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

Consolidated Financial Results for the First Three Months of
the Fiscal Year Ending March 31, 2022
<under Japanese GAAP>
July 30, 2021
ORGANO CORPORATIONTokyo Stock Exchange
6368
https://www.organo.co.jp/english/
Masaki Uchikura, Representative Director and President
Shigeru Sonobe, General Manager of Accounting Dept., Corporate Management andPlanning
TEL:+81-3-5635-5111
Scheduled date to file quarterly securities report:
August 6, 2021
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results presentation meeting:
None

Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the first three months of the fiscal year ending March 31, 2022
(from April 1, 2021 to June 30, 2021)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen% Millions of yen%
Three months ended
June 30, 2021
22,307
13.9
1,338
294.5
June 30, 2020
19,585(2.8)
339(74.0)
Note:
Comprehensive income: Three months ended June 30, 2021
Three months ended June 30, 2020

Basic earnings
per share
Three months ended
June 30, 2021
June 30, 2020

Profit attributable toowners of parent

Ordinary profit
Millions of yen%

Millions of yen

1,630
326.5
382
(72.0)¥1,242 million [–%]¥(203) million [–%]

818
(58)

%

–
–

Diluted earnings
per share
Yen

71.30
(5.12)Yen––(2) Consolidated financial position
Total assets
As ofJune 30, 2021
March 31, 2021
(Reference) Equity: As of June 30, 2021

Net assets

Millions of yen

110,707
115,011¥67,761 million

Equity-to-asset ratio

Millions of yen

67,91467,357
As of March 31, 2021

%

61.2
58.4
¥67,214 million

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

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

Yen–

Fiscal year-end

Yen

52.00

Total

Yen

–

Yen

62.00

114.0057.00

114.00–Fiscal year ending
March 31, 2022
57.00–
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

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 yenOperating profit%

Millionsof yenProfit attributable toowners of parent

Ordinary profit%

Millionsof yenSix months ending
50,00010.3
2,600(18.3)
2,550
September 30, 2021
Fiscal year ending
103,000
2.3
8,250(13.9)
8,150
March 31, 2022
Note:
Revisions to the earnings forecasts most recently announced: None%

Millionsof yenBasicearnings
per share%Yen(22.2)

1,500(27.9)

130.70(17.7)

6,500

(8.1)

566.35

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

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

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

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

(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2021

11,589,925 shares

As of March 31, 2021

11,589,925 sharesb. Number of treasury shares at the end of the period
As of June 30, 2021

112,945 shares

As of March 31, 2021

112,618 sharesc. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
For the three months ended June 30, 2021

11,477,081 shares

For the three months ended June 30, 2020

11,453,311 shares

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

* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, any statements herein do not constitute assurances regarding actual results by theCompany. Actual business and other results may differ substantially due to various factors. Please referto “(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements” in“1. Qualitative information regarding financial results for the first three months” on page 2 of theattached material for the suppositions that form the assumptions for earnings forecasts and cautions
concerning the use thereof.

Attached Material

Index
1. Qualitative information regarding financial results for the first three months.................................. 2(1) Explanation regarding operating results .......................................................................................... 2(2) Explanation regarding financial position ......................................................................................... 3(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements 3
2. Quarterly consolidated financial statements and significant notes thereto ........................................ 4(1) Consolidated balance sheet ................................................................................................................ 4(2) Consolidated statement of income and consolidated statement of comprehensive income.......... 6
Consolidated statement of income (cumulative) .............................................................................. 6
Consolidated statement of comprehensive income (cumulative) .................................................... 7(3) Notes to quarterly consolidated financial statements ...................................................................... 8
Notes on premise of going concern .................................................................................................... 8
Notes on substantial changes in the amount of shareholders’ equity ............................................. 8
Changes in significant subsidiaries during the period .................................................................... 8
Application of special accounting for preparing the quarterly consolidated financial statements.............................................................................................................................................................. 8
Changes in accounting policies .......................................................................................................... 8
Additional information ...................................................................................................................... 9
Segment information, etc. ................................................................................................................ 10- 1 -1. Qualitative information regarding financial results for the first three months(1) Explanation regarding operating results
During the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021), high levels of
production and investment persisted in the electronics industry, the Organo Group’s main market, amida scenario of progress being made in restructuring supply chains for domestic production ofsemiconductors as the shortage of semiconductor supply intensified worldwide. On the other hand, in thegeneral industrial field we continued to encounter a trend of companies curbing and delaying major
capital investment, despite having experienced recovery in maintenance and sales of performance
products relative to the same period of the previous fiscal year. In addition, the electric power/watersupply and sewage fields trended firmly on the whole.
Under these conditions, the Organo Group has been focusing its efforts on gaining and delivering largescale orders in the semiconductor markets of Japan, Taiwan, and China, where investment remains active,
while also moving forward with initiatives taken to streamline operations and strengthen the delivery
framework. To such ends, we have been promoting a shift to digitalization of engineering operations
largely by developing various tools and databases, and have also established a global engineering center(GEC) in Vietnam.
As a result, in the Group’s financial results for the three months ended June 30, 2021, orders received
increased by 37.7% year on year to ¥37,256 million, net sales increased by 13.9% year on year to ¥22,307
million, and our carry-over balance for order backlog as of June 30, 2021 was up 1.6% to ¥76,194 million.
On the profit side, operating profit increased by 294.5% to ¥1,338 million, ordinary profit increased by
326.5% to ¥1,630 million, and profit attributable to owners of parent was ¥818 million (compared withloss attributable to owners of parent of ¥58 million in the same period of the previous fiscal year).

Results by segment are as follows.
[Water Treatment Engineering Business Unit]■Orders received
Orders received increased 43.8% year on year to ¥32,453 million. In the electronics field, orders received
benefitted from persistently active capital investment, largely amid factors that include: decisions to
install large wastewater recovery facilities for semiconductor plants in Japan; high levels of investment
in cutting-edge semiconductors in Taiwan, and; continued orders for semiconductor projects particularly
for automotive applications in China. In addition, in the general industrial field, orders received heldstrong in the Service Solutions Division particularly with respect to maintenance, and despite having
encountered a lull in large-scale capital investment. In the electric power/water supply and sewage fields,
orders received increased relative to the same period of the previous fiscal year as a result of large-scaleorders involving electric power.
■Net sales
Net sales increased 16.0% year on year to ¥17,691 million. In the electronics field, net sales increased asa result of having gained more orders in Taiwan, China and elsewhere overseas, in addition to a situation
where steady progress was made in work on major projects in Japan for which orders were received up
until the previous fiscal year. In addition, net sales in the general industrial field and the electric
power/water supply and sewage fields remained largely unchanged from the previous fiscal year, due tobusiness mainly involving domestic solution projects.
■Operating profit
Operating profit increased 386.3% year on year to ¥977 million. Operating profit was affected by anincrease in the gross profit margin largely as a result of the Company collecting additional funds andimplementing cost reduction measures with respect to construction projects both in Japan and overseas,in addition to an increase in sales mainly in the electronics field. Moreover, selling, general andadministrative expenses increased relative to the same period of the previous fiscal year, yet remain below
plan levels at this point in time.

- 2 -[Performance Products Business Unit]■Orders received/Net sales
Orders received increased 6.9% year on year to ¥4,803 million and net sales increased 6.7% year on yearto ¥4,616 million. In the Water Treatment Chemicals Division, results exceeded those of the same periodof the previous fiscal year due to recovery in overseas, automotive-related and other such fields, inaddition to strong performance in sales to the electronics industry where active production and investment
persists. The Standard Water Treatment Equipment and Filters Division encountered a recovery in salesof water purification filters for maintenance, particularly with respect to various types of beverage
dispensers and plants, in addition to sales of small-scale pure water production equipment for research
institutions, medical institutions and other such entities in Japan and China. In the Food Products Division,
results remained largely unchanged from the previous fiscal year due to recovery in sales of products forready-to-eat meals such as take-out side dishes and products for the restaurant industry, and despite lower
sales in the field of household food products, which expanded significantly in the previous year.
■Operating profit
Operating profit increased 161.0% year on year to ¥360 million. In the Water Treatment Chemicals
Division and the Standard Water Treatment Equipment and Filters Division, operating profit was affectedby an increase in the gross profit margin brought about by an increase in sales of products with relatively
high added-value, in addition to a recovery in sales.
(2) Explanation regarding financial position
Assets, liabilities and net assets
AssetsAssets as of June 30, 2021 amounted to ¥110,707 million, a decrease of ¥4,304 million from the previous
fiscal year end. This was mainly due to a decline of ¥2,763 million in cash and deposits and a decline of¥872 million in other current assets.
Liabilities
Liabilities as of June 30, 2021 amounted to ¥42,792 million, a decrease of ¥4,861 million from theprevious fiscal year end. This was mainly due to a decline of ¥2,904 million in trade payables and a
decline of ¥1,397 million in income taxes payable.
Net Assets
Net assets as of June 30, 2021 amounted to ¥67,914 million, an increase of ¥557 million from the previous
fiscal year end. This was mainly due to an increase of ¥375 million in foreign currency translation
adjustment.

(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements
In terms of the future outlook, the first half and full year consolidated earnings forecasts for the fiscal
year ending March 31, 2022, released on May 11, 2021, remain unchanged.
Under the prevailing circumstances, there is a possibility that proliferation of COVID-19 variants or othersuch developments could affect customer investment and production schedules. Nevertheless, as in our
initial projection, we expect to generate orders with respect to semiconductor investment projects inJapan and overseas in the electronics field, and we furthermore expect to generate sales due to progressachieved in work on large-scale projects carried-over from the order backlog. On the profit side, we aim
to achieve profits at the same level as those in the previous fiscal year in excess of initial plans, byattaining a higher construction project profit margin, particularly through various cost reduction measures.

- 3 -2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Investments in leases
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 4 -As of June 30, 2021

12,80449,517

10,041––49,084

1,598

2,013

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

9,268
5,503
5,349
1,217
2,299
(37)
84,741

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

17,901(12,909)
4,992
5,823
(5,047)775
12,283
743
5,184(4,460)723
19,518
1,086

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

1,768
302
2,952
739
(401)
5,361
25,966
110,707

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Advances received
Contract liabilities
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Provision for share awards for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 5 -As of June 30, 2021

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

10,8104,431
13,957
742
–
1,466
576
252
42

109

138

2,809
40,7493,511
35,930

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

1,200
12
5,571
78
6,862
42,792

8,225
7,508
51,902(495)
67,1398,225
7,508
52,055(498)
67,290

301

306

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

173
(9)
470
153
67,914
110,707(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income (cumulative)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance claim income
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
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
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Three months ended
June 30, 2020
(From April 1, 2020 toJune 30, 2020)
19,585
15,315
4,270
3,930
339

- 6 -

(Millions of yen)Three months ended
June 30, 2021
(From April 1, 2021 toJune 30, 2021)
22,307
16,734
5,573
4,234
1,338

5
13
–
96

6
15
259
1

–

17

8
124

19
320

22
31

25
–

25

–

1
81
382

2
27
1,630

2
2

–
–

0
–
0
0
383
437
(54)
4
(58)

3
0
–
4
1,626
805
820
2
818

Consolidated statement of comprehensive income (cumulative)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
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

Three months ended
June 30, 2020
(From April 1, 2020 toJune 30, 2020)
(54)

- 7 -

(Millions of yen)Three months ended
June 30, 2021
(From April 1, 2021 toJune 30, 2021)
820

6

6

(183)

400

27

16

0

(1)

(149)
(203)

421
1,242

(186)

1,232

(16)

10

(3) Notes to quarterly consolidated financial statements
Notes on premise of going concern
No items to report
Notes on substantial changes in the amount of shareholders’ equity
No items to report
Changes in significant subsidiaries during the period
No items to report
Effective from the first quarter of the fiscal year ending March 31, 2022, Organo (Vietnam) Co., Ltd. has
been included in the scope of consolidation due to its increased significance, although the inclusion does
not constitute a change in specified subsidiaries.
Application of special accounting for preparing the quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by multiplying the profit before income taxes by the reasonably estimatedeffective tax rates after the application of tax effect accounting to the profit before income taxes for the
fiscal year including the first quarter ended June 30, 2021. However, in cases where the calculation oftax expenses using such estimated effective tax rate yields a result that is not reasonable to a significant
extent, the amount of significant difference other than temporary differences, etc. is added to or deductedfrom the profit before income taxes, and the result is multiplied by the statutory income tax rate.
Changes in accounting policies
Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant revised ASBJ regulations effective from the beginning of the firstquarter of the fiscal year ending March 31, 2022, and it has recognized revenue at the time the control ofpromised goods or services is transferred to the customer at the amount expected to be received uponexchange of said goods or services. With respect to construction contracts, the Company previously had
applied the percentage-of-completion method to construction work whose outcome from the completed
portion was deemed definite, and had applied the completed-contract method to other construction work.
As a result of this application, however, the Company has changed the method to recognize revenue overa certain period of time in alignment with its satisfaction of performance obligations to transfer goods orservices to customers when control over a good or service is to be transferred to the customer over acertain period of time. In measuring progress made in satisfying a performance obligation, construction
costs incurred as of the last day of each reporting period are to be calculated based on the ratio of thetotal estimated construction costs. In addition, the Company is to recognize revenue using the cost
recovery method in cases where it expects to recover costs incurred but is unable to reasonably estimate
the extent of progress made toward satisfying performance obligations.
The application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application,
assuming the new accounting policy had been applied to periods prior to the beginning of the first quarterof the current fiscal year was added to or deducted from the opening balance of retained earnings of thefirst quarter of the current fiscal year, and thus the new accounting policy was applied from such opening
balance.
As a result, for the three months ended June 30, 2021, net sales increased by ¥906 million, cost of sales
increased by ¥860 million, while operating profit increased by ¥45 million, and ordinary profit and profit
before income taxes each increased by ¥46 million. In addition, the opening balance of retained earnings
increased by ¥11 million.
Due to the application of the Accounting Standard for Revenue Recognition and relevant revised ASBJ
regulations, “Notes and accounts receivable - trade” under current assets of the consolidated balance
sheet as of March 31, 2020 has been included in “Notes and accounts receivable - trade, and contract
assets” under current assets from the quarterly consolidated balance sheet as of June 30, 2021. In addition,- 8 -“Advances received” under current liabilities has been included in “Contract liabilities” from thequarterly consolidated balance sheet as of June 30, 2021. In accordance with the transitional treatment
provided for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for theprevious fiscal year have not been restated in accordance with the new approach to presentation.
Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant revised ASBJ regulations effective from the beginning of the first quarterof the fiscal year ending March 31, 2022, and in the future will accordingly apply new accounting policy
stipulated by the Accounting Standard for Fair Value Measurement, etc. in accordance with thetransitional treatment provided for in paragraph 19 of the Accounting Standard for Fair Value
Measurement and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). This will not affect the quarterly consolidated financial statements.
Additional information
There has been no material change in the assumptions regarding the impact of COVID-19 described in
the annual securities report (Additional information) (Impact arising due to the proliferation of COVID19) for the previous fiscal year.

- 9 -Segment information, etc.
[Segment information]
I Three months ended June 30, 2020 (From April 1, 2020 to June 30, 2020)
1. Information relating to net sales and profit by each reportable segment(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

15,257
0

4,327
79

Total

15,257

4,407

Adjustment

Amountrecorded in the
consolidated
statement ofincome(Note)

19,58580–(80)

19,585–

19,665(80)

19,585

Total

Segment profit
201
138
339
–
339
Note:
The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit
shown in the consolidated statement of income.

II Three months ended June 30, 2021 (From April 1, 2021 to June 30, 2021)
1. Information relating to net sales and profit by each reportable segment
Reportable Segment(Millions of yen)Amountrecorded in the
consolidated
statement ofincome(Note)

Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

17,691
0

4,616
87

22,30787–(87)

22,307–

Total

17,691

4,703

22,394(87)

22,307

Total

Adjustment

Segment profit
977
360
1,338
–
1,338
Note:
The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit
shown in the consolidated statement of income.

2. Disclosure of changes, etc. in reportable segments
As stated under changes in accounting policies, the Company will apply the Accounting Standard for
Revenue Recognition and relevant revised ASBJ regulations, and will accordingly change its method
for calculating business segment profit or loss given that it has changed accounting methods forrevenue recognition. In comparison with the previous method, this change increases net sales andsegment profit in the Water Treatment Engineering Business Unit by ¥916 million and ¥42 million,
respectively. Meanwhile, it decreases net sales by ¥10 million and increases segment profit by ¥2
million in the Performance Products Business Unit.

- 10 -