Selected by the Japanese Ministry of Economy,...
45
(Securities code: 6312) Results of Operations for the Fiscal Year Ended February 28, 2015 (FY2/15) April 16, 2015 Selected by the Japanese Ministry of Economy, Trade and Industry as a Global Niche Top 100 Company
Transcript of Selected by the Japanese Ministry of Economy,...
(Securities code: 6312)
Results of Operations for the Fiscal Year Ended February 28, 2015 (FY2/15)
April 16, 2015
Selected by the Japanese Ministry of Economy, Trade and Industry as a Global Niche Top 100 Company
1
Table of Contents
< Supplementary Materials > P32
I. Company Overview P2
II. Progress in the Medium-term Management Plan P6
III.
Financial Summary for FY2/15
P17
IV. Earnings Forecasts for FY2/16 P28
Ryujiro Fusejima, Director & General Manager, Corporate Administration Division
Iwao Fusejima, President & COO
2
I. Company Overview
3
(FY2/15)
Consolidated sales: ¥17,420 million Consolidated operating income: ¥1,150 million
Our “Pen” (Machinery and Equipment) and “Ink” (Pharmaceutical Excipients) Business Model
Machinery Chemical & Food
Net sales
Segment profit
Machinery Business Segment Composition of Net Sales
and Profit by Segment
Chemical and Food Business Segment
Manufacturing and sales of granulation and coating equipment for the
pharmaceutical, food, and fine chemical industries.
For coating equipment, Freund ranks first in Japan and sales growth is
accelerating in Asian market and in Freund-Vector’s U.S. and European
operations. No other company in the world has expertise in both drug
formulation technologies and the associated machinery.
Aiming to increase sales of machinery for industrial applications too by
combining granulating and coating technologies with milling and sieving
technologies.
Manufacturing and sales of pharmaceutical excipients, food preservatives,
nutritional supplements, and others.
Freund uses Good Manufacturing Practice (GMP) compliant equipment
to produce pharmaceutical excipients.
Food preservatives made by Freund help ensure the safety of food by
maintaining the quality of many types of products.
By using its granulating and coating technologies, Freund has worked
with customers to develop and commercialize nutritional supplements
and seamless mini-capsules.
70%
30%
63% 37%
4
Strengths of the Freund Group
Freund-Turbo Corporation
Granulating and coating technologies and Freund-Turbo’s milling and sieving technologies mutually complement each other as powder processing technologies. And by fusing these two technologies, a wide range of applications in the realm of powder processing technology can be provided.
+ +
Freund Corporation
Freund Corporation provides products that accurately match the needs of customers by sharing information between the two business segments of the machinery business and
chemical and food business.
Freund-Vector Corporation The Pharmaceutical Business Model
Speeding up the development of new products
Quickly identifying market needs through the sharing of information on a global scale
Granulating equipment Coating equipment
Excipients Film coating liquids
Granulating Drying, grading Coating Tablet press
Blending, kneading
Milling, sieving Printing
Active pharmaceutical
ingredient Packing Tablet
Printing equipment
Ink
+
5
: Locations with service technicians
(North America, Latin America, Europe/Middle East) (Asia)
25%
Two Bases for Global Growth
Selected by the Japanese Ministry of Economy, Trade and Industry as a Global Niche Top 100 Company
Overseas sales (FY2/15)
Freund Corporation Freund-Vector Corporation
: Demonstration center
6
II. Progress in the Medium-term Management Plan
7
The Sixth Medium-term Management Plan
Medium to long-term targets
Operating margin 10%
ROE 8% or more
Change & Challenge for a second founding to become
a 100-year company.
Overseas sales ratio 40%
8
Targets for FY2/17
(Millions of yen) (Millions of yen)
Op
erating in
com
e
Net sales
Net sales: ¥23.0 billion Operating income: ¥2.3 billion (Foreign exchange rate assumptions: 1 USD=¥100 1 EURO=¥145)
FY2/17 Targets
1st Medium-term Management Plan
2nd Medium-term Management Plan
3rd Medium-term Management Plan
4th Medium-term Management Plan
5th Medium-term Management Plan
Taking On the Challenge of Globalization
Business Restructuring
and Establishment of Strategic Objectives
Expansion of Scale, Improvement of Operations and Management
Yusho 21 Plan
Gaining Superiority over Competitors
through the Dynamism
of Our Group
6th Medium-term Management Plan
Realization of Growth through Creativity and the Achievement of a
Lean Business Structure
FY2/00 FY2/01 FY2/02 FY2/03 FY2/04 FY2/05 FY2/06 FY2/07 FY2/08 FY2/09 FY2/10 FY2/11 FY2/12 FY2/13 FY2/14 FY2/15 FY2/16 FY2/17 Forecast Target
9
Realization of growth through creativity
One for All, All for One
Build a framework for growth that is not overly reliant on the growth of markets
Use extensive measures for expansion outside Japan
Use the group’s resources effectively to develop products faster and make the product lineup even more competitive
Enlarge and upgrade the product lineup
Establish a culture of taking on challenges and develop the skills of employees
Make more improvements with development and manufacturing processes
Make organizational changes aimed at maximizing corporate value
Maximize earnings by implementing comprehensive cost reductions
Basic Theme of Our Business Strategy
Achievement of a lean business structure
Basic Strategy
10
Japan: Become more competitive Asia: Focus on growth in China and India Americas: Priorities are building ties with new customers and selling new products Europe: Strengthen marketing capabilities in European and Middle Eastern countries with
many generic drug manufacturers (the “Smiley Area”) Industrial machinery: Supply more food/health-sector machinery and machinery for battery manufacturers Development: Create products that match customers’ needs and speed up development
activities Manufacturing: Enlarge the Freund-Vector factory and consider starting the production of parts
outside Japan
Machinery
FY 2/14
Pharmaceutical machinery in Japan
Overseas Pharmaceutical machinery in Japan
Industrial machinery
Overseas
New businesses
Plan for FY 2/17
¥11.0 billion ¥14.2 billion
Machinery Business Strategic Objectives
・・・ Grow faster worldwide and strengthen product development activities
Industrial machinery
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Pharmaceutical excipients
Food preservatives
New food products
Pharmaceutical excipients
Food preservatives
New food products
New businesses
FY2/14 Plan for FY2/17
¥6.6 billion ¥8.8 billion
Pharmaceutical excipients: Target opportunities involving both new and generic drugs
Nutritional supplements: Capture more orders for current products and start new businesses
Food preservatives: Enlarge the product lineup and reinforce sales activities
Development: Move faster with the goal of at least one new product every year
Manufacturing: Cut costs by consolidating production facilities and using production lines for many products
Chemical and Food
Chemical and Food Business Strategic Objectives
・・・ Introduce more new products and make current products more competitive
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Pharmaceutical sales ranking (Source: IMS Health)
2003 2011 2016 forecast
1 USA USA USA
2 Japan Japan China
3 Germany China Japan
4 France Germany Brazil
5 Italy France Germany
6 UK Brazil France
7 Spain Italy Italy
8 Canada Spain India
9 China Canada Russia
10 Brazil UK Canada
The rapid growth of emerging countries “Smiley Area”
Areas targeted for growth
• Operations started at the Milan demonstration center and laboratory (Nov. 2014)
• Expansion of Freund-Vector Corp. factory
• Started selling the products of Freund-Turbo Corp.
• Company’s president acting as a primal sales person to expand the market in Brazil
• Joint sales activities with the sales agent in India • Received orders for manufacturing equipment from
companies in India
• Looking for new sales agents in South Korea
• Sales activities in China centered on operations of Japanese companies
Highlights of FY2/15 (1)
Major activities in overseas markets
13
Developed a concept model of the Granuformer® continuous granulating device
Started sales of a high-speed granulation model of the FLOW COATER fluid bed granulation drying and coating device
Developed new products in the industrial machinery category to pursue opportunities in new business fields
Freund-Turbo opened its Shinagawa Sales Office in Tokyo
Started sales of Granutol® F (Fine)
Completed the centralization of food preservative production base at Hamamatsu
Highlights of FY2/15 (2)
Measures for new product development and a lean business structure
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Asia
Japan
(1) Orders (2) New products
V-Turbo® Granulator
• This unit pulverizes materials by using air currents generated by the high-speed granulation disk and the impact of the materials on the surfaces between the liners. The speed of the internal sieving rotor can be adjusted to produce particles of the desired size.
• Circulating and pulverizing while mixing with air lowers heat generated by granulation, enabling this unit to be used to granulize heat-sensitive materials used in food and other products.
Granuformer®, continuous granulating device
• The first continuous granulating device developed in Japan
• A spiral dryer makes it possible to perform continuous granulation
• Contributes to higher quality and productivity when manufacturing pharmaceuticals
The high-speed granulation FLOW COATER, a fluid bed granulation drying and coating device
• Uses a new granulation process • Optimizes agitation and mixing
performance • Big reduction in length of spraying process
Medium-term Plan Progress Report (Orders and new product development)
Performance
Americas
Europe and others
(Millions of yen)
Asia Americas
Europe and others
Japan
FY2/14 FY2/15
15
FLOW COATER 12 Bar Fluid bed granulation dryer with no
explosion release outlet
• This unit is capable of containing very high pressures even in the unlikely event of an explosion.
• Prior models required an explosion release outlet in accordance with labor health and safety regulations. Freund has delivered to a major pharmaceutical company Japan’s first granulation and drying unit approved by the Ministry of Health, Labour and Welfare to have no explosion release outlet.
• This unit sorts particulate materials with high efficiency.
Development Sales
GRANUREX® F F / F-V
SPHEREX® F F / F-V
Compu 4 (control system) F-V F / F-V
FLOW COATER 12bar F-V F / F-V
Turbo screener F.T F.T / F-V
F: Freund Corporation F-V: Freund-Vector Corporation F.T: Freund-Turbo Corporation
Turbo Screener
HICOATER FZ
• Cuts production time by 30%
Medium-term Plan Progress Report (Effective use of group resources)
Collaboration for products
GRANUREX®
• Capable of precisely coating particles and powders, this unit is ideal for the production of DDS pharmaceuticals.
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Priorities of the fiscal year ending in February 2016
Expand activities to capture more orders outside Japan
Increase measures to combine technologies of the Freund Group
Launch new products and enlarge the product lineup
Seek more synergies with the industrial machinery business
Start full-scale operation of a maintenance business
Strengthen activities for selling pharmaceutical excipients to generic drug makers
Optimize production lines for food preservatives
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III. Financial Summary for FY2/15
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Financial Highlights
Sales down 1% due to lower sales in some industrial machinery categories
Cost reductions raised gross profit but operating income was down because of higher SG&A expenses
FY 2/14 FY 2/15 YoY change
Results Results Amount %
Net sales 17,616 17,424 (192) (1.1)
Operating income 1,286 1,150 (136) (10.6)
Ordinary income 1,341 1,249 (92) (6.9)
Net income 787 695 (91) (11.7)
Earnings per share (yen) 91.37 80.72 (10.65)
Capital expenditure 477 545 +68
Depreciation 303 308 +4
R&D expenses 464 592 +128
(Millions of yen)
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Trends in Machinery Business Segment
(Millions of yen)
FY 2/14 FY 2/15
Amount YoY change
(%) Amount
YoY change (%)
Orders received 10,067 +8.6% 12,407 +23.2%
Order backlog 4,991 (5.2)% 6,682 +33.9%
Net sales 11,004 +11.0% 10,941 (0.6)%
Pharmaceutical machinery 9,737 +18.1% 9,945 +2.1%
Industrial machinery 1,267 (23.9)% 996 (21.3)%
Segment profit 1,242 +6.0% 1,108 (10.8)%
Yen/dollar rate (+ is yen depreciation)
97.7 +17.9 105.8 +8.1
Pharmaceutical machinery orders were higher in Japan and Asia
Operating income down as pharmaceutical machinery sector strength did not offset weakness in the industrial machinery sector
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0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Orders received
Order backlog
FY 2/12 FY 2/13 FY 2/14 FY 2/15
(Millions of yen) A consistently high order backlog
Machinery Business: Orders Received and Order Backlog
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FY2/14 FY2/15
Amount YoY change Amount YoY change
Net sales 11,004 +11.0% 10,941 (0.6)%
Freund Corporation 7,081 +0.8% 6,887 (2.7)%
Freund-Vector Corporation 3,873 +30.5% 3,905 +0.8%
Freund-Turbo Corporation 782 (23.5)% 999 +27.7%
Operating income 1,242 +6.0% 1,108 (10.8)%
Major subsidiaries
Freund-Vector Corporation 184 +15.0% 291 +58.2%
Freund-Turbo Corporation (8) - (12) -
Sales by geographic region
Japan 6,652 +4.2% 6,638 (0.2)%
North/Latin America 2,883 +64.0% 2,664 (7.6)%
Europe/Africa 702 (8.7)% 440 (37.3)%
Middle East/Asia/Oceania 766 (23.6)% 1,197 +56.3%
(Millions of yen)
Machinery Business: Group Company Performance Freund-Vector performance did not meet the targets because of weak U.S. market
conditions
There was a delay in the recovery of the industrial machinery market
22
Trends in Chemical and Food Business
(Millions of yen)
FY2/14 FY2/15
Amount YoY change Amount YoY change
Net sales 6,611 +2.0% 6,482 (2.0)%
Pharmaceutical excipients 1,971 (3.4)% 2,135 +8.3%
Food preservatives 1,916 +1.4% 1,952 +1.9%
Supplements and other new products
2,723 +6.7% 2,394 (12.1)%
Segment profit 379 (32.9)% 474 +25.1%
Yen/euro rate (+ is yen depreciation)
129.8 +27.2 140.4 +10.6
Production cuts for some excipients but higher excipient sales for generic drugs
New food product sales down due to production cuts by some users
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FY2/14 FY2/15
Amount YoY change Amount YoY change
Net sales 6,611 +2.0% 6,482 (2.0)%
Freund Corporation 6,612 +2.0% 6,476 (2.1)%
Freund Kasei 1,405 +8.5% - -
Freund Pharmatec - - 6 -
(Export sales) 31 (52.3)% 65 +109.7%
Operating income 379 (32.9)% 474 +25.1%
Major subsidiaries
Freund Kasei 33 - - -
Freund Pharmatec (188) (40.3)% (190) (1.1)%
(Millions of yen)
Note: Freund Kasei merged with Freund on March 1, 2014.
Chemical and Food Business: Group Company Performance
Absorbed Freund Kasei in association with centralization of production lines in Hamamatsu
Loss at Freund Pharmatec because of the weaker yen and R&D expenses
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Summary of Statement of Income
(Millions of yen)
FY2/14 FY2/15 YoY change
Amount Share(%) Amount Share(%) Amount %
Net sales 17,616 100.0 17,424 100.0 (192) (1.1)
Cost of sales 12,377 70.3 11,978 68.7 (399) (3.2)
Gross profit 5,238 29.7 5,445 31.3 +207 +4.0
SG&A expenses 3,952 22.4 4,295 24.7 +343 +8.7
Operating income 1,286 7.3 1,150 6.6 (136) (10.6)
Non-operating income (expenses)
55 0.3 99 0.6 +43 +79.1
Ordinary income 1,341 7.6 1,249 7.2 (92) (6.9)
Extraordinary income (losses)
(18) (0.1) 3 0.0 +21 -
Income before income taxes and minority interests
1,323 7.5 1,253 7.2 (70) (5.3)
Net income 787 4.4 695 4.0 (91) (11.7)
Extraordinary income (losses) • Extraordinary losses 23→6
Non-operating income (expenses) • Non-operating income
60→106 • Non-operating expenses
5→ 7
25
Changes in Operating Income
(Millions of yen)
FY2/14
1,286 1,150
Other expenses,
etc.
～～～～
FY2/15
+207
Higher gross profit
Po
sitive factors
Depreciation under SG&A
expenses Costs for the 50th
anniversary
R&D expenses
(128)
Operating income benefited from higher sales of pharmaceutical machinery in Japan, but this was offset by growth in R&D expenses, depreciation and other SG&A expenses.
+12
(107) (120)
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Summary of Balance Sheet (Millions of yen)
Feb. 28, 2014 Feb. 28, 2015 Change
Current assets 11,331 12,782 +1,451
Cash and deposits 4,600 4,870 +270
Accounts receivable*1 4,409 5,272 +863
Inventories 1,675 1,771 +96
Non-current assets 4,219 4,495 +276
Property, plant and equipment 3,052 3,403 +351
Intangible assets 178 146 (32)
Investments and other assets 988 944 (44)
Total assets 15,550 17,277 +1,727
Current liabilities 4,402 5,427 +1,025
Accounts payable*1 2,386 2,786 +400
Advances received 926 1,242 +316
Non-current liabilities 754 669 (85)
Net defined benefit liability*2 176 187 +11
Negative goodwill 26 18 (7)
Total liabilities 5,157 6,097 +940
Total net assets 10,392 11,180 +788
・Net income 695 Equity ratio 65.8%→63.6%
• Construction in progress +284
• Merchandise and finished goods +94
• Work in process (5)
• Raw materials and supplies +7
*1: Includes electronically recorded monetary claims and obligations - operating *2: Provision for retirement benefits as of February 28, 2014
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Summary of Statement of Cash Flows
FY2/14 FY2/15
Cash flows from operating activities 1,227 822
Income before income taxes and minority interests 1,323 1,253
Depreciation 303 308
Foreign exchange losses (gains) (23) (44)
Decrease (increase) in notes and accounts receivable-trade 453 (781)
Decrease (increase) in inventories 552 12
Increase (decrease) in advances received (447) 252
Increase (decrease) in notes and accounts payable-trade (113) 345
Income taxes paid and others (748) (358)
Cash flows from investing activities (423) (240)
Purchase of property, plant and equipment (264) (453)
Cash flows from financing activities (226) (284)
Net increase (decrease) in interest-bearing debt (59) (63)
Cash dividends paid (172) (215)
Net increase (decrease) in cash and cash equivalents 719 440
Cash and cash equivalents at end of period 4,107 4,548
(Millions of yen)
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IV. Earnings Forecasts for FY2/16
29
Forecast for FY2/16
FY2/15 FY2/16 (Forecast) YoY change
(Millions of yen) (Millions of yen) (Millions of yen) %
Net sales 17,424 18,500 +1,076 +6.2
Operating income 1,150 1,350 +200 +17.4
Ordinary income 1,249 1,370 +121 +9.6
Net income 695 800 +105 +14.9
Earnings per share (yen) 80.72 92.78 +12.06
Capital expenditure 545 600 +55
Depreciation 308 325 +17
R&D expenses 592 600 +8
Forecast recoveries in sales and earnings as growth in the machinery business outweighs a decline in the chemical and food business
30
Segment Forecasts
(Millions of yen)
FY2/15 FY2/16 (Forecast) YoY change
Amount Share(%) Amount Share(%) (Millions of
yen) %
Consolidated sales 17,424 100.0 18,500 100.0 +1,076 +6.2
Machinery 10,941 62.8 13,000 70.3 +2,059 +18.8
Chemical & Food 6,482 37.2 5,500 29.7 (982) (15.1)
Segment profit 1,150 100.0 1,350 100.0 +200 +17.4
Machinery 1,108 96.3 NA - - -
Chemical & Food 474 41.2 NA - - -
Elimination or corporate (432) (37.6) NA - - -
Yen/dollar rate (+ is yen appreciation)
105.8 - 120.0 - +14.2 -
In the machinery business, planning on double-digit sales growth in Japan and Asia
In the chemical & food business, expect a continuation of production cuts at some users to affect new food products
31
Shareholder Returns
• Maximizing shareholder value is the highest priority of the Freund. The policy is to use the benefits of higher shareholder value for earnings distributions to shareholders while retaining earnings for making the company stronger in order to adapt swiftly and properly to changes in the operating environment.
• The basic policy for the distribution of earnings is to make distributions based on results of operations. The target for the annual consolidated dividend payout ratio is 30%. We seek to maintain a stable distribution while taking into account the need for retained earnings in order to build a stronger base of operations and take actions aimed at growth.
• Plan to pay a dividend of 25 yen per share for the fiscal year ending on February 29, 2016.
32
(Supplementary Materials )
1. Company Overview 2. Segment Information 3. Quarterly Performance 4. Financial Summary
33
Company Overview
Company name
Established
Representative
Location
Paid-in capital
Sales
Number of employees
Business
Subsidiaries
: Freund Corporation
: April 1964
: Iwao Fusejima, President & COO
: 1-3-21 Okubo, Shinjuku-ku, Tokyo, Japan
: 1,035,600,000 yen (As of February 28, 2015)
: 17,420 million yen (Fiscal year ended February 2015, consolidated)
: 370 (As of February 28, 2015, consolidated)
: Machinery business- Manufacturing and sales of granulation and coating
equipment and others
Chemical & food business- Manufacturing and sales of pharmaceutical excipients, food preservatives, and others
: Freund-Vector Corporation, Freund Pharmatec Ltd., Freund-Turbo Corporation
34
The Freund Group
Using innovative technologies for rapid growth outside Japan
Development of pharmaceutical formulation technologies
Manufacture and sales of powder processing
equipment
Import
Technological alliance
Domestic users
Sales of machinery
Sales of chemical and food products
機械装置の販売
Freund-Vector Corporation
Overseas manufacturers
Freund-Turbo Corporation
Freund Pharmatec
Ltd. Overseas users
Sales of machinery Sales of chemical
and food products
Freund Corporation
Freund-Turbo Corporation
Freund Pharmatec Ltd.
Freund-Vector Corporation
Research and Development Laboratories
35
34%
15% 12% 8%
31%
31%
13% 9% 15%
33%
米国 ＥＵ5 日本 中国 その他
2012
$965 billion
2017 Outlook
$230-260 billion
$1,170-1,200 billion
2012 2017 Composition of growth in sales
Market Outlook for the Sixth Medium-term Management Plan
Source: IMS Market Prognosis, September 2013
Pharmaceutical markets are growing rapidly in emerging countries
Others
China
USA
EU5
Japan
41%
34%
6% 3%
16% (Forecast for regional pharmaceutical market share)
USA EU5 Others China Japan
36
Main Products are Granulating and Coating Equipment for Pharmaceutical Companies
In the machinery business, pharmaceutical machinery is 91% of sales and industrial machinery is 9%.
Granulating and coating equipment for pharmaceutical companies are the core products.
Industrial machinery is another important part of this business.
Sales Composition (FY2/15)
Automated tablet coating device
(HICOATER FZ)
Resistant fluid bed granulation device
(FLOW COATER)
FY2/15 Sales ¥10,941 million
Pharmaceutical 91%
Industrial machinery
9%
Machinery
Seamless mini-capsule device
(SPHEREX®)
37
(Millions of yen) (Millions of yen)
Freund Corporation
(Millions of yen)
Orders
Order backlog
Japan 91%
Export 9%
FY2/15 ¥6,887 million
Orders Sales
Pharmaceutical machinery is the main source of growth.
Orders for pharmaceutical machinery are strong in Japan and Asia.
Net Sales by Region
Machinery
FY2/11 FY2/12 FY2/13 FY2/14 FY2/15 FY2/11 FY2/12 FY2/13 FY2/14 FY2/15
38
Freund-Vector Corporation
Orders
(M$)
Orders
Order backlog
Sales
Expanded the factory
Operations started as planned at the Milan Demonstration Center Laboratory in November 2014
High-profile promotional activities at the ACHEMA process industries world forum in Germany in June 2014
(M$) (M$)
Latin America/Canada 32%
FY12/15 $37 million
USA 39%
Europe, etc. 30%
Net Sales by Region
Machinery
FY2/11 FY2/12 FY2/13 FY2/14 FY2/10 FY2/11 FY2/12 FY2/13 FY2/14 FY2/10
39
A Growing Product Lineup for the Healthcare Sector
Pharmaceutical excipients • Directly compressible mannitol/lactose • Spherical granules • Adsorbent/solidified agents/fluidized agents • White coloring agents • Lubricant agents • Luster agents • Excipients
Food preservatives • Food excipients • Food quality preserving agents
Nutritional supplements/others • Seamless mini capsule • AQ shelax® (aqueous liquid) • Supplements • Coenzyme Q10 (40% water-dispersible powder)
Chemical & Food
About one-third of sales is pharmaceutical excipients, food preservatives, nutritional supplements and other products made for other companies
Sales of pharmaceutical excipients for generic drugs continue to increase Strong orders for the manufacture of nutritional supplements for other companies
40
Chemical & Food Business Performance
Pharmaceutical excipients
33%
Food preservatives 30%
Supplements and
other new products
37%
FY2/15 Sales ¥6,482 million
Sales Composition Sales
(Millions of yen)
Strong sales of pharmaceutical excipients to manufacturers of generic drugs Launched new food preservative products
Chemical & Food
FY2/11 FY2/12 FY2/13 FY2/14 FY2/15
41
Aiming for quick practical applications for fine particle-DDS drug formulation technologies
Benefiting from the greatest possible amount of synergies with Freund-Vector
Utilize the mutually complementary technologies of Freund and Freund-Turbo
Leveraging the Group’s Strengths to Develop New Products Faster
Freund Pharmatec Freund-Vector Freund-Turbo
Currently developing in Europe DDS
drug formulation technologies by using
spherical particles, which have a
relatively small surface area and allow
easy control of membrane thickness,
and the seamless mini-capsule
technology, an exclusive technique
created by Freund Pharmatec.
Approved for Good Manufacturing
Practice (GMP) in July 2011.
Sharing information on a global scale to be the first to identify market needs. Speeding up the development of new products by combining Freund’s development skills with the design and manufacturing skills of Freund-Vector.
Granulating and coating technologies and Freund-Turbo’s milling and sieving technologies mutually complement each other as powder processing technologies. And by fusing these two technologies, a wide range of applications in the realm of powder processing technology can be provided.
& &
Note: DDS (Drug Delivery System)
R&D
42
Creating Innovative Products for 50 Years
R&D
Machinery Chemical & Food 1964 Automatic film coating device Film coating liquid 1965 HPC, HPS 1966 Perfiller®-101, Lubriwax®-101 1967 CMEC® 1969 Fluid bed granulation coating device FLOW COATER 1970 Dry process granulation device ROLLER COMPACTOR 1971 Automatic sugar/film coating device HICOATER® 1972 Food preservative for strawberries Antimold®-101 1975 Centrifugal fluid coating granulation device CF-Granulator Pharmaceutical excipient Dilactose® 1978 Food preservative Antimold®-102 1981 Hybrid fluid bed granulation coating device SPIR-A-FLOW® Pharmaceutical excipient NONPAREIL®-101 1982 Pharmaceutical excipient NONPAREIL®-103 1983 Water activity measurement device 1987 Multi-functional food preservative Negamold® 1988 Aqueous coating device AQUA COATER® Nutritional supplement Active Gingko Leaf Extract 1990 Pharmaceutical production process automatic control system Phamatronics® 1991 Seamless mini-capsule device SPHEREX® Pharmaceutical excipient NONPAREIL®-105 1994 Particle form measurement device Granutronics® 2000 Centrifugal rolling granulation coating device GRANUREX® 2001 Rotary-type fluid bed granulation dryer TECTRANSOR® 2002 Sustained ethanol evaporation food preservative Antimold® Tender 2003 Food coating base AQ shelax®, food additive Perfiller®102 2005 Twin screw drying granulator ROLLER COMPACTOR
Automatic anti-mold detector Antimold® Detector
2006 Fully automatic coating system for food and nutritional supplements HICOATER FPC
Pharmaceutical excipient NONPAREIL®-108, pharmaceutical excipient Polishing Wax-105
Food additive Polishing Wax-104 2008 Development of chitosan coating technology
Automatic tablet coating device HICOATER FZ 2009 Fluid bed granulation coating device FLOW COATER Universal
Powder and granular material transportation container washing device Container Washing Device
2010 High-speed agitation granulation device GRANUMEIST® Pharmaceutical excipient Granutol® Wet/dry process granulator Millmeist Food additive FOODSGURD®
2012 Food preservatives Negamold® Natural, Light 2013 Food additives Maltitol Granule®, Isomalt Granule®
Direct compressible lactose Dilactose®F (Fine) 2014 Tablet printer TABREX®
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Quarterly Performance
FY2/13 FY2/14 FY2/15
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Machinery orders 2,699 1,998 2,002 2,572 3,026 2,491 2,696 1,853 3,648 2,549 3,016 3,192
Machinery order backlog 5,260 4,938 4,883 5,263 5,440 5,328 6,144 4,991 6,945 7,235 7,225 6,678
Consolidated sales 4,728 3,950 3,886 3,830 4,656 4,224 3,545 5,189 3,506 3,864 4,641 5,413
Machinery 3,240 2,376 2,078 2,219 3,048 2,684 1,933 3,337 1,794 2,249 3,106 3,792
Chemical & Food 1,487 1,574 1,808 1,611 1,608 1,540 1,611 1,851 1,711 1,617 1,534 1.620
Consolidated segment profit
494 399 347 228 562 281 156 286 (20) 121 484 565
Machinery 419 309 234 209 496 262 166 316 47 78 487 496
Chemical & Food 142 156 180 85 162 94 67 54 80 113 129 151
Elimination or corporate (68) (66) (69) (65) (97) (74) (78) (85) (149) (68) (132) (83)
Yen/dollar rate 79.3 79.7 79.4 79.8 92.4 95.7 96.8 97.7 102.8 102.4 102.93 105.79
(Millions of yen)
Note: Yen/dollar rates are the averages for calendar year quarters.
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Inquiries:
Freund Corporation
Public Relations / Investor Relations Office,
Corporate Administration Division
Tel: +81-3-5292-0215
Fax: +81-3-5292-0290
Email: [email protected]
IR website: http: //www.freund.co.jp
This presentation contains forward-looking statements involving plans, outlooks, strategies and policies. These statements reflect the judgments of management and assumptions based on information 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 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.
