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, 2015
<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
In the global economy during the nine months ended December 31, 2015, in the U.S., despite concerns
about monetary policy normalization, falling crude oil prices and the impact of dollar appreciation,
improved employment and steady recovery in household consumption are progressing. In Europe, theeconomy is continuing to recover due to the firm consumer spending, despite the concern over the impact
from the geopolitical risks. Economic growth of the emerging countries, such as China, is declining andthe economic stagnation continues.
In the Japanese economy, personal consumption remains generally firm, capital investments are roughly
flat, and the economy has shown a moderate recovery trend.
Under these macro-economic circumstances, in the automotive industry, automobile sales in North
America remains favorable. In Asia region, despite the decline in the Chinese market, owing to thefavorable effect of a tax reduction on compact cars, automobile sales is experiencing an uptick. In Japan,
demand stagnated, especially in light and compact car market, due in part to the increase of the tax leviedon the light vehicle.
Under these conditions, the Group pushed ahead with its 12th Mid-Term Plan, which started in April
2014, under the whole corporate policy “To become a chassis system manufacturer with overwhelming
competitive strength.” We will make the truly globalized enterprise by changing the Group to thestructure of chassis system manufacturer and by strengthening environmentally friendly technologies topromote the sales expansion.
As a result of the above, the operating results for the Group during the nine months under review are asfollows. Bolstered by robust ongoing automobile sales in the North America and the impact of yen
depreciation and other factors, net sales rose 12.9% year on year to 144,145 million yen, operating
income rose 23.1% to 4,463 million yen, ordinary income increased 16.6% to 4,263 million yen, andprofit attributable to owners of parent rose 16.5% to 1,316 million yen.
Operating results by segment are as follows.
(Japan)The volume of orders reduced, reflecting a reduction in the number of automobiles produced by themajor customers of the Company. Net sales fell 16.5% year on year to 15,961 million yen, while thesegment recorded an operating loss of 599 million yen, compared with an operating income of 90 million
yen in the same period of the previous fiscal year.
(North America)
In the North American Market, firm automobile sales continued, and boosted by the positive effect offoreign exchange, net sales rose 16.4% year on year to 93,067 million yen and the segment recorded anoperating income of 3,538 million yen, up 17.5% year on year.
(Asia)
Due to a start-up of the mass production for the new customers in China and a recovery in the number of
automobiles produced by the major customers in Thailand, net sales grew 22.7% year on year to 35,116
million yen, while the segment recorded an operating income of 1,128 million yen, compared with anoperating income of 98 million yen in the same period of the previous fiscal year.
(2) Information regarding financial position
As of December 31, 2015, total assets increased 7,084 million yen compared with the end of the previous
fiscal year to 139,781 million yen, mainly reflecting increases in cash and deposits and machinery,equipment and vehicles, net.
Liabilities increased 5,751 million yen from the end of the previous fiscal year to 92,091 million yen
mainly reflecting increases in notes and accounts payable - trade and short-term loans payable.
Net assets increased 1,333 million yen from the end of the previous fiscal year to 47,690 million yen
mainly reflecting increases in retained earnings and non-controlling interests.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
The consolidated earnings forecasts for the fiscal year ending March 31, 2016, announced in“Consolidated Financial Results for the Six Months Ended September 30, 2015” on November 5, 2015,
have not been changed.
-1-2. Matters regarding summary information (Notes)(1) Changes in significant subsidiaries during the nine months ended December 31, 2015
Not applicable.
(2) Application of special accounting for preparing quarterly consolidated financial statements
Tax expenses in the consolidated financial statements for a portion of consolidated subsidiaries arecalculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
income before income taxes for the fiscal year including the third quarter ended December 31, 2015, andnext by multiplying the quarterly income (loss) before income taxes by such estimated effective tax rate.
(3) Changes in accounting policies, changes in accounting estimates and restatements
Effective from the first quarter ended June 30, 2015, the Company has applied the “Accounting Standard
for Business Combinations” (ASBJ Statement No. 21, September 13, 2013), the “Accounting Standard
for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013) and the“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013), etc. As aresult, the method of recording the amount of difference caused by changes in the Company’s ownershipinterests in subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to
one in which it is recorded as capital surplus, and the method of recording acquisition-related costs waschanged to one in which they are recognized as expenses for the fiscal year in which they are incurred.
Furthermore, for business combinations carried out on or after the beginning of the first quarter ended
June 30, 2015, the accounting method was changed to one in which the reviewed acquisition costallocation resulting from the finalization of the tentative accounting treatment is reflected in the quarterly
consolidated financial statements for the quarterly period to which the date of business combination
belongs. In addition, the presentation method for “net income” and other related items has been changed,
and “minority interests” are now presented as “non-controlling interests.” To reflect these changes, theCompany has reclassified its quarterly and full-year consolidated financial statements for the first ninemonths of the previous fiscal year and the previous fiscal year.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional
measures provided in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations,Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements and Paragraph 574 (4) of the Accounting Standard for Business Divestitures. Application of the standards commenced at
the beginning of the first quarter ended June 30, 2015 and will continue going forward.
As a result, ordinary income and income before income taxes for the nine months ended December 31,
2015 have each decreased by 402 million yen. Moreover, capital surplus as of December 31, 2015 hasincreased 190 million yen.

-2-3. Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2015

As of December 31, 2015

8,983
27,379
5,539
3,766
8,159
3,880
57,707

12,781
24,267
5,515
3,715
8,579
4,342
59,202

19,657
24,687
12,365
10,81667,527780

20,21828,79813,244
10,69572,956
698

5,063
1,618
6,681
74,989132,697

5,233
1,691
6,924
80,579139,781

16,51819,09911,356825
88
9,904
57,792

18,61021,324
12,246470
92
9,027
61,7734,000
21,050
212
243
78
2,963
28,54886,3404,000
21,505
228
253
74
4,256
30,317
92,091

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
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 liabilityNegative goodwill
Other
Total non-current liabilities
Total liabilities-3-(Millions of yen)
As of March 31, 2015
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 December 31, 2015

4,790
5,228
15,115(18)25,1154,790
5,419
16,123(18)
26,314

858

927

4,085
338
5,283
15,95846,356132,697

2,445
264
3,638
17,737
47,690139,781(2) Consolidated statements of income and comprehensive income(Millions of yen)
Nine months ended
December 31, 2014
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
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expensesForeign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Insurance income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Income 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, 2015

127,699
113,063
14,636
11,0103,626

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

27
42

37
39

283

302

94
123
571

–
141
521

525
–
14
540
3,657

654
38
28
7214,263

20
61
82

155
–155

1144
145
3,594
1,742(69)
1,672
1,921

4
63
67
4,352
1,601
(12)
1,588
2,763

1,129
792

1,316
1,447(15)
3,618
4(6)
(2,042)
(71)

296

(32)

3,903
5,825

(2,153)
610

3,710

(60)

2,115

670

(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, 20141. 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
Total

79,964
1,068

28,6201,416

127,699
10,82927,45981,03330,037

138,529

90

3,012

98

3,202

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

3,202

Elimination of intersegment transactions

423

Operating income in the consolidated statements ofincome and comprehensive income

3.

Total

Asia

19,114
8,345

Segment profit

2.

North America

3,626Disclosure of impairment loss on non-current assets and goodwill for each reportable segment
Not applicable.

II. Nine months ended December 31, 2015
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
Transactions with other segments
Total
Segment profit (loss)

2.

Asia

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.

North America

4,463Disclosure of impairment loss on non-current assets and goodwill for each reportable segment
Not applicable.

Significant events after reporting period
Not applicable.
-6-