January 12, 2022

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2022
(Nine Months Ended November 30, 2021)
Company name:Securities code:
Representative:
Contact:[Japanese GAAP]
Listing: Tokyo (JASDAQ)
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, 2022
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, 2021 – November 30, 2021) of the
Fiscal Year Ending February 28, 2022
(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Million yen

Nine months ended Nov. 30, 2021
Nine months ended Nov. 30, 2020
Note: Comprehensive income

Million yen%

11,988
10.5
459
17.4
492
13.2
270
10,852(2.3)
391 320.4
435 290.9
277
Nine months ended Nov. 30, 2021:
516 million yen(up 221.9%)
Nine months ended Nov. 30, 2020:
160 million yen(-%)
Net income per share Diluted net income per share

(2.5)
634.0

Nine months ended Nov. 30, 2021
Nine months ended Nov. 30, 2020%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen

Yen

Yen

16.13
16.55

-

%

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen

Net assets per share%

Yen

838.51
As of Nov. 30, 2021
21,72814,04064.6
827.67
As of Feb. 28, 2021
20,575
13,85867.4
Reference: Equity capital
As of Nov. 30, 2021: 14,040 million yen
As of Feb. 28, 2021: 13,858 million yen
Note: The provisional accounting treatment for a business combination with Cos.Mec S.r.l. was finalized as of November 30,
2021 and figures as of February 28, 2021 reflect the finalized content of the provisional accounting treatment.

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

Year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2021
0.00
Fiscal year ending Feb. 28, 2022
0.00
Fiscal year ending Feb. 28, 2022 (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, 2022 (March 1, 2021 – February 28, 2022)
Net sales
Million yen

Operating profit%

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

Ordinary profit%

Million yen%

Yen

Full year
18,500 10.3
1,100
(1.0)
1,130 (13.6)
Note: Revision to the most recently announced consolidated forecast: None%

Million yen

790(18.6)

47.18

* 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: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 Nov. 30, 2021:

18,400,000 shares

As of Feb. 28, 2021:

18,400,000 shares

As of Feb. 28, 2021:

1,655,480 shares

2) Number of treasury shares at the end of the period
As of Nov. 30, 2021:

1,655,480 shares

3) Average number of shares outstanding during the period
Nine months ended Nov. 30, 2021:

16,744,520 shares

Nine months ended Nov. 30, 2020: 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 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 Third Quarter of FY2/22

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

Segment and Other Information

9

Business Combinations

11

3. Others

12

Orders and Sales

121Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
There was significant downward pressure on the Japanese economy mainly due to sluggish consumer spending
during the first nine months of the current fiscal year due to more declarations of states of emergency in 2021
because of the emergence of new variants of the virus that causes COVID-19. The economy has been recovering
as pandemic restrictions were eased along with progress with vaccinations. However, the outlook for the economy
remains uncertain because of new variants of the virus, shortages of semiconductors and other items, and otherreasons.
In other countries, economies are recovering as pandemic restrictions are eased as more people are vaccinated,
mainly in affluent countries. In some regions, there are signs of another increase in infections. In addition, there
are widespread logistics and supply chain disruptions. As a result, the outlook for the global economy is still
unclear.
In the pharmaceutical industry, which is the primary source of demand for Freund Group products, companies
need to deal with the challenges of the rising cost of R&D programs and heighten measures to hold down
healthcare expenditures. In Japan, drug prices will be affected as the national health insurance drug pricerevisions will be implemented annually instead of once every two years as in prior years. In the generic drug
market, the growth rate of sales is expected to decrease as the benefits of actions by the Japanese government toincrease the use of these drugs decline. There is a need to build a sound infrastructure for generic drugs becauseof problems that have occurred involving the quality and supply reliability of these drugs.
The Freund Group is taking many actions based on the Eighth Medium-term Management Plan covering thethree-year period ending February 2023. This plan is centered on the themes of customers, new products, a global
perspective and growth. In addition, the plan has the following seven goals.
1. Group collaboration
2. Putting clients’ views first
3. Emphasis on innovation
4. Global management
5. Execution of growth strategy
6. Promotion of business process reengineering and working style reforms
7. Emphasis on compliance and corporate governance
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 18,500 million yen
and an operating profit of 1,100 million yen.
Net sales increased 10.5% year-over-year to 11,988 million yen, operating profit increased 17.4% to 459 million
yen, ordinary profit increased 13.2% to 492 million yen, and profit attributable to owners of parent decreased
2.5% to 270 million yen.
In the first nine months of the previous fiscal year, U.S. subsidiary Freund-Vector Corporation received a
COVID-19 subsidy of about 200 million yen from the U.S. government, which increased operating profit,
ordinary profit and profit attributable to owners of parent. In the first nine months of the current fiscal year, theFreund Group was able to achieve year-on-year growth of operating profit and ordinary profit despite thecontribution to earnings of this one-time item one year earlier.
Results by business segment were as follows.
Machinery Business Segment
Granulating and coating equipment are the main products of this segment. In the first nine months, segment sales
for the entire Freund Group, including U.S. subsidiary Freund-Vector Corporation and Japanese subsidiary
Freund-Turbo Corporation, were higher than one year earlier despite delays in some shipments. The recent
2Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

consolidation of Italian subsidiary Cos.Mec S.r.l. also contributed to sales growth in the first nine months.
Operating profit decreased because of the inclusion in earnings one year earlier of a U.S. government COVID-19
subsidy paid to Freund-Vector Corporation.
As a result, net sales increased 19.6% year-over-year to 7,740 million yen and segment profit decreased 26.4% to262 million yen.
Chemicals Business Segment
Sales of pharmaceutical excipients increased despite the negative effects of quality and supply problems in thegeneric drug industry. Cost reduction measures resulted in higher operating profit.
As in the previous fiscal year, sales and earnings of food preservatives were impacted by sluggish sales ofconfectionery products at department stores and theme parks because of the pandemic. However, sales and theoperating profit were higher than one year earlier because of an increase in sales of confectionery products at
supermarkets and convenience stores.
Sales decreased significantly and operating profit was slightly lower for health food products manufactured forother companies because of the termination of orders from large customers.
As a result, net sales decreased 3.0% year-over-year to 4,248 million yen and segment profit increased 48.7% to602 million yen.
(2) Explanation of Financial Position
Total assets increased 1,153 million yen from the end of the previous fiscal year to 21,728 million yen at the endof the third quarter. This mainly reflected increases of 1,538 million yen in work in process and 348 million yen
in raw materials and supplies, while there was a decrease of 874 million yen in notes and accounts
receivable-trade.
Total liabilities increased 972 million yen from the end of the previous fiscal year to 7,688 million yen at the endof the third quarter. This mainly reflected an increase of 1,707 million yen in advances received, while there weredecreases of 212 million yen in electronically recorded obligations-operating, 151 million yen in income taxes
payable and 135 million yen in provision for bonuses.
Net assets increased 181 million yen from the end of the previous fiscal year to 14,040 million yen at the end of
the third quarter.
(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, 2022, whichwere disclosed in the Consolidated Financial Results for the Fiscal Year Ended February 28, 2021 dated April 13,
2021.

3

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY2/21(As of Feb. 28, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Securities
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
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Lease obligations
Retirement benefit liability
Asset retirement obligations
Provision for retirement benefits for directors (andother officers)
Other
Total non-current liabilities
Total liabilities

4(Thousands of yen)
Third quarter of FY2/22(As of Nov. 30, 2021)

4,498,482
4,659,895
210,221212,500
798,624
1,457,682
1,217,155
151,597
362,421(10,342)
13,558,237

4,606,053
3,785,264
436,560
764,2712,996,171
1,565,458
171,875
338,720(11,433)
14,652,943

2,015,990
1,159,307
1,559,328
4,734,626

1,997,915
1,141,346
1,474,582
4,613,844

658,901
24,138533,084
75,6591,291,783

658,324
34,337211,164
478,750
67,365
1,449,942

187,885
808,102(5,400)990,5887,016,998
20,575,235

218,023
799,362(5,400)1,011,985
7,075,772
21,728,715

1,754,454
1,212,083
55,793245,299
1,170,091
258,586

1,736,266
999,449
11,574
93,934
2,877,283
122,644

43,156

23,4081,077,963
5,817,429

964,392
6,828,953

394,370
280,598
46,472

376,162
287,041
46,55823,697

5,421

153,681
898,820
6,716,249

144,165
859,349
7,688,303

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

FY2/21(As of Feb. 28, 2021)(Thousands of yen)
Third quarter of FY2/22(As of Nov. 30, 2021)

Net assets
Shareholders’ equity
Share capital

1,035,600

1,035,600

Capital surplus

1,289,513

1,289,513

Retained earnings

12,600,004

12,535,263

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

Total shareholders’ equity

14,151,755

14,087,014

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

22,14931,118Foreign currency translation adjustment(330,648)(95,494)

Remeasurements of defined benefit plans

15,72917,773

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

5(292,769)(46,601)

13,858,986

14,040,412

20,575,235

21,728,715

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)(Thousands of yen)First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)

Net sales

10,852,320

11,988,176

Cost of sales

7,323,081

7,765,334

Gross profit

3,529,238

4,222,841

Selling, general and administrative expenses

3,138,004

3,763,605

391,234

459,235

Interest income

308

2,532

Dividend income

5,615

5,655

Technical support fee income

6,089

9,344

Compensation income

3,183

-

Insurance claim income
Foreign exchange gains

21,809

-

-

9,891

Other

14,232

14,215

Total non-operating income

51,23841,639Operating profit
Non-operating income

Non-operating expenses
Interest expenses

359

6,652

4,479

-

Other

2,190

1,399

Total non-operating expenses

7,029

8,052

435,443492,823

4,213

1,953

-

1,298

4,213

3,251

Foreign exchange losses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Impairment loss-

49,685

Loss on sales of non-current assets

7,546

795

Loss on retirement of non-current assets

12,472

4,557

Total extraordinary losses

20,01955,039Profit before income taxes

419,637

441,035

Income taxes

142,564

170,887

Profit277,072

270,148

Profit attributable to owners of parent

277,072

270,1486

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)(Thousands of yen)First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)

277,072

270,148

2,619

8,968

(118,515)

235,154

(785)

2,043

(116,682)

246,167

160,390

516,316

160,390

516,316

ProfitOther 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(Breakdown)Comprehensive income attributable to owners ofparent7

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22(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 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, used for accounting estimates that are in the supplementary information section of the Securities
Report for the previous fiscal year.

8Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

Segment and Other Information
Segment information
I First nine months of FY2/21 (Mar. 1, 2020 – Nov. 30, 2020)
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

6,472,383

4,379,937

10,852,320-

10,852,320

-

-

-

-

-

Total

6,472,383

4,379,937

10,852,320-

10,852,320

Segment profit
357,397
Notes: 1. Contents of adjustments are as follows.

404,946

762,344(371,110)

391,234

The negative adjustment of 371,110 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 statement ofincome.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Significant change in goodwill
At the time of the business combination with Cos.Mec S.r.l. on November 5, 2020, the amount of goodwill was
determined on a provisional basis as the allocation process of the acquisition cost was not completed. With
completion of the allocation process during the third quarter of FY2/22, Freund adjusted the amount of
goodwill in the Machinery Business segment that had been accounted for on a provisional basis.
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

913,2038,454,746
789,429
191,561
363,566
139,812
Notes: 1. Classification of net sales is based on the location of the client and categorized by country or region.

Total
10,852,320

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.

9Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

II 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 shown 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 statement ofincome.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Significant change in goodwill
At the time of the business combination with Cos.Mec S.r.l. on November 5, 2020, the amount of goodwill was
determined on a provisional basis as the allocation process of the acquisition cost was not completed. With
completion of the allocation process in the third quarter of FY2/22, Freund adjusted the amount of goodwill in
the Machinery Business segment that had been accounted for on a provisional basis.
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.

In the first three months of FY2/22, net sales included in “Other” in prior periods were reclassified into “Asia” and“Other” in association with revisions to administrative segments. For consistency with these changes, figures
presented in “3. Information by region (Net sales)” for the first nine months of FY2/21 have been revised.
As a result, “Other” of 1,053,015 thousand yen previously presented in information by region (net sales) for the firstnine months of FY2/21 is reclassified and divided into “Asia” of 913,203 thousand yen and “Other” of 139,812
thousand yen.

10Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

Business Combinations
Finalization of provisional accounting treatment for business combinations
A provisional accounting treatment was used at the end of the previous fiscal year for the Freund Group’s
acquisition of Cos.Mec S.r.l on November 5, 2020, and this treatment was finalized in the third quarter of thecurrent fiscal year.
Based on the finalization of this provisional accounting treatment, a material review has been reflected in the
allocated amount of the acquisition cost in the comparative information included in the quarterly consolidated
financial statements for the first nine months of the current fiscal year as follows.
Goodwill prior to this review includes an adjustment due to an additional payment associated with the finalizationof the acquisition payment with conditions that was recorded in the first quarter of the current fiscal year.
Revisions to allocations(Thousands of yen)

Goodwill (before adjustment)

1,131,631

Intangible assets (Customer-related assets(568,698)

Deferred tax liabilities
Total adjustments
Goodwill (after adjustment)
Goodwill amortization method and period:

136,487(432,210)
699,420
10 years using the straight-line method

Weighted average amortization period for the total amount allocated to intangible assets other than goodwill andmajor categories
Intangible assets (Customer-related assets

15 years

Intangible assets (Order backlog)

0.5 years

Total

13 years

11

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/22

3. Others
Orders and Sales(1) Orders received
Operating segment(Thousands of yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)

First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)

AmountAmountYear-on-year (%)

Year-on-year (%)

Machinery Business
9,084,141
126.0
10,612,323
116.8
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(Thousands of yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)

First nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)

AmountAmountYear-on-year (%)

Year-on-year (%)

Machinery Business
123.3
9,626,868
130.3
7,389,756
Notes: 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 FY2/21(Mar. 1, 2020 – Nov. 30, 2020)
AmountFirst nine months of FY2/22(Mar. 1, 2021 – Nov. 30, 2021)

Composition (%)

AmountComposition (%)

Machinery Business

6,472,383

59.6

7,740,139

64.6

Chemicals Business

4,379,937

40.4

4,248,036

35.4

Total
10,852,320
100.0
11,988,176
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 of readers
who prefer an English translation.

12