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 Six Months Ended September 30, 2020
(Based on Japanese GAAP)
November 4, 2020
Company name:Musashi Seimitsu Industry Co.,Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7220
URLPresident & CEO

http://www.musashi.co.jp

Inquiries:

Executive Officer General Manager ofFinance & Accounting Div.

Hiroshi Otsuka
Shinichi Takahashi

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

November 4, 2020
November 30, 2020

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

Yes
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 six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)(1) Consolidated operating results (cumulative)
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%
Six months ended September 30, 2020
82,328 (33.5)(2,918)–(3,126)–(1,484)–Six months ended September 30, 2019
123,893(4.0)
4,038 (48.1)
3,959 (53.2)
2,697 (50.9)
Earnings per share

Diluted earnings per share

Yen(22.77)41.42

Six months ended September 30, 2020
Six months ended September 30, 2019Yen––(2) Consolidated financial position
Total assets
As of September 30, 2020
As of March 31, 2020

Net assets

Millions of yen
205,135
207,333

Equity ratio

Millions of yen
81,04982,511

Net assets per share%
34.4
34.5

Yen
1,081.94
1,096.20

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
21.00
5.00

Yen–

Yen
10.50

Yen
31.50

–

15.00

20.00

Year ending March 31, 2021 (Forecast)

Total3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)

Full year

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
187,000 (20.9)
1,500 (79.4)
1,300 (81.7)
1,500–23.00

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2020(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:

NoNo

Changes 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 September 30, 2020

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 September 30, 2020

17,470 shares As of March 31, 2020

17,470 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

65,192,620 shares Six months ended September 30, 2019

265,134,140 shares

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

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,66525,37019,30928,312Merchandise and finished goods
Work in process

7,817
7,054

7,059
7,051

Raw materials and supplies
Other

18,8439,401

18,437
6,937

Allowance for doubtful accounts
Total current assets

(78)

(84)

89,07587,024Non-current assets
Property, plant and equipment
Buildings and structures

44,23344,960

Accumulated depreciation
Accumulated impairment loss

(21,758)(308)(22,588)(280)

Buildings and structures, net

22,16722,092

Machinery, equipment and vehicles
Accumulated depreciation

204,621(151,437)

209,129(156,721)

(524)

(493)

52,65951,914

12,183

12,486

Accumulated depreciation
Accumulated impairment loss

(8,217)(16)(8,693)(14)

Tools, furniture and fixtures, netAccumulated impairment loss
Machinery, equipment and vehicles, netTools, furniture and fixtures

3,949

3,777

Land
Construction in progress

6,994
12,4497,296
12,283

Total property, plant and equipment

98,21997,364972

833

Customer relationship assets
Software

2,948
1,560

2,870
1,401

Software in progress
Other

33
1,908

36
1,735

Total intangible assets

7,423

6,877

Investments and other assets
Investment securities

6,203

6,701

667
993

692
1,005

2,189
2,604

2,906
2,606

(43)

(43)

Intangible assets
Goodwill

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

3

12,614

13,868118,258

118,110207,333

205,135

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

15,18913,459

Short-term borrowings
Current portion of long-term borrowings

31,803
19,34527,216
19,310Accounts payable - otherAccrued expenses

3,002
8,424

2,726
6,211

Income taxes payable
Provision for bonuses

1,247
2,230

1,309
2,747

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

42
1,144

9
1,100

Other

5,369

5,653

Total current liabilities

87,80079,745Long-term borrowings
Deferred tax liabilities

27,9582,285

31,722
2,785

Retirement benefit liability
Other

5,169
1,607

5,724
4,107

Non-current liabilities

Total non-current liabilities

37,021

44,340124,821124,085

Shareholders' equity
Share capital

5,361

5,394

Capital surplus
Retained earnings

4,340
79,624

4,373
77,455

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(8)

(8)

89,317

87,214

1,437(19,314)

1,515(18,113)

(6)

(29)

(17,882)(16,627)

11,076

10,462

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

482,51181,049207,333

205,135

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

Six months ended

September 30, 2019

September 30, 2020

Net sales
Cost of sales

123,893
107,388

82,32874,942Gross profit

16,505

7,386Selling, general and administrative expenses

12,467

10,304

Operating profit (loss)

4,038(2,918)

Interest income
Dividend income

250
341

177
80

Subsidy income
Other–
277

365
166

Total non-operating income

869

790

391

320

326
230

611
65

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)

948

997

3,959

(3,126)42–8877

Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchase
Gain on reversal of liabilities–547

Total extraordinary income

42

1,433

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

127222

Impairment loss
Loss on disaster

31––116

Total extraordinary losses

59141

Profit (loss) before income taxes

3,941(1,834)

Income taxes

1,202

386

Profit (loss)

2,738(2,220)

41(736)

2,697(1,484)

Extraordinary losses

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 income

Six months ended

Six months ended

September 30, 2019

September 30, 2020

2,738

(2,220)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(204)(6,508)77
1,450

Remeasurements of defined benefit plans, net of tax

2(35)(6,710)1,493

Comprehensive income

Total other comprehensive income(3,971)(727)

Comprehensive income attributable toComprehensive income attributable to owners of parent(3,220)

(230)

(750)

(497)

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

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

Six months ended

Six months ended

September 30, 2019

September 30, 2020

3,941

(1,834)

8,933
31

7,799
–

Loss on disaster
Amortization of goodwill

–440

116
139

Debt reversal gain
Gain on bargain purchase––(547)(877)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(2)
616

5491

Increase (decrease) in provision for bonuses for directors (andother officers)

(27)

(33)

Increase (decrease) in provision for product compensations
Increase (decrease) in retirement benefit liability

(206)
(42)

(44)
165

Interest and dividend income
Interest expenses

(592)
391

(258)
320

Foreign exchange losses (gains)
Loss (gain) on sales and retirement of property, plant and(190)

(191)

(13)

16

Depreciation
Impairment loss

equipment
Loss (gain) on valuation of investment securities

112–

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

1,406
827

(2,253)
2,611

Increase (decrease) in trade payables
Other, net

424(1,015)(2,256)
4,140

Subtotal

15,033

7,509

601
(439)

260
(318)

Income taxes paid

(1,937)(1,289)Net cash provided by (used in) operating activities

13,2586,161(8,755)57(6,409)11

Purchase of intangible assets
Purchase of investment securities

(247)
(934)

(39)
(454)

Proceeds from sales of investment securities
Loan advances

4(83)

–
(126)

Collection of loans receivable
Purchase of shares of subsidiaries

74–

67
(5)

Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation

–

1,176

Interest and dividends received
Interest paid

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Other, net
Net cash provided by (used in) investing activities

7555

83

(9,329)(5,696)

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2019

September 30, 2020

3,061

(4,696)

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

1,106(8,435)

10,038(6,759)Purchase of treasury shares
Dividends paid

(0)
(1,367)–(684)

(610)
(195)

(335)
(243)

(6,441)(2,680)

Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(942)

651

Net increase (decrease) in cash and cash equivalents(3,454)(1,563)

Cash and cash equivalents at beginning of period

27,06923,246

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

1,656

–

Cash and cash equivalents at end of period

25,271

21,6838