Summary of Financial Statements for theYear Ended December 31, 2016 (J-GAAP) (Consolidated)

February 13, 2017
Stock Exchange: Tokyo Stock Exchange

Company Name: Segue Group Co., Ltd.
Code Number:
3968
URL: http://segue-g.jp/
Representative:
Yasuyuki Aisu, President and CEO
Contact:
Yasuhiro Fukuda, CFO
Tel.: +81-3-6228-3822
Scheduled date of annual general meeting of shareholders: March 29, 2017
Scheduled date of dividend payment: Scheduled date of filing securities report: March
30, 2017 documents supplement to the abridged financial statements: Yes
Explanatory
Briefing for summary of financial results： Yes (for institutional investors and analysts)

1. Results for the Year Ended December 31, 2016 (from January 1, 2016, to December 31, 2016)(1) Consolidated Results of Operations(Percentages indicate year-over-year changes)
Net sales

Operating income

million yen%

FY 20166,881
11.5
FY 20156,172
5.3
Note: Comprehensive income (million yen)
Net income per
sharemillion yen%

Ordinary income
million yen

218
69.6
128
0.0
FY 2016: 140 (423.2%)

Diluted net
income per share

Yen%

million yen

%

162
98

64.5
92.5

286
99.9
143
-3.9
FY 2015: 26 (-39.3%)
Ratio of ordinary
income to total
assetsReturn on equity

Yen

Profit attributable toowners of parent%

Ratio ofoperating income
to net sales%%

FY 2016137.24136.4412.4
8.2
3.2
FY 2015
87.07
9.6
4.4
2.1
Reference: Investment gains or losses using the equity method (million yen)
FY 2016: FY 2015: Notes: 1. Concerning diluted net income per share for the previous fiscal year, there was a remaining balance in subscription
rights to shares but the Company's shares were not listed and the average share price during the period could not be
obtained. As a result, these shares are not included.
2. Because the Company's shares were listed on the JASDAQ (standard) on December 21, 2016, the diluted net income
per share for the current fiscal year has been calculated by using the average share price from the date of listing to
the end of the fiscal year as the average share price.
3. On September 21, 2016, the Company executed a common stock split at the ratio of 100 shares to 1. Net income
per share and diluted net income per share are calculated under the assumption that the stock split took effect at thestart of the previous fiscal year.
(2) Consolidated Financial Position
Total assets

Net assets

million yen

Equity ratio

Net assets per share

million yen%

Yen

FY 2016
3,708
1,546
41.7
1,121.81
FY 2015
3,310
1,075
32.5
921.33
Reference: Shareholders' equity (million yen)
FY 2016: 1,546 FY 2015: 1,075
Notes: On September 21, 2016, the Company executed a common stock split at the ratio of 100 shares to 1. Net assets per share is
calculated under the assumption that the stock split took effect at the start of the previous fiscal year.
(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of fiscal year

million yen

million yen

million yen

million yen

158
12

-44
-66

162
-105

1,121
845

FY 2016
FY 2015
2. Dividends

Annual dividends
End of Q1

End of Q2

End of Q3

Yen

Yen

Yen

FY 2015
FY 2016

-

0.00
0.00

-

End ofYen
fiscalyear0.00
0.00

FY 2017 (forecast)

-

0.00

-

0.00

Total
Yen

0.00
0.00
0.00

Total
Payout ratio Ratio of dividend
dividends (consolidated paid to net assets
paid (total))(consolidated)
million yen

%

%

-

-

-

-

3. Forecast for the Year Ending December 31, 2017 (from January 1, 2017, to December 31, 2017)(Percentages indicate year-over-year changes)
Net sales
Full year

million yen

Operating income% million yen

Ordinary income% million yen

Profit attributable toowners of parent% million yen%

Net income per
share
Yen

7,593
10.4
303
39.0
359
25.7
251
54.6
90.96
Note: A stock split at the ratio of two shares to one is planned with a target effective date of April 1, 2017. For this reason,
net income per share in the consolidated earnings forecast is calculated based on the number of issued shares after the split.
* Explanatory notes(1) Changes in major subsidiaries during the fiscal year
(changes in specified subsidiaries in conjunction with change in the scope of consolidation): None
(2) Change of accounting policies; change or restatement of accounting estimates(i) Change of accounting policies caused by revision of accounting standards : Yes(ii) Change of accounting policies other than stated in (i)(iii) Change of accounting estimates: None: None(iv) Restatement: None(3) Issued shares (common stock)
1,378,700 shares FY 2015
1,167,000 shares(i) Number of issued shares at end of period (including treasury shares) FY 2016
FY
2016
sharesFY
2015- shares(ii) Number of Treasury shares at end of period
FY 2016
1,184,641 shares FY 2015
1,134,900 shares(iii) Average number of shares outstanding during the period
Notes: On September 21, 2016, the Company executed a common stock split at the ratio of 100 shares to 1. The number ofshares is calculated under the assumption that the stock split took effect at the start of the previous fiscal year.
* This summary of financial statements is not covered by the audit procedures in accordance with the Financial Instruments andExchange Act. At the time of disclosure of this summary of financial statements, the audit procedures for the consolidated
financial statements in accordance with the Act had not been completed.

* Explanation and other explanatory notes pertaining to the appropriate use of financial forecasts- These materials contain forward-looking statements including forecasts of the Company’s business performance, which are basedon certain assumptions made in accordance with information currently available and judged to be reasonable and are not intended
as a guarantee that the Company will achieve these targets. In addition, actual results may differ materially from these forecasts asa result of various factors, including actual business performance. For explanatory notes on the assumptions for these forecasts
and the use of the financial forecasts, please refer to "1. Analysis regarding business results and financial position (1) Analysis
regarding results of operations" on page 2 of the attached materials.
- The Company plans to hold a results briefing for institutional investors and analysts on February 24, 2017. The materials distributedat the results meeting are scheduled to be posted on the Company's website promptly after the meeting.

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

1. Analysis regarding business results and financial position(1) Analysis regarding business results(i) Business results for the period
During the current fiscal year, the Japanese economy showed a mild recovery resulting from the effects of government economic
policy, a showing of improved corporate earnings, and an improving employment picture.
On the other hand, the world economy continued its uncertain outlook with unstable foreign exchange rates and stock prices
amidst the background of a growth slowdown in China and other emerging markets, the exit of the UK from the European Union,
and the policy actions of the new administration in the US.
In the fields in which the Segue Group does business, while the application and use of IT is indispensable to improving
profitability at a wide variety of business sites, attention is intensifying towards IoT and AI and the continued growth in the desire
to invest in IT in general is not abating. Amidst this situation, the proportion of investment going towards security measures isincreasing as a result of such factors as security measures taken in response to an increase in cyberattacks and the start of the My
Number national identity card system.
Under these circumstances, the Segue Group is actively involved in sales to major corporations of products and services, as well
as solutions assembled from these building blocks. In so doing, the Group has increased sales of projects that combine IT
infrastructure products with verification systems as well as large-scale IT projects.
In harmony with the "model for enhancing the resilience of local government information systems," presented by the Ministryof Internal Affairs and Communications, we started sales of SCVX, Segue-developed software that realizes the segregation ofinternal and external (e.g. Internet) networks. These sales have been brisk.
As a result of the above, net sales in the Solutions Products Business during the current fiscal year increased by 614,478 thousandyen (22.1%) year-over-year to 3,391,929 thousand yen, and in the Solutions Services Business they increased by 94,214 thousandyen (2.8%) to 3,489,436 thousand yen. Consolidated sales thus grew by 708,692 thousand yen (11.5%) overall to 6,881,366
thousand yen.
In profits, operating income was up 89,556 thousand yen (69.6%) to 218,243 thousand yen, while ordinary income increased by
143,015 thousand yen (99.9%) to 286,189 thousand yen and profit attributable to owners of parent increased by 63,758 thousandyen (64.5%) to 162,574 thousand yen.
(ii) Outlook for the next period
We expect the mild recovery to continue in Japan, despite the risk that the domestic economy will underperform the world
economy in 2017.
In the fields in which the Segue Group does business, we are projecting continued growth in the desire to invest in IT in general.
Amidst this environment, the Group is driving sales of SCVX, Segue-developed software, while continuing to expand its handlingof security products and services. It also intends to expand business through initiatives such as cross-selling of new and existingproducts. Our consolidated earnings outlook therefore calls for net sales of 7,593,921 thousand yen, operating income of
303,373 thousand yen, ordinary income of \359,865 thousand yen, and profit attributable to owners of parent of 251,276
thousand yen.

(2) Analysis regarding financial position(i) Assets, liabilities, and net assets
Total assets for the fiscal year came to 3,708,377 thousand yen, an increase of 397,472 thousand yen from the previous fiscal
year.
Current assets were 3,293,838 thousand yen, an increase of 470,416 thousand yen from the previous fiscal year. Non-current assets
were 414,539 thousand yen, a decrease of 72,943 thousand yen from the previous fiscal year.
The main factor behind the rise in current assets was an increase in cash and deposits. The main factor behind the fall in noncurrent assets was a decrease in investment securities.
Total liabilities for the fiscal year came to 2,161,732 thousand yen, a decrease of 73,984 thousand yen from the previous fiscal
year. Current liabilities were 1,916,263 thousand yen, an increase of 48,606 thousand yen from the previous fiscal year. Noncurrent liabilities were 245,468 thousand yen, a decrease of 122,591 thousand yen from the previous fiscal year.
The main factor behind the rise in current liabilities was an increase in advances received. The main factors behind the fall in
non-current liabilities were decreases in bonds payable and long-term loans payable.
Total assets at the end of the fiscal year came to 1,546,645 thousand yen, an increase of 471,457 thousand yen from the previous
fiscal year. The main factors behind this result were increases in capital stock and capital surplus.

-2-

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016(ii) Cash flows
For the current fiscal year, cash and cash equivalents came to 1,121,451 thousand yen an increase year-over-year of 275,993
thousand yen (32.6%).
For the respective cash flow categories, the primary factors were as follows.
[Cash flows from operating activities]
Cash flows from operating activities increased by 146,461 thousand yen to a net inflow of 158,610 thousand yen.
The main components on the inflow side were profit before income taxes of 268,178 thousand yen, depreciation of 53,698
thousand yen, increase in advances received of 149,976 thousand yen, and a decrease in inventories of 218,196 thousand yen. On
the outflow side, the decrease in accounts payable was 261,947 thousand yen and the increase in accounts receivable was 197,945
thousand yen.
[Cash flows from investing activities]
Cash flows from investing activities fell by 22,063 thousand yen to a net outflow of 44,147 thousand yen.
A major component was purchase of property, plant and equipment of 39,046 thousand yen.
[Cash flows from financing activities]
Cash flows from financing activities decreased by 268,446 thousand yen to a net inflow of 162,599 thousand yen.
A major component was proceeds from issuance of shares of 330,941 thousand yen.
Reference: Trends in cash flow indicators
Fiscal year ended Fiscal year ended Fiscal year ended
December 31,
December 31,
December 31,
2014
2015
2016
Equity ratio (%)

30.5

32.5

41.7

Equity ratio based on market value (%)

-

-

3.0

Ratio of interest-bearing debt to cash
flow liabilities (multiple of 1.0)
Interest coverage ratio (multiple of 1.0)

1.5

29.0

1.2

47.8

2.3

45.8

Equity ratio: Shareholders' equity / Total assets
Equity ratio based on market value: Market value of stocks / Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest paid
Note 1: All calculations use financial values that are stated on a consolidated basis.
Note 2: The FY 2014 and FY 2015 equity ratios based on market value are not stated because the Company's shares were not listed.
Note 3: The total market value of the Company's shares are calculated based on issued shares exclusive of treasury shares.
Note 4: Cash flow uses the value of operating cash flow.
Note 5: Interest bearing debt covers all liabilities, presented in the consolidated balance sheet for which interest is paid.

-3-

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

2. Corporate policy(1) Basic policy of the Company's business
The mission of the Segue Group is to “Contribute to a productive society through the creation of value and continuing to growalong with its customers by drawing fully on IT technology.” By drawing fully on experience and a range of technologies cultivated
up to now, the Group offers total IT solutions of value which support the success of all customers' businesses and works hard toraise corporate value.

(2) Targets and management indicators
The Group sees gross margin on sales as an important business indicator. Group businesses are divided into a Solutions Products
Business concentrating on the sales of products and a Solutions Products Business concentrating on providing a variety ofservices including design & construction, and maintenance.
Through Group strengths in technology value added, we intend to realize a large increase in gross margin and net sales from thesynergistic effects of the two businesses such as providing services together with the sales of products, and selling new products
after providing service. We also intend to raise the proportion of high-margin sales and thereby achieve a large boost to grossmargin on sales. In the Solutions Products Business, we will do this through continued R&D on our products and the handling of
new security products. In the Solution Services Business, we will do this through enhancing operations management and thehandling of remote monitoring services as well by providing greater convenience to customers.

(3) Medium- to long-term management strategy
In order to maintain and improve its advantages in technology value added, the Group will continue to secure technology staff
and their training and enhance these efforts. We will handle new security products as well as products developed within the Groupand add solutions assembled from these. At the same time, we will grow sales by increasing the customer appeal of our offerings.
We will also engage in initiatives that foster business efficiency and rapid decision-making through such actions as the review of
information systems such as the system upgrade of the core systems of our key subsidiary, J's Communication Co., Ltd.

(4) Issues for the company to address
In the fields where the Segue Group conducts its business, the rising number of cyberattacks being reported in the newspapers
and other media and the continuation of security measures at companies and organizations is taking on greater importance.
Cyberattacks are becoming more sophisticated and ingenious each year, as new ones are always being created. Recently, there has
been an increase in ransomware and in targeted attacks that accompany the spread of IoT. Under these circumstances, we see theproblems described below as ones the Group must recognize and address.
(i) Boosting profitability
The Group runs an IT solutions business and within this business enjoys strengths in the security field.
While the critical nature of security measures is being called out, we will grab hold of the latest technological trends, centered on
the international area, and capture customers' needs. We will move aggressively to handle new commercial products in order tocreate solutions that ensure security in combination with the new commercial products and products we handle. We will also moveahead on the development of new security products and services that are adapted to today's needs along with building anorganizational framework for boosting sales.
As a result of the above, we will be achieving greater sales and higher profit margins.
(ii) Enhancing internal controls
Towards the establishment of a framework in which the Company and its Group subsidiaries can be expanded efficiently, we see
thorough compliance and strengthening of internal controls as crucial challenges.
In our plans to continually expand the value of the corporation, we have been adjusting our corporate structure. But we now findit necessary to supplement staffing as the scale of business expands and to embark on a full-level enhancement in a corporate
governance framework and an internal management system.
(iii) Optimizing the Group business structure
So that it can respond to the various needs of customers, the Segue Group has expanded its domain of business by making use oforganizational restructuring particularly since 2012.
In order to elevate these effects, the Group as a whole will undergo an optimization to build a framework in which greater synergies
can be extracted within the Group by redefining the core business of each Group company and redeploying resources.

-4-

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016(iv) Securing and development of human resources
In order to solve the issues discussed above, we find it essential that a top-notch human resources be secured, maintained,
and developed. We will carryout initiatives towards continuous improvement in our training and human resources systems,
making sure these systems become well established, and ensuring that the corporate philosophy is thoroughly spreadthroughout the Group.

(5) Other important items in business operations
There are no items in particular.

3. Basic approach regarding selection of an accounting standard
In order to ensure comparability with other Japanese companies in the same industry, the Group applies the Japanese accounting
standard.

-5-

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

4. Consolidated financial statements(1) Consolidated balance sheets(units: 1,000 yen)
FY 2015(as of December 31, 2015)
AssetsCurrent
Notes
and assets
accounts receivable - trade
Cash and deposits
Electronicallyrecorded monetary claims - operating

FY 2016(as of December 31, 2016)

Inventories

1,011,27
930,772 7520,281

1,180,937
1,212,782
28,286
302,085

Advance payments - trade
Accounts receivable - other

198,00282,826

303,092
186,182

Deferred tax assets
Other

37,25743,00328,62552,083--237

2,823,422

3,293,838

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

37,79636,992-22,811-24,178

14,984

12,814

690,600-574,756

719,450-612,552

115,844639
5,170

106,897
639
5,170-4,803-4,960366
131,835

209
120,561

63,116
8,320

34,90823,12871,43758,03759,05775,06524,38972,012

Insurance funds

47,46592,86954,25376,541

Other

9,751

8,743

284,209487,482

235,940
414,539

3,310,90
4

3,708,377

Buildings and structures, net
Tools, furniture andfixturesAccumulated
depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated
depreciation
Leased assets, net
Total property, plant andequipment
Intangible
assetsGoodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term guarantee
deposits
Deferred tax assets

Total investments and otherassetsTotal
non-current assets
Total assets-6-

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

(units: 1,000 yen)
FY 2015(as of December 31, 2015)

FY 2016(as of December 31, 2016)

Liabilities
Current liabilities
Accounts payable - trade656,521394,574

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

59,20093,00840,00085,004

Lease obligations
Accounts payable - other165
46,523165
65,206

Accrued expenses
Income taxes payable

114,820
2,628

116,783
95,712

Accrued consumption taxes
Advances received

47,196
802,624

79,607
952,601

Other

44,96886,6101,867,657

1,916,263

60,00020,000Long-term loans payable
Lease obligations

139,704
220

38,73255

Net defined benefit liability
Long-term accounts payable - other

101,357
66,778

119,903
66,778368,059

245,468

2,235,717

2,161,732

Capital stock
Capital surplus

318,000
90,500483,470
255,970

Retained earnings

661,382

823,957

1,069,882

1,563,398

1,000

984

4,304

-17,737

5,304
1,075,187-16,752
1,546,645

3,310,904

3,708,377

Total current liabilities
Non-current liabilities
Bonds payable

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

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Accumulated other comprehensive income
Total net assets
Total liabilities and net assets-7-

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

(2) Consolidated statements of income and comprehensive income
Consolidated statement of income(units: 1,000 yen)
FY 2016 (from January 1, 2016,
to December 31, 2016)

FY 2015 (from January 1,
2015, to December 31, 2015)
Net sales
Cost of sales

6,172,673
4,640,343

6,881,366
5,310,690

Gross margin on sales
Selling, general and administrative expenses

1,532,330

1,570,675

1,403,643
128,687

1,352,432
218,243

265-

211
17,170

Income from the grant
Surrender value of insurance

3,784
3,943

2,881
64,926

Subsidy income
Other

14,911
638

5,453
842

23,543

91,486

5,208
3,016

3,275
-

245
-

3,201
16,858Operating income
Non-operating income
Interest and dividend income
Foreign exchange gains

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share issuance cost
Expenses related to stock listing
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on transfer of business
Gain on sales of non-current assets

587

205

9,057
143,173

23,541
286,189

4,409-

15,000

-

59

4,409

15,059Extraordinary losses
Loss on valuation of investment securities-

33,070Loss on retirement of non-current assets

755

-

755
146,827

33,070268,178

15,86432,14693,498
12,10648,011
98,816105,604
162,574

98,816

162,574

Total extraordinary income

Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-8-

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

Consolidated statement of comprehensive
incomeFY 2015 (from January 1,
2015, to December 31, 2015)
ProfitOther comprehensive income(units: 1,000 yen)
FY 2016 (from January 1,
2016, to December 31, 2016)

98,816

162,574

373-15

Deferred gains or losses on hedges-72,333-22,041

Accumulated other comprehensive income-71,960
26,855-22,057
140,516

26,855-140,516-

Valuation difference on available-for-sale securities

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income related to non-controlling interests-9-Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

(3) Consolidated statement of changes in equity
FY 2015 (from January 1, 2015, to December 31, 2015)(units: 1,000 yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

283,000

55,50035,00035,000562,566

Total shareholders' equity
901,066

Changes during period
Issuance of new shares

70,000

Profit attributable toowners of parent
ProfitNetchanges during period
other than shareholders'equity98,816

98,816-

Total changes during period

35,00035,00098,816

168,816

Balance at end of current
period318,000

90,500661,382

1,069,882

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuation difference on
available-for-sale securities

Deferred gains or losses onhedgesTotal accumulated othercomprehensive income

626

76,63877,265

Total net assets

978,331

Changes during period
Issuance of new shares
Profit attributable toowners of parent
ProfitNet changes during period
other than shareholders'equity70,00098,816373-72,333-71,960-71,960

Total changes during period373-72,333-71,960

96,855

Balance at end of current
period

1,000

4,304

5,304

1,075,187- 10 -

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

FY 2016 (from January 1, 2016, to December 31, 2016)(units: 1,000 yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

318,000

90,500165,470

165,470

661,382

Total shareholders' equity
1,069,882

Changes during period
Issuance of new shares
Profit attributable toowners of parent
ProfitNet changes during period
other than shareholders'equityTotal changes during period
Balance at end of current
period330,941
162,574

162,574-

165,470

165,470

162,574

493,515

483,470

255,970

823,957

1,563,398

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuation difference on
available-for-sale securities

Deferred gains or losses onhedgesTotal accumulated othercomprehensive income

1,000

4,304

5,304

Total net assets

1,075,187

Changes during period
Issuance of new shares
Profit attributable toowners of parent
ProfitNet changes during period
other than shareholders'equity330,941
162,574-15-22,041-22,057-22,057

Total changes during period-15-22,041-22,057

471,457

Balance at end of current
period984-17,737-16,752

1,546,645- 11 -

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

(4) Consolidated statement of cash flows(units: 1,000 yen)
FY 2015 from January 1,
2015 to December 31, 2015)

FY 2016 from January 1,
2016 to December 31, 2016)

Cash flows from operating activities
Profit before income taxes

146,827

268,178

Depreciation
Amortization of goodwill

62,51130,541

53,69828,208

Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in net defined benefit liability

13,687237
18,546

Interest and dividend income
Interest expenses

-265
5,208

-211
3,275

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities-4,409-33,070

319
-

1,069
-15,000-247,771-59-197,945

Decrease (increase) in advance payments-233,863-7,895

218,196-105,089

Increase (decrease) in notes and accounts payable- trade (decrease) in advances received
Increase

222,00959,479-261,947
149,976

Other

48,766-23,713

SubtotalInterest and dividend income received
Interest expenses paid

95,146265-5,404

170,490
211-3,461

Income taxes paid

-77,858-8,63012,148

158,610-6,014-6,016

Purchase of investment securities
Proceeds from sales of investment securities

-446
6,326

-455
2,000

Proceeds from transfer of business
Purchase of property, plant and equipment-53,317

15,000-39,046

Proceeds from sales of property, plant andequipment
Purchase of intangible assets-3,305

61-17,591

Purchase of additional shares in subsidiary
Payments of loans receivable-9,000-1,750-

Collection of loans receivable
Payments for lease and guarantee deposits

1,465-8,867845-62

Proceeds from collection of lease and guarantee
deposits
Cash flows from investing activities

8,699

1,118

-66,210-44,147

Foreign exchange losses (gains)
Gain on transfer of business
Gain on sales of non-current assets
Decrease (increase) in notes and accounts
receivable(increase)- trade in inventories
Decrease

Cash flows from operating activities
Cash flows from investing activities
Decrease (increase) in time deposits- 12 -

Segue Group Co., Ltd. (3968) Summary of Financial
Statements for the Year Ended December 31, 2016

(units: 1,000 yen)
FY 2015 from January 1,
2015 to December 31, 2015)

FY 2016 from January 1,
2016 to December 31, 2016)

Cash flows from financing activities
Increase in short-term loans payable
Repayment of short-term loans payable

100,000-100,000-

Repayment of long-term loans payable
Redemption of bonds-98,674-76,800-108,976-59,200

Repayments of lease obligations
Proceeds from issuance of shares-373
70,000-165
330,941

Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents-105,847

162,599-319-160,228-1,069275,993

Cash and cash equivalents at the start of the period

1,005,686
845,458

845,458
1,121,451

Cash and cash equivalents at the end of the period- 13 -