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, 2021
(Based on Japanese GAAP)
February 8, 2022
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 8, 2022–

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, 2021 (from April 1, 2021 to December 31, 2021)(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, 2021
172,392
20.8
3,147
36.3
3,285
33.0
1,706 (32.9)
Nine months ended December 31, 2020
142,740 (21.5)
2,308 (64.5)
2,469 (62.8)
2,544 (41.6)
Earnings per share

Diluted earnings per share

Yen
26.16
39.02

Nine months ended December 31, 2021
Nine months ended December 31, 2020Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
245,158
226,066

As of December 31, 2021
As of March 31, 2021

Equity ratio

Millions of yen
102,236
95,914

Net assets per share
%
37.4
37.7

Yen
1,404.82
1,305.03

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
5.00
15.00

Yen––

Yen
30.00

Yen
35.00

30.00

45.00

Year ending March 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
230,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
12.4
9,000
19.9
7,900(4.6)
5,600 (24.1)
85.83

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(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 December 31, 2021

65,287,701 shares As of March 31, 2021

65,258,601 shares

Number of treasury shares at the end of the period
As of December 31, 2021

24,144 shares As of March 31, 2021

17,558 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2021

65,252,342 shares Nine months ended December 31, 2020

265,208,835 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade24,143
33,77625,641
31,072Merchandise and finished goods
Work in process

8,309
8,077

10,751
9,111

Raw materials and supplies
Other

21,4176,430

26,7207,227

Allowance for doubtful accounts
Total current assets

(102)

(80)

102,053

110,445

47,213

48,946(24,197)(293)(25,739)(308)

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

22,722

22,898

Machinery, equipment and vehicles
Accumulated depreciation

223,359(168,586)

234,200(179,141)

(527)

(656)

Accumulated impairment

54,24554,403Tools, furniture and fixtures

Machinery, equipment and vehicles, net

13,057

13,895

Accumulated depreciation
Accumulated impairment(9,315)(15)(10,198)(16)

Tools, furniture and fixtures, net

3,726

3,680

Land
Construction in progress

7,488
14,065

7,509
16,363

Total property, plant and equipment

102,249

104,855

Intangible assets
Goodwill

694486Customer relationship assets
Software

2,807
1,318

2,526
1,288

Software in progress
Other36
1,559

7
1,201

Total intangible assets

6,416

5,509

Investments and other assets
Investment securities

9,749

16,657

777
65

945
152

2,243
2,556

2,947
3,700

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

(43)

(56)

Total investments and other assets

15,34824,348124,013

134,713226,066

245,158

Total non-current assets
Total assets

3(Millions of yen)
As of March 31, 2021

As of December 31, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

17,843

17,578

Short-term borrowings
Current portion of long-term borrowings

38,932
11,41037,43812,042

Accounts payable - otherAccrued expenses

3,967
7,614

4,134
6,249

Income taxes payable
Provision for bonuses

1,954
2,054

1,224
1,367

23235

18204

Other

5,826

6,358

Total current liabilities

89,862

86,616Long-term borrowings
Deferred tax liabilities

27,151
2,653

42,550
4,205

Retirement benefit liability
Other

6,695
3,788

6,5223,027

Total non-current liabilities

40,28956,305130,152

142,922

Shareholders' equity
Share capital

5,394

5,427

Capital surplus
Retained earnings

3,093
85,992

3,126
84,763(8)(8)

94,47293,3082,605(11,581)

6,586(8,080)

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 adjustmentRemeasurements of defined benefit plans
Total accumulated other comprehensive income

(354)

(130)

(9,330)(1,624)Non-controlling interests

10,773

10,552

Total net assets

95,914102,236

226,066

245,158

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)
Nine months ended

Nine months ended

December 31, 2020

December 31, 2021

Net sales
Cost of sales

142,740
124,652

172,392
152,063

Gross profit18,088

20,328Selling, general and administrative expenses

15,77917,181

Operating profit

2,308

3,147

Interest income
Dividend income

242
109

264
190

Foreign exchange gains
Subsidy income

–
458

110
–

Non-operating income

Other

216

283

1,026

849

Interest expenses
Foreign exchange losses

490
176

444
–

Loss on valuation of investment securities
Other–
198

101
165

Total non-operating expenses

865

711

2,469

3,285

Gain on sale of non-current assets
Gain on bargain purchase

17877

38
–

Gain on reversal of liabilities

551–

Total extraordinary income1,445

38

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

235

8159

Impairment losses
Loss on disaster–
83

108
–

Other–

5

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

121

282

Profit before income taxes

Total extraordinary losses

3,793

3,041

Income taxes

1,754

1,426

Profit

2,039

1,614

Loss attributable to non-controlling interests

(504)

(91)

Profit attributable to owners of parent

2,544

1,706

5

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

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2020

December 31, 2021

2,039

1,614

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

836
3,111

3,980
3,661

Remeasurements of defined benefit plans, net of tax

(136)

190

Total other comprehensive income

3,811

7,832

Comprehensive income

5,850

9,447

Comprehensive income attributable toComprehensive income attributable to owners of parent

5,876

9,412

(25)

34

Comprehensive income attributable to non-controllinginterests6