Financial Results for First Half of Fiscal
Year Ending March 31, 2023
Securities Code: 6368
November 10, 2022

1

Contents
1. First-Half Results for Fiscal Year Ending March 2023
2. Full-Year Forecast for Fiscal Year Ending March 2023
(Reference)
3. Topics
4. Company Overview
2

Contents
1. First-Half Results for Fiscal Year Ending March 2023
2. Full-Year Forecast for Fiscal Year Ending March 2023
(Reference)
3. Topics
4. Company Overview
3

Overview of First-Half Results: Overview for FY ending 03/2023
Robust capital investment continued in the electronics industry centered aroundsemiconductors, leading to growth in our business both domestically andinternationally.
・Orders, sales, and operating profit all grew year-on-year and exceeded the initialplan, achieving record-high results in the second quarter.
(Millions of yen)Orders Received

Net Sales

Operating Profit

Performance Products
78,23058,903

10,266

6,510

70,000
9,850

9,905

50,001

62,11760,00010,034

9,850

9,623
67,964

48,99860,15040,37852,083

1,080
3,771

4,000

730

850
5,430

50,150

3,150

3,040

09/2021

09/2022

09/2022

09/2021

09/2022

09/2022

09/2021

09/2022

09/2022

ActualActualPlan

ActualActualPlan

ActualActualPlan

4Overview of First-Half Results for FY ending 03/2023
Electronics
Industry

GeneralIndustry• Large-scale investments were continued to be made in Japan and Taiwan, and theOrgano Group received orders for major semiconductor projects in China and Malaysia.
• Sales increased due to progress on the construction of major projects.
• Greater foreign currency translation differences as a result of the depreciation of the
yen also contributed.
• Orders remained strong due to the trend toward recovery in large-scale capital
investments in Japan.
• Sales were affected by delays in procuring raw materials and in construction, etc.
causing a lag with delivery deadlines postponed to the second half or later.

Electric Power/Water Supply
and Sewage• Progress was made on construction for projects received and firm levels of orders wereseen mainly in the solutions projects in Japan.

Performance
Products• Sales of water treatment chemicals were steady, mainly in the electronics industry.
Sales of standard equipment and filters also grew, including small-scale pure waterproduction equipment for medical institutions and research institutions.
• The food products business also made steady progress in passing on costs in the formof price increases, etc.

5First-Half Results: Statement of Income
September 2021
(Millions of yen)

ActualSeptember 2022
ActualInitial Plan

Year-on-Year

Actual-to-Initial
Plan

(%)

(%)

Orders received

58,90378,23070,000+32.8%+11.8%Net sales

50,001

62,11760,000+24.2%+3.5%

Gross profit

12,404

16,10813,000+29.9%+23.9%

SG&A1

8,632

9,597

9,000

+11.2%+6.6%

Operating profit

3,771

6,510

4,000

+72.6%+62.8%

Ordinary profit

4,193

7,451

4,000

+77.7%+86.3%

Profit attributableto owners of parent

2,696

5,027

2,800

+86.4%+79.6%

(%)

(%)

24.8%

7.5%

25.9%

10.5%

21.7%

6.7%

1: SG&A = Selling, General, and Administrative expenses
6

First-Half Results: Order Received by Region■Orders increased in the first half both in Japan and overseas mainly in theelectronics industry, reaching a record high.

Domestic: Investments in large-scale semiconductor projects and wafer-related projects made a significant
contribution.
Overseas: Investments in Taiwan remained at high levels while investments in semiconductors grew inChina and Malaysia.

(Billions of yen)Orders (Domestic/Overseas)
Domestic

58.9

26.3

16.9

41.9

TaiwanOverseas

78.2

Orders Overseas by Region

22.5
16.9
1.7

51.9

47.5

09/2022 Actual

09/2022 Plan

7.2

4.0

7.4

6.5

11.5

12.0

09/2022 Actual

09/2022 Plan

7.0
8.0

09/2021 Actual

SE Asia/US/Other

26.3

70.0
22.5

China

09/2021 Actual7

First-Half Results: Sales by Region■Sales in the first half also grew year-on-year and exceeded the initial plan toreach a record high.

Domestic: Sales increased due to progress on the construction of major projects, mainly in the electronics
industry.
Overseas: Progress on the construction of an order received in the United States last year contributed tosales alongside projects in Taiwan and China.

(Billions of yen)

Sales (Domestic/Overseas)
Domestic

Sales Overseas by Region
TaiwanOverseas

62.1

60.0

15.6

22.5

22.5
15.6
1.9

34.3

35.8

37.5

09/2022 Actual

09/2022 Plan

7.4
7.3

5.7
7.9

09/2021 Actual

SE Asia/US/Other

26.2

50.0
26.2

China

09/2021 Actual

6.0
6.5

11.4

10.0

09/2022 Actual

09/2022 Plan

8

First-Half Results: Sales by Segment and Customer
Water Treatment Engineering Business Unit

■Sales in the Water Treatment Engineering Business Unit increased year-on-yearand exceeded the initial plan due to growth in the electronics industry.

Electronics Industry: The service solutions performed well on top of progress made in construction for
major projects.
General Industry: Delays in procuring raw materials, etc. have pushed sales back to the second half or later.
Electric Power/Water Supply and Sewage: Sales were firm, mainly in the service solutions in Japan.
(Billions of yen)
Sales by Segment
Service Solutions

Sales by Market

Plant

Electric Power/Water Supply and Sewage
General Industry

52.0

600

500

50.1

40.3

40.3

400

31.5
300

Electronics Industry

20.9

29.3

3.7

50.1

4.7
9.5

3.5
11.6

11.2

200

100

52.0

19.4

20.5

20.8

25.3

09/2021 Actual

09/2022 Actual

09/2022 Plan

09/2021 Actual

37.7

35.0

09/2022 Actual

09/2022 Plan0

9

First-Half Results: Sales by Segment and Customer
Performance Products Business Unit
(Billions of yen)•

Sales by Segment
9.6
2.4

Water Treatment Chemicals

10.0

9.8

2.6

2.5

Standard Water Treatment Equipment
and Filters
•

3.2

3.2

3.3
•
•

4.1

3.9

Sales of wastewater treatment chemicals, chemicals
for RO membrane treatment, and other products forthe electronics industry were steady.

4.0

Small-scale pure water production equipment sales
for medical institutions and research institutions wererobust.
Sales of Puric μ (mu), which was launched in theprevious fiscal year, also grew.
Water purification filter sales for vending machinesand coffee machines were strong as well.

Food Products
09/2021 Actual

09/2022 Actual

09/2022 Plan

Water Treatment Chemicals
Standard Equipment/Filters
Food Products••

Although raw material prices have continued to soar,
we have made relatively smooth progress in passing
on costs by negotiating price increases.
Sales have also been recovering from their decline
during the COVID-19 pandemic.

10First-Half Results: Analysis of Operating Profit(Billions of yen)
Operating Profit Analysis
Water
Treatment +2.38
Engineering billion+2.73 billion
YoY+2.51 billion
vs. Plan

6.51
+2.68

+0.54

+0.34

+0.06

-0.84

-0.12

-0.64

Performance
Products

09/2021
Actual

+0.11
+0.05

4.0

Change in Sales

•

•

+0.23
billion09/2022
ActualRevenue growth from increased sales in theelectronics industry had a significant impact on
profit
The performance products business saw greater
profit thanks to not only revenue growth but
improved profitability from passing on costs andcost reductions, etc.
SG&A expenses increased mainly due to personnel
costs.

Compared to Targets

Performance
Products+0.35
billion

•

•

+2.56
+0.13

3.77

•

Water
Treatment +2.28
Engineering billion+0.36

Year-on-Year Change•

09/2022
Plan
Change in Profit Margin•

The risk of increased raw material prices wasfactored into the initial plan, but we made steadyprogress in passing on costs.
We also saw the effects of project cost
improvements expected in the second half aheadof schedule.
The performance products business also improved
profitability through price increases and cost
reductions.
SG&A expenses were impacted by foreign
currency translation differences at our overseas
subsidiaries

Change in SG&A Expenses

11

Contents
1. First-Half Results for Fiscal Year Ending March 2023
2. Full-Year Forecast for Fiscal Year Ending March 2023
(Reference)
3. Topics
4. Company Overview
12Overview of Full-Year Forecast■Orders, sales, and profits are all expected to achieve new record highs for thesecond consecutive year.
Capital investment in the electronics industry has been brisker than expected both in Japan and overseas,
mainly for semiconductors.
Increased orders and sales from the recovery in investment in the general industry field and growth in theperformance products business are also contributing.

(Millions of yen)Orders Received

Net Sales

Operating Profit

Performance Products
Water Treatment Engineering

170,000
135,698

20,50019,581

116,116

125,000
20,000140,000
112,069
19,346

149,500

03/2022 Actual 03/2023 Forecast

105,000

Initial Plan

20,50092,72303/2022 Actual

119,500

03/2023
Forecast

14,500125,000
20,000105,000

Initial Plan

10,850

2,100

1,800

1,763

9,087

11,70012,40003/2022 Actual 03/2023 Forecast

9,900

Initial Plan

13

Projections for Full-Year Forecast

Electronics
Industry[Short-Term Outlook]
There are signs of production and investment reductions, including adeterioration in memory market conditions, but capital investment is
expected to remain at high levels both in Japan and overseas.
In addition to investment in wafers and power semiconductors inJapan and cutting-edge fields overseas in Taiwan, semiconductor
investment in China, including semiconductor memory, has remained
brisk.
Large-scale investments in legacy semiconductors, etc. in Malaysia by
mainly Western manufacturers are expected to continue as well.
[Medium- to Long-Term Outlook]
Countries and regions are increasingly restructuring theirsemiconductor supply chains due to geopolitical risks and concerns
over economic security.
In the medium- to long-term, the semiconductor market is expected
to grow due to increased demand. We will strengthen our supply
chains in the Asia region, including in Japan, and move forward withexpanding our North American operations.

14

Projections for Full-Year Forecast
GeneralIndustry

Sales are expected to recover to pre-pandemic levels due to brisklarge-scale capital investments in areas related to the food productand electronics industries, as well as steady investment in thepharmaceuticals sector.

Electric Power/Water Supply
and Sewage

We expect the electric power/water supply and sewage fields toremain strong.
We also anticipate increased demand for service solutions for nuclear
power plant restarts.

Performance
Products

Steady sales are expected in all areas. In the water treatment
chemicals and standard equipment/filters fields, we are stepping up
our efforts to increase overseas sales in Taiwan, China, and othercountries.

15

Full-Year Forecast: Statement of Income
March 2022

March 2023

Forecast-to-Initial
Plan

(%)

(%)

(Millions of yen)

ActualForecast

Orders received

135,698

170,000

125,000+25.3%+36.0%Net sales

112,069

140,000

125,000+24.9%+12.0%

Gross profit

28,512

34,00030,700+19.2%+10.7%

SG&A

17,662

19,50019,000+10.4%+2.6%

Operating profit

10,85014,50011,700+33.6%+23.9%

Ordinary profit

11,545

15,20011,700+31.6%+29.9%

Profit attributable toowners of parent

9,210

11,5008,200+24.9%+40.2%ROE (%)

12.9%

14.3%

10.6%

–

–

(%)

(%)

25.4%

9.7%

24.3%

10.4%

Initial Plan

Year-on-Year

24.6%

9.4%

16

Full-Year Forecast: Orders, Sales, and Backlog■Our order backlog remains high due to increased large-scale investments in Japanand overseas.
The backlog, a leading indicator of sales, is expected to exceed ¥100.0 billion at the end of the fiscal year ending
March 2023.
This is partly due to the increasingly large-scale investments being made per project into semiconductors andother areas, as well as longer delivery times for raw materials and construction work, etc.
(Billions of yen)Orders Received, Net Sales, and Order Backlog
170.0

Orders Received

Net Sales

Order Backlog
135.6

65.5
62.0

39.2
03/2014

77.8
68.7

78.7
76.4

48.7

46.6

03/2015

03/2016

81.1
74.0

39.2
03/2017

88.0
79.2

103.8
92.2

104.9
96.5

100.6
94.5

140.0

112.0
116.4
86.4

48.3

03/2018

59.3

03/2019

67.8

03/2020

61.8

03/2021

03/2022

03/2023(Forecast)17

Full-Year Forecast: Analysis of Orders and Sales(Billions of yen)Order Analysis+34.3 billion

YoY

135.6

+0.9
+27.6

+0.5

170.0

+38.0

vs. Plan

+5.7

+6.5

1,250
03/2022
Actual+45.0
billion03/2023
Forecast

125.0[Orders]• Electronics industry and general industry orders are
expected to exceed both the previous fiscal year and theinitial plan, reaching a record high of ¥170.0 billion.
• Slight increases are also expected in the electric
power/water supply and sewage fields and the performance
products business.

InitialPlan

Sales Analysis
+0.5

+1.1
+27.9
billion

+24.7

112.0

+2.0

140.0

+2.8

YoY

03/2022
ActualGeneral Industry and Other+11.7

03/2023
Forecast+15.0
billionvs. Plan
125.0[Sales]• Electronics industry and general industry sales are projected
to exceed both the previous fiscal year and the initial plan,reaching a record high of ¥140.0 billion.
• Performance products sales are expected to grow by ¥1.1
billion year-on-year thanks to strong performance in eachfield.

InitialPlan

Electronics Industry

Performance Products

18Full-Year Forecast: Analysis of Operating Profit(Billions of yen)
Operating Profit Analysis

Year-on-Year Change

Water
Treatment
Engineering

•

+3.31
billion•

Water
Treatment
Engineering

•

+2.50
billion

+6.28
+3.65
billion
YoY

10.85

14.5
+0.4

-1.26

-0.17
-0.6

+0.05
-0.12

-1.71 Performance

03/2022

+3.27

+0.17
+0.02
+0.1

Products

Performance
Products+0.33
billion+0.30
billion03/2023+2.80
billionvs. Plan

11.7•

Compared to Targets•••

InitialActualForecast
Plan
Change in Sales
Change in Profit Margin
Change in SG&A Expenses

Profits have increased due to greater revenue,
mainly in the electronics industry.
Increased share of plant sales is also expected to
impact our profit margin.
We anticipate higher profits in the performance
products business due to increased revenue ineach field.
SG&A expenses are expected to increase mainly
due to personnel costs•

We expect to see the effect of increased sales,
mainly in the electronics industry.
Profit margins are expected to be in line with theinitial plan.
We anticipate higher profits in the performance
products business due to increased revenue ineach field.
SG&A expenses are expected to exceed the initialplan, impacted by the depreciation of the yen andother factors.

19

Full-Year Forecast: Orders by Region■Orders are expected to increase both domestically and internationallymainly from large-scale investments in the electronics industry field.

Domestic: On top of the electronics industry, large-scale investments are expected to increase in thegeneral industry field.
Overseas: Large-scale investments in semiconductors have remained strong in Taiwan, China, andMalaysia. The yen has depreciated more than expected at the beginning of the period, and the greatertranslation differences have also impacted orders.
(Billions of yen)Orders (Domestic/Overseas)
170.0

1,800

135.6

75.0

1,400

1,000

104.9
22.5

94.5
29.1

600

200

21.5%
82.3

58.0
44.1%

42.8%

30.9%
65.3

125.0

60%

58.0

15.0

50%

800

400

75.0

70%

1,600

1,200

Orders Overseas by Region

95.0
77.6

48.0

13.9

40%

38.4%

30%

22.5
20%

77.0
10%

0

29.1
3.2
6.9

4.3
3.1
15.0

18.9

03/2020

03/2021

48.0
25.0

16.9
27.1

8.0
12.0

35.0

28.0

0%

03/2020

03/2021

03/2022

03/2023

InitialOverseas Ratio Plan
Forecast

Domestic

Overseas

03/2023

TaiwanChina

03/2022

03/2023

Forecast
SE Asia/US/Other

03/2023
InitialPlan

20Full-Year Forecast: Sales by Region■We expect sales to increase both in Japan and overseas due to progress on theconstruction of large-scale projects ordered.

Domestic: Sales are expected to increase in the electronics industry and general industry where orders are strong.
Overseas: Following growth in Taiwan and China, sales have expanded in Malaysia as well as the US where an order was received
last fiscal year. The yen has depreciated more than expected at the beginning of the period, and the greater translation differences
have also impacted sales.

(Billions of yen)
Sales (Domestic/Overseas)
140.0

1,500

1,300

1,100

900

96.5

100.6

21.5

24.9

22.3%

24.8%

700

500

300

74.9

112.0

37.9%

38.9
34.8%
73.0

75.6

53.0

Sales Overseas by Region

125.0

53.0
70%

60%

42.0
33.6%
83.0

40%

21.5
20%

10%
100

(100)

03/2020

Domestic

03/2021

03/2022

Overseas

03/2023

03/2023

Forecast

InitialPlan

Overseas Ratio

12.0

6.1

13.0

50%

30%

87.0

38.9

5.5
4.4
11.5

24.9
3.6
5.2

13.3

16.0

19.5

03/2021

03/2022

42.0
10.0
12.0

28.0

20.0

0%

03/2020
TaiwanChina

03/2023

03/2023

Forecast

InitialPlan

SE Asia/US/Other

21

Full-Year Forecast: Sales by Segment and Customer
Water Treatment Engineering Business Unit

■We expect to see increased sales mainly in the electronics industry and generalindustry.

Electronics Industry: Sales have grown due to progress on the construction of large-scale projects in Japan andoverseas.
General Industry: Plant sales are up on the recovery in large-scale capital investment. Service solutions sales are alsostrong.
Electric Power/Water Supply and Sewage: Sales have been firm, mainly in the service solutions in Japan.
(Billions of yen)
Sales by Segment
119.5

1,300

1,100

900

700

500

Sales by Market

77.9
36.5
53.1%

82.4
39.0
52.5%

105.0

92.7
47.0

140%

130%

68.5

110%

54.0

41.3

43.3

45.6

82.4

11.2

10.6

100%

90%

42.7%

48.6%

70%

60%

50%

300

77.9

120%

80%

49.2%

119.5

150%

51.0

40%

51.0

30%

100
20%

24.6

24.1

92.7
11.4

11.5
25.0

22.9

69.5%
83.0

53.9%
41.9

57.8%

62.8%

47.6

58.2

03/2020

03/2021

03/2022

105.0
11.0
22.7
67.9%
71.3

10%

(100)

03/2020

03/2021

Service Solutions

03/2022Plant

03/2023

03/2023

Forecast

InitialPlan

Service Solutions Ratio

0%Electric Power/Water Supply and Sewage
General Industry
Electronics Industry

03/2023

03/2023

Forecast

InitialPlan

Electronics Industry Ratio

22

Full-Year Forecast: Electronics Industry Orders■We expect high levels of investment both in Japan and overseas, mainly insemiconductors.

Domestic: Orders for large-scale projects have been received as expected in the initial plan. Service
solutions orders have also been strong.
Overseas: Investment has continued at a high level in Taiwan, and large-scale investments insemiconductors have been brisk in China and Malaysia as well where orders for multiple projects are
expected.

(Billions of yen)

Electronics Industry Orders (1st Half vs. 2nd Half)
700

600

Domestic

60.8

Overseas

49.9

49.1

Electronics Industry Orders
110.0

1,200

82.3

1,000

42.0

500

70.0

800

32.3

400

300

19.5

23.0

15.0

38.0

23.2

46.7

20.0

10.7

14.9

8.8
0

8.0

17.3

600

18.0

200

100

30.0

11.8

25.9

14.0

22.0

400

200

12.0

48.1
18.1
30.0

42.5

53.0

25.6
16.9

29.2

72.0
38.0

40.0

34.0

03/2023

03/2023
Initial
Plan

0

1st
Half

2nd
Half

03/2021

1st
Half

2nd
Half

03/2022

1st
Half

2nd
Half

03/2023
Forecast

1st
Half

2nd
Half

03/2023
Initial Plan

03/2020

03/2021

03/2022

Domestic

Forecast

Overseas

23

Full-Year Forecast: Electronics Industry Sales■Sales are expected to increase both in Japan and overseas due to progress on
the construction of large-scale projects.

Domestic: Sales are expected to increase due to progress on the construction of large-scale semiconductor
projects, etc.
Overseas: Higher sales are projected due to progress on the construction of large-scale projects in Taiwan,
China, the US, etc.
(Billions of yen)
Electronics Industry Sales (1st Half vs. 2nd Half)
45.2

500

450

32.8

400

37.7

300

22.2

25.3

25.3

250

200

150

10.8

100

50

11.3

10.2
15.1

13.5
11.8

19.8

35.0

24.0

13.6

71.3

800

36.3

600

20.0
21.3

58.2

700

16.1

500

15.0

41.9

400

300

13.0

83.0

900

23.9

350

Electronics Industry Sales

20.1

0

16.8

48.0

47.6
21.1

33.3

200

100

36.1

25.1

26.4

24.8

03/2020

03/2021

03/2022

35.0

35.1

03/2023

03/2023
Initial
Plan

0

1st
Half

2nd
Half

03/2021

Domestic

1st
Half

2nd
Half

03/2022

Overseas

1st
2nd
Half
Half
03/2023
Forecast

1st
2nd
Half
Half
03/2023
Initial Plan

Forecast

Domestic

Overseas24Full-Year Forecast: Sales by Segment and Customer
Performance Products Business Unit
(Billions of yen)

Water Treatment Chemicals

Sales by Segment

18.5
5.1

6.2

7.1

18.2

20.0

5.4

5.0

6.7

7.0

7.0

7.7

8.1

8.0

19.3
4.9

5.0

6.2

6.9

•

20.5

Standard Water Treatment Equipment
and Filters•

03/2021

03/2022

Water Treatment Chemicals
Food Products

03/2023 03/2023
Forecast Initial Plan

Sales of small-scale pure water production
equipment for research institutions and medical
institutions as well as water purification filters are
expected to grow.

Food Products••

03/2020

We expect greater sales of wastewater treatment
chemicals, chemicals for RO membrane
treatment, cooling water treatment chemicals,
etc. mainly in the electronics industry.

Increased sales are expected for various foodadditives.
We also expect to make progress in passing on
costs through price increases.

Standard Equipment/Filters

25Full-Year Forecast: Cash Flows(Billions of yen)
Cash Flow Trends
16.10
10.79

12.18

On top of trends in business performance, our cash flow
is significantly impacted by progress on the constructionof large-scale projects and the collection of payments
for them.

Major Trends in Fiscal Year Ending March 2023

10.78

10.0

•

4.92
-1.26
-4.58

-1.52
-2.58

-1.8
•
-8.2

03/2021

03/2022

03/2023(Forecast)•

Cash Flows from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
EBITDA

Cash flows from operating activities include
investments in facility-owned service solutions
projects, which we expect to make a total of
about ¥25.0 billion of in phases by fiscal year
ending March 2025.
We also assume that R&D, overseas operations,and digital-related expenses will increase.
Cash flows from investment activities include
plans to enhance the Tsukuba Factory andincrease investment in digital and R&D.
Cash flows from financing activities are
expected to increase due to increased
borrowings for investment in facility-owned
projects.
Total dividends paid also continues to increase,
expected to grow 52% YoY to over ¥2.3 billion
for the fiscal year ending March 2023.

(Operating profit + Depreciation)

26

Dividend Trends■ A 4-for-1 common share split was conducted effective as of October 1, 2022.
■ Fiscal year-ending March 2023 dividends for both the first half and the full year were revised
upward, with annual dividends rising to ¥58 per share.
■ The medium-term management plan, which runs through fiscal year ending March 2025,
aims for both grow investment and continued dividend increases to raise the dividend payout
ratio to a level of 25% or higher as soon as possible.

58.0

Dividend per share
Figures in ( ) indicate
consolidated dividend
payout ratio

13.3

18.3

40.0
26.0
(16.6%)

28.5(23.1%)

(Yen)

40.0
(22.4%)(19.9%)(18.5%)(18.8%)(21.9%)
03/2018

03/2019

03/2020

03/2021

03/2022

03/2023 (Forecast) 03/2023 (Plan)* Dividends are listed on a post-share split basis, which went into effect as of October 1, 2022.

27

Key Indicators
FY ended
03/2022
ActualFY ending
03/2023
Forecast

FY ending
03/2023
Initial Plan

Capital expenditures(Millions of yen)

3,387

1,800

2,000

R&D expenses(Millions of yen)

2,146

2,700

2,700

Depreciation(Millions of yen)

1,332

1,600

1,500

Interest-bearing debt
(Millions of yen)

15,62828,00030,000No. of employees

2,476

2,500

2,500

28

Contents
1. First-Half Results for Fiscal Year Ending March 2023
2. Full-Year Forecast for Fiscal Year Ending March 2023
(Reference)
3. Topics
4. Company Overview
29

TOPICS: Growth Area Initiatives
New Testing Buildings at the R&D Center Begin Operations■The labs have begun developing nonaqueous separation and purification
technologies and conducting R&D intonext-generation ultrapure water systems.
■Research activities aimed at developing
cutting-edge technologies in semiconductor
development and manufacturing have also
begun.

30

TOPICS: Performance Products Business
Digital Promotion Initiatives■We have launched a website forresearchers and those engaged
in laboratories.
https://puric.organo.co.jp/en/■The site provides useful
information on water andanalytics as well as our products
and related case studies.
■Online exhibitions are also
being held.
■We plan to launch a BtoB ecommerce site as well.
31

TOPICS: Sustainability
Key Issues (Materiality) Identified■We extracte keywords from our management philosophy, long-term management
vision and others and evaluated and assessed their importance and validity, based on
which we identified the following materiality.
Management Philosophy
Organo serves as a valuable partner company by leveraging
its leading-edge technologies cultivated through longexperience with water treatment, by contributing to theindustries that create the future, and by playing a key rolein the development of societal infrastructure.

Long-term Management Vision

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

Key Issues (Materiality)
Achieve Continuous Business Growth
Building a Business Foundation

1) Contribute to a sustainable global environment• Address water resource issues• Respond to climate change• Expand environmentally friendly products and services• Promote the 3Rs (Reuse, Reduce, Recycle)• Conserve biodiversity
2) Provide high value-added products and services byleveraging technological capabilities

3) Strengthen governance and ensure compliance• Promote occupational health and safety• Respect for human rights• Strengthen compliance• Strengthen risk management
4) Create a workplace where diverse human resources canplay an active and rewarding role5) Strengthen supply chain management

32

TOPICS: Reducing Environmental Impact
Supporting Customersʼ Energy, Labor, and Personnel Efficiencies
Energy Conservation Grand Prize 2016
Energy Conservation Center, Japan Chairmanʼs Award

Water Heat Utilization System
Energy Conservation Grand Prize 2020
Energy Conservation Center, Japan Chairmanʼs Award

Cooling ｗater treatment agent
ORBRAID
Energy Conservation Grand Prize 2021
Judging Committee Special Excellence Award

Energy-saving solutions for RO
membrane treatment facilities
ORSMART RO
HVAC&R Award 2022
Solution Service Category

Cooling water energy saving
service ORSMART CW■Utilizes heat pump technology to harness the heat ofwater used in factories and other facilities as energy.
Reduces power consumption and CO2 emissions by
more than 50%.
■Focuses on the heat exchange efficiency index ofrefrigeration equipment used in factories and otherfacilities to save labor and reduce the amount ofenergy used in cooling water systems.
■Saves labor, cuts personnel, and reduces theamount of energy used through a combination of RO
membrane water treatment chemicals, automatedinjection controls and a remote management system.
■Saves labor, cuts personnel, and reduces theamount of energy used through a combination of
ORBRAID series chemicals, automated injection controls
and a remote management system.

33

Contents
1. First-Half Results for Fiscal Year Ending March 2023
2. Full-Year Forecast for Fiscal Year Ending March 2023
(Reference)
3. Topics
4. Company Overview
34

Company Overview■Company profile
Company nameORGANO CORPORATIONHead office

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

EstablishedMay 1, 1946

Capital¥8,225 million

No. of employees

2,493 (consolidated) *As of September 30, 2022

Stock exchange
listing

Tokyo Stock Exchange Prime Market■Shareholder composition

Financial instruments
business operators,
Individuals/Other other corporations, etc.
11.7％
3.3%

No. of shares issued:

Financial institutions
18.5％

11,589No. of shareholders:Tosoh Corporation
42.8％

5,087

Foreign corporations, etc.
23.7％

Representative Director
and President

Masayuki Yamada

Management Philosophy
Organo serves as a valuable partner company byleveraging its leading-edge technologies cultivated throughlong experience with water treatment, by contributing to
the industries that create the future, and by playing a keyrole in the development of societal infrastructure.

(As of September 30, 2022)

35

The Organo Groupʼs Business Structure
Performance Products Business Unit

Water Treatment Engineering Business Unit
Plant Division(17.3％)(82.7％)

Facilities maintenanceOperational support services
and comprehensive
maintenance
Facility enhancements,
renovation and reconditioning
Contract water treatment¥45.6 billion(49%)¥47.0 billion(51%)[Service Solutions][Plant]Treatment chemicals for
wastewater, cooling water,
cleaning, RO membranes,
boiler water, etc.

¥19.3 billion¥92.7 billion

Service Solution Division

Sales by Segment

Water Treatment Chemicals Division

Pure and ultrapure water facilities
Wastewater treatment andrecovery facilities
Valuable material recovery facilities
Production processing-related
facilities

Standard Water Treatment
Equipment and Filters Division
Pure and ultrapure
water systems
Water purification
filters

Consolidated net sales¥112.0 billion(FYE March 2022)

Food Products Division
Food additives andprocessing agents
Food ingredients

Sales by Segment

Sales by Market¥58.2 billion
(63%)

¥22.9
billion(25%)[Electronics
Industry][General[SocialIndustry] Infrastructure]¥11.4
billion(12%)¥7.7 billion(40%)¥6.7 billion(35%)¥4.9 billion(25%)[Standard[Food[Water Treatment
Equipment/Filters]
Products]
Chemicals]*Amounts represent sales for FYE March 2022,
percentages represent share of total sales.

36

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

Factory that assembles
large-scale water
treatment plant units

Domestic Sales andService Sites

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

(Established September 2021)■ East Asia
China, Taiwan

World leading ion exchange
resin refinery

R&D Center(Sagamihara)

Semiconductor production
share by region(2021; WSTS survey)
Europe 9%
UnitedStatesWe have established anationwide sales andservice network.

■ North America

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

Japan8% Asia Pacific 62%

Established a local subsidiaryin the US (Sept. 2021)
To date, the Group has primarily
expanded into areas where theelectronics industry is prominent,
including Japan, China, Taiwan,
and Malaysia.
In September 2021, the Groupestablished a US subsidiary basedin Arizona in conjunction withcustomers' factory expansions.

37

Organoʼs History
Development

GrowthEvolution● Historical sales

Expansion2010ʼs~2000ʼs~1990ʼsUltrapure water
facilities for theelectronics industry

Overseas development
Strengtheing ofservice solutions

Semiconductor
market expansion,
Taiwan/China markets
growth1980ʼsWater treatment
facilities for power
plants2005~

1970ʼsWater supply andsewage facilities
Refining facilities forsugar solutions, other1960ʼsFounded 1946

Large-scale pure waterequipment for generalindustry■Thailand (1989)

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

Athermal water
distillation equipment

America ■(2021)

Full-scale launch ofcomprehensive service
solutions■Vietnam (2010)

1970

1980

1990

2000

2010

2021

38

Contact
Corporate Strategy and Planning Dept.
Corporate Management and Planning

TEL: +81-3-5635-5111 / FAX: +81-3-3699-7240
Website:https://www.organo.co.jp/english/
Inquiries:

https://www.organo.co.jp/english/contact/input/
The forecasts in this document regarding business are based on information available at the time of preparation
and are therefore subject to risk and uncertainty. Actual performance may differ from these projections.

39