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 Three Months Ended June 30, 2013
(Based on Japanese GAAP)
August 8, 2013
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
August 9, 2013

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 three months ended June 30, 2013 (from April 1, 2013 to June 30, 2013)(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes
Net sales

Three months ended June 30, 2013
Three months ended June 30, 2012

Operating income

Millions of yen
4,667
5,548

Ordinary income

Net income% Millions of yen% Millions of yen% Millions of yen(15.9)
27 (86.2)
64 (68.9)
82
15.3
197 379.6
207 195.3
91

Net income per share

Diluted net income per share

Yen
6.56
7.34

Three months ended June 30, 2013
Three months ended June 30, 2012%(10.6)
66.8

Yen-(2) Consolidated financial position
Total assets

Net assets

Millions of yen
25,77926,729As of June 30, 2013
As of March 31, 2013

Equity ratio

Millions of yen
14,030
14,113

Net assets per share
%54.0
52.4

Yen
1,111.121,117.16

2. Cash dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen-

Yen
0.00

Yen-

Yen
2.00

Yen
2.00

0.00

-20.0020.00

Year ended March 31, 2013
Year ending March 31, 2014
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
Millions of yen
Six months ending
September 30, 2013
Full year

Percentages 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

10,400(12.4)

310(42.7)

310(38.3)

280(8.9)

22.34

21,600(9.5)

870(36.6)

870(36.3)

780(37.6)

62.25

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 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 June 30, 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 June 30, 201317,292 shares As of March 31, 201317,287 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 201312,530,844 shares Three months ended June 30, 20122

12,531,252 shares

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

As of June 30, 2013

AssetsCurrent assets
Cash and deposits

2,802

3,234

Notes and accounts receivable-trade
Securities

10,033200

7,761400

Merchandise and finished goods
Work in process

257
3,2072513,760

Raw materials and supplies
Deferred tax assets

258
41259
39

Other
Allowance for doubtful accounts

485(12)

204(10)17,274

15,902

Buildings and structures, net
Other, net

2,457
1,756

2,416
2,067

Total property, plant and equipment

4,213

4,484

23

23

4,159
1,149

4,314
1,147

(92)

(92)

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

35,2165,369

9,454

9,876

26,72925,779(Millions of yen)
As of March 31, 2013

As of June 30, 2013

Liabilities
Current liabilities
Notes and accounts payable-trade

3,806

3,197

Short-term loans payable
Current portion of bonds

901
345

783
295

Accounts payable-otherAccrued expenses

156
861

260
1,219

Income taxes payable
Accrued consumption taxes

53
76

1211

Provision for bonuses
Provision for directors' bonuses

448
7200-Provision for loss on construction contracts
Provision for loss on removal of fixed assets

52

052

Other

201

1946,909

6,227

577
263

537
187

594
3,545

630
3,480

Provision for environmental safety measures
Asset retirement obligations

124
78

124
79

Other522

483

Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits

Total noncurrent liabilities

5,706

5,521

12,615

11,748

Capital stock
Retained earnings

9,019
3,884

9,019
3,716

Treasury stock

(17)

(17)

12,887

12,718Valuation difference on available-for-sale securities
Deferred gains or losses on hedges1,111
(0)

1,204
-

Total accumulated other comprehensive income

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

1,111

1,204

Minority interests

114107

Total net assets

14,113

14,03026,72925,779Total 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)Three months ended
June 30, 2012

Three months ended
June 30, 2013

Net sales

5,548

4,667Cost of sales

4,622

3,861

Gross profit

926806

Selling, general and administrative expenses

728

778

Operating income

19727

Interest income

00Dividends income
Miscellaneous income

57
1553
19

Total non-operating income

73

72

Interest expenses
Maintenance cost for idle assets

1213611

Miscellaneous loss

37

17

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

6335

207

6402

Other00

Total extraordinary income

03

Loss on product safety measures
Loss on valuation of investment securities

283-Impairment loss
Other6400

Total extraordinary losses

960

Extraordinary loss

Income before income taxes and minority interests

11167

Income taxes

20(14)

Income before minority interests

91

81

Minority interests in loss

(0)

(0)

Net income

91

82

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2012
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities

Three months ended
June 30, 201391

81(210)92

Deferred gains or losses on hedges

00

Total other comprehensive income

(210)

92

Comprehensive income

(119)

174

Comprehensive income attributable toComprehensive income attributable to owners of the parent

(118)

174

Comprehensive income attributable to minority interests(0)(0)

6