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, 2021
<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, 2021 experienced a significant downturn due
to the prolonged impact of the novel coronavirus. While economic activities had been gradually
resuming and vaccinations started, the outlook for the containment of the novel coronavirus remains
unpredictable mainly due to the fact that the newly discovered mutant strains of the virus are runningrampant.
In the automotive industry, normalization proceeded rapidly in China and signs of improvements wereseen in other regions from the summer. However, the future outlook remained uncertain due to factors
including the current expansion of production suspensions caused by the global shortage ofsemiconductors.
In this business environment, the Group launched the 14th Mid-term plan in April 2020. Whilemaintaining the basic policies of “Back to Basics” and “Challenge for New,” we have established a
global policy of “Let’s exceed out limits! We will, without compromise, produce the ‘Best One’ for all
our customers.” Under this global policy, while striving to prevent novel coronavirus infections, we havebeen working to provide our customers with new value and have made efforts to obtain new business.
This led the Group to win major new business contracts on a global basis. In addition, we have beenworking with the objective of exceeding limits in order to deal with the severe corporate environment weface at present, by such means as minimizing investment, engaging in various improvement activities,
and conducting cost reduction with a focus on unnecessary, nonurgent matters.
As a result, during the fiscal year under review, net sales decreased by 16.0% year on year to 183,647
million yen, operating profit decreased by 24.9% year on year to 3,072 million yen, ordinary profit
decreased by 13.8% year on year to 2,383 million yen, and loss attributable to owners of parent was
1,165 million yen (compared to profit attributable to owners of parent of 328 million yen in the previous
fiscal year).
Operating results by segment are as follows.
(Japan)Despite a sharp decline in the volume of orders from major customers for the full fiscal year in
conjunction with the impact of the novel coronavirus infection, the recovery trend was seen from thesecond half of the fiscal year under review. As a result of successful cost reductions, such as reducing
expenses for unnecessary, nonurgent matters, net sales decreased by 24.6% year on year to 19,692
million yen and operating profit was 299 million yen (an operating loss of 683 million yen in theprevious fiscal year).
(North America)
There was a significant decline in the volume of orders in the first quarter due to the impact of the
production suspensions at major customers caused by the novel coronavirus infection. However, alongwith the production volume from major customers on a recovery trend from the second half of the fiscal
year under review, our initiatives including production efficiency improvements and cost reduction
efforts led to an operating profit in the second half of the fiscal year under review alone. As a result, net
sales decreased by 17.3% year on year to 110,405 million yen, and operating loss was 686 million yen(operating profit of 367 million yen in the previous fiscal year).
(Asia)In the China region, there was a major decline in the volume of orders from major customers due to thenovel coronavirus infection in the first quarter, but the production volume from major customers rapidly
recovered from the second quarter onward, resulting in year-on-year increases in both net sales andoperating profit. Meanwhile, although the impact of the novel coronavirus infection in other regions has
been on a recovery trend, the recovery in Asian countries other than China has been delayed. As a result,net sales decreased by 9.4% year on year to 53,549 million yen, and operating profit decreased by 8.5%
year on year to 3,993 million yen.

-1-

Outlook for the next fiscal year
The next fiscal year's outlook remains undetermined, because it is difficult at this point in time toreasonably calculate the effect of the shortage of semiconductors. We will promptly disclose consolidated
earnings forecasts once it becomes possible to prepare them.

-2-(2) Analysis regarding financial position
1) Assets, liabilities and net assets
As of March 31, 2021, total assets increased by 2,676 million yen compared with the end of the previous
fiscal year to 136,714 million yen, reflecting a decrease in cash and deposits, and increases in notes andaccounts receivable – trade, buildings and structures, construction in progress and investment securities.
Liabilities increased by 1,936 million yen from the end of the previous fiscal year to 81,682 million yen,reflecting a decrease in long-term loans payable, and increases in notes and accounts payable – trade andaccounts payable – other.
Net assets increased by 739 million yen from the end of the previous fiscal year to 55,032 million yen,reflecting an increase in foreign currency translation adjustment.
2) Cash flows
As of March 31, 2021, cash and cash equivalents decreased by 5,170 million yen compared with the endof the previous fiscal year to 3,708 million yen (down 58.2% 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 9,956 million yen. The main factors were 1,324
million yen in profit before income taxes, 10,032 million yen in depreciation, an increase in notes andaccounts receivable – trade of 2,477 million yen, an increase in notes and accounts payable – trade of
1,667 million yen, an increase in accounts payable – other of 1,027 million yen, and 1,609 million yen inincome taxes paid.
Compared with the previous fiscal year, cash flows from operating activities changed from 10,539
million yen provided to 9,956 million yen provided. This was mainly due to a decrease in profit before
income taxes, an increase in notes and accounts receivable – trade, a decrease in inventories, and anincrease in notes and accounts payable – trade.
(Cash flows from investing activities)
Net cash used in investing activities was 10,726 million yen. The main factors were 10,225 million yen
in purchase of property, plant and equipment and 477 million yen in purchase of investment securities.
Compared with the previous fiscal year, cash flows from investing activities changed from 11,961
million yen used to 10,726 million yen used. This was mainly due to a decrease in purchase of property,
plant and equipment, and an increase in purchase of investment securities.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 4,363 million yen. The main factors were 7,233 million
yen in proceeds from long-term loans payable and 9,778 million yen in repayments of long-term loans
payable.
Compared with the previous fiscal year, cash flows from financing activities changed from 3,345 million
yen provided to 4,363 million yen used. This was mainly due to a decrease in short-term loans payable, adecrease in proceeds from long-term loans payable, and a decrease in repayments of long-term loans
payable.
(Reference) Transition of cash flow indicators
63rd term
Fiscal year ended
March 31, 2018

64th term
Fiscal year ended
March 31, 201965th term
Fiscal year ended
March 31, 2020

66th term
Fiscal year ended
March 31, 2021

Equity ratio (%)

26.7

30.5

29.9

29.5

Market value-based equity ratio (%)

16.4

12.2

5.9

10.2

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

5.5

2.0

4.9

5.0

Interest coverage ratio (times)

9.2

19.0

9.5

12.3

(Notes) Equity ratio: equity / total assets
Market value-based equity ratio: market capitalization / total assets-3-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.
* 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 8 yen per share, and because no interim
dividend was paid, the annual dividends will be 8 yen of the year-end dividend.
Consolidated earnings forecasts for the fiscal year ending March 31, 2022 remain undetermined due tothe impact at the current time from the shortage of semiconductors. Dividend plans for the next fiscal
year also remain undetermined. The Company will disclose them once it becomes possible to calculate
the financial forecasts.

-4-

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.

-5-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
Total investments and other assets
Total non-current assets
Total assets-6-

As of March 31, 2020

As of March 31, 2021

8,879
27,955
6,389
4,026
8,677
3,027
58,956

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

16,20532,450
1,669
5,863
544
6,750
3,230
66,714

17,14732,880
1,726
5,859
238
9,034
3,125
70,012

330
32
363

282
37
320

5,960
226
146
1,265
405
8,004
75,081
134,038

6,995
231
75
1,025
380
8,708
79,041
136,714

(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-7-

As of March 31, 2020

As of March 31, 2021

17,427
20,395
9,740
572
500
2,515
74
77
4,108
55,412

19,772
20,872
9,884
472
658
3,425
44
31
4,241
59,401

19,146
1,331
2,448
126
1,050
2
50
175
24,33379,745

16,943
1,390
2,771
57
791
99
44
183
22,28081,682

6,790
7,230
27,912(18)
41,914

6,790
6,733
26,559(64)
40,019174

490(1,657)(295)(1,778)14,15654,292
134,038

(333)
128
286
14,72655,032
136,714(2)Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2020

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
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on change in equity
Subsidy income
Other
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
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable toProfit (loss) 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-8-

Fiscal year ended
March 31, 2021

218,712
198,665
20,047
15,958
4,088

183,647
166,616
17,03013,958
3,072

75
51

51
40

-

152

144
271

196
440

1,113

806

191

-

181
108
1,595
2,764

264
59
1,129
2,383

23
314
6
344

15
6
1,838
1,860

3
63
66
3,042
1,424
687
2,112
930

20
67
2,830
2,919
1,324
2,068
240
2,309
(984)

328
601

(1,165)180(171)(1,869)
31

267
2,195
419

(183)

63

(2,193)(1,263)

2,945
1,961

(1,168)

899

(95)

1,061

(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance

Capital stock

Capital surplus

6,790

7,222

Retained earnings

Treasury shares

28,133(18)

42,127

(175)
6,790

7,222

Total shareholders’equity(175)

27,957(18)

41,951

Changes of items during
periodDividends of surplus

(374)

(374)

Profit attributable toowners of parent

328

328

Purchase of treasury
sharesCapital increase of
consolidated subsidiaries
Change 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

–
–

8

8

–

8

(45)

–

(37)

6,790

7,230

27,912(18)

41,914Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance467

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

(418)

(331)

Total accumulated
othercomprehensive
income(281)

14,98556,830
(175)

467

(418)

(331)

(281)

14,98556,655

Changes of items during
periodDividends of surplus(374)

Profit attributable toowners of parent

328

Purchase of treasury
sharesCapital increase of
consolidated subsidiaries
Change 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

–
–
8

(293)

(1,239)35(1,496)(828)(2,325)(293)(1,239)35(1,496)(828)(2,362)174(1,657)(295)(1,778)14,15654,292-9-

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance

Capital stock

Capital surplus

6,790

7,230

Retained earnings

Total shareholders’equityTreasury shares

27,912(18)

41,914
–

6,790

7,230

27,912(18)

41,914

Changes of items during
periodDividends of surplus

(187)

(187)

Profit attributable toowners of parent(1,165)(1,165)Purchase of treasury
sharesCapital increase of
consolidated subsidiaries
Change 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

(45)

(45)

(494)

(494)

(2)

(2)

–

(497)

(1,352)(45)(1,895)

6,790

6,733

26,559(64)

40,019Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance

174

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans(1,657)(295)

Total accumulated
othercomprehensive
income(1,778)14,15654,292–174(1,657)(295)(1,778)14,15654,292

Changes of items during
periodDividends of surplus(187)

Profit attributable toowners of parent(1,165)Purchase of treasury
sharesCapital increase of
consolidated subsidiaries
Change 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

(45)
(494)
(2)

316

1,324

423

2,064

570

2,634

316

1,324

423

2,064

570

739

490

(333)

128

286

14,72655,032- 10 -

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on change in equity
Amortization of goodwill
Loss (gain) on sales of investment securities
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
Increase (decrease) in accounts payable - other
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
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities- 11 -

Fiscal year ended
March 31, 2021

3,042
10,890
(314)
(5)
–

1,324
10,032
–
(5)
(6)

159

229

19

(69)

12

(46)

(127)
1,113
138

(92)
806
8

191

(152)

(20)
63

5
67

4,728

(2,477)(1,864)43(4,829)

1,667

507
(427)
13,276165(1,111)(1,790)10,5391,027(106)
12,256121(811)(1,609)
9,956(12,096)
111
(141)
(66)
–
231
(11,961)(10,225)
33
(73)
(477)
10
5
(10,726)

(Millions of yen)
Fiscal year ended
March 31, 2020
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
Repayments to non-controlling shareholders
Dividends paid to non-controlling interests
Repayments of 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- 12 -

Fiscal year ended
March 31, 2021

7,951
10,029(12,931)
–
(312)
(374)
–
(699)
(796)
478
3,345

90
7,233
(9,778)
(45)
(143)
(187)
(83)
(815)
(633)
–
(4,363)

(236)

(37)

1,688
7,191
8,879

(5,170)
8,879
3,708

(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: Five
Johnan Manufacturing Inc.
JOHNAN AMERICA, Inc.
JOHNAN F.TECH (THAILAND) LTD.
JOHNAN DE MEXICO, S.A. DE C.V.
VEEGEE Auto Components Private Limited-Change in scope of application of equity method- 13 -

The Company newly acquired shares of VEEGEE Auto Components Private Limited, and as a result,
VEEGEE Auto Components Private Limited is included in the scope of application of equity method.
(3) Number of non-consolidated subsidiaries not accounted for using the equity method: Two
Laguna Greenland Corp.
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.

- 14 -

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.
(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- Depreciated by the straight-line method assuming the lease periods as useful lives
without residual value.
Right-of-use assets- Depreciated by the straight-line method over the shorter of the useful life of theasset or lease term.
(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 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.

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(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.
(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.
Additional information
The impact of the novel coronavirus has been prolonged, and it is difficult to accurately predict the future
spread of the novel coronavirus as well as when it will be contained. Based on the fact that the impact on theGroup’s operating performance in the second half of the fiscal year under review was limited, we have madeaccounting estimates under the assumption that the impact going forward will also be limited.
However, because the impact of the novel coronavirus is highly uncertain, if there are changes to theaforementioned assumption, there is a possibility that there will be an impact on the financial position,
operating results, and cash flows in the next fiscal year.
In the fiscal year under review, in relation to the spread of the novel coronavirus, a government subsidy of
1,838 million yen is recorded as extraordinary income, and fixed costs, etc. arising from operationsuspensions and reductions due to the government’s request of 2,830 million yen are recorded as
extraordinary losses.

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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, 2020
(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

26,126
12,825

133,454
1,634

59,132
2,738

218,712
17,19938,951135,089

61,870235,911

(683)

367

4,365

4,050

61,044

64,12638,882

164,053

Fiscal year ended March 31, 2021
(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

19,692
15,097

110,405
1,324

53,5492,747

183,647
19,16934,789111,72956,297

202,816

299

(686)

3,993

3,606

64,681

67,97642,193

174,852- 17 -

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, 2020

Net sales

Fiscal year ended
March 31, 2021

Reportable segments total

235,911

202,816

Elimination of intersegment transactions(17,199)(19,169)

Net sales in the consolidated financial statements

218,712

183,647(Millions of yen)

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

4,050

3,606

37

(534)

Operating profit in the consolidated financial statements

4,088

3,072

AssetsFiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

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

Reportable segments total

164,053

174,852

Elimination of intersegment transactions(30,005)(38,129)(9)(8)

134,038

136,714

Other adjustments
Total assets in the consolidated financial statements- 18 -

Per share information(Yen)
Fiscal year ended
March 31, 2020
Net assets per share
Basic earnings (loss) per share(Note)

Fiscal year ended
March 31, 2021

2,148.80

2,168.91

17.58(62.58)

1. Diluted earnings per share is not presented since no potential shares exist.
2. From the second quarter of the fiscal year ended March 31, 2021, the Company acquired the Company’s sharesthrough the “Officers’ Stock Benefit Trust.” The Company’s shares held by the Officers’ Stock Benefit Trust areincluded in the number of treasury shares deducted for the calculation of the average number of shares during theperiod, to calculate basic earnings (loss) per share.
3. Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Basic earnings (loss) per share
Profit (loss) attributable to owners of parent (Millionsof yen)328(1,165)––328(1,165)

18,67818,617

Adjustment on profit attributable to owners of parent(Millions of yen)––

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

[–]

[–]

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)
Profit (loss) attributable to owners of parent related tocommon shares (Millions of yen)
Average number of shares (Thousands of shares)

Diluted earnings per share

Significant events after reporting period
The Group has been affected by matters such as the suspension of operations at some plants inconjunction with the suspension of automobile production caused by the global shortage ofsemiconductors. Since it is not possible to predict when the semiconductor supply shortage will be
resolved, it is difficult at the present time to reasonably calculate the impact on the financial position,
operating results, and cash flows in the next fiscal year and beyond.

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4. Other information(1) Changes in officers
1) Changes in representatives
Not applicable.
2) Changes in other officers
Not applicable.

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