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, 2014
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPANQuarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2014

As of September 30, 2014

7,823
24,016
3,581
3,485
6,809
3,688
49,404

6,177
22,518
4,574
3,687
7,060
3,201
47,22017,951
21,552
15,64055,144858

17,951
21,602
19,276
58,831822

4,204
1,510(61)5,654
61,657
111,062

4,491
1,351(61)5,781
65,436112,656

16,17012,778
10,146433
89
7,214
46,833

16,054
15,607
9,314
357
58
8,325
49,71821,212
204
249
83
2,637
24,38771,22019,178
203
312
81
2,749
22,52672,244

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
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
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-1-(Millions of yen)
As of March 31, 2014
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
Minority interests
Total net assets
Total liabilities and net assets-2-

As of September 30, 2014

4,790
5,228
13,958(18)
23,9584,790
5,228
14,018(18)
24,019

619

746

1,012
284
1,915
13,967
39,842
111,062

1,229
307
2,283
14,10940,412
112,656

(2) Consolidated statements of income and comprehensive income(Millions of yen)Six months ended
September 30, 2013
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income
Minority interests in income
Income before minority interests-3-

Six months ended
September 30, 2014

82,96973,277
9,691
6,485
3,206

84,45074,981
9,469
7,237
2,232

20
22

15
34

187

135

66
89
387

–
85
271

336
–
5
342
3,250

335
11
13
360
2,143

32
32

8
8

4
30
35
3,248
978
45
1,024
2,224
688
1,535
688
2,224

1
140
141
2,010
1,157(110)
1,047
963
441
521
441963

(Millions of yen)Six months ended
September 30, 2013
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 ofparent
Comprehensive income attributable to minority
interests-4-Six months ended
September 30, 201445
2,529–39
430
25

136

126

2,711
4,935

622
1,585

3,524

888

1,410

696

(3) Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2013
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in provision for retirement
benefits
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 (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of property, plant andequipment
Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued expenses
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Payments for extra retirement payments
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 andequipment
Purchase of intangible assets
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities-5-

Six months ended
September 30, 2014

3,248
3,622
(2)

2,010
4,153
(2)

(143)

––

(94)

(35)

(0)

37

(31)

(42)
336
(8)

(50)
335
14(187)

(135)

(28)

(7)

30

140

(3,538)

1,821

1,583

(1,488)

1,301

(174)

45
1,262
7,480
78(345)(1,371)
(789)
5,052

83
1,606
8,179
83
(334)
–
(1,480)6,448(7,300)(6,691)70

17(78)(14)(30)(7,352)

(96)
(15)
(15)
(6,801)

(Millions of yen)Six months ended
September 30, 2013
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
Cash dividends paid
Repayments of installment payables
Cash dividends paid to minority shareholders
Repayments of finance lease obligations
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, 2014

(3,634)
16,895(11,837)
–
(102)
(355)
(188)
776

2,584
2,771
(5,638)
(153)
(98)
(512)
(224)
(1,271)490(21)(1,032)
5,304
4,272

(1,645)
7,823
6,177

(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.
Segment information, etc.
Segment informationI.
Six months ended September 30, 2013
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Transactions with other segments
Total

50,486606

18,544545

82,969
7,787

20,57451,092

19,08990,756

419

1,846

520

2,787

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)AmountProfitReportable segments total

2,787

Elimination of intersegment transactions

419

Operating income in the consolidated statements ofincome and comprehensive income

3.

Total

Asia

13,938
6,635

Segment profit

2.

North America

3,206Disclosure of impairment loss on non-current assets and goodwill for each reportable segment
Not applicable.

II. Six months ended September 30, 2014
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Transactions with other segments
TotalSegment profit

2.

North America

13,2885,338

51,510712

19,651
897

84,450
6,948

18,62752,223

20,54891,399

37

1,711

191

1,940

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

ProfitReportable segments total

1,940

Elimination of intersegment transactions

292

Operating income in the consolidated statements ofincome and comprehensive income

3.

Total

Asia

2,232

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

Significant events after reporting period
Not applicable.
-7-