FREUND CORPORATION
Selected by the Japanese Ministry of Economy, Tradeand Industry as a Global Niche Top 100 Company(Securities code: 6312)

Results of Operations
for the First Quarter of the Fiscal YearEnding February 28, 2021
July 13, 2020

Copyright(C) 2020 Freund Corp. All rights reserved.

Consolidated Financial Summary for the First Quarter of FY2/21

Copyright(C) 2020 Freund Corp. All rights reserved.

Consolidated Financial Summary First quarter orders involving capital expenditures in Japan were firm In the Machinery Business, where most deliveries at all group companies are usually in thefourth quarter of every fiscal year, first quarter performance was held down by the COVID-19crisis

 In the Chemicals Business, sales of pharmaceutical excipients decreased mainly because
customers reduced inventories and sales of food preservatives were impacted by lower salesof confectionery products caused by the COVID-19 crisis(Millions of yen)

FY2/20FY2/21Q1

Q1ActualActualYoY Change
AmountFY2/21
Forecasts%

Net sales

2,878

3,076

+197

+6.9

17,800Operating profit

(214)

(165)

+48(22.8)

1,000

Ordinary profit

(217)

(154)

+62(28.7)

1,000Profit(158)(121)+36(22.9)

700

Earnings per share (yen)

31.08

-9.44

(40.52)(130.4)41.8

Depreciation

84

94+9+11.5－

R&D expenses

204149(54)(26.8)－Dividend－－－－20.00

Copyright (C) 2020 Freund Corp. All rights reserved.

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Machinery Business: Overview
 Sales by Product Field

Pharmaceutical products:

Solid demand in Japan for pharmaceutical equipment but negative effects of COVID-19
in North America

Industrial products:

Sales activities in China and South Korea were limited by travel restrictions andother effects of COVID-19

 Segment Profit

(Millions of yen)

The parent company profit could not offset losses at two subsidiaries
FY2/20FY2/21

Q1Q1

ActualActualYoY changeAmountFY2/21
Forecasts
%

1,386

1,689

+303+21.9

12,0001,146

1,500+353

+30.9

－

240

189(50)(21.0)－

Operating profit

(267)

(125)

+141

-

－

Orders received

2,583

3,268+685

+26.5

－

2,148

2,977+828

+38.6

－

434

291(143)(33.0)－

6,657

6,295(362)

(5.4)

－

6,047

5,632(414)

(6.9)

－

610

662+51+8.5－110.96

107.58-3.38 yen/dollar(3.0)

105.00Net sales
医薬品関連 Products
Pharmaceutical
産業関連
Industrial
Products

Pharmaceutical Products
Industrial Products
Order backlog
医薬品関連 Products
Pharmaceutical
産業関連
Industrial
Products
Yen/dollar rate(+ is yen depreciation)

Copyright (C) 2020 Freund Corp. All rights reserved.

3

Machinery Business: Group Company Performance Freund Corporation: Sales and earnings increased

 Freund-Vector:
 Freund-Turbo:

Sales and earnings decreased because most deliveries are in
the 4Q of every fiscal year and due to the COVID-19 crisis(Millions of yen)

Net sales

FY2/20FY2/21Q1

Q1Amount

AmountYoY change
AmountFY2/21
Forecasts%

1,386

1,689+303+21.9

12,000

FREUND CORPORATION

830

1,363+533+64.2－

FREUND-VECTOR

395296(98)(25.0)－

FREUND-TURBO

160145(14)

(9.3)

－

Operating profit

(267)

(125)

+141-

－

FREUND CORPORATION(40)

94+135-－

FREUND-VECTOR

(157)

(161)

(4)

-－

FREUND-TURBO

(69)

(57)

+11-

－

2,583

3,268+685

+26.5

－

1,395

2,268+872+62.5－

FREUND-VECTOR

920

798(121)(13.2)－FREUND-TURBO

267

201(66)(24.7)－6,657

6,295(362)

(5.4)

－

FREUND CORPORATION

4,554

4,846+292+6.4－

FREUND-VECTOR

1,763965(798)(45.3)－FREUND-TURBO

339

483+143+42.2－Orders received
FREUND CORPORATION

Order backlog

Copyright (C) 2020 Freund Corp. All rights reserved.

4

Machinery Business: Sales by Region
 Japan:Sales increased partly due to large projects

 Overseas: Sales were lower in all regions because of COVID-19(Millions of yen)
FY2/20FY2/21Q1

Q1AmountAmountYoY change
AmountFY2/21
Forecasts%Net sales

1,386

1,689+303+21.9

12,000Japan894

1,354+459

+51.3

－

Overseas491335(155)(31.7)－North and South Americas

308

193(114)(37.2)－

Europe and Africa

8127(53)(66.2)－Middle East, Asia and Pacific

101

114

+12+12.4－

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5

Machinery Business: Quarterly Results (by Product Field)

Net sales

Operating profit margin(Millions of yen)
5,000

20.0%
Pharmaceutical Products
Industrial Products

15.0%

Operating profit margin
4,000

10.0%

3,000

5.0%

0.0%
2,000(5.0)%

1,000(10.0)%(15.0)%

0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY2/14(1,000)

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19FY2/20FY2/21(20.0)%(25.0)%

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Machinery Business: Quarterly Results (Net Sales/Orders Received/Order Backlog)(Millions of yen)
10,000Order backlog

Net sales
Orders received
8,000

6,000

4,000

2,000

0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2/14

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19FY2/20FY2/21

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7

Machinery Business: Quarterly Results (Orders Received and Order Backlog by Product Field）(Millions of yen)
10,000Order Backlog (Pharmaceutical Products)
Order Backlog (Industrial Products)
Orders Received (Pharmaceutical Products)
Orders Received (Industrial Products)

8,000

6,000

4,000

2,0000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY2/14

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19FY2/20FY2/21

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8

Chemicals Business: Overview

 Net Sales

Pharmaceutical excipients: Sales decreased mainly due to lower production bycustomers in Japan

Food preservatives:

Sales decreased because of COVID-19



Export:Sales decreased primarily in Asia

 Segment Profit:

Decreased because of a higher pct. of fixedexpenses allocated to this segment(Millions of yen)

Net sales

FY2/20FY2/21Q1

Q1AmountAmountYoY change
AmountFY2/21
Forecasts%

1,491

1,386(105)

(7.1)

5,800

682421281
54(81)(10.7)(116)(21.6)+92+49.2(Export sales)*1764
538
188
38+16+42.5－－－－

Operating profit

187

77(109)(58.5)－

Pharmaceutical Excipients
Food Preservatives
Dietary Supplement Products*1: Sales to India, South Korea and Taiwan, etc.

Copyright (C) 2020 Freund Corp. All rights reserved.

9Chemicals Business: Quarterly Results (by Product Field)
Net sales
Operating profit margin(Millions of yen)
2,50020.0%

Pharmaceutical Excipients
Food Preservatives
Dietary Supplement Products
2,000Operating profit margin
15.0%

1,50010.0%

1,0005.0%
50000.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2/14

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19FY2/20FY2/21

Copyright (C) 2020 Freund Corp. All rights reserved.

10Change in Consolidated Operating Profit
 Earnings benefited from measures to reduce SG&A expenses
 New product development expenses are decreasing following the recent peak in these expenses(Millions of yen)

＋55＋40＋21

Positive factors

Q1 FY2/20
Operating Decrease inprofit gross profit
R&D
expenses＋15

Advertisingexpenses
Traveling
expenses

Operations
consignment
expenses＋14
Other＋8＋5

Q1 FY2/21
Operating
Depreciation profit

Sales
commissions(8)

Personnel
expenses

(101)
(214)

(165)

Copyright (C) 2020 Freund Corp. All rights reserved.

11Inquiries:

Freund Corporation
Corporate Planning Department
Corporate Planning Division
Tel: +81-3-6890-0767
Fax: +81-3-6890-0870
Email: ir@freund.co.jp

IR website: http: //www.freund.co.jp
This presentation contains forward-looking statements involving plans, outlooks, strategies and policies. Thesestatements reflect the judgments of management and assumptions based on information available at the time ofthis presentation. Actual results of operations may differ from these statements for a number of reasons.
Consequently, forecasts and other forward-looking statements are not guarantees about future performance.
Although Freund has checked this presentation carefully, there is still a possibility of errors in this information.

Copyright (C) 2020 Freund Corp. All rights reserved.

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