Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2022 174KB (PDF)

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Consolidated Financial Results for the First Six Months of

the Fiscal Year Ending March 31, 2022

	November 1, 2021
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:	November 12, 2021
Scheduled date to commence dividend payments:	December 6, 2021
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:	Yes (for institutional investors and
	analysts)

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

1. Consolidated financial results for the first six months of the fiscal year ending March 31, 2022 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
			Net sales	Operating profit	Ordinary profit		Profit attributable to
				owners of parent
	Six months ended	Millions of yen	%	Millions of yen		%	Millions of yen		%		Millions of yen	%
	September 30, 2021	50,001	10.3	3,771		18.5	4,193		28.0		2,696	29.6
	September 30, 2020	45,322	(2.9)	3,182		(41.5)	3,276		(38.4)		2,080	(42.8)
	Note:	Comprehensive	income: Six months ended September 30, 2021	¥3,220 million [55.4%]
			Six months ended September 30, 2020	¥2,072 million [(40.8)%]
			Basic earnings	Diluted earnings
			per share	per share
	Six months ended		Yen				Yen
	September 30, 2021		234.81				-
	September 30, 2020		181.54				-
(2) Consolidated financial position
			Total assets				Net assets	Equity-to-asset ratio
	As of			Millions of yen			Millions of yen				%
	September 30, 2021		113,017				70,005					61.8
	March 31, 2021		115,011				67,357					58.4
	(Reference) Equity: As of September 30, 2021	¥69,852	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							-	72.00		144.00
March 31, 2022
(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

714.00

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 11 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 11 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 September 30, 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 September 30, 2021	86,418 shares
As of March 31, 2021	112,618 shares

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

For the six months ended September 30, 2021	11,484,642 shares
For the six months ended September 30, 2020	11,459,908 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 six months" on page 4 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 six 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 4
2. Quarterly consolidated financial statements and significant notes thereto ........................................	5
(1)	Consolidated balance sheet ................................................................................................................	5
(2)	Consolidated statement of income and consolidated statement of comprehensive income..........	7
	Consolidated statement of income (cumulative) ..............................................................................	7
	Consolidated statement of comprehensive income (cumulative)....................................................	8
(3)	Consolidated statement of cash flows ...............................................................................................	9
(4)	Notes to quarterly consolidated financial statements....................................................................	11
	Notes on premise of going concern..................................................................................................	11
	Notes on substantial changes in the amount of shareholders' equity...........................................	11
	Changes in significant subsidiaries during the period ..................................................................	11
	Application of special accounting for preparing the quarterly consolidated financial statements
	............................................................................................................................................................	11
	Changes in accounting policies........................................................................................................	11
	Additional information ....................................................................................................................	12
	Segment information, etc. ................................................................................................................	13

- 1 -

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

1. Explanation regarding operating results
   During the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021), vigorous production and investment activity in Japan and overseas persisted in the electronics industry, the Organo Group's main market, mainly driven by the shortage of semiconductor supply and efforts to restructure global supply chains. In the general industrial field, the Service Solutions Division, which handles mainly maintenance and equipment modification, and the Performance Products Business Unit, which handles mainly sales of expendable items and small-scale equipment, both experienced a recovery trend compared with the same period of the previous fiscal year, despite a hold-up in production activities due to prolonged restrictions on certain customers' activities because of COVID-19 and the impact of the semiconductor shortage. In addition, the electric power/water supply and sewage fields continued a firm trend.
   Under these conditions, the Organo Group has been focusing its efforts on gaining and delivering large- scale orders in the semiconductor markets of Japan, Taiwan, and China, where investment remains active. At the same time, it moved forward with initiatives to streamline operations and strengthen the delivery framework. These included establishing a subsidiary in the United States to handle local semiconductor projects, starting operations at the global engineering center (GEC) in Vietnam, and promoting a shift to digitalization of engineering operations, largely by developing various tools and databases.
   As a result, in the Group's financial results for the six months ended September 30, 2021, orders received increased by 33.7% year on year to ¥58,903 million, net sales increased by 10.3% year on year to ¥50,001 million, and our carry-over balance for order backlog as of September 30, 2021 was up 6.0% to ¥70,541 million. On the profit side, operating profit increased by 18.5% to ¥3,771 million, ordinary profit increased by 28.0% to ¥4,193 million, and profit attributable to owners of parent increased by 29.6% to ¥2,696 million.
   Results by segment are as follows.
   [Water Treatment Engineering Business Unit]
   ■Orders received
   Orders received increased 40.2% year on year to ¥48,998 million. In the electronics field, which is the Group's main market, the Group saw persistently active production and capital investment activity in Japan and overseas. This included receipt of an order for a large wastewater recovery facility for a semiconductor plant in Japan, a high level of capital investment in cutting-edge semiconductor manufacturing in Taiwan, and continued investment in China as well, mainly in semiconductors for automotive applications and power semiconductors. In addition, in the general industry field, as well as the electric power/water supply and sewage fields, firm levels of orders were seen in the Service Solutions Division in Japan, particularly for maintenance and equipment modification.
   ■Net sales
   Net sales increased 10.9% year on year to ¥40,378 million. In the electronics field, net sales increased as a result of steady progress in work on major projects in Japan and overseas that has been ordered to date. In addition, in the general industry field, although major capital investments are on the decrease, steady activity continued mainly in the Service Solutions Division in Japan, while in the electric power/water supply and sewage fields, net sales increased year on year, mainly due to progress on construction of major projects for which orders were received up until the previous fiscal year.
   ■Operating profit
   Operating profit increased 15.3% year on year to ¥3,040 million. As stated above, net sales expanded due to progress on construction of major projects in Japan, Taiwan, and China, mainly in the electronics industry field, driving a year-on-year increase in operating profit.
2. • 2 -