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 Year Ended March 31, 2018
(Based on Japanese GAAP)
April 27, 2018
Company name:Musashi Seimitsu Industry Co.,Ltd.

Stock exchange listing: Tokyo, Nagoya
Stock code:
7220
URL
Representative:
Inquiries:

http://www.musashi.co.jp

President & CEO
Hiroshi Otsuka
General Manager Finance & Accounting Div. Shinichi Takahashi

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 22, 2018
June 25, 2018

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

June 25, 2018
Yes

Holding of financial results meeting:

Yes

TEL0532-25-8111(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating resultsPercentages 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%
Year ended March 31, 2018237,91031.8
15,76741.2
15,92954.3
10,351
63.9
Year ended March 31, 2017180,5229.8
11,166 (16.7)
10,323(9.8)
6,315(7.2)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
303.23
13.4
6.4
6.6
185.01
9.1
5.1
6.2

Diluted earnings pershare

Earnings per shareYen
331.69202.47

Year ended March 31, 2018Year ended March 31, 2017(2) Consolidated financial position

Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Millions of yen
248,607248,482

Millions of yen
100,350
88,312

Cash flows fromoperating activities
Millions of yen
26,813
19,445

Cash flows frominvesting activities
Millions of yen(14,336)(41,236)

Net assets per share
%
33.4
28.8

Yen
2,660.82
2,294.74(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(20,534)
25,73240,892
32,697

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

26.00
27.00

––

26.00
39.00

52.00
66.00

1,622
2,060

25.7
20.0

2.3
2.7–

42.00

–

42.00

84.00

125.2

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Net sales
Full year

Millions of yen
249,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
4.7
17,0007.8
16,2001.7
10,4000.5
333.18

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2018

31,221,100 shares As of March 31, 2017

31,200,000 shares

Number of treasury shares at the end of the period
As of March 31, 2018

6,787 shares As of March 31, 2017

5,752 shares

Average number of shares during the period
Year ended March 31, 2018

31,209,068 shares Year ended March 31, 2017

231,194,381 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade30,607
27,37426,106
34,319Merchandise and finished goods
Work in process

9,522
5,313

10,117
5,513

Raw materials and supplies
Deferred tax assets

18,562
1,174

19,860
1,165

Other
Allowance for doubtful accounts

8,152
(42)

7,800
(39)

100,664

104,843

41,572(17,939)

42,945(19,210)

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

(943)

(895)

Buildings and structures, net

22,68822,839Machinery, equipment and vehicles

200,075

205,929

Accumulated depreciation
Accumulated impairment loss

(130,497)(1,165)(140,146)(1,130)68,41264,652

10,467(6,706)

11,366(7,265)

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Accumulated impairment loss

(51)

(47)

Tools, furniture and fixtures, net

3,708

4,053

Land

6,300

6,655

Construction in progress

7,005

5,514

108,116

103,716

Goodwill
Customer relationship assets

8,874
14,1109,086
14,123

Software
Software in progress

1,626
155

1,648
13

Other

3,251

3,133

Total intangible assets

28,01728,005Investment securities
Investments in capital

5,744
73

6,251
81

Long-term loans receivable
Deferred tax assets

48
2,751

61
2,167

Other
Allowance for doubtful accounts

3,117(51)

3,523
(43)

Total investments and other assets

11,683

12,041

147,818

143,763

248,482

248,607

Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade17,127

21,347

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

28,5899,390

10,77912,644Current portion of bonds
Accounts payable - other–
3,523

10,006
3,310

Accrued expenses
Income taxes payable

5,509
1,388

6,164
1,317

Provision for bonuses
Provision for directors' bonuses

1,825
47

2,213
52

Provision for product warranties
Other

23
4,561

35
3,611

Total current liabilities

71,98571,484

10,016–Long-term loans payable
Deferred tax liabilities

64,663
6,631

63,362
7,369

Net defined benefit liability
Other

5,037
1,835

4,641
1,399

Non-current liabilities
Bonds payable

Total non-current liabilities

88,184

76,772

160,169

148,256

Shareholders' equity
Capital stock

2,973

3,006

Capital surplus
Retained earnings

1,952
71,114

1,985
80,440Total liabilities
Net assets

Treasury shares

(7)

(8)

76,03385,423

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,394
(0)

2,706
–

Foreign currency translation adjustment
Remeasurements of defined benefit plans(6,467)(376)(5,270)195

Total shareholders' equity
Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4(4,450)(2,368)16,73017,29488,312

100,350

248,482

248,607

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Net sales

180,522

237,910

Cost of sales

151,915200,134

Gross profit

28,607

37,776

Selling, general and administrative expenses

17,44022,008Operating profit

11,166

15,767323

371

Dividend income
Foreign exchange gains

158–

208
72

Subsidy income
Other285
455

185
584

1,222

1,422

1,098

1,109

Loss on retirement of non-current assets
Foreign exchange losses

13661––

Other

291

150

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets

2,065

1,260

10,323

15,929

1450

1450

3185

Loss on retirement of non-current assets
Impairment loss

17166

141
29

Total extraordinary losses

269256

Profit before income taxes

10,06815,723

Income taxes - current
Income taxes - deferred

3,356(508)

4,773
(9)

Total income taxes

2,848

4,763

Profit7,220

10,959

904

608

6,315

10,351

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year endedFiscal year ended

March 31, 2017

March 31, 2018
7,220

10,959Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

233
(0)

311
0

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(500)
218

1,859
536

Total other comprehensive income

(49)

2,708

7,170

13,6686,794

12,434376

1,234

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

2,973

Retained earnings

2,714

66,103

Total shareholders'equity

Treasury shares(7)

71,783

Changes of items during
periodIssuance of new shares–

Dividends of surplus(1,590)(1,590)

Profit attributable toowners of parent

6,315

6,315

Purchase of treasury
shares(0)Change of scope of
consolidation

(33)

(0)
(33)

Purchase of shares of
consolidated subsidiaries

(980)

(980)

Sales of shares of
consolidated subsidiaries

218

218

Increase (decrease) due
to change fiscal year of
subsidiaries

320320Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

–

(761)

5,011

(0)

4,249

2,973

1,952

71,114(7)

76,0337

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges2,160–

Foreigncurrencytranslation
adjustment(6,485)

Totalaccumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements(637)(4,961)

Non-controllinginterests

Total net assets

11,12577,947

Changes of items during
periodIssuance of new shares–Dividends of surplus(1,590)

Profit attributable toowners of parent

6,315

Purchase of treasury
shares(0)Change of scope ofconsolidation(33)

Purchase of shares ofconsolidated subsidiaries(980)

Sales of shares ofconsolidated subsidiaries

218

Increase (decrease) due
to change fiscal year ofsubsidiaries

320

Net changes of items
other than shareholders'equity

233

(0)

17261

511

5,604

6,115

Total changes of items
during period

233

(0)

17261

511

5,604

10,365

Balance at end of current
period2,394(0)(6,467)(376)(4,450)16,73088,3128Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

2,973

1,952

32

32

71,114

Total shareholders'equity

Treasury shares(7)

76,033

Changes of items during
periodIssuance of new shares

64

Dividends of surplus(1,653)(1,653)

Profit attributable toowners of parent

10,351

10,351

Purchase of treasury
shares(0)(0)

Change of scope ofconsolidation–

Purchase of shares ofconsolidated subsidiaries–

Sales of shares ofconsolidated subsidiaries–

Increase (decrease) due
to change fiscal year ofsubsidiaries

628

628

Net changes of items
other than shareholders'equityTotal changes of items
during period

3232

9,326

(0)

9,390

Balance at end of current
period

3,006

1,985

80,440(8)85,4239Accumulated other comprehensive income

Balance at beginning ofcurrent periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges2,394(0)Foreigncurrencytranslation
adjustment(6,467)

Total
accumulated
otherof defined benefit
comprehensiveplansincomeRemeasurements(376)(4,450)Non-controllinginterests

Total net assets

16,73088,312

Changes of items during
periodIssuance of new shares

64

Dividends of surplus(1,653)

Profit attributable toowners of parent

10,351

Purchase of treasury
shares(0)Change of scope of
consolidation–

Purchase of shares of
consolidated subsidiaries–Sales of shares of
consolidated subsidiaries–Increase (decrease) due
to change fiscal year ofsubsidiaries

628

Net changes of items
other than shareholders'equity

311

0

1,197

571

2,082

564

2,646

Total changes of items
during period

311

0

1,197

571

2,082

564

12,037

Balance at end of current
period2,706–(5,270)

195(2,368)17,294

100,350

10Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
10,06815,723

14,77966

18,56429

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

291
(40)

634
(2)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

83
(2)

98
4

Increase DEcrease In Provision For Product Warranties
Increase (decrease) in net defined benefit liability

(8)
153

11314

Interest and dividend income
Interest expenses(481)
1,098(579)1,109Foreign exchange losses (gains)
Loss (gain) on sales of investment securities

1,772(77)(150)–Loss (gain) on sales and retirement of property, plant andequipment

201176

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(6,899)(931)(6,492)(1,298)

Increase (decrease) in notes and accounts payable - trade
Other, net

725
2,170

4,825(502)

Subtotal

22,96832,466470(926)

562(1,272)

Depreciation
Impairment loss

Interest and dividend income received
Interest expenses paid
Income taxes paid

(3,068)(4,943)

Net cash provided by (used in) operating activities

19,445

26,813(12,096)
498(12,632)
347

Purchase of intangible assets
Purchase of investment securities

(379)
(58)

(358)
(74)

Proceeds from sales of investment securities
Payments of loans receivable

193
(138)

–
(262)

Collection of loans receivable
Purchase of shares of subsidiaries resulting in change in scope

133

236

(28,115)–

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipmentof consolidation
Other, net
Net cash provided by (used in) investing activities

11(1,273)(1,591)(41,236)(14,336)(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018

(13,086)(17,727)

Proceeds from long-term loans payable
Repayments of long-term loans payable

54,677(3,339)11,356(11,099)

Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation(5,056)–

Proceeds from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation

9,752–Purchase of treasury shares
Cash dividends paid

(0)
(1,590)(0)(1,653)

(71)
(392)

(670)
(738)

Dividends paid to non-controlling interests
Other, netNet cash provided by (used in) financing activities

40,892(20,534)

Effect of exchange rate change on cash and cash equivalents(1,288)6

Net increase (decrease) in cash and cash equivalents

17,813(8,050)Cash and cash equivalents at beginning of period

14,25332,697

Increase in cash and cash equivalents from newly consolidated
subsidiary

701–Increase or decrease in cash and cash equivalents due to the fiscal
year-end change of consolidated subsidiaries

(70)

1,085

32,69725,732

Cash and cash equivalents at end of period12