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, 2014
(Based on Japanese GAAP)
February 9, 2015
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 13, 2015

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, 2014 (from April 1, 2014 to December 31, 2014)(1) Consolidated financial results (cumulative)

Percentages indicate year-on-year changes
Net sales

Nine months ended December 31, 2014
Nine months ended December 31, 2013

Millions of yen
17,736
16,702

Operating income% Millions of yen
6.2
282(7.1)
715

Net income per share% Millions of yen(60.5)
433(22.1)
746

Net income% Millions of yen(42.0)
418(17.8)
735%(43.2)
16.1

Diluted net income per share

Yen
33.37
58.73

Nine months ended December 31, 2014
Nine months ended December 31, 2013

Ordinary income

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
27,12026,234As of December 31, 2014
As of March 31, 2014

Equity ratioMillions of yen
16,43815,366

Net assets per share%
60.4
58.2

Yen
1,306.71
1,217.62

2. Cash dividends
Annual dividends per share

Year ended March 31, 2014
Year ending March 31, 2015

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, 2015 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2015 (from April 1, 2014 to March 31, 2015)
Net sales
Full year

Millions of yen
23,000Percentages indicate year-on-year changes
Net income
Operating income
Ordinary income
Net income
per share% Millions of yen% Millions of yen% Millions of yen%
Yen
(1.3)
350 (65.5)510 (51.0)
480 (59.4)
38.31

14. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2014(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, 2014

12,548,134 shares As of March 31, 2014

12,548,134 shares

Number of treasury shares at the end of the period
As of December 31, 2014

18,440 shares As of March 31, 2014

17,615 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2014

12,530,106 shares Nine months ended December 31, 20132

12,530,703 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2014

As of December 31, 2014

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
Deferred tax assets
Other
Allowance for doubtful accounts

2,914
9,254

2,496
8,416

494
240

710
345

2,671
271

3,145
273

180
192

180
321(12)(10)

16,20815,878

2,554

2,701

Other, net

1,920

2,200

Total property, plant and equipment

4,474

4,901

4189

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible assets
Investments and other assets
Investment securities

4,487

5,277

Other
Allowance for doubtful accounts

1,111(88)1,060(88)

Total investments and other assets

5,510

6,250

Total non-current assets

10,025

11,241

26,234

27,120

3,072

3,858

Short-term loans payable
Current portion of bonds

442
247

434
200

Accounts payable - otherAccrued expenses

205
909

342
845

Income taxes payable
Accrued consumption taxes

93
201

2636

Provision for bonuses
Provision for loss on construction contracts

440
10

215
8

Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade

Other
Total current liabilities

3112

251

5,734

6,218

(Millions of yen)
As of March 31, 2014

As of December 31, 2014

Non-current liabilities
Bonds payable
Long-term loans payable

330
225

190
260

Deferred tax liabilities
Provision for environmental safety measures

719
124

895
128

3,161
80

2,362
81493

544

Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities

5,133

4,462

10,868

10,681

Capital stock
Retained earnings

9,019
4,815

9,019
5,572

Treasury shares

(17)

(18)

13,817

14,574

1,311
0

1,640
–

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

128

158

1,439

1,798

Minority interests

10866

Total net assets

15,366

16,43826,234

27,120Total 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, 2013

December 31, 2014

Net sales
Cost of sales

16,702
13,564

17,73615,141Gross profit

3,137

2,595

Selling, general and administrative expenses

2,422

2,312

715

282

Interest income
Dividend income

097

0111

Subsidy income
Miscellaneous income

–55

47
98

Total non-operating income

153

257

146

Maintenance cost for idle assets
Insurance expenses

37
212522

Miscellaneous loss

48

52

Total non-operating expenses

Operating income
Non-operating income

Non-operating expenses
Interest expenses

121106

Ordinary income

746

433

Extraordinary income
Gain on sales of non-current assets8764

Gain on disposal of non-current assets
Other000–

Total extraordinary income

8865

Extraordinary losses
Loss on sales of non-current assets
Loss on disposal of non-current assets
Compensation for damage

13015
1914–

Provision for environmental safety measures–

4

Total extraordinary losses

48

18

Income before income taxes and minority interests

787

480

Income taxes

48

69

Income before minority interests

738

410

Minority interests in income (loss)
Net income

52(7)

735

418

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

Income before minority interests
Other comprehensive income

Nine months ended

Nine months ended

December 31, 2013

December 31, 2014
738

410

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

493
0329
(0)

Remeasurements of defined benefit plans, net of tax–29494

358

Comprehensive income

Total other comprehensive income

1,232

769

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,230

776

Comprehensive income attributable to minority interests2(7)6