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, 2016
<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
An overview of the global economy in the six months ended September 30, 2016 is as follows. In theUnited States, consumer spending has been firm, due to an improved employment environment. Europe
was marked by uncertainty, owing to Brexit as well as the effect of geopolitical risks. China saw modest
economic deceleration, mainly from financial market trends affected by issues including the decline ofreal estate prices and excessive debt problems. Other emerging markets also experienced a notable
downturn in economic growth characterized primarily by economic deceleration.
In the Japanese economy, various government measures led to improvements in the employment
situation, but economic deceleration in emerging markets, coupled with yen appreciation, caused
economic growth to remain flat.
On the other hand, in the automotive industry, automobile sales in North America have been firm, whilesales expansion in the Asia region including China continued to weaken. In Japan, domestic automobile
production declined partly as a result of stagnant sales in the light and compact car market.
Under these circumstances, the Group pushed ahead with expanding sales on a global basis under thecorporate policy “To become a chassis system manufacturer with overwhelming competitive strength,”outlined in its 12th Mid-Term Plan, which started in April 2014.
The operating results for the Group during the six months under review are as follows. The Groupbenefited mainly from a recovery in production at major customers in the Japanese market and favorable
sales for customers in the Chinese market. In detail, net sales decreased 3.4% year on year to 90,801
million yen, operating income rose 43.4% year on year to 3,033 million yen, ordinary income rose 6.1%
year on year to 2,230 million yen and profit attributable to owners of parent rose 63.6% year on year to687 million yen.
Operating results by segment are as follows.
(Japan)There was a recovery in the number of automobiles produced by the major customers of the Company,
along with an increase in the number of export automobiles. Net sales rose 17.0% year on year to 11,948
million yen and operating income was 282 million yen (compared with an operating loss of 575 million
yen in the same period of the previous fiscal year).
(North America)
In the North American market, although firm automobile sales continued, the effect of yen appreciation
on foreign exchange and other factors led to net sales falling by 12.8% year on year to 54,112 million yen.
The segment recorded an operating income of 1,304 million yen, down 37.9% year on year.
(Asia)
Sales of major customers were favorable, and sales of new customers increased in the Chinese market.
Net sales rose 14.1% year on year to 24,740 million yen and operating income rose 306.2% year on year
to 1,518 million yen.
(2) Information regarding financial position
As of September 30, 2016, total assets decreased by 10,967 million yen compared with the end of theprevious fiscal year to 127,013 million yen, mainly reflecting decreases in notes and accounts receivable- trade, buildings and structures, machinery, equipment and vehicles and construction in progress.
Liabilities decreased by 3,139 million yen from the end of the previous fiscal year to 87,772 million yen
mainly reflecting decreases in notes and accounts payable - trade, short-term loans payable and current
portion of long-term loans payable.
Net assets decreased by 7,827 million yen from the end of the previous fiscal year to 39,240 million yen
mainly reflecting decreases in foreign currency translation adjustment and non-controlling interests.

-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, 2016, 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, 2016
(From April 1, 2016 to September 30, 2016)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perincome
incometo owners ofshare (Yen)parentPrevious forecasts (A)91,000
2,500
2,400
800
52.10
Actual results (B)90,801
3,033
2,230
687
44.77
Difference (B-A)
(198)
533
(169)
(112)
Difference (%)
(0.2)
21.3
(7.1)
(14.1)(Reference) Actual results forthe second quarter of theprevious fiscal year
93,983
2,115
2,102
420
27.37
(Six months ended September30, 2015)
Reasons for the differences
Operating performance during the six months ended September 30, 2016, remained robust, as production
volume at the Company’s major customers increased. However, net sales decreased due to the effect of
yen appreciation. Although operating income increased against the backdrop of the abovementioned
reasons, ordinary income and other profit categories declined, mainly because of foreign exchange losses
associated with yen appreciation.
(ii) Earnings forecasts revisions
Revisions to consolidated earnings forecasts for the fiscal year ending March 31, 2017 (From April 1,2016 to March 31, 2017)(Millions of yen)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perincomeincometo owners ofshare (Yen)parentPrevious forecasts (A)192,000
6,500
6,200
2,800
182.34Current forecasts (B)183,000
6,500
5,450
2,350
153.03Difference (B-A)(9,000)0(750)(450)
Difference (%)(4.7)
0.0(12.1)(16.1)(Reference) Actual results forthe previous fiscal year
196,343
6,821
6,182
2,704
176.14(Fiscal year ended March 31,2016)
Reasons for the revisions
The above-stated revisions to the Company’s consolidated earnings forecasts for the full fiscal year
ending March 31, 2017, take into account increased production volume at the Company’s major
customers, as well as the effect of yen appreciation. Compared with previous forecasts, the current
forecasts show net sales as lower, and operating income as unchanged. However, excluding the effect offoreign exchange, the Company substantially forecasts growth in net sales and operating income. TheCompany expects ordinary income and other profit categories to decrease, owing mainly to foreignexchange losses associated with yen appreciation.
Average exchange rates for the fiscal year are assumed at 100.18 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.
2. Matters regarding summary information (Notes)(1) 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,
2016, and next by multiplying the quarterly profit (loss) before income taxes by such estimated effectivetax rate.
(2) Additional information
The Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016) has
been applied from the first quarter ended June 30, 2016.

-3-3. Quarterly consolidated financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of September 30, 2016

6,831
28,930
4,779
3,942
8,069
4,855
57,4096,876
24,576
5,960
3,947
7,389
3,946
52,697

19,64829,985
13,423
10,35273,410671

17,43327,146
12,151
10,762
67,494
605

4,880
1,608
–
6,489
80,570137,980

4,850
1,382
(17)
6,215
74,315127,013

18,69022,589
11,576499
99
9,036
62,492

16,21921,546
9,646
253
61
9,022
56,7494,000
18,597
233
954
72
4,561
28,41990,911

4,000
21,604
230
940
69
4,176
31,02287,772

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 progressOther, 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-4-

(Millions of yen)
As of March 31, 2016
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, 2016

4,790
5,419
17,512(18)
27,703

4,790
5,330
18,231(18)28,333618

542

1,533(549)
1,602
17,76247,068137,980(3,011)(516)(2,986)
13,894
39,240127,013

(2) Consolidated statements of income and comprehensive income(Millions of yen)Six months ended
September 30, 2015
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
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary income
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 interestsOther 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 ofparent
Comprehensive income attributable to noncontrolling interests-6-Six months ended
September 30, 2016

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

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

20
31

28
37

214214

37
127
431–
72
352

416–
28
445
2,102

438
690
26
1,155
2,230

149–
149

12
2
15

0
56–
56
2,195
977
(86)
891
1,303

114
36
52
2,193
837
117
955
1,237

420
883

687
550

(108)
(691)
(47)

(49)
(6,406)
35

(102)

(291)

(949)
354

(6,711)(5,474)(206)(3,901)560(1,572)

(3) Consolidated statements of cash flows(Millions of yen)Six months ended
September 30, 2015
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- trade
Decrease (increase) in inventoriesIncrease (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 securities
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities-7-

Six months endedSeptember 30, 2016

2,195
5,016
–
(2)
–

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

(56)

28

10(2)

(26)

(37)

(51)
416
(70)

(65)
438
800

(214)

(214)

(149)
56

(11)
14(1,758)

1,434

225

(2,269)

2,350

(829)

(26)
1,081
8,997
86(416)(1,908)
6,759

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

(8,936)
187
(73)
(15)
–
7(8,830)(6,180)
72
(112)
(142)
3
(8)
(6,368)(Millions of yen)Six months ended
September 30, 2015
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
Payments from changes in ownership interests in
subsidiaries 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, 2016

(1,385)7,530(5,467)
(0)

251
9,139
(6,130)
–

1,651

–

(153)
833
(94)
(597)
(409)
94

(153)
–
(228)
(1,253)
(482)
1,086

–

(403)

2,003

1,826

105

(753)

37
8,983

154
6,831–(110)

9,021

6,876

(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, 2015
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Transactions with other segments
TotalSegment profit (loss)

2.

North America

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)AmountProfit3.

TotalAsia

Reportable segments total
Elimination of intersegment transactions

1,899
216

Operating income in the consolidated statements ofincome and comprehensive income

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

II. 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
Total
Segment profit

2.

North America

Asia

Total

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 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)AmountProfitReportable segments total
Elimination of intersegment transactions

3,105(71)

Operating income in the consolidated statements ofincome and comprehensive income

3,033-9-3.

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

North America
36–

Significant events after reporting period
Not applicable.

- 10 -

Unallocatedamounts andelimination

Asia––

Total
36