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 Six Months Ended September 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 six months ended September 30, 2015, in the U.S., robust economic
environment has led to improved employment and steady increase in household consumption. In Europe,
the economy is continuing to recover due to the firm consumer spending. Economic growth of theemerging countries, such as China, is declining and the economic outlook remains uncertain.
In the Japanese economy, personal consumption remains generally firm, and the economy has shown amoderate recovery trend.
Under these macro-economic circumstances, in the automotive industry, automobile sales in North
America remains favorable, while in Asia region, the automotive industry has been sluggish, reflecting
slowing growth in the Chinese market. In Japan, the automotive industry has been sagging mainly in thelight and compact car market, due to the increase of the tax levied on the light vehicle and the decrease of
the tax benefit of purchasing the eco-cars by the change of relative temporary regulation.
Under these conditions, the Group pushed ahead with its 12th Mid-Term Plan, which started in April
2014, under the whole corporate policy “To become a chassis system manufacturer with overwhelming
competitive strength.” We will make the truly globalized enterprise by changing the Group to thestructure of chassis system manufacturer and by strengthening environmentally friendly technologies topromote the sales expansion.
As a result of the above, the operating results for the Group during the six months under review are asfollows. Bolstered by robust ongoing automobile sales in the North America and the impact of yen
depreciation and other factors, net sales rose 11.3% year on year to 93,983 million yen. Owing to reduced
domestic production and other factors, operating income fell 5.2% to 2,115 million yen, ordinary income
decreased 1.9% to 2,102 million yen, and profit attributable to owners of parent fell 19.4% to 420 millionyen.
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 23.1% year on year to 10,216 million yen, while thesegment recorded an operating loss of 575 million yen, compared with an operating income of 37 million
yen in the same period of the previous 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 62,082 million yen and the segment recorded anoperating income of 2,100 million yen, up 22.8% year on year.
(Asia)
Due to a recovery in the number of automobiles produced by the major customers in Thailand, net sales
grew 10.3% year on year to 21,684 million yen, and operating income increased 95.2% to 373 millionyen.
(2) Information regarding financial position
As of September 30, 2015, total assets increased 5,214 million yen compared with the end of theprevious fiscal year to 137,912 million yen, mainly reflecting increases in notes and accounts receivable trade, buildings and structures, net, and machinery, equipment and vehicles, net.
Liabilities increased 3,983 million yen from the end of the previous fiscal year to 90,324 million yen
mainly reflecting increases in notes and accounts payable - trade, current portion of long-term loans
payable and long-term loans payable.
Net assets increased 1,231 million yen from the end of the previous fiscal year to 47,588 million yen
mainly reflecting increases in capital surplus and non-controlling interests.
(3) Information regarding differences between consolidated earnings forecasts and actual results andrevisions to earnings forecasts
Taking recent performance trends into consideration, the Company has revised its consolidated earnings
forecasts, which were announced on May 7, 2015, as described below.

-1-(i) Differences between earnings forecasts and actual results
Differences between earnings forecasts and actual results in the six months ended September 30, 2015
(From April 1, 2015 to September 30, 2015)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perincome
incometo owners ofshare (Yen)parentPrevious forecasts (A)90,000
2,000
1,850
300
19.54
Actual results (B)93,983
2,115
2,102
420
27.37
Difference (B-A)
3,983
115
252
120
Difference (%)
4.4
5.8
13.6
40.1
(Reference) Actual results forthe second quarter of theprevious fiscal year
84,450
2,232
2,143
521
33.96
(Six months ended September30, 2014)
Reasons for the differences
During the six months ended September 30, 2015, sales to major customers in Japan decreased, but thesesales increased in North America and Asia region. This factor, as well the favorable impact of exchange
rates, led to higher net sales and income than had been previously forecasted.
(ii) Earnings forecasts revisions
Revisions to consolidated earnings forecasts for the fiscal year ending March 31, 2016 (From April 1,2015 to March 31, 2016)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perincomeincome
to owners ofshare (Yen)parentPrevious forecasts (A)185,000
6,500
6,200
2,600
169.31
Current forecasts (B)194,000
6,500
6,300
2,500
162.80Difference (B-A)
9,000
100
(100)
－
Difference (%)
4.9
1.6(3.8)－(Reference) Actual results forthe previous fiscal year
175,579
5,564
5,791
1,772
115.42(Fiscal year ended March 31,2015)
Reasons for the revisions
The revised earnings forecasts for the fiscal year ending March 31, 2016, shown above, take into accountreduced production in Japan and other factors. Although net sales are now expected to be higher than in
the previous forecasts, owing to the favorable impact of exchange rates, we expect operating income tobe on a par with the previous forecasts due to reduced production in Japan, and expect profit attributableto owners of parent to be lower than previous forecasts. Gain on transfer of non-current assets describedin the “6. Future Outlook” of the “Notice Related to the Transfer of Non-current Assets” announced onOctober 19, 2015, are not reflected in these forecasts, as the timing of this sale is undetermined.
Average exchange rates for the fiscal year are assumed at 119.86 yen to the U.S. dollar.
Note: The above-stated earnings forecasts are based on information currently available to the Company
and are believed to be rational on this basis. However, as they include risks and uncertainties due
to various factors regarding the future outlook, actual results may differ from forecasts.

-2-2. Matters regarding summary information (Notes)(1) Changes in significant subsidiaries during the six months ended September 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 second quarter ended September 30, 2015,
and next by multiplying the quarterly income (loss) before income taxes by such estimated effective taxrate.
(3) Changes in accounting policies, changes in accounting estimates and restatements
Effective from the first quarter ended June 30, 2015, the Company has applied the “Accounting Standardfor Business Combinations” (ASBJ Statement No. 21, September 13, 2013), the “Accounting Standard
for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013) and the“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013), etc. As aresult, the method of recording the amount of difference caused by changes in the Company’s ownershipinterests in subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to
one in which it is recorded as capital surplus, and the method of recording acquisition-related costs waschanged 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 six
months of the previous fiscal year and the previous fiscal year.
In the consolidated cash flow statements for the six months ended September 30, 2015, cash flows
related to the acquisition or sale of stock of a subsidiary that do not result in changes in the scope ofconsolidation are stated in “cash flows from financing activities.” Cash flows for acquisition-related costs
for stock of a subsidiary that do result in changes in the scope of consolidation and cash flows for
expenses associated with the acquisition or sale of stock of a subsidiary that do not result in changes inthe scope of consolidation are stated in “cash flows from operating activities.”
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional
measures provided in Paragraph 58-2 (4) of the 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 ended June 30, 2015 and will continue going forward.
As a result, ordinary income and income before income taxes for the six months ended September 30,
2015 have each decreased by 402 million yen. Moreover, capital surplus as of September 30, 2015 has
increased 402 million yen.

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

As of September 30, 2015

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

9,021
28,801
5,063
3,886
8,173
3,543
58,48819,657
24,687
12,365
10,81667,527780

20,832
25,663
14,764
10,80972,070
743

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

4,919
1,689
6,609
79,423
137,912

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

18,77917,76012,720509
61
10,63860,4704,000
21,050
212
243
78
2,963
28,54886,3404,000
21,793223
256
753,505
29,85390,324

AssetsCurrent assets
Cash and deposits
Notes and 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
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-4-(Millions of yen)
As of March 31, 2015
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equityAccumulated 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 September 30, 2015

4,790
5,228
15,115(18)
25,1154,790
5,631
15,382(18)
25,784

858

749

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

3,348
289
4,387
17,41547,588137,912(2) Consolidated statements of income and comprehensive income(Millions of yen)Six months ended
September 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
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
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 attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-6-

Six months ended
September 30, 2015

84,45074,981
9,469
7,237
2,232

93,98384,178
9,804
7,688
2,115

15
34

20
31

135

214

–
85
271

37
127
431

335
11
13
360
2,143

416
–
28
445
2,102

8
8

149
149

1
140
141
2,010
1,157
(110)
1,047
963

0
56
56
2,195
977
(86)
891
1,303

521
441

420
883

39
430
25(108)
(691)
(47)

126

(102)

622
1,585(949)
354

888

(206)

696

560

(3) Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2014
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in assets and liabilities related toretirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors’
bonusesInterest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued expenses
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 securitiesOther, net
Net cash provided by (used in) investing activities-7-

Six months ended
September 30, 2015

2,010
4,153(2)

2,195
5,016
(2)

(94)

(56)

(0)

10(31)

(26)

(50)
335
14(51)
416
(70)

(135)

(214)

(7)
140

(149)
56

1,821

(1,758)(1,488)

225

(174)

2,350

83
1,606
8,179
83
(334)
(1,480)
6,448

(26)
1,081
8,997
86(416)(1,908)6,759(6,691)17(96)(15)(15)(6,801)(8,936)
187
(73)
(15)
7(8,830)

(Millions of yen)Six months ended
September 30, 2014
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
Proceeds from share issuance to non-controllingshareholders
Cash dividends paid
Proceeds from sales and Installment backRepayments of installment payables
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Proceeds from sales and leasebacks
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-

Six months ended
September 30, 2015

2,584
2,771
(5,638)–(1,385)7,530(5,467)
(0)

–

1,651

(153)
–
(98)
(512)
(224)
–
(1,271)

(153)
833
(94)
(597)
(409)
94
2,003

(21)

105

(1,645)
7,823
6,177

37
8,983
9,021

(4)

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 informationI.
Six months ended September 30, 2014
1. Disclosure of net sales and profit for each reportable segment(Millions of yen)
Reportable segments
Japan
Net sales
Net sales to external customers
Transactions with other segments
Total

51,510712

19,651
897

84,450
6,948

18,62752,223

20,54891,399

37

1,711

191

1,940

Differences between total amounts of profit 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

13,288
5,338

Segment profit

2.

North America

Reportable segments total
Elimination of intersegment transactions

1,940
292

Operating income in the consolidated statements ofincome and comprehensive income

2,232Disclosure of impairment loss on non-current assets and goodwill for each reportable segment
Not applicable.

II. Six months ended September 30, 2015
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segmentsJapanNet sales
Net sales to external customers
Transactions with other segments
TotalSegment profit (loss)

2.

Total

Asia

10,216
6,053

62,082789

21,684914

93,983
7,757

16,26962,872

22,598

101,740

(575)

2,100

373

1,899

Differences between total amounts of profit 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.

North America

Reportable segments total
Elimination of intersegment transactions

1,899216

Operating income in the consolidated statements ofincome and comprehensive income

2,115Disclosure of impairment loss on non-current assets and goodwill for each reportable segment
Not applicable.

Significant events after reporting period
Not applicable.
-9-