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, 2024
(Based on Japanese GAAP)May 15, 2024
Company name:Howa Machinery, Ltd.

Stock exchange listing: Tokyo, Nagoya
Stock code:
6203
URL
Representative:
Inquiries:

https://www.howa.co.jp/

President,Managing Director
Managing Director

Takahiro Tsukamoto
Hiromitsu Ishihara

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 26, 2024
June 26, 2024

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

June 27, 2024
Yes

Holding of financial results meeting:

Yes

TEL

052-408-1001(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
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%
Year ended March 31, 2024
19,7860.2
388(14.1)
466 (25.2)(873)–Year ended March 31, 2023
19,7380.2452(54.2)
622 (52.1)
524(50.6)

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–(5.0)
1.6
2.0
–
3.1
2.3
2.3

Diluted earnings pershareYen(72.49)
43.56

Year ended March 31, 2024
Year ended March 31, 2023
(2) Consolidated financial position

Total assets
As of March 31, 2024
As of March 31, 2023

Net assets

Equity ratio

Millions of yen
30,28927,623

Millions of yen
17,334
17,354

Cash flows fromoperating activities
Millions of yen(1,071)(506)

Cash flows frominvesting activities
Millions of yen
(871)
(608)

Net assets per share%
57.2
62.8

Yen
1,438.82
1,440.76(3) Consolidated cash flows

Year ended March 31, 2024
Year ended March 31, 2023

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
2,483
3,826
22
3,265

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

20.00
20.00

20.00
20.00

240
240

45.9(27.6)

1.4
1.4

–

0.00

–

20.00

20.00

135.5

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Net sales
Full year

Millions of yen
24,100Percentages 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
21.8
760
95.6
790
69.5
680
–
56.41

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2024
(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:

No
No

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, 2024

12,548,134 shares As of March 31, 2023

12,548,134 shares

Number of treasury shares at the end of the period
As of March 31, 2024

500,678 shares As of March 31, 2023

502,796 shares

12,054,070 shares Year ended March 31, 2023

12,042,507 shares

Average number of shares during the period
Year ended March 31, 20242

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

3,330
560

3,897
1,463

Electronically recorded monetary claims - operating
Accounts receivable - trade

1,205
4,842

2,340
3,490

Contract assets
Investments in leases

1,458
1,099

1,346
1,068

Merchandise and finished goods
Work in process

1,116
3,550

1,242
4,196

Raw materials and supplies
Other

1,296
315

1,420
567

(0)

(0)

18,776

21,033

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

11,786

11,838(9,881)(10,645)

Buildings and structures, net

1,904

1,192

Machinery, equipment and vehicles

12,85012,990

Accumulated depreciation(11,901)(12,329)

948

661

Machinery, equipment and vehicles, net
Tools, furniture and fixtures

1,815

1,869

Accumulated depreciation(1,633)(1,753)

182

116

Land

Tools, furniture and fixtures, net

502

502

Leased assets
Accumulated depreciation

178
(33)

178
(45)

Leased assets, net

145

132

Construction in progress

221

588

3,905

3,193

Software and other
Software in progress

521
–405
1

Total property, plant and equipment
Intangible assets

Total intangible assets

521

406Investments and other assets
Investment securities

3,792

5,035

Retirement benefit asset
Other

176
485

245
407

Allowance for doubtful accounts

(35)

(32)

Total investments and other assets

4,419

5,655

Total non-current assets
Total assets

3

8,846

9,255

27,62330,289(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Accounts payable - trade

2,538

2,429

652
1,452

796
2,032

Lease liabilities
Accounts payable - other14
147

14
101

Accrued expenses
Income taxes payable

649
63

601
62Accrued consumption taxes
Contract liabilities

24426

48
218

Provision for bonuses
Provision for loss on construction contracts

338
109

304
0

Provision for loss on orders received
Provision for product warranties

297

–73

Electronically recorded obligations - operating
Short-term borrowings

Other

54

51

6,571

6,733

1,908
144

4,066
130

Deferred tax liabilities
Retirement benefit liability

383
858

799
819

Asset retirement obligations
Other

93
309

93
312

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities

Total non-current liabilities

3,697

6,222

10,26912,955

Shareholders' equity
Share capital

9,019

9,019

Capital surplus
Retained earnings

07,34606,231

Total liabilities
Net assets

Treasury shares
Total shareholders' equity

(417)

(416)

15,94914,835

1,289
(0)

2,341
0

105
10113
42

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4

1,405

2,498

17,354

17,334

27,62330,289

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Net sales

19,73819,786

Cost of sales

16,111

16,298Gross profit

3,627

3,488

Selling, general and administrative expenses

3,174

3,100

452

388

Operating profit
Non-operating income
Interest income

22

Dividend income
Subsidy income

134
48147
3

Foreign exchange gains
Miscellaneous income

74840
43

Total non-operating income

242

238

Non-operating expenses
Interest expenses

1117

Insurance expenses
Maintenance cost for idle assets

1820

1620

Commission for syndicated loans
Miscellaneous losses

–2166
40

Total non-operating expenses

72

160

622

466

Gain on sale of non-current assets

67

Total extraordinary income

67–
11,3420

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses
Loss on sale and retirement of non-current assets
Total extraordinary losses

11,342

Profit (loss) before income taxes

627(868)

Income taxes - current
Income taxes - deferred75
2664(59)

Total income taxes

102

5Profit (loss)

524(873)

Profit (loss) attributable to owners of parent524(873)5

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024
524(873)

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

209(0)

1,052
1Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax3(42)731

Total other comprehensive income

169

1,093

694

219694219

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

9,019

Retained earnings–

Total shareholders'equity

Treasury shares

7,062

(427)

15,654

Changes during period
Dividends of surplus

(240)

(240)

Profit attributable toowners of parent

524

524

Restricted stock
payment

0

Purchase of treasury
shares910(0)(0)Net changes in items
other than shareholders'equity–Total changes during
periodBalance at end of period–

0283

9294

9,019

07,346(417)

15,949

Accumulated other comprehensive income

Balance at beginning ofperiod

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

1,080

(0)

Total
accumulatedof defined benefit
otherplanscomprehensive
incomeForeigncurrencytranslation
adjustment

Remeasurements

10252

Total net assets

1,235

16,890

Dividends of surplus–(240)

Profit attributable toowners of parent–

524

Restricted stock
payment–

10

Purchase of treasury
shares–(0)Changes during period

Net changes in items
other than shareholders'equity

209

(0)

3(42)

169

169

Total changes during
period

209

(0)

3(42)

169

464

Balance at end of period

1,289

(0)

105

10

1,405

17,354

7

Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

9,019

Retained earnings
0

Total shareholders'equityTreasury shares

7,346(417)

15,949Changes during period
Dividends of surplus

(240)

(240)

Loss attributable toowners of parent(873)(873)

Restricted stock
payment(0)

Purchase of treasury
shares1010(9)(9)Net changes in items
other than shareholders'equity–Total changes during
periodBalance at end of period–(0)(1,114)1(1,113)9,019

06,231(416)

14,835

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges1,289(0)Totalaccumulatedof defined benefit
otherplanscomprehensive
incomeForeigncurrencytranslation
adjustment

Remeasurements

105

10

Total net assets

1,405

17,354

Dividends of surplus

–

(240)

Loss attributable toowners of parent–(873)

Restricted stock
payment–

10

Purchase of treasury
shares–(9)

Changes during period

Net changes in items
other than shareholders'equity

1,052

1731

1,093

1,093

Total changes during
period

1,052

1731

1,093

(20)

Balance at end of period

2,341

0113

422,498

17,3348Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Subsidy income
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset/liability
Increase (decrease) in accrued payments due to change inretirement benefit plan
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for product warranties
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of property, plant andequipment
Loss (gain) on sale of short-term and long-term investment
securities
Decrease (increase) in accounts receivable - trade, andcontract assets
Decrease (increase) in investments in leases
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Increase (decrease) in accrued consumption taxes
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other, net

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024
627
506
–
(48)
(2)
17(140)

(868)
596
1,342
(3)
(2)
(33)
(49)

(117)

–

82

(109)

(15)
19(137)
11
5(2)
(24)
(150)
17
(3)

(4)

(7)

–

1(329)(560)

30(266)23(765)
(5)
3(49)
13

30(880)(3)(209)
23(249)(31)
50

Subtotal(542)(1,129)Interest and dividends received
Subsidies received
Interest paid
Income taxes paid

137
53(11)
(143)

149
3(17)
(77)

Net cash provided by (used in) operating activities(506)(1,071)(57)
51(561)56(74)
(7)
0(12)
(4)

(99)
94
(1,134)
8(29)
(7)
275
–
22(608)(871)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale and redemption of investment securities
Loan advances
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, 2023

March 31, 2024
500

450

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

500(732)

3,200(912)

Net decrease (increase) in treasury shares
Dividends paid

10(240)1(241)

Repayments of lease liabilities

(14)

(14)

Net cash provided by (used in) financing activities

22

2,483

Effect of exchange rate change on cash and cash equivalents

(2)

20

Net increase (decrease) in cash and cash equivalents(1,095)561

Cash and cash equivalents at beginning of period

4,360

3,265

Cash and cash equivalents at end of period

3,265

3,826

10