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 Six Months Ended September 30, 2020
<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(1) Information regarding operating results
The global economy in the six months ended September 30, 2020 remained in a severe condition due tothe prolonged impact of the novel coronavirus. While economic activities have been gradually resuming
and some signs of recovery were seen, the future outlook remained uncertain overall due to concerns
over the re-spread of the virus.
In the automotive industry, normalization proceeded rapidly in China. However, in other regions,recovery was slow and lacked strength, while signs of improvements were seen.
In this business environment, the Group launched the 14th Mid-term plan in April 2020. Whilemaintaining the basic policies of “Back to Basics” and “Challenge for New,” we have established aglobal policy of “Let’s exceed out limits! We will, without compromise, produce the “Best One” for all
our customers.” Under this global policy, while striving to prevent the novel coronavirus infections, ateach of our regional bases, we have been working to provide our customers with new value and havemade efforts to obtain new business. This led the Group to win new business contracts in Japan. In
addition, we have been working with the objective of exceeding limits in order to deal with the severe
corporate environment we face at present, by such means as minimizing investment, engaging in various
improvement activities, and conducting unprecedented cost reduction.
As a result, during the six months under review, net sales decreased by 34.5% year on year to 73,605
million yen, operating loss was 1,665 million yen (an operating profit of 2,129 million yen in the same
period of the previous year), ordinary loss was 2,296 million yen (an ordinary profit of 1,515 million yen
in the same period of the previous year), and loss attributable to owners of parent was 3,345 million yen(loss attributable to owners of parent of 127 million yen in the same period of the previous year).
Operating results by segment are as follows.
(Japan)Net sales decreased by 34.4% year on year to 9,306 million yen and operating loss was 1,184 million yen(an operating loss of 432 million yen in the same period of the previous year) due to a sharp decline in
the volume of orders from major customers as a result of the spread of the novel coronavirus infection in
the first quarter, although it showed a recovery trend in the second quarter.
(North America)
Net sales fell by 34.5% year on year to 45,200 million yen and operating loss was 1,315 million yen (anoperating profit of 395 million yen in the same period of the previous year) due to a sharp decline in thevolume of orders from major customers as a result of the spread of the novel coronavirus infection in thefirst quarter, although it showed a recovery trend in the second quarter.
(Asia)Net sales decreased by 34.5% year on year to 19,099 million yen and operating profit decreased by
62.5% year on year to 723 million yen due to a sharp decline in the volume of orders from major
customers as a result of the spread of the novel coronavirus infection in the first quarter, although it
showed a rapid recovery trend in the second quarter.
(2) Information regarding financial position
As of September 30, 2020, total assets decreased by 3,891 million yen compared with the end of theprevious fiscal year to 130,147 million yen, reflecting decreases in cash and deposits, notes and accounts
receivable - trade, machinery, equipment and vehicles, and other items.
Liabilities increased by 1,569 million yen from the end of the previous fiscal year to 81,315 million yen,reflecting increases in notes and accounts payable - trade, short-term loans payable, and other items.
Net assets decreased by 5,460 million yen to 48,831 million yen reflecting decreases in retained earnings
and other items.
(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, 2021
announced on August 6, 2020.

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
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-2-

As of March 31, 2020

As of September 30, 2020

8,879
27,955
6,389
4,026
8,677
3,027
58,956

5,377
26,356
7,330
4,263
8,840
3,013
(9)
55,172

16,20532,4506,750
11,30866,714363

15,68529,911
10,398
10,78866,784
340

5,960
2,044
8,004
75,081
134,038

5,940
1,909
7,850
74,975130,147

(Millions of yen)

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-3-

As of March 31, 2020

As of September 30, 2020

17,427
20,395
9,740
500
77
7,271
55,412

17,902
24,702
9,090
321
13
7,515
59,54619,146
126
1,050
50
3,958
24,33379,745

16,654
52
957
47
4,056
21,76981,315

6,790
7,230
27,912(18)
41,914

6,790
7,236
24,366(64)
38,328174

179(1,657)(295)(1,778)14,15654,292
134,038(2,093)(199)(2,113)
12,616
48,831130,147(2)Consolidated statements of income and comprehensive income(Millions of yen)Six months ended
September 30, 2019

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 profit (loss)
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Gain on sales of investment securities
Other
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
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit 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 parent
Comprehensive income attributable to non-controllinginterests-4-Six months ended
September 30, 2020

112,355
102,117
10,2378,108
2,12973,60568,6005,004
6,670(1,665)

38
29

33
22

77-

85
230

124
180

554

417

-

22

229
59
844
1,515

356
15
811
(2,296)

6
1
7

0
1,518
6
1,525

0
21
22
1,501
1,091
312
1,403
97

34
2,505
2,540
(3,311)611
34
646(3,957)(127)
224(3,345)
(611)

(50)
(985)
74

12(478)93(17)

13(979)
(882)

(358)
(4,316)(771)(3,681)

(111)

(635)

(3) Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2019
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in assets and liabilities related toretirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors’
bonusesInterest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipmentDecrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Loss (gain) on sales of investment securities
Increase (decrease) in accrued expenses
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities-5-

Six months ended
September 30, 2020

1,501
5,471
(2)

(3,311)
5,075
(2)

40

20

9(73)

(3)

(64)

(68)
554
80

(55)
417
134(77)

22(6)
21(0)
34

2,572

1,319

(1,342)(1,524)(2,887)

623

(95)
526
6,294
106(564)(1,187)
4,648

(6)
108
458
3,175
84(425)
(776)
2,058

(4,983)58(32)(45)
0(5,002)(5,138)
8(55)
(16)
10
18
(5,172)

(Millions of yen)Six months ended
September 30, 2019
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Repayments of installment payables
Dividends paid to non-controlling interests
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-6-Six months ended
September 30, 2020

4,585
2,294
(7,277)
(187)
(155)
(699)
(416)
(1,856)

4,491
2,050
(5,074)
(45)
(200)
(129)
(815)
(332)
(83)
(138)

(159)

(250)

(2,369)
7,191
4,822

(3,502)
8,879
5,377

(4) 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.
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 second quarter ended September 30,2020, and next by multiplying the quarterly profit (loss) before income taxes by such estimated effectivetax rate.
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).
In the six months ended September 30, 2020, in relation to the spread of the novel coronavirus, agovernment subsidy of 1,518 million yen is recorded as extraordinary income, and fixed costs, etc. arisingfrom operation suspensions and reductions due to the government’s request of 2,505 million yen arerecorded as extraordinary losses.

-7-Segment information, etc.
Segment information
I. Six months ended September 30, 2019
1. Disclosure of net sales and profit 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

Asia

Total

14,194
5,196

68,992730

29,167
1,367

112,355
7,295

19,391

69,72330,535

119,650(432)

395

1,928

1,890

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)
ProfitAmount1,890

Reportable segments total
Elimination of intersegment transactions

238

Operating profit in the consolidated statements ofincome and comprehensive income

2,129

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

-8-II. Six months ended September 30, 2020
1. Disclosure of net sales and profit 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

9,306
4,435

45,200664

19,0991,257

73,605
6,358

13,74245,864

20,356

79,963(1,184)(1,315)723(1,776)

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(1,776)

Reportable segments total
Elimination of intersegment transactions

111

Operating profit (loss) in the consolidatedstatements of income and comprehensive income(1,665)

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

-9-