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, 2019
(Based on Japanese GAAP)
November 5, 2019
Company name:Howa Machinery, Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

6203
URL http://www.howa.co.jp/
President,Managing Director

Takahiro Tsukamoto

Inquiries:
Managing Director
Scheduled date to file Quarterly Securities Report:

Hiromitsu Ishihara
November 14, 2019

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

Yes

TEL

052-408-1001(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2019
Six months ended September 30, 2018

Millions of yen
9,761
10,108Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%(3.4)
388
26.3
385
14.8
274
(4.9)
9.9
307
–
335
–
288
–

Earnings per share

Diluted earnings per share

Yen
22.18
23.15

Six months ended September 30, 2019
Six months ended September 30, 2018

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2019
As of March 31, 2019

Net assets

Millions of yen
24,26924,354Equity ratio

Millions of yen
15,147
15,279Net assets per share%
62.4
62.7

Yen
1,222.67
1,232.96

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––Yen
0.00
0.00

Yen–

Yen
20.00

Yen
20.00

–

20.00

20.00

Year ending March 31, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Percentages indicate year-on-year changesProfit 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
20,000 (10.4)
480 (53.8)
500 (54.9)
360 (68.2)
29.07

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2019(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:No
Yes

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

Yes
No(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, 201912,548,134 shares As of March 31, 201912,548,134 shares

Number of treasury shares at the end of the period
As of September 30, 2019

163,631 shares As of March 31, 2019

163,445 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201912,384,573 shares Six months ended September 30, 2018

212,472,461 shares

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

As of September 30, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,338
7,425

3,008
5,656

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,057
149

2,455
314

Work in process
Raw materials and supplies

4,191
353

4,748
375

224
(15)

258
(0)

16,724

16,816

Buildings and structures, net
Other, net

2,311
1,476

2,247
1,465

Total property, plant and equipment

3,787

3,713

Intangible assets
Investments and other assets

100

87

Investment securities
Other

3,264
524

3,118
581

Allowance for doubtful accounts

(46)

(46)

Total investments and other assets

3,742

3,653

7,630

7,453

24,35424,2693,131–2,605574

Short-term borrowings
Accounts payable - other813
27

871
237

Accrued expenses
Income taxes payable

776
171

724
110

Accrued consumption taxes
Provision for bonuses

22342

161
342

Provision for loss on construction contracts
demolition expenses for non-current assets

26
17

11–

Other provisions
Other–
254

8
202

5,584

5,850

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating

Total current liabilities

3

(Millions of yen)
As of March 31, 2019

As of September 30, 2019Non-current liabilities
Long-term borrowings
Deferred tax liabilities

879
396

1,050
358

87
1,727

87
1,053

Asset retirement obligations
Other88
312

88
634

Total non-current liabilities

3,490

3,272

9,075

9,122

Shareholders' equity
Share capital

9,019

9,019

Capital surplus
Retained earnings

05,20705,234

Treasury shares

(151)

(152)

14,075

14,102

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

911(0)

809(0)Foreign currency translation adjustment
Remeasurements of defined benefit plans

103
179

102
128

1,194

1,039

94

15,27915,147

24,35424,269Provision for environmental safety measures
Retirement benefit liability

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
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, 2018

September 30, 2019

Net sales
Cost of sales

10,108
8,314

9,761
7,841

Gross profit

1,794

1,920

Selling, general and administrative expenses

1,486

1,532

307

388

Interest income
Dividend income

261

059

Miscellaneous income

23

17

Total non-operating income

8777

Interest expenses
Maintenance cost for idle assets

2122
12

Foreign exchange losses
Miscellaneous loss

1232

39
26

Operating profit
Non-operating income

Non-operating expenses

Total non-operating expenses

5980335385

Gain on revision of retirement benefit plan
Other–
3200

Total extraordinary income

321

Extraordinary losses
Loss on product safety measures–11

Farewell ceremony expenses
Other–
023
10

Total extraordinary losses

045

Profit before income taxes

338

360

Income taxes

5090

Profit287

269

Loss attributable to non-controlling interests

(0)

(4)

Profit attributable to owners of parent

288

274

Ordinary profit
Extraordinary income

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2018

September 30, 2019
287

269

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

62
(3)

(101)
(0)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(3)
(18)

(0)
(51)

Total other comprehensive income

36(154)

324

115

325

120(0)(4)

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

6