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, 2017
(Based on Japanese GAAP)May 10, 2017
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
GM of Consolidated Financial Management

Hiroshi OtsukaMasaya Ito

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

June 23, 2017
June 26, 2017

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

June 26, 2017
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, 2017 (from April 1, 2016 to March 31, 2017)(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, 2017180,5229.8
11,166 (16.7)
10,323(9.8)
6,315(7.2)
Year ended March 31, 2016
164,397
3.9
13,39815.6
11,449(3.6)
6,809
6.7
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
185.01
9.1
5.1
6.2
199.499.8
7.1
8.2

Diluted earnings pershare

Earnings per shareYen
202.47218.29Year ended March 31, 2017
Year ended March 31, 2016
(2) Consolidated financial position

Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
248,482
155,152

Millions of yen
88,312
77,947

Cash flows fromoperating activities
Millions of yen
19,44522,968Cash flows frominvesting activities
Millions of yen(41,236)(10,211)

Net assets per share
%
28.8
43.1

Yen
2,294.74
2,142.11(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows fromCash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
40,892
32,697(7,585)
14,253

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

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(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

%%

––

25.00
26.00

––

25.00
26.00

50.00
52.00

1,559
1,622

22.9
25.7

2.3
2.3

–

27.00

–27.00

54.00

121.6

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Net sales
Millions of yen
Six months ending
September 30, 2017
Full year

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

106,000

41.3

6,000

19.8

5,700

127.4

3,200

97.9

102.58213,000

18.0

13,00016.4

12,500

21.1

7,800

23.5

250.05

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(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, 2017

31,200,000 shares As of March 31, 2016

31,200,000 shares

Number of treasury shares at the end of the period
As of March 31, 2017

5,752 shares As of March 31, 2016

5,539 shares

Average number of shares during the period
Year ended March 31, 201731,194,381 shares Year ended March 31, 20162

31,194,509 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

13,05916,85130,607
27,374Merchandise and finished goods
Work in process

3,966
3,574

9,522
5,313

Raw materials and supplies
Deferred tax assets

14,171
1,294

18,562
1,174

Other
Allowance for doubtful accounts

5,948
(66)

8,152
(42)

Total current assets

58,800100,664

33,843(16,622)

41,572(17,939)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Accumulated impairment loss(806)(943)

Buildings and structures, net

16,414

22,688

Machinery, equipment and vehicles

178,357

200,075

Accumulated depreciation
Accumulated impairment loss

(123,616)(1,008)(130,497)(1,165)53,732

68,412

7,900(6,243)

10,467(6,706)

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

(44)

(51)

Tools, furniture and fixtures, net

1,611

3,708

Land

5,045

6,300

Construction in progress

4,761

7,005

Total property, plant and equipment

81,565

108,116––

8,874
14,110

1,226
542

1,626
155

11

3,251

1,780

28,017

Investment securities
Investments in capital

5,443
2,062

5,744
73

Long-term loans receivable
Deferred tax assets

47
3,014

48
2,751

Other
Allowance for doubtful accounts

2,490
(51)

3,117
(51)

Total investments and other assets

13,006

11,68396,352

147,818

155,152

248,482

Intangible assets
Goodwill
Customer relationship assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets

3(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

11,122

17,127

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

17,1883,368

28,589
9,390

Accounts payable - otherAccrued expenses

3,206
4,811

3,523
5,509

Income taxes payable
Provision for bonuses

745
1,729

1,388
1,825

51
22

47
23

Provision for directors' bonuses
Provision for product warranties
Other

1,783

4,561

Total current liabilities

44,02971,985

Bonds payable
Long-term loans payable

10,026
18,472

10,01664,663

Deferred tax liabilities
Net defined benefit liability

1,620
2,284

6,631
5,037

Non-current liabilities

Other

770

1,835

33,17588,184

77,204160,169

Capital stock
Capital surplus

2,973
2,714

2,973
1,952

Retained earnings
Treasury shares

66,103(7)

71,114(7)

Total shareholders' equity

71,78376,033

2,160

2,394

–
(6,485)(0)(6,467)

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(637)

(376)

(4,961)(4,450)Non-controlling interests

11,125

16,730Total net assets

77,94788,312

155,152

248,482

Total accumulated other comprehensive income

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, 2016

Fiscal year ended
March 31, 2017

Net sales

164,397

180,522

Cost of sales

136,601

151,915Gross profit27,796

28,607

Selling, general and administrative expenses

14,397

17,440Operating profit

13,398

11,166

Non-operating income
Interest income

66

323

Dividend income
Subsidy income

138–

158
285

Other

255

455

Total non-operating income

460

1,222

996
43

1,098
13

1,080
290

661
291

Non-operating expenses
Interest expenses
Loss on retirement of non-current assets
Foreign exchange losses
Other
Total non-operating expenses

2,410

2,065

11,44910,323Gain on sales of non-current assets

150

14

Total extraordinary income

150

14

32
18

31
171

1,455

66Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss

1,506

269

Profit before income taxes

Total extraordinary losses

10,092

10,068

Income taxes - current

2,335

3,356

Income taxes - deferred(165)(508)

Total income taxes

2,169

2,848

Profit

7,923

7,220

Profit attributable to non-controlling interests

1,113

904

Profit attributable to owners of parent

6,809

6,315

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive incomeFiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
7,923

7,220

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

(759)
–233
(0)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(10,667)
36(500)218

Total other comprehensive income(11,390)(49)(3,467)

7,170(3,071)

6,794

(395)

376

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, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange of scope ofconsolidation
Purchase of shares ofconsolidated subsidiaries
Sales of shares ofconsolidated subsidiaries
Increase (decrease) due
to change fiscal year of
subsidiaries
Net changes of items
other than shareholders'equity
Total changes of items
during period
Balance at end of current
periodCapital surplus

2,973

Retained earnings

2,714

Total shareholders'equityTreasury shares

61,429(7)

67,111(1,528)(1,528)

6,809

6,809
(0)

(0)

(607)

(607)
––––

–

4,673

(0)

4,672

2,973

2,714

66,103(7)

71,783

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange of scope of
consolidation
Purchase of shares of
consolidated subsidiaries
Sales of shares of
consolidated subsidiaries
Increase (decrease) due
to change fiscal year ofsubsidiaries
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

2,919

–

Total
Foreign currency Remeasurements accumulatedtranslationof definedotheradjustment
benefit planscomprehensive
income
2,671

(672)

4,918

Non-controllinginterests

Total net assets

11,94083,969(1,528)
6,809
(0)
(607)
–––(759)–(9,156)35(9,880)(814)(10,694)(759)–(9,156)35(9,880)(814)(6,022)

2,160–(6,485)(637)(4,961)

11,12577,947

7

Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange of scope of
consolidation
Purchase of shares ofconsolidated subsidiaries
Sales of shares of
consolidated subsidiaries
Increase (decrease) dueto change fiscal year of
subsidiaries
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodCapital surplus

2,973

Retained earnings

2,714

Total shareholders'equityTreasury shares

66,103(7)

71,783(1,590)(1,590)

6,315

6,315
(0)

(0)

(33)

(33)

(980)

(980)

218

218
320

320

–(761)

5,011

(0)

4,249

2,973

1,952

71,114(7)

76,033

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange of scope ofconsolidation
Purchase of shares ofconsolidated subsidiaries
Sales of shares ofconsolidated subsidiaries
Increase (decrease) due
to change fiscal year ofsubsidiaries
Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges2,160–

Total
Foreign currency Remeasurements accumulatedtranslationof definedotheradjustmentbenefit planscomprehensive
income(6,485)(637)(4,961)

Non-controllinginterests

Total net assets

11,12577,947(1,590)
6,315
(0)
(33)
(980)
218
320

233

(0)

17261

511

5,604

6,115

233

(0)

17261

511

5,604

10,3652,394(0)(6,467)(376)(4,450)16,73088,3128

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, 2016

March 31, 201710,092

10,06813,291
1,455

14,77966

Loss (gain) on sales of investment securities
Increase (decrease) in allowance for doubtful accounts–26(77)(40)

Amortization of goodwill
Increase (decrease) in provision for bonuses

–121

291
83

Increase (decrease) in provision for directors' bonuses
Increase DEcrease In Provision For Product Warranties

(7)
(119)

(2)
(8)

Increase (decrease) in net defined benefit liability
Interest and dividend income

(546)
(204)

153
(481)

Interest expenses
Foreign exchange losses (gains)

996
701

1,098
1,772

Loss (gain) on sales and retirement of property, plant andequipment(56)

201Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

285(772)(6,899)(931)

Increase (decrease) in notes and accounts payable - trade
Other, net(889)
1,638

725
2,170

Subtotal

26,01522,968Interest and dividend income received
Interest expenses paid

172
(1,004)470(926)

Depreciation
Impairment loss

Income taxes paid

(2,214)(3,068)Net cash provided by (used in) operating activities

22,96819,445(9,325)609(12,096)
498

Purchase of intangible assets
Purchase of investment securities(425)
(56)

(379)
(58)

Proceeds from sales of investment securities
Payments of loans receivable

–
(92)

193
(138)

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

72

133

–

(28,115)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipmentof consolidation
Purchase of investments in capital of subsidiaries

(969)

–

Other, net(24)(1,273)(10,211)(41,236)

Net cash provided by (used in) investing activities

9

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
(5,898)(13,086)

7,395(7,096)54,677(3,339)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

(0)
(1,528)(0)(1,590)

(418)
(38)

(71)
(392)

Net cash provided by (used in) financing activities(7,585)40,892

Effect of exchange rate change on cash and cash equivalents(1,205)(1,288)Net increase (decrease) in cash and cash equivalents

3,965

17,813

Cash and cash equivalents at beginning of period

10,126

14,253

Increase in cash and cash equivalents from newly consolidated
subsidiary

161

701

Increase or decrease in cash and cash equivalents due to the fiscal
year-end change of consolidated subsidiaries–(70)

14,25332,697

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

Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, netCash and cash equivalents at end of period10