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Consolidated Financial Results
for the Fiscal Year Ended March 31, 2021
<under Japanese GAAP>May 11, 2021
ORGANO CORPORATIONTokyo Stock Exchange
6368
https://www.organo.co.jp/english/
Masaki Uchikura, Representative Director and President
Minoru Ando, General Manager of Accounting Dept., Corporate Management andPlanning
TEL:+81-3-5635-5111
Scheduled date of ordinary general meeting of shareholders:June 29, 2021
Scheduled date to commence dividend payments:
June 30, 2021
Scheduled date to file annual securities report:
June 29, 2021
Preparation of supplementary material on financial results:
Yes
Holding of financial results presentation meeting:Yes (for institutional investors andanalysts)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended March 31, 2021
(from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Net sales(Percentages indicate year-on-year changes.)
Operating profit

Millions of yen% Millions of yen%
Fiscal year ended
March 31, 2021
100,638
4.3
9,579
(3.3)
March 31, 2020
96,515
4.6
9,908
51.1
Note:
Comprehensive income: Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

Basic earnings
per share

Diluted earnings
per share

Profit attributable toowners of parent

Ordinary profit
Millions of yen%

Millions of yen

%

9,900
(0.3)
9,929
51.9
¥7,711 million [9.7%]¥7,029 million [73.3%]

7,074
7,162

(1.2)
60.9

Return on equity

Ratio of ordinary
profit to total
assetsYen
Yen%
Fiscal year ended
March 31, 2021
616.72–
11.1
March 31, 2020
626.05–
12.4(Reference) Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2021
¥153 million
Fiscal year ended March 31, 2020¥170 million

Operating profit
ratio

%

9.1
9.8

%

9.5
10.3

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
Millions of yen
As ofMarch 31, 2021
115,01167,357
March 31, 2020
101,448
60,857(Reference) Equity: As of March 31, 2021
¥67,214 million
As of March 31, 2020
¥60,717 million

Equity-to-asset ratio

Net assets per share
%

58.4
59.9

Yen

5,856.25
5,301.26

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2021
March 31, 2020

Cash flows frominvesting activities

Millions of yen

Cash flows fromfinancing activities

Millions of yen(4,582)
8,553

Cash and cash
equivalents
at end of period

Millions of yen(1,261)(1,006)

Millions of yen

4,927(5,007)

12,804
13,772

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Yen

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
(Forecast)

Yen

Fiscalyear-end

Yen

Ratio of
Total cash
dividends Payout ratio dividends to(consolidated) net assets(annual)

Total

Yen

(consolidated)

Yen

Millions of
yen

%

%

–

47.00

–

57.00

104.00

1,196

16.6

2.1

–

52.00

–

62.00

114.00

1,311

18.5

2.0

–

57.00

–

57.00

114.00

20.1

3. 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 yenSix months ending
September 30, 2021
Fiscal year ending
March 31, 2022

Operating profit%

Millionsof yenProfit attributable toowners of parent

Ordinary profit%

Millionsof yen%Millionsof yenBasicearnings
per share%Yen

50,000

10.3

2,600

(18.3)

2,550(22.2)

1,500(27.9)

130.69103,000

2.3

8,250

(13.9)

8,150(17.7)

6,500

(8.1)

566.33

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

11,589,925 shares

As of March 31, 2020

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

112,618 shares

As of March 31, 2020

136,593 sharesc. Average number of shares outstanding during the period
For the fiscal year ended March 31, 2021

118,984 shares

For the fiscal year ended March 31, 2020

11,440,300 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.

[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2021
(from April 1, 2020 to March 31, 2021)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2021
March 31, 2020

Millions of yen

Operating profit% Millions of yen

72,66170,907

2.5
8.1

Basic earnings
per share
Fiscal year ended
March 31, 2021
March 31, 2020

6,311
6,808

Ordinary profit% Millions of yen

(7.3)
94.7

Diluted earnings
per share
Yen

512.56538.91

Yen

–
–

7,770
8,151

Profit% Millions of yen

(4.7)
77.7

5,879
6,165

%

(4.6)
93.8

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2021
March 31, 2020
(Reference) Equity:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

97,58285,65056,54751,743

57.9
60.4

4,926.90
4,517.80

As of March 31, 2021:
As of March 31, 2020:¥56,547 million¥51,743 million* Financial results reports are exempt from audit 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 “(4) Future outlook” in “1. Overview of operating results, etc.” on page 6 of the attached material forthe suppositions that form the assumptions for earnings forecasts and cautions concerning the use
thereof.

Attached Material

Index
1. Overview of operating results, etc. ......................................................................................................... 2(1) Overview of operating results for the fiscal year under review ....................................................... 2(2) Overview of financial position for the fiscal year under review ...................................................... 5(3) Overview of cash flows for the fiscal year under review .................................................................. 6(4) Future outlook...................................................................................................................................... 6
2. Basic policy regarding selection of accounting standards .................................................................... 7
3. Consolidated financial statements and significant notes thereto ......................................................... 8(1) Consolidated balance sheet ................................................................................................................ 8(2) Consolidated statement of income and consolidated statement of comprehensive income ......... 10
Consolidated statement of income................................................................................................... 10
Consolidated statement of comprehensive income ........................................................................ 11(3) Consolidated statement of changes in equity ................................................................................. 12(4) Consolidated statement of cash flows ............................................................................................. 14(5) Notes to consolidated financial statements ..................................................................................... 16
Notes on premise of going concern .................................................................................................. 16
Changes in presentation ................................................................................................................... 16
Additional information .................................................................................................................... 16
Segment information, etc. ................................................................................................................ 17
Per share information ...................................................................................................................... 20
Significant subsequent events .......................................................................................................... 21- 1 -1. Overview of operating results, etc.
(1) Overview of operating results for the fiscal year under review
During the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021), the global economy
has been in a state of significant turmoil following the global spread of COVID-19 with restrictions on
movement of people and economic activity in Japan and overseas. In the electronics field, which is theCompany’s main market, we maintained high-level production and investment in Japan and overseas,
increasing investment for increased production with the growth in semiconductor demand forsmartphones and data centers and increasing investment in cutting-edge fields, amid the full-fledged
friction over semiconductors between the United States and China. In addition, despite the electric
power/water supply and sewage fields trending firmly, difficult conditions continued due to factors suchas the ongoing trend to curb and delay capital investment in the general industrial field caused by COVID19 and the decline in sales of some products with the decline in customer production levels in the
Performance Products Business Unit.
Under these conditions, the Organo Group identified “expanding the electronics field,” “strengthening
the service solutions” and “creating new businesses” as key fields and aimed to enhance the system for
implementing remote operations amid the constraints on movements and business activities in Japan andoverseas. We introduced various communication tools and promoted the shift to digitalization in ourengineering and solutions services as well as various supervisory operations, and balanced preventing
the spread of COVID-19 with our business activities.
Consequently, although orders received were below the previous year, when there were large-scale orders,
net sales reached a record high of more than ¥100.0 billion due to steady progress in construction oflarge-scale projects in Japan and overseas. On the profit side, a high level was achieved that was only
second to the record high profit recorded in the previous fiscal year because of a decrease in selling,
general and administrative expenses focused on operating expenses such as travel expenses andtransportation expenses due to COVID-19 and various cost reduction measures on construction projects.
In addition, return on equity (ROE) also exceeded the initial plan.
(Millions of yen)75th term
Fiscal year ended
March 31, 2020

Category

Orders received
Carry-over backorder
Net sales
Operating profit
Operating profit ratio (%)
Ordinary profit
Profit attributable to owners ofparentReturn on equity (ROE) (%)

76th term(Fiscal year under review)
Fiscal year ended March 31, 2021

Year-on-year

Actual-toforecast

104,986
67,83796,515
9,908
10.3
9,929

Initial plan
100,000
67,837100,000
7,200
7.2
7,100

Actual result
94,563
61,871
100,638
9,579
9.5
9,900

(9.9)%(8.8)%
4.3%(3.3)%–(0.3)%(5.4)%(8.8)%
0.6%
33.1%
–
39.4%

7,162

4,700

7,074

(1.2)%

50.5%

12.4

7.5

11.1

–

–

Results by segment are as follows.
[Water Treatment Engineering Business Unit]
Net sales ratio

Orders received¥76,227 million (Down 11.9% year-on-year)

Net sales¥82,424 million (Up 5.8% year-on-year)

Operating profit¥8,466 million (Down 5.1% year-on-year)

81.9%

- 2 -

Major Business●Major Business and ProductsPlant Division
Pure and ultrapure waterproduction facilities
Industrial process water
treatment facilities
Wastewater treatment andrecovery facilities
Valuable material
recovery facilities
Production processingrelated facilities●Customers and Markets
Service Solutions
Division
Replacement ofexpendable items
MaintenanceOperational support
services
Renovation andreconditioning
Contract water treatment
Comprehensive
maintenance contracts

Electronics
industry
Semiconductors
Flat panel
display
Electronic parts

Electric power/
water supply
and sewage
Power plants
Water
purification
plantsSewagetreatment
plantsGeneralindustry
Pharmaceuticals,
cosmetics
Food andbeverage
Machinery andchemicals■Orders received
Orders received decreased 11.9% year on year to ¥76,227 million. In the electronics field, trends werefavorable in overseas markets with capital investment in Taiwan and China remaining active due tofactors such as friction over semiconductors between the United States and China, a global shortage ofsemiconductors, and competition in the development of cutting-edge semiconductors, but there was a
decline in the Japanese market in counter-reaction to the orders for large-scale projects in the previous
year. In addition, in the general industrial field, orders decreased because of the ongoing trend to curb or
delay capital investment in Japan and overseas due to COVID-19. The electric power/water supply andsewage fields maintained around the same levels as the previous fiscal year.
■Net sales
Net sales increased 5.8% year on year to ¥82,424 million. In the electronics field, in addition to growthin sales in the Plant Division due to steady progress in construction of large-scale projects in Japan thatwere ordered in the previous fiscal year and the continuation of large-scale capital investment in overseas
markets such as Taiwan and China, the Service Solutions Division was also firm due to high productionlevels. In the general industrial field, steady progress was made on construction projects that had been
carried-over from the order backlog, but sales also decreased due to the decrease in orders. The electric
power/water supply and sewage fields maintained around the same levels as the previous fiscal year,
similar to orders.
■Operating profit
Operating profit decreased 5.1% year on year to ¥8,466 million. Although selling, general andadministrative expenses such as operating expenses declined while net sales were up, this was largely
because the gross profit margin was lower in counter-reaction to the concentration of comparatively
profitable projects and projects with prominent cost reduction effects in the previous fiscal year.

- 3 -Water Treatment Engineering Business Unit
Orders by field

Water Treatment Engineering Business Unit
Net sales by field(Billions of yen)(Billions of yen)

86.4

82.4

76.2

77.9

10.5

11.2

23.0

24.6

48.1

42.5

41.9

47.6

75th term

76th term(Fiscal year ended
March 31, 2021)

75th term

76th term(Fiscal year ended
March 31, 2021)

11.1

10.6

27.1

Electronics industry

General industry

Electric power/
water supply
and sewage

24.1

Electronics industry

General industry

Electric power/
water supply
and sewage

Water Treatment Engineering Business Unit
Analysis of causes of changes in operating profit(Billions of yen)

8.9

Impact ofincreased
sales
+ 1.2

Decline ofprofit margin- 2.2

Decreaseof SGA
expenses+ 0.5

75th term

8.4

76th term(Fiscal year
ended
March 31,2021)

[Performance Products Business Unit]
Net sales ratio

Orders received¥18,336 million (Down 0.9% year-on-year)

Net sales¥18,213 million (Down 2.0% year-on-year)

Operating profit¥1,113 million (Up 12.8% year-on-year)

18.1%
Major Business●Major Business and Products
Water Treatment Chemicals
Division
RO membrane protection
chemicals, Wastewater treatment
chemicals, Cooling water treatment
chemicals, Cleaning chemicals,
Boilers water treatment chemicals●Customers and Markets
Various manufacturing industries
Buildings and commercial facilities

Standard Water Treatment Equipment
and Filters Division
Pure and ultrapure water production
systems
Water purification filters●Customers and Markets
Medical institutions, research
institutions
Various manufacturing industries
Food and beverage, convenience
stores- 4 -Food Products Division
Food ingredients
Food processing agents●Customers and Markets
Food factories, food processing
industry
Beverage manufacturing
Nursing care food, health food
manufacturing

■Orders received/Net sales
Orders received decreased 0.9% year on year to ¥18,336 million and net sales decreased 2.0% year on
year to ¥18,213 million.
The Water Treatment Chemicals Division was affected by the decrease in sales to general industry suchas the automotive industry due to lower production levels and delayed development of overseas markets
such as Taiwan and China due to COVID-19, but sales of various agents for the electronics industry andOrplus® slightly acidic electrolyzed water for disinfecting and deodorizing performed favorably, andnet sales decreased slightly year on year.
The Standard Water Treatment Equipment and Filters Division saw a decline in sales such as inspection
grade pure water equipment for medical institutions and water purification filters for beverage dispensers,
but sales of pure and ultrapure water equipment for laboratory use such as in research institutions were
firm, securing net sales around the same level as the previous year.
The Food Products Division was affected by the decrease in sales to restaurants, but efforts were madewith products for household food products including products catering to stay-at-home consumption,and net sales were only down slightly year on year.
■Operating profit
Operating profit increased 12.8% year on year to ¥1,113 million. Net sales for the Water Treatment
Chemicals Division and the Food Products Division declined, but the profit margin improved due todecreases in areas such as indirect expenses in the manufacturing division and operating expenses.
Performance Products Business Unit
Analysis of causes of changes in operating profit

Performance Products Business Unit
Net sales by field(Billions of yen)
18.5

18.2

5.1

5.0

6.2

(Billions of yen)

6.2

0.9
7.1

6.9

75th term

76th term(Fiscal year ended
March 31, 2021)

Impact ofdecreased
sales
- 0.1

75th term

Food productsStandard water treatment equipment and filters
Water treatment chemicals

Improveme
nt of profit
margin+ 0.1

Decreaseof SGA
expenses
+ 0.0

1.1

76th term(Fiscal year
ended March
31, 2021)(2) Overview of financial position for the fiscal year under review
Current assets
Current assets as of March 31, 2021 amounted to ¥89,702 million, an increase of ¥13,623 million fromthe previous fiscal year end. This was mainly due to an increase of ¥12,734 million in notes and accounts
receivable – trade and ¥3,476 million in work in process, despite a decline of ¥1,979 million in
investments in leases.
Non-current assets
Non-current assets as of March 31, 2021 amounted to ¥25,308 million, a decrease of ¥60 million fromthe previous fiscal year end. This was mainly due to a decline of ¥364 million in buildings and structures,net, despite an increase of ¥357 million in investment securities.
Current liabilities
Current liabilities as of March 31, 2021 amounted to ¥40,749 million, an increase of ¥8,508 million fromthe previous fiscal year end. This was mainly due to an increase of ¥3,765 million in trade payables and¥6,865 million in short-term borrowings, despite a decline of ¥2,057 million in other current liabilities.
- 5 -Non-current liabilities
Non-current liabilities as of March 31, 2021 amounted to ¥6,905 million, a decline of ¥1,444 million
from the previous fiscal year end. This was mainly due to a decline of ¥600 million in long-termborrowings and a decline of ¥833 million in retirement benefit liability.
Net Assets
Net assets as of March 31, 2021 amounted to ¥67,357 million, an increase of ¥6,499 million from theprevious fiscal year end. This was mainly due to an increase of ¥5,820 million in retained earnings
resulting from the recording of profit attributable to owners of parent.
(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (hereinafter, “cash”) as of March 31, 2021 decreased by ¥968 million fromthe previous fiscal year end to ¥12,804 million.
Cash flows from operating activities
Net cash used in operating activities was ¥4,582 million. This was mainly because there was a decline in
cash due to an increase of ¥12,728 million in trade receivables, despite an increase of ¥9,695 million in
profit before income taxes. (Net cash of ¥8,553 million was provided in the fiscal year ended March 31,
2020.)Cash flows from investing activities
Net cash used in investing activities was ¥1,261 million. This was mainly because there was a decreasein cash due to purchase of property, plant and equipment of ¥965 million and purchase of intangible
assets of ¥289 million. (Net cash of ¥1,006 million was used in the fiscal year ended March 31, 2020.)
Cash flows from financing activities
Net cash provided by financing activities was ¥4,927 million. This was mainly because there was anincrease in cash due to an increase of ¥7,075 million in short-term borrowings. (Net cash of ¥5,007
million was used in the fiscal year ended March 31, 2020.)(4) Future outlook
In terms of the future outlook, we anticipate that periods of disparity between fields with good and bad
conditions will continue. In the electronics field, we forecast conditions to remain vibrant with active
capital investment expected to continue in Taiwan and China, while there are also plans for large-scale
capital investment by major customers in Japan. However, in the general industrial field, which issignificantly affected by COVID-19, there are concerns that capital investment will remain stagnant inJapan and overseas given the inability to predict when the spread of infection will be contained.
Regarding our financial results outlook for the fiscal year ending March 31, 2022, we are planning fororders received of ¥100,000 million (up 5.7% year on year), net sales of ¥103,000 million (up 2.3%),
operating profit of ¥8,250 million (down 13.9%), ordinary profit of ¥8,150 million (down 17.7%), andprofit attributable to owners of parent of ¥6,500 million (down 8,1%).
Orders received and net sales are forecast to be at high levels due to the large-scale projects that havebeen carried over from order backlog in addition to the forecast multiple large-scale capital investments
associated with semiconductors in Japan and overseas in the electronics field. On the other hand, on the
profit side, although selling, general and administrative expenses significantly decreased from theprevious fiscal year due to effects such as restrictions on activities associated with COVID-19, they are
forecast to increase with the expansion of investment in research and development, strengthening ofoverseas engineering structure and acceleration of investment for digitalization, so profit is forecast to
decline. However, initiatives aimed at profit levels of around the same as the previous year are being
implemented such as plans to improve the profit margin through various cost reduction measures on
construction projects that are in progress.

- 6 -(Millions of yen, %)Category
Orders received
Carry-over backorder
Net sales
Operating profit
Operating profit ratio (%)
Ordinary profit
Profit attributable to owners of parent
Return on equity (ROE) (%)

Fiscal year ended
March 31, 2021
94,563
61,871
100,638
9,579
9.5%
9,900
7,074
11.1

Fiscal year ending
March 31, 2022
Initial plan
100,000
58,871103,000
8,250
8.0%
8,150
6,500
9.3

Year on year
5.7%
(4.8)%
2.3%(13.9)%(17.7)%(8.1)%-

2. Basic policy regarding selection of accounting standards
The Organo Group will prepare its consolidated financial statements in accordance with Japanese GAAP
for the time being.
Meanwhile, we will remain attentive to developments in Japan and overseas with respect to theInternational Financial Reporting Standards (IFRS).

- 7 -3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2020

As of March 31, 2021

13,77236,78312,80449,517

1,590

1,598

11,752
5,710
2,728
1,392
2,448
(98)
76,078

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

17,909(12,562)
5,347
5,697
(4,974)722
12,28498
5,088(4,245)842
19,296
1,113

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

1,553
3,037
780
(411)
4,959
25,369101,448

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 8 -(Millions of yen)
As of March 31, 2020

As of March 31, 2021

14,381
–
7,644
1,959
1,543
1,339
324
64

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

105

109

10
4,866
32,240–2,809
40,749

2,095
9
6,153
91
8,349
40,590

1,495
11
5,319
79
6,905
47,6548,225
7,508
46,081(537)
61,2778,225
7,508
51,902(495)
67,139

143

301

(178)
(525)
(560)
140
60,857
101,448

(201)
(25)
74
143
67,357
115,011

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Advances received
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Provision for share awards for directors (andother officers)
Other provisions
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
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- 9 -(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income

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
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sales of right to use facilities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on abandonment of non-current assets
Loss on valuation of investment securities
Loss on sales of right to use facilities
Loss on valuation of right to use facilities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)
96,515
69,232
27,282
17,374
9,908- 10 -(Millions of yen)
Fiscal year ended
March 31, 2021
(From April 1, 2020 toMarch 31, 2021)
100,638
74,311
26,326
16,746
9,579

44
28
–
81

27
27
39
132

170

153

59
383

74
454

136
41
78
105
362
9,929

117
–
–
16
133
9,900

5
4
0
9

7
14
–
22

–
39
49
–
–
88
9,850
3,014
(336)
2,678
7,172
10
7,162

0
161
59
4
0
227
9,695
2,839
(230)
2,608
7,086
12
7,074

Consolidated statement of comprehensive income

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

Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)
7,172- 11 -(Millions of yen)
Fiscal year ended
March 31, 2021
(From April 1, 2020 toMarch 31, 2021)
7,086

(129)

155

0
20

–
(34)

(32)

500

(1)

3

(143)
7,029

624
7,711

7,015

7,709

14

2

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
Balance at
beginning of period

Retainedearnings

Capital surplus

8,225

7,508

Treasury shares

39,967

(629)

Total
shareholders’equity55,071

Changes during
periodDividends ofsurplus(1,047)(1,047)

Profit attributableto owners ofparent

7,162

7,162

Purchase oftreasury shares
Disposal oftreasury shares

(8)

(8)

(0)

100

100

Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period

–

–

6,114

91

6,206

8,225

7,508

46,081(537)

61,277

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at
beginning of period273

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

(0)

(193)

RemeasureTotal
ments ofaccumulated
definedotherbenefitcomprehenplans
sive income
(494)

(414)

Noncontrollinginterests

Total net
assets138

54,795

Changes during
periodDividends ofsurplus(1,047)

Profit attributableto owners ofparent

7,162

Purchase oftreasury shares(8)

Disposal oftreasury shares

100

Net changes in
items other thanshareholders’equity

(130)

0

15

(31)

(146)

2

(144)

Total changes
during period

(130)

0

15

(31)

(146)

2

6,061

Balance at end of
period

143

–

(178)

(525)

(560)

140

60,857- 12 -

Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
Balance at
beginning of period

Retainedearnings

Capital surplus

8,225

7,508

Treasury shares

46,081

Total
shareholders’equity(537)

61,277

Changes during
periodDividends ofsurplus(1,254)(1,254)

Profit attributableto owners ofparent

7,074

7,074

Purchase oftreasury shares
Disposal oftreasury shares

0

(65)

(65)

107

107

Net changes in
items other thanshareholders’equityTotal changes
during period
Balance at end of
period

–

0

5,820

41

5,861

8,225

7,508

51,902(495)

67,139

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at
beginning of period

143

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

(178)

(525)

Total
accumulated Non-controlling Total net assetsinterests
othercomprehensive
income(560)

140

60,857

Changes during
periodDividends ofsurplus(1,254)

Profit attributableto owners ofparent

7,074

Purchase oftreasury shares(65)

Disposal oftreasury shares107

Net changes in
items other thanshareholders’equity

158

(23)

499

635

2

637

Total changes
during period

158

(23)

499

635

2

6,499

Balance at end of
period

301

(201)

(25)

74

143

67,357- 13 -

(4) Consolidated statement of cash flows
Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Interest and dividend income
Insurance claim income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on sale of non-current assets
Loss on abandonment of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sale of right to use facilities
Loss on valuation of right to use facilities
Decrease (increase) in trade receivables
Decrease (increase) in investments in leases
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Compensation for damage paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Proceeds from sale of right to use facilities
Other, net
Net cash provided by (used in) investing activities- 14 -(Millions of yen)
Fiscal year ended
March 31, 2021
(From April 1, 2020
to March 31, 2021)

9,850
1,189
348
(107)
(72)
(81)
136
96

9,695
1,212
105
(104)
(54)
(132)
117
19

(170)

(153)

(5)
39
(4)
49
(0)
–
1,873
1,820
(967)
(4,165)
1,407
11,236
84
(136)
81
(91)
(2,621)
8,553

(6)
161
(14)
59
4
0
(12,728)
1,979(3,047)
3,752(2,874)(2,008)
66
(110)
132
(6)
(2,654)(4,582)

(781)

(965)

21

74

(187)
(13)
5
(250)
200
0
(1)
(1,006)

(289)
(58)
25
(250)
250
0
(47)
(1,261)Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -(Millions of yen)
Fiscal year ended
March 31, 2021
(From April 1, 2020
to March 31, 2021)(5,411)3,000(1,505)(8)(1,047)(11)(22)(5,007)

7,075
–
(800)
(65)
(1,254)
–
(27)
4,927

(43)

(52)

2,495
11,276
13,772(968)
13,772
12,804

(5) Notes to consolidated financial statements
Notes on premise of going concern
No items to report
Changes in presentation
Consolidated statement of income“Compensation for damage,” which had been presented separately under “non-operating expenses” inthe previous fiscal year, is below 10% of total non-operating expenses and is included in “other”
beginning in the fiscal year under review. The consolidated financial statements for the previous fiscal
year have been reclassified to reflect this change in presentation.
Consequently, ¥91 million in “compensation for damage” and ¥13 million in “other” that were presented
in the consolidated statement of income for the previous fiscal year have been reclassified as ¥105 million
in “other.”Consolidated statement of cash flows“Compensation for damage,” which had been presented separately above the subtotal under “cash flows
from operating activities” in the previous fiscal year, is to be included in “other” beginning in the fiscal
year under review because it is no longer material. The consolidated financial statements for the previous
fiscal year have been reclassified to reflect this change in presentation.
Consequently, ¥91 million in “compensation for damage” and ¥1,315 million in “other” that were
presented above the subtotal under “cash flows from operating activities” in the consolidated statementof cash flows for the previous fiscal year have been reclassified as ¥1,407 million in “other.”
Additional information
Impact arising due to the proliferation of COVID-19
Looking forward, it appears that some time will be required before the contagious period of COVID-19
ends and the global economy fully recovers from the pandemic. However, reflecting on the current status
of investment projects, operating level at customer factories, and the progress forecasts for orders
received, the Company is making accounting estimates based on the assumption that the impact of
COVID-19 on the Organo Group will remain limited.
However, the assumptions mentioned above contain a high degree of uncertainty, and depending on thelevel of increase in the number of COVID-19 cases and the impact of that on the economy, COVID-19
may have a material impact on the consolidated financial statements in the next fiscal year and beyond.

- 16 -

Segment information, etc.
[Segment information]
1. Overview of reportable segments
The reportable segments of the Company are the business units for which the Company is able to obtainrespective financial information separately in order for the Board of Directors to conduct periodic review
to determine distribution of management resources and evaluate their business results.
Based on a system of separate business units according to the product and service, the Company
formulates comprehensive strategies for Japan and overseas for products and services handled by eachbusiness unit, etc. and carries out its business activities.
Therefore, the Company is comprised of product and service segments based on the business units, etc.,
and the two reportable segments, Water Treatment Engineering Business Unit and Performance Products
Business Unit, handle products with similar qualities and economic characteristics and services withsimilar contents.
Each reportable segment and the major products and business in the segments are as follows.
Reportable Segment

Major Products and Business

Plant Division

Pure and ultrapure water production facilities,
Industrial process water treatment facilities,
Wastewater treatment and wastewater recovery
facilities, Valuable material recovery facilities,
Production processing-related facilities

Service Solutions Division

Replacement of expendable items,
Maintenance, Operational support services,
Renovation/Reconditioning, Contract water
treatment, Comprehensive maintenancecontracts

Water Treatment Chemicals
Division

RO membrane protection chemicals,
Wastewater treatment chemicals, Cooling water
treatment chemicals, Cleaning chemicals,
Boiler water treatment chemicals

Standard Water Treatment
Equipment and Filters
Division

Pure and ultrapure water production facilities,
Water purification filters

Food Products Division

Food ingredients, Food processing agents

Water Treatment Engineering
Business Unit

Performance Products Business Unit

2. Calculation of net sales, profit (loss), assets, liabilities, and other items by reportable segment
The accounting methods used for reportable segments are the same as the accounting adopted for the
preparation of consolidated financial statements.
Intersegment sales or transfers are determined by referencing general trading conditions in considerationof market prices, etc.
Moreover, 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.

- 17 -

3. Net sales, profit (loss), assets, liabilities, and other items by reportable segment
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

77,9210

18,593336

Total

Adjustment(Note 1)

Reported inconsolidated
financialstatements

96,515
336

–
(336)

96,515–

Total

77,922

18,92996,852(336)

96,515

Segment profit

8,921

986

9,908

–

9,908

Segment assets

78,347

18,42096,767

4,680

101,448

Other items
Depreciation
888
301
1,189
–
1,189
Amortization of goodwill
–
2
2
–
2
Investment in entities
accounted for using equity
819
–
819
–
819
methodIncrease in property, plant andequipment and intangible
913
241
1,154
–
1,154
assets
Notes: 1.
The adjustments of ¥4,680 million for segment assets are mainly deferred tax assets and long-term investment
funds (investment securities).
2.
“Depreciation” and “Increase in property, plant and equipment and intangible assets” include amortization ofand an increase in long-term prepaid expenses.

Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

82,4240

18,213342

Total

Adjustment(Note 1)

Reported inconsolidated
financialstatements

100,638
342

–
(342)

100,638–

Total

82,425

18,555100,981(342)

100,638

Segment profit

8,466

1,113

9,579

–

9,579

Segment assets

91,96817,415

109,383

5,627

115,011

Other items
Depreciation
924
287
1,212
–
1,212
Investment in entities
accounted for using equity
964
–
964
–
964
methodIncrease in property, plant andequipment and intangible
791
223
1,015
–
1,015
assets
Notes: 1.
The adjustments of ¥5,627 million for segment assets are mainly deferred tax assets and long-term investment
funds (investment securities).
2.
“Depreciation” and “Increase in property, plant and equipment and intangible assets” include amortization ofand an increase in long-term prepaid expenses.

[Related information]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
1. Information by product and service
This information has been omitted, as identical information is disclosed in segment information.
- 18 -

2. Information by region(1) Net sales
Japan

Taiwan74,992

11,502China

Southeast Asia

4,421

(Millions of yen)
Total

Other

5,112

486

96,515

Note: Net sales are classified into countries or regions based on customers’ location.
(2) Property, plant and equipment
This information has been omitted as the amount of property, plant and equipment located in Japanis more than 90% of property, plant and equipment in the consolidated balance sheet.
3. Information by major customer
Customer name(Millions of yen)
Related segment

Net sales

Sony Semiconductor Manufacturing
Corporation

Water Treatment Engineering Business
Unit

11,049Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
1. Information by product and service
This information has been omitted, as identical information is disclosed in segment information.
2. Information by region(1) Net sales
Japan

Taiwan75,676

16,083China

Southeast Asia

5,251(Millions of yen)
Total

Other

3,311

316

100,638

Note: Net sales are classified into countries or regions based on customers’ location.
(2) Property, plant and equipment
This information has been omitted as the amount of property, plant and equipment located in Japanis more than 90% of property, plant and equipment in the consolidated balance sheet.
3. Information by major customer
Customer name(Millions of yen)
Related segment

Net sales

Sony Semiconductor Manufacturing
Corporation

12,371

Water Treatment Engineering Business Unit

Taiwan Semiconductor Manufacturing
Company, Ltd.

10,820

Water Treatment Engineering Business Unit

[Information relating to impairment loss of non-current assets by each reportable segment]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
No items to report
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
No items to report- 19 -

[Information relating to amortization of goodwill and unamortized balance by each reportable segment]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Depreciation during the period

–

2

2

–

2

Balance at end of period

–

–

–

–

–

Elimination or
corporate

Total

Total

Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
No items to report[Information relating to gain on bargain purchase by each reportable segment]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
No items to report
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
No items to report
Per share information
Fiscal year ended March 31, 2020
(From April 1, 2019 to March 31,
2020)
Net assets per share
Basic earnings per share

Notes: 1.
2.

3.

Fiscal year ended March 31, 2021
(From April 1, 2020 to March 31,
2021)¥5,301.26¥5,856.25¥626.05¥616.72

Diluted earnings per share is not presented since no potential shares exist.
When calculating net assets per share in the fiscal year ended March 31, 2021, common sharesof the Company held by the Officer Share Delivery Trust have been included in treasury shares
excluded from the total number of issued shares at the end of the period (53 thousand shares atthe end of the fiscal year ended March 31, 2020; 29 thousand shares at the end of the fiscal year
ended March 31, 2021). Moreover, when calculating basic earnings per share, they have been
included in treasury shares excluded from the calculation of the average number of shares
outstanding during the period (67 thousand shares in the fiscal year ended March 31, 2020; 35
thousand shares in the fiscal year ended March 31, 2021).
The basis for calculation of basic earnings per share is as follows.
Fiscal year ended March 31, 2020
(From April 1, 2019 to March 31,
2020)

Fiscal year ended March 31, 2021
(From April 1, 2020 to March 31,
2021)

Profit attributable to owners of parent(millions of yen)

7,162

7,074

Amounts not attributable to commonshareholders (millions of yen)––

Profit attributable to owners of parent
related to common shares (millions of
yen)

7,162

7,074

Average number of common shares
outstanding during the period(thousands of shares)

11,44011,470- 20 -

4.

The basis for calculation of net assets per share is as follows.
As of March 31, 2020

As of March 31, 2021

Total net assets (millions of yen)

60,85767,357

Amount subtracted from total net
assets (millions of yen)

140

143

[Of which non-controlling interests(millions of yen)]

[140]

[143]

Net assets at the end of period
attributable to common share(millions of yen)

60,717

67,214

Number of common shares at the endof period used to calculate net assets
per share (thousands of shares)

11,453

11,477Significant subsequent events
No items to report- 21 -