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, 2016
(Based on Japanese GAAP)
February 14, 2017
Company name:Musashi Seimitsu Industry Co.,Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

7220
URLPresident & CEO

http://www.musashi.co.jp

Inquiries:

Director Senior Executive Officer Head ofFinance & Accounting

Hiroshi Otsuka

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Isao Kamiya

TEL0532-25-8111

February 14, 2017
–NoYes(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, 2016 (from April 1, 2016 to December 31, 2016)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2016
125,240
2.1
6,547 (32.7)
5,802 (30.9)
3,780 (39.2)
Nine months ended December 31, 2015
122,674
5.2
9,724
20.6
8,395
1.6
6,221
16.0
Earnings per share

Diluted earnings per shareYen
121.18199.43Nine months ended December 31, 2016
Nine months ended December 31, 2015

Yen
110.70182.29(2) Consolidated financial position
Total assets

Net assets

Millions of yen
216,773
155,152

As of December 31, 2016
As of March 31, 2016

Equity ratio

Millions of yen
67,404
77,947

Net assets per share%
28.3
43.1

Yen
1,963.47
2,142.11

2. Cash dividends
Annual dividends per share

Year ended March 31, 2016
Year ending March 31, 2017

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
25.00
26.00

Yen––

Yen
25.00

Yen
50.00

26.00

52.00

Year ending March 31, 2017 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2017 (from April 1, 2016 to March 31, 2017)
Net sales
Full year

Millions of yen
175,000

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
6.5
11,000 (17.9)
10,000 (12.7)
6,300(7.5)
201.961

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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:

NoNo

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, 2016

31,200,000 shares As of March 31, 2016

31,200,000 shares

Number of treasury shares at the end of the period
As of December 31, 2016

5,752 shares As of March 31, 2016

5,539 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2016

31,194,424 shares Nine months ended December 31, 2015

231,194,524 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of December 31, 2016Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade

13,05916,851

16,062
17,599Merchandise and finished goods
Work in process

3,966
3,574

7,716
5,290

Raw materials and supplies
Deferred tax assets

14,171
1,294

17,331
1,252

Other
Allowance for doubtful accounts

5,948
(66)

10,894(39)

Total current assets

58,80076,10933,843(16,622)

39,454(16,994)

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

(806)

(813)

Buildings and structures, net

16,414

21,645

Machinery, equipment and vehicles

178,357

186,289

Accumulated depreciation
Accumulated impairment loss

(123,616)(1,008)(120,942)(1,019)53,73264,327

7,900(6,243)9,910(6,355)

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Accumulated impairment loss

(44)

(43)

Tools, furniture and fixtures, net

1,611

3,511

Land

5,045

6,169

Construction in progress

4,761

6,997

Total property, plant and equipment

81,565

102,650

1,226
542

1,614
207

–118,339
16,539Total intangible assets

1,780

26,702

Investments and other assets
Investment securities

5,443

5,814

Investments in capital
Long-term loans receivable

2,062
47

7347

Deferred tax assets
Other

3,014
2,490

2,685
2,740

Allowance for doubtful accounts

(51)

(50)

Total investments and other assets

13,006

11,31096,352

140,664

155,152

216,773

Intangible assets
Software
Software in progress
Goodwill
Other

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2016

As of December 31, 2016

Liabilities
Current liabilitiesNotes and accounts payable - trade

11,122

15,740

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

17,1883,368

36,3889,275

Accounts payable - otherAccrued expenses

3,206
4,811

3,160
5,836

Income taxes payable
Provision for bonuses

745
1,729

849
1,698

51
2254
30

Provision for directors' bonuses
Provision for product compensations
Other

1,783

5,427

Total current liabilities

44,02978,462

Bonds payable
Long-term loans payable

10,026
18,472

10,01947,749Deferred tax liabilities
Net defined benefit liability

1,620
2,284

6,314
4,931

Non-current liabilities

Other770

1,891

33,17570,906

77,204

149,368

Capital stock
Capital surplus

2,973
2,714

2,973
1,734

Retained earnings
Treasury shares

66,103(7)

68,578(7)

Total shareholders' equity

71,78373,278

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

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

2,160

2,457

Foreign currency translation adjustment
Remeasurements of defined benefit plans(6,485)(637)(13,934)(552)

Total accumulated other comprehensive income(4,961)(12,029)

Non-controlling interests

11,125

6,155

Total net assets

77,94767,404

155,152

216,773

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, 2015

December 31, 2016

Net sales
Cost of sales

122,674
102,195

125,240
106,181

Gross profit

20,47819,059Selling, general and administrative expenses

10,754

12,511

Operating income

9,724

6,547

Interest income
Dividend income

45
106

211
121

Subsidy income
Other–
156

284
278

Total non-operating income

307

896

729

800

Loss on retirement of non-current assets
Foreign exchange losses

32
673

8650

Other

200

182

1,636

1,642

8,395

5,802

115

51115

51

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets2919

Loss on retirement of non-current assets
Impairment loss

9–135
6

Total extraordinary losses

39161

Profit before income taxes

8,471

5,691

Income taxes

1,343

1,539

Profit

7,127

4,151

906

371

6,221

3,780

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

Nine months ended

Nine months ended

December 31, 2015

December 31, 2016

7,127

4,151

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

40(9,857)297(8,652)Remeasurements of defined benefit plans, net of tax

125

88

(9,690)(8,266)Comprehensive income

Total other comprehensive income(2,562)(4,114)Comprehensive income attributable toComprehensive income attributable to owners of parent(1,688)(3,287)

(874)

(826)

Comprehensive income attributable to non-controllinginterests6