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, 2018
(Based on Japanese GAAP)
November 2, 2018
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 2, 2018
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

November 30, 2018
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, 2018 (from April 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)Net sales
Six months ended September 30, 2018
Six months ended September 30, 2017

Millions of yen
129,026
113,635

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
13.5
7,784
32.6
8,455
37.5
5,496
58.2
51.5
5,869
17.2
6,147 145.3
3,474 114.8

Earnings per share

Diluted earnings per share

Yen
87.89
55.67

Six months ended September 30, 2018
Six months ended September 30, 2017

Yen
80.84
50.88

(2) Consolidated financial position
Total assets
As of September 30, 2018
As of March 31, 2018

Net assets

Millions of yen
244,175
247,778

Equity ratio

Millions of yen
103,130
100,350

Net assets per share
%
35.4
33.5

Yen
1,368.85
1,330.41

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
27.00
42.00

Yen–

Yen
39.00

Yen
66.00

–

21.00

–Year ending March 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
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
249,000
4.7
17,0007.8
16,6004.2
10,6002.4
168.591

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2018(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, 2018

63,240,206 shares As of March 31, 2018

62,442,200 shares

Number of treasury shares at the end of the period
As of September 30, 201816,152 shares As of March 31, 201813,574 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

62,530,157 shares Six months ended September 30, 2017

262,406,544 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade26,10634,31928,18634,242Merchandise and finished goods
Work in process

10,117
5,513

10,6096,170

Raw materials and supplies
Other

19,8607,800

19,493
7,639

Allowance for doubtful accounts
Total current assets

(39)

(33)

103,678

106,309

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

42,94542,671

Accumulated depreciation
Accumulated impairment loss

(19,210)(895)(19,842)(739)

Buildings and structures, net

22,83922,089Machinery, equipment and vehicles
Accumulated depreciation

205,929(140,146)

204,278(143,878)

Accumulated impairment loss

(1,130)(972)

Machinery, equipment and vehicles, net

64,65259,42811,366

11,466

Accumulated depreciation
Accumulated impairment loss

(7,265)(47)(7,594)(39)

Tools, furniture and fixtures, net

4,053

3,833

6,655
5,514

6,558
8,938

103,716

100,848

9,086

8,293

Customer relationship assets
Software14,123
1,648

12,727
1,515

Software in progress
Other

13
3,133

13
2,547

Total intangible assets

28,00525,097

Investments and other assets
Investment securities

6,251

7,001

8161

118
68

2,504
3,523

2,186
2,589

(43)

(43)

Tools, 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
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

12,378

11,920144,099

137,866

247,778

244,175

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Liabilities
Current liabilitiesNotes and accounts payable - trade21,347

19,449

Short-term loans payable
Current portion of long-term loans payable

10,77912,644

9,671
17,865Current portion of bonds
Accounts payable - other

10,006
3,310

8,691
3,220

Accrued expenses
Income taxes payable

6,164
1,317

6,686
1,463

Provision for bonuses
Provision for directors' bonuses

2,213
52

2,757
25

Provision for product compensations
Other

35
3,611

16
4,566

Total current liabilities

71,48474,415

Non-current liabilities
Long-term loans payable

63,36255,0056,541
4,641

5,762
4,384

Deferred tax liabilities
Net defined benefit liability
Other

1,399

1,477

Total non-current liabilities

75,944

66,628147,428

141,044

Capital stock
Capital surplus

3,006
1,985

3,696
2,675

Retained earnings
Treasury shares

80,440(8)

86,239(8)

Total shareholders' equity

85,42392,602

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

2,706

2,523

Foreign currency translation adjustment
Remeasurements of defined benefit plans(5,270)195(8,809)228

Total accumulated other comprehensive income(2,368)(6,057)

Non-controlling interests

17,294

16,586

Total net assets

100,350

103,130

247,778

244,175

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, 2017

September 30, 2018

Net sales
Cost of sales

113,635
97,239129,026
108,911Gross profit

16,396

20,115Selling, general and administrative expenses

10,526

12,330Operating profit

5,869

7,784

Interest income
Dividend income

181136245309

Foreign exchange gains
Subsidy income

206
178

414
49

Other

205

198

Total non-operating income

908

1,217

557
72

423
122

Non-operating income

Non-operating expenses
Interest expenses
Other
Total non-operating expenses

630

545

6,147

8,455

Gain on sales of non-current assets

128

Total extraordinary income

128

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

4272

2232

Impairment loss–

214

Ordinary profit
Extraordinary income

Extraordinary losses

115

269

Profit before income taxes

Total extraordinary losses

6,045

8,195

Income taxes

2,328

2,291

Profit

3,716

5,903

242

407

3,474

5,496

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, 2017

September 30, 2018

3,716

5,903

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

460(182)–

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

1,624
169(4,261)
40

Total other comprehensive income

1,841(4,403)

5,558

1,500

5,031

1,806

526(306)

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
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
Impairment loss
Loss (gain) on sales of investment securities
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in provision for product compensations
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement of property, plant andequipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other, net

Six months ended

Six months ended

September 30, 2017

September 30, 2018

6,045
9,416––
304
1516(14)(0)133(318)
557
(259)

8,195
8,840
214
(1)
325
5641
(17)
(18)
95(555)
423
38

102

46(1,332)
249
(765)
156

(491)
(2,025)(2,151)
3,372

Subtotal

14,793

16,938Interest and dividend income received
Interest expenses paid
Income taxes paid

310(576)(2,801)550(401)(2,685)

Net cash provided by (used in) operating activities

11,726

14,402

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net(6,227)73(81)(28)–(142)
120(48)(6,578)173(153)(1,061)12(89)
57(90)

Net cash provided by (used in) investing activities(6,335)(7,729)Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, net(15,768)
11,273(8,814)
(0)
(811)
(520)
(396)

(1,083)41(1,819)(0)(1,217)
(403)
(298)

Net cash provided by (used in) financing activities(15,037)(4,780)77(242)

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(9,569)1,649

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

32,69725,732

1,085

1,558

Cash and cash equivalents at end of period

24,21328,9397