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, 2022
<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, 2022 remained in unstable conditions morethan before due to a re-spread of the novel coronavirus infection based on Omicron variant, soaring
resource prices, and Russia’s invasion of Ukraine.
In the automotive industry, the future outlook remained uncertain due to the concerns for further
disruptions to supply chains resulting from Russia’s invasion of Ukraine and the lockdown in Shanghai
in line with a zero-COVID policy in China in addition to the tight supply-demand balance ofsemiconductors, various components and materials, as well as soaring raw material costs andtransportation costs.
In this business environment, the Group launched the 14th medium-term plan in April 2020. Whilemaintaining the basic policies of “Back to Basics” and “Challenge for New,” we have established a
global policy of “Let’s exceed out limits! We will, without compromise, produce the ‘Best One’ for all
our customers.” Under this global policy, we have been working to provide our customers with newvalue and have made efforts to obtain new business. This resulted in new orders for seven models fromsix automakers in Japan, North America, and Asia and is expected to contribute to earnings from the next
fiscal year onwards. In addition, responding flexibly to changes in the environment and issues brought by
the novel coronavirus infections, we have been striving to embody our policies for the 14th medium-termplan by such means as seeking new business contracts and developing new technologies for theelectrification of mobility, optimizing investment, engaging in various improvement activities, andconducting cost reductions.
As a result, during the fiscal year under review, net sales increased by 4.5% year on year to 191,892
million yen, operating profit decreased by 62.8% year on year to 1,142 million yen, ordinary profit
decreased by 45.8% year on year to 1,292 million yen, and profit attributable to owners of parent was
209 million yen (compared to loss attributable to owners of parent of 1,165 million yen in the previous
fiscal year).
Operating results by segment are as follows.
(Japan)As the volume of orders from major customers was impacted by disruptions to the supply chain such as
the shortage of semiconductors, net sales increased by 3.4% year on year to 20,360 million yen, equal to
the level of the previous fiscal year when the net sales had declined during the novel coronavirus
pandemic. In terms of profit and loss, operating profit increased by 301.1% year on year to 1,202 million
yen as a result of an increase in product sales and cost reductions.
(North America)
Net sales increased by 1.0% year on year to 111,524 million yen, equal to the level of the previous fiscal
year when the net sales had declined during the novel coronavirus pandemic owing also to the impacts of
the weaker yen. This was achieved despite the significant impacts of productions at major customers
reduced more than the previous fiscal year due to the impacts of disruptions to the supply chain,including the shortage of semiconductors. In terms of profit and loss, operating loss decreased by308.1%year on year to 2,802 million yen. This was due to the impacts larger than during the novel
corona pandemic in the previous fiscal year resulting from the suspensions of factory operation andproduction reductions that had occurred intermittently.
(Asia)Net sales increased by 12.1% year on year to 60,007 million yen benefited by the weaker yen as well as
the elimination of the impacts of suspensions of factory operations caused by the spread of the novel
coronavirus infection in the first quarter of the previous fiscal year. This was achieved although the
production reductions have continued at major customers owing to the disruptions to the supply chain,including the shortage of semiconductors. In terms of loss and profit, operating profit decreased by
17.6% year on year to 3,292 million yen due to the impacts of increases in outsourcing expenses andtransportation costs.

-1-(2) Overview of financial position for the fiscal year under review
As of March 31, 2022, total assets increased by 24,217 million yen from the end of the previous fiscal
year to 160,931 million yen, reflecting a decrease in cash and deposits, and increases in accounts
receivable – trade, inventories, and construction in progress.
Liabilities increased by 18,670 million yen from the end of the previous fiscal year to 100,353 million
yen, reflecting an increase in short-term loans payable.
Net assets increased by 5,546 million yen from the end of the previous fiscal year to 60,578 million yen,reflecting an increase in foreign currency translation adjustment.
(3) Overview of cash flows for the fiscal year under review
As of March 31, 2022, cash and cash equivalents decreased by 1,727 million yen from the end of theprevious fiscal year to 1,981 million yen (down 46.6% year on year). Cash flows in the fiscal year underreview 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 1,794 million yen. The main factors were 1,347
million yen in profit before income taxes, 10,581 million yen in depreciation, an increase in notes andaccounts receivable – trade of 1,202 million yen, an increase in inventories of 5,957 million yen, and
1,688 million yen in income taxes paid.
Compared with the previous fiscal year, cash flows from operating activities changed from 9,956 million
yen provided to 1,794 million yen provided. This was mainly due to increases in foreign exchange losses(gains) and inventories, and a decrease in notes and accounts payable – trade.
(Cash flows from investing activities)
Net cash used in investing activities was 15,641 million yen. The main factors were 15,906 million yen
in purchase of property, plant and equipment and 348 million yen in proceeds from sales of property,
plant and equipment.
Compared with the previous fiscal year, cash flows from investing activities changed from 10,726
million yen used to 15,641 million yen used. This was mainly due to an increase in purchase of property,
plant and equipment, and a decrease in purchase of investment securities.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 11,566 million yen. The main factors were 13,359
million yen in net increase in short-term loans payable and 9,948 million yen in proceeds from long-termloans payable, and 10,745 million yen in repayments of long-term loans payable.
Compared with the previous fiscal year, cash flows from financing activities changed from 4,363 million
yen used to 11,566 million yen provided. This was mainly due to an increase in short-term loans payable,
an increase in proceeds from long-term loans payable, and an increase in repayments of long-term loans
payable.
(Reference) Transition of cash flow indicators
64th term
Fiscal year ended
March 31, 201965th term
Fiscal year ended
March 31, 2020

66th term
Fiscal year ended
March 31, 2021

67th term
Fiscal year ended
March 31, 2022

Equity ratio (%)

30.5

29.9

29.5

28.0

Market value-based equity ratio (%)

12.2

5.9

10.2

6.3

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

2.0

4.9

5.0

36.2

Interest coverage ratio (times)

19.0

9.5

12.3

2.2

(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 productions at major customers to be continuously reduced due to the impacts of the tightsupply-demand balance for various components and materials including semiconductors as well as
lockdown in Shanghai. However, given strong automotive demand, we expect the productions to trend
toward normalization gradually. For the earnings forecasts for the next fiscal year, we expect net sales of
270,000 million yen, operating profit of 4,000 million yen, ordinary profit of 3,000 million yen, andprofit attributable to owners of parent of 1,000 million yen. Our assumptions for the exchange rate are
127 yen to the U.S. dollar, and 19 yen to the Chinese yuan.
The above earnings forecasts reflected the impacts of disruptions to the supply chains wherever possible
such as shortage of the semiconductors and lockdown in Shanghai. We will disclose the earnings
forecasts as necessary in accordance with the developments in the future.
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)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
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
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, 2021

As of March 31, 2022

3,708
31,578
–
–
6,547
4,351
8,743
2,744
57,673

1,981–
497
35,8308,754
7,500
11,775
3,384
69,723

17,14732,880
1,726
5,859
238
9,034
3,125
70,012

18,352
36,467
1,926
5,899
477
15,5702,672
81,366

282
37
320

254
45
299

6,995
75
1,025
611
8,708
79,041
136,714

7,412
56
1,485
588
9,542
91,208160,931(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
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, 2021

As of March 31, 2022

19,772
20,872
9,884
472
658
3,425
44
31
4,241
59,401

22,96636,540
10,244
574
652
3,179
140
44
4,477
78,81916,943
1,390
2,771
57
791
44
282
22,28081,682

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

6,790
6,733
26,559(64)
40,0196,790
6,733
26,619(62)
40,081

490

518

(333)
128
286
14,72655,032
136,714

4,498
7
5,025
15,47260,578160,931(2)Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2021

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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy income
Gain on cancellation of leases
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss attributable to the novel coronavirus
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit 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 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, 2022

183,647
166,616
17,03013,958
3,072

191,892
176,290
15,601
14,458
1,142

51
40

64
60

152

200

–
196
440

409
254
988

806
264
59
1,129
2,383

792
46
838
1,292

15
6
1,838
–
1,860

86
7
–
71
166

20
67
2,830
2,919
1,324
2,068
240
2,309
(984)

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

(1,165)
180

209
70

267
2,195
419

46
6,375
(101)

63

65

2,945
1,961

6,385
6,665

899

4,948

1,061

1,717

(3) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance

Capital surplus

6,790

Retained earnings

Treasury shares

Total shareholders’equity27,912(18)

41,914

7,230

6,790

7,230

27,912(18)

41,914

Changes of items during
periodDividends of surplus

(187)

(187)

Loss attributable toowners of parent(1,165)(1,165)Purchase of treasury
shares
Disposal of treasury
sharesCapital increase of
consolidated subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(45)

(45)
-

(494)

(494)

(2)

(2)

–

(497)

(1,352)(45)(1,895)

6,790

6,733

26,559(64)

40,019

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance

174

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans(1,657)(295)

Total accumulated
othercomprehensive
income(1,778)Non-controllinginterests

14,156

Total net assets

54,292–174(1,657)(295)(1,778)14,15654,292

Changes of items during
periodDividends of surplus(187)

Loss attributable toowners of parent(1,165)Purchase of treasury
shares
Disposal of treasury
sharesCapital increase of
consolidated subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period

(45)
–
(494)
(2)

316

1,324

423

2,064

570

2,634

316

1,324

423

2,064

570

739

490

(333)

128

286

14,72655,032-7-

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance

Capital stock

Capital surplus

6,790

6,733

Retained earnings

Total shareholders’equityTreasury shares

26,559(64)

40,019
-

6,790

6,733

26,559(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
sharesCapital increase of
consolidated subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net 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

Non-controllinginterests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period
Cumulative effect of changes
in accounting policies
Restated balance490

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

(333)

128

Total accumulated
othercomprehensive
income286

14,72655,032
-

490

(333)

128

286

14,72655,032

Changes of items during
periodDividends of surplus(149)

Profit attributable toowners of parent

209

Purchase of treasury
shares
Disposal of treasury
sharesCapital increase of
consolidated subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net 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

15,47260,578-8-

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
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, 2022

1,324
10,032
(5)
(6)

1,347
10,581
(5)
(7)

229

27

(69)

(5)

(46)

13

(92)
806
8

(124)
792
(839)

(152)

(200)

5
67

(63)
87

(2,477)(1,202)

43
1,667(5,957)971

Decrease (increase) in accounts receivable - other

(119)

(570)

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

1,040
12,256121(811)(1,609)
9,956

(710)
4,134
146
(798)
(1,688)1,794(10,225)
33
(73)
(477)
10
5
(10,726)(15,906)
348
(43)
(41)
35
(33)
(15,641)-9-

(Millions of yen)
Fiscal year ended
March 31, 2021
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
Repayments of installment payables
Cash dividends paid
Repayments to non-controlling shareholders
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, 2022

90
7,233
(9,778)
(45)
(143)
(187)
(83)
(815)
(633)
–
–
(4,363)

13,359
9,948(10,745)
(0)
–
(149)
–
(958)
(585)
2
694
11,566(37)

552(5,170)
8,879
3,708

(1,727)
3,708
1,981

(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: 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
Accounting Standard for Revenue Recognition
The Company and its domestic consolidated subsidiaries applied the Accounting Standard for Revenue
Recognition (ASBJ Statement No. 29, March 31, 2020; hereinafter, “Revenue Recognition AccountingStandard”) and other standards from the start of the consolidated fiscal year under review, and revenue isrecognized at an amount that is expected to be received in exchange for promised goods or services whencontrol of the goods or services transfers to the customer.
As a result of the application, accounting treatment for some buy-sell transactions with repurchaseobligation has been changed, thereby such transactions are recognized as financial transactions, andending inventory of supplied articles remaining at fee-paying suppliers are recognized as “Work inprocess,” and consideration received from the fee-paying suppliers are recognized as financial liabilities.
In the application of the Revenue Recognition Accounting Standard and other standards, the Company
and its domestic consolidated subsidiaries elected to apply the transitional measures set forth in the proviso
of Paragraph 84 of the Revenue Recognition Accounting Standard, thereby the cumulative effect ofretrospectively applying the new accounting standards for the periods prior to the start of the consolidated
fiscal year under review is added to or subtracted from retained earnings at the start of the consolidated
fiscal year under review, and the new accounting standards are applied from the balance at the start of the- 12 -

period.
As a result, net sales and cost of sales for the consolidated fiscal year under review both increased by 709
million yen. There is no impact on the balance of retained earnings at the start of the consolidated fiscal
year under review.
Due to the application of the Revenue Recognition Accounting Standard and other standards, “Other”
presented under “Current assets” in the consolidated balance sheet for the previous fiscal year is partially
included in “Work in process” from the consolidated fiscal year under review, and “Notes and accounts
payable - trade” presented under “Current liabilities” in the consolidated balance sheet for the previous
fiscal year are partially presented as “Other.” In addition, some transactions which were accounted for asa minus in “Cost of sales” in the consolidated statement of income for the previous consolidated fiscal
year, have been included in “Net sales.”In addition, pursuant to the transitional measures set forth in the Paragraph 89-2 of the Revenue
Recognition Accounting Standard, no reclassification was made to the figures for the previous
consolidated fiscal year in accordance with the new presentation methods.
Accounting Standard for Fair Value Measurement
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019; hereinafter,“Fair Value Measurement Accounting Standard”) and other standards were applied from the start of theconsolidated fiscal year under review, and pursuant to the transitional measures set forth in Paragraph 19of the Fair Value Measurement Accounting Standard and in Paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019), new accounting policies stipulated by the
Fair Value Measurement Accounting Standard will be applied going forward. The application has no impact
on the consolidated financial statements.
Changes in presentation
Consolidated statements of cash flows
Since the amount of “Increase (decrease) in accounts payable – other”, separately represented as acomponent of “Cash flows from operating activities” in the previous consolidated fiscal year, became
immaterial, it is included in “Others” starting from the consolidated fiscal year under review. To reflect thischange in reporting method, the Company has made certain reclassifications to its consolidated financial
statements for the previous consolidated fiscal year.
Since the amount of “Increase (decrease) in accounts payable – other” in “Cash flows from operating
activities” in the previous consolidated fiscal year increased its materiality, it is separately presented as anindependent account starting in this consolidated fiscal year under review. To reflect this change inreporting method, the Company has made certain reclassifications to its consolidated financial statements
for the previous consolidated fiscal year.
As a result, the amount of “Increase (decrease) in accounts payable – other” of 1,027 million yen and theamount of “Others” of (106 million yen) in “Cash flows from operating activities” in the consolidated
statements of cash flows for the previous consolidated fiscal year are reclassified into the amount of“Decrease (increase) in accounts receivable – other” of (119 million yen) and the amount of “Others” of
1,040 million yen.
Additional information
Accounting estimates relating to the impacts of the novel coronavirus, etc.
The impacts of the novel coronavirus and production cuts of major customers arising from the disruption of
supply chains due to shortage of semiconductors, etc. on the Group’s operating performance are estimated for- 13 -

the accounting purpose based on the information available at this time and on the assumption that the impacts
will continue for a certain period in the subsequent consolidated fiscal year while it is difficult to accurately
predict the future spread of the novel coronavirus as well as when it will be contained.
However, because the impact of the novel coronavirus is highly uncertain, if there are changes to theaforementioned assumption, there is a possibility that there will be an impact on the financial position,
operating results, and cash flows in the next fiscal year.
Making India Steel Summit Private Limited a subsidiary
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.
1. Summary of business combination(1) Name and business description of the acquired company
Name of company shares of which are acquired
India Steel Summit Private Limited
Description of business

Steel processing, press parts manufacturing andmold 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(Date scheduled to acquire shares)(4) Legal form of business combination
Share acquisition(5) Name of company after business combination
No change(6) Voting right ratio to be acquired
Voting right ratio to be held right before business combination 10%
Voting right to be additionally obtained on the date of business combination 90%
Voting right ratio to be held after business combination
100%(7) Grounds for reaching the decision on acquisition of corporation
The Company acquires shares in consideration of cash.
2. Acquisition cost of the acquired corporation and breakdown by type of consideration
Not finalized at this point in time.
3. Descriptions and amounts of main acquisition-related expenses
Not finalized at this point in time.
4. Amount of arising goodwill, cause of arising of goodwill, method of amortization and amortization
periodNot finalized at this point in time.
5. Amounts of the assets to be accepted and liabilities to be undertaken on the date of businesscombination and main breakdown thereof
Not finalized at this point in time.
Consolidated statements of income and comprehensive income
In the consolidated fiscal year under review, some consolidated subsidiaries received a government subsidy
to cover the cost of leave allowances, etc. during the periods when operations were suspended or shortenedin response to government requests. The subsidy income is offset by relevant personnel expenses, etc. (costof sales of 765 million yen and selling, general and administrative expenses of 17 million yen).

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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 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, 2021
(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Intersegment sales and transfers
Total

Asia

Total

19,692
15,097

110,405
1,324

53,5492,747

183,647
19,16934,789111,72956,297

202,816

Segment profit (loss)
Segment assets

North America

299

(686)

3,993

3,606

64,681

67,97642,193

174,852

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- 15 -

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, 2021

Fiscal year ended
March 31, 2022

Reportable segments total

202,816

213,241

Elimination of intersegment transactions(19,169)(21,349)

Net sales in the consolidated financial statements

183,647

191,892

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Reportable segments total

3,606

1,691

Elimination of intersegment transactions

(534)

(548)

Operating profit in the consolidated financial statements

3,072

1,142

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Reportable segments total

174,852

201,865

Elimination of intersegment transactions(38,129)(40,926)(8)(7)

136,714160,931

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

5. Changes in reportable segments, etc.
As stated in “Changes in accounting policies,” Revenue Recognition Accounting Standard and otherstandards are applied from the start of the consolidated fiscal year under review, and accounting
treatment methods for revenue recognition have been changed. Accordingly, calculation methods forprofit (loss) for business segments have been changed in the same manner.
Due to this change, net sales for the reportable segment of “Japan” in the consolidated fiscal year
under review increased by 709 million yen as compared to the previous methods.

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Per share information(Yen)
Fiscal year ended
March 31, 2021
Net assets per share
Basic earnings (loss) per share(Note)

Fiscal year ended
March 31, 2022

2,168.91

2,426.74(62.58)

11.27

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 (loss) per share.
3. Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Basic earnings (loss) per share
Profit (loss) attributable to owners of parent (Millionsof yen)(1,165)

209––

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

(1,165)

209

Average number of shares (Thousands of shares)

18,617

18,585Adjustment 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––

Amounts not attributable to common shareholders(Millions of yen)

Diluted earnings per share

Significant events after reporting period
Not applicable.

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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 (Outside Auditor)
Kenichiro Masuda(current position: President, The Saitama Resona Foundation For Industrial and Economic Promotion)• Auditors who plans to retire
Shigeharu Nakamura (current position: Outside Auditor)
3) Scheduled appointment/retirement dateJune 23, 2022
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
24, 2022.

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