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, 2021
(Based on Japanese GAAP)May 12, 2021
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
Executive Officer General Manager ofFinance & Accounting Div.
Scheduled date of ordinary general meeting of shareholders:

Hiroshi Otsuka
Shinichi Takahashi

TEL0532-25-8111

June 22, 2021

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 23, 2021
June 23, 2021

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Net salesYear ended March 31, 2021
Year ended March 31, 2020

Millions of yen
204,714
236,355

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(13.4)
7,507
3.1
8,277
16.4
7,378
–
(7.6)
7,285
(48.4)
7,113(51.9)(6,902)–
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
9.4
3.8
3.7
–
(8.5)
3.13.1

Diluted earnings pershare

Earnings per shareYen
113.14(105.95)

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
226,066
207,333

Millions of yen
95,91482,511

Cash flows fromoperating activities
Millions of yen
18,25926,359Cash flows frominvesting activities
Millions of yen(12,198)(18,673)

Net assets per share%
37.7
34.5

Yen
1,305.03
1,096.20(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(6,886)24,891(10,878)
23,246

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

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYenYenYenYenYen

Millions of yen%%––21.00
5.00

––

10.50
30.00

31.50
35.00

2,053
2,284

–
30.9

2.5
2.9

–

30.00

–

30.00

60.00

138.4

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
230,000

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
12.4
16,000 113.1
15,10082.4
10,20038.2
156.404. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(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, 2021

65,258,601 shares As of March 31, 2020

65,184,001 shares

Number of treasury shares at the end of the period
As of March 31, 2021

17,558 shares As of March 31, 2020

17,470 shares

Average number of shares during the period
Year ended March 31, 2021

65,216,776 shares Year ended March 31, 2020

265,150,335 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,66525,37024,143
33,776Merchandise and finished goods
Work in process

7,817
7,054

8,309
8,077

Raw materials and supplies
Other

18,843
9,401

21,417
6,430

Allowance for doubtful accounts
Total current assets

(78)

(102)

89,075102,053

Non-current assets
Property, plant and equipment
Buildings and structures

44,23347,213

Accumulated depreciation
Accumulated impairment(21,758)(308)(24,197)(293)

Buildings and structures, net

22,16722,722

Machinery, equipment and vehicles
Accumulated depreciation

204,621(151,437)

223,359(168,586)

(524)

(527)

52,65954,245

12,183

13,057

Accumulated depreciation
Accumulated impairment(8,217)(16)(9,315)(15)

Tools, furniture and fixtures, net

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

3,949

3,726

Land
Construction in progress

6,994
12,4497,488
14,065

Total property, plant and equipment

98,219102,249

972

694

Customer relationship assets
Software

2,948
1,560

2,807
1,318

Software in progress
Other33
1,908

36
1,559

Total intangible assets

7,423

6,416

Investments and other assets
Investment securities

6,203

9,749

667
993

777
65

2,189
2,604

2,243
2,556(43)(43)

Intangible assets
Goodwill

Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

12,614

15,348118,258

124,013207,333

226,066

(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

15,18917,843

Short-term borrowings
Current portion of long-term borrowings

31,803
19,34538,932
11,410Accounts payable - otherAccrued expenses

3,002
8,424

3,967
7,614

Income taxes payable
Provision for bonuses

1,247
2,230

1,954
2,054

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

42
1,144

23235

Other

5,369

5,826

Total current liabilities

87,80089,862Long-term borrowings
Deferred tax liabilities

27,9582,285

27,151
2,653

Retirement benefit liability
Other

5,169
1,607

6,695
3,788

Non-current liabilities

Total non-current liabilities

37,02140,289124,821130,152

Shareholders' equity
Share capital

5,361

5,394

Capital surplus
Retained earnings

4,340
79,624

3,093
85,992

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(8)

(8)

89,317

94,472

1,437(19,314)

2,605(11,581)

(6)

(354)

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
Non-controlling interests
Total net assets
Total liabilities and net assets

4(17,882)(9,330)11,076

10,77382,511

95,914

207,333

226,066

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales

236,355

204,714

Cost of sales

203,665

175,035

Gross profit

32,69029,679Selling, general and administrative expenses

25,40522,171

Operating profit

7,285

7,507

596

229

Dividend income
Foreign exchange gains

425–

150
499

Subsidy income
Other

–
598

427
362

1,621

1,669

743

543

Foreign exchange losses
Loss on valuation of investment securities

629
–

–
79

Other

419

276

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expenses

Total non-operating expenses

1,792

899

7,113

8,277

Extraordinary income
Gain on sale of non-current assets

77

130

Gain on bargain purchase
Gain on reversal of liabilities

–
–

877
557

Ordinary profit

Insurance claim income–

45

Total extraordinary income

77

1,610

171307136

Impairment losses
Loss on litigation

13,762
3,142––

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

Total extraordinary losses

17,052

144

Profit (loss) before income taxes(9,861)

9,744

Income taxes - current
Income taxes - deferred

3,883(3,065)

3,098
(665)

Total income taxes

818

2,433

Profit (loss)(10,679)

7,310

Loss attributable to non-controlling interests(3,776)(67)

Profit (loss) attributable to owners of parent(6,902)

7,378

5Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021

(10,679)

7,310

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(588)(11,042)

1,167
8,589

Remeasurements of defined benefit plans, net of tax

(263)

(480)

(11,893)

9,276

Comprehensive income

Total other comprehensive income(22,573)

16,586Comprehensive income attributable toComprehensive income attributable to owners of parent(17,410)

15,929(5,162)657Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

Retained earnings

5,326

4,305

35

35

Total shareholders'equity

Treasury shares

89,261(8)

98,884

Changes during period
Issuance of new shares

70

Dividends of surplus(2,735)(2,735)

Profit (loss) attributableto owners of parent(6,902)(6,902)

Purchase of treasury
shares(0)

Increase (decrease) due
to change fiscal year of
subsidiaries

(0)

22

Net changes in items
other than shareholders'equityTotal changes during period3535(9,636)(0)(9,566)

Balance at end of period

5,361

4,340

79,624(8)

89,317

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

2,026

Foreigncurrencytranslation
adjustment(9,593)

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

192(7,374)

Non-controllinginterests

Total net assets

16,823

108,333

Changes during periodIssuance of new shares

70

Dividends of surplus(2,735)

Profit (loss) attributableto owners of parent(6,902)

Purchase of treasury
shares(0)

Increase (decrease) due
to change fiscal year ofsubsidiaries

2

Net changes in items
other than shareholders'equity(588)(9,720)(198)(10,507)(5,747)(16,255)

Total changes during period(588)(9,720)(198)(10,507)(5,747)(25,822)

Balance at end of period

1,437(19,314)(6)(17,882)

11,07682,511

7

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'equityTreasury shares

79,624(8)

89,317

Changes during period
Issuance of new shares

66

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

Profit (loss) attributableto owners 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

33(1,246)

6,367

(0)

5,154

Balance at end of period

5,394

3,093

85,992(8)

94,472

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period1,437

Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
othercomprehensive
plansincomeRemeasurements(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 (loss) attributableto owners of parent

7,378

Purchase of treasury
shares(0)Purchase of shares of
consolidated 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

95,9148

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
(9,861)

9,744

17,742
13,762

15,941–Amortization of goodwill
Debt reversal gain

880–

278(557)

Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts

–(2)

(877)
18

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and80

(256)

(9)

(19)

270(942)254(1,022)

(827)
(380)

Interest expenses
Foreign exchange losses (gains)

743
141

543
(939)

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

70

13Insurance claim income
Loss (gain) on valuation of investment securities––(45)
79

Decrease (increase) in trade receivables
Decrease (increase) in inventories

6,427
360

(6,035)(871)

Increase (decrease) in trade payables
Other, net(1,851)
1,912

857
5,308

Subtotal

29,90021,034

Interest and dividends received
Interest paid

1,031
(798)

385
(535)

Income taxes paid
Proceeds from insurance income(3,773)–(2,669)
45

Net cash provided by (used in) operating activities

26,35918,259(16,490)(12,524)

175
(525)

702
(321)

Purchase of investment securities
Proceeds from sale of investment securities(2,165)4(639)–

Loan advances
Proceeds from collection of loans receivable

(167)
147

(724)
125

–

(5)

–

1,176

347

12(18,673)(12,198)

Depreciation
Impairment losses

other officers)
Increase DEcrease In Provision For Product Warranties
Increase (decrease) in retirement benefit liability
Interest and dividend income

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets

Purchase of shares of subsidiaries
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, 2020

March 31, 2021
7,909

6,397

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

1,115(16,046)

10,039(19,523)

Purchase of treasury shares
Dividends paid

(0)(2,735)(0)(1,010)

(610)

(335)

–(2,122)

(509)

(329)

Net cash provided by (used in) financing activities(10,878)(6,886)

Effect of exchange rate change on cash and cash equivalents(2,287)2,469

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

Net increase (decrease) in cash and cash equivalents(5,479)1,644

Cash and cash equivalents at beginning of period

27,06923,246

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

1,656

–

Cash and cash equivalents at end of period

23,24624,89110