ORGANO CORPORATION
Corporate Briefing Material
for Investors
Securities Code: 6368

October 2023
1

Today’s Briefing
1. Company Overview
2. Organo’s Technology and Business
Development
3. Organo’s Medium- to Long-term
Strategy
4. Stock Price Trend and Approach Toward
Shareholder Return2

Today’s Briefing
1. Company Overview
2. Organo’s Technology and Business
Development
3. Organo’s Medium- to Long-term
Strategy
4. Stock Price Trend and Approach Toward
Shareholder Return3

Company Overview:
Profile and Shareholder Composition■ Company profile
Company nameORGANO CORPORATION■ Major shareholders (top ten) (As of March 31, 2023)
Name of shareholder

Number ofshares held(Thousandsof shares)

Holdingratio(%)

Head office

1-2-8, Shinsuna, Koto-ku, Tokyo

EstablishedMay 1, 1946

Tosoh Corporation

20,37944.28

Capital¥8,225 million

The Master Trust Bank of Japan, Ltd. (Trust
Account)

4,190

9.11

Custody Bank of Japan, Ltd. (Trust Account)

2,317

5.03

DZ PRIVATBANK S.A. RE INVESTMENTFONDS

871

1.89

KBC BANK NV – UCITS CLIENTS NON TREATY

870

1.89

STATE STREET BANK AND TRUST COMPANY
505223506

1.10Mizuho Bank, Ltd.

464

1.01

VICTORY TRIVALENT INTERNATIONAL SMALLCAP FUND

395

0.86

No. ofemployees
Stock exchange
listing

2,506 (consolidated)Tokyo Stock Exchange Prime Market■ Shareholder composition
Other: 2.3%
Individuals: 11.6%
No. of shares issued:
Financial institutions
17.2%

46,359 thousand
sharesBNYMSANV RE BNYMSANVDUBRE LEGAL (AND)393
Domestic corporations GENERAL UCITS ETF PLC
46.4%
No. of shareholders:
STATE STREET BANK AND TRUST COMPANY
6,913
379
505253Foreigners* The treasury shares (337 thousand shares) are excluded in
22.5%
the calculation of the holding ratio shown above.

0.85

0.82

4

Company Overview:
Management Philosophy and Vision■ Management Philosophy

Organo serves as a valuable partner company by leveraging its leading-edge
technologies cultivated through long experience with water treatment, bycontributing to the industries that create the future, and by playing a key role inthe development of societal infrastructure.

■ Long-term Management Vision

At Organo, we seek to expand our business through high value-added
separation and purification as well as analysis and manufacturing technologies,
and by providing products and services that promote the creation of value andwhich resolve the challenges that confront industry and society.
We proactively contribute to a better tomorrow by cultivating people today who
will improve upon the way things were done yesterday, as a company where all
employees are energetic and passionate about their work.

■ Sustainability Policy
Together with its stakeholders, Organo aims to realize a sustainable society forthe future and improve our corporate value.

E

Masayuki Yamada
Representative Director and President

Leveraging its leading-edge technologies cultivated through long experience withwater treatment, Organo provides environmentally-friendly products and services that
contribute to water environment conservation and prevention of global warming.

will respect human rights, diverse values, and individuality while promoting the
S We
creation of a workplace where each and every employee can grow and flourish.
will carry out our corporate activities with integrity and fairness,
G Weemphasizing dialogue and cooperation with all stakeholders.
*Leveraging its leading-edge technologies cultivated through long experience with water treatment refers to our pursuit ofwater treatment-related separation and purification, analysis, and engineering technologies, and our provision of optimal
systems and services that meet the needs of society through a combination of these technologies.

5

The Organo Group’s Business Structure
Performance Products Business Unit

Water Treatment Engineering Business Unit
| Plant Division| Water Treatment Chemicals Div.
Pure and ultrapure water facilities
Wastewater treatment and recovery facilities
Valuable material recovery facilities
Production processing-related facilities| Service Solution Division
Facilities maintenanceOperational support services andcomprehensive maintenance
Facility enhancements, renovation andreconditioning
Contract water treatment

Treatment agents for wastewater, coolingwater, cleaning and RO membranes, boiler
waters, etc.

¥111.6billion(84.3％)¥20.8
billion| Standard Water Treatment
Equipment and Filters Division
Pure and ultrapure water
systems
Water purification filters(15.7%)| Food Products Division| Sales by Segment¥50.0 billion(45%)¥61.5 billion(55%)[Service Solutions][Plant]¥132.4billion(FY03/2023)| Sales by Market¥75.4 billion(68%)[Electronics Industry]

Food additives andprocessing agents
Food ingredients

Consolidated net sales¥24.3
billion(22%)¥11.7 billion(10%)[GeneralIndustry][Electric Power/Water Supply
and Sewage]| Sales by Segment¥8.0 billion(39%)¥7.0 billion(34%)¥5.7 billion(27%)[Water Treatment
Chemicals][Standard
Equipment/
Filters][Food
Products]*Amounts represent sales for FY03/2023, percentages represent share of total sales.

6Organo Group Network
Domestic Network
Iwaki Factory■ Southeast Asia
Tsukuba
Factory

Factory that
assembles large-scalewater treatment plant
units

Domestic Sales
Service Sites

Global Network
Malaysia, Thailand,
Vietnam and Indonesia[US] Organo USA, Inc.

■ East Asia
China, Taiwan

World-leading ion
exchange resin
refineryR&D Center(Sagamihara)

Established a local subsidiary
Semiconductor production in the US (Sept. 2021)
share by region(2023; WSTS survey)
Europe11%
United States

The company has
established anationwide sales andservice network.

■ North America

The R&D Center promotes
research and development
into cutting-edge water
treatment and separation
and refining technologies.

25%
Japan
9%

To date, the Group has
primarily expanded into areas
where the electronics industry
is prominent, including Japan,
China, Taiwan, and Malaysia.

Asia Pacific55%

In September 2021, the Groupestablished a US subsidiary
based in Arizona in conjunction
with customers' factory
expansions.

7Organo’s History
Development

GrowthEvolution

Expansion
2010’s~| Semiconductor market
expansion
Taiwan/China markets
growth• Historical sales

2000’s~1990’s| Overseas development| Ultrapure water| Strengthening of service
facilities for thesolutionselectronics industry
1980’s| Water treatment facilities
for power plants
1970’s| Water supply and sewage
facilities| Refining facilities for sugar
solutions, otherFounded 1946
| Athermal water
distillation equipment

1960

1960’s| Large-scale purewater equipment for
general industry

2005~| Full-scale launch ofcomprehensive
service solutions

America ■(2021)■ Indonesia(2013)■ Thailand (1989)■ Taiwan(2005)■ China (2003)■ Malaysia (1986)■ Vietnam (2010)
1970

1980

1990

2000

2010

2022

8

Performance Growth From Expansion Period to Recent| Growth in the electronics industry

WSTE Global Semiconductor Market (hundred million dollars)

SEAJ semiconductor manufacturing equipment (trillion yen)

4,122

3,058

1.4

3,358

1.5

3,351

1.6

4,687

5,558

5,740

3.9

4.1

4,403

4,123

3,389

2.0

2.5

2.7

2.8

2.5

132.4

112.0 75.4
92.2
78.7

81.1

79.2 39.0 41.9

68.7 30.3
25.8 26.6
Electronics 62.0 22.1
Industry 19.2
Net Sales
Overseas18.3 19.2 16.9
Net Sales 14.0 12.3
3.9

0.8

2.3

4.1

100.6

96.5

24.1

9.9

58.2

47.6

21.5

49.6
38.9
15.2

24.9
10.8

By region, the Taiwanese and Chinese markets
are growing strongly.
Investment in semiconductor areas, such as
foundries and memory, is expanding.
The company captured a large share of the
Taiwanese market for ultrapure water systems.

| Profitability improvements

6.5

3.8

Operating Profit| Expanded into Taiwanese and Chinese
markets

9.5

03/2014 03/2015 03/2016 03/2017 03/2018 03/2019 03/2020 03/2021 03/2022 03/2023

Net Sales

Our performance grew on the back of thegrowth of the semiconductor market from2018 onward.
The company expects growth to continue,
mainly in the electronics industry, in Japan andoverseas.

(Billions of yen)

On top of sales growth in Service Solutions andperformance products involving relatively highprofit margin products, the company
succeeded in improving profitability of orders
and reducing costs in the Plant Department.

9

Today’s Briefing
1. Company Overview
2. Organo’s Technology and Business
Development
3. Organo’s Medium- to Long-term
Strategy
4. Stock Price Trend and Approach Toward
Shareholder Return
10Organo’s Technology
Separating and purifying necessary substances using systems thatcombine our various technologies
Input

Raw water consistsof "water andsubstances"

Main water treatment technologies
Coagulation
sedimentation

Separates through sedimentation ofsand, soil, and algae

Dissolved air
flotation

Separate by floating oils, etc.

Membrane
filtration

Remove suspended solids, viruses, etc.

Ion removal

Remove salts and metal ions, etc.

Biologicaltreatment

Purify organic substances using thepower of microbes

Chemicaltreatment

Control water quality and treatment
speed

Combining various technologies tobuild optimal systems

Treated water

Recovered material

Waste

Using treated waterand recoveredmaterials
11What Is Pure and Ultrapure Water?
Removing substances and impurities in water as much as possible
provides various benefits, including improved product yields andquality and stable operation of facilities
One hundred-millionth that of tap water(0.000000003 g)■ Comparison of amount of substances and impurities per 1 L
Tap water
River water~300 mg/ℓ~1 g/ℓ(ppm)(main water treatment technologies)
Coagulation and gravel
filtration treatment

one hundred-thousandth that of tap water(0.000003 g)

Membrane filtration(MF/UF) treatment

Ion exchange resin/RO membrane
treatment(main substances and impurities)

Suspended solids(sand and clay)
~1 mm

Pure
water
~3 μg/ℓ(ppb)

Bacteria and algae~1 μm
1 μm = 1/1,000 mm

Viruses and fine particles~30 nmUltrapurewater~3 ng/ℓ(ppt)• Cleaning of semiconductors,
electronic parts, etc.
• Water used for thermal andnuclear power plant turbines• Microanalysis at medical
and research institutions, etc.

Particles~10 nm1 nm = 1/1,000,000 mm

Sugars anddissolved salts
~1 nm
12

Organo’s Water Treatment Technologies That
Support Industry and Daily Life
Electronics Industry

Water purification
plantsCleaning water and water
treatment closed systems

Pharmaceutical/
cosmetics

Water supply system

Manufacturing
water and water
treatment systems

Manufacturing
water and water
treatment systems

Buildings andcommercial facilities

Medical and research
institutions
Analysis pure andultrapure water systems

Cooling water treatment
chemicals, etc.

Other
Aquariums, fisheries facilities,
Super-Kamiokande, etc.

Thermal and nuclear
power plants
Water for power generation
turbines, various water
treatment systems

Water Treatment Engineering Unit
Electronics Industry

Semiconductors,
panels, electronicparts, etc.

Foods/beverages

General Industry

Social Infrastructure

Pharmaceuticals andThermal and nuclear
cosmetics, foods andpower plants, water
beverages, mechanical supply and sewage
and chemical uses, etc.

Chemicals/machinery
Cleaning/boiler water
and water treatment
systems

Convenience
stores/restaurants
Coffee machine andvending machine filters

Sewage treatment plants
Sewage treatment facilities

Performance Products Business Unit
Water Treatment
ChemicalsStandard Equipment
and Filters

Food Products

Various manufacturingindustries, buildings
and commercial
facilities

Medical and research
institutions,convenience
stores/restaurants

Food/beverages,
nursing care,food/health food13

Water Treatment Engineering and Business Cycle| R&D and sales activities• Joint experiments are
conducted with customers for
projects with cutting-edge
technologies or in other cases.
• In some cases, the company
presents proposals not only for
new projects but also formodification and enhancementof delivered facilities.

Sales andplanning

Design andprocurement| Plant Business
Facility scale• Investment amount per water treatment
facility is scale of tens of millions of yen
to over 10 billion yen.

Manufacturing
and construction

R&D

Construction period• Construction period for large
facilities ranges approx. from12 to 24 months.

Recording of orders
and sales| Service Solutions
Business• Maintenance services fordelivered facilities have a highrepeat rate.
• Solution business development,
which includes contract service
agreements for facilities that we
install in customer’s plant andoperational support services andcomprehensive maintenancecontracts.

Comprehensive
service solutions

Installation andconstruction• Orders are recorded at theconclusion of contract.
• Sales are recorded according to
the progress of construction.

Profitability management
and trends

Facilities
maintenance

Test operationand delivery• Management of risk of certain
additional costs by factoring theminto construction budgets.
• Profitability is also affected bymarket trends in capital investment.
In the past, profit margins havedeclined due to intensifiedcompetition caused by decreased
investment.

14Performance Products Business Unit Business Overview
Standard Equipment/Filters

Standard Equipment

Provide high-purity water used
for such purposes as
experiments, analysis, and tests
at research institutions, hospitals,
and similar facilities◆Ultrapure water production systems◆Pure water systems

Water Treatment Chemicals
Industrial processwater treatment
facilities

Wastewater
treatment
facilities
Wastewater treatment facilities

RO water treatment
chemicals
Ultrapure water systems
PURIC μPURIC, PURELITE
α series

Delicious and safe water perfectfor drinking water and coffee

Filters

Water purification filters forconvenience stores, kitchens, vending
machines, etc.

Manufacturing
plant building

slime control agent
scale inhibitors, etc.

Boilerroom

Cooling
tower

Cooling water treatment
chemicals

Boiler water treatment
chemicalsslime control agent
dispersant, etc.

deoxidizer, dispersant,boiler compound

Wastewater treatment chemicals

Cleaning chemicals

coagulant, nutrients, defoamer, etc.

chemical cleaning agent, slime removal agent, etc.

Chemicals to achieve the optimal water quality
management for various purposes at plants and building

Food processing materials
Food processing materials that meet the needs of the times, including
food ingredients, food processing agents, etc., for the senior meal andnursing meal market, home meal replacement market (boxed lunches
and prepared dishes), functional foods, and nutrition enhanced goods.

ORGANO FILTER
D-4D◆ Gelling agents and thickeners for jelly, sauces, etc.
◆ Food ingredients, such as protein and dietary fiber15

Semiconductors and Water
Of the many processes required in thesemiconductor manufacturing operations,the cleaning process is said to account for
about 30%.
Ultrapure water is used in the cleaning
process, which is repeated before and after
wafer fabrication, film deposition, etching,resist, etc.
Ultrapure water contributes to yield improvement.
The circuit width (linewidth) of cutting-edge
semiconductors is 5
nanometers (nm) or less.

Silicon wafer

Adhesion of fine particles tocircuits deteriorates the yield(good product rate).
=> Ultrapure water is used
for cleaning.

How
much

Excellent technology and value

Impurity
concentration

1 ppt orless

The mass concentration is one trillionthof a trillionth. The amount of impurities
dissolved in ultrapure water in an
Olympic 50 m swimming pool (2,500 m3)
is equivalent to a teaspoon (2.5 mg) ofan earpick.

Volumeof waterproduced

1,000
ton/hourLarge-capacity high-performance pumps
and large-diameter piping are used.
Filled an Olympic 50 m swimming pool
(2,500 m3) in 2.5 hours.

80％

Semiconductor plants use a large
amount of water for cleaning and otherpurposes, but at cutting-edge plants,
more than 80% of water is recovered
and reused, utilizing technology that not
only recycles water but also recovers
valuables contained in wastewater.

What

Water
recoveryrate

Organo provides ultrapure water supply facilities forcleaning wafers and chips, treatment facilities torender wastewater from cleaning and othermanufacturing processes harmless and reduce waste,water recycling systems, and systems to recover andrecycle fluorine, rare metals, and other valuable
materials from wastewater.
16

Supplying Ultrapure Water to Super-Kamiokande17Ultrapure Water Systems Also Contribute to theObservation of Neutrinos
We supply 50,000 t of ultrapure water to SuperKamiokande, the world’s largest water Cherenkov
detector. Masatoshi Koshiba and Takaaki Kajita won
the Nobel prize in 2002 and 2015, respectively, fortheir research on neutrinos.

In 2020, we succeeded in removing ions while
retaining Gd3+ and SO42- using special ion
exchange resin jointly developed by the Universityof Tokyo and Organo. This contributed toincreasing the sensitivity of neutrino observations
with the introduction of Gadolinium.

Source: website created by Kamioka Observatory, ICRR, the University of Tokyo18

Today’s Briefing
1. Company Overview
2. Organo’s Technology and Business
Development
3. Organo’s Medium- to Long-term
Strategy
4. Stock Price Trend and Approach Toward
Shareholder Return
19Medium- to Long-term Management Plan
“ORGANO 2030”
Aspire to be a Global Partner
CompanyLong-term Plan (~2030)
Net sales:¥200.0 billion
Operating profit:¥30.0 billion(%):
15%
Maintain a stable ROE of 12% or more

■ Become a global leader of the water treatment
solutions for semiconductors■ Expand our range of chemicals and functional
materials to be the customer’s first choice■ Achieve sustainability goals

Medium-term Management
Plan (~03/2026)
Net sales:¥170.0 billion
Operating profit: ¥18.5 billion
(%):
10.9%
ROE:
12.6%

Expand into new businesses andregions of operation■ Expand business in the U.S. market■ Increase overseas development in Performance Products
including chemicals■ Enhance and deploy new service solutions

Streamline operations and create
new business opportunities■ Increase efficiency and capacity in engineering operations■ Enhance development of new water treatment, separationand purification technologies, service solutions, etc.
■ Expand the business structure in each country and region

Next Management Plan(~03/2024)
Net sales:¥150.0 billion
Operating profit: ¥16.0 billion
(%):
10.7%
ROE:
12.6%

20

Medium-term Management Plan and Sustainability
Goals and Material Issues
Medium-termManagement Plan
Focused Areas
Electronics Industry
Expand efforts to develop business globally,
including the US, Taiwanese and Chinese markets

Water Treatment
Chemicals
Reinforce value chain
and overseas
development

Functional
Materials
Reinforce supply chain
and enhancedifferentiated merchandise

Sustainability Goals
and Material Issues
Achieve ContinuousBusiness Growth
Contribute to a sustainable global
environment
Provide high-value-added products andservices by leveraging technologicalcapabilities

Establish andExpand Systems

Build a Business
Foundation

Engineering

Strengthen governance and ensurecompliance

Promote automation and enhance efficiency
Increase capacity

Service Solutions

R&D

Enhance overseas
development andservice menu

Reinforce development
foundation and create
new businesses

Create a workplace where diverse humanresources can play an active andrewarding role
Strengthen supply chain management

21Medium-term Management Plan:
Performance Targets(Billions of yen, %)Net Sales, Operating Profit, and ROE Trends

12.6

12.7

10.4

10.7

12.6

14.5
12.9

11.1

10.6

ROE

Net Sales

100.6

160.0
150.0 140.0
132.4 130.0
125.0

Operating Profit10.8 11.7
9.5
03/2022

03/2023

03/2021-03/2023 Actual

16.0

17.2

18.5

14.0

12.5

03/2024

03/2025

03/2026

New Medium-termManagement Plan
(03/2024-03/2026)

Previous Medium-termManagement Plan
(03/2023-03/2025)

Expand sales to ¥170.0 billion, mainlyin the electronics industry, on theback of order backlog at a high level.
Strengthen both Service Solutions andPerformance Products businesses asstable revenue sources.

• Investment for growth andsecuring stable revenues

112.0
15.2

03/2021170.0• Expansion of sales scale

Balance expanding capacity andinvestment for growth with securing
stable revenues.
Record a stable ROE of 12% or more.

• Initiatives for Sustainability Goals
Achieve sustainability goals to continue
business growth and build a businessfoundation
22

Medium-term Management Plan: Sales by Segment(Billions of yen, %)Sales by Segment
Performance Products

Service Solutions

Plant

Electronics Industry

Expand both Plant and Service
Solutions, mainly in the electronics
industry.

170.0• Plant

24.0

132.4

+15.3%

67.0

112.0

20.8

19.3

50.0

107.0

75.4

+41.7%

100.6
18.2
43.3
47.6

45.6
58.2

+34.0%

79.0+28.3％

39.0

47.0

61.5

03/2021 03/2022 03/2023• Electronics Industry

Expand the salesof Service
Solutions andFunctional
Products, both ofwhich are stablerevenue sources,
to ¥91.0 billion

Expand sales in
the Plant businessas well on theback of orderbacklogs at a highlevel

03/2026

Deliver large-scale facilities forsemiconductors in Japan, Taiwan,
China, the U.S., and other markets.

• Service Solutions
Expand facility-owned services.
Strengthen digital Service Solutions
that include automatic operation andremote monitoring of facilities.

• Performance Products
Strengthen overseas sales expansion
centered on water treatment chemicals
and small equipment.

(Final Fiscal Year)

23

Expand Service Solutions: Facility-owned Services
Install water treatment facilities as our own facilities in customer plants
Provide operational support and maintenance services and receive
compensation for water treatment services
OrganoUltrapure waterproduction systems

Customer plant
Provide ultrapure water andwastewater treatment services

Wastewater treatment
facilities

Own the facilities
Operational support
MaintenanceCompensation

Semiconductor/panel
plants, etc.

・Investment in construction: ¥5.0 billion in FY03/2022, ¥14.5 billion in
FY03/2023, and ¥11.0 billion in FY03/2024.
・Annual net sales are projected to post approx. ¥5.0 billion or more in
FY03/2023, exceeding ¥10.0 billion in FY03/2025, when all invested facilities
are scheduled to be in operation.
24

Expand Service Solutions: Data Utilization
Reinforce service solutions that use digital technology
Provide customers the value of lower costs, greater
energy efficiency, less labor, decarbonization, etc.
Develop Ortopia J
remote monitoring services

Water heat utilization systemthat is energy efficient and contributes todecarbonization using the heat of water
Uses heat pump technology to transform the heat ofwater from factories and other facilities into energy.
Reduces power consumption and CO2 emissions
more than 50%.
* The Energy Conservation Center, Japan Chairman’s Awardof the FY2016 Energy Conservation Grand Prize

Cooling water treatment DX-basedenergy-saving service solution

ORSMART CW

Strong sales of the ORTOPIA J remote monitoring
services for water supply and sewage facilities, androbust expansion into the electronics industry and generalindustry. Work to expand proposal-based service
solutions, such as improved facilities and greater overall
and energy efficiency based on use of operating data.

Achieve continued energy efficiency and stable
operation through the monitoring of cooling water
quality and heat exchanger fouling index and the
optimal use of chemicals by leveraging AI.
* Director-General Prize of the Agency of Natural Resources
and Energy of the FY2022 Energy Conservation Grand Prize

25

Expand Service Solutions:Contribute to Sustainability
Technology for recovering hydrofluoric acidfrom wastewater

Circulating water resource recycling system

Closed System

ECOCRYSTA

Recovers hydrofluoric acid used insemiconductor manufacturing fromfactory wastewater.
It is then refined as high-purity pellets andrecycled as raw material for hydrofluoricacid.
Wastewatercontaininghydrofluoric acid
Semiconductor
factory
SupplySeparate collection and recycling ofwastewater from factories, reducing
wastewater other than rainwater to zero.
Impurities are dehydrated and dried, andthen reused as raw materials for cement.

Provideindustrial
process water
ECOCRYSTA

Sell

High-purity
fluorine

Recoveredfluorine(CaF2)

Hydrofluoric acidmanufacturing plant
Japan Environmental Management Association for Industry
Fiscal 2014
Resource Recycling Technology/System Award Minister of
Economy, Trade, and Industry Prize

Ground water,industrial water↓
Filter andsterilize↓
Ion exchange
resin/RO
membrane↓Pure water

RecycleIon exchange
resin
↓
RO
membrane↓
Evaporation
andcondensation↓
Cementmaterial

Wastewater
treatment
Filter, absorption,
biologicaltreatment↓
Coagulation
sedimentation,
dissolved air
flotation↓
Adjust pH

Awarded 24th (March 2022) Minister of Economy, Tradeand Industry Prize for Japan Water Grand Prize
Delivered wastewater recovery and treatment equipment
to Oita Canon Materials Inc.
(quote: Oita Canon Materials Water Recycling Activities
https://oita.canon/env/water.html)

26

Business Domain Expansion: Develop Separation and
Purification Technologies for Substances Other than Water
What is separation and purification technologies?
Purify to a high degree useful components by removing unnecessarycomponents through separation
イオン
Ion
exchange

交換

Filtration
ろ過

Absorp吸着
tion

Coagulation
凝集
sedimen- Deaeration
脱気
tation沈殿

Dehyd脱水
rationUltrapure water for
半導体用超純水
semiconductors
Industrial process water
Water
水 用水・排水処理
and wastewater treatment

Wastewater recovery
排水回収Applicationof existing
technologies

Sugar and alcohol
糖・アルコール精製
refinement

Non非水
water Lithium-ion battery

LiB材精製material refinement• Purify and recycle solvent used for manufacturing cathode material of lithium-ion batteries (LiB).
Distillation method(Traditional methods)

Ion exchange + membrane separation(Our method) (filtration)

Use of heat

Large

LittlePurification
location

Outside plants(send outside plants)

Inside plant(do not send outside)

Contribute to reduction in CO2 emissions
and reduce use of resources27

Today’s Briefing
1. Company Overview
2. Organo’s Technology and Business
Development
3. Organo’s Medium- to Long-term
Strategy
4. Stock Price Trend and Approach Toward
Shareholder Return28

Share Price Trend
Share intrading unit

Share price¥4,115100 shares

Investment
amountMarket¥411,500

Tokyo Stock
Exchange
Prime Market(as of July 31, 2023)

Conducted 1-4 stock split dated October 1, 2022
Share price(yen)

Trading volume(10,000 shares)

2,500
3,000
2,000
1,500
1,000

500

500
0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2017

2018

2019

2020

2021

2022

2023

29

Shareholder Return Policy(Yen, %)
Dividend per share and dividend payout ratio
Image up to FY03/2026

66.0

62.0
(24.2%)

40.0(19.9%)

28.5(18.5%)(27.0%)

Shareholder Return Policy
Achieve a balance between
shareholder returns andincreased growth investment,
aiming for continued
dividend increases and adividend payout ratio of
30% or more

• Dividends increased as a result of
improved business performance.
In FY03/2023, the company upwardly revised
the dividends for the first half and the full year
as a result of the improved performance.
The annual dividend per share increased 55%
year-on-year to ¥62 per share.
The dividend payout ratio of 25%, the target ofthe previous Medium-Term Management Plan, is
expected to be achieved in FY03/2024.

• Shareholder return policy
At present, shareholder returns are considered
to be centered on dividends.
Achieve a balance between shareholder returns
and increased growth investment, aiming forcontinued dividend increases and a dividend
payout ratio of 30% or more.

03/2021 03/2022 03/2023 03/2024 03/2025 03/2026
The dividend amounts in the graph are based on the
post-share-split effective October 1, 2022.

(Final Fiscal Year)30

Organo Total Shareholder Return (TSR)
We achieve a return that dramaticallyoutperforms the TOPIX as a result of continued
increase in share price and growth in dividends.
500

471.0

400
329.6

Organo300

TOPIX net total return
215.9

200
100

176.2
100

99.9

100

95.0

85.9

03/2018

03/2019

03/2020

122.1

124.6

131.8

03/2021

03/2022

03/20230* Index of closing share price and annual dividend foreach fiscal year (cumulative amount since FY03/2019)with share price as of the end of March 2018 as 100.
31

External Recognition and Index Inclusion

ORGANO Group was selected as a constituent stock of the JPX-Nikkei
Index 400, the JPX-Nikkei Mid and Small Cap Index, a stock index
calculated by Nikkei Inc. and JPX Market Innovation & Research, Inc.

We have also been chosen for inclusion in indexes such as
Russell/Nomura Prime, S&P/JPX Carbon Efficient Index, Nomura RAFI,and FTSE Blossom Japan Sector Relative. Further, our stock was also
evaluated as a benchmark for ESG investing and passive management.
32

Coverage by Overseas Media
Newsweek International(June 23, 2023 issue)

TIME(July 23, 2023 issue)

https://www.theworldfolio.com/interviews/watertight-technologyfor-global-industry/5721/

https://partners.time.com/partners/global-kigyo/pure-water-puretechnology/?prx_t=zH8IAAAAAAmP8PA&utm_campaign=185027&
prx_ro=s

33

Thank you for your attention.
Websitehttps://www.organo.co.jp/english
This material was created to introduce the company. The figure of plans, forecasts,
and similar items in this document regarding business are based on information
available at the time of preparation and are therefore subject to risk and uncertainty.
Actual performance may differ from these projections.

34