ORGANO CORPORATION
Financial Results for First Half of Fiscal Year Ending March 31, 2025
Securities Code: 6368
November 5, 2024
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Contents
- First-HalfResults for Fiscal Year Ending March 2025
- Full-YearForecast for Fiscal Year Ending March 2025
- Topics
- Company Overview and Business Profile
- Figures in these materials are rounded down to the nearest unit of indication. Percentages, year-on-year comparisons, comparisons with the 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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First-Half Results for FY Ending 03/2025: Overview of Orders, Sales, and Operating Profit
Order Analysis
(Billions of yen) | |||||
Sales Analysis | Operating Profit Analysis | ||||
+0.7 | +1.1 | +1.0 | |||
+1.9 | |||||
+0.6 | |||||
+13.7 | 92.7 | +1.5 | 87.0 | ||
76.1 | +1.3 | ||||
+16.6 billion | +5.7 billion | ||||
YoY | vs. Plan | ||||
09/2023 Actual | 09/2024 Actual | Initial Plan |
■ General Industry
■ Electronics Industry ■ Electric Power/Water Supply and Sewage ■ Performance Products
+0.8 | +0.9 +0.5 | |||
+6.7 | 74.3 | +3.3 | ||
70.0 | ||||
65.4 | +1.2 | -0.5 | ||
+8.8 billion | +4.3 billion | |||
YoY | vs. Plan | |||
09/2023 Actual | 09/2024 Actual | Initial Plan |
■ General Industry
■ Electronics Industry ■ Electric Power/Water Supply and Sewage ■ Performance Products
+2.4 | +1.2 | |||
+2.6 | 11.4 | +2.4 | ||
-1.3 | -0.6 | 8.5 | ||
7.8 | ||||
+3.6 billion | +2.9 billion | |||
YoY | ||||
vs. Plan | ||||
09/2023 Actual | 09/2024 Actual | Initial Plan |
Increasein SG&A
Improvement in Profit Margin
Expansion of Sales
[Orders]
In Electronics Industry, orders grew year on year for large-scaleprojects overseas, including and Taiwan China.
Compared to the plan,in Electronics Industry, overseas project growth covered for the impact of later-than-expected order timing of domestic large- scale projects, while orders for General Industry, Electric Power/Water Supply and Sewage, and PerformanceProducts performedstrongly.
[Sales] | [Operating Profit] |
In Electronics Industry, sales grew year on year for | In addition to the effects of growing sales, |
Plant and Service Solutions while sales performed | improved Plant Division profitability, growth in |
strongly for General Industry and Performance Products. | Service Solutions, Performance Products, and other |
Compared to the plan,the progress of sales in the Plant | factors increased theprofit margin year on year |
Division was below expectations in Electronics Industry | and covered our personnel expenses and other |
and General Industry, while sales grew for Service | SG&A expenses. Compared to the plan, the profit |
Solutions. Sales performed strongly for Performance | margin increased by more than expected for both |
Products. | Plant and Service Solutions. |
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First-Half Results for FY Ending 03/2025: Consolidated Statement of Income
FY Ended | FY Ending 03/2025 | ||||||
(Millions of yen) | 03/2024 | Year-on-Year | Vs. Initial Plan | ||||
1st Half Plan | 1st Half Actual | ||||||
1st Half Actual | |||||||
Orders Received | 76,150 | 87,000 | 92,755 | +16,605 | +5,755 | ||
(+21.8%) | (+6.6%) | ||||||
Net Sales | 65,469 | 70,000 | 74,323 | +8,854 | +4,323 | ||
(+13.5%) | (+6.2%) | ||||||
Gross Profit | 18,129 | 19,500 | 23,143 | +5,014 | +3,643 | ||
(+27.7%) | (+18.7%) | ||||||
(%) | 27.7% | 27.9% | 31.1% | +3.4 pt | +3.2 pt | ||
SG&A | 10,274 | 11,000 | 11,663 | +1,389 | +663 | ||
(+13.5%) | (+6.0%) | ||||||
Operating Profit | 7,855 | 8,500 | 11,480 | +3,625 | +2,980 | ||
(+46.1%) | (+35.1%) | ||||||
(%) | 12.0% | 12.1% | 15.4% | +3.4 pt | +3.3 pt | ||
Profit Attributable to | 5,538 | 5,500 | 8,134 | +2,596 | +2,634 | ||
Owners of Parent | (+46.9%) | (+47.9%) | |||||
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First-Half Results for FY Ending 03/2025: Results by Segment
FY Ended | FY Ending 03/2025 | ||||||||||
Vs. Initial | Vs. Previous | ||||||||||
Previous | |||||||||||
(Millions of yen) | 03/2024 | Year-on-Year | |||||||||
1st Half Plan | Forecast | 1st Half Actual | Plan | Forecast | |||||||
1st Half Actual | (07/31/2024) | ||||||||||
Orders Received | 76,150 | 87,000 | 90,000 | 92,755 | +16,605 | +5,755 | +2,755 | ||||
(+21.8%) | (+6.6%) | (+3.1%) | |||||||||
Company | |||||||||||
Operating Profit | 7,855 | 8,500 | 9,500 | 11,480 | +8,854 | +4,323 | +1,323 | ||||
Net Sales | 65,469 | 70,000 | 73,000 | 74,323 | (+13.5%) | (+6.2%) | (+1.8%) | ||||
+3,625 | +2,980 | +1,980 | |||||||||
(+46.1%) | (+35.1%) | (+20.8%) | |||||||||
(%) | 12.0% | 12.1% | 13.0% | 15.4% | +3.4 pt | +3.3 pt | +2.4 pt | ||||
TreatmentWater Engineering | Orders Received | 64,324 | 75,500 | 78,000 | 80,166 | +15,842 | +4,666 | +2,166 | |||
(+24.6%) | (+6.2%) | (+2.8%) | |||||||||
Net Sales | 53,890 | 58,500 | 61,000 | 61,885 | +7,995 | +3,385 | +885 | ||||
(+14.8%) | (+5.8%) | (+1.5%) | |||||||||
Operating Profit | 6,448 | 7,100 | 8,000 | 9,802 | +3,354 | +2,702 | +1,802 | ||||
(+52.0%) | (+38.1%) | (+22.5%) | |||||||||
(%) | |||||||||||
12.0% | 12.1% | 13.1% | 15.8% | +3.8 pt | +3.7 pt | +2.7 pt | |||||
Products | Orders Received | 11,825 | 11,500 | 12,000 | 12,589 | +764 | +1,089 | +589 | |||
+858 | +937 | +437 | |||||||||
(+6.5%) | (+9.5%) | (+4.9%) | |||||||||
Performance | Net Sales | 11,579 | 11,500 | 12,000 | 12,437 | (+7.4%) | (+8.1%) | (+3.6%) | |||
Operating Profit | 1,406 | 1,400 | 1,500 | 1,677 | +271 | +277 | +177 | ||||
(+19.3%) | (+19.8%) | (+11.8%) | |||||||||
(%) | 12.1% | 12.2% | 12.5% | 13.5% | |||||||
+1.4 pt | +1.3 pt | +1.0 pt | |||||||||
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First-Half Results for FY Ending 03/2025: Orders Received and Net Sales by Region
(Millions of yen) | ||||
Orders Received and Net Sales by Region | Orders Received and Net Sales by Overseas Region | |||
Orders Received | Net Sales | |||||
Overseas | Domestic | Overseas | Domestic | |||
Overseas Ratio | Overseas Ratio | |||||
92,755 | 87,000 | 74,323 | 70,000 | |||
65,469 | ||||||
76,150 | ||||||
21,409 | 37,344 | 27,000 | 21,327 | 30,110 | 24,500 | |
28.1% | 40.3% | 31.0% | 32.6% | 40.5% | 35.0% | |
54,741 | 55,411 | 60,000 | 44,141 | 44,213 | 45,500 | |
09/2023 Actual 09/2024 Actual | 09/2024 Plan | 09/2023 Actual | 09/2024 Actual | 09/2024 Plan | ||
(Initial) | (Initial) |
- Orders received expanded overseas, including Taiwan andChina,both year on year and versus the plan. Later-than-expected domestic large-scale project orders had an impact but overall orders received maintained a high level.
- Net sales receivedcontributionfrom growth overseas, including strong progress in construction for large-scale projects both year on year and versus the plan. Domestically, progress in the Plant Division was below expectations,but Service Solutions, etc. performed strongly.
Orders Received | Net Sales | ||||||||||||||||||||||||||||||||||||||
SE Asia/US | China | Taiwan | SE Asia/US | China | Taiwan | ||||||||||||||||||||||||||||||||||
37,344 | 30,110 | ||||||||||||||||||||||||||||||||||||||
2,589 | |||||||||||||||||||||||||||||||||||||||
7,878 | 27,000 | 7,502 | 24,500 | ||||||||||||||||||||||||||||||||||||
21,327 | |||||||||||||||||||||||||||||||||||||||
21,409 | 3,500 | ||||||||||||||||||||||||||||||||||||||
3,500 | |||||||||||||||||||||||||||||||||||||||
7,932 | 6,500 | 6,145 | 9,322 | 8,000 | |||||||||||||||||||||||||||||||||||
2,335 | 26,877 | 6,208 | |||||||||||||||||||||||||||||||||||||
11,142 | 17,000 | 13,285 | 13,000 | ||||||||||||||||||||||||||||||||||||
8,973 | |||||||||||||||||||||||||||||||||||||||
09/2023 Actual | 09/2024 Actual | 09/2024 Plan | 09/2023 Actual | 09/2024 Actual | 09/2024 Plan | ||||||||||||||||||||||||||||||||||
(Initial) | (Initial) | ||||||||||||||||||||||||||||||||||||||
- Orders received grew significantly with large-scale investment in cutting-edge semiconductors in Taiwan and large-scalesemiconductor projects in China.
- Net sales grew year on year and versus the plan mainly due to sales of Plant projects for which orders were received in Taiwan,China, etc. Progress of construction,etc.was better thanexpected for Plant projects in SE Asia.
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First-Half Results for FY Ending 03/2025: Sales by Business Segment and Department
(Millions of yen) | ||||
Water Treatment Engineering Unit: Sales by Department | Performance Products Business Unit: Sales by Department | |||
Service Solutions | Plant | Service Solutions Ratio | ||||||||
61,885 | 58,500 | |||||||||
53,890 | ||||||||||
24,281 | 30,263 | 25,000 | ||||||||
45.1% | 48.9% | 42.7% | ||||||||||||
29,609 | 31,622 | 33,500 | ||||||||||||
09/2023 Actual | 09/2024 Actual | 09/2024 Plan | ||||||||||||
(Initial) | ||||||||||||||
- Although progress in the Plant Division was below expectations domestically, Plant performancewas strong overseas, and sales continued to be maintainedat a high level.
- In Service Solutions, factors contributing to sales included growthof facility- owned services and increases in maintenanceand projects for modifications.
Food Products | Equipment and Functional Materials | Chemicals | |||||||||||||||
11,579 | 12,437 | 11,500 | |||||||||||||||
3,305 | 3,094 | 2,600 | |||||||||||||||
4,028 | 4,710 | 4,500 | |||||||||||||||
4,246 | 4,634 | 4,400 | |||||||||||||||
09/2023 Actual | 09/2024 Actual | 09/2024 Plan | |||||||||||||||
(Initial) | |||||||||||||||||
- Sales of water treatment chemicals such as those for RO membrane treatment and wastewater treatment for Electronics Industry, functional materials used in advanced separation and refinement of electronics materials such as chemicals and solvents used in semiconductor manufacturing, among others performed strongly.
- Separation and refinement business, which had been included in Service Solutions in the Water Treatment Engineering Unit is now included in Equipment and Functional Materials in the Performance Products Business Unit. Graphs reflect the change.
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First-Half Results for FY Ending 03/2025: Orders and Sales by Market (Water Treatment Engineering Unit)
Orders by Market (Water Treatment Engineering Unit)
ElectricPower/Water Supply and Sewage
General Industry
Electronics Industry
80,166 | 75,500 | |
64,324 | 7,382 | 6,200 |
6,688 | 17,337 | 15,800 |
15,973 | ||
41,663 | 55,448 | 53,500 |
09/2023 Actual | 09/2024 Actual | 09/2024 Plan |
(Initial) |
- For Electronics Industry, orders grew for large-scale projects in Taiwan and China, while domestically, Service Solutions performed strongly especially in facility-owned service contracts.
- General Industry received an order of an ultrapure water facility for Hyper- Kamiokande,projects associated with electronics,and other projects. Orders for facility renewal products for power plants, etc. werereceivedfor Electric Power/Water Supply and Sewage.
(Millions of yen)
Sales by Market (Water Treatment Engineering Unit)
ElectricPower/Water Supply and Sewage
General Industry
Electronics Industry
61,885 | 58,500 | |
53,890 | ||
3,243 | 2,700 | |
3,250 | 14,248 | |
14,800 | ||
13,021 | ||
37,619 | 44,395 | 41,000 |
09/2023 Actual | 09/2024 Actual | 09/2024 Plan | ||||
(Initial) | ||||||
- For Electronics Industry, sales grew mainly due to the progress in construction for Plant projects overseas and expandedService Solutions, etc. domestically.
- General Industry performs firmly in Plant and Service Solutions associated with pharmaceuticals and electronics, while sales in the Social Infrastructure area were firm for electrical power and other services.
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Contents
- First-HalfResults for Fiscal Year Ending March 2025
- Full-YearForecast for Fiscal Year Ending March 2025
- Topics
- Company Overview and Business Profile
- Figures in these materials are rounded down to the nearest unit of indication. Percentages, year-on-year comparisons, comparisons with the 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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Full-Year Forecast: Overview of Orders, Sales, and Operating Profit
Order Analysis
+0.9 | +1.5 | ||
+0.8 | +22.7 | 170.0 | +13.0 |
+0.5 | |||
+1.0 | 155.0 | ||
144.4 | |||
+25.5 billion | +15.0 billion | ||
YoY | vs. Plan | ||
03/2024 Actual | 03/2025 Forecast | Initial Plan |
■ GeneralIndustry ■ ElectronicsIndustry
■ Electric Power/Water Supply and Sewage ■ Performance Products
Sales Analysis
+1.3 | +1.0 | +1.5 | ||
+9.7 | 165.0 | +8.5 | ||
150.3 | +2.5 | 155.0 | ||
+14.6 billion | +10.0 billion | |||
YoY | vs. Plan | |||
03/2024 Actual | 03/2025 Forecast | Initial Plan |
■ GeneralIndustry ■ ElectronicsIndustry
■ Electric Power/Water Supply and Sewage ■ Performance Products
(Billions of yen)
Operating Profit Analysis
+4.2 | 28.0 | +2.9 | |
+2.8 | +2.0 | ||
22.5 | -1.7 | 23.0 | |
+5.0 billion | |||
+5.4 billion | |||
YoY | vs. Plan | ||
03/2024 Actual | 03/2025 Forecast | Initial Plan |
Increase in SG&A
Improvementin Profit Margin
Expansion of Sales
[Orders]
Year on year, and versus the plan, in Electronics Industry, we expect order growth for large-scale projects in Taiwan, China, etc. as well as expansion in Service Solutions especially in Japan. In General Industry and Electric Power/Water Supply and Sewage, orders remain on the initial plan's course, while for Performance Products, orders are strong mainly for water treatment chemicals and functional materials.
[Sales]
Year on year, and versus the plan, in Electronics Industry, we expect sales to grow. Both overseas and domestically we expect expansion, with smooth progress in construction of projects with order backlogs and strong sales in Service Solutions. In General Industry, Electric Power/Water Supply and Sewage, and Performance Products we expect sales to remain firm.
[OperatingProfit]
Year on year, and versus the plan, in Electronics Industry and other segments, we expect profit boost from expanded sales in Plant and Service Solutions. We expect to improve the profit margin from improved profitability of Plant orders and expansion of highly profitable products and services including those in Service Solutions and Performance Products. We expect to keep SG&A at the initial plan's level.
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