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, 2021
(Based on Japanese GAAP)
November 4, 2021
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 15, 2021

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(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2021
Six months ended September 30, 2020

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
%
8,592
3.9
475 606.6
625 179.7
522 171.3
8,266 (15.3)
67 (82.7)
223 (42.0)
192 (29.9)
Earnings per share

Diluted earnings per share

Yen
42.11
15.54

Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2021
As of March 31, 2021

Net assets

Millions of yen
26,91026,461Equity ratio

Millions of yen
16,493
16,114

Net assets per share
%
61.3
60.9

Yen
1,329.10
1,299.91

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

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, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
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
19,800
5.5
750
35.2
900
(2.1)
750 (22.6)
60.47

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(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
Yes

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, 2021

12,548,134 shares As of March 31, 202112,548,134 shares

Number of treasury shares at the end of the period
As of September 30, 2021

138,372 shares As of March 31, 2021

151,179 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

12,403,368 shares Six months ended September 30, 2020

212,390,656 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,462
5,536

4,849
–

Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating

–
3,218

4,820
1,320

Investments in leases
Merchandise and finished goods

1,159
246

1,144
493

Work in process
Raw materials and supplies

4,203
427

5,383
440

341
(0)

330
(0)

18,59518,781

Buildings and structures, net
Other, net

2,123
1,661

2,045
1,717

Total property, plant and equipment

3,784

3,763

Intangible assets
Investments and other assets

310

461

Investment securities
Retirement benefit asset

3,185114

3,300
140

Other
Allowance for doubtful accounts

511
(40)

503
(40)

Total investments and other assets

3,770

3,903

7,865

8,128

26,461

26,910

2,322

2,549

381
1,799

542
892

Accounts payable - otherAccrued expenses

293
838

194
763

Income taxes payable
Accrued consumption taxes

134
20

155
21

Provision for bonuses
Provision for loss on construction contracts

315
13

319
22

Other

114

692

6,233

6,154

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

Total non-current assetsTotal assets
Liabilities
Current liabilities
Accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings

Total current liabilities

3

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Non-current liabilities
Long-term borrowings
Deferred tax liabilities

2,354
157

2,547
173

Retirement benefit liability
Asset retirement obligations

1,065
91

972
91

444

475

Other
Total non-current liabilities

4,112

4,261

10,346

10,416

Share capital
Retained earnings

9,019
6,271

9,019
6,522

Treasury shares

(140)

(128)

15,15015,413

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

866
(3)

939
(1)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

101
(1)

98
43

Total accumulated other comprehensive income

964

1,080

16,114

16,493

26,461

26,910Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

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)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Net sales
Cost of sales

8,266
6,715

8,592
6,655

Gross profit

1,551

1,937

Selling, general and administrative expenses

1,484

1,461

67

475

Interest income
Dividend income

052054

Subsidy income
Foreign exchange gains

147–9232

Operating profit
Non-operating income

Miscellaneous income

1520

Total non-operating income

215

200

Interest expenses
Maintenance cost for idle assets

49612

Foreign exchange losses
Insurance expenses

219–
10

Miscellaneous losses

1420

Total non-operating expenses

5949

Ordinary profit

223

625

Extraordinary income
Gain on sale of investment securities

72–

Gain on sale of non-current assets
Subsidies for employment adjustment

1045

2–

Other

00128

2

Loss related to COVID-19
Other

110
4–
1

Total extraordinary losses

115

1236

626

Income taxes

44104

Profit192

522

Non-operating expenses

Total extraordinary income
Extraordinary losses

Profit before income taxes

Loss attributable to non-controlling interests(0)–

Profit attributable to owners of parent

192

522

5

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021
192

522

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

84
(1)

72
1

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

0(22)

(3)
44

Total other comprehensive income

61

115

254

637

254

637

(0)

–

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests6