Segue : ［Delayed］［Summary］Summary of Financial Statements for the Year Ended December 31, 2020 (J-GAAP) (Consolidated)

Summary of Business Results for the

Year Ended December 31, 2020 (J-GAAP) (Consolidated)

February 12, 2021

Expected date of annual shareholders' meeting: March 25, 2021 Expected date of filing of annual securities report: March 26, 2021 Preparation of supplementary financial document: Yes

Results briefing: Yes (for institutional investors and analysts)

Company	Segue Group Co., Ltd.
Stock Code	3968 URL:https://segue-g.jp/
Representative	Yasuyuki Aisu, President and CEO
Contact	Yasuhiro Fukuda, CFO	T E L: [phone]
Expected starting date of dividend payment: March 26, 2021
（Rounded down to million yen）

Stock Exchange: Tokyo Stock Exchange

1. Consolidated business results for the fiscal year ended December 2020

(January 1, 2020 through December 31, 2020)

(1) Consolidated results of operations

(Percentages indicate year-over-year changes)

Net sales	Operating income	Ordinary income	Net income attributable to owners of parent
FY 2020 FY 2019	Million yen % 10,992 14.0 9,646 10.0	Million yen % 843 53.9 548 13.2	Million yen % 874 57.7 554 14.1	Million yen 634 411	% 54.1 9.1

(Note) Comprehensive income:

FY 2020: 581 million yen (56.5%) FY 2019: 371 million yen (223.0%)

Net income per share	Diluted net income per share	Return on equity	Ratio of ordinary income to total assets	Ratio of operating income to net sales
FY 2020 FY 2019	Yen 55.62 35.90	Yen 54.40 35.11	% 21.5 15.7	% 13.1 9.6	% 7.7 5.7

(Reference) Investment earnings/loss on equity-method:

FY 2020: -million yen

FY 2019: -million yen

(2) Consolidated financial position

Total assets	Net assets	Shareholders' equity ratio	Net assets per share
FY 2020 FY 2019	Million yen 7,191 6,146	Million yen 3,172 2,786	% 43.7 45.0	Yen 274.91 240.97

(Reference) Shareholders' equity:

FY 2020: 3,142 million yen FY 2019: 2,768 million yen

(3) Consolidated results of cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
FY 2020 FY 2019	Million yen 163 760	Million yen -401 -179	Million yen -216 -66	Million yen 1,726 2,179

2. Dividends

Annual dividend	Total dividends paid (total)	Payout ratio (consolidated)	Ratio of dividend paid to net assets (consolidated)
End of 1Q	End of 2Q	End of 3Q	Year-end	Total
FY 2019 FY 2020	Yen - -	Yen 0.00 0.00	Yen - -	Yen 10.00 16.00	Yen 10.00 16.00	Yen 114 184	% 27.9 29.2	Yen 4.4 6.2
FY 2021 (forecast)	-	0.00	-	16.00	16.00	27.1

6.2

(Note)Breakdown of Year-End Dividends for the Fiscal Year Ended December 2019

Ordinary dividend: 5 yen, Commemorative dividend: 5 yen (commemorative dividend for the 25th anniversary of the Company's founding and the listing on the 1st Section of TSE)

3．Forecast of consolidated business results for the year ending December 2021

(January 1, 2021 through December 31, 2021) (Percentages indicate year-over-year changes)

Net sales	Operating income	Ordinary income	Net income attributable to owners of parent	Net income per share
Million yen %	Million yen %	Million yen %	Million yen %	Yen
Six months of FY2021 Full year	- 12,500 - 13.7	- 919 - 9.1	- 938 - 7.4	- 675 - 6.4	- 59.20

*Notes

• (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): None

• (2) Changes in accounting policies, accounting estimates and restatement

  ① Changes in accounting policies associated with revision of accounting standards:	: None
  ② Changes in accounting policies other than ①	: None
  : Yes
  ③ Changes in accounting estimates
  : None
  ④ Restatement
  (3) Shares outstanding (common stock)
  ① Number of shares outstanding at the end of period (treasury stock included)

  FY 2020	11,557,035 shares
  FY 2019	11,487,200 shares
  ② Treasury stock at the end of period:
  FY 2020	127,589 shares
  FY 2019	236 shares

  ③ Average number of stock during period (cumulative period)

FY 2020

FY 2019

11,401,730 shares 11,464,467 shares

(Note) 1. The Company conducted a 2-for-1 stock split with an effective date of December 1, 2019. The number of shares is calculated assuming that the stock split was conducted at the beginning of the fiscal year ended December 2019.

2. The number of treasury shares to be deducted for the purpose of calculating the number of treasury shares at the end of period and the average number of shares during the period (quarterly cumulative period) includes the Company's shares held by the stock benefit trust as trust assets under the J-ESOP plan.

*Financial summary is not subject to auditing procedures by certified public accountants or auditing firms.

*Explanation regarding appropriate use of business forecasts and other special instructions

・Forecasts regarding future performance in this material are based on information currently available to the company and

certain assumptions that the company deems to be reasonable at the time this report was prepared. The Company does not promise about the achivement. Actual results may differ significantly from the forecasts due to various factors.

3. Consolidated Financial Statements and Major Notes (1) Consolidated balance sheets

Total current assets 5,044,270

5,806,761

Accumulated depreciation -31,519

-45,686

Automotive equipment 3,076

3,076

Vehicles, net 685

407

Accumulated depreciation -719,871

-788,270

Land 639

639

Total property, plant and equipment 190,328

194,904

Total intangible assets 301,897

241,424

Allowance for doubtful accounts -2,075

-1,339

Total noncurrent assets 1,102,037

1,384,867

(Thousand yen)
FY 2019	FY 2020
(December 31, 2019)	(December 31, 2020)
Assets
Current assets
Cash and deposits	2,180,682	1,727,426
Notes and accounts receivable	1,205,503	2,088,973
Electronically Recorded Monetary Claims	30,019	87,262
Inventories	640,109	821,751
Advance payments - trade	583,552	549,329
Accounts receivable - other	303,458	428,133
Other	101,808	104,756
Allowance for doubtful accounts	-863	-872
Noncurrent assets
Property, plant and equipment
Buildings and structures	59,057	78,366
Buildings and structures, net	27,537	32,679
Accumulated depreciation	-2,390	-2,668
Tools, furniture and fixtures	873,837	949,448
Tools, furniture and fixtures, net	153,965	161,177
Construction in progress	7,500	-
Intangible assets
Goodwill	116,783	92,213
Software	171,848	140,484
Software in progress	12,056	7,517
Other	1,209	1,209
Investments and other assets
Investment securities	335,759	602,732
Long-term guarantee deposits	94,472	128,223
Deferred tax assets	83,964	109,306
Insurance funds	78,157	85,256
Claims in bankruptcy	2,241	1,447
Other	17,290	22,911
Total investments and other assets	609,810	948,538
Total assets	6,146,308	7,191,628

(Thousand yen)

Liabilities

Other 50,559

61,829

Long-term accounts payable - other 66,598

66,598

Total liabilities 3,359,789

4,018,940

Treasury shares 355,633

-100,252

Deferred gains or losses on hedges -71

-805

Share subscription rights 18,463

30,567

FY 2019	FY 2020
(December 31, 2019)	(December 31, 2020)
Current liabilities
Accounts payable-trade	508,448	804,759
Current portion of long-term loans payable	8,028	8,028
Accounts payable	104,963	105,145
Accrued expenses	161,415	186,495
Income taxes payable	113,435	247,765
Accrued consumption taxes	79,055	133,890
Provision for bonuses	1,850	2,000
Advances received	2,079,163	2,183,623
Total current liabilities	3,106,919	3,733,537
Long-term liabilities
Long-term debt	9,858	1,830
Obligations for retirement pay	176,413	201,421
Provision for share-based remuneration	-	15,553
Total long-term liabilities	252,869	285,402
Net assets
Shareholders' equity
Capital stock	507,243	510,772
Capital surplus	279,743	283,272
Retained earnings	1,874,669	2,393,965
Total shareholders' equity	2,661,442	3,087,757
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	106,685	55,168
Total accumulated other comprehensive income	106,613	54,362
Total net assets	2,786,518	3,172,688

Total liabilities and net assets

6,146,308

7,191,628

(2) Consolidated Statements of Income and Statements of Comprehensive Income

Consolidated Statement of Income

Net sales

9,646,836

10,992,813

Gross profit 2,531,670

3,092,522

Operating income 548,221

843,618

Other 2,853

7,159

Non-operating expenses

Total non-operating expenses 10,867

1,490

Extraordinary income

Gain on reversal of subscription rights to shares 209

-

Ceremony cancellation related costs -

1,964

Profit before income taxes 618,534

938,046

Income taxes-deferred 8,672

-16,604

Net income 411,603

634,165

FY 2019	FY 2020
(January 1, 2019	(January 1, 2020
-December 31, 2019)	-December 31, 2020)
Cost of sales	7,115,166	7,900,291
Selling, general and administrative expenses	1,983,448	2,248,904
Non-operating income
Interest Income and Dividends	1,389	2,934
Surrender value of insurance	10,036	5,029
Subsidies for employment adjustment	-	6,240
Subsidy income	2,724	10,669
Total non-operating income	17,004	32,033
Interest expenses	179	121
Guarantee commission	240	240
Foreign exchange loss	9,951	754
Stock issuance cost	300	360
Other	195	13
Ordinary income	554,359	874,160
Gains on sales of investment securities	64,994	65,850
Total extraordinary income	65,204	65,850
Extraordinary loss
Loss on sales of investment securities	1,029	-
Total extraordinary loss	1,029	1,964
Income taxes	198,258	320,484
Total income tax	206,930	303,880
Net income attributable to owners of non-controlling	-	-

Net income attributable to owners of parent

411,603

634,165

Consolidated Statement of Comprehensive Income

(Thousand yen)FY 2019

(January 1, 2019 -December 31, 2019)FY 2020

(January 1, 2020 -December 31, 2020)

Net income

411,603

634,165

Other comprehensive income

Valuation difference on available-for-sale securities

Deferred gains or losses on hedges

-40,317

-51,517

545

-733

Total other comprehensive income -39,772

-52,250

Comprehensive income

371,831 581,914

Breakdown

371,831 581,914

Comprehensive income attributable to owners of parent

Comprehensive income attributable to owners of non-controlling shareholders

-

-

(3) Consolidated statement of changes in equity

FY 2019 (January 1, 2019 - December 31, 2019)

Shareholders' equity
Capital stock	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of current period	505,788	278,288	1,520,357	-79	2,304,355
Changes during period
Issuance of new shares	1,454	1,454	2,908
Dividend of surplus	-57,291	-57,291
Net income attributable to owners of parent	411,603	411,603
Purchase of treasury shares	-134	-134
Net changes during period other than shareholders' equity
Total changes during period	1,454	1,454	354,311	-134	357,086
Balance at end of current period	507,243	279,743	1,874,669	-213	2,661,442

Accumulated other comprehensive income	Share subscription rights	Total net assets
Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Total accumulated other comprehensive income
Balance at beginning of current period	147,002	6,628	146,385	－	2,450,741
Changes during period
Issuance of new shares	2,908
Dividend of surplus	-57,291
Net income attributable to owners of parent	411,603
Purchase of treasury shares	-134
Net changes during period other than shareholders' equity	-40,317	545	-39,772	18,463	-21,308
Total changes during period	-40,317	545	-39,772	18,463	335,777
Balance at end of current period	106,685	-71	106,613	18,463	2,786,518

FY 2020 (January 1, 2020 - December 31, 2020)

(Thousand yen)

Shareholders' equity
Capital stock	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
Balance at beginning of current period	507,243	279,743	1,874,669	-213	2,661,442
Changes during period
Issuance of new shares	3,529	3,529	7,058
Dividend of surplus	-114,869	-114,869
Net income attributable to owners of parent Net income	634,165	634,165
Purchase of treasury shares	-100,038	-100,038
Net changes during period other than shareholders' equity
Total changes during period	3,529	3,529	519,296	-100,038	426,315
Balance at end of current period	510,772	283,272	2,393,965	-100,252	3,087,757

Accumulated other comprehensive income	Share subscription rights	Total net assets
Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Total accumulated other comprehensive income
Balance at beginning of current period	106,685	-71	106,613	18,463	2,786,518
Changes during period
Issuance of new shares	7,058
Dividend of surplus	-114,869
Net income attributable to owners of parent	634,165
Purchase of treasury shares	-100,038
Net changes during period other than shareholders' equity	-51,517	-733	-52,250	12,104	-40,146
Total changes during period	-51,517	-733	-52,250	12,104	386,169
Balance at end of current period	55,168	-805	54,362	30,567	3,172,688

(4) Consolidated statement of cash flows

(Thousand yen)

FY 2019

(January 1, 2019 -December 31, 2019)

FY 2020

(January 1, 2020 -December 31, 2020)

Cash flows from operating activities

618,534

Profit before income taxes Depreciation Amortization of goodwill Share-based compensation expenses Provision for share-based remuneration

Gain on reversal of subscription rights to shares Increase (decrease) in allowance for doubtful accounts Increase (decrease) in net defined benefit liability Interest and dividend income

Interest expenses

Loss (gain) on sales of investment securities Foreign exchange losses (gains)

Decrease (increase) in notes and accounts receivable - trade

Decrease (increase) in accounts receivable - other Decrease (increase) in inventories

Decrease (increase) in advance payments Increase (decrease) in notes and accounts payable-trade

Increase (decrease) in advances received Other

938,046

111,710

134,300

22,905

24,569

18,672 -

12,255

-209

15,553 -

-4,656

-726

15,655

25,007

-1,389

-2,934

179

121

-63,965

-65,850

-1,037

-815

52,819

-940,713

-34,679

-123,719

51,501

-181,641

-98,072

34,223

-141,066

296,311

446,222

104,460

-20,544

81,777

Subtotal 972,579

350,226

Interest and dividend income received Interest expenses paid

Income taxes paid

1,306 -179 -213,196

2,934 -121 -189,419

Cash flows from operating activities 760,509

163,618

Cash flows from investing activities

Purchase of investment securities

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

Purchase of subsidiary share capital associated with a change in the scope of consolidation

Payments of loans receivable Collection of loans receivable

Payments for lease and guarantee deposits

-35,445

-330,981

93,316

69,927

-82,891

-86,383

-84,899

-11,307

-96,386

-

-200

-500

26,438 Other

333 -42,803

Proceeds from collection of lease and guarantee deposits 1,078

54

Cash flows from investing activities

-179,058

-401,660

Cash flows from financing activities

Repayment of long-term loans payable Proceeds from issuance of shares Purchase of treasury shares

-11,690 2,908 -134

-8,028

6,907 -100,038

Dividends paid -57,291

-114,869

Cash flows from financing activities

-66,207

-216,029

Effect of exchange rate change on cash and cash equivalents 1,037

815

-453,255

Net increase (decrease) in cash and cash equivalents

516,281

Cash and cash equivalents at the start of the period 1,663,362

2,179,643

Cash and cash equivalents at the end of the period

2,179,643

1,726,388