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, 2021
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN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.
1. Qualitative information regarding financial results for the period under review
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; hereafter,“Revenue Recognition Accounting Standard”) and other standards have been applied since the start of
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 nine months ended December 31, 2021 showed signs of gradual recovery
following the rollout of coronavirus vaccination programs, despite the still severe impact of thepandemic. However, the rise of the Omicron variant, which is said to be highly infectious, is causing aresurgence of the outbreak, and the outlook remains uncertain.
In the automotive industry, although the effect of suspended factory operations in North America,
Europe, and the Asia region due to the novel coronavirus in the first quarter of the previous year isabating, production levels have failed to return to those seen in the same period of the previous year due
to ongoing disruptions to the supply chain, including the global shortage of semiconductors, and fears of
the impact of soaring raw material prices.
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,” we have been working to obtain new business in order to provide ourcustomers with new value. This resulted in new orders for six models from five automakers in Japan andNorth America, and is expected to contribute to earnings from the next fiscal year onwards. In addition,
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 invarious improvement activities, and conducting cost reductions.
As a result, during the nine months under review, net sales increased by 2.4% year on year to 133,787
million yen, operating loss was 2,500 million yen (an operating profit of 1,245 million yen in the same
period of the previous year), ordinary loss was 2,760 million yen (an ordinary profit of 320 million yen
in the same period of the previous year), and loss attributable to owners of parent was 3,156 million yen(loss attributable to owners of parent of 2,090 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 decreased due to the continued impact of the novel
coronavirus infection and disruptions to the supply chain, including the shortage of semiconductors, net
sales decreased by 1.5% year on year to 14,592 million yen. In terms of profit and loss, operating profit
was 310 million yen (an operating loss of 106 million yen in the same period of the previous year) due
mainly to increased sales of products to overseas bases and cost reductions.
(North America)
The effect of suspended factory operations due to the impact of the novel coronavirus in the first quarterof the previous fiscal year is abating. However, disruptions to the supply chain, including the shortage ofsemiconductors, had a major impact on production by our major customers, and intermittent productionsuspensions or reductions at factories continued over a long period of time. As a result, production bycustomers declined more than during the pandemic in the same period of the previous year, and net sales
fell by 3.6% year on year to 77,163 million yen while operating loss was 4,226 million yen (an operating
loss of 1,032 million yen in the same period of the previous year).
(Asia)
Production reductions by major customers due to disruptions to the supply chain, including the shortageof semiconductors, continued. However, net sales increased by 17.4% year on year to 42,031 million yen
as the effect of suspended factory operations, due to the impact of the novel coronavirus in the firstquarter of the previous year, abated. In terms of profit and loss, operating profit decreased by 36.6% year
on year to 1,712 million yen, due mainly to increases in outsourcing expenses and transportation costs.

-1-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.
(2) Information regarding financial position
As of December 31, 2021, total assets increased by 10,874 million yen compared with the end of theprevious fiscal year to 147,589 million yen, reflecting increases in cash and deposits, inventories, andconstruction in progress, despite a decrease in notes and accounts receivable - trade.
Liabilities increased by 12,574 million yen from the end of the previous fiscal year to 94,257 million
yen, reflecting increases in short-term loans payable and long-term loans payable, despite a decrease innotes and accounts payable - trade.
Net assets decreased by 1,700 million yen to 53,332 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, 2022
announced on November 4, 2021.

-2-

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.
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
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 March 31, 2021

As of December 31, 2021

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

6,126
24,366
11,2095,782
12,2333,770
63,48917,14732,8809,034
10,95070,012320

16,876
34,046
13,733
10,47875,135
293

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

6,980
1,690
8,671
84,100147,589

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.
(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-4-

As of March 31, 2021

As of December 31, 2021

19,772
20,872
9,884
658
31
8,182
59,401

18,21733,748
10,187347
54
8,765
71,32016,943
57
791
44
4,443
22,28081,682

18,285
49
888
40
3,672
22,936
94,257

6,790
6,733
26,559(64)
40,0196,790
6,733
23,239(62)
36,700

490

452

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

1,965
46
2,463
14,16753,332
147,589

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.
(2)

Consolidated statements of income and comprehensive income(Millions of yen)
Nine months ended
December 31, 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
methodForeign exchange gains
Other
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
Gain on cancellation of leases
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
Loss
Profit attributable toLoss attributable to owners of parent
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-5-

Nine months ended
December 31, 2021

130,701
119,140
11,560
10,314
1,245

133,787
125,721
8,065
10,566(2,500)

48
30

50
60

61

-

148
288

72
167
350

608

552

-

22

552
51
1,213
320

36
610
(2,760)

13
1,572
6
1,592

83
4
84
172

12
66
2,558
2,638
(724)
1,349
252
1,601
(2,326)8
55
63(2,651)
1,175
(313)
861
(3,512)(2,090)(235)(3,156)
(355)

141
(5)
141

(25)
3,012
(82)

15

23

293
(2,032)

2,928
(584)

(1,987)

(979)

(45)

394

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.
(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 repurchase obligation
has been changed, thereby such transactions are recognized as financial transactions, and ending inventory of
supplied articles remaining at fee-paying suppliers are recognized as “Work in process,” 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 Company andits domestic consolidated subsidiaries elected to apply the transitional measures set forth in the proviso of
Paragraph 84 of the Revenue Recognition Accounting Standard, thereby the cumulative effect ofretrospectively applying the new accounting standards for the periods prior to the start of the first quarter
ended June 30, 2021 is added to or subtracted from retained earnings at the start of the first quarter, 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 nine months ended December 31, 2021 both increased by 518
million yen. There is no impact on the balance of retained earnings at the start of the 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 a minus in “Costof sales” in the consolidated statement of income for the nine months ended December 31, 2021, 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 ninemonths ended December 31, 2021 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 the firstquarter ended June 30, 2021, and pursuant to the transitional measures set forth in Paragraph 19 of the Fair
Value Measurement Accounting Standard and in Paragraph 44-2 of the Accounting Standard for Financial
Instruments (ASBJ Statement No. 10, July 4, 2019), new accounting policies stipulated by the Fair Value
Measurement Accounting Standard will be applied going forward. The application has no impact on thequarterly consolidated financial statements.
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 third quarter ended December 31, 2021,
and next by multiplying the quarterly profit (loss) before income taxes by such estimated effective tax
rate.

-6-

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.
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.
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 751 million yen and selling,
general and administrative expenses of 17 million yen).

-7-

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.
Segment information, etc.
Segment information
I. Nine months ended December 31, 2020
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Intersegment sales and transfers
Total
Segment profit (loss)

North America

Asia

Total

14,821
10,47580,073896

35,806
2,004

130,701
13,37625,29680,97037,810144,078(106)(1,032)

2,701

1,562

2. 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)
ProfitAmount1,562

Reportable segments total
Elimination of intersegment transactions(317)

Operating profit in the consolidated statements ofincome and comprehensive income

1,245

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

-8-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.
II. Nine months ended December 31, 2021
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Intersegment sales and transfers
Total
Segment profit (loss)

North America

Asia

Total

14,592
10,803

77,163
1,033

42,031
2,088

133,787
13,92625,39578,197

44,120147,713310(4,226)

1,712(2,203)

2. 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)
ProfitAmount(2,203)

Reportable segments total
Elimination of intersegment transactions(297)

Operating profit (loss) in the consolidated
statements of income and comprehensive income(2,500)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 nine months ended December
31, 2021 increased by 518 million yen as compared to the previous methods.
Significant events after reporting period
Not applicable.

-9-