Financial Statements (Consolidated)
For the fiscal Year Ended March 31st, 2003
Prepared May 9, 2003

Listed company name:

Kurita Water Industries Ltd.

LISTINGS / EXCHANGES:FIRST SECTION, TOKYO STOCK EXCHANGE, OSAKASECURITIES EXCHANGE

Security Code:

6370

Head Office:Tokyo

Homepage:

http://www.kurita.co.jp

Representative:

Takahide Santo, President
Mitsuru Ogawa, General Manager, Finance and Accounting
Department

Contact:
Tel:+813 3347-3214

Date of Board Meeting for Account Settlement:
U.S. GAAP accounting standards:

May 9, 2003
Not adopted

1. Consolidated Financial Results for the Year Ended March 2003
(April 1, 2002 to March 31, 2003)(1)- Operating Results
Figures rounded down to the nearest million yen

Net Sales
Operating Income
Ordinary Income
Net Income for interim period
Net Income per Share (yen)Potential post-adjustment net
income value per share
Return on equity
Ratio of ordinary income to total
assets l
Ratios of ordinary income to net
sales

Full term Period

Full term Period

1 April 2002 – 31 Mar 2003

1 April 2001 – 31 Mar 2002

AmountChange (%)

AmountChange (%)

141,628
12,307
12,400
5,476
40.67
--

(0.7)
14.1
6.8
(3.4)

142,678
10,79011,615
5,670
42.85
--

(7.0)
(31. 8)(32. 2)(32. 2)

4.5%
7.2%

4.7%
6.5%

8.8%

8.1%

Notes:
(1)

(2)

(3)
(4)

Gain from investments in equity method subsidiaries and affiliates
Year end March 31, 2003:--143 million yen
Year end March 31, 2002:--198 million yen
Average number of outstanding shares (consolidated) during the period:
Year end March 31, 2003:
131,587,576 sharesYear end March 31, 2002:
132,336,807 shares
Changes in accounting methods: None
Percentages for net sales, operating income, ordinary income and net income represent rate ofchanges from the previous year.

-1-(2)- Consolidated Financial Position
Year ended March 2003
173,689
120,969
69.6%(yen)
939.78

Total Assets
Shareholders’ Equity
Shareholders’ Equity Ratio (%)
Shareholders’ Equity per Share
Note:
Outstanding shares (consolidated) at year-end:
Year end March 31, 2003:
Year end March 31, 2002:(Units: Millions of yen)
Year ended March 2002
172,145
122,590
71. 2%
926.45

128,586,389 shares.
132,323,155 shares.

(3)- Consolidated Cash Flows
Year ended March 2003

(Units: Millions of yen)
Year ended March 2002

Net cash provided by operating activities
10,402
8,713
Net cash used in investing activities(6,999)(5,334)
Net cash used in financing activities(6,270)(2,169)Cash and cash equivalents at year-end
31,50732,980Note:(1) Regarding consolidated subsidiaries and affiliates accounted for by the equity method:
Number of consolidated subsidiaries: 28
Number of non-consolidated subsidiaries accounted for by the equity method: 1
Number of affiliated companies accounted for by the equity method: 4(2) Changes in the scope of consolidation and companies accounted for by the equity method
Consolidated Subsidiaries:(Newly Included): 3 (Excluded) 2
Companies accounted for by equity method (Newly Included): 0 (Excluded) 0

2. Consolidated Forecast for the Year Ending March 2004
(April 1, 2003 to March 31, 2004)

Consolidated Business Forecast
Interim
Net sales
Ordinary income
Net income
Reference:1)2)

64,3004,600
2,700(Units: Millions of yen)
Full Year147,500
13,3007,700

Forecast net income per share (for the year): 58.90 yen
The above forecasts are based on information currently available and are inherently
subject to a variety of risks and uncertainties, actual results may differ from forecast.
(See page 7 of attached material for information related to these forecasts).

-2-

Position of Kurita Group Companies
The Kurita Group is comprised of Kurita Water Industries Ltd. (Kurita), 32 subsidiaries and 19 affiliatedcompanies.
The Group provides a wide array of products, technologies and maintenance services related to water
treatment. These activities are separated into two business areas: Water Treatment Chemicals, which
manufactures, sells and provides maintenance services for chemicals related to water treatment, andWater Treatment Facilities, which manufactures, sells and provides maintenance services for equipment
and facilities related to water treatment.
Descriptions of the businesses and positioning of each between Kurita and related companies follows
below.
These business categories are the same as the categories used for segment information by business type.

Water Treatment Chemicals
Manufacturing, sales and maintenance services for water treatment-related chemicals and associatedequipment. Products include water treatment chemicals for boiler water, cooling water, air conditioning
system and waste water, as well as treatment agents for civil engineering and construction, dioxin
suppression and manufacturing processes.
A total of 33 companies are engaged in these activities.
Domestically, Kurita and Kurita Kasei Co., Ltd. are responsible for chemical manufacturing. Chemical andrelated equipment sales, and maintenance services are primarily provided by Kurita, but 20 additional
companies, including Kurita Buil-Tech Co., Ltd., Kurita Chemicals Tokyo Co., Ltd., and Kurita Chemicals
Kansai Ltd., also handle a portion of these activities. Overseas, Kurita (Singapore) Pte. Ltd. and nineother companies are involved in manufacturing and sales, and one company performs only sales activities.

Water Treatment Facilities
Manufacturing, sales, chemical cleaning and precision cleaning, operation and maintenance services forwater treatment-related equipment and facilities. Products include ultra-pure water production systems,
water treatment facilities, waste water treatment facilities, regulation water treatment facilities, soil
remediation, sewage treatment facilities, sludge recycling centers, saltwater desalination facilities, andrecreational pools.
A total of 21 companies are engaged in these activities.
Manufacturing, sales and maintenance services are primarily provided by Kurita, but a portion of these
activities are also handled by four other companies (three domestic, one overseas), Chemical and precision
cleaning of machinery and facilities is the responsibility of Kurita Engineering Co., Ltd. and five othercompanies. Five companies (one domestic, four overseas) including Kuritaz Co., Ltd. operate and provide
maintenance on equipment and facilities sold primarily by Kurita. There are also two domestic companies
that are involved in soil remediation and one additional company overseas conducting sales of equipment.

-3-

Overseas Companies
Chemical Manufacturing and Sales Companies

Chemical Manufacturing Companies
Kurita Kasei Co., Ltd.
(Water treatment chemicals)

Kurita do Brasil Ltda.
Supplies raw materials( a portion)

Provides productmanufacturing(Water Treatment Chemicals)
Kurita Europe G.m.b.H．
(Water Treatment Chemicals)
Kurita (Taiwan) Co., Ltd.
(Water Treatment Chemicals)
Kurita-GK Chemical Co., Ltd.
(Water Treatment Chemicals)

Chemical Sales Companies

Kurita Water Industries (Dalian) Co., Ltd.
(Water Treatment Chemicals)

Kurita Buil-Tech Co., Ltd

PT Kurita Indonesia(Water Treatment Chemicals)(Water Treatment Chemicals)

Kurita Chemicals Tokyo Co., Ltd.
(Water Treatment Chemicals)
Kurita Chemicals Kansai Ltd.

*Three other companies

Kurita Chemicals West Japan Ltd.

Kurita Chemicals Kanagawa Co., Ltd.
(Water Treatment Chemicals)
Kurita Chemicals Hyogo Ltd.
(Water Treatment Chemicals)
Kurita Chemicals Sanyo Ltd.
(Water Treatment Chemicals)
12 other companies(Water Treatment Chemiclas)
Equipment and Facilities
Operation and Maintenance Companies
Provides operation
Kuritaz Co., Ltd.
(Water Treatment Facilities)

maintenancework and otherservices (a portion)

Soil Remediation Companies
Provides construction
work and services

Facilities)

Chemicals and Facilities
Manufacturing and Sales Companies
Supplies raw materials(a portion)

Supplies products(Water Treatment Chemicals)

Kurita Water Industries Ltd. (Manufacturing and Sales)

Kurita BMS Co., Ltd.

Land Solution Inc.
*1 One other company(Water Treatment Facilities)

Kurita Water (Malaysia) Sdn. Bhd.
(Water Treatment Chemicals, Water Treatment(Water Treatment Chemicals)*３

Chemicals and Facilities Sales Companies

Supplies
products(Water Treatment Chemicals)

Kurita (Singapore) Pte. Ltd.
(Water Treatment Chemicals, Water

Supplies products

Treatment Facilities)(a portion)

Facilities Sales Companies
Supplies products(a portion)

Hansu Technical Service Ltd.
(Water Treatment Facilities)

Kuritec Europe GmbH
Supplies parts(a portion)(Water Treatment Facilities)
Kurita America Inc.
(Water Treatment Facilities)

Supplies facilities work(a portion)

Kuritec Singapore Pte. Ltd.
(Water Treatment Facilities)
Kuritech (Shanghai Co., Ltd.
(Water Treatment Facilities)

Equipment and Facilities Design Companies
Facilities Manufacturing Companies
2 One other company(Water Treatment Facilities)

Supplies parts(a portion)

Kurita Kako Corp.
(Water Treatment Facilities)

Kurita Creation Co., Ltd.

NOTES:(Water Treatment Facilities)
Meiki Industry Co., Ltd.

No mark: Consolidated subsidiary*1 Non-consolidated subsidiary not applying
equity method*2 Affiliated company applying equity
methods*3 Affiliated companies not applying equity
method(Water Treatment Facilities)

Supplies chemicalcleaning and precision
cleaning

Chemical Cleaning and Precision CleaningCi
Kurita Engineering Co., Ltd.
(Water Treatment Facilities)(a portion)-4-*1 Two other companies(Water Treatment Facilities)*3 Three other companies(Water Treatment Facilities)

3.

Performance and Financial Position
1) Summary of the Year Under Review
Extremely difficult business conditions persisted in the Japanese economy during the fiscal year underreview. The grip of deflation tightened as stock prices fell, capital investment was reeled in, and consumer
spending slumped due to employment adjustments. Additionally, instability in the international politicalenvironment owing to the Iraq problem and other events were responsible in part for global fears of an
economic downturn, and prospects for a recovery are extremely uncertain.
The Kurita Group faced a market environment marked by exceptionally difficult conditions. Capital
investment in the private sector stagnated due to poor corporate earnings, and budgets were cut for public
works projects as national and local governments reviewed annual expenditures.
In this business environment, Group orders totaled 128,431 million yen, a decrease of 8.6% compared tothe previous year, and net sales totaled 141,628 million yen, a year-on-year decrease of 0.7%, results due
in part to stepped-up streamlining measures by customers and intensifying competition in the industry.

With regard to incomes, operating income increased 14.1% to 12,307 million yen and ordinary income rose
6.8% compared to the previous year to 12,400 million yen, while net income decreased 3.4% to 5,476
million yen.
Although net sales and net income fell short of last year’s levels, the Company is committed to stablepayouts of dividends so plans to propose dividend payments of eight yen per share. Dividends at theinterim were eight yen per share, so this would bring the full year payout to 16 yen per share.
In the area of consolidated cash flows for the year under review, net cash provided by operating activities
increased 1,689 million yen compared to the previous year to 10,402 million yen owing to a rise in income
before income taxes and other factors. Net cash used in investing activities rose 1,665 million yen
year-on-year to 6,999 million yen due in part to acquiring business-use fixed assets on a full service
contract for ultra-pure water supply and water treatment management and from acquiring investment
securities. Net cash used in finance activities increased 4,101 million yen compared to the previous year
to 6,270 million yen from using funds to acquire treasury stock and other items. As a result, consolidated
cash and cash equivalents for the year under review decreased 1,473 million yen year-on-year to 31,507
million yen.

2) Segment Information
Water Treatment Chemicals
Water Treatment Chemicals faced a harsh market environment due to the prolonged downturn marked byincreased streamlining by customers and intensifying competition. Responding to these conditions, theKurita Group pulled together to strongly promote full-service contracts for reducing customer energy-, costand resource-consumption by optimizing water treatment management for whole factories. The Company
also secured orders by stepping up targeted marketing by market sector and new product development.
Orders increased for chemicals for oil refinery processes, process chemicals for pulp and paper industries,
fixing agents for heavy metals contained in fly ash given off during waste incineration, maintenanceservices, ion exchange resins, activated charcoal and other products. Orders for the mainstay productboiler chemicals, however, marked time, while orders for cooling chemicals and waste water chemicals
both declined.
As a result, orders for Water Treatment Chemicals across the Kurita Group decreased 1. 1% year-on-year
to 46,450 million yen. Net sales increased 1. 8% compared to the previous year to 47,116 million yen on
the back of orders last year for chemical injection systems and other items which contributed to the total.
Operating income grew 4.0% year-on-year to 6,493 million yen.

Water Treatment Facilities
Domestically, market conditions faced by Water Treatment Facilities included signs of a partial recovery incapital investment for LCD panel manufacturing and the car industry. Overseas, capital investment was
relatively strong in the electronics industry, chiefly in China and Taiwan. On the whole, however, harshconditions persisted as competition in the industry intensified and customers implemented streamlining
measures thereby reducing, postponing or canceling capital investment. Responding, the Company worked-5-

to win orders by strengthening collaboration across the Group and aggressively promoting a number of
initiatives. Targeted marking in the domestic market was stepped up, sales of ready-made system for
ultra-pure water and water for medical purposes were expanded, the ultra-pure water supply business waspromoted, and advances were made in the Chinese, Taiwanese and Southeast Asian markets.
Orders from the electronics industry picked up for precision cleaning of jigs used in the production ofsemiconductors and LCD panels, but orders for the mainstay ultra-pure water production system declined
significantly both domestically and overseas.
In the area of water treatment facilities for general industries, orders increased for facilities for the car
industry, but dropped considerably overall when including pharmaceutical, food product and otherindustries. Maintenance services orders for the electric power plant recorded an increase, but theincrease in orders for the electronics industry was slight and there was a decrease in the market for water
treatment facilities for general industries. Orders for water treatment facilities from the electric powerindustry also recorded major declines.
The market environment in the area of environmental control facilities was also harsh, as public works
budgets were slashed and competition intensified due to cost cutting by local governments. Kurita and the
Kurita Group secured orders by actively carrying out initiatives including reinforcing ties with existingcustomers and uncovering needs such as sludge reduction and giving sales presentations to talk withcustomers about facilities performance and other topics.
Orders for maintenance service increased as a result of promoting solutions-led sales. Yet, orders fellslightly overall despite maintaining concerted sales efforts and a stable order base in areas such as sludge
recycling centers, exudated water pollution processing at waste disposal sites, equipment for sludge
reduction, and membrane filtration units for tap-water.
As a result, orders for Water Treatment Facilities across the Group decreased 12.4% year-on-year to
81,981 million yen, and net sales fell 2.0% compared to the previous year to 94,512 million yen. Operating
income, however, increased 26.3% year-on-year to 5,730 million yen thanks to decreased operating costs.

-6-3) Outlook for the Coming Year
A. Outlook by segment
Market conditions for Water Treatment Chemicals continue to be severe, with customers stepping up
streamlining measures and competition intensifying due to market contraction. The Company willcontinue to push ahead with sales presentations that offer customers solutions, year-long full-service
contracts for water treatment management, comprehensive cost reductions in the areas of procurement,
production and distribution, as well as with other measures. The Company will also work across the board
to secure earnings by consolidating the organization of maintenance divisions and creating an “defensive
business”-- a robust maintenance network closely connected to customers and local communities.
For Water Treatment Facilities, neither an increase in facilities investment nor a full scale recovery inoperating ratios can be expected. The Company plans to expand applied technologies using ready-madeproducts as an “aggressive business”, while streamlining its organization. Outside of cost cutting activities,
Kurita will ramp up propriety methods in which the customer shares a majority of the benefits. Additionally,
it will actively promote sales of ultra-pure water used in customer production activities at Kurita-owned
facilities in an attempt to establish such water sales as a new field of business. For the electronics industry,
the Company will focus its efforts on the overseas market. For other areas, it will work to expand
businesses in the areas of wastewater treatment because of changes in domestic nitrogen regulations andsoil remediation, and in the area of wastewater treatment for overseas electric power wholesalers.
The market for environmental control facilities for the public sector will continue to be marked by cutbacks
in public works projects. Under such conditions, the Company will actively use technologies, such as
proprietary sludge processing technologies and advanced treatment technologies, in an effort to steadily
increase orders for renovation work on sludge recycling centers and in the area of exudated water pollution
processing. In the area of sewage treatment, the Company as a whole will work to settle contracts delayedfor years by financial difficulties.
B. Profit distribution
Given the status of current projects, profits for the first half of the year are expected to be comparatively low.
Sales, however, are expected from facilities-related work at the end of the year, so the Company will staycommitted to the stable payout of dividends.
C. Summary of major issues related to performance outlooks for the year ahead
In an effort to boost Group businesses, the Company together with subsidiary Kuritaz Co. Ltd. consolidated
analysis businesses and established the new subsidiary Kurita Analysis Service Co. Ltd. in April 2003.
Additionally, a new subsidiary will be established in June 2003 in a joint effort with Kurita Engineering Co.,
Ltd. to consolidate precision cleaning businesses.
2. Because of the future course of Company business and the deterioration of its facilities, the subsidiary
Kurita Kako Corp., which manufactures dehydrators and other equipment, will be liquidated from the
beginning in June 2003.
1.

-7-

（4）Consolidated Financial Statements
Consolidated Balance Sheets(Unit: Millions of yen)
Year ended March
2003

Year ended March
2002

Item
[Assets]
Current Assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Inventories
Deferred income taxes
Other
Allowance for doubtful accounts
Total Current Assets%
31,838
10,25549,442
6,615
6,301
1,806
1,090
(169)
107,180

Increase(decrease)

%

61.7%

33,408
10,53444,939
4,640
7,702
1,503
945
(185)
103,490 60.1%(1,570)
(279)
4,503
1,975
(1,401)
303
145
16
3,690

22.1%

14,4193,874
15,044198
2,816
36,353

21.1%

(245)
1,133
(20)
1,406
(316)
1,957

1.5%

1,812
542
2,354

1.4%

318
(14)
305

Fixed Assets
Tangible Fixed Assets
Buildings and structures
Machinery and equipment
Land
Construction in progress
Other
Total tangible fixed assets
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment in securities
Investment in non-consolidated
subsidiaries and affiliates
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets

17,322

18,319

(997)

1,902
116
4,051
2,186
(40)
25,53866,508

2,547
2,585
3,857
2,717
(80)
29,94768,655(645)(2,469)
194
(531)
40
(4,409)(2,147)

Total assets------------------------

173,689

14,174
5,007
15,0241,604
2,500
38,310
2,130
528
2,659

-8-

14.7%

100%

17.4%

172,145 100%

1,544

Year ended March 2003

Year ended March 2002

Item
[Liabilities]
Current Liabilities
Notes payable - trade
Accounts payable - trade
Short-term borrowings
Outstanding payments / expenses
Income taxes payable
Advances received
Accrued employees’ bonuses
Allowance for product warranty
Other
Total current liabilities
Fixed Liabilities
Long-term debt
Accrued employees’ retirement
benefits
Retirement benefits for directors
and corporate auditors
Deferred income tax liability

related to revaluation
Other
Total fixed liabilities
Total Liabilities

Minority Interests
Minority interests
Shareholders’ Equity
Common stock
Capital surplus
Retained earnings
Revaluation difference on land
Revaluation surplus of othersecurities
Foreign currency translation
adjustment

Treasury stock
Total shareholders’ equity

Total Liabilities, Minority Interests
and Shareholders’ Equity%
1,420
22,841
7
6,391
3,335
966
2,154
848
675
38,643

22.2%

Increase(decrease)%
1,912
20,999
139
6,835
442
1,621
2,927
923
782
36,585

21.3%

(492)
1,842
(132)
(444)
2,893
(655)
(773)
(75)
(107)
2,058

40
11,46978
10,873

(38)
596

813

667

146

13

14

(1)

783
13,1207.6%

778
12,411

7.2%

5
709

51,76329.8%

48,997

28.5%

2,766

956

0.6%

558

0.3%

398

13,450
11,398
101,63720(108)

13,450
11,39898,804
19
162

2,833
1
(270)

(543)

(418)

(125)

(4,885)
120,969
173,689

-9-

69.6%

(827)
122,590
172,145

71.2%(4,058)(1,621)
1,544

(Unit: Millions of yen)

Consolidated Statements of Retained Earnings

Item

Year ended
March 2003

Year ended
March 2002

AmountAmountIncrease(decrease)11,398
11,398

11,398
11,398---98,8045,476(5,476)2,644(2,117)
(120)
(270)

95,444
5,670(5,670)2,309(2,117)
(164)
(--)

3,360
(194)
(194)
335
(0)
44
(270)

(66)

(--)

(66)

(69)
101,637(27)
98,804(42)
2,833[Capital surplus]
Capital surplus at beginning of period
Capital surplus at end of period[Retained earnings]
Retained earnings at beginning of period
Increase in retained earnings(Net income)Decrease in retained earnings(Dividend paid)(Bonuses for directors and corporate auditors)(Decrease in retained earnings from increase inconsolidated subsidiaries)(Decrease in retained earnings from decrease inconsolidated subsidiaries)(Other)Retained earnings at end of period
ItemYear ended March 2003

Year ended March 2002%

Increase(decrease)%

Net sales
Cost of sales
Gross profit

141,628
97,84643,781

100.0
69.1
30.9

142,678
99,03943,639

100.0
69.4
30.6

(1,050)(1,193)
142

S,G& A Expenses
Operating income
Non-operating income
Non-operating expense
Ordinary income
Special gains(Gain of sales of stock ofaffiliated companies)
Special losses(Loss on write-down ofinvestment securities)
Amortization of unrecognizedeffect of change in accounting
for employees’ retirement
benefits(Other)
Income before taxes

31,474
12,307
1,012
919
12,400
(-)

22.2
8.7
0.7
0.6
8.8
-

32,848
10,7901,104
279
11,615
932
(932)

23.0
7.6
0.7
0.2
8.1
0.7

(1,374)
1,517
(92)
640
785
(932)
(932)

2,136
(822)

1.5

3,427
(1,986)

2.4(1,291)(1,164)

Income taxes
Income taxes deferred
Minority interests in earnings ofconsolidated subsidiaries
Net income(1,162)(1,162)0(151)
10,263

7.3

(278)
9,121

6.4

(127)
1,142

4,957
(283)
112

3.5
(0.2)
0.1

4,630
(1,229)
49

3.3
(0.9)
0.0

327
946
63

5,476

3.9

5,670

4.0

(194)

-10-

Consolidated Statements of Cash Flows(Unit: Millions of Yen)
Item
I

II

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization on consolidation goodwill
Equity in earnings of unconsolidated
subsidiaries and affiliates
Increase in accrued employees’ retirement
benefits
Decrease in allowance for doubtful accounts
Decrease in other allowancesInterest and dividend income
Other non-operating income
Interest expense
Other non-operating expenses andextraordinary losses
Loss on sale and revaluation of investment insecurities
Loss on sale and disposal of tangible fixed
assetsIncrease in trade notes and accounts receivable
Decrease in inventories
Increase in other current assets
Increase (decrease) in trade notes and accounts
payableDecrease in advances received
Decrease in other current liabilities
Bonuses paid to directors and corporate
auditors
Other
SubtotalInterest and dividends received
Other non-operating income received
Interest paid
Other non-operating expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for time deposits
Proceeds from refund of time deposits
Payments for purchases of marketablesecurities
Proceeds from sale of marketable securities
Payments for purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Payments for purchases of investment
securities
Proceeds from sale of investment securities
Other payments-11-Year ended March
2003
AmountYear ended March2002
Amount10,263
3,208
0
(143)

9,121
3,409
78
(198)

592

828

(52)
(708)
(417)
(430)
17
742

(25)
(340)
(454)
(326)
35
242

824

1,053

226

119

(4,076)
1,369
(14)
1,771

12,2002,537(50)(8,854)

(708)
(341)
(120)

(1,320)
(226)
(165)

28
12,028
609
430
(17)
(590)
(2,058)
10,402

6
17,669
506
280
(35)
(216)
(9,490)
8,713

(194)
272
(1,483)

(605)
98
(801)

5,100
(4,895)251(7,877)3,250(2,747)93(5,417)

1,973(1,140)4,398(4,288)Other proceeds
Net cash used in investing activities
III

Cash flows from financing activities
Proceeds from short-term debt (?borrowings)
Repayment of short-term debt (?borrowings)
Proceeds from long-term debt
Repayment of long-term debt
Payments for purchase of treasury stock
Cash dividends paid (including dividends paid tominority shareholders)
Net cash used in financing activities

IV Effect of exchange rate changes on cash and cash
equivalents
V Net increase (decrease) in cash and cash equivalents
VI Cash and cash equivalents at beginning of period
VII Cash and cash equivalents due to increase of
consolidated subsidiaries
VIII Cash and cash equivalents at end of period

-12-

993
(6,999)684(5,334)

150
(207)
2
(13)
(4,058)(2,145)

154
(96)
1
(45)
(25)
(2,158)(6,270)(2,169)(59)

145(2,927)32,9801,454

1,354
31,56956

31,50732,980Segment Information
1. Segment information by business type
Year under review (April 1, 2002 to March 31, 2003)

I Net sales and operating
incomeNet sales(1)Net sales to outside
customers(2)Inter-segment sales
Total
Operating expenses
Operating income
II Assets, depreciation andcapital expenditures
AssetsDepreciation andamortization
Capital expenditures(Unit: Millions of yen)

Water
Treatment
Chemicals

Water
Treatment
Facilities

47,116

94,512378
47,49441,000
6,493

Eliminationor corporate

Consolidated

141,628-

141,628204
94,71688,985
5,730

583
142,211
129,986
12,224

(583)
(583)
(665)
82

141,628
129,321
12,30737,351
1,110

82,607
2,196

119,958
3,307

53,730-173,689
3,307

1,487

5,575

7,063

-

7,063

Eliminationor corporate

Consolidated

Total

Previous fiscal year (April 1, 2001 to March 31, 2002) (Unit: Millions of yen)
Water
Treatment
Chemicals

Water
Treatment
Facilities

46,277

96,401

142,678-

142,678

351
46,62840,384
6,244

337
96,73992,201
4,537

689
143,368
132,585
10,782

(689)
(689)
(697)
8

142,678
131,887
10,79038,793
1,169

79,1582,318

117,951
3,487

54,193-

172,145
3,487

1,882

2,877

4,760

-

4,760

Total

I Net sales and operating
incomeNet sales(1)Net sales to outside
customers(2)Inter-segment sales
Total
Operating expenses
Operating income
II Assets, depreciation andcapital expenditures
AssetsDepreciation andamortization
Capital expenditures
Notes: a.

Business categorization
The business activities of the Kurita Group consist of manufacturing and sales of chemicals
related to water treatment, and manufacturing and sales of equipment and facilities related towater treatment. Accordingly, business is categorized into two segments, Water Treatment
Chemicals and Water Treatment Facilities, with consideration given to product lineups.

-13-

2. Segment information by location
Because net sales and assets in Japan for the year under the review and the previous year exceed morethan 90% of the totals for all segments, this section is excluded.

3. Overseas sales
Year under review (April 1, 2002 to March 31, 2003)(Unit: Millions of yen)
Asia
I

Overseas sales

II

Consolidated net sales

III

Overseas sales as a percentage of

15,837

North
America731

Europe620

Otherregions
1,237

Total
18,427
141,628

11. 2%

0.5%

0.4%

0.9%

13. 0%

consolidated net sales
Notes:

1)
3)

4)
5)

Regions are classified on the basis of geographic proximity
Countries or regions belonging to each category follow below.
Asia: South Korea, China, Taiwan, Singapore, Indonesia, Thailand
North America: United States
Europe: Germany
Other regions: Brazil
Overseas sales are the net sales of the Company and its subsidiaries in regions other thanJapan.
Overseas sales in the previous fiscal year were less than 10% of consolidated net sales, so thesection was excluded.

-14-

5. Sales, orders and production results(Unit: Millions of yen)

1. SalesBusiness segment

Water Treatment
Chemicals
Water Treatment
Facilities
Total

Year under review

Previous fiscal year

(April 2002 to March 2003)(April 2001 to March 2002)

Amount% of total

Amount% of total

47,116

33. 3%

46,277

32. 4%

94,512

66.7

96,401

67.6

141,628100.0

142,678

100.0(Unit: Millions of yen)

2. Orders and orders outstanding

Business segment

Water Treatment
Chemicals
OrdersWater Treatment
Facilities
Total

Water Treatment
ChemicalsYear under review

Previous fiscal year

(April 2002 to March 2003)(April 2001 to March 2002)

AmountAmount46,450% of total

36.2%% of total

46,953

33. 4%

81,98163. 8

93,538

66.6

128,431100.0

140,492

100.0

2,695

7.4

3,361

6.9

33,67192. 6

45,62293. 136,367100.0

48,984100.0

OrdersWater Treatment
outstanding
Facilities
Total

-15-

(Unit: Millions of yen)

3. Production results

Business segment

Water Treatment
Chemicals
Water Treatment
Facilities
Total

Year under review

Previous fiscal year

(April 2002 to March 2003)(April 2001 to March 2002)

Amount% of total

Amount% of total

48,03134.2%

45,80032. 9%

92,50965.8

93,32367.1

140,541100.0

139,124100.0

Note: Totals depend on selling price.

-16-