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 Three Months Ended June 30, 2016
<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 three months ended June 30, 2016, there was continuing uncertainty
overall in the economic outlook. In the U.S., the firm consumer spending has continued, which promoted
the moderate economic recovery. In Europe, the outlook for economic activity grew uncertain amid
slowing domestic demand mainly due to the issue of the Brexit, and the effects of geopolitical risks. InChina, there has been a gentle slowdown in economic growth mainly reflecting the trend of the financial
market, which is under the influence of the decrease in real estate prices and an excessive debt problem.
Other emerging countries are also in a trend of economic slowdown.
Meanwhile, in the Japanese economy, although employment has continued to be firm, production andexports were flat as a result of the appreciation of yen and the economic slowdown in the emerging
countries.
Under this macro-economic circumstance, in the automotive industry, automobile sales in North America
has been firm, while sales in the Asia region including China continued to weaken. In Japan, automobile
sales proceeded at a low level owing to stagnant sales in the light and compact car market.
Under these conditions, the Group pushed ahead with expanding sales on a global basis under thecorporate policy “To become a chassis system manufacturer with overwhelming competitive strength,”outlined in its 12th Mid-Term Plan, which started in April 2014.
The operating results for the Group during the three months under review are as follows. The Group hada recovery in sales of major customers in the Japanese market and continuously robust sales in the North
American Market. Sales of customers in the Chinese market was also favorable. In detail, net sales rose
4.0% year on year to 47,254 million yen, operating income rose 269.7% year on year to 2,183 million
yen, ordinary income rose 291.6% year on year to 1,759 million yen and profit attributable to owners ofparent was 663 million yen (compared with loss attributable to owners of parent of 98 million yen in thesame period of the previous fiscal year).
Operating results by segment are as follows.
(Japan)There were signs of a recovery in the number of automobiles produced by the major customers of theCompany, along with an increase in export sales. Net sales rose 17.9% year on year to 5,777 million yen
and operating income was 307 million yen (compared with an operating loss of 409 million yen in thesame period of the previous fiscal year).
(North America)
In the North American Market, although firm automobile sales continued, the effect of sudden yen
appreciation on foreign exchange led to net sales falling by 9.2% year on year to 28,441 million yen. In
terms of income/loss, the segment recorded an operating income of 1,061 million yen, up 1.8% year onyear, mainly reflecting a subsidiary in Mexico going into full-scale production.
(Asia)
Sales of major customers and new customers were both favorable in the Chinese market. Net sales rose
41.8% year on year to 13,034 million yen and operating income was 989 million yen (compared with anoperating loss of 190 million yen in the same period of the previous fiscal year).
(2) Information regarding financial position
As of June 30, 2016, total assets decreased by 9,037 million yen compared with the end of the previous
fiscal year to 128,942 million yen, mainly reflecting decreases in notes and accounts receivable - trade,buildings and structures, machinery, equipment and vehicles and construction in progress.
Liabilities decreased by 4,504 million yen from the end of the previous fiscal year to 86,406 million yen
mainly reflecting decreases in notes and accounts payable - trade, short-term loans payable and current
portion of long-term loans payable.
Net assets decreased by 4,533 million yen from the end of the previous fiscal year to 42,535 million yen
mainly reflecting decreases in foreign currency translation adjustment and non-controlling interests.

-1-(3) Information regarding consolidated earnings forecasts and other forward-looking statements
The consolidated earnings forecasts for the six months ending September 30, 2016, and the fiscal year
ending March 31, 2017, announced in “Consolidated Financial Results for the Fiscal Year Ended March
31, 2016” on May 9, 2016, have not been changed.
2. Matters regarding summary information (Notes)(1) 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
profit before income taxes for the fiscal year including the first quarter ended June 30, 2016, and next bymultiplying the quarterly profit (loss) before income taxes by such estimated effective tax rate.
(2) Additional information
The Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016) hasbeen applied from the first quarter ended June 30, 2016.

-2-3. Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2016
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 liability
Negative goodwill
Other
Total non-current liabilities
Total liabilities-3-As of June 30, 2016

6,831
28,930
4,779
3,942
8,069
4,855
57,4096,680
24,137
5,941
3,909
7,915
4,395
52,97919,64829,985
13,423
10,35273,410671

18,21328,402
11,762
10,88569,264
619

4,880
1,608
6,489
80,570137,980

4,582
1,496
6,078
75,962
128,942

18,69022,589
11,576499
99
9,036
62,492

16,68921,556
10,129405
36
8,465
57,2824,000
18,597
233
954
72
4,561
28,41990,911

4,000
19,630
224
954
71
4,243
29,124
86,406

(Millions of yen)
As of March 31, 2016Net 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 June 30, 2016

4,790
5,419
17,512(18)27,703

4,790
5,409
18,207(18)28,387618

432

1,533(549)
1,602
17,76247,068137,980(1,083)(532)(1,183)
15,33042,535
128,942(2) Consolidated statements of income and comprehensive income(Millions of yen)

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
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
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
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit (loss) attributable to owners of parent
Profit attributable to non-controlling interests-5-

Three months ended
June 30, 2015

Three months ended
June 30, 2016

45,43041,047
4,382
3,792
590

47,254
41,140
6,113
3,930
2,183

8
6

15
23

93

124

69
177

41
204

212
86
19
319
449

211
414
3629
1,759

145
145

44–
55589
475(101)
373
215

145
1,758
600
60660
1,098(98)314663434

(Millions of yen)Three months ended
June 30, 2015
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 ofparent
Comprehensive income attributable to noncontrolling interests-6-

Three months ended
June 30, 2016

18858
(23)

(131)
(3,753)
18

23

(218)

877
1,093(4,085)(2,987)422(2,122)

670

(865)

(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 informationI.
Three months ended June 30, 2015
1. 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
TotalSegment profit (loss)

2.

North America

4,902
2,583

31,333
409

9,194
411

45,430
3,404

7,486

31,742

9,606

48,835(409)

1,042(190)441

Differences between total amounts of profit (loss) for reportable segments and amounts in the
consolidated statements of income and comprehensive income and main details of these differences(matters relating to difference adjustments)(Millions of yen)AmountProfit

3.

TotalAsia

Reportable segments total

441

Elimination of intersegment transactions149Operating income in the consolidated statements ofincome and comprehensive income

590

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

II. Three months ended June 30, 2016
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
TotalSegment profit

2.

North America

5,777
4,051

28,441
472

13,034638

47,254
5,162

9,829

28,914

13,672

52,416

307

1,061

989

2,358

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)AmountProfit

3.

Total

Asia

Reportable segments total

2,358

Elimination of intersegment transactions(174)

Operating income in the consolidated statements ofincome and comprehensive income

2,183Disclosure of impairment loss on non-current assets and goodwill for each reportable segment
Not applicable.

Significant events after reporting period
Not applicable.
-7-