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Organo Corporation

Report on the Second Quarter Financial Results for the Term Ending March 31, 2015

November 10, 2014

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Report on the Second QuarterFinancial Results and Forecasts for FY2014

Hiroyuki Uchida, President

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The Consolidated Organo Group

Organo Technology Co., Ltd. < Taiwan >

Organo (Suzhou) Water Treatment Co., Ltd.

< China >

Organo (Asia) Sdn. Bhd.< Malaysia >

Organo (Thailand) Co., Ltd. < Thailand >

Ref ; Non-consolidated CompaniesOrgano (Singapore) Pte Ltd <Singapore>

Organo (Vietnam) Co., Ltd. <Vietnam>PT Lautan Organo Water <Indonesia>

Organo CorporationOrgano Plant Service Corporation

Organo Food Tech CorporationOrgano Acty Corporation

Organo Eco Tech Corporation< Japan >

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09/2013Result

09/2014Plan

09/2014Result

Year on YearChange

Change f romInitial Plan

Orders Receiv ed 32,354 35,000 35,704 + 3,350 + 704

Net Sales 26,791 30,000 28,633 1,842 1,367

Gross Prof it 6,447 6,300 6,115 332 185

(%) 24.1 21.0 21.4 2.7 pt + 0.4 pt

SG&A 6,877 6,800 6,547 330 253

Operating Income 429 500 432 3 + 68

Ordinary Income 229 550 444 215 + 106

Net Income 134 300 583 449 283

Financial Results of the Second Quarter, FY2014(millions of yen)

5

22,833 25,823

9,521

9,881

0

10,000

20,000

30,000

40,000

09/2013 09/2014

■ Water Treatment Engineering ■ Functional Product

32,354

35,704

17,464 19,248

9,326 9,385

0

10,000

20,000

30,000

40,000

09/2013 09/2014

26,791

Year onYear

Change+ 1,784

Year onYear

Change+ 59

28,633

-1,000 -1,029

570 597

-1,500

-1,000

-500

0

500

1,000

1,500

09/2013 09/2014

∆ 429Year on

YearChange

+ 27

Year onYear

Change∆ 29

∆ 432Year on

YearChange+ 360

Year onYear

Change+ 2,990

Financial Results of the Second Quarter FY2014(by Business Segment)

Operating IncomeOrders Received Net Sales(millions of yen) (millions of yen) (millions of yen)

[Water Treatment Engineering] Orders increased, primarily for plants in the domestic electronics industries and municipal water and sewage treatment. Sales climbed in the domestic electronics industries and general industries, despite a decline in the overseas electronics industries. Operating income decreased, mainly due to a decline in profitability, despite decreased SG&A expenses.[Functional Products] Both orders and sales remained unchanged from the same period of the previous year. Operating income increased due to decrease in SG&A expenses.

6

7,379 8,502

10,085 10,747

0

10,000

20,000

09/2013 09/2014

Plant Business Solution Business

17,464

19,248

Year onYear

Change+ 1,123

Year onYear

Change+ 662

8,677 9,606

8,787 9,642

0

10,000

20,000

09/2013 09/2014

Electronics Industry General Industry

Year onYear

Change+ 855

Year onYear

Change+ 929

Sales by Business Segment and Customer（ Water Treatment Engineering ）

Sales by CustomerSales by Business Segment

(millions of yen) 19,248

17,464

(millions of yen)

[Plant Business] Sales increased, primarily for plants in the domestic electronics industries.[Solution Business] Sales grew in overall industries in Japan and overseas.

[Electronics Industry] Sales increased in both plants and maintenance business in Japan, despite declined in the overseas.

[General Industry] Sales increased, chiefly in plants for domestic pharmaceuticals industry and wastewater treatment plants in Japan.

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26,164 25,834

20,782

24,317

4,059 3,732

6,009

4,316

13.4% 12.6%

22.4%

15.1%

0.0%

20.0%

40.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

09/2011 09/2012 09/2013 09/2014

Domestic Overseas Overseas Ratio

29,566

1,518 954

1,576 1,119

1,905 2,203

3,732

2,659

636 574

700

539

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

09/2011 09/2012 09/2013 09/2014

Southeast Asia Taiwan China

6,009

Year onYear

Change∆ 161

Year onYear

Change∆ 1,073

Year onYear

Change∆ 457

Year onYear

Change∆ 1,693

Year onYear

Change+ 3,535

26,791

3,732

30,223

4,059

Sales by RegionSales by Overseas RegionDomestic and Overseas Sales

（millions of yen） （millions of yen）

28,633

4,316

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Analysis of Operating Income of the Second Quarter, FY 2014 (by Factor)

(millions of yen)

*The sales increase and profit ratio decrease are calculated using the gross profit margin.

09/2013 09/2014

Profit RatioDecrease∆ 776

SG&ADecrease

+ 330

Increase inSales+ 443

∆ 429 ∆ 432

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44,252 43,340

7,857 7,170

24,742 24,297

03/2014 09/2014

25,169 24,980

41,415 44,237

5,591

03/2014 09/2014

74,80876,852

(∆ 4.677)

(+ 2,822)

(∆ 189)

(∆ 445)

(∆ 687)

(∆ 912)

Balance Sheet

Liabilities and Net AssetsAssets

(millions of yen) (millions of yen)Cash on Handand Deposits

10,268

Current Assets and Others

Fixed Assets

CurrentLiabilities

Long-termLiabilities

Net Assets

74,80876,852

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Major Efforts in the First Half of FY2014

◆Launched new slime control chemical containing non-chlorinatedoxidant (sales commenced in July 2014)

Contains oxidant uniquely developed by the Company High safety Superb disinfect and algicidal effect Low-level metal corrosiveness and degradation effect

to RO membranes High stability Low environmental impact

For Cooling water;ORBLADE J Series

For RO membrane;ORPERSION E Series

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◆ Succeeded in developing technology that continuously purifies ceramide from rice bran

“New Simulated Moving-Bed System” Organo’s unique chromatographic separation technology

that can separate more than three ingredients Used in numerous production facilities for processing sugar

Development of technology that continuously purifies ceramide (Joint development with the National Agriculture and Food Research Organization (NARO) and Nippon Flour Mills Co., Ltd.）

Conventional natural ceramide Material with low purity of approx. 10% Uses are limited due to its color and smell

inherent in impurities

Continuous production of highly refined materials with purity of 95% or higher is possible

New applications are expected for cosmetics,pharmaceuticals, and R&D

Applications

Major Efforts in the First Half of FY2014

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Major Efforts in the First Half of FY2014

◆ Reinforcement of business of soil and groundwater investigation and remediation

Strengthen sales and technical organizations to deal appropriately with projects that areexpected to increase

Strengthen and promote“One Stop Solutions” to respond tocustomers’ diverse needs in relationto water treatment

Objectives

Businesses were consolidated into Organo (from October 2014)Soil and Groundwater Group was set up in the Plant Division, and dedicated staffs weredeployed in all domestic branches.⇒ Strengthen sales capabilities leveraging the network of the Organo Group

Outlook for market expansion Work for the improvement of circular

routes in Tokyo Tokyo Olympics in 2020 Maglev train project

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03/2014 03/2015 03/2015 Year on Year Change fromResult Initial Plan Revised Plan Change Initial Plan

Orders Received 65,501 75,000 75,000 + 9,499 -

Net Sales 62,096 70,000 70,000 + 7,904 -

Gross Profit 14,553 15,400 14,700 ＋ 147 700(%) (23.4) (22.0) (21.0) 2.4pt 1.0pt

SG&A 13,720 13,900 13,200 520 700

Operating Income 833 1,500 1,500 ＋ 667 -

Ordinary Income 1,170 1,400 1,400 ＋ 230 -(%) (1.9) (2.0) (2.0) + 0.1pt -

Net Income 664 900 900 ＋ 236 -

Forecasts for the Term Ending March 2015(millions of yen)

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45,814 54,100

19,686

20,900

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

03/2014 03/2015 (Plan)

■ Water Treatment Engineering ■ Functional Product

75,000

65,501

42,112 49,100

19,983

20,900

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

03/2014 03/2015 (Plan)

70,000

Year onYear

Change+ 6,988

Year onYear

Change+ 917

62,096

-691

-100

1,524 1,600

-1,000

0

1,000

2,000

03/2014 03/2015 (Plan)

1,500

Year onYear

Change+ 76

Year onYear

Change+ 591

833Year onYear

Change+ 1,214

Year onYear

Change+ 8,286

Operating IncomeOrders Received Net Sales(millions of yen) (millions of yen) (millions of yen)

Forecasts for the Term Ending March 2015( by Business Segment )

[Water Treatment Engineering] Orders are expected to increase in plants in the general industries, both in Japan and overseas, and the domestic electronics industries. Sales are expected to increase, mainly due to the growth of plants in the domestic electronics industries, the pharmaceuticals industries, and the wastewater treatment business. Operating income is expected to improve due to sales expansion.

[Functional Products] Sales are expected to grow based on development and renewal of products.

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19,275 21,800

22,837

27,300

0

25,000

50,000

03/2014 03/2015（Plan）

General Industry Electronics Industry

17,083 23,190

25,030

25,910

0

25,000

50,000

03/2014 03/2015（Plan）

Solution Business Plant Business

49,100

42,112

Year onYear

Change+ 6,107

Year onYear

Change+ 880

Year onYear

Change+ 4,463

Sales by Business Area and Customer ( Water Treatment Engineering )

Sales by CustomerSales by Business Area(millions of yen) (millions of yen)

49,100

42,112

Year onYear

Change+ 2,525

[Plant Business] Sales are expected to increase, mainly as a result of the growth of plants in the domestic electronics industries, pharmaceuticals and food industries, and the wastewater treatment business.

[Solution Business] Sales are predicted to increase, largely due to the growth of maintenance in overall industries in Japan.

[Electronics Industry] Sales are expected to increase due to the growth of plant business in Japan.

[General Industry] Sales are expected to increase, primarily due to the growth of plants in the domestic pharmaceuticals industry and wastewater treatment business, and the growth of plants for overseas thermal power stations.

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59,831

55,926

48,006

58,000

8,671 10,792

14,090 12,000

12.7%

16.2%

22.7%

17.1%

0

40,000

80,000

03/2012 03/2013 03/2014 03/2015(plan)

Domestic Overseas Overseas Ratio

62,096

2,216 2,234 3,745 4,300

4,718

7,039

8,352 5,700

1,738

1,519

1,993

2,000

0

5,000

10,000

15,000

03/2012 03/2013 03/2014 03/2015(plan)

Southeast Asia Taiwan China

14,090 Year onYear

Change+ 7

Year onYear

Change∆ 2,652

Year onYear

Change+ 555

Year onYear

Change∆ 2,090

Year onYear

Change+ 9,994

66,718

10,792

68,502

8,671

Sales by Region

Sales by Overseas RegionDomestic and Overseas Sales

(millions of yen) (millions of yen)

70,000

12,000

17

12,483 10,079 10,505

13,800

4,871 9,009 9,240

8,900

0

10,000

20,000

30,000

03/2012 03/2013 03/2014 03/2015 (Plan)

Domestic Overseas

119

22,700

17,35419,088

14,345

10,906 9,242

14,600

6,804

8,817 10,033

7,200

0

10,000

20,000

30,000

03/2012 03/2013 03/2014 03/2015 (Plan)

Domestic Overseas

21,80021,14919,723

Progress of Orders Received and Net Sales from the Electronics Industry

Orders Received Net Sales(millions of yen) (millions of yen)

19,745 19,275

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66,074 68,041

60,238 65,501

75,000

61,097

68,502 66,718 62,096

70,000

40,964 40,145

34,645 39,212

44,212

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0

20,000

40,000

60,000

80,000

100,000

03/2011 03/2012 03/2013 03/2014 03/2015 (plan)

Orders Received Net Sales Orders on Hand

Progress of Orders Received,Net Sales and Orders on Hand

Orders received / Net sales(millions of yen)

Orders on Hand(millions of yen)

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(millions of yen)

FY2013 Full YearFY2014 Full Year

(Initial Plan)FY2014 Full Year(Revised Plan)

Capital Investment 358 800 700

TechnologicalDevelopment Costs

1,490 1,600 1,550

Depreciation 1,065 1,000 1,000

Interest-bearingBorrowings

10,230 11,200 12,000

Number of Employees 1,896 1,910 1,920

Dividend per Share(yen/year)

8 8 8

Major Indicators

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Major Efforts for Expansion of Domestic Business

Water Treatment Engineering

General Industries Pharmaceuticals, food, chemicals: Strengthen the

pure water/wastewater businessWater supply business: Increase orders through

cooperation with Meidensha Corporation Power plant: Strengthen the responsiveness to

coal and LNG thermal plant projects Expand the soil and groundwater investigation

and remediation business

Electronics Industry Secure orders in the electronics industry segment

Solution Business Further expand sales for reconstruction and

maintenance

Functional Products

Water Treatment Chemicals Promote sales of new products

Collaboration with Katayama Nalco Inc.

Standard Water Treatment Equipments

Food Processing Materials

Continuation of new products development and product renewal

Strengthen cost reduction and construction capabilities

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Acceleration of Globalization Strengthen business promotion targeting non-Japanese customers Leverage the ASEAN Engineering Center (Thailand) to promote technology

and product development according to the market characteristics of the region

Leverage the ASIA Procurement Center (Thailand) to strengthen purchasing capability and promote cost reduction

Strengthen sales capabilities to address projects for power plants

Enhance responsiveness to the projects for the electronics industries

Strengthen the structure of overseas business bases

Major Efforts for Expansion of Overseas Business

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Organo Corporation

Corporate Planning Department

1-2-8, Shinsuna, Koto-ku, Tokyo 136-8631, JapanTEL +81-3-5635-5111FAX +81-3-3699-7240URL http://www.organo.co.jp

This document includes forecasts of future developments made by management based on their assumptions, forecasts and plans at the time of writing. Actual performance may differ materially from the above projections due to a variety of factors.