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, 2019
(Based on Japanese GAAP)
November 6, 2019
Company name:Musashi Seimitsu Industry Co.,Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7220
URLPresident & CEO

http://www.musashi.co.jp
Hiroshi Otsuka

Inquiries:
General Manager Finance & Accounting Div. Shinichi Takahashi
Scheduled date to file Quarterly Securities Report:
November 6, 2019
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

November 29, 2019
Yes

Holding of quarterly financial results meeting:

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, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2019
Six months ended September 30, 2018

Millions of yen
123,893129,026

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%(4.0)
4,038 (48.1)
3,959 (53.2)
2,697 (50.9)
13.5
7,784
32.6
8,455
37.5
5,496
58.2

Earnings per share

Diluted earnings per share

Yen
41.42
87.89

Six months ended September 30, 2019
Six months ended September 30, 2018

Yen–80.84(2) Consolidated financial position
Total assets
As of September 30, 2019
As of March 31, 2019

Net assets

Millions of yen
231,005
244,450

Equity ratio

Millions of yen
102,477
108,333

Net assets per share%
37.7
37.4

Yen
1,334.95
1,405.28

2. Cash dividends
Annual dividends per share

Year ended March 31, 2019Year ending March 31, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
42.00
21.00

Yen–

Yen
21.00

Yen––

21.00

42.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
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
Full year
238,500(6.8)
10,400 (26.3)
10,200 (31.0)
7,000 (29.2)
107.471

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(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:

Yes
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 September 30, 201965,184,001 shares As of March 31, 201965,135,001 shares

Number of treasury shares at the end of the period
As of September 30, 201917,470 shares As of March 31, 201916,152 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201965,134,140 shares Six months ended September 30, 2018262,530,157 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of September 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade27,152
32,047

24,90430,902Merchandise and finished goods
Work in process

11,007
5,671

8,139
7,648

Raw materials and supplies
Other

20,683
8,093

18,333
6,727

Allowance for doubtful accounts
Total current assets

(100)

(81)

104,555

96,575

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

44,90844,788

Accumulated depreciation
Accumulated impairment loss

(21,215)(419)(21,721)(386)

Buildings and structures, net

23,273

22,679Machinery, equipment and vehicles
Accumulated depreciation

212,502(152,902)

209,506(154,845)

(628)

(617)

58,97154,043

11,912

11,948

Accumulated depreciation
Accumulated impairment loss

(7,944)(22)(8,031)(20)

Tools, furniture and fixtures, net

3,946

3,896

7,248
9,067

7,113
12,291

102,506

100,024

9,168

8,028

Customer relationship assets
Software12,386
1,709

10,2191,594

Software in progress
Other

19
2,317

29
2,303

Total intangible assets

25,602

22,175Investments and other assets
Investment securities6,440

6,938

113
127

136
144

2,244
2,904

2,218
2,836(43)(43)

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

Land
Construction in progress
Total property, plant and equipment
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

11,786

12,229139,894

134,429

244,450

231,005

(Millions of yen)
As of March 31, 2019

As of September 30, 2019

LiabilitiesCurrent liabilities
Notes and accounts payable - trade17,12917,972

Short-term borrowings
Current portion of long-term borrowings

25,14014,51525,60015,298

Accounts payable - otherAccrued expenses

3,267
6,203

2,426
6,479

Income taxes payable
Provision for bonuses

1,188
2,258

1,061
2,845

51
928

23729

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

4,071

4,644

Total current liabilities

74,75577,080Long-term borrowings
Deferred tax liabilities

49,173
6,025

40,656
4,927Retirement benefit liability
Other

4,644
1,518

4,385
1,477

Non-current liabilities

Total non-current liabilities

61,361

51,446

136,116

128,527

Shareholders' equity
Share capital

5,326

5,361

Capital surplus
Retained earnings

4,305
89,261

4,340
90,593

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(8)

(8)

98,884

100,286

2,026(9,593)

1,821(15,311)

192

197

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans(7,374)(13,292)

Non-controlling interests

Total accumulated other comprehensive income

16,823

15,483

Total net assets

108,333

102,477

244,450

231,005

Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)

Net sales
Cost of sales

Six months ended

Six months ended

September 30, 2018

September 30, 2019

129,026
108,911

123,893
107,388

Gross profit

20,115

16,505

Selling, general and administrative expenses

12,33012,467

Operating profit

7,784

4,038

Interest income
Dividend income

245
309

250
341

Foreign exchange gains
Other

414
247

–
277

1,217

869

423

391

–
122

326
230

Non-operating income

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

545

948

8,455

3,959

Gain on sales of non-current assets

842

Total extraordinary income

842

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

2232

127

Impairment loss21431

Ordinary profit
Extraordinary income

Extraordinary losses

269

59

Profit before income taxes

Total extraordinary losses

8,195

3,941

Income taxes

2,291

1,202

Profit

5,903

2,738

407

41

5,496

2,697

Profit attributable to non-controlling interests
Profit attributable to owners of parent

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2018

September 30, 2019

5,903

2,738

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(182)(4,261)(204)(6,508)Remeasurements of defined benefit plans, net of tax

40

2(4,403)(6,710)Comprehensive income

Total other comprehensive income

1,500(3,971)

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,806(3,220)

(306)

(750)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2018

September 30, 2019

8,195

3,9418,840
214

8,933
31

Loss (gain) on sales of investment securities
Amortization of goodwill

(1)
325

–
440

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

5641

(2)
616

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

(17)

(27)

Increase (decrease) in provision for product compensations
Increase (decrease) in retirement benefit liability(18)
95(206)(42)

Interest and dividend income
Interest expenses

(555)
423

(592)
391

38(190)46(13)–

112

Decrease (increase) in trade receivables
Decrease (increase) in inventories(491)(2,025)

1,406
827

Increase (decrease) in trade payables
Other, net(2,151)
3,372

424
(1,015)

Subtotal

16,93815,033

550
(401)

601
(439)

Depreciation
Impairment loss

Foreign exchange losses (gains)
Loss (gain) on sales and retirement of property, plant andequipment
Loss (gain) on valuation of investment securities

Interest and dividends received
Interest paid
Income taxes paid

(2,685)(1,937)

Net cash provided by (used in) operating activities

14,402

13,258Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(6,578)173(8,755)57

Purchase of intangible assets
Purchase of investment securities(153)(1,061)

(247)
(934)

Proceeds from sales of investment securities
Loan advances

12(89)

4(83)Collection of loans receivable
Other, net

57
(90)

74555

(7,729)(9,329)Cash flows from investing activities

Net cash provided by (used in) investing activities

7

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2018

September 30, 2019

(1,083)

3,061

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

41(1,819)

1,106(8,435)Purchase of treasury shares
Dividends paid

(0)
(1,217)(0)(1,367)

(403)
(298)

(610)
(195)

(4,780)(6,441)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

(242)

(942)

Net increase (decrease) in cash and cash equivalents

1,649(3,454)

Cash and cash equivalents at beginning of period

25,732

27,069

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

1,558

1,656

Cash and cash equivalents at end of period

28,93925,2718