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 Year Ended March 31, 2020
(Based on Japanese GAAP)May 29, 2020
Company name:Musashi Seimitsu Industry Co.,Ltd.

Stock exchange listing: Tokyo, Nagoya
Stock code:
7220
URL
Representative:
Inquiries:

President & CEO
Executive Officer

http://www.musashi.co.jp
Hiroshi Otsuka
General Manager ofFinance & Accounting Div.
Scheduled date of ordinary general meeting of shareholders:

Shinichi Takahashi

TEL0532-25-8111

June 30, 2020

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 30, 2020
July 1, 2020

Preparation of supplementary material on financial results:
Holding of financial results meeting:

YesYes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
(7.6)
7,285
(48.4)
7,113(51.9)(6,902)–
7.6
14,107(10.5)
14,791
(7.2)
9,885
(4.5)

Net salesYear ended March 31, 2020
Year ended March 31, 2019

Millions of yen
236,355
255,934

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–(8.5)
3.1
3.1
–
11.3
6.0
5.5Diluted earnings pershare

Earnings per shareYen(105.95)
155.55

Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
207,333
244,450

Millions of yen
82,511
108,333

Cash flows fromoperating activities
Millions of yen
26,35926,714

Cash flows frominvesting activities
Millions of yen(18,673)(19,847)

Net assets per share%
34.5
37.4

Yen
1,096.20
1,405.28(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(10,878)
23,246(6,616)
27,0692. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

YenYenYenYenMillions of yen%%––42.00
21.00––

21.00
10.50

–
31.50

2,695
2,053

27.0
–

3.1
2.5

–

––––

1–

3. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:

YesNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

65,184,001 shares As of March 31, 201965,135,001 shares

Number of treasury shares at the end of the period
As of March 31, 2020

17,470 shares As of March 31, 201916,152 shares

Average number of shares during the period
Year ended March 31, 2020

65,150,335 shares Year ended March 31, 2019263,552,510 shares

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade27,152
32,047

20,66525,370

Merchandise and finished goods
Work in process

11,007
5,671

7,817
7,054

Raw materials and supplies
Other

20,683
8,093

18,843
9,401

Allowance for doubtful accounts
Total current assets

(100)

(78)

104,555

89,075

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

44,90844,233

Accumulated depreciation
Accumulated impairment loss

(21,215)(419)(21,758)(308)

Buildings and structures, net

23,27322,167

Machinery, equipment and vehicles
Accumulated depreciation

212,502(152,902)

204,621(151,437)

(628)

(524)

58,971

52,65911,912

12,183

Accumulated depreciation
Accumulated impairment loss

(7,944)(22)(8,217)(16)

Tools, furniture and fixtures, net

3,946

3,949

7,248
9,067

6,994
12,449102,506

98,2199,168

972

Customer relationship assets
Software12,386
1,709

2,948
1,560

Software in progress
Other

19
2,317

33
1,908

Total intangible assets

25,602

7,423

Investments and other assets
Investment securities

6,440

6,203

113
127

667
993

2,244
2,904

2,189
2,604

(43)

(43)

Accumulated impairment loss
Machinery, equipment and vehicles, netTools, 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

11,786

12,614

139,894

118,258

244,450

207,333

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade17,12915,189

Short-term borrowings
Current portion of long-term borrowings

25,14014,51531,803
19,345

Accounts payable - otherAccrued expenses

3,267
6,203

3,002
8,424

Income taxes payable
Provision for bonuses

1,188
2,258

1,247
2,230

51928

42
1,144

Provision for bonuses for directors (and other officers)
Provision for product warranties
Other

4,071

5,369

Total current liabilities

74,75587,800Long-term borrowings
Deferred tax liabilities

49,173
6,025

27,9582,285

Retirement benefit liability
Other

4,644
1,518

5,169
1,607

Non-current liabilities

Total non-current liabilities

61,36137,021

136,116

124,821

Shareholders' equity
Share capital

5,326

5,361

Capital surplus
Retained earnings

4,305
89,261

4,340
79,624

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(8)

(8)

98,88489,3172,026(9,593)

1,437(19,314)

192(6)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans(7,374)(17,882)

Non-controlling interests

Total accumulated other comprehensive income

16,823

11,076

Total net assets

108,333

82,511

244,450

207,333

Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net sales

255,934

236,355

Cost of sales

216,240

203,665

Gross profit

39,69432,690Selling, general and administrative expenses

25,58625,405

Operating profit

14,107

7,285

502

596

Dividend income
Foreign exchange gains

400
190

425–

Other

701

598

1,795

1,621

854–

743
629

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other

256

419

Total non-operating expenses

1,111

1,792

Ordinary profit

14,791

7,113

Extraordinary income
Gain on sales of non-current assets

3877

Impairment loss reversal gain

227–

Total extraordinary income

265

77

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

44119

17130

Impairment loss
Loss on litigation

215–

13,762
3,142

7–

Extraordinary losses

Other
Total extraordinary losses

386

17,052

Profit (loss) before income taxes

14,669(9,861)

Income taxes - current

4,540

3,883

Income taxes - deferred(409)(3,065)

Total income taxes

4,130

818

Profit (loss)

10,538(10,679)

653(3,776)9,885(6,902)

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent5Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
10,538(10,679)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(679)(5,061)(588)(11,042)

Remeasurements of defined benefit plans, net of tax

13(263)(5,728)(11,893)

Comprehensive income

Total other comprehensive income

4,810(22,573)

Comprehensive income attributable toComprehensive income attributable to owners of parent

4,879(17,410)(69)(5,162)Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

3,006

Retained earnings

1,985

80,440

Cumulative effects ofchanges in accounting
policies

Total shareholders'equity

Treasury shares(8)

85,423

100

Restated balance

3,006

1,985

2,320

2,320

100

80,541(8)

85,524

Changes during period
Issuance of new shares

4,640

Dividends of surplus(2,545)(2,545)

Profit (loss) attributableto owners of parent

9,885

9,885

Purchase of treasury
shares(0)

Increase (decrease) due
to change fiscal year ofsubsidiaries

(0)

1,379

1,379

Net changes in items
other than shareholders'equityTotal changes during period

2,320

2,320

8,719

(0)

13,359Balance at end of period

5,326

4,305

89,261(8)

98,884

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofperiod

2,706

Foreigncurrencytranslation
adjustment(5,270)

Totalaccumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

195(2,368)

Non-controllinginterests

Total net assets

17,294

100,350

Cumulative effects ofchanges in accounting
policies
Restated balance100
2,706(5,270)

195(2,368)

17,294100,451

Changes during period
Issuance of new shares

4,640

Dividends of surplus(2,545)

Profit (loss) attributableto owners of parent

9,885

Purchase of treasury
shares(0)

Increase (decrease) due
to change fiscal year of
subsidiaries
Net changes in items
other than shareholders'equity1,379(679)(4,323)(2)(5,005)(470)(5,476)

Total changes during period(679)(4,323)(2)(5,005)

(470)

7,882

Balance at end of period

2,026(9,593)

192(7,374)

16,823

108,333

7Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

5,326

Retained earnings

4,305

Total shareholders'equityTreasury shares

89,261(8)

98,884

Cumulative effects ofchanges in accounting
policies–

Restated balance

5,326

4,305

3535

89,261(8)

98,884

Changes during period
Issuance of new shares

70

Dividends of surplus(2,735)(2,735)

Profit (loss) attributableto owners of parent(6,902)(6,902)

Purchase of treasury
shares(0)

Increase (decrease) due
to change fiscal year of
subsidiaries

(0)

22

Net changes in items
other than shareholders'equityTotal changes during period3535(9,636)(0)(9,566)

Balance at end of period

5,361

4,340

79,624(8)

89,317

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period2,026Foreigncurrencytranslation
adjustment(9,593)

Total
accumulatedof defined benefit
othercomprehensive
plansincomeRemeasurements

192(7,374)

Non-controllinginterests

Total net assets

16,823

108,333

Cumulative effects ofchanges in accounting
policies
Restated balance–2,026(9,593)

192(7,374)

16,823

108,333

Changes during period
Issuance of new shares

70

Dividends of surplus(2,735)

Profit (loss) attributableto owners of parent(6,902)

Purchase of treasury
shares(0)

Increase (decrease) due
to change fiscal year of
subsidiaries2

Net changes in items
other than shareholders'equity(588)(9,720)(198)(10,507)(5,747)(16,255)

Total changes during period(588)(9,720)(198)(10,507)(5,747)(25,822)

Balance at end of period

1,437(19,314)(6)(17,882)

11,07682,5118

Consolidated statements of cash flows(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
14,669(9,861)

18,178215

17,742
13,762

(227)
787

–880

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

65
79(2)
80

Increase (decrease) in provision for bonuses for directors (andother officers)8(9)Increase DEcrease In Provision For Product Warranties
Increase (decrease) in retirement benefit liability

893
158

270
254

Interest and dividend income
Interest expenses

(903)
854

(1,022)
743

Foreign exchange losses (gains)
Loss (gain) on sales of investment securities

176
(1)

141
–

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

126

70

Decrease (increase) in trade receivables
Decrease (increase) in inventories

2,587(3,232)

6,427
360

Increase (decrease) in trade payables
Other, net(4,658)
2,121(1,851)
1,912

Subtotal

31,90029,900896(908)

1,031(798)

Depreciation
Impairment loss
Impairment loss reversal gain
Amortization of goodwill

Interest and dividends received
Interest paid
Income taxes paid

(5,174)(3,773)

Net cash provided by (used in) operating activities

26,71426,359Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(15,340)
213(16,490)
175

Purchase of intangible assets
Purchase of investment securities(641)(1,203)(525)(2,165)

Proceeds from sales of investment securities
Loan advances

24
(223)

4(167)

Collection of loans receivable
Purchase of shares of subsidiaries resulting in change in scope

127

147

(2,263)–(542)

347(19,847)(18,673)

Cash flows from investing activities

of consolidation
Other, net
Net cash provided by (used in) investing activities

9

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
14,4907,909

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

1,424(13,564)

1,115(16,046)

Purchase of treasury shares
Dividends paid

(0)(2,545)(0)(2,735)

Dividends paid to non-controlling interests
Redemption of convertible bonds(403)(5,436)(610)–

Other, net

(581)

(509)

Net cash provided by (used in) financing activities(6,616)(10,878)

Effect of exchange rate change on cash and cash equivalents(470)(2,287)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase or decrease in cash and cash equivalents due to the fiscal
year-end change of consolidated subsidiaries
Cash and cash equivalents at end of period10(220)(5,479)25,732

27,069

1,558

1,656

27,06923,246