9th Medium-term Management Plan
FREUND CORPORATION(Securities code: 6312)

Corporate Philosophy

Corporate Philosophy“Develop the Future through Creativity®”2

Products

MACHINERYEXICIPIENTSFOOD PRESERVSATIVES

We specialize in the development oftechnologies for granulation,
coating and various other types ofmachinery that are used bycompanies worldwide, mainly in thepharmaceutical industry.

We manufacture and sell excipients,
which are the precisely formulated
inactive additives for drugs that
help ensure the active ingredientsfunction effectively and properly.

We manufacture and sell foodpreservatives, including substances
for suppressing mold and othermicrobes in bakery products, thatpreserve the moist feel and extend
the shelf life of food products.

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Global Network of FREUND Group

Head OfficeHamamatsu Office, Researchand Development Laboratory

Osaka Office
Nagoya Sales Office4

Strengths and Business Climate

FREUNDStrengths• A leading global manufacturer of drug formulation equipment and the only company in this sector that
also supplies excipients• Product development skills for creating industry firsts and technological skills involving drugformulation• Manufacturing and sales bases in Japan and other countries for global coverage, including emerging
countries• Food preservatives that help reduce food loss (Japan’s largest ethanol evaporation agent supplier)

1964

Developed and launched
testing machine for
automated film coatingmachine “FM-2 model” andmanufacturing machine“FM-5 model”

2021
Developed andlaunched tablet
coater“HICOATER HV”

FM-2 automated film
coating machine(trial version)

Business climate

JapanOverseas• Shortages of pharmaceuticals• Decrease in working population• Rapid development of new technologies• Increase in unmet medical needs• Increase in world population• Growing demand for pharmaceuticals• Diversification and globalization ofconsumer needs for machinery• Emergence of regional manufacturers

Sustainability• Aggravating global environmental problems• Diversified work styles and lifestyles• Human resource management• Requirements for more rigorous
governance and compliance5Long-term Vision

Long-term Vision

ONE FREUND ＆ BEYOND
Values which the FREUND Group holds precious

NumberOnlyBeONEONE

ONE

Creating special value

Putting clients’ views 1stNetworking

Aiming to be No.1
in each business segment

Aiming to be the Only ONE forclients and society

Unite to a “Be One” group6

Long-term Vision (Basic Policy)• Use innovative ideas to enable people worldwide to enjoy healthy and fulfilling lives.

BasicPolicy• Expand the areas covered by the machinery business and strive to become one of the world’s
top three suppliers.

• In the chemicals business, aim to become Japan’s leading specialty chemical company.
• Create a corporate group with a diverse and productive workforce, fostering an environment
where people can upgrade skills and advance their careers

FY2/3440.0 billion
Operatingprofit¥3.2 billion
ROE
At least 10%
Net sales ¥FY2/27
FY2/24
Net sales ¥22.9 billion
Operatingprofit¥1.27 billion
ROE
5.3%

Net sales ¥25.0 billion
Operatingprofit¥1.6 billion
ROE
7.0%

9th Medium-term Management Plan

70th Anniversary7

9th Medium-term Management Plan

9th Medium-term Management Plan
(FY2/25 – FY2/27)

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9th Medium-term Management Plan/
Basic Policy◼ Strengthen and expand corebusinesses◼ Develop new products andbusinesses◼ Build a stronger base ofoperations

Capitalinvestment

About ¥

5.0billion
R&D
expenses
About ¥

2.5billion

Humancapital
investment

About ¥

0.7billion99th Medium-term Management Plan/
Numerical Targets
Numerical Targets of the 9th Medium-term Management Plan (Consolidated)
Vs. 2024(Millions of yen)

FY2/24

FY2/2722,90325,000Machinery

16,15817,750Chemicals

6,746

7,250

Net sales

Operating profit

1,270

1,600

Operating margin

5.5%

6.4%

ROE

5.3%

7.0%

9%

UpNet
sales
22,903

Netsales
25,000Up

26%

Operatingprofit

Operatingprofit

2024

2027

1,270

*The Group assumes an average exchange rate of 130 yen to the U.S. dollar and 140 yen for the euro for FY2/27.

1,600
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9th Medium-term Management Plan/
Key Strategies
Strengthen and expand corebusinesses

Develop new products andbusinesses

GlobalGlobalSpeed up synergies among groupcompanies

Localize products and services
Extend operations to more business sectors

Establish a presence in emerging country
markets

Domestic Machinery
A more powerful framework forsupplying products
More after-sales service
relationships and sales

9th Medium第9次中期
termManagement
経営計画
Plan

Domestic Machinery
Use new technologies
Start operating a new continuous
production system

Chemicals

Chemicals
Supply chain optimization

Develop excipients for direct compression
tablet productionIncrease sales of the new spherical
granule excipients

Build a stronger base ofoperations

Develop new environmentally responsible
food preservatives

Sustainable management
Investments for growth and consistent dividend payments

119th Medium-term Management Plan/
Key Strategies

Strengthen and expand core businesses

GlobalAction

Speed up synergies among group companies

Goal

Increase the pace and magnitude of group synergies primarily
involving sales, marketing and product strategies

ActionEstablish a presence in emerging country markets

Goal

Expansion of the coverage of business activities to more regions ofthe world
129th Medium-term Management Plan/
Key Strategies

Strengthen and expand core businesses

Domestic Machinery

ActionA more powerful framework for supplying products

Goal

Supply a larger volume of products while making more
improvements concerning quality, delivery times and cost

ActionMore after-sales service relationships and sales

Goal

Ensure the trouble-free operation of Freund machinery and bea source of new value and solutions for customers
139th Medium-term Management Plan/
Key Strategies

Strengthen and expand core businesses

Chemicals
Excipients

ActionSupply chain optimization/construction of new excipient factoryGoal

Stable supply and increased production (scheduled for completion in spring 2026)

ActionIncrease sales of the new spherical granule excipients

Goal

Combine drug formulation technologies to cut manufacturing expenses ofcustomers (shorter production time)

Food Preservatives
ActionSupply chain optimization/Automated production systems

Goal

Increase job satisfaction and motivation of employees and cut costs by making
production operations more efficient149th Medium-term Management Plan/
Key Strategies

Develop new products and businesses

GlobalAction

Localize products and services

Goal

Use the Freund Group’s five-region global network to meet theincreasingly diverse needs of customers, mainly in thepharmaceutical industries of emerging countries.

ActionExtend operations to more business sectors

Goal

Move faster globally to be a source of solutions concerning batteries
and energy
159th Medium-term Management Plan/
Key Strategies

Develop new products and businesses
Domestic Machinery
Action

Use new technologies

Goal

Further upgrade quality management and maintain a reliable supplyof products

ActionStart operating a new continuous production system

Goal

Make manufacturing operations less labor-intensive and moreautomated16

9th Medium-term Management Plan/
Key Strategies

Develop new products and businesses

Chemicals
Excipients
ActionDevelop new excipients for direct compression tablet production

Goal

Reduce time needed to develop drug formulations and makemanufacturing operations more efficient

Food Preservatives

ActionDevelop new environmentally responsible food preservatives

Goal

Lower food loss and protect the global environment
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Sustainability Policy

The Significance of Sustainability at the Freund GroupThe Freund Group is guided by the corporate philosophy of “paving
the way to the future through creativity®.” Our goal is thesustainable growth of all stakeholders, the Freund Group and society.
We are dedicated to using the provision of value to customers
through business activities to make contributions to progress
involving climate change, the depletion of natural resources, thedestruction of forests, respect for human rights and other important
issues.
Diversity and inclusion as well as ESG (Environment, Social,Governance) are also priorities for the Freund Group in order to playa role in creating a sustainable society from a long-term perspective.
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9th Medium-term Management Plan/Key Strategies

Build a stronger base of operations
The goal is to use activities in the following four themes to achieve sustained medium- tolong-term growth of the Freund Group and of corporate value.
Human resources

Environmental programs
ダイバーシティ推進

More recruiting and training
activities

Use of business operations for theresponsible use of global resources
Activities concerning global
environmental problems• Increase hiring of new graduates and people with priorwork experience• Expansion of education and training programs• Job rotations to give people multitasking skills• Develop machinery and systems that uses less labor andhelps protect the environment• Modal shift for shipments of pharmaceutical excipients• Develop environmentally responsible food preservatives

More engagement

Diversity

Increase job satisfaction and motivation ofemployees

Measures for the advancement of women andassistance to enable people to continue working
while meeting responsibilities at home

• Grant restricted stock (more sense of participation inmanagement)• Hold One Freund Meeting (every month to explain stanceof management)• Health management activities• Increase pct. of female managers from the current 14.7%
to at least 20%• Increase use of available child care time off by men fromthe current 33% to at least 50%
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Examples of Activities for Sustainability

Domestic Machinery

Chemicals

Develop and sell machinery that increases automation,
uses less labor and helps protect the environment

Pharmaceutical excipient modal shift

Tablet Coater"HICOATER HV"

Tablet Automatic Coating Tool
"TACT"

Titration Image Automation System“HIPPO SCAN”

Lower greenhouse gas emissions(About 5.8 tons)

Develop and sell environmentally responsible
food preservatives

Biomass content ratio is more than 80%“Antimold-Mild EF”

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9th Medium-term Management Plan/
Key Strategies
Build a stronger base of operations
Investment
plan*Totals forthree years

Capitalinvestment

About ¥

5.0billion• Construction of a new
excipient factory• Automation of foodpreservative production

DividendPolicy

R&D
expenses
About ¥

2.5billion• Use new technologies• Develop new products

Humancapital
investment

About ¥

0.7billion• Expenses for employee
education/training• Grant of restricted stock

Distributing earnings to shareholders is one of the highest priorities of Freund. This medium-termplan has the goal of maintaining a suitable balance between investments for sustained growth andconsistent dividend payments. Decisions about repurchasing stock will be made based on market
conditions, the level of equity and other considerations.
*A commemorative dividend for Freund’s 60th anniversary is planned for FY2/25.
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Shareholder Returns

Stock dividends and splits since listing
30.0
Commemorative dividend (Yen)

Ordinary year‐end dividend (Yen)
25.0

5.0

stock split

20.0

5.0
15.0
2.5
10.0

5.0
1.25
0.0

20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0

stock split
2.5

2.5

2.5

2.5

2.5

2.5

2.52.5

2.5

2.5

2.5

2.5

2.5

2.5

’97

’98

’99

’00

’01

’02

’03

’04

’05

’06

’07

2.5

2.5

5.0

5.0

’08

’09

7.5

7.5

7.5

’10

’11

’12

10.0

’13

12.5 12.5 12.5

’14

’15

’16

15.0

’17

’18

’19

’20

’21

’22

’23

’24

’25

(Forecast)∗ Freund conducted a 2-for-1 common stock split on June 1, 2009 and March 1, 2016. The dividends per share for
FY2/16 and earlier have been adjusted to reflect the stock split.
∗ Above amounts are current dividend per share.
22∗ There has been no reduction in the ordinary dividend since Freund was listed.

Disclaimer of Forward-Looking Statements

This presentation contains forward-looking statements involving plans,outlooks, strategies and policies.
These statements reflect the judgments of management andassumptions based on information available at the time of thispresentation. Actual results of operations may differ from thesestatements for a number of reasons.

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