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, 2015
(Based on Japanese GAAP)
February 5, 2016
Company name:Howa 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
February 12, 2016

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, 2015 (from April 1, 2015 to December 31, 2015)(1) Consolidated operating results (cumulative)

Nine months ended December 31, 2015
Nine months ended December 31, 2014

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
15,502 (12.6)(80)–18 (95.8)(13)–
17,7366.2
282 (60.5)
433 (42.0)
418 (43.2)
Earnings per share

Diluted earnings per share

Yen(1.09)
33.37

Nine months ended December 31, 2015
Nine months ended December 31, 2014

Yen––(2) Consolidated financial position
Total assets
As of December 31, 2015
As of March 31, 2015

Net assets

Millions of yen
25,97026,560

Equity ratio

Millions of yen
16,596
16,700Net assets per share
%
63.9
62.8

Yen
1,324.90
1,333.13

2. Cash dividends
Annual dividends per share

Year ended March 31, 2015
Year ending March 31, 2016

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, 2016 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2016 (from April 1, 2015 to March 31, 2016)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
22,500
(4.8)
290
9.6
360 (13.1)
300 (47.5)
23.97

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2015(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 December 31, 2015

12,548,134 shares As of March 31, 2015

12,548,134 shares

Number of treasury shares at the end of the period
As of December 31, 2015

30,716 shares As of March 31, 2015

30,402 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2015

12,517,568 shares Nine months ended December 31, 20142

12,530,106 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2015

As of December 31, 2015

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,589
7,172

2,349
6,142

958
700

709
270

2523,116

310
3,811

Raw materials and supplies
Deferred tax assets

266
166

284
165

Other
Allowance for doubtful accounts

166
(12)

263
(1)

15,377

14,305

Buildings and structures, net
Other, net

2,705
2,298

2,603
2,260

Total property, plant and equipment

Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process

Total current assets
Non-current assets
Property, plant and equipment

5,003

4,863

Intangible assets
Investments and other assets

114

136

Investment securities
Other

5,109
1,036

5,516
1,224

Allowance for doubtful accounts

(80)

(75)

Total investments and other assets

6,065

6,665

11,183

11,66426,56025,970

3,158
435

3,269
317

Current portion of bonds
Accounts payable - other170
249

100
83

Accrued expenses
Income taxes payable

960
53

790
21

Accrued consumption taxes
Provision for bonuses

49
421

15210

Provision for loss on construction contracts
Provision for environmental safety measures

58
124

48
–

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable

OtherTotal current liabilities

3149

327

5,831

5,185

(Millions of yen)
As of March 31, 2015

As of December 31, 2015

Non-current liabilities
Bonds payable
Long-term loans payable

160
239

90621

Deferred tax liabilities
Provision for environmental safety measures

811
4908
6

2,184
82

1,978
83

547

499

4,028

4,187

9,859

9,373

Capital stock
Retained earnings

9,019
5,725

9,019
5,461

Treasury shares

(27)

(27)

14,71814,453

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

1,7252441,930
199

Total accumulated other comprehensive income

1,969

2,130

13

12

16,70016,596

26,56025,970Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
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, 2014

December 31, 2015

Net sales
Cost of sales

17,73615,141

15,502
13,243Gross profit

2,595

2,259

Selling, general and administrative expenses

2,312

2,339

282(80)Interest income
Dividend income

0111

3123

Subsidy income
Miscellaneous income

47
98

146

Total non-operating income

257

175

64

Insurance expenses
Maintenance cost for idle assets

2225

18
19

Miscellaneous loss

52

33

Total non-operating expenses

Operating income (loss)
Non-operating income

Non-operating expenses
Interest expenses

10676Ordinary income

433

18

Extraordinary income
Gain on sales of non-current assets

64

11–
–

1121

Insurance income
Gain on liquidation of subsidiaries and associates
Other

00

Total extraordinary income

65

43

Loss on disposal of non-current assets
Impairment loss

14–

127

Compensation for damage
Provision for environmental safety measures–
414–

Extraordinary losses

Other0–Total extraordinary losses

1843

Income before income taxes and minority interests

480

18

Income taxes

69

33

Profit (loss)

410

(14)

Loss attributable to non-controlling interests

(7)

(1)

Profit (loss) attributable to owners of parent

418

(13)

5

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

Profit (loss)
Other comprehensive income

Nine months ended

Nine months ended

December 31, 2014

December 31, 2015
410

(14)

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

329
(0)

205
–

Remeasurements of defined benefit plans, net of tax

29(45)

Total other comprehensive income

358

160

Comprehensive income

769

146

Comprehensive income attributable toComprehensive income attributable to owners of parent776

147

(7)

(1)

Comprehensive income attributable to non-controllinginterests

6