Segue : ［Delayed］Summary of Financial Statements for the Second Quarter of the Year Ending December 31, 2021 (J-GAAP) (Consolidated)

Summary of Financial Statements for the Second Quarter of the

Year Ending December 31, 2021 (J-GAAP) (Consolidated)

Company	Segue Group Co., Ltd.	August 12, 2021
Stock Exchange: Tokyo Stock Exchange
Stock Code	3968	URL:https://segue-g.jp/
Representative	Yasuyuki Aisu, President and CEO
Contact	Yasuhiro Fukuda, CFO	T E L: [phone]

Expected date of filing of quarterly report: August 12, 2021

Expected starting date of dividend payment: -

Preparation of quarterly supplementary financial document: Yes

Quarterly results briefing: Yes (for institutional investors and analysts)

（Rounded down to million yen）

1. Consolidated business results for the six months ended June 2021 (January 1, 2021 through June 30, 2021)

	(1) Consolidated results of operations															(Percentages indicate year-over-year changes)
				Net sales						Operating income				Ordinary income		Net income attributable to
														owners of parent
			Million yen	%			Million yen	%		Million yen	%		Million yen	%
	Q2 FY 2021	5,885	17.1							249		-21.4					290	-13.0				181	-22.9
	Q2 FY 2020	5,025	-0.6							317		2.8					334	9.6				235	17.8
	(Note) Comprehensive income
	Q2 FY 2021: 161 million yen (-23.7%)
	Q2 FY 2020: 211 million yen (-7.7%)
				Net income						Diluted net income per
				per share							share
						Yen					Yen
	Q2 FY 2021			15.83								15.59
	Q2 FY 2020			20.66								20.20
	(2) Consolidated financial position
				Total assets							Net assets				Shareholders' equity
																ratio
				Million yen			Million yen							%
	Q2 FY 2021			7,536							3,190						41.5
	FY 2020			7,191							3,172						43.7
	(Reference) Shareholders'	equity:
	Q2 FY 2021: 3,128 million yen
	FY 2020: 3,142 million yen
2. Dividends
															Annual dividend
				End of 1Q						End of 2Q	End of 3Q			Year-end			Total
						Yen			Yen						Yen					Yen			Yen
	FY 2020					-						0.00						-			16.00			16.00
	FY 2021					-						0.00
	FY 2021 (forecast)																		-			16.00			16.00
	(Note) Revisions to dividend forecast for the current quarter: None
3．Forecast of consolidated business results for the fiscal 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	Net income
						attributable to owners	per share
																							of parent
			Million yen	%		Million yen	%		Million yen	%		Million yen	%		Yen
	Full year		12,500	13.7							919	9.1				938	7.4		675	6.4		59.20
	(Note) Revisions to business	forecast for the current	quarter: None

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*Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): None
2. Application of accounting procedures specific to preparation of the consolidated quarterly financial statements: None

1. Changes in accounting policies, accounting estimates and restatement
   ① Changes in accounting policies associated with revision of accounting standards:
   ②Changes in accounting policies other than ①
   ③Changes in accounting estimates
   ④Restatement
2. Shares outstanding (common stock)

• Number of shares outstanding at the end of period (treasury stock included)

Q2 FY 2021	11,631,435 shares
FY 2020	11,557,035 shares

• Treasury stock at the end of period

Q2 FY 2021	127,589 shares
FY 2020	127,589 shares

• Average number of stock during period (quarterly cumulative period)

Q2 FY 2021	11,479,112 shares
Q2 FY 2020	11,414,376 shares

• None
• None
• None
• None

(Note) 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.

*Quarterly 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 promises about the achivements. Actual results may differ significantly from the forecasts due to various factors.
• The Company plans to hold a briefing for institutional investors and analysts on Friday, August 20 ,2021. The materials of this briefing is scheduled to be posted on the Company's website promptly after the briefing.

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2. Quarterly Consolidated Financial Statements and Major Notes

(1) Quarterly consolidated balance sheets

				(Thousand yen)
			FY 2020	Q2 FY 2021
			(December 31, 2020)	(June 30, 2021)
Assets
	Current assets
		Cash and deposits	1,727,426	3,084,384
		Notes and accounts receivable	2,088,973	1,331,267
		Electronically recorded monetary claims	87,262	155,977
		Inventories	821,751	569,573
		Advance payments - trade	549,329	607,214
		Accounts receivable - other	428,133	193,958
		Other	104,756	106,652
		Allowance for doubtful accounts	-872	-707
		Total current assets	5,806,761	6,048,320
	Noncurrent assets
		Property, plant and equipment
		Buildings and structures	78,366	70,662
		Accumulated depreciation	-45,686	-35,212
		Buildings and structures, net	32,679	35,449
		Automotive equipment	3,076	3,076
		Accumulated depreciation	-2,668	-2,734
		Vehicles, net	407	342
		Tools, furniture and fixtures	949,448	920,204
		Accumulated depreciation	-788,270	-750,375
		Tools, furniture and fixtures, net	161,177	169,829
		Land	639	639
		Construction in progress	-	2,287
		Total property, plant and equipment	194,904	208,548
		Intangible assets
		Goodwill	92,213	80,378
		Software	140,484	133,075
		Software in progress	7,517	-
		Other	1,209	1,209
		Total intangible assets	241,424	214,663
		Investments and other assets
		Investment securities	602,732	693,803
		Long-term guarantee deposits	128,223	120,953
		Deferred tax assets	109,306	140,632
		Insurance funds	85,256	86,711
		Claims in bankruptcy	1,447	1,447
		Other	22,911	22,405
		Allowance for doubtful accounts	-1,339	-1,339
		Total investments and other assets	948,538	1,064,612
		Total noncurrent assets	1,384,867	1,487,825
	Total assets	7,191,628	7,536,145

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			(Thousand yen)
		FY 2020	Q2 FY 2021
		(December 31, 2020)	(June 30, 2021)
Liabilities
	Current liabilities
	Accounts payable-trade	804,759	825,946
	Current portion of long-term loans payable	8,028	5,324
	Accounts payable	105,145	98,125
	Accrued expenses	186,495	278,376
	Income taxes payable	247,765	153,546
	Accrued consumption taxes	133,890	108,581
	Provision for bonuses	2,000	9,110
	Advances received	2,183,623	2,531,664
	Other	61,829	27,549
	Total current liabilities	3,733,537	4,038,226
	Noncurrent liabilities
	Long-term debt	1,830	520
	Retirement benefit liability	201,421	214,704
	Provision for share-based remuneration	15,553	25,668
	Long-term accounts payable - other	66,598	66,598
	Total noncurrent liabilities	285,402	307,491
	Total liabilities	4,018,940	4,345,717
Net assets
	Shareholders' equity
	Capital stock	510,772	514,326
	Capital surplus	283,272	286,826
	Retained earnings	2,393,965	2,392,913
	Treasury shares	-100,252	-100,252
	Total shareholders' equity	3,087,757	3,093,815
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities	55,168	33,530
	Deferred gains or losses on hedges	-805	747
	Total accumulated other comprehensive income	54,362	34,277
	Share subscription rights	30,567	62,335
	Total net assets	3,172,688	3,190,428
Total liabilities and net assets	7,191,628	7,536,145

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

Quarterly Consolidated Statement of Income

Second Quarter

		(Thousand yen)
	Q2 FY 2020	Q2 FY 2021
	(January 1, 2020-	(January 1, 2021-
	June 30, 2020)	June 30, 2021)
Net sales	5,025,827	5,885,431
Cost of sales	3,629,378	4,408,183
Gross profit	1,396,449	1,477,247
Selling, general and administrative expenses	1,078,686	1,227,364
Operating income	317,762	249,883
Non-operating income
Interest income and dividends	27	8
Foreign exchange gain	2,446	33,560
Surrender value of insurance	3,372	1,518
Subsidy income	8,244	1,983
Compensation income	-	9,595
Other	2,995	1,293
Total non-operating income	17,086	47,960
Non-operating expenses
Interest expenses	69	108
Guarantee commission	120	120
Stock issuance cost	210	180
Customer compensation and other costs	-	6,436
Other	0	24
Total non-operating expenses	400	6,869
Ordinary income	334,449	290,974
Extraordinary income
Gains on sales of investment securities	22,699	-
Total extraordinary income	22,699	-
Extraordinary loss
Ceremony cancellation related costs	1,964	-
Total extraordinary loss	1,964	-
Profit before income taxes	355,184	290,974
Income taxes	153,562	138,620
Income taxes-deferred	-34,233	-29,465
Total income taxes	119,328	109,154
Net income	235,855	181,819
Net income attributable to owners of non-controlling	-	-
shareholders
Net income attributable to owners of parent	235,855	181,819

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