FREUND CORPORATION(Securities code: 6312)

Results of Operations for the Fiscal
Year Ended February 28, 2023
May 17, 2023

Copyright(C) 2023 Freund Corp. All rights reserved.

Contents
 Consolidated Financial Summary for FY2/23

・・・

P.02

 Review of the 8th Medium‐Term Management Plan

・・・

P.16

 Consolidated Earnings and Dividend Forecasts for FY2/24

Supplementary Materials

・・・

P.20

・・・

P.24

Copyright (C) 2023 Freund Corp. All rights reserved.

1

Consolidated Financial Summary for FY2/23

Copyright(C) 2023 Freund Corp. All rights reserved.

Consolidated Financial Summary
Net sales
Net sales increased compared to the previous year. The machinery business experienced
significant revenue growth, supported in part by higher yen translations of sales at overseas
subsidiaries resulting from the depreciation of yen. The chemicals business maintained a strong
performance both in pharmaceutical excipients and food preservatives.

Profit

Profit was lower than in the previous year, mainly in the U.S. subsidiary. The decline can be
attributed to factors such as the long time needed to procure parts/materials, shipment
delays , and high raw material prices in the machinery business.

Impairment losses of about 900 million yen as extraordinary losses for goodwill associatedwith consolidated subsidiary Cos. Mec S.r.l.

(Millions of yen)

FY2/22
Actual

FY2/23
Revised plan
（1/12/23)

Initial plan
（4/13/22）

YoY change
ActualAmountCompared toinitial plan％

17,632

18,50019,50019,658

2,026

11.5%

1,158

Operating profit

981

700

150

451

(530)

(54.0)%(249)

Ordinary profit

1,032

720

200

559

(473)

(45.9)%

(161)

543

450

100

(538)

(1,081)‐(988)

Earnings per
share (yen)

32.46

26.87

5.97

(32)

(65)

‐

(59)

ROA

2.5%

‐

‐

(2.4)%(4.9)%

‐

‐

ROE

3.9%

‐

‐

(3.8)%(7.7)%‐‐Net sales

ProfitCopyright (C) 2023 Freund Corp. All rights reserved.

3

Machinery Business: Overview
Net sales In Japan, net sales were negatively affected by shipment delays resulting from factors suchas prolonged procurement of components.
 In other countries, particularly at the U.S. subsidiary, net sales exceeded the previous year.
This growth, combined with the depreciation of yen offset the decline in sales in Japan.

Operating profit
Operating profit decreased significantly as the U.S. subsidiary incurred losses, which were
influenced by the following factors.
 Long time needed to procure components due to a labor shortage and supply chain
disruptions in the U.S.; and Decrease in profit margin due to higher cost of raw materials caused by rapid inflation.

Orders received and order backlog
 Orders received were strong, driven by the substantial investments in large‐scale equipment
by generic drug manufacturers in Japan.
 The order backlog reached a record high during the fiscal year and remains high.
(Millions of yen)

Net sales

FY2/22
11,836

YoY change
Amount％13,4481,612
13.6%

FY2/23Operating profit

623

59

(563)

(90.5)%

Orders received

15,621

14,630(990)(6.3)%

Order backlog

10,574

12,826

2,252

21.3%

Copyright (C) 2023 Freund Corp. All rights reserved.

4

Machinery Business: Group Company Performance (Sales/Operating Profit)
FreundCorporation

Sales declined significantly due to the extended lead time for procuring
semiconductors and other components as well as for shipments. The rise in raw
materials prices had a negative impact on profitability, resulting in lower earnings.

Freund‐Turbo

Despite an increase in sales, earnings decreased due to the limited growth in salesof high‐margin products and a delay in recognizing certain sales.

Freund‐Vector

Despite the significant increase in sales, partly attributed to the depreciation of yen,
the company incurred a large loss This was caused by the tight labor supply, longlead times for procuring parts and materials, and rising cost of raw materials.

Cos.Mec

The company achieved record‐high sales and returned to profitability after incurring
a loss in the prior year as it successfully completed sales to customers in emerging
countries.

(Millions of yen)
Before elimination for consolidation

Net sales

FY2/22

YoY change

FY2/23

Amount％11,836

13,448

1,612

13.6%

Freund Corporation

6,865

5,634

(1,231)(17.9)%

Freund‐Turbo

1,529

1,600

70

4.6%

Freund‐Vector

3,135

5,348

2,210

70.5%

937

1,714

775

82.7%

623

59

(563)

(90.5)%

Freund Corporation

840

421

(418)

(49.8)%

Freund‐Turbo

83

50

(33)

(39.9)%

Freund‐Vector

(50)

(410)

(360)

‐

Cos.Mec

(162)

95

258

‐

Cos.Mec
Operating profit

Copyright (C) 2023 Freund Corp. All rights reserved.

5

Machinery Business: Group Company Performance (Orders Received/Order Backlog)
Freund Corporation

Order volume surpassed the previous fiscal year, and the order backlog remained
high due to many investments in large‐scale facilities by generic drug companies
in Japan.

Freund‐Turbo

The order backlog exceeded the previous fiscal year s performance, partly becauseof advance orders from customers anticipating extended delivery times caused by
the shortage of electronic components.

Freund‐Vector

The order backlog decreased compared to the previous fiscal year s record high as
products were sold and the volume of new orders was controlled.

Cos.Mec

Although orders and order backlog are below the record‐high of the previous fiscal
year, the company still has major projects in Asia and Africa.
(Millions of yen)
Before elimination for consolidation

Orders received

FY2/22

YoY change

FY2/23

Amount％15,621

14,630(990)(6.3)%

Freund Corporation

7,416

8,157

740

10.0%

Freund‐Turbo

1,366

1,517

150

11.1%

Freund‐Vector

5,588

3,645

(1,943)(34.8)%

Cos.Mec

1,447

1,310

(136)

(9.5)%

Order backlog

10,574

12,826

2,252

21.3%

5,212

7,835

2,622

50.3%

Freund‐Turbo

620

839

219

35.3%

Freund‐Vector

3,710

3,173

(536)

‐

Cos.Mec

1,183

977

(206)

‐

Freund Corporation

Copyright (C) 2023 Freund Corp. All rights reserved.

6

Machinery Business: Sales by Region
Japan

Sales decreased significantly YoY due to the long lead times for procurement
and shipments.

Overseas

At Freund‐Vector, sales to Latin America and Asia contributed to theirperformance. Cos.Mec also benefited from major projects in Latin Americaand Asia. In addition, the depreciation of the yen contributed to an increasein yen‐denominated sales.

Others330
Asia 3%
1,365
Europe 12%
835
7%

Latin
America881
7%Overseas
4,80241％

FY2/22¥11,836 million

USA
1,388
12%

Asia
2,193
16%
Japan
7,034
59%

Europe833
6%Overseas
7,603
57％

Others353
3%

FY2/23¥13,448 million

Latin
America
2,506
19%

Japan
5,845
43%

USA
1,716
13%

Copyright (C) 2023 Freund Corp. All rights reserved.

7

Machinery Business: Quarterly Results
Net sales

Operatingprofit margin(Millions of yen)

20%

6,000

Net sales（left axis）

Operating profit margin（right axis）
15%

5,000
10%
4,000
5%

3,000

0%

‐5%
2,000
‐10%
1,000
‐15%

0

‐20%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2/19FY2/20FY2/21

FY2/22

FY2/23Copyright (C) 2023 Freund Corp. All rights reserved.

8

Machinery Business: Quarterly Results (Net Sales/Orders Received/Order Backlog)(Millions of yen)
18,000Order backlog
Net sales
Orders received

15,00012,000

9,000

6,000

3,000

0

Q1

Q2

Q3

FY2/19

Q4

Q1

Q2

Q3

FY2/20

Q4

Q1

Q2

Q3

FY2/21

Q4

Q1

Q2

Q3

FY2/22

Q4

Q1

Q2

Q3

Q4

FY2/23Copyright (C) 2023 Freund Corp. All rights reserved.

9

Chemicals Business: Overview
Net sales
Pharmaceutical excipients : Sales remained strong both in Japan and other countries,
surpassing the previous year s all‐time high.
Food preservatives:
Sales remained strong due to increased demand in theconfectionery and on‐line bread sales sectors.
Just as for pharmaceutical excipients, sales exceeded the year s
all‐time high.
Dietary supplement:
Sales declined due to the termination of a contract with a major
customer.

Operating profit:
Despite the increase in raw material prices, earnings increased because of a combination ofsales growth and improved operating efficiency.
(Millions of yen)

Net sales

FY2/22

FY2/23

YoY change
Amount

％

5,795

6,209

413

7.1%

Pharmaceutical Excipients

3,251

3,399

148

4.5%

Food Preservatives

2,204

2,609

405

18.3%

Dietary Supplement Products

340

200

(139)

(41.0)%（Export sales）

326

339

13

4.0%

884

976

91

10.3%

Operating profit

Copyright (C) 2023 Freund Corp. All rights reserved.

10Chemicals Business: Quarterly Results (by Product Field)
Operatingprofit margin
20.0%

Net sales(Millions of yen)
2,000

Dietary Supplement Products
Food Preservatives
Pharmaceutical Excipients
Operating profit margin

1,500

15.0%

1,000

10.0%

500

5.0%

0

0.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY2/19FY2/20FY2/21

FY2/22

FY2/23Copyright (C) 2023 Freund Corp. All rights reserved.

11Summary of Consolidated Statement of Income
 The cost of sales ratio increased because of rising prices of raw materials in Japan and othercountries, resulting in a decrease in the gross profit margin.
 Despite a significant rise in SG&A expenses, a key factor driving this increase is the higher yen
conversions resulting from the depreciation of yen.
 There was a significant foreign exchange gain as non‐operating income and impairment losses
for goodwill and other items in extraordinary losses were also recognized.
(Millions of yen)

FY2/22
AmountNet sales

FY2/23Composition
ratio

AmountYoY change

Composition
ratio

Amount％17,632100.0

19,658

100.0

2,026

11.5%

11,62065.9

13,665

69.5

2,044

17.6%

6,011

34.1

5,993

30.5

(18)

(0.3)%

5,030

28.5

5,541

28.2

511

10.2%

Operation proﬁt

981

5.6

451

2.3

(530)

(54.0)%

Non‐operating income
and expenses

50

0.3

107

0.5

56

114.0%

1,032

5.9

559

2.8

(473)

(45.8)%

Extraordinary income
and losses

(204)

(1.2)

(965)

(4.9)

(761)

‐

Proﬁt before income taxes

828

4.7

(406)

(2.1)

(1,234)‐

Profit

543

3.1

(538)

(2.7)

(1,081)‐

Cost of sales
Gross proﬁt
SG&A expenses

Ordinary proﬁt

Copyright (C) 2023 Freund Corp. All rights reserved.

12

Analysis of Change in Consolidated Operating Profit
SG&A expenses increased by 511 million yen primarily due to the higher yen conversions
resulting from the depreciation of yen, as well as increases in sales commissions andpersonnel expenses driven by higher sales at overseas subsidiaries.
(Millions of yen)

Positive factors
Copyright (C) 2023 Freund Corp. All rights reserved.

13

Summary of Consolidated Balance Sheet Accounts receivable, work in process and short‐term borrowings increased at the
U.S. subsidiary.
 Non‐current assets decreased due to the recognition of impairment losses forgoodwill and Intangible Assets.
 Although net assets deceased, an equity ratio remained high (62.0%)

AssetsCash anddepodits

4,145

Liabilities and Shareholders' Equity
3,917

2,743

2,730

2,805
27
1,459
883

2,913

14,354

14,117

896
1,275
826

Accounts
receivable

5,228

5,535

Inventories

5,090

5,586

Other assets

540

831

Non‐current
assets

7,269

6,888

FY2/22

FY2/23

FY2/22

FY2/23\22,273 million\22,758 million\22,273 million\22,758 million

Accounts payable
Contract Liabilities(Advances received)
Short‐term debt
Other liabilities
Non‐current
liabilities

Net assets

Copyright (C) 2023 Freund Corp. All rights reserved.

14

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

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Decrease (increase) in notes andaccounts receivable ‐ trade
Decrease (increase) in inventories
Increase (decrease) in notes andaccounts payable ‐ trade
Income taxes paid
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Cash flows from financing activities
Short‐term debt
Cash dividends paid
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period
Free cash flow

FY2/22
701
828
570
75

FY2/23
(196)
(406)
565
933

(299)

(171)

(1,430)

(54)

(154)

(78)

(394)
(680)
(460)
(236)
(427)
(30)
(335)
(353)
4,145
21

(412)
(666)
(269)
(330)
451
852
(333)
(228)
3,917
(862)

Copyright (C) 2023 Freund Corp. All rights reserved.

15

Review of the 8th Medium‐Term Management Plan
FY2/21 to FY2/23

Copyright(C) 2023 Freund Corp. All rights reserved.

Outline of the 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 andcreating and utilizing 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 collaboration

Always use the customer’s
perspective
Be a company like no otherfor customers and society

2. Putting clients’ views 1st
3. Emphasis on innovation
4. Global management
5. Execution of growth strategy

Networking
Solidify the group to create a
unified organization

6. Promotion of business process reengineering
and work style reforms
7. Emphasis on compliance and corporate governance
Copyright (C) 2023 Freund Corp. All rights reserved.

17

Review of the 8th Medium‐Term Management Plan
The profit target was achieved only in the first year of the plan and the goals for thefollowing years had to be revised.

Net sales(Millions of yen)

FY2/21
20,00017,80016,765Initial plan

Actual19,050FY2/22
18,50017,632

Initial plan Revised

Actual20,140FY2/2318,50019,658Initial plan Revised

Actual

15,00010,0005,000
0Operating profit
1,500
1,000

FY2/21
1,000

plan

plan

1,111

1,220

FY2/22
1,100

1,460
981

FY2/23
700

500

451

0

Initial plan

ActualInitial plan Revised
plan

ActualInitial plan Revisedplan

Copyright(C) 2023 Freund Corp. All rights reserved.

Actual18

8th Medium‐Term Management Plan Summary and the 9th Medium‐Term Management Plan

Summary of the 8th Medium‐Term Management Plan In the machinery business, achieved a record‐high order backlog by targeting thestrong demand in Japan. Similarly, the chemicals business achieved record‐highsales both in pharmaceutical excipients and food preservatives.
 Building a five‐pole global structure, which serves as the nucleus of our growthstrategy; will pursue and capture synergies
 Faced challenges due to longer lead times and lower profitability in both Japan andother countries, which can be attributed to the pandemic and the Ukraine conflict.
Overseas subsidiaries, in particular, struggled in this business climate.

Preparing for the 9th Medium‐Term Management Plan
The 9th Medium‐Term Management Plan was originally scheduled to commence in the fiscal
year ending in February 2024. However, the business environment became uncertain due tothe following factors.
 The prolonged Ukraine conflict The persistently high cost of raw materials and energy, along with ongoing supply
constraints caused by this conflict The next business plan covers only the fiscal year ending in February 2024.
 The 9th Medium‐Term Management Plan will begin with the fiscal year ending in
February 2025. This plan is scheduled to be announced around the beginning of the next
fiscal year.
Copyright(C) 2023 Freund Corp. All rights reserved.

19

Consolidated Earnings and Dividend Forecasts for FY2/24

Copyright(C) 2023 Freund Corp. All rights reserved.

Summary of Consolidated Forecasts
The forecasts for the fiscal year ending in February 2024 are based on theassumptions that the long lead times caused by the high cost of raw materials
and the constraints in component procurements, although showing some signs ofimprovement, will still make the business climate unpredictable.

(Millions of yen)

FY2/23

FY2/24

ActualForecast

19,65820,000

+342

+1.7%

Operating profit

451

700

+249

+55.0%

Ordinary profit

559

650

+91

+16.3%

Profit

(538)

450

+988

‐

Earnings per share (yen)(32.15)26.87+59.02‐

Yen/dollar rate

134.12130.00+4.12‐

Net sales

YoY change
Amount％Copyright (C) 2023 Freund Corp. All rights reserved.

21

Summary of Dividend Forecasts
 In FY2/23, no change in the 20 yen dividend forecast in line with the basic
policy of maintaining a stable dividend over the long term.
 FY2/24 dividend forecast is also 20 yen per share.
Dividend per share (yen)

20.0

20.0

20.0

20.0

20.0

Dividend payout ratio (%)

37.2

22.4

12.5

12.5

FY2/15

FY2/1632.4

FY2/17

39.9

87.8

23.3

FY2/18

FY2/19FY2/20

20.0

20.0

20.0
74.4

61.6
34.5

FY2/21

FY2/22

FY2/23

FY2/24(Forecast)

Note: Dividend payout ratio for FY2/23 is not available due to loss attributable to owners of parent.
Freund conducted a 2-for-1 common stock split on March 1, 2016. The dividends per share for FY2/16 and earlier have beenadjusted to reflect the stock split.
Copyright (C) 2023 Freund Corp. All rights reserved.
22

Topics
Recognition as a 2023 Certified Health and Productivity Management Outstanding Organization
On March 8, 2023, Freund was certified for the first time by the Ministry of Economy, Tradeand Industry and the Nippon Kenko Kaigi as a 2023 Health and Productivity Management
Outstanding Organization in the small and midsize enterprise category.
The Freund Health Management Policy and Declaration
Freund has many activities for the purpose of maintaining
and improving the health of employees and utilizing ahealthy workforce for the growth of corporate value andsales and earnings.
Freund will continue to be firmly committed to healthmanagement in order to maintain workplace environmentsthat are conducive to productive and stimulating work.
Examples of health management activities(1) Support for specific health guidance(2) Health checkups and follow‐up examinations(3) Placement of blood pressure monitors at workplaces(4) Use of internal SNS to provide information aboutstaying healthy (food, exercise, stop smoking)(5) Information about walking events held by healthinsurance organizations(6) Distribution of videos about proper dental care

* The health and productivity management outstanding organization certification system recognizes companies with outstanding
strategic health management activities that reflect regional health issues and support employees health management from thestandpoint of management.
Copyright (C) 2023 Freund Corp. All rights reserved.

23

(Supplementary Materials)
・ Company Overview
・ Segment Information

Copyright(C) 2023 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 (Fiscal year ended February 28, 2023, consolidated)●Sales： 19,600 million yen (As of February 28, 2023)●Number of employees ： 482 (As of February 28, 2023, consolidated)●Business： Machinery business‐ Manufacturing and sales of granulation andcoating equipment and others
Chemicals business‐ Manufacturing and sales of pharmaceutical
excipients, food preservatives, and others●Group companies： Freund-Vector Corporation, Freund-Turbo Corporation,
Cos.Mec s.r.l., Parle Freund Machinery Private Limited,
Freund-Chineway Pharmaceutical Technology Center Co.,Ltd.

Copyright (C) 2023 Freund Corp. All rights reserved.

25

The Freund Group and R&D Facilities

Using innovative technologies
for rapid growth outside Japan
FreundCorporation
Freund‐Turbo
Corporation
Yokosuka, Kanagawa

Tokyo, Osaka, Shizuoka, Aichi

Cos.Mec s.r.l.

Freund‐Vector
Corporation
Iowa, USA

Milan, Italy

Research and Development
Laboratory(Hamamatsu, Shizuoka)

Domestic
users

Marion Laboratory (Iowa, USA)

Sales of machineryand chemical products

Sales of machineryand chemical products

Parle Freund (India)

Overseas
users

Milan Laboratory (Italy)
Copyright (C) 2023 Freund Corp. All rights reserved.

26

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 is ranked first in Japan andsales growth is accelerating in Asia and in Freund-Vector’s
US and European operations. Freund is the only company inthe world that has expertise both in drug formulation
technologies and the associated machinery.
 Aiming to increase sales of industrial machinery too byintegrating granulating and coating technologies withmilling and sieving technologies.

Composition of Net Sales
and Profit by Segment
Chemicals

32%

6%

FY2/23

2. Chemicals Business Segment

Ink Manufacturing and sales of pharmaceutical excipients,
68%
94%
food preservatives, nutritional supplements, and others.
利益 Freund uses Good Manufacturing Practice (GMP) compliant
equipment for the production of pharmaceutical
excipients.
売上高 Freund’s food preservatives contribute to ensuring the
Machinerysafety of food by maintaining the quality of various
products.
Consolidated sales:¥19.65 billion
 Through the utilization of its granulating and coating
Consolidated operating profit: ¥0.45 billion
technologies, Freund collaborated with customers todevelop and commercialize nutritional supplements andseamless mini-capsules.
Copyright (C) 2023 Freund Corp. All rights reserved.

27

Freund Group s Business Fields
 FREUND Group s business fields based upon pharmaceutical products
manufacturing processes
FREUND Group Business Fields

Copyright (C) 2023 Freund Corp. All rights reserved.

28

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
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 – The Corporate Planning Division responsible for investor relations oversees dialogues withshareholders and other investors under the direct supervision of the company’s president. In addition, the president is
assisted by a director who is in charge of 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 Administration Division
Finance & Accounting Department
Tel: +81-3-6890-0747
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) 2023 Freund Corp. All rights reserved.

31