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 Fiscal
Year Ended February 28, 2021
April 22, 2021

Copyright(C) 2021 Freund Corp. All rights reserved.

Table of Contents
 Consolidated Financial Summary for FY2/21

・・・ P.02

 Consolidated Earnings and Dividend Forecasts for FY2/22

・・・ P.15

 Medium-term Management Plan

・・・ P.19

Supplementary Materials

・・・ P.26

Factsheet・・・ Appendix

Copyright (C) 2021 Freund Corp. All rights reserved.

1

Consolidated Financial Summary for FY2/21

Copyright(C) 2021 Freund Corp. All rights reserved.

Consolidated Financial Summary
 Consolidated sales: Flat YoY
 Consolidated operating profit: Almost doubled YoY to 1,147 million yen
 Consolidated profit: Up 2.6x YoY to 995 million yen
 Machinery orders received: Up 21.1% YoY; Order backlog: up 40.9% YoY(Millions of yen)

FY2/21

FY2/20
ActualNet sales

ActualYoY change
Forecast％

Amount16,772

16,76517,800(7)(0.0)%

Operating profit

558

1,147

1,000

＋589

+105.5%

Ordinary profit

582

1,344

1,000

＋762

+130.7%

Profit

381

995

700

＋614

+161.0%Earnings per share (yen)

22.79

59.47

41.80

＋36.68-Orders received

10,227

12,386-＋2,159+21.1%

Order backlog

4,695

6,615

-

＋1,920+40.9%

Capital investment

951

637

-

(314)

(33.0)%

Depreciation

386

414

-

＋27

＋7.2%

R&D expenses

725

526

-

(199)

(27.4)%

ROA

2.1%

4.9%

-

-

-

ROE

2.9%

7.3%

-

-

-

Copyright (C) 2021 Freund Corp. All rights reserved.

3

Machinery Business: Overview
 Sales by Product Field

Pharmaceutical products: Demand from GE manufacturers for equipment continued to be weak after
the post-GE 80%. Although the domestic market was strong, overseas sales
were low due to sluggish exports to Brazil.
Industrial products:
Down 7.8% on lower demand from chemical and industrial machinery
manufacturers due to COVID-19

 Orders Received by Product Field

Pharmaceutical products: Up 26.2% because of large orders resulting from sales activities that
accurately targeted customers’ needs
Industrial products:
A challenging business climate due to weak demand(Millions of yen)

FY2/20
AmountFY2/21

YoY change (%)

AmountYoY change (%)

11,118(10.1)

11,171+0.5

医薬品関連 Products
Pharmaceutical

9,357

(7.9)

9,547

+2.0

産業関連
Industrial
Products

1,760(20.2)

1,623

(7.8)

Operating profit

311(57.8)

1,084+248.5

Orders received

10,227(13.6)

12,386+21.1

Pharmaceutical Products

8,478(16.9)

10,697+26.2

Industrial Products

1,749

+7.0

1,689

(3.4)

4,695

(13.5)

6,615

+40.9

4,156

(17.5)

5,890

+41.7

538

+38.6

725

＋34.6

109.0

-1.5 yen/dollar

106.0-3.1 yen/dollar

Net sales

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

Copyright (C) 2021 Freund Corp. All rights reserved.

4

Machinery Business: Group Company Performance

Freund Corporation:
Freund-Vector:

Sales in Japan were mostly in line with the plan. Strong overseas sales in China and India.
Although sales were sluggish as exports to Brazil declined, profits increased due to a U.S.
government COVID-19 relief payment and cost reductions.



Freund-Turbo:

Sales were weak, mainly because of lower demand from chemical and industrial
machinery manufacturers in the first half due to COVID-19.
(Millions of yen)
FY2/21

FY2/20
AmountNet sales

YoY change (%)

AmountYoY change (%)

11,118(10.1)

11,171+0.5

FREUND CORPORATION *6,254(11.6)

6,838

+9.3

FREUND-VECTOR *

3,994

(3.3)

3,580

(10.4)

FREUND-TURBO *1,522(18.4)

1,422

(6.6)

311

(57.8)

1,084+248.5

FREUND CORPORATION

308(57.9)

753+144.4

FREUND-VECTOR

(53)

ー

304

-

FREUND-TURBO

56

ー

26

(53.3)

10,227(13.6)

12,386+21.1

FREUND CORPORATION

5,920(11.3)

7,398

+25.0

FREUND-VECTOR

2,955(25.9)

3,282

+11.1

FREUND-TURBO

1,351

+14.7

1,293

(4.3)

4,695

(13.5)

6,615

+40.9

3,863

(3.1)

4,618

+19.5

436

(64.6)

841

+92.6

395

+92.0

503

+27.4

Operating profit

Orders received

Order backlog
FREUND CORPORATIONFREUND-VECTORFREUND-TURBO* Before elimination for consolidation

Copyright (C) 2021 Freund Corp. All rights reserved.

5

Machinery Business: Sales by Region
 Japan:Sales in Japan were mostly in line with the plan North and Latin Americas:

Sales decreased in Latin America (Brazil) because of COVID-19

 Europe and Africa:

Contribution from a large project in Italy Middle East, Asia and Pacific: Strong sales in China and India(Millions of yen)

FY2/20
AmountFY2/21

YoY change (%)

AmountYoY change (%)

Net sales

11,118(10.1)%

11,171

+0.5%

Japan

6,696

(8.4)%

6,696

+0.0%

Overseas

4,422(12.5)%

4,474

+1.2%

2,915

(13.0)%

2,346(19.5)%

452+13.8%

578＋27.9%

1,054(19.2)%

1,550+47.0%

North and Latin Americas
Europe and Africa
Middle East, Asia and Pacific

Copyright (C) 2021 Freund Corp. All rights reserved.

6

Machinery Business: Quarterly Results (by Product Field)
Net sales

Operatingprofit 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)%
0

Q1

Q2

Q3

FY2/16

Q4

Q1

Q2

Q3

FY2/17

Q4

Q1

Q2

Q3

FY2/18

Q4

Q1

Q2

Q3

FY2/19

Q4

Q1

Q2

Q3

FY2/20

Q4

Q1

Q2

Q3

Q4
(20.0)%

FY2/21(1,000)(25.0)%

Copyright (C) 2021 Freund Corp. All rights reserved.

7

Machinery Business: Quarterly Results (Orders Received/Order Backlog)(Millions of yen)Order Backlog (Pharmaceutical Products)

10,000Order Backlog (Industrial Products)
Orders Received (Pharmaceutical Products)
Orders Received (Industrial Products)

8,000

6,000

4,000

2,000

0
Q1

Q2

Q3

FY2/16

Q4

Q1

Q2

Q3

FY2/17

Q4

Q1

Q2

Q3

FY2/18

Q4

Q1

Q2

Q3

FY2/19

Q4

Q1

Q2

Q3

FY2/20

Q4

Q1

Q2

Q3

Q4

FY2/21

Copyright (C) 2021 Freund Corp. All rights reserved.

8

Chemicals Business: Overview
 Net Sales







Pharmaceutical excipients:

Sales decreased due to lower production by customers forsome products
Food preservatives:
Sales decreased as COVID-19 impacted confectionery sales
Dietary supplement products: Sales were higher as customers increased inventories ofsupplements
Export:Benefited from the expansion of overseas sales activities Segment ProfitOperating profit was down because of lower sales and higher sales of dietary supplement
products with low profit margins(Millions of yen)

FY2/20
AmountNet sales
Pharmaceutical Excipients
Food Preservatives
Dietary Supplement Products(Export sales)*1

Operating profit

FY2/21

YoY change (%)

AmountYoY change (%)

5,654

(6.4)

5,593

(1.1)

2,869
2,079

(10.2)

2,765
1,889

(3.6)

704
155

+1.6

＋33.2

(55.9)

938
221(23.7)

546(30.1)

781*1: Sales to India, South Korea, China, Taiwan, etc.

(3.4)

Copyright (C) 2021 Freund Corp. All rights reserved.

(9.1)
+42.0

9

Chemicals Business: Quarterly Results (by Product Field)
 Sales of pharmaceutical excipients were stable
 Food preservative sales decreased particularly in the first half as COVID-19 impacted confectionerysales
 Strong dietary supplements sales in the first half as customers increased inventories of supplements
Operatingprofit margin

Net sales(Millions of yen)
2,500

20.0%
Pharmaceutical Excipients
Food Preservatives

Dietary Supplement Products
2,000Operating profit margin
15.0%

1,500

10.0%

1,000

5.0%

500

0

0.0%

Q1

Q2

Q3

FY2/16

Q4

Q1

Q2

Q3

FY2/17

Q4

Q1

Q2

Q3

FY2/18

Q4

Q1

Q2

Q3

FY2/19

Q4

Q1

Q2

Q3

FY2/20

Q4

Q1

Q2

Q3

Q4

FY2/21

Copyright (C) 2021 Freund Corp. All rights reserved.

10Summary of Consolidated Statement of Income(Millions of yen)

FY2/20FY2/21

YoY change

AmountComposition
ratio

AmountComposition
ratio

Amount16,772100.0%

16,765100.0%(7)(0.0)%

11,344

67.6%

11,126

66.4%

(218)

(1.9)%

5,428

32.4%

5,639

33.6%

＋210

+3.9%

4,870

29.0%

4,491

26.8%

(378)

(7.8)%

Operation profit

558

3.3%

1,147

6.8%

＋589

+105.5%Non-operating income andexpenses

24

0.1%

197

1.2%

＋172

+707.9%Ordinary profit

582

3.5%

1,344

8.0%

＋762

+130.7%

(14)

-

(21)

-

(7)

-

568

3.4%

1,323

7.9%

＋754

+132.7%

381

2.3%

995

5.9%

＋614

+161.0%Net sales
Cost of sales
Gross profit
SG&A expenses

Extraordinary income andlossesProfit before income taxes
Profit％Copyright (C) 2021 Freund Corp. All rights reserved.

11

Analysis of Change in Consolidated Operating Profit
 Operating profit increased because of cost reductions at the Freund Group Freund-Vector earnings benefited from a U.S. government COVID-19 relief payment(Millions of yen)
1,400

+35
+68

1,200

+97
Positive factors

+118

1,000

Traveling

Gross profit

800

+199

Personnel

expenses

Advertisingexpenses

Other

(27)

+16

(33)

Sales
commission

Depreciation(95)

Goodwill

Operations

amortizationconsignment

expenses

expenses

R&D

+211

expenses

600

1,147

400

558
200

0

FY2/20FY2/21
Copyright (C) 2020 Freund Corp. All rights reserved.

12Summary of Consolidated Balance Sheet(Millions of yen)

FY2/20-End
Current assets

FY2/21-End

YoY change
Amount13,193

13,558＋364

Cash and depodits

4,314

4,498

+184

Accounts receivable

5,431

4,870

(561)

Inventories

3,051

3,473

＋421

Non-current assets

5,311

6,941

＋1,629

4,209

4,734

＋524

96

1189

＋1,093

1006

1,017

＋11

Total assets

18,505

20,499＋1,994Current liabilities

5,023

5,817

＋793

Accounts payable

3,121

2,966

(155)

Advances received

775

1,014

＋239

237

797

+560

165

280

＋115

Total liabilities

5,261

6,614

＋1,353

Total net assets

13,243

13,884+640

Property, plant and equipment
Intangible assets
Investments and other assets

Non-current liabilities
Retirement benefit liability

Intangible assets

・Goodwill due to acquisition of
Cos.Mec→ 1,089

Copyright (C) 2021 Freund Corp. All rights reserved.

13

Summary of Consolidated Statement of Cash Flows(Millions of yen)

FY2/20Cash flows from operating activities

FY2/21

(27)

2,280

Profit before income taxes

568

1,323

Depreciation

386

414

(1,106)674

Decrease (increase) in inventories

(590)

(112)

Increase (decrease) in notes and accounts payable - trade

921

(340)

Income taxes paid

(324)

(174)

Cash flows from investing activities(852)(1,726)

Payments for acquisition of Cos.Mec

0(1,106)

(835)

(469)

Cash flows from financing activities

(325)

(371)

Repayments of lease obligations

(3)

(9)

(333)

(333)

Net increase (decrease) in cash and cash equivalents(1,220)184

Cash and cash equivalents at end of period

4,314

4,498

Free cash flow

(880)

554

Decrease (increase) in notes and accounts receivable - trade

Purchase of property, plant and equipment

Cash dividends paid

Copyright (C) 2021 Freund Corp. All rights reserved.

14

Consolidated Earnings and Dividend Forecasts for FY2/22

Copyright(C) 2021 Freund Corp. All rights reserved.

Summary of Consolidated Forecasts
 Forecast sales growth due to more activities for capturing new orders and growth outside Japan
 Forecast profit to increase virtually (excluding one time items in FY2/20)(FY2/20 operating profit excluding COVID-19 related subsidy in U.S. was 920 million yen)

(Millions of yen)

FY2/21

FY2/22(Actual)(Forecast)

YoY change％

AmountNet sales

16,76518,500＋1,734＋10.3

Operating profit

1,147

1,100

(47)

(4.2)

Ordinary profit

1,344

1,130

(214)

(16.0)

995

790

(205)

(20.7)

Earnings per share (yen)

59.47

47.18

(12.29)(20.7)

Yen/dollar rate(+ is yen depreciation)

105.98105.00--Capital investment

637

-

-

-

Depreciation

414

-

-

-

R&D expenses

526

-

-

-

ProfitCopyright (C) 2021 Freund Corp. All rights reserved.

16

Summary of Segment Forecasts
 Machinery: Strengthen activities for capturing new orders and enhance global
coverage, including emerging countries, with a four-pole systemcomprising Japan, the U.S., Italy, and India
 Chemicals: Growth in sales of pharmaceutical excipients offsets a reactionary
decline in dietary supplements sales, which were up due to special
factors in the previous fiscal year
(Millions of yen)
FY2/21
AmountYoY change

FY2/22 (Forecast)Composition
ratio (%)

Composition
ratio (%)

AmountAmount

％16,765100.0

18,500100.0＋1,734＋10.3

Machinery Business Segment

11,171

66.6

13,10070.8＋1,928＋17.3

Chemicals Business Segment

5,593

33.4

5,400

29.2

(193)

(3.5)

1,147

100.0

1,100

100.0

(47)

(4.2)

Machinery Business Segment

1,084

94.5

-

-

-

-

Chemicals Business Segment

546

47.6

-

-

-

-

Adjustments(482)(42.1)----

105.98-105.00---Consolidated net sales

Segment profit

Yen/dollar rate(+ is yen depreciation)

Copyright (C) 2021 Freund Corp. All rights reserved.

17

Summary of Dividend Forecasts
 FY2/21, dividend forecast: 20 yen per share (unchanged from FY2/20)
 FY2/22 dividend forecast: 20 yen per share

Consolidated dividend pauout ratio

100.0%

90.0%
80.0%

87.8%

70.0%
60.0%
50.0%

37.2%

40.0%
30.0%

21.2%

22.5%

27.4%

42.4%

39.9%

33.6%

32.4%
23.3%

22.4%

20.0%
10.0%
FY2/12

FY2/13

FY2/14

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19FY2/20FY2/21

FY2/22(Forecast)Profit (\ million)

608

765

787

695

961

1,064

1,477

843

381

995

790

Dividend per share (yen)

7.5

10.0

12.5

15.0

12.5

20.0

20.0

20.0

20.0

20.0

20.0

9,200

9,200

9,200

9,200

9,200

18,40018,40018,40018,40018,40018,400

Number of shares outstanding(Thousand shares)

Note: 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 beenadjusted to reflect the stock split.

Copyright (C) 2021 Freund Corp. All rights reserved.

18

8th Medium-term Management Plan

Copyright(C) 2021 Freund Corp. All rights reserved.

Goals of the 8th Medium-term Management Plan vs. Performance and Forecasts
 Actual sales in FY2/21 were 16.765 billion yen, about 6% lower than the consolidated sales
target of 17.8 billion yen forecast for this fiscal year in the 8th Medium-term Management
Plan. Sales of machinery exceeded the plan in Japan and Asia, but sales of chemical products(excipients, preservatives) in Japan and overseas sales of machinery (excluding Asia) fell shortof plan targets.
 Compared to the consolidated operating profit target of 1 billion yen, the actual result was
1.147 billion yen, 15% higher than the target. The main factors were lower operating expenses
due to the global spread of COVID-19, and COVID-19 related subsidy in U.S.

Net sales(Millions of yen)
25,00020,000(Millions of yen)

Achievement ratio：-5.8％

17,80016,76518,5002,000
20,140Operating profit

Achievement ratio：+14.7％

1,460

1,500

15,000

1,000

1,147

1,100

ActualForecast

Plan

FY2/22

FY2/231,000
10,000

500

5,000

0

0
Forecast

Actual

FY2/21

Forecast

Plan

FY2/22

FY2/23

Forecast

FY2/21

Copyright(C) 2021 Freund Corp. All rights reserved.

20

8th Medium-term Management Plan – First Year Accomplishments and Outlook
 In the Medium-term Management Plan, we had aimed for consolidated sales of
19.05 billion yen and consolidated operating profit of 1.22 billion yen for FY2/22.
However, due to uncertainty over the timing of a return to normality after the
pandemic, we have revised these targets downward to 18.5 billion yen and 1.1
billion yen, respectively. In addition to the contribution from the sales of the Italiansubsidiary, which we did not anticipate at the time of the formulation of theMedium-term Management Plan, we also expect a recovery in profit from ourdomestic chemical products business.
 To achieve consolidated sales of 20.14 billion yen and consolidated operating profitof 1.46 billion yen in FY2/23, the final year of the medium-term management plan,
we need to increase sales by 9% and operating profit by 33% YoY, respectively. We
believe that these targets can be achieved by increasing sales of machinery andexcipients through our research center in China, which is scheduled to open in the
FY2/22, in addition to increasing sales of machinery by implementing joint sales
promotions by our subsidiaries in the U.S. and Italy.

Copyright(C) 2018 Freund Corp. All rights reserved.

21

8th Medium-term Management Plan
Corporate
Philosophy

Develop the Future through Creativity

Management
VisionFreund Group will contribute to better medical care and health for people worldwide and creating andutilizing technologies for fulfilling lives and food safety

Values which the FREUND
Group holds precious

Create special forms of value
Aim to be the leader in all of
the group’s business sectors

Core Strategy

Create a structure for business operations that canuse technologies to meet the true needs ofcustomers and achieve consistent growth in earnings
Seven Goals
1. Group solidarity

Always use the customer’s
perspective

2. Always use the customer’s perspective

Be a company like no otherfor customers and society

3. Constant innovation
4. Global management
5. Strategy for growth

Networking
Solidify the group to create a
unified organization

6. Business process and working-style reform
7. A firm commitment to compliance and governance

Copyright (C) 2021 Freund Corp. All rights reserved.

22

8th Medium-term Management Plan: Seven Goals
1. Group solidarity
Make all three group companies a unified organization and use this cohesiveness for collaboration for sales andR&D in order to achieve consolidated performance targets.

2. Always use the customer’s perspective
Supply products with outstanding quality in every respect along with prices and speed that meet customers’
expectations.

3. Constant innovation
Channel substantial resources to creating new products, as an organization specializing in developing
technologies and other ideas, and rigorously manage progress concerning development plans.

4. Global management
While capturing market share in Japan, operations of all group companies must reflect the shift of customers’
activities to other countries and the growing importance of quality in overseas markets.

5. Strategy for growth
Use M&A, business alliances and other activities to create businesses that can be the foundation of the next
medium-term management plan and step up measures to achieve non-organic growth in existing businesses.

6. Business process and working-style reform
Eliminate inefficient tasks and jobs and become a highly efficient organization with pleasant and productive
workplaces.

7. A firm commitment to compliance and governanceImprove production and quality management structure, upgrade internal controls, and take other actions todevelop the sound operation of businesses in order to earn the trust of customers and society.
Copyright (C) 2021 Freund Corp. All rights reserved.

23

Acquisition of Cos.Mec S.r.l. in Italy (Make This Company a Wholly Owned Subsidiary)

On November 5, 2020, Freund acquired a 100% stake in the Italian mid-sized machine manufacturer Cos.Mec S.r.l. fromits former owner and made it a wholly owned subsidiary. Founded in 1991, Cos.Mec is a medium-sized pharmaceuticalmachinery manufacturer with about 50 employees. The company's strengths are that it manufactures both processequipment, such as granulating machinery, and peripheral equipment, such as powder handling systems in-house. This
enables the subsidiary to provide one-stop solution to meet the needs of customers for new factories and plant
expansions. In addition, the subsidiary has extensive customer relationship with pharmaceuticals companies inemerging countries.



As Cos.Mec has products and customer bases that Freund-Vector does not have, we expect to achieve synergies with
Freund-Vector and Freund Corporation, and strengthen our global machinery sales.

Cos.Mec exterior view
Copyright (C) 2021 Freund Corp. All rights reserved.

24

Establishment of Freund-Chineway Pharmaceutical Technology CenterFreund is scheduled to open a laboratory for customer testing of our machinery and excipients in Shanghai,
China in FY2/22.

The need for the use of new machinery at Chinese pharmaceutical companies is already increasing and asimilar trend is also evident in excipients. By using its strength as a company that manufactures bothmachinery and excipients, Freund will open a research center in Shanghai that will test machinery andexcipients to show customers the outstanding performance of these products.

Plans for this center also include the addition at some point of thedevelopment of designs for pharmaceutical formulation and theprovision of these designs to pharmaceutical companies in China.
■Name
Freund-Chineway Pharmaceutical Technology Center Co., Ltd.
■Location
Shanghai, China

FC Center exterior view
Copyright (C) 2021 Freund Corp. All rights reserved.

25

(Supplementary Materials)
・ Company Overview
・ Segment Information

Copyright(C) 2021 Freund Corp. All rights reserved.

Company Overview● Company name：Freund Corporation● Established：

April 1964

● Representative：

Iwao Fusejima, President & CEO● Location：

6-25-13 Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan● Paid-in capital： 1,035,600,000 yen (As of February 28, 2021)● Sales： 16,700 million yen (Fiscal year ended February 2021, consolidated)● Number of employees： 484 (As of February 28, 2021, consolidated)● Business： Machinery business- Manufacturing and sales of granulationand coating equipment and others
Chemicals business- Manufacturing and sales of pharmaceutical
excipients, food preservatives, and others● Group companies： Freund-Vector Corporation, Freund-Turbo Corporation,
Cos.Mec s.r.l., Parle Freund Machinery Private Limited

Copyright (C) 2021 Freund Corp. All rights reserved.

27

The Freund Group and R&D Facilities

Using innovative technologies
for rapid growth outside Japan
FreundCorporation
Freund-Turbo
Corporation
Yokosuka, Kanagawa

Tokyo, Osaka, Shizuoka, Aichi

Cos.Mec s.r.l.

Freund-Vector
Corporation
Iowa, USA

Milan, Italy

Research and Development
Laboratory(Hamamatsu, Shizuoka)

Domestic
users

Marion Laboratory (Iowa, USA)

Sales of machineryand chemical products

Sales of machineryand chemical products

Parle Freund (India)

Overseas
users

Milan Laboratory (Milan, Italy)
Copyright (C) 2021 Freund Corp. All rights reserved.

28

Our “Pen” (Machinery) and “Ink” (Chemicals) Business Model

1. Machinery Business Segment

Pen Manufacturing and sales of granulation and coating
equipment for the pharmaceutical, food, and fine chemicalindustries.
 For coating equipment, Freund ranks first in Japan and sales
growth is accelerating in Asian market and in FreundVector’s US and European operations. No other company inthe world has expertise in both drug formulation
technologies and the associated machinery.
 Aiming to increase sales of machinery for industrial
applications too by combining granulating and coating
technologies with milling and sieving technologies.

2. Chemicals Business Segment






Composition of Net
Sales and Profit bySegment
Chemicals

33%
33%

FY2/21

Ink
Manufacturing and sales of pharmaceutical excipients, food67%
preservatives, nutritional supplements, and others.
Operating profit
Freund uses Good Manufacturing Practice (GMP) compliant
67%
equipment to produce pharmaceutical excipients.
Food preservatives made by Freund help ensure the safety
Net salesof food by maintaining the quality of many types of
Machinery
products.
By using its granulating and coating technologies, Freund¥16.76 billion
has worked with customers to develop and commercialize Consolidated sales:
Consolidated operating profit: ¥1.14 billion
nutritional supplements and seamless mini-capsules.
Copyright (C) 2021 Freund Corp. All rights reserved.

29

Freund Group’s Business Fields
 FREUND Group’s business fields based upon pharmaceutical products manufacturing processes
FREUND Group Business Fields
ActivePharmaceutical
Ingredients

Grinding/
Classifying

Blending/
Kneading

Granulating

Drying/
Grading

TabletingCoating

TabletPrinting

Packing

Using core competences in Machinery and Chemicals Divisions to provide unique products
Grinding/Classifying
Equipment

Granulating
Equipment

Coating Equipment

Printing Equipment

Fine Chemicals

Excipient

Coating Liquids

Ink

Domestic

Overseas （）

Strengthen Non-Pharmaceutical
Fortify
Product Field
Global Operations

Enter into
New Business Fields
Copyright (C) 2020 Freund Corp. All rights reserved.

30

The Freund Group Disclosure Policy
1. Basic disclosure policy
Freund positions the transparency of management as an important responsibility in order to be a company that can be a trusted
member of society. To maintain this transparency, we always disclose information about the company in a manner that is fair and timely
from the standpoint of all stakeholders.
2. Standard for disclosure
Freund discloses information in compliance with the Companies Act, Financial Instruments and Exchange Act, and other applicable laws
and regulations. Disclosure also complies with the timely disclosure rules of securities exchanges where the company’s stock is traded.
In addition, Freund discloses information that is not covered by these laws and regulations and exchange rules in cases where theinformation is believed to be necessary for investment decisions.
3. Disclosure methods
Freund discloses information by using the Timely Disclosure network (TDnet) of the Tokyo Stock Exchange. To ensure the timeliness andfairness of information announced using TDnet, this information is posted promptly on Freund’s website.
In addition, press releases and other information are promptly posted on Freund’s website and made available in other ways to ensuredisclosure fairness and speed. Furthermore, information in Japanese is supplied in English as much as possible to make information
available to a large number of stakeholders.
4. Prevention of insider trading
For the prevention of insider trading, Freund’s internal rules include provisions concerning basic items that must be observed regarding
the proper management of internal information, Freund stock transactions and other matters. There are also activities for ensuring that
Freund personnel understand insider trading restrictions and for overseeing stock and other transactions.
5. Silent period
To prevent leaks of information about earnings announcements, as well as to comply with laws and regulations and ensure the fairnessof these announcements, Freund has a “silent period” that begins on the day following the end of each fiscal year quarter and ends onthe day of the earnings announcement for that quarter. Freund will not reply to any questions concerning results of operations during
this period. However, in the event of the possibility that results of operations will differ significantly from the forecast, Freund may
disclose this information in accordance with timely disclosure rules.
6. Forward-looking statements
Information disclosed by Freund may contain information about the future other than sales and earnings forecasts, such as information
about strategies and business plans. This information is based on the decisions of management by using information that was available
at that time. As a result, actual performance may differ significantly from forward-looking statements due to changes in the economy
and market conditions and other reasons.
(Established on March 27, 2017)

Investor Relations Policy
Policy concerning constructive dialogues with shareholders and other investors
Freund has a strong commitment to conducting constructive dialogues with shareholders and other investors in order tocontribute to the company’s sustained growth and mid- to long-term growth in corporate value. By providing clear explanationsof management policies, business operations and the corporate culture, Freund aims to earn the understanding of shareholders
and other investors in order to continue to receive their support as “Freund fans.”
1. Investor relations framework – The Corporate Planning Division responsible for investor relations oversees dialogues withshareholders and other investors under the direct supervision of the company’s president. In addition, the president is
assisted by a director who is in charge of investor relations.
To support these dialogues, Freund departments involved with dialogues cooperate, such as by preparing and checking
disclosure materials and, as needed, sharing information, so that information is disclosed with fairness and speed.
2. Stakeholder dialogues – Freund holds information meetings about results of operations and other subjects following theend of the second quarter and fiscal year. Small meetings are held after the first and third quarters. Information provided atthese meetings is posted on Freund’s website. When a medium or long-term management plan is established, the company
provides a clear explanation of strategic goals and business plans. In addition, Freund frequently visits institutional investors
to explain its goals and performance. Freund also participates in investor forums held by securities companies, holds
information meetings for individual investors, and conducts other activities for stakeholder dialogues.
The FREUND Integrated Report and other IR documents are distributed to shareholders and posted on Freund’s website.
This publication contains business and financial information as well as about the company’s strengths that do not appear in
the financial statements. By providing more information about the Freund Group, this publication aims to help the public
understand the true corporate value of the group.

3. Feedback of shareholder/investor opinions – Opinions and other statements by shareholders and other investors at
dialogues are passed on to the president, directors and others and the information is shared as needed.
4. Management of insider information – There are no shareholder/investor dialogues during each silent period, which begins
on the day following the end of each fiscal year quarter and ends on the day of the earnings announcement for that quarter.
Freund handles insider information strictly in compliance with internal rules concerning the management of internal
information and restrictions on transactions by Freund personnel.

Inquiries:

Freund Corporation
Corporate Planning Division
Investor Relations and Public Relations OfficeTel: +81-3-6890-0767
Fax: +81-3-6890-0870
Email: ir@freund.co.jp

IR website: https: //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) 2021 Freund Corp. All rights reserved.

33