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 Nine Months Ended December 31, 2016
<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
An overview of the global economy in the nine months ended December 31, 2016 is as follows. In theUnited States, consumer spending has been firm, due to an improved employment environment, but there
are concerns regarding the uncertainty of the policies of the new administration. In Europe, the economy
remained firm due to monetary easing and a recovery in emerging economies. Economic growth has
continued in China, albeit at a slower pace, owing to policies that included an increase in public sector
investment and a tax reduction on compact cars. Other emerging countries are in a trend of economic
slowdown, but some are showing signs of bottoming out.
In the Japanese economy, various government measures led to improvements in the employment
environment, although economic deceleration in emerging markets, coupled with yen appreciation,
caused weakness in production and exports.
On the other hand, in the automotive industry, automobile sales in North America have been firm andauto sales in China are increasing owing to the tax reduction on compact cars. In Japan, auto sales wereflat as a result of stagnant sales in the light and compact car market.
Under these circumstances, the Group pushed ahead with expanding sales on a global basis under thecorporate policy “To become a chassis system manufacturer with overwhelming competitive strength,”outlined in its 12th Mid-Term Plan, which started in April 2014.
The operating results for the Group during the nine months under review are as follows. The Groupbenefited mainly from a recovery in production at major customers in the Japanese market and favorable
sales for customers in the Chinese market. In detail, net sales decreased 1.8% year on year to 141,530
million yen, operating income rose 31.9% year on year to 5,888 million yen, ordinary income rose 17.0%
year on year to 4,988 million yen and profit attributable to owners of parent rose 82.1% year on year to2,396 million yen.
Operating results by segment are as follows.
(Japan)The recovery in production volume of the major customers of the Company, along with an increase in thenumber of export automobiles, led to net sales rising by 17.2% year on year to 18,700 million yen and anoperating income of 866 million yen (compared with an operating loss of 599 million yen in the same
period of the previous fiscal year).
(North America)
In the North American market, although firm automobile sales continued, the effect of yen appreciation
on foreign exchange, increased labor costs due to the tight labor market and other factors led to net sales
falling by 7.8% year on year to 85,811 million yen. The segment recorded an operating income of 2,272
million yen, down 35.8% year on year.
(Asia)
Sales to major customers were favorable, and sales to new customers increased in the Chinese market.
Net sales rose 5.4% year on year to 37,018 million yen and operating income rose 123.5% year on year
to 2,522 million yen.
(2) Information regarding financial position
As of December 31, 2016, total assets decreased by 3,586 million yen compared with the end of theprevious fiscal year to 134,393 million yen, mainly reflecting decreases in cash and deposits, notes andaccounts receivable - trade, buildings and structures and construction in progress.
Liabilities decreased by 1,315 million yen from the end of the previous fiscal year to 89,596 million yen
mainly reflecting decreases in notes and accounts payable - trade and short-term loans payable.
Net assets decreased by 2,271 million yen from the end of the previous fiscal year to 44,797 million yen
mainly reflecting decreases in foreign currency translation adjustment and non-controlling interests.

-1-(3) Information regarding revisions to consolidated earnings forecasts
Taking recent performance trends into consideration, the Company has revised its consolidated earnings
forecasts, which were announced on November 7, 2016, as described below.
Revisions to consolidated earnings forecasts for the fiscal year ending March 31, 2017 (From April 1,2016 to March 31, 2017)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perincomeincometo owners ofshare (Yen)parentPrevious forecasts (A)183,000
6,500
5,450
2,350
153.03Current forecasts (B)192,000
7,400
6,400
3,000
195.31
Difference (B-A)
9,000
900
950
650
Difference (%)
4.9
13.8
17.4
27.7
(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 revisions
The above-stated revisions to the Company’s consolidated earnings forecasts for the full fiscal year
ending March 31, 2017 are mainly attributable to the impact of foreign exchange trends and increased
production in China. Compared with previous forecasts, the current forecasts therefore show net sales,
operating income, ordinary income, and profit attributable to owners of parent as higher.
Average exchange rates for the fiscal year are assumed at 108.00 yen to the U.S. dollar.
Note: The above-stated earnings forecasts are based on information currently available to the Company
and are considered to be rational on this basis. However, as they include risks and uncertainties
which are subject to various future events, actual results may differ from forecasts.
2. Matters regarding summary information (Notes)(1) Application of special accounting for preparing quarterly consolidated financial statements
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 third quarter ended December 31,
2016, and next by multiplying the quarterly profit (loss) before income taxes by such estimated effective
tax rate.
(2) Additional information
The Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016) has
been applied from the first quarter ended June 30, 2016.

-2-

3. Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of December 31, 2016

6,831
28,930
4,779
3,942
8,069
4,855
57,4095,723
25,209
5,484
4,963
8,348
4,906
54,636

19,64829,985
13,423
10,35273,410671

18,30231,012
12,203
10,86572,383
536

4,880
1,608
–
6,489
80,570137,980

5,475
1,379
(17)
6,838
79,757
134,393

18,69022,589
11,576499
99
9,036
62,492

17,435
18,695
10,662332
95
8,934
56,1564,000
18,597
233
954
72
4,561
28,41990,911

3,900
23,575
236
931
68
4,727
33,44089,596

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
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
Bonds payable
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Negative goodwill
Other
Total non-current liabilities
Total liabilities-3-

(Millions of yen)
As of March 31, 2016
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive incomeValuation 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 December 31, 2016

4,790
5,419
17,512(18)
27,703

4,840
5,380
19,785(18)
29,988

618

812

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

(918)
(501)
(607)
15,41644,797
134,393

(2) Consolidated statements of income and comprehensive income(Millions of yen)
Nine months endedDecember 31, 2015
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
methodOther
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
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-5-

Nine months ended
December 31, 2016

144,145
128,064
16,08011,616
4,463

141,530
123,849
17,681
11,792
5,888

37
39

41
42

302

371

141
521

120
576

654
38
28
721
4,263

640
808
27
1,476
4,988

155
–
155

29
2
32

4
63–
67
4,352
1,601
(12)
1,588
2,763

132
152
186
4,835
1,211
280
1,492
3,342

1,316
1,447

2,396
946

(6)
(2,042)(71)

112(3,320)
52

(32)

(50)

(2,153)610(3,206)
136

(60)

186

670

(50)

(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.
Segment information, etc.
Segment information
I.
Nine months ended December 31, 2015
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 (loss)

2.

North America

Total

15,961
9,702

93,067
1,164

35,116
1,488

144,145
12,35425,663

94,23136,604

156,499

(599)

3,538

1,128

4,067

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

4,067

Elimination of intersegment transactions

396

Operating income in the consolidated statements ofincome and comprehensive income

3.

Asia

4,463

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

II. Nine months ended December 31, 2016
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

Asia

Total

18,70010,98385,811
1,275

37,0182,113

141,530
14,372

29,68387,087

39,132

155,903

866

2,272

2,522

5,661

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

5,661

Elimination of intersegment transactions

227

Operating income in the consolidated statements ofincome and comprehensive income

5,888

-6-

3.

Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment(significant impairment loss on non-current assets)(Millions of yen)Japan
Impairment loss

North America
53

70

Significant events after reporting period
Not applicable.

-7-

Unallocatedamounts andelimination

Asia28–Total152