Organo : Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2022 125KB (PDF)

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Consolidated Financial Results for the First Three Months of

the Fiscal Year Ending March 31, 2022

	July 30, 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:	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

(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)			(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, 2021	22,307		13.9	1,338		294.5	1,630		326.5	818		-
	June 30, 2020	19,585		(2.8)	339		(74.0)	382		(72.0)	(58)		-
Note:	Comprehensive income: Three months ended June 30, 2021		¥1,242 million [-%]
			Three months ended June 30, 2020		¥(203) million [-%]
			Basic earnings	Diluted earnings
			per share		per share
	Three months ended			Yen					Yen
	June 30, 2021	71.30					-
	June 30, 2020			(5.12)					-
(2) Consolidated financial position
			Total assets					Net assets	Equity-to-asset ratio
	As of				Millions of yen				Millions of yen				%
	June 30, 2021			110,707					67,914					61.2
	March 31, 2021			115,011					67,357					58.4
(Reference) Equity: As of June 30, 2021		¥67,761 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	-
March 31, 2022
Fiscal year ending
March 31, 2022		57.00	-	57.00	114.00
(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.)

									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	50,000		10.3	2,600	(18.3)	2,550	(22.2)	1,500	(27.9)	130.70
September 30, 2021
Fiscal year ending	103,000		2.3	8,250	(13.9)	8,150	(17.7)	6,500	(8.1)	566.35
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 June 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 June 30, 2021	112,945 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 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 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 2 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
	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, amid a scenario of progress being made in restructuring supply chains for domestic production of semiconductors as the shortage of semiconductor supply intensified worldwide. On the other hand, in the general 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/water supply and sewage fields trended firmly on the whole.
   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, 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 with loss 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-edgesemiconductors in Taiwan, and; continued orders for semiconductor projects particularly for automotive applications in China. In addition, in the general industrial field, orders received held strong 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-scale orders involving electric power.
   ■ Net sales
   Net sales increased 16.0% year on year to ¥17,691 million. In the electronics field, net sales increased as a 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 to business mainly involving domestic solution projects.
   ■ Operating profit
   Operating profit increased 386.3% year on year to ¥977 million. Operating profit was affected by an increase in the gross profit margin largely as a result of the Company collecting additional funds and implementing 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 and administrative expenses increased relative to the same period of the previous fiscal year, yet remain below plan levels at this point in time.
2. • 2 -