DISCLAIMER: This translation may be used for reference purposes only. This English version is not an official translation of
the original Japanese document. In cases where any differences occur between the English version and the original Japaneseversion, the Japanese version shall prevail. This translation is subject to change without notice.

Consolidated Financial Results for the First Nine Months of
the Fiscal Year Ending March 31, 2022
<under Japanese GAAP>
February 1, 2022
ORGANO CORPORATIONTokyo Stock Exchange
6368
https://www.organo.co.jp/english/
Masaki Uchikura, Representative Director and President
Shigeru Sonobe, General Manager of Accounting Dept., Corporate Management andPlanning
TEL:+81-3-5635-5111
Scheduled date to file quarterly securities report:
February 10, 2022
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results presentation meeting:
None
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2022
(from April 1, 2021 to December 31, 2021)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen% Millions of yen%
Nine months ended
December 31, 2021
77,834
13.2
6,141
16.7
December 31, 2020
68,7362.1
5,261(29.6)
Note:
Comprehensive income: Nine months ended December 31, 2021
Nine months ended December 31, 2020

Millions of yen%

Millions of yen

6,654
22.7
5,421
(26.9)¥5,896 million [62.6%]¥3,626 million [(27.9)%]

5,297
3,584

%

47.8
(30.4)

Diluted earnings
per share

Basic earnings
per share
Nine months ended
December 31, 2021
December 31, 2020

Profit attributable toowners of parent

Ordinary profit

Yen

461.43312.52Yen––(2) Consolidated financial position
Total assets
Millions of yen
As ofDecember 31, 2021
120,497
March 31, 2021
115,011(Reference) Equity: As of December 31, 2021
¥71,347 million

Net assets

Equity-to-asset ratio

Millions of yen

71,50467,357
As of March 31, 2021

%

59.2
58.4
¥67,214 million

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

Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022

Yen

Fiscal year-end

Yen

–

52.00

–

–

72.00

–

Total

Yen

Fiscal year ending
March 31, 2022
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Yen

62.00

114.0072.00

144.003. Consolidated earnings forecasts for the fiscal year ending March 31, 2022
(from April 1, 2021 to March 31, 2022)(Percentages indicate year-on-year changes.)
Net sales
Millionsof yenOperating profit%

Millionsof yenProfit attributable toowners of parent

Ordinary profit%

Millionsof yenFiscal year ending
110,000
9.3
10,000
4.4
10,300March 31, 2022
Note:
Revisions to the earnings forecasts most recently announced: None%

4.0

Millionsof yen

8,200

Basic
earnings
per share

%

Yen

15.9

714.25

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes
Note:

For more details, please refer to “Application of special accounting for preparing the quarterly consolidated
financial statements” on page 8 of the attached material.

(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
Note:

For more details, please refer to “Changes in accounting policies” on page 8 of the attached material.

(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2021

11,589,925 shares

As of March 31, 2021

11,589,925 sharesb. Number of treasury shares at the end of the period
As of December 31, 2021

135,204 shares

As of March 31, 2021

112,618 sharesc. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
For the nine months ended December 31, 2021

11,480,549 shares

For the nine months ended December 31, 2020

11,468,057 shares

The Company has introduced an Officer Share Delivery Trust, and shares of the Company held by the Trust havebeen included in treasury shares excluded from the calculation of the number of treasury shares at the end of theperiod and the average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year).

* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, any statements herein do not constitute assurances regarding actual results by theCompany. Actual business and other results may differ substantially due to various factors. Please referto “(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements” in“1. Qualitative information regarding financial results for the first nine months” on page 3 of theattached material for the suppositions that form the assumptions for earnings forecasts and cautions
concerning the use thereof.

Attached Material

Index
1. Qualitative information regarding financial results for the first nine months ................................... 2(1) Explanation regarding operating results .......................................................................................... 2(2) Explanation regarding financial position ......................................................................................... 3(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements 3
2. Quarterly consolidated financial statements and significant notes thereto ........................................ 4(1) Consolidated balance sheet ................................................................................................................ 4(2) Consolidated statement of income and consolidated statement of comprehensive income.......... 6
Consolidated statement of income (cumulative) .............................................................................. 6
Consolidated statement of comprehensive income (cumulative) .................................................... 7(3) Notes to quarterly consolidated financial statements ...................................................................... 8
Notes on premise of going concern .................................................................................................... 8
Notes on substantial changes in the amount of shareholders’ equity ............................................. 8
Changes in significant subsidiaries during the period .................................................................... 8
Application of special accounting for preparing the quarterly consolidated financial statements.............................................................................................................................................................. 8
Changes in accounting policies .......................................................................................................... 8
Additional information ...................................................................................................................... 9
Segment information, etc. ................................................................................................................ 10- 1 -1. Qualitative information regarding financial results for the first nine months(1) Explanation regarding operating results
During the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021), theelectronic industry, the Organo Group’s main market, remained active with successive announcements
of investment plans for major semiconductor projects in Japan and overseas against the backdrop of themove to rebuild the global supply chain to respond to the shortage of semiconductor supply. In the generalindustrial field, some customers were impacted by stagnant manufacturing activity caused by supply
chain turmoil from the shortage of supply of raw materials such as semiconductors and delayed deliveries
as well as various national restrictions on economic activities and movement due to the spread of COVID19. However, the overall recovery trend continued, and sales grew compared with the same period of theprevious fiscal year centered on the Service Solutions Division, which handles mainly maintenance andequipment modification, and the Performance Products Business Unit, which handles water treatment
chemicals and standard equipment. In addition, the electric power/water supply and sewage fields
remained strong centered on renewed facilities demand in Japan and solutions projects.
Under these conditions, the Organo Group has been focusing its efforts on gaining and delivering major
semiconductor-related orders in its main markets of Japan, Taiwan, and China. It has also succeeded ingaining a new, major semiconductor order in the United States. Furthermore, to strengthen our delivery
system to deliver the growing number of projects received, the Group has established a subsidiary in the
United States and a global engineering center (GEC) in Vietnam. The Group is also moving forward withinitiatives to streamline operations including promoting a shift to the digitalization of engineering
operations, largely by developing various tools and databases. As a result, in the Group’s financial results
for the nine months ended December 31, 2021, orders received increased by 38.9% year on year to¥100,129 million, net sales increased by 13.2% year on year to ¥77,834 million, and our carry-overbalance for order backlog as of December 31, 2021 was up 18.5% to ¥84,238 million. On the profit side,
operating profit increased by 16.7% to ¥6,141 million, ordinary profit increased by 22.7% to ¥6,654
million, and profit attributable to owners of parent increased by 47.8% to ¥5,297 million.
Results by segment are as follows.
[Water Treatment Engineering Business Unit]■Orders received
Orders received increased 46.2% year on year to ¥85,145 million. In the electronics field, which is theGroup’s main market, orders received were favorable in Japan and overseas, centered on semiconductorrelated projects. This included orders received for water treatment facilities for major semiconductor
plants in Japan and Taiwan, active investment in China in semiconductors for automotive applications
and power semiconductors, and success in gaining new orders for major semiconductor projects in the
United States. In addition, in the general industry field and the electric power/water supply and sewage
fields, firm levels of orders continued in the Japanese market for equipment modification and renewal
and maintenance projects.
■Net sales
Net sales increased 15.0% year on year to ¥63,424 million. Net sales increased centered on the electronics
field as a result of steady progress in work on major semiconductor projects in Japan and overseas thathave been ordered to date. In addition, in the general industry field, although sales at major plants are on
the decline, steady activities continued mainly in the Service Solutions Division in Japan. In the electric
power/water supply and sewage fields, net sales increased year on year, mainly due to progress on theconstruction of major water supply and sewage related projects for which orders were received up until
the previous fiscal year.
■Operating profit
Operating profit increased 13.7% year on year to ¥4,962 million. Net sales expanded, driving a year-onyear increase in operating profit. This was due to steady progress in the construction of major
semiconductor projects in Japan, Taiwan, and China in the electronics industry field and steady activity
mainly for the Service Solutions Business in Japan in the general industry field and the electric
power/water supply and sewage fields.
- 2 -[Performance Products Business Unit]■Orders received/Net sales
Orders received increased 7.4% year on year to ¥14,848 million and net sales increased 6.2% year on
year to ¥14,410 million. In the Water Treatment Chemicals Division, sales of various water treatment
chemicals for the electronics industry, which continues to experience vigorous manufacturing andinvestment, were favorable. The Standard Water Treatment Equipment and Filters Division saw arecovery in sales centered on small-scale pure water production equipment for medical institutions, which
had slumped last year. We are also seeing other strong trends including a solid start to sales of the smallscale ultrapure water production equipment “Puric μ (mu).” Meanwhile, in the Food Products Division,
sales were about level with the previous fiscal year, as recovery in sales of products for restaurants wereoffset by lower sales of household food products caused by waning demand from people staying at home.
■Operating profit
Operating profit increased 31.4% year on year to ¥1,179 million. In the Water Treatment Chemicals
Division and the Standard Water Treatment Equipment and Filters Division, a recovery in sales led toincreased net sales, which exceeded those of the same period in the previous fiscal year.
(2) Explanation regarding financial position
Assets, liabilities and net assets
AssetsAssets as of December 31, 2021 amounted to ¥120,497 million, an increase of ¥5,486 million from theprevious fiscal year end. This was mainly due to an increase of ¥3,191 million in notes and accounts
receivable - trade, and contract assets, which was shown as notes and accounts receivable - trade at theprevious fiscal year end, and an increase of ¥2,113 million in investments in leases.
Liabilities
Liabilities as of December 31, 2021 amounted to ¥48,992 million, an increase of ¥1,338 million from theprevious fiscal year end. This was mainly due to an increase of ¥4,205 million in long-term borrowings,
despite a decline of ¥3,514 million in short-term borrowings.
Net Assets
Net assets as of December 31, 2021 amounted to ¥71,504 million, an increase of ¥4,147 million from theprevious fiscal year end. This was mainly due to an increase of ¥3,803 million in retained earnings
resulting from the recording of profit attributable to owners of parent.
(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements
Turning to the full-year earnings forecast, the rapid spread of COVID-19 including variants and supply
chain turmoil in the form of shortages of raw materials such as semiconductors may impact customers’
capital investment and construction schedules. However, currently, plans to receive capital investment
projects and progress in major construction projects held as carry-over balance for order backlog areprogressing mostly according to schedule. There are no changes to our previously announced full-year
earnings forecast of orders received of ¥120,000 million (up 26.9% year on year), net sales of ¥110,000
million (up 9.3% year on year), operating profit of ¥10,000 million (up 4.4% year on year), ordinary
profit of ¥10,300 million (up 4.0% year on year), and profit attributable to owners of parent of ¥8,200
million (up 15.9% year on year).

- 3 -2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021

As of December 31, 2021

12,80449,517

13,496––52,709

1,598

1,768

9,773
5,448
6,205
1,223
3,172
(39)
89,702

11,887
5,448
3,839
1,289
2,571
(6)
93,003

17,792(12,808)
4,983
5,671
(4,981)690
12,279300
5,112(4,391)
720
18,974
1,105

18,769(12,573)
6,196
5,810
(5,060)750
12,254878
5,226(4,529)696
20,776
1,084

1,911
–
2,977
743
(403)
5,228
25,308115,011

1,854
426
2,843
972
(463)
5,633
27,494120,497

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Investments in leases
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 4 -(Millions of yen)
As of March 31, 2021

As of December 31, 2021

13,556
4,589
14,510
2,140
1,226
–
1,442
241
122

13,671
4,910
10,995
922
–
1,493
718
347
62

109

90

2,809
40,7494,212
37,424

1,495
11
5,319
79
6,905
47,654

5,700
37
5,650
179
11,56848,992

8,225
7,508
51,902(495)
67,1398,225
7,508
55,705(734)
70,705

301

342

–
(201)
(25)
74
143
67,357
115,011

(0)
277
23
642
156
71,504120,497

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Advances received
Contract liabilities
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Provision for share awards for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 5 -(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance claim income
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of right to use facilities
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Loss on valuation of investment securities
Loss on sale of right to use facilities
Loss on valuation of right to use facilities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Nine months ended
December 31, 2020
(From April 1, 2020 to
December 31, 2020)
68,736
51,174
17,562
12,300
5,261

- 6 -

(Millions of yen)
Nine months ended
December 31, 2021
(From April 1, 2021 to
December 31, 2021)
77,83458,732
19,102
12,960
6,141

22
25
–
100

22
31
455
7

99

92

35
283

65
674

86
30
–
6
123
5,421

88
–
66
7
162
6,654

4
14
–
19

1,150
23
11
1,185

113
13
4
0
131
5,309
1,721
3,587
3
3,584

13
–
13
–
27
7,813
2,511
5,301
3
5,297

Consolidated statement of comprehensive income (cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

Nine months ended
December 31, 2020
(From April 1, 2020 to
December 31, 2020)
3,587

- 7 -

(Millions of yen)
Nine months ended
December 31, 2021
(From April 1, 2021 to
December 31, 2021)
5,301

55

41

–
(99)

(0)
506

82

49

(0)

(1)

38
3,626

595
5,896

3,637

5,883

(10)

13

(3) Notes to quarterly consolidated financial statements
Notes on premise of going concern
No items to report
Notes on substantial changes in the amount of shareholders’ equity
No items to report
Changes in significant subsidiaries during the period
No items to report
Effective from the first quarter of the fiscal year ending March 31, 2022, Organo (Vietnam) Co., Ltd. has
been included in the scope of consolidation due to its increased significance, although the inclusion does
not constitute a change in specified subsidiaries. Furthermore, in the third quarter of the fiscal year ending
March 31, 2022, the newly established Organo USA, Inc. has been included in the scope of consolidation.
Application of special accounting for preparing the quarterly consolidated financial statements
Calculation of tax expenses
The Company and some of its consolidated subsidiaries have reasonably estimated the effective tax rate
after the application of tax effect accounting to the profit before income taxes for the fiscal year including
the third quarter ended December 31, 2021, and tax expenses are calculated by multiplying profit before
income taxes by this estimated effective tax rate. However, in cases where the calculation of tax expenses
using such estimated effective tax rate yields a result that is not reasonable to a significant extent, theamount of significant difference other than temporary differences, etc. is added to or deducted from theprofit before income taxes, and the result is multiplied by the statutory income tax rate.
Changes in accounting policies
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant revised ASBJ regulations effective from the beginning of the firstquarter of the fiscal year ending March 31, 2022, and it has recognized revenue at the time the control ofpromised goods or services is transferred to the customer at the amount expected to be received uponexchange of said goods or services. With respect to construction contracts, the Company previously had
applied the percentage-of-completion method to construction work whose outcome from the completed
portion was deemed definite, and had applied the completed-contract method to other construction work.
As a result of this application, however, the Company has changed the method to recognize revenue overa certain period of time in alignment with its satisfaction of performance obligations to transfer goods orservices to customers when control over a good or service is to be transferred to the customer over acertain period of time. In measuring progress made in satisfying a performance obligation, construction
costs incurred as of the last day of each reporting period are to be calculated based on the ratio of thetotal estimated construction costs. In addition, the Company is to recognize revenue using the cost
recovery method in cases where it expects to recover costs incurred but is unable to reasonably estimate
the extent of progress made toward satisfying performance obligations.
The application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application,
assuming the new accounting policy had been applied to periods prior to the beginning of the first quarterof the current fiscal year was added to or deducted from the opening balance of retained earnings of thefirst quarter of the current fiscal year, and thus the new accounting policy was applied from such opening
balance.
As a result, for the nine months ended December 31, 2021, net sales increased by ¥2,769 million, cost of
sales increased by ¥2,520 million, while operating profit increased by ¥249 million, and ordinary profit
and profit before income taxes each increased by ¥253 million. In addition, the opening balance ofretained earnings increased by ¥11 million.
Due to the application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations, “Notes and accounts receivable - trade” under current assets of the consolidated balance- 8 -sheet as of March 31, 2021 has been included in “Notes and accounts receivable - trade, and contract
assets” under current assets from the quarterly consolidated balance sheet as of June 30, 2021. In addition,“Advances received” under current liabilities has been included in “Contract liabilities” from thequarterly consolidated balance sheet as of June 30, 2021. In accordance with the transitional treatment
provided for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for theprevious fiscal year have not been restated in accordance with the new approach to presentation.
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant revised ASBJ regulations effective from the beginning of the first quarterof the fiscal year ending March 31, 2022, and in the future will accordingly apply new accounting policy
stipulated by the Accounting Standard for Fair Value Measurement, etc. in accordance with thetransitional treatment provided for in paragraph 19 of the Accounting Standard for Fair Value
Measurement and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). This will not affect the quarterly consolidated financial statements.
Additional information
There has been no material change in the assumptions regarding the impact of COVID-19 described in
the annual securities report (Additional information) (Impact arising due to the proliferation of COVID19) for the previous fiscal year.

- 9 -Segment information, etc.
[Segment information]
I Nine months ended December 31, 2020 (From April 1, 2020 to December 31, 2020)
1. Information relating to net sales and profit by each reportable segment
Reportable Segment(Millions of yen)Amountrecorded in the
consolidated
statement ofincome(Note)

Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

55,1690

13,567247

68,736
248

–
(248)

68,736–

Total

55,16913,814

68,984(248)

68,736

Total

Adjustment

Segment profit
4,364
897
5,261
–
5,261
Note:
The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit
shown in the consolidated statement of income.

II Nine months ended December 31, 2021 (From April 1, 2021 to December 31, 2021)
1. Information relating to net sales and profit by each reportable segment
Reportable Segment(Millions of yen)Amountrecorded in the
consolidated
statement ofincome(Note)

Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

63,4240

14,410242

77,834
243

–
(243)

77,834–

Total

63,424

14,65378,078(243)

77,834

Total

Adjustment

Segment profit
4,962
1,179
6,141
–
6,141
Note:
The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit
shown in the consolidated statement of income.

2. Disclosure of changes, etc. in reportable segments
As stated under “Changes in accounting policies,” the Company has applied the Accounting Standard
for Revenue Recognition and relevant revised ASBJ regulations from the beginning of the firstquarter, and accordingly changed its method for calculating business segment profit or loss giventhat it has changed accounting methods for revenue recognition.
In comparison with the previous method, this change increases net sales and segment profit in the
Water Treatment Engineering Business Unit by ¥2,839 million and ¥244 million, respectively.
Meanwhile, it decreases net sales by ¥69 million and increases segment profit by ¥4 million in the
Performance Products Business Unit.

- 10 -