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, 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 six months ended September 30, 2017 has continued a moderate recovery
trend mainly in the developed countries. In the United States, consumer spending and corporate earnings
have been firm. In Europe, the economy was on moderate recovery trend supported by monetary easing
policies and the emerging market economies. In China, the economy has been continuously supported byconsumer spending and other emerging countries also have been in a trend of economic recovery.
As for the Japanese economy, on the other hand, corporate earnings have been improving amid a trend of
yen depreciation and recovery in overseas economies, and consumer spending also has been steady,resulting in mild economic recovery.
Under this macro-economic circumstance, in the automotive industry, automotive sales have been on a
downward trend in the United States even with the low interest rates, low gasoline prices and increased
sales incentives from automotive manufacturers. In China, there were signs of recovery in the automotivesales. In Europe, automobile sales remained solid due to robustness in economic situations. In Japan,
with an upward trend of consumer 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.
In the financial aspect, on August 18, 2017, the Company exercised a call option on its 2020-maturity
yen-denominated convertible bond-type bonds with subscription rights to shares issued in March 2015.
As a result, the previous fiscal year-end balance of 2,350 million yen was converted into shares and net
assets increased by the same amount.
The operating results for the Group during the six months under review are as follows. The Groupbenefited from an increase in production by major customers in the Japanese market and favorable sales
by customers in the Chinese market. Net sales rose by 18.4% year on year to 107,511 million yen,operating profit increased by 28.7% year on year to 3,902 million yen, ordinary profit increased by
45.6% year on year to 3,248 million yen and profit attributable to owners of parent rose by 186.5% year
on year to 1,969 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 12.1% year on year to 13,393 million yen. The segment recorded
an operating profit of 935 million yen, up by 231.8% year on year.
(North America)
In the North American market, despite a decrease in production volume of the major customers due todownward trend in automotive sales, net sales rose by 18.9% year on year to 64,322 million yen owing toan increase in sales of tooling. The segment recorded an operating profit of 727 million yen, down by
44.2% year on year due to an increase in cost associated with the start-up of products for new orders anda completion of production of high-value-added products.
(Asia)In the Chinese market, due to favorable sales of major customers, net sales rose by 20.4% year on year to29,795 million yen and operating profit rose by 51.3% year on year to 2,297 million yen.
(2) Information regarding financial position
As of September 30, 2017, total assets increased by 6,715 million yen compared with the end of theprevious fiscal year to 151,136 million yen, mainly reflecting increases in cash and deposits, notes andaccounts receivable - trade, raw materials and supplies, and machinery, equipment and vehicles.
Liabilities increased by 2,191 million yen from the end of the previous fiscal year to 96,879 million yen
mainly reflecting an increase in short-term loans payable, current portion of long-term loans payable, andlong-term loans payable.
Net assets increased by 4,523 million yen from the end of the previous fiscal year to 54,256 million yen
mainly reflecting increases in capital stock, capital surplus, and retained earnings.

-1-(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 9, 2017, as described below.
(i) Differences between earnings forecasts and actual results
Differences between earnings forecasts and actual results in the six months ended September 30, 2017
(From April 1, 2017 to September 30, 2017)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perprofit
profitto owners ofshare (Yen)parentPrevious forecasts (A)103,000
3,000
2,700
1,100
65.76
Actual results (B)107,511
3,902
3,248
1,969
114.89Difference (B-A)
4,511
902
548869Difference (%)
4.4
30.1
20.3
79.0
(Reference) Actual results forthe second quarter of theprevious fiscal year
90,801
3,033
2,230
687
44.77
(Six months ended September30, 2016)
Reasons for the differences
In operating performance during the six months ended September 30, 2017, net sales increased owning
mainly to the effect of yen depreciation. Operating profit exceeded the previous forecast due primarily to
an increase in production volume at the Company’s major customers in Japan and Asia and tooling sales
recognized ahead of the forecast in North America.
(ii) Earnings forecasts revisions
Revisions to consolidated earnings forecasts for the fiscal year ending March 31, 2018 (From April 1,2017 to March 31, 2018)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings per
profitprofitto owners ofshare (Yen)parentPrevious forecasts (A)209,000
8,000
7,400
4,000
239.14Current forecasts (B)220,000
8,200
7,100
4,400
245.70Difference (B-A)
11,000200(300)
400
Difference (%)
5.3
2.5(4.1)
10.0(Reference) Actual results forthe previous fiscal year
197,941
8,035
7,214
4,035
261.01(Fiscal year ended March 31,2017)
Reasons for the revisions
Taking into account the production volume changes at the Company’s major customers, as well as theeffect of yen depreciation, the Company has made the above-stated revisions to the consolidated earnings
forecasts for the full fiscal year ending March 31, 2018. Compared with previous forecasts, the current
forecasts show net sales as higher, owing mainly to the effect of yen depreciation and impact of theincrease in production volume at the Company’s major customers in Japan and Asia. The Company
expects operating profit to increase due primarily to the effect of yen depreciation and impact of theincrease in sales in Japan and Asia, despite a decrease in production volume at the Company’s major
customers in North America and an increase in costs due to the tight labor market and other factors.
Average exchange rates for the fiscal year are assumed at 110.91 yen to the U.S. dollar.

-2-Note: The above-stated earnings forecasts are based on information currently available to the Company
and are considered to be rational on this basis. However, as they include risks and uncertainties
which are subject to various future events, actual results may differ from forecasts.

-3-2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of September 30, 2017

5,719
33,151
5,883
4,228
8,533
4,383
61,8996,773
35,007
4,875
5,030
10,191
5,124
67,001

18,93733,374
11,416
10,94874,676508

18,91038,8238,030
10,64976,413
407

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

5,677
1,666
(30)
7,314
84,134
151,136

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

20,11823,07812,125438
68
9,351
65,181

2,350
23,271
280
987
67
4,265
31,222
94,688–26,276
90
973
64
4,293
31,69896,879AssetsCurrent 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
Allowance for doubtful accountsTotal 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, 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-5-

As of September 30, 2017

5,615
6,155
21,425(18)
33,1776,790
7,330
23,109(18)37,211

740

761

270(533)477
16,07749,732
144,420578(463)875
16,16854,256
151,136(2) Consolidated statements of income and comprehensive income(Millions of yen)Six months ended
September 30, 2016
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
methodOtherTotal 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
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
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
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, 2017

90,80180,008
10,792
7,759
3,033

107,511
95,164
12,347
8,444
3,902

28
37

37
25

214

153

72
352

103
320

438
690
26
1,155
2,230

504
373
97
974
3,248

12
2
15

5–
5

1
14
36
52
2,193
837
117
955
1,237

0
35–
35
3,217
992
(300)
691
2,526

687
550

1,969
556

(49)
(6,406)359869
69(291)(147)(6,711)(5,474)800
3,327(3,901)

2,367(1,572)959

(3) Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2016
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
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 (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 paidNet 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-7-Six months ended
September 30, 2017

2,193
5,048
36
(2)
(2)

3,217
5,618
–
(2)
–

28

19(2)

(190)

(37)

(65)

(65)
438
800

(62)
504
115

(214)

(153)

(11)
14(5)
35

1,434

(1,379)(2,269)(1,032)(829)(1,216)

169
(3)
6,725
89(432)
(931)
5,450

213
(1,631)
3,985
99(504)
(713)
2,866

(6,180)72(112)(142)
3(8)(6,368)(6,443)14(36)(17)–(13)(6,495)

(Millions of yen)Six months ended
September 30, 2016
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
Repayments of installment payables
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Proceeds from sales and leasebacks
Payments from changes in ownership interests insubsidiaries that do not result in change in scope ofconsolidation
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
Increase (decrease) in cash and cash equivalents due tothe fiscal year-end change of consolidated subsidiaries
Cash and cash equivalents at end of period-8-

Six months ended
September 30, 2017

251
9,139
(6,130)
–
(153)
(228)
(1,253)
(482)
1,086

2,142
9,501
(5,337)
(0)
(284)
(225)
(868)
(407)
299

(403)

–

1,826

4,820

(753)

(136)

154
6,831

1,054
5,719

(110)

–

6,876

6,773

(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.
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 second quarter ended September 30,
2017, and next by multiplying the quarterly profit (loss) before income taxes by such estimated effective
tax rate.
Segment information, etc.
Segment informationI.
Six months ended September 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
TotalSegment profit

2.

North America

11,948
7,070

54,112847

24,7401,275

90,801
9,194

19,01954,95926,01699,995

282

1,304

1,518

3,105

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

Reportable segments total
Elimination of intersegment transactions

3,105(71)

Operating profit in the consolidated statements ofincome and comprehensive income

3,033

Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment(Millions of yen)Japan
Impairment loss

North America
36–-9-

Unallocatedamounts andelimination

Asia––

Total
36

II. Six months ended September 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

13,393
10,51464,322792

29,795
1,464

107,511
12,771

23,907

65,11431,260120,282

935

727

2,297

3,960

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
Elimination of intersegment transactions

3,960
(57)

Operating profit in the consolidated statements ofincome and comprehensive income

3,902

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

Significant events after reporting period
Not applicable.

- 10 -