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, 2022
(Based on Japanese GAAP)
November 8, 2022
Company name:Musashi Seimitsu Industry Co.,Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7220
URLPresident & CEO

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

Inquiries:
Deputy CFOScheduled date to file Quarterly Securities Report:

Shinichi Takahashi
November 8, 2022

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

November 30, 2022
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, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2022
Six months ended September 30, 2021

Millions of yen
141,851
113,545

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
24.9
1,457 (37.6)
2,735
41.2
406 (67.4)
37.9
2,333
–
1,936
–
1,248
–

Earnings per share

Diluted earnings per share

Yen
6.23
19.14

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Millions of yen
273,580
259,960

Equity ratio

Millions of yen
119,332
112,269

Net assets per share%
39.2
38.7

Yen
1,642.95
1,541.26

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
15.00
20.00

Yen–

Yen
30.00

Yen
45.00

–

25.00

45.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
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
300,000
24.0
10,000
18.9
9,500
0.7
6,500
19.7
99.61

14. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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, 2022

65,333,301 shares As of March 31, 2022

65,287,701 shares

Number of treasury shares at the end of the period
As of September 30, 2022

30,955 shares As of March 31, 2022

24,144 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

65,276,680 shares Six months ended September 30, 2021

265,246,703 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade27,554
39,18826,59745,319Merchandise and finished goods
Work in process

11,159
9,308

12,217
10,540Raw materials and supplies
Other

26,477
8,574

29,038
8,280

Allowance for doubtful accounts
Total current assets

(83)

(53)

122,180

131,941

51,63654,743(27,388)(382)(29,767)(398)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Accumulated impairment
Buildings and structures, net

23,864

24,578

Machinery, equipment and vehicles
Accumulated depreciation

251,601(192,256)

273,936(210,003)

(753)

(805)

Accumulated impairment

58,59063,127

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

14,566

15,848

Accumulated depreciation
Accumulated impairment(10,951)(20)(12,058)
(21)

3,594

3,769

Land
Construction in progress

7,735
17,912

8,031
16,611

Total property, plant and equipment

111,699

116,118

Tools, furniture and fixtures, net

Intangible assets
Goodwill

416

277

Customer relationship assets
Software

2,543
1,428

2,432
1,192

Software in progress
Other

7
1,130

7919

Total intangible assets

5,525

4,828

Investments and other assets
Investment securities

12,583

11,984

997
224

1,336
147

2,782
4,023

2,798
4,462

Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

(56)

(36)

Total investments and other assets

20,556

20,692

137,780

141,639

259,960

273,580

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

LiabilitiesCurrent liabilities
Notes and accounts payable - trade

18,50819,989

Short-term borrowings
Current portion of long-term borrowings

42,38012,28752,60912,507

Accounts payable - otherAccrued expenses

3,738
6,257

3,974
7,101

Income taxes payable
Provision for bonuses

1,393
2,267

1,654
3,202

20
212

12213

Other

5,760

5,380

Total current liabilities

92,827

106,645

Long-term borrowings
Deferred tax liabilities

41,914
3,785

36,221
3,402

Retirement benefit liability
Other

6,152
3,010

5,626
2,350

Total non-current liabilities

54,86347,601

147,690

154,247

Shareholders' equity
Share capital

5,427

5,458

Capital surplus
Retained earnings

3,126
87,724

3,158
86,173(8)(8)

96,27094,781

3,878
215

2,815
9,251

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

Non-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
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

223

439

4,317

12,506

Non-controlling interests

11,681

12,043

Total net assets

112,269

119,332

259,960

273,580

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)Six months ended

Six months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

113,545
99,403

141,851
125,994

Gross profit

14,14215,856

Selling, general and administrative expenses11,808

14,399Operating profit

2,333

1,457

166
106

240
120–
–

123
1,074

Compensation income
Other–
140

272
190

Total non-operating income

413

2,022

261

512–
494

82–

Other

54

148

Total non-operating expenses

810

743

1,936

2,735

Non-operating income
Interest income
Dividend income
Gain on valuation of investment securities
Foreign exchange gains

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses

Ordinary profit
Extraordinary income
Gain on termination of retirement benefit plan–405

291729422

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

7151

225

Loss on valuation of investment securities

5–

165

27

1,801

3,130586

2,555

1,215575(33)

168

1,248

406

Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses

Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

1,215

575

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

3,192
243

(1,062)
9,684

Remeasurements of defined benefit plans, net of tax

288

431

3,724

9,054

Comprehensive income

Total other comprehensive income

4,939

9,630

Comprehensive income attributable toComprehensive income attributable to owners of parent

5,062

8,595

(122)

1,034

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for product compensations
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of property, plant andequipment
Loss (gain) on valuation of investment securities
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net

Six months ended

Six months ended

September 30, 2021

September 30, 2022

1,801
8,309
139
(1)
567

3,130
9,310
139
(52)
842

(8)

(7)

(8)
127
(272)
261
(615)

(5)
(93)
(360)
512
(37)

129

10

5(123)

–

82

4,829
(7,918)(1,724)(1,182)(3,244)(1,881)(82)
1,176

Subtotal

4,439

9,316

Interest and dividends received
Interest paid
Income taxes paid

271
(249)
(2,735)370(568)(2,674)

Net cash provided by (used in) operating activities

1,726

6,443

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Loan advances
Proceeds from collection of loans receivable
Other, net(7,517)184(320)(1,397)(315)317
7(7,517)32(59)(849)(233)
155458Net cash provided by (used in) investing activities(9,041)(8,013)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net

15,527–(6,228)(0)(1,957)
(255)
(206)

7,447
203
(6,363)–(1,957)
(672)
(282)

Net cash provided by (used in) financing activities

6,879(1,625)

Effect of exchange rate change on cash and cash equivalents

(154)

2,401

Net increase (decrease) in cash and cash equivalents

(590)

(793)

Cash and cash equivalents at beginning of period

24,891

28,325

Cash and cash equivalents at end of period

24,30027,5327