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 Fiscal Year Ended March 31, 2020
<under Japanese GAAP>May 12, 2020
ORGANO CORPORATIONTokyo Stock Exchange
6368
https://www.organo.co.jp/english/
Masaki Uchikura, Representative Director and President
Minoru Ando, General Manager of Accounting Dept., Corporate Management andPlanning
TEL:+81-3-5635-5111
Scheduled date of ordinary general meeting of shareholders:June 26, 2020
Scheduled date to commence dividend payments:
June 11, 2020
Scheduled date to file annual securities report:
June 26, 2020
Preparation of supplementary material on financial results:
Yes
Holding of 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 fiscal year ended March 31, 2020
(from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Net sales(Percentages indicate year-on-year changes.)
Operating profit

Millions of yen% Millions of yen%
Fiscal year ended
March 31, 2020
96,515
4.6
9,908
51.1
March 31, 201992,273
16.5
6,558
71.6
Note:
Comprehensive income: Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2019

Basic earnings
per share

Diluted earnings
per share

Profit attributable toowners of parent

Ordinary profit
Millions of yen%

Millions of yen

%

7,162
4,452

60.9
60.2

9,929
51.9
6,538
66.2
¥7,029 million [73.3%]¥4,057 million [22.8%]

Return on equity

Ratio of ordinary
profit to total
assetsYen
Yen%
Fiscal year ended
March 31, 2020
626.05–
12.4
March 31, 2019
388.48–8.4(Reference) Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2020¥170 million
Fiscal year ended March 31, 2019¥138 million

Operating profit
ratio

%

9.8
6.6

%

10.3
7.1

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen
Millions of yen%
As ofMarch 31, 2020
101,448
60,857
59.9
March 31, 2019
101,257
54,79554.0(Reference) Equity: As of March 31, 2020
¥60,717 million As of March 31, 2019 ¥54,657 million

Yen5,301.26
4,784.81

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2020
March 31, 2019

Cash flows frominvesting activities

Millions of yen

Cash flows fromfinancing activities

Cash and cash
equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen(1,006)(153)(5,007)(2,759)13,772
11,276

8,553
5,646

2. Cash dividends
Annual dividends per share
First
SecondThird
Fiscal yearquarter-end quarter-end quarter-end
end
Yen

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)

Yen

Yen

Ratio of
Total cash
ratio dividends todividends Payout(consolidated) net assets(annual)(Consolidated)

Total

Yen

Yen

Millions of
yen

%

%

–

29.00

–

44.00

73.00

840

18.8

1.6

–

47.00

–

57.00

104.00

1,196

16.6

2.1

–

52.00

–

52.00

104.0025.3

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2021
(from April 1, 2020 to March 31, 2021)(Percentages indicate year-on-year changes.)
Net sales
Millionsof yenOperating profit%

Millionsof yenProfit attributable toowners of parent

Ordinary profit%

Millionsof yen%Millionsof yen%Basicearnings
per share
Yen

Six months ending
45,000(3.6)
2,000(63.3)
1,950(63.3)
1,200(67.0)
104.77
September 30, 2020
Fiscal year ending
100,000
3.6
7,200(27.3)
7,100(28.5)
4,700(34.4)
410.36
March 31, 2021
Any impact amount factored in for the impact arising due to the proliferation of COVID-19 is limited to the amountthat can be assumed at this stage. We will accordingly revise our earnings outlook as developments unfold. Please refer to“(4) Future outlook” in “1. Overview of operating results, etc.” on page 3 of the attached material for the suppositions
that form the assumptions for earnings forecasts and cautions concerning the use thereof.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

11,589,925 shares

As of March 31, 201911,589,925 sharesb. Number of treasury shares at the end of the period
As of March 31, 2020

136,593 shares

As of March 31, 2019

166,788 sharesc. Average number of shares outstanding during the period
For the fiscal year ended March 31, 2020

11,440,300 shares

For the fiscal year ended March 31, 201911,461,635 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.

[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2020 (from April 1, 2019 toMarch 31, 2020)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2020
March 31, 2019

Operating profit

Millions of yen

70,90765,617% Millions of yen

8.1
13.9

Basic earnings
per share
Fiscal year ended
March 31, 2020
March 31, 2019

(Percentages indicate year-on-year changes.)

6,808
3,497

Ordinary profit% Millions of yen

94.7
99.5

Diluted earnings
per shareYen

538.91277.56

Yen

–
–

8,151
4,586

Profit% Millions of yen

77.7
60.7

6,165
3,181

%

93.8
38.0

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2020
March 31, 2019
(Reference) Equity:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

85,65084,04451,74346,64660.4
55.5

4,517.80
4,083.48

As of March 31, 2020:
As of March 31, 2019:¥51,743 million¥46,646 million<Reasons for year-on-year differences in non-consolidated financial results>
Differences between the results for the fiscal year under review and the results for the previous fiscal year
occurred due to the same reasons stated in “(1) Overview of operating results for the fiscal year underreview” in “1. Overview of operating results, etc.” on 2 of the attached material.
* Financial results reports are exempt from audit 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 “(4) Future outlook” in “1. Overview of operating results, etc.” on page 3 of the attached material forthe suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.

Attached Material

Index
1. Overview of operating results, etc. ...............................................................................................................2(1) Overview of operating results for the fiscal year under review .............................................................2(2) Overview of financial position for the fiscal year under review ............................................................3(3) Overview of cash flows for the fiscal year under review ........................................................................3(4) Future outlook............................................................................................................................................3
2. Basic policy regarding selection of accounting standards ..........................................................................4
3. 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...........................................................................................................7
Consolidated statement of comprehensive income ................................................................................8(3) Consolidated statement of changes in equity .........................................................................................9(4) Consolidated statement of cash flows ...................................................................................................13(5) Notes to consolidated financial statements ...........................................................................................15
Notes on premise of going concern ........................................................................................................15
Changes in presentation .........................................................................................................................15
Segment information, etc. ......................................................................................................................17
Per share information.............................................................................................................................20
Significant subsequent events ................................................................................................................21-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the fiscal year under review
Looking at the global economic situation during the fiscal year under review, the growth rate in 2019
stagnated at the lowest level since directly after the global financial crisis in 2009, against the backdropof the slowdown of the Chinese and European economies and the decrease in global trade volume
triggered by trade friction between the United States and China, while the IMF announced its
projection for negative global economic growth in 2020 due to the impact of global spread of the novel
coronavirus disease (COVID-19). Such conditions are expected to seriously hurt the economy.
The business environment surrounding the Organo Group continued on a more vibrant trend than
expected mainly due to production levels staying high, and the continuation of large-scale
semiconductor-related capital investment centered in Japan and Taiwan in the second half of the year,
despite an ongoing suppression of memory investment in the electronics field, our key market. In
addition, capital investment and production remained firm also in the general industrial field. Since thebeginning of 2020, the spread of COVID-19 has led to turmoil in logistics and human movement,
particularly that which is overseas related. Nevertheless, its impact on earnings performance in thefiscal year under review was limited.
Consequently, orders received increased by 1.1% year on year to ¥104,986 million and net sales
increased by 4.6% to ¥96,515 million, updating the highest ever results for orders received and net
sales for the second year in a row. The carry-over balance for order backlog, which will have a major
effect on sales for the next fiscal year was ¥67,837 million, exceeding the level of the previous fiscal
year (up 14.3%). On the profit side, operating profit increased by 51.1% to a record high of ¥9,908
million, ordinary profit increased by 51.9% to ¥9,929 million, and profit attributable to owners of theparent increased by 60.9% to ¥7,162 million. In addition, return on equity (ROE) was 12.4% incomparison with 8.4% in the previous fiscal year, and the operating profit ratio was 10.3% incomparison with 7.1% in the previous fiscal year.
Results by segment are as follows.
Starting from the beginning of the fiscal year ended March 31, 2020, we have changed theclassification method of our reportable segments, etc., and the comparisons and analysis of the fiscal
year ended March 31, 2019 are made based on the classifications following the changes.
[Water Treatment Engineering Business Unit]
In this business, despite a slowdown in semiconductor capital investment in the electronics field in
China, production levels remained high in Japan and overseas. Moreover, in the second half of the
fiscal year, the Plant Division and Service Solutions Division exceeded their expectations, mainly
owing to cutting-edge investment by a foundry in Taiwan and an order for a large-scale project that willbe the Company’s largest ever in Japan. Meanwhile in the general industrial field, business is trending
firmly, mainly due to investment for rationalization and labor-saving as a countermeasure to labor
shortage, and investment for maintenance and renewals directed at aging facilities. Consequently,
orders received increased by 1.6% year on year to ¥86,475 million and net sales increased by 5.5% to¥77,921 million. On the profit side, in addition to the effect of increased sales mainly in the Plant
Division, due to cost-cutting initiatives with respect to projects in Japan and overseas, sales expansion
in the Service Solutions Division, which has comparatively high profit margins, led to improvement in
the profitability. Consequently, operating profit increased by 72.3% year on year to ¥8,921 million.
[Performance Products Business Unit]
In this business, despite the impact of a decline in plant operating rates, mainly due to reduced exports,
the injection of new products in the standard water treatment equipment field and growth in sales ofwater treatment chemicals for overseas markets led to a roughly flat year-on-year performances, withorders received decreased by 1.2% year on year to ¥18,510 million and net sales increased by 0.9% to¥18,593 million. Meanwhile on the profit side, gross profit margin was similar to the previous fiscal
year, but due to an increase of expenses in line with the strengthening of sales systems with an eye to-2-the expansion of the overseas business activities and an increase of development investment in new
products, operating profit decreased by 28.5% to ¥986 million.
(2) Overview of financial position for the fiscal year under review
Current assets
Current assets as of March 31, 2020 amounted to ¥76,078 million, an increase of ¥41 million from theprevious fiscal year end. This was due mainly to an increase of ¥2,495 million in cash and deposits,
despite a decline of ¥2,412 million in notes and accounts receivable - trade.
Non-current assets
Non-current assets as of March 31, 2020 amounted to ¥25,369 million, an increase of ¥148 million
from the previous fiscal year end. This was due mainly to an increase of ¥408 million in deferred tax
assets.
Current liabilities
Current liabilities as of March 31, 2020 amounted to ¥32,240 million, a decrease of ¥7,689 million
from the previous fiscal year end. This was due mainly to a decline in notes and accounts payable trade of ¥4,135 million and a decline in short-term borrowings of ¥5,813 million, despite an increase of¥1,623 million in other current liabilities.
Non-current liabilities
Non-current liabilities as of March 31, 2020 amounted to ¥8,349 million, an increase of ¥1,818 million
from the previous fiscal year end. This was due mainly to an increase of ¥1,894 million in long-termborrowings.
Net Assets
Net assets as of March 31, 2020 amounted to ¥60,857 million, an increase of ¥6,061 million from theprevious fiscal year end. This was mainly due to an increase of ¥6,114 million in retained earnings
resulting from the recording of profit attributable to owners of parent.
(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (hereinafter, “cash”) as of March 31, 2020 increased by ¥2,495 million fromthe previous fiscal year end to ¥13,772 million.
Cash flows from operating activities
Net cash provided by operating activities was ¥8,553 million. This was mainly because there was anincrease in cash due to profit before income taxes of ¥9,850 million and a decrease in trade receivablesof ¥1,873 million while there was a decrease in cash due to a decrease in trade payables of ¥4,165
million. (Net cash of ¥5,646 million was provided in the fiscal year ended March 31, 2019.)
Cash flows from investing activities
Net cash used in investing activities was ¥1,006 million. This was mainly because there was a decreasein cash due to purchase of property, plant and equipment of ¥781 million and purchase of intangible
assets of ¥187 million. (Net cash of ¥153 million was used in the fiscal year ended March 31, 2019.)
Cash flows from financing activities
Net cash used in financing activities was ¥5,007 million. This was mainly because there was a decreasein cash due to a decrease of ¥5,411 million in short-term borrowings. (Net cash of ¥2,759 million wasused in the fiscal year ended March 31, 2019.)(4) Future outlook
The future outlook is such that proliferation of COVID-19 is expected to weigh heavily on the global
economy and that of Japan, and could also substantially affect the Organo Group’s financial
performance. Looking at the current situation, on the one hand we have been encountering a shift
toward resumption in semiconductor-related capital investment in China which endured a substantial
slowdown in the previous year, along with no marked trend of cancellations or postponements ofconstruction projects in Japan and Taiwan, which accounts for a majority of our carry-over balance fororder backlog. On the other hand, we are finding it extremely difficult to estimate the pandemic’s
impact in terms of magnitude and duration at this stage, amid the likelihood of companies increasingly
suspending domestic construction work due to the impact from the spread of infection and also
-3-

substantially curtailing plans for production and investment going forward due to the prolonged
stagnation of global economic activity.
Regarding our financial results outlook for the fiscal year ending March 31, 2021, we forecast orders
received of ¥100,000 million (down 4.7% year on year), net sales of ¥100,000 million (up 3.6%),
operating profit of ¥7,200 million (down 27.3%), ordinary profit of ¥7,100 million (down 28.5%),
profit attributable to owners of parent of ¥4,700 million (down 34.4%), ROE of 7.5% (12.4% in theprevious fiscal year), and the operating profit ratio of 7.2% (10.3% in the previous fiscal year). These
forecasts reflect factors such as increased investment in business reform, R&D, creation of new
businesses, in addition to the circumstances involving our customers’ capital investment plans and ourcarry-over balance for order backlog at this point in time. Any impact amount factored in for the impact
arising due to the proliferation of COVID-19 is limited to the amount that can be assumed at this stage.
We will accordingly revise our earnings outlook as developments unfold.

2. Basic policy regarding selection of accounting standards
The Organo Group will prepare its consolidated financial statements in accordance with Japanese
GAAP for the time being.
Meanwhile, we will remain attentive to developments in Japan and overseas with respect to theInternational Financial Reporting Standards (IFRS).

-4-3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2019

As of March 31, 2020

11,27639,195

13,77236,783

1,060

1,590

13,574
4,717
2,717
1,426
2,206
(139)
76,037

11,752
5,710
2,728
1,392
2,448
(98)
76,07817,850(12,339)
5,511
5,576
(4,879)696
12,28845
4,968(4,236)731
19,272
1,209

17,909(12,562)
5,347
5,697
(4,974)722
12,28498
5,088(4,245)842
19,296
1,113

1,621
2,628
767
(278)
4,739
25,220101,257

1,553
3,037
780
(411)
4,959
25,369101,448

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
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, 2019

As of March 31, 2020

18,516
13,458
1,546
1,499
1,165
321
84

14,381
7,644
1,959
1,543
1,339
324
64

95

105

–
3,242
39,93010
4,866
32,240

200
8
6,209
111
6,531
46,462

2,095
9
6,153
91
8,349
40,5908,225
7,508
39,967(629)
55,071

8,225
7,508
46,081(537)
61,277

273

143

(0)
(193)
(494)
(414)
138
54,795
101,257

–
(178)
(525)
(560)
140
60,857
101,448

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Advances received
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Provision for share-based remuneration for
directors (and other officers)
Other provisions
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
Deferred gains or losses on hedges
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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
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
Provision of allowance for doubtful accounts
Compensation for damage
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of right of using facilities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on abandonment of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Fiscal year ended
March 31, 2019
(From April 1, 2018 toMarch 31, 2019)92,27369,353
22,91916,361
6,558-7-(Millions of yen)
Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)
96,515
69,232
27,282
17,374
9,908

18
27
5

44
28
81

138

170

68
259

59
383

85
60
101
15
16
279
6,538

136
41
78
91
13
362
9,929

39
–
–
39

5
4
0
9

0
12
172
185
6,392
2,045
(123)
1,921
4,470
17
4,452

–
39
49
88
9,850
3,014
(336)
2,678
7,172
10
7,162

Consolidated statement of comprehensive income

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

Fiscal year ended
March 31, 2019
(From April 1, 2018 toMarch 31, 2019)
4,470

-8-

(Millions of yen)
Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)
7,172

(35)

(129)

0
(265)

0
20

(109)

(32)

(2)

(1)

(413)
4,057

(143)
7,029

4,048

7,015

8

14

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

8,225

7,508

Balance at
beginning of
periodRetainedearnings
36,170Treasury shares

Total
shareholders’equity(355)

51,548Changes during
periodDividends ofsurplus

(656)

(656)

Profitattributable toowners ofparent

4,452

4,452

Purchase oftreasury shares

(273)

(273)

Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period

–

–

3,796

(273)

3,522

8,225

7,508

39,967(629)

55,071

Accumulated other comprehensive income

Balance at
beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated othercomprehensiveincome

312

(0)

59

(381)

(10)

Noncontrollinginterests

Total net
assets142

51,681

Changes during
periodDividends ofsurplus(656)

Profitattributable toowners ofparent4,452

Purchase oftreasuryshares(273)

Net changes
in items otherthanshareholders’equity

(38)

0

(253)

(112)

(403)

(4)

(407)

Total changes
during period

(38)

0

(253)

(112)

(403)

(4)

3,114

-9-

Balance at endof period

273

(0)

(193)

- 10 -

(494)

(414)

138

54,795Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

8,225

7,508

Balance at
beginning of
periodRetainedearnings
39,967

Treasury shares

Total
shareholders’equity(629)

55,071

Changes during
periodDividends ofsurplus(1,047)(1,047)

Profitattributable toowners ofparent

7,162

7,162

Purchase oftreasury shares
Disposal oftreasury shares

(8)

(8)

(0)

100

100

Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period

–

–

6,114

91

6,206

8,225

7,508

46,081(537)

61,277

Accumulated other comprehensive income

Balance at
beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit
plans

Total
accumulated othercomprehensiveincome

273

(0)

(193)

(494)

(414)

Noncontrollinginterests

Total net
assets138

54,795

Changes during
periodDividends ofsurplus(1,047)

Profitattributable toowners ofparent

7,162

Purchase oftreasuryshares(8)

Disposal oftreasuryshares100- 11 -

Net changes
in items otherthanshareholders’equity

(130)

0

15

(31)

(146)

2

(144)

Total changes
during period

(130)

0

15

(31)

(146)

2

6,061

Balance at endof period

143

–

(178)

(525)

(560)

140

60,857- 12 -

(4) Consolidated statement of cash flows
Fiscal year ended
March 31, 2019
(From April 1, 2018 toMarch 31, 2019)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Interest and dividend income
Insurance claim income
Interest expenses
Foreign exchange losses (gains)
Compensation for damage
Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on sales of non-current assets
Loss on abandonment of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of right of using facilities
Decrease (increase) in trade receivables
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
Compensation for damage paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Loan advances
Collection of loans receivable
Proceeds from sales of right of using facilities
Other, net
Net cash provided by (used in) investing activities- 13 -(Millions of yen)
Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)

6,392
920
468
267
(45)
(5)
85
43
15

9,850
1,189
348
(107)
(72)
(81)
136
96
91

(138)

(170)

(39)
12
–
172
–
(4,168)
1,661(1,147)
2,972
(458)
7,008
45
(80)
5
(15)
(1,317)
5,646

(5)
39
(4)
49
(0)
1,873
1,820
(967)
(4,165)
1,315
11,236
84
(136)
81
(91)
(2,621)
8,553

(473)

(781)

428

21

(145)
(13)
–
(200)
250
–
(0)
(153)

(187)
(13)
5
(250)
200
0
(1)
(1,006)

Fiscal year ended
March 31, 2019
(From April 1, 2018 toMarch 31, 2019)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
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
Cash and cash equivalents at end of period- 14 -(Millions of yen)
Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)(596)–(1,200)
(273)
(656)
(12)
(20)
(2,759)(5,411)3,000(1,505)(8)(1,047)(11)(22)(5,007)

(109)

(43)

2,623
8,652
11,276

2,495
11,276
13,772

(5) Notes to consolidated financial statements
Notes on premise of going concern
No items to report
Changes in presentation
Consolidated balance sheet“Electronically recorded monetary claims - operating,” which had been included in “notes and accounts
receivable - trade” in the previous fiscal year, is to be presented separately beginning in the fiscal year
under review given that it has become more significant in terms of quantitative materiality. The
consolidated financial statements for the previous fiscal year have been reclassified to reflect thischange in presentation.
Consequently, ¥40,256 million presented in “notes and accounts receivable - trade” in the consolidatedbalance sheet for the previous fiscal year has been reclassified as ¥39,195 million in “notes andaccounts receivable - trade” and ¥1,060 million in “electronically recorded monetary claims
operating.”
Consolidated statement of income“Insurance claim income,” which had been included in “other” under “non-operating income” in theprevious fiscal year, is to be presented separately beginning in the fiscal year under review given that it
now exceeds 10% of total non-operating income. The consolidated financial statements for the previous
fiscal year have been reclassified to reflect this change in presentation.
Consequently, ¥74 million presented in “other” under “non-operating income” in the consolidated
statement of income for the previous fiscal year has been reclassified as ¥5 million in “insurance claim
income” and ¥68 million in “other.”“Compensation for damage,” which had been included in “other” under “non-operating expenses” inthe previous fiscal year, is to be presented separately beginning in the fiscal year under review giventhat it now exceeds 10% of total non-operating expenses. The consolidated financial statements for theprevious fiscal year have been reclassified to reflect this change in presentation.
Consequently, ¥32 million presented in “other” under “non-operating income” in the consolidated
statement of income for the previous fiscal year has been reclassified as ¥15 million in “compensation
for damage” and ¥16 million in “other.”Consolidated statement of cash flows“Insurance claim income” and “compensation for damage,” which had been included in “other” above
the subtotal under “cash flows from operating activities” in the previous fiscal year, are to be presented
separately beginning in the fiscal year under review given that they have become more significant. The
consolidated financial statements for the previous fiscal year have been reclassified to reflect thischange in presentation.
Consequently, ¥(448) million presented in “other” above the subtotal under “cash flows from operating
activities” in the consolidated statement of cash flows for the previous fiscal year has been reclassified
as ¥(5) million in “insurance claim income,” ¥15 million in “compensation for damage” and ¥(458)million in “other.”“Proceeds from insurance income” and “compensation for damage paid,” which had been included in“other” under the subtotal under “cash flows from operating activities” in the previous fiscal year, areto be presented separately beginning in the fiscal year under review given that they have become moresignificant. The consolidated financial statements for the previous fiscal year have been reclassified toreflect this change in presentation.
Consequently, ¥(9) million presented in “other” under the subtotal under “cash flows from operating
activities” in the consolidated statement of cash flows for the previous fiscal year has been reclassified
as ¥5 million in “proceeds from insurance income” and ¥(15) million in “compensation for damage
paid.”- 15 -

Because the monetary amount of the “income taxes refund” that was presented as a separate item in“cash flows from operating activities” in the previous fiscal year is no longer material, it has beencombined with “income taxes paid” and presented as “income taxes (paid) refund” in the fiscal year
under review. The consolidated financial statements for the previous fiscal year was reclassified toreflect these changes in presentation.
As a result of the above, ¥104 million in “income taxes refund” and ¥(1,421) million in “income taxes
paid” that were presented under “cash flows from operating activities” in the consolidated statements ofcash flows of the previous fiscal year has been reclassified as ¥(1,317) million in “income taxes (paid)
refund.”- 16 -

Segment information, etc.
[Segment information]
1. Overview of reportable segments
The reportable segments of the Company are the business units for which the Company is able toobtain respective financial information separately in order for the Board of Directors to conductperiodic review to determine distribution of management resources and evaluate their business results.
Based on a system of separate business units according to the product and service, the Company
formulates comprehensive strategies for Japan and overseas for products and services handled by eachbusiness unit, etc. and carries out its business activities.
Therefore, the Company is comprised of product and service segments based on the business units, etc.,
and the two reportable segments, Water Treatment Engineering Business Unit and Performance
Products Business Unit, handle products with similar qualities and economic characteristics andservices with similar contents.
Each reportable segment and the major products and business in the segments are as follows.
Reportable Segment

Major Products and Business

Plant Division

Ultrapure water production facilities, Purewater production facilities, Industrial processwater treatment facilities, Wastewater treatment
facilities, Wastewater recovery facilities,
Valuable material recovery facilities,
Production processing-related facilities

Service Solutions Division

Replacement of expendable items,
Maintenance, Operational support services,
Renovation/Reconditioning, Build-OwnOperate (BOO), Comprehensive maintenanceserviceStandard water treatment
equipment

Ultrapure water production systems, Pure waterproduction systems, Filters, Multi-functional
water

Water treatment chemicals

RO membrane protection chemicals,
Wastewater treatment chemicals, Cooling water
treatment chemicals, Cleaning chemicals,
Boiler water treatment chemicals

Food processing materials

Food ingredients, Food processing agents

Water Treatment Engineering
Business Unit

Performance Products Business Unit

2. Calculation of net sales, profit (loss), assets, liabilities, and other items by reportable segment
The accounting methods used for reportable segments are the same as the accounting adopted for the
preparation of consolidated financial statements.
Moreover, 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.

- 17 -

3. Net sales, profit (loss), assets, liabilities, and other items by reportable segment
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

73,843018,430320

Total

Adjustment(Note 1)

Reported inconsolidated
financialstatements

92,273
321

–
(321)

92,273–

Total

73,84318,751

92,594(321)

92,273

Segment profit

5,178

1,380

6,558

–

6,558

Segment assets

79,214

17,59896,813

4,444

101,257

Other items
Depreciation
670
249
920
–
920
Amortization of goodwill
–
3
3
–
3
Investment in entities
accounted for using equity
663
–
663
–
663
methodIncrease in property, plant andequipment and intangible
581
199
781
–
781
assets
Notes: 1. The adjustments of ¥4,444 million for segment assets are mainly deferred tax assets and long-term investment
funds (investment securities).
2. “Depreciation” and “Increase in property, plant and equipment and intangible assets” includes amortization ofand an increase in long-term prepaid expenses.

Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

77,9210

18,593336

Total

Adjustment(Note 1)

Reported inconsolidated
financialstatements

96,515
336

–
(336)

96,515–

Total

77,922

18,92996,852(336)

96,515

Segment profit

8,921

986

9,908

–

9,908

Segment assets

78,347

18,42096,767

4,680

101,448

Other items
Depreciation
888
301
1,189
–
1,189
Amortization of goodwill
–
2
2
–
2
Investment in entities
accounted for using equity
819
–
819
–
819
methodIncrease in property, plant andequipment and intangible
913
241
1,154
–
1,154
assets
Notes: 1. The adjustments of ¥4,680 million for segment assets are mainly deferred tax assets and long-term investment
funds (investment securities).
2. “Depreciation” and “Increase in property, plant and equipment and intangible assets” includes amortization ofand an increase in long-term prepaid expenses.

- 18 -

4. Matters relating to changes, etc. in reportable segments
The Organo Group has positioned the Performance Products Business Unit as one of its key businessfields in its Medium-term Management Plan and is carrying out initiatives to develop new products andestablish a production and sales system for the overseas market. Starting from the beginning of the
fiscal year ended March 31, 2020, we revised our financial results management classifications as partof strengthening the Performance Products Business Unit. As a result of these revisions, we changed
the classification of the equipment and chemical business of overseas businesses from inclusion in the“Water Treatment Engineering Business Unit” to inclusion in the “Performance Products Business
Unit.” Furthermore, to more appropriately evaluate the financial results of the Performance Products
Business Unit, our key business field, on a consolidated basis, we have changed the measurement
method of intersegment sales or transfers, etc.
Moreover, segment information for the fiscal year ended March 31, 2019 has been prepared according
to the classification method after the changes.
[Related information]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
1. Information by product and service
This information has been omitted, as identical information is disclosed in segment information.
2. Information by region(1) Net sales
Japan

Taiwan68,148

10,294China

Southeast Asia

7,667

(Millions of yen)
Total

Other

5,753

409

92,273

Note: Net sales are classified into countries or regions based on customers’ location.
(2) Property, plant and equipment
This information has been omitted as the amount of property, plant and equipment located inJapan is more than 90% of property, plant and equipment in the consolidated balance sheet.
3. Information by major customer
This information has been omitted as there is no major external customer that accounts for 10% ormore of the net sales recorded in the consolidated statement of income.
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
1. Information by product and service
This information has been omitted, as identical information is disclosed in segment information.
2. Information by region(1) Net sales
Japan

Taiwan74,992

11,502China

Southeast Asia

4,421

5,112

(Millions of yen)
Total

Other
486

96,515

Note: Net sales are classified into countries or regions based on customers’ location.
(2) Property, plant and equipment
This information has been omitted as the amount of property, plant and equipment located inJapan is more than 90% of property, plant and equipment in the consolidated balance sheet.
3. Information by major customer(Millions of yen)
Customer nameSony Semiconductor Manufacturing
Corporation

Net sales

Related segment
11,049- 19 -

Water Treatment Engineering Business Unit

[Information relating to impairment loss of non-current assets by each reportable segment]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)No items to report
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
No items to report[Information relating to amortization of goodwill and unamortized balance by each reportable segment]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Depreciation during the period

–

3

3

–

3

Balance at end of period

–

2

2

–

2

Elimination or
corporate

Total

Total

Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Depreciation during the period

–

2

2

–

2

Balance at end of period

–

–

–

–

–

Elimination or
corporate

Total

Total

[Information relating to gain on bargain purchase by each reportable segment]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)No items to report
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
No items to report
Per share information
Fiscal year ended March 31, 2019
(From April 1, 2018 to March 31,
2019)

Fiscal year ended March 31, 2020
(From April 1, 2019 to March 31,
2020)¥4,784.81¥5,301.26¥388.48¥626.05

Net assets per share
Basic earnings per share

Notes: 1. Diluted earnings per share is not presented since no potential shares exist.
2. When calculating net assets per share in the fiscal year ended March 31, 2020, common sharesof the Company held by the Officer Share Delivery Trust have been included in treasury shares
excluded from the total number of issued shares at the end of the period (85 thousand shares atthe end of the fiscal year ended March 31, 2019; 53 thousand shares at the end of the fiscal year
ended March 31, 2020). Moreover, when calculating basic earnings per share, they have been
included in treasury shares excluded from the calculation of the average number of shares
outstanding during the period (47 thousand shares in the fiscal year ended March 31, 2019; 67
thousand shares in the fiscal year ended March 31, 2020).

- 20 -

3. The basis for calculation of basic earnings per share is as follows.
Fiscal year ended March 31, 2019
(From April 1, 2018 to March 31,
2019)

Fiscal year ended March 31, 2020
(From April 1, 2019 to March 31,
2020)

Profit attributable to owners of parent(millions of yen)

4,452

7,162

Amounts not attributable to commonshareholders (millions of yen)––

Profit attributable to owners of parent
related to common shares (millions of
yen)

4,452

7,162

Average number of common shares
outstanding during the period(thousands of shares)

11,461

11,4404. The basis for calculation of net assets per share is as follows.
As of March 31, 2019

As of March 31, 2020

Total net assets (millions of yen)

54,79560,857

Amount subtracted from total net
assets (millions of yen)

138

140

[Of which non-controlling interests(millions of yen)]

[138]

[140]

Net assets at the end of period
attributable to common share(millions of yen)

54,65760,717

Number of common shares at the endof period used to calculate net assets
per share (thousands of shares)

11,423

11,453Significant subsequent events
No items to report- 21 -