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 28, 2022
January 12, 2022

Copyright(C) 2022 Freund Corp. All rights reserved.

Consolidated Financial Summary for Q3 of FY2/22

Copyright(C) 2022 Freund Corp. All rights reserved.

Consolidated Financial Summary
 Sales, operating profit and ordinary profit increased YoY.
 Sales increase was driven by the machinery business as a result of the consolidation ofCos.Mec and higher sales of other group companies.
 Earnings in the first nine months of FY3/21 include a subsidy of more than 200 million yen
received by a U.S. subsidiary. Operating and ordinary profit were up about 300 million yen
after adjusting for this one‐time income.
 Higher chemicals business earnings, the result of a lower cost of sales, was the main reason
for earnings growth.
(Millions of yen)
 Profit decreased slightly due to impairment loss.

Net sales

FY2/21

FY2/22Q3

Q3ActualActualYoY ChangeAmount%

10,852

11,988+1,135+10.5

Operating profit

391

459+68+17.4

Ordinary profit

435

492+57+13.2

Profit277

270(6)(2.5)(9.44)

8.69+18.13－

Depreciation

300

436+135+45.2

R&D expenses

382

455

+72

+18.9

Dividend－－－－Earnings per share (yen)Copyright (C) 2022 Freund Corp. All rights reserved.

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Machinery Business: Group Company Performance Consolidated:

Sales increased and earnings were lower, although earnings increased YoY after adjusting for subsidy
income one year earlier. Orders are strong.
 Freund Corporation: Sales and earnings remained unchanged YoY. Orders from overseas customers were sluggish.
 Freund-Vector:
Sales increased and earnings were lower, although earnings increased YoY after adjusting for subsidy
income one year earlier. Orders are strong from customers in the U.S., Brazil and other countries.
 Freund-Turbo:
Sales and earnings increased YoY. Sales in Japan are recovering.
 Cos.Mec:
Sales were held down by the impact of the pandemic in emerging countries, the primarymarket for this company.
(Millions of yen)

Net sales

FY2/21

FY2/22Q3

Q3AmountAmountYoY changeAmount%

6,4727,740

FREUND CORPORATION+1,267+19.6

4,400

4,431+31+0.7

FREUND-VECTOR

1,6422,021+379+23.1

FREUND-TURBO

906

1,066+160+17.7

Cos.Mec－561－－

Operating profit

357262(94)(26.4)

FREUND CORPORATION

384396+11+2.9

FREUND-VECTOR

27(113)(141)(517.8)FREUND-TURBO(54)

50+105－－(70)

－－

9,084

10,612+1,528+16.8

FREUND CORPORATION

5,166

4,565(601)(11.6)

FREUND-VECTOR

3,059

4,748+1,688+55.2

FREUND-TURBO

858

908+50+5.9

Cos.Mec
Orders received－390－

－

7,389

9,626+2,237+30.3

FREUND CORPORATION

4,707

4,826+119+2.5

FREUND-VECTOR

2,148

3,768+1,620+75.4

FREUND-TURBO

533524(8)(1.6)

Cos.Mec－506－－

Cos.Mec
Order backlog

Copyright (C) 2022 Freund Corp. All rights reserved.

3

Machinery Business: Sales by RegionGrowth outside Japan was mainly responsible for higher sales.

USA:

Sales are recovering from the pandemic downturn one year earlier.

Latin America:

Sales increased compared to the previous fiscal year as the effects of COVID-19 are gradually
declining. The consolidation of Cos.Mec. contributed to sales.

Europe:

Sales benefited from a large order in Ireland and the consolidation of Cos.Mec.

Asia:

Lower sales in China were offset by higher sales in India and other countries.
(Millions of yen)

FY2/21

FY2/22Q3

Q3AmountAmountYoY change
Amount%Net sales

6,472

7,740

+1,267

+19.6

Japan

4,232

4,529+297+7.0

Overseas

2,240

3,210+970+43.3

USA788990+202+25.7

Latin America

191535+344+179.7

Europe258

558+299+115.8Asia

862876+14+1.6

Others139249+109+78.8

Copyright (C) 2022 Freund Corp. All rights reserved.

4

Machinery Business: Quarterly Results

Net sales

Operating profit margin(Millions of yen)
5,000

20.0%

Net sales
Operating profit margin

15.0%
4,000

10.0%

3,000
5.0%

2,000

0.0%

(5.0)%
1,000(10.0)%

0Q1Q2Q3

FY2/17Q4

Q1Q2

Q3

FY2/18

Q4

Q1

Q2

Q3

FY2/19Q4

Q1

Q2

Q3

FY2/20Q4

Q1Q2Q3

FY2/21Q4Q1

Q2

Q3(15.0)%

FY2/22(1,000)(20.0)%

Copyright (C) 2022 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

2,000

0Q1

Q2

Q3

FY2/17

Q4

Q1

Q2Q3

FY2/18

Q4

Q1

Q2

Q3

FY2/19

Q4

Q1

Q2

Q3

FY2/20

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2/21FY
2/22
Copyright (C) 2022 Freund Corp. All rights reserved.

6

Chemicals Business: Overview
 Net Sales

Pharmaceutical excipients:

Sales increased despite supply and other problems in the generic drug
industry.

Food preservatives:

Higher sales for confectionery products at supermarkets/convenience
stores offset lower sales of preservatives for products sold to tourists.

Dietary supplement products:

Significant sales decline due to the termination of orders
from a high-volume customer.

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

 Segment Profit:

Higher earnings because of a decline in the cost of sales ratio.
(Millions of yen)

Net sales

FY2/21

FY2/22Q3

Q3AmountAmountYoY change
Amount%

4,379
2,133

4,248
2,352(131)(3.0)+218+10.3

1,645
250
227+249+17.9(600)(70.6)(Export sales)*1

1,395851
157+70+44.6

Operating profit

404

602+197+48.7

Pharmaceutical Excipients
Food Preservatives
Dietary Supplement Products*1 Sales to Europe, India, South Korea, China and Taiwan, etc.
Copyright (C) 2022 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 Products2,000

Operating profit margin
15.0%

1,500

10.0%

1,000

5.0%
50000.0%
Q1Q2Q3

FY2/17Q4Q1Q2Q3

FY2/18Q4Q1Q2Q3

FY2/19Q4Q1Q2Q3

FY2/20Q4Q1Q2Q3

FY2/21Q4Q1Q2Q3

FY2/22

Copyright (C) 2022 Freund Corp. All rights reserved.

8

Change in Consolidated Operating Profit
 Operating profit increased as the higher gross profit covered the increase in SG&A expenses.
 The main reasons for higher SG&A expenses are the consolidation of Cos.Mec, Cos.Mec
goodwill amortization, and lower personnel and other expenses in the previous fiscal year
due to the receipt of a pandemic subsidy at the US subsidiary.
(Millions of yen)

Gross profit
Traveling
expenses Advertising
Goodwill
expenses(10)

Positive factors

693

(36)

amortization

R&D

(56)

expenses

(72)

Sales
commission
Depreciation

(75)

(110)
Personnel
expenses

Other(206)

(60)

391

459

FY2/21 3Q

FY2/22 3Q
Copyright (C) 2022 Freund Corp. All rights reserved.

9Topics

Development and Launch of the Antimold Mild® Fv Food Preservative Development and launch in November 2021 of Antimold Mild® Fv, a food preservative thatallows confirming the insertion of the preservative with all types of packaging.


Finished food packages can be checked for metal contaminants and food preservative packets
at the same time.
Confirmation of the insertion of a preservative packet is possible regardless of the type, colorand design of the food packaging film.
No restriction on the location of the preservative packet inside the package.

URL: https://www.freund.co.jp/product/preservation/preservation_ethanol/antimoldmild_fv.html

How packages are inspected (Example)
Antimold Mild FvEthanol vaporization agent for prevention of missing preservative packets
Allows use of the same inspection line to check finished food packages
for metal contaminants and the presence of the ethanol vaporization
agent, irrespective of the type of food packaging film used.
Metal contaminant inspection

Antimold Mild Fv inspection
MagnetMetal detector

Antimold Mild Fv
detector

Metalcontaminants

Antimold
Mild Fv
Yes (packet inserted)

No

YesNo
Magnetic sensor

A metal contaminantdetection unit compatible with Antimold Mild Fv
アンチモールド・マイルドFv適応機種(M（アンリツ株式会社製Series metal detector madeby Anritsu Corporation)
金属検出器Mシリーズ）
Copyright (C) 2022 Freund Corp. All rights reserved.

10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: https://www.freund.co.jp/english/
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) 202 Freund Corp. All rights reserved.

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