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 Nine Months Ended December 31, 2020
<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 nine months ended December 31, 2020 experienced a significant downturn
due to the prolonged impact of the novel coronavirus. While economic activities have been gradually
resuming and vaccinations started in some areas, the outlook for the containment of the novel
coronavirus remains unpredictable mainly due to the newly discovered mutant strain of the virus.
In the automotive industry, normalization proceeded rapidly in China and signs of improvements wereseen in other regions from the summer. However, the future outlook remained uncertain owing to theimpact of the severe third wave of the novel coronavirus and the current shortage of automotive
semiconductors.
In this business environment, the Group launched the 14th Mid-term plan in April of the fiscal year underreview. While maintaining the basic policies of “Back to Basics” and “Challenge for New,” we haveestablished a global policy of “Let’s exceed out limits! We will, without compromise, produce the “BestOne” for all our customers.” Under this global policy, while striving to prevent the novel coronavirus
infections, we have been working to provide our customers with new value and have made efforts toobtain new business. This led the Group to win major new business contracts in Japan. In addition, we
have been working with the objective of exceeding limits in order to deal with the severe corporate
environment we face at present, by such means as minimizing investment, engaging in various
improvement activities, and conducting cost reduction with a focus on unnecessary, nonurgent matters.
As a result, during the nine months under review, net sales decreased by 20.6% year on year to 130,701
million yen, operating profit decreased by 57.0% year on year to 1,245 million yen, ordinary profit
decreased by 81.6% year on year to 320 million yen, and loss attributable to owners of parent was 2,090
million yen (loss attributable to owners of parent of 725 million yen in the same period of the previousyear).
Operating results by segment are as follows.
(Japan)Net sales decreased by 24.9% year on year to 14,821 million yen due to a sharp decline in the volume oforders from major customers as a result of the spread of the novel coronavirus infection in the firstquarter, despite the current recovery trend. Operating loss was 106 million yen (an operating loss of 753
million yen in the same period of the previous year) due to the cost reduction effect.
(North America)
Net sales fell by 20.8% year on year to 80,073 million yen and operating loss was 1,032 million yen (anoperating profit of 314 million yen in the same period of the previous year) due to a sharp decline in thevolume of orders from major customers as a result of the spread of the novel coronavirus infection in thefirst quarter, despite the current recovery trend.
(Asia)Net sales decreased by 18.4% year on year to 35,806 million yen and operating profit decreased by
13.4% year on year to 2,701 million yen due to a sharp decline in the volume of orders from major
customers as a result of the spread of the novel coronavirus infection in the first quarter, despite the rapid
recovery trend from the second quarter.
(2) Information regarding financial position
As of December 31, 2020, total assets decreased by 1,323 million yen compared with the end of theprevious fiscal year to 132,714 million yen, reflecting decreases in cash and deposits, machinery,equipment and vehicles, and other items.
Liabilities increased by 1,852 million yen from the end of the previous fiscal year to 81,598 million yen,reflecting increases in notes and accounts payable - trade and other items.
Net assets decreased by 3,176 million yen to 51,116 million yen reflecting decreases in retained earnings
and other items.
(3) Information regarding consolidated earnings forecasts and other forward-looking statements
No revisions have been made to the earnings forecasts for the fiscal year ending March 31, 2021
announced on August 6, 2020.

-1-2. Quarterly consolidated financial statements and significant notes thereto(1)Consolidated balance sheets(Millions of yen)

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-2-

As of March 31, 2020

As of December 31, 2020

8,879
27,955
6,389
4,026
8,677
3,027
58,956

5,684
29,429
5,965
4,197
8,182
3,027
56,486

16,20532,4506,750
11,30866,714363

16,71829,843
10,741
10,64967,953
335

5,960
2,044
8,004
75,081
134,038

6,219
1,720
7,939
76,228132,714

(Millions of yen)

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
Long-term loans payable
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-3-

As of March 31, 2020

As of December 31, 2020

17,427
20,395
9,740
500
77
7,271
55,412

18,44920,223
9,627
604
21
8,387
57,313

19,146
126
1,050
50
3,958
24,33379,745

18,913
54
1,004
46
4,265
24,284
81,598

6,790
7,230
27,912(18)
41,914

6,790
7,23625,621(64)
39,584174

337(1,657)(295)(1,778)14,15654,292
134,038(1,861)(150)(1,674)
13,207
51,116
132,714(2)Consolidated statements of income and comprehensive income(Millions of yen)
Nine months ended
December 31, 2019

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Gain on sales of investment securities
Other
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 (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
LossProfit attributable toLoss attributable to owners of parent
Profit (loss) 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-4-Nine months ended
December 31, 2020

164,685
149,798
14,887
11,993
2,894

130,701
119,140
11,560
10,314
1,245

55
41

48
30-

61

131
229

148
288

824

608

232

-

249
77
1,383
1,739

552
51
1,213
320

8
1
9

13
1,572
6
1,592

3
33
37
1,711
1,616
614
2,231
(519)

12
66
2,558
2,638
(724)
1,349
252
1,601
(2,326)(725)
205(2,090)(235)

42(1,052)
112

141
(5)
141

(17)

15(916)(1,435)293(2,032)(1,302)(1,987)

(133)

(45)

(3) Notes to quarterly consolidated financial statements
Uncertainties of entity’s ability to continue as going concern
Not applicable.
Substantial changes in the amount of shareholders’ equity
Not applicable.
Application of special accounting for preparing quarterly consolidated financial statements(Calculation of tax expenses)
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 third quarter ended December 31, 2020,and next by multiplying the quarterly profit (loss) before income taxes by such estimated effective tax
rate.
Additional information
There are no material changes to the assumptions of accounting estimates regarding the impact from thenovel coronavirus infection stated in the securities report for the previous consolidated fiscal year
(Additional information).
In the nine months ended December 31, 2020, in relation to the spread of the novel coronavirus, agovernment subsidy of 1,572 million yen is recorded as extraordinary income, and fixed costs, etc. arisingfrom operation suspensions and reductions due to the government’s request of 2,558 million yen arerecorded as extraordinary losses.

-5-Segment information, etc.
Segment information
I. Nine months ended December 31, 2019
1. Disclosure of net sales and profit for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Intersegment sales and transfers
TotalSegment profit (loss)

North America

Asia

Total

19,7408,411

101,091
1,152

43,853
2,055

164,685
11,62028,152102,244

45,909176,306

(753)

314

3,120

2,681

2. 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)
ProfitAmount2,681

Reportable segments total
Elimination of intersegment transactions

212

Operating profit in the consolidated statements ofincome and comprehensive income

2,894

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

-6-II. Nine months ended December 31, 2020
1. Disclosure of net sales and profit for each reportable segment(Millions of yen)
Reportable segments
JapanNet sales
Net sales to external customers
Intersegment sales and transfers
Total
Segment profit (loss)

North America

Asia

Total

14,821
10,47580,073896

35,806
2,004

130,701
13,37625,29680,97037,810144,078(106)(1,032)

2,701

1,562

2. 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)
ProfitAmount1,562

Reportable segments total
Elimination of intersegment transactions(317)

Operating profit (loss) in the consolidated
statements of income and comprehensive income

1,245

3. Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment
Not applicable.
Significant events after reporting period
Not applicable.

-7-