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, 2016
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN1. Analysis regarding operating results and financial position(1) Analysis regarding operating results
The trend in the global economy during the fiscal year ended March 31, 2016 was unstable, against thebackground of the shift of interest rate policies in China and in the U.S., the decline in the price of crude
oil and other reasons. In the U.S., the improved employment environment and firm consumer spending
contributed to a moderate economic recovery, while in China the speed of growth abated, and therecovery of economies in other Asia regions in general was slow. In the Japanese economy, although
capital investment is steadily increasing, consumer spending was stagnant and the economy saw a weak
recovery.
In the automotive industry, robust new automobile sales in North America continued, and in China as
well new automobile sales continued to expand, although the overall speed was slowing, while other Asia
regions continued to decline, in general. In Japan, due to increases in consumption tax and tax levied on
the light vehicle, the annual sales record was less than that in the previous year.
Under these conditions, the Group pushed ahead with its 12th Mid-Term Business Plan, which started in
April 2014, under the whole company policy “To become a chassis system manufacturer withoverwhelming competitive strength,” and while striving to expand transactions with world automakers,
we are creating a truly globalized enterprise by changing the Group to the structure of chassis systemmanufacturer and by strengthening environmentally friendly technologies.
In R&D, together with increased collaboration among R&D bases in Japan, North America and Asia
regions to improve R&D capabilities globally, we are striving for efficient development including the useof advanced simulation technologies for evaluation before proto production of strength, durability anddevelopment costs, for improved cost competitiveness and acceleration of development.
In the production aspect, we have developed production systems in emerging markets to respond for thesales expansion at a global level and continued to work to establish an optimal supply system throughalliances with local companies in such places as India, Brazil, and areas in China where F.tech does nothave own plants. In the domestic market, along with the highly efficient production system we built
under structural reforms, we have endeavored to reinforce production capabilities even further, so as torespond to changes in production volume or decrease of added value as a result of making automobiles
more compact.
As a result of the above, operating results for the Group during the fiscal year under review are as
follows. Reflecting robust sales in North America, favorable sales in China and Thailand and the impactof yen depreciation and other factors, net sales rose 11.8% year on year to 196,343 million yen, operating
income rose 22.6% to 6,821 million yen, ordinary income increased 6.7% to 6,182 million yen, andprofit attributable to owners of parent rose 52.6% to 2,704 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 the
major customers of the Company. Net sales were 22,016 million yen (down 13.9% year on year) andoperating income was 381 million yen (down 12.0%).
(North America)
In the North American Market, firm automobile sales continued, and boosted by the positive effect offoreign exchange, net sales were 124,953 million yen (up 13.4%) and operating income was 4,675
million yen (up 0.9%).
(Asia)
Due to a start-up of the mass production for the new customers in China and a recovery and sales
expansion in the number of automobiles produced by the major customers in Thailand and other factors,
net sales were 49,372 million yen (up 24.0%) and operating income was 2,069 million yen (up 172.7%).
Outlook for the next fiscal year
As the outlook for the next fiscal year, in Japan the outlook is for recovery as a result of increased
domestic production volume at the major customers. Overseas, the trend is projected to continue to besolid, however, due as the primary factor of the impact of exchange conversion we predict a decrease inincome.
-1-

As the outlook for consolidated results for the fiscal year ending March 31, 2017 (April 1, 2016 to March
31, 2017), we predict net sales of 192,000 million yen (down 2.2% year on year), operating income of
6,500 million yen (down 4.7%), ordinary income of 6,200 million yen (up 0.3%), and profit attributableto owners of parent of 2,800 million yen (up 3.5%).
Exchange rates are assumed at 108 yen to the U.S. dollar.
(2) Analysis regarding financial position
1) Assets, liabilities and net assets
As of March 31, 2016, total assets increased 5,283 million yen compared with the end of the previous
fiscal year to 137,980 million yen, mainly reflecting increases in notes and accounts receivable - trade,machinery, equipment and vehicles and construction in progress.
Liabilities increased 4,571 million yen from the end of the previous fiscal year to 90,911 million yen
reflecting increases in notes and accounts payable - trade and short-term loans payable.
Net assets increased 711 million yen to 47,068 million yen mainly reflecting increases in retained
earnings and non-controlling interests.
2) Cash flows
As of March 31, 2016, cash and cash equivalents decreased 2,151 million yen compared with the end of
the previous fiscal year to 6,831 million yen (down 24.0% 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 12,140 million yen. The main factors were 6,953
million yen in profit before income taxes, 10,081 million yen in depreciation, an increase in notes andaccounts receivable - trade of 3,224 million yen and an increase of notes and accounts payable - trade of
3,213 million yen, and income taxes paid of 3,032 million yen.
Compared with the previous fiscal year, cash flows from operating activities changed from 8,518 million
yen provided to 12,140 million yen provided. This was mainly due to an increase in notes and accounts
payable - trade.
(Cash flows from investing activities)
Net cash used in investing activities was 17,810 million yen. The main factor was 19,318 million yen inpurchase of property, plant and equipment.
Compared with the previous fiscal year, cash flows from investing activities changed from 14,712
million yen used to 17,810 million yen used. This was mainly due to an increase in the purchase ofproperty, plant and equipment.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 3,792 million yen. The main factors were 10,010
million yen in proceeds from long-term loans payable and 11,703 million yen in repayments of long-termloans payable.
Compared with the previous fiscal year, cash flows from financing activities changed from 7,502 million
yen provided to 3,792 million yen provided. This was mainly due to a decrease in proceeds fromissuance of bonds.
(Reference) Transition of cash flow indicators
58th term
Fiscal year ended
March 31, 2013

59th term
Fiscal year ended
March 31, 2014

60th term
Fiscal year ended
March 31, 2015

61st term
Fiscal year ended
March 31, 2016

Equity ratio (%)

16.5

23.3

22.9

21.2

Market value equity ratio (%)

19.8

17.3

13.3

11.9

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

6.2

4.8

6.6

4.7

Interest coverage ratio (times)

10.9

13.2

11.5

13.7

-2-

(Notes) Equity ratio: equity / total assets
Market value 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 indicators.
* 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 year
The Company’s basic policy on distribution of profits is return of profits based on operating results.
While striving to reinforce its financial strength, it will ensure return of profits to shareholders from thelong-term perspective that includes status of profits and future business expansion, also considering acommemorative dividend or share-split, etc. at some turning point. For distribution of profits by dividend,
the Company is targeting a payout ratio for profit attributable to owners of parent of 10% or above forthe 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 to further business expansion and reinforcement of financial strength as well as costcompetitiveness and global development systems.
Year-end dividends shall be matters for resolution at the General Meeting of Shareholders.
For the current fiscal year, year-end dividend will be 10 yen per share and 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. Management Policies(1) Basic management policy
Our Basic Policy is to aim at coexistence with the environment and local community, shareholders andour employees, through the concept of “Respect for Human Beings” with respect for independent
individuals, harmony and cooperation, and the “Spirit of Challenge,” to choose the difficult route without
fear of failure. With this policy the Company will strive to supply excellent quality products at fair prices
with its excellent technological capabilities on a global scale.
By promoting these corporate activities, we will strive to achieve the No. 1 rating in customersatisfaction by customers worldwide as well as a company admired by society in general.
(2) Medium- to long-term management strategies
Under the policy of “To become a chassis system manufacturer with overwhelming competitive strength”
in the 12th Mid-Term Business Plan, the Company has set its basic business strategy as “transformation
to a chassis system structure” “evolution to global operations” and “reinforcement of environmentalresponse technologies.” By execution on “simple,” “selection,” “concentration,” and “speed" as action
measurable, we continue efforts for further growth.
(3) Target management indicators
In the 12th Mid-Term Business Plan started in April 2014 (April 1, 2014- March 31, 2016), the Company
set a long-term management goal of consolidated net sales of 200.0 billion yen and operating income of
10.0 billion yen (5% or greater operating profit margin) in extending business activities.
However, orders received by the Group were affected by vast changes in the external environment fromwhen the Mid-Term Business Plan was formulated, including a decrease in automobile sales in Japan andstagnation of demand for automobiles in Asian countries.
Under such circumstances, in addition to measures for realization of the above mentioned businessstrategies, we have striven to reform our business structure to build an efficient production system that
includes aggregation of manufacturing lines and introduction of ultra-precision presses; however,considering the recent exchange trends and uncertainty of global demand for automobiles, we set theoutlook for this term at net sales of 192.0 billion yen and operating income of 6.5 billion yen.
(4) Issues to be addressed
In the business environment surrounding the Group, we anticipate that the severe competition, including
global mega suppliers, will be ongoing in the domestic market, where much growth in automobile
demand cannot be expected, and in the global market, where medium- to long-term expansion can bepredicted. Therefore, the Group has aggressively moved ahead with “transformation to a chassis system
structure,” “evolution to global operations,” and “reinforcement of environmental-response technologies,”
under the policy of “To become a chassis system manufacturer with overwhelming competitive strength”
as indicated in the 12th Mid-Term Business Plan.
In order for us to be genuinely globalized company, we aim at changing the structure where individual
base is awarded business to the structure capable of global business awarded. We strive to improve thecompetitiveness by not only executing regional functional organization in sales, development, andengineering in order to promote self-reliance, but also facilitating cooperation between them andrespective headquarters in Japan.
Additionally, in order to achieve “transformation to a chassis system structure,” the Company defines its
major products as multi-function from single unit function, and is working to demonstrate theoverwhelming competitive strength by conducting system development.
(Japan)Although robust growth of sales cannot be expected in Japan, by promoting product development inresponse to the environment, downsizing the vehicle, and future needs, we will promote our sales
expansion activities centering on orders from major customers. As for light vehicle, the sales of which
are on a growth trend, the Company will execute the corresponding product development and active cost
reduction, offer prompt proposals that satisfy the customers’ needs seeking for further business
opportunities.
In addition, as a global mother, we will share the information of chassis system development and knowhow of the production technologies with group companies to strengthen local characteristics as a chassis-4-system manufacturer.
(North America)
In the North American market, where moderate sales expansion is expected, severe competition
including mega suppliers is projected in the future. We will strived to expand our profit by strongly
acquiring business opportunities from other than major customers, and we will make efforts to further
reinforce our profit structure through maximum and reasonable use of resources including at new plant in
Mexico.
(Asia)In China, although the risks due to changes in the economic environment can be considered, we predict
orders from major customers to continue to be robust. At F.tech R&D (Guangzhou) Inc., we will promotesales expansion to both major customers and other customers by performing local specific productdevelopment and analysis, and offering active proposals to local specific models in order to achievebusiness structure that allows us to respond to economical environmental changes in a flexible manner.
As for countermeasures to elevated labor cost, our intention is to proceed in an automated and robotic
way for improved local cost competitiveness, which should lead to strengthened profit structure.
In Thailand, although political uncertainty continues, automobile production is predicted to increaseslightly. We are actively working on sales expansion to other than major customers by demonstrating
advanced quality control and production capability. Since major customers in the Southeast Asia arestrongly demanding the localization of production, we will achieve the production allocation with the
maximum use of resources in 3 plants in Philippines, Thailand, and Indonesia, while maintaining thecompetitiveness, and fulfill the requirements from the customers.
As for pedal assembly in Philippines, we will aggressively promote the weight reduction and functional
development through cooperation of local development (pedal development) and local productionengineering (aluminum casting processing, plastic processing, and pedal production) so that the products
can be shipped all over the world.
(5) Matters concerning parent company, etc.
1) Trademark of parent company
Parent company, etc.

Attribute

Honda Motor Co., Ltd. Other associate(as of March 31, 2016)
Voting rights holding
ratio of the parent
company, etc. (%)
16.6

Stock exchanges where share certificatesissued by parent company, etc. are listed
Tokyo Stock Exchange
New York Stock Exchange

2) Position of the Company in the corporate group of the parent company, etc., and other relations
between the Company and the parent company, etc.
Honda Motor Co., Ltd. (“Honda Motor”) has 16.6% of the voting rights of the Company, and theCompany is an affiliate accounted for under the equity method for Honda Motor.
Honda Motor and its affiliates (the “Honda Group”) are the largest customers for Company’s
automobile suspension parts, and out of consolidated net sales for the current fiscal year of 196,343
million yen, sales to the Honda Group accounts for 152,435 million yen, making up 77.6% of the total.
As stated above, the Company and the Honda Group are in a close relationship in the aspect of capitaland transactions, however, for basic management policy and daily business activities, the Company isfundamentally independent and autonomous, therefore its independence as a listed company isensured.

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

As of March 31, 2016

8,983
27,379
5,539
3,766
8,159
420
3,459
57,707

6,831
28,930
4,779
3,942
8,069
368
4,486
57,40919,657
24,687
1,844
6,238
826
12,365
1,906
67,527

19,64829,985
1,969
6,024
809
13,423
1,549
73,410

709
52
19
780

608
44
18
671

5,063
276
62
415
863
6,681
74,989132,697

4,880
261
34
449
862
6,489
80,570137,980

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
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
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets-6-

(Millions of yen)
As of March 31, 2015

As of March 31, 2016

16,51819,09911,356
635
825
5,315
109
88
3,843
57,792

18,69022,589
11,576
395
499
4,347
85
99
4,207
62,492

4,000
21,050
428
2,518
212
243
6
78
9
28,54886,3404,000
18,597
485
3,369
233
954
693
72
13
28,41990,911

4,790
5,228
15,115(18)
25,1154,790
5,419
17,512(18)
27,703

858

618

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

1,533
(549)
1,602
17,76247,068137,980

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
Bonds payable
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-

(2) Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2015
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 expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on liquidation of subsidiaries and associates
Insurance income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
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-8-

Fiscal year ended
March 31, 2016

175,579
155,028
20,551
14,986
5,564

196,343
173,714
22,62915,808
6,821

38
49

55
46

400

437

362
181
1,031

–
192
732

741
–
62
804
5,791

883
449
38
1,371
6,182

31
43
61
136

963
–
–
963

1
145

4
76

48

–

183
378
5,550
2,696
(295)
2,400
3,150

110
191
6,953
1,171
1,188
2,360
4,593

1,772
1,377

2,704
1,888

111
3,988
58

(215)
(3,298)
(878)

382

(212)

4,541
7,691

(4,605)
(11)

5,137

(707)

2,553

695

(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2015
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

4,790

Retained earnings

5,228

13,958Cumulative effects ofchanges in accounting
policies
Restated balance

Treasury shares
(18)

(306)
4,790

5,228

Total shareholders’equity23,958(306)

13,651(18)

23,651

Changes of items during
period–Issuance of new shares
Dividends of surplus

(307)

(307)

Profit attributable to ownersof parent

1,772

1,772

Purchase of treasury shares–

Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(0)

(0)

–

–

1,464

(0)

1,464

4,790

5,228

15,115(18)

25,115

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance619

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
1,012

284

Total
accumulated
othercomprehensive
income
1,916

13,967

39,842
(306)

619

1,012

284

1,916

13,96739,535

Changes of items during
periodIssuance of new shares–

Dividends of surplus(307)

Profit attributable to ownersof parent

1,772

Purchase of treasury shares–

Change in ownershipinterest of parent due totransactions with noncontrolling interests–

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

239

3,073

53

3,366

1,990

5,357

239

3,073

53

3,366

1,990

6,821

858

4,085

338

5,283

15,95846,356-9-

Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

4,790

Retained earnings

5,228

Treasury shares

15,115(18)

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders’equity25,115
–

4,790

5,228

15,115(18)

25,115

Changes of items during
period–Issuance of new shares
Dividends of surplus

(307)

(307)

Profit attributable to ownersof parent

2,704

2,704
(0)

Purchase of treasury shares
Change in ownershipinterest of parent due totransactions with noncontrolling interests

190

190

Net changes of items otherthan shareholders’ equity–

Total changes of items during
periodBalance at end of current
period

(0)

–

190

2,397

(0)

2,587

4,790

5,419

17,512(18)

27,703

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Cumulative effects ofchanges in accounting
policies
Restated balance

858

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
4,085

338

Total
accumulated
othercomprehensive
income5,283

15,95846,356
–

858

4,085

338

5,283

15,95846,356

Changes of items during
periodIssuance of new shares–

Dividends of surplus(307)

Profit attributable to ownersof parent

2,704

Purchase of treasury shares(0)Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period190(240)(2,552)(888)(3,680)1,804(1,876)(240)(2,552)(888)(3,680)

1,804

711

618

1,533

(549)

1,602

17,76247,068- 10 -

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2015
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on liquidation of subsidiaries andassociates
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 (profit) loss 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
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities- 11 -

Fiscal year ended
March 31, 2016

5,550
8,920
183
(5)

6,953
10,081
110
(5)

48

–

(43)

–

(152)

(145)

8

20

(0)

10

(87)
741
(129)

(102)
883
356

(400)

(437)

(29)
145

(959)
76

(1,045)(3,224)(2,268)

(364)

(965)

3,213

993
11,460120(739)(2,322)
8,518

(543)
15,924137(887)(3,032)
12,140(14,487)
55
(183)
(30)
–
(66)
(14,712)(19,318)
1,757
(211)
(30)
55
(61)
(17,810)(Millions of yen)
Fiscal year ended
March 31, 2015
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
Proceeds from issuance of bonds
Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Proceeds from sales and installment backRepayments of installment payables
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Proceeds from sales 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, 2016

4,843
9,915
(10,906)
4,000
–
–

4,438
10,010(11,703)
–
(0)

–
(190)
(306)
(554)
(619)
869
7,052

833
(256)
(307)
(597)
(676)
400
3,792

301

(274)

1,159
7,823
8,983

(2,151)
8,983
6,831

1,651

(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: One
Laguna Greenland Corp.
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: One
Laguna Greenland Corp.

- 13 -

Number of associates not accounted for using the equity method: Five
Progressive Tools & Components Pvt Ltd.
JOHNAN UK LTD.
PT. JFD INDONESIA
JOHNAN WUHAN INC.
Johnan Kyushu Manufacturing 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., F.tech Mfg. (Thailand) Ltd., 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.
(2) Accounting policy for depreciation of significant assetsi) Property, plant and equipment (excluding leased assets)
Depreciated by the straight-line method.
However, some domestic consolidated subsidiaries adopt the declining balance method for- 14 -

buildings acquired on or before March 31, 1998.
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
Depreciated by the straight-line method assuming the lease periods as useful lives without residual
value.
For finance lease transactions of the Company and its domestic consolidated subsidiaries that do
not transfer ownership and commenced on or before March 31, 2008, the accounting treatment
follows the method applicable to ordinary rental transactions.
(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.
(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 that- 15 -

are 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.
Changes in accounting policies(Application of the Accounting Standard for Business Combinations, etc.)
Effective from the current fiscal year, the Company has applied the Accounting Standard for Business
Combinations (ASBJ Statement No. 21, September 13, 2013 (hereinafter, the “Statement No. 21”)), the
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013
(hereinafter, the “Statement No. 22”)) and the Accounting Standard for Business Divestitures (ASBJ
Statement No. 7, September 13, 2013 (hereinafter, the “Statement No. 7”)), etc. As a result, the method ofrecording the amount of difference caused by changes in the Company’s ownership interests in subsidiaries
in the case of subsidiaries under ongoing control of the Company was changed to one in which it isrecorded as capital surplus, and the method of recording acquisition-related costs was changed to one inwhich they are recognized as expenses for the fiscal year in which they are incurred. Furthermore, forbusiness combinations carried out on or after the beginning of the current fiscal year, the accounting
method was changed to one in which the reviewed acquisition cost allocation resulting from the finalizationof the tentative accounting treatment is reflected in the consolidated financial statements for the fiscal year
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-controllinginterests.” To reflect these changes, the Company has reclassified its consolidated financial statements forthe previous fiscal year.
In the consolidated cash flow statements for the current fiscal year, cash flows related to the acquisition orsale of stock of a subsidiary that do not result in changes in the scope of consolidation are stated in “cashflows from financing activities.” Cash flows for acquisition-related costs for stock of a subsidiary that doresult in changes in the scope of consolidation and cash flows for expenses associated with the acquisitionor sale of stock of a subsidiary that do not result in changes in the scope of consolidation are stated in “cashflows from operating activities.”
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional
measures provided in paragraph 58-2 (4) of the Statement No. 21, paragraph 44-5 (4) of the Statement No.
22 and paragraph 57- 4 (4) of the Statement No. 7. Application of the standards commenced at the
beginning of the current fiscal year and will continue going forward.
As a result of the application, ordinary income and profit before income taxes for the current fiscal year
each decreased by 389 million yen. Moreover, capital surplus as of the end of the current fiscal year
increased by 190 million yen.

- 16 -

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 income (before amortization of goodwill).
Transactions with other segments 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, 2015
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Transactions with other segments
Total

North America

Total

Asia

25,57915,868110,189
1,541

39,811
2,099

175,579
19,51041,447111,731

41,910

195,090

Segment profit

434

4,635

758

5,828

Segment assets

53,43363,54238,280155,257

Fiscal year ended March 31, 2016
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Transactions with other segments
Total

North America

Asia

Total

22,016
16,535

124,953
1,718

49,372
2,037

196,343
20,291

38,552

126,671

51,410216,635

Segment profit

381

4,675

2,069

7,126

Segment assets

57,39367,86540,306

165,564- 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, 2015

Net sales

Fiscal year ended
March 31, 2016

Reportable segments total

195,090

216,635

Elimination of intersegment transactions(19,510)(20,291)

Net sales in the consolidated financial statements

175,579

196,343(Millions of yen)

Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Reportable segments total

5,828

7,126

Elimination of intersegment transactions

(264)

(305)

Operating income in the consolidated financial
statements

5,564

6,821

Profit(Millions of yen)
Fiscal year ended
March 31, 2015

AssetsFiscal year ended
March 31, 2016

Reportable segments total

155,257

165,564

Elimination of intersegment transactions(22,546)(27,571)

(13)

(12)

132,697

137,980

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

Per share information(Yen)
Fiscal year ended
March 31, 2015
Net assets per share

Fiscal year ended
March 31, 2016

1,979.55

1,908.40

Basic earnings per share

115.42

176.14

Diluted earnings per share

114.60144.81(Note)

Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

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

1,772

2,704

–

–

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

1,772

2,704

Average number of shares (Thousands of shares)

15,356

15,356––

Increase in number of common shares(Thousands of shares)

109

3,322

[Of the above, convertible bond-type bonds with
subscription rights to shares (Thousands of shares)][109][3,322]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.

- 19 -

5. Other information(1) Changes in Officers
1) Changes in representatives• New representative director scheduled to be appointed
Representative Director & Vice
President Operating Officer

Kenichi Ando

(Current position: Vice President Operating
Officer)

2) Changes in other officers• New candidates for directors scheduled to be appointed
Director and Vice President
Operating Officer

Kenichi Ando

Director & Senior Operating
Officer

Mitsuru Takeuchi

Director & Senior Operating
Officer
Director & Senior Operating
Officer

Hiroyuki Aoki
Kazuhiko Ogawa• Retiring director
Current position:
Director & Managing Operating Officer(Current position: Vice President Operating
Officer)(Current position: Senior Operating Officer
and Division Manager of Production
Planning Division)
Senior Operating Officer, Division
Manager of Management Planning Division(Current position: Senior Operating Officer,
Division Manager of Engineering Division)
Makoto Hasegawa

3) Scheduled date of assuming office
June 21, 2016- 20 -