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, 2015
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN1. Qualitative information regarding financial results for the period under review(1) Information regarding operating results
In the global economy during the three months ended June 30, 2015, in the U.S., robust economic
environment lead the firm consumer spending, which rendered the moderate economic recovery. InEurope, despite the Greek uncertain economic situation, the economy in the Eurozone has been
recovering moderately, underpinned by a favorable employment and income environment in Germany
and the U.K. Economic growth of the emerging countries, such as China, is declining and the economic
outlook remains uncertain.
Meanwhile, in the Japanese economy, improvements in corporate earnings and the employment
environment can be observed as a result of economic and financial measures by the government andBank of Japan, and economic recovery has shown a moderate recovery trend.
Under this macro-economic circumstance, in the automotive industry, automobile sales in North America
is keeping a high level, while the sales in the Asia region, which includes China, remains declining. InJapan, where the focus of sales is in the light and compact car market, sales proceeded at a low level.
Under these conditions, the Group pushed ahead with its 12th Mid-Term Plan, which started in April
2014, under the corporate policy “To become a chassis system manufacturer with overwhelming
competitiveness.” We will make the truly globalized enterprise by changing the Group to the structure ofchassis system manufacturer and by strengthening environmentally friendly technologies to promote thesales expansion.
As a result of the above, the operating results for the Group during the three months under review are asfollows. Despite the continuation of firm automobile sales in North America, the Group saw decreases insales of major customers in the Japanese market and the Chinese market. Net sales rose 9.1% year on
year to 45,430 million yen, operating income fell 49.2% year on year to 590 million yen, ordinary
income fell 51.7% year on year to 449 million yen and loss attributable to owners of parent of 98 million
yen (compared with profit attributable to owners of parent of 172 million yen in the same period of theprevious fiscal year).
Operating results by segment are as follows.
(Japan)The volume of orders reduced, reflecting a reduction in the number of automobiles produced by themajor customers of the Company. Net sales fell 25.9% year on year to 4,902 million yen. In terms ofincome/loss, despite making efforts in various improvement measures, the segment recorded an operating
loss of 409 million yen (compared with an operating income of 63 million yen in the same period of theprevious fiscal year).
(North America)
In the North American Market, firm automobile sales continued, and boosted by the positive effect offoreign exchange, net sales rose 20.5% year on year to 31,333 million yen. In terms of income/loss,
although there was an increase in development costs associated with new models for the next fiscal year,
the segment recorded an operating income of 1,042 million yen, up 2.4% year on year.
(Asia)In the Thai market there was a moderate recovery, while in the Chinese market, there was an increase insales owing to new orders from Beijing Automobile Works and SAIC-GM-Wuling Automobile. However,sales of major customers decreased and net sales rose 1.8% year on year to 9,194 million yen. In terms ofincome/loss, despite the decreased sales of major customers in China, the segment incurred costs to start
up production for new models and recorded an operating loss of 190 million yen (compared with anoperating loss of 90 million yen in the previous fiscal year).
(2) Information regarding financial position
As of the end of the three months ended June 30, 2015, total assets decreased 2,867 million yen
compared with the end of the previous fiscal year to 129,829 million yen, mainly reflecting a decrease innotes and accounts receivable - trade.
Liabilities decreased 4,838 million yen from the end of the previous fiscal year to 81,502 million yen
mainly reflecting decreases in short-term loans payable and long-term loans payable.
Net assets increased 1,970 million yen from the end of the previous fiscal year to 48,327 million yen
mainly reflecting increases in capital surplus 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, 2015, and the fiscal year
ending March 31, 2016, announced in “Consolidated Financial Results for the Fiscal Year Ended March31, 2015” on May 7, 2015, have not been changed.
2. Matters regarding summary information (Notes)(1) Changes in significant subsidiaries during the three months ended June 30, 2015
Not applicable.
(2) Application of special accounting for preparing quarterly consolidated financial statements
Tax expenses in the consolidated financial statements for a portion of consolidated subsidiaries arecalculated first by reasonably estimating the effective tax rate after applying tax effect accounting against
income before income taxes for the fiscal year including the three months under review, and next bymultiplying the quarterly income (loss) before income taxes by such estimated effective tax rate.
(3) Changes in accounting policies, changes in accounting estimates and restatements
Changes in accounting policies
Application of Accounting Standard for Business Combinations, etc.
Effective from the first quarter under review, the Company has applied the “Accounting Standard forBusiness Combinations” (ASBJ Statement No. 21, September 13, 2013), the “Accounting Standard forConsolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013) and the “AccountingStandard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013), etc. As a result, themethod of recording the amount of difference caused by changes in the Company’s ownership interestsin subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to one inwhich it is recorded as capital surplus, and the method of recording acquisition-related costs was changed
to one in which they are recognized as expenses for the fiscal year in which they are incurred.
Furthermore, for business combinations carried out on or after the beginning of the first quarter ended
June 30, 2015, the accounting method was changed to one in which the reviewed acquisition costallocation resulting from the finalization of the tentative accounting treatment is reflected in the quarterly
consolidated financial statements for the quarterly period to which the date of business combination
belongs. In addition, the presentation method for “net income” and other related items has been changed,
and “minority interests” are now presented as “non-controlling interests.” To reflect these changes, theCompany has reclassified its quarterly and full-year consolidated financial statements for the first threemonths of the previous fiscal year and the previous fiscal year.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional
measures provided in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations,Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements and Paragraph 574 (4) of the Accounting Standard for Business Divestitures. Application of the standards commenced at
the beginning of the first quarter under review and will continue going forward.
As a result, ordinary income, and income before income taxes for the three months ended June 30, 2015
have each decreased by 402 million yen. Moreover, capital surplus at the end of the three months ended
June 30, 2015 has increased 402 million yen.

-2-3. Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherTotal 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, 2015

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

8,811
23,002
5,599
3,934
8,115
3,172
52,636

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

19,762
24,787
13,933
11,161
69,644
719

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

5,162
1,667
6,829
77,193
129,829

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

17,54017,114
11,666347
437,542
54,2554,000
21,050
212
243
78
2,963
28,54886,3404,000
18,816
217
254
76
3,881
27,246
81,502

(Millions of yen)
As of March 31, 2015
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-4-

As of June 30, 2015

4,790
5,228
15,115(18)
25,1154,790
5,631
14,863(18)
25,265

858

920

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

4,301
314
5,536
17,52548,327
129,829

(2) Consolidated statements of income and comprehensive income(Millions of yen)Three months ended
June 30, 2014
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOtherTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit (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 adjustmentRemeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-5-

Three months ended
June 30, 2015

41,64836,993
4,654
3,491
1,163

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

826

8
650

93

23
108

69
177

165
173
3341
930

212
86
19
319
449

33145
145

66927
594
(45)
549
378

55589
475
(101)
373
215

172
206

(98)
314

(13)
(504)
46

18
858
(23)

(30)

23(502)
(123)

877
1,093

(228)

422

104

670

(3)

Notes to quarterly consolidated financial statements

Uncertainties of entity’s ability to continue as going concern
Not applicable.
Substantial changes in the amount of shareholders’ equity
Not applicable.
Segment information, etc.
Segment information
I.
Three months ended June 30, 2014
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
Total

25,995
351

9,036
479

41,648
3,817

9,603

26,347

9,515

45,466

63

1,017

(90)

991

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

991

Elimination of intersegment transactions

171

Operating income in the consolidated statements ofincome and comprehensive income

3.

Total

Asia

6,616
2,986Segment profit (loss)

2.

North America

1,163Disclosure of impairment loss on non-current assets and goodwill for each reportable segment
Not applicable.

II. 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
Total
Segment profit (loss)

2.

Total

Asia

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 theconsolidated statements of income and comprehensive income and main details of these differences(matters relating to difference adjustments)(Millions of yen)AmountProfit3.

North America

Reportable segments total

441

Elimination of intersegment transactions

149

Operating 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.

Significant events after reporting period
Not applicable.
-6-