Organo Corporation
Report on the Second Quarter Financial
Results for the Term Ending March 31, 2016

November 6, 2015

1

The Consolidated Organo GroupThe Consolidated Organo Group
Organo (Suzhou) Water
Treatment Co., Ltd.
< China >Organo (Thailand) Co., Ltd.
< Thailand >Organo Corporation
Organo Plant Service Corporation
Organo Food Tech Corporation
Organo Acty Corporation
Organo Eco Tech Corporation< Japan >Organo Technology Co., Ltd.
< Taiwan >PT Lautan Organo Water< Indonesia >Organo (Asia) Sdn. Bhd.
< Malaysia >Ref ; Non-consolidated Companies
Organo (Singapore) Pte Ltd <Singapore>
Organo (Vietnam) Co., Ltd. <Vietnam>
Murugappa Organo Water Solutions Limited <India>

2Financial Results of the 2nd Quarter

Financial Results of the 2nd Quarterof the Term Ending March 2016
(millions of yen)

09/2014
Result09/2015
Plan09/2015
ResultY ear on Y ear
ChangeChange f rom
Plan

Orders Receiv ed

35,70437,50040,820+ 5,116+ 3,320

Net Sales

28,63330,00033,479+ 4,846+ 3,479

Gross Prof it(%)

6,115
21.4

6,600
22.0

6,658
19.9+ 543
ᇞ 1.5 pt

+ 58
ᇞ 2.1 pt

SG&A

6,547

6,900

6,846299ᇞ 54

Operating Income

ᇞ 432

ᇞ 300

ᇞ 187+ 245+ 113

Ordinary Income

ᇞ 444

ᇞ 350

ᇞ 221+ 223+ 129

Net Income attributableto owners parent

ᇞ 583

ᇞ 230

ᇞ 278+ 305ᇞ 48
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Financial Results of the 2nd Quarter

Financial Results [by Business Segments]
Orders Received(millions of yen)

Net Sales(millions of yen)

Operating Income(millions of yen)
1,500

40,00030,00040,82035,704

7,935

40,000

+ 248

7,687

1,000

33,47930,00028,6337,801+ 317

7,484
20,000500∆ 432∆ 187702661∆ 41-848+ 286

020,00028,01632,88410,000+ 4,868
10,00021,14925,677-500+ 4,528-1,134-1,0000-1,5000

09/201409/2015

09/2014■ Water Treatment Engineering

09/2015

09/201409/2015■ Functional Products[Water Treatment Engineering] Orders received increased mainly in plants for the electronics industry overseas andthe general industries both in Japan and overseas. Net sales increased, primarily in plants and solutions in theelectronics industry and the general industries overseas. Operating loss improved due to sales expansion.
[Functional Products] Both orders received and net sales increased. Operating income declined due to increase in
SG&A expenses.

4

Financial Results of the 2nd Quarter

Financial Results [by Business Segments and Customers]< Water Treatment Engineering >Sales by Business Segment

Sales by Customer(millions of yen)(millions of yen)

30,00030,00025,67725,677

21,14920,00021,14912,332+ 303

20,00012,222+ 680

13,455+ 3,849

11,542

12,02910,00010,00013,345
9,120+ 4,225

09,606009/2014

09/2015

Plant Business

Solution Business[Plant Business] Sales increased mainly for theelectronics industry in Taiwan.
[Solution Business] Sales increased mainly for theelectronics industry in Taiwan and the general industries
in Southeast Asia.

09/2014

Electronics Industry

09/2015

General Industry[Electronics Industry] Sales increased primarily inplants and maintenance business in Taiwan.
[General Industry] Sales increased mainly in plants andmaintenance business in Southeast Asia.

5Financial Results of the 2nd Quarter

Financial Results [by Region]
Overseas Sales by Region

Domestic and Overseas Sales（millions of yen）

33,47935,00030,00029,566
3,732

25,000（millions of yen）
40.0%

8,900+ 4,584

4,316

24,31724,579 + 262
20.0%

4,000

4,316
3,732
574

15.1%

+ 1,295

3,732

2,000

2,659

2,203

5,000
1,0000

Domestic

2,414

539

3,000

12.6%

09/2013+ 2,914

700

5,000

20,782

09/2012

5,573

8,000

6,000

26.6%

22.4%
10,000

+ 374

6,009

20,00015,000

913

7,000

6,009

25,834

8,900

9,000

28,633
26,791

10,00009/2014

Overseas

09/20150.0%

Overseas Ratio

954

1,576

1,119009/2012

09/2013

09/201409/2015

Southeast Asia

TaiwanChina

6Financial Results of the 2nd Quarter

Analysis of Operating Income(millions of yen)

Increase inSales+ 1,035

09/201409/2015
Profit Ratio
Decrease
∆ 492

∆ 432

SG&AIncrease
∆ 299

∆ 187

*The sales increase and profit ratio decrease are calculated using the gross profit margin.

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Financial Results of the 2nd Quarter

Balance SheetAssets
Cash on Hand
and Deposits

83,6098,939

Liabilities and Net Assets(millions of yen)
84,14083,6097,741(∆ 1,198)

Current
Liabilities

Current Assets
and Others
50,35428,23028,534(+ 304)

10,07010,694(+ 624)

Long-term
Liabilities
51,990(+ 1,636)(millions of yen)84,140

Net Assets
45,30844,911(∆ 397)

03/2015

09/2015

Fixed Assets
24,316

24,409(+ 93)

03/2015

09/20158Major Efforts in the 1st Half

Major Efforts in the First Half of the Term Ending March 2016
◆ Launched water treatment joint venture in India (September 2015)
Murugappa Organo
Water Solutions Limited
Water Treatment
Technology

Customer Base/Group Network

Targeting both Japanese and non-Japanese customers,
and developing markets in various industries in India

Accelerating Overseas Business Expansion9

Major Efforts in the 1st Half

Major Efforts in the First Half of the Term Ending March 2016◆ Acquired NSF Certification for new slime control chemical for RO
membrane “Orpersion E2661” (July 2015)
Orpersion E2661;
 High level of safety: Registered under Act on theEvaluation of Chemical Substances and Regulationof Their Manufacture, etc. / NSF certified
 Contains uniquely developed stabilized
hypobromite oxidizing agent
 Strong sterilizing effect and slime cleaning effect Low damage to RO membrane

Expanding sales to various markets
in Japan and overseas
 Seawater desalination for beverage applications
 Waste water recovery for food and pharmaceuticalindustries, etc.
10Major Efforts in the 1st Half

Major Efforts in the First Half of the Term Ending March 2016
◆ Launched “HD Series”, purified water system for dialysis treatment(May 2015)
 Pursued greater downsizing, highly sought after in medical
facilities, to deliver one of the most compact systems in theindustry
 Wide range of optional features that can be installed withinmain unit Quality control/quality assurance essential for medical
equipment is implemented at own ISO-certified plant

Entered market of purified water system for dialysis treatment
to offer total solutions for water in hospitals
Pure water systemfor blood analysis
systemUltrapure water
systemfor laboratories

Drinking watersupply using
groundwater+

Purified water
system fordialysis treatment
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Topic in the 1st Half

Topic in the First Half of the Term Ending March 2016
◆ Oxidizer removing catalyst “Ordetox” wins FY2015 JICC Best New
Product Award (October 2015)
・Efficiently removes oxidizers such as hydrogen peroxide contained inultrapure water.
・Uses independently developed monolithic porous ion exchanger as matrix,
to achieve high-speed treatment, at least 10 times faster than previous
catalysts.
・Can be installed right next to semiconductor cleaning system or other usepoint.
・Contributes to improvement in yield of semiconductor manufacturing
process.

12Forecasts for the Full Year

Forecasts for the Term Ending March 2016
(millions of yen)

03/2015 03/2016
03/2016
Year on Year Change from
Result Initial Plan Revised Plan
ChangeInitial Plan
Orders Received

77,87375,00075,000ᇞ 2,873+0Net Sales

68,74177,00079,000+ 10,259+ 2,000

Gross Profit

15,544

16,70017,400+ 1,856+ 700(%)

22.6

21.7

22.0ᇞ 0.6pt

+ 0.3

SG&A

13,14514,00013,900+ 755

ᇞ 100

Operating Income

2,398

2,700

3,500+ 1,102+ 800

(%)

3.5

3.5

4.4+ 0.9pt+ 0.9pt

Ordinary Income

2,465

2,600

3,400+ 935+ 800

Net Income attributableto owners parent

1,085

1,680

2,250

+ 1,165+ 570
13Forecasts for the Full Year

Forecasts [by Business Segments]
Orders Received(millions of yen)
80,00070,000Net Sales(millions of yen)

77,873
15,55475,00015,700+ 146

68,74160,00015,37450,00040,00040,00059,300∆ 3,018

30,00020,00020,00010,00010,000003/2015

03/2016 (Forecast)

4,000

79,00070,00050,00062,318(millions of yen)

80,00060,00030,000Operating Income

15,7003,500+ 326
3,000

2,398

1,400+ 23

2,100+ 1,079

2,000

63,30053,367

1,377+ 9,933
1,000

1,021

003/2015■ Water Treatment Engineering

03/2016 (Forecast)

003/2015

03/2016 (Forecast)■ Functional Product[Water Treatment Engineering] Orders received are forecast to decline in plants for the electronics industry inJapan, for which orders increased substantially in previous fiscal year. Net sales are forecast to increase due to thegrowth of plants and maintenance for the electronics industry in Japan and overseas, and plants for municipal waterand sewage treatment in Japan. Operating income is expected to increase due to sales expansion.
[Functional Products] Orders received, net sales and operating income are expected to grow due to a recovery inthe capacity utilization rate of the customers’ factories, and the development or renewal of products.

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Forecasts for the Full Year

Forecasts [by Business Segments and Customers]< Water Treatment Engineering >Sales by Business Segment

Sales by Customer

63,300(millions of yen)

53,36753,36750,00063,300(millions of yen)

31,176+ 2,151

50,00029,02534,200+ 2,97829,100+ 6,955

31,22225,00025,00032,12524,343+ 7,782
22,14500
03/2015

Solution Business

03/2016（Forecast）

Plant Business[Plant Business] Sales are expected to increase, mainly as aresult of the growth of plants for the electronics industry in Japanand overseas, and plants for municipal water and sewage
treatment in Japan.
[Solution Business] Sales are expected to increase mainly due
to the growth of maintenance for the electronics industry in Japanand overseas and the general industries in Japan.

03/2015

General Industry03/2016（Forecast）

Electronics Industry[Electronics Industry] Sales are expected to increase
due to the growth of plants and maintenance in Japanand overseas.
[General Industry] Sales are expected to increase
mainly in plants for municipal water and sewage inJapan.

15Forecasts for the Full Year

Forecasts [by Region]
Domestic and Overseas Sales(millions of yen)Overseas Sales by Region(millions of yen)

79,00080,00017,50068,741

66,71862,096
10,792

55,92615,00056,351

1,993

22.2%

10,792
10,0002,300+ 239

9,400+ 2,401

14,09061,500 + 5,149

48,00640,000+ 5,110

12,39014,09022.7%

17,50012,390
2,061

1,519

18.0%
8,352

16.2%

6,999
5,000

7,039

5,800
2,234
0

3,745

3,330

03/201403/2015

03/2016(Forecast)TaiwanChina+ 2,470003/2013

Domestic

03/2014

Overseas

03/2015

03/2016(Forecast)

Overseas Ratio

03/2013Southeast Asia

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Forecasts for the Full Year

Forecasts< Electronics Industry >Orders Received

Net Sales(millions of yen)(millions of yen)

30,33530,000

11,25029,10030,00025,32022,14520,00019,08819,74520,00019,723

19,275

15,120
9,009

8,817

19,085
10,079

8,406

9,240

10,00010,505

13,70010,033

119

10,00013,73910,906

10,20015,4009,242
00
03/201303/2014

Domestic

03/2015

Overseas

03/2016(Forecast)

03/201303/2014

Domestic

03/2015

03/2016(Forecast)

Overseas17

Forecasts for the Full Year

Forecasts[Orders Received, Net Sales and Orders on Hand]
Orders on Hand
(millions of yen)Orders received / Net sales(millions of yen)
100,000

Orders Received

Net Sales

77,87380,00068,041 68,502
60,23860,00066,718 65,501 62,096

70,000Orders on Hand
75,00079,000 60,00068,741

50,00048,732
44,73240,14540,00039,212
34,64530,00040,00020,00020,00010,00000
03/201203/201303/201403/2015

03/2016 (Forecast)18

Forecasts for the Full Year

Forecasts [Major Indicators](millions of yen)

FY2014 Full Year

FY2015 Full Year
(Initial Plan)

FY2015 Full Year(Forecast)

Capital Investment

334

1,100

1,000

TechnologicalDevelopment Costs

1,392

1,450

1,400

Depreciation

999

1,000

1,000

Interest-bearing
Borrowings

12,717

13,00015,000

Number of Employees

1,944

2,050

2,050

Dividend per Share(yen/year)

8.0

8.0

8.0

ROE (%)

2.4

3.6

4.8
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Organo Corporation
Corporate Planning Department
1-2-8, Shinsuna, Koto-ku, Tokyo 136-8631, Japan
TEL +81-3-5635-5111
FAX +81-3-3699-7240
URL http://www.organo.co.jp

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

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