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 Nine Months Ended December 31, 2020
(Based on Japanese GAAP)
February 9, 2021
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:

February 9, 2021–

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 nine months ended December 31, 2020 (from April 1, 2020 to December 31, 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%
Nine months ended December 31, 2020
142,740 (21.5)
2,308 (64.5)
2,469 (62.8)
2,544 (41.6)
Nine months ended December 31, 2019
181,870(5.7)
6,502 (43.1)
6,631 (44.2)
4,353 (45.3)
Earnings per share

Diluted earnings per share

Yen
39.02
66.83

Nine months ended December 31, 2020
Nine months ended December 31, 2019Yen––(2) Consolidated financial position
Total assets
As of December 31, 2020
As of March 31, 2020

Net assets

Millions of yen
210,870
207,333

Equity ratio

Millions of yen
87,301
82,511

Net assets per share
%
36.2
34.5

Yen
1,170.54
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

20.00

25.00

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
200,000 (15.4)
5,000 (31.4)
5,100 (28.3)
4,200–64.41

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 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 December 31, 2020

17,558 shares As of March 31, 2020

17,470 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2020

65,208,835 shares Nine months ended December 31, 2019

265,144,977 shares

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

20,66525,37022,90929,175Merchandise and finished goods
Work in process

7,817
7,054

7,400
7,242

Raw materials and supplies
Other

18,8439,401

20,044
5,499

Allowance for doubtful accounts
Total current assets

(78)

(93)

89,075

92,179Non-current assets
Property, plant and equipment
Buildings and structures

44,233

45,636

Accumulated depreciation
Accumulated impairment loss

(21,758)(308)(23,187)(296)

Buildings and structures, net

22,16722,152

Machinery, equipment and vehicles
Accumulated depreciation

204,621(151,437)

212,430(161,059)

(524)

(509)

52,65950,861

12,183

12,616

Accumulated depreciation
Accumulated impairment loss

(8,217)(16)(8,961)(15)

Tools, furniture and fixtures, net

Accumulated impairment loss
Machinery, equipment and vehicles, netTools, furniture and fixtures

3,949

3,638

Land
Construction in progress

6,994
12,449

7,325
13,104

Total property, plant and equipment

98,21997,082

972

764

Customer relationship assets
Software

2,948
1,5602,842
1,345

Software in progress
Other33
1,908

36
1,648

Total intangible assets

7,423

6,637

Investments and other assets
Investment securities

6,203

8,867

667
993

691
407

2,189
2,604

2,455
2,592

(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

14,970118,258

118,691

207,333

210,870

(Millions of yen)
As of March 31, 2020

As of December 31, 2020

LiabilitiesCurrent liabilities
Notes and accounts payable - trade

15,18915,099

Short-term borrowings
Current portion of long-term borrowings

31,803
19,34534,181
13,081

Accounts payable - otherAccrued expenses

3,002
8,424

3,375
6,826

Income taxes payable
Provision for bonuses

1,247
2,230

1,892
1,353

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

42
1,144

14897

Other

5,369

5,805

Total current liabilities

87,80082,527Long-term borrowings
Deferred tax liabilities

27,9582,285

28,4053,095

Retirement benefit liability
Other

5,169
1,607

6,020
3,519

Non-current liabilities

Total non-current liabilities

37,021

41,041

124,821

123,569

Shareholders' equity
Share capital

5,361

5,394

Capital surplus
Retained earnings

4,340
79,624

4,373
81,158

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(8)

(8)

89,317

90,917

1,437(19,314)

2,274(16,715)

(6)

(108)

(17,882)(14,550)

11,076

10,934

Accumulated other comprehensive income
Valuation difference on available-for-sale securitiesForeign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

482,51187,301

207,333

210,870

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

Nine months ended

December 31, 2019

December 31, 2020

Net sales
Cost of sales

181,870
156,983

142,740
124,652

Gross profit

24,88718,088Selling, general and administrative expenses

18,385

15,779Operating profit

6,502

2,308

Interest income
Dividend income

499
384

242
109

Subsidy income
Other–
417

458
216

1,301

1,026

563

490

320
287

176
198

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit

1,171

865

6,631

2,469

51
–

17877

Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchase
Gain on reversal of liabilities–551

Total extraordinary income

51

1,445Loss on sales of non-current assets
Loss on retirement of non-current assets

1549

235

Impairment loss
Loss on disaster

31––
83

Total extraordinary losses

96

121

Profit before income taxes

6,585

3,793

Income taxes

2,169

1,754

Profit

4,416

2,039

62(504)

4,353

2,544

Extraordinary losses

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

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2019December 31, 2020

4,416

2,039

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

107(2,672)836
3,111

Remeasurements of defined benefit plans, net of tax

(794)

(136)

(3,359)3,811

Comprehensive income

Total other comprehensive income

1,056

5,850

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,440

5,876

(383)

(25)

Comprehensive income attributable to non-controllinginterests

6