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, 2023
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN1. Overview of Operating Results and Others(1) Overview of operating results for the fiscal year under review
The global economy during the fiscal year ended March 31, 2023 continued to face an uncertain outlook
due to various events taking place, including the protracted situation in Ukraine, soaring costs ofresources and raw materials, the disruptions surrounding China’s COVID policy, financial instability inEurope and the U.S. as a result of rapidly rising interest rates, further yen depreciation and other factors.
In the automotive industry, the business environment remained challenging due to production
adjustments yet unresolved as a result of the shortage of semiconductors and other products and thedisruptions surrounding China’s COVID policy, as well as rising costs of raw materials andtransportation in addition to the tight supply-demand balance for labor in the U.S.
In this business environment, the Group committed to the pursuit of having a manufacturing orientation
to provide our customers with new value, under a global policy of “Let’s exceed our limits! We will,
without compromise, produce the ‘Best One’ for all our customers,” while maintaining the basic policies
of “Back to Basics” and “Challenge for New.” In the fiscal year under review, we were able to ensure thestable launch of many new models for which orders were received in the fiscal year ended March 31,
2022 as led by our sites in Mexico, and also strengthened business in India, developed a new sales
facility in North America, and established the Sustainability Promotion Department as we continued tolay the groundwork for sustainable growth in the future.
As a result, during the fiscal year under review, net sales increased by 36.1% year on year to 261,156
million yen, operating profit increased by 78.4% year on year to 2,038 million yen, ordinary profit
increased by 48.6% year on year to 1,921 million yen, and profit attributable to owners of parent
increased by 728.1% year on year to 1,734 million yen.
Operating results by segment are as follows.
(Japan)Net sales increased by 14.7% year on year to 23,355 million yen due to the full-scale start of mass
production of ordered products from new customers and other factors. On the other hand, in terms of
profit and loss, operating profit decreased by 65.3% year on year to 417 million yen due to decreased
product sales, the impact of the mix of models and other factors.
(North America)
Net sales increased by 52.1% year on year to 169,650 million yen due to the full-scale start of mass
production of newly ordered products, the yen depreciation, and other factors. In terms of profit and loss,
operating loss was 1,040 million yen (compared to operating loss of 2,802 million yen in the previous
fiscal year) on account of continuing production adjustments at major customers, despite the effect ofincreased revenue from newly ordered products.
(Asia)The production volume of major customers decreased on account of the disruptions surrounding China’s
COVID policy and the shortage of semiconductors, but net sales increased by 13.6% year on year to68,149 million yen, partly owing to the acquisition of India Steel Summit Private Limited as a subsidiaryand the effect of foreign currency translation due to the yen depreciation. On the other hand, in terms ofloss and profit, operating profit decreased by 28.9% year on year to 2,340 million yen due to the impactsof reduced production in China.

-1-(2) Overview of financial position for the fiscal year under review
As of March 31, 2023, total assets increased by 15,205 million yen from the end of the previous fiscal
year to 176,137 million yen, reflecting decreases in merchandise and finished goods and construction inprogress, and increases in cash and deposits, accounts receivable – trade, and machinery, equipment andvehicles, net.
In spite of a decrease in short-term loans payable, liabilities increased by 11,027 million yen from the endof the previous fiscal year to 111,380 million yen, reflecting an increase in long-term loans payable.
Net assets increased by 4,178 million yen from the end of the previous fiscal year to 64,756 million yen,reflecting increases in retained earnings and foreign currency translation adjustment.
(3) Overview of cash flows for the fiscal year under review
As of March 31, 2023, cash and cash equivalents increased by 3,510 million yen from the end of theprevious fiscal year to 5,491 million yen (up 177.2% 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 17,433 million yen. The main factors were 3,300
million yen in profit before income taxes, 13,112 million yen in depreciation, a decrease in inventories of
5,253 million yen, 1,730 million yen in interest expenses paid, and 2,227 million yen in income taxes
paid.
Compared with the previous fiscal year, cash flows from operating activities changed from 1,794 million
yen provided to 17,433 million yen provided. This was mainly due to a decrease in inventories, anincrease in depreciation, and a decrease in notes and accounts receivable - trade.
(Cash flows from investing activities)
Net cash used in investing activities was 16,342 million yen. The main factor was 15,651 million yen inpurchase of property, plant and equipment.
Compared with the previous fiscal year, cash flows from investing activities changed from 15,641
million yen used to 16,342 million yen used. This was mainly due to the purchase of shares ofsubsidiaries resulting in change in scope of consolidation.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 2,340 million yen. The main factors were 11,830
million yen in net decrease in short-term loans payable, 26,721 million yen in proceeds from long-termloans payable, and 11,465 million yen in repayments of long-term loans payable.
Compared with the previous fiscal year, cash flows from financing activities changed from 11,566
million yen provided to 2,340 million yen provided. This was mainly due to a decrease in short-termloans payable and an increase in proceeds from long-term loans payable.
(Reference) Transition of cash flow indicators
65th term
Fiscal year ended
March 31, 2020

66th term
Fiscal year ended
March 31, 2021

67th term
Fiscal year ended
March 31, 2022

68th term
Fiscal year ended
March 31, 2023

Equity ratio (%)

29.9

29.5

28.0

28.4

Market value-based equity ratio (%)

5.9

10.2

6.3

7.0

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

4.9

5.0

36.2

4.2

Interest coverage ratio (times)

9.5

12.3

2.2

10.1

(Notes) Equity ratio: equity / total assets
Market value-based 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-2-* 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.

(4) Forward-looking statements
We expect the productions at major customers to trend toward normalization, despite the impacts of thetight supply-demand balance for various components and materials including semiconductors remaining.
For the earnings forecasts for the next fiscal year, we expect net sales of 287,000 million yen, operating
profit of 5,600 million yen, ordinary profit of 3,500 million yen, and profit attributable to owners ofparent of 1,500 million yen, due to the effect of the full-scale start of mass production resulting from neworders mainly in North America. Our assumptions for the exchange rate are 128 yen to the U.S. dollar,
and 18.70 yen to the Chinese yuan.
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.

-3-3. Consolidated financial statements and significant notes thereto(1)Consolidated balance sheets(Millions of yen)
As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
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
Retirement benefit asset
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets-4-

As of March 31, 2023

1,981
497
35,8308,754
7,500
11,7753,387(2)69,723

5,491
628
37,177
5,296
7,632
12,702
3,729(55)
72,60318,352
36,467
1,926
5,899
477
15,5702,672
81,366

18,88445,363
2,785
6,059
724
13,005
5,461
92,284

254
45
299

248
36
285

7,412
56
1,485
588
9,542
91,208160,931

7,464
253
1,963
1,283
10,965103,534
176,137(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
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
Deferred gains or losses on hedges
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-5-

As of March 31, 2022

As of March 31, 2023

22,96636,540
10,244
574
652
3,179
140
44
4,477
78,81924,16927,832
12,995
1,247
942
1,845
228
85
6,198
75,544

16,735
772
2,759
51
919
39
255
21,533
100,353

29,908
1,942
2,707
53
1,003
33
187
35,836111,380

6,790
6,733
26,619(62)
40,081

6,790
6,733
27,979(60)
41,443

518

543

–
4,498
7
5,025
15,47260,578160,931

386
7,731
(65)
8,595
14,71764,756
176,137(2)Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2022

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
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on negative goodwill
Gain on change in equity
Gain on cancellation of leases
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 attributable to owners of parent
Profit (loss) attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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 ofparentComprehensive income attributable to noncontrolling interests-6-

Fiscal year ended
March 31, 2023

191,892
176,290
15,601
14,4581,142

261,156
242,414
18,741
16,702
2,038

64
60

97
59

200

306

409
254
988

880
343
1,688

792
46
838
1,292

1,758
47
1,806
1,921

86
7
–
–
71
166

26
–
1,237
153
–
1,416

23
87
111
1,347
1,822
(754)
1,068
279

12
24
36
3,300
2,398
(754)
1,643
1,657

209
70

1,734
(77)

46
–
6,375
(101)

13
397
3,530
(79)

65

259

6,385
6,665

4,121
5,778

4,948

5,305

1,717

472

(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

6,790

Retained earnings

6,733

Treasury shares

26,559Total shareholders’equity(64)

40,019Changes of items during
periodDividends of surplus

(149)

(149)

Profit attributable toowners of parent

209

209

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

0

(0)

(0)

1

2

–

0

59

1

62

6,790

6,733

26,619(62)

40,081

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

490

–

(333)

Remeasurementsof defined benefit
plans
128

Total
accumulated
othercomprehensive
income286

Noncontrollinginterests

14,726

Total net assets

55,032

Changes of items during
periodDividends of surplus(149)

Profit attributable toowners of parent

209

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(0)
2
27

–

4,832

(121)

4,738

745

5,484

27

–

4,832

(121)

4,738

745

5,546

518

–

4,498

7

5,025

15,47260,578-7-

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

6,790

Retained earnings

6,733

Treasury shares

26,619Total shareholders’equity(62)

40,081

Changes of items during
periodDividends of surplus

(374)

(374)

Profit attributable toowners of parent

1,734

1,734

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

0

(0)

(0)

1

1

–

0

1,360

1

1,361

6,790

6,733

27,979(60)

41,443

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

518

–

4,498

Remeasurementsof defined benefit
plans
7

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

5,025

15,472

Total net assets

60,578Changes of items during
periodDividends of surplus(374)

Profit attributable toowners of parent

1,734

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(0)
1
24

386

3,232

(73)

3,570

(754)

2,816

24

386

3,232

(73)

3,570

(754)

4,178

543

386

7,731

(65)

8,595

14,71764,756-8-

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on change in equity
Gain on negative goodwill
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

Fiscal year ended
March 31, 2023

1,347
10,581
–
–
(5)
(7)

3,300
13,112(153)(1,237)
(5)
–

27

(255)

(5)

2

13

40

(124)
792
(839)

(157)
1,758
(752)

(200)

(306)

(63)
87

(13)
24

(1,202)885(5,957)
971

5,253
(278)

Decrease (increase) in accounts receivable - other

(570)

282

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
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

(710)
4,134
146
(798)
(1,688)
1,794

(298)
21,201190(1,730)(2,227)
17,433(15,906)
348
(43)
(41)
35

(15,651)
33
(37)
(47)
–

–

(632)

(33)
(15,641)(6)(16,342)-9-

(Millions of yen)
Fiscal year ended
March 31, 2022
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
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of lease obligations
Proceeds from sales of treasury shares
Other, net
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- 10 -

Fiscal year ended
March 31, 2023

13,359
9,948(10,745)
(0)
(149)
(958)
(585)
2
694
11,566(11,830)
26,721(11,465)
(0)
(373)
(685)
(821)
1
794
2,340

552

79

(1,727)
3,708
1,981

3,510
1,981
5,491

(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: Seventeen
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
India Steel Summit Private Limited(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- 11 -

(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.
Changes in accounting policies(Application of Accounting Standards Codification (ASC) Topic 842, “Leases”)
The Company’s consolidated subsidiaries that adopt US GAAP have adopted ASC Topic 842, Leases fromthe first quarter ended June 30, 2022. As a result, lessee’s lease transactions are, in principle, all recorded
as assets and liabilities on the balance sheet.
In accordance with the transitional measures provided in this accounting standard, the cumulative effect of
adopting this accounting standard is recognized at the beginning of the first quarter ended June 30, 2022,
which is the date of initial application of this accounting standard.
As a result, “Other” presented under property, plant and equipment, “Lease obligations” presented undercurrent liabilities, and “Lease obligations” presented under non-current liabilities each increased by 1,458
million yen, 387 million yen, and 1,094 million yen, respectively, as of March 31, 2023, compared withthe amounts that would have been recorded under the previous accounting standard. The effect on the
beginning balance of retained earnings and profit and loss for the fiscal year ended March 31, 2023 isimmaterial.

- 12 -

Changes in presentation(Consolidated balance sheets)
Since the amount of “Allowance for doubtful accounts” included in “Other” presented under “Current
assets” in the previous consolidated fiscal year became material in terms of amount, it is separately
presented as an independent account starting in the consolidated fiscal year under review. To reflect thischange in presentation, the Company has made certain reclassifications to its consolidated financial
statements for the previous consolidated fiscal year.
As a result, the amount of “Other” of 3,384 million yen presented under “Current assets” in the consolidatedbalance sheets for the previous consolidated fiscal year is reclassified into the amount of “Allowance for
doubtful accounts” of (2 million yen) and the amount of “Other” of 3,387 million yen.

- 13 -

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 nine 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, 2022
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Intersegment sales and transfers
Total

North America

Asia

Total

20,36017,137

111,524
1,497

60,007
2,714

191,892
21,34937,497113,02162,722

213,241

Segment profit (loss)

1,202(2,802)

3,292

1,691

Segment assets

69,88388,46743,514

201,865

Fiscal year ended March 31, 2023
(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

23,355
13,989169,650
1,312

68,1492,162

261,156
17,46437,345

170,962

70,311

278,620417(1,040)

2,340

1,716

69,588105,623

45,404

220,616- 14 -

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, 2022

Fiscal year ended
March 31, 2023

Reportable segments total

213,241

278,620

Elimination of intersegment transactions(21,349)(17,464)

Net sales in the consolidated financial statements

191,892

261,156

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Reportable segments total

1,691

1,716

Elimination of intersegment transactions

(548)

321

Operating profit in the consolidated financial statements

1,142

2,038

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Reportable segments total

201,865

220,616

Elimination of intersegment transactions(40,926)(44,472)(7)(6)

160,931

176,137

Net sales(Millions of yen)
Profit(Millions of yen)
AssetsOther adjustments
Total assets in the consolidated financial statements

5. Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment(Significant gain on negative goodwill)
A gain on negative goodwill of 1,237 million yen was recorded in the first quarter ended June 30, 2022
as a result of acquiring shares in India Steel Summit Private Limited to make it a consolidated
subsidiary.
The provisional accounting treatment was applied in the first quarter ended June 30, 2022, but was
finalized at the end of the fiscal year ended March 31, 2023. As a result, the tentatively calculated
amount of gain on negative goodwill of 765 million yen increased by 471 million yen to 1,237 million
yen due to the finalization of the accounting treatment.
The amount is not allocated to reportable segments as it is recorded in extraordinary income.

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Business combinations, etc.
(Business combination through acquisition)
The Company resolved to make India Steel Summit Private Limited a subsidiary by acquiring shares of thecompany at the extraordinary meeting of the Board of Directors held on March 24, 2022. India Steel
Summit Private Limited became a subsidiary of the Company on May 31, 2022 through the acquisition ofshares.
1. Summary of business combination(1) Name and business description of the acquired company
Name of company shares of which were acquired: India Steel Summit Private Limited
Description of business: Steel processing, press parts manufacturing and mold manufacturing(2) Main reason for business combination
It is aimed to demonstrate maximum superiority, having our mold business, the Company’s forte, as
our core in the India market where growth is expected.
(3) Date of business combination
May 31, 2022 (deemed date of acquisition: March 31, 2022)(4) Legal form of business combination
Share acquisition(5) Name of company after business combination
No change(6) Voting right ratio acquired
Voting right ratio held right before business combination: 10%
Voting right additionally obtained on the date of business combination: 90%
Voting right ratio held after business combination: 100%(7) Grounds for reaching the decision on acquisition of corporation
The Company acquires shares in consideration of cash.
2. Period for which the operations of the acquired company are included in the consolidated financial
statements
From April 1, 2022 to March 31, 2023
3. Acquisition cost of the acquired company and breakdown by type of consideration
Consideration for acquisition―Cash
415 million Indian rupees (661 million yen)
Acquisition cost
415 million Indian rupees (661 million yen)
4. Descriptions and amounts of main acquisition-related expenses
Advisory fees and commissions: 7 million yen
5. Amount of gain on negative goodwill and reason for occurrence(1) Amount of gain on negative goodwill
1,237 million yen(2) Reason for occurrence
Since net assets at fair value at the time of business combination exceeded the acquisition cost.

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6. Amounts of the assets accepted and liabilities undertaken on the date of business combination and main
breakdown thereof
Current assets
1,496 million yen
Non-current assets
2,074
Total assets
3,571
Current liabilities
1,330
Non-current liabilities
218
Total liabilities
1,548- 17 -

Per share information(Yen)
Fiscal year ended
March 31, 2022
Net assets per share
Basic earnings per share

Fiscal year ended
March 31, 2023

2,426.74

2,691.60

11.27

93.30

(Notes) 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 per share.
3. Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

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

209

1,734

Amounts not attributable to common shareholders(Millions of yen)––

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

209

1,734

Average number of shares (Thousands of shares)

18,585

18,589Adjustment 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––

Diluted earnings per share

Significant events after reporting period(Establishment of the subsidiary)
The Company resolved to establish a subsidiary (F-TECH NORTH AMERICA INC.) in the U.S. at themeeting of the Board of Directors held on December 8, 2022, and established the subsidiary on April 3,
2023.
1. Purpose of the establishment of the subsidiary
As the automotive industry faces an era of profound transformation, the Group has been working todiversify its customers with the aim of expanding its business and stabilizing its profit structure. We seek
to further accelerate this movement by establishing a site for sales activities in the U.S., a region that hosts
the world’s second largest automotive market and where many automakers are concentrated.

- 18 -

2. Overview of the subsidiary(1) Company name

F-TECH NORTH AMERICA INC.

(2) Address

Michigan, U.S.

(3) Representative

Hajime Fujitaki (Director & Senior Managing Executive Officer of
the Company)(4) Business description

Sales activities for automakers in North America and any related
business operations(5) Capital

US$300,000(6) Date of foundation

April 3, 2023

(7) Relationship between the
Company and the subsidiary

Capital relationship: A wholly-owned subsidiary of the Company
Personnel relationship: One Director and one employee of theCompany are concurrently serving as officers of the new company.
Business relationship: Not applicable at this point in time

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4. Other information(1) Changes in officers
1) Changes in representatives
Not applicable.
2) Changes in other officers• Candidate for new Auditor (Standing Statutory Auditor)
Michiaki Nakanishi(current position: Director of F&P MFG., INC.)• Auditors who plans to retire
Masao Toyoda (current position: Standing Statutory Auditor)
3) Scheduled appointment/retirement dateJune 22, 2023
For more details of changes in officers, please refer to “Notice Regarding Selection of Candidates for
Directors and Auditors, Changes in Officers, and Changes in Commissioned Matters” released on February
21, 2023.

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