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, 2021
(Based on Japanese GAAP)
November 4, 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:

November 4, 2021
November 30, 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 six months ended September 30, 2021 (from April 1, 2021 to September 30, 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%Six months ended September 30, 2021
113,545
37.9
2,333
–
1,936
–
1,248
–
Six months ended September 30, 2020
82,328 (33.5)(2,918)–(3,126)–(1,484)–
Earnings per share

Diluted earnings per share

Yen
19.14
(22.77)Six months ended September 30, 2021
Six months ended September 30, 2020Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
235,876
226,066

As of September 30, 2021
As of March 31, 2021

Equity ratio

Millions of yen
98,707
95,914

Net assets per share
%
37.4
37.7

Yen
1,353.16
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

–30.0045.00

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 six months ended September 30, 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 September 30, 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 September 30, 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)
Six months ended September 30, 2021

65,246,703 shares Six months ended September 30, 2020

265,192,620 shares

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

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade24,143
33,77623,431
29,080

Merchandise and finished goods
Work in process

8,309
8,077

11,491
9,465

Raw materials and supplies
Other

21,417
6,430

24,736
7,748

Allowance for doubtful accounts
Total current assets

(102)

(81)

102,053

105,872

47,21348,091(24,197)(293)(25,029)(305)

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

22,72222,756

Machinery, equipment and vehicles
Accumulated depreciation

223,359(168,586)

225,061(172,733)

(527)

(541)

Accumulated impairment

54,24551,786

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

13,057

13,639

Accumulated depreciation
Accumulated impairment(9,315)(15)(9,901)(16)

Tools, furniture and fixtures, net

3,726

3,721

Land
Construction in progress

7,488
14,065

7,427
16,409Total property, plant and equipment

102,249

102,101

Intangible assets
Goodwill

694

555

Customer relationship assets
Software

2,807
1,318

2,612
1,338

Software in progress
Other36
1,559

36
1,316

Total intangible assets

6,416

5,858

Investments and other assets
Investment securities

9,749

15,492

777
65

1,001
101

2,243
2,556

2,534
2,977

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

(43)

(63)

Total investments and other assets

15,34822,043

124,013130,003

226,066

235,876

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade

17,843

16,220

Short-term borrowings
Current portion of long-term borrowings

38,932
11,41054,487
9,785

Accounts payable - otherAccrued expenses

3,967
7,614

3,871
6,652

Income taxes payable
Provision for bonuses

1,954
2,054

1,109
2,628

23235

14214

Other

5,826

7,118

Total current liabilities

89,862102,103

Long-term borrowings
Deferred tax liabilities

27,151
2,653

22,1973,512

Retirement benefit liability
Other

6,695
3,788

6,341
3,014

Total non-current liabilities

40,28935,065130,152

137,168

Shareholders' equity
Share capital

5,394

5,427

Capital surplus
Retained earnings

3,093
85,992

3,126
85,283(8)(8)

94,472

93,8292,605(11,581)

5,798(11,259)

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

(354)

(55)

(9,330)(5,516)

Non-controlling interests

10,773

10,395

Total net assets

95,914

98,707226,066

235,876

Total accumulated other comprehensive income

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, 2020

September 30, 2021

Net sales
Cost of sales

82,32874,942

113,545
99,403Gross profit7,386

14,142

Selling, general and administrative expenses

10,304

11,808Operating profit (loss)(2,918)2,333Interest income
Dividend income

177
80

166
106

Subsidy income
Other

365
166

–
140

Total non-operating income

790

413

Non-operating income

Non-operating expenses
Interest expenses

320

261

Foreign exchange losses
Other

611
65

494
54

Total non-operating expenses

997

810

(3,126)

1,936

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

8877

29–

Gain on reversal of liabilities

547–

Total extraordinary income

1,433

29

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

2227151

Loss on disaster
Loss on valuation of investment securities

116
––
5

Ordinary profit (loss)
Extraordinary income

Extraordinary losses

Total extraordinary losses

141

165

Profit (loss) before income taxes(1,834)

1,801

Income taxes

386

586

Profit (loss)(2,220)1,215

Loss attributable to non-controlling interests

(736)

(33)

Profit (loss) attributable to owners of parent(1,484)

1,248

5

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

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021

(2,220)1,215

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

77
1,450

3,192
243

Remeasurements of defined benefit plans, net of tax

(35)

288

1,493

3,724

Comprehensive income

Total other comprehensive income

(727)

4,939

Comprehensive income attributable toComprehensive income attributable to owners of parent

(230)

5,062

(497)

(122)

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Six months ended

Six months ended

September 30, 2020

September 30, 2021

(1,834)

1,801

Depreciation
Loss on disaster

7,799
116

8,309
–

Amortization of goodwill
Debt reversal gain

139(547)

139–

Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts

(877)
5–
(1)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and491

567

(33)

(8)

other officers)Increase (decrease) in provision for product compensations

(44)

(8)

Increase (decrease) in retirement benefit liability
Interest and dividend income

165(258)

127
(272)

Interest expenses
Foreign exchange losses (gains)

320
(191)

261(615)

16

129

Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables–(2,253)

5
4,829

Decrease (increase) in inventories
Increase (decrease) in trade payables

2,611(2,256)(7,918)(1,724)

Other, net

4,140(1,182)

Subtotal

7,509

4,439

Loss (gain) on sale and retirement of property, plant andequipment

Interest and dividends received

260

271

Interest paid
Income taxes paid

(318)
(1,289)(249)(2,735)

Net cash provided by (used in) operating activities

6,161

1,726

(6,409)(7,517)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

11(39)

184(320)

Purchase of investment securities
Loan advances

(454)
(126)

(1,397)
(315)

67
(5)

317
–

1,176

–

Cash flows from investing activities
Purchase of property, plant and equipment

Proceeds from collection of loans receivable
Purchase of shares of subsidiaries
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities783

7(5,696)(9,041)

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2020

September 30, 2021

(4,696)

15,527

10,038(6,759)–(6,228)Purchase of treasury shares
Dividends paid–(684)(0)(1,957)

Dividends paid to non-controlling interests
Other, net

(335)
(243)

(255)
(206)

Net cash provided by (used in) financing activities(2,680)6,879

Effect of exchange rate change on cash and cash equivalents

651

(154)

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

Net increase (decrease) in cash and cash equivalents(1,563)(590)

Cash and cash equivalents at beginning of period

23,24624,891

Cash and cash equivalents at end of period

21,68324,3008