Segue : Plan for Compliance with the Listing Maintenance Criteria for the New Market Segment

Plan for Compliance with the Listing Maintenance Criteria for

the New Market Segment

Stock Code: :3968

Segue Group Co., Ltd.

December 29, 2021

Opinions and forecasts contained in this material are based on our judgments at the time the materials were prepared, and we do not guarantee the accuracy of the information.

Actual results may differ materially from the forward-looking statement due to changes in various factors.

Our current status as of the transition record date

Among the listing maintenance criteria for the Prime Market, we did not meet the criteria of the

"Market capitalization of tradable shares" as of the transition record date (June 30, 2021)

Criteria	Prime Market	Our Company	Compliance
status
Market capitalization of	10 billion yen or more	6.76 billion yen	×
tradable shares
Number of shareholders	800 or more	2,925	○
Number of tradable shares	20,000 units or more	54,707 units	○
Ratio of tradable shares	35% or more	47.3%	○
Trading value (daily	20 million yen or more	150 million yen	○
average)

*The figures shown above are based on the "Results of the initial assessment on compliance with the listing criteria for the Prime Market of new market segment" received from the Tokyo Stock Exchange, Inc. as of July 9, 2021.

© Segue Group Co.,Ltd. All rights reserved.	2

Basic policy and planned schedule

Basic Policy

In order to satisfy the standard for the Market capitalization of tradable shares,

we will accelerate business growth and work to increase corporate value to increase market capitalization.

At the same time, we are working to increase the ratio of tradable shares, aiming to further improve the Market capitalization of tradable shares.

Planned schedule

Our new medium-term targets are net sales of 17 billion yen, operating income of 1.2 billion yen, net income of 0.8 billion yen, and EPS of 69 yen for FY12/24,

and we will take various measures to meet the standards.

© Segue Group Co.,Ltd. All rights reserved.	3

Medium-term numerical targets to meet the criteria

Forecasts for FY12/21 (revised on November 11, 2021)

	Net sales				Operating income				Net income
	12.3				0.57				0.44
	billion yen			billion yen			billion yen

Targets for FY12/24

	Net sales				Operating income				Net income
	17 billion yen		1.2 billion yen			0.8 billion yen

*The sales target for FY12/24 is the figures after applying the Accounting Standard for Revenue Recognition, etc.

© Segue Group Co.,Ltd. All rights reserved.

4

Estimates of theoretical stock price and market capitalization of tradable shares

Estimating the theoretical stock price using EPS based on the medium-term target figure of 0.8 billion yen in net income for FY12/24 and the Company's average PER of 23.6 times after 2019 as the assumed value, the stock price would be 1,630 yen. As a result, the Market capitalization of tradable shares will reach 10.59 billion yen.

EPS		PER		Theoretical		Tradable shares		Market
		stock price		*1		capitalization of
						tradable shares
69.1 yen	×	23.6x	=	1,630 yen	×	65 thousand units	=	10.59 billion yen

*1 This is the target value for FY12/24. The decrease in the number of tradable shares due to the acquisition of treasury stock is not taken into account.

Reference: Average PER since 2019

列1	2019	2020	2021	2021	2019-
1H	Q3
Our company	22.8x	27.8x	23.5x	15.9x	23.6x
Industry average	27.1x	30.2x	32.0x	27.3x	29.1x
(Information and
Communication)

*2 Our average P/E ratio is calculated based on daily figures, and the industry average is calculated by referring to the Japan Exchange Group and other statistical materials.

© Segue Group Co.,Ltd. All rights reserved.	5