ORGANO CORPORATION
Financial Results for First Half of Fiscal YearEnding March 31, 2024
Securities Code: 6368

November 7, 2023

1

Contents

1. First-Half Results for Fiscal Year Ending March 2024
2. Full-Year Forecast for Fiscal Year Ending March 2024
3. Company Overview and Business Profile2

Contents

1. First-Half Results for Fiscal Year Ending March 2024
2. Full-Year Forecast for Fiscal Year Ending March 2024
3. Company Overview and Business Profile3

Overview of First-Half Results: Overview for FY ending 03/2024
Orders received declined in the absence of the series of orders for large-scale projects
received in the same period of the previous fiscal year. Net sales expanded, with smooth
progress in the construction of Plant projects and a strong performance from Service
Solutions and Performance Products. Operating profit increased, boosted by improvementin the profit margin, in addition to revenue growth.
(Millions of yen)Orders Received

Net Sales

Operating Profit

Performance Products
Water Treatment Engineering

78,23010,26676,15011,06570,00010,90062,117
10,03465,46911,05070,0007,855

10,9006,510
1,080

67,96409/2022
Actual

65,08409/2023
Actual59,10009/2023
Plan

52,08354,41909/2022
Actual

09/2023
Actual59,1005,430

09/2023
Plan

09/2022
Actual

1,270

6,600
1,250

6,585

09/2023
Actual5,350

09/2023
Plan

4

Overview of First-Half Results for FY ending 03/2024
Electronics
Industry

Orders and sales both declined, as a rush of construction in the wake ofcustomer-led project delays in China made it necessary to temporarily refrainfrom taking new orders. Capital investment remained at a high level in Japan,
Taiwan, and other regions, despite construction delays in some projects.

GeneralIndustry

In Japan, orders were strong for Plant projects such as those related toelectronics and pharmaceuticals. Sales expanded year-on-year, despite fallingslightly short of the initial forecast, with progress in the construction of projects
received and strong performance from Service Solutions.

Electric Power/Water Supply
and Sewage

Despite a year-on-year decline in revenue due to fewer Plant projects on hand,Service Solutions performed firmly in Japan.

Performance
Products

Sales of Water Treatment Chemicals were steady in the electronics industry. Salesof Standard Equipment/Filters also grew, including small-scale pure waterproduction equipment and water purification filters for medical institutions andresearch institutions. The Food Products business benefited from price increases,
passing on the rising prices of raw materials.

5First-Half Results: Statement of Income
September 2022
(Millions of yen)

ActualSeptember 2023
ActualInitial Plan

Year-on-Year

Actual-to-Initial
Plan

(%)

(%)

Orders received

78,23076,15070,000

-2.7%

+8.8%

Net sales

62,11765,46970,000

+5.4%

-6.5%

Gross profit

16,10818,12917,100+12.5%

+6.0%

(%)

25.9%

27.7%

24.4%

SG&A

9,597

10,274

10,500

+7.0%

-2.2%

Operating profit

6,510

7,855

6,600

+20.7%+19.0%

(%)

10.5%

12.0%

9.4%

Ordinary profit

7,451

8,539

6,600

+14.6%+29.4%

Profit attributableto owners of parent

5,027

5,538

4,600

+10.2%+20.4%

6

First-Half Results: Analysis of Orders and Sales(Billions of yen)Order Analysis+0.7-2.0 billion
YoY
+2.7
78.2

+1.1

-6.7

+0.1
+6.1 billion
vs. Plan
+4.4
+1.6

76.1

-0.1

70.0

690

09/2022
Actual

09/2023
Actual

09/2023
Plan[Orders]

Areas such as the general industry, electric
power/water supply and sewage, andPerformance Products businesses performed
strongly, although orders declined in theelectronics industry after a series of large-scale
projects in the previous fiscal year. Service
Solutions performed well compared to theforecast, in addition to orders for some projects inJapan received in the first half.

Sales Analysis
+0.1
-0.9

+3.3 billion +1.0
YoY
+3.4
62.1
09/2022
Actual

-1.4-4.5 billion
vs. Plan

+0.1

-3.8

70.0

+0.3 65.4

09/2023
ActualElectronics Industry
Electric Power/Water Supply and Sewage

09/2023
Plan

General Industry
Performance Products[Sales]General industry grew year-on-year, while growthin the electronics industry was sluggish due to theimpact of construction delays in large-scale
projects overseas. Service Solutions andPerformance Products performed strongly.
7

First-Half Results: Analysis of Operating Profit(Billions of yen)

Operating Profit Analysis

Water Treatment
Engineering+1.15 billion+0.56+1.34 billion
YoY
6.51

+1.22
-0.63

-0.13

+0.36

contributed to an improvement in profit margin, despite
the impact of Plant project construction delays.
Water Treatment• Profit was also boosted by an improvement in businessEngineering
mix due to the expansion of Service Solutions.
+1.23 billion• Profit expanded in the Performance Products Business
Unit, mainly due to higher revenue.
+2.11
+0.05
+1.25
billion• SG&A expenses increased, mainly due to personnel
7.85
vs.
Plan
costs.
+0.17
+0.05
-1.04

-0.04

6.6

■ Compared to Targets• The improvement in profit in the Water Treatment+0.02 billion+0.18 billion

Change in Sales-0.08

Performance
Products

Performance
Products

09/2022
Actual

■ Year-on-Year Change• The Water Treatment Engineering Business Unit

09/2023
ActualChange in Profit Margin

09/2023
Plan

Change in SG&A Expenses

Engineering Business Unit was partly due to a lowerthan-anticipated impact from price hikes for raw
materials and construction and a more favorable profit
outlook, in addition to initiatives to reduce costs andimprove revenue. Sales were affected by delays in the
progress of Plant project construction.
• The Performance Products Business Unit performed
largely on target.

8

First-Half Results: Orders by Region
Despite the impact of a decline in orders received in China, they remained at high levels
in other regions.
Domestic: Orders have been strong across all fields. Service Solutions orders have also been strong.
Overseas: Customer-led project delays in China led to a subsequent rush of construction, making it necessary
to temporarily refrain from receiving orders.
(Billions of yen)Orders (Domestic /Overseas)
Domestic
78.2

26.3

Orders Overseas by Region
TaiwanOverseas

76.1
21.4

70.0
23.0

09/2022 Actual

54.7

09/2023 Actual

47.0

09/2023 PlanSE Asia/US/Other

26.3
7.2
7.4

51.9

China

21.4

7.9
2.3

23.0
6.0
6.0

11.5

11.1

11.0

09/2022 Actual

09/2023 Actual

09/2023 Plan

9

First-Half Results: Sales by Region
Sales in Japan were largely on target, but overseas sales were affected by delays in therecording of sales in China.
Domestic: Service Solutions and Performance Products performed strongly, despite construction delays in someprojects.
Overseas: Sales were recorded later than forecast due to revisions to the progress of large-scale projects in China.
(Billions of yen)

Sales (Domestic /Overseas)
Domestic
62.1
26.2

Sales Overseas by Region
TaiwanOverseas

65.4
21.3

70.0
25.0

26.2
7.4
7.3

35.8

09/2022 Actual

44.1

09/2023 Actual

45.0
11.4
09/2023 Plan

China

09/2022 Actual

SE Asia/US/Other
25.0

21.3
7.0
6.1
6.2

9.0

8.9

9.0

09/2023 Actual

09/2023 Plan

10

First-Half Results: Sales by Segment and Customer
Water Treatment Engineering Business Unit
Service Solutions performed strongly, although Plant fell short of the plan due to construction delays.
Electronics Industry: Service Solutions performed well, despite slower-than-expected progress on construction
for major projects.
General Industry: Sales increased significantly year-on-year, despite falling short of the plan due to delays in
the progress of construction.
Electric Power/Water Supply and Sewage: Sales were firm, mainly in Service Solutions in Japan.
(Billions of yen)
Sales by Segment
Service Solutions

700

600

52.0

54.4

Sales by Market

Plant

Electronics Industry

59.1

General Industry

Electric Power/Water Supply and Sewage

59.1

52.0

54.4

37.7

38.1

42.0

9.5
4.7

13.0
3.2

14.0
3.1

09/2022 Actual

09/2023 Actual

09/2023 Plan

500

400

31.5

29.6

35.6

300

200

100

20.5

24.8

23.5

0

09/2022 Actual

09/2023 Actual

09/2023 Plan

11

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

Sales by Segment

11.0

10.9

3.3

3.0

3.4

3.6

10.0
2.6

3.2

4.1

4.2

4.2

09/2022 Actual

09/2023 Actual

09/2023 Plan

Water Treatment Chemicals

Standard Equipment and Filters■ Water Treatment Chemicals
Sales of wastewater treatment chemicals,
chemicals for RO membrane treatment, andother products for the electronics industry weresteady.
■ Standard Water Treatment Equipment andFilters
Sales of small-scale pure water production
equipment for medical and research institutions
and water purification filters for cup-style vending
machines and coffee machines were strong aswell.
■ Food Products
Sales have been recovering from their decline
during the COVID-19 pandemic. The increase insales was also due to the effect of revising selling
prices to reflect the rise in raw material prices.

Food Products

12

Contents

1. First-Half Results for Fiscal Year Ending March 2024
2. Full-Year Forecast for Fiscal Year Ending March 2024
3. Company Overview and Business Profile

13

Overview of Full-Year Forecast
Orders and sales are expected to be in line with the initial plan, while operating
profit is expected to exceed the plan due to the improvement in profit margin.
Despite delays in investment plans and construction schedule for some projects, we expect to achieve
the full-year sales target. On top of the improvement in profit margin in the Plant Division, Service
Solutions and Performance Products also contributed to growth.
(Millions of yen)Orders Received

Net Sales

Operating Profit

Performance Products

Water Treatment Engineering

173,491
21,068150,000

150,000

22,00021,800132,426

150,000

150,000

22,00021,80020,82420,00015,212

2,600

2,500

2,246
152,422

03/2023 Actual

128,000

128,200

03/2024 Forecast

Initial Plan

111,601

03/2023 Actual

128,000

17,400128,200
12,96603/2024 Forecast

Initial Plan

16,00003/2023 Actual 03/2024 Forecast

13,500Initial Plan

14

Projections for Full-Year Forecast
Electronics
Industry

Despite subdued market conditions for semiconductor memory in the short term,
capital investment is expected to remain at high levels both in Japan andoverseas due to factors such as progressive reconstruction of global supply chainsand expanding semiconductor demand in the long term.

GeneralIndustry

Investment is expected to expand, mainly in fields related to the electronics
industry and pharmaceuticals, especially in Japan.
We will strengthen our proposals to help customers conserve energy, reduce CO 2
emissions, improve efficiency, etc.

Electric Power/
Water Supply
and Sewage

We expect the electric power/water supply and sewage fields to remain strong.
We also anticipate a trend toward increased demand for maintenance for nuclear
power plant restarts.

Performance
Products

Steady sales are anticipated in all areas. In Water Treatment Chemicals andStandard Equipment/Filters, we will work to strengthen business expansion in
Taiwan, China, and other overseas markets.

15

Full-Year Forecast: Statement of Income
March 2023
(Millions of yen)

ActualMarch 2024
Forecast

Forecast-to-Initial
Plan
(%)

Year-on-Year

Initial Plan(%)

Orders received

173,491

150,000

150,000-13.5%

0.0%

Net sales

132,426

150,000

150,000+13.3%

0.0%

Gross profit

34,97641,00037,000+17.2%+10.8%

(%)

26.4%

27.3%

24.7%

SG&A

19,76321,00021,000

+6.3%

0.0%

Operating profit

15,21220,00016,000+31.5%+25.0%

(%)

11.5%

13.3%

10.7%

Ordinary profit

16,02020,70016,000+29.2%+29.4%

Profit attributable toowners of parent

11,73014,000

11,200+19.3%+25.0%ROE (%)

14.5%

15.3%

12.6%

–

–

16

Full-Year Forecast: Orders, Sales, and Backlog
Our order backlog is expected to remain high due to the forecast continuation oflarge-scale investments in Japan and overseas.
The backlog, a leading indicator of sales, is expected to exceed ¥100.0 billion, as it was at the endof the previous fiscal year. This is due to factors such as increasingly large-scale investments insemiconductors and other areas, the rising prices of raw materials, and longer construction times.
(Billions of yen)Orders Received, Net Sales, and Order Backlog
173.4

Orders Received

Net Sales

Order Backlog

150.0 150.0
135.6

77.8
68.7

76.478.7

48.7

46.6

03/2015

03/201681.1

88.0 79.2

103.8
92.2

104.9
96.5

112.0
94.5 100.6

74.0

39.2
03/2017

132.4

117.6

117.6

03/2023

03/2024

86.4
48.3

03/2018

59.3

03/2019

67.8

03/2020

61.8

03/2021

03/2022(Forecast)17

Full-Year Forecast: Analysis of Orders and Sales(Billions of yen)Order Analysis-23.4 billion
YoY
173.4

+0.9
+0.8

+4.7

+0.2 ±0.0 billion
vs. Plan

-30.0

-0.2

150.0

03/2023
Actual

1,500

03/2024
Forecast

150.0

InitialPlan

Sales Analysis+1.1+17.5 billion
YoY
+15.8

132.4
03/2023
Actual

+2.3

+0.2

150.0

±0.0 billion
vs. Plan

-0.2

150.0

ｰ1.7

03/2024
Forecast

Electronics Industry
Electric Power/Water Supply and Sewage

InitialPlan[Orders]
Although the forecast is for a slowdown in the growth trend
seen until the previous year, semiconductor-related
investment is expected to remain high in Japan and overseas.
Despite schedule delays forecast in some projects, orders forthe full year are expected to be in line with the initial plan.
[Sales]Sales growth is expected, mainly in the electronics industry,
due to progress on the construction of large-scale projectorders received in the previous fiscal year, as well as the
expansion of Service Solutions. An increase in sales isanticipated for general industry and Performance Products,
although sales are expected to decline in electric power/watersupply and sewage due to a decrease in Plant projects on
hand.

General Industry
Performance Products

18Full-Year Forecast: Analysis of Operating Profit(Billions of yen)
Operating Profit Analysis
Water Treatment
Engineering+4.43 billion

20.0

+4.04

+4.78 billion
YoY
+1.49
15.21

-1.11

Water Treatment
Engineering+3.90 billion
+3.94

+0.42
-0.04

+0.05
-0.12

Change in Sales+4.00 billion
vs. Plan

+0.02

16.0

Performance
Products+0.10 billion

Performance
Products+0.35 billion

03/2023
Actual+0.07

03/2024
Forecast
Change in Profit Margin

InitialPlan■ Year-on-Year Change• On top of sales growth in the Plant Division, profit
margin is also expected to improve due to higher
profitability in each project and the expansion ofService Solutions.
• We anticipate higher profits due to increased
revenue in Performance Products.
• SG&A expenses are expected to increase mainly
due to personnel costs.

■ Compared to Targets• The increase in profit in the Water Treatment
Engineering Business Unit was partly due to alower-than-anticipated impact from price hikes for
raw materials and construction and a morefavorable profit outlook, in addition to initiatives toreduce costs and improve revenue.
• Profit in the Performance Products Business Unit isexpected to be in line with the plan.

Change in SG&A Expenses

19Full-Year Forecast: Orders by Region
In Japan, orders are expected to increase, mainly in the electronics industry, and offset a
slowdown in orders overseas.
Domestic: Service Solutions are forecast to perform strongly, in addition to large-scale investment in the electronics
industry.
Overseas: A lull is expected in China and Taiwan after rapid expansion in the FYs ended 03/2022 – 03/2023.
(Billions of yen)Orders (Domestic /Overseas)
173.4

2,000

135.6

1,600

1,400

42.8%

78.0

58.0

45.0%

94.5

1,000

30.9%29.1
400

77.6

65.3

95.4

150.0

60
%

58.0
40.0
26.7%
110.0

18.6
55.0

50
%

55.0

13.9

40
%

800

600

78.0

70
%

150.0

1,800

1,200

Orders Overseas by Region

36.7%
95.0

30
%

20
%

10
%

200

0

29.1
3.2
6.9
18.9

29.8

16.9
27.1

29.6

03/2022

03/2023

40.0

15.0

13.0

15.0

10.0
25.0

17.0

0%

03/2021

03/2022

Domestic

03/2023
Overseas

03/2024
Forecast

03/2024
Initial Plan

Overseas Ratio

03/2021

TaiwanChina

03/2024
Forecast

03/2024
Initial PlanSE Asia/US/Other

20

Full-Year Forecast: Sales by Region
We expect sales to increase both in Japan and overseas due to progress on the constructionof large-scale projects ordered.
Domestic: Sales are expected to grow for Plant and Service Solutions, mainly in the electronics industry.
Overseas: Sales are expected to fall short of the plan, remaining at a level similar to the previous year due to theimpact of construction schedule delays.
(Billions of yen)

Sales (Domestic /Overseas)
150.0

150.0

132.4

1,500

1,300

100.6

112.0

50.0

38.9

24.9

54.0

38.9
60
%

50
%

33.3%

24.9

36.0%
40
%

700

24.8%
75.6
500

300

34.8%

37.5%

73.0

82.7

54.0

49.6

50.0

14.4

13.0

11.6

18.0

20.0

19.0

20.0

03/2024
Initial Plan

70
%

49.6

1,100

900

Sales Overseas by Region

100.0

30
%

96.0

3.6
5.2

14.0

6.1
13.3

16.0

19.5

23.5

03/2021

03/2022

03/2023

03/2024
Forecast

China

SE Asia/US/Other

20
%

10
%

100

(1
00)

03/2021

03/2022

Domestic

03/2023

Overseas

03/2024
Forecast

03/2024
Initial Plan

Overseas Ratio

0%

Taiwan21

Full-Year Forecast: Sales by Segment and Customer
Water Treatment Engineering Business Unit
Sales growth in Service Solutions is expected to exceed the forecast, but will fall short ofthe plan in the Plant Division.
Electronics Industry: Sales growth in Service Solutions is expected on top of progress in the construction of large-scale
projects.
General Industry: A year-on-year increase in sales is expected for both Plant and Service Solutions, mainly in Japan.
Electric Power/Water Supply and Sewage: Sales are expected to be firm, mainly in Service Solutions in Japan, despite adecline in sales in the Plant Division.
(Billions of yen)
Sales by Segment
Sales by Market
128.0

128.2

111.6

1,300

111.6

15
0%

14
0%

92.7

1,100

82.4
900

700

500

300

39.0
52.5%

47.0

49.2%
45.6

43.3

100

61.5

70.0

72.2

90
%

80
%

44.8%

58.0
45.3%

56.0

43.7%

60
%

50
%

40
%

10.0

26.7

26.7

71.3%

71.4%

11.4
22.9

24.3

57.8%
47.6

62.7%
58.2

67.6%
75.4

91.3

91.5

03/2021

03/2022

03/2023

03/2024
Forecast

03/2024
Initial Plan

10.6
24.1

70
%

50.0

10.0

11.7

82.4

11
0%

10
0%

128.2

92.7

13
0%

12
0%

128.0

30
%

20
%

10
%

(1
00)

03/2021

03/2022

Service Solutions

03/2023
Plant

03/2024
Forecast

03/2024
Initial Plan

Service Solutions Ratio

0%Electronics Industry

General Industry

Electric Power/Water Supply and Sewage

Electronics Industry Ratio

22

Full-Year Forecast: Electronics Industry Orders
Despite a lull in China, Taiwan, and elsewhere overseas, continued investment growth isforecast in Japan.
Domestic: Plant orders are expected to exceed the initial plan and orders are also expected to be strong in Service
Solutions.
Overseas: Orders in Taiwan and China are expected to remained at high levels despite a lull, while large-scale
investments are anticipated to continue in Malaysia.
(Billions of yen)
Electronics Industry Orders (1st Half vs. 2nd Half)

Electronics Industry Orders

63.9

700

113.0
1,200

49.9

600

49.1

42.4

500

400

32.3

300

15.0

23.2

40.5

45.0
38.0

38.0

16.1

22.0

28.0

600

17.3

42.5

35.0

53.0

50.0

400

200

100

83.0

72.5

800

49.3
18.8

83.0

82.3

1,000

25.9

11.8

14.5

23.5

24.4

25.6
16.0

17.0

200

16.9

29.2

40.5

48.0

03/2023

03/2024
Forecast

33.0

0

0

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

03/2022
Domestic

03/2023
Overseas

03/2024
Forecast

03/2024
Initial Plan

03/2021

03/2022

Domestic

03/2024
Initial Plan

Overseas

23

Full-Year Forecast: Electronics Industry Sales
Sales are expected to increase due to progress on the construction of large-scale
projects and growth in Service Solutions.
Domestic: Service Solutions are expected to perform well on top of progress in construction for major projects.
Overseas: Year-on-year sales growth is projected due to progress on the construction of large-scale projects in Taiwan,
China, Malaysia, etc.
(Billions of yen)

Electronics Industry Sales (1st Half vs. 2nd Half)

37.7

200

37.7

38.1

32.8

400

13.5

24.0

20.0

18.4

91.3

91.5

46.0

49.0

45.3

42.5

03/2024
Forecast

03/2024
Initial Plan

75.4

800

29.0

600

58.2
47.6

43.5

500

400

21.1

33.3

300

100

11.8

19.5

900

700

27.5

25.3
19.8

49.5
42.0

500

300

1,000

53.1

600

Electronics Industry Sales

13.0

13.6

18.2

19.7

25.5

22.0

20.5

200

100

0

31.9

26.4

24.8

03/2021

03/20220

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

03/2022
Domestic

03/2023
Overseas

03/2024
Forecast

03/2024
Initial Plan

03/2023

Domestic

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

Sales by Segment

20.8
18.2
5.0

22.0

21.8

6.1

6.0

7.3

7.3

19.3
4.9

5.7

6.7

7.0

6.9

7.7

8.0

8.6

8.5

03/2021

03/2022

03/2023

03/2024
Forecast

03/2024
Initial Plan

Standard Equipment/Filters

Food Products

6.2

Water Treatment Chemicals■ Water Treatment Chemicals
We expect greater sales of wastewater treatment
chemicals, chemicals for RO membrane treatment,cooling water treatment chemicals, etc., mainly forthe electronics industry.
■ Standard Water Treatment Equipment andFilters
Sales of small-scale pure water production
equipment for research and medical institutions
and water purification filters for vending machinesand coffee machines are expected to grow.
■ Food Products
Sales growth is forecast for products such as foodprocessing agents, in addition to a boost from priceincreases reflecting the rising price of raw
materials.

25Full-Year Forecast: Cash Flows(Billions of yen)

Cash Flow Trends after Reclassification
03/2022
Reclassification of investment of ¥5.0
billion in facility-owned projects from
Cash Flow from Operating Activities toCash Flow from Investing Activities

22.0
17.03

15.78

03/2024• On top of trends in business performance, cash flow issignificantly impacted by progress on the construction oflarge-scale projects and the collection of payments forthem.
• In FY ending 03/2024, cash flow is projected to improvewith the progress in collection of accounts receivable. In
cash flows from investing activities, investment infacility-owned services is expected to proceed, while
cash flows from financing activities are also anticipatedto be negative.

18.0 Reclassification

14.7
12.18

-2.58

of the planned
investment of¥11.0 billion

-5.0
-4.03

-6.52
03/2023
Reclassification of¥14.5 billion invested

03/2022-15.8
03/2023-13.0
03/2024 (Forecast)

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

EBITDA[Investment in facility-owned services]■Investments in facility-owned services are recorded in
Investments in leases (work in progress during
construction) in the balance sheet.
Amounts of investment are included in current assets,
so the statement of cash flow indicates the investment
as Cash Flow from Operating Activities.
■In the graph on the left, investments in facility-owned
services (¥5.0 billion in FY03/2022, ¥14.5 billion in
FY03/2023, and ¥11.0 billion in FY03/2024) arereclassified from Cash Flows from Operating Activities
to Cash Flows from Investing Activities.

(Operating profit + Depreciation)

26

Dividend Trends■ The dividend forecast for FY03/2024 has been revised upward due to theimprovement in the full-year earnings forecast. The annual dividend forecast
has been increased to ¥82 per share, maintaining the originally planned
payout ratio.
■ We aim to expand our investment in growth while also continuing dividend
increases to raise the dividend payout ratio to a level of 30% or higher assoon as possible.
(Yen)

82.0

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

18.3(18.8%)
03/2019

26.0(16.6%)
03/2020

62.0

28.5

40.0

(24.2%)(26.9%)

66.0(27.0%)(19.9%)(18.5%)
03/2021

03/2022

03/2023

03/2024 (Forecast) 03/2024 (Initial Plan)* Dividends are listed on a post-share split basis, which went into effect as of October 1, 2022.

27

Key Indicators
FY ended
03/2023
ActualCapital expenditures(Millions of yen)

R&D expenses(Millions of yen)

Depreciation(Millions of yen)Interest-bearing debt
(Millions of yen)

No. of employees

FY ending
03/2024
Forecast

FY ending
03/2024
Initial Plan

1,466

2,000

2,000

2,615

3,020

3,020

1,824

2,000

1,800

33,01931,00025,000

2,506

2,550

2,550
28

Contents

1. First-Half Results for Fiscal Year Ending March 2024
2. Full-Year Forecast for Fiscal Year Ending March 2024
3. Company Overview and Business Profile

29

Company Overview: Profile and Shareholder Composition■ Company profile
Company name

■ Major shareholders (top ten)

(As of September 30, 2023)

ORGANO CORPORATIONName of shareholder

Numberof shares
held(Thousands ofshares)Holdingratio

Head office

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

EstablishedMay 1, 1946

Capital¥8,225 million

Tosoh Corporation

20,37944.28

2,505 (consolidated)

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

4,030

8.76

Custody Bank of Japan, Ltd. (Trust Account)

2,319

5.04

KBC BANK NV – UCITS CLIENTS NON TREATY

902

1.96

DZ PRIVATBANK S.A. RE INVESTMENTFONDS

870

1.89

The Nomura Trust and Banking Co., Ltd. (Trust Account)

574

1.25

Mizuho Bank, Ltd.

464

1.01

STATE STREET BANK AND TRUST COMPANY 505223

397

0.86

OP CORPORATE BANK PLC-OP-CLEAN WATER FUND

379

0.83

BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)

377

0.82

No. of employees
Stock exchange listing

Tokyo Stock Exchange Prime Market■ Shareholder composition
Other 2.2%
Individuals 10.9%
Financial
institutions
17.8%

(%)

No. of shares issued:

46,359 thousand
sharesNo. of shareholders:

7,281

Foreign corporations, etc.
22.7%

Domestic
corporations
46.4%* The treasury shares (338 thousand shares) are excluded in the calculation of the holding ratio shown above.

30

Company Overview: Management Philosophy and Vision■ Management Philosophy
Organo serves as a valuable partner company by leveraging its leading-edge technologies cultivatedthrough long experience with water treatment, by contributing to the industries that create the future,and by playing a key role in 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
the creation 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 theway things were done yesterday, as a company where all employees are energetic and passionate
about their work.

■ Sustainability Policy
Together with its stakeholders, Organo aims to realize a sustainable society forthe future and improve our corporate value.

E
S

G

Leveraging its leading-edge technologies cultivated through long experience
with water treatment, Organo provides environmentally-friendly products andservices that contribute to water environment conservation and prevention of
global warming.*
We will respect human rights, diverse values, and individuality while promoting
the creation of a workplace where each and every employee can grow andflourish.

Representative Director
and President

Masayuki Yamada

We will carry out our corporate activities with integrity and fairness, emphasizing
dialogue and cooperation with all stakeholders.

*Leveraging its leading-edge technologies cultivated through long experience with water treatment refers to our pursuit of water treatment-related separationand purification, analysis, and engineering technologies, and our provision of optimal systems and services that meet the nee ds of society through a
combination of these technologies.

31

The Organo Group’s Business Structure
Performance Products Business Unit

Water Treatment Engineering Business Unit
｜Plant Division｜Water Treatment Chemicals Division

Pure and ultrapure water facilities
Wastewater treatment and recovery
facilities
Valuable material recovery facilities
Production processing-related facilities｜Sales by Segment｜Standard Water Treatment
Equipment and Filters Division
Pure and ultrapure water
systems
Water purification filters

Consolidated net sales¥132.4 billion｜Food Products Division(FYE March 2023)¥50.0 billion(45%)¥61.5 billion(55%)[Service Solutions][Plant]¥24.3
billion(22%)[GeneralIndustry]

Food additives andprocessing agents
Food ingredients｜Sales by Segment｜Sales by Market[Electronics Industry](15.7%)(84.3%)

Facilities maintenanceOperational support services andcomprehensive maintenance
Facility enhancements, renovation
and reconditioning
Contract water treatment¥75.4 billion(68%)¥20.8 billion¥111.6 billion｜Service Solution Division

Treatment chemicals for
wastewater, cooling water,
cleaning and RO membranes,
boiler waters, etc.

¥11.7 billion(10%)[Electric Power/Water
Supply and Sewage]¥8.0 billion(39%)¥7.0 billion(34%)[Water Treatment
Chemicals][Standard
Equipment/Filters]¥5.7 billion(27%)[Food Products]*Amounts represent sales for FYE March 2023, percentages represent share of total sales.

32

The Organo Group Network
Domestic Network
Iwaki Factory

Factory that assembles
large-scale water
treatment plant units

Domestic Sales andService Sites

Global Network
Tsukuba
Factory■ Southeast Asia

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

■ East Asia
China, Taiwan

World-leading ion
exchange resin refinery

R&D Center(Sagamihara)

Semiconductor production
share by region(2023; WSTS survey)
Europe 11%
United States

The company has established anationwide sales and service network.

■ North America

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

25%

Asia Pacific 55%

Japan9%Established a local subsidiary in
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.

33

Organo’s History
Development

GrowthEvolution

Expansion● Historical sales

1990’s~｜Ultrapure water
facilities for theelectronics industry

1980’s~｜Water treatment
facilities for
power plants

2000’s~｜Overseas development｜Strengthening ofService Solutions｜Full-scale launch ofcomprehensive service
solutions

1980

1990

■Indonesia (2013)■Taiwan (2005)■China (2003)

Founded 1946
｜Athermal water
distillation equipment

1970

America■(2021)

2005~

1970’s~｜Water supply and sewage facilities｜Refining facilities for sugar
1960’s~■Thailand (1989)
solutions, other｜Large-scale purewater equipment■Malaysia (1986)
for general industry

1960

2010’s~｜Semiconductor market expansion
Taiwan/China markets growth■Vietnam (2010)
2000

2010

2022

34

Contact
IR Group, 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.

35