Kurita Water Industries Ltd.

Results Presentation for
the First Quarter of the Fiscal YearEnding March 31, 2022
(Securities code: 6370)

August 2, 2021

Table of Contents

12

Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2022

p1-9

Progress on Priority Measures

p 10 - 13

1

Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2022

Overview of Results
1Q of FY ended
03/2021

1Q of FY ending
03/2022

YoY ChangeOrders

65.4

77.6

+18.6%

141.0+10.5%Net Sales

61.0

63.2

+3.6%

128.0(2.3%)

Business Profit

5.6

5.9+4.6%

14.0(0.3%)

Net of Other Income andExpenses

0.2(0.1)ー(0.5)－Operating Profit

5.8

5.8(0.5%)

13.5(18.0%)

Profit Before Tax

5.7

5.6(0.9%)

13.1(17.3%)

Profit Attributable to Owners ofParent

3.9

3.7(4.9%)

8.6(20.2%)

Basic Earnings per Share (yen)35.02

33.29(4.9%)

76.55(20.2%)USD (yen)

107.62109.49EUR (yen)

118.48131.96

CNY (yen)

15.17

16.96

(Billions of Yen)

Foreign
Exchange Rate

1H Forecast

YoY Change Kurita AquaChemie Limited in the Middle East and Keytech Water Management in Canada, which are Water Treatment
Chemicals businesses, are consolidated from the first quarter under review.
 Orders increased, reflecting a recovery in demand for water treatment chemicals overseas and increases in orders forwater treatment facilities and maintenance for the electronics industry.
Note) The PPA for Pentagon Technologies Group, Inc., which was consolidated in the previous fiscal year, was determined, and the results in the first quarter of the fiscal year
ended March 31, 2021 have been revised retroactively.
1Results by Segment(Billions of Yen)

1Q of FY
ended03/2021

1Q of FY
ending03/2022

Orders65.4

Net Sales
Total

Water
Treatment
Chemicals

Water
Treatment
Facilities

YoY Change

1H Forecast

77.6+12.2

141.0

61.0

63.2+2.2

128.0

Business Profit

5.6

5.9+0.3

14.0

Business Profit
Margin9.2%

9.3%+0.1pp

10.9%

Operating Profit

5.8

5.8(0.0)

13.5

Orders25.7

29.2+3.5

56.3

Net Sales

24.5

27.9+3.4

56.0

Business Profit

2.8

3.2+0.4

8.1

Business Profit
Margin

11.4%

11.6%

+0.2pp14.5%

Operating Profit2.8

3.2+0.5

7.8

Orders

39.7

48.4

+8.7

84.7

Net Sales

36.5

35.3(1.2)

72.0

Business Profit

2.82.7(0.2)

5.9

Business Profit
Margin7.8%

7.5%(0.3pp)8.2%

Operating Profit

3.1

2.6(0.5)

5.7

 Both net sales and profit in the Water Treatment
Chemicals business rose chiefly due to a recovery indemand for chemicals overseas.
 Orders in the Water Treatment Facilities businessincreased, reflecting increases in orders for facilities
overseas and maintenance in Japan and overseas.
 Net sales in the Water Treatment Facilities businessdecreased chiefly due to the absence of the sales
from large projects overseas posted in the same
period of the previous fiscal year.
 Business profit in the Water Treatment Facilities
business fell due to the decrease in net sales and anincrease in expense as a result of a recovery in sales
activities, despite an improvement in the cost of sales
ratio.

Note) The PPA for Pentagon Technologies Group, Inc., which was consolidated in the previous fiscal year, was determined, and the results in the Water Treatment Facilities business in the firstquarter of the fiscal year ended March 31, 2021 have been revised retroactively.

2

Factors in Change in Business Profit (YoY Change)(Billions of Yen)

8.0

5.6

4.0
1Q of FY
ended
03/2021
ResultImpact of newconsolidation+0.1

Impact ofincreased
revenue+0.8

Cost of sales ratio
improvement+0.9

Increase in
SG&A
expenses
(1.6)

5.9

 An increase in sales inthe Water Treatment
Chemicals business due
to a recovery in demand An improvement in theproduct and service mix
in the Water Treatment
Facilities business A decrease in the Water
Treatment Facilitiesbusiness Improvement inprofitability at overseas
subsidiaries

An increase in expense
due to a recovery in sales
activities

1Q of FY
ending03/2022
Result0.03

Water Treatment Chemicals
1Q of FY ended 1Q of FY ending
03/2021
03/2022(Billions of Yen)

(Billions of Yen)

YoY Change

1H Forecast

25.7

29.2

+3.5

56.3

Domestic

11.4

11.6

+0.2

22.6

Overseas

14.4

17.7

+3.3

33.7

Net Sales

24.5

27.9

+3.4

56.0

Domestic

10.1

10.2+0.1

22.3

Overseas

14.4

17.7

+3.3

33.7

Business Profit2.8

3.2+0.4

8.1Business Profit
Margin

11.4%

11.6%

+0.2pp14.5%

Operating Profit

2.8

3.2+0.5

7.8

Orders1Q of FY ended 1Q of FY ending
03/2021
03/2022

 Domestic net sales increased slightly due to arecovery in demand as a result of an improvement incapacity utilization at customers' plants, while there
were no increases in inventories at customers, acontrast to the same period of the previous fiscalyear.
 Overseas net sales increased, reflecting the impactof new consolidated subsidiaries, a recovery indemand for chemicals, and a positive effect offoreign exchange rates due to the weaker yen.
 Business profit rose, with an increase in SG&A
expenses more than offset by an increase in netsales.

Overseas Net Sales by Region(Billions of Yen)

 Kurita AquaChemie and Keytech Water
Management were newly consolidated.

YoY Change

1H ForecastAsia

5.2

6.3

+1.1

12.2

Factors in Change (Billions of Yen)

North & SouthAmerica

4.9

5.5+0.5

11.3

Organic Change

+1.0

EMEA

4.3

5.9+1.7

10.2

Effect of Foreign Exchange Rate+1.2

14.4

17.7+3.3

33.7

New Consolidation+1.0Total4Water Treatment Facilities (for the domestic electronics industry)(Billions of Yen)

1Q of FY ended 1Q of FY ending
03/2021
03/2022

YoY Change

1H Forecast

13.2

15.4+2.1

29.6

Facilities

0.8

0.9+0.1

3.0

Maintenance

3.6

4.9+1.3

7.6

Ultrapure Water
Supply Business

6.9

7.3+0.4

14.9

Tool Cleaning

2.0

2.4+0.4

4.2

Net Sales

12.8

14.2

+1.3

29.6

Facilities

0.5

1.0+0.5

2.5

Maintenance

3.5

3.5(0.0)

8.1

Ultrapure Water
Supply Business

6.9

7.3+0.4

14.9

Tool Cleaning

2.0

2.4

+0.4

4.2

Orders Orders for facilities were on a par with the year-ago
level. Net sales increased due to progress in large
construction projects for which orders were placed in
the previous fiscal year.

 Orders for maintenance increased, reflecting theexpansion of facilities and consumables
replacement. Net sales remained flat from the same
period of the previous fiscal year.
 Both orders and net sales in the ultrapure watersupply business increased due to thecommencement of supply in the previous fiscal year
for a certain contract.
 Both orders and net sales rose in tool cleaning due
to acquisitions of new projects.

5Water Treatment Facilities (for domestic general industries)(Billions of Yen)

1Q of FY ended 1Q of FY ending
03/2021
03/2022

YoY Change

1H Forecast

15.5

17.1

+1.6

32.6

Energy andInfrastructure

13.8

15.5

+1.7

27.2

Soil Remediation

1.0

0.9(0.2)

4.2

Other

0.7

0.8

+0.1

1.2

Net Sales

12.2

10.8(1.4)

22.1

Energy andInfrastructure

10.2

9.2

(1.0)

18.2

Soil Remediation

1.4

0.8(0.6)

2.7

Other

0.6

0.7+0.1

1.2

Orders Energy and infrastructure orders rose due to arecovery in demand for maintenance for generalindustries and orders for large projects for generalindustries.

 Energy and infrastructure net sales fell, reflecting
decreases in sales from maintenance for the public
sector, facilities for the electric power industry, andengineering cleaning.
 Soil remediation orders and net sales declined inreaction to orders for large projects a year ago andbecause the posting of sales from projects for which
orders had been placed ran its course.

6

Water Treatment Facilities (Overseas)(Billions of Yen)

1Q of FY ended 1Q of FY ending
03/202103/2022

YoY Change

1H Forecast

11.0

15.9+4.9

22.5

Facilities

4.1

7.0+2.9

9.3

Maintenance

3.4

4.6+1.2

6.1

Ultrapure Water
Supply Business

0.7

0.8+0.1

1.5

Tool Cleaning

2.7

3.4+0.7

5.6

Net Sales

11.4

10.4(1.1)

20.3

Facilities

5.1

3.4(1.7)

8.1

Maintenance2.9

2.7(0.2)

5.2

Ultrapure Water
Supply Business

0.7

0.8+0.1

1.5

Tool Cleaning

2.7

3.4+0.7

5.6

Orders Orders in China increased due to orders for large
projects. Net sales remained flat from the same
period of the previous fiscal year.
 Orders for South Korea climbed, reflecting orders forlarge projects. Net sales fell as the posting of sales
from projects for which orders had been placed ran
its course.
 Orders for Taiwan remained flat from a year ago. Net
sales fell, with the posting of sales from projects forwhich orders had been placed running its course.
 Net sales for North America were on a par with theyear-ago level. Net sales in tool cleaning increased
due to acquisitions of new projects.

Overseas Net Sales by Region(Billions of Yen)

1Q of FY ended 1Q of FY ending
03/2021
03/2022

YoY Change

1H ForecastAsia

6.4

5.4(1.0)

11.5

Factors in Change (Billions of Yen)

North & SouthAmerica

5.0

5.0(0.0)

8.8

Organic Change

(1.6)

Total

11.4

10.4(1.1)

20.3

Effect of Foreign Exchange Rate

+0.57

Breakdown of Service Business Sales(Billions of Yen)

1Q of FY ended 1Q of FY ending
03/2021
03/2022

YoY Change

1H Forecast+3.4

56.0

Water TreatmentChemicals

24.5

Water Treatment
Facilities

29.0

29.3+0.3

58.7

Ultrapure Water
Supply Business

7.6

8.1+0.5

16.4

Domestic Tool
Cleaning

2.0

2.4+0.4

4.2

Overseas Tool
Cleaning

2.7

3.4+0.7

5.6

Soil Remediation

1.4

0.8(0.6)

2.7

Domestic
Maintenance

12.0

11.3

(0.6)

23.6

Overseas
Maintenance2.9

2.7(0.2)

5.2

Other

0.5

0.6

+0.0

1.2

53.6

57.2

+3.7

114.7

Total

27.9

 Net sales in the Water Treatment Chemicals
business rose due to a recovery in demand forchemicals overseas.
 Net sales in the ultrapure water supply businessincreased due to the commencement of watersupply in the previous fiscal year for a certaincontract.
 Tool cleaning net sales increased both in Japan andoverseas because new projects were won.

 The posting of sales from large soil remediation
projects ran its course.
 Domestic maintenance sales, particularly sales frommaintenance for the public sector and engineeringcleaning, declined.

8

Capital Expenditures, Depreciation and R&D Expenses
1Q of FY ended
03/2021

1Q of FY ending
03/2022

FY ending 03/2022(Forecast)

2.7

13.1

63.4

Ultrapure Water Supply
Business

0.5

4.5

32.6

Other than the above

2.2

8.6

30.7

Depreciation (Property,Plant and Equipment*)

4.4

4.8

19.7

Water Treatment
Chemicals

1.0

1.2

4.1

Water Treatment
Facilities

3.4

3.6

15.6

1.1

1.2

5.2

Water Treatment
Chemicals

0.4

0.4

1.6

Water Treatment
Facilities

0.7

0.8

3.7

(Billions of Yen)

Capital Expenditures(Property, Plant andEquipment*)

R&D Expenses

 Capital investment in the ultrapure water supply
business increased.
 The increase in capital investment other than theabove chiefly reflected investment in the newdomestic development base.
 Depreciation and R&D expenses progressed
according to plan.

* Right-of-use assets are included.

92Progress on Priority Measures

Advancing Total Solutions Using Engineering Cleaning
Strengthening the revenue base in the social and industrial infrastructure market
Existing field Developing construction methods and cleaning
techniques having a competitive advantage

Growth field Expanding into the renewable energy market,
primarily biomass power generation

New field
 Lease agreement business that contributes toBCP at customers

 Reducing the time for construction throughspace saving and using skid-mounted
temporary equipment

 Achieving stable revenue

 Expanding business scale Creating new business
10Initiatives to Expand Business in the ASEAN Region
Integrating the management of five companies in the ASEAN region to generate synergies

One ASEAN Project

Identifying issues through benchmarking at each company

Building a mutual support system in ASEAN region
Kurita-GK Chemical Co., Ltd.
Kurita-GK Vietnam Co., Ltd.

Expanding sales, improving profitability
Kurita Water(Malaysia) Sdn. Bhd.

 Expanding CSV business and total solutions, using resources in the entire
ASEAN region
 Expanding customers' facilities diagnosis service using digital tools

Kurita (Singapore) Pte. Ltd.

 Gaining new customers using webinars and social media█ Business area

P.T. Kurita Indonesia

 Cutting costs through the optimization of the procurement of raw materials andshortening production time by changing packaging and raw materials
11

Strengthening the Business Foundation in the Middle East
Acquired production facilities and a sales network necessary for business growth in Gulf countries.
Holdingcompany

Kurita AquaChemie Limited (UAE)(Kurita Europe GmbH holding a 51% stake;
AquaChemie DMCC holding a 49% stake)Holdinga 100%stake

Operatingcompany

KuwaitKurita AquaChemie FZE (UAE)

Bahrain
Qatar

Operatingcompany

Kurita AquaChemie Saudi Arabia Co.
(Saudi Arabia)

Saudi Arabia

UAE

Oman
Share acquisition
Business description

April 2021
Manufacture and sale of water treatment chemicals

Major products

Process treatment chemicals for oil wells, process treatment
chemicals for petroleum refining and petrochemicals,cooling water treatment chemicals, boiler water treatment chemicals,
reverse osmosis membrane treatment chemicals

Target market

Oil well, petroleum refining, petrochemicals, seawater desalination
facilities, etc.
(Estimated market size: approx. 45.0 billion yen)

█ Pre-existing business area
█ New business area

12

Expanding the sales network in North America
Acquired a business base in eastern Canada, an industrial zone.

Kurita Canada, Inc.
Manufacture and sale ofwater treatment chemicals

Generate synergies in a common
market: solutions for general industries.

Keytech Water Management(Acquired in April 2021)

Kurita America Inc.
Manufacture and sale ofwater treatment chemicals
and water treatment facilities

Establishment

1981

Shareholder

Kurita Canada, Inc. (100%)

Business
description

Manufacture and sale of water treatment
chemicals and auxiliary equipment

Target market

Biofuel, hospitals, air-conditioning ofbuildings, food, beverages, etc.
13

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.

The trademarks (products, services, logos) contained in this presentation belong to the Company or right holders thatallow the Company to use the trademarks.