Organo : Report on the Financial Results for Fiscal Year Ended March 31, 2024 (1,000KB)

ORGANO CORPORATION Financial Results for Fiscal Year Ended March 31, 2024

Securities Code: 6368

May 15, 2024

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Contents

1. FY ended 03/2024 Results and Overview of FY ending 03/2025 Plan
2. Analysis of Results and Plans for Each Division
3. Medium- to Long-term Management Plan
4. Company Overview and Business Profile
5. • Figures in these materials are rounded down to the nearest unit of indication. Percentages, comparisons with the previous fiscal year and plan, and other presentations are calculated using the units of indication. Percentages are rounded to one digit past the decimal point.

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Contents

1. FY ended 03/2024 Results and Overview of FY ending 03/2025 Plan
2. Analysis of Results and Plans for Each Division
3. Medium- to Long-term Management Plan
4. Company Overview and Business Profile
5. • Figures in these materials are rounded down to the nearest unit of indication. Percentages, comparisons with the previous fiscal year and plan, and other presentations are calculated using the units of indication. Percentages are rounded to one digit past the decimal point.

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FY ended 03/2024 Results and Overview of FY ending 03/2025 Plan

Results for Year Ended March 2024

			Comparison
(Millions of yen)	03/2024 Actual	Year-on-Year	with Previous
			Forecast
			(02/02/2024)
Orders Received	144,468	-29,023	+968
(-16.7%)	(+0.7%)
Net Sales	150,356	+17,930	+356
		(+13.5%)	(+0.2%)
Operating Profit	22,544	+7,332	+544
(+48.2%)	(+2.5%)
(%)	15.0%	+3.5 pt	+0.3 pt
ROE (%)	18.4%	+3.9 pt	+1.7 pt

• Orders received decreased due to a rebound from the previous fiscal year, when we received a series of large-scale projects,however, the Service Solutions, General Industry, and others performed strongly.
• In terms of sales, good progress was made on construction of projects with order backlog in Japan and overseas. Growth in facility-owned services and other areas of the Service Solutions also contributed.
• For operating profit, theprofit margin increased due to the effects of growing sales, as well as improved order profitability, cost reductions, and other initiatives.

Plan for Year Ending March 2025

(Millions of yen) 03/2025 Plan Year-on-Year

Orders Received	155,000	+10,532
		(+7.3%)
Net Sales	155,000	+4,644
(+3.1%)
Operating Profit	23,000	+456
(+2.0%)
(%)	14.8%	-0.2 pt
ROE (%)	15.0%	-3.4 pt

• Orders received assume a high level of capital investment both within and outside of Japan, centering on the semiconductor field where investment appetite is strong.
• The sales plan calls for expansion of the Service Solutions and growing sales of water treatment chemicals and other products, in addition to progress on construction for received orders.
• For operating profit, we will maintain a profit margin of around 15%. We will reinforce investment for further growth and expandingdelivery capacity.

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FY ended 03/2024: Overview of Full-year Results

Order Analysis
	Performance Products
	Electric Power/Water Supply and Sewage
	Electronics Industry
+1.2	General Industry

Sales Analysis

Performance Products

Electric Power/Water Supply and Sewage

Electronics Industry

General Industry

(Billions of yen)

Operating Profit Analysis

Expansion of Sales

Improvement in Profit Margin

Increase in SG&A

+1.5

+1.2

+4.7

22.5

+6.7

173.4		+0.5
-33.0
	-3.2	150.0
144.4	-3.0

+1.5 +0.6

+14.3+3.0 150.3

+0.5

	+0.7
-1.6	150.0

	+4.1
15.2	-1.5

-0.2

-29.0 billion	-5.1445 billion.4
YoY	vs. Plan

		132.4	-1.0			148.4
			+17.9 billion		+0.3 billion
				YoY		vs. Plan

+7.3 billion

YoY

+6.5 billion

vs. Plan

03/2023 Actual

03/2024 Actual

Initial Plan

[Orders]

Orders were down due to a rebound decline from the previous fiscal year, when we received

1. series of large-scale projects.Orders were down in comparison to the plan due to factors including order timing that was later than expected for some projects. However, the level of capital investment centering on semiconductors remained high both in Japan and overseas.

03/2023 Actual

03/2024 Actual

Initial Plan

[Sales]

Sales compared to the previous year were higher due to factors including progress on construction for large-scale projects centering on the electronics industry, and growth of Service Solutions. Compared to the plan, although progress on some projects relatedto semiconductors was slower than expected, this shortfall was covered by higher sales in each area.

03/2023 Actual

03/2024 Actual

Initial Plan

[Operating Profit]

Compared to the previous fiscal year, in addition to the effects of growing sales, improved Plant Division profitability, growth in Service Solutions, and other factors increased the profit margin and covered our personnel expenses and other SG&A expenses. Compared to the plan, the profit margin increased by more than expected for both Plant and ServiceSolutions.

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FY ended 03/2024: Consolidated Statement of Income

		FY Ended	FY Ended 03/2024
	(Millions of yen)	03/2023		Previous			Year-on-Year	Vs. Initial	Vs. Previous
			Full-year
	Full-year	Initial Plan
		Forecast		Actual		Plan	Forecast
		Actual
			(02/02/2024)
	Orders Received	173,491	150,000	143,500		144,468	-29,023	-5,532	+968
		(-16.7%)	(-3.7%)	(+0.7%)
	Net Sales	132,426	150,000	150,000		150,356	+17,930	+356	+356
		(+13.5%)	(+0.2%)	(+0.2%)
	Gross Profit	34,976	37,000	43,000		43,841	+8,865	+6,841	+841
		(+25.3%)	(+18.5%)	(+2.0%)
(%)	26.4%	24.7%	28.7%		29.2%	+2.8 pt	+4.5 pt	+0.5 pt
	SG&A	19,763	21,000	21,000		21,297	+1,534	+297	+297
		(+7.8%)	(+1.4%)	(+1.4%)
	Operating Profit	15,212	16,000	22,000		22,544	+7,332	+6,544	+544
		(+48.2%)	(+40.9%)	(+2.5%)
(%)	11.5%	10.7%	14.7%		15.0%	+3.5 pt	+4.3 pt	+0.3 pt
	Profit Attributable to	11,730	11,200	17,000		17,310	+5,580	+6,110	+310
	Owners of Parent		(+47.6%)	(+54.6%)	(+1.8%)
	ROE (%)	14.5%	12.6%	18.4%		18.4%	+3.9 pt	+5.8 pt	+0.0 pt
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FY ended 03/2024: Results by Segment

			FY Ended	FY ended 03/2024
		(Millions of yen)	03/2023		Previous			Year-on-Year	Vs. Initial	Vs.
			Full-year
		Full-year	Initial Plan	Forecast		Previous
			Actual			Plan
			Actual		(02/02/2024)			Forecast
		Orders Received	173,491	150,000	143,500	144,468		-29,023	-5,532	+968
			(-16.7%)	(-3.7%)	(+0.7%)
	Company
	Operating Profit	15,212	16,000	22,000	22,544		+17,930	+356	+356
		Net Sales	132,426	150,000	150,000	150,356		(+13.5%)	(+0.2%)	(+0.2%)
								+7,332	+6,544	+544
								(+48.2%)	(+40.9%)	(+2.5%)
		(%)
		11.5%	10.7%	14.7%	15.0%		+3.5 pt	+4.3 pt	+0.3 pt
		Orders Received	152,422	128,200	121,500	122,122		-30,300	-6,078	+622
	TreatmentWater Engineering		(-19.9%)	(-4.7%)	(+0.5%)
	Net Sales	111,601	128,200	128,000	127,995		+16,394	-205	-5
			(+14.7%)	(-0.2%)	(-0.0%)
		Operating Profit	12,966	13,500	19,100	19,582		+6,616	+6,082	+482
			(+51.0%)	(+45.1%)	(+2.5%)
		(%)
		11.6%	10.5%	14.9%	15.3%		+3.7 pt	+4.8 pt	+0.4 pt
	Products	Orders Received	21,068	21,800	22,000	22,346		+1,278	+546	+346
		+1,536	+560	+360
								(+6.1%)	(+2.5%)	(+1.6%)
	Performance	Net Sales	20,824	21,800	22,000	22,360		(+7.4%)	(+2.6%)	(+1.6%)
	Operating Profit	2,246	2,500	2,900	2,961		+715	+461	+61
			(+31.8%)	(+18.4%)	(+2.1%)
		(%)	10.8%	11.5%	13.2%	13.2%		+2.5 pt	+1.8 pt	+0.1 pt

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FY ended 03/2024: Consolidated Balance Sheet

	FY Ended
	FY Ended
(Millions of yen)	03/2023	03/2024	Year-on-Year
Full-year	Full-year
	Actual	Actual
Cash and Deposits	15,558	17,642	+2,084
Accounts Receivable	75,683	82,226	+6,542
and Contract Assets
Merchandise,	8,909	12,609
Finished Goods, Raw	+3,700
Materials, Etc.
Investments in	9,853	27,814	+17,960
Leases
Work in Process	21,886	9,221	-12,664
Other	4,873	3,955	-918
Total Current	136,765	153,469	+16,703
Assets
Total Non-current	28,088	29,233	+1,145
Assets
Total Assets	164,854	182,703	+17,849

	FY Ended
	FY Ended
	03/2023	03/2024	Year-on-Year
	Full-year	Full-year
	Actual	Actual
Trade Payable	25,545	22,682	-2,863
Short-term	29,124	34,065	+4,940
Borrowings
Other	14,068	15,854	+1,785
Total Current	68,738	72,602	+3,863
Liabilities
Long-term	3,895	2,400	-1,495
Borrowings
Other	5,849	5,553	-295
Total Non-current	9,744	7,953	-1,790
Liabilities
Total Liabilities	78,483	80,555	+2,072
Total Net Assets	86,371	102,147	+15,776
Total Liabilities and	164,854	182,703	+17,849
Net Assets

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FY ending 03/2025: Overview of Full-year Plan

Order Analysis

Electric Power/Water Supply and Sewage

General Industry

Electronics Industry

Performance Products
+0.5	+0.8
	155.0
	+10.0
144.4	-0.8

+10.5 billion YoY

143.4

03/2024 Actual

03/2025 Plan

[Orders]

The plan assumes the receipt of orders for large

projects in Japan for cutting-edge semiconductors. General Industry and Electric Power/Water Supply and

Sewage are expected to maintain a high level of orders. For Performance Products, a review of the

business structure will be carried out aimed at improving profitability in the Food Products area, and

unprofitable business will be reorganized.

Sales Analysis

Electric Power/Water Supply and Sewage

General Industry

Electronics Industry

Performance Products

	+1.3
	+2.5	155.0
	+1.6
150.3	-0.8
	149.3
	+4.6 billion YoY

03/2024 Actual

03/2025 Plan

[Sales]

The plan calls for progress in construction for large-

scale projects in the Electronics Industry, General Industry, and Electric Power/Water Supply and Sewage

businesses, and for higher sales resulting from factors including expansion of Service Solutions. For

Performance Products, a review of the business structure will be carried out aimed at improving

profitability in the Food Products area, and unprofitable business will be reorganized.

(Billions of yen)

Operating Profit Analysis

Expansion of Sales

Improvement in Profit Margin

Increase in SG&A

	+0.8
	+1.3
22.5	-1.7	23.0
	+0.4 billion YoY

03/2024 Actual

03/2025 Plan

[Operating Profit]

The effects of growing sales in the Water Treatment

Engineering Unit, including Plant and Service Solutions, will cover rising personnel expenses and other SG&A

expenses. Some improvement in the profit margin is expected.

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FY ending 03/2025: Consolidated Statement of Income (Plan)

		FY ended 03/2024	FY ending 03/2025		1st Half	Full-year
(Millions of yen)
1st Half	Full-year
1st Half Plan	Full-year Plan		Comparison	Comparison
		Actual	Actual
Orders Received		76,150	144,468	87,000	155,000		+10,850	+10,532
	(+14.2%)	(+7.3%)
Net Sales	65,469	150,356	70,000	155,000		+4,531	+4,644
	(+6.9%)	(+3.1%)
Gross Profit	18,129	43,841	19,500	46,000		+1,371	+2,159
	(+7.6%)	(+4.9%)
(%)		27.7%	29.2%	27.9%	29.7%		+0.2 pt	+0.5 pt
SG&A	10,274	21,297	11,000	23,000		+726	+1,703
	(+7.1%)	(+8.0%)
Operating Profit	7,855	22,544	8,500	23,000		+645	+456
	(+8.2%)	(+2.0%)
(%)		12.0%	15.0%	12.1%	14.8%		+0.1 pt	-0.2 pt
Profit Attributable	5,538	17,310	5,500	16,100		-38	-1,210
to Owners of Parent		(-0.7%)	(-7.0%)
ROE (%)	-	18.4%	-	15.0%		-	-3.4 pt

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