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 Three Months Ended June 30, 2020
(Based on Japanese GAAP)
August 5, 2020
Company name:Musashi Seimitsu Industry Co.,Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7220
URL
President & 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:

August 5, 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 three months ended June 30, 2020 (from April 1, 2020 to June 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%
Three months ended June 30, 2020
27,803 (55.5)(5,796)–(5,637)–(3,135)–Three months ended June 30, 2019
62,445(3.1)
2,364 (40.7)
2,367 (46.9)
1,937 (42.5)
Earnings per share

Diluted earnings per share

Yen(48.11)
29.76

Three months ended June 30, 2020Three months ended June 30, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
200,214207,333

As of June 30, 2020
As of March 31, 2020

Equity ratio

Millions of yen
80,35882,511

Net assets per share%
34.8
34.5

Yen
1,069.06
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

Yen–

Yen
10.50

Yen
31.50

5.00

–

15.00

20.00

Year ending March 31, 2021 (Forecast)Total

3. 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
180,000 (23.8)(900)–(1,900)–(800)–(12.26)

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 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:

No
No

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 June 30, 2020

65,184,001 shares As of March 31, 2020

65,184,001 shares

Number of treasury shares at the end of the period
As of June 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)
Three months ended June 30, 2020

65,166,531 shares Three months ended June 30, 2019

265,117,547 shares

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

As of June 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,66525,37016,972
20,365Merchandise and finished goods
Work in process

7,817
7,054

8,161
7,042

Raw materials and supplies
Other

18,8439,401

20,084
8,324

Allowance for doubtful accounts
Total current assets

(78)

(89)

89,07580,861

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

44,23344,803

Accumulated depreciation
Accumulated impairment loss

(21,758)(308)(22,401)(294)

Buildings and structures, net

22,167

22,107

Machinery, equipment and vehicles
Accumulated depreciation

204,621(151,437)

210,337(157,758)

(524)

(509)

52,65952,06812,183

12,483

Accumulated depreciation
Accumulated impairment loss

(8,217)(16)(8,549)(15)

Tools, furniture and fixtures, net

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

3,949

3,918

Land
Construction in progress

6,994
12,4497,301
12,559Total property, plant and equipment

98,21997,956972

903

Customer relationship assets
Software

2,948
1,560

2,892
1,541

Software in progress
Other

33
1,908

31
1,813Total intangible assets

7,423

7,182

Investments and other assets
Investment securities

6,203

7,117

667
993

691
1,006

2,189
2,604

2,730
2,710

(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

14,213

118,258

119,352

207,333

200,214

(Millions of yen)
As of March 31, 2020

As of June 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

15,189

9,129

Short-term borrowings
Current portion of long-term borrowings

31,803
19,34537,603
18,636

Accounts payable - otherAccrued expenses

3,002
8,424

2,628
4,985

Income taxes payable
Provision for bonuses

1,247
2,230

1,423
1,606

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

42
1,144

7
1,147

Other

5,369

5,549

Total current liabilities

87,80082,718Long-term borrowings
Deferred tax liabilities

27,9582,285

25,1572,871

Retirement benefit liability
Other

5,169
1,607

5,682
3,425Non-current liabilities

Total non-current liabilities

37,02137,137

124,821

119,855

Shareholders' equity
Share capital

5,361

5,361

Capital surplus
Retained earnings

4,340
79,6244,340
75,805

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(8)

(8)

89,31785,4981,437(19,314)1,820(17,620)

(6)

(31)

(17,882)(15,831)

11,076

10,691

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

482,51180,358207,333

200,214

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

Three months ended

June 30, 2019

June 30, 2020

Net sales
Cost of sales

62,44553,78427,803
28,827Gross profit (loss)

8,660(1,023)

Selling, general and administrative expenses

6,296

4,772

Operating profit (loss)

2,364(5,796)

128
300

8564–
–

23
127

Other

210

46

Total non-operating income

639

347

Interest expenses
Foreign exchange losses

204
221

155
–

Other

210

32

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income

Non-operating expenses

Total non-operating expenses

636

187

2,367(5,637)

Extraordinary income
Gain on sales of non-current assets

33

2Gain on bargain purchase
Gain on reversal of liabilities

––

877
534

Total extraordinary income

33

1,413

Ordinary profit (loss)

Extraordinary losses
Loss on sales of non-current assets

12

Loss on retirement of non-current assets
Impairment loss

930

8–

Total extraordinary losses

4111

Profit (loss) before income taxes

2,359(4,234)

Income taxes

394(411)

Profit (loss)

1,965(3,823)

27(687)

1,937(3,135)

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

Three months ended

Three months ended

June 30, 2019

June 30, 2020
1,965

(3,823)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(216)(3,369)382
2,122

Remeasurements of defined benefit plans, net of tax

(1)

(33)

(3,587)

2,470

Comprehensive income

Total other comprehensive income(1,622)(1,352)Comprehensive income attributable toComprehensive income attributable to owners of parent(1,262)(1,084)

(359)

(267)

Comprehensive income attributable to non-controllinginterests

6