January 12, 2023

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2023
(Nine Months Ended November 30, 2022)
Company name:Securities code:
Representative:
Contact:[Japanese GAAP]
Listing: Tokyo Stock Exchange
URL: https://www.freund.co.jp

Freund Corporation

6312
Iwao Fusejima, President & CEO
Masao Wakai, Managing Director, Division Director, Corporate Planning Division
Tel: +81-3-6890-0750
Scheduled date of filing of Quarterly Report:
January 12, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
None
None
Holding of quarterly financial results meeting:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter (March 1, 2022 – November 30, 2022) of the
Fiscal Year Ending February 28, 2023
(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Million yen

Nine months ended Nov. 30, 2022
Nine months ended Nov. 30, 2021
Note: Comprehensive income%

Million yen

Profit attributable toowners of parent

Ordinary profit

Million yen%

12,5044.3
45 (90.1)
132 (73.1)
1
11,988
10.5
459
17.4
492
13.2
270
Nine months ended Nov. 30, 2022: 761 million yen(up 47.6%)
Nine months ended Nov. 30, 2021: 516 million yen(up 221.9%)
Net income per share Diluted net income per share%

Million yen(99.6)(2.5)

Yen

Nine months ended Nov. 30, 2022
Nine months ended Nov. 30, 2021
Reference: Equity in earnings of affiliates

%

Yen

0.06
16.13
Nine months ended Nov. 30, 2022:
Nine months ended Nov. 30, 2021:(12) million yen- million yen(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

23,504
14,75822,273
14,354As of Nov. 30, 2022: 14,758 million yen

As of Nov. 30, 2022
As of Feb. 28, 2022
Reference: Equity capital

Net assets per share
%

Yen

62.8
881.4064.4857.28
As of Feb. 28, 2022: 14,354 million yen

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

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2022
0.00
Fiscal year ending Feb. 28, 2023
0.00
Fiscal year ending Feb. 28, 2023 (forecast)
Note: Revision to the most recently announced dividend forecast: None

-

20.00

20.00

20.00

20.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2023 (March 1, 2022 – February 28, 2023)
Net sales
Million yen(Percentages represent year-on-year changes)
Net income per
Profit attributable toOrdinary profit
owners of parent
share

Operating profit

Million yen%

Million yen%

Yen

Full year
19,500 10.6
150
(84.7)
200
Note: Revision to the most recently announced consolidated forecast: Yes%

Million yen%(80.6)

100(81.6)

5.97

* 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 8 “(3) 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:

Yes2) 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 Nov. 30, 2022:

18,400,000 shares

As of Feb. 28, 2022:

18,400,000 shares

As of Feb. 28, 2022:

1,655,480 shares

2) Number of treasury shares at the end of the period
As of Nov. 30, 2022:

1,655,480 shares

3) Average number of shares outstanding during the period
Nine months ended Nov. 30, 2022:

16,744,520 shares

Nine months ended Nov. 30, 2021: 16,744,520 sharesThis 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 ofreasons.Please refer to the section “Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 3 ofthe attachments regarding preconditions or other related matters for forecasts shown above.

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

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) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8Additional Information

8

Changes in Accounting Policies

8

Segment and Other Information

10

Revenue Recognition12

3. Others

12

Orders and Sales

121Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the current fiscal year, the Japanese economy showed signs of recovery as thecountry achieved balance between measures against new coronavirus infections and resumption of social andeconomic activities. However, the situation remained uncertain due to the prolonged Ukraine conflict andinflation resulting from rising raw materials and energy prices due to the rapid depreciation of the yen.
Although the global economy is headed for recovery the outlook remains uncertain. The primary reasons forthis uncertainty are accelerating inflation caused by rising prices of resources, energy and food due to theprolonged Ukraine conflict, and rapid monetary tightening in Europe and the United States.
In the pharmaceutical industry, which is the primary user of Freund Group products, companies need to deal
with the challenges of increasing R&D costs and tightening measures to control healthcare expenditures, suchas national health insurance price revisions every year instead of every two years. In the generic drug market,
growth is expected to slow as the effects of the government’s measures to promote the use of generic drugs
have run their course. Due to deficiencies of some manufacturers in their manufacturing system, the industry
as a whole is required to build a sound infrastructure for ensuring the quality and stable supply of genericdrugs. To respond to these requirements, major generic drug manufacturers plan to expand their facilities, suchas by building additional plants.
The Freund Group aims to further strengthen its sales capabilities in the machinery and chemicals businesses
and build a framework for utilizing the group’s technologies to meet customers’ true needs. All of these
initiatives will create a sound base for even more aggressive product development, manufacturing and sales
activities worldwide. To expand beyond its operations in Japan and the United States, the Freund Group began
operations in India in 2019 and Italy in 2020. The Freund Group is planning to start activities in China in earlynext fiscal year, which will create a five-pole global structure. Under this five-pole structure, the FreundGroup will pursue synergies among group companies to enhance its presence in Japan and overseas markets.
Net sales increased 4.3% year-over-year to 12,504 million yen, operating profit decreased 90.1% year-overyear to 45 million yen, ordinary profit decreased 73.1% year-over-year to 132 million yen and profit
attributable to owners of parent decreased 99.6% year-over-year to 1 million yen.
Operating results by segment are as follows
Machinery Business Segment
Granulating and coating equipment are the main products of this segment. The volume of orders has been highbecause generic drug manufacturers are raising production capacity and the order backlog rose to a new record.
However, earnings declined in the U.S. subsidiary, as significant delays continued in shipments due to the tightlabor supply and the prolonged procurement of parts/materials caused by supply chain disruptions.
Furthermore, the higher cost of raw materials caused by rapid inflation exerted significant downward pressureon earnings. In Japan as well, in addition to the sharp rise in raw materials/parts prices, prolonged lead times
for procurement and shipment of semiconductors and other parts/materials affected its earnings.
As a result, net sales increased 0.6% year-over-year to 7,783 million yen and segment loss was 263 million yen(compared with segment profit of 262 million yen in the same period of the previous fiscal year).
Chemicals Business Segment
Sales of pharmaceutical excipients increased in Japan and other countries and are growing at a pace that is
expected to result in fiscal year sales that surpass the prior fiscal year’s all-time high. Operating profit also
increased.
Food preservative sales and operating profit increased. Demand continues to increase because of the recovery
in demand for confectionery products and strong e-commerce sales of bread. Sales in this category are also at alevel that is expected to exceed the prior fiscal year’s all-time high.
Sales of health food products declined because of the completion of a contract for manufacturing products for2

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

a high-volume customer.
As a result, net sales increased 11.1% year-over-year to 4,721 million yen and segment profit increased 23.2%
to 742 million yen.
(2) Explanation of Financial Position
Total assets increased 1,230 million yen from the end of the previous fiscal year to 23,504 million yen at theend of the third quarter. This mainly reflected increases of 2,074 million yen in work in process, 281 million
yen in electronically recorded monetary claims-operating and 130 million yen in buildings and structures, net,
while there was a decrease of 1,259 million yen in notes and accounts receivable-trade, and contract assets.
Total liabilities increased 827 million yen from the end of the previous fiscal year to 8,746 million yen at theend of the third quarter. This mainly reflected an increase of 973 million yen in contract liabilities, while there
was a decrease of 190 million yen in notes and accounts payable-trade.
Net assets increased 403 million yen from the end of the previous fiscal year to 14,758 million yen at the endof the third quarter. This mainly reflected an increase of 778 million yen in foreign currency translation
adjustment, while there was a decrease of 369 million yen in retained earnings.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Based on the results of operations in the first nine months of the current fiscal year, the Company has revised
the full year consolidated forecasts for the fiscal year ending February 28, 2023, which was disclosed in theConsolidated Financial Results for the Fiscal Year Ended February 28, 2022 dated April 13, 2022. For more
information, please refer to the press release titled “Notice of Revisions to Consolidated Forecasts” that wasannounced today (January 12, 2023).

3

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY2/22(As of Feb. 28, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Notes and accounts receivable-trade, and contract assets
Electronically recorded monetary claims-operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Customer-related assets
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Other
Allowance for doubtful accounts
Total 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
Contract liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other
Total current liabilities
Non-current liabilities
Lease obligations
Retirement benefit liability
Asset retirement obligations
Provision for retirement benefits for directors (and otherofficers)
Other
Total non-current liabilities
Total liabilities

4(Thousands of yen)
Third quarter of FY2/23(As of Nov. 30, 2022)

4,145,207
4,902,513
326,231
667,070
2,390,278
2,032,755
211,030
341,948(12,624)
15,004,411

3,370,808
3,643,477
607,767
727,935
4,464,594
2,131,411
222,296
664,934(15,221)
15,818,005

2,014,906
1,141,676
1,406,379
4,562,962

2,145,394
1,145,992
1,325,419
4,616,806

643,241
31,945224,080
472,554
63,0081,434,830

641,324
33,094
465,502487,208
54,405
1,681,534

235,394
1,041,705(5,400)1,271,699
7,269,492
22,273,904

355,927
1,037,873(5,400)1,388,400
7,686,741
23,504,746

1,767,452
976,189
27,180
256,0872,805,781
252,662
29,918920,502
7,035,774

1,577,395
587,550
813,735
3,779,016
112,047
14,225
977,625
7,861,595

376,253
316,216
67,130378,544
310,798
67,229

6,591

9,855

117,161
883,353
7,919,127

118,107884,536
8,746,132

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

FY2/22(As of Feb. 28, 2022)(Thousands of yen)
Third quarter of FY2/23(As of Nov. 30, 2022)

Net assets
Shareholders’ equity
Share capital

1,035,600

1,035,600

Capital surplus

1,289,513

1,289,513

Retained earnings

12,808,681

12,439,433

Treasury shares(773,363)(773,363)

Total shareholders’ equity

14,360,432

13,991,184

39,68832,261

Foreign currency translation adjustment(37,972)

740,571

Remeasurements of defined benefit plans(7,371)(5,403)

Total accumulated other comprehensive income(5,655)

767,429

14,354,776

14,758,614

22,273,904

23,504,746

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

Total net assets
Total liabilities and net assets

5Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)(Thousands of yen)First nine months of FY2/23(Mar. 1, 2022 – Nov. 30, 2022)

Net sales

11,988,176

12,504,922

Cost of sales

7,765,334

8,365,442

Gross profit

4,222,841

4,139,479

Selling, general and administrative expenses

3,763,605

4,094,193

459,235

45,286

Operating profit
Non-operating income
Interest income

2,532

55

Dividend income

5,655

5,809

Technical support fee income
Foreign exchange gains

9,344

13,731

9,891

81,472

Other

14,215

26,162

Total non-operating income

41,639127,229

6,652

19,891-

12,192

1,399

7,792

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Other

8,052

39,876492,823

132,640

Gain on sale of non-current assets

1,953

13,967

Gain on sale of investment securities

1,298

-

Total extraordinary income

3,251

13,967

49,685

6,693

795

1,124

4,557

37,672

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses
Loss on sale of non-current assets
Loss on retirement of non-current assets-

27,81255,03973,303

Profit before income taxes

441,035

73,304

Income taxes

170,887

72,287

Profit270,148

1,017

Profit attributable to owners of parent

270,148

1,017

Loss on valuation of investment securities
Total extraordinary losses

6Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)(Thousands of yen)First nine months of FY2/23(Mar. 1, 2022 – Nov. 30, 2022)

270,148

1,017

8,968

(7,426)

235,154753,441

2,043

1,967

-

12,909246,167

760,892

516,316

761,909516,316

761,909

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent7

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23(3) 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, Freund uses the statutory
effective tax rate to calculate tax expenses for cases in which using the estimated effective tax rate gives a
noticeably irrational result.
Additional Information
Effect of COVID-19 on accounting estimates
There are no significant changes in the assumptions concerning COVID-19, including the expected end of thispandemic, that are stated in the supplementary information section of the Securities Report for the previous
fiscal year.
Changes in Accounting Policies
Application of Accounting Standard for Revenue Recognition
The Company has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board ofJapan (ASBJ) Statement No. 29, March 31, 2020) and the Implementation Guidance on Accounting Standard
for Revenue Recognition (ASBJ Guidance No. 30, March 26, 2021) from the beginning of the first quarter ofthe current fiscal year. Based on these standards, revenue expected to be received in exchange for theprovision of goods and services is recognized when the control of the goods and services is transferred tocustomers. The major revisions due to the application of this new standard are as follows.
1) Identification of performance obligations and allocation of transaction prices
For construction contracts that include the sale of machinery, the performance obligations concerning the saleof machinery and the completion of construction are identified separately. Transaction prices are allocatedbased on independent selling prices and revenue is now recognized when each obligation has been fulfilled.
2) Revenue recognition for construction contracts
In previous years, the percentage-of-completion method was used for construction contracts for projects where
the percentage of completion can be accurately determined. The completed-contract method was used for allother construction contracts. Due to the new revenue recognition standard, revenue is now recognized over a
designated period as the performance obligation is fulfilled.
3) Revenue recognition for agent transactions
In previous years, the entire amount received from customers was recognized as revenue. Due to the newrevenue recognition standard, for transactions where the Freund Group functions as an agent for the provisionof goods or services to customers, net revenue is now recognized by deducting payments to suppliers from theamount received from customers.
For the application of the Accounting Standard for Revenue Recognition, in accordance with the transitional
measures in the proviso to Paragraph 84 of this standard, the cumulative effect of the retrospective applicationof the new accounting standard, if it is applied prior to the first quarter of the current fiscal year, is added to or
subtracted from retained earnings at the beginning of the first quarter of the current fiscal year. The new8Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

standard is then applied beginning with this amount of retained earnings. However, the Company has applied
the method prescribed in Paragraph 86 of this standard and has not retrospectively applied the new accounting
policy to contracts in which almost all revenue were recognized in accordance with the previous treatment
prior to the beginning of the first quarter of the current fiscal year. In addition, the Company has applied themethod prescribed in Paragraph 86, Article 1 of the Accounting Standard for Revenue Recognition, andaccounted for contract changes made prior to the beginning of the first quarter of the current fiscal year basedon the contract terms after reflecting all contract changes, and added or subtracted the cumulative effect ofsuch changes to retained earnings at the beginning of the first quarter of the current fiscal year.
As a result, net sales decreased 37,288 thousand yen and cost of sales decreased 53,614 thousand yen, while
operating profit increased 38,325 thousand yen and ordinary profit and profit before income taxes increased
37,671 thousand yen each in the first nine months of the current fiscal year. In addition, there was a decreaseof 35,373 thousand yen in retained earnings at the beginning of the current fiscal year.
“Notes and accounts receivable-trade” presented in the current assets section of the consolidated balance sheet
in the previous fiscal year is, from the first quarter of the current fiscal year, included in “Notes and accounts
receivable-trade, and contract assets.” “Advances received,” that was presented in the current liabilities sectionis, from the current fiscal year, presented as “Contract liabilities.” In accordance with the transitional measuresprescribed in Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassification has
been made to the prior year’s consolidated financial statements to conform to the new presentation.
Furthermore, in accordance with the transitional measures prescribed in Paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), the Company has notpresented information on revenue from contracts with customers broken down for the first nine months of theprevious fiscal year.
Application of the Accounting Standard for Fair Value Measurement
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July4, 2019) from the beginning of the first quarter of the current fiscal year, and has applied the new accounting
policies set forth by the Accounting Standard for Fair Value Measurement prospectively in accordance with thetransitional measures prescribed in Paragraph 19 of the Accounting Standard for Fair Value Measurement andParagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019).
The application of this standard has no effect on the quarterly consolidated financial statements.

9

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

Segment and Other Information
Segment information
I First nine months of FY2/22 (Mar. 1, 2021 – Nov. 30, 2021)
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

7,740,139

4,248,036

11,988,176-

11,988,176

-

-

-

-

-

Total

7,740,139

4,248,036

11,988,176-

11,988,176

Segment profit
262,994
Notes: 1. Contents of adjustments are as follows.

602,269

865,263(406,027)

459,235

The negative adjustment of 406,027 thousand yen to segment profit includes corporate expenses that are notallocated to any of the reportable segments. Corporate expenses mainly consist of selling, general andadministrative 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 statementof income.

2. Information related to impairment losses on non-current assets for each reportable segment and goodwill,etc.
Significant impairment losses related to non-current assets
In the Chemicals Business segment, Freund has recognized impairment losses on construction in progress of
49,685 thousand yen with no prospects for use in the future.
3. Information by region
Net sales
In addition to the disclosure of information required by the “Accounting Standard for Quarterly Financial
Statements,” Freund 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

Latin America

Europe

Asia

Other

8,549,907
990,666
535,763
667,101
995,099249,638
Notes: 1. Classification of net sales is based on the location of the client and categorized by country or region.

Total
11,988,176

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, Italy, UK, etc.

(3) Asia:

China, India, etc.

(4) Other:

Middle East, etc.

10Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

II First nine months of FY2/23 (Mar. 1, 2022 – Nov. 30, 2022)
1. Information related to net sales and profit or loss for each reportable segment
MachineryBusiness

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

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

7,783,433

4,721,488

12,504,922-

12,504,922

-

-

-

-

-

Total

7,783,433

4,721,488

12,504,922-

12,504,922

Segment profit (loss)(263,334)
Notes: 1. Contents of adjustments are as follows.

742,190

478,856(433,569)

45,286

The negative adjustment of 433,569 thousand yen to segment profit (loss) includes corporate expenses that are
not allocated to any of the reportable segments. Corporate expenses mainly consist of selling, general andadministrative 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
Omitted due to immateriality.
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

Latin America

1,068,220

937,467

8,167,784

Europe761,099

Asia
1,439,415

Other130,935

Total
12,504,922

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, Italy, UK, etc.

(3) Asia:

China, India, etc.

(4) Other:

Middle East, etc.

11Freund Corporation (6312) Financial Results for the Third Quarter of FY2/23

Revenue Recognition
Information of breakdown on revenue from contracts with customers
First nine months of FY2/23 (Mar. 1, 2022 – Nov. 30, 2022)(Thousands of yen)
Reportable segments

Machinery Business

Chemicals Business

Total

Japan

3,716,114

4,451,670

8,167,784

United States

1,068,100

120

1,068,220

Latin America

937,467-

937,467

Europe590,053

171,045

761,099

Asia

1,340,763

98,652

1,439,415

Other130,935-

130,935

Revenue from contracts with customers

7,783,433

4,721,488

12,504,922

External sales

7,783,433

4,721,488

12,504,922

3. Others
Orders and Sales(1) Orders received
Operating segment(Thousands of yen)First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)

First nine months of FY2/23(Mar. 1, 2022 – Nov. 30, 2022)

AmountAmountYear-on-year (%)

Year-on-year (%)

10,612,323
116.8
11,655,332
109.8
Machinery BusinessNotes: 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(Thousands of yen)First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)

First nine months of FY2/23(Mar. 1, 2022 – Nov. 30, 2022)

AmountAmountYear-on-year (%)

Year-on-year (%)

9,626,868
130.3
15,365,269
159.6
Machinery BusinessNotes: 1. No order backlog is shown for the Chemicals Business because production is based on sales 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(Thousands of yen)First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)
AmountMachinery Business
Chemicals BusinessFirst nine months of FY2/23(Mar. 1, 2022 – Nov. 30, 2022)

Composition (%)

7,740,139

64.6

AmountComposition (%)

7,783,433

62.2

4,248,036

35.4

4,721,488

37.8

11,988,176

100.0

12,504,922

100.0

Total
Notes: 1. Sales are based on selling prices; inter-segment transactions have been eliminated.
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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