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, 2017
<under Japanese GAAP>

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPAN1. Qualitative information regarding financial results for the period under review(1) Information regarding operating results
The global economy in the three months ended June 30, 2017 has continued a recovery trend mainly inthe developed countries. In the United States, consumer spending has been firm. In Europe, despite theuncertain economic outlook mainly due to the effects of geopolitical risks, the economy was on moderate
recovery trend. Although there has been a continued economic slowdown in China, other emerging
countries have been in a trend of economic recovery.
On the other hand, in the Japanese economy, a trend of improved earnings has been seen mainly inexport-related companies owing to yen depreciation, and consumer spending has been steady, which led
to a continued mild economic recovery.
Under this macro-economic circumstance, in the automotive industry, automotive sales have been slow
in the United States even with the low interest rates and increased sales incentives from automotivemanufacturers. In China, automotive sales remained low due to the impact of restrictive monetary
policies executed by the government to control the overheated real estate market. In Europe, automobilesales remained solid due to robustness in economic situations. In Japan, with an upward trend ofconsumer spending, firm automobile sales continued.
Under these circumstances, the Group has set the basic policies of “Back to Basics” and “Challenge forNew” outlined in the 13th Mid-term plan, which started in April 2017, and has been working to provide
its customers with new value.
The operating results for the Group during the three months under review are as follows. The Groupbenefited from an increase in production by major customers in the Japanese market, continuingly steadyproduction by major customers in the North American market, and favorable sales by customers in theChinese market. Net sales rose 11.6% year on year to 52,720 million yen. In terms of profit (loss), due toan increase in cost associated with the startup of products for new orders in North America and adecrease in production of high-value-added products, operating profit decreased 15.6% year on year to1,843 million yen, ordinary profit decreased 15.0% year on year to 1,495 million yen and profit
attributable to owners of parent rose 7.0% year on year to 710 million yen.
Operating results by segment are as follows.
(Japan)An increase in production volume of the major customers of the Company, along with an increase inexport sales, led to net sales rising by 13.3% year on year to 6,544 million yen. The segment recorded an
operating profit of 852 million yen, up 177.0% year on year.
(North America)
In the North American market, as firm automobile sales of major customers continued, net sales rose
11.2% year on year to 31,640 million yen. In terms of profit (loss), the segment recorded an operating
profit of 249 million yen, down 76.5% year on year due to an increase in cost associated with the startupof products for new orders and a decrease in production of high-value-added products.
(Asia)In the Chinese market, due to favorable sales of major customers, net sales rose 11.5% year on year to14,534 million yen and operating profit rose 24.4% year on year to 1,230 million yen.
(2) Information regarding financial position
As of June 30, 2017, total assets increased 505 million yen compared with the end of the previous fiscal
year to 144,926 million yen, mainly reflecting increases in machinery, equipment and vehicles, andconstruction in progress.
Liabilities increased 948 million yen from the end of the previous fiscal year to 95,636 million yen
mainly reflecting an increase in short-term loans payable.
Net assets decreased 442 million yen from the end of the previous fiscal year to 49,290 million yen
mainly reflecting decreases in foreign currency translation adjustment and non-controlling interests.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
The consolidated earnings forecasts for the six months ending September 30, 2017, and the fiscal year
ending March 31, 2018, announced in “Consolidated Financial Results for the Fiscal Year Ended March
31, 2017” on May 10, 2017, have not been changed.

-1-2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and suppliesOther
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
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-2-

As of June 30, 2017

5,719
33,151
5,883
4,228
8,533
4,383
61,8995,288
32,079
6,060
4,652
8,819
4,759
61,65918,93733,374
11,416
10,94874,676508

18,64034,342
12,203
10,54475,731
430

5,677
1,676
(17)
7,336
82,521
144,420

5,529
1,606(30)
7,105
83,267
144,926

21,186
20,562
10,953
649
134
9,979
63,465

20,37424,202
11,103502
46
9,711
65,941

2,350
23,271
280
987
67
4,265
31,222
94,6882,350
22,165
84981
65
4,047
29,695
95,636

(Millions of yen)
As of March 31, 2017
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-3-

As of June 30, 2017

5,615
6,155
21,425(18)
33,1775,615
6,155
21,850(18)
33,602740

655

270(533)477
16,07749,732
144,420

20(480)196
15,49049,290144,926

(2) Consolidated statements of income and comprehensive income(Millions of yen)

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
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests-4-

Three months ended
June 30, 2016

Three months ended
June 30, 201747,254
41,140
6,113
3,930
2,183

52,72046,736
5,984
4,140
1,843

15
23

17
18

124

13

41
204

49
98

211
414
3
629
1,759

227
140
77
446
1,495

4
4

1
1

1
4
5
1,758
600
60
660
1,098

0
13
13
1,483
563
(78)
485
997

663
434

710
287

(Millions of yen)Three months ended
June 30, 2016
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-5-

Three months ended
June 30, 2017

(131)
(3,753)
18

(69)
(232)
52

(218)

(39)

(4,085)(2,987)(288)
709(2,122)

428

(865)

280

(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.
Application of special accounting for preparing quarterly consolidated financial statements
Tax expenses in the quarterly consolidated financial statements for a portion of consolidated subsidiaries
are calculated first by reasonably estimating the effective tax rate after applying tax effect accounting
against profit before income taxes for the fiscal year including the first quarter ended June 30, 2017, andnext by multiplying the quarterly profit (loss) before income taxes by such estimated effective tax rate.

-6-Segment information, etc.
Segment information
I.
Three months ended June 30, 2016
1. Disclosure of net sales and profit for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Transactions with other segments
Total

28,441
472

13,034638

47,254
5,162

9,829

28,914

13,672

52,416

307

1,061

989

2,358

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

3.

Total

Asia

5,777
4,051

Segment profit

2.

North America

Reportable segments total

2,358

Elimination of intersegment transactions(174)

Operating profit in the consolidated statements ofincome and comprehensive income

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

II. Three months ended June 30, 2017
1. Disclosure of net sales and profit for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Transactions with other segments
Total
Segment profit

2.

North America

Total

6,544
7,007

31,640395

14,534726

52,7208,129

13,552

32,036

15,26060,850

852

249

1,230

2,331

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.

Asia

Reportable segments total

2,331

Elimination of intersegment transactions(488)

Operating profit in the consolidated statements ofincome and comprehensive income

1,843

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

Significant events after reporting period
Not applicable.

-7-