Financial Report for Fiscal
Year Ended March 31, 2021
May 17, 2021

1

Contents
1. FY ended 03/2021 Results

2. FY ending 03/2022 Plan
3. Medium-term Management Plan
4. Company Overview

2

Contents
1. FY ended 03/2021 Results

2. FY ending 03/2022 Plan
3. Medium-term Management Plan
4. Company Overview

3

Overview of FY ended 03/2021 Results■Despite a decrease in orders, the planned target for sales was achieved and operating income was on
par with the previous year due to a decrease in SG&A expenses.

•

Water Treatment Engineering sales were strong despite a decline in orders, and profits improved due to cost
reductions and lower SG&A expenses.

•

While Performance Products fell short of the planned target for sales, the business secured the same level
as the previous fiscal year, and profit improved due to reduced costs.
(Unit: Million JPY)
Orders■ Water Treatment Engineering
104,986
94,563
18,51018,336

Operating Income

Sales

100,000

96,51519,00018,593■ Performance Products
100,638

100,000

9,908

18,21319,000

986

9,579
1,113

7,200
1,000

86,47577,92182,42481,000

8,921

8,466

76,22781,00003/2020

03/2021

03/2021

03/2020

03/2021

03/2021

03/2020

03/2021

03/2021

ActualActualPlan

ActualActualPlan

ActualActual

Plan

6,200

4

FY ended 03/2021: Impact of Spread of COVID-19 Infection•

Electric Power/Water
Supply and Sewage
Mostlyunaffected

Water
Treatment
Engineering••

Capital investment and production levels have been very
active due to increased demand for semiconductors for
smartphones, computers, and data centers driven by the
expansion of telework and online education andentertainment. The surge in demand is also attributable
to the global shortage of semiconductor supply causedby the semiconductor friction between the U.S. andChina, and accidents at production plants.

•

Orders decreased significantly due to the continued
suppression or postponement of large-scale capital
investments in Japan and overseas. Service solutions
were relatively strong in peripheral fields of theelectronics industry, such as electronic parts andchemicals, but were affected by lower production levels
in some fields, such as automobiles, food service, andcosmetics.

Electronics Industry
MarketstrongGeneral Industry
Capitalinvestment
stagnant

Although sales activities were slightly affected by
restrictions on movement and other factors, the impact of
the coronavirus pandemic on both orders and sales wasmodest. Sales, particularly of domestic service solutions,were firm.
Orders and sales were generally at the same level as theprevious fiscal year.

5FY ended 03/2021: Impact of Spread of 2019 Novel
Coronavirus Infection

Water Treatment
Chemicals

Performance
Products

Equipment/Filters

Food Products

Partiallyaffected, but on
par with
previous year

Partiallyaffected, but on
par with
previous year

Partiallyaffected, but
on par withprevious year

• A decline in production levels of some customers in thegeneral industrial sector such as automobiles affected thebusiness. On the other hand, sales of various water
treatment chemicals for the electronics industry and slightly
acidic electrolyzed water ORPLUS for sterilization anddeodorization were strong.

• Sales of standard equipment for medical institutions andwater purification filters for beverage dispensers forrestaurants and convenience stores were sluggish. Sales ofsmall pure water and ultrapure water systems forlaboratories for research institutions, however, wererelatively strong.

• Despite the effect of a decline in products for restaurants,
products related to home-use food products, such as stayat-home consumption, performed well.

6

Results for Year Ending March 2021
Unit: Million JPY

March 2020
ActualMarch 2021
ActualMarch 2021
Initial Plan

Year-on-Year

Actual-toForecast

Orders104,986

94,563100,000

-9.9%

-5.4%

Sales

96,515

100,638

100,000

+4.3%

＋0.6%

Gross profit margin

27,282

26,32625,600

-3.5%

+2.8%

(%)

28.3%

26.2%

25.6%

SG&A1

17,374

16,746

18,400

-3.6%

-9.0%

Operating income
ratio

9,908

9,579

7,200

-3.3%

+33.1%

(%)

10.3%

9.5%

7.2%

Ordinary income

9,929

9,900

7,100

-0.3%

+39.4%

Profit attributable toowners of the parent
company

7,162

7,074

4,700

-1.2%

+50.5%

12.4

11.1

7.5

Return on Equity (ROE) (%)

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

7

Results for FY ended 03/2021: Analysis of Orders and Sales(Unit: Billion JPY)
Orders
104.9

-5.4
YoY

-4.1

03/2020

Down ¥10.4 billion (9.9%) year on year

-1.4

-5.6

-10.4
YoY

Orders
100

-3.5
94.5

• Electronics industry orders decreased in reaction to large orders
received in the previous fiscal year.
• General industry orders were impacted by domestic and overseas
capital investment suppression and postponement.
.

Short of plan by ¥5.4 billion (5.4%)
03/2021
Actual03/2021
Plan

Sales

• Electronics industry was affected by the postponement of contracts
for planned large-scale projects to the next fiscal year.
• General industry orders decreased more than expected.

Sales
+1.6
+5.7
+5.6

100.6
+0.6
YoY

96.5
+4.1
YoY
03/2020

100

03/2021
Actual03/2021
Plan

Performance Products

GeneralElectric Power / Water Supply
and Sewage

Electronics

Up ¥4.1 billion (4.3%) year on year
• In the electronics industry, construction work for large-scale
projects in Japan, for which orders were received in the previous
fiscal year, progressed smoothly. Moreover, sales expanded
overseas due to increased orders.

Surpassed plan by ¥600 million (0.6%)• Electronics industry is booming in overseas markets such as
Taiwan and China; sales increased more than expected as a result.

8

Results for FY ended 03/2021: Analysis of Orders■Orders received declined in Japan, but orders overseas such as in Taiwan and China grewsignificantly.
•

Orders decreased in Japan in reaction to large electronics industry orders received in the previous
fiscal year, and suppressed capital investment in general industry.

•

Orders increased overseas driven by a significant increase in semiconductor-related capital
investment in Taiwan and China.
(Unit: Billion JPY)
Orders(Domestic/Overseas)
1,200

104.9

Orders Overseas
by region
60%

94.5

100.0

1,000

29.1
50%

22.5
29.1

24

800

22.5

30.9%
600

3.2

24.0

6.9

4

40%

24.0%

21.5%

400

82.3

65.3

76

4.3
30%

200

10%

0

0%

03/2020
Domestic

03/2021

03/2021

ActualPlan

Overseas

Overseas Ratio

6.5

3.1
20%

15

03/2020

Taiwan18.9

03/2021
Actual

China

13.5

03/2021Plan

SE Asia/Other

9

Results for FY ended 03/2021: Analysis of Sales■Sales grew both in Japan and overseas, and were in line with the planned target.
•

Sales growth in Japan was attributable to progress in construction of projects ordered in the previous
fiscal year in the electronics industry and general industry.

•

Overseas sales increased in spite of stagnation in Southeast Asia, as Taiwan performed well andChina surpassed the planned target.
(Unit: Billion JPY)
Sales
(Domestic/Overseas)
1,200

96.5

100.6

Sales Overseas
by region
50%

100.0
21.5

1,000

40%

21.5

24.9

24.0
5.5

800

600

22.3%

24.8%

24.0%

30%

24.9

24.0

3.6

5.0

5.2

5.5

4.4
20%

400

74.9

75.6

76.0
10%

200

0

11.5

16.0

13.5

03/2021
Actual03/2021Plan

0%03/2020
Domestic

03/2021
ActualOverseas

03/2021
Plan
Overseas Ratio

03/2020

TaiwanChina

SE Asia/Other

10

FY ended 03/2021: Sales by Segment and Customer
Water Treatment Engineering■Sales expanded mainly in the electronics industry; Service Solution sales were also steady.
•In the Plant business, construction of large-scale projects in Japan and overseas progressedsmoothly.

•

The solid performance of the Service Solutions business in all industries, and large-scale
remodeling projects, contributed to expanded sales.
(Unit: Billion JPY)

Sales by Segment
900

77.9

82.4

Sales by Market
81.0

100%

82.4

81.0

10.6

10.5

24.1

24.5

57.8%

56.8%

41.9

47.6

46.0

03/2020

03/2021
Actual03/2021
Plan

77.9

90%
800

80%
700

600

36.5

39.1

39.5

11.2

70%

60%

24.6

500

50%

400

53.1%

52.6%

51.2%

41.3

43.3

41.5

40%

53.9%

300

30%

200

20%

100
10%

0

0%

03/2020

Service Solutions

03/2021
ActualPlant

03/2021
Plan
Service Solutions Ratio

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

11

FY ended 03/2021: Orders by Segment and Customer
Electronics Industry■ In Japan, the timing of orders for large projects was delayed, while overseas orders
increased significantly in Taiwan and China.
••

Orders for large projects in Japan that were expected to be received in the second half of the fiscal
year were delayed to the fiscal year ending 03/2022.
Overseas, large-scale semiconductor investment continues to be brisk in Taiwan and China.
(Unit: Billion JPY)
Electronics Industry: Orders (1st Half vs. 2nd Half)

Electronics Industry: Orders
600

400

34.6

48.1

350

46.0

500

42.5

28.5
300

13.6

23.0

250

400

19.5

17.5

200

13.5
150

100

10.7
4.4

18.1

20.0

10.0
25.6

300

14.9
200

10.0

20.9

30.0

18.5

26.0

100

50

9.0

8.8

8.0

16.9

7.5

0

0

1st Half

2nd Half

03/2020

1st Half

2nd Half

1st Half

03/2021 Actual
Domestic

Overseas

2nd Half

03/2020

03/2021 Actual

03/2021 Plan

03/2021 Plan
Domestic

Overseas

12

FY ended 03/2021: Sales by Segment and Customer
Electronics Industry■Sales expanded due to progress in construction of large-scale projects both in Japan andoverseas.
•

In Japan, progress in construction of large-scale projects ordered in the previous fiscal year
contributed to the results.

•

Overseas, construction related to large-scale capital investment in Taiwan and China is progressing
smoothly.
(Unit: Billion JPY)
Electronics Industry: Sales (1st Half vs. 2nd Half)
25.5

25.3
22.2

22.2

20.5
10.2

8.7

47.5
41.9

400

12.0

10.8

46.0

500

450

19.7
8.1

Electronics Industry: Sales

8.0

21.1

20.0

25.1

26.4

26.0

03/2020

03/2021 Actual

03/2021 Plan

350

16.8
300

250

200

150

15.1

14.1

11.0

12.5

11.3

13.5
100

50

0

1st Half

2nd Half

03/2020

1st Half

2nd Half

1st Half

03/2021 Actual
Domestic

Overseas

2nd Half

03/2021 Plan

Domestic

Overseas

13

FY ended 03/2021: Sales by Segment and Customer
Performance Products(Unit: Billion JPY)•

Performance Products: Sales

18.5

18.2

5.1

5.0

■Water Treatment Chemicals

19.0

5.3

■Standard Water Treatment Equipment/Filters
•

6.2

6.2

7.1

6.9

6.4

7.3

Food Products
Water Treatment Chemicals

03/2021 Actual

03/2021 Plan

Sales of pure water systems for testing to medical
institutions and water purification filters forbeverage dispensers decreased. But sales ofultrapure and pure water systems for laboratories
to research institutions, to which Organo is working
to strengthen sales, were strong.

■Food Products•

03/2020

Sales of various water treatment chemicals for theelectronics industry and ORPLUS, a slightly acidic
electrolytic water for sterilization and deodorization,
were strong. Delays, however, in overseas sales togeneral industries such as the automobile industry
and to Taiwan and China had an impact on sales.

Robust sales of household food products such as
stay-at-home consumption were robust, but foodservice sales declined.

Standard Water Treatment
Equipment/Filters

14

Analysis of FY ended 03/2021 Operating Income(Unit: Million JPY)
Operating Income Analysis

Water Treatment Engineering: Down ¥450 million(5.1%)•
Sales expanded mainly in the electronics industry,
while SG&A expenses, primarily operation-related
costs, decreased.

570

1,240
+180
9,900

-320
YoY

•

-110
9,570

2,260

+1,390
Performance
Products

+530

-450

-240

Sales change+2,260+110

72,000Water
Treatment
Engineering

03/2021
ActualProfit margin change

Profit margins declined year on year in reaction to
the concentration of profitable projects in theprevious fiscal year.
Performance Products: Up ¥120 million (12.8%)•
Profit improved due to a reduction of fixed costs
such as manufacturing expenses.

■Surpassed plan by ¥2,370 million (33.1%)

+260

+340

Water
Treatment
Engineering

03/2020+2,370
YoY

Performance
Products+120■Down ¥320 million (3.3%) year on year

03/2021
Plan
SG&A change

Water Treatment Engineering: Up ¥2,260 million(36.6%)•
Profit improved due to increased sales andreduced costs, as well as a significant decrease inoperating expenses.
Performance Products: Up ¥110 million (11.4%)•
Profit improved due to a decrease in operating
expenses.

15

Contents
1. FY ended 03/2021 Results

2. FY ending 03/2022 Plan
3. Medium-term Management Plan
4. Company Overview

16Overview of FY ending 03/2022 Plan
■Orders will recover to the ¥100 billion level, while operating profit is expected to decline due toincreased investment.
• Water Treatment Engineering is expected to achieve high levels of orders and sales, while Performance
Products is expected to recover from the stagnation of the previous fiscal year. SG&A expenses are
forecast to increase due to higher investment in R&D, overseas systems, and data utilization.
(Unit: Million JPY)
OrdersSales■ Water Treatment Engineering
94,563

18,336

100,000

19,000Operating Income■ Performance Products

100,638

103,000

9,579

18,21319,000

1,113

8,250

1,200

76,22781,00082,42484,0008,466

03/2021

03/2022

03/2021

03/2022

03/2021

7,050

03/202217

FY ending 03/2022 Plan
(Unit: Million JPY)FY ended 03/2021

FY ending 03/2022

ActualPlan

Year-on-Year（％）

Orders

94,563100,000

+5.7％

Sales

100,638

103,000+2.3％

Gross profit margin

26,326

26,250

-0.3％

（%）

26.2%

25.5%

SG&A

16,74618,000+7.5％

Operating income ratio

9,579

8,250

-13.9％

（%）

9.5%

8.0%

Ordinary income

9,900

8,150

-17.7％

Profit attributable to owners of
the parent Company

7,074

6,500

-8.1％

Return on Equity (ROE) (%)

11.1

9.3
18

FY ending 03/2022 Plan: Analysis of Orders and Sales(Unit: Billion JPY)

OrdersOrder Comparison

Up ¥5.4 billion (5.7%) year on year

+0.6
100.0

•

+4.9

•
94.5

A high level of capital investment is expected in theelectronics industry in Taiwan and China.
Orders for large-scale projects are also planned in Japan.

+5.4
YoY

03/2021 Actual

03/2022 Plan

Sales

Sales Comparison

Surpassed plan by ¥2.3 billion (2.3%)

+0.7
+2.8

100.6

103.0

•

-1.1

•

+2.3
YoY
03/2021 Actual

03/2022 Plan

Performance Products

GeneralElectric Power / Water Supply
and Sewage

Electronics•

Sales to the electronics industry are forecast to increase in
Taiwan and China, where high levels of capital investment
continue.
Sales to general industry are expected to decline due to adecrease in orders in the previous fiscal year.
The Performance Products business plans to recover in allareas. It will also introduce new products and strengthen
overseas expansion.

19

FY ending 03/2022 Plan: Orders by Region■Orders are expected to grow further in Taiwan, China, and other overseas markets.
•

Orders for large-scale projects carried over from the previous fiscal year in the electronics industry
are planned for Japan.

•

Semiconductor investment in Taiwan and China is expected to remain at high levels, driving an
increase in orders overseas.
(Unit: Billion JPY)
Orders(Domestic/Overseas)
103.8

1,200

1,000

88.0

29.8
800

19.6

104.9

100.0
40%

29.1

30.5

82.3

7.4

19.6
30%

30.9%

28.7%

600

29.8

50%

94.5
22.5

Orders Overseas
by Region

30.5%

6.9

4.6

29.1
22.5
4.3

30.5

3.2

4.5

6.9

7.5

18.9

18.5

03/2021

03/2022

3.1

20%

400

22.4%

74.0

21.5%
65.3

68.3

7.8

69.5
10%

15.4

15.0

03/2019

03/2020

200

7.2
0

0%

03/2018

03/2019

03/2020

03/2021

03/2022

03/2018

Plan

Plan
Domestic

Overseas

Overseas Ratio

TaiwanChina

SE Asia/Other20

FY ending 03/2022 Plan: Sales by Region■Overseas sales growth in Taiwan, China, and elsewhere continues.
•

A reactive decline in sales is expected in Japan due to the completion of a large-scale projectcurrently underway.
A significant increase in sales is expected overseas due to progress in construction of large-scale
projects for which orders were received in Taiwan and China.

•(Unit: Billion JPY)
Sales
(Domestic/Overseas)

Sales Overseas
by Region
32.5

96.5

100.6

21.5

24.9

1,200

92.2
1,000

79.2

800

16.9

24.1

22.3%

200

21.5%

32.5

24.8%

68.1

40%

30%

16.9

6.1

20%

5.0

7.6

31.6%

26.1%
74.9

50%

24.1

600

400

103.0

75.6

70.5

62.2

21.5
5.5

6.7

3.6

4.5
7.5

5.2

4.4

5.1
10%

0

24.9

10.2

11.5

03/2019

03/2020

16.0

20.5

0%

03/2018

03/2019

Domestic

03/202

Overseas

03/2021

03/2022
Plan

Overseas Ratio

03/2018

03/2021

03/2022

Plan
TaiwanChina

SE Asia/Other21

FY ending 03/2022 Plan: Sales by Segment and Customer
Water Treatment Engineering■The level of sales in the electronics industry will be high; Service Solutions sales will also bestrong.
• In the Plant business, progress in the construction of large-scale overseas projects in theelectronics industry contributed to the results.
•

Service Solutions are expected to be strong in all industries.
(Unit: Billion JPY)
Sales by Segment
900

73.8

77.9

82.4

Sales by Market
84.0

100%

73.8

90%

77.9

800

700

61.4

600

500

28.3

80%

373

365

390

405

53.8%

60%

49.4%

53.1%

52.6%

51.8%

41.3

43.3

43.5

33.0

36.4

11.2
23.4

40%

300

200

30%

100
10%

26.6

11.2

24.7

24.6

52.8%

53.9%

39.0

03/2019

43.4%

20%

0

10.1

70%

50%

400

61.4

82.4

84.0

10.6

10.5

24.1

23.0

57.8%

60.1%

41.9

47.6

50.5

03/2020

03/2021

03/20220%

03/2018

03/2019

03/2020

03/2021

03/2022
Plan

Service Solutions

Plant

Service Solutions Ratio

03/2018

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

Plan

22

FY ending 03/2022 Plan: Orders by Segment and Customer
Electronics Industry■The high level of capital investment continues in Taiwan, China and other overseas markets.
•

Some of the large projects in Japan postponed from the previous fiscal year are expected to bereceived in the current fiscal year. Most of the equipment will be contracted for processing (seepage 25), and orders will be booked in the fiscal year ending 03/2023 or later.
While there are concerns over water shortages overseas such as in Taiwan, large semiconductorrelated investment plans will continue.

•(Unit: Billion JPY)
Electronics Industry: Orders (1st Half vs 2nd Half)

Electronics Industry: Orders
600

48.8

400

34.6

48.1
42.5

350

26.1

300

250

400

13.6

22.6

10.7
4.4
15.8

9.2

34.2

22.5

8.8

25.0
25.6

14.6
13.0

14.9

200

20.9

9.0

18.1

23.7

300

12.0

13.5

13.4

100

50

23.0

25.0

19.5

10.3

200

150

47.5

500

13.0
8.0

100

19.6

30.0

25.0

16.9

9.5

0

22.5

0

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half
03/2019

03/2020

03/2021

Domestic

Overseas

03/2018

03/2019

03/2020

03/2021

03/2022 Plan

03/2022 Plan
Domestic

Overseas23

FY ending 03/2022 Plan: Sales by Segment and Customer
Electronics Industry■Sales expansion in Taiwan and China; overseas sales to exceed domestic sales.
••

Large-scale projects under construction in Japan are scheduled to be completed in the current fiscal
year. Contract processing projects scheduled to start construction are expected to post sales fromthe fiscal year ending 03/2023 or later.
Progress in construction overseas of large-scale projects already ordered in Taiwan and China is
expected.
(Unit: Billion JPY)
Electronics Industry: Sales (1st Half vs 2nd Half)

Electronics Industry: Sales
600

300

25.3
22.0

250

22.2

26.0

24.5

22.2

47.6

500

19.7
200

8.1
11.7

150

8.7

400

14.0

10.8

300

200

100

14.1
10.1

10.3

15.1
11.0

11.3

12.0

21.1

27.0

25.1

26.4

23.5

03/2020

03/2021

03/2022 Plan

13.0
26.6

6.8

50

41.9

39.0
10.2

16.9

50.5

11.5

18.6

11.6

100

15.0

0

16.8

20.4

0

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half
03/2019

03/2020

03/2021

Domestic

Overseas

03/2018

03/2019

03/2022 Plan
Domestic

Overseas24

Largest Processing Contracts Planned to Date
パッケージ・
Package-type
Service Solutions
ソリューションサービス

加工受託サービスの状況

Status of Processing Services
03/2021

Facility
ownership

Operation
management

Maintenance

〇

〇

〇

Contract
processing〇〇

Comprehensive
maintenance〇Flat-rate
maintenance

03/2022

03/2023

03/2024

Facility scale in excess of ¥10 billion

Facility scale –billions of yen
Construction
periodPlan to shift to a comprehensive
maintenance contract after the contract
period expires

Facility scale – billions of yen

Construction
periodFacility scale –hundreds ofmillions of yen

Contract processing, comprehensive maintenance, andflat-rate maintenance
Sales of several billion yen per year in fiscal year ended
03/2021

Orders and sales for processing contracts are recorded
according to the service contract period↓

Contribution to business results will begin fromthe fiscal year ending 03/2023

Sales to increase to more than ¥10 billion per yearwith the start of large-scale contract processing.

In standard equipment sales, orders are recorded at the timeof contract and sales are recorded during the construction
period using the percentage-of-completion method.

25

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

Sales by Segment

19.0

18.4

18.5

18.2

5.3

5.1

5.0

6.1

6.2

6.2

6.4

6.4

6.9

7.1

6.9

7.3

03/2018

03/2019

17.7

5.4

5.8

■Water Treatment Chemicals

5.3

In addition to expanding sales to the electronics
industry, which has been strong, the company
plans to once again accelerate sales to generalindustry, which stagnated in the previous fiscal year,
and overseas expansion in Taiwan, China, andelsewhere.

■Standard Water Treatment Equipment/
Filters•

New models of laboratory equipment, which
performed well in the previous fiscal year, will be
introduced. Sales of water purification filters for
medical institutions and beverage dispensers will
also be expanded in line with market recovery.

■Food Products
03/2020

03/2021

Food ProductsStandard Equipment/Filters
Water Treatment Chemicals

03/2022Plan•

The company plans to expand sales by using
webinars and other means to expand sales to new
customers and new products that were notdeveloped in the previous year, with the objectiveof a recovery in sales.

26

FY ending 03/2022 Plan: Operating Income■Down ¥1,320 million (13.9%) year on year
(Unit: Million JPY)
Operating Income Comparison

9,570

+390

+250

-710

-160

-1,320
YoY-1,0908,250-1,410Water
Treatment
Engineering＋80
Performance
Products

03/2021 Actual

Sales change

03/2022 Plan

Profit margin change

Water Treatment Engineering: Down ¥1,410 million(16.7%)•
Sales in the electronics industry are expected toincrease.
•
Although the profit margin is expected to decline, thecompany aims to achieve the same profit margin as
the previous fiscal year by promoting cost reduction
in all construction projects.
•
SG&A expenses are expected to increase due toinvestment in R&D, improvement of overseas
engineering systems, and acceleration of digital
investment.
Performance Products: Up ¥80 million (7.8%)•
The company plans to increase sales in all fields,
which were sluggish in the previous fiscal year, andexpand business overseas, especially in Taiwan and
China.
•
SG&A expenses are planned for R&D investment
and measures to strengthen overseas sales.

SG&A change

27

Dividend Trends■ Plan to pay dividends in fiscal year ended March 31, 2021, exceeding the initial plan.
■ Distribute profits in accordance with the earnings situation with the aim of achieving
stable, continuous dividends.
(Unit: JPY)

Dividend( ) Consolidated dividend payout ratio

104

104

(16.6%)(25.3%)

Mar-20Mar-21(Initial plan)

114

114

(18.5%)(20.1%)

Mar-21(Schedule)

Mar-22(plan)

7353(18.8%)(21.9%)

Mar-18Mar-1928

Key Indicators
FY ended
03/2020

FY ended
03/2021
ActualFY ending
03/2022
Plan

Capital expenditures(million yen)

1,154

1,015

4,500

R&D expenses

2,178

2,300

2,300

1,189

1,212

1,200

Interest-bearing debt
(million yen)

9,740

16,00517,000No. of employees

2,249

2,319

2,340

Annual dividends

104

114

114

12.4

11.1

9.3

(million yen)

Depreciation(million yen)

(yen)

ROE
(%)

Major Facility Investment
Plan
Organo invested approximately ¥3billion to build new laboratorybuildings at the R&D Center. The
company will work to strengthen thedevelopment of next-generation
ultrapure water systems andseparation and purification
technologies. Operation is scheduled
to start in April 2022.

Image of new laboratory buildings*Capital expenditures include investments in intangible assets.
29

Contents
1. FY ended 03/2021 Results

2. FY ending 03/2022 Plan
3. Medium-term Management Plan
4. Company Overview

30Medium-term Management Plan: 03/2022 – 03/2024■Discuss long-term management direction and formulate a medium-term plan basedon the outline of the long-term plan.
■Aim for sales of ¥110 billion or more and operating income of ¥10.5 billion or morein the fiscal year ending 03/2024, the final year of the plan.

Medium-term Management Plan
■ Sales

922
92.2

965
96.5
12.4%

8.4 %

6.5
65

売上高 income
営業利益・率■ Operating
ratio

100.6
1,006
11.1%

9.9
99

9.5
95

(10.3%)(9.5%)

03/2020
20.3期

03/202121.3期(7.1%)

03/2019
19.3期

21.4期

ROE

(Unit: Billion JPY)

1,030
103.0

1,050
105.0

9.3 %

8.3 %

82
8.2

90
9.0

(8.0%)(8.6%)

03/202222.3期

03/2023
23.3期

110.0
1,100
9.0 %

105
10.5

(9.5%)

03/2024
24.3期
31

Medium-term Management Plan
Medium-term Management Plan FY 03/2022-FY 03/2024

Priority Fields and Markets and Growth Drivers
Electronics Industry• Expansion of water
treatment processing
services• Enter the U.S. market
and establishingsystems• Improve engineeringbusiness efficiency

Water Treatment Chemicals• Water treatment chemicals + equipment + sensors; expand package lineup
including IoT• Develop new products and technologies, capture overseas markets (Taiwan,
China, U.S.)
Functional Materials• Develop functional materials such as ion exchange resin and membranes for
new businesses and technologies• Build stable supply structure for functional materials domestically and overseas

China, Taiwan Markets• Receive orders forsemiconductor
projects• Develop generalindustry, Performance
Products businesses• Establish structure for
local production, R&D,
and Service Solutions

Service Solutions• Establish foundation for digital solution services such as ORTOPIA and
ORSMART• Establish structure, improve quality of service solutions domestically andoverseas
R&D
Expand investment in development with a target of 2.5% of net sales; create new businesses through next-generation ultrapure water
systems, water recovery technologies, and non-aqueous separation and purification technologies for the electronics industry; andstrengthen sensing and digital technologies.
Build Business Foundation
Strengthen engineering
structure

Undertake ESG/SDGs
initiatives

Ensure safety andcompliance

Promote data utilization

Cultivate and activate
human resources

Medium-term Management Plan: Initiatives
Priority Fields and Markets

Electronics
Industry

China andTaiwanMarkets

Expand water treatment contract processing services• Secure largest-ever contract water treatment service for a major client• Attempt to evolve service solutions and stabilize earnings
Expand to the U.S. and develop systems• Establish a structure for business development in North America, where there aremany plans to build semiconductor plants
Improve the efficiency of engineering operations• Establish a Global Engineering Center and promote digital transformation ofengineering operations

Receive orders for large semiconductor projects• Expand sales to large semiconductor projects, which continue to be aggressively
plannedDevelop general industrial field and Performance Products business• Build a business structure for markets other than the electronics industry in China
Strengthen local systems• Establish local production, R&D, and service solution systems

33Medium-term Management Plan: Initiatives
Growth Drivers
Water
Treatment
Chemicals

Functional
Materials

Service
Solutions

Expand package lineup• Expand package menu combining water treatment chemicals, equipment, sensors, and IoT
New product/new market development• Strengthen new product development by strengthening marketing and utilizing open
innovation• Establish a business structure in Taiwan, China, the U.S. and other countries where theelectronics industry is expanding
Develop and expand sales of performance products for new businesses and technologies• Promote the development of new functional materials such as ion exchange resins andmembranes
Establish a stable supply system in Japan and overseas• Expand refining capacity for high-performance products and develop overseas supply
systems in China, Taiwan, and elsewhere

Develop infrastructure for digital solution services• Expand service menu and infrastructure development using digital technology, such as the
ORTOPIA operation monitoring system and the ORSMART package-type service
Develop service solution systems in Japan and overseas• Develop service solution systems and improve service quality in China and Taiwan

34

Medium-term Management Plan: Initiatives
Growth Drivers
Expand investment in development with a target of 2.5% of net sales; create new
businesses through next-generation ultrapure water systems, water recovery technologies,
and non-water separation and purification technologies for the electronics industry; andstrengthen sensing and digital technologies.

R&D

Next-generation ultrapure water
and water recovery systems

Non-aqueous separation andpurification technologies

Sensing and digital technologies• Addition of new
dedicated buildings in the
R&D Center• Removal of impurities atthe ppt (parts per trillion)level• Construction of a
maximum recovery rate
system in accordancewith water quality• Addition of new dedicatedbuildings in the R&D
Center• Expansion of refined
functional materials suchas solvents and chemicals
for the electronics industry• Aiming to deliver the first
NMP refining facility• Expand package servicesof equipment andchemicals and sensing
and digital technologies• Implement wastewater
treatment and optimize
chemical injection rateusing image analysis
technology

35Medium-term Management Plan: Initiatives
Build Business Foundation

Strengthen
engineering
structure

Undertake
ESG/SDGs
initiatives

Establish GEC (Global Engineering Center)• Establish GEC in Vietnam to strengthen the overseas engineering system andutilize overseas human resources (strengthening the existing ECA)
Promote data-driven engineering• Promote the construction and utilization of an engineering database, with theobjective of automatic design and operation of water treatment plants in the
future.

"We aim to be a company that meets society's expectations and earns its
trust, and to realize a sustainable society as a partner to various
stakeholders.”⇒ Promote initiatives for climate change issues and effective use of water resources,
including efficient operation of water treatment plants using ICT and energy
conservation using water treatment chemicals.

36Medium-term Management Plan: Initiatives
Build Business Foundation
Ensuresafety andcompliance

Ensure safety• Ensure workplace safety by establishing group safety training, certification, andauditing systems
Ensure compliance• Promote various types of compliance education and bottom-up compliance activities at
all workplaces

Promoteutilization ofdata

・専門部署を設置し推進力を強化
Strengthen promotion capabilities by establishing a specialized department• データを活用した新たなサービスの開発や、将来に向けた設計や
Establish a specialized department in July 2021 to develop new services using data
and to promote automation of design and equipment operation for the future
設備運転の自動化を推進する専門部署を設置（21.7～）

Cultivate andutilize humanresources

Develop global human resource strategy and renewal of management system• Establish a medium- to long-term global human resources strategy aimed atdeveloping and activating overseas human resources• Review and restructure the management system to develop future managers
Implement workplace reform initiatives• Promote business efficiency by going paperless and using ICT tools
37

TOPICS
Organo’s energy-saving service solution wins
Energy Conservation Grand Prize 2020
(Chairman Prize of ECCJ)
Organo’s ORBRAID Series, the world's first combined coolingwater treatment agent, incorporates a proprietary chlorine-freeinorganic disinfectant. It provides optimal treatment for heattransfer disorders in various water quality conditions of coolingwater for refrigeration equipment, thereby reducing the energy
consumption of refrigeration equipment.

Change in external
appearance

LTD improvement

Refrigerator LTD
Competitor’sOrganic
disinfectant

After changing
to ORBRAID

Reducing the power consumption of refrigerationequipment results in reduced energy usage forcentral air conditioning at factories and officebuildings.

Optimal processing
by Organo

Promoting the expansion of sustainableproducts, technologies, and services that
contribute to energy conservation and CO2
reduction.

900 refrigeration tons

Number of days

38

Contents
1. FY ended 03/2021 Results

2. FY ending 03/2022 Plan
3. Medium-term Management Plan
4. Company Overview

39Company Overview
Corporate nameORGANO CORPORATIONHead office

1-2-8 Shinsuna, Koto-ku, Tokyo 136-8631

EstablishedMay 1, 1946

Representative

Masaki Uchikura, President

Capitalization¥8,225,499,312

No. of employees

2,319 (consolidated) as of March 31, 2021
Water treatment
engineering

Main areas ofbusiness
Performance products

Main offices

Plant
Servicesolutions

Manufacturing and sales of large-scale water treatment facilities
Facility maintenance, operational support services,
renovation and reconditioning, etc.
Manufacturing and sales of standard water treatment
equipment,water treatment chemicals, food processing agents

Head Office (Koto-ku, Tokyo), R&D Center (Sagamihara), Tsukuba Factory (Tsukuba),
Iwaki Factory (Iwaki), Hokkaido Branch Sales Office (Sapporo), Tohoku Branch Sales Office(Sendai), Kanto Branch Sales Office (Koto-ku, Tokyo), Chubu Branch Sales Office (Nagoya),
Kansai Branch Sales Office (Suita), Chugoku Branch Sales Office (Hiroshima),
Kyushu Branch Sales Office (Fukuoka)

40

Organo Subsidiaries and Affiliates

Organo (Vietnam)
Organo(Thailand)
Organo (Asia)

Murugappa Organo
Water Solutions
Organo (Singapore)

OrganoOrgano Plant Service
Organo Eco Tech
Organo Food Tech
Organo Acty
HOSTEC
Tohoku Denki Tekko *Organo (Suzhou)
Organo Technology

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

41

Organo Group History
Development

Evolution

GrowthExpansion

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

1980’s■ Water treatment
facilities for power plants
1970’s■ Water supply andsewage facility■ Refinement facility forsugar solution, other■India(2015)2005■ Comprehensive service
solutions begin in earnest

1960’s■ Large-scale purewater equipment for
general industry■Vietnam(2010)■Taiwan(2005)

Founded 1946
■ Athermal water
distillation equipment
1960

1970

■Indonesia(2013)■Thailand(1989)■China(2003)■Malaysia(1986)

1980

1990

2000

2010

42

Organo Group Businesses
Water Treatment Engineering
Service Solutions¥43.3 billion

Performance Products
Food
Processing Agents¥5.0 billion

Plant¥39.0 billion

Year Ended
March 2021
¥82.4 billion

Year Ended
March 2021
¥18.2 billion■ Pure and ultrapure
water equipment■ Water purification filters■ Food processing
agents■ Pure and ultrapure water facilities■ Wastewater treatment and recovery ■ Food ingredients■ Replacement ofexpendable items and maintenance■ Operational support services andcomprehensive maintenance■ Renovation and reconditioning■ Contract water treatment

Electronics

Standard Equipment/Filters¥6.2 billion

facilities■ Valuable material recovery facilities■ Production processing-related
facilities

Electric Power/Water
Supply andGeneral Industry

Water Treatment Chemicals¥6.9 billion■ Treatment chemicals for wastewater, coolingwater, cleaning and RO membranes, boilers

Equipment/Filters

Water Treatment
Chemicals

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

・Various manufacturingindustries
・Buildings andcommercial facilities

Sewage・Semiconductors
・FPD・Electronic parts

・Power plants
・Water purification
plants・Sewage treatment
plants・Pharmaceuticals,
cosmetics
・Food and beverage・Machinery andchemicals

Food Processing
Agents・Food processing
・Beverage
manufacturing
・Nursing care andhealth food43

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.

44