DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of
the original Japanese document. In cases where any differences occur between the English version and the original Japaneseversion, the Japanese version shall prevail. This translation is subject to change without notice.

Consolidated Financial Results for the First Six Months of
the Fiscal Year Ending March 31, 2022
<under Japanese GAAP>
November 1, 2021
ORGANO CORPORATIONTokyo Stock Exchange
6368
https://www.organo.co.jp/english/
Masaki Uchikura, Representative Director and President
Shigeru Sonobe, General Manager of Accounting Dept., Corporate Management andPlanning
TEL:+81-3-5635-5111
Scheduled date to file quarterly securities report:
November 12, 2021
Scheduled date to commence dividend payments:
December 6, 2021
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:Yes (for institutional investors andanalysts)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2022
(from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen% Millions of yen%
Six months ended
September 30, 2021
50,001
10.3
3,771
18.5
September 30, 2020
45,322(2.9)
3,182(41.5)
Note:
Comprehensive income: Six months ended September 30, 2021
Six months ended September 30, 2020

Millions of yen%

Millions of yen

4,193
28.0
3,276
(38.4)¥3,220 million [55.4%]¥2,072 million [(40.8)%]

2,696
2,080

%

29.6
(42.8)

Diluted earnings
per share

Basic earnings
per share
Six months ended
September 30, 2021
September 30, 2020

Profit attributable toowners of parent

Ordinary profit

Yen

234.81181.54Yen––(2) Consolidated financial position
Total assets
Millions of yen
As ofSeptember 30, 2021
113,017
March 31, 2021
115,011(Reference) Equity: As of September 30, 2021 ¥69,852 million

Net assets

Equity-to-asset ratio

Millions of yen

70,00567,357
As of March 31, 2021

%

61.8
58.4
¥67,214 million

2. Cash dividends
Annual dividends per shareFirst quarter-end Second quarter-end Third quarter-end
Yen

Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022

Yen

–

52.00

–

72.00

Fiscal year-end

Yen

Total

Yen

–

Fiscal year ending–
March 31, 2022
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Yen

62.00

114.0072.00

144.003. Consolidated earnings forecasts for the fiscal year ending March 31, 2022
(from April 1, 2021 to March 31, 2022)(Percentages indicate year-on-year changes.)
Net sales
Millionsof yenOperating profit%

Millionsof yenProfit attributable toowners of parent

Ordinary profit%

Millionsof yenFiscal year ending
110,000
9.3
10,000
4.4
10,300March 31, 2022
Note:
Revisions to the earnings forecasts most recently announced: None%

4.0

Millionsof yen

8,200

Basic
earnings
per share

%

Yen

15.9

714.00* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes
Note:

For more details, please refer to “Application of special accounting for preparing the quarterly consolidated
financial statements” on page 11 of the attached material.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
Note:

For more details, please refer to “Changes in accounting policies” on page 11 of the attached material.

(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021

11,589,925 shares

As of March 31, 2021

11,589,925 sharesb. Number of treasury shares at the end of the period
As of September 30, 2021

86,418 shares

As of March 31, 2021

112,618 sharesc. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
For the six months ended September 30, 2021

11,484,642 shares

For the six months ended September 30, 2020

11,459,908 shares

The Company has introduced an Officer Share Delivery Trust, and shares of the Company held by the Trust havebeen included in treasury shares excluded from the calculation of the number of treasury shares at the end of theperiod and the average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year).

* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, any statements herein do not constitute assurances regarding actual results by theCompany. Actual business and other results may differ substantially due to various factors. Please referto “(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements” in“1. Qualitative information regarding financial results for the first six months” on page 4 of the attachedmaterial for the suppositions that form the assumptions for earnings forecasts and cautions concerning
the use thereof.

Attached Material

Index
1. Qualitative information regarding financial results for the first six months ...................................... 2(1) Explanation regarding operating results .......................................................................................... 2(2) Explanation regarding financial position ......................................................................................... 3(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements 4
2. Quarterly consolidated financial statements and significant notes thereto ........................................ 5(1) Consolidated balance sheet ................................................................................................................ 5(2) Consolidated statement of income and consolidated statement of comprehensive income.......... 7
Consolidated statement of income (cumulative) .............................................................................. 7
Consolidated statement of comprehensive income (cumulative) .................................................... 8(3) Consolidated statement of cash flows ............................................................................................... 9(4) Notes to quarterly consolidated financial statements .................................................................... 11
Notes on premise of going concern .................................................................................................. 11
Notes on substantial changes in the amount of shareholders’ equity ........................................... 11
Changes in significant subsidiaries during the period .................................................................. 11
Application of special accounting for preparing the quarterly consolidated financial statements............................................................................................................................................................ 11
Changes in accounting policies ........................................................................................................ 11
Additional information .................................................................................................................... 12
Segment information, etc. ................................................................................................................ 13- 1 -1. Qualitative information regarding financial results for the first six months(1) Explanation regarding operating results
During the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021), vigorous
production and investment activity in Japan and overseas persisted in the electronics industry, the Organo
Group’s main market, mainly driven by the shortage of semiconductor supply and efforts to restructure
global supply chains. In the general industrial field, the Service Solutions Division, which handles mainly
maintenance and equipment modification, and the Performance Products Business Unit, which handles
mainly sales of expendable items and small-scale equipment, both experienced a recovery trend
compared with the same period of the previous fiscal year, despite a hold-up in production activities due
to prolonged restrictions on certain customers’ activities because of COVID-19 and the impact of thesemiconductor shortage. In addition, the electric power/water supply and sewage fields continued a firm
trend.
Under these conditions, the Organo Group has been focusing its efforts on gaining and delivering largescale orders in the semiconductor markets of Japan, Taiwan, and China, where investment remains active.
At the same time, it moved forward with initiatives to streamline operations and strengthen the delivery
framework. These included establishing a subsidiary in the United States to handle local semiconductor
projects, starting operations at the global engineering center (GEC) in Vietnam, and promoting a shift todigitalization of engineering operations, largely by developing various tools and databases.
As a result, in the Group’s financial results for the six months ended September 30, 2021, orders received
increased by 33.7% year on year to ¥58,903 million, net sales increased by 10.3% year on year to ¥50,001
million, and our carry-over balance for order backlog as of September 30, 2021 was up 6.0% to ¥70,541
million. On the profit side, operating profit increased by 18.5% to ¥3,771 million, ordinary profit
increased by 28.0% to ¥4,193 million, and profit attributable to owners of parent increased by 29.6% to¥2,696 million.
Results by segment are as follows.
[Water Treatment Engineering Business Unit]■Orders received
Orders received increased 40.2% year on year to ¥48,998 million. In the electronics field, which is theGroup’s main market, the Group saw persistently active production and capital investment activity inJapan and overseas. This included receipt of an order for a large wastewater recovery facility for asemiconductor plant in Japan, a high level of capital investment in cutting-edge semiconductor
manufacturing in Taiwan, and continued investment in China as well, mainly in semiconductors forautomotive applications and power semiconductors. In addition, in the general industry field, as well as
the electric power/water supply and sewage fields, firm levels of orders were seen in the Service Solutions
Division in Japan, particularly for maintenance and equipment modification.
■Net sales
Net sales increased 10.9% year on year to ¥40,378 million. In the electronics field, net sales increased asa result of steady progress in work on major projects in Japan and overseas that has been ordered to date.
In addition, in the general industry field, although major capital investments are on the decrease, steady
activity continued mainly in the Service Solutions Division in Japan, while in the electric power/watersupply and sewage fields, net sales increased year on year, mainly due to progress on construction ofmajor projects for which orders were received up until the previous fiscal year.
■Operating profit
Operating profit increased 15.3% year on year to ¥3,040 million. As stated above, net sales expanded due
to progress on construction of major projects in Japan, Taiwan, and China, mainly in the electronics
industry field, driving a year-on-year increase in operating profit.

- 2 -[Performance Products Business Unit]■Orders received/Net sales
Orders received increased 8.8% year on year to ¥9,905 million and net sales increased 7.9% year on yearto ¥9,623 million. In the Water Treatment Chemicals Division, sales of various water treatment chemicals
for the electronics industry, which continues to experience brisk activity, were favorable both in Japanand overseas. The Standard Water Treatment Equipment and Filters Division saw a recovery in sales
centered on small-scale pure water production equipment for medical institutions, which had slumped
due to the impact of COVID-19. Meanwhile, in the Food Products Division, sales were about level withthe previous fiscal year, as signs of recovery in sales of products for restaurants were offset by waning
demand from people staying at home.
■Operating profit
Operating profit increased 34.0% year on year to ¥730 million. In the Water Treatment Chemicals
Division and the Standard Water Treatment Equipment and Filters Division, operating profit was affectedby an increase in the gross profit margin brought about by an increase in sales of products with relatively
high added-value, in addition to a recovery in sales.
(2) Explanation regarding financial position
Assets, liabilities and net assets
AssetsAssets as of September 30, 2021 amounted to ¥113,017 million, a decrease of ¥1,994 million from theprevious fiscal year end. This was mainly due to a decline of ¥6,635 million in cash and deposits, despite
an increase of ¥5,579 million in notes and accounts receivable - trade, and contract assets, which wasshown as notes and accounts receivable - trade at the previous fiscal year end.
Liabilities
Liabilities as of September 30, 2021 amounted to ¥43,012 million, a decrease of ¥4,642 million from theprevious fiscal year end. This was mainly due to a decline of ¥2,216 million in trade payables and a
decline of ¥1,517 million in short-term borrowings.
Net Assets
Net assets as of September 30, 2021 amounted to ¥70,005 million, an increase of ¥2,647 million fromthe previous fiscal year end. This was mainly due to an increase of ¥2,031 million in retained earnings
resulting from the recording of profit attributable to owners of parent.
Cash flows
Cash and cash equivalents (hereinafter, “cash”) as of September 30, 2021 decreased by ¥6,635 million
from the previous fiscal year end to ¥6,168 million.
Cash flows from operating activities
Net cash used in operating activities for the six months ended September 30, 2021 was ¥3,435 million.
This was mainly because there was an increase in cash due to profit before income taxes of ¥4,202 million
while there was a decrease in cash due to an increase in trade receivables and contract assets of ¥2,939
million and an increase in investments in leases of ¥2,772 million. (Net cash of ¥6,054 million was usedin the six months ended September 30, 2020.)
Cash flows from investing activities
Net cash used in investing activities for the six months ended September 30, 2021 was ¥1,056 million.
This was mainly due to purchase of property, plant and equipment of ¥974 million. (Net cash of ¥647
million was used in the six months ended September 30, 2020.)
Cash flows from financing activities
Net cash used in financing activities for the six months ended September 30, 2021 was ¥2,658 million.
This was mainly due to repayments of short-term borrowings of ¥1,628 million and dividends paid of¥713 million. (Net cash of ¥1,184 million was provided in the six months ended September 30, 2020.)- 3 -(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements
Turning to full-year earnings forecast, orders received, net sales, and profits have all exceeded initialplans, and are expected to achieve new record highs. Orders received are expected to reach ¥120,000
million, an increase of 26.9% year on year, mainly due to investment exceeding the initial forecasts inthe electronics industry, the Company’s main market, in Taiwan, along with a large scale semiconductor
project in the United States and brisk investment in semiconductors and other devices in Japan and China.
Net sales are expected to be ¥110,000 million, an increase of 9.3% year on year, expected sales expansion
in the electronics industry in Japan, Taiwan, and China, mainly driven by brisk investment primarily insemiconductors, along with forecasts for net sales surpassing the initial plan in the Performance Products
Business Unit. On the profit side, operating profit is expected to be ¥10,000 million, up 4.4% year on
year, and ordinary profit ¥10,300 million, up 4.0%, because selling, general and administrative expenses
are expected to fall below plans, mainly reflecting the impact of expanded sales centered on the electronic
industry field, as well as the impact of an extension on the period of movement restrictions due to
COVID-19. In addition, with plans to sell certain non-current assets during the second half, profit
attributable to owners of parent is expected to be ¥8,200 million, up 15.9% year on year.

- 4 -2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021

As of September 30, 2021

12,80449,517

6,168––

55,096

1,598

1,654

9,773
5,448
6,205
1,223
3,172
(39)
89,702

12,545
5,531
2,437
1,270
2,223
(6)
86,922

17,792(12,808)
4,983
5,671
(4,981)690
12,279300
5,112(4,391)
720
18,974
1,105

17,928(13,001)
4,927
5,804
(5,016)788
12,282915
5,212(4,493)718
19,632
1,114

1,911
–
2,977
743
(403)
5,228
25,308115,011

1,754
360
2,903
791
(462)
5,347
26,095
113,017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Investments in leases
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 5 -(Millions of yen)
As of March 31, 2021

As of September 30, 2021

13,556
4,589
14,510
2,140
1,226
–
1,442
241
122

11,9703,959
12,992
1,278
–
1,321
1,608
282
53

109

57

2,809
40,7492,594
36,119

1,495
11
5,319
79
6,905
47,654

1,195
12
5,609
76
6,892
43,012

8,225
7,508
51,902(495)
67,1398,225
7,508
53,933(385)
69,281

301

295

(201)
(25)
74
143
67,357
115,011

268
6
571
152
70,005
113,017

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Advances received
Contract liabilities
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Provision for share awards for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance claim income
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of right to use facilities
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on sale of right to use facilities
Loss on valuation of right to use facilities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)
45,32233,963
11,359
8,176
3,182

- 7 -

(Millions of yen)Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)
50,001
37,597
12,404
8,632
3,771

14
14
–
98

11
16
381
2

18

60

17
163

46
520

53
12
–
3
68
3,276

53
–
38
5
97
4,193

2
11
–
14

–
22
11
34

2
–
0
2
3,288
1,207
2,081
0
2,080

12
13
–
25
4,202
1,501
2,700
3
2,696

Consolidated statement of comprehensive income (cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)
2,081

- 8 -

(Millions of yen)Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)
2,700

21

(5)

0
(86)

–
493

55

32

0

(1)

(9)
2,072

520
3,220

2,076

3,210

(4)

9

(3) Consolidated statement of cash flows
Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Insurance claim income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on valuation of derivatives
Loss (gain) on sale of non-current assets
Loss on abandonment of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on sale of right to use facilities
Loss on valuation of right to use facilities
Decrease (increase) in trade receivables
Decrease (increase) in trade receivables andcontract assets
Decrease (increase) in investments in leases
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes refund (paid)
Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from collection of loans receivable
Proceeds from sale of right to use facilities
Other, net
Net cash provided by (used in) investing activities- 9 -(Millions of yen)Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

3,288
586
166
(79)
–
(29)
(98)
53
25

4,202
594
188
101
(128)
(28)
(2)
53
(37)

(18)

(60)

(2)
(2)
2
(11)
–
0
(4,282)

38
–
12
(22)
1
–
–

–

(2,939)981(2,839)776(2,639)(4,122)39(49)
98(2,019)(0)(6,054)(2,772)
1,902(2,679)447(1,127)40(63)
2(2,286)(0)(3,435)

(510)

(974)

2

–

(147)
(7)
15
0
–
(0)
(647)

(166)
(7)
63
–
32
(4)
(1,056)

Six months ended
September 30, 2020
(From April 1, 2020 to
September 30, 2020)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period- 10 -(Millions of yen)Six months ended
September 30, 2021
(From April 1, 2021 toSeptember 30, 2021)

2,354
(500)
(655)
(13)
1,184

(1,628)
(300)
(713)
(16)
(2,658)(63)

199(5,580)13,772(6,950)12,804

–

314

8,192

6,168

(4) Notes to quarterly consolidated financial statements
Notes on premise of going concern
No items to report
Notes on substantial changes in the amount of shareholders’ equity
No items to report
Changes in significant subsidiaries during the period
No items to report
Effective from the first quarter of the fiscal year ending March 31, 2022, Organo (Vietnam) Co., Ltd. has
been included in the scope of consolidation due to its increased significance, although the inclusion does
not constitute a change in specified subsidiaries.
Application of special accounting for preparing the quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimatedeffective tax rates after the application of tax effect accounting to the profit before income taxes for the
fiscal year including the second quarter ended September 30, 2021. However, in cases where thecalculation of tax expenses using such estimated effective tax rate yields a result that is not reasonable toa significant extent, the amount of significant difference other than temporary differences, etc. is added
to or deducted from the profit before income taxes, and the result is multiplied by the statutory income
tax rate.
Changes in accounting policies
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant revised ASBJ regulations effective from the beginning of the firstquarter of the fiscal year ending March 31, 2022, and it has recognized revenue at the time the control ofpromised goods or services is transferred to the customer at the amount expected to be received uponexchange of said goods or services. With respect to construction contracts, the Company previously had
applied the percentage-of-completion method to construction work whose outcome from the completed
portion was deemed definite, and had applied the completed-contract method to other construction work.
As a result of this application, however, the Company has changed the method to recognize revenue overa certain period of time in alignment with its satisfaction of performance obligations to transfer goods orservices to customers when control over a good or service is to be transferred to the customer over acertain period of time. In measuring progress made in satisfying a performance obligation, construction
costs incurred as of the last day of each reporting period are to be calculated based on the ratio of thetotal estimated construction costs. In addition, the Company is to recognize revenue using the cost
recovery method in cases where it expects to recover costs incurred but is unable to reasonably estimate
the extent of progress made toward satisfying performance obligations.
The application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application,
assuming the new accounting policy had been applied to periods prior to the beginning of the first quarterof the current fiscal year was added to or deducted from the opening balance of retained earnings of thefirst quarter of the current fiscal year, and thus the new accounting policy was applied from such opening
balance.
As a result, for the six months ended September 30, 2021, net sales increased by ¥1,358 million, cost of
sales increased by ¥1,218 million, while operating profit increased by ¥139 million, and ordinary profit
and profit before income taxes each increased by ¥138 million. In addition, the opening balance ofretained earnings increased by ¥11 million.
Due to the application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations, “Notes and accounts receivable - trade” under current assets of the consolidated balance
sheet as of March 31, 2020 has been included in “Notes and accounts receivable - trade, and contract- 11 -

assets” under current assets from the quarterly consolidated balance sheet as of June 30, 2021. In addition,“Advances received” under current liabilities has been included in “Contract liabilities” from thequarterly consolidated balance sheet as of June 30, 2021. “Decrease (increase) in trade receivables” under“Cash flows from operating activities” of the consolidated statement of cash flows for the six months
ended September 30, 2020 has been included in “Decrease (increase) in trade receivables and contract
assets” from the six-months ended September 30, 2021. In accordance with the transitional treatment
provided for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for theprevious fiscal year have not been restated in accordance with the new approach to presentation.
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant revised ASBJ regulations effective from the beginning of the first quarterof the fiscal year ending March 31, 2022, and in the future will accordingly apply new accounting policy
stipulated by the Accounting Standard for Fair Value Measurement, etc. in accordance with thetransitional treatment provided for in paragraph 19 of the Accounting Standard for Fair Value
Measurement and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). This will not affect the quarterly consolidated financial statements.
Additional information
There has been no material change in the assumptions regarding the impact of COVID-19 described in
the annual securities report (Additional information) (Impact arising due to the proliferation of COVID19) for the previous fiscal year.

- 12 -

Segment information, etc.
[Segment information]
I Six months ended September 30, 2020 (From April 1, 2020 to September 30, 2020)
1. Information relating to net sales and profit by each reportable segment
Reportable Segment(Millions of yen)Amountrecorded in the
consolidated
statement ofincome(Note)

Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

36,402
0

8,920
159

45,322
159

–
(159)

45,322–

Total

36,402

9,079

45,481(159)

45,322

Total

Adjustment

Segment profit
2,636
545
3,182
–
3,182
Note:
The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit
shown in the consolidated statement of income.

II Six months ended September 30, 2021 (From April 1, 2021 to September 30, 2021)
1. Information relating to net sales and profit by each reportable segment
Reportable Segment(Millions of yen)Amountrecorded in the
consolidated
statement ofincome(Note)

Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

40,378
0

9,623
166

50,001
166

–
(166)

50,001–

Total

40,378

9,789

50,168(166)

50,001

Total

Adjustment

Segment profit
3,040
730
3,771
–
3,771
Note:
The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit
shown in the consolidated statement of income.

2. Disclosure of changes, etc. in reportable segments
As stated under “Changes in accounting policies,” the Company has applied the Accounting Standard
for Revenue Recognition and relevant revised ASBJ regulations from the beginning of the firstquarter, and accordingly changed its method for calculating business segment profit or loss giventhat it has changed accounting methods for revenue recognition.
In comparison with the previous method, this change increases net sales and segment profit in the
Water Treatment Engineering Business Unit by ¥1,416 million and ¥139 million, respectively.
Meanwhile, it decreases net sales by ¥57 million in the Performance Products Business Unit.

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