FREUND CORPORATION(Securities code: 6312)

Results of Operations
for the First Quarter of the Fiscal YearEnding February 28, 2025
July 17, 2024

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Consolidated Financial Summary for the First Quarter of FY2024*FY2024=Fiscal Year ending February 2025

Copyright (C) Freund Corp. All rights reserved.

Consolidated Financial Summary Net sales slightly decreased YoY.
A big YoY increase in machinery sales in Japan but a sharp decline in sales at overseas
subsidiaries, partly due to the large volume of shipments at the end of FY2023. Chemicals
business sales were about the same as one year earlier.
 Operating profit decreased significantly YoY.
Higher machinery earnings in Japan but not enough to offset losses at overseas subsidiaries
because of a one-time expense of about 160 million yen at Freund Corporation for thechange to a new core IT system.
 Record high machinery order backlog for a first quarter despite the low level of orders at thesubsidiary in Italy. A large volume of inquiries in Japan and the U.S.
(Millions of yen)

Net sales

FY2023
1Q

FY2024
1Q

YoY ChangeFY2024
Forecasts％

4,200

4,124(75)(1.8)%

23,500Operating profit

(29)

(264)

(234)

－

1,100

Ordinary profit

(17)

(247)

(230)

－

1,100

Profit attributable to ownersof parent

(18)

(205)

(186)

－770

(1.12)(12.16)(11.03)－

45.76

Earnings per share (yen)* No change in the FY2024 sales and earnings forecasts because of the stable performance in Japan andthe outlook for overseas operations to become profitable in the second half.

Copyright (C) Freund Corp. All rights reserved.

2Machinery Business: Group Company Performance (Sales/Operating Profit)
Freund Corporation

A big YoY increase in sales despite the negative effect of the timing ofsales recognition for some projects in Japan. Earnings increased evenafter the one-time expense of about 80 million yen for the core IT
system update.

Freund-Turbo

Sales and earnings are generally in line with plan.

FREUND Inc.

Sales and earnings were sluggish following the large number ofshipments at the end of FY2023. In addition, major projects will beconcentrated in the second half.

FREUND S.r.l.

Sales and earnings were sluggish because major projects are expectedto be delivered in the second half, similarly as FREUND Inc.

(Millions of yen)
Before elimination for consolidation

Net sales

FY2023
1Q

YoY change

FY2024
1Q％

2,556

2,506(50)(2.0)%

1,107

1,727

619

56.0%

Freund-Turbo

214

349

134

62.4%

FREUND Inc.

1,155

362

(792)

(68.6)%

FREUND S.r.l.

162

93(69)(42.6)%

Operating profit

(76)

(219)

(143)

－

Freund Corporation

27115

88

325.9%

Freund-Turbo

(34)

1752

－

FREUND Inc.

30(188)(218)－FREUND S.r.l.

(98)

(180)

(81)

－Freund Corporation

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3

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

The order backlog remains high. Orders decreased YoY, but there
is a large volume of inquiries due to the substantial investments inlarge-scale equipment by generic drug manufacturers in Japan.

Freund-Turbo

Orders increased YoY as planned and the order backlog decreased
YoY because the backlog in FY2023 included many large orders.

FREUND Inc.

There was a large volume of inquiries although orders were slightly
below the plan. The order backlog remains high.

FREUND S.r.l.

Actions are needed for increasing orders and the order backlog.

(Millions of yen)
Before elimination for consolidation

Orders received

FY2023
1Q

YoY change

FY2024
1Q％

4,200

3,056

(1,144)(27.2)%

2,395

1,695(699)(29.2)%

Freund-Turbo

337

417

79

23.7%

FREUND Inc.

1,091

803(287)(26.4)%

FREUND S.r.l.

376

139(236)(62.8)%

14,607

16,636

2,029

13.9%

Freund Corporation

9,133

10,893

1,760

19.3%

Freund-Turbo

1,016

748(267)(26.4)%

FREUND Inc.

3,205

4,072866

27.0%

FREUND S.r.l.

1,252921(330)(26.4)%

Freund Corporation

Order backlog

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Machinery Business: Sales by Region
JapanA big increase in sales due to consistent shipments for the orders received.

Overseas

Overseas sales fell to 21% of total sales in the first quarter, but are expected torise to about 50% of FY2024 sales.

Latin
America74

Others
Asia

333

136

EuropeFY2023

5%

1Q

Latin
America
372

111
4%

50

692%

3%

3%

5%

13%

133

OthersEurope AsiaUSAJapan

230

989

9%

39%

FY20241Q¥2,556 million¥2,506 million

15%

Exc. Japan
1,56761％USA

59023%

Exc. Japan
53721％

Japan

1,96979%

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5Machinery Business: Quarterly Results (Net Sales/Orders Received/Order Backlog)(Millions of yen)

(Millions of yen)

8,000

20,000Net sales (left axis)
7,000

18,000Orders received (right axis)
Order backlog (right axis)

16,0006,000

14,0005,000

12,00010,000

4,000

8,000

3,000

6,000
2,000

4,000
1,000

2,000
001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2019FY2020

FY2021

FY2022

FY2023

FY2024

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6

Chemicals Business: Overview
Net sales
Pharmaceutical excipients:
Sales grew YoY despite the negative effect of a temporary production decline at a majorcustomer.
Food preservatives:
Sales decreased because some major customers switched to procuring from multiple
companies to ensure business continuity.
Operating profit
Down YoY because of a one-time expense of about 80 million yen for the core IT system
update(Millions of yen)

Net sales

FY2023
1Q

YoY change

FY2024
1Q％

1,643

1,618(25)(1.5)%

Pharmaceutical excipients

948

983

35

3.7%

Food preservatives

695

634(60)(8.7)%

207123(83)(40.6)%

Operating profit

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

Net sales(Millions of yen)

Food preservatives (left axis)

2,000

Pharmaceutical excipients (left axis)

20.0%

Operating profit margin (right axis)

1,500

15.0%

1,000

10.0%

500

5.0%

00.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2019FY2020

FY2021

FY2022

FY2023

FY2024

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Analysis of Change in Consolidated Operating Profit
 Gross profit increased YoY mainly because of higher machinery sales in Japan.
 Selling, general and administrative (SG&A) expenses increased by 320 million yen YoY. The
main reasons are higher operations consignment expenses and personnel expenses causedby one-time expenses for the core IT system update.
Gross profit(Millions of yen)
FY2023 1Q
Operating profit

(29)

85

FY2024 1Q
Operating profit(134)

Positive factors

Administrative
outsourcing
expenses

(264)

(128)

(19)
Personnel
expenses

R&D
expenses(39)
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9

Summary of Consolidated Balance Sheet Inventories (work in process) increased mainly in the U.S. subsidiaries, while tradereceivables were successfully collected.
 The equity ratio remains high at 58.1% even though net assets decreased mainly due tothe payment of dividends.
AssetsLiabilities and Shareholders' Equity(Millions of yen)Feb. 29,2024

May 31,2024

Current assets

18,537

18,135(401)

Current liabilities

9,920

9,779

(140)

Cash and deposits

4,736

4,603(133)

3,881

3,048(833)Trade receivables

7,058

5,721

(1,336)

Trade payables
Short-termborrowings

515

407

(107)

Inventories

5,815

6,813

997

Contract liabilities

3,932

4,894

962

Other assets

926

996

70

Other liabilities

1,592

1,429

(162)

Non-current assets

7,252

7,137(114)

Non-current liabilities

845

814(30)Total net assets

15,023

14,677(345)

Total liabilities and netassets

25,78925,272(516)

Total assets

25,78925,272

Change(516)(Millions of yen)Feb. 29,2024

May 31,2024

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Change10Topics: Our New Management Vision
On April 22, 2024, Freund celebrated the 60th anniversary of its founding. As one way tomark this accomplishment, we have established a new management vision for the FreundGroup, based on our corporate philosophy: paving the way to the future through creativity®.

Management Vision

Creating essential technologies
for a brighter tomorrow
At the FREUND Group, our mission is to build a healthier, more prosperous
future by contributing to the steady supply of pharmaceuticals, and providing
solutions for the freshness and safety of food. We deliver the knowledge and theproducts that can help solve diverse issues. By applying our creativity and ourtechnological capabilities to providing indispensable products and services topeople around the world, we are working to create a better tomorrow.

For further growth of our businesses and enhancement of corporate value, we are dedicated toconstantly creating new technologies and new forms of added value. We aim for our activities to createa healthy and fulfilling future for the customers of the Freund Group as well as for the patients andother users of our customers’ products.

Copyright (C) Freund Corp. All rights reserved.

11Inquiries:

Freund Corporation
Corporate Planning Division
Email: ir@freund.co.jp

IR website: https: //www.freund.co.jp
This presentation contains forward-looking statements involving plans, outlooks, strategies andpolicies. These statements reflect the judgments of management and assumptions based oninformation available at the time of this presentation. Actual results of operations may differ
from these statements for a number of reasons. Consequently, forecasts and other forwardlooking 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) Freund Corp. All rights reserved.

12