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, 2022
(Based on Japanese GAAP)
November 14, 2022
Company name:Howa Machinery, Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

6203
URL https://www.howa.co.jp/
President,Managing Director
Takahiro Tsukamoto

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

Hiromitsu Ishihara
November 14, 2022

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(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2022
Six months ended September 30, 2021

Millions of yen
8,995
8,592

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
4.7
247 (47.9)432 (31.0)
384 (26.5)
3.9
475 606.6
625 179.7
522 171.3

Earnings per share

Diluted earnings per share

Yen
31.91
42.11

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Millions of yen
26,67027,673Equity ratio

Millions of yen
16,966
16,890Net assets per share%
63.6
61.0

Yen
1,408.50
1,403.57

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

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, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit 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
19,300(2.0)
230 (76.7)
400 (69.3)
350 (67.1)
29.07

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(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:

Yes
No

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 September 30, 2022

12,548,134 shares As of March 31, 2022

12,548,134 shares

Number of treasury shares at the end of the period
As of September 30, 2022

502,707 shares As of March 31, 2022

514,353 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

12,039,604 shares Six months ended September 30, 2021

212,403,368 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of September 30, 2022Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

4,419
5,550

4,783
4,513

Electronically recorded monetary claims - operating
Investments in leases

2,140
1,129

1,237
1,114

Merchandise and finished goods
Work in process

264
4,933

1,300
3,833

Raw materials and supplies
Other495
313

1,200
274

Allowance for doubtful accounts

(0)

(0)

19,24818,258

1,975

1,928

Other, net

1,753

1,836

Total property, plant and equipment

3,728

3,764

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible assets

568

584

Investments and other assets
Investment securities

3,494

3,420

Retirement benefit asset
Other

174
496

199
480

Allowance for doubtful accounts

(37)

(37)

Total investments and other assets

4,127

4,063

Total non-current assets

8,425

8,412

27,673

26,670

2,624
505

2,197
418

Short-term borrowings
Accounts payable - other

882
212

962
69

Accrued expenses
Income taxes payable

758
148

740
94

30
1,182

24607

Provision for bonuses
Provision for loss on construction contracts

320
26314
126

Provision for loss on orders received
Other

1770

2
128

6,778

5,688

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

Accrued consumption taxes
Contract liabilities

Total current liabilities

3

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Non-current liabilities
Long-term borrowings
Deferred tax liabilities

2,211
278

2,285
259

Retirement benefit liability
Asset retirement obligations

954
92

917
92

Other468

461

Total non-current liabilities

4,0054,015

10,783

9,704

Share capital
Retained earnings

9,019
7,062

9,019
7,206

Capital surplus
Treasury shares–(427)

0(417)

15,65415,808

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,080

1,025

Deferred gains or losses on hedges
Foreign currency translation adjustment(0)102(41)122

Remeasurements of defined benefit plans

5250

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4

1,235

1,157

16,89016,966

27,673

26,670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, 2021

September 30, 2022

Net sales
Cost of sales

8,592
6,655

8,995
7,165

Gross profit

1,937

1,829

Selling, general and administrative expenses

1,461

1,582

475

247

Interest income
Dividend income

054

166

Subsidy income
Foreign exchange gains

9232

33
104

Operating profitNon-operating income

Miscellaneous income

2017Total non-operating income

200

222

Interest expenses
Maintenance cost for idle assets

612510Insurance expenses
Miscellaneous losses

1020

912Total non-operating expenses

49

38625

432

Gain on sale of non-current assets
Other

20

40

Total extraordinary income

24Extraordinary losses
Loss on sale of non-current assets

–1

Other

10

Total extraordinary losses

11

Profit before income taxes

626

435

Income taxes

104

51

Profit522

384

Profit attributable to owners of parent522384Non-operating expenses

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, 2021

September 30, 2022
522

384

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

72
1(54)
(41)

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

(3)
44

20
(2)

Total other comprehensive income

115(78)

637

306

637

306

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

6