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 Third Quarter of the Fiscal YearEnding February 29, 2021
January 8, 2021

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

Consolidated Financial Summary for 3Q of FY2/21

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

Consolidated Financial Summary Net sales slightly decreased 2.3% YoY
 Operating profit increased 320.4% YoY, as the top line sales decrease was offset by lower
SG&A expenses
 Profit sharply increased 634.0% YoY
 Revised the annual dividend forecast from "Undecided" to "20 yen per share"(Millions of yen)

Net sales

FY2/20FY2/21Q3

Q3ActualActual

YoY ChangeAmountFY2/21
Forecasts%

11,11010,852(258)(2.3)

17,800Operating profit

93391+298＋320.4

1,000

Ordinary profit

111

435

+324＋290.9

1,000Profit

37277+239＋634.0700

Earnings per share (yen)

2.25

16.55

＋14.30＋635.6

41.8

Depreciation

278

300

+21+7.7－R&D expenses

595382(212)(35.6)－Dividend－－－－20.00

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

2

Machinery Business: Overview
Sales by Product Field

Pharmaceutical products: Domestic sales were firm, but the U.S. subsidiary struggled due to delays inshipments and other factors

Industrial products:Segment Profit

Sales declined slightly as some export shipments were delayed

Profit increased significantly as the U.S. subsidiary received a subsidy of about $2.1 million and the entire group focusedon cost reduction

Orders Received

Orders received as well as the order backlog were firm compared to FY2/20 Q3
FY2/20FY2/21Q3Q3

ActualActual(Millions of yen)

YoY change
AmountFY2/21
Forecasts%

6,749

6,472(277)(4.1)

12,0005,710

5,487(223)

(3.9)

－

1,039

985(54)(5.2)－

Operating profit(142)

357+499-－

Orders received

7,208

9,084+1,875+26.0－

Pharmaceutical Products

5,924

7,874+1,950+32.9－

Industrial Products

1,284

1,209(74)

(5.8)

－

5,994

7,389＋ 1,395＋ 23.3

－

5,228

6,534＋1,306＋25.0－765854+88+11.6－

108.87106.53-2.34 yen/dollar(2.1)

105.00Net sales
医薬品関連 Products
Pharmaceutical
産業関連
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) 2021 Freund Corp. All rights reserved.

3

Machinery Business: Group Company Performance

Freund Corporation: Sales and earnings increased

Freund-Vector:

Although the top line sales were weak, subsidies received helped the company to stay inthe black

Freund-Turbo:

Posted a loss despite improved sales and profits compared to FY2/20 Q3



As deliveries tend to be concentrated in the 4Q of the fiscal year, both subsidiaries are expected to remain
profitable net of the subsidies received(Millions of yen)

Net sales

FY2/20FY2/21Q3

Q3AmountAmountYoY change
AmountFY2/21
Forecasts%

6,749

6,472(277)(4.1)

12,000

FREUND CORPORATION

4,130

4,400+270+6.5－

FREUND-VECTOR

2,126

1,642(484)(22.8)－

FREUND-TURBO

823

906＋83＋10.1－(142)

357+499-－

FREUND CORPORATION

134384+250＋185.4－

FREUND-VECTOR(195)

27＋222-－FREUND-TURBO(81)(54)+26-－

7,2089,084+1,875+26.0－

FREUND CORPORATION

3,771

5,166+1,394+37.0－

FREUND-VECTOR

2,4043,059＋655＋27.3－

FREUND-TURBO

1,032858(174)(16.9)－

5,994

7,389＋1,395＋23.3－

FREUND CORPORATION

3,685

4,707+1,021+27.7－

FREUND-VECTOR

1,6042,148＋543＋33.9－

FREUND-TURBO

704533(170)(24.2)－

Operating profit

Orders received

Order backlog

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

4

Machinery Business: Sales by Region Japan:

Sales slightly decreased YoY

 Overseas:

Sales sharply decreased in South America because of COVID-19
Sales increased in Asia because of higher sales involving China(Millions of yen)
FY2/20FY2/21Q3

Q3AmountAmountYoY change
AmountFY2/21
Forecasts%

Net sales

7,080

6,472(608)(8.6)

12,000

Japan

4,265

4,232(32)(0.8)－Overseas

2,489

2,240(248)(10.0)－

1,743

1,014(728)(41.8)－

Europe and Africa

236

258+22＋9.5－

Middle East, Asia and Pacific509

966+457+89.7－

North and South Americas

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

5Machinery Business: Quarterly Results (by Product Field)

Net sales

Operating profit 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)%
0Q1Q2Q3

FY2/16(1,000)

Q4

Q1Q2Q3

FY2/17Q4Q1Q2Q3

FY2/18

Q4Q1

Q2

Q3

FY2/19Q4Q1Q2Q3

FY2/20Q4

Q1Q2
FY2/21Q3(20.0)%(25.0)%

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

6

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
Q1Q2Q3

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

FY2/21

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

7

Machinery Business: Quarterly Results (Orders Received and Order Backlog by Product Field）(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

0Q1Q2Q3

FY2/16

Q4

Q1

Q2

Q3

FY2/17

Q4

Q1

Q2

Q3

FY2/18

Q4Q1

Q2

Q3

FY2/19

Q4

Q1Q2

Q3

FY2/20

Q4

Q1

Q2

Q3

FY2/21

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

8

Chemicals Business: Overview
 Net Sales

Pharmaceutical excipients:

Sales decreased mainly due to lower production by customers in Japan

Food preservatives:

Sales decreased as COVID-19 impacted confectionery sales

Dietary supplements:

Big increase in sales as customers increased inventories of supplements

Export:Increased due to the expansion of overseas sales activities forpharmaceutical excipients

 Segment Profit:

Down because of higher sales of products with low profit margins(Millions of yen)

Net sales
Pharmaceutical Excipients
Food Preservatives
Dietary Supplement Products(Export sales)*1

Operating profit

FY2/20FY2/21Q3

Q3AmountAmountYoY change
Amount%＋ 19＋ 0.4(137)

(6.1)

1395
851
157

(188)

(11.9)+344+68.1+45+40.8－－－404(247)(38.0)

－

4,360
2,271

4,379
2,133

1583
506111652*1: Sales to South Korea, India, Chine and Taiwan, etc.

FY2/21Forecasts

5,800－

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

9

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

Q2Q3

FY2/16Q4Q1Q2Q3

FY2/17Q4Q1Q2Q3

FY2/18Q4Q1Q2Q3

FY2/19Q4Q1Q2Q3

FY2/20Q4Q1Q2Q3

FY2/21

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

10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 subsidy
Depreciation+37(Millions of yen)+84+27
Sales

Other commission

(10)

(56)
Operations

consignment
Personnel
Positive factors

expenses+96
TravelingAdvertisingexpenses

expenses

391+158 expenses

Gross profit

93
Q3 FY2/20(250)+212

Q3 FY2/21

OperatingOperatingprofit

profitR&D expenses
Copyright (C) 2021 Freund Corp. All rights reserved.

11

Topic 1

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

Freund has acquired all equity in Cos.Mec S.r.l., an unlisted company based in Milan, on November 5, 2020.
Acquiring Cos.Mec gives the Freund Group sound positions in Japan (Freund Corporation), the UnitedStates (Freund-Vector Corporation), Europe (Cos.Mec) and India (Parle-Freund Machinery). With these fourpoles, the Freund Group is even better positioned to sell products worldwide, including emerging countries.

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

12

Cos.Mec’s Corporate Profile, Products and Markets■Corporate Profile
Number of employees: 51 (Consolidated – Includes manufacturing subsidiaries)
Sales:EUR 10.0 million (FY12/19, non-consolidated)
Profit:EUR 492,000 (FY12/19, non-consolidated)
Net assets:
EUR 1.9 million (FY12/19, non-consolidated)■ Products
Conveyance and processing equipment: Material Handling SystemBin, Vibrating sieve, Pneumatic conveyor, Cone mill, Bin & Drum mixer, Column lift, WashingstationGranulation: Granulation & Drying System
Fluid bed dryer, High shear mixer■Market Structure:
Geographical breakdown
Europe 41%, Latin America 35%, Asia 13%, Middle East 6%, Africa 5%
Key Markets
Italy, Spain, Russia, Mexico, Colombia, Bangladesh, Saudi Arabia, UAE, Egypt, etc.

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

13Product Lineup of the Freund Group after Converting Cos.Mec intoa Wholly Owned Subsidiary
Granulating andcoatingGRANUREX®

Granuformer®

Weighing

Bag emptying
stationTurbo Mill

Turbo Screener

MillingSieving

Palletized Bin mixer

Granumeist

FLOW COATER

Roller Compactor

Blending,
kneading

Column lift for
granulation

FLOW DRYER

GranulatingHigh shear mixer

Spir-A-Flow

Millmeist

Drying,grading

Mobile pneumatictransport system

HICOATER FZAQUA COATER®

Tableting

Column lift fortabletingCoating

Column lift forcoating

TABREX Rev.

Inspection,
printing

Packing

Column lift fortablets

Bin(Containers)
Drum column lift

Fluid bed dryer

Reversing machine

Vibration siever

Bag lift

For powders and granules

For tabletsCopyright (C) 2021 Freund Corp. All rights reserved.

14

Topic 2

Establishment of Freund-Chineway Pharmaceutical Technology Center On December 1, 2020, Freund signed an agreement with Shanghai Chineway
Pharmaceutical Technology Co., Ltd. to establish a joint venture in China.
By establishing a formulation research facility that handles both our pharmaceuticalmanufacturing equipment and excipient in China, we are able to strengthen productdevelopment support for Chinese pharmaceutical companies, and by collectively testing bothof our equipment and excipient products, product recognition can be further increased.

■Name
Freund-Chineway Pharmaceutical Technology Center Co., Ltd.
■Location
Shanghai, China■Shareholdings
Chineway Pharmaceutical Technology 51% Freund 49%■Capital stock RMB 50 million■Business
Technical support services to Chinese pharmaceutical companies■Scheduled opening of the technology center
Planned in May 2021

Interior view of the technology center (illustration)
Copyright (C) 2021 Freund Corp. All rights reserved.

15

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) 2021 Freund Corp. All rights reserved.

16