Kurita Water Industries Ltd.

Acquisition of U.S. Water(Securities code: 6370)

February 12, 2019

Contents
Acquisition Overview

p1

U.S. Water Overview

p2

Bolstering U.S. Business Foundationp3

Strategic Aim

p4

Acquisition Overview

Transaction⚫ Kurita Water Industries will acquire U.S. Water Services, Inc. (”U.S. Water”), which
manufactures and sells water treatment chemicals and facilities in the United States.

AcquisitionStructure⚫ Kurita America Holdings Inc., a wholly owned subsidiary of Kurita Water Industries, will
acquire all outstanding shares of Global Water Services Holdings Company, Inc., the wholly
owning parent company of U.S. Water, from ALLETE Enterprises, Inc.

Acquisition
Cost⚫ US$270 million (approx. ¥29.4 billion*1)(The final cost will be adjusted for working capital, etc., at closing.)

Funds
Procurement⚫ Cash on hand

*1: Converted at the exchange rate of US$1.00 = ¥1091

U.S. Water Overview
Basic information

Strengths◼ Head office location： United States (St. Michael, Minnesota)◼ Date of founding： 1997◼ Shareholder： ALLETE, Inc. (indirectly owns 100% of shares)◼ Number of employees： Approx. 500 (as of December 31, 2018)◼ Net sales (FY2018)： Approx. US$172 million (approx. ¥18.8 billion*1)◼ Business description： Manufacture, sale and service of water treatment
chemicals, water treatment facilities, and consumables(filters, membranes, etc.)

Providing optimal comprehensive water treatment
solutions through engineeringｚ services combining
water treatment chemicals and facilities
Strong customer base covering broad arrayof industries throughout North America(approx. 5,000 customers)

Business overview
Water treatment facilities⚫ Manufacture, sales andengineering of facilitiesWater treatment chemicals⚫ Manufacture and salesof chemicals

31%⚫ Main products include
systems for water andwastewater treatment,
ion exchange, reverse
osmosis, filtration, andpurification.

Commercialfacilities

Net sales
breakdown
by industry

Food/Beverage

69%⚫ Main products include
scale inhibitors,
corrosion inhibitors,
dispersants, andbiocides

Oil/GasBio-ethanol
Other

Electric power

Healthcare

Local govts

Agriculture(Reference) FY2018 net sales breakdown by business*1: Converted at the exchange rate of $1.00 = ¥1092

Bolstering U.S. Business Foundation
Aiming for a leap in U.S. growth, following success in Asia and Europe

U.S. Water (head office)

Other

Midwest16％

32％

Fremont
Washington
Minnesota

East
13％

U.S.Water
FY2017 net sales
breakdown by region

California
Texas

Mississippi

Pentagon Technologies
Group, Inc.

WestSouth

19％

20％

⚫ Kurita key locations

FractaKurita America⚫ U.S. Water key locations⚫ Equity affiliate

3Strategic Aim
U.S. Water

Kurita Group
R&D, solutions know-how

Expansion of existing chemicals lineup

Deployment in existing facility lineup andtechnology sharing

Synergy

Deploy across nationwide customer base

Synergy

Chemicals for food andbeverage, bio-ethanol industries

Synergy

Unit-type water treatment
facilities, facility design andmanufacturing technologies

Provision of high value-added, comprehensive solutions nationwide in U.S.

Establishment of global platform for four regions
4

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, actual
results may differ from those specified or implied by these forward-looking statements and projections.