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, 2019
<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 global economy during the fiscal year ended March 31, 2019 has continued a recovery trend overall.
The Japanese economy has continued a moderate recovery supported mainly by a favorable employment
environment. Overseas, the economy in the United States remained robust, backed by a favorable
employment and income environment and tax breaks. While in China, a slowdown in the economy
became clear due to the effect of trade frictions between the United States and China, among otherreasons. The economies of other regions in Asia remained firm.
In the automotive industry, in Japan, while sales were strong for light vehicles, the number of registeredvehicles declined. In North America, sales of passenger cars declined, while sales of compact trucks wererobust. In China, a slowdown became clear, due to factors such as a decrease in total sales volume. Sales
remained stable overall in other Asian regions.
Under these circumstances, the Group has been working to provide its customers with new value, and has
made efforts to increase orders in accordance with the basic policies of “Back to Basics” and “Challenge
for New” outlined in the 13th Mid-term plan.
The operating results for the Group during the fiscal year under review are as follows. Although there
were positive factors such as mass production impact from newly awarded products in the North
American market, the impairment loss of non-current assets (of 1,958 million yen) at F&P America Mfg.,
Inc. (a consolidated subsidiary located in Ohio, United States) was booked primarily due to theinformation of production volume reduction at a major customer and the improvement activities being
not fully implemented yet, which affected the performance of the Group. Net sales rose by 4.1% year on
year to 235,361 million yen, operating profit decreased by 4.0% year on year to 6,580 million yen,ordinary profit increased by 0.7% year on year to 5,968 million yen, and profit attributable to owners ofparent decreased by 39.6% to 2,844 million yen.
Operating results by segment are as follows.
(Japan)Favorable sales due to an increase in production volumes of the major customers led to net sales risingby 14.6% year on year to 33,001 million yen. However, the segment recorded an operating profit of 921
million yen, down by 47.2% year on year due to a decrease in tooling sales for overseas groupcompanies.
(North America)
Net sales rose by 5.0% year on year to 136,450 million yen primarily due to the contribution of the newly
awarded contracts. The segment recorded an operating loss of 54 million yen due to the improvement
activities at F&P America Mfg., Inc. (Ohio, Unites States) being not fully implemented yet. However,compared to the previous fiscal year, the fiscal year ended March 31, 2019 saw a recovery mainly as aresult of initiatives to improve the production efficiency and reduce costs (an operating loss of 1,878
million yen was recorded in the same period of previous year).
(Asia)
Due to weak sales mainly to major customers, net sales decreased by 2.2% year on year to 65,909 million
yen and operating profit decreased by 21.1% year on year to 5,275 million yen.
Outlook for the next fiscal year
As for the next fiscal year's outlook, there are concerns about circumstances of the trade issues led by thetrade frictions between the United States and China in the global economy, which cloud prospects for the
economy. Under these circumstances, although some benefit can be expected from streamlined
operations mainly at the plants in North America, the changes in customer needs in the North American
market have caused sales of sedan-type vehicles to weaken, and automobile demand in the Japanese andChinese markets is forecasted to decrease.
Based on the above, as the outlook for consolidated results for the fiscal year ending March 31, 2020
(April 1, 2019 to March 31, 2020), we predict net sales of 218,000 million yen (down 7.4% year onyear), operating profit of 6,000 million yen (down 8.8%), ordinary profit of 5,500 million yen (down
7.9%), and profit attributable to owners of parent of 2,500 million yen (down 12.1%).
Exchange rates are assumed at 107.00 yen to the U.S. dollar.
-1-(2) Analysis regarding financial position
1) Assets, liabilities and net assets
As of March 31, 2019, total assets decreased by 13,416 million yen compared with the end of theprevious fiscal year to 137,010 million yen, reflecting decreases in notes and accounts receivable - trade,machinery, equipment and vehicles, and other items.
Liabilities decreased by 14,195 million yen from the end of the previous fiscal year to 80,179 million yen
reflecting decreases in short-term loans payable, accounts payable - other, long-term loans payable, andother items.
Net assets increased by 779 million yen to 56,830 million yen reflecting increases in retained earnings
and other items.
2) Cash flows
As of March 31, 2019, cash and cash equivalents increased by 1,319 million yen compared with the endof the previous fiscal year to 7,191 million yen (up 22.5% 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 23,141 million yen. The main factors were 3,943
million yen in profit before income taxes, 11,719 million yen in depreciation, a decrease in notes andaccounts receivable - trade of 5,017 million yen, a decrease in inventories of 1,719 million yen, and anincrease in notes and accounts payable - trade of 838 million yen.
Compared with the previous fiscal year, cash flows from operating activities changed from 10,616
million yen provided to 23,141 million yen provided. This was mainly due to decreases in notes andaccounts receivable - trade and inventories.
(Cash flows from investing activities)
Net cash used in investing activities was 6,820 million yen. The main factor was 6,757 million yen inpurchase of property, plant and equipment.
Compared with the previous fiscal year, cash flows from investing activities changed from 12,683
million yen used to 6,820 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 in financing activities amounted to 14,850 million yen. The main factor was 13,861
million yen in repayments of long-term loans payable.
Compared with the previous fiscal year, cash flows from financing activities changed from 2,409 million
yen provided to 14,850 million yen used. This was due to a decrease in proceeds from long-term loans
payable, a decrease in short-term loans payable, and an increase in repayments of long-term loans
payable.
(Reference) Transition of cash flow indicators
61st term
Fiscal year ended
March 31, 2016

62nd term
Fiscal year ended
March 31, 2017

63rd term
Fiscal year ended
March 31, 2018

64th term
Fiscal year ended
March 31, 2019

Equity ratio (%)

21.2

23.3

26.7

30.5

Market value-based equity ratio (%)

11.9

16.4

16.4

12.2

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

4.7

4.4

5.5

2.0

Interest coverage ratio (times)

13.7

15.3

9.2

19.0

(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.

-2-* 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, the year-end dividend will be 10 yen per share and the interim dividend was
10 yen per share, which will lead to annual dividends of 20 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.

-3-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.

-4-3. 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
Dies and tools, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
SoftwareRight of using facilities
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of March 31, 2018

As of March 31, 2019

5,871
39,209
5,406
4,740
9,321
4,139
68,6897,191
33,667
4,450
3,999
9,277
2,866
61,45318,01039,333
2,428
5,928
544
5,094
1,658
72,99816,096
36,115
2,110
5,892
640
3,520
2,014
66,392

359
38
397

304
38
342

6,240
220
36
1,026
832
(13)
8,341
81,737150,426

6,255
218
135
1,434
790
(12)
8,822
75,556
137,010(Millions of yen)

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
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-6-

As of March 31, 2018

As of March 31, 2019

22,32019,391
13,454
495
791
3,693
105
98
4,898
65,25022,83812,64912,660
648
390
2,715
137
64
4,895
57,002

25,348
223
2,058
99
990
324
61
17
29,123
94,374

19,728
153
2,080
106
920
112
56
18
23,17680,1796,790
7,222
25,662(18)
39,656

6,790
7,222
28,133(18)
42,127

792

467

168
(445)
515
15,87956,051
150,426

(418)
(331)
(281)
14,98556,830137,010(2)Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2018

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
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-7-

Fiscal year ended
March 31, 2019

226,060
201,835
24,225
17,3686,856

235,361
212,007
23,353
16,772
6,580

66
43

88
53

456

398

208
774

322
863

1,136
417
152
1,706
5,924

1,207
180
86
1,475
5,968

45
45

15
15

2
59
–
62
5,908
1,609
(1,007)
601
5,307

19
63
1,958
2,041
3,943
1,775
(552)
1,223
2,720

4,709
597

2,844
(124)

85
(152)
83

(216)
(817)
111

(13)

(106)

2
5,309

(1,029)
1,691

4,747

2,047

562

(356)

(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodConversion of convertiblebond-type bonds withshare acquisition rights

Capital stock

Capital surplus

5,615

6,155

1,175

1,175

Retained earnings

Treasury shares

21,425(18)

Total shareholders’equity33,1772,350

Dividends of surplus

(471)

(471)

Profit attributable toowners of parent

4,709

4,709

Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(0)

(0)

(107)

(107)

–
1,175

1,067

4,237

(0)

6,479

6,790

7,222

25,662(18)

39,656

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period
Changes of items during
periodConversion of convertiblebond-type bonds withshare acquisition rights

740

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

270

(533)

Total accumulated
othercomprehensive
income477

16,07749,7322,350

Dividends of surplus(471)

Profit attributable toowners of parent

4,709

Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(0)
(107)

52

(102)

87

37

(197)

(160)

52

(102)

87

37

(197)

6,319

792

168

(445)

515

15,87956,051-8-

Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodConversion of convertiblebond-type bonds withshare acquisition rights

Capital stock

Capital surplus

6,790

7,222

–

–

Retained earnings

Treasury shares

25,662(18)

Total shareholders’equity39,656–

Dividends of surplus

(374)

(374)

Profit attributable toowners of parent

2,844

2,844

Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(0)

(0)

–

–

–
–

–

2,470

(0)

2,470

6,790

7,222

28,133(18)

42,127

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period
Changes of items during
periodConversion of convertiblebond-type bonds withshare acquisition rights

792

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

168

(445)

Total accumulated
othercomprehensive
income515

15,87956,051–Dividends of surplus(374)

Profit attributable toowners of parent

2,844

Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(0)
–

(325)

(586)

114

(797)

(894)

(1,691)

(325)

(586)

114

(797)

(894)

779

467

(418)

(331)

(281)

14,98556,830-9-

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
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 loss (profit) 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
Other, net
Net cash provided by (used in) investing activities
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
Repayments of installment payables
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Proceeds from sale and leasebacks
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- 10 -

Fiscal year ended
March 31, 2019

5,908
11,666–(5)

3,943
11,719
1,958
(5)

79

(40)

(180)

6

(35)

(34)

(109)
1,136
184

(142)
1,207
164

(456)

(398)

(43)
59

3
63

(6,149)

5,017

96

1,719

1,177

838

(293)
13,036146(1,141)(1,424)
10,616(769)
25,252179(1,219)(1,071)
23,141(12,641)
92
(95)
(34)
(4)
(12,683)(6,757)
100
(94)
(38)
(30)
(6,820)(622)
16,977(11,683)
(0)
(444)
(471)
(868)
(891)
413
2,409

(6,966)
7,171(13,861)
(0)
(306)
(377)
(537)
(840)
867
(14,850)

(190)

(150)

152
5,719
5,871

1,319
5,871
7,191

(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: Two
Laguna Greenland Corp.
F.tech Automotive Components Private Limited
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: Two
Laguna Greenland Corp.
- 11 -

F.tech Automotive Components Private Limited
Number of associates not accounted for using the equity method: Six
Progressive Tools & Components Pvt Ltd.
JOHNAN UK LTD.
PT. JFD INDONESIA
JOHNAN WUHAN INC.
Johnan Kyushu Manufacturing Inc.
Johnan Foshan 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.
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.
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.

- 12 -

(2) Accounting policy for depreciation of significant assetsi) Property, plant and equipment (excluding leased assets)
Depreciated by the straight-line method.
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
Leased assets relating to finance lease transactions that do not transfer ownership are depreciatedby the straight-line method assuming the lease periods as useful lives without residual value.
(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.
iii) Application of simplified method for small businesses
In calculating net defined benefit liability, certain consolidated subsidiaries apply the simplified
method in which the net defined benefit liability and retirement benefit costs are deemed to be theamount of retirement benefits to be paid in cases where all eligible employees retired on a
voluntary basis at the fiscal year-end date.
(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 isrecognized 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.

- 13 -

(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.

- 14 -

Segment information, etc.
Segment information
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).
Intersegment sales and transfers 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, 2018
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Intersegment sales and transfers
Total

North America

Asia

Total

28,795
16,779129,904
1,489

67,3603,177

226,060
21,44645,574

131,393

70,538247,506

Segment profit (loss)

1,744(1,878)

6,684

6,549

Segment assets

56,04975,95045,240177,241

Fiscal year ended March 31, 2019
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Intersegment sales and transfers
Total
Segment profit (loss)
Segment assets

North America

Asia

Total

33,001
11,645

136,450
1,778

65,9093,410

235,361
16,83344,647138,228

69,319252,195

921

(54)

5,275

6,142

57,19363,24841,605

162,047- 15 -

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, 2018

Net sales

Fiscal year ended
March 31, 2019

Reportable segments total

247,506

252,195

Elimination of intersegment transactions(21,446)(16,833)

Net sales in the consolidated financial statements

226,060

235,361(Millions of yen)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

6,549

6,142

306

438

Operating profit in the consolidated financial statements

6,856

6,580

AssetsFiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

ProfitReportable segments total
Elimination of intersegment transactions(Millions of yen)

Reportable segments total

177,241

162,047

Elimination of intersegment transactions(26,804)(25,027)

(10)

(10)

150,426

137,010

Other adjustments
Total assets in the consolidated financial statements- 16 -

Per share information(Yen)
Fiscal year ended
March 31, 2018
Net assets per share

Fiscal year ended
March 31, 2019

2,150.74

2,240.33

Basic earnings per share

262.98152.30

Diluted earnings per share

252.13–(Note)

Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

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

4,709

2,844

–

–

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

4,709

2,844

Average number of shares (Thousands of shares)

17,90818,678––

Increase in number of common shares(Thousands of shares)

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

[770]

[–]

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.

- 17 -

4. Other information(1) Changes in Officers
1) Changes in representatives
Not applicable.
2) Changes in other officers• New candidate for auditor scheduled to be appointed

Auditor (Outside Auditor)

Hiroshi Takahashi• Retiring auditor
Current position:
Outside Auditor

Akira Tonishi

3) Scheduled date of assuming office
June 26, 2019- 18 -(Current positions: Advisor of Atsumi &Sakai, Director of Non-life Insurance
Policy-holders Protection Corporation ofJapan, Director of Japan Institute ofBusiness Law, Chairperson of Egusa
Foundation for International Cooperationin the Social Sciences)