429,504

Cash and cash equivalents at end of period

1,429,504

1,421,385

10