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, 2019
(Based on Japanese GAAP)
August 5, 2019
Company name:Howa Machinery, Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
6203
URL http://www.howa.co.jp/
Representative:
President,Managing Director
Inquiries:
Managing Director
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Takahiro Tsukamoto
Hiromitsu Ishihara
August 9, 2019–NoNo

TEL

052-408-1001(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2019 (from April 1, 2019 to June 30, 2019)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profitowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended June 30, 2019
4,721
(7.1)
112 (28.5)
150 (27.3)
124 (31.8)
Three months ended June 30, 2018
5,083
19.1
157
–
207
–
183
–
Earnings per share

Diluted earnings per share

Yen
10.08
14.64

Three months ended June 30, 2019
Three months ended June 30, 2018

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

Net assets

Millions of yen
23,492
24,354Equity ratio

Millions of yen
14,966
15,279Net assets per share
%
63.7
62.7

Yen
1,207.74
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

Yen–

Yen
20.00

Yen
20.00

0.00

–

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 changes
Profit attributable toNet salesOperating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
10,5003.9
280(8.9)300 (10.7)
250 (13.4)
20.12
September 30, 2019
Full year
21,700(2.8)
800 (22.9)
860 (22.4)
750 (33.8)
60.35

1

4. Notes(1) Changes in significant subsidiaries during the three months ended June 30, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Yes
Changes in accounting estimates:
Yes
Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 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 June 30, 2019

163,530 shares As of March 31, 2019

163,445 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 201912,384,604 shares Three months ended June 30, 20182

12,516,273 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment

As of June 30, 2019

3,338
7,425
1,057
149
4,191
353
224
(15)

2,355
6,358
2,105
252
4,457
373
223
(8)

16,724

16,117

2,311
1,476

2,264
1,469

3,787

3,733

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

100973,264
524
(46)

3,034
554(46)

Total investments and other assets

3,742

3,543

7,630

7,374

24,35423,492

3,131–
813
27
776
171
22
342
26
17254

2,405
488
677
230
1,105
48
64
178
28
17302

5,584

5,546

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for loss on construction contracts
demolition expenses for non-current assets
Other
Total current liabilities

3(Millions of yen)
As of March 31, 2019Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for environmental safety measures
Retirement benefit liability
Asset retirement obligations
Other

As of June 30, 2019

879
396
87
1,727
88
312

765
330
87
1,066
88
641

3,490

2,979

Total liabilities

9,075

8,526

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

9,019
05,207(151)

9,019
05,084(151)

Total non-current liabilities

14,075

13,952

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 shareholders' equity

911
(0)
103
179

753
(0)
104
147

Total accumulated other comprehensive income

1,194

1,004

98

15,27914,96624,35423,492

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)Three months ended
June 30, 2018

Three months ended
June 30, 2019

Net sales
Cost of sales

5,083
4,170

4,721
3,853

Gross profit

913

867

Selling, general and administrative expenses

755

754

Operating profit

157

112

Non-operating income
Interest income
Dividend income
Miscellaneous income

161
14053
12Total non-operating income

7665

Non-operating expenses
Interest expenses
Maintenance cost for idle assets

1615217812

Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on revision of retirement benefit plan
Other
Total extraordinary income
Extraordinary losses
OtherTotal extraordinary losses
Profit before income taxes

2727

207

150–
22002200202209

169

Income taxes

26

45

Profit182

124

Loss attributable to non-controlling interests

(0)

(0)

Profit attributable to owners of parent

183

124

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
June 30, 2018
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Three months ended
June 30, 2019
182

124

(136)
(1)
(2)
(9)

(157)
(0)
0
(32)

(149)

(189)

32

(65)

33

(64)

(0)

(0)