Financial Report for Fiscal
Year Ended March 31, 2022
Securities Code: 6368
May 19, 2022

1

Contents
１． FY ended 03/2022 Results
２． FY ending 03/2023 Plan
３． Medium-term Management Plan
４． Company Overview

2

Contents
１． FY ended 03/2022 Results
２． FY ending 03/2023 Plan
３． Medium-term Management Plan
４． Company Overview

3

Overview of FY ended 03/2022 Results■Orders, sales, and operating income reached record highs.
•

Water Treatment Engineering business benefited from a series of large semiconductor-related projects inJapan and overseas.

•

Sales of water treatment chemicals and compact equipment were strong in the Performance Products
business.
(Unit: Million JPY)

■ Water Treatment Engineering
135,698
19,581
94,563

100,638
100,000

18,213■ Performance Products
112,069
19,346103,000
19,00010,850
9,579
1,113

1,763

116,116
81,00076,22703/2022
Actual03/2022
Plan

8,250
1,200

19,00018,33603/2021
ActualOperating Income

Sales

Orders82,42403/2021
Actual

92,72303/2022
Actual

84,000

8,466

9,087

03/2022Plan

03/2021

03/2022

03/2022

ActualActual

Plan

7,050

4

FY ended 03/2022: Quarterly (three month) Results■Orders received remained high and sales progressed steadily in FY03/2022••

Increases or decreases in orders received are greatly influenced by trends in contracts forlarge projects.
Sales and profits tend to be concentrated in Q4 when delivery deadlines overlap.
(Unit: Billion JPY)
Quarterly (three-month) performance trends (orders received, sales, order backlog, and operating income)

50.5

59.1

64.1

59.3

58.8

72.6
54.3

67.8

75.0

66.5

71.1

61.8

19.4
16.9

21.8

22.7

1.3

20.1

22.6

20.6

23.8

1.3

27.0

25.7

28.0
23.4

2.0
0.3

34.2
27.6

22.4

22.3

27.8

21.6

16.9

2.4

2.0

86.4

35.5

31.9

19.5

19.5
4.1

84.2

37.2
29.1

26.5

26.2
3.6

1.4
0

27.5

30.7

70.5

41.2

39.0
30.6

76.1

2.8

4.3

2.3

4.7

1.3
2.4

Jun. 18 Sep. 18 Dec. 18 Mar. 19 Jun. 19 Sep. 19 Dec. 19 Mar. 20 Jun. 20 Sep. 20 Dec. 20 Mar. 21 Jun. 21 Sep. 21 Dec. 21 Mar. 22
Orders
Sales
Operating income
Order backlog

5

FY ended 03/2022: Overview by BusinessElectronics

GeneralIndustry
Electric Power/Water Supply and
SewagePerformance
Products••

Large projects in China and the U.S. following those in Japan and Taiwan.
Despite supply chain disruptions such as raw material shortages affecting someprojects, overall construction progressed smoothly, and sales increased.

•

In addition to a decrease in large investments due to the pandemic, large plant
project sales fell as resources were concentrated in the electronics industry.

•

Steady performance, especially in Service Solutions, and improved profitability.

••

Demand for renewal of facilities and Service Solutions.
Continued steady growth, especially in Japan.

•

Water treatment chemicals increased sales of various treatment agents for theelectronics industry.
Sales of compact deionized water equipment to medical and research institutions
recovered, and sales of the new product Puric µ (Mu) got off to a strong start.
Food business remained almost at the same level as the previous year.

••6Results for Year Ending March 2022
Unit: Million JPY

March 2021
ActualMarch 2022
ActualInitial Plan

Year-on-Year

Actual-toForecast

Orders

94,563

135,698

100,000+43.5%+35.7％

Sales

100,638

112,069

103,000+11.4%+8.8％

26,326

26,250

+8.3%

+8.6%

（%）

26.2%

28,512

SG&A1

16,746

17,66218,000

+5.5%

-1.9%

Operating income
ratio

9,579

10,8508,250+13.3%+31.5%

（%）

9.5%

9.7%

8.0%

Ordinary income

9,900

11,5458,150+16.6%+41.7%

Profit attributable to ownersof the parent company

7,074

9,210

6,500

+30.2%+41.7%

Return on Equity (ROE) (%)

11.1

12.9

9.3

ー

ー

Gross profit margin

25.4%

25.5%

1: SG&A = Selling, General, and Administrative expenses

7

Results for FY ended 03/2022: Analysis of Orders and Sales(Unit: Billion JPY)

Orders
+41.1
YoY

+35.6
YoY
+0.5

135.6

+1.2

OrdersUp ¥41.1 billion (43.5%) year on year

+34.8

+39.8

• The electronic industry continues to expand with large investments
both domestically and internationally.
• Performance Products recovered from the previous year's decline.

Surpassed plan by ¥35.6 billion (35.7%)
100

94.5
03/2021

03/2022
Actual03/2022Plan

Sales
Up ¥11.4 billion (11.4%) year on year

Sales

+1.1
+10.6

100.6

112

+11.4
YoY

03/2021

+7.7

+9
YoY

03/2022
ActualPower / Water Supply
機能商品
電力・上下水■ Performance
Products ■ Electricand Sewage• The electronics industry saw a greater-than-expected increase in thenumber and scale of projects.
• In Performance Products, water treatment chemicals and compact
equipment performed well.

+0.9

103

• Sales in the electronics industry increased due to progress inconstruction work for large-scale projects.
• In Performance Products, water treatment chemicals and small
equipment performed well.

Surpassed plan by ¥9.0 billion (8.8%)• The electronics industry saw strong orders and increased sales.
• Electric power, water and wastewater solutions were steady in Japan.

03/2022
Plan■電子産業
Electronics

8

Results for FY ended 03/2022: Analysis of Orders■Orders received increased significantly both domestically and overseas,
particularly in the electronics industry.
Japan: Increased investment in power semiconductors and wafers, in addition to expansion projects by major
customers.
Overseas: In addition to the active Taiwanese market, orders for large-scale projects in China and the U.S. also
contributed.
(Unit: Billion JPY)

NOTE: U.S. projects are included in Southeast Asia and others.

Orders(Domestic/Overseas)

Orders Overseas
by region

1,600

120%

135.6

110%

1,400

58

100%

1,200

90%

94.5
1,000

58

100

13.9

80%

70%

800

30.5

29.1
77.6

600

65.3

29.1

30.9%

16.9

30.5

50%

69.5

42.8%

400

60%

40%

4.5
7.5

3.2
6.9

30%

30.5%

20%

200

10%

0

18.9

27.1

18.5

0%

03/2021

Domestic

03/2022
Actual03/2022
Plan

Overseas

Overseas Ratio

03/2021

Taiwan03/2022
ActualChina

03/2022Plan
SE Asia/Other

9

Results for FY ended 03/2022: Analysis of Sales■Sales expanded mainly overseas, including semiconductor projects in Taiwan
and China.
Japan: Steady progress in construction of large semiconductor-related projects for which orders were received.
Overseas: In addition to Taiwan, China saw substantial growth due to increased orders in the electronics industry.
NOTE: U.S. projects are included in Southeast Asia and others.

(Unit: Billion JPY)
Sales Overseas
by region

Sales(Domestic/Overseas)

112

1,200

38.9

100%

103

100.6

90%

6.1

1,000

24.9

38.9

32.5

70%

800

24.9

60%

75.6
600

73

32.5

80%

70.5

50%

40%

4.5
13.3

3.6
5.2

7.5

400

30%

34.8%
200

31.6%

20%

16

24.8%

19.5

20.5

03/2022
Actual03/2022
Plan

10%

0

0%

03/2021
Domestic

03/2022
Actual03/2022
Plan

Overseas

Overseas Ratio

03/2021
TaiwanChina

SE Asia/Other

10

FY ended 03/2022: Sales by Segment and Customer
Water Treatment Engineering■Water Treatment Engineering business expanded sales, mainly to plants in theelectronics industry.
•

Plant sales from large semiconductor projects in Japan and overseas made a significant contribution.

•

Service Solutions remained strong in the general, electric power, and water and wastewater industries,
in addition to the electronics industry.
(Unit: Billion JPY)
Sales by Segment
92.7

1,000

900

Sales by Market

84

82.4

92.7

120%

110%

82.4

100%

11.4

800

90%

700

600

39

47

70%

500

52.5%

49.2%

51.8%

10.5

10.6
22.9

80%

40.5

84

23

24.1

60%

50%

57.8%

400

62.8%

60.1%

40%

300

200

43.3

45.6

30%

43.5

47.6

58.2

50.5

20%

100
10%

0

0%

03/2021

Service Solutions

03/2022
ActualPlant

03/2022
Plan

Service Solutions Ratio

03/2021

03/2022
Actual03/2022
Plan

Electric Power/Water Supply and Sewage
General Industry
Electronics Industry
Electronics Industry Ratio

11

FY ended 03/2022: Orders by Segment and Customer
Electronics Industry■Significant growth in the electronics industry, mainly in Taiwan, China, theU.S., and other overseas markets.
Japan: In addition to expansion projects by major customers, there was an increase in projects for power
semiconductors, wafers, and more.
Overseas: In addition to the main market of Taiwan, orders for large-scale semiconductor projects werereceived in China and the U.S.
(Unit: Billion JPY)
Electronics Industry: Orders (1st Half vs. 2nd Half)

Electronics Industry: Orders

600

49.9

82.3

900

500

800

700

400

32.3
600

38

300

19.5

23

25

15

500

47.5

53

42.5

400

12

200

10.7

22.5

14.9

13

300

25

25.6

200
100

17.3
8.8

8

13

11.8

9.5

0

100

16.9

29.2

22.5

03/2022
Actual03/2022Plan

0

1st Half 2nd Half
03/2021

1st Half 2nd Half
03/2022 Actual
Domestic

1st Half 2nd Half
03/2022 Plan

Overseas

03/2021

Domestic

Overseas

12

FY ended 03/2022: Sales by Segment and Customer
Electronics Industry■Sales grew in Japan and overseas due to progress in construction of ordered
projects.
Japan: Construction of plant projects progressed steadily, and Service Solutions sales expanded.
Overseas: Sales also increased due to a rise in orders despite the impact of process revisions in some projects.

(Unit: Billion JPY)
Electronics Industry: Sales (1st Half vs. 2nd Half)
32.8

350

Electronics Industry: Sales

700

58.2
300

25.3
250

26

25.3

22.2

600

24.5

50.5

47.6
500

19.8
10.2

200

10.8

14

13.5

400

150

33.3

27

300

100

50

21.1

13

200

11.3

15.1

11.8

13

12

11.5

0

100

26.4

24.8

23.5

03/2021

03/2022
Actual03/2022Plan

0

1st Half 2nd HALF 1st Half 2nd HALF 1st Half 2nd HALF
03/2021

03/2022 Actual

Domestic

Overseas

03/2022 Plan

Domestic

Overseas

13

FY ended 03/2022: Sales by Segment and Customer
Performance Products(Unit: Billion JPY)•

Performance Products: Sales
19.3

19

4.9

5.3

18.2

5

Water Treatment Chemicals

Standard Water Treatment Equipment/
Filters
•

6.7
6.2

6.4

6.9

7.7

7.3

03/2021

03/2022
Actual03/2022Plan

In addition to strong sales to the electronics
industry, customers' production activities in thegeneral industry were brisk, and sales ofwastewater treatment chemicals and otherproducts also grew.

Sales of compact pure water systems to medical
and research institutions recovered from theprevious year. Sales of Puric μ, a newly launchedcompact ultrapure water purification system, also
got off to a good start.

Food Products•

Sales of products for the restaurant market
recovered compared to the previous year, but
sales of products for the home food market
declined, resulting in performance similar to theprevious year.

Food ProductsStandard Water Treatment Equipment/Filters
Water Treatment Chemicals

14

Results for FY ended 03/2022: Analysis of Operating Profit(Unit: Billion JPY)
Operating income+1.2 YoY

+2.5

+0.3

10.8

-0.2

+0.2
+0.44

Surpassed plan by ¥2.6 billion (31.5%)

+0.44

-0.6

9.5

+2.0
-0.4

Performance
Products+0.6

vs. plan
+2.6

-0.1

Water Treatment
Engineering
Performance
Products

+0.6

+0.5

Sales change
SG&A change

8.2

+2.0

Water Treatment
Engineering

03/2021
ActualWater Treatment Engineering: Up ¥0.6 billion(7.3%)•
Although the profit margin declined slightly due
to an increase in the plant ratio, gross profit
increased due to sales growth, while SG&A
expenses increased mainly due to labor costs.
Performance Products: Up ¥0.6 billion (58.4%)•
In addition to sales recovery, sales of relatively
profitable products were strong, and profit
margins improved due to reductions in
manufacturing costs.

+0.5
-1.2

Up ¥1.2 billion (13.3%) year on year

03/2022
03/2022
ActualPlan
Profit margin change

Water Treatment Engineering: Up ¥2.0 billion(28.9%)•
Orders exceeded expectations and sales also
expanded, resulting in increased revenues
compared to the plan.
Performance Products: Up ¥0.5 billion (47.0%)•
Increase compared to plan due to sales
increase and profit margin improvement.
15

Contents
１． FY ended 03/2022 Results
２． FY ending 03/2023 Plan
３． Medium-term Management Plan
４． Company Overview

16Overview of FY ending 03/2023 Plan
■Orders to decline slightly, but remain relatively high; sales and profits are expected toincrease.
Orders: Expected to decrease compared to the previous fiscal year, when there was a concentration of largescale projects in Japan and overseas, but investment is expected to continue at a high level.
Sales: Seen increasing along with operating income due to sales of orders received up to the previous fiscal year.
(Unit: Million JPY)
Operating Income

Sales

Orders■ Water Treatment Engineering■ Performance Products

135,698
125,000

125,000

19,581

112,069

20,00020,00019,346116,116

03/2022

105,000

03/2023

92,72303/2022

11,70010,850

1,800
1,763

105,000

9,087

03/2023

03/20229,900

03/202317

FY ending 03/2023 Plan: Medium- to Long-Term Performance■Backlog at a high level due to increased orders, sales growth expected in FY
ending 03/2023.
••

Orders in the electronics industry, centered on semiconductors, have continued to grow from FY ended
03/2018.
Large projects have a construction period of 1 to 1.5 years; orders received are a leading indicator of sales.
(Unit: Billion JPY)
Orders received, sales, and order backlog
135.6
125.0
103.8

125.0

104.9
94.5

88.0
77.8
68.0
68.5

60.2
66.7

65.5

78.7

03/201234.6

03/2013

74.0
81.1

92.2

68.7

67.8
59.3

100.6
86.4

86.4

03/2022

03/2023

61.8

48.3

46.6

39.2

03/2014

96.5

79.2

62.0
48.7

40.1

76.4

112.0

39.2

03/2015

03/2016
Orders03/2017
Sales

03/2018

03/2019

03/2020

03/2021

Order backlog

18

FY ending 03/2023 PlanFY ended 03/2022
1 HalfFull-year
ActualActualst(Unit: Million JPY)FY ending 03/2023
1 HalfFull-year
Plan
Plan
st

Year-on-Year
1st Half

Full-year

Orders58,903

135,698

70,000125,000 +18.8％

-7.9％

Sales

50,001

112,069

60,000125,000 +20.0%+11.5％

Gross profit margin

12,40413,00030,700

+4.8%

+7.7%

(%)

24.8％

28,512

SG&A

8,632

17,662

9,000

19,000

+4.3%

+7.6%

Operating income ratio

3,771

10,8504,000

11,700

+6.1%

+7.8%

Ordinary income

4,193

11,5454,000

11,700

-4.6%

+1.3%

Profit attributable to owners of
the parent Company

2,696

9,210

2,800

8,200

+3.8%

-11.0%

Return on Equity (ROE) (%)

ー

12.9

ー

10.6

ー

ー

(%)

7.5%

25.4%

9.7%

21.7%

6.7%

24.6%

9.4%

19

FY ending 03/2023 Full-year Plan: Earnings Forecast
Orders andsales

The company expects to see continued large investments in Japan andoverseas—mainly in semiconductors—in the booming electronics industry
sector. The order backlog is also at a high level, and the construction schedule
is expected to progress smoothly at this time.

Profits

Although the profit margin is expected to decline slightly due to the expansionof plant sales, the effect of sales expansion will more than offset the increasein gross profit, and the impact of current price hikes and yen depreciation has
already been factored in. The company anticipates higher SG&A expenses
due to personnel costs, overseas system development, R&D investment,
digital investment, and other factors.

Risk factors

A decline in profit margins due to higher prices for raw materials andconstruction work caused by soaring energy and resource prices and an
excessively weak yen, or disruptions in the supply chain—such as shortages
in the supply of raw materials and delays in logistics—could delay the progressof construction work on orders received and affect our sales and profits.

20

FY ending 03/2023 Plan: Analysis of Orders and Sales(Unit: Billion JPY)
Order Comparison

OrdersDown ¥10.6 billion (7.9%) year on year
135.6

•
-10.3

YoY

125

-10.6
03/2022 Actual

03/2023 Plan
Sales Comparison

+13

112

125

Sales

Up ¥12.9 billion (11.5%) year on year

YoY

•

+12.9

03/2022 Actual

Although the forecast is for a decrease due in part to arebound from the previous year's strong performance,
investment is expected to continue at a high level.
Depending on the scale and number of investments byclients, it may exceed the forecast. On the other hand,
there are concerns about the impact of risks such as
inflation in energy and resource prices and supply chain
disruptions.

03/2023 Plan

Plans to expand sales mainly in the electronics industry
sector due to the continuation of a high level ofsemiconductor-related orders and progress inconstruction of projects with order backlogs carried over.

Electronics

21

FY ending 03/2023 Plan: Orders by Region■Orders received are expected to maintain a high level of investment despitea rebound overseas from a large increase in the previous fiscal year.

Japan: Taiwanese companies plan to receive orders for large investments in Japan.
Overseas: China and the U.S. down from the previous year, but Taiwan maintained a high level of growth,and Malaysia also expanded.
Note: U.S. projects are included in Southeast Asia and others.

(Unit: Billion JPY)
Orders(Domestic/Overseas)

Orders Overseas
by Region

1,600

80%

135.6
12.5

1,400

1,200

103.8

104.9

29.8

22.5

28.7%

82.3

60%

94.5

48

29.1

600

400

74

21.5%

30.9%
65.3

77.6

38.4%
77

200

30%

20%

10%

0

8

50%

40%

42.8%

48

13.9

58

1,000

800

58

70%

29.8

29.1

16.9

12

27.1

28

03/2023
Plan

7.4

22.5

6.9

4.3
3.1

15.4

15

18.9

03/2019

03/2020

03/2021

03/2022China

SE Asia/Other

3.2
6.9

0%

03/2019

03/2020

Domestic

03/2021

Overseas

03/2022

03/2023
Plan

Overseas Ratio

Taiwan22

FY ending 03/2023 Plan: Sales by Region■Sales are expected to increase both in Japan and overseas due to progressin construction of projects carried over from the previous year.
Japan: The company plans to record sales of orders received mainly from semiconductors and otherelectronics industries.
Overseas: Following strong sales in Taiwan and China, large projects are being booked in the U.S.
Note: U.S. projects are included in Southeast Asia and others.

(Unit: Billion JPY)
Sales Overseas
by Region

Sales(Domestic/Overseas)
12.5

1,400

11.2

1,200

1,000

96.5

92.2

90%

42

100.6

600

21.5

24.1

74.9

68.1

24.9
75.6

38.9

21.5

50%

73

6.1

5.5

40%

30%
400

34.8%

7.6

26.1%

22.3%

24.8%
10%

0

13.3

12

19.5

20

03/2021

03/2022

03/2023
Plan

China

SE Asia/Other

3.6
5.2

4.4

33.6%
20%

200

10

24.9

24.1
60%

83

6.1
80%

70%

800

42

38.9

100%

10.2

11.5

03/2019

03/202016

0%

03/2019

03/2020

Domestic

03/2021

Overseas

03/2022

03/2023
Plan

Overseas Ratio

Taiwan23

FY ending 03/2023 Plan: Sales by Segment and Customer
Water Treatment Engineering■Plans for significant growth in the electronics industry, where orders arestrong, following the previous year’s robust growth.
•

Sales of large projects for semiconductors expanded as orders continued to grow both in Japan andoverseas.

•

Service Solutions also benefited from the start of a contract for a large contract processing project.
(Unit: Billion JPY)
Sales by Segment

Sales by Market

1,200

150%

105
92.7

1,000

800

600

73.8
37.3
49.4%

77.9
36.5
53.1%

82.4

130%

54

100%

39

80%

70%

48.6%

400

77.9

10.1

11.2

24.7

24.6

36.4

41.3

43.3

51

10.6

11

11.4

22.7

22.9

24.1

52.8%

53.9%

57.8%

39

41.9

47.6

03/2019

03/2020

03/2021

50%

45.6

82.4

60%

40%

200

73.8

90%

49.2%

92.7

120%

110%

47

52.5%

105

140%

30%

20%

62.8%
58.2

67.9%
71.3

10%

0

0%

03/2019

03/2020

Service Solutions

03/2021Plant

03/2022

03/2023
Plan

Service Solutions Ratio

03/2022

03/2023
Plan

Electric Power/Water Supply and Sewage
General Industry
Electronics Industry
Electronics Industry Ratio24

FY ending 03/2023 Plan: Orders by Segment and Customer
Electronics Industry■Large orders are expected for semiconductor-related projects both in Japanand overseas in the first half of the year.
Japan: The company expects to receive orders from Taiwanese companies for domestic and wafer-related
investments.
Overseas: In addition to Taiwan, the company expects to receive orders for large-scale projects in China,
Malaysia, and other countries.

(Unit: Billion JPY)

Electronics Industry: Orders (1st Half vs 2nd Half)

Electronics Industry: Orders
1,000

82.3

900

600

49.9

72

800

500

42
34.6

400

600

32.3
38

300

13.6
200

100

20.9

9

23

19.5

13.5
4.4

700

10.7

20

30

400

15

18

14.9
8

48.1

42.5

23.7

53

38

29.2

34

03/2022

03/2023
Plan

18.1
25.6

300

200

17.3
8.8

48.8
500

22
11.8

12

0

100

25

30

03/2019

03/2020

16.9

0

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half

03/2020

03/2021
Domestic

03/2022
Overseas

03/2021

03/2023 Plan
Domestic

Overseas25

FY ending 03/2023 Plan: Sales by Segment and Customer
Electronics Industry■The company expects growth in both domestic and overseas sales of projects
to be carried over.
Japan: Construction of domestic projects is progressing relatively smoothly, and sales are expected to increase.
Overseas: Sales seen rising due to an increase in projects despite the impact of process revisions in someprojects.
(Unit: Billion JPY)
Electronics Industry: Sales (1st Half vs 2nd Half)

Electronics Industry: Sales
800

400

32.8

350

35

71.3

36.3
700

58.2
600
300

250

25.3
22.2

19.7

10.2

200

8.1
8.7

150

25.3

16.1

22.2
10.8

19.8

20

50

11

11.3

39
300

15.1

11.8

13

15

20.1

21.1

16.8

33.3

200

100

0

18.6

36.1

41.9

400

13.5

100

14.1

47.6
500

20.4

25.1

26.4

24.8

03/2019

03/2020

03/2021

03/202235.1

0

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half
03/2020

03/2021

03/2022

Domestic

Overseas

03/2023
Plan

03/2023 Plan

Domestic

Overseas

26

FY ending 03/2022 Plan: Sales by Segment and Customer
Performance Products(Unit: Billion JPY)
Sales by Segment

Water Treatment Chemicals
•

18.4

5.3

6.1

19.3

18.5

20

18.2
4.9

5.1

5

5

6.2

Standard Water Treatment Equipment/
Filters
•

6.7

6.2

In addition to expanding sales to the electronics
industry, plans to re-accelerate overseas
expansion in Taiwan, China, and elsewhere.

7

The company will expand sales of Puric μ,launched in the previous fiscal year, to medical
and research institutions. It will further
strengthen overseas development in China andother countries.

Food Products
6.9

7.1

6.9

7.7

8

03/2019

03/2020

03/2021

03/2022

03/2023
Plan

Food Products
Water Treatment Chemicals•

Efforts will be re-accelerated to develop new
customers and expand sales of new productsthat stagnated due to the pandemic with theaim of a recovery in sales.

Standard Equipment/Filters

27

FY ending 03/2023 Plan: Operating Income(Unit: Billion JPY)

Up ¥0.9 billion (7.8%) year on year

Operating Income Comparison
Water
Treatment
Engineering+0.8

Water Treatment Engineering: Up 0.8
billion yen (8.9%)

Performance
Products

＋0

•

+2.8
11.7

+0.9
YoY

+0.1
10.8

-0
-1.3

03/2022 Actual
Sales change

Performance Products: Up 0.0 billion
yen (2.1%)•-0.7

Although the profit margin is expected to
decline slightly due to an increase in the plantsales ratio, the company plans to increase
profit through sales expansion, primarily inthe electronics industry.

The company plans to expand sales in eachfield, especially in Taiwan, China, and otheroverseas markets.

03/2023 Plan
Profit margin change

SG&A change

28

FY ending 03/2023 Full-year Plan: Cash Flows(Unit: Billion JPY)

In addition to business performance, the progress ofconstruction and collection of payments for large
projects have a significant impact on the Company's
cash flow.

Cash Flow Trends

13.2

12.2
10.8

12.5

10.8
4.9

-1.3

-1.5
-2.6

-2.0

-4.6

03/2021

03/2022-10.5
03/2023 (Plan)

Cash Flow from Operating Activity
Cash Flow from Investment Activity
Cash Flow from Financing Activity
EBITDA(Operating income +depreciation and amortization)

Major developments in FY ending 03/2023•
Operating cash flow is expected to include a
total of about ¥25 billion in phased
investments by FY ending 03/2025, including
the amount invested in facility-owning Service
Solutions projects. Expansion of R&D,
overseas structure, and digital-related
expenses are also expected.
•
Plans for investment cash flow include
strengthening the Tsukuba plant andexpanding digital and R&D investments•
Financial cash flow is expected to improve
due to increased borrowings for investment inequipment-owning projects. Dividends areseen rising 25% year-on-year to over ¥1.9
billion in FY ending 03/2023.

29

Key Indicators
FY ended
03/2021

FY ended
03/2022
ActualFY ending
03/2023
Plan

Capital expenditures(million yen)

1,015

3,387

2,000

R&D expenses

2,300

2,146

2,700

1,212

1,332

1,500

16,005

15,62830,000No. of employees

2,319

2,476

2,500

Annual dividends

114

160

160

11.1

12.9

10.6

(million yen)

Depreciation(million yen)Interest-bearing debt
(million yen)

(yen)

ROE
(%)

New Laboratory Buildings(at the R&D Center)
Organo invested approximately ¥3billion to construct a new experimentalbuilding at the R&D Center. The
building will be completed by March2023.
The company will work to strengthen
the development of next-generation
ultrapure water systems and separationand purification technologies.

Image of new laboratory building*Capital expenditures include investments in intangible assets.
The annual dividend of ¥160 for FY ending 03/2023 does not take into account the stock split scheduled for October 1, 2022 (from 1 share to 4 shares).

30

Contents
１． FY ended 03/2022 Results
２． FY ending 03/2023 Plan
３． Medium-term Management Plan
４． Company Overview

31Medium-term Management Plan: 03/2022-03/2024
Focus Areas

Electronics Industry
Secure orders and delivery of large-scale projects (Japan, Taiwan, China, U.S.)
Establish a competitive global value chain••

Growth Areas

Growth Drivers

China/Taiwan Markets

Service Solutions

Establish and maintain R&D, solutions, and production
systems
Strengthen the development of the Chinese market
outside of the electronics industry•••

Develop a foundation for digital solution services
Improve global solution system and quality

Water Treatment Chemicals

R&D
•
•

•
•

Expand investment in development to 2.5% of sales
Develop next-generation ultrapure water systems forthe electronics industry
Create new business through advanced separation andpurification technologies
Strengthen sensing and digital technologies
Expand open innovation••

Expand packaged service menu
including chemicals + equipment + IoT
Expand overseas business bystrengthening the development of local
partners

Functional Materials••

Establish and maintain a global supply
chain
Develop differentiated functional
materials and create business models
that realize social value

Building a Business Foundation
Reinforceengineering
structure

ESG and SDG
initiatives

Thorough safety
and compliance

Promote datautilization

Cultivate/utilize
personnel

32Medium-Term Management Plan: FY03/2023-FY03/2025(Unit: Billion JPY/%)

Sales, Operating Income, and ROE Trends

Expand sales
•

ROE
12.9

12.4

10.6

11.1

10.7

10.4

8.3

9.0

9.3

140.0

•

Secure stable profits
•

130.0
125.0
112.0

110.0

100.6

•

103.0

14.0

Sales

9.9
Operatingincome
20.3

10.8
9.5
21.3

8.2
22.3

03/2020-03/2023 Actual

11.7

Establish a profit structure capable of consistently
achieving an operating income margin and ROE of
10% or more.

Strengthen business foundation

105.0
96.5

Expand sales to ¥140 billion, mainly in the active
electronics industry.
In addition to orders for and delivery of large-scale
projects, strengthen the Service Solutions business.

12.5
10.5

Pursue the realization of social and customer value
while developing human resources andstrengthening the engineering structure that willserve as the foundation of the business.

9.0
23.3

24.3

25.3

New Medium-term Management
Plan (FY03/2023-FY03/2025)

Previous Medium-term Management
Plan (FY03/2022-FY03/2024)

33

Medium-term Management Plan: Sales by Segment(Unit: Billion JPY/%)

Electronics Industry

Sales by Segment•
Performance Products

Service Solutions

Plant

Electronics Industry

Plant

140.0

•

23.0

112.0
96.5
18.5
41.3
41.9

100.6
19.3
18.2

+18.9%

62.0+35.8％

45.6

43.3

Expand Service
Solutions,
Performance
Products as stablerevenue sources

81.5
58.2

+39.9％

47.6
55.0
39.0

03/2020

03/2021

Expand large-scale semiconductor
projects in Japan, Taiwan, China and theU.S.

Service Solutions•

Launch large contract processing
projects in Japan and strengthen thedigitalization of Service Solutions.

Performance Products•+16.8％

36.5

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

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

47.0

03/2022

03/2025(Final Fiscal Year)34

Medium-Term Management Plan: Initiatives in Priority Areas•

In addition to receiving orders for and delivering large-scale projects in Japan andoverseas, the company will invest in large-scale equipment-owning contracts(approximately ¥25 billion by FY03/2025), develop its business structure in the U.S.,
strengthen its R&D structure in Taiwan, and enhance its Service Solutions structure in
China.

•In addition to reinforcing its structure in the U.S., Taiwan, and China targeting theelectronics industry, the company will fortify its global supply chain for functional
materials such as ion exchange resins and water treatment membranes, and its
overseas sales network for Performance Products such as water treatment chemicals,by strengthening overseas partnerships, M&A, and more.

•

Accelerate the creation of digital Service Solutions, including proposals for improving
facility efficiency and energy conservation using sensing technology, in addition toautomated operation and remote monitoring services, by consolidating group
resources in Japan and overseas.

•

Push forward the development and provision of technologies, products, and services
that combine economic value for customers and social value such as energy
conservation and decarbonization, including water recycling technologies such as
closed systems and recovery systems that capture valuable resources fromwastewater and effluents.

Electronics

Strengthen
overseas
structure

Promotedigitalization

Sustainability
services

35

Organo Sustainability Services
Technology for recoveringhydrofluoric acid from wastewater

Circulating water resource recycling system

Closed System

ECOCRYSTA

Separate 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.

Recovers hydrofluoric acid used insemiconductor manufacturing from factory
wastewater. It is then refined as high-purity
pellets and recycled as raw material forhydrofluoric acid.
Japan Environmental Management Association for Industry (JEMAI)
Minister of Economy, Trade and Industry Award, Award for Resource Recirculation
Technologies and Systems

Energy saving and decarbonization
using water heat

Organo supplied wastewater recovery and treatment equipment to Oita Canon
Materials, winner of the Minister of Economy, Trade and Industry's Prize at the 24th
Japan Water Grand Prize (citation: Oita Canon Inc. water resource reuse activities
https://www.oita-canon.co.jp/env/water.html）

Water Heat
Utilization System

Cooling water
treatment agent

Energy-saving solutions for RO
membrane treatment facilities

ORBRAIDORSMART RO

Utilizes heat pump technology toharness the heat of water used infactories and other facilities asenergy, reducing power
consumption and CO2 emissions by
more than 50%.

A cooling water complex treatment
agent containing a new sterilizing
ingredient developed by Organo.
Optimized treatment of cooling water
for air-conditioning chillers in factories,
etc., contributes to reduction of power
consumption.

Reduces power consumption and CO2
emissions of RO membrane water
treatment facilities through a uniqueservice solution that combines operation
management, remote monitoring, andchemicals.

Energy Conservation Grand Prize 2020
Energy Conservation Center, Japan Chairman's Award

Energy Conservation Grand Prize 2021
Judging Committee Special Excellence Award

Energy Conservation Grand Prize 2016
Energy Conservation Center, Japan
Chairman's Award36

Corporate Governance: Efforts to Ensure the Effectivenessof the Board of Directors

Dividend per share (yen)ROE (%)(% is consolidated dividend payout ratio

2016
Compensation
Committee
established

Key Corporate
Governance Initiatives

5.4

2019
Nomination andCompensation
Committee
established2018
Introduction of stockcompensation plan

5.7

12.4

160

5.5

(19.9%)

2.4

1.5

114

104

40

45

(69.4%)(42.4%)(20.8%)

03/201403/2015

03/201655

53(23.2%)(21.9%)

03/2017

03/2018(18.5%)(16.6%)

73
40

Stock split implemented(1 share → 4 shares)

12.9

11.1
8.4

2022
Special committee
established

2021
Creation of Skill Matrix
for female auditors
appointed as executives

2020
Independent
Outside Directors
and Outside
Corporate Auditors
to be more than 1/3(18.8%)

03/2019

03/2020

03/2021

03/2022*Dividend amounts prior to March 2017 are shown in accordance with the June 2017 reverse stock split.
*Dividends for the fiscal year ended March 31, 2017 include a dividend of ¥5 per share in commemoration of the company’s 70th anniversary.
Number of
Independent
Outside Directors
Number of
Directors

Jun. 2014

Jun. 2015

Jun. 2019

Jun. 2020

1
10

2
9

3
10

3
9

37

Corporate Governance: Shareholder Returns and IR Policy(Unit: Yen/%)Dividend per share and dividend payout ratio

Shareholder return policy•

Image up to FY03/2025

Shareholder returns are considered to becentered on dividends. The company hopes toachieve a dividend payout ratio of 25% or moreas soon as possible, while expanding investment
for growth and continuing to raise dividends.

Implement stock split
160

160

(19.9%)(22.4%)

•

114
104

(18.5%)(16.6%)

03/2020

03/2021

03/2022

A four-for-one stock split is scheduled to takeeffect on October 1, 2022. The investment unit
will be lowered to create an environment thatmakes it easier to invest and to expand theinvestor base.

Shareholder return policy

Strengthen IR support

Expand investment for growth andcontinue to increase dividends
Achieve a dividend payout ratioof 25% or more as soon as
possible•

03/2023

03/2024

Hold briefings for institutional and individual
investors to expand opportunities for dialogue.
Increase the number of people in charge andenhance disclosure materials such as Englishlanguage information.

03/2025(Final Fiscal Year)*Dividends for FY03/2023 and thereafter in the graphs are based on theassumption that the stock split scheduled to be implemented in October
2022 will not be taken into account.

38

Corporate Governance: Other Initiatives

Sustainability

Response to sustainability issues
The company established the Sustainability Committee in December 2020 topromote discussions on Scope 1, 2 and Scope 3 emissions calculation and target
setting for climate change-related information disclosure in line withrecommendations from the Task Force on Climate-Related Financial Disclosures(TCFD).

Risk
management

Improvement and strengthening of risk management system
Organo improved the group-wide risk management system by establishing a newrisk management department and strengthening the internal audit department. The
company will promote effective measures such as risk scenario assumptions, andthe identification and monitoring of major risks, while taking into account the market
environment and geopolitical climate.

Personnel
cultivation/utilization

Promotion of diversity
The company launched a reform of the personnel system to become a company
where women and foreign personnel can play an active role. Going forward, it will
accelerate the utilization and development of human resources across the Groupby developing skill requirements for management executives.
39

Contents
１． FY ended 03/2022 Results
２． FY ending 03/2023 Plan
３． Medium-term Management Plan
４． Company Overview

40Company Overview and Shareholder Composition■ Company profile
Company name

■ Major shareholders (top ten)(as of March 31, 2022)
Number ofshares held(Thousandsof shares)

Holdingratio(%)

Tosoh Corporation

4,925

42.81

Name of shareholder

ORGANO CORPORATIONHead office

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

Foundation

May 1, 1946

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

966

8.40

Masaki Uchikura,
Representative Director and President

Custody Bank of Japan, Ltd. (Trust account)

632

5.50

SSBTC CLIENT OMNIBUS ACCOUNT

279

2.43

Mizuho Bank, Ltd.

200

1.74

KBC BANK NV – UCITS CLIENTS NON TREATY

153

1.33

BBH The Advisors’ Inner Circle Fund II Kopernik
Global All-Cap Fund

127

1.11

DZ PRIVATBANK S.A. RE INVESTMENTFONDS

110

0.96

MLI FOR CLIENT GENERAL OMNI NON COLLATERALNON TREATY-PB

102

0.89

BNYM as AGT/Clients 10 percent

91

0.79

Representative
CapitalStock exchange
listing
Total number ofshares issued
and outstanding
Number ofshareholders

8,225,499,312 yen
Tokyo Stock Exchange Prime Market
11,589,925 shares (a four-for-one stock split isscheduled to take effect on October 1, 2022)
4,103 (as of March 31, 2022)■ Shareholder composition
Domestic corporations
44.77%

Foreigners
24.64%

Financial Individuals
institutions 10.31%
18.59%

Securities companies 0.97%
Treasury shares 0.72%*The shareholding ratio calculation excludes treasury stock (84,905 shares).

41

Organo Subsidiaries and Affiliates
Semiconductor production share by
region (2021; according to WSTS)

Europe, 9%United States
21%

Asia Pacific 62%
Japan 8%Established representative
office in U.S.

* Indicates subsidiaries accounted for using the equity method;underline indicates non-consolidated subsidiaries or affiliated companies

To this point, the company has expanded its
business mainly in East Asia, including Japan,
China, and Taiwan, as well as in Malaysia andother countries where the electronics industry is
prominent.
In September 2021, Organo established a U.S.
subsidiary, based in Arizona, to coincide with its
customers' factory expansions. In addition to
improving the delivery system, it plans to expand
sales to new customers.

42

Organo Group Businesses｜Water Treatment Engineering｜Performance Products｜Water Treatment Chemicals
Treatment chemicals for
wastewater, cooling water,
cleaning and RO membranes,
boilers｜Plant■ Pure and ultrapure water facilities■ Wastewater treatment andrecovery facilities■ Valuable material recovery facilities■ Production processing-related facilities¥19.3 billion¥92.7 billion(82.7％)｜Standard Equipment/Filters■Pure and ultrapure waterequipment■Water purification filters(17.3％)｜Service Solutions ■ Replacement ofexpendable items and maintenance■ Operational support services andcomprehensive maintenance■ Renovation and reconditioning■ Contract water treatment｜Food Processing Agents■ Food processing
agents■ Food ingredients｜Sales by Segment¥45.6billion(49%)¥47billion(51%)

Service Solutions

Plant｜Performance Products: Sales｜Sales by Market¥58.2billion(63%)
Electronics
・Semiconductors
・FPD・Electronic parts¥22.9billion ¥11.4billion
(12%)
(25%)
General Industry
・Pharmaceuticals,
cosmetics
・Food and beverage・Machinery andchemicalsElectric Power/Water Supply and・Power plants
・Water purification
plants・Sewage treatment
plants

¥7.7billion(40%)¥6.7billion(35%)¥4.9billion(25%)

Water Treatment
ChemicalsStandard
Equipment/Filters

Food Processing
Agents・Various manufacturingindustries
・Buildings andcommercial facilities

・Pharmaceuticals,
research・Various manufacturingindustries
・Food and beverage,
convenience stores

・Food processing
・Beverage
manufacturing
・Nursing care andhealth foodAmounts represent sales for FY03/2022,
and % represents sales composition.

43

Organo Group History
Development

Evolution

GrowthExpansion● Sales trends

2010～■ Semiconductor market
expansion, Taiwan/China
market growth

2000’s■ Overseas development
1990’s■ Strengthening of service solutions■ Ultrapure water facilities
for electronics industry

1980’s■ Water treatment
facilities for power plants

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

1960■Indonesia(2013)■Taiwan(2005)■Thailand(1989)■China(2003)■Malaysia(1986)

Founded 1946
■ Athermal water
distillation equipment

1970

1980

America■(2021)

2005■ Comprehensive service
solutions begin in earnest

1970’s■ Water supply andsewage facility■ Refinement facility forsugar solution, other1990■Vietnam(2010)
2000

2010

2021

44

Contact
Organo Corporation Corporate Planning Dept.
TEL: 03-5635-5111
FAX: 03-3699-7240
https://www.organo.co.jp/english
https://www.organo.co.jp/english/contact/input/

DISCLAIMER
This document includes forecasts of future developments made by management
based on their assumptions, forecasts and plans at the time of writing. Actual
performance may differ materially from the above projections due to a variety offactors.

45