Organo : Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2022 159KB (PDF)

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 Japanese version, the Japanese version shall prevail. This translation is subject to change without notice.

Consolidated Financial Results for the First Nine Months of

the Fiscal Year Ending March 31, 2022

	February 1, 2022
Company name:	ORGANO CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	6368
URL:	https://www.organo.co.jp/english/
Representative:	Masaki Uchikura, Representative Director and President
Inquiries:	Shigeru Sonobe, General Manager of Accounting Dept., Corporate Management and
	Planning
TEL:	[phone]

Scheduled date to file quarterly securities report:	February 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results presentation meeting:	None

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2022 (from April 1, 2021 to December 31, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
			Net sales	Operating profit	Ordinary profit		Profit attributable to
				owners of parent
	Nine months ended	Millions of yen	%	Millions of yen		%	Millions of yen		%		Millions of yen	%
	December 31, 2021	77,834	13.2	6,141		16.7	6,654		22.7		5,297	47.8
	December 31, 2020	68,736	2.1	5,261		(29.6)	5,421		(26.9)		3,584	(30.4)
	Note:	Comprehensive	income: Nine	months ended December 31, 2021	¥5,896 million [62.6%]
			Nine months ended December 31, 2020	¥3,626 million [(27.9)%]
			Basic earnings	Diluted earnings
			per share	per share
	Nine months ended		Yen				Yen
	December 31, 2021		461.43				-
	December 31, 2020		312.52				-
(2) Consolidated financial position
			Total assets				Net assets	Equity-to-asset ratio
	As of			Millions of yen			Millions of yen				%
	December 31, 2021		120,497				71,504					59.2
	March 31, 2021		115,011				67,357					58.4
	(Reference) Equity: As of December 31, 2021	¥71,347	million	As of March 31, 2021	¥67,214 million

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	52.00	-	62.00		114.00
March 31, 2021
Fiscal year ending	-	72.00	-
March 31, 2022

Fiscal year ending

March 31, 2022 72.00144.00 (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

Operating profit

Ordinary profit

Profit attributable to

Basic

earnings

owners of parent

per share

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

Fiscal year ending

110,000

9.3

10,000

4.4

10,300

4.0

8,200

15.9

714.25

March 31, 2022

Note:

Revisions to the earnings forecasts most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change 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.

1. Changes in accounting policies, changes in accounting estimates, and restatement
2. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. 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 December	31, 2021	11,589,925 shares
As of March 31,	2021	11,589,925 shares

b. Number of treasury shares at the end of the period

As of December	31, 2021	135,204 shares
As of March 31,	2021	112,618 shares

c. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

For the nine months ended December 31, 2021	11,480,549 shares
For the nine months ended December 31, 2020	11,468,057 shares

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 end of the period 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 the Company. Actual business and other results may differ substantially due to various factors. Please refer to "(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements" in "1. Qualitative information regarding financial results for the first nine months" on page 3 of the attached 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 nine 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 nine months

1. Explanation regarding operating results
   During the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021), the electronic industry, the Organo Group's main market, remained active with successive announcements of investment plans for major semiconductor projects in Japan and overseas against the backdrop of the move to rebuild the global supply chain to respond to the shortage of semiconductor supply. In the general industrial field, some customers were impacted by stagnant manufacturing activity caused by supply chain turmoil from the shortage of supply of raw materials such as semiconductors and delayed deliveries as well as various national restrictions on economic activities and movement due to the spread of COVID- 19. However, the overall recovery trend continued, and sales grew compared with the same period of the previous fiscal year centered on the Service Solutions Division, which handles mainly maintenance and equipment modification, and the Performance Products Business Unit, which handles water treatment chemicals and standard equipment. In addition, the electric power/water supply and sewage fields remained strong centered on renewed facilities demand in Japan and solutions projects.

Under these conditions, the Organo Group has been focusing its efforts on gaining and delivering major semiconductor-related orders in its main markets of Japan, Taiwan, and China. It has also succeeded in gaining a new, major semiconductor order in the United States. Furthermore, to strengthen our delivery system to deliver the growing number of projects received, the Group has established a subsidiary in the United States and a global engineering center (GEC) in Vietnam. The Group is also moving forward with initiatives to streamline operations including promoting a shift to the digitalization of engineering operations, largely by developing various tools and databases. As a result, in the Group's financial results for the nine months ended December 31, 2021, orders received increased by 38.9% year on year to ¥100,129 million, net sales increased by 13.2% year on year to ¥77,834 million, and our carry-over balance for order backlog as of December 31, 2021 was up 18.5% to ¥84,238 million. On the profit side, operating profit increased by 16.7% to ¥6,141 million, ordinary profit increased by 22.7% to ¥6,654 million, and profit attributable to owners of parent increased by 47.8% to ¥5,297 million.

Results by segment are as follows.

[Water Treatment Engineering Business Unit]

■Orders received

Orders received increased 46.2% year on year to ¥85,145 million. In the electronics field, which is the Group's main market, orders received were favorable in Japan and overseas, centered on semiconductor- related projects. This included orders received for water treatment facilities for major semiconductor plants in Japan and Taiwan, active investment in China in semiconductors for automotive applications and power semiconductors, and success in gaining new orders for major semiconductor projects in the United States. In addition, in the general industry field and the electric power/water supply and sewage fields, firm levels of orders continued in the Japanese market for equipment modification and renewal and maintenance projects.

■Net sales

Net sales increased 15.0% year on year to ¥63,424 million. Net sales increased centered on the electronics field as a result of steady progress in work on major semiconductor projects in Japan and overseas that have been ordered to date. In addition, in the general industry field, although sales at major plants are on the decline, steady activities continued mainly in the Service Solutions Division in Japan. In the electric power/water supply and sewage fields, net sales increased year on year, mainly due to progress on the construction of major water supply and sewage related projects for which orders were received up until the previous fiscal year.

■Operating profit

Operating profit increased 13.7% year on year to ¥4,962 million. Net sales expanded, driving a year-on- year increase in operating profit. This was due to steady progress in the construction of major semiconductor projects in Japan, Taiwan, and China in the electronics industry field and steady activity mainly for the Service Solutions Business in Japan in the general industry field and the electric power/water supply and sewage fields.

- 2 -