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 Fiscal Year Ended March 31, 2023
<under Japanese GAAP>May 12, 2023
ORGANO CORPORATIONTokyo Stock Exchange
6368
https://www.organo.co.jp/english/
Masayuki Yamada, Representative Director and President
Shigeru Sonobe, General Manager of Accounting Dept., Corporate Management andPlanning
TEL:+81-3-5635-5111
Scheduled date of ordinary general meeting of shareholders:June 29, 2023
Scheduled date to commence dividend payments:
June 30, 2023
Scheduled date to file annual securities report:
June 29, 2023
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, 2023
(from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Net sales(Percentages indicate year-on-year changes.)
Operating profit

Ordinary profit

Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended
March 31, 2023
132,426
18.2
15,21240.2
16,02038.8
March 31, 2022
112,069
11.4
10,85013.3
11,545
16.6
Note:
Comprehensive income: Fiscal year ended March 31, 2023
¥12,602 million [21.1%]
Fiscal year ended March 31, 2022
¥10,405 million [34.9%]

Basic earnings
per share

Diluted earnings
per share

Return on equity

Profit attributable toowners of parent
Millions of yen%

11,730
9,210

27.4
30.2

Ratio of ordinary
profit to total
assetsOperating profit
ratio

Yen
Yen
%
%
%
Fiscal year ended
March 31, 2023
255.77
–
14.5
10.8
11.5
March 31, 2022
200.67
–
12.9
9.4
9.7
(Reference) Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2023
¥208 million
Fiscal year ended March 31, 2022
¥160 million
The Company conducted a 4-for-1 common share split effective as of October 1, 2022. Basic earnings per share are calculatedon the assumption that said share split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen
Millions of yen
%
Yen
As of
March 31, 2023
164,854
86,37152.3
1,877.80
March 31, 2022
130,506
76,00458.1
1,655.14(Reference) Equity: As of March 31, 2023
¥86,170 million
As of March 31, 2022
¥75,836 million
The Company conducted a 4-for-1 common share split effective as of October 1, 2022. Net assets per share are calculatedon the assumption that said share split was conducted at the beginning of the previous fiscal year.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen(18,536)
10,787(1,309)(1,520)14,706(2,586)

15,55820,198

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

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023

Yen

Fiscalyear-end

Yen

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

Total

Yen

(consolidated)

Yen

Millions of
yen

%

%

–

72.00

–

88.00

160.00

1,840

19.9

2.6

–

116.00

–

33.00

–

2,853

24.2

3.5

Fiscal year ending
March 31, 2024
–
33.00
–
33.00
66.00
27.0
(Forecast)
The Company conducted a 4-for-1 common share split effective as of October 1, 2022. The second quarter-end dividend pershare for the fiscal year ended March 31, 2023 was stated before taking into account the effect of this share split, and the total
annual dividend for the year was stated as “–”. The annual dividend per share for the fiscal year ended March 31, 2023 that has
been calculated based on post-share split figures is ¥62.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024
(from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
Millionsof yenSix months ending
September 30, 2023
(cumulative)
Fiscal year ending
March 31, 2024

Operating profit%

Millionsof yenProfit attributable toowners of parent

Ordinary profit%

Millionsof yen%Millionsof yenBasicearnings
per share%Yen

70,000

12.7

6,600

1.4

6,600

(11.4)

4,600

(8.5)

100.24150,000

13.3

16,0005.2

16,000(0.1)

11,200(4.5)

244.07

* 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, 2023

46,359,700 shares

As of March 31, 2022

46,359,700 sharesb. Number of treasury shares at the end of the period
As of March 31, 2023

470,795 shares

As of March 31, 2022

541,020 sharesc. Average number of shares outstanding during the period
For the fiscal year ended March 31, 2023

45,863,749 shares

For the fiscal year ended March 31, 2022

45,898,316 shares

Notes:
1. The Company conducted a 4-for-1 common share split effective as of October 1, 2022. Total number of issued
shares at the end of the period, number of treasury shares at the end of the period, and average number of shares
outstanding during the period are calculated on the assumption that said share split was conducted at the
beginning of the previous fiscal year.
2. The Company has introduced an Officer Share Delivery Trust, and shares of the Company held by the Trust
have been included in treasury shares excluded from the calculation of the number of treasury shares at the endof the period 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, 2023
(from April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Millions of yen

78,38770,063% Millions of yen

11.9
(3.6)

Basic earnings
per share

8,834
6,772

Ordinary profit% Millions of yen

30.4
7.3

11,026
8,667

Profit% Millions of yen

27.2
11.5

8,593
7,480

%

14.9
27.2

Diluted earnings
per share

Yen
Yen
Fiscal year ended
March 31, 2023
187.36–
March 31, 2022
162.98–The Company conducted a 4-for-1 common share split effective as of October 1, 2022. Basic earnings per share are calculatedon the assumption that said share split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

125,235
102,72168,82462,36155.0
60.7

1,499.80
1,361.05(Reference) Equity:

As of March 31, 2023
¥68,824 million
As of March 31, 2022
¥62,361 million
The Company conducted a 4-for-1 common share split effective as of October 1, 2022. Net assets per share are calculated on
the assumption that said share split was conducted at the beginning of the previous fiscal year.

<Reasons for year-on-year differences in non-consolidated financial results>
Differences between the results for the fiscal year under review and the results for the previous fiscal year
occurred due to the same reasons stated in “(1) Overview of operating results for the fiscal year under review”
in “1. Overview of operating results, etc.” on 2 of the attached material.
* 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 7 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 ...................................................... 6(3) Overview of cash flows for the fiscal year under review .................................................................. 6(4) Future outlook...................................................................................................................................... 7
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
Segment information, etc. ................................................................................................................ 16
Per share information ...................................................................................................................... 19
Significant subsequent events .......................................................................................................... 19- 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, 2023 (from April 1, 2022 to March 31, 2023), the pace of recovery
in the global economy slowed and the sense of stagnation became stronger due to factors such as theeffects of progressive inflation caused by rising prices for energy, food and other goods, and consequentchanges in the monetary policies of various countries, amid the prolonged impact of geopolitical risks,
including the Russian invasion of Ukraine and trade friction between the U.S. and China.
In the electronics industry, the Organo Group’s main market, there was a deterioration in semiconductor
market conditions, centered around memory, and there were signs that some customers were reducing
production and decreasing/postponing capital investment mainly due to the impact of semiconductorrelated restrictions imposed on China by the U.S. However, large-scale investments in cutting-edge
semiconductors in Taiwan, and capital investments in silicon wafers, automotive/power semiconductors,
and others in Japan, China, Malaysia, etc. remained active. The general industry field saw recovering
capital investments, which had been weak due to the impact of the COVID-19 pandemic, and there wascontinued strength in electric power/water supply and sewage and other areas of social infrastructure,
driven primarily by the Service Solutions Division in Japan.
Under these conditions, the Organo Group proceeded to draw in orders and make deliveries for largescale projects in Japan and overseas, while establishing supply chains and delivery frameworks in eachcountry, and promoting digitalization to improve efficiency in the engineering operations and expand
service solutions. We also engaged in initiatives to enhance R&D aimed at the creation of next-generation
ultrapure water systems and new separation and purification technologies, and moved forward withmeasures to strengthen the management foundation, such as bolstering governance through risk
management, formulating sustainability policies, and identifying issues of materiality.
As a result, for the fiscal year ended March 31, 2023, orders received increased by 27.9% year on yearto ¥173,491 million, net sales increased by 18.2% year on year to ¥132,426 million, operating profit
increased by 40.2% to ¥15,212 million, ordinary profit increased by 38.8% to ¥16,020 million, profit
attributable to owners of parent increased by 27.4% to ¥11,730 million, and return on equity (ROE) was
14.5%, compared to 12.9% for the previous fiscal year. Orders received, net sales and the respective
profit figures surpassed the actual results of the previous fiscal year and the levels of the initial planacross the board and achieved record highs. In addition, we have secured a high balance with respect tocarry-over balance for order backlog centered on large-scale semiconductor projects, etc., which will
form the basis for sales from next fiscal year onward, with an order backlog of ¥117,659 million (up36.2% year on year).
(Millions of yen)

Category

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

77th term
Fiscal year ended
March 31, 2022

78th term(Fiscal year under review)
Fiscal year ended March 31, 2023

Year-on-year

Actual-toforecast

135,698

Initial plan
125,000

Actual result
173,491

27.9%

38.8%

86,41786,417

117,659

36.2%

36.2%

112,069
10,8509.7
11,545125,000
11,7009.4
11,700132,426
15,212
11.5
16,020

18.2%
40.2%
–
38.8%

5.9%
30.0%
–
36.9%

9,210

8,200

11,730

27.4%

43.1%

12.9

10.6

14.5

–

–

- 2 -

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

Net sales ratio

Orders received¥152,422 million (Up 31.3% year-on-year)

Net sales¥111,601 million (Up 20.4% year-on-year)

Operating profit¥12,966 million (Up 42.7% year-on-year)

84.3%

Major Business●Major Business and ProductsPlant Division
Pure and ultrapure waterproduction facilities
Industrial process water
treatment facilities
Wastewater treatment
and recovery 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
partsElectric power/
water supply
and sewage
Power plants
Water
purification
plantsSewagetreatment
plantsGeneralindustry
Pharmaceuticals,
cosmetics
Food andbeverage
Machinery andchemicals■Orders received
Orders received increased 31.3% year on year to ¥152,422 million. The electronics industry, which is theOrgano Group’s main market, saw a significant increase in orders received as a result of investing insemiconductor projects in Japan and cutting-edge semiconductors in Taiwan, and of receiving orders forlarge-scale construction programs involving the silicon wafer project in Japan, among others. Also, theincrease was contributed by the active investments in automotive/power semiconductors in countries
such as China and Malaysia. In the general industry field, there was also a recovery in large-scale capital
investments in areas related to the pharmaceutical, food and electronics industries, and therefore orders
received increased. In the field of social infrastructure, which includes electric power/water supply andsewage, orders received were about the same level as the previous fiscal year, mainly in solutions projects
in Japan.
■Net sales
Net sales increased 20.4% year on year to ¥111,601 million. In the electronics field, net sales increased
mainly due to mostly steady progress on the construction of the projects ordered as a whole, and strength
in maintenance, renovation/reconditioning, facility-owned projects/contracted processing, etc. of theService Solutions Division, despite the impact from revised schedules for some projects and delays inprocuring raw materials and in construction work. Sales also expanded in the general industry field,
driven by such factors as a recovery in orders received for large-scale projects, and a growth in the Service
Solutions Division. In the social infrastructure field, such as electric power/water supply and sewage, we
succeeded in recording net sales of about the same level as the previous fiscal year, driven mainly by
solutions projects in Japan.
■Operating profit
Operating profit increased 42.7% year on year to ¥12,966 million. In addition to gross profit increasing
due to the effects of higher sales primarily in the electronics industry, margins also improved year on
year as a result of higher profitability in large-scale projects, which more than offset a rise in selling,
general and administrative expenses centered on personnel outsourcing expenses, and led to a year-onyear increase in operating profit.

- 3 -- 4 -

[Performance Products Business Unit]

Net sales ratio

Orders received¥21,068 million (Up 7.6% year-on-year)

Net sales¥20,824 million (Up 7.6% year-on-year)

Operating profit¥2,246 million (Up 27.4% year-on-year)

15.7%

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
storesFood 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 increased 7.6% year on year to ¥21,068 million and net sales increased 7.6% year on
year to ¥20,824 million. Sales of various water treatment chemicals to the electronics industry increased,
while in the standard equipment and filters field, sales of small-scale pure water production equipment,such as Puric μ (mu), were also strong. In the food products field, sales of food processing agents, among
others, also increased.
■Operating profit
Operating profit increased 27.4% year on year to ¥2,246 million. In addition to the effects of higher sales
in each field, we made progress in passing on higher costs, such as increases in raw material prices, toselling prices, which resulted in operating profit growing year on year.
Performance Products Business Unit
Net sales(Billions of yen)

19.3
4.9

20.8
5.7

6.7

7.0

7.7

8.0

77th term

78th term

Food productsStandard water treatment equipment and filters
Water treatment chemical- 5 -(2) Overview of financial position for the fiscal year under review
Current assets
Current assets as of March 31, 2023 amounted to ¥136,765 million, an increase of ¥33,903 million fromthe previous fiscal year end. This was mainly due to increases of ¥15,151 million in work in process and¥13,831 million in accounts receivable - trade.
Non-current assets
Non-current assets as of March 31, 2023 amounted to ¥28,088 million, an increase of ¥444 million fromthe previous fiscal year end. This was mainly due to an increase of ¥371 million in investment securities.
Current liabilities
Current liabilities as of March 31, 2023 amounted to ¥68,738 million, an increase of ¥25,666 million
from the previous fiscal year end. This was mainly due to an increase of ¥19,191 million in short-termborrowings.
Non-current liabilities
Non-current liabilities as of March 31, 2023 amounted to ¥9,744 million, a decrease of ¥1,685 million
from the previous fiscal year end. This was mainly due to a decrease of ¥1,800 million in long-termborrowings.
Net Assets
Net assets as of March 31, 2023 amounted to ¥86,371 million, an increase of ¥10,366 million from theprevious fiscal year end. This was mainly due to an increase of ¥9,383 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, 2023 decreased by ¥4,639 million fromthe previous fiscal year end to ¥15,558 million.
Cash flows from operating activities
Net cash used in operating activities was ¥18,536 million. This was mainly because there was an increasein cash due to profit before income taxes of ¥16,035 million while there was a decrease in cash due to anincrease in trade receivables and contract assets of ¥19,954 million, and an increase in inventories of¥17,295 million. (Net cash of ¥10,787 million was provided in the fiscal year ended March 31, 2022.)
Cash flows from investing activities
Net cash used in investing activities was ¥1,309 million. This was mainly because there was a decreasein cash due to purchase of property, plant and equipment of ¥1,205 million. (Net cash of ¥1,520 million
was used in the fiscal year ended March 31, 2022.)
Cash flows from financing activities
Net cash provided by financing activities was ¥14,706 million. This was mainly because there weredecreases in cash due to dividends paid of ¥2,347 million and repayments of long-term borrowings of- 6 -¥1,900 million while there was an increase in cash due to an increase in short-term borrowings of ¥19,138
million. (Net cash of ¥2,586 million was used in the fiscal year ended March 31, 2022.)(4) Future outlook
In terms of the future outlook, we anticipate the global economy will follow a decelerating trend due tothe impact of further inflation worldwide, monetary tightening, and other factors. In the electronics
industry, which is the Organo Group’s main market, there are concerns that the economic trend incountries such as the U.S. and China will have an impact on semiconductor market conditions, and theoutlook is likely to remain unclear. Regarding our financial results outlook for the fiscal year ending
March 31, 2024, we are planning for orders received of ¥150,000 million (down 13.5% year on year),net sales of ¥150,000 million (up 13.3%), operating profit of ¥16,000 million (up 5.2%), ordinary profitof ¥16,000 million (down 0.1%), and profit attributable to owners of parent of ¥11,200 million (down
4.5%).
Orders received are expected to decrease year on year, but we assume the receipt of some orders related
to multiple large-scale projects planned in Japan and overseas, centered on the electronics industry. We
forecast that net sales will exceed the level of the fiscal year ended March 31, 2023, due to our substantial
carry-over balance for order backlog, which has arisen primarily from large-scale projects related to
semiconductors, and due to our expectation of mostly steady progress in construction work. In terms ofoperating profit, we anticipate an increase in profits prompted by expansion of sales, despite thelikelihood of higher personnel expenses associated with strengthening our structures, rises in outsourcing
costs aimed at improving efficiency and in investments for digital technology, and higher research anddevelopment expenses for the creation of new businesses and so on. Meanwhile, we forecast a decreasein ordinary profit and profit attributable to owners of parent, impacted by the foreign exchange gains
recorded in the previous fiscal years as a result of the depreciation of the yen, among other factors.

Category
Orders received
Carry-over balance for order backlog
Net sales
Operating profit
Operating profit ratio (%)
Ordinary profit
Profit attributable to owners of parent
Return on equity (ROE) (%)(Millions of yen, %)Fiscal year ending March 31,
Fiscal year ended March 31,
2024
Change2023
Initial plan
173,491
150,000(13.5)%
117,659
117,659
0.0%
132,426
150,000
13.3%
15,212
16,000
5.2%
11.5
10.7
–
16,02016,000(0.1)%
11,730
11,200(4.5)%
14.5
12.6–

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, 2022

As of March 31, 2023

20,198
1,703
25,63915,5581,026
39,470

1,862

2,826

25,584
11,293
5,264
6,735
1,456
3,133
(6)
102,862

32,3599,853
7,165
21,886
1,744
4,891
(17)
136,765

18,873(12,707)
6,166
5,826
(5,117)709
12,257
1,115
5,346(4,601)
745
20,995
1,082

19,183(13,104)
6,078
6,582
(5,452)
1,129
12,296
118
5,955(4,784)
1,171
20,795
949

2,058
624
2,369
979
(464)
5,566
27,644
130,506

2,430
815
2,673
596
(171)
6,343
28,088164,854

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Electronically recorded monetary claims operating
Contract assets
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- 8 -(Millions of yen)
As of March 31, 2022

As of March 31, 2023

18,795
5,575
9,933
1,444
1,820
1,477
296
46

20,904
4,640
29,124
3,014
3,007
1,594
548
512

123

105

3,559
43,072

5,284
68,738

5,695
53
5,512
168
11,42954,501

3,895
91
5,511
245
9,744
78,4838,225
7,508
59,619(734)
74,6178,225
7,508
69,002(613)
84,123

434

539

(0)
575
208
1,218
168
76,004
130,506

(2)
1,191
317
2,047
201
86,371
164,854

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for product warranties
Provision for loss on construction contracts
Provision for share awards for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 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
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of right to use facilities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on abandonment of non-current assets
Loss on sale of investment securities
Loss on sale 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, 2022
(From April 1, 2021 toMarch 31, 2022)
112,069
83,55628,512
17,662
10,850- 10 -(Millions of yen)
Fiscal year ended
March 31, 2023
(From April 1, 2022 toMarch 31, 2023)
132,426
97,44934,976
19,763
15,212

26
33
573

35
44
559

160

208

129
924

130
978

127
92
9
229
11,545

159
–
10
170
16,020

1,150
23
11
1,185

5
40
–
46

–
21
–
13
35
12,696
2,984
485
3,470
9,226
15
9,210

0
28
1
–
31
16,035
4,628
(357)
4,270
11,76434
11,730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, 2022
(From April 1, 2021 toMarch 31, 2022)
9,226- 11 -(Millions of yen)
Fiscal year ended
March 31, 2023
(From April 1, 2022 toMarch 31, 2023)
11,764

135

104

(0)
809

(2)
625

235

110

(2)

0

1,178
10,405837
12,602

10,371

12,55933

43

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

Retained earnings

Treasury shares

8,225

7,508

51,902(495)

Balance at beginningof period
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Increase in retained
earnings due toincrease inconsolidated
subsidiaries
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’equityTotal changes during
periodBalance at end of
periodTotal shareholders’equity67,139

11
8,225

7,508

8,225

51,913

7,508

11
(495)

67,151(1,541)(1,541)

9,210

9,210

36

36

(354)

(354)

115

115

7,705

(238)

7,466

59,619(734)

74,617

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginningof period
Cumulative effects
of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Increase in retained
earnings due toincrease inconsolidated
subsidiaries
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period301

Deferred gains
or losses onhedges–Foreigncurrencytranslation
adjustment(201)

Remeasurements ofdefinedbenefit plans
(25)

Total
accumulated Non-controlling Total net assetsinterests
othercomprehensive
income74

143

67,357
11

301

–

(201)

(25)

74

143

67,369(1,541)
9,210

36

(354)
115
132

(0)

777

234

1,144

25

1,169

132

(0)

777

234

1,144

25

8,635

434

(0)

575

208

1,218

168

76,004- 12 -

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

Retained earnings

Treasury shares

8,225

7,508

59,619(734)

Balance at beginningof period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’equityTotal changes during
periodBalance at end of
periodTotal shareholders’equity74,617(2,347)(2,347)

11,73011,730

0

(4)

(4)

125

125

–

0

9,383

121

9,505

8,225

7,508

69,002(613)

84,123

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginningof period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period434

Deferred gains
or losses onhedges(0)Foreigncurrencytranslation
adjustment
575

Remeasurements ofdefinedbenefit plans
208

Total
accumulated Non-controlling Total net assetsinterests
othercomprehensive
income1,218

168

76,004(2,347)
11,730
(4)
125

104

(2)

616

109

828

32

861

104

(2)

616

109

828

32

10,366

539

(2)

1,191

317

2,047

201

86,371- 13 -

(4) Consolidated statement of cash flows
Fiscal year ended
March 31, 2022
(From April 1, 2021 toMarch 31, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on valuation of derivatives
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 sale of right to use facilities
Decrease (increase) in trade receivables andcontract assets
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 paid for damage
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
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, 2023
(From April 1, 2022 toMarch 31, 2023)

12,696
1,332
127
150
(250)
(60)
127
(178)

16,035
1,824
652
171
(211)
(80)
159
(233)

(160)

(208)

92
(1,150)
21
(23)
1

(5)
(4)
28
(39)
–

(320)

(19,954)(1,518)(2,244)
5,451
403
14,497
73
(129)
11
(0)
(3,664)
10,787

1,439(17,295)
664
1,672(15,384)
93
(168)
71
–
(3,147)(18,536)(2,492)(1,205)

1,200

5

(306)
(8)
65
–
32
(10)
(1,520)

(247)
(301)
73
300
–
64
(1,309)Fiscal year ended
March 31, 2022
(From April 1, 2021 toMarch 31, 2022)
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
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period- 15 -(Millions of yen)
Fiscal year ended
March 31, 2023
(From April 1, 2022 toMarch 31, 2023)(5,979)
6,000
(600)
(354)
(1,541)(7)(101)(2,586)

19,138–(1,900)(4)(2,347)(10)(170)
14,706

398

500

7,079
12,804(4,639)20,198314–

20,19815,558(5) Notes to consolidated financial statements
Notes on premise of going concern
No items to report
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.

- 16 -

3. Net sales, profit (loss), assets, liabilities, and other items by reportable segment
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

92,7230

19,346
331

Total

Adjustment(Note 1)

Reported inconsolidated
financialstatements

112,069
332

–
(332)

112,069–

Total

92,724

19,678112,402(332)

112,069

Segment profit

9,087

1,763

10,850–10,850

Segment assets

107,150

17,763

124,9145,592

130,506

Other items
Depreciation
1,042
290
1,332
–
1,332
Investment in entities
accounted for using equity
1,109
–
1,109
–
1,109
methodIncrease in property, plant andequipment and intangible
2,676
711
3,387
–
3,387
assets
Notes: 1. The adjustments of ¥5,592 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 of and
an increase in long-term prepaid expenses.

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable Segment
Water
Treatment
Engineering
Business Unit

Performance
Products
Business Unit

Net sales
Sales to external customers
Intersegment sales or transfers

111,601020,824
347

Total

Adjustment(Note 1)

Reported inconsolidated
financialstatements

132,426
348

–
(348)

132,426–
132,426

Total

111,60221,172

132,774(348)

Segment profit

12,966

2,246

15,212–

15,212

Segment assets

141,199

18,387

159,587

5,266

164,854

Other items
Depreciation
1,476
347
1,824
–
1,824
Investment in entities
accounted for using equity
1,305
–
1,305
–
1,305
methodIncrease in property, plant andequipment and intangible
1,232
234
1,466
–
1,466
assets
Notes: 1. The adjustments of ¥5,266 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 of and
an increase in long-term prepaid expenses.

- 17 -

[Related information]
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
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

Taiwan73,082

Note:

19,523China

Southeast Asia

13,325

Other

4,874

(Millions of yen)
Total

1,263

112,069

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

Taiwan Semiconductor Manufacturing
Company, Ltd.

15,472

Water Treatment Engineering Business
Unit

Fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)
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 salesJapan
82,796

Note:

Taiwan23,504China

Southeast Asia

11,691

Other

10,217(Millions of yen)
Total

4,216

132,426

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
Because there is no external customer for which sales account for 10% or more of net sales recordedon the consolidated statement of income, this information is not presented.
[Information relating to impairment loss of non-current assets by each reportable segment]
No items to report[Information relating to amortization of goodwill and unamortized balance by each reportable segment]
No items to report[Information relating to gain on bargain purchase by each reportable segment]
No items to report- 18 -

Per share information
Fiscal year ended March 31, 2022
(From April 1, 2021 to March 31,
2022)
Net assets per share

Fiscal year ended March 31, 2023
(From April 1, 2022 to March 31,
2023)¥1,655.14¥1,877.80¥200.67¥255.77

Basic earnings per share

Notes: 1. Diluted earnings per share is not presented since no potential shares exist.
2. The Company conducted a 4-for-1 common share split, effective as of October 1, 2022. Net assets
per share and basic earnings per share are calculated on the assumption that said share split was
conducted at the beginning of the previous fiscal year.
3. When calculating net assets per share in the fiscal year ended March 31, 2023, common shares of
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 (204 thousand shares atthe end of the fiscal year ended March 31, 2022; 133 thousand shares at the end of the fiscal year
ended March 31, 2023). 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 (126 thousand shares in the fiscal year ended March 31, 2022; 158
thousand shares in the fiscal year ended March 31, 2023).
4. The basis for calculation of basic earnings per share is as follows.
Fiscal year ended March 31, 2022
(From April 1, 2021 to March 31,
2022)

Fiscal year ended March 31, 2023
(From April 1, 2022 to March 31,
2023)

Profit attributable to owners of parent(millions of yen)

9,210

11,730

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

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

9,210

11,730

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

45,89845,863

5. The basis for calculation of net assets per share is as follows.
As of March 31, 2022

As of March 31, 2023

Total net assets (millions of yen)

76,00486,371

Amount subtracted from total net
assets (millions of yen)

168

201

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

[168]

[201]

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

75,836

86,170

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

45,81845,888Significant subsequent events
No items to report- 19 -