October 7, 2021

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending February 28, 2022
(Six Months Ended August 31, 2021)[Japanese GAAP]
Listing: Tokyo (JASDAQ)
Freund Corporation
6312
URL: https://www.freund.co.jp
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:
October 7, 2021
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (Only video distribution)
Company name:Securities code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter (March 1, 2021 – August 31, 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

Six months ended Aug. 31, 2021
Six months ended Aug. 31, 2020
Note: Comprehensive income

Million yen

%

8,048
14.3
329
31.2
350
29.1
226
7,043
3.3
251
271
183
Six months ended Aug. 31, 2021:
394 million yen(up 347.3%)
Six months ended Aug. 31, 2020:
88 million yen(-%)
Net income per share Diluted net income per share

23.2-

Six months ended Aug. 31, 2021
Six months ended Aug. 31, 2020%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen

Yen

Yen

13.52
10.98

-

%

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of Aug. 31, 2021
As of Feb. 28, 2021
Reference: Equity capital

Equity ratio

Million yen

20,206
13,944
20,49913,884As of Aug. 31, 2021: 13,944 million yen

Net assets per share
%

Yen

69.0
832.78829.21
67.7
As of Feb. 28, 2021: 13,884 million yen

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)
Profit attributable to
Net income perowners of parent
share

Ordinary profit%

Million yen%

Yen

Full year
18,500 10.3
1,100
(4.2)
1,130 (16.0)
Note: Revision to the most recently announced consolidated forecast: None%

Million yen

790(20.7)

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: None
Note: Please refer to page 10 “(4) 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 Aug. 31, 2021:

18,400,000 shares

As of Feb. 28, 2021:

18,400,000 shares

As of Feb. 28, 2021:

1,655,480 shares

Six months ended Aug. 31, 2020:

16,744,520 shares

2) Number of treasury shares at the end of the period
As of Aug. 31, 2021:

1,655,480 shares

3) Average number of shares outstanding during the period
Six months ended Aug. 31, 2021:

16,744,520 sharesThis financial report is not subject to quarterly review by certified public accountants or auditing firms.
Cautionary statement with respect to forecasts of future performance and ot her 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 Second 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) Quarterly Consolidated Statement of Cash Flows

8(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

10Additional Information

10

Segment and Other Information

11

3. Others

13

Orders and Sales

131Freund Corporation (6312) Financial Results for the Second 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 half of the current fiscal year as the state of emergency was extended in response to the spread of
the highly contagious delta variant of the COVID-19 virus. Corporate earnings in Japan were strong in the
manufacturing sector but weak in the service sector primarily because of the low level of consumer spending onservices.
The economies of most affluent countries in the world are recovering along with the easing of restrictions on
activities as more people receive vaccinations. On the other hand, delays in vaccinations and limited health carecapacity are delaying economic recoveries in emerging countries except China.
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 in prior years. In the generic drug market,
the growth rates in sales of these drugs are expected to decrease as the benefits of actions by the Japanese
government to increase the use of these drugs decline. Following problems that occurred in 2020 involving thequality of generic drugs and the reliability of the supply of these drugs, manufacturers need to take actions toreinforce their quality assurance and supply capabilities.
The fiscal year ended in February 2021 was the first year of the Freund Group’s Eighth Medium-termManagement Plan covering the three-year period ending February 2023. This plan is centered on the themes ofcustomers, new products, a global perspective and growth. In addition , the plan has the following seven goals.
1. Group solidarity and collaboration
2. Putting clients’ views first
3. Make innovation a priority
4. Global management of the Freund Group
5. Progress based on a strategy for growth
6. Business process and working style reforms
7. Make compliance/governance a priority
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 Grou p 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.
In the first half of the current fiscal year, net sales increased 14.3% year-over-year to 8,048 million yen, operating
profit increased 31.2% to 329 million yen, ordinary profit increased 29.1% to 350 million yen, and profit
attributable to owners of parent increased 23.2% to 226 million yen.
In the first half 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 andprofit attributable to owners of parent. The Freund Group was able to achieve year-on-year growth of earnings
despite the contribution 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 half, segment sales for theentire 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 export shipments. The r ecent consolidationof Italian subsidiary Cos.Mec S.r.l. also contributed to first half growth of sales. Operating profit decreased
because of the inclusion in earnings one year earlier of a U.S. government COVID-19 subsidy paid to2

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

Freund-Vector Corporation.
As a result, net sales increased 30.1% year-over-year to 5,366 million yen and segment profit decreased 4.0% to
245 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 8.1% year-over-year to 2,682 million yen and segment profit increased 45.2% to331 million yen.
(2) Explanation of Financial Position
Total assets decreased 293 million yen from the end of the previous fiscal year to 20,206 million yen at the end of
the second quarter. This mainly reflected decreases of 833 million yen in notes and accounts receivable-trade and239 million yen in cash and deposits, while there were increases of 647 million yen in work in process and 101
million yen in raw materials and supplies.
Total liabilities decreased 352 million yen from the end of the previous fiscal year to 6,262 million yen at the endof the second quarter. This mainly reflected decreases of 502 million yen in electronically recorded
obligations-operating, 323 million yen in notes and accounts payable-trade and 190 million yen in other current
liabilities, while there was an increase of 841 million yen in advances received.
Net assets increased 59 million yen from the end of the previous fiscal year to 13,944 million yen at the end of thesecond quarter. This mainly reflected an increase of 147 million yen in foreign currency translation adjustment,
while there was a decrease of 108 million yen in retained earnings.
(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 2 8, 2021 dated April 13,
2021.

3

Freund Corporation (6312) Financial Results for the Second 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
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)
Second quarter of FY2/22(As of Aug. 31, 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

4,258,813
3,826,816
250,280
219,800
785,490
2,105,277
1,318,769
157,035
293,412(11,545)
13,204,150

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

2,011,256
1,140,630
1,538,327
4,690,213

1,089,741
24,13875,6591,189,539

1,109,226
20,655
138,890
1,268,772

214,482
808,102(5,400)1,017,185
6,941,351
20,499,588

228,985
819,832(5,400)1,043,418
7,002,404
20,206,554

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

1,430,992
709,824
13,638179,139
2,011,230
213,563

43,156

18,571

1,077,963
5,817,429

887,080
5,464,041

394,370
280,598
46,472

390,141
284,946
46,53023,697

4,342

52,338797,476
6,614,905

72,006
797,968
6,262,009

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

FY2/21(As of Feb. 28, 2021)
Net assets
Shareholders’ equity
Share capital
Capital surplus(Thousands of yen)
Second quarter of FY2/22(As of Aug. 31, 2021)

1,035,600

1,035,600

1,289,513

1,289,513

Retained earnings
Treasury shares

12,625,221(773,363)

12,516,755(773,363)

Total shareholders’ equity

14,176,972

14,068,506

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

22,14941,841

Foreign currency translation adjustment(330,168)(182,894)

Remeasurements of defined benefit plans

15,72917,092

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

5(292,289)(123,960)

13,884,682

13,944,545

20,499,588

20,206,554

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/22(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)
7,043,727(Thousands of yen)First six months of FY2/22(Mar. 1, 2021 – Aug. 31, 2021)
8,048,226

Cost of sales

4,779,948

5,243,813

Gross profit

2,263,779

2,804,413

Selling, general and administrative expenses

2,012,694

2,475,023

251,084

329,389

Interest income

292

2,621

Dividend income

5,615

5,655

Technical support fee income

4,039

5,469

Compensation income
Foreign exchange gains

3,183

-

-

1,151

Other

12,79011,975

Total non-operating income

25,92026,873279

4,867

Net sales

Operating profit
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses

4,496

-

927

1,259

5,704

6,127

271,301

350,135

4,237

1,617

-

1,298

4,237

2,915

Loss on sales of non-current assets

4,697

795

Loss on retirement of non-current assets

4,534

4,532

Total extraordinary losses

9,231

5,328

266,307347,722

Income taxes

82,469121,298

Profit183,837

226,424

Profit attributable to owners of parent

183,837

226,424

Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses

Profit before income taxes

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

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)(Thousands of yen)First six months of FY2/22(Mar. 1, 2021 – Aug. 31, 2021)

183,837

226,424

5,316

19,691(100,382)

147,274

(523)

1,362

(95,590)

168,328

88,247394,752

88,247394,752

Profit (loss)
Other 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
Comprehensive income attributable toComprehensive income attributable to owners ofparent7

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/22(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)(Thousands of yen)First six months of FY2/22(Mar. 1, 2021 – Aug. 31, 2021)

266,307
196,160(39,601)

347,722
241,635
60,192826(45,850)

9,500(24,930)(5,907)
279
744
459
4,534

(8,277)
4,867(2,604)
(821)
4,532

1,211,311(50,597)
73,059(1,192,928)
529,802(1,298)824,375(680,911)
72,054(762,179)
820,734

15,182(8,053)(160,682)
57

Subtotal

1,010,253

689,443

Interest and dividends received
Interest paid
Income taxes refund
Income taxes paid
Other, net

5,907
(279)
(46,663)
8,097

8,277
(4,867)
8,929(196,842)-

Net cash provided by (used in) operating activities

977,314504,940(206,860)
52,796(310,447)
21,844(2,037)(2,043)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Loss (gain) on sales of securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in other liabilities
Other, net

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of intangible assets(2,209)(67,448)

Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales of investment securities(4,700)(1,776)-(1,501)
9,096

Payments of guarantee deposits
Proceeds from refund of guarantee deposits(28,729)
21,635(853)
218

Net cash provided by (used in) investing activities(171,881)(351,135)8

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

First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)(Thousands of yen)First six months of FY2/22(Mar. 1, 2021 – Aug. 31, 2021)

Cash flows from financing activities
Proceeds from short-term borrowings-

100,852

Repayments of short-term borrowings(32,160)(144,475)

Proceeds from long-term borrowings-

25,978

Repayments of long-term borrowings
Payments from changes in shares in subsidiaries that
do not result in change in scope of consolidation
Repayments of lease obligations-(4,229)-(41,224)(1,214)(19,211)

Dividends paid

(333,349)(334,449)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(366,724)(416,760)(9,641)

23,285429,067(239,668)

Cash and cash equivalents at beginning of period

4,314,123

4,498,482

Cash and cash equivalents at end of period

4,743,190

4,258,813

9

Freund Corporation (6312) Financial Results for the Second Quarter of FY2/22(4) 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, the Company 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.

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

Segment and Other Information
Segment information
I First six months of FY2/21 (Mar. 1, 2020 – Aug. 31, 2020)
1. Information related to net sales and profit or loss for each reportable segment
MachineryBusiness

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

Net sales(1) External sales(2) Inter-segment sales andtransfers
Total
Segment profit

4,125,972

2,917,755

7,043,727-

7,043,727

-

-

-

-

-

4,125,972

2,917,755

7,043,727-

7,043,727

255,922

228,548

484,471(233,386)

251,084

Notes: 1. Contents of adjustments are as follows.
The negative adjustment of 233,386 thousand yen to segment profit includes corporate expenses that are notallocated to any of the reportable segments. Corporate expenses mainly consist of general and administrative
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
Not applicable.
3. Information by region
Net sales
In addition to the disclosure of information required by the “Accounting Standard for Quarterly Financial
Statements,” the Company provides information by region (net sales) based on the “Accounting Standard forDisclosures about Segments of an Enterprise and Related Information” for the purpose of providing investors
with useful information.
Asia(Thousands of yen)
Total

Japan
United States
Latin America
EuropeOther386,782
5,803,123
401,651
119,800
199,469
132,899
Notes: 1. Classification of net sales is based on the location of the client and categorized by country or region.

2. Groupings of countries and regions other than Japan are determined by geographic proximity and mutual
operational relationships. Major countries and regions in each geographic segment are as follows.
(1) Latin America:

Brazil, etc.

(2) Europe:

France, Italy, UK, etc.

(3) Asia:

China, India, etc.

(4) Other:

Middle East, etc.

117,043,727

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

II First six months of FY2/22 (Mar. 1, 2021 – Aug. 31, 2021)
1. Information related to net sales and profit or loss for each reportable segment
MachineryBusiness

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

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

5,366,094

2,682,131

8,048,226-

8,048,226

-

-

-

-

-

Total

5,366,094

2,682,131

8,048,226-

8,048,226

Segment profit
245,620
Notes: 1. Contents of adjustments are as follows.

331,766

577,386(247,997)

329,389

The negative adjustment of 247,997 thousand yen to segment profit includes corporate expenses that are notallocated to any of the reportable segments. Corporate expenses mainly consist of general and administrative
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 quarterl y consolidated statement ofincome.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Omitted due to immateriality.
3. Information by region
Net sales
In addition to the disclosure of information required by the “Accounting Standard for Quarterly Financial
Statements,” the Company provides information by region (net sales) based on the “Accounting Standard forDisclosures about Segments of an Enterprise and Related Information” for the purpose of providing investors
with useful information.
(Thousands of yen)Japan

United States

Latin America

Europe

Asia

Other

5,654,278
777,358
442,713457,825575,687
140,363
Notes: 1. Classification of net sales is based on the location of the client and categorized by country or region.

Total
8,048,226

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 six months of FY2/21 have been revised.
As a result, “Other” of 519,681 thousand yen previously presented in information by region (net sales) for the firstsix months of FY2/21 is reclassified and divided into “Asia” of 386,782 thousand yen and “Other” of 132,899
thousand yen.

12

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

3. Others
Orders and Sales(1) Orders received
Operating segment

First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)
AmountYear-on-year (%)(Thousands of yen)First six months of FY2/22(Mar. 1, 2021 – Aug. 31, 2021)
AmountYear-on-year (%)

Machinery Business
6,705,850
126.3
7,695,049
114.8
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

First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)(Thousands of yen)First six months of FY2/22(Mar. 1, 2021 – Aug. 31, 2021)

AmountAmountYear-on-year (%)

Year-on-year (%)

Machinery Business
7,330,154
107.1
9,034,195
123.2
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

First six months of FY2/21(Mar. 1, 2020 – Aug. 31, 2020)
AmountComposition (%)(Thousands of yen)First six months of FY2/22(Mar. 1, 2021 – Aug. 31, 2021)
AmountComposition (%)

Machinery Business

4,125,972

58.6

5,366,094

66.7

Chemicals Business

2,917,755

41.4

2,682,131

33.3

Total
7,043,727
100.0
8,048,226
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.

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