Fiscal Year Ending March, 2022
2nd Quarter Financial Results
Nov 5th,2021
F-TECH Inc.
TSE 1st section :7212
https://www.ftech.co.jp
Copyright(c) 2021 F-TECH INC. All Right Reserved1Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy

4 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved

2

Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy

4 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved3Consolidated Financial Results Overview (Year on Year)(Unit : Million Yen)FY Mar. 2021
Q2 ActualFY Mar. 2022
Q2 Actual

Difference

Sales

73,605100.0%

89,049100.0%

15,44321.0％

Operating Profit▲1,665▲2.3%▲1,424

▲1.6％

241

-

Ordinary Profit▲2,296▲3.1%▲1,627

▲1.8％

669

-

Profit Attributable to
Owners of Parent▲3,345▲4.5%▲2,340

▲2.6％

1,005

-

▲179.38-▲125.94

-

53.44

-

Earnings per share (Yen)FY Mar. 2021

FY Mar. 2022

Difference

1US$

106.32 yen

110.10 yen

3.78 yen

1CAN$

78.53 yen

88.59 yen

10.06 yen

1Yuan(RMB)

15.32 yen

16.76 yen

1.44 yen

Increase in sales and profit (Sales were weak due to the impact of COVID-19 (Lockdown, etc.) in the same
period of the previous year, still struggling to return to the original sales this year. )Copyright(c) 2021 F-TECH INC. All Right Reserved4Consolidated Sales (Year on Year)(Unit : Million Yen)

(Unit:%)

Consolidated Sales by Segment
100,000

73,60575,000

Sales Share (%)

89,049Japan, 8,806

Japan,
12.6%

Japan,
9.9%【Japan】▲2.8%（Decrease）

N. America,
52,107

N. America,
61.4%

N. America,
58.5%【N. America】▲2.9%（Decrease）

Asia,
28,134

Asia,
26.0%

Asia,
31.6%

FY Mar. 2021
Q2 ActualFY Mar. 2022
Q2 Actual

Japan, 9,306

50,000N. America,
45,20025,000Asia, 19,099

0

FY Mar. 2021 Q2 Actual FY Mar. 2022 Q2 Actual【Asia】
5.6%（Increase）

Change in Consolidated SalesFY Mar. 2021 Q2

FY Mar. 2022 Q2

Difference

Difference(%)

Japan

9,306

8,806

▲499

▲5.4％

N. America

45,20052,107

6,907

Asia

19,09928,134

Consolidated

73,60589,049FX Impact

Net Difference

Difference(%)

-

▲499

▲5.4％

15.3％

3,466

3,442

7.6％

9,035

47.3％

2,109

6,927

36.3％

15,433

21.0％

5,575

9,869

13.4％

Factors of Increase: In Q1, sales in North America and Asia increased, in Q2, sales declined on a standalone basis, the effects
of semiconductor shortages became more serious starting Q2
Copyright(c) 2021 F-TECH INC. All Right Reserved

5Operating Profit by Segment (Year on Year)(Unit : Million Yen)

(Unit:%)

Operating Profit

Share

FY Mar.
2021

FY Mar.
2022

Q2 Actual

Q2 ActualJapan▲1,184

▲152

1,032

▲87.1％

71.1%

10.7％

▲60.4％

N. America▲1,315▲2,148

▲833

63.3％

79.0%

150.9％

71.9％

Asia

723

1,020

297

41.1％

▲43.4%▲71.6％▲28.2％

Total▲1,776▲1,280496▲27.9％

106.7%

89.9％▲16.8％

Adjust111▲143▲254 ▲229.4％

▲6.7%

10.1％

16.8％

▲1,665▲1,424▲14.5％

100.0%

100.0%-

6

6

Consolidated

Difference
Difference
(%)

241

FY Mar.
2021

FY Mar.
2022

ActualActualCopyright(c) 2021 F-TECH INC. All Right Reserved

Difference(%)

Operating Performance by Segment (Japan)
9,306

FY Mar. 2021

▲499

Change8,806

FY Mar. 2022

Change(%)▲5.4％

FX Impact-

Real Change▲499

Change(%)▲5.4％▲1,184

Orders from main customers decrease

▲743

2

Machine and Tools sales increase (sales to group company)

1,538

3

Technical services income increase (Royalty, development cost,
etc.)

4

Domestic subsidiaries sales increase5

Elimination of Intercompany sale increase (impact of increased
sales to group companies)

FY Mar. 2021

Change(%)▲87.1％FX Impact-

Change(%)

1,032▲87.1％

1

Product sales decrease

▲480

2

Expense reduction (labor, depreciation, other costs, SGA)

605

435

3

Machine and Tools sales, Technical services income increase

639

1,313

4

Impact of increased sales of subsidiaries

268

Total

1,032

▲499

Quarterly Change

Q2

FY Mar. 2022

▲3,043

Total

Q1

1,032

Reason of change

14,919 4,035

Change▲152

Real Change

Reason of change

4,386 4,771(Unit : Million Yen))

Operating Profit

Sales

5,515

FY Mar. 2021
FY Mar. 2022

4,870

▲ 1,012Q3Q4FY Mar. 2021
FY Mar. 2022

Quarterly Change

Q1

184

405

1,078
▲ 171 Q2▲ 336

Q3

Q4

Despite decrease in sales to main customers, profit increased due to effect of cost reduction and increased product sales
Copyright(c) 2021 F-TECH INC. All Right Reserved

7

7

Operating Performance by Segment (N. America)
52,10745,200FY Mar. 2021

▲833

ChangeChange6,907

Change(%)

15.3%

Change(%)－

FX Impact

3,466

FX Impact▲132

Real Change

3,442Real Change▲701

Change(%)

7.6%▲1,315FY Mar. 2021

▲2,148FY Mar. 2022－

Change(%)

FY Mar. 2022
Reason of change

Reason of change

1

Orders from main customers decrease (HM and GM)

▲685

2

Orders from main customers increase (Toyota,
Company-Te, and Company-S)

2,867

3

Changes in sales to other customers, etc.

1,259

4

FX Impact

3,466
Total

Quarterly Change
30,18327,30724,801
15,016

Q1(Unit : Million Yen)

Operating Profit

Sales

Q2

1

(previous term) Fixed costs incurred due to COVID-19
transferred to extraordinary loss, subsidy income

▲273

2

Unable to cover fixed costs due to production reduction atcustomers▲428

3

FX Impact▲132

34,87330,331▲ 791
FY Mar. 2021
FY Mar. 2022

Q3

▲833

Total

6,907

▲ 524 ▲ 788

Q4Quarterly Change282▲ 1,360

346

FY Mar. 2021
FY Mar. 2022

Sales increased from the previous term, but decreased significantly compared to the plan, Profitability deteriorated due toinability to cover fixed costs resulted from production decline due to semiconductor shortages
Copyright(c) 2021 F-TECH INC. All Right Reserved

8Operating Performance by Segment (Asia)
Sales
Change28,13419,099FY Mar. 2021

FY Mar. 2022

9,035

Change(%)

47.3％

FX Impact

Change
723

1,020

41.1％

2,109

FX Impact

110

Real Change

6,927Real Change

187

Change(%)

36.3％

Change(%)

25.9％

FY Mar. 2021

FY Mar. 2022
Reason of change

1(HM) Sales increase in China

2(Other customers) Sales increase in China

2203(HM) Sales increase in Asia

4

(Other customers) Sales increase in Asia

5

FX Impact

4,943

Total

1

(previous term)Fixed costs incurred due to COVID-19
transferred to extraordinary loss

836

2

Impact of sales increase in China

528

928

3

Impact of sales increase in Asia

373

2,109

4

FX Impact

110

Quarterly Change
16,706
13,360 13,656

17,743FY Mar. 2021
FY Mar. 2022

693

5,738
Q3

Q4

Q1

297

1,978

Quarterly Change
1,291

718

327

5
Q2

▲714

Total

9,035

FY Mar. 2021
FY Mar. 2022

Q1

297

Change(%)

Reason of change

14,478(Unit : Million Yen)

Operating Profit

Q2

Q3

Q4

Sales returned to normal level in Q1, but Q2 was weak and sales and profits did not increase
Copyright(c) 2021 F-TECH INC. All Right Reserved

99Change in Operating Profit by Segments (FY Mar. 2022 Actual)▲1,424▲1.665

605
900

▲254

1,518

▲22

Real profit 1,229 million
yen increase
Actual results for thesame period of theprevious year
▲2,653 million yen▲2,506FY Mar.
2021

Extraordinary
income for theprevious term

Transfer ofextraordinary
loss due to
COVID-19

Machine andTools sales
ImpactCost reduction

Japan▲1,184

100

▲100

427

605

N. America▲1,3151418▲1,692

▲428

▲714

901

Asia

723

Adjustment

111

Consolidated▲1,665

Consolidated
adjustment

FX
ImpactFY Mar.
2022

Difference

▲152

1,032

▲132

▲2,148

▲833

110

1,020

297

▲143

▲254

▲1,424

241

▲254
1,518

▲2,506

900

605

Copyright(c) 2021 F-TECH INC. All Right Reserved

▲254

▲22

10

Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy

4 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved

11Consolidated Budget Overview (Comparison with the previous forecast)（Unit: Million Yen）

FY Mar 2022
Last Forecast

FY Mar 2022
Current Forecast

Difference

220,000

100.0%

195,000

100.0%▲25,000▲11.4%

Operating profit

4,500

2.0%

1,300

0.7%

▲3,200▲71.1%

Ordinary profit

3,700

1.7%

800

0.4%

▲2,900▲78.4%

Profit Attributable toowners of parent

1,000

0.5%

▲900

▲0.5%

▲1,900▲190.0%Earnings per share
(Yen)

53.81

―

▲48.42―▲102.23▲190.0%Sales

FX Impacts

Last Forecast

Current Forecast

Difference

1US$

106.19 yen

108.55 yen

2.36 yen

1CAN$

88.01 yen86.30 yen

▲1.71 yen

1Yuan(RMB)

16.53 yen

16.73 yen

0.20 yen

Revenue deteriorated significantly due to production fluctuation (decrease) at the customers and sales
decrease in all segments.
Copyright(c) 2021 F-TECH INC. All Right Reserved

12Consolidated Sales (Comparison with the previous forecast)（Unit：Million Yen）

Consolidates Sales by Segment
220,000

200,000

Japan,
22,464

100,000

N.
America,
135,816

0

Sales Share （%）
Japan,
10.2%

Japan,
9.9%【Japan】▲0.3%(Up)

N.America,
61.7%

N.America,
60.7%【N, America】▲1.0%(Down)【Asia】
1.3%(Up)

195,000
Japan,
19,246N.
America,
118,372

Asia,
61,719Asia,
57,381

Asia,
28.1%

Asia,
29.4%

FY Mar 2022 Last
Forecast

FY Mar 2022 Current
Forecast

FY Mar 2022 Last
Forecast

FY 2022 Current
Forecast

Change in Consolidated Sales

Last
Forecast

Current
Forecast

Difference

Difference(%)

FX Impacts

ActualDifference

ActualDifference(%)

Japan

22,464

19,246▲3,218▲14.3%―▲3,218▲14.3%

N. America

135,816

118,372▲17,444▲12.8%

161▲17,606▲13.0%

Asia

61,71957,381▲4,337▲7.0%

589▲4,926▲8.0%

Consolidated

220,000

195,000▲25,000▲11.4%

750▲25,750▲11.7%

Sales decreased in all segments. (excluding FX impact, results would be same level as previous year)
Copyright(c) 2021 F-TECH INC. All Right Reserved

13

Operating profit by Segment （Year-over-year basis）（Unit：Million Yen）

（Unit：％）

Operating Profit
FY Mar
2022

FY Mar2022

Last
Forecast

Current
Forecast

Difference

Share
Difference(%)

FY Mar
2022

FY Mar2022

Last
Forecast

Current
Forecast

43.6%

77.1%

Difference

Japan

1,962

1,001

▲960

▲49.0

N. America▲489▲2,079▲1,589

―

Asia

3,816

2,996

▲820

▲21.5

84.8%

230.5%

145.6%

Total

5,289

1,917

▲3,371▲30.0

117.5%

147.5%

30.0%

Adjust

▲789

▲617

171

―

▲17.5%▲47.5%▲30.0％

Consolidated

4,500

1,300

▲3,200▲71.1

100.0%

100.0%―

33.4%▲10.9% ▲160.0% ▲149.1%

Copyright(c) 2021 F-TECH INC. All Right Reserved

14

14Financial Position(Unit: Million Yen)

Total

Capital Investment

Depreciation

Interest-Bearing Debt

Interest-Bearing Debt Ratio

160,000

50.0%

140,000
40.0%

120,000
100,000

30.0%

80,00020.0%

60,00040,000

10.0%

20,0000
Total
Capital Investment
Depreciation
Interest-Bearing Debt
Interest-Bearing Debt Ratio

FY 2017
144,420
14,094
10,33559,12940.9%

FY 2018
150,525
12,435
11,66659,51039.5%

FY 2019
137,010
8,056
11,72046,22033.7%

FY 2020
134,038
12,238
10,89051,342
38.3%

Copyright(c) 2021 F-TECH INC. All Right Reserved

FY 2021
136,714
10,01010,032
49,56536.3%

FY 2022
139,316
12,977
10,03757,400
41.2%
15

0.0%

15

Sales Changes by Customer
100%
90%
80%

70%

4.0%
3.5%
2.9%

1.0%
0.1%

12.0%
76.4%

3.8%
3.5%
2.8%

0.4%
1.2%
1.6%

11.4%

3.8%
3.4%
2.7%
2.7%

1.2%
1.3%

12.9%

75.2%

72.0%

4.9%
2.9%
3.0%
4.7%

4.6%

0.8%
1.2%

1.1%
0.8%
1.5%

3.4%
5.6%

2.7%
4.4%

12.7%

10.9%

70.0%

71.9%

1.2%
1.3%

7.0%

9.7%
66.0%

60%
50%

7.7%

Honda

GM

Te.

TOYOTA

NissanMitsubishi

S

Others40%

Honda30%
GM
Te. 20%TOYOTA
10%
NissanMitsubishi
0%
S
Others

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

151,282
23,683
247
5,658
6,985
2,036
71
FY 2017
7,979
197,941

170,089
25,782
3,661
6,428
7,957
2,648
1,010
FY 2018
8,485
226,060

169,51230,258
6,443
6,300
7,977
3,051
2,913
FY 2019
8,907
235,361

153,004
27,71910,211
6,471
6,275
2,597
1,686
FY 2020
10,749218,712132,123
20,051
10,374
6,178
2,825
1,541
2,066
FY 20218,488
183,647

128,729
18,973
13,680
8,558
2,595
2,256
5,255
FY 2022
14,954
195,000

Copyright(c) 2021 F-TECH INC. All Right Reserved

16

16

Status of Dividend
End of Q1

End of Q2

End of Q3

End of the Term

Total

PayoutRatio

FY Mar. 2021 Actual

-

0 yen

-

8 yen

8 yen

-

FY Mar. 2022 Forecast(Last time)

-

8 yen

-

10 yen18 yen33.5%

FY Mar. 2022 Forecast(This time)

-

0 yen

-

10 yen

10 yen

-

-

2 yen

2 yen

-

▲8 yen0 yen▲8 yen-Difference fromFY Mar 2021
ActualDifference
from the last
forecast

Dividend Policy-*No interim dividend will be paid out for FY Mar 2022 due to downward revision of consolidated earnings forecast.

F.tech’s basic policy regarding the profit distribution is based on the business performance. Along with reinforcing ourfinancial characteristics, we will review profit situation and future business opportunities from a long-term perspective, anddistribute profit back to shareholders
Copyright(c) 2021 F-TECH INC. All Right Reserved

17

17

Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy
4 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved

18

14th Midterm Business Plan ～Basic Policy～
14th Midterm Business Plan
Company Policy: Let’s exceed out limits!
We will, without compromise, produce the “Best One” for all our customers.
66th term (FY2021)

67th term (FY2022)

68th term (FY2023)

Back to Basics ◇Achieve profit ◇Evolution of the ◇Revival of～Master what you suppose to do～at all facilities

simulation

domestic facilities

Challenge for New ◇Acquire new ◇Challenge in ◇Create new～Challenge to create new value～customers

new regions

business
opportunities

Maximize group
efficiency
Target【Productivity】
・Improving manpower
efficiency【Efficiency】
・Automatedinspection device【Profitability】
・Reducing scrap cost
・Turning FCF in theblack

Our Vision : Aim to become the world’s leading supplier specializing in the area of underbody functions
Copyright(c) 2021 F-TECH INC. All Right Reserved

1914th Midterm Business Plan ～Comparison before and after COVID-19～
14th Midterm Three Year Business Plan
FY2021

FY2022

FY2023

216 Billion yen

222 Billion yen

2150 Billion yen

5 Billion yen

7 Billion yen

7.5 Billion yen

2.3％

3.2％

3.5％

Sales

183.6 Billion yen

195 Billion yen-

Operating Profit

3.07 Billion yen

1.3 Billion yen

-

1.7％

0.7％

-

Sales
Original Plan

Operating Profit
Operating Profit ratio

After COVID19 impact

Operating Profit ratio

Significant decrease in sales and profit is expected due to the impact of production adjustments
by OEMs as a result of supply chain disruptions caused by lockdown in Southeast Asia
Copyright(c) 2021 F-TECH INC. All Right Reserved

20F-Tech’ Research and Development Capabilities ～ Evolution of Simulation～
Technologies and know-how that have been refined by F-tech
DesignOptimization design

・Weight reduction proposals with optimal

Analysisspecifications
・ Achieve overwhelming competitivenessStrength/Collision/NV performance
・Optimal area/Elemental sampling・Performance improvement support*NV： Noise Vibration

Shortening theperiodCost saving

Analysis・Understanding of product impactof each component
・Best balance parts development

Driving Stability

Proto-less development system （complete with design and analysis)
Responding to OEM requirements with advanced analysis capabilities
Requirements by OEM
Shortening development period

Cost saving

EVs

Weight reduction

Durability

Copyright(c) 2021 F-TECH INC. All Right Reserved

High-quality

High-efficiency

21

F-Tech’ Research and Development Capabilities ～ Participation in CPE Technology research association～

CPE: Cyber Physical Engineering
Technologies to quickly and efficiently support the whole process of manufacturing,
including planning, design, prototype, certification, and production in cyberspace

Acquisition of CAE data for one vehicleExtra-large X-ray CT
equipment

Acquisition of know-how of digital technologies
Introduction of digital transformation toward manufacturing
Development of auto parts for the next generation automobiles
taking advantage of our know-how*CPE Technology
Research Association

Digital data～Further evolution of CAE analysis（Established in Sep. 2021）

We Participate in CPE Technology Research Association to further improve development capabilities
Copyright(c) 2021 F-TECH INC. All Right Reserved

22Production Activities～ New Model Started in the First Half of 2021～
HONDA

TOYOTANISSAN

Other OEM
*Excerpted

China
PHEV CR-V

CIVIC

INSPIRESYLPHY

North
America
Japan

PILOT

COROLLA
CROSS

SUV
CIVIC

Asia
CIVIC

BR-V

VIOS

We achieved stable start-ups of a number of new models in various regions
Copyright(c) 2021 F-TECH INC. All Right Reserved

23Challenges in New Regions ～ Business in India～
・Making final preparations to startmass production of chassis products

2 experts for manufacturingand quality control weredispatched in April 2021

Concluded
technical
assistanceagreement with
VeeGeeSupply of productto SMG beganComplete capacity
expansion
Expand supply to
Produce high quality SMG
chassis products with Develop newhigh efficiency
JV Corporation
customers
established in Gujarat ⇒ supply to SMG
Supply of product to (400,000pcs/year)

Achieve “Integrated
solution proposals”
from R&D throughmass production
Develop new market
from India

Challenge for the
potential growth in India

Reinforce sales
activity andEstablish
R&D capabilities

2030

2028

2025

SMG began2023
3

2020-2021
2021
2014-2017
SMG: Suzuki Motor Gujarat
We are steadily developing for Business in India with our partner
Copyright(c) 2021 F-TECH INC. All Right Reserved24Challenges in New Regions ～Business in Mexico～
F&P MFG DE MEXICO, S.A. DE C.V.

Undergoing
the expansion（９,７９２㎡）

2016
2012

Expansionarea

Total plant area
after completion(42,409㎡）

Newly received an order of chassis parts from advanced EV manufacturer in the U.S.
Investment
objective

Expansion of production capacity

Time ofinvestment

From 2021 to 2022

Construction
planAug, 2021 Building expansion began
April, 2022 Installation of paint equipment
Dec. 2022 Starting operation*Planning the expansion of stamping capacity

 Moving toward the new growth, seeing
the shift to EV as an opportunity
 Expansion of the supply capacity for EV
parts

Responding to the accelerated shift toward EV by OEM,
we are strengthening the production system
Copyright(c) 2021 F-TECH INC. All Right Reserved25Creation of New Business ～Industry-academia-government collaboration～
Industry trend analysis,
screening

Utilization of internal
resources

Active use of the open innovation

Research and analysis of
all the possibilities
Solving social issues

Community
redevelopment

Participation in the development of next generation and compact mobility
Working toward the realization of new mobility society and smart city
Copyright(c) 2021 F-TECH INC. All Right Reserved

26Initiative to Support the Sustainable Growth ～Selection of Prime Market in TSE～
Primary judgement results by TSE
Items

Number ofshareholders

Direction of activities to increase market value of shares in circulation

Conditions to be listed
Judgement resultsin Prime market
800○

Number of shares incirculation

In units of 20,000○

Total market value ofshares in circulation

10 Billion yen

Not achieved(9.1 Billion yen)

Average trading
volume per day

20 Million yen○

Ratio of sharesin circulation

35％

○



Improving performance and management
measurables by promoting mid-term businessplans
・Responding actively to EV market and growing
regionsStrengthening governance & CSR initiatives

Improving ratio of shares in circulation by stock
policy

Developing IR and public relations activities
・ Enhancement of dialogue withshareholders and investors

We aim to meet the requirement of the market value of shares in circulation by expanding sales for EV business
Copyright(c) 2021 F-TECH INC. All Right Reserved27

【Ref】 Trend of Total Number of Shares Issued/Year-End Stock Price/Market Value in Circulation
Stock price and Market value of shares in circulation

Primary judgement by TSE

Item

Numerical value

Total number of sharesissued18,712,000

Number of sharesin circulation

11,843,000

Ratio of sharesin circulation

63.2％

Calculation of Market value of share in circulation

Market valueof shares incirculation

Ratio ofshares incirculation

＝

63.2％

×
Total market
value ofsharesTotal numberof shares
issuedStock× Price

Market value of shares in circulation

Year-end stock price（Yen）（Million Yen）
16,0001,600

14,0001,400

12,000

1,200

10,000

1,000

8,000

800

6,000

600

4,000

400

2,000

FY

2015 2016 2017 2018 2019 2020 2021 2022

Number ofshares 15,390 15,39015,39016,760 18,712 18,712 18,712 18,712

200
2015

2016

2017

2018

Market value of 百万円
shares
流通株式時価総額
in circulation Mil. Yen

Copyright(c) 2021 F-TECH INC. All Right Reserved

2019

2020

2021

2022

Year-End Stock Price*Based on primary judgment by TSE

28

Initiatives for Sustainable Growth～Corporate governance～

Revision of corporate governance code
83 Principles （Revision 16 Principles）

Supplementary
2-4①

Ensure the diversity of corehuman resources

Supplementary
3-1③

Sustainability activities

Supplementary
4-10①

Use of voluntary system

Supplementary
4-11①

Approach to the formation ofBoard of directors(Consider nomination,(Explanation required） Committees for remuneration)

Currently being addressed in governance reports andGuidelines. Only 4-10① is required for explanation

・Diversity of core human resources
・Human resources development policy
・Establishment of Internal environment improvement
policies
・Strengthen the sustainability initiatives
through CSR committee

・ Establishing nomination of directors andremuneration committee

・Ensure the diversity of board of directors

Aim to comply with all items

78 Principles +5 Principles

Our Actions

Four disclosure items thathave been added or changed

Principle*Texts in blue indicates requirements for the prime market

We are enhancing governance structure to improve corporate value
Copyright(c) 2021 F-TECH INC. All Right Reserved

29Initiatives for Sustainable Growth ～CSR/ESG/SDGs～
Environmental

・Reduction of CO2 emissions
・Environmental conservation of air, water,soil, etc.
・Saving resources and reduction ofwater and waste
・Management of chemical substances
・Development of products withenvironmental consideration
・Preservation of biodiversity

SocialOur Approach・Creating comfortable work environment
・Quality initiatives
・Relations with shareholders, investors
and society

・Initiatives on Diversity and Work-Life Balance
・Implementation of comprehensive evaluation
regarding quality on each product・Development of IR and disclosure appropriately andin a timely manner

Governance

Topics and Concerns

・Evolution of corporate governance・Global expansion of CSR activity
・Global expansion of risk management

・Reinforce CG preparation and execution corresponding
to CG codes
・Make CSR action guidelines well known implemented
globally・Continue to improve BCP level, increase IT security

Goal【New global environmental target for 2030】
・CO2 emission: reduce by 18％
・Water consumption: reduce by 14％
・Waste discharge: reduce by 13％(Base year: FY2018, Indicator: Sales)
・Enhancing the quality and quantity of disclosure
based on the framework of ＴＣＦＤ

We identify priority and promote implementation throughout the group
Copyright(c) 2021 F-TECH INC. All Right Reserved30

Table of Contents

1 Financial Summary
2 Business Forecast
3 Management Strategy
4 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved

31

Providing the Best Value to Our Customers ～Quality Initiatives～

Quality Initiatives* Awards received in the first half of 2021 ( April –September)
Received Quality Excellence Award
F&P MFG DE MEXICO, S.A. DE
C.V.

Received Quality Excellence Award
F&P AMERICA MFG.,INC.
F&P AmericaAwarded for the first timeAwarded2 consecutive years◆Awarded by General Motors◆Awarded by General Motors

Received Nissan Global Quality Award

Received Nissan supplier Quality Award

F-tech global

F&P Georgia, A division of F&P America Mfg.,IncF&P Georgia
Awarded for the first time

F-tech global
Awarded for the first time

◆Awarded by Nissan Motor◆Awarded by Nissan North America

Copyright(c) 2021 F-TECH INC. All Right Reserved

32

Providing the Best Value to Our Customers

Delivery Initiatives
Letter of appreciation forcustomer delivery in Covid-19 pandemic
F.TECH PHILIPPINES,
MFG.,INC.

◆Awarded by Toyota Motor Philippines Corporation～Delivery/Production Engineering Initiatives～

Production Engineering
Initiatives
Received Prize for Creativity
F-tech Kameyama Plant

Awarded 4 consecutive years◆Minister of Education, Culture,
Sports, Science and Technology Award* Awards received in the first half of 2021 ( April –September)

Copyright(c) 2021 F-TECH INC. All Right Reserved33

Relationship With the Local Communities ～F-tech social contribution～

F-tech Social Contribution*Started in 2019

Haga Industrial park
Cleanup Operation

Kameyama Cleanup Activity
off the property

Conducted twicein the first half of 2021

Concluded a contract with Saitama
Prefecture towards forestation
Second agreement period（2020～2024）

Kameyama Adopt Program

We actively engage in social contribution activities
to strengthen connection to the local communities.
Copyright(c) 2021 F-TECH INC. All Right Reserved34

Creating a Comfortable Working Environment～ Work-Life Balance ～Supporting a balance between work and childcare“KURUMIN” certified by the Minister of Health, Labor and Welfare (3-year renewal)
Certification as a childcare
support company

Certification Notice

Two-Star “ KURUMIN Mark “ was acquired
Second certification and acquisition following 2018 （August, 2021）
Next application will be submitted in 2024
We support balancing work and child care,and create an environment where all employees play an active role.
Copyright(c) 2021 F-TECH INC. All Right Reserved

35

The future outlook and earning forecasts in this documents are made based on theinformation available at the moment, and they include potential risks and uncertainties.
As a result , please bear in mind that actual business performance may substantiallydiffer from the stated future forecasts due to changes in various factors.

For inquiries on IR information , please contact:
F-TECH INC . Management Planning Division
General Affairs Department/ Finance and Accounting Department

TEL

0480-85-5211

Mailwebmaster@ftech.co.jp

Copyright(c) 2021 F-TECH INC. All Right Reserved

Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～Consolidated Balance Sheet (FY Mar 2022 Forecast)～

Cash and Deposit

Mar.2021

Mar. 2022

ActualForecast

Changes

3,709

6,019

2,310

Notes and AR

31,57826,424Inventories

19,642OthersCurrent Assetes

Mar.2021

Mar.2022

ActualForecast

Changes

Notes and AP

19,772

15,252▲ 4,520▲ 5,154

Short term loans

20,872

20,619▲ 254

18,603▲ 1,039

Current portion of Longterm loan

9,884

10,000

116

2,744

3,317

572

Others

8,873

8,988

116

57,67354,363▲ 3,310

59,40254,859▲ 4,542

Property,Plant andquipment

70,01375,952

5,940

Long-term loan

16,94424,608

7,665

Intangible Assets

320

290

▲ 31

Others

5,337

5,561

224

8,709

8,712

3

22,28130,1697,889

79,041

84,954

5,912

81,68385,0293,346

136,715

139,317

2,602

40,01938,959▲ 1,061

286

305

19

14,72715,025298

55,03254,288▲ 744

136,715

139,317

2,602

Investment and others
Non-current Assets
Total Assets

Current Liabilities

Non-current Liabitities
Total Liabilities
Total Shareholders' Equity
Accumulated Other
Comprehensive Income
Non-comtrolling Interests

Interests-bearing debt
Interets-bearing debt ratio

49,56357,400

7,837

36.3%

41.2%

4.9%

Total net Assets
Total Liabilities and Net Assets

Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix～ Consolidated Cash Flow Statement (FY Mar 2022 Forecast) ～Mar.2022 FY end financial result briefing materials
Mar.2021
ActualCash flows fromoperating activities

9,956

Cash flow frominvestment activities▲ 10,726

Mar.2022
Forecast

Changes

Operating CF

15,000Investing CF

8,415▲ 1,542▲ 12,978Free CF

9,956
10,0008,415▲ 2,251
5,000

Cash flow from financial
activities▲ 4,3636,805

11,168Translation adjustments
associated with cash andequivalen

▲ 37

69

106

Net changes of Cash andcash equivalent▲ 5,171

2,310

7,481

Beginning balance ofCash and cash equivalent

8,880

3,709

▲ 5,1710Mar.2021
Actual ▲ 770▲ 5,000

Mar.2022
Forecast▲ 4,563▲ 10,000▲ 10,726
Ending balance of Cashand cash equivalen

3,709

6,019

2,310

▲ 15,000

Copyright(c) 2021 F-TECH INC. All Right Reserved▲ 12,978Appendix～Corporate overview～

Company Name

F-TECH INC.

Market Segment

The first section of the Tokyo Stock Exchange （7212）

Capital6.79 Billion JPY

President and CEO

Yuichi Fukuda

Consolidated Sales

183.6 Billion JPY （March 2021）

Number of
Employees

Group total 9,400（F-tech only: 962）

Established

July 1st, 1947

Address

19, Showanuma, Shobucho, Kuki, Saitama 346-0194 JAPANMain Customers

Honda, General Motors, Nissan, Toyota, etc.

Main Products

Underbody for automobile - suspension arm ,sub-frame , axle beam , pedal control, etc.

※F-tech only does not include subsidiaries and expats at overseas facilities

As of March 31,2021
Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～ F-tech’s history ～Establishment（1947‐1964）

4 wheel business（1965‐1987）

Business expansion（1988‐1999）

Global expansion（2000‐ current）

1987

2014
R&D NA Europe Branchestablished

1999
Daihatsu business starts

1964 Renamed to
Fukuda Press
kogyo
1959
Honda businessstarts1997
Dyna-Mig operation begins
F&P Mfg
1996（Canada）operation begin
Listed on OTC Market
1978
1995
Nissan Shatai business starts
1994

HQs transferred to Kuki
Motorcycle parts
production starts
1947 Fukuda
Seisakusho
Established.
Metal toy
production starts

1965

1967

Ftech Philippine operation starts
1993

2006 F-TECH MFG（THAILAND） begins
Listed on 1st section of Tokyo stock exchange
2004 F-tech Wuhan Inc. begins

Kameyama plant mass
Production begins

1989

2013
PT.F.TECH INDNESIA
established2012
F&P MFG.DE MEXICO established2011
F-tech R&D(Guangzhou)Inc. established2008
Ftech R&D Philippines established
Futian MOULD technology(YANTAI) co.,Ltd. established

2021
TOYOTA
motor
Corporation
Business starts

F&P America operation starts
1991
Mitsubishi, Suzuki business starts

4 wheel parts
Production begins
Renamed to F-tech

2003 R&D North America begins

2020
2002 F-tech Zhongshan Inc. begins
Joint investment in VEE
2001 TOYOTA North America business starts GEE Auto Components
General Motors business starts
Pvt Ltd.
Listed on the 2nd sector of Tokyo stock exchange
2018
F-TECH AUTOMOTIVE COMPONENTS
2000 Nissan Motors business starts
PRIVATE LIMITED establishedF&P Georgia Mfg.,Inc operation begins

Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～Vehicle Components～

Suspension Parts

Control parts
RR

FR

MountedComponents

Module Assy

Our products are critical safety auto parts which perform fundamental functions,“Drive”, “Turn” and “Stop”. We aim at the optimal specifications considering thehigher operation stability, riding comfort, and safety at the time of the collision.
Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～Our Business Outline（Chassis Parts Development and Production）～
Product
Development

Forming

Welding

Painting

Assembly

All processes, from product planning and development to mass-production, are carriedout through F-tech’s proprietary integrated processing system, which enables F-tech tosupply products that own competitiveness, even in short time frame.
Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～F-tech Group Companies in Japan～【Facilities】【Group Companies】【Affiliated Companies】

Head Office・Kuki Plant
Kameyama Plant
Haga Technical Center
Equipment Center

Fukuda Engineering Co., Ltd.
Kyushu F.tech. Inc.
Reterra Inc.

Johnan Manufacturing Inc.
Johnan-Kyushu Manufacturing Inc.

JohnanManufacturing Inc.

Reterra Inc.
(Chichibu)

Johnan Kyushu
Manufacturing Inc.
Haga Technical Center

Equipment Center (Kazo)

Kyushu F.tech Inc.

Head Office・Kuki Plant

Kameyama
Plant
Copyright(c) 2021 F-TECH INC. All Right Reserved

Fukuda Engineering Co., Ltd(Kazo)

Appendix ～F-tech Group Overseas Companies～
F.tech Inc. Office UK
F.tech R&D North America Inc.
European Branch
F-Tech WUHAN Inc.
F-Tech Zhongshan
Inc.
F-TECH AUTOMOBILECOMPONENTS Pvt.Ltd.

F-TECH MFG.
(THAILAND)LTD.

Dyna-Mig, A division of
YANTAI FUYAN MOULD F&P Mfg.,Inc.
CO.,LTDF&P AMERICA MFG.,INC.
F&P Gerorgia, A division of
F&P America Mfg.,Inc.
F.techR&D(Guangzhou)inc.
F.TECH PHILIPPINES, MFG.,INC.
F.tech R&D Philippines Inc.

PT.F.TECHINDONESIAF&P MFG.,INC.
F.TECH R&D
NORTH AMERICA
INC.
Michigan/
R&D NA Office

F&P MFG DE MEXICO,S.A. DE C.V.
F.E.G. DE QUERETARO
S.A. DE C.V.

Production plants

R&D,Sales facilities

N. America （6）China （2）Asia （3）

N. America （2） China （2）Europe （2）Asia （2）F-tech has 11 production plants and 8 R&D, Sales facilities in 10 countries.
Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～Affiliates and Alliances～
JOHNAN UK Ltd.

Johnan Wuhan Inc.

Gestanp Tallent Ltd.

Shanghai Huizhong

JOHNAN AMERICA INC.
YPS Ltd.
PROGRESSIVE TOOLS &COMPONENTS(P) Ltd.

SMC Co.,Ltd.
CHEN IEU INDUSTRY CO.,LTD.
JOHNAN F.TECH(THAILAND)LTD.
Benteler Componentes
Automotivos Ltda.

VEEGEE Industrial
Enterprises PVT. LTD

JOHNAN DE MEXICO,
S.A.DE C.V.

COSMA DO BRAZILERECT ENGINEERING
PT.JFDPRESSWORKS SDN.BHD. INDONESIAGESTAMP BRAZIL
Affiliates

Alliances

N. America （2） China（1）Asia （3）Europe （1）S. America （3） China （1）Asia （4）Europe （2）We have established optimal business partnerships in 7 countries
and 1 region in order to supply our products globally
Copyright(c) 2021 F-TECH INC. All Right Reserved

Technological Alliances & Affiliates in India
Company NameVEEGEE INDUSTRIAL ENTERPRISES Pvt. Ltd.

Established

In 1990

Number of
Employees

Approx. 1,400

Main Products

Stamping, Sub-assembly, Tube/Pipe Welding, etc

Main Customers

Honda, Suzuki, General Motors, Tata Motors, Autoliv, Schneider,etc

Business Lineup

Manufacture and Sales of Auto Parts （Body parts, Pedal parts, Chassis parts）

Company NameVEE GEE Auto Components Private Limited

Amount ofInvestment

342,940,000 INR (Approximately 488 million yen *)*1INR=1.4229 yen converted at the exchange rate as of 9/24/2020

Investment Ratio

VEE GEE INDUSTRIAL ENTERPRISES PVT.LTD. 74%
F-TECH INC. 26%

Main Customer

Suzuki Motor Gujarat Pvt Ltd (SMG)
Copyright(c) 2021 F-TECH INC. All Right Reserved