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 Three Months Ended June 30, 2024
<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 three-month period under review
The global economy during the three months ended June 30, 2024 continued to face an extremely
uncertain outlook with the impact of the protracted conflict in Ukraine, unrest in the Middle East,
persistently high resource and energy prices, and the prolonged tightening of monetary policy in Europe
and the U.S., as well as the economic slowdown in China. In the automotive industry, although thesemiconductor shortage has eased, rising raw material and other costs and wage hikes amid the tightlabor market led to an increase in production costs. Regarding the shift to EVs for carbon neutrality, it isvery difficult to make a future forecast. In China, emerging local EV manufacturers are growing rapidly,
taking shares from Japanese, European, and U.S. manufacturers, while in Europe and the U.S., demandhas become slower, forcing major automakers to revise their strategies.
In this business environment, the Group launched the 15th medium-term management plan in April 2023.
Under the slogan “We contribute to society by improving earning power and achieving sustainablegrowth” and with the basic policies “Back to Basics” and “Challenge for New,” the Group has beenworking on a company-wide basis to achieve “Pursuing the essence of Monozukuri (manufacturing)” and“Providing our customers with new value.” As a result, the Group was able to acquire important neworders in its global business and proceed steadily with improvement of production efficiency.
As a result of these efforts, during the three months ended June 30, 2024, net sales increased by 5.0%
year on year to 74,736 million yen, and operating profit increased by 91.8% year on year to 141 million
yen, while ordinary profit decreased by 41.5% year on year to 180 million yen, and loss attributable toowners of parent was 779 million yen (loss attributable to owners of parent of 327 million yen in thesame period of the previous year).
(Japan)Net sales increased by 4.8% year on year to 6,915 million yen due partly to a trend toward an increase inproduction volume at major customers and the effect of mass production of products ordered by newcustomers. Operating profit rose by 305.5% year on year to 61 million yen.
(North America)
Net sales increased by 10.1% year on year to 55,910 million yen due to a steady trend of production
volume at major customers and the impact of a weaker yen. In terms of profit and loss, operating loss
was 14 million yen (an operating profit of 238 million yen in the same period of the previous year), due
to the impacts of rising labor costs and persistently high raw material costs, despite the effect of mass
production of newly ordered products and improvements in the production structure.
(Asia)Net sales decreased by 13.8% year on year to 11,911 million yen due to the continuing production cuts ofmajor customers in the Chinese region. In terms of profit and loss, although there was a year-on-year
improvement thanks to the reduced production costs, operating loss was 61 million yen (an operating
loss of 282 million yen in the same period of the previous year), due to the impact of the production cutsin the Chinese region.

-1-(2) Overview of financial position for the three-month period under review
As of June 30, 2024, total assets increased by 4,126 million yen from the end of the previous fiscal year
to 195,898 million yen, reflecting increases in cash and deposits, merchandise and finished goods,machinery, equipment and vehicles and other items, offsetting a decrease in notes and accounts
receivable - trade.
Liabilities increased by 1,273 million yen from the end of the previous fiscal year to 121,303 million
yen, reflecting an increase in short-term loans payable and decreases in notes and accounts payable trade and long-term loans payable.
Net assets increased by 2,852 million yen from the end of the previous fiscal year to 74,595 million yen,reflecting an increase in foreign currency translation adjustment.
(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, 2025 whichwere announced in the Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 on May
14, 2024.

-2-2. Quarterly consolidated financial statements and significant notes thereto(1)Consolidated balance sheets(Millions of yen)
As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
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-3-As of June 30, 2024

12,204
41,9214,423
7,623
13,4383,502(44)83,06915,03536,3335,867
8,180
14,5053,656(54)
83,524

21,73550,507
7,171
14,61894,033319

22,402
52,256
7,049
15,37997,087
314

9,485
4,864
14,350108,702
191,772

9,702
5,269
14,972
112,373
195,898

(Millions of yen)
As of March 31, 2024
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
Deferred gains or losses on hedges
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-4-

As of June 30, 2024

27,902
38,537
12,782769
49
12,012
92,053

26,12043,722
12,005711
18
12,267
94,84722,043
56
956
28
4,891
27,975120,029

20,360
51
1,016
26
5,001
26,456
121,303

6,790
6,404
29,288(79)
42,404

6,790
6,404
28,322(79)
41,437

1,154

1,015

237
11,93792
13,421
15,916
71,742
191,772257
15,31899
16,691
16,46674,595
195,898

(2)Consolidated statements of income and comprehensive income(Millions of yen)Three months ended
June 30, 2023

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
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on change in equity
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
LossProfit (loss) attributable toLoss attributable to owners of parent
Profit (loss) attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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-5-

Three months ended
June 30, 2024

71,19966,755
4,443
4,370
73

74,736
70,104
4,632
4,490
141

25
31

39
58

93

132

666
79
896

428
116
773

585
76
661
308

728
6
734
180

157
4
162

1
1

11
468
808
148
957
(488)

0
0
181
1,108
(200)
907
(726)

(327)
(160)

(779)
52

250
(64)
2,929
3(134)
20
3,849
6

200

259

3,319
2,830

4,002
3,276

2,114

2,490

716

785

(3) Notes to quarterly consolidated financial statements
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 first quarter ended June 30, 2024, andnext by multiplying the quarterly profit (loss) before income taxes by such estimated effective tax rate.
Segment information, etc.
Segment information
I. Three months ended June 30, 2023
1. Disclosure of net sales and profit (loss) 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

TotalAsia

6,600
2,668

50,783372

13,815442

71,199
3,483

9,268

51,155

14,25874,68315238(282)(28)

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)
ProfitAmountReportable segments total(28)

Elimination of intersegment transactions

102

Operating profit in the consolidated statements ofincome and comprehensive income

73

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

-6-II. Three months ended June 30, 2024
1. Disclosure of net sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segmentsJapanNet sales
Net sales to external customers
Intersegment sales and transfers
TotalSegment profit (loss)

North America

Total

Asia

6,915
2,768

55,910318

11,911
639

74,736
3,726

9,683

56,22812,55078,462

61

(14)

(61)

(14)

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)
ProfitAmountReportable segments total(14)

Elimination of intersegment transactions

155

Operating profit in the consolidated statements ofincome and comprehensive income

141

3. Disclosure of impairment loss on non-current assets and goodwill, etc. for each reportable segment
Not applicable.
Substantial changes in the amount of shareholders’ equity
Not applicable.
Uncertainties of entity's ability to continue as going concern
Not applicable.
Statements of cash flows
The consolidated statements of cash flows for the three months ended June 30, 2024 are not prepared.
Depreciation (including amortization of intangible assets excluding goodwill) and amortization ofnegative goodwill for the three months ended June 30, 2024 were as follows:(Millions of yen)

Depreciation

Three months ended
June 30, 2023

Three months ended
June 30, 2024

3,536

3,817

(1)

(1)

Amortization of negative goodwill-7-