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, 2020
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN1. Qualitative information regarding financial results for the period under review(1) Information regarding operating results
The global economy in the three months ended June 30, 2020 experienced a rapid and significant
deterioration due to the global spread of the novel coronavirus, making the economic outlook extremely
difficult. Social and economic activities were curtailed throughout Japan, the United States, China, andother regions in Asia due to the spread of the virus, and the economy declined sharply. In the automotive
industry, sales volumes decreased in all regions, and the industry also experienced disruptions in thesupply chain and factory shutdowns on a global scale.
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 the novel coronavirus infections, ateach of our regional bases we will resolutely fulfill our responsibility to supply products to ourcustomers, and ensure that each and every person works with the objective of exceeding limits in order todeal with the severe corporate environment we face at present, by such means as minimizing investment,
engaging in various improvement activities, and reducing non-essential and non-urgent costs.
As a result, during the three months under review, net sales decreased by 56.7% year on year to 25,141
million yen, operating loss was 1,372 million yen (an operating profit of 1,764 million yen in the same
period of the previous year), ordinary loss was 1,881 million yen (an ordinary profit of 1,429 million yen
in the same period of the previous year), and loss attributable to owners of parent was 2,678 million yen(profit attributable to owners of parent of 387 million yen in the same period of the previous year).
Operating results by segment are as follows.
(Japan)Net sales decreased by 41.6% year on year to 4,386 million yen and operating loss was 1,012 million yen(an operating profit of 62 million yen in the same period of the previous year) due to a sharp decline in
the volume of orders from major customers as a result of the spread of the novel coronavirus infection.
(North America)
Net sales fell by 58.5% year on year to 15,016 million yen and operating loss was 524 million yen (anoperating profit of 649 million yen in the same period of the previous year) due to a sharp decline in thevolume of orders from major customers and operation suspensions at each base as a result of the spreadof the novel coronavirus infection.
(Asia)Net sales decreased by 60.2% year on year to 5,738 million yen and operating profit decreased by 99.4%
year on year to 5 million yen due to a sharp decline in the volume of orders from major customers andoperation suspensions at each base as a result of the spread of the novel coronavirus infection.
(2) Information regarding financial position
As of June 30, 2020, total assets decreased by 6,263 million yen compared with the end of the previous
fiscal year to 127,775 million yen, reflecting decreases in notes and accounts receivable - trade.
Liabilities decreased by 2,228 million yen from the end of the previous fiscal year to 77,517 million yen
reflecting decreases in notes and accounts payable - trade, long-term loans payable, and other items.
Net assets decreased by 4,034 million yen to 50,258 million yen reflecting decreases in retained earnings
and other items.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
The earnings forecasts for the fiscal year ending March 31, 2021 had remained undetermined due to thedifficulty in reasonably calculating the effect of the spread of the novel coronavirus infection. However,based on the information and forecasts available at this point in time, we have calculated and hereby
announce the consolidated earnings forecasts.
For details, please refer to the Notice Concerning Earnings Forecasts and Dividend Forecasts for theFiscal Year Ending March 31, 2021announced today.

-1-2. Quarterly consolidated financial statements and significant notes thereto(1)Consolidated balance sheets(Millions of yen)
As of March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Total investments and other assets
Total non-current assets
Total assets-2-

As of June 30, 2020

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

6,828
21,409
7,225
4,342
9,283
3,778
(10)
52,858

16,20532,4506,750
11,30866,71436315,930
31,1928,550
11,062
66,736
359

5,960
2,044
8,004
75,081
134,038

5,850
1,971
7,821
74,917
127,775

(Millions of yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Negative goodwill
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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-3-

As of June 30, 2020

17,427
20,395
9,740
500
77
7,271
55,412

14,03522,222
9,501
231
36
7,625
53,653

19,146126
1,05050
3,958
24,33379,745

18,639
51
999
49
4,124
23,86377,517

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

6,790
7,236
25,024(18)
39,032174

282(1,657)(295)(1,778)14,15654,292
134,038(1,960)(246)(1,923)
13,14950,258
127,775

(2)Consolidated statements of income and comprehensive income(Millions of yen)Three months ended
June 30, 2019

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
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 (loss)
Extraordinary income
Gain on sales of non-current assets
Subsidy income
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 (loss) before income taxes
Income taxes - currentIncome taxes - deferred
Total income taxes
Profit (loss)
Profit attributable toProfit (loss) attributable to owners of parent
Profit (loss) 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-4-

Three months ended
June 30, 2020

58,06352,238
5,825
4,061
1,764

25,141
23,236
1,904
3,277(1,372)

15
18

14
18

49-

45
128

69
102

281

210

-

270

147
35
464
1,429

113
17
611
(1,881)

1
10
1,104
1,104

0
12
13
1,417
662
116
779
638

18
2,265
2,284
(3,060)
317
(108)
208
(3,269)387
250(2,678)
(590)

(55)
179
37

91(323)
47

(16)

48

144
782

(136)
(3,405)534(2,823)247(581)(3) Notes to quarterly consolidated financial statementsUncertainties of entity’s ability to continue as going concern
Not applicable.
Substantial changes in the amount of shareholders’ equity
Not applicable.
Application of special accounting for preparing quarterly consolidated financial statements(Calculation of tax expenses)
Tax expenses in the quarterly consolidated financial statements for a portion of consolidated subsidiaries
are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting
against profit before income taxes for the fiscal year including the first quarter ended June 30, 2020, andnext by multiplying the quarterly profit (loss) before income taxes by such estimated effective tax rate.
Additional information
There are no material changes to the assumptions of accounting estimates regarding the impact from thenovel coronavirus infection stated in the securities report for the previous consolidated fiscal year
(Additional information).
In the first quarter ended June 30, 2020, in relation to the spread of the novel coronavirus, a government
subsidy of 1,104 million yen is recorded as extraordinary income, and fixed costs arising from operationsuspensions and reductions due to the government’s request of 2,265 million yen are recorded as
extraordinary losses.

-5-Segment information, etc.
Segment information
I. Three months ended June 30, 2019
1. Disclosure of net sales and profit for each reportable segment(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Intersegment sales and transfers
Total
Segment profit

North America

Total

Asia

7,514
2,903

36,146410

14,403657

58,063
3,970

10,41736,557

15,06062,034

62

649

899

1,612

2. Differences between total amounts of profit (loss) for reportable segments and amounts in theconsolidated statements of income and comprehensive income and main details of these differences(matters relating to difference adjustments)(Millions of yen)
ProfitAmount1,612

Reportable segments total
Elimination of intersegment transactions

152

Operating profit in the consolidated statements ofincome and comprehensive income

1,764

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

-6-II. Three months ended June 30, 2020
1. Disclosure of net sales and profit for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Intersegment sales and transfers
TotalSegment profit (loss)

North America

Total

Asia

4,386
2,122

15,016
355

5,738
463

25,141
2,941

6,508

15,371

6,202

28,082(1,012)(524)

5(1,531)

2. Differences between total amounts of profit (loss) for reportable segments and amounts in theconsolidated statements of income and comprehensive income and main details of these differences(matters relating to difference adjustments)(Millions of yen)
ProfitAmount(1,531)

Reportable segments total
Elimination of intersegment transactions

159

Operating profit (loss) in the consolidated
statements of income and comprehensive income(1,372)

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

-7-