Summary of Questions Asked and Answers Given at the Financial Results Briefing for theFiscal Year Ended March 31, 2011
Date and time: Monday, May 2, 2011, from 3:30 p.m. to 4 p.m.
Place: Belle Salle Yaesu
Notice: This summary is a reference designed for the convenience of those who could not attend thefinancial results briefing stated above. Please note that this is not a word-for-word transcript of all
remarks made at the session, but is a summary prepared by Kurita Water Industries Ltd.
Q: What will be the ratios of semiconductors and flat-panel displays in Asia in your business forelectronics manufacturers overseas this fiscal year?
A: Flat-panel displays occupied a higher ratio in the business in the fiscal year just ended, but weexpect the ratio of semiconductors to move ahead in the fiscal year ahead of us.
Q: Is there a possibility that costs in your ultrapure water supply business will rise again this fiscalyear?
A: Costs in our ultrapure water supply business rose in the fiscal year just ended because of theperiod in which the cost was reported to have accrued. In fact, costs in this business returned tonormal levels in the previous fiscal year, after dropping to an unusually low level in the fiscalyear immediately prior to that. We don’t expect the cost of the business to increase in the current
fiscal year. The profit margin for our ultrapure water supply business does not change
substantially because we have basic contracts for the business. We will continue our efforts tolower the costs of this business.
Q: How do you plan to contribute to returning power supply to normal levels in the aftermath of theGreat East Japan Earthquake? Do you plan to contribute in the maintenance area or in thehardware field?
A: The earthquake caused great damage to thermal power plants within the jurisdictions of Tokyo
Electric Power Company and Tohoku Electric Power Inc. We must meet their needs forre-launching support. We are making final checks on our material procurement and operational
procedures now.
Q: How are you contributing to restoration work in fields other than power supply, such as electronic
components?
A: We have received many requests for post-quake assistance, including support for plantre-launching, since the Great East Japan Earthquake. We have completed our assistance in
response to almost all requests received for plant re-launches. The tsunami damaged three major
markets (customers in the petrochemical, paper-pulp, and steel industries) for our water treatment
chemicals because they are located on the coast. We are working to restore customer plants at
the moment. The quake also damaged the clean rooms at many semiconductor and flat-panel
display plants. In addition, we are helping customers in the automobile and material industries
restore their facilities now.
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Q: Your medium-term management plan will end with the fiscal year ahead of us. Why do yourresults forecasts for this fiscal year differ from numerical targets you had set in the management
plan? Are changes in external conditions the cause of their difference? Are there things you haveleft unfinished as president?
A: I have taken a number of steps to further our growth since assuming the post of the president. But
economic environment was sluggish. The major earthquake is another unfortunate factor. I will
step down from the post of president on this occasion to encourage our younger generation tospeed up the execution of the ideas set out in the current management plan. I have studied theorganizations, schemes, and strategies for expanding our operations in other countries,
particularly those in Asia. I have laid the foundations. I would like to ask my predecessor to buildon this foundation as he puts his ideas into action.
Q: Tell us about your projects for small to midsize flat-panel displays in the ultrapure water supplybusiness.
A: We have two projects for which facilities are under construction now, one for NAND flash
memories and the other for LCD’s for smartphones. Our customers are shifting their investment
approach from the construction of large facilities to investment in stages based on merchandise
sales trends. The nature of the business, such as the types of wastewater treated, are alsochanging in response to changes in base and other materials at customers who are alreadyreceiving ultrapure water from us. Our ultrapure water supply business will not expand
significantly for that reason. But companies must invest capital to a certain extent in this area. So
the ultrapure water supply business will not decrease significantly any time soon.
Q: What is the latest status of your soil remediation business? Has the great earthquake had any
effect on the business?
A: Both orders and sales are continuing to decline for our soil remediation business. The earthquake
is also affecting the business. In many cases, we spend one or two years to remedy soil. But wehave now been forced to suspend many of our soil remediation operations because of thehigh-risk conditions. The business is beginning to recover in the greater Tokyo area, but orders
are very limited in other regions. However, the need to state liabilities on the balance sheets islikely to rise with the comprehensive adoption of the International Financial Reporting Standards
that is pending. We expect this change to encourage soil remediation, rather than posting aliability.
Q: What was the extent of the effects from the suspension of operations at customer plants for thewater treatment chemicals business following the earthquake?
A: sales for our water treatment chemicals business fell in areas such as Iwate, Miyagi, Fukushima,Ibaraki, and Chiba in the period immediately after the quake. But they have gradually begun torecover.
Q: What are the factors that led to your decision to step down as the president? My impression is thatyour term of office was short. In what way do you think you have laid the foundations for futurebusiness, such as the expansion of the wastewater recycling business in Asia?
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A: People have pointed out that what Kurita lacks at present is potential for growth. I feel the sameway myself. The issue for us has been where to concentrate our resources to achieve growth. InJapan, we have achieved to a certain degree on devoting everything to our service operations. We
have not been able to do many new things overseas. But we are planning to shift our focus tolocalization in our operations outside Japan. We have excellent opportunities to expand ourbusinesses to both local companies and their counterparts in North America and Europe. We also
have new technologies. I eliminated words such as “global” and “overseas” from office namesand titles used internally out of a wish to change our tradition of attaching top priority todomestic operations and to urge all our employees to become involved in operations in othermarkets. My retirement from the post of the president after two years may seem too early, but thisis the fiscal year for undertaking a new initiative. It is also the year for drafting a new
three-year business plan. I felt that it would be better for Kurita to draft the new plan under a newleader. I would like you to consider my departure from the top post as a positive decision, which Imade based on my own assessment.
Results forecasts presented and other statements relating to the future made in this document are
based on information currently available and certain assumptions, which the Company considers
reasonable. A variety of factors may cause actual financial results and other forward-looking
statements to differ materially from the forecasts.

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