Note: This is an excerpt translation of the “Kessan Tanshin” for the convenience of overseas stakeholders.
In cases where any differences occur between the English version and the original Japanese version, theJapanese version shall prevail. F-TECH INC. assumes no responsibility for this translation or for direct,
indirect or any other forms of damages arising from the translation.

Consolidated Financial Results
for the Three Months Ended June 30, 2021
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN1. Qualitative information regarding financial results for the period under review
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020;
hereinafter, “Revenue Recognition Accounting Standard”) and other standards are applied from the startof the first quarter ended June 30, 2021. The impact of the application of the Revenue Recognition
Accounting Standard and other standards on the financial position and operating results is immaterial.
(1) Information regarding operating results
The global economy in the three months ended June 30, 2021 continued to be heavily affected by thenovel coronavirus, and economic activities remained in a severe condition. While economic activities
were resumed with the progress in vaccinations and there seemed to be a sign of recovery, the outlook forthe containment of the novel coronavirus remains unpredictable mainly due to concerns over anotherwave of infections with the spread of the mutant strains of the virus in some countries and regions.
The automotive industry on the whole has been on a recovery track from the impact of the novel
coronavirus. However, the future outlook remains uncertain due to factors including decreased
production caused by the global shortage of semiconductors continuing from the end of the previous
fiscal year.
In this business environment, the Group launched the 14th Mid-term plan in April 2020. Under thecompany-wide global policy of “Let’s exceed out limits! We will, without compromise, produce the‘Best One’ for all our customers,” and based on the policies of “Back to Basics” and “Challenge forNew,” we have been working to provide our customers with new value and have made efforts to obtainnew business. Responding accurately to changes in the environment and issues brought by the novel
coronavirus infections, we have been striving to embody our policies by such means as seeking new
business contracts and developing new technologies based on sustainability, optimizing investment,engaging in various improvement activities, and conducting cost reduction.
As a result, during the three months under review, net sales increased by 85.2% year on year to 46,557
million yen, operating profit was 36 million yen (an operating loss of 1,372 million yen in the same
period of the previous year), ordinary loss was 141 million yen (an ordinary loss of 1,881 million yen in
the same period of the previous year), and loss attributable to owners of parent was 703 million yen (lossattributable to owners of parent of 2,678 million yen in the same period of the previous year).
Operating results by segment are as follows.
(Japan)As the volume of orders from major customers was on par with that in the same period of the previousyear due to the impact of the novel coronavirus infection and shortage of semiconductors, net sales
increased by 8.8% year on year to 4,771 million yen. In terms of profit and loss, as a result of increased
sales of products and cost reduction, operating profit was 184 million yen (an operating loss of 1,012
million yen in the same period of the previous year).
(North America)
The volume of orders from major customers recovered from the impact of novel coronavirus infection,and net sales increased by 81.8% year on year to 27,307 million yen. Meanwhile, in terms of profit andloss, due to increased labor expenses and rising material prices, operating loss was 788 million yen (anoperating loss of 524 million yen in the same period of the previous year). In addition, in the same periodof the previous year, fixed costs incurred due to the novel coronavirus (1,496 million yen) were recorded
under extraordinary losses. When comparing the results by taking into account these fixed costs, profit
increased by 1,232 million yen year on year.
(Asia)The volume of orders from major customers recovered from the impact of novel coronavirus infection,and net sales increased by 152.3% year on year to 14,478 million yen and operating profit was 693
million yen (an operating profit of 5 million yen in the same period of the previous year). In addition, inthe same period of the previous year, fixed costs incurred due to the novel coronavirus (692 million yen)were recorded under extraordinary losses. When comparing the results by taking into account these fixed
costs, profit increased by 1,380 million yen year on year.

-1-(2) Information regarding financial position
As of June 30, 2021, total assets increased by 538 million yen compared with the end of the previous
fiscal year to 137,252 million yen, reflecting increases in cash and deposits and construction in progress,
despite a decrease in notes and accounts receivable - trade.
Liabilities increased by 216 million yen from the end of the previous fiscal year to 81,899 million yen,reflecting an increase in short-term loans payable, despite a decrease in notes and accounts payable trade.
Net assets increased by 321 million yen to 55,353 million yen, reflecting an increase in foreign currencytranslation adjustment, despite a decrease in retained earnings and other items.
Although the Revenue Recognition Accounting Standard and other standards were applied, there is noimpact on the balance of retained earnings at the start of the period under review.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the earnings forecasts for the fiscal year ending March 31, 2022 whichwere announced in the Notice Concerning Earnings Forecasts and Dividend Forecasts on July 15, 2021.

-2-2. Quarterly consolidated financial statements and significant notes thereto(1)Consolidated balance sheets(Millions of yen)
As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets-3-

As of June 30, 2021

3,708
31,578
6,547
4,351
8,743
2,744
57,673

6,544
25,840
7,289
4,960
9,491
2,646
56,772

17,14732,8809,034
10,95070,012320

17,14832,688
10,327
11,08571,250
309

6,995
1,712
8,708
79,041
136,714

7,170
1,749
8,919
80,479137,252

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Negative goodwill
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-4-

As of June 30, 2021

19,772
20,8729,88465831
8,182
59,401

17,20724,042
10,066426
25
7,905
59,672

16,943
57
791
44
4,443
22,28081,682

16,782
43
800
43
4,556
22,22681,8996,790
6,733
26,559(64)
40,0196,790
6,733
25,693(64)
39,153

490

564

(333)
128
286
14,72655,032
136,714

1,229
125
1,918
14,28155,353
137,252(2)Consolidated statements of income and comprehensive income(Millions of yen)Three months ended
June 30, 2020

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss attributable to the novel coronavirus
Total extraordinary losses
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
LossProfit attributable toLoss attributable to owners of parent
Profit (loss) attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parentComprehensive income attributable to non-controllinginterests-5-

Three months ended
June 30, 2021

25,141
23,236
1,904
3,277(1,372)

46,55743,081
3,475
3,439
36

14
18

17
29-

33

69102

43123

210

191

270-

113
17
611
(1,881)

86
23
301
(141)

0
1,104
1,104

0
0

18
2,265
2,284
(3,060)317(108)208(3,269)

0
24
24(165)
611
(78)
533
(698)

(2,678)
(590)

(703)
4

91(323)
47

72
2,024
(3)

48

47(136)(3,405)

2,140
1,442

(2,823)929(581)512

(3) Notes to quarterly consolidated financial statements
Uncertainties of entity’s ability to continue as going concern
Not applicable.
Substantial changes in the amount of shareholders’ equity
Not applicable.
Changes in accounting policies(Accounting Standard for Revenue Recognition)
The Company and its domestic consolidated subsidiaries applied the Accounting Standard for Revenue
Recognition (ASBJ Statement No. 29, March 31, 2020; hereinafter, “Revenue Recognition AccountingStandard”) and other standards from the start of the first quarter ended June 30, 2021, and revenue isrecognized at an amount that is expected to be received in exchange for promised goods or services whencontrol of the goods or services transfers to the customer.
As a result of the application, accounting treatment for some buy-sell transactions with repurchaseobligation has been changed, thereby such transactions are recognized as financial transactions, andending inventory of supplied articles remaining at fee-paying suppliers are recognized as “Work inprocess,” and consideration received from the fee-paying suppliers are recognized as financial liabilities.
In the application of the Revenue Recognition Accounting Standard and other standards, the Companyand its domestic consolidated subsidiaries elected to apply the transitional measures set forth in theproviso of Paragraph 84 of the Revenue Recognition Accounting Standard, thereby the cumulative effectof retrospectively applying the new accounting standards for the periods prior to the start of the firstquarter ended June 30, 2021 is added to or subtracted from retained earnings at the start of the firstquarter, and the new accounting standards are applied from the balance at the start of the period.
As a result, net sales and cost of sales for the three months ended June 30, 2021 increased by 160 million
yen and 160 million yen, respectively. There is no impact on the balance of retained earnings at the start ofthe period.
Due to the application of the Revenue Recognition Accounting Standard and other standards, “Other”
presented under “Current assets” in the consolidated balance sheet for the previous fiscal year is partially
included in “Work in process” from the first quarter ended June 30, 2021, and “Notes and accounts
payable - trade” presented under “Current liabilities” in the consolidated balance sheet for the previous
fiscal year are partially presented as “Other.” In addition, some transactions which were accounted for as aminus in “Cost of sales” in the consolidated statement of income for the three months ended June 30,
2020, have been included in “Net sales.”In addition, pursuant to the transitional measures set forth in the Paragraph 89-2 of the Revenue
Recognition Accounting Standard, no reclassification was made to the figures for the previous fiscal year
and for the three months ended June 30, 2020 in accordance with the new presentation methods.
(Accounting Standard for Fair Value Measurement)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019; hereinafter,“Fair Value Measurement Accounting Standard”) and other standards were applied from the start of thefirst quarter ended June 30, 2021, and pursuant to the transitional measures set forth in Paragraph 19 ofthe Fair Value Measurement Accounting Standard and in Paragraph 44-2 of the Accounting Standard forFinancial Instruments (ASBJ Statement No. 10, July 4, 2019), new accounting policies stipulated by theFair Value Measurement Accounting Standard will be applied going forward. The application has noimpact on the quarterly consolidated financial statements.
Additional information
There are no material changes to the assumptions of accounting estimates regarding the impact from thenovel coronavirus infection stated in the securities report for the previous consolidated fiscal year
(Additional information).

-6-

Application of special accounting for preparing quarterly consolidated financial statements(Calculation of tax expenses)
Tax expenses in the quarterly consolidated financial statements for a portion of consolidated subsidiaries
are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting
against profit before income taxes for the fiscal year including the first quarter ended June 30, 2021, andnext by multiplying the quarterly profit (loss) before income taxes by such estimated effective tax rate.
Consolidated statements of income and comprehensive income
Some consolidated subsidiaries received a government subsidy to cover the cost of leave allowances, etc.
during the periods when operations were suspended or shortened in response to government requests. The
subsidy income is offset by relevant personnel expenses, etc. (cost of sales of 466 million yen and selling,
general and administrative expenses of 12 million yen).

-7-Segment information, etc.
Segment information
I. Three months ended June 30, 2020
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Intersegment sales and transfers
Total
Segment profit (loss)

North America

Total

Asia

4,386
2,122

15,016
355

5,738
463

25,141
2,941

6,508

15,371

6,202

28,082(1,012)(524)

5(1,531)

2. Differences between total amounts of profit (loss) for reportable segments and amounts in theconsolidated statements of income and comprehensive income and main details of these differences(matters relating to difference adjustments)(Millions of yen)
ProfitAmount(1,531)

Reportable segments total
Elimination of intersegment transactions

159

Operating profit (loss) in the consolidated
statements of income and comprehensive income(1,372)

3. Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment
Not applicable.

-8-II. Three months ended June 30, 2021
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Intersegment sales and transfers
TotalSegment profit (loss)

North America

Total

Asia

4,771
3,504

27,307324

14,478550

46,557
4,378

8,276

27,631

15,02850,936

184(788)693

88

2. Differences between total amounts of profit (loss) for reportable segments and amounts in theconsolidated statements of income and comprehensive income and main details of these differences(matters relating to difference adjustments)(Millions of yen)
ProfitAmount88

Reportable segments total
Elimination of intersegment transactions(52)

Operating profit in the consolidated statements ofincome and comprehensive income

36

3. Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment
Not applicable.
4. Matters relating to changes in reportable segments
As stated in “Changes in accounting policies,” Revenue Recognition Accounting Standard and otherstandards are applied from the start of the first quarter ended June 30, 2021, and accounting treatment
methods for revenue recognition have been changed. Accordingly, calculation methods for profit (loss)
for business segments have been changed in the same manner.
Due to this change, net sales for the reportable segment of “Japan” in the three months ended June 30,
2021 increased by 160 million yen as compared to the previous methods.
Significant events after reporting period
Not applicable.

-9-