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, 2019
(Based on Japanese GAAP)
February 5, 2020
Company name:Howa Machinery, Ltd.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

6203
URL http://www.howa.co.jp/
President,Managing Director

Takahiro Tsukamoto

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

Hiromitsu Ishihara
February 14, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

052-408-1001(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)(1) Consolidated operating results (cumulative)

Nine months ended December 31, 2019
Nine months ended December 31, 2018

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%
14,112 (10.5)
518 (17.8)
572 (15.1)
386 (51.4)
15,761
16.8
630
–
673
–
793
–
Earnings per share

Diluted earnings per share

Yen
31.18
63.78

Nine months ended December 31, 2019
Nine months ended December 31, 2018

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

Net assets

Millions of yen
24,217
24,354Equity ratio

Millions of yen
15,393
15,279Net assets per share
%
63.5
62.7

Yen
1,242.59
1,232.96

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended March 31, 2019

Yen–

Yen
0.00

Yen–

Yen
20.00

Yen
20.00

Year ending March 31, 2020

–

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 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
20,000 (10.4)
480 (53.8)
500 (54.9)
360 (68.2)
29.07

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2019(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:No
Yes

Changes in accounting estimates:
Restatement of prior period financial statements:

Yes
No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 201912,548,134 shares As of March 31, 201912,548,134 shares

Number of treasury shares at the end of the period
As of December 31, 2019

163,686 shares As of March 31, 2019

163,445 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 201912,384,537 shares Nine months ended December 31, 20182

12,443,232 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of December 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,338
7,425

3,179
5,403

Electronically recorded monetary claims - operating
Merchandise and finished goods

1,057
149

1,454
277

Work in process
Raw materials and supplies

4,191
353

5,435
374

224
(15)

349
(0)

16,724

16,473

Buildings and structures, net
Other, net

2,311
1,476

2,203
1,568

Total property, plant and equipment

3,787

3,772

Intangible assets
Investments and other assets

100

52

Investment securities
Other

3,264
524

3,379
586

Allowance for doubtful accounts

(46)

(46)

Total investments and other assets

3,742

3,919

7,630

7,744

24,354

24,217

3,131–2,389
571

Short-term borrowings
Accounts payable - other813
27863
229

Accrued expenses
Income taxes payable

776
171

759
54

Accrued consumption taxes
Provision for bonuses

22342

179
176

Provision for loss on construction contracts
demolition expenses for non-current assets

26
17

1–

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

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

Other
Total current liabilities

3254

429

5,584

5,654

(Millions of yen)
As of March 31, 2019

As of December 31, 2019Non-current liabilities
Long-term borrowings
Deferred tax liabilities

879
396

912
421

87
1,727

87
1,038

Asset retirement obligations
Other88
312

89
620

Total non-current liabilities

3,490

3,168

9,075

8,823

Shareholders' equity
Share capital

9,019

9,019

Capital surplus
Retained earnings

0
5,207

0
5,346

Treasury shares

(151)

(152)

14,075

14,213

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

911(0)

963(2)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

103
179

103
109

1,194

1,175

95

15,27915,39324,354

24,217

Provision for environmental safety measures
Retirement benefit liability

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Total accumulated other comprehensive income
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)
Nine months ended

Nine months ended

December 31, 2018

December 31, 2019

Net sales
Cost of sales

15,761
12,813

14,112
11,293Gross profit

2,948

2,819

Selling, general and administrative expenses

2,317

2,300

630

518

Interest income
Dividend income

2115

0108

Miscellaneous income

44

36

Total non-operating income

163

144

Interest expenses
Maintenance cost for idle assets

318

417

Foreign exchange losses
Miscellaneous loss

33
64

30
38

Operating profit
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit

119

90673

572

–
250

20–

Extraordinary income
Gain on revision of retirement benefit plan
Reversal for environmental safety measures
Other

44254

25

Impairment loss
Loss on product safety measures

––

48
11

Farewell ceremony expenses
Other–
023
13

Total extraordinary losses

097

Profit before income taxes

927

499

Income taxes

135

118

Profit792

381

Loss attributable to non-controlling interests

(1)

(4)

Profit attributable to owners of parent

793

386

Total extraordinary income
Extraordinary losses

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2018

December 31, 2019
792

381

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

(460)
(0)

52
(1)

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

(4)
(28)

0(70)

Total other comprehensive income

(494)

(19)

297

362

299

366

(1)

(4)

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6