FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Six Months Ended September
30, 2018
Tokyo, Japan, November 9, 2018—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 128,587 million yen and profit attributable to owners ofparent of 6,516 million yen, or 58.04 yen per share, for the six months ended September
30, 2018 (April 1, 2018 – September 30, 2018).
Results of Operations
Total consolidated orders for the Kurita Group (Kurita Water Industries Ltd. and its
consolidated subsidiaries and equity method affiliates) in the six months ended
September 30, 2018 rose 11.4% from the level of the year-ago period, to 139,584
million yen, and net sales increased 18.9%, to 128,587 million yen. Operating income
was 10,272 million yen, up 1.2% versus the same the year-ago period, and ordinary
income was 10,376 million yen, up 1.0%. Profit attributable to owners of parent
amounted to 6,516 million yen, down 12.1%.
Looking at the market environment surrounding the Kurita Group, in Japan,
production in the manufacturing industry remained firm, and capital expenditure also
continued to be solid on the back of robust corporate earnings. Overseas, although theeconomic outlook became increasingly uncertain mainly due to trade friction between
the United States and China, the U.S. economy remained firm, and economies in Europe
and emerging countries especially in China also recovered moderately.
In this environment, the Group sought to develop and market competitive products
and services using IT and sensing technologies. It also proposed solutions to customers’
challenges including the reduction of environmental footprints, energy saving andimprovements in productivity.
The Group has expanded the scope of application of the percentage-of-completion
method mainly in the Water Treatment Facilities business. As a consequence, net sales
increased 6,655 million yen, and operating income and ordinary income rose 1,110
million yen, respectively. In addition, the Group recorded a 2,162 million yen gain on
sales of shareholdings of other listed companies (gain of sales of investment securities)
in extraordinary income, while a 2,885 million yen loss associated with the transfer of
the aluminum compound business of Kurita Europe GmbH (loss on transfer of business)
was posted in extraordinary losses.

1

Segment Information
The Group consists of two reportable segments in its segment information: Water
Treatment Chemicals and Water Treatment Facilities
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 52,473 million
yen, up 17.7% versus the same period of the fiscal year ended March 31, 2018, whilesales rose 17.7%, to 51,875 million yen.
Operating income climbed 17.3%, to 4,516 million yen mainly due to the increase inoverseas sales.
In Japan, orders and sales increased only slightly due to the absence of the posting of
spot projects of equipment and services that was made in the year-ago period, whilesales and orders in cooling water treatment chemicals and process treatment chemicals
for iron and steel increased thanks to segment efforts to develop new customers byproposing problem solutions using new products and services.
Overseas, both orders and sales rose, reflecting an increase in the consolidation
period for operating results of Hansu Co., Ltd. in South Korea, which became aconsolidated subsidiary in the fourth quarter of the previous fiscal year, by six months,
in addition to an increase in demand for water treatment, particularly in Asia.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 87,110 million yen,up 7.9% versus the same period of the previous fiscal year. Partly thanks to the
expansion of the scope of application of the percentage-of-completion method, salesrose 19.8%, to 76,711 million yen.
Operating income declined 8.6%, to 5,763 million yen due to the deteriorated cost of
sales ratio because of the occurrence of unprofitable projects, despite an increase inincome due to higher sales.
In Japan, in the electronics industry, both orders and sales increased in water
treatment facilities. Orders and sales in maintenance services rose, thanks to increase oforders for expansion and remodeling projects against a backdrop of a rise in capacity
utilization at customers’ plants.
In general industries, orders and sales of water treatment facilities decreased, butorders and sales of maintenance services increased mainly for remodeling andexpansion projects at customers’ plants for the purpose of expanding production
capacity. Meanwhile, orders for water treatment facilities for electric power and soil
remediation increased due to orders received for large-scale projects, and sales also
increased significantly thanks to progress in construction work for large-scale projects
the orders for which were received in the previous fiscal year.
Overseas, both orders and sales of water treatment facilities increased due to orders
received for large-scale projects in China and South Korea and progress in constructionin these projects. Sales in the ultrapure water supply business in Japan and overseas
increased due to the posting of sales from expansion projects.

2

Financial Condition(1) Assets, liabilities, and net assets
1) Total assets: 342,973 million yen (increased 19,927 million yen from the end of theprevious fiscal year)
Current assets totaled 173,172 million yen at the end of the first half (September 30,2018), an increase of 12,763 million yen from the end of the previous fiscal year (March
31, 2018). This was mainly a result of an increase of 9,933 million yen in funds in hand,or cash and deposits and marketable securities, due to proceeds from sales of investment
securities and the receipt of long-term advances received, as well as an increase of 4,218
million yen in trade accounts receivable due to higher sales, despite a decrease of 1,681
million yen in work in progress due to the absence of posting of the relevant projects
chiefly associated with the expansion of the scope of application of thepercentage-of-completion method.
Non-current assets totaled 169,801 million yen at the end of the six-month period(September 30, 2018), an increase of 7,164 million yen from the end of the previous
fiscal year. This increase mainly reflected capital expenditure in the ultrapure watersupply business (Water Treatment Facilities business), which outweighed thedepreciation of existing facilities.
2) Liabilities: 100,343 million yen (increased 18,150 million yen from the end of theprevious fiscal year)
Current liabilities totaled 57,377 million yen at the end of the period, an increase of
1,228 million yen from the end of the previous fiscal year. The increase mainly reflecteda rise of 5,889 million yen in Other due to an increase in advances received, while tradeaccounts payable and income taxes payable decreased 4,493 million yen and 1,237
million yen, respectively.
Non-current liabilities totaled 42,965 million yen at the end of the period, an increaseof 16,921 million yen from the end of the previous fiscal year. This increase mainlyreflected a rise of 16,859 million yen in Other due to the receipt of long-term advances
received.
3) Net assets: 242,629 million yen (increased 1,776 million yen from the end of theprevious fiscal year)
Net assets totaled 242,629 million yen at the end of the period, an increase of 1,776
million yen from the end of the previous fiscal year.
The increase was mainly due to a rise of 3,273 million yen in shareholders’ equity,
while accumulated other comprehensive income declined 1,342 million yen. The major
factor for the increase in shareholders’ equity was a climb of 3,554 million yen inretained earnings as a result of posting profit attributable to owners of parent, which
outweighed the posting of year-end dividends. Meanwhile, the major factor for thedecrease in accumulated other comprehensive income was a 2,491 million yen decline
in foreign currency translation adjustments associated with the appreciation of the yen
against foreign currencies, despite a 1,240 million yen increase in unrealized gains onavailable-for-sale securities as a result of rising unrealized gains on investment
securities held.

3

(2) Cash Flows
1) Cash flows from operating activities
Net cash provided by operating activities during the first half of the fiscal year ending
March 31, 2019, totaled 25,913 million yen, an increase of 14,956 million yen from ayear ago. This was primarily a result of an increase in cash due to income before income
taxes of 9,653 million yen, depreciation and amortization of 9,603 million yen including
the amortization of goodwill, and an increase in advances received of 17,366 million
yen, as well as a decrease in cash due to an increase in notes and accounts receivable trade of 5,265 million yen and income taxes paid of 4,829 million yen.
2) Cash flows from investing activities
Net cash used in investing activities stood at 27,169 million yen, an increase of 17,572
million yen from a year earlier, chiefly reflecting net deposits into time deposit accountsof 13,834 million yen, payments for the purchase of property, plant and equipment,
including capital expenditures for the ultrapure water supply business, of 13,287 million
yen, and other outflows.
3) Cash flows from financing activities
Net cash used in financing activities came to 4,348 million yen, a decrease of 4,692
million yen from a year earlier, attributable mainly to cash used for cash dividends paidof 2,926 million yen.
Outlook for the Fiscal Year Ending March 31, 2019
With respect to the consolidated earnings forecast for the fiscal year ending March 31,
2019, the Group will revise its forecast for the full-year net sales stated in “Earnings
Release for the Fiscal Year Ended March 31, 2018” announced on April 27, 2018 as
described below in light of a significant increase in orders received during the firstsix-month period under review compared with the initial forecast.
(Consolidated earnings forecast)
Revision of the consolidated earnings forecast for the fiscal year ending March 31, 2019
(April 1, 2018 – March 31, 2019)
Net sales

Previous forecast (A)Revised forecast (B)Change (B – A)
Percent change (%)
For reference:
Fiscal year ended
March 31, 2018

OperatingincomeOrdinary
incomeProfitattributableto owners ofparent

Net income
per share(Yen)

Million yen

Million yen

Million yen

Million yen

Yen

255,000
260,000
5,000
2.0

24,00024,00024,20024,20017,00017,000151.41151.41

–

–

–

–

–

–

–

–

236,815

22,475

22,104

17,897159.37

4

Financial Statements — Consolidated
Balance Sheet — Consolidated

AssetsCurrent assets
Cash and deposits
Notes receivable – trade
Accounts receivable – tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets(Million yen)

As ofMarch 31, 2018
Amount

As of
September 30, 2018
Amount61,086
7,870
78,994
3
3,968
3,621
2,800
2,528
(464)
160,40969,5797,869
83,212
1,443
4,103
1,940
2,653
2,850
(480)
173,172

11,132
42,84332,051
86,02812,19343,74536,05691,996

20,362
10,641
31,003

21,567
9,725
31,29235,683
10,099(176)
45,605
162,637
323,046

35,91010,778(177)
46,511
169,801
342,9735

(Million yen)

As ofMarch 31, 2018
Amount

As of
September 30, 2018
AmountLiabilities
Current liabilities
Notes payable – trade
Accounts payable – trade
Income taxes payable
Provision for bonuses
Other provision
Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
Provision
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

2,073
26,801
4,806
2,420
1,015
19,03156,1492,636
22,308
3,569
2,783
1,159
24,92057,377

16,610191
9,242
26,04482,193

16,688
175
26,10142,965
100,343

13,45010,959209,149(10,943)
222,615

13,450
10,665
212,703(10,931)
225,888

16,558

17,798

(1)
(380)
6
3
16,1872,049
240,853
323,046(90)(380)(2,485)2
14,845
1,895
242,629
342,9736

Statements of Income and Comprehensive Income — Consolidated
Statement of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors' and corporate auditors' compensations,salaries and allowances
Provision for bonuses
Research and development expenses
Other
Total Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Loss on valuation of investments in capital
Acquisition expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on transfer of businessTotal extraordinary losses
Income before income taxes
Income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

Six months ended
September 30, 2017
Amount108,107
71,57536,532Six months ended
September 30, 2018
Amount128,587
89,29039,297

9,487

10,3331,465
2,554
12,871
26,378
10,153

1,628
2,683
14,37829,024
10,272

94
281
–

73
292
277

72

34

286
734

431
1,109

209
171
–
70
162
612
10,274

167
–
251
290
295
1,005
10,376

206
206

2,162
2,162

–
–
10,480
3,015
7,465
52
7,412

2,885
2,885
9,653
3,152
6,500
(15)
6,516

7

Statement of Comprehensive Income(Million yen)

Net income
Other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

Six months ended
September 30, 2017
Amount7,465

Six months ended
September 30, 2018
Amount
6,500

1,471

1,242

(798)
656
(4)

(89)
(131)
(0)

(17)

(31)

1,306
8,771

989
7,490

8,732

7,566

39

(75)

8

Statement of Cash Flows — Consolidated(Million yen)Six months ended
September 30, 2017
AmountCash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in provision
Gain on sales of investment securities
Loss on transfer of business(Increase) decrease in notes and accounts receivable –trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable –trade
Increase (decrease) in advances received
Increase (decrease) in net defined benefit liability
Income taxes paid
Other
Net cash provided by (used in) operating activities
Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of property, plant andequipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales and redemption of investment
securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other payments
Other proceeds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term loans payable
Repayment of finance lease obligations
Proceeds from sales of treasury shares
Purchase of treasury stock
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries without change inscope of consolidation
Net cash provided by (used in) financing activities

Six months ended
September 30, 2018
Amount10,480
7,648
561
382
(206)
–

9,653
8,779
824
631
(2,162)2,885(2,197)(5,265)(1,769)1,035(1,371)(3,250)229
234(2,911)(122)
10,957

17,366123(4,829)122
25,913(9,533)
7,692(15,659)
1,825(7,111)(13,287)

30
(4)

15
(0)

286

3,438

(137)

(2,338)(913)
93(9,597)(1,424)261(27,169)

–
(250)
(322)
4
(5,588)(2,863)
(19)

383
(308)
(387)
6
(1)
(2,926)(18)–(1,094)(9,040)(4,348)9

(Million yen)Six months ended
September 30, 2017
AmountEffect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiodIncrease in cash and cash equivalents due to thechange of the closing date of consolidated
subsidiaries
Cash and cash equivalents at the end of the period

Six months ended
September 30, 2018
Amount32

506(7,648)(5,098)65,43858,917–

1,097

57,78954,91510

Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Six months ended September 30, 2018 (April 1, 2018 – September 30, 2018)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Six months ended September 30, 2018 (April 1, 2018 – September 30, 2018)
Not applicable(Changes in the scope of consolidation or the scope of application of the equity method)(Changes in the scope of consolidation)
From the first quarter of the current fiscal year, Fracta, Inc. and Fracta (a wholly-owned subsidiary of
Fracta, Inc.) are included in the scope of consolidation associated with the acquisition of shares ofFracta, Inc.
(Changes in matters related to the fiscal year of consolidated subsidiaries)
In the past, for all overseas consolidated subsidiaries whose closing date was December 31, the financial
statements as of December 31 had been used and necessary adjustments had been made forconsolidation for important transactions that had occurred during the period between their closing date
and the consolidated closing date. However, the Group has changed the closing date of all overseas
consolidated subsidiaries but Kurita Water Industries (Dalian) Co., Ltd., Kurita Water Industries(Jiangyin) Co., Ltd., Kurita Water Industries (Suzhou) Ltd., Kuritec (Shanghai) Co., Ltd. and Kurita do
Brasil Ltda. to March 31. For the five companies above, the Group has changed their account settlement
method to one in which a provisional closing equivalent to the full-year account settlement is made on
the consolidated closing date. In association with this change, the Group has made an adjustment for
profits and losses for three months from January 1, 2018 to March 31, 2018 using retained earnings andconsolidated them in the first six-month period under review, and made an adjustment for cash flows
using cash and cash equivalents at the beginning of the period and consolidated them.
(Changes in accounting policies)(Changes to accounting policies that are difficult differentiating from changes to accounting estimates)(Changes to the depreciation method of property, plant and equipment)
In the past, the Company adopted the declining-balance method for the deprecation of buildings(excluding facilities attached to buildings) acquired on or after April 1, 1998, facilities attached tobuildings and structures acquired on or after April 1, 2016 and property, plant and equipment(excluding leased assets) except for facilities of ultrapure water supply business which the Company
had installed at customer sites. However, the Company has changed the depreciation method for themto the straight-line method from the first quarter of the current fiscal year.
The Company has made this change because the pattern of consumption of the economic benefits ofproperty, plant and equipment has changed as the expansion of the global business and a transition tothe optimum production system have become clear. Given that actual production on a consolidated
basis generally stays at a certain level and that the operation of facilities is also stable, the Company
has determined that the straight-line method is more suitable for the consumption pattern of theeconomic benefits of property, plant and equipment.
The impact of this change on profits and losses in the first six-month period under review is minor.

11

(Application of Accounting Unique to the Creation of Quarterly Consolidated Financial Statements)
Calculation of tax expense
The Company reasonably estimates an effective tax rate after the application of tax effect accounting fornet income before income taxes for the consolidated fiscal year and multiplies the net income before
income taxes by the estimated effective tax rate.
(Additional Information)(Adoption of the “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
The Company has adopted the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28 on February 16, 2018), among others, from the beginning of the first quarter ofthe current fiscal year. As a result, deferred tax assets are presented in investments and other assets, anddeferred tax liabilities are presented in non-current liabilities.
(Expansion the scope of application of the percentage-of-completion method)
In the past, the Company applied the percentage-of-completion method to construction work forprogress of which the certainty of outcome can be recognized and applied the completed-contract
method to other construction work. However, the Company has applied the percentage-of-completion
method to other construction work from the first quarter of the current fiscal year because a reliable
estimate has become possible for most of them due to the development and strengthening of the costmanagement system.
As a result, net sales have increased 6,655 million yen, and operating income, ordinary income andincome before income taxes have increased 1,110 million yen, respectively.
(Statement of income)* Loss on transfer of businessSix months ended September 30, 2018 (April 1, 2018 – September 30, 2018)
A loss on transfer of business of 2,885 million yen comprises mainly of a loss on transfer pertaining to thesale of the aluminum compound business of Kurita Europe GmbH, its non-core business, andcompensation money for the business continuation.

12

(Segment Information)
1. Sales and income by reportable segment
Six months ended September 30, 2017 (April 1, 2017 – September 30, 2017)(Million yen)

Reportable Segments

Amounts
reported on
Adjustments the quarterly
statements of(note 1)income(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

Sales
Sales to outside customers
Inter-segment sales or transfers

44,074
202

64,032
128

108,107
330

–
(330)

108,107–

Total

44,27664,161

108,438(330)

108,107

3,850

6,307

10,158(5)

10,153

Segment income

Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income adjustments.
2. Segment income is shown at the operating income level.

Six months ended September 30, 2018 (April 1, 2018 – September 30, 2018)(Million yen)

Reportable Segment

Sales
Sales to outside customers
Inter-segment sales or transfers
Total
Segment income

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

51,875392
52,2684,516

76,711
694
77,406
5,763

128,587
1,087
129,674
10,279Amounts
reported on
Adjustments the quarterly
statements of(note 1)income(note 2)–
(1,087)(1,087)(7)

128,587–
128,587
10,272

Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income adjustments.
2. Segment income is shown at the operating income level.

2. Matters related to changes in reportable segments(Changes in the depreciation method of property, plant and equipment)
As stated in changes in accounting policies, the Company has changed the depreciation method forcertain property, plant and equipment from the declining-balance method to the straight-line method fromthe first quarter of the current fiscal year. Associated with this, the Company has also changed thedepreciation method for property, plant and equipment in the relevant reportable segments from thedeclining-balance method to the straight-line method.
The impact of this change on segment income in the Water Treatment Chemicals business and the Water
Treatment Facilities business in the six months under review is minor.
(Expansion of the scope of application of the percentage-of-completion method)
As stated in additional information, the Company has expanded the scope of application of thepercentage-of-completion method from the first quarter of the current fiscal year.
As a result, net sales in the Water Treatment Facilities business has increased 6,655 million yen in the six
months under review, and the segment income has risen 1,110 million yen.

13

(Significant subsequent events)(Acquisition of equity interests through a consolidated subsidiary)
On October 5, 2018, the Company concluded an agreement to acquire 25.0% of shares of Pentagon
Technologies Group, Inc. (hereinafter “Pentagon Technologies”), a precision tool cleaning company in
the United States, through Kurita America Holdings Inc., a wholly owned subsidiary of the Company.
Pentagon Technologies will become an affiliated company accounted for using the equity method of theCompany.
1. Name, address, the name of representative, the amount of capital and business of the company whose
equity interests the Company will acquire(1) Name:

Pentagon Technologies Group, Inc.

(2) Address:

21031Alexander Ct. Hayward, California, U.S.A.

(3) Name of representative:

Chairman, Irwin H. Pfister(4) Amount of capital:

2,000 US dollars(5) Business:

Precision tool cleaning business, the development of surface particle
measuring instruments of semiconductor manufacturing equipment, andthe provision of clean room-related services

2. Purpose of acquiring equity interests
The Group aims to significantly expand its overseas businesses by establishing a global platform built onfour pivotal regions – Japan, Asia, Europe and the Americas, and this investment will be made as part of
the Group’s initiatives to strengthen business in the United States, a strategic market. The Group also
aims to further accelerate business growth and provide new value by creating synergies with the domestic
tool cleaning business it is developing. It will do this by further strengthening market competitivenesswith the acquisition of the foundations for service business overseas in the electronics industry, which theGroup positions as one of the priority business domains, and through the acquisition of the advanced
cleaning technology and know-how of Pentagon Technologies.
3. Time of acquiring equity interests
The Group will acquire equity interests as soon as it has obtained the approval from the authorities.
4. Acquisition price and the ownership ratio after acquisition(1) Acquisition price:

50,000,000 US dollars(2) Ownership ratio after acquisition: 25.0%

14

Supplementary Information — Consolidated(1) Order Intake(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Six months ended September 30,
2017
2018
%
AmountAmount44,58280,717125,300

35.6
64.4
100.0

52,473
87,110139,584

%
37.6
62.4
100.0

(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Six months ended September 30,
2017
2018
%
AmountAmount44,07464,032
108,107

40.8
59.2
100.0

51,87576,711
128,587

%
40.3
59.7
100.0

(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Six months ended September 30,
2017
2018
%
AmountAmount
917
7,901
8,819

10.4
89.6
100.0

1,613
11,323
12,936

%
12.5
87.5
100.0

(4) Depreciation (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Six months ended September 30,
2017
2018
%
AmountAmount
843
5,744
6,588

12.8
87.2
100.0

998
6,498
7,496

%
13.3
86.7
100.0

15

Disclaimer* This document is an English translation of the Earnings Report for the six Months
Ended September 30, 2018 as reference information primarily for overseas investors.
If there are any discrepancies between the Japanese version and the English version,
the Japanese version shall take precedence in all cases.
* The quarterly financial report is outside the scope of audit procedures by certified
public accountants and audit firm.
* Comment regarding appropriate usage of earnings forecast, and other special notes
Forward-looking statements such as earnings forecasts contained in this material are
based on information currently available for the Company and certain assumptions
which the Company deems reasonable, and the Company does not guarantee thatthey will be realized. Actual results may differ materially from forecasts due tovarious factors. Please see “Outlook for the Fiscal Year Ending March 31, 2019” onpage 4 of the accompanying materials for notes to the use of earnings forecasts andpreconditions, or assumptions, for the forecasts.

16