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 Half of the Fiscal Year Ending
February 28, 2021
October 21, 2020

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

Table of Contents
 Consolidated Financial Summary for 1H of FY2/21

・・・

 Consolidated Earnings and Dividend Forecasts for FY2/21

・・・ P.15

 Medium-term Management Plan

・・・

P.19

Supplementary Materials

・・・

P.23

Fact Sheet

・・・ Appendix

P.02

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

1

Consolidated Financial Summary for 1H of FY2/21

Copyright(C) 2019 Freund Corp. All rights reserved.

Consolidated Financial Summary
 Consolidated sales: up 3.3% YoY
 Consolidated operating profit: increased 247 million yen YoY
 Machinery orders: up 26.3% YoY
 Capital investments and R&D expenses: down YoY(Millions of yen)

Net sales

FY2/20 1H

FY2/21 1H

ActualActualYoY change％

Amount

6,817

7,043

＋226

+3.3%

Operating profit

3

251

＋247

-

Ordinary profit

6

271

＋265

-

Profit

(7)

183

＋191

-

Earnings per share (yen)(0.46)

10.98＋11.44-

Machinery Orders received

5,311

6,705

＋1,394+26.3%

Machinery Order backlog

6,846

7,330

＋483

+7.1%

Capital investment

453

171

(281)

(62.2)%

Depreciation

177

196

＋19

＋10.8%

R&D expenses

408

267

(140)

(34.5)%

ROA(0.0)%

1.0%

-

-

ROE

(0.1)%

1.4%--

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

3

Machinery Business: Overview
 Sales by Product Field

Pharmaceutical products:

Generic drug manufacturers’ demand for equipment remains unclear now thatJapan has achieved the goal of a generic drug share of 80%; sales increased 3%
because FY2/20 1H sales were weak and 2H sales were strong.

Industrial products:

Up 10.0% as a strong 2Q outweighed slow 1Q sales

 Orders received by Product Field

Pharmaceutical products:

Up 34.2% 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 1H
AmountFY2/21 1H

YoY change (%)

AmountYoY change (%)

3,964(35.5)

4,125

+4.1

3,342

(35.3)

3,441

+3.0

621

(36.7)

683+10.0

Operating profit(119)(141.2)255-

Orders received

5,311(18.5)

6,705

+26.3

4,368

(20.8)

5,863

+34.2

942

(6.1)

842

(10.6)

6,846

+9.8

7,330

+7.1

6,067

＋13.3

6,578

+8.4

779

(11.4)

752

(3.5)

109.2

-0.1 yen/dollar

107.2-2.0 yen/dollar

Net 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.

4

Machinery Business: Group Company Performance Freund Corporation:

Sales in Japan were mostly as planned despite delays in some export sales Freund-Vector:

Sales down because of COVID-19 and rainstorm damage, but earnings
increased due to a U.S. government COVID-19 relief payment of about $2.1 million

 Freund-Turbo:

Sales rebounded in the 2Q but orders continued to decline(Millions of yen)
FY2/21 1H

FY2/20 1H
YoY change (%)

AmountNet sales

YoY change (%)

Amount3,964(35.5)

4,125

+4.1

FREUND CORPORATION *2,411(43.4)

2,838

+17.7

FREUND-VECTOR *

1,212

(7.0)

1,018

(16.0)

FREUND-TURBO *525(35.7)

629

+19.8

(119)

(141.2)

255

-

94

(80.2)

228-

FREUND-VECTOR

(144)

+5.5

30

-

FREUND-TURBO

(69)

+41.6

(3)

-

5,311

(18.5)

6,705

+26.3

FREUND CORPORATION

2,828(21.3)

4,156

+47.0

FREUND-VECTOR

1,758(19.7)

2,019

+14.8

FREUND-TURBO

724

(1.7)

529

(26.9)

6,846

+9.8

7,330

+7.1

FREUND CORPORATION

4,427

+27.8

5,228

+18.1

FREUND-VECTOR

1,791(16.6)

1,685

(5.9)

627

+0.8

415

(33.7)

Operating profit
FREUND CORPORATION

Orders received

Order backlog

FREUND-TURBO
Note: Before consolidation adjustments

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

5

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

Sales decreased in Brazil and the U.S. because of COVID-19

 Europe and Africa:

Sales decreased slightly YoY

 Middle East, Asia and Pacific:

Higher sales involving China and Middle East

(Millions of yen)

FY2/20 1H
AmountFY2/21 1H

YoY change (%)

AmountYoY change (%)

Net sales

3,964(35.5)%

4,125

+4.1%

Japan

2,557

(41.2)%

2,989+16.9%

Overseas

1,407(21.5)%

1,136(19.3)%

1,005(0.2)%

553(45.0)%

Europe and Africa

150

+6.2%

139

(7.4)%

Middle East, Asia and Pacific251(61.0)%

443+76.8%

North and South Americas

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

6

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

Operating profit margin(Millions of yen)
5,000

20.0%
Pharmaceutical Products

Industrial Products
Operating profit margin

15.0%

4,000

10.0%

3,000
5.0%

2,000

0.0%

(5.0)%
1,000(10.0)%

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

FY2/20Q4

Q1

Q2(15.0)%

FY2/21(1,000)(20.0)%

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

7

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

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

FY2/20Q4

Q1Q2

FY2/21

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

8

Chemicals Business: Overview
 Net Sales

Pharmaceutical excipients: Small decrease as some deliveries were postponed to 3Q



Food preservatives:

Sales decreased as COVID-19 impacted confectionery sales

Dietary supplements:

Big increase in sales as customers increased inventories ofsupplements



Export:Increased due to the expansion of overseas sales activities Segment ProfitDown because of higher sales of products with low profit margins(Millions of yen)

FY2/20 1H
AmountNet sales

FY2/21 1H

YoY change (%)

AmountYoY change (%)

2,852

(4.0)

2,917

+2.3

1,442
1,039

(10.1)

1,409
863

(2.3)

+28.9

(Export sales)*1

370
80

Operating profit

382

Pharmaceutical Excipients
Food Preservatives
Dietary Supplement Products(3.7)(16.9)＋73.8(65.4)

644
104(31.3)

228(40.2)+29.5*1: Sales to India, South Korea, China and Taiwan, etc.
Copyright (C) 2020 Freund Corp. All rights reserved.

9

Chemicals Business: Quarterly Results (by Product Field)
 Solid sales growth of pharmaceutical excipients
 Food preservative sales decreased as COVID-19 impacted confectionery demand Strong growth as customers increased inventories of dietary supplements
Net sales

Operating profit margin(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

FY2/20Q4

Q1Q2

FY2/21

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

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

FY2/20 1H
AmountNet sales

FY2/21 1H

Composition
ratio

AmountYoY change

Composition
ratio

Amount％6,817

100.0%

7,043

100.0%

＋226

+3.3%

4,400

64.6%

4,779

67.9%

＋379

+8.6%

2,416

35.4%

2,263

32.1%

(152)

(6.3)%

2,413

35.4%

2,012

28.6%

(400)

(16.6)%

Operation profit

3

0.0%

251

3.6%

＋247

-

Non-operating income andexpenses

2

0.0%

20

0.3%

＋17

-

Ordinary profit

6

0.1%

271

3.9%

＋265

-

11

0.2%

(4)

(0.1)%

(16)

-

17

0.3%

266

3.8%

＋249

-

(7)

(0.1)%

183

2.6%

＋191

-

Cost of sales
Gross profit
SG&A expenses

Extraordinary income andlossesProfit before income taxes
ProfitCopyright (C) 2020 Freund Corp. All rights reserved.

11

Change in Consolidated Operating Profit
 Operating profit increased because cost reductions more than offset the decrease in
the gross profit
 Freund-Vector earnings benefited from a U.S. government COVID-19 relief payment(Millions of yen)

Personnel
R&D
expenses expenses

＋147

＋140

Positive factors

251

Traveling Advertisingexpenses expenses＋67
3

Decrease ingross profit

1H FY2/20
Operatingprofit＋63

Sales
commissions＋16

Operations
consignment
expenses
Other Depreciation

(7)

(7)

(19)

1H FY2/21
Operatingprofit(152)

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

12Summary of Consolidated Balance Sheet(Millions of yen)

FY2/20-End
Current assets

FY2/21-1H

YoY change
Amount13,193

12,325(868)

Cash and depodits

4,314

4,743

+429

Accounts receivable

5,431

4,193

(1,237)

Inventories

3,051

3,056

＋5

Non-current assets

5,311

5,200

(111)

4,209

4,094

(115)

96

90

(5)

1006

1,015

＋9

Total assets

18,505

17,525(979)

Current liabilities

5,023

4,281

(742)

Accounts payable

3,121

1,866

(1,255)

Advances received

775

1,286

＋511

237

246

+9

165

161

(3)

Total liabilities

5,261

4,528

(733)

Total net assets

13,243

12,997(246)

Property, plant and equipment
Intangible assets
Investments and other assets

Non-current liabilities
Retirement benefit liability

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

13

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

FY2/20 1H

FY2/21 1H

289

977

Profit before income taxes

17

266

Depreciation

177

196

Decrease (increase) in notes and accounts receivable - trade

513

1,211

(1,028)(50)

Increase (decrease) in advances received

783

529

Increase (decrease) in notes and accounts payable - trade170(1,192)

Income taxes paid

(132)

(46)

(414)

(171)

(440)

(206)

Cash flows from financing activities

(359)

(366)

Repayments of lease obligations

(1)

(1)

(25)

-

(332)

(333)

Net increase (decrease) in cash and cash equivalents

(503)

429

Cash and cash equivalents at end of period

5,030

4,743

Free cash flow

(124)

805

Cash flows from operating activities

Decrease (increase) in inventories

Cash flows from investing activities
Purchase of property, plant and equipment

Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Cash dividends paid

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

14

Consolidated Earnings and Dividend Forecasts for FY2/21

Copyright(C) 2019 Freund Corp. All rights reserved.

Summary of Consolidated Forecasts
 Forecast sales growth due to more activities for capturing new orders
 Forecast big increases in earnings because of measures to reduce the cost of sales,
SG&A expenses and other expenses
 As a result, the goal is sales and earnings that are consistent with the initial guidance
for FY2/21(Millions of yen)

Net sales

FY2/20FY2/21(Actual)(Forecast)

YoY change％

Amount16,772

17,800＋1,027＋6.1

Operating profit

558

1,000

＋441

＋79.1

Ordinary profit

582

1,000

＋417

＋71.6

Profit

381

700

＋318

＋83.5

Earnings per share (yen)

22.79

41.80

＋19.01＋83.4

Yen/dollar rate(+ is yen depreciation)

109.03105.00--Capital investment

951

-

-

-

Depreciation

386

-

-

-

R&D expenses

725

-

-

-

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

16

Summary of Segment Forecasts
 Machinery: Goals are improving accuracy for new orders, expanding themaintenance business and increasing overseas sales
 Chemicals: Goals are increasing sales of pharmaceutical excipients in Japan andreceiving new orders involving other countries(Millions of yen)

FY2/20
AmountYoY change

FY2/21 (Forecast)Composition
ratio (%)

Composition
ratio (%)

AmountAmount％16,772100.0

17,800100.0＋1,027＋6.1

Machinery Business Segment

11,11866.3

12,000

67.4

＋881

＋7.9

Chemicals Business Segment

5,654

33.7

5,800

32.6

＋145

＋2.6

558

100.0

1,000

100.0

＋441

＋79.1

Machinery Business Segment

311

55.7

-

-

-

-

Chemicals Business Segment

781

140.0

-

-

-

-

Adjustments(534)(95.7)----

109.03-105.00---Consolidated net sales

Segment profit

Yen/dollar rate(+ is yen depreciation)

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

17

Summary of Dividend Forecasts

Dividend forecast and payout ratio for FY2/21 have not been determined at this time

Consolidated dividend pauout ratio

100.0%

87.8%

90.0%
80.0%
70.0%
60.0%
50.0%

39.9%

37.2%

40.0%
30.0%

20.9%

22.9%

25.0%

21.2%

22.5%

27.4%

23.3%

22.4%
32.4%

20.0%
10.0%
FY2/09FY2/10FY2/11

FY2/12

FY2/13

FY2/14

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19FY2/20FY2/21(Forecast)Profit (\ million)

619

563

516

608

765

787

695

961

1,064

1,477

843

700

-

Dividend per share (yen)

7.5

7.5

7.5

7.5

10.0

12.5

15.0

12.5

20.0

20.0

20.0

20.0

-

4,600

9,200

9,200

9,200

9,200

9,200

9,200

9,200

18,40018,40018,40018,400-

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) 2020 Freund Corp. All rights reserved.

18

8th Medium-term Management Plan

Copyright(C) 2019 Freund Corp. All rights reserved.

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) 2020 Freund Corp. All rights reserved.

20

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) 2020 Freund Corp. All rights reserved.

21

8th Medium-term Management Plan: Numerical Targets
Net sales Unified business operations withsubsidiaries

Operating profit(Millions of yen)

CAGR:6.3%

20,14016,772

 Increase customer satisfaction from thestandpoint of users

1,460

CAGR:37.8%

 Create innovative products558

 Achieve growth on a global scale

FY2/20FY2/23

Actual for the first year

Plan for the last year

(Millions of yen)

FY2/21
Net sales

FY2/22

FY2/2317,80019,05020,140

FREUND CORPORATION

12,68013,24014,070

FREUND-VECTOR

4,040

4,560

4,720

FREUND-TURBO

1,800

1,900

2,000

1,000

1,220

1,460

FREUND CORPORATION

850

900

1,050

FREUND-VECTOR

70

150

220

FREUND-TURBO

100

130

160

Operating profit

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

22

(Supplementary Materials)
・ Company Overview
・ Segment Information

Copyright(C) 2020 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 August 31, 2020)● Sales：

16,700 million yen (Fiscal year ended February 2020, consolidated)● Number of employees：

384 (As of August 31, 2020, consolidated)● Business：

Machinery business- Manufacturing and sales of
granulation and coating equipment and others
Chemicals business- Manufacturing and sales ofpharmaceutical excipients, food preservatives, and others● Group companies：

Freund-Vector Corporation,
Freund-Turbo Corporation,
Parle Freund Machinery Private Limited

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

24

The Freund Group and R&D Facilities

FreundCorporation
Freund-Turbo
Corporation
Yokosuka, Kanagawa

Freund-Vector
Corporation

Using innovativetechnologies for
rapid growthoutside Japan

Research and Development
Laboratory(Hamamatsu, Shizuoka)

Domestic users

Iowa, USA

Marion Laboratory (Iowa, USA)

Overseas users

Sales of machineryand chemical products
Parle Freund (India)

Milan Laboratory (Milan, Italy)

Sales of machineryand chemical products

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

25

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

34%
28%
72%

FY2/20

Ink
Manufacturing and sales of pharmaceutical excipients, foodpreservatives, nutritional supplements, and others.
Operating profit
Freund uses Good Manufacturing Practice (GMP) compliant
66%
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¥16.77 billion
has worked with customers to develop and commercialize Consolidated sales:
Consolidated operating profit: ¥0.55 billion
nutritional supplements and seamless mini-capsules.
Copyright (C) 2020 Freund Corp. All rights reserved.

26

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.

27

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
The Freund Board of Directors approved the following policy for investor relations activities on March 27, 2017.

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 – Activities involving dialogues are supervised by the Chief Financial Officer, who is a director,
and conducted by the Corporate Planning Department, which is responsible for 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 Department
Corporate Planning Division /Accounting 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.

30