October 6, 2020

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending February 28, 2021
(Six Months Ended August 31, 2020)[Japanese GAAP]
Listing: Tokyo (JASDAQ)
Freund Corporation
6312
URL: http://www.freund.co.jp
Iwao Fusejima, President & CEO
Masao Wakai, Director, Division Director, Corporate Planning Division
Tel: +81-3-6890-0750
Scheduled date of filing of Quarterly Report:
October 6, 2020
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Yes (Only video distribution)
Holding of quarterly financial results meeting:Company name:Securities code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (March 1, 2020 – August 31, 2020) of the
Fiscal Year Ending February 28, 2021
(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Million yen

Six months ended Aug. 31, 2020
Six months ended Aug. 31, 2019
Note: Comprehensive income%

Million yen

%

7,043
3.3
251
271
6,817 (25.2)
3 (99.4)
6 (99.1)
Six months ended Aug. 31, 2020:
88 million yen(-%)
Six months ended Aug. 31, 2019:(108) million yen(-%)
Net income per share Diluted net income per share

183
(7)

-

Six months ended Aug. 31, 2020
Six months ended Aug. 31, 2019%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen

Yen

Yen

10.98
(0.46)-(2) Consolidated financial position
Total assets

Net assets

Million yen

As of Aug. 31, 2020
As of Feb. 29, 2020
Reference: Equity capital

Equity ratio

Million yen

17,525
12,99718,505
13,243As of Aug. 31, 2020: 12,997 million yen

Net assets per share%Yen

776.21
74.2
790.94
71.6
As of Feb. 29, 2020: 13,243 million yen

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Yen

Year-end

Yen

Total

Yen

Yen

Fiscal year ended Feb. 29, 2020
0.00
20.00
Fiscal year ending Feb. 28, 2021
0.00
Fiscal year ending Feb. 28, 2021 (forecast)
Note: Revision to the most recently announced dividend forecast: None
Note: Dividend forecast for the fiscal year ending February 28, 2021 has not been determined at this time.

20.00
-

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2021 (March 1, 2020 – February 28, 2021)
Net sales
Million yen

Operating profit%

Million yen(Percentages represent year-on-year changes)
Profit attributable to
Net income perowners of parent
share

Ordinary profit
Million yen%

Million yen%

Yen

Full year
17,800
6.1
1,000
79.1
1,000
Note: Revision to the most recently announced consolidated forecast: None

%

71.6

700

83.5

41.80

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to page 10 “(4) Application of Special Accounting Methods for Presenting Quarterly Consolidated
Financial Statements” for details.

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of Aug. 31, 2020:

18,400,000 shares

As of Feb. 29, 2020:

18,400,000 shares

As of Feb. 29, 2020:

1,655,480 shares

Six months ended Aug. 31, 2019:

16,744,520 shares

2) Number of treasury shares at the end of the period
As of Aug. 31, 2020:

1,655,480 shares

3) Average number of shares outstanding during the period
Six months ended Aug. 31, 2020:

16,744,520 shares

The current financial report is not subject to quarterly review by certified public accountants or auditing firms.
Cautionary statement with respect to forecasts of future performance and other special items
Forecasts regarding future performance in these materials are based on certain assumptions judged to be valid and information
currently available to the Company. Actual performance may differ significantly from these forecasts for a number of reasons.
Please refer to the section “Explanation of Consolidated Forecast and Other Forward -looking Statements” on page 3 of theattachments regarding preconditions or other related matters for forecasts shown above.

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6(3) Quarterly Consolidated Statement of Cash Flows

8(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

10Additional Information

10

Segment and Other Information

11

3. Others

13

Orders and Sales

131Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, there was a rapid economic downturn in Japan because of the global
COVID-19 pandemic. In the second quarter of 2020, Japan’s real GDP contracted at an annualized rate of 28.1%
from the previous quarter, which is more than the decline during the global financial crisis. Economic activity has
started to recover following the May 25 end of the state of emergency. However, due to concerns about a second
wave of infections, the pace of this recovery is slow as the Japanese government aims to maintain the properbalance between measures for preventing the growth of infections and for maintaining economic activity.
The growth of COVID-19 infections on a global scale along with strict measures to deal with this crisis haveseverely impacted the economies of countries worldwide. Nevertheless, the economies of many countries are
slowly recovering as governments take actions for both supporting their economies and stopping the spread of
COVID-19.
In the pharmaceutical industry, which is the primary source of demand for Freund Group products, companies
must take actions in response to changes in the business climate. Changes include heightened measures to holddown healthcare expenditures, such as national health insurance drug price revisions and the increasing use ofgeneric drugs, and the rising cost of R&D programs as well as the associated risk. In addition, the benefits ofmeasures by the Japanese government to increase the use of generic drugs are declining, resulting in a slow
decline in the growth rate of the generic drug market.
The fiscal year ending in February 2021 is the first year of the Freund Group’s Eighth Medium -term Management
Plan covering the three-year period ending February 2023. This plan is centered on the themes of customers, newproducts, a global perspective and growth. In addition, the plan has the following seven goals.
1. Group solidarity and collaboration
2. Always use the customer’s perspective
3. Make innovation a priority
4. Global management of the Freund Group
5. Progress based on a strategy for growth
6. Business process and working style reforms
7. Make compliance/governance a priority
While focusing on these goals, the overall objective is to structure business operations so that performance is notvulnerable to a change in conditions in any particular market where the Freund Group operates. In the current
fiscal year, all group companies are working on reaching the consolidated targets of sales of 17,800 million yen
and an operating profit of 1,000 million yen.
Net sales increased 3.3% year-over-year to 7,043 million yen, operating profit was 251 million yen (comparedwith operating profit of 3 million yen in the same period of the previous fiscal year), in part because a U.S.
subsidiary received a COVID-19 subsidy of about 2.1 million dollars from the U.S. government, ordinary profit
was 271 million yen (compared with ordinary profit of 6 million yen in the same period of the previous fiscal
year), and profit attributable to owners of parent was 183 million yen (compared with loss attributable to ownersof parent of 7 million yen in the same period of the previous fiscal year).
Results by business segment were as follows.
Machinery Business Segment
In the machinery segment, where granulating and coating equipment are the main products, sales and operating
profit were higher due to strong sales even though some export shipments were delayed by the COVID-19 crisis.
As a result, net sales increased 4.1% year-over-year to 4,125 million yen and segment profit was 255 million yen(compared with segment loss of 119 million yen in the same period of the previous fiscal year).

2

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

Chemicals Business Segment
Sales and operating profit for pharmaceutical excipients used for oral drugs declined in part because deliveries ofsome products were postponed to the third quarter or afterward.
Sales and operating profit of food preservatives also decreased. The main reason was lower sales of souvenirs fortourists and confectionery products at department stores because of the spread of COVID-19.
Sales and operating profit for the production of health food products for other companies increased as thesecompanies increased their inventories of these products.
As a result, net sales increased 2.3% year-over-year to 2,917 million yen and segment profit decreased 40.2% to228 million yen.
(2) Explanation of Financial Position
Total assets decreased 979 million yen from the end of the previous fiscal year to 17,525 million yen at the end of
the second quarter. This mainly reflected decreases in notes and accounts receivable-trade of 1,006 million yen,electronically recorded monetary claims-operating of 231 million yen, merchandise and finished goods of 94
million yen and other, net under property, plant and equipment including machinery, equipment and vehicles of
71 million yen, while there were increases in cash and deposits of 429 million yen and work in process of 79
million yen.
Total liabilities decreased 733 million yen from the end of the previous fiscal year to 4,528 million yen at the endof the second quarter. This mainly reflected decreases in electronically recorded obligations-operating of 739
million yen and notes and accounts payable-trade of 516 million yen, while there was an increase of advances
received of 511 million yen.
Net assets decreased 246 million yen from the end of the previous fiscal year to 12,997 million yen at the end of
the second quarter. This mainly reflected a decrease of 151 million yen in retained earnings.
Cash FlowsThe balance of cash and cash equivalents at the end of the second quarter was 4,743 million yen, up 429 million
yen over the end of the previous fiscal year (this compares with a decrease of 503 million yen in the same periodof the previous fiscal year).
The cash flow components and the main reasons for changes are as described below.
a. Cash flows from operating activities
Net cash provided by operating activities was 977 million yen (compared with net cash provided of 289 million
yen in the same period of the previous fiscal year). Although there were negative factors including a decrease intrade payables of 1,192 million yen, there were positive factors including a decrease in trade receivables of 1,211
million yen, an increase in advances received of 529 million yen and depreciation of 196 million yen.
b. Cash flows from investing activities
Net cash used in investing activities was 171 million yen (compared with net cash used of 414 million yen in thesame period of the previous fiscal year). There was a payment for the purchase of property, plant and equipmentof 206 million yen.
c. Cash flows from financing activities
Net cash used in financing activities was 366 million yen (compared with net cash used of 359 million yen in thesame period of the previous fiscal year). This was mainly the result of dividends paid of 333 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There are no revisions to the full year consolidated forecasts for the fiscal year ending February 28, 2021, whichwere disclosed in the Consolidated Financial Results for the Fiscal Year Ended February 29, 2020 dated April 24,
2020.
3

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY2/20(As of Feb. 29, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade(Thousands of yen)
Second quarter of FY2/21(As of Aug. 31, 2020)

Electronically recorded monetary claims-operating
Merchandise and finished goods

4,314,123
5,013,789
417,513647,754

4,743,190
4,007,400
185,925553,280

Work in process
Raw materials and supplies
Prepaid expenses

1,390,426
1,013,444
139,944

1,469,563
1,033,871
148,312

Other

261,804

188,754

Allowance for doubtful accounts(5,471)(5,268)13,193,328

12,325,031

Buildings and structures, net
Land
Other, net

1,418,559
1,231,252
1,560,069

1,425,587
1,180,672
1,488,269

Total property, plant and equipment

4,209,880

4,094,529

SoftwareOther

19,811
76,27019,034
71,270Total intangible assets

96,08190,304

Deferred tax assets
Other
Allowance for doubtful accounts

208,497
802,939(5,400)213,407807,722(5,400)Total investments and other assets

1,006,036

1,015,729

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Income taxes payable
Advances received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities

5,311,999

5,200,563

18,505,327

17,525,595

1,754,324
1,367,537
32,82961,729775,289

1,237,952
628,369
110,086
1,286,568

237,693

197,9116,000

15,500788,516805,348

5,023,920

4,281,736

165,114
31,683
40,661

161,555
46,414
38,582

Non-current liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4237,458

246,552

5,261,378

4,528,289

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

FY2/20(As of Feb. 29, 2020)
Net assets
Shareholders’ equity
Share capital
Capital surplus(Thousands of yen)
Second quarter of FY2/21(As of Aug. 31, 2020)

1,035,600

1,035,600

1,289,513

1,289,513

Retained earnings
Treasury shares

11,964,299(773,363)

11,813,246(773,363)

Total shareholders’ equity

13,516,050

13,364,997

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

13,68018,996

Foreign currency translation adjustment(298,749)(399,132)

Remeasurements of defined benefit plans

12,967

12,443

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5(272,101)(367,691)

13,243,948

12,997,305

18,505,327

17,525,595

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)(Thousands of yen)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)

Net sales

6,817,515

7,043,727

Cost of sales

4,400,935

4,779,948

Gross profit

2,416,580

2,263,779

Selling, general and administrative expenses

2,413,308

2,012,694

3,271

251,084

Operating profit
Non-operating income
Interest income

3,406

292

Dividend income

6,144

5,615

Technical support fee income

3,154

4,039

-

3,183

Other

7,201

12,790Total non-operating income

19,90725,920Compensation income

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit

151

279

16,276

4,496

630

927

17,058

5,704

6,120

271,301

9,997

4,237

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

2,200

-

Total extraordinary income

12,197

4,237

Extraordinary losses
Impairment loss

203

-

-

4,697

Loss on retirement of non-current assets

210

4,534

Loss on valuation of investment securities

750

-

1,163

9,231

Profit before income taxes

17,154

266,307

Income taxes

24,89682,469Profit (loss)(7,741)

183,837

Profit (loss) attributable to owners of parent(7,741)

183,837

Loss on sales of non-current assets

Total extraordinary losses

6Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)(Thousands of yen)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)(7,741)

183,837(15,622)5,316(84,482)(100,382)

(568)

(523)

(100,672)(95,590)(108,414)

88,247(108,414)

88,247

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent7

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)(Thousands of yen)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)

Profit before income taxes

17,154

266,307

Depreciation

177,037

196,160

203-

Cash flows from operating activities

Impairment loss
Increase (decrease) in allowance for doubtful accounts(3,276)-

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Interest and dividend income(31,021)(39,601)(26,000)

9,500(9,550)(5,907)

Interest expenses

151

279

Foreign exchange losses (gains)

15,715744

Loss (gain) on sales of property, plant and equipment(9,997)459

Loss on retirement of property, plant and equipment

210

4,534

Decrease (increase) in trade receivables

513,823

1,211,311

Decrease (increase) in inventories(1,028,562)(50,597)

Decrease (increase) in other assets(78,116)

73,059

Increase (decrease) in trade payables

170,886(1,192,928)

Increase (decrease) in advances received

783,652

529,802

Increase (decrease) in other liabilities(97,763)

15,182Other, net(1,050)(8,053)

Subtotal

393,494

1,010,253

9,550

5,907

Interest paid

(151)

(279)

Income taxes refund

19,469-

Income taxes paid

(132,565)(46,663)-8,097

289,797

977,314(440,928)(206,860)

17,926

52,796(201)(2,037)(3,000)(2,209)Interest and dividends received

Other, net
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
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from cancellation of insurance funds
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Net cash provided by (used in) investing activities

8-(4,700)(1,143)(1,776)

4,200

-

9,661

-

(1,449)(28,729)147

21,635(414,788)(171,881)

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

First six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)(Thousands of yen)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)

Cash flows from financing activities
Repayments of short-term borrowings
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Repayments of lease obligations-(32,160)(25,398)-(1,820)(1,214)

Dividends paid

(332,440)(333,349)

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(359,658)(366,724)(19,202)(9,641)(503,851)

429,067

Cash and cash equivalents at beginning of period

5,534,431

4,314,123

Cash and cash equivalents at end of period

5,030,580

4,743,190

9

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
The tax expenses are calculated by first estimating the effective tax rate after the application of tax effectaccounting with respect to profit before income taxes during the fiscal year in which the period falls, andmultiplying that rate by the profit before income taxes for the period. However, the Company uses the statutory
effective tax rate to calculate tax expenses for cases in which using the estimated tax rate gives a noticeably
irrational result.
Additional Information
The COVID-19 pandemic is affecting the Freund Group’s operations as shipments of products in the Machinery
Business were delayed and sales of food preservatives in the Chemicals Business declined because of slow salesof confectionery products associated with closings and reduced operating hours of amusement parks anddepartment stores.
Accounting estimates for the impairment losses on non-current assets, recoverability of deferred tax assets andother items are based on the assumption that the impact of COVID-19 will slowly decline during the current fiscal
year.

10

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

Segment and Other Information
Segment information
I First six months of FY2/20 (Mar. 1, 2019 – Aug. 31, 2019)
1. Information related to net sales and profit or loss for each reportable segment
MachineryBusiness

Chemicals
Business(Thousands of yen)Amounts shwon onquarterly consolidated
statement of income(Note 2)Adjustment(Note 1)Total

Net sales(1) External sales(2) Inter-segment sales andtransfers
Total
Segment profit (loss)

3,964,804

2,852,711

6,817,515-

6,817,515

-

-

-

-

-

3,964,804

2,852,711

6,817,515-

6,817,515(119,964)

382,440

262,476(259,204)

3,271

Notes: 1. Contents of adjustments are as follows.
The negative adjustment of 259,204 thousand yen to segment profit (loss) includes corporate expenses that are notallocated to any of the reportable segments. Corporate expenses mainly consist of general and administrative
expenses that are not attributable to any of the reportable segments.
2. Segment profit (loss) is adjusted to be consistent with operating profit recorded in the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
In the Machinery Business segment, the Company has recognized impairment losses related to non -current assets
of 203 thousand yen.
3. Information by region
Net sales
In addition to the disclosure of information required by the “Accounting Standard for Quarterly Financial
Statements,” the Company provides information by region (net sales) based on the “Accounting Standard forDisclosures about Segments of an Enterprise and Related Information” for the purpose of providing investors
with useful information.
(Thousands of yen)Japan

United States

5,329,792

Latin America

757,822

Europe235,980

210,217

Other283,703

Total
6,817,515

Notes: 1. Classification of net sales is based on the location of the client and categorized by country or region.
2. Groupings of countries and regions other than Japan are determined by geographic proximity and mutual
operational relationships. Major countries and regions in each geographic segment are as follows.
(1) Latin America:

Brazil, etc.

(2) Europe:

France, UK, etc.

(3) Other:

Asia, etc.

11Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

II First six months of FY2/21 (Mar. 1, 2020 – Aug. 31, 2020)
1. Information related to net sales and profit or loss for each reportable segment
MachineryBusiness

Chemicals
Business(Thousands of yen)Amounts shwon onquarterly consolidated
statement of income(Note 2)Adjustment(Note 1)Total

Net sales(1) External sales(2) Inter-segment sales andtransfers

4,125,972

2,917,755

7,043,727-

7,043,727

-

-

-

-

-

Total

4,125,972

2,917,755

7,043,727-

7,043,727

Segment profit
255,922
Notes: 1. Contents of adjustments are as follows.

228,548

484,471(233,386)

251,084

The negative adjustment of 233,386 thousand yen to segment profit includes corporate expenses that are notallocated to any of the reportable segments. Corporate expenses mainly consist of general and administrative
expenses that are not attributable to any of the reportable segments.
2. Segment profit is adjusted to be consistent with operating profit recorded in the quarterly consolidated statement ofincome.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Not applicable.
3. Information by region
Net sales
In addition to the disclosure of information required by the “Accounting Standard for Quarterly Financial
Statements,” the Company provides information by region (net sales) based on the “Accounting Standard forDisclosures about Segments of an Enterprise and Related Information” for the purpose of providing investors
with useful information.
(Thousands of yen)Japan

United States

5,803,123

Latin America

401,651

Europe119,800

199,469

Other
519,681

Total
7,043,727

Notes: 1. Classification of net sales is based on the location of the client and categor ized by country or region.
2. Groupings of countries and regions other than Japan are determined by geographic proximity and mutual
operational relationships. Major countries and regions in each geographic segment are as follows.
(1) Latin America:

Brazil, etc.

(2) Europe:

France, UK, etc.

(3) Other:

Asia, etc.

12Freund Corporation (6312) Financial Results for the Second Quarter of FY2/21

3. Others
Orders and Sales(1) Orders received
Operating segment
Machinery BusinessFirst six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)
AmountYear-on-year (%)
5,311,232

81.5(Thousands of yen)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)
AmountYear-on-year (%)
6,705,850

126.3

Notes: 1. No orders received are shown for the Chemicals Business because production is based on sales plans rather thanspecific orders.
2. Orders received are based on selling prices; inter-segment transactions have been eliminated.
3. Orders received do not include consumption taxes.

(2) Order backlog
Operating segment
Machinery BusinessFirst six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)
AmountYear-on-year (%)
6,846,714

109.8(Thousands of yen)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)
AmountYear-on-year (%)
7,330,154

107.1

Notes: 1. No order backlog is shown for the Chemicals Business because production is based on s ales plans rather thanspecific orders.
2. Order backlog is based on selling prices; inter-segment transactions have been eliminated.
3. Order backlog does not include consumption taxes.

(3) Sales
Operating segment

First six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)
AmountComposition (%)(Thousands of yen)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)
AmountComposition (%)

Machinery Business

3,964,804

58.2

4,125,972

58.6

Chemicals Business

2,852,711

41.8

2,917,755

41.4

Total
6,817,515
100.0
7,043,727
Notes: 1. Sales are based on selling prices; inter-segment transactions have been eliminated.

100.0

2. Sales do not include consumption taxes.

This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience ofreaders who prefer an English translation.

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