Embed Size (px)
Citation preview
(Securities code: 6312)
Results of Operations for the Fiscal Year Ended February 29, 2016 (FY2/16)
April 12, 2016
Selected by the Japanese Ministry of Economy, Trade and Industry as a Global Niche Top 100 Company
1
Table of Contents
< Supplementary Materials > P30
I. Financial Summary for FY2/16 P2
II. Highlights of FY2/16 and Major Initiatives for FY2/17
P13
III. Earnings and Dividend Forecasts for FY2/17 P26
2
I. Financial Summary for FY2/16
3
FY2/16 Financial Highlights
Sales up 9% because of solid growth in sales involving generic drugs
Benefits of higher sales more than offset the increase in R&D expenses, resulting in a 17% increase in operating income
FY2/15 FY2/16 YoY change
Results Results Amount %
Net sales 17,424 19,027 +1,603 +9.2
Operating income 1,150 1,346 +196 +17.1
Ordinary income 1,249 1,394 +145 +11.6
Net income 695 961 +265 +38.1
Earnings per share (yen) Note 40.36 55.74 +15.38
Capital expenditures 545 266 (279) (51.2)
Depreciation 308 321 +13 +4.4
R&D expenses 592 687 +94 +16.0
(Millions of yen)
Note: Freund conducted a 2-for-1 common stock split on March 1, 2016. The earnings per share have been adjusted to reflect this stock split.
4
0
1,000
2,000
3,000
4,000
5,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Machinery sales
Total orders received
Chemical and food sales
Quarterly Orders and Sales O
rde
rs received
Co
nso
lidated
sales
(Millions of yen) (Millions of yen) Orders received remained strong
FY2/14 FY2/15 FY2/16
5
Machinery Business: Overview
(Millions of yen)
FY2/15 FY2/16
Amount YoY change (%) Amount YoY change (%)
Orders received 12,407 +23.2% 13,112 +5.7%
Order backlog 6,682 +33.9% 7,086 +6.0%
Net sales 10,941 (0.6)% 13,037 +19.2%
Pharmaceutical machinery 9,945 +2.1% 11,444 +15.1%
Industrial machinery 996 (21.3)% 1,593 +60.0%
Segment profit 1,108 (10.8)% 1,189 +7.3%
Yen/dollar rate (+ is yen depreciation)
105.8 ＋8.1 121.1 +15.3
Large volume of orders in Japan from generic drug companies
Operating income increased as the recovery in the industrial machinery sector and higher sales in the pharmaceutical machinery sector more than offset growth in development expenses
6
FY2/15 FY2/16
Amount YoY change (%) Amount YoY change (%)
Net sales 10,941 (0.6)% 13,037 +19.2%
Freund Corporation 6,887 (2.7)% 7,784 +13.0%
Freund-Vector Corporation 3,905 (0.3)% 4,686 +20.0%
Freund-Turbo Corporation 999 +27.7% 1,205 +20.5%
Segment profit 1,108 (10.8)% 1,189 +7.3%
Major subsidiaries
Freund-Vector Corporation 291 +72.7% 293 0.9%
Freund-Turbo Corporation (12) - 94 -
Sales by geographic region
Japan 6,638 (0.2)% 7,668 +15.5%
North/Latin America 2,664 (7.6)% 3,491 +31.1%
Europe/Africa 440 (37.3)% 982 +123.0%
Middle East/Asia/Oceania 1,197 +56.3% 894 (25.3)%
(Millions of yen)
Machinery Business: Group Company Performance Freund-Vector sales increased because of sales growth in North America and Europe.
Freund-Turbo sales increased because of the success of measures to build a more powerful framework for operations.
7
Chemical and Food Business: Overview
(Millions of yen)
FY2/15 FY2/16
Amount YoY change (%) Amount YoY change (%)
Net sales 6,482 (2.0)% 5,990 (7.6)%
Pharmaceutical excipients 2,135 +8.3% 2,132 (0.1)%
Food preservatives 1,952 +1.9% 2,004 +2.7%
New food products 2,394 (12.1)% 1,853 (22.6)%
Segment profit 474 +25.1% 519 +9.6%
Freund Pharmatec Note (190) (1.1)% (140) (26.4)%
Yen/euro rate (+ is yen depreciation)
140.35 +10.6 134.31 (6.04)
Sales of pharmaceutical excipients to generic drug companies increased but sales in the new food products category were down because of continuing production cuts by companies that use these products.
Freund Pharmatec was sold in February 2016 .
Note: All shares of the consolidated subsidiary Freund Pharmatec Ltd. were sold on February 4, 2016, and this company was excluded from the scope of consolidation with January 1, 2016 as an assumed selling date.
8
0
50
100
150
200
250
300
0
500
1,000
1,500
2,000
2,500
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Operating income
Net sales
Chemical and Food Business: Quarterly Trends
Sales were down from one year earlier because of lower new food product sales in
association with production cuts
(Millions of yen) (Millions of yen)
9
Summary of Statement of Income
(Millions of yen)
FY2/15 FY2/16 YoY change
Amount Share (%) Amount Share (%) Amount %
Net sales 17,424 100.0 19,027 100.0 +1,603 +9.2
Cost of sales 11,978 68.7 12,921 67.9 +943 +7.9
Gross profit 5,445 31.3 6,106 32.1 +660 +12.1
SG&A expenses 4,295 24.7 4,759 25.0 +463 +10.8
Operating income 1,150 6.6 1,346 7.1 +196 +17.1
Non-operating income (expenses)
99 0.6 47 0.3 (51) (51.9)
Ordinary income 1,249 7.2 1,394 7.3 +145 +11.6
Extraordinary income (losses)
3 0.0 (253) (1.3) (256) -
Income before income taxes and minority interests
1,253 7.2 1,141 6.0 (111) (8.9)
Net income 695 4.0 961 5.1 +265 +38.1
Extraordinary income (losses) •Extraordinary income 10→ 3 •Extraordinary losses 6→256
Non-operating income (expenses) •Non-operating income 106→64 •Non-operating expenses 7→17
10
Change in Operating Income
(Millions of yen)
FY2/15
1,150
1,346
Other expenses
～～～～
FY2/16
+660
Higher gross profit
Positive facto
rs
Depreciation within SG&A
expenses Personnel expenses
R&D expenses
Growth in sales offset the increase in R&D and personnel expenses.
(201)
(156)
(13) (94)
11
Summary of Balance Sheet (Millions of yen)
Feb. 28, 2015 Feb. 29, 2016 Change
Current assets 12,782 13,053 +271
Cash and deposits 4,870 4,042 (828)
Accounts receivable Note 5,272 5,694 +421
Inventories 1,771 2,432 +660
Non-current assets 4,495 4,153 (342)
Property, plant and equipment 3,403 3,135 (268)
Intangible assets 146 182 +35
Investments and other assets 944 835 (109)
Total assets 17,277 17,206 (70)
Current liabilities 5,427 5,315 (111)
Accounts payable Note 2,786 2,580 (206)
Advances received 1,242 1,288 +45
Non-current liabilities 669 361 (308)
Net defined benefit liability 187 194 +6
Negative goodwill 18 11 (7)
Total liabilities 6,097 5,677 (419)
Total net assets 11,180 11,529 +348
•Net income +961 Equity ratio 63.6%→67.0%
•Merchandise and finished goods +34
•Work in process +579
•Raw materials and supplies +47
Note: Includes electronically recorded monetary claims-operating and obligations-operating
12
Summary of Statement of Cash Flows
FY2/15 FY2/16
Cash flows from operating activities 822 290
Income before income taxes and minority interests 1,253 1,141
Depreciation 308 321
Foreign exchange losses (gains) (44) 14 Decrease (increase) in notes and accounts receivable-trade
(781) (430)
Decrease (increase) in inventories 12 (620)
Increase (decrease) in advances received 252 45
Increase (decrease) in notes and accounts payable-trade 345 (170)
Income taxes paid (358) (499)
Cash flows from investing activities (240) (432)
Purchase of property, plant and equipment (453) (304)
Cash flows from financing activities (284) (331)
Net increase (decrease) in interest-bearing debt (63) (62)
Cash dividends paid (215) (258)
Net increase (decrease) in cash and cash equivalents 440 (505)
Cash and cash equivalents at end of period 4,548 4,042
(Millions of yen)
13
II. Highlights of FY2/16 and Major Initiatives for FY2/17
14
The Sixth Medium-term Management Plan (FY2/15 – FY2/17)
Net sales: ¥23.0 billion Operating income: ¥2.3 billion (Foreign exchange rate assumptions: 1 USD=¥100 1 EURO=¥145)
FY2/17 Targets
(Millions of yen) (Millions of yen)
Op
erating in
com
e
Net sales
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 FY2/17
Forecast Target
15
Progress toward reaching the Japanese government’s generic drug use target announced in 2015 is faster than expected.
Machinery ・・・ Grow faster worldwide and strengthen product development activities
Chemical and Food ・・・ Introduce more new products and make current products more competitive
Strategic Objectives of the 6th Medium-term Management Plan
Sales resources in Japan were focused on capturing orders involving generic drugs
during FY2/16 in order to prevent the lost opportunities in the generic drug sector.
Japanese government has raised the generic drug utilization rate target from 60% to 80% (by the end of Fiscal 2020)
Government Programs to Increase Generic Drug Use Are Advancing Much Faster Than Expected
16
Actions to Capture More Orders
In Japan, concentrating on orders associated with generic drugs in the machinery business and chemical and food business.
Started production of the HICOATER series of machines designed for customers outside Japan.
Reexamined relationships with sales agents in India and South Korea.
Enlarged the Freund-Vector factory
High-profile promotional activities at the ACHEMA process industries world forum in Germany in June 2015
Operations started at the Milan Demonstration Center Laboratory
17
Enlarged Freund-Vector factory
Milan Demonstration Center
ACHEMA process industries world forum in Germany
Examples of Actions to Increase Overseas Orders
18
0
1,000
2,000
3,000
4,000
5,000
6,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Machinery sales
Machinery orders received
FY2/13 FY2/14 FY2/15
(Millions of yen)
FY2/16
Quarterly Orders
Machinery Orders Received
FY2/15 FY2/16
Orders in Japan 7,924 8,001
Orders from overseas
4,482 5,111
Orders received 12,407 13,112
Achievements of the Machinery Business (1)-a
19
0
2,000
4,000
6,000
8,000
10,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
(Millions of yen)
FY2/13 FY2/14 FY2/15 FY2/16
77%
18%
5%
(As of February 28, 2015)
¥6.68 billion
74%
22%
4%
(As of February 29, 2016)
¥7.08 billion Freund Corporation
Freund-Vector
Freund-Turbo
Order Backlog
Achievements of the Machinery Business (1)-b
20
0.0
10.0
20.0
30.0
40.0
50.0
0.0
10.0
20.0
30.0
40.0
50.0
Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015
Orders (M$)
Orders received
Order backlog
(M$)
Orders at Freund-Vector
Achievements of the Machinery Business (2)
Orders Received by Region
53%
18%
20%
9%
North America
Latin America
Europe
Others
21
Sales of pharmaceutical excipients to generic drug manufacturers
(Total of the top 10 companies)
0
50
100
150
200
250
300
350
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2/14 1Q=100
FY2/14 FY2/15 FY2/16
Achievements of the Chemical and Food Business
22
New Product Development
Turbo Screener with Ultrasonic Screen
●A turbo screener with ultrasonic technology
Developed jointly with TELSONIC AG (Switzerland)
●Stainless steel screen
Allows checking for screen damage using the metal detector
●Compatible with the previous model
Can be attached to a previous turbo screener model by adding only a few parts
Meets the pharmaceutical industry’s need for a stainless steel screen
HICOATER ORIGINAL
All-inclusive Containment Laboratory Unit
Screening generator (Ultrasonic generator)
A HICOATER machine for customers outside Japan
Performs every step from cleaning to drying Places an agitation and granulation unit, granule size control unit, fluid bed granulation unit, coating unit, pill coating unit and blending unit in a single machine. This containment unit is used for R&D and other activities that use pharmaceuticals and toxic chemicals. The unit prevents the release of potentially dangerous and harmful substances and protects people from exposure to these substances.
More emphasis on product development activities that begin with users’ needs
23
Development Sales
HICOATER FZ F F / F-V
GRANUREX® F F / F-V
SPHEREX® F F / F-V
Compu 4 (control system) F-V F / F-V
FLOW COATER 12 Bar 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%.
• Capable of precisely coating particles and powders, this unit is ideal for the production of DDS pharmaceuticals.
GRANUREX®
Other Progress (Maximizing synergy in the Machinery Business)
Effective use of group resources
Development and Sales Production
A HICOATER machine for customers outside Japan (HICOATER ORIGINAL)
Freund-Vector
Manufacture Receipt of orders and sales
Freund Corporation
(Sales to India and other Asian countries)
HICOATER ORIGINAL
• This unit sorts particulate materials with high efficiency.
24
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2/15 FY2/14 FY2/16
0%
20%
40%
60%
80%
100%
May Jun. Jul. Aug. Sep.
Started operations in June
Other Progress (Chemical & Food Business)
Temporary decline caused by a change in
the product mix
Operating margin is improving steadily
Vertical startup of a new production line at once
Antimold-Mild® Capacity Utilization
Operating Margin of Chemical & Food Business
25
Priorities of the Fiscal Year Ending in February 2017
Strengthen sales activities for generic drug manufacturers
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
Start full-scale operation of a maintenance business
26
III. Earnings and Dividend Forecasts for FY2/17
27
Earnings Forecasts for FY2/17
FY2/16 FY2/17 (Forecast) YoY change
Amount Amount Amount %
Net sales 19,027 20,000 +973 +5.1
Operating income 1,346 1,900 +554 +41.1
Ordinary income 1,394 1,900 +506 +36.2
Net income 961 1,180 +219 +22.8
Earnings per share (yen) Note 55.74 68.43 +12.69
Capital expenditure 266 300 +34
Depreciation 321 320 ±0
R&D expenses 687 700 +13
Forecast double-digit growth of operating income because of
strong sales of products associated with generic drugs
Note: Freund conducted a 2-for-1 common stock split on March 1, 2016. The earnings per share have been adjusted to reflect this stock split.
(Millions of yen)
28
Segment Forecasts
(Millions of yen)
FY2/16 FY2/17 (Forecast) YoY change
Amount Share (%) Amount Share (%) Amount %
Consolidated sales 19,027 100.0 20,000 100.0 +972 +5.1
Machinery 13,037 68.5 14,150 70.7 +1,113 +8.5
Chemical & Food 5,990 31.5 5,850 29.3 (140) (2.3)
Segment profit 1,346 100.0 1,900 100.0 +553 +41.1
Machinery 1,189 88.3 NA - - -
Chemical & Food 519 38.6 NA - - -
Elimination or corporate (362) (26.9) NA - - -
Yen/dollar rate (+ is yen appreciation)
121.1 - 110.0 - (11.1) -
In the machinery business, expect sales growth in Japan
In the chemical & food business, expect a continuation of production cuts at some users to affect new food products
29
0.0%
20.0%
40.0%
60.0%
80.0%
0.0
5.0
10.0
15.0
20.0
FY2/07 FY2/08 FY2/09 FY2/10 FY2/11 FY2/12 FY2/13 FY2/14 FY2/15 FY2/16 FY2/17(fct.)
Dividends and Dividend Payout Ratio
Dividends Dividend payout ratio
Target for the consolidated dividend payout ratio
30%
20%
¥7.5
¥10.0
¥12.5
¥12.5 + Commemorative dividends ¥2.5
¥5.0
¥12.5
Dividend Forecasts
• Target for the annual consolidated dividend payout ratio of 30%
• Plan to pay a dividend of 15 yen per share for the fiscal year ending on February 28, 2017
Note: Freund conducted a 2-for-1 common stock split on March 1, 2016. The dividends per share above have been adjusted to reflect the stock split.
¥7.5 ¥7.5 ¥7.5 ¥7.5
¥15.0
30
(Supplementary Materials )
1. Company Overview 2. Segment Information 3. Quarterly Performance 4. Financial Summary
31
The Freund Group
Using innovative technologies for rapid growth outside Japan
Manufacture and sales of powder processing
equipment
Import
Technological alliance
Domestic users
Freund-Vector Corporation
Overseas manufacturers
Freund-Turbo Corporation
Overseas users
Freund Corporation
Freund-Turbo Corporation
Research and Development Laboratories
Freund-Vector Corporation
Sales of machinery
Sales of chemical and food products
Sales of machinery Sales of chemical
and food products
32
Creating Innovative Products Over 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® 2015 Pharmaceutical excipient NONPAREIL®-105
33
Quarterly Performance
FY2/14 FY2/15 FY2/16
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Machinery orders 3,026 2,491 2,696 1,853 3,648 2,549 3,016 3,192 3,833 2,900 2,938 3,440
Machinery order backlog
5,440 5,328 6,144 4,991 6,945 7,235 7,225 6,682 8,900 8,676 7,976 7,086
Consolidated sales 4,656 4,224 3,545 5,189 3,506 3,864 4,641 5,413 3,002 4,694 5,384 5,945
Machinery 3,048 2,684 1,933 3,337 1,794 2,249 3,106 3,792 1,826 3,166 3,671 4,373
Chemical & Food 1,608 1,540 1,611 1,851 1,711 1,617 1,534 1.620 1,176 1,528 1,713 1,572
Consolidated segment profit
562 281 156 286 (20) 121 484 565 (24) 223 528 619
Machinery 496 262 166 316 47 78 487 496 (9) 161 425 611
Chemical & Food 162 94 67 54 80 113 129 151 81 137 185 114
Elimination or corporate
(97) (74) (78) (85) (149) (68) (132) (83) (97) (75) (82) (106)
Yen/dollar rate 92.4 95.7 96.8 97.7 102.8 102.4 102.9 105.8 119.2 120.3 121.0 121.1
(Millions of yen)
Note: Yen/dollar rates are the averages for calendar year quarters.
34
(FY2/16)
Machinery Chemical & Food
Net sales
Segment profit
Composition of Net Sales
and Profit by Segment
70%
30%
69%
31%
Our “Pen” (Machinery and Equipment) and “Ink” (Pharmaceutical Excipients) Business Model
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.
Machinery Business Segment
Chemical and Food Business Segment
Consolidated sales: ¥19,027 million Consolidated operating income: ¥1,346 million
35
Our Business Fields
＋ ＋
Freund Group
The Pharmaceutical Business Model
Speeding up the development of new products
Coating equipment Granulating equipment
Excipients Film coating liquids
Granulating Drying, grading Tablet press
Blending, kneading
Active pharmaceutical
ingredient
Packing Tablet
Printing equipment
Ink
＋
Milling/sieving equipment
Fine chemicals
＋
Unique products backed by core competences involving machinery and chemicals, which are vital to making pills and other pharmaceutical products
Business Fields of the Freund Group
This diagram is a production flowchart for pharmaceutical products.
Milling/ sieving
Coating Printing
36
(North America, South America, Europe and Middle East)
29%
Two Bases for Global Growth
Overseas sales (FY2/16）
Freund-Vector Corporation Freund Corporation
(Asia)
Selected by the Japanese Ministry of Economy, Trade and Industry as a Global Niche Top 100 Company
: Locations with service technicians : Demonstration center
37
Sales Composition （FY2/16）
Automated tablet coating device
Fluid bed granulation device
FY2/16 Sales ¥13,037 million
Pharmaceutical 88%
Industrial machinery
12%
Machinery
Seamless mini-capsule device
Granulation device Coating device Drying device Tablet printer
Seamless mini-capsule device Milling device Sieving device
Main products
Tablet printer
Sieving device
Milling device
Fluid bed granulation drying and coating device
Continuous granulating device
All-inclusive Containment Laboratory Unit
Main Products are Granulating and Coating Equipment for Pharmaceutical Companies
38
Sales of Pharmaceutical Excipients, Nutritional Supplements and Food Preservatives
Sales Composition
Pharmaceutical excipients
36%
Food preservatives 33%
Supplements and
other new products
31% FY2/16 Sales ¥5,990 million
Chemical & Food
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 • Chitocoat®
39
Market Outlook for the Sixth Medium-term Management Plan
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
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
Source: IMS Market Prognosis, September 2013
40
産機
The Sixth Medium-term Management Plan Strategic Objectives by Segment (1)
Machinery ・・・ Grow faster worldwide and strengthen product
development activities 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 make full-scale enter into the
battery-sector machinery 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
FY2/14
Pharmaceutical machinery in Japan
Overseas Pharmaceutical machinery in Japan
Industrial machinery
Overseas
New businesses
Plan for FY2/17
¥11.0 billion ¥14.2 billion
Industrial machinery
41
The Sixth Medium-term Management Plan Strategic Objectives by Segment (2)
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 ・・・ Introduce more new products and make current products more competitive
42
Inquiries:
Freund Corporation
Corporate Communication Dept.
Tel: +81-3-5292-0256
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.
