Message from the PresidentMessage from the President
Organo creates new value from water, contributing to a prosperous and sustainable society.
Looking back on fiscal 2025
In recent years, the semiconductor-driven electronics industry has been the primary engine of our growth. In fiscal 2025, continued strong demand from this sector—alongside solid demand in general industries, the electric power sector, and functional products—led us to record all-time highs in both net sales and operating profit for the fifth consecutive year.
We expect the current situation—in which supply of advanced semiconductors for AI and data centers cannot keep pace with demand—to continue for the next several years. In Taiwan, where we hold a significant share of the ultrapure water systems market for semiconductors, and in the United States, where we are actively expanding our presence, investment in advanced semiconductor manufacturing is likely to accelerate further. To meet rising demand for our advanced ultrapure water production technologies in these regions, we are strengthening our local capabilities.
At the same time, to drive further Group-wide growth, we steadily advanced the investments and initiatives needed to improve operational efficiency, enhance human capital, reinforce our IT infrastructure, and develop business in new geographic markets. Fiscal 2025 was a year in which the tangible results from these efforts began to take shape.
Progress on the Medium- to Long-term Management Plan “ORGANO 2030”
It has been six years since we formulated ORGANO 2030 in 2020 as a ten-year long-term management plan. Over that period, we responded to investment from electronic industry customers—particularly in the semiconductor field—that exceeded our initial assumptions. As a result, our Service Solutions Business expanded more than planned through the accumulation of plant projects, and we achieved our original target of ¥30 billion in operating profit for fiscal 2030 ahead of schedule in fiscal 2024. Building on this, we engaged in sustained discussions—grounded in our Group’s current position and our outlook in future market conditions and demand trends—about the performance targets we should aim for in fiscal 2030, as well as the strategies and initiatives required to achieve them. We then updated the plan accordingly, relaunching it as the Medium- to Long-Term Management Plan “ORGANO 2030.”
Under the updated plan, our fiscal 2030 performance targets, which now include the addition of return on invested capital (ROIC) as a new indicator from fiscal 2025, are net sales of ¥260 billion, an operating margin of at least 18%, return on equity (ROE) of at least 20%, and ROIC of at least 15%.
To strengthen the business foundation needed to achieve these targets, we are focusing on two major directions: reinforcing our business portfolio and our geographic portfolio. On the business portfolio side, we will drive growth in the Service Solutions Business and strengthen the Functional Products Business, while enhancing development resources and external partnerships to generate new solutions and products. On the geographic portfolio side, in addition to cultivating the U.S. market—our highest priority—we will expand into new regions where we anticipate future growth. Across both portfolios, we will actively pursue inorganic measures such as M&A and alliances with other companies.
To Our Shareholders
Organo celebrates its 80th anniversary this year. Although the Group continues to deliver strong results, we will not allow ourselves to become complacent. With our sights set on 2030 and on our goal of becoming a company that thrives for 100 years and more, we will steadily implement the investments and initiatives set out in the Medium- to Long-Term Management Plan “ORGANO 2030,” and continue strengthening both our business foundation and our management base.
We will also continue to proactively advance our sustainability initiatives and conduct our corporate activities within a reinforced governance framework.
Our basic policy on shareholder returns is to provide stable, ongoing dividends. At the same time, supported by our growing earnings, we will continue to increase dividends and improve our dividend payout ratio, with the aim of balancing growth investment with enhanced shareholder returns.
The Organo Group as a whole will continue working together to become a company that is worthy of your trust and expectations. We ask for your continued understanding and support.
