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, 2013
(Based on Japanese GAAP)
February 10, 2014
Company nameHowa Machinery, Ltd.
Stock exchange listing Tokyo, Nagoya
Stock Code
Representative

6203
President

URL

http://www.howa.co.jp/Kazuhide banno

Inquiries
Managing Director
Scheduled date to file Quarterly Securities Report

Hiromitsu Ishihara
February 14, 2014

Scheduled date to commence dividend payments
Preparation of supplementary material on quarterly earnings

noHolding of quarterly earnings performance review

noTEL

052-408-1001-(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2013 (from April 1, 2013 to December 31, 2013)(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes
Net sales

Nine months ended December 31, 2013
Nine months ended December 31, 2012

Millions of yen
16,702
17,980Operating income% Millions of yen
(7.1)
715
6.7917

Net income per share% Millions of yen(22.1)
746
19.3
907

Net income% Millions of yen(17.8)
735
22.2
633

%
16.1(3.6)

Diluted net income per share

Yen
58.73
50.58

Nine months ended December 31, 2013
Nine months ended December 31, 2012

Ordinary income

Yen-(2) Consolidated financial position
Total assets

Net assets

Millions of yen
26,21826,729As of December 31, 2013
As of March 31, 2013

Equity ratio

Millions of yen
15,087
14,113

Net assets per share%
57.1
52.4

Yen
1,195.32
1,117.16

2. Cash dividends
Annual dividends

Year ended March 31, 2013
Year ending March 31, 2014

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen-

Yen
0.00
0.00

Yen-

Yen
2.00

Yen
2.00

20.00

20.00

Year ending March 31, 2014 (Forecast)Total

3. Forecast for the year ending March 31, 2014 (from April 1, 2013 to March 31, 2014)
Net sales
Full year

Millions of yen
21,600Percentages indicate year-on-year changes
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%Yen(9.5)
870 (36.6)
870 (36.3)
780 (37.6)
62.25

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2013(changes in specified subsidiaries resulting in the change in scope of consolidation):no(2) Application of special accounting for preparing quarterly consolidated financial statements:

yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
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 after error corrections:nono(4) Number of issued shares
Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2013

12,548,134 shares As of March 31, 2013

12,548,134 shares

Number of shares of treasury stock at the end of the period
As of December 31, 2013

17,575 shares As of March 31, 201317,287 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 201312,530,703 shares Nine months ended December 31, 2012

212,531,135 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2013

As of December 31, 2013

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets

2,802

2,403

10,033
-

8,550
148

200
257

500
400

3,207
258

3,176
271

41
485

33197(12)(13)

17,274

15,668

Noncurrent assets
Property, plant and equipment
Buildings and structures, net

2,457

2,565

Other, net

1,756

1,954

Total property, plant and equipment

4,213

4,519

2337

4,159

4,953

1,149(92)

1,133(93)Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

35,216

5,992

9,454

10,55026,72926,218(Millions of yen)
As of March 31, 2013

As of December 31, 2013

Liabilities
Current liabilities
Notes and accounts payable-trade

3,806

3,314

Short-term loans payable
Current portion of bonds

901
345

444
295

Accounts payable-otherAccrued expenses

156
861

219
802

Income taxes payable
Accrued consumption taxes

53
76

52
12

Provision for bonuses
Provision for directors' bonuses

448
7215
-

Provision for loss on construction contracts
Provision for loss on removal of fixed assets

522-

Deferred tax liabilities
Other

201

19242

Total current liabilities

6,909

5,620

Bonds payable

577

390

Long-term loans payable
Deferred tax liabilities

263
594

245
821

3,545
124

3,377
124

Asset retirement obligations
Other

78
522

80
472

Total noncurrent liabilities

5,706

5,509

12,615

11,130Shareholders' equity
Capital stock

9,019

9,019

Retained earnings
Treasury stock

3,884
(17)

4,370
(17)

Total shareholders' equity

12,887

13,372

1,111

1,605

Noncurrent liabilities

Provision for retirement benefits
Provision for environmental safety measures

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total accumulated other comprehensive income

(0)

-

1,111

1,605

Minority interests

114

109

Total net assets

14,11315,087

26,72926,218

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
December 31, 2012

Nine months endedDecember 31, 2013

Net sales

17,98016,702

Cost of sales

14,735

13,564Gross profit

3,244

3,137

Selling, general and administrative expenses

2,327

2,422

917

715

Interest income

10

Dividends income
Miscellaneous income

99
44

97
55

Total non-operating income

144

153

Interest expenses
Maintenance cost for idle assets

3237

1437

Miscellaneous loss

84

70

Total non-operating expenses

154

121

907

746

Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

287

Gain on disposal of noncurrent assets
Other0-00

Total extraordinary income

288

Loss on product safety measures

93-

Loss on valuation of investment securities
Loss on sales of noncurrent assets

3013

Loss on disposal of noncurrent assets
Compensation for damage

2-

15
19

Extraordinary loss

Impairment loss

64-

Total extraordinary losses

163

48

Income before income taxes and minority interests

747

787

Income taxes

102

48

Income before minority interests

644

738

Minority interests in income

102

Net income

633

735

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2012

Nine months ended
December 31, 2013

Income before minority interests

644

738

Other comprehensive income
Valuation difference on available-for-sale securities

113493

Deferred gains or losses on hedges(5)0Total other comprehensive income

108

494

Comprehensive income

752

1,232

Comprehensive income attributable toComprehensive income attributable to owners of the parent

741

1,230

Comprehensive income attributable to minority interests

1026