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, 2013
(Based on Japanese GAAP)
November 11, 2013
Company nameHowa 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
November 14, 2013

Scheduled date to commence dividend payments
Preparation of supplementary material on quarterly earnings

yes

Holding of quarterly earnings performance review

yesTEL052-408-1001(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, 2013 (from April 1, 2013 to September 30, 2013)(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes
Net sales

Six months ended September 30, 2013
Six months ended September 30, 2012

Millions of yen
10,955
11,865

Operating income% Millions of yen
(7.7)
451
11.0
540

Net income per share% Millions of yen(16.5)
456
24.0
502

Net income% Millions of yen
(9.3)
488
26.1
307

%
58.7
(2.8)

Diluted net income per share

Yen
38.95
24.54

Six months ended September 30, 2013
Six months ended September 30, 2012

Ordinary income

Yen-(2) Consolidated financial position
Total assets

Net assets

Millions of yen
25,554
26,729As of September 30, 2013
As of March 31, 2013

Equity ratio

Millions of yen
14,582
14,113

Net assets per share%
56.6
52.4

Yen
1,155.22
1,117.16

2. Cash dividends
Annual dividends

Year ended March 31, 2013
Year ending March 31, 2014

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen-

Yen
0.00
0.00

Yen-

Yen
2.00

Yen
2.00

-

20.00

20.00

Year ending March 31, 2014 (Forecast)Total

3. Forecast for the year ending March 31, 2014 (from April 1, 2013 to March 31, 2014)
Net sales
Full year

Millions of yen
21,600Percentages indicate year-on-year changes
Net incomeOperating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%Yen(9.5)
870 (36.6)
870 (36.3)
780 (37.6)
62.25

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2013(changes in specified subsidiaries resulting in the change in scope of consolidation):no(2) Application of special accounting for preparing quarterly consolidated financial statements:

yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:nono

Changes in accounting estimates:
Restatement of prior period financial statements after error corrections:nono(4) Number of issued shares
Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2013

12,548,134 shares As of March 31, 2013

12,548,134 shares

Number of shares of treasury stock at the end of the period
As of September 30, 2013

17,357 shares As of March 31, 201317,287 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 201312,530,812 shares Six months ended September 30, 20122

12,531,173 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2013

As of September 30, 2013

AssetsCurrent assets
Cash and deposits

2,802

3,221

Notes and accounts receivable-trade
Securities

10,033200

7,787693

Merchandise and finished goods
Work in process

257
3,2073363,081

Raw materials and supplies
Deferred tax assets

258
41

249
31

Other
Allowance for doubtful accounts

485
(12)

180(13)

17,274

15,568

Buildings and structures, net
Other, net

2,457
1,756

2,393
1,969

Total property, plant and equipment

4,213

4,363

23

32

4,159
1,149

4,549
1,135

(92)

(93)

Total current assets
Noncurrent assets
Property, plant and equipment

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

35,216

5,591

9,454

9,986

26,72925,554

(Millions of yen)
As of March 31, 2013

As of September 30, 2013

Liabilities
Current liabilities
Notes and accounts payable-trade

3,806

3,113

Short-term loans payable
Current portion of bonds

901
345

667
295

Accounts payable-otherAccrued expenses

156
861

124
752

Income taxes payable
Accrued consumption taxes

53
76

59
21

Provision for bonuses
Provision for directors' bonuses

448
7441
-Provision for loss on construction contracts
Provision for loss on removal of fixed assets

52

0
44

Other201160

6,909

5,681

577
263

430
67

594
3,545

701
3,438

Provision for environmental safety measures
Asset retirement obligations

124
78

124
79

Other

522

449

Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits

Total noncurrent liabilities

5,706

5,290

12,615

10,971

Capital stock
Retained earnings

9,019
3,884

9,019
4,122

Treasury stock

(17)

(17)

12,887

13,124

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges1,111(0)

1,351
-

Total accumulated other comprehensive income

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income

1,111

1,351

Minority interests

114106

Total net assets

14,113

14,582

26,72925,554

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
September 30, 2012
Net sales

Six months ended
September 30, 2013

11,86510,955

Cost of sales

9,805

8,907

Gross profit

2,060

2,047

Selling, general and administrative expenses

1,519

1,596

540

451

Interest income

00Dividends income
Miscellaneous income

57
2553
35

Total non-operating income

8489

Interest expenses
Maintenance cost for idle assets

23
26

1124

Miscellaneous loss

72

49

Total non-operating expenses

122

84

502

456

Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

287

Other00

Total extraordinary income

288

Loss on sales of noncurrent assets
Loss on disposal of noncurrent assets

0122

Compensation for damage
Impairment loss

6419-

Loss on valuation of investment securities
Loss on product safety measures

40
28-

Total extraordinary losses

133

34

Income before income taxes and minority interests

371

509

Income taxes

55

22

Income before minority interests

316

487

Minority interests in income (loss)

9(0)

307

488

Extraordinary loss

Net income

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
September 30, 2012

Six months endedSeptember 30, 2013

Income before minority interests

316487

Other comprehensive income
Valuation difference on available-for-sale securities

(295)

239

Deferred gains or losses on hedges

00

Total other comprehensive income

(295)

239

Comprehensive income

21726

Comprehensive income attributable toComprehensive income attributable to owners of the parent

11727

Comprehensive income attributable to minority interests9(0)6