Kurita Water Industries Ltd.
Results Presentation for the First Quarter ofthe Fiscal Year Ending March 31, 2018
(Securities code: 6370)

August 1, 2017

Results for the 1Q of the Fiscal Year Ending March 2018
(Billions of Yen)
Fiscal Year
ended March2017
First Quarter
ActualPlan for First Half

Fiscal Yearending March 2018
First Quarter Actual
YoY Change

YoY Change

Orders

56.3

68.0+ 20.8%112.0- 0.4%Net sales

46.4

48.3

+ 4.1%

104.0+ 0.2%

Operating income

3.7

3.5

- 6.1%

7.7- 20.1%

Ordinary income

3.8

3.6

- 5.4%

7.9- 18.0%

Profit attributableto owners of parent

2.6

2.5

- 6.1%

5.3- 19.0%Fiscal Year ended
March 2017
First Quarter Actual

Fiscal Year ending
March 2018
First Quarter Actual

 Orders increased significantly primarily due to large orders in theWater Treatment Facilities business in Japan and overseas.
 Net sales rose in both the Water Treatment Chemicals businessand the Water Treatment Facilities business.
 Operating income decreased due to a rise in selling, general andadministrative expenses.

Exchangerate(yen)USD

115.48113.64EUR

127.23121.08

RMB

17.61

16.57

1

Results for the 1Q of the Fiscal Year Ending March 2018

Water treatment chemicals

Water treatment facilities

Orders(Billions of Yen)

70

Sales
68.0

56.3

(Billions of Yen)

60

22.2

21.0
3530

35.3006/2016

45.906/2017

0Operating Income(Billions of Yen)

4

3.7
1.9

46.4

48.3

20.1

21.1

26.2

27.206/2016

06/2017

Operating Income Margin(%)

3.5

10

9.3
1.5

20

Total

8

1.9

2.006/2016

06/20178.1
7.2

606/2016

7.3
7.3
7.3
06/20172

Results for the 1Q of the Fiscal Year Ending March 2018

(Billions of Yen)

Orders24.0

12.00.021.006/2016

 Domestic orders increased for mainstay products such as
those for boiler water and for cooling water, while orders forprocess treatment chemicals, etc. also increased.

22.2

 Overseas orders increased due to the inclusion of Fremont
Industries, LLC in the scope of consolidation, but decreased if
Fremont is excluded.

06/2017(Billions of Yen)

Sales

24.0

 Same as above
12.0

0.0

20.1

21.1

06/201606/2017(Billions of Yen)

(%)

3.0

10

9.3
7.3

1.5

1.90.006/2016

5Operating Income Although the cost of sales ratio remained flat, operating income
decreased due to a rise in selling, general and administrative
expenses and a decrease in sales in Asia.

1.506/2017
Operating Income Margin

03

Results for the 1Q of the Fiscal Year Ending March 2018

Orders(Billions of Yen)

24.0

 Orders for hardware in Japan increased due to large orders forsemiconductors.
 Orders for maintenance services in Japan increased due toexpansion and modification of facilities.

23.6

12.0

16.9

 Orders for hardware increased overseas mainly in South Korea.
0.006/2016

 Orders in the ultrapure water supply business declined due torevision of contracts.

06/2017(Billions of Yen)

20.0

10.0

Sales
 Sales of hardware increased in Japan and overseas due to theprogress of construction work.

16.3

16.606/2016

06/2017

 Sales of maintenance services in Japan increased in line with therise in orders.

0.0

(%)
16

(Billions of Yen)

4.0

14.2

12.88

2.0

2.306/2016

06/2017

Operating Income Operating income was affected by the decline in sales in theultrapure water supply business.

 The rise in maintenance sales in Japan had an impact.

2.10.0 Sales of the ultrapure water supply business declined due torevision of contracts.

0 The cost of sales ratio improved for overseas hardware.

Operating Income Margin4

Results for the 1Q of the Fiscal Year Ending March 2018

(Billions of Yen)

Orders24.0

 Orders for soil remediation increased due to orders for large
scale projects.
12.0

18.4
0.0

06/201622.3

 Orders for maintenance services for general industries
increased due to demand associated with renovating old
facilities and demand for expansion.

06/2017

 Orders for hardware from electric power industries increased.

(Billions of Yen)

Sales

12.0

 Soil remediation sales increased due to the progress ofconstruction work.
6.0

0.0

10.0

10.6

06/201606/2017(%)(Billions of Yen)

0.0

-0.1
-0.4

-0.4

-0.8

 Sales of maintenance services for general industries increased inline with the rise in orders.

-1.3

-4.4
06/201606/20170

Operating Income
 The cost of sales ratio improved for both hardware andservices.

-3-6

Operating Income Margin5

Results for the 1Q of the Fiscal Year Ending March 2018

(Billions of Yen)

10.0

8.0

+0.4-0.5

New construction
or addition offacilities

Expiration ofcontracts, etc.

-1.3
Revision ofcontracts

6.6

5.0

0.0

06/2016
Actual06/2017
Actual6

Results for the 1Q of the Fiscal Year Ending March 2018

Service Business Revenue in the Water
Treatment Facilities Segment

Water treatment chemicals
Water treatment facilities (services)(Billions of Yen)

22.0

Water treatment facilities (hardware)(Billions of Yen)

50.0

20.6

48.3

46.4

8.0
21.1

20.1

11.0

Ultrapure water

6.6

supply business

1.7

Tool cleaning

12.3

Maintenance, etc.

1.5

41.7

40.7

25.0

20.620.6

20.6

5.7

6.606/2016

06/20170.0

11.1

0.006/2016

06/2017

 Revenues from the ultrapure water supply business declined, but those from maintenanceand others increased steadily.
7Results for the 1Q of the Fiscal Year Ending March 2018

Overseas Sales by Region
Asia

N. America

EMEA

Overseas Sales by Business Segment
Other

Water treatment chemicals

Water treatment facilities(Billions of Yen)

(Billions of Yen)

0.7

0.6

4.7

4.3
4.8

14.1

5.0

15.0

8.1

8.2

15.0

14.1

10.2

9.8

0.5
06/2016

1.006/2017

06/201606/2017

 In the Water Treatment Chemicals business, sales increased in Europe and the U.S. but declined in Asia.
 In the Water Treatment Facilities business, sales rose mainly in South Korea.

8Results for the 1Q of the Fiscal Year Ending March 2018

Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

Capital expenditures(excl. ultrapure watersupply business)

R&D Expenses

Depreciation(Billions of Yen)

R&D expenses

(%)
2.6

(Billions of Yen)

4.0

1.6

3.7

2.3

2.0

Percentage of net sales

1.6

2.9
3.4

0.8

3.30.8
0.8

1.3

1.1

1.206/2016

06/20170.7

0.0

0.006/2016

2.406/2017

 Capital expenditures of the ultrapure water supply
business progressed as planned.

0.0 R&D expenses increased as planned.

 Depreciation decreased slightly.
9Results for the 1Q of the Fiscal Year Ending March 2018

AssetsLiabilities and Net Assets(Billions of Yen)

299.2
73.4

290.5
66.4
(-6.9)

82.6

80.2

Cash,
deposits andmarketablesecurities(Billions of Yen)

299.2

290.5

70.5

67.4

Liabilities(-3.1)

Other
current assets(-2.3)

74.074.6

Property,plant andequipment

228.8

223.1

Net assets(+0.6)

69.3

69.2

Other noncurrent assets(-5.7)(-0.1)

Mar. 31, 2017

Jun. 30, 2017

Mar. 31, 2017

Jun. 30, 2017

 Cash and deposits and net assets decreased due to the acquisition of own shares.

10■ U R L ■http://ir.kurita.co.jp/en/■ M A I L ■ir@kurita.co.jp

Forward-looking Statements
This presentation contains forward-looking statements, business plan projections, and judgments based on information
available to management at the time of writing. Due to the existence of a variety of risk factors and uncertainties, actualresults may differ from those specified or implied by these forward-looking statements and projections.