Organo : Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2023 109KB (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 Three Months of

the Fiscal Year Ending March 31, 2023

	August 1, 2022
Company name:	ORGANO CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	6368
URL:	https://www.organo.co.jp/english/
Representative:	Masayuki Yamada, 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:	August 8, 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 three months of the fiscal year ending March 31, 2023 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
				Net sales		Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Three months ended		Millions of yen		%	Millions of yen			%	Millions of yen		%		Millions of yen		%
	June 30, 2022		27,835		24.8	2,219		65.8	2,633		61.5		1,495		82.7
	June 30, 2021		22,307		13.9	1,338		294.5	1,630		326.5		818		-
Note:	Comprehensive income: Three months ended June 30, 2022		¥1,831 million [47.4%]
				Three months ended June 30, 2021		¥1,242 million [-%]
				Basic earnings	Diluted earnings
				per share		per share
	Three months ended				Yen					Yen
	June 30, 2022		130.56					-
	June 30, 2021		71.30					-
(2) Consolidated financial position
				Total assets					Net assets	Equity-to-asset ratio
	As of					Millions of yen				Millions of yen					%
	June 30, 2022				129,665					76,821						59.1
	March 31, 2022				130,506					76,004						58.1
(Reference) Equity:	As of June 30, 2022		¥76,636 million		As of March 31, 2022	¥75,836 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	-	72.00	-	88.00	160.00
March 31, 2022
Fiscal year ending	-
March 31, 2023
Fiscal year ending
March 31, 2023		80.00	-	20.00	-
(Forecast)
Note:	Revisions to the forecast of cash dividends most recently announced: None
Note:	As the Company will conduct a 4-for-1 common share split effective as of October 1, 2022, the year-end dividend
	per share for the fiscal year ending March 31, 2023 (forecast) stated taking into account the effect of such share
	split, and the total annual dividend is stated as "-." The year-end dividends per share for the fiscal year ending

March 31, 2023 (forecast) that does not take the share split into account is ¥80, and the annual total of dividends per share is ¥160.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

(Percentages indicate year-on-year changes.)

									Profit attributable to	Basic
		Net sales		Operating profit	Ordinary profit	earnings
			owners of parent
									per share
		Millions		%	Millions	%	Millions	%	Millions	%	Yen
		of yen		of yen	of yen	of yen
Six months ending	60,000		20.0	4,000	6.1	4,000	(4.6)	2,800	3.8	244.44
September 30, 2022
Fiscal year ending	125,000		11.5	11,700	7.8	11,700	1.3	8,200	(11.0)	178.97
March 31, 2023
Note:	Revisions to the earnings forecasts most recently announced: None
Note:	Basic earnings per share in the consolidated earnings forecasts for the fiscal year ending March 31, 2023 take into
	account the effect of the share split. The forecast for basic earnings per share that does not take the share split into
	account is ¥715.87.

* 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: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
3. Number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022	11,589,925 shares
As of March 31, 2022	11,589,925 shares

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

As of June 30, 2022	135,496 shares
As of March 31, 2022	135,255 shares

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

For the three months ended June 30, 2022	11,454,551 shares
For the three months ended June 30, 2021	11,477,081 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 three 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 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
	Application of special accounting for preparing the quarterly consolidated financial statements
	..............................................................................................................................................................	8
	Additional information ......................................................................................................................	8
	Segment information, etc. ................................................................................................................	10

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1. Qualitative information regarding financial results for the first three months

1. Explanation regarding operating results
   During the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022), global economy brought about gradually mounting uncertainty regarding future trends, with widening inflation centered on energy and food prices and a further sharp decline in the value of the yen against a backdrop of Russia's military invasion of Ukraine and large-scale city lockdowns in China due to the spread of COVID-19.
   The electronics industry, which is the Organo Group's main market, continues to progress with a high level of capital investment and production activity for now, but there are signs of concern over the future trend in market conditions, including a slowdown in demand for smartphones, PCs and others, and a fall in the price of semiconductor memory. On the other hand, in the general industry field and the social infrastructure field, such as electric power/water supply and sewage, activity in Japan trended firmly, particularly in the Service Solutions Division, for operations such as maintenance, while capital investment showed signs of gradual recovery after a halt due to the COVID-19 pandemic.
   Under these conditions, the Organo Group proceeded to draw in orders and make deliveries for large- scale projects in Japan and overseas, while expanding the engineering systems and supply chains at bases in each country and promoting R&D on next-generation ultrapure water technology and new separation and purification technologies, and promoting initiatives to strengthen governance, such as developing risk management systems.
   As a result, in the Group's financial results for the three months ended June 30, 2022, orders received increased by 39.3% year on year to ¥51,894 million, net sales increased by 24.8% to ¥27,835 million, operating profit increased by 65.8% to ¥2,219 million, ordinary profit increased by 61.5% to ¥2,633 million, profit attributable to owners of parent increased by 82.7% to ¥1,495 million, and our carry-over balance for order backlog as of June 30, 2022 was up 48.3% to ¥112,974 million.
   Results by segment are as follows.
   [Water Treatment Engineering Business Unit]
   ■ Orders received
   Orders received increased 44.2% year on year to ¥46,790 million. In the mainstay electronics field, the Group succeeded in capturing orders for large-scale projects in Japan, such as semiconductors and wafers. Overseas, such as Taiwan, China, and Malaysia, orders increased significantly year on year due to brisk investment in cutting-edge semiconductors and investments in automotive semiconductors and power semiconductors, among others. In the general industry field, orders increased, mainly for equipment modification and renewal projects, as well as maintenance. In the electric power/water supply and sewage fields trended firmly, mainly for the Service Solutions Division in Japan.
   ■ Net sales
   Net sales increased 29.3% year on year to ¥22,877 million. In the mainstay electronics field, net sales increased significantly year on year, driven by steady performance in construction in Japan and overseas, including large-scale semiconductor projects, which continue to see brisk investment, while the Service Solutions Division also performed strongly, mainly in contracted maintenance and processing services. In addition, in the general industry field, activities continued steadily mainly in the Service Solutions Division in Japan. Sales also increased year on year in the social infrastructure field, where progress on construction of large-scale water treatment facilities for a power station was made.
   ■ Operating profit
   Operating profit increased 71.7% year on year to ¥1,679 million. Operating profit increased due to a significant increase in gross profit due to the effect of sales expansion centered on the electronics industry field, despite increases in expenses, mainly for personnel expenses.

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