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 Fiscal Year Ended March 31, 2017
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN1. Overview of Operating Results and Others(1) Analysis regarding operating results
The trend in the global economy during the fiscal year ended March 31, 2017 was in general steady,although the situation was uncertain, with the issue of Brexit, concern over the Chinese economy, andconcern over new policies in the United States, etc., and meanwhile the economies in the United States
and China both saw stable growth.
In the automotive market, automobile sales continued to rise firmly in North America and China while
increasing year on year in Japan, as well.
Under these circumstances, the Group pushed ahead with expanding manufacturing and sales on a global
basis under the corporate policy “To become a chassis system manufacturer with overwhelming
competitive strength,” outlined in its 12th Mid-Term Plan, which started in April 2014, striving toenhance its R&D capabilities, production structure and environmentally friendly technologies.
In the R&D aspect, we introduced a development infrastructure at R&D bases in the Japan, North
America and Asia regions to achieve a borderless development environment, where sharing ofdevelopment information and a seamless development structure have been established. Moreover, the useof advanced simulation technologies to evaluate for strength, durability, and development cost hascontributed to improving the cost competitiveness and increasing the speed in development activities.
In the production structure aspect, we have formed alliance with local companies in India, Brazil, andsome areas in China, where F-tech does not have its own plants, to strengthen manufacturing network on
a global basis, and we made continual advancement toward establishing an optimal supply system. In
order to support business with new customers, production capabilities have been enhanced in production
plants in Mexico and Canada. In Japan, we further focused on improving production characteristics to beflexible for the change in production volume and the ‘value added’ reduction due to increased numbers ofcompact cars.
In the aspect of environmentally friendly technologies, the global development activities of theenvironmental management system that F-tech has been engaging in were recognized, and F-tech
received the Energy Management Insight Award in June 2016, and Chairman Prize of The Energy
Conservation Center, Japan of the Energy Conservation Cases Category of 2016 Energy Conservation
Grand Prize in January 2017.
In the financial aspect, 1,650 million yen, out of 2020-maturity yen-denominated convertible bond-typebonds with subscription rights to shares issued in March 2015, was converted into shares, and net assets
increased by the same amount.
The operating results for the Group during the fiscal year under review are as follows. The Groupbenefited mainly from a recovery of sales to major customers in Japanese market and favorable sales tomajor customers in the Chinese market. Net sales rose 0.8% year on year to 197,941 million yen,operating profit rose 17.8% to 8,035 million yen, ordinary profit rose 16.7% to 7,214 million yen, andprofit attributable to owners of parent rose 49.2% to 4,035 million yen, including the recording ofdeferred tax assets, etc. as a result of the improvement in business performance of the Company.
Operating results by segment are as follows.
(Japan)The increased sales of the Company to major customers amidst a recovery in production volume of the
major customers of the Company, along with an increase in the number of export automobiles, led to net
sales rising by 14.6% year on year to 25,229 million yen and an operating profit rising by 150.9% year
on year to 958 million yen.
(North America)
In the North American market, where automobile sales are substantial, despite firm sales to major
customers and other customers, the effect of yen appreciation and the increased labor costs due to thetight labor market led to net sales falling by 3.6% year on year to 120,433 million yen. The segment
recorded operating profit of 2,928 million yen, down 37.4% year on year.
(Asia)
Sales to major customers were favorable and business with new customers was expanded in China andThailand. Net sales rose 5.9% year on year to 52,279 million yen and operating profit rose 86.9% year on
year to 3,868 million yen.
-1-

Outlook for the next fiscal year
As for the outlook for the next fiscal year, in Japan the outlook is for continuing recovery including thesales for exported automobile models. In North America, although the sales trend is projected to remain
solid, changes in model mix and the investment made to grow business with new customers will result ina decrease in profit. In Asia, with favorable conditions forecast for major customers, both sales and profit
are expected to grow.
As the outlook for consolidated results for the fiscal year ending March 31, 2018 (April 1, 2017 to March
31, 2018), we predict net sales of 209,000 million yen (up 5.6% year on year), operating profit of 8,000
million yen (down 0.4%), ordinary profit of 7,400 million yen (up 2.6%), and profit attributable toowners of parent of 4,000 million yen (down 0.9%).
Exchange rates are assumed at 108.00 yen to the U.S. dollar.
(2) Analysis regarding financial position
1) Assets, liabilities and net assets
As of March 31, 2017, total assets increased 6,440 million yen compared with the end of the previous
fiscal year to 144,420 million yen, mainly reflecting increases in notes and accounts receivable - trade,merchandise and finished goods and machinery, equipment and vehicles.
Liabilities increased 3,776 million yen from the end of the previous fiscal year to 94,688 million yen
reflecting increases in notes and accounts payable - trade and long-term loans payable.
Net assets increased 2,663 million yen to 49,732 million yen mainly reflecting an increase in retained
earnings.
2) Cash flows
As of March 31, 2017, cash and cash equivalents decreased 1,112 million yen compared with the end of
the previous fiscal year to 5,719 million yen (down 16.3% year on year).
Cash flows in the fiscal year under review and factors in increase or decrease from the previous fiscal
year are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 13,245 million yen. The main factors were 6,966
million yen in profit before income taxes, 10,334 million yen in depreciation, an increase in notes andaccounts receivable - trade of 4,977 million yen and an increase of notes and accounts payable - trade of
2,998 million yen, and income taxes paid of 1,702 million yen.
Compared with the previous fiscal year, cash flows from operating activities changed from 12,140
million yen provided to 13,245 million yen provided. This was mainly due to a decrease in income taxes
paid.
(Cash flows from investing activities)
Net cash used in investing activities was 13,116 million yen. The main factor was 12,840 million yen inpurchase of property, plant and equipment.
Compared with the previous fiscal year, cash flows from investing activities changed from 17,810
million yen used to 13,116 million yen used. This was mainly due to a decrease in the purchase ofproperty, plant and equipment.
(Cash flows from financing activities)
Net cash used by financing activities amounted to 870 million yen. The main factors were 2,624 million
yen in net decrease in short-term loans payable, 15,730 million yen in proceeds from long-term loans
payable and 11,075 million yen in repayments of long-term loans payable.
Compared with the previous fiscal year, cash flows from financing activities changed from 3,792 million
yen provided to 870 million yen used. This was mainly due to a decrease in proceeds from net decreasein short-term loans payable.
(Reference) Transition of cash flow indicators-2-

59th term
Fiscal year ended
March 31, 2014

60th term
Fiscal year ended
March 31, 2015

61st term
Fiscal year ended
March 31, 2016

62nd term
Fiscal year ended
March 31, 2017

Equity ratio (%)

23.3

22.9

21.2

23.3

Market value-based equity ratio (%)

17.3

13.3

11.9

16.4

Ratio of interest-bearing debt to cash
flows (year)

4.8

6.6

4.7

4.4

Interest coverage ratio (times)

13.2

11.5

13.7

15.3

(Notes) Equity ratio: equity / total assets
Market value-based equity ratio: market capitalization / total assets
Interest-bearing debt to cash flow ratio (year): interest-bearing debt / cash flow
Interest coverage ratio: cash flow / paid interest* All indicators are calculated using consolidated-based financial figures.
* Market capitalization is calculated by multiplying the closing stock price at the end of the period by the number ofissued shares as of the end of the period (excluding treasury shares).
* The figure used for cash flow is “net cash provided by (used in) operating activities” on the consolidated
statements of cash flows. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheetson which we paid interest. Furthermore, regarding the paid interest, we use the interest expenses paid recorded on
the consolidated statements of cash flows.

(3) Basic policy on distribution of profits and dividends for the current and the next fiscal years
The Company's basic policy on distribution of profits is established to ensure return of profits toshareholders based on operating results. While striving to reinforce the financial strength, we review the
profitability and future business opportunities from the long term perspective, and also consider
commemorative dividends and share splits depending on milestones we reach. For distribution of profits
by dividend, the Company is targeting a payout ratio for profit attributable to owners of parent of 10% orabove for the time being, and as a rule, provides dividends twice a year, interim and year-end dividends.
As for internal reserve funds, in order to respond to future changes in the business environment, we plan
to appropriate these for further business expansion and improving financial characteristics by focusing on
increasing cost competitiveness and strengthening structures to support global development, production,and sales activities.
Year-end dividends shall be matters for resolution at a shareholders' meeting.
For the current fiscal year, a 70th anniversary commemorative dividends of 7 yen is added to theordinary dividend per share of 10 yen, the year-end dividend will be 17 yen per share and the interim
dividend was 10 yen per share, which will lead to annual dividends of 27 yen.
For the next fiscal year, the Company plans to distribute annual dividends of 20 yen, with the interim
dividend of 10 yen per share and the year-end dividend of 10 yen per share.
(4) Information regarding differences between consolidated earnings forecasts and actual results
The Company hereby notifies the fact that there were differences between its consolidated earnings
forecasts for the fiscal year ended March 31, 2017 (from April 1, 2016 to March 31, 2017), which wereannounced on February 2, 2017, and the actual results for the fiscal year.

-3-Differences between earnings forecasts and actual results in the fiscal year ended March 31, 2017 (FromApril 1, 2016 to March 31, 2017)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings per
profitprofitto owners ofshare (Yen)parentPrevious forecasts (A)192,000
7,400
6,400
3,000
195.31
Actual results (B)197,941
8,035
7,214
4,035
261.01
Difference (B-A)
5,941
635
814
1,035
Difference (%)
3.1
8.6
12.7
34.5
(Reference) Actual results forthe previous fiscal year
196,343
6,821
6,182
2,704
176.14(Fiscal year ended March 31,
2016)
Reasons for the differences
Operating performance for the fiscal year ended March 31, 2017 was an increase in profit due to theimpact of the increase in income in Japan and North America, and other factors.
In addition, profit attributable to owners of parent substantially exceeded the forecasts due to recordingof deferred tax assets as a result of recovery of operating performance of the Company and other factors.

-4-

2. Basic Rationale for Selecting the Accounting Standards
The Group currently prepares the consolidated financial statements according to the generally accepted
accounting standards in Japan (Japanese GAAP), as it makes it possible to compare the consolidated
financial statements against previous fiscal year and against other companies.
With regard to adoption of International Financial Reporting Standards (IFRS), it is the Group’s policy torespond to this issue appropriately based on consideration of various domestic and international
circumstances.

-5-3. Consolidated financial statements(1)

Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

6,831
28,930
4,779
3,942
8,069
368
4,486
57,4095,719
33,151
5,883
4,228
8,533
541
3,841
61,89919,64829,985
1,969
6,024
809
13,423
1,549
73,41018,93733,374
2,313
5,978
937
11,416
1,718
74,676

608
44
18
671

468
40
–
508

4,880
261
34
449
862
–
6,489
80,570137,980

5,677
236
35
569
834
(17)
7,336
82,521
144,420

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Dies and tools, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
SoftwareRight of using facilities
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

18,69022,589
11,576
395
499
4,347
85
99
4,207
62,492

21,186
20,562
10,953
742
649
4,873
114
134
4,248
63,4654,000
18,597
485
3,369
233
954
693
72
13
28,41990,911

2,350
23,271
442
3,294
280
987
512
67
16
31,222
94,6884,790
5,419
17,512(18)
27,703

5,615
6,155
21,425(18)
33,177

618

740

1,533
(549)
1,602
17,76247,068137,980

270
(533)
477
16,07749,732
144,420

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Accounts payable - otherNotes payable - facilities
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
Long-term accounts payable - other
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

-7-

(2)

Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2016

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit 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-8-

Fiscal year ended
March 31, 2017

196,343
173,714
22,62915,808
6,821

197,941
173,372
24,56916,533
8,035

55
46

55
43

437

536

192
732

230
865

883
449
38
1,371
6,182

873
770
43
1,686
7,214

963
–
963

42
2
44

4
76
110
191
6,953
1,171
1,188
2,360
4,593

6
132
153
292
6,966
1,971
(438)
1,533
5,432

2,704
1,888

4,035
1,397

(215)
(3,298)(878)

104(2,035)
32

(212)

(12)

(4,605)(11)(1,911)
3,521

(707)

2,910

695

610

(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
period4,790

Capital surplus

Retained earnings

5,228

Treasury shares

15,115(18)

Total shareholders’equity25,115

Changes of items during period
Conversion of convertiblebond-type bonds with
subscription rights to shares–

Dividends of surplus

(307)

(307)

Profit attributable to owners ofparent

2,704

2,704

Purchase of treasury shares(0)Change in ownership interestof parent due to transactions
with non-controlling interests
Increase/Decrease by changeof subsidiary’s financial
closing month

(0)

190

190
–

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

–
–

190

2,397

(0)

2,587

4,790

5,419

17,512(18)

27,703

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period858

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
4,085

338

Total accumulated Non-controlling
otherinterests
comprehensive
income5,283

15,958

Total net assets

46,356

Changes of items during period
Conversion of convertiblebond-type bonds with
subscription rights to shares–

Dividends of surplus(307)

Profit attributable to owners ofparent2,704

Purchase of treasury shares(0)Change in ownership interestof parent due to transactions
with non-controlling interests
Increase/Decrease by changeof subsidiary’s financial
closing month190–

Net changes of items otherthan shareholders’ equity(240)(2,552)(888)(3,680)1,804(1,876)

Total changes of items during
period(240)(2,552)(888)(3,680)

1,804

711

Balance at end of current period

618

1,533

(549)

1,602

17,76247,068-9-

Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodConversion of convertiblebond-type bonds with
subscription rights to shares

Capital surplus

4,790

5,419

825

825

Retained earnings

Treasury shares

17,512(18)

Total shareholders’equity27,703

1,650

Dividends of surplus

(307)

(307)

Profit attributable to ownersof parent

4,035

4,035

Purchase of treasury shares–

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Increase/Decrease bychange of subsidiary’s
financial closing month

(88)

(88)

184

184

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

–
825

736

3,912

–

5,473

5,615

6,155

21,425(18)

33,177

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
periodConversion of convertiblebond-type bonds with
subscription rights to shares

618

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
1,533

(549)

Total
accumulated
othercomprehensive
income1,602

17,76247,0681,650

Dividends of surplus(307)

Profit attributable to ownersof parent

4,035

Purchase of treasury shares–

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Increase/Decrease bychange of subsidiary’s
financial closing month
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(88)

184
121

(1,262)16(1,124)(1,685)(2,809)121(1,262)16(1,124)(1,685)

2,663

740

270

(533)

477

16,07749,732- 10 -

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2016
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Loss (gain) on sales of investment securities
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 and equipment
Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
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- 11 -

Fiscal year ended
March 31, 2017

6,953
10,081
110
(5)
–

6,966
10,334
153
(5)
(2)

(145)

34

20

47

10

35

(102)
883
356

(98)
873
157

(437)

(536)

(959)
76

(36)
132

(3,224)(4,977)(364)(2,351)

3,213

2,998

(543)
15,924137(887)(3,032)
12,140

1,953
15,677133(863)(1,702)
13,245(19,318)
1,757
(211)
(30)
55
(61)
(17,810)(12,840)
123
(174)
(158)
3
(69)
(13,116)(Millions of yen)
Fiscal year ended
March 31, 2016
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
Proceeds from share issuance to non-controllingshareholders
Proceeds from sales and installment backs
Repayments of installment payables
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Proceeds from sales and leasebacks
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
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
Increase (decrease) in balance associated with the fiscal
year-end change of consolidated subsidiaries
Cash and cash equivalents at end of period- 12 -

Fiscal year ended
March 31, 2017

4,438
10,010(11,703)(0)(2,624)
15,730(11,075)
–

1,651

–

833
(256)
(307)
(597)
(676)
400

–
(419)
(307)
(1,253)
(797)
1,086

–

(1,210)

–
3,792

0
(870)

(274)

(261)

(2,151)
8,983(1,002)
6,831

–

(110)

6,831

5,719

(5) Notes to consolidated financial statements
Uncertainties of entity’s ability to continue as going concern
Not applicable.
Basis of presentation and significant accounting policies for preparation of consolidated financial
statements
1. Disclosure of scope of consolidation(1) Number of consolidated subsidiaries: Sixteen
F&P Mfg., Inc.
F&P America Mfg., Inc.
F.tech Philippines Mfg., Inc.
F.E.G. DE QUERETARO, S.A. DE C.V.
F.tech Zhongshan Inc.
F.tech R&D North America Inc.
F.tech Wuhan Inc.
Fukuda Engineering Co., Ltd.
Kyushu F.tech Inc.
F.tech Mfg. (Thailand) Ltd.
Reterra Co., Ltd.
F.tech R&D Philippines Inc.
F.tech R&D (Guangzhou) Inc.
F&P MFG.DE MEXICO S.A. DE C.V.
Yantai Fuyan Mould Co., Ltd.
PT. F.tech INDONESIA(2) Number of non-consolidated subsidiaries: One
Laguna Greenland Corp.
Reason for exclusion from scope of consolidation
The non-consolidated subsidiaries are small in scale and the amounts of their total assets, net sales,
profit (loss) (for the Company’s equity interest), retained earnings (for the Company’s equity
interest) and other financial statement items do not have a significant impact on the Company’s
consolidated financial statements.
2. Disclosure about application of equity method(1) Non-consolidated subsidiaries accounted for using the equity method
Not applicable.
(2) Number of associates accounted for using the equity method: FourJohnan Manufacturing Inc.
JOHNAN AMERICA, Inc.
JOHNAN F.TECH (THAILAND) LTD.
JOHNAN DE MEXICO, S.A. DE C.V.
(3) Number of non-consolidated subsidiaries not accounted for using the equity method: One
Laguna Greenland Corp.

- 13 -

Number of associates not accounted for using the equity method: Five
Progressive Tools & Components Pvt Ltd.
JOHNAN UK LTD.
PT. JFD INDONESIA
JOHNAN WUHAN INC.
Johnan Kyushu Manufacturing Inc.
Reason for exclusion from scope of equity method
The non-consolidated subsidiaries and associates that are not accounted for using the equity
method are excluded from the application of the equity method since such exclusion has no
significant impact on the Company’s consolidated financial statements in terms of profit (loss) (forthe Company’s equity interest), retained earnings (for the Company’s equity interest) and otherfinancial statement items, and overall they are of minor significance.
(4) The fiscal year ends of certain companies accounted for using the equity method are different from theconsolidated fiscal year end. In preparing the consolidated financial statements, the Company uses thefinancial statements of these companies as of their fiscal year end.
3. Disclosure about fiscal years, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, the fiscal year end of F.tech Philippines Mfg., Inc. and F.tech R&D
Philippines Inc. is January 31 and the fiscal year end of F.E.G. DE QUERETARO, S.A. DE C.V., F.tech
Zhongshan Inc., F.tech Wuhan Inc., Yantai Fuyan Mould Co., Ltd., F.tech R&D (Guangzhou) Inc., F&P
MFG.DE MEXICO S.A. DE C.V. and PT. F.tech INDONESIA is December 31.
In the preparation of the consolidated financial statements, the financial statements as of these dates areused. However, for major transactions that occurred between these fiscal year ends and the consolidated
fiscal year end, necessary adjustments are made in the consolidated financial statements.
(Change in fiscal years, etc. of consolidated subsidiaries)
In order to ensure more appropriate disclosure of consolidated financial information, from the current
fiscal year, the fiscal year end of F.tech Mfg. (Thailand) Ltd. was changed to March 31. As a result of thischange of accounts closing date, profit and loss of the relevant consolidated subsidiary after theconclusion of the previous fiscal year and before the beginning of the current fiscal year were directly
recorded in retained earnings.
4. Disclosure of accounting policies(1) Accounting policy for measuring significant assetsi) Securities
Available-for-sale securities (other securities)
Securities with a fair value
Stated at fair value based on market prices on the closing date of the accounting period.
(Valuation difference is stated as a component of net assets in the consolidated balance sheets,the cost of securities sold is calculated applying the moving-average method.)
Securities without a fair value
Stated at cost determined by the moving-average method.

- 14 -

ii) Derivatives
Stated at fair value.
iii) Inventories
Inventories of the Company and its domestic consolidated subsidiaries are stated at cost determinedby the average cost method (balance sheet amounts are determined based on the method of writing
down book value in accordance with decreased profitability). Inventories of foreign consolidated
subsidiaries are stated at the lower of cost or market, determined by the first-in, first-out method.
(2) Accounting policy for depreciation of significant assetsi) Property, plant and equipment (excluding leased assets)
Depreciated by the straight-line method.
However, some domestic consolidated subsidiaries adopt the declining balance method forbuildings acquired on or before March 31, 1998.
ii) Intangible assets (excluding leased assets)
Amortized by the straight-line method.
Software (for internal use) is amortized by the straight-line method over the usable period in the
Company (5 years).
iii) Leased assets
Depreciated by the straight-line method assuming the lease periods as useful lives without residual
value.
For finance lease transactions of the Company and its domestic consolidated subsidiaries that do
not transfer ownership and commenced on or before March 31, 2008, the accounting treatment
follows the method applicable to ordinary rental transactions.
(3) Accounting policy for significant provisionsi) Allowance for doubtful accounts
To prepare for losses from bad debts, an estimated uncollectible amount is provided either bymaking an estimation using the historical rate of credit loss in the case of general receivables, orbased on individual consideration of collectibility in the case of specific receivables such as highly
doubtful receivables.
ii) Provision for directors’ retirement benefits
At the Company and some subsidiaries, to prepare for the payment of directors’ retirement benefits,
the amount to be paid at the fiscal year end, based on the internal rules for directors’ retirement
benefits, is provided.
iii) Provision for directors’ bonuses
To prepare for the payment of directors’ bonuses, the amount expected to be paid at the current
fiscal year end is provided.
(4) Accounting method of retirement benefitsi) Methods of attributing estimated retirement benefits to accounting periods
When calculating retirement benefit obligations, the benefit formula method is used to attribute
estimated benefit amounts to periods of service until the fiscal year end.
ii) Amortization of actuarial gains and losses
Actuarial gains and losses are amortized beginning in the following fiscal years by the straight-line
method over a period which is equal to or less than the average remaining service period of
employees (mainly 5 years) at the time of occurrence.
(5) Translation basis of significant assets and liabilities denominated in foreign currencies
Receivables and payables denominated in foreign currencies are translated into Japanese yen at the
spot exchange rates prevailing at the consolidated fiscal year end, and the translation adjustment is- 15 -

recognized in the consolidated statements of income. Assets and liabilities of foreign consolidated
subsidiaries are translated into Japanese yen at the spot exchange rates as of the fiscal year end, andrevenues and expenses of foreign consolidated subsidiaries are translated into Japanese yen at the
average exchange rates. Translation adjustments are included in foreign currency translation
adjustment and non-controlling interests in net assets in the consolidated balance sheets.
(6) Accounting policy for goodwill
Goodwill and negative goodwill that were recognized on or before March 31, 2010 have beenamortized by the straight-line method over periods not exceeding 20 years based on the estimatedperiod during which their effect will be recognized for each investment.
(7) Scope of cash and cash equivalents in consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments thatare readily convertible to known amounts of cash and subject to insignificant risk of change in value
and due within three months from the date of acquisition.
(8) Other significant matters for preparing consolidated financial statements
Accounting policy for consumption taxes
Tax exclusive method is adopted.
Additional information
The Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016) has been
applied effective from the fiscal year ended March 31, 2017.

- 16 -

Segment information, etc.
1. Description of reportable segments
The reportable segments of the Company are components for which discrete financial information isavailable and whose operating results are regularly reviewed by the Board of Directors to makedecisions about resource allocation and assess their performance.
The Company is engaged in the manufacture and sale of auto parts. As of the end of the current fiscal
year, four companies including the Company in Japan as well as five local corporations in North
America and eight local corporations in Asia each conduct the business operations. These local
corporations, which are independent management units, formulate comprehensive strategies anddevelop business activities in each area.
For this reason, the Company consists of regional segments based on the manufacturing and sales
systems and has three reportable segments, namely Japan, North America and Asia.
2. Explanation of measurements of net sales, profit (loss), assets, liabilities, and other items for eachreportable segment
The accounting procedures for reportable segments are consistent with those stated in “Basis ofpresentation and significant accounting policies for preparation of consolidated financial statements.”
Profit of reportable segments is based on operating profit (before amortization of goodwill).
Transactions with other segments are based on prevailing market prices.
3. Disclosure of net sales, profit (loss), assets, liabilities, and other items for each reportable segment
Fiscal year ended March 31, 2016
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Transactions with other segments
Total

North America

Asia

Total

22,016
16,535

124,953
1,718

49,372
2,037

196,343
20,291

38,552

126,671

51,410216,635

Segment profit

381

4,675

2,069

7,126

Segment assets

57,39367,86540,306

165,564

Fiscal year ended March 31, 2017
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Transactions with other segments
Total

North America

Asia

Total

25,22914,713

120,433
1,774

52,2793,050

197,941
19,53839,943

122,207

55,329217,480

Segment profit

958

2,928

3,868

7,754

Segment assets

56,43872,614

41,257

17,031- 17 -

4. Differences between total amounts for reportable segments and amounts in the consolidated financial
statements and main details of these differences (matters relating to difference adjustments)(Millions of yen)
Fiscal year ended
March 31, 2016

Net sales

Fiscal year ended
March 31, 2017

Reportable segments total

216,635

217,480

Elimination of intersegment transactions(20,291)(19,538)

Net sales in the consolidated financial statements

196,343

197,941(Millions of yen)

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Reportable segments total

7,126

7,754

Elimination of intersegment transactions

(305)

281

Operating profit in the consolidated financial statements

6,821

8,035

AssetsFiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Profit(Millions of yen)

Reportable segments total

165,564

170,310

Elimination of intersegment transactions(27,571)(25,878)

(12)

(11)

137,980

144,420

Other adjustments
Total assets in the consolidated financial statements- 18 -

Per share information(Yen)
Fiscal year ended
March 31, 2016
Net assets per share

Fiscal year ended
March 31, 2017

1,908.40

2,012.06

Basic earnings per share

176.14261.01

Diluted earnings per share

144.81216.05(Note)

Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Basic earnings per share
Profit attributable to owners of parent (Millions of yen)

2,704

4,035

–

–

Profit attributable to owners of parent related tocommon shares(Millions of yen)

2,704

4,035

Average number of shares (Thousands of shares)

15,356

15,461––

Increase in number of common shares(Thousands of shares)

3,322

3,217

[Of the above, convertible bond-type bonds with
subscription rights to shares (Thousands of shares)][3,322][3,217]

Outline of potential shares that were not used in
calculating diluted earnings per share because they haveno dilutive effects––

Amounts not attributable to common shareholders(Millions of yen)

Diluted earnings per share
Adjustment on profit attributable to owners of parent(Millions of yen)

Significant events after reporting period
Not applicable.

- 19 -

5. Other information(1) Changes in Officers
1) Changes in representatives
Not applicable.
2) Changes in other officers• New candidates for directors scheduled to be appointed
Director & Managing Officer

Shigeharu Tobita

Director (Outside Director)

Naoko Tomono• Retiring director
Current position:
Director & Senior Managing
OfficerCurrent position:
Executive Senior Advisor
Current position:
Director & Adviser(Current position: Managing Officer andGeneral Manager of Corporate Planning
Office)(Current position: Partner of T&T Partners
Law Office, Conciliation Commissioner,
Tokyo Family Court and Outside Directorof Taisei Lamick Co., Ltd.)

Masao Toyoda
Akihide Fukuda
Tsuguo Kimura• New candidate for auditor scheduled to be appointed
Standing Statutory Auditor

Masao Toyoda• Retiring auditor
Current position:
Standing Statutory Auditor

Keiji Umezu

3) Scheduled date of assuming office
June 23, 2017- 20 -(Current position: Director & Senior
Managing Officer)