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 Three Months Ended June 30, 2018
(Based on Japanese GAAP)
August 3, 2018
Company name:Musashi Seimitsu Industry Co.,Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7220
URL
President & CEO

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

Inquiries:
General Manager Finance & Accounting Div. Shinichi Takahashi
Scheduled date to file Quarterly Securities Report:
August 3, 2018
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–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 three months ended June 30, 2018 (from April 1, 2018 to June 30, 2018)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2018
Three months ended June 30, 2017

Millions of yen
64,46956,551

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
14.0
3,989
8.6
4,461
14.2
3,368
57.9
51.1
3,675
58.0
3,905 559.3
2,133 305.7

Earnings per share

Diluted earnings per share

Yen
107.92
68.40

Three months ended June 30, 2018
Three months ended June 30, 2017

Yen
98.68
62.52

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

Net assets

Millions of yen
242,760
247,778

Equity ratio

Millions of yen
99,731
100,350

Net assets per share
%
34.1
33.5

Yen
2,654.96
2,660.82

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

Yen–

Yen
39.00

Yen
66.00

42.00

–

42.00

84.00

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
16,2001.7
10,4000.5
333.181

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

31,221,100 shares As of March 31, 2018

31,221,100 shares

Number of treasury shares at the end of the period
As of June 30, 2018

8,014 shares As of March 31, 2018

6,787 shares

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

31,213,797 shares Three months ended June 30, 2017

231,194,197 shares

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

As of June 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade26,106
34,31928,39034,504Merchandise and finished goods
Work in process

10,117
5,513

9,723
6,064

Raw materials and supplies
Other

19,8607,800

19,179
6,948

Allowance for doubtful accounts
Total current assets

(39)

(34)

103,678

104,776

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

42,94542,503

Accumulated depreciation
Accumulated impairment loss

(19,210)(895)(19,369)(751)

Buildings and structures, net

22,83922,381

Machinery, equipment and vehicles
Accumulated depreciation

205,929(140,146)

202,160(139,788)

Accumulated impairment loss

(1,130)(982)

Machinery, equipment and vehicles, net

64,652

61,39011,366

11,287

Accumulated depreciation
Accumulated impairment loss

(7,265)(47)(7,332)(40)

Tools, furniture and fixtures, net

4,053

3,914

6,655
5,514

6,554
6,517

103,716

100,759

9,086

8,625

Customer relationship assets
Software14,123
1,648

13,324
1,549

Software in progress
Other

13
3,133

13
2,719

Total intangible assets

28,00526,231

Investments and other assets
Investment securities

6,251

6,043

8161120662,504
3,523

2,326
2,481

(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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

12,378

10,992

144,099

137,983

247,778

242,760

(Millions of yen)
As of March 31, 2018

As of June 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade21,347

19,530

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

10,77912,644

10,354
14,165Current portion of bonds
Accounts payable - other

10,006
3,310

10,004
2,507

Accrued expenses
Income taxes payable

6,164
1,317

6,681
1,443

Provision for bonuses
Provision for directors' bonuses

2,213
52

1,620
11

Provision for product compensations
Other

35
3,611

35
5,193

Total current liabilities

71,48471,548Non-current liabilities
Long-term loans payable

63,362

59,747

6,541
4,641

5,541
4,555

Deferred tax liabilities
Net defined benefit liability
Other

1,399

1,636

Total non-current liabilities

75,944

71,480147,428

143,028

Capital stock
Capital surplus

3,006
1,985

3,006
1,985

Retained earnings
Treasury shares

80,440(8)

84,113(8)

Total shareholders' equity

85,42389,096

Total liabilities
Net assets
Shareholders' equity

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

2,706

2,334

Foreign currency translation adjustment
Remeasurements of defined benefit plans(5,270)195(8,758)
197

Total accumulated other comprehensive income(2,368)(6,227)

Non-controlling interests

17,294

16,861

Total net assets

100,350

99,731

247,778

242,760

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)Three months ended

Three months ended

June 30, 2017

June 30, 2018

Net sales
Cost of sales

56,55147,71764,46954,135Gross profit

8,833

10,334

Selling, general and administrative expenses

5,158

6,344

Operating profit

3,675

3,989

Interest income
Dividend income

92102

141
269

Foreign exchange gains
Subsidy income

148
97

241
2

Other

119

112

Total non-operating income

560

767

283
46219
76

Non-operating income

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

329

295

3,905

4,461

Gain on sales of non-current assets

62

Total extraordinary income

62

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

1947

138

Impairment loss–208

Ordinary profit
Extraordinary income

Extraordinary losses

66

229

Profit before income taxes

Total extraordinary losses

3,845

4,234

Income taxes

1,525

679

Profit

2,320

3,555

186

186

2,133

3,368

Profit attributable to non-controlling interests
Profit attributable to owners of parent5

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2017

June 30, 2018
2,320

3,555

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(240)
8(371)–

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(1,129)51(4,109)1

Total other comprehensive income(1,309)(4,479)

1,011

(924)

1,129(490)

(118)

(434)

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6