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, 2023
<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 nine months ended December 31, 2023 continued to face an uncertain outlookwith multiple concerns due to the impact of the protracted situation in Ukraine, increased tension in theMiddle East, persistently high resource and energy prices, and the tightening of monetary policy inEurope and the U.S., as well as the economic slowdown in China. In the automotive industry, although
the semiconductor shortage is easing, the business environment remains challenging due to the tightsupply-demand balance for labor in the U.S. and the late start of Japanese automakers in the shift to EVs
in Chinese market.
In this business environment, the Group launched the 15th medium-term management plan in April 2023.
While maintaining the foundations of the “Back to Basics” and “Challenge for New” policies, the Grouphas established a global policy of “We contribute to society by improving earning power and achieving
sustainable growth” under the slogan of “Pursuing the essence of Monozukuri (manufacturing).” Atregional sites and headquarters, the Group has been working on a company-wide basis to achieve design,development and production that can meet customer needs and to provide new value through the pursuitof the essence of Monozukuri. As a result, the Group received many inquiries about new models fromvarious customers, which led to orders. In particular, the Group was successful in flexibly responding toemerging EV manufacturers’ needs to start up mass production lines for new models in the shortest
amount of time to date. The Group was able to further increase its corporate value, including receiving
recognition and awards for production and quality from a number of customers.
As a result of these activities, during the nine months ended December 31, 2023, net sales increased by
13.2% year on year to 215,055 million yen, operating profit increased by 414.9% year on year to 528
million yen, ordinary loss was 52 million yen (ordinary profit of 320 million yen in the same period of
the previous year), and loss attributable to owners of parent was 489 million yen (profit attributable toowners of parent of 700 million yen in the same period of the previous year).
Profit attributable to owners of the parent for the same period of the previous year has been revised from
198 million yen to 700 million yen for comparison. This is because the accounting amount of gain on
negative goodwill resulting from the conversion of India Steel Summit Private Limited into a subsidiary
was tentatively 765 million yen in the same period of the previous year, but was fixed at 1,237 million
yen at the end of the previous fiscal year, and this amount was reflected in the same period of theprevious year.
Operating results by segment are as follows.
(Japan)Net sales increased by 39.4% year on year to 22,477 million yen due partly to a trend toward an increasein production volume at major customers resulting from improvement in semiconductor shortages andthe effect of mass production of products ordered by new customers. In terms of profit and loss,operating income rose by 137.7% year on year to 1,118 million yen, due to the effect of higher net sales.
(North America)
Net sales increased by 22.9% year on year to 148,780 million yen due partly to a trend toward anincrease in production volume at major customers resulting from improvement in semiconductor
shortages, the effect of mass production of newly ordered parts, and the impact of a weaker yen. In termsof profit and loss, operating loss was 1,219 million yen (an operating loss of 2,323 million yen in thesame period of the previous year), due partly to continued impact from rising labor costs amid the tightlabor market in the U.S. However, the Group returned to profitability in the third quarter (from Octoberto December) of the current fiscal year due partly to the effect of higher net sales and improvement of theproduction characteristics.
(Asia)
While the production volume of major customers remained solid in Asian countries excluding theChinese region, net sales decreased by 17.1% year on year to 43,797 million yen due to the production
cuts of major customers in the Chinese region. In terms of profit and loss, operating profit decreased by
69.6% year on year to 562 million yen, due to a decrease in production volume.

-1-

(2) Information regarding financial position
As of December 31, 2023, total assets increased by 12,316 million yen compared with the end of theprevious fiscal year to 188,454 million yen, reflecting increases in cash and deposits and machinery,equipment and vehicles. Liabilities increased by 8,073 million yen from the end of the previous fiscal
year to 119,453 million yen, reflecting increases in notes and accounts payable - trade, and short-termloans payable. Net assets increased by 4,243 million yen to 69,000 million yen, reflecting an increase inforeign currency translation adjustment.
(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, 2024
announced on November 7, 2023.

-2-2. Quarterly consolidated financial statements and significant notes thereto(1)Consolidated balance sheets(Millions of yen)
As of March 31, 2023

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-3-

As of December 31, 2023

5,491
37,806
5,296
7,632
12,702
3,729(55)
72,603

10,53436,755
6,128
8,986
12,915
4,048(48)
79,32018,88445,36313,00515,03092,284285

21,884
51,216
7,194
14,83095,125
321

7,464
3,500
10,965103,534
176,137

8,7704,916
13,686109,133
188,454

(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
Deferred gains or losses on hedges
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, 2023

As of December 31, 2023

24,16927,832
12,995942
85
9,520
75,54425,00238,357
13,446391
55
11,012
88,26529,908
53
1,003
33
4,836
35,836111,380

25,162
58
1,068
29
4,869
31,188
119,453

6,790
6,733
27,979(60)
41,443

6,790
6,404
27,116(79)
40,231

543

727

386
7,731
(65)
8,595
14,71764,756
176,137450
12,110(34)
13,254
15,51469,000188,454(2)Consolidated statements of income and comprehensive income(Millions of yen)
Nine months ended
December 31, 2022

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
methodForeign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
OtherTotal non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on change in equity
Gain on sales of non-current assets
Gain on negative goodwill
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable toProfit (loss) attributable to owners of parentProfit (loss) attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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 noncontrolling interests-5-Nine months ended
December 31, 2023

189,986
177,592
12,393
12,290102

215,055
200,800
14,255
13,726
528

63
103

90
69

79

424

968
196
1,410

772
242
1,600

1,172
20
1,193
320

2,046
134
2,180
(52)

25
1,237
1,262

157
12
169

13
27
40
1,542
1,478
(444)
1,034
508

4
3
8
109
2,057
(1,104)
953
(843)

700
(191)

(489)
(354)

(125)
461
6,137
(1)

266
65
5,222
10

261

236

6,733
7,241

5,801
4,958

6,421

4,169

820

788

(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 the scope of consolidation and equity method application(Significant changes in the scope of consolidation)
F-Tech North America Inc., a newly established company, is included in the scope of consolidation fromthe first quarter of the current fiscal year.
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, 2023,
and next by multiplying the quarterly profit (loss) before income taxes by such estimated effective tax
rate.
Segment information, etc.
Segment information
I. Nine months ended December 31, 2022
1. Disclosure of net sales and profit (loss) 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

16,123
12,119121,027878

52,834
1,592

189,986
14,58928,243

121,906

54,426

204,575

470(2,323)

1,851

(1)

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)
ProfitAmountReportable segments total
Elimination of intersegment transactions

(1)
104

Operating profit in the consolidated statements ofincome and comprehensive income

102

3. Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment(Significant gain on negative goodwill)
A gain on negative goodwill of 1,237 million yen was recorded in the first quarter ended June 30, 2022
as a result of acquiring shares in India Steel Summit Private Limited to make it a consolidated
subsidiary. The amount of gain on negative goodwill is disclosed based on the amount after asignificant revision of the initial allocation of acquisition cost due to the finalization of the provisional
accounting treatment for the business combination.

-6-II. Nine months ended December 31, 2023
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Intersegment sales and transfers
TotalSegment profit (loss)

North America

Total

Asia

22,477
7,535

148,780
1,165

43,7972,039

215,055
10,73930,013

149,945

45,837

225,795

1,118(1,219)

562

462

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)
ProfitAmountReportable segments total
Elimination of intersegment transactions

46266

Operating profit in the consolidated statements ofincome and comprehensive income

528

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

-7-Business combinations, etc.
Transactions under common control, etc.
(Acquisition of additional shares of a consolidated subsidiary)
On December 21, 2023, the Company decided on and implemented an acquisition of shares of F&P America
Mfg., Inc., a consolidated subsidiary of the Company, through the contribution of debt as an investment inkind (debt-equity swap).
(1) Outline of the transaction
1) Name and business description of the company involved in the business combination
Name of the company:
F&P America Mfg., Inc.
Description of business: Manufacture and sale of auto parts and dies, equipment, tools, etc. forthese parts
2) Date of the business combination
December 21, 2023
3) Legal form of the business combination
Acquisition of shares through the contribution of debt as an investment in kind (debt-equity swap)4) Name of the company after the business combination
No change.
5) Other matters relating to the outline of the transaction
The Company has contributed to a capital increase for F&P America Mfg., Inc. for the purpose ofstabilizing its financial position by way of a debt-equity swap.
(2) Outline of the accounting treatment applied
The transaction was accounted for as a transaction with non-controlling shareholders, which falls
under the category of transactions under common control, etc., in accordance with the “AccountingStandard for Business Combinations” and the “Implementation Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures.”(3) Matters concerning the acquisition of additional shares of a subsidiary
Acquisition cost of the acquired company and breakdown by type ofconsideration
Aggregate face amount of debt subject toConsideration for acquisition
in-kind contribution
Acquisition cost
Significant events after reporting period
Not applicable.

-8-

46 million U.S. dollars(6,601 million yen)
46 million U.S. dollars(6,601 million yen)