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

Results of Operations
for the First Quarter of the Fiscal YearEnding February 28, 2022
July 12, 2021

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

Consolidated Financial Summary for the First Quarter of FY2/22

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

Consolidated Financial Summary
Sales were higher than one year earlier on a non-consolidated basis and at Freund-Vector and FreundTurbo. Cos.Mec (acquired in Nov. 2020) contributed to sales growthAn operating profit vs. a loss one year earlier thanks to sales growth of almost 30% year-on-year.

In FY2/21 Q1, COVID-19 severely impacted the Latin American business of Freund-Vector, the chemicalmachinery business of Freund-Turbo and the food preservatives business in Japan; all these businesses are
currently recoveringDepreciation and R&D expenses were almost the same level as one year earlier(Millions of yen)

FY2/21

FY2/22

Q1

Q1

ActualActualYoY ChangeAmountFY2/22Forecasts%Net sales

3,076

3,957+880+28.6

18,500Operating profit(165)

195+361−

1,100Ordinary profit(154)

206+361−

1,130Profit(121)

148+270−

790

Earnings per share (yen)(9.44)

8.69+18.13−41.80

Depreciation

94

119+24+26.0−

R&D expenses

149

152

+2+1.6−

Dividend

−

−

−−

20.00

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

2

Machinery Business: Group Company Performance

Freund Corporation:

Higher earnings due to large projects in Japan; orders from customers in Asia decreased

Freund-Vector:

Strong sales and orders in Latin America and Europe

Freund-Turbo:

The chemical and battery machinery sectors are recovering; Q1 orders were about the same as
one year earlierCos.Mec:

Performance was below the plan due to a factor at the beginning of the year and the impact ofthe pandemic in emerging countries(Millions of yen)

Net sales
FREUND CORPORATION

FY2/21

FY2/22

Q1

Q1

AmountAmountYoY change
AmountFY2/22
Forecasts%

1,689

2,651+961+56.9

13,1001,363

1,645+281+20.6−

FREUND-VECTOR

296563+266+89.9−

FREUND-TURBO+165+113.6−

145311

Cos.Mec−

165−−−Operating profit(125)

112+238−−

FREUND CORPORATION

94190+96+102.1−

FREUND-VECTOR

(161)

(45)

+115−

−

FREUND-TURBO

(57)

(11)

+46−−−

(20)

−

−

−

3,268

3,132(136)

(4.2)

−

2,268

1,679(588)(25.9)−

FREUND-VECTOR

798

973+174+21.8−

FREUND-TURBO

201

251+49+24.8−

Cos.Mec
Orders received
FREUND CORPORATION

Cos.Mec
Order backlog
FREUND CORPORATION

−

228−

−

−6,295

7,175+880+14.0−

4,846

4,657(188)

(3.9)

−

FREUND-VECTOR

965

1,300+335+34.7−

FREUND-TURBO

483

489+6+1.3−

Cos.Mec−727−−−

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

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

 Overseas:

In the U.S. and Asia, where the largest and the second largest markets for thisbusiness, sales increased significantly compared to the previous fiscal year as theeffects of COVID are gradually declining
In Latin America, Brazil is recovering for the first time in several years
Sales increased in Europe in part because of the acquisition of Cos.Mec(Millions of yen)

FY2/21

FY2/22

Q1Q1AmountAmount

YoY changeAmountFY2/22
Forecasts%

Net sales

1,689

2,651+961+56.9

13,100Japan

1,354

1,684+330+24.4−

Overseas335

966+631+187.9−

USA

157

412+255+162.5−

Latin America

2899+71+247.5−

Europe2780+52+191.2

−

Asia

72

297+224+309.7−

Others4977+27+55.2−

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

4

Machinery Business: Quarterly Results
Net sales

Operating profit margin(Millions of yen)
5,00020.0%

Pharmaceutical Products
Operating profit margin

15.0%
4,000

10.0%

3,000
5.0%

0.0%

2,000(5.0)%
1,000(10.0)%

0Q1Q2Q3FY2/1 7Q4Q1Q2Q3FY2/18Q4Q1Q2Q3

FY2/19Q4Q1Q2Q3

FY2/20Q4Q1Q2Q3

FY2/21Q4Q1Q2(15.0)%

FY
2/22(20.0)%△ 1,000-

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

5

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

2,0000Q1Q2Q3

FY2/17Q4Q1Q2Q3

FY2/18Q4Q1Q2Q3

FY2/19Q4Q1Q2Q3

FY2/20Q4Q1Q2Q3

FY2/21Q4Q1Q2FY2/22

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

6

Chemicals Business: Overview
 Net Sales

Pharmaceutical excipients:

Sales were unchanged even though sales of some products
were postponed to the second quarter.
Food preservatives:
Year-on-year increase in sales due to a recovery inconfectionery sales at convenience stores and supermarkets
Dietary supplement products: Lower sales because high-volume customers are nolonger increasing their inventories of supplements
Export:Although there were many inquiries, sales declined
year on year Segment Profit:

Earnings of excipients and preservatives increased(Millions of yen)

Net sales

FY2/21

FY2/22

Q1

Q1

AmountAmountYoY change

AmountFY2/22
Forecasts
%

1,386
682

1,305
677(80)

(5.8)

(4)

(0.7)

Food Preservatives

421

528

+106+25.3

Dietary Supplement Products

281

99(182)(64.7)−−(Export sales)*15437(17)(32.1)−

Operating profit

77193+115+148.0−

Pharmaceutical Excipients

5,400−*1: Sales to India, South Korea, China, Taiwan, etc.
Copyright (C) 2021 Freund Corp. All rights reserved.

7

Chemicals Business: Quarterly Results (by Product Field)
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

00.0%
Q1

Q2

Q3

FY2/17

Q4

Q1Q2

Q3

FY2/18Q4Q1Q2

Q3

FY2/19Q4Q1Q2Q3

FY2/20Q4Q1Q2Q3

FY2/21Q4Q1Q2FY2/22

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

8Analysis of Change in Consolidated Operating Profit
 Higher gross profit because of sales growth was the most significant reason for the increase inoperating profit
 All items affecting gross profit were minor except the amortization of Cos.Mec goodwill andthe increase in sales commissions associated with exports of Freund-Vector and Cos.Mec(Millions of yen)

Gross profit
Personnel
expenses

R&D
expenses+8(2)

Traveling
expenses Depreciation Advertisingexpenses
(8)

(10)

(11)

Amortizationof goodwill(30)
Positive factors

Salescommission

(32)

+482

Other(37)195
Q1 FY2/21
Operatingprofit
Q1 FY2/22
Operatingprofit(165)-Copyright (C) 2021 Freund Corp. All rights reserved.

9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.

10