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, 2022
(Based on Japanese GAAP)May 10, 2022
Company name:Musashi Seimitsu Industry Co.,Ltd.

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

https://www.musashi.co.jp

Representative:

President & CEO
Deputy CFO

Hiroshi Otsuka

Inquiries:

Finance & Accounting Division General
ManagerShinichi Takahashi

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

June 23, 2022
June 23, 2022

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

June 24, 2022
Yes

Holding of 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 year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
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%
Year ended March 31, 2022
241,896
18.2
8,413
12.1
9,435
14.0
5,429
(26.4)
Year ended March 31, 2021
204,714(13.4)
7,507
3.1
8,277
16.4
7,378
–
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
5.9
3.9
3.5–
9.4
3.8
3.7Diluted earnings pershare

Earnings per share
Yen
83.20
113.14

Year ended March 31, 2022
Year ended March 31, 2021
(2) Consolidated financial position

Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
259,960
226,066

Millions of yen
112,269
95,914

Cash flows fromoperating activities
Millions of yen
5,805
18,259Cash flows frominvesting activities
Millions of yen(20,131)(12,198)

Net assets per share%
38.7
37.7

Yen
1,541.26
1,305.03(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
14,75828,325(6,886)24,891

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

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

YenYenYenYenYenMillions of yen%%––5.0015.00

––

30.00
30.00

35.00
45.00

2,284
2,936

30.9
54.1

2.9
3.2

–

20.00

–

25.00

45.00

145.2

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
275,000

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
13.7
10,000
18.9
9,500
0.7
6,500
19.7
99.61

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(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:

Yes
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, 2022

65,287,701 shares As of March 31, 2021

65,258,601 shares

Number of treasury shares at the end of the period
As of March 31, 2022

24,144 shares As of March 31, 2021

17,558 shares

Average number of shares during the period
Year ended March 31, 2022

65,255,107 shares Year ended March 31, 2021

265,216,776 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade24,143
33,77627,554
39,188Merchandise and finished goods
Work in process

8,309
8,077

11,1599,308

Raw materials and supplies
Other

21,4176,430

26,477
8,574

Allowance for doubtful accounts
Total current assets

(102)

(83)

102,053

122,180

47,213

51,636(24,197)(293)(27,388)(382)

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

22,722

23,864

Machinery, equipment and vehicles
Accumulated depreciation

223,359(168,586)

251,601(192,256)

(527)

(753)

Accumulated impairment

54,24558,590Tools, furniture and fixtures

Machinery, equipment and vehicles, net

13,057

14,566

Accumulated depreciation
Accumulated impairment(9,315)(15)(10,951)(20)

Tools, furniture and fixtures, net

3,726

3,594

Land
Construction in progress

7,488
14,065

7,735
17,912

Total property, plant and equipment

102,249

111,699

Intangible assets
Goodwill

694

416

Customer relationship assets
Software

2,807
1,318

2,543
1,428

Software in progress
Other36
1,5597
1,130

Total intangible assets

6,416

5,525

Investments and other assets
Investment securities

9,749

12,583

777
65

997
224

2,243
2,556

2,782
4,023

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

(43)

(56)

Total investments and other assets

15,34820,556124,013

137,780

226,066

259,960

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

17,84318,508

Short-term borrowings
Current portion of long-term borrowings

38,932
11,41042,38012,287

Accounts payable - otherAccrued expenses

3,967
7,614

3,738
6,257

Income taxes payable
Provision for bonuses

1,954
2,054

1,393
2,267

23
235

20212

Other

5,826

5,760

Total current liabilities

89,862

92,827Long-term borrowings
Deferred tax liabilities

27,151
2,653

41,914
3,785

Retirement benefit liability
Other

6,695
3,788

6,152
3,010

Total non-current liabilities

40,28954,863130,152

147,690

Shareholders' equityShare capital

5,394

5,427

Capital surplus
Retained earnings

3,093
85,992

3,126
87,724(8)(8)

94,472

96,2702,605(11,581)

3,878
215

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

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

(354)

223

(9,330)4,317

Non-controlling interests

10,773

11,681

Total net assets

95,914112,269

226,066

259,960

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales

204,714

241,896

Cost of sales

175,035

209,861

Gross profit

29,67932,034

Selling, general and administrative expenses

22,171

23,621

Operating profit

7,507

8,413

Non-operating income
Interest income

229

346

Dividend incomeForeign exchange gains

150
499

194
1,061

Subsidy income
Other427
362

67362

1,669

2,032

Total non-operating income
Non-operating expenses
Interest expenses

543

648

Loss on valuation of investment securities
Share of loss of entities accounted for using equity method

79–

107
37

Other

276

217

Total non-operating expenses

899

1,010

8,277

9,435

Extraordinary income
Gain on sale of non-current assets

130

47

Gain on bargain purchase
Gain on reversal of liabilities

877
557

––

Insurance claim income

45–

Total extraordinary income1,610

47

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

7136

17371

Loss on valuation of investment securities
Impairment losses

––

273
108

144

770

Profit before income taxes

9,744

8,712

Income taxes - current
Income taxes - deferred

3,098
(665)

3,910
(774)

Total income taxes

2,433

3,136

Profit

7,310

5,576

Ordinary profit

Extraordinary losses

Total extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent5(67)

147

7,378

5,429

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
7,310

5,576

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1,167
8,589

1,272
12,781Remeasurements of defined benefit plans, net of tax

(480)

610

9,276

14,665Comprehensive income

Total other comprehensive income

16,586

20,241

Comprehensive income attributable toComprehensive income attributable to owners of parent

15,92919,078657

1,163

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

Retained earnings

5,361

4,340

33

33

Total shareholders'equity

Treasury shares

79,624(8)

89,317

Changes during period
Issuance of new shares

66

Dividends of surplus(1,010)(1,010)

Profit attributable toowners of parent

7,378

7,378

Purchase of treasury
shares(0)

Purchase of shares of
consolidated subsidiaries(0)(1,279)(1,279)Net changes in items
other than shareholders'equityTotal changes during period
Balance at end of period

33(1,246)

6,367

(0)

5,154

5,394

3,093

85,992(8)

94,472

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofperiod

1,437

Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
otherplanscomprehensive
incomeRemeasurements(19,314)(6)(17,882)

Non-controllinginterests

Total net assets

11,07682,511

Changes during period
Issuance of new shares

66

Dividends of surplus(1,010)

Profit attributable toowners of parent

7,378

Purchase of treasury
shares(0)

Purchase of shares ofconsolidated subsidiaries(1,279)Net changes in items
other than shareholders'equity

1,167

7,732(348)

8,551

(302)

8,248

Total changes during period

1,167

7,732

(348)

8,551

(302)

13,403

Balance at end of period

2,605(11,581)(354)(9,330)10,773

95,914

7Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

5,394Retained earnings

3,093

85,992

Cumulative effects ofchanges in accounting
policies

Total shareholders'equityTreasury shares(8)

94,472

2

Restated balance

5,394

3,093

32

32

2

85,995(8)

94,474

Changes during period
Issuance of new shares

65

Dividends of surplus(2,936)(2,936)

Profit attributable toowners of parent

5,429

5,429

ab(142)(142)

Change in scope of
consolidation

(621)

(621)

Purchase of treasury
shares(0)(0)

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

32

32

1,729

(0)

1,795

5,427

3,126

87,724(8)

96,270

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period2,605

Foreigncurrencytranslation
adjustment(11,581)

Total
accumulatedof defined benefit
otherplanscomprehensive
incomeRemeasurements(354)(9,330)Non-controllinginterests

Total net assets

10,773

95,914

Cumulative effects ofchanges in accounting
policies
Restated balance

2
2,605

(11,581)(354)(9,330)10,773

95,917

Changes during period
Issuance of new shares

65

Dividends of surplus(2,936)

Profit attributable toowners of parent

5,429

ab(142)

Change in scope ofconsolidation(621)

Purchase of treasury
shares(0)

Net changes in items
other than shareholders'equity1,272

11,797578

13,648908

14,556

Total changes during period

1,272

11,797578

13,648908

16,352

Balance at end of period

3,878

215

223

4,317

11,681

112,269

8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, 2021

March 31, 2022
9,744

8,712

15,941–

16,686108

Amortization of goodwill
aa278
(557)

278
–

Gain on bargain purchase
Share of loss (profit) of entities accounted for using equity

(877)

–

–

37

Depreciation
Impairment losses

methodIncrease (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and18(13)

(256)

122

other officers)
Increase DEcrease In Provision For Product Warranties

(19)

(3)

(942)

(30)

Increase (decrease) in retirement benefit liability
Interest and dividend income

(827)
(380)

111(541)

Interest expenses
Foreign exchange losses (gains)

543
(939)

648
(2,697)

Loss (gain) on sale and retirement of property, plant andequipment

13340

Insurance claim income
Loss (gain) on valuation of investment securities

(45)
79–
381

Decrease (increase) in trade receivables
Decrease (increase) in inventories(6,035)(871)(2,294)(5,849)

Increase (decrease) in trade payables
Other, net

857
5,308

(1,138)(4,198)Subtotal

21,034

10,658Interest and dividends received
Interest paid

385(535)535(644)

Income taxes paid
Proceeds from insurance income(2,669)45(4,742)–Net cash provided by (used in) operating activities

18,2595,805

Cash flows from investing activities
Purchase of property, plant and equipment(12,524)(16,811)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

702
(321)

280
(982)

Purchase of investment securities
Loan advances

(639)
(724)

(1,705)(1,213)

Proceeds from collection of loans receivable
Purchase of shares of subsidiaries

125(5)

496–

1,176–

12(195)(12,198)(20,131)

Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

9(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
6,397

1,632

Proceeds from long-term borrowings
Repayments of long-term borrowings

10,039(19,523)

26,107(9,401)

Purchase of treasury shares
Dividends paid

(0)
(1,010)(0)(2,936)

(335)

(255)

(2,122)–

Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net

(329)

(388)

Net cash provided by (used in) financing activities(6,886)

14,758

Effect of exchange rate change on cash and cash equivalents

2,469

2,972

Net increase (decrease) in cash and cash equivalents

1,644

3,405

Cash and cash equivalents at beginning of period

23,24624,891–29

24,891

28,325

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period10