January 8, 2021

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2021
(Nine Months Ended November 30, 2020)[Japanese GAAP]
Listing: Tokyo (JASDAQ)
Freund Corporation
6312
URL: http://www.freund.co.jp
Iwao Fusejima, President & CEO
Masao Wakai, Director, Division Director, Corporate Planning Division
Tel: +81-3-6890-0750
Scheduled date of filing of Quarterly Report:
January 8, 2021
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
None
Holding of quarterly financial results meeting:Company name:Securities code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter (March 1, 2020 – November 30, 2020) of the
Fiscal Year Ending February 28, 2021
(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating profit

Million yen

Nine months ended Nov. 30, 2020
Nine months ended Nov. 30, 2019
Note: Comprehensive income

Million yen%

10,852(2.3)
391 320.4
435 290.9
277
11,110 (16.1)
93 (86.1)
111 (85.5)
37
Nine months ended Nov. 30, 2020:
160 million yen(-%)
Nine months ended Nov. 30, 2019:5 million yen(down 99.1%)
Net income per share Diluted net income per share

634.0(92.8)

Nine months ended Nov. 30, 2020
Nine months ended Nov. 30, 2019%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen

Yen

Yen

16.55
2.25

-

%

(2) Consolidated financial position
Total assets

Net assets

Million yen

As of Nov. 30, 2020
As of Feb. 29, 2020
Reference: Equity capital

Equity ratio

Million yen

19,45313,06918,505
13,243As of Nov. 30, 2020: 13,069 million yen

Net assets per share%

Yen

780.5267.2
790.94
71.6
As of Feb. 29, 2020: 13,243 million yen

2. Dividends
1Q-endDividend per share
3Q-end2Q-endYen

Yen

Year-end

Yen

Yen

Total
Yen

Fiscal year ended Feb. 29, 2020
0.00
20.00
20.00
Fiscal year ending Feb. 28, 2021
0.00
Fiscal year ending Feb. 28, 2021 (forecast)
20.00
20.00
Note: Revision to the most recently announced dividend forecast: Yes
Initially, there was no year-end dividend forecast for the fiscal year ending February 28, 2021. After taking into consideration
results of operations and other factors for the current fiscal year, the dividend forecast was revised to 20.00 yen per share .

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2021 (March 1, 2020 – February 28, 2021)
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%

Million yen%

Yen

Full year
17,800
6.1
1,000
79.1
1,000
Note: Revision to the most recently announced consolidated forecast: None

%

71.6

700

83.5

41.80

* 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: Yes
Note: Please refer to page 8 “(3) 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 Nov. 30, 2020:

18,400,000 shares

As of Feb. 29, 2020:

18,400,000 shares

As of Feb. 29, 2020:

1,655,480 shares

2) Number of treasury shares at the end of the period
As of Nov. 30, 2020:

1,655,480 shares

3) Average number of shares outstanding during the period
Nine months ended Nov. 30, 2020:

16,744,520 shares

Nine months ended Nov. 30, 2019: 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 Third Quarter of FY2/21

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) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

8Additional Information

8

Segment and Other Information

9

Business Combinations

11

3. Others

13

Orders and Sales

131Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, there was an unprecedented economic downturn in Japan in
April and May because of the global COVID-19 pandemic. Economic activity resumed after the state of
emergency ended and the Japanese economy has been recovering slowly.
However, the pace of this recovery is currently declining because of a third wave of COVID -19 infections inJapan. As a result, the outlook for the economy is uncertain.
The COVID-19 pandemic triggered a sharp economic downturn worldwide. Following this decline, the global
economy has been recovering at a moderate pace as each country took actions aimed at supporting theireconomies while controlling the spread of the pandemic. However, the outlook for the global economy has
become even more uncertain because of the renewed growth of COVID-19 cases.
In the pharmaceutical industry, which is the primary source of demand for Freund Group products, companies
must take actions in response to changes in the business climate. Changes include heightened measures to holddown healthcare expenditures, such as national health insurance drug price revisions and the increasing use ofgeneric drugs, and the rising cost of R&D programs as well as the associated risk. In addition, the benefits ofmeasures by the Japanese government to increase the use of generic drugs are declining, resulting in a slow
decline in the growth rate of the generic drug market.
The fiscal year ending in February 2021 is the first year of the Freund Group’s Eighth Medium -term Management
Plan covering the three-year period ending February 2023. This plan is centered on the themes of customers, newproducts, a global perspective and growth. In addition, the plan has the following seven goals.
1. Group solidarity and collaboration
2. Always use the customer’s perspective
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 Group operates. In the current
fiscal year, all group companies are working on reaching the consolidated targets of sales of 17,800 million yen
and an operating profit of 1,000 million yen.
Net sales decreased 2.3% year-over-year to 10,852 million yen, operating profit increased 320.4% to 391 million
yen, ordinary profit was up 290.9% to 435 million yen, and profit attributable to owners of parent increased
634.0% to 277 million yen.
Results by business segment were as follows.
Machinery Business Segment
In the machinery segment, where granulating and coating equipment are the main products, there was a small
decrease in sales as some export shipments were delayed because of the COVID-19 crisis. But operating profit
increased in part because a U.S. subsidiary received a COVID-19 subsidy of about 2.1 million dollars from the
U.S. government and every Freund Group company implemented cost-reduction measures.
As a result, net sales decreased 4.1% year-over-year to 6,472 million yen and segment profit was 357 million yen(compared with segment loss of 142 million yen in the same period of the previous fiscal year).

2

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

Chemicals Business Segment
Sales and operating profit for pharmaceutical excipients used for oral drugs declined in part because deliveries ofsome products were postponed.
Sales and operating profit of food preservatives also decreased. The main reason was lower sales of souvenirs fortourists and confectionery products at department stores because of the spread of COVID-19.
Sales and operating profit for the production of health food products for other companies increased as thesecompanies increased their inventories of these products.
As a result, net sales increased 0.4 % year-over-year to 4,379 million yen and segment profit decreased 38.0% to
404 million yen.
(2) Explanation of Financial Position
Total assets increased 948 million yen from the end of the previous fiscal year to 19,453 million yen at the end of
the third quarter. This mainly reflected increases of 1,089 million yen in goodwill, 624 million yen in work inprocess and 419 million yen in buildings and structures, net, while there was a decrease in notes and accounts
receivable-trade of 1,249 million yen.
Total liabilities increased 1,122 million yen from the end of the previous fiscal year to 6,384 million yen at theend of the third quarter. This mainly reflected increases of 969 million yen in advances received and 116 million
yen in retirement benefit liability.
Net assets decreased 174 million yen from the end of the previous fiscal year to 13,069 million yen at the end of
the third quarter.
(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, 2021, whichwere disclosed in the Consolidated Financial Results for the Fiscal Year Ended February 29, 2020 dated April 24,
2020.

3

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
Third quarter of FY2/21(As of Nov. 30, 2020)

FY2/20(As of Feb. 29, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
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
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

44,314,123
5,013,789
417,513647,754
1,390,426
1,013,444
139,944
261,804(5,471)
13,193,328

4,009,307
3,764,175
359,958
700,953
2,014,945
1,172,494
172,499524,374(9,864)
12,708,843

1,418,559
1,231,252
1,560,069
4,209,880

1,837,849
1,162,321
1,520,188
4,520,359

19,811
76,27096,081

1,089,673
19,97478,396
1,188,044

208,497
802,939(5,400)1,006,036
5,311,999
18,505,327

238,945
802,799(5,400)1,036,344
6,744,749
19,453,593

1,754,324
1,367,537
32,82961,729775,289
237,693

1,605,491
900,580
50,264
81,816
1,744,599
121,987

6,000

21,750788,516
5,023,920

1,131,057
5,657,547-

22,195

165,114
31,683
40,661
237,458
5,261,378

281,394
46,443
376,563726,596
6,384,144

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

FY2/20(As of Feb. 29, 2020)
Net assets
Shareholders’ equity
Share capital
Capital surplus(Thousands of yen)
Third quarter of FY2/21(As of Nov. 30, 2020)

1,035,600

1,035,600

1,289,513

1,289,513

Retained earnings
Treasury shares

11,964,299(773,363)

11,906,481(773,363)

Total shareholders’ equity

13,516,050

13,458,232

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

13,680

16,299Foreign currency translation adjustment(298,749)(417,265)

Remeasurements of defined benefit plans

12,967

12,181

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

5(272,101)(388,783)

13,243,948

13,069,448

18,505,327

19,453,593

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY2/20(Mar. 1, 2019 – Nov. 30, 2019)(Thousands of yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)

Net sales

11,110,801

10,852,320

Cost of sales

7,331,451

7,323,081

Gross profit

3,779,350

3,529,238

Selling, general and administrative expenses

3,686,287

3,138,004

93,062391,234

Operating profit
Non-operating income
Interest income

3,992

308

Dividend income

6,242

5,615

Technical support fee income

4,969

6,089

-

3,183

Compensation income
Insurance claim income-

21,809

Other

9,568

14,232

Total non-operating income

24,772

51,238243

359

Foreign exchange losses

2,607

4,479

Compensation expenses

1,623

-

Other

1,963

2,190

Total non-operating expenses

6,438

7,029

111,397435,443

Gain on sales of non-current assets

9,997

4,213

Gain on sales of investment securities

2,200

-

Total extraordinary income

12,197

4,213

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment loss

2,188

-

-

7,546

Loss on retirement of non-current assets

26,085

12,472

Loss on valuation of investment securities

875-

29,14820,019Profit before income taxes

94,446

419,637

Income taxes

56,697

142,564

Profit37,748277,072

Profit attributable to owners of parent

37,748277,072

Loss on sales of non-current assets

Total extraordinary losses

6Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY2/20(Mar. 1, 2019 – Nov. 30, 2019)(Thousands of yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)

37,748277,072(3,995)2,619(26,947)(118,515)

(852)

(785)

(31,795)(116,682)

5,953

160,390

5,953

160,390

ProfitOther 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 Third Quarter of FY2/21(3) 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
The COVID-19 pandemic is affecting the Freund Group’s operations as shipments of products in the Machinery
Business were delayed and sales of food preservatives in the Chemicals Business declined because of slow salesof confectionery products associated with closings and reduced operating hours of amusement parks anddepartment stores.
The enormous negative effects of the COVID-19 pandemic on economic and social activities are having asignificant impact on the business activities of the Freund Group. Furthermore, this crisis is likely to continue
longer than was initially expected. Based on the assumption that this crisis will continue to affect businessactivities in the fiscal year ending in February 2022, the decision was made to make revisions to accounting
estimates for impairment losses on non-current assets, the recoverability of deferred tax assets and other items.

8

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

Segment and Other Information
Segment information
I First nine months of FY2/20 (Mar. 1, 2019 – Nov. 30, 2019)
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 (loss)

6,749,900

4,360,900

11,110,801-

11,110,801

-

-

-

-

-

6,749,900

4,360,900

11,110,801-

11,110,801(142,204)

652,630

510,426(417,363)

93,062

Notes: 1. Contents of adjustments are as follows.
The negative adjustment of 417,363 thousand yen to segment profit (loss) includes corporate expenses that are notallocated to any of the reportable segments. Corporate expenses mainly consist of general and adminis trative
expenses that are not attributable to any of the reportable segments.
2. Segment profit (loss) is adjusted to be consistent with operating profit recorded in the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
The Company has recognized impairment losses related to non-current assets of 203 thousand yen in the
Machinery Business segment and 1,984 thousand yen in the Chemicals Business segment.
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

EuropeOther8,514,237
1,188,351
535,034
307,249
565,929
Notes: 1. Classification of net sales is based on the location of the client and categorized by country or region.

Total
11,110,801

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, UK, etc.

(3) Other:

Asia, etc.

9Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

II First nine months of FY2/21 (Mar. 1, 2020 – Nov. 30, 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

6,472,383

4,379,937

10,852,320-

10,852,320

-

-

-

-

-

Total

6,472,383

4,379,937

10,852,320-

10,852,320

Segment profit
357,397
Notes: 1. Contents of adjustments are as follows.

404,946

762,344(371,110)

391,234

The negative adjustment of 371,110 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
Significant change in goodwill
In the third quarter of FY2/21 Freund acquired Cos.Mec S.r.l., which made this company and its subsidiaryconsolidated subsidiaries. This acquisition resulted in goodwill of 1,089,673 thousand yen in the Machinery
Business segment.
This is a provisional figure for goodwill that will be finalized later because the allocation of the cost of thisacquisition had not been completed as of the end of the third quarter.
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

8,454,746

Latin America

789,429

Europe191,561

363,566

Other

Total

1,053,015

10,852,320

Notes: 1. Classification of net sales is based on the location of the client and cat egorized 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, UK, etc.

(3) Other:

Asia, etc.

10Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

Business Combinations
1. Summary of business combination(1) Acquired companies and their business activities
Acquired companies: Cos.Mec S.r.l. and its subsidiaryBusiness activities:
Producing and selling pharmaceutical manufacturing devices(2) Reasons for acquisition
Freund is guided by the management vision of contribution to better medical care and health for people
worldwide and creating and utilizing technologies for fulfilling lives and food safety. In March 2020, Freund
started its Eighth Medium-term Management Plan, which includes the goals of managing operations on a global
scale and taking strategic actions for growth.
The Japanese pharmaceutical market is expected to continue growing steadily as the population ages. However,pharmaceutical sales in emerging countries are projected to increase faster than in countries with advanced
economies because of rising populations and the growing demand for pharmaceuticals.
Following an examination that took these factors into consideration about the acquisition of Cos.Mec, amanufacturer of pharmaceutical production machinery in Italy, Freund reached the decision to sign a contract
for the acquisition of this company.
Purposes and reasons of acquiring Cos.Mec
There is very little duplication between the products of the Freund Group and those of Cos.Mec. In addition,ause of the Freund Group’s sales network is expected to increase sales of Cos.Mec pharmaceuticalintermediate handling and processing machinery, which are widely used in the pharmaceutical industry.
Freund also believes that the Cos.Mec sales network can increase sales of the Freund Group’s granulation andcoating machinery, which are two of the group’s core products.

b

Most of the customers of Cos. Mec and the Freund Group are located in different countries and regions. This
will make it possible to cross-sell the products of the two companies.

c

Backed by 30 years of experience, Cos.Mec is highly cost competitive and manufactures its machineryinternally, resulting in consistently strong sales and earnings.
Acquiring Cos.Mec gives the Freund Group sound positions in Japan (Freund Corporation), the United Statesd(Freund-Vector Corporation) and Europe (Cos.Mec). With these three bases, the Freund Group is even better
positioned to sell products worldwide, including emerging countries.

(3) Acquisition dateNovember 5, 2020 (acquisition of equity interests)
September 30, 2020 (assumed acquisition date)(4) Legal form of acquisition
Acquisition of equity interests with cash.
(5) Company’s name after acquisition
There is no change in the company’s name.
(6) Percentage of voting rights acquired
100%(7) Basis for choosing the company to acquire
Freund acquired the equity interests in exchange for cash.

11Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

2. Period of the acquired companies’ performance included in the consolidated financial statements
Cos.Mec and its subsidiary are included only in the consolidated balance sheet at the end o f the third quarter andare not included in the consolidated statement of income for the first nine months of the current fiscal year. Thisis because the assumed acquisition date of September 30, 2020 is not more than three months prior to the end of
the third quarter.
3. Acquisition cost of acquired company and breakdown by type of consideration
Payment for the acquisition:

Cash

Acquisition cost:

9,750,000 euros (1,192,425,000 yen)
9,750,000 euros (1,192,425,000 yen)This acquisition cost is a provisional figure. The final acquisition cost may be different because of thepossibility of adjustments to the price. The euro-denominated figures are converted into yen at the exchange
rate on November 5, 2020.
4. Goodwill resulting from the acquisition(1) Value of goodwill
8,775,000 euros (1,089,673,000 yen)This is a provisional figure for goodwill that will be finalized later because the allocation of the cost of thisacquisition had not been completed as of the end of the third quarter.
(2) Source of goodwill
The source is primarily the expectation of excess earnings power emerging from business development in the
future.
(3) Amortization method and amortization period
Goodwill is amortized over ten years by the straight-line method.

12

Freund Corporation (6312) Financial Results for the Third Quarter of FY2/21

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

First nine months of FY2/20(Mar. 1, 2019 – Nov. 30, 2019)
AmountYear-on-year (%)(Thousands of yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)
AmountYear-on-year (%)

Machinery Business
7,208,524
83.6
9,084,141
126.0
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.
4. The above amounts do not include orders received in Cos.Mec.

(2) Order backlog
Operating segment

First nine months of FY2/20(Mar. 1, 2019 – Nov. 30, 2019)
AmountYear-on-year (%)(Thousands of yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)
AmountYear-on-year (%)

Machinery Business
5,994,478
103.0
7,389,756
123.3
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.
4. The above amounts do not include order backlog in Cos.Mec.

(3) Sales
Operating segment

First nine months of FY2/20(Mar. 1, 2019 – Nov. 30, 2019)
AmountComposition (%)(Thousands of yen)First nine months of FY2/21(Mar. 1, 2020 – Nov. 30, 2020)
AmountComposition (%)

Machinery Business

6,749,900

60.8

6,472,383

59.6

Chemicals Business

4,360,900

39.2

4,379,937

40.4

Total
11,110,801
100.0
10,852,320
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 ofreaders who prefer an English translation.

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