Interim report
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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, 2027 <under Japanese GAAP> August 3, 2026 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: Minoru Ando, General Manager of Accounting Dept., Corporate Management and Planning TEL: +81-3-5635-5111 Scheduled date to commence dividend payments: − Preparation of supplementary material on financial results: Yes Holding of financial results briefing: 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, 2027 (from April 1, 2026 to June 30, 2026) (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, 2026 42,183 10.7 6,612 (4.9) 6,762 4.5 3,436 (5.7) June 30, 2025 38,110 20.5 6,953 73.8 6,471 48.1 3,642 36.1 Note: Comprehensive income: Three months ended June 30, 2026 ¥ 3,759 million [48.6%] Three months ended June 30, 2025 ¥ 2,530 million [(23.6)%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 74.73 – June 30, 2025 79.25 – (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % June 30, 2026 221,707 141,890 64.0 March 31, 2026 224,867 142,962 63.6 (Reference) Equity: As of June 30, 2026 ¥ 141,890 million As of March 31, 2026 ¥ 142,962 million
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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 March 31, 2026 – 95.00 – 105.00 200.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 110.00 – 22.00 – Note: Revisions to the forecast of cash dividends most recently announced: None Note: As the Company will implement a five-for-one share split of its common shares effective October 1, 2026, the year- end dividend per share for the fiscal year ending March 31, 2027 (forecast) is stated to reflect the impact of this share split, and the total amount of cash dividends (annual) is indicated as “–”. Excluding the impact of the share split, for the fiscal year ending March 31, 2027 (forecast), the year-end dividend per share would be ¥110 and annual dividends per share would be ¥220. 3. Consolidated earnings forecasts for the fiscal year ending March 31, 202 7 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 90,000 8.7 17,500 0.7 17,500 0.9 12,000 4.1 260.97 Fiscal year ending March 31, 2027 200,000 12.6 40,000 6.2 40,000 4.9 30,000 5.6 130.48 Note: Revisions to the earnings forecasts most recently announced: None Note: The consolidated earnings forecast for the fiscal year ending March 31, 2027 includes the impact of the share split on basic earnings per share. Excluding the impact of the share split, basic earnings per share would be ¥652.42.
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Application of specific accounting for preparing the quarterly consolidated financial statements: Yes Note: For more details, please refer to “Application of speci fic accounting for preparing the quarterly consolidated financial statements” on page 8 of the attached material. (3) Changes in accounting policies, changes in accounting estimates, and restatement a. Changes in accounting policies due to revisions to accounting standards and other regulations: None b. Changes in accounting policies due to other reasons: None c. Changes in accounting estimates: None d. Restatement: None (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, 2026 46,359,700 shares As of March 31, 2026 46,359,700 shares b. Number of treasury shares at the end of the period As of June 30, 2026 377,352 shares As of March 31, 2026 377,352 shares c. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) For the three months ended June 30, 2026 45,982,348 shares For the three months ended June 30, 2025 45,965,994 shares Note: 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). * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None * 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 ma terials 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.
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- 1 - 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 specific accounting for preparing the quarterly consolidated financial statements ............................................................................................................................................ 8 Additional information ...................................................................................................................... 8 Notes to quarterly consolidated statement of cash flows ................................................................. 9 Segment information, etc. ................................................................................................................ 10
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- 2 - 1. Qualitative information regarding financial results for the first three months (1) Explanation regarding operating results During the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026), the global economy continued to face uncertainty, reflecting factors such as concerns over rising energy prices stemming from heightened tensions in the Middle East followin g the military conflict between the U.S. and Iran. Although weakness was seen in some regions, the global economy as a whole continued a moderate recovery. The Japanese economy likewise remained on a gradual recovery trend, supported by improvements in employment and income conditions and by the effects of various government policies. In the electronics industry, the Organo Group’s main market, demand for advanced semiconductors, such as advanced logic and high- bandwidth memory (HBM) , remained at a very hig h level, driven by the rapid expansion of demand related to generative artificial intelligence (AI) and the full-scale ramp-up of investment in data centers. In the general industry, such as pharmaceuticals and food, as well as electronics peripherals, and in the social infrastructure field, such as electric power/water supply and sewage, steady growth has been seen mainly driven by demand for maintenance services. Under these conditions, while promoting order-taking and delivery activities for large-scale projects in Japan and overseas, the Organo Group is advancing a range of measures. These include expanding delivery capacity by enhanc ing its engineering structure globally, strengthening its structure to drive growth in the Service Solutions Division, and promoting technology development aimed at deepening the Group’s core technologies and creating new value. The Group is also advancing efforts to strengthen its ma nagement foundation, such as reinforcing its workforce, developing human resources, and improving operational efficiency through the use of AI and digital technologies. As a result, for the first three months ended June 30, 2026, orders received increased by 85.0% year on year to ¥110,235 million, net sales increased by 10.7% year on year to ¥42,183 million, operating profit decreased by 4.9% year on year to ¥6,612 million, ordinary profit increased by 4.5% to ¥6,762 million, profit attributable to owners of parent decreased by 5.7% year on year to ¥3,436 million, and the carry- over balance for order backlog as of June 30, 2026 was up 34.6% year on year to ¥165,132 million. Results by segment are as follows. [Water Treatment Engineering Business Unit] ■Orders received Orders received increased 93.0% year on year to ¥102,474 million. In the electronics industry, orders received increased substantially, driven by large -scale semiconductor-related projects. In Taiwan, the Group secured multiple large-scale projects, and it also secured large -scale projects in the U.S., Japan, and China. In addition, solutions projects, including facility- owned services and various maintenance services, also remained strong. In the general industry, solutions projects such as various maintenance services remained robust. In the social infrastructure field, orders received increased, primarily due to securing a contract for a thermal power plant project. ■Net sales Net sales increased 8.8% year on year to ¥34,923 million. In the electronics industry, net sales increased as sales in Taiwan, where the Group continued to receive orders for large -scale projects, remained at a high level, while large -scale projects in the U.S. continued to progress steadily and solutions projects, including facility -owned services, also remained strong. In the general industry and the social infrastructure field, net sales remained at the same level as the same period of the previous fiscal year, as a result of steady performance driven primarily by solutions. ■Operating profit Operating profit decreased 6.7% year on year to ¥5,702 million. Although net sales increased, primarily in the electronics industry, operating profit declined. This was because the gross profit margin fell , reflecting the absence of the high-margin plant projects that were recognized as sales in the same period of the previous fiscal year, and because selling, general and administrative expenses rose due to higher personnel expenses and IT-related expenditures.
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- 3 - [Performance Products Business Unit] ■Orders received/Net sales Orders received increased 19.6% year on year to ¥7,760 million and net sales increased 20.8% year on year to ¥7,259 million. Sales of water treatment chemicals for the electronics industry grew and sales of functional materials performed strongly. In addition, large-scale projects, etc. also made a contribution to performance in the Food Products Division. As a result, both orders received and net sales increased in all fields. ■Operating profit Operating profit increased 8.0% year on year to ¥910 million. Although selling, general and administrative expenses rose, primarily due to higher personnel expenses, operating profit increased on the back of a substantial increase in net sales. (2) Explanation regarding financial position Assets, liabilities and net assets Assets Assets as of June 30, 2026 amounted to ¥221,707 million, a decrease of ¥3,159 million from the previous fiscal year end. This was mainly due to a decrease of ¥3,216 million in cash and deposits and a decrease of ¥2,422 million in notes and accounts receivable - trade, and contract assets, despite an increase of ¥1,061 million in inventories. Liabilities Liabilities as of June 30, 2026 amounted to ¥79,817 million, a decrease of ¥2,086 million from the previous fiscal year end. This was mainly due to a decrease of ¥2,851 million in accounts payable - trade and a decrease of ¥1,089 million in income taxes payable, despite an increase of ¥2,960 million in short- term borrowings. Net Assets Net assets as of June 30, 2026 amounted to ¥141,890 million, a decrease of ¥1,072 million from the previous fiscal year end. This was mainly due to a decrease of ¥1,395 million in retained earnings, primarily reflecting the payment of dividends. (3) Explanation regarding consolidated earnings forecasts and other forward-looking statements Regarding the earnings forecast, based on recent results and other factors, the Group has revised its forecast for orders received announced on May 13, 2026. Orders received for the six months ending September 30, 2026, are expected to be ¥170,000 million (up 30.8% from the previous forecast), and full-year orders received are expected to be ¥300,000 million (up 30.4% from the previous forecast). There is no change from the previous forecast for net sales or profits. The Group expects the amount of orders received to increase, driven by an increase in investment projects in the overseas electronics industry and by the expansion of the Group’s scope of work for projects in the U.S. beyond initial expectations. In addition, in some projects, delivery periods were set longer than initially anticipated, which brought forward the timing of orders received. Because the impact of the increase in orders received on net sales and profits is expected to become significant from the next fiscal year onward, the Group has not revised its outlook for net sales or profits for the current fiscal year.
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- 4 - 2. Quarterly consolidated financial statements and significant notes thereto (1) C onsolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 31,055 27,838 Notes and accounts receivable - trade, and contract assets 81,192 78,769 Electronically recorded monetary claims - operating 3,991 4,805 Investments in leases 53,856 53,914 Merchandise and finished goods 8,552 8,541 Work in process 5,386 6,544 Raw materials and supplies 4,625 4,539 Other 3,426 3,288 Allowance for doubtful accounts (82) (84) Total current assets 192,002 188,158 Non-current assets Property, plant and equipment Buildings and structures 21,376 21,630 Accumulated depreciation (14,356) (14,548) Buildings and structures, net 7,019 7,081 Machinery, equipment and vehicles 7,551 7,564 Accumulated depreciation (6,464) (6,527) Machinery, equipment and vehicles, net 1,087 1,036 Land 12,570 12,576 Construction in progress 246 470 Other 7,483 7,473 Accumulated depreciation (6,004) (6,056) Other, net 1,478 1,416 Total property, plant and equipment 22,402 22,581 Intangible assets 1,572 1,813 Investments and other assets Investment securities 2,723 2,861 Retirement benefit asset 3,262 3,296 Deferred tax assets 2,535 2,608 Other 509 529 Allowance for doubtful accounts (141) (140) Total investments and other assets 8,889 9,155 Total non-current assets 32,864 33,549 Total assets 224,867 221,707
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 19,953 17,101 Electronically recorded obligations - operating 2,959 2,653 Short-term borrowings 28,402 31,363 Income taxes payable 6,512 5,422 Contract liabilities 3,516 3,911 Provision for bonuses 2,338 1,399 Provision for product warranties 1,324 1,373 Provision for loss on construction contracts 18 12 Provision for share awards for directors (and other officers) 90 118 Other 5,823 5,468 Total current liabilities 70,939 68,824 Non-current liabilities Long-term borrowings 6,000 6,000 Deferred tax liabilities 90 88 Retirement benefit liability 4,702 4,723 Other 172 180 Total non-current liabilities 10,965 10,992 Total liabilities 81,904 79,817 Net assets Shareholders’ equity Share capital 8,225 8,225 Capital surplus 7,508 7,508 Retained earnings 120,916 119,520 Treasury shares (642) (642) Total shareholders’ equity 136,008 134,612 Accumulated other comprehensive income Valuation difference on available-for-sale securities 324 379 Foreign currency translation adjustment 4,624 4,954 Remeasurements of defined benefit plans 2,005 1,943 Total accumulated other comprehensive income 6,954 7,277 Total net assets 142,962 141,890 Total liabilities and net assets 224,867 221,707
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- 6 - (2) C onsolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (cumulative) (Millions of yen) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Net sales 38,110 42,183 Cost of sales 24,980 28,399 Gross profit 13,130 13,784 Selling, general and administrative expenses 6,176 7,171 Operating profit 6,953 6,612 Non-operating income Interest income 32 61 Dividend income 8 6 Foreign exchange gains – 142 Share of profit of entities accounted for using equity method 1 15 Other 26 23 Total non-operating income 69 249 Non-operating expenses Interest expenses 65 96 Foreign exchange losses 483 – Other 2 4 Total non-operating expenses 551 100 Ordinary profit 6,471 6,762 Extraordinary income Gain on sale of non-current assets 0 0 Gain on sale of shares of subsidiaries and associates 40 – Total extraordinary income 41 0 Extraordinary losses Loss on sale of non-current assets – 0 Loss on abandonment of non-current assets 0 0 Total extraordinary losses 0 0 Profit before income taxes 6,511 6,761 Income taxes 2,868 3,325 Profit 3,642 3,436 Profit attributable to owners of parent 3,642 3,436
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- 7 - Consolidated statement of comprehensive income (cumulative) (Millions of yen) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Profit 3,642 3,436 Other comprehensive income Valuation difference on available-for-sale securities (5) 54 Foreign currency translation adjustment (1,063) 327 Remeasurements of defined benefit plans, net of tax (32) (61) Share of other comprehensive income of entities accounted for using equity method (10) 2 Total other comprehensive income (1,112) 323 Comprehensive income 2,530 3,759 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,530 3,759
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- 8 - (3) Notes to quarterly consolidated financial statements Notes on premise of going concern No items to report Notes on substantial changes in the amount of shareholders’ equity No items to report Application of specific accounting for preparing the quarterly consolidated financial statements Calculation of tax expenses The Company and some of its consolidated subsidiaries have reasonably estimated the effective tax rate after the application of tax effect accounting to the profit before income taxes for the fiscal year including the first quarter ended June 30, 2026, and tax expenses are calculated by multiplying profit before income taxes by this estimated effective tax rate. However, in cases where the calculation of tax expenses using such estimated effective tax rate yields a result that is not reasonable to a significant extent, the amount of significant difference other than temporary differences, etc. is added to or deducted from the profit before income taxes, and the result is multiplied by the statutory income tax rate. Additional information Share split and partial amendments to the Articles of Incorporation in relation to the share split At a meeting of the Board of Directors held on May 13, 2026, the Company resolved to implement a share split and make partial amendments to the Articles of Incorporation in relation to the share split, which will take effect on October 1, 2026. 1. Purpose of the share split The purpose of the share split is to create a more investment-friendly environment by reducing the price per investment unit of the Company’s shares so as to improve liquidity of the shares and broaden the investor base. 2. Outline of the share split (1) Method of share split The Company will implement a five -for-one share split of its common s hares owned by shareholders recorded in the closing register of shareholders with a record date of September 30, 2026. (2) Increase in the number of shares due to the share split (i) Total number of issued shares before the share split 46,359,700 shares (ii) Increase in the number of shares due to the share split 185,438,800 shares (iii) Total number of issued shares after the share split 231,798,500 shares (iv) Total number of shares authorized to be issued after the share split 507,840,000 shares (3) Schedule of the share split Public notice of record date: September 14, 2026 (scheduled) Record date: September 30, 2026 Effective date: October 1, 2026 (4) Impact on per share information The per-share information, assuming that the share split had been implemented at the beginning of the fiscal year ended March 31, 2026 is as follows. Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Basic earnings per share ¥15.85 ¥14.95
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- 9 - 3. Partial amendments to the Articles of Incorporation in relation to the share split (1) Reason for the amendments to the Articles of Incorporation In conjunction with the share split, pursuant to Article 184, paragraph 2 of the Companies Act, the Company will amend the total number of authorized shares prescribed in Article 6 (Total Number of Shares Authorized to Be Issued) of the current Articles of Incorporation on October 1, 2026. (2) Details of the amendments to the Articles of Incorporation The details of the amendments are as follows. (Underlines indicate amended sections.) Current Articles of Incorporation Proposed Amendments Article 6. (Total Number of Shares Authorized to Be Issued) Article 6. (Total N umber of Shares Authorized to Be Issued) The total number of shares authorized to be issued by the Company shall be 101,568,000 shares. The total number of shares authorized to be issued by the Company shall be 507,840,000 shares. (3) Schedule of the amendments to the Articles of Incorporation Date of Board of Directors resolution: May 13, 2026 Effective date: October 1, 2026 4. Other The amount of the Company’s share capital will not change as a result of the share split. Notes to quarterly consolidated statement of cash flows No quarterly consolidated statement of cash flows for the three months ended June 30, 2026 has been prepared. Depreciation (including amortization of intangible assets) for the three months ended June 30, 2026 is as follows. Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Depreciation 451 million yen 495 million yen
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- 10 - Segment information, etc. [Segment information] I Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) 1. Information relating to net sales and profit by each reportable segment (Millions of yen) Reportable Segment Adjustment Amount recorded in the consolidated statement of income (Note) Water Treatment Engineering Business Unit Performance Products Business Unit Total Net sales Sales to external customers 32,101 6,009 38,110 – 38,110 Intersegment sales or transfers 0 94 94 (94) – Total 32,102 6,103 38,205 (94) 38,110 Segment profit 6,110 843 6,953 – 6,953 Note: The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit shown in the consolidated statement of income. II Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) 1. Information relating to net sales and profit by each reportable segment (Millions of yen) Reportable Segment Adjustment Amount recorded in the consolidated statement of income (Note) Water Treatment Engineering Business Unit Performance Products Business Unit Total Net sales Sales to external customers 34,923 7,259 42,183 – 42,183 Intersegment sales or transfers 0 99 99 (99) – Total 34,924 7,358 42,282 (99) 42,183 Segment profit 5,702 910 6,612 – 6,612 Note: The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit shown in the consolidated statement of income.