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 Three Months Ended June 30, 2022
(Based on Japanese GAAP)
August 5, 2022
Company name:Musashi Seimitsu Industry Co.,Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7220
URL
President & CEO

https://www.musashi.co.jp
Hiroshi Otsuka

Inquiries:

Deputy CFO
Finance & Accounting Division General

Shinichi Takahashi

Manager
Scheduled date to file Quarterly Securities Report:

August 5, 2022

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

Holding of quarterly financial results meeting:

Yes

TEL

0532-25-8111(for institutional investors and analysts)((Amounts less than one million yen are rounded down))
1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)Three months ended June 30, 2022
Three months ended June 30, 2021

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%
63,9259.9(1,186)–(63)–(200)–
58,186 109.3
1,676
–
1,629
–
1,562
–
Earnings per share

Diluted earnings per share

Yen(3.08)
23.95

Three months ended June 30, 2022
Three months ended June 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022

Net assets

Millions of yen
274,364
259,960

Equity ratio

Millions of yen
118,171
112,269

Net assets per share%
38.6
38.7

Yen
1,622.09
1,541.26

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
15.00

Yen–

Yen
30.00

Yen
45.00

20.00

–

25.00

45.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
275,000
13.7
10,000
18.9
9,500
0.7
6,500
19.7
99.61

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) 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:
Changes in accounting policies due to other reasons:

Yes
NoChanges in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

65,287,701 shares As of March 31, 2022

65,287,701 shares

Number of treasury shares at the end of the period
As of June 30, 2022

30,955 shares As of March 31, 2022

24,144 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2022

65,256,746 shares Three months ended June 30, 2021

265,234,461 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of June 30, 2022

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade27,554
39,18832,21038,158Merchandise and finished goods
Work in process

11,159
9,308

12,831
9,956

Raw materials and supplies
Other

26,477
8,574

29,424
9,366

Allowance for doubtful accounts
Total current assets

(83)

(88)

122,180

131,860

51,636

54,102(27,388)(382)(28,963)(384)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Accumulated impairment
Buildings and structures, net

23,86424,754

Machinery, equipment and vehicles
Accumulated depreciation

251,601(192,256)

268,159(204,930)

(753)

(781)

Accumulated impairment

58,59062,447

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

14,566

15,505

Accumulated depreciation
Accumulated impairment(10,951)(20)(11,747)
(20)

3,594

3,736

Land
Construction in progress

7,735
17,912

7,980
17,732

Total property, plant and equipment

111,699

116,651

Tools, furniture and fixtures, net

Intangible assets
Goodwill

416

347

Customer relationship assets
Software

2,543
1,428

2,546
1,305

Software in progress
Other7
1,130

7
1,043

Total intangible assets

5,525

5,248

Investments and other assets
Investment securities

12,583

12,484

997
224

1,003
231

2,782
4,023

2,595
4,345

Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

(56)

(56)

Total investments and other assets

20,556

20,603

137,780

142,503259,960

274,364

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of June 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

18,50818,860

Short-term borrowings
Current portion of long-term borrowings

42,38012,28755,926
12,516

Accounts payable - otherAccrued expenses

3,738
6,257

3,508
6,533

Income taxes payable
Provision for bonuses

1,393
2,267

1,305
1,916

20
212

26
221

Other

5,760

6,412

Total current liabilities

92,827

107,226

Long-term borrowings
Deferred tax liabilities

41,914
3,785

37,685
3,366

Retirement benefit liability
Other

6,152
3,010

5,528
2,385

Total non-current liabilities

54,863

48,966

147,690

156,192Shareholders' equity
Share capital

5,427

5,427

Capital surplus
Retained earnings

3,126
87,724

3,126
85,565(8)(8)

96,27094,111

3,878
215

3,558
7,757

Provision for bonuses for directors (and other officers)
Provision for product compensations

Non-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

2234254,317

11,741

Non-controlling interests

11,681

12,318

Total net assets

112,269

118,171259,960

274,364

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended

Three months ended

June 30, 2021

June 30, 2022

Net sales
Cost of sales

58,18650,331

63,92557,891Gross profit

7,854

6,033

Selling, general and administrative expenses

6,178

7,219

Operating profit (loss)

1,676(1,186)

81106

113
78––

950
266

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Compensation income
Other

79

113

Total non-operating income

267

1,522

Interest expenses
Loss on valuation of investment securities

122–

210
112

Share of loss of entities accounted for using equity method
Foreign exchange losses

–
161

39–

Non-operating expenses

Other

30

36

Total non-operating expenses

313

399

1,629(63)

Ordinary profit (loss)
Extraordinary income
Gain on termination of retirement benefit plan–

405

Gain on sale of non-current assets

1613

Total extraordinary income

16419

Loss on sale of non-current assets
Loss on retirement of non-current assets

6305

Loss on valuation of investment securities

5–

Total extraordinary losses

155

Extraordinary losses

Profit before income taxes

1,630

350

Income taxes

(20)

609

Profit (loss)

1,650(258)88(57)

1,562

(200)

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive incomeThree months ended

Three months ended

June 30, 2021

June 30, 2022
1,650(258)Valuation difference on available-for-sale securities
Foreign currency translation adjustment

333
1,083(319)8,090

Remeasurements of defined benefit plans, net of tax

294

414

1,712

8,185

Comprehensive income

Total other comprehensive income

3,362

7,927

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,197

7,222

165

704

Comprehensive income attributable to non-controllinginterests

6