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Consolidated Financial Results for the First Three Months of
the Fiscal Year Ending March 31, 2021
<under Japanese GAAP>
July 30, 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 to file quarterly securities report:
August 7, 2020–
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results presentation meeting:
None
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 three months of the fiscal year ending March 31, 2021
(from April 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen% Millions of yen% Millions of yen%
Three months ended
June 30, 2020
19,585(2.8)
339(74.0)
382(72.0)
June 30, 201920,149
19.0
1,305
–
1,367
–
Note:
Comprehensive income: Three months ended June 30, 2020
¥ (203) million [–%]
Three months ended June 30, 2019¥824 million [–%]

Basic earnings
per share
Three months ended
June 30, 2020
June 30, 2019

Millions of yen

(58)
807

%

–
–

Diluted earnings
per shareYen(5.12)
70.68

Yen

–
–

(2) Consolidated financial position
Total assets
As ofJune 30, 2020
March 31, 2020
(Reference) Equity: As of June 30, 2020

Net assets

Millions of yen

95,963
101,448¥59,874 million

Equity-to-asset ratio

Millions of yen

59,99860,857
As of March 31, 2020

%

62.4
59.9
¥60,717 million

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

Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021

Yen–

Fiscal year-end

Yen

47.00

Total

Yen

–

Yen

57.00

104.0052.00

104.00–Fiscal year ending
March 31, 2021
52.00–
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

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 yenSix months ending
45,000(3.6)
2,000(63.3)
1,950
September 30, 2020
Fiscal year ending
100,000
3.6
7,200(27.3)
7,100
March 31, 2021
Note:
Revisions to the earnings forecasts most recently announced: None%

Millionsof yenBasicearnings
per share%Yen(63.3)

1,200(67.0)

104.77(28.5)

4,700(34.4)

410.36

Any impact amount factored in for the impact arising due to the proliferation of novel coronavirus disease (COVID-19) islimited to the amount that can be assumed at this stage. We will accordingly revise our earnings outlook as developments
unfold. Please refer to “(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements” in“1. Qualitative information regarding financial results for the first three months” 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) 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 8 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: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2020

11,589,925 shares

As of March 31, 2020

11,589,925 sharesb. Number of treasury shares at the end of the period
As of June 30, 2020

136,678 shares

As of March 31, 2020

136,593 sharesc. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
For the three months ended June 30, 2020

11,453,311 shares

For the three months ended June 30, 201911,423,035 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
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 three months” on page 3 of theattached material 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 three 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 ......3
2. Quarterly consolidated financial statements and significant notes thereto ..............................................4(1) Consolidated balance sheet ......................................................................................................................4(2) Consolidated statement of income and consolidated statement of comprehensive income ................6
Consolidated statement of income (cumulative) ....................................................................................6
Consolidated statement of comprehensive income (cumulative) ..........................................................7(3) Notes to quarterly consolidated financial statements ............................................................................8
Notes on premise of going concern ..........................................................................................................8
Notes on substantial changes in the amount of shareholders’ equity ...................................................8Application of special accounting for preparing the quarterly consolidated financial statements ...8
Additional information ............................................................................................................................8
Segment information, etc. ........................................................................................................................9-1-

1. Qualitative information regarding financial results for the first three months(1) Explanation regarding operating results
Following the global spread of COVID-19, during the three months ended June 30, 2020 (from April 1,2020 to June 30, 2020), the Japanese and global economies have been in a state of significant turmoil.
Looking at the main markets in which the Organo Group operates, in the electronics field,
semiconductor-related demand has been firm against a backdrop of expanding use of teleworking, andin Taiwan, especially, both capital investment and production have been at high levels with continued
active investment in cutting-edge semiconductors. On the other hand, in the general industrial field,
there have been moves to curb and delay capital investment in general, and an impact has been seen insales of performance products in industries that have a major influence, such as the automotive andrestaurant industries. Furthermore, in the electric power/water supply and sewage fields, although there
has been a trend of curbing capital expenditure and large-scale maintenance programs in relation toelectric power, no major impacts were observed in regard to water supply and sewage.
Consequently, the financial results for the three months ended June 30, 2020 are as follows. Orders
received increased by 38.7% year on year to ¥27,057 million, net sales decreased by 2.8% year on yearto ¥19,585 million, and our carry-over balance for order backlog as of June 30, 2020 increased by
27.5% year on year to ¥75,003 million. On the profit side, operating profit decreased by 74.0% to ¥339
million, ordinary profit decreased by 72.0% to ¥382 million, and loss attributable to owners of parent
was ¥58 million (compared with profit attributable to owners of parent of ¥807 million in the same
period of the previous fiscal year).
Results by segment are as follows.
[Water Treatment Engineering Business Unit]
In the Water Treatment Engineering Business Unit, orders received decreased for the Plant Division in
Japan and Southeast Asia amid moves to curb and delay capital investment in the general industrial
field. In the electronics field, however. the Plant Division and Service Solutions Division in Japan
continued to perform solidly with orders expanding significantly, mainly due to aggressive capital
investment in cutting-edge semiconductors in Taiwan and a recovery in semiconductor-related
investment in China after a sharp drop in the previous fiscal year due to the impact of trade friction
between the United States and China. In addition, in the electric power/water supply and sewage fields,
orders remained about level year on year as delays in the timing of some orders for maintenanceprojects for electric power were offset by an order for a large project for water supply and sewage.
Consequently, orders received increased by 49.7% year on year to ¥22,563 million.
Turning to net sales, in the electronics field net sales decreased year on year, as certain maintenanceprojects were delayed and a major semiconductor-related project whose order was carried over fromthe previous fiscal year did not get fully underway, in addition to which a major project had beenrecorded in the same period of the previous fiscal year. In the general industrial field, net sales results
were about level year on year, as sales growth from a project in Japan that was ordered in the previous
fiscal year was offset by a decrease in sales for Southeast Asia. Additionally, sales in the electric
power/water supply and sewage fields increased slightly compared to the same period of the previous
fiscal year, due to solid performance mainly in domestic solution projects. Consequently, net sales
decreased by 2.0% year on year to ¥15,257 million.
Meanwhile, on the profit side, compared to the same period of the previous fiscal year, when there wasa concentration of sales of comparatively profitable projects and projects with prominent cost reduction
effects, the profit margin was lower due to the order environment, mainly in the electronics field. As aresult, operating profit decreased by 81.8% year on year to ¥201 million.
[Performance Products Business Unit]
In the Performance Products Business Unit, sales decreased in fields such as the automotive andrestaurant industries, which were heavily impacted by the spread of COVID-19, as well as the medical
institution field, such as examinations and general care. On the other hand, water treatment chemicals
for the electronics industry trended firmly, and the Company saw brisk sales of Orplus® slightly acidic-2-

electrolyzed water for disinfecting and deodorizing. As a result, orders received increased by 1.2% year
on year to ¥4,493 million and net sales decreased by 5.4% year on year to ¥4,327 million.
Meanwhile, on the profit side, as a result of impacts such as cost increases for strengthening the sales
structures in Japan and overseas and increased investment for development of new products andtechnologies, operating profit decreased by 30.2% year on year to ¥138 million.
(2) Explanation regarding financial position
Assets, liabilities and net assets
AssetsAssets as of June 30, 2020 amounted to ¥95,963 million, a decrease of ¥5,485 million from theprevious fiscal year end. This was due mainly to a decline of ¥4,439 million in cash and deposits and a
decline of ¥2,519 million in notes and accounts receivable - trade, despite an increase of ¥2,041 million
in inventories mainly in work in process.
Liabilities
Liabilities as of June 30, 2020 amounted to ¥35,964 million, a decrease of ¥4,625 million from theprevious fiscal year end. This was due mainly to a decline of ¥3,216, million in notes and accounts
payable - trade and a decline of ¥2,361 million in other current liabilities, despite an increase of ¥3,524
million in short-term borrowings.
Net Assets
Net assets as of June 30, 2020 amounted to ¥59,998 million, a decrease of ¥859 million from theprevious fiscal year end. This was mainly due to a decline of ¥714 million in retained earnings resulting
from the dividends paid, etc.
(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements
Looking at the current situation, earnings in the Water Treatment Engineering Business Unit are brisk
in the electronics field, while there are curbs on capital investment projects in the general industrial
field. However, there has not been a major impact on sales of service solutions such as maintenance.
Meanwhile, in the Performance Products Business Unit, while there was a temporary drop in earnings,
orders and sales are now recovering, and at this point the Company has decided to leave its forecasts
for the cumulative second quarter and the full year unchanged from those announced on May 12, 2020.
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.

-3-

2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2020
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-4-

As of June 30, 2020

13,77236,783

9,332
34,263

1,590

2,009

11,752
5,710
2,728
1,392
2,448
(98)
76,078

11,262
5,845
4,632
1,394
2,174
(95)
70,81817,909(12,562)
5,347
5,697
(4,974)722
12,28498
5,088(4,245)842
19,296
1,113

17,895(12,635)
5,259
5,664
(4,993)671
12,27395
5,124(4,300)824
19,124
1,122

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

1,531
3,008
768
(411)
4,897
25,144
95,963

(Millions of yen)
As of March 31, 2020
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
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-5-

As of June 30, 2020

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

11,164
11,168
371
1,559
536
499
108

105

131

10
4,866
32,2406
2,505
28,052

2,095
9
6,153
91
8,349
40,590

1,800
–
6,033
79
7,912
35,9648,225
7,508
46,081(537)
61,2778,225
7,508
45,367(538)
60,562

143

149

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

(340)
(497)
(688)
123
59,99895,963

(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
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
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of right to use facilities
Total extraordinary losses
Profit before income taxes
Income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Three months ended
June 30, 2019
(From April 1, 2019 toJune 30, 2019)20,14914,791
5,358
4,053
1,305

-6-

(Millions of yen)Three months ended
June 30, 2020
(From April 1, 2020 toJune 30, 2020)
19,585
15,315
4,270
3,930
339

9
12
9

5
13
96

73

–

6
111

8
124

34
11
1

22
31
–

–

25

1
48
1,367

1
81
382

0
0

2
2

1
–
1
1,366
558
807
0
807

0
0
0
383
437
(54)
4
(58)

Consolidated statement of comprehensive income (cumulative)

Profit (loss)
Other 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

Three months ended
June 30, 2019
(From April 1, 2019 toJune 30, 2019)
807

-7-

(Millions of yen)Three months ended
June 30, 2020
(From April 1, 2020 toJune 30, 2020)
(54)

(25)

6

0
21

–
(183)

21

27

(1)

0

16
824

(149)
(203)

820

(186)

4

(16)

(3) 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
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 first quarter ended June 30, 2020. However, in cases where the calculation oftax expenses using such estimated effective tax rate yields a result that is not reasonable to a 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.
Additional information
Impact arising due to the proliferation of COVID-19
There has been no material change in the assumptions regarding the impact of COVID-19 described in
the annual securities report (additional information) for the previous fiscal year.

-8-Segment information, etc.
[Segment information]
I Three months ended June 30, 2019 (from April 1, 2019 to June 30, 2019)
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

15,5730

4,575
80

20,14980–(80)

20,149–Total

15,574

4,656

20,230(80)

20,149Total

Adjustment

Segment profit
1,107
197
1,305
–
1,305
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 Three months ended June 30, 2020 (from April 1, 2020 to June 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

15,257
0

4,327
79

19,58580–(80)

19,585–

Total

15,257

4,407

19,665(80)

19,585

Total

Adjustment

Segment profit
201
138
339
–
339
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.

-9-