FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Fiscal Year ended
March 31, 2013
Tokyo, Japan, April 30, 2013 - Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 180,143 million yen and net income of 11,476 million yen, or
92.43 yen per share, for the year ended March 31, 2013 (April 1, 2012 – March 31,2013).

Results of Operations
Total consolidated orders for the Kurita Group in the fiscal year ended March 31, 2013
declined 5.3% from the level of the previous fiscal year, to 186,741 million yen, and net
sales declined 7.0% to 180,143 million yen. Operating income was 20,989 million yen,down 28.6% versus the previous fiscal year, and ordinary income was 22,046 million
yen, down 27.4%. Net income amounted to 11,476 million yen, down 30.7%.
During the fiscal year ended March 31, 2013, the Japanese economy continued to face achallenging environment, despite continued demand generated by the recovery from theGreat East Japan Earthquake, with slower growth in exports and capital investments dueto the decelerating world economy, along with declining consumer spending, concerns
about electricity supply, and the continued appreciation of the yen. Although theeconomic growth of China and other Asian countries continued, fears of a global
economic slowdown mounted, given fiscal insecurity in Europe and the slow recovery
in the United States imposed by fiscal restraint.
The markets in which the Kurita Group operates remained challenging throughout the
fiscal year. In Japan, both capital spending and capacity utilization at plants stayed low,
as the elimination and consolidation of production bases and the trend of transferring
operations overseas continued in the manufacturing industry, the main source ofcustomers for the Group. Overseas, the operating environment also remained harsh, asdemand declined with the slower economic growth in China and the prolonged
stagnation of the European economy, in addition to the emergence of movements topostpone and scale down large capital investments in the electronics industry in East
Asia.
In this environment, the Kurita Group took steps to increase its market share in Japanand expand overseas business by maximizing its combined strength in water treatment
chemicals, water treatment facilities and maintenance services. Particularly overseas,
the Company injected management resources in growing areas and industry sectors witha targeted approach focused mainly on Asia, by setting up operating bases andstrengthening its human resources. However, the Group was unable to increase earnings
sufficiently and suffered falls in orders, sales and profits from the previous fiscal year.

1

Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 56,040 million
yen, down 1.2% versus the fiscal year ended March 31, 2012, while sales fell 0.6%, to56,091 million yen. Operating income was down 10.1% to 8,334 million yen.
In Japan, although process treatment chemicals for the steel industry and reverse
osmosis membranes saw increased orders and sales, demand for mainstay cooling water
treatment chemicals and waste water treatment chemicals was down, mainly due to theelimination and consolidation of customer plants and falling capacity utilization.
Overseas, both orders and sales declined in Europe, where economies remained stagnant,but the performance was strong in Asia, especially in China and Thailand. Overall, bothorders and sales rose.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 130,700 million
yen, down 7.0% versus the previous fiscal year, sales declined 9.7%, to 124,052 million
yen, and operating income fell 37.2%, to 12,641 million yen.
In the electronics industry, both orders and sales declined in the ultrapure water supply
business, water treatment facilities and maintenance services in Japan, reflecting the
restructuring of manufacturing plants among major customers and lower capacity
utilization rates. Overseas, while some customers postponed or scaled back capital
investments, sales of water treatment facilities for the semiconductors and LCD panel
industries in Asia increased.
In general industries, although orders for and sales of water treatment facilities for the
steel and the food industries increased, water treatment facilities for the electric powerindustry, soil remediation services and maintenance services posted declining orders andsales due to a fall in earthquake recovery-related demand and lower capacity utilization
at customer plants.
Outlook for the Fiscal Year Ending March 31, 2014
For the full fiscal year ending March 31, 2014, the Group forecasts 191,000 million yen
in net sales (up 6.0% year on year), 23,500 million yen in operating income (up 12.0%),
24,000 million yen in ordinary income (up 8.9%) and 14,000 million yen in net income(up 22.0%).
While the Japanese economy is expected to recover moderately after the middle of the
fiscal year ending March 31, 2014, backed by the improving export environment
associated with the weakening of the yen since the end of the last year, monetary easing
by the Bank of Japan and fiscal spending, we expect that it will still take time for capital
investment and capacity utilization to recover in the manufacturing industry, the main
customer of the Group. Capital spending is expected to concentrate on improving
production efficiency to increase competitiveness, with spending on new construction
and capacity increases likely to remain low.
2

We expect that although economic growth will decelerate in China and Southeast Asia,
demand for water treatment that will contribute to productivity improvement and thedecline in the environmental burden will continue to rise. We also expect that business
opportunities will increase in Europe and the United States where the water treatment
market is large, despite their uncertain economic outlook, and in other overseas regions
where a certain level of economic growth is expected.
In this environment, the Kurita Group will further strengthen its operating base in Japanand accelerate the expansion of overseas business by launching highly competitive
products and services for growth areas and industrial sectors. We recognize thatattaining the business plan for fiscal 2013 is vital to achieving the medium-term
management plan Take Action 2014, TA-14.
Outlook by Segment
Water Treatment Chemicals
The Kurita Group will increase sales and improve profitability by bolstering sales
activities, mainly in China and Southeast Asia. It will do this by specifying products andservices for sales expansion in a focused manner for growing industries.
In Japan, the Group will continue to make efforts to receive orders steadily fromexisting customers by better tailoring our offerings to local needs. It will seek to bolster
its competitiveness and increase market share by focusing on consultative sales to help
customers resolve the issues they confront.
Water Treatment Facilities
The Kurita Group will propose solutions that reduce the environmental burden andimprove productivity by drilling them down in cooperation with overseas subsidiaries
with a major emphasis on markets in China, South Korea, Taiwan and Southeast Asia.
In Japan, the Group will focus on general industries such as the pharmaceutical andfood sectors that are less susceptible to the business cycle and will step up efforts for
new markets such as renewable energy and resources.
Financial Condition
Assets, liabilities and net assets
Current assets totaled 146,874 million yen at the end of the fiscal year (March 31, 2013),
an increase of 1,889 million yen from the end of the previous fiscal year (March 31,2012).
This increase was mainly due to an increase of 14,137 million yen in cash and deposits,
partially offset by decreases of 4,032 million yen in trade accounts receivable and 6,500
million yen in marketable securities. The increase in cash and deposits and the decreasein marketable securities was mainly the result of decreased investment in negotiablecertificates, which are treated as marketable securities. The decrease in trade accounts
receivable was the result of a decrease in sales in the second half of the fiscal year
(particularly in the fourth quarter).
Noncurrent assets totaled 116,705 million yen at the end of the fiscal year, a decline of
9,451 million yen from the end of the previous fiscal year. The decline was mainly due
to an 11,548 million yen decrease in property, plant and equipment offsetting a 2,162
3

million yen increase in investment and other assets. The decrease in property, plant andequipment was the result of depreciation on past years’ investments in ultrapure watersupply business facilities exceeding current-year capital expenditure in the fiscal year,
the sale of some ultrapure water supply business facilities owned by the Company, andan impairment loss in relation to the relocation of the head office. The increase ininvestment and other assets was the result of an increase in unrealized gains on
investment securities due to the recovery of share prices after the posting of a valuation
loss of 2,343 million yen on investment securities in the second quarter.
Current liabilities totaled 35,415 million yen at the end of the fiscal year, a decline of
6,943 million yen from the end of the previous fiscal year. The change was principally
the result of decreases of 3,098 million yen in trade accounts payable and 4,536 million
yen in income taxes payable. The decrease in trade accounts payable was due to slower
production activities associated with lower sales in the second half of the fiscal year, as
mentioned above. The decline in income taxes payable was due to a fall in income
before income taxes and minority interests.
Noncurrent liabilities totaled 19,046 million yen at the end of the fiscal year, a slightincrease of 265 million yen from the end of the previous fiscal year.
Net assets totaled 209,118 million yen at the end of the fiscal year, a decline of 884
million yen from the end of the previous fiscal year. This mainly reflected a 12,217
million yen increase in treasury stock through a tender offer, a 6,266 million yen
increase in retained earnings resulting from the posting of 11,476 million yen in net
income which exceeded dividend payments in the previous fiscal year and interim
dividend payments in the fiscal year of 5,193 million yen, and a 3,827 million yen
increase in unrealized gains on available-for-sale securities owning to an increase inunrealized gains on investment securities, as mentioned above.
Cash Flows
Consolidated net cash and cash equivalents at the end of the fiscal year (March 31,2013) totaled 33,313 million yen, an increase of 13,487 million yen from the end of theprevious fiscal year (March 31, 2012). The various cash flows and related factors are
outlined below.
Cash Flows from Operating Activities
Net cash provided by operating activities during the fiscal year ended March 31, 2013
totaled 27,276 million yen, a decrease of 1,006 million yen from the previous fiscal year.
Inflows from income before income taxes and minority interests (19,776 million yen),depreciation and amortization (15,054 million yen) and a decrease in trade notes andaccounts receivable (5,686 million yen) were partially offset by a decrease in trade notes
and accounts payable (4,005 million yen) and income taxes paid (13,152 million yen).
Cash Flows from Investing Activities
Net cash provided by investing activities totaled 4,268 million yen, an increase of
17,775 million yen from the previous fiscal year. Inflows from withdrawals from time
deposits (net of deposits) totaling 7,896 million yen and proceeds from the sale of4

property, plant and equipment totaling 3,356 million yen were partially countered by
outflows for investments in marketable securities (net of sale and redemptions of thesame) totaling 2,000 million yen and for the acquisition of property, plant andequipment totaling 5,048 million yen, including capital expenditures for ultrapure watersupply business during the year.
Cash Flows from Financing Activities
Net cash used in financing activities totaled 18,561 million yen, an increase of 12,954
million yen from the previous fiscal year. The main cash outflows from financing
activities were the purchase of treasury stock of 12,216 million yen and cash dividends
paid of 5,241 million yen.
Dividend Policy and Dividends for the Fiscal Year ended March 31, 2013 and the
Fiscal Year ending March 31, 2014
Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.
In consideration of the Group’s future business development plans and our desire to
reward shareholders for their support, we intend to pay a year-end dividend of 21 yen
per share for the fiscal year ended March 31, 2013, 1 yen more than the previous
year-end dividend. Combined with the interim dividend of 21 yen per share (1 yen morethan the previous interim dividend), the annual dividend comes to 42 yen per share, 2
yen higher than the previous fiscal year’s annual dividend.
For the fiscal year ending March 31, 2014, Kurita Water Industries plans to pay aninterim dividend of 22 yen per share and a yearend dividend of 22 yen per share, for anannual dividend of 44 yen per share.
Business and Other Risks
The following are summaries of major foreseeable risks present in the businessenvironments in which the Kurita Group operates. Forward-looking statements herein
are based on judgments made by management as of March 31, 2013.
1) Economic and market conditions
The Group’s Water Treatment Chemicals and Water Treatment Facilities businesses
are affected by economic conditions in Japan and in other countries and regions where
the Group operates. Demand in the Water Treatment Chemicals business fluctuates in
response to factory capacity utilization rates in such industries as steel, petroleum
refining and petrochemicals, and pulp and paper, which are the business’ main sourcesof demand. Such demand fluctuations may affect the Group’s operating results.
Demand in the Water Treatment Facilities business fluctuates in response to trends incapital expenditure in the electronics industry and other industries that are the business’
main sources of demand. Such demand fluctuations may affect the Group’s operating
results.
Intensification of competition with rivals in the Group’s business domains could
lead to declines in prices of products and services, which could lower the Group’s
profitability.
2) Materials and parts procurement
The Group procures raw materials and parts from outside the Group for the
manufacture of products and the fabrication of facilities. The prices of raw materials
and parts fluctuate based on changes in market conditions, and such fluctuations may
affect the Group’s operating results.
53) Overseas business development
The Group is striving to expand its business outside Japan. In contrast to theJapanese market, doing business in overseas markets involves a number of inherent,
unforeseen risks, including the risk of changes to local laws and regulations, the risk ofpolitical and economic instability, and the risk of foreign exchange rate fluctuations. If
such risks materialized, the Group’s operating results could be affected.
4) New product development
The Group continuously endeavors to develop new technology and competitive new
products. The success of new technology and product development efforts cannot be
guaranteed. The Group may not be able to offer new technologies and products thatmeet the needs of its customers or launch new products in a timely fashion. The Group
may also fail to keep pace with rapid changes in technological innovation and changing
customer needs. If the Group were to fail to develop competitive new products, this
could hamper its future growth and profitability or otherwise affect its operating
results.
5) Intellectual property
The Group recognizes the importance of intellectual property and continually seeks
to register its own intellectual property while avoiding infringement of the intellectual
property rights of third parties, both in Japan and overseas. Given the wide scope of theGroup’s business, however, there is potential for the Group’s intellectual property
rights to be infringed and potential for the Group to infringe upon the rights held by
third parties. Such occurrences may affect the Group’s operating results.
6) Dependence on information systems
The Group’s use of information systems is increasing, as is the importance of
information systems to the Group’s business. If a computer virus or some other factor
were to obstruct the functions of the Group’s information systems, the Group’sbusiness activities, operating results, and financial condition could be negatively
affected.
7) Large-scale natural disasters
If an earthquake, typhoon, or other kind of natural disaster were to directly or
indirectly upset the Group’s business execution, the Group’s business activities,
operating results, and financial condition could be negatively affected.
Management Policy(1) Basic management policy
The Kurita Group operates under corporate philosophy, “Study the properties of water,
master them, and we will create an environment in which nature and man are inharmony.” In line with this philosophy, the Group conducts business with the goal of
becoming an advanced water and environmental management company.
The Group also seeks to enhance management transparency by making appropriate
and timely information disclosures to shareholders, investors, and other stakeholders.
(2) Medium- to long-term management strategy
The Kurita Group has been working on its TA-14 three-year medium-term
management plan based on the theme of “Execution and Evolution” since April 2012.
The basic objectives of the plan are to demonstrate the Group’s comprehensive
strengths to secure the trust of customers in Japan and other countries. Under the plan,
the Group will endeavor to expand overseas business while also raising its domestic
market shares.
6

The Group has revised the plan’s targets for the final year of TA-14 (the fiscal year
ending March 2015) in consideration of changes in the operating environment asfollows:
Consolidated
Orders¥210 billion
Net Sales¥205 billion
Operating income¥30.0 billion
Ordinary income¥30.5 billion
Net income¥18.5 billion(3) Issues to be addressed
The Kurita Group aims to evolve into a corporate group capable of competing
successfully in the international market, aiming to achieve sustainable growth bycreating a driving force unique to the Group with the reinforcement and amalgamationof the three functions of water treatment chemicals, water treatment facilities andmaintenance services in the medium-term management plan TA-14.
In the fiscal year ended March 2013, the plan’s targets were missed amid achallenging market environment. The performance of overseas business, a focus for theGroup, ended with only a slight increase, and profitability in each business has also
been declining. Viewing the restoration of profitability as an urgent task, we will takethe key steps described below, aiming to achieve sustainable growth accompanied byearnings strength.
1) Accelerating the expansion of overseas business by reinforcing and amalgamating
the three functions of water treatment chemicals, water treatment facilities andmaintenance services.
The Group will accelerate the speed at which it develops technologies and products
tailored to local needs by identifying the demands of key overseas markets. We will
provide comprehensive water treatment solutions by bolstering cooperation between
companies and the segments of water treatment chemicals, water treatment facilities
and maintenance services.
2) Reducing overall costs while improving the quality of the products, technologies andservices we provide
In the Water Treatment Chemicals segment, we will develop a system to quickly
resolve the issues confronting customers with an array of products, technologies andservices that can visualize the treatment effect. In the Water Treatment Facilities
segment, we will provide high cost performance facilities based on comprehensive
quality control and cost cutting. We will also review purchase costs and expenses andapply the results horizontally to Group companies.
3) Working to develop products and establish a business model to accelerate theexpansion of overseas business and create new businesses
We will seek to rapidly develop highly competitive products for targeted overseas
and growing markets. We will also focus on developing renewable energy technology
using anaerobic effluent treatment and wastewater reclamation technology aiming tocreate a new business model.

7

Financial Statements — Consolidated
Balance Sheet — Consolidated(Million yen)

As ofMarch 31, 2012
AmountAs ofMarch 31, 2013
Amount28,902
7,045
59,31140,500
1,598
2,715
1,209
2,294
1,466
(58)
144,985

43,0396,10855,27934,000
1,445
2,238
1,191
1,956
1,719
(104)
146,874

65,368(36,277)
29,09092,180(47,298)
44,882
13,962
7,808(1,434)
6,374
2,362
11,237(9,541)
1,696
98,36859,982(35,612)24,37087,994(51,690)
36,304
13,9848,183(1,924)
6,258
4,074
11,368(9,540)1,828
86,820

1,233
450
1,683

1,315
304
1,619

16,161
8,035
2,246
(339)
26,103
126,156
271,141

18,752
7,738
2,015
(241)
28,265
116,705
263,580

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)Land
Leased assets
Accumulated depreciation
Leased assets (net)
Construction in progress
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

8

(Million yen)

As ofMarch 31, 2012
AmountAs ofMarch 31, 2013
Amount1,701
19,620
6,237
7,045
2,427
1,007
4,317
42,358

1,451
16,522
6,857
2,509
2,362
774
4,937
35,415

6,191
1,303
10,3356,020
1,303
10,835

168

165

782
18,781
61,139721
19,04654,462

13,45011,426
196,541(9,642)
211,776

13,45011,426
202,807(21,859)
205,826252(564)(2,572)(2,884)
1,110
210,002271,141

4,079
(564)
(1,469)2,045
1,246
209,118
263,580

Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Accounts payable - other / Accrued expenses
Income taxes payable
Accrued employees’ bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Lease obligations
Deferred tax liabilities related to revaluation
Accrued employees’ retirement benefits
Accrued retirement benefits for directors and corporate
auditors
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

9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
Retirement benefit expenses
Traveling and transportation expenses
Research and development expenses
Other
Total Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Loss on disposal of noncurrent assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on discontinuation of approved retirement
annuity system (closed-type)
Total extraordinary income
Extraordinary losses
Impairment losses
Provision for building demolition expenses
Valuation loss on investment securities
Disaster losses and disaster recovery expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Current
Deferred
Total income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

Year ended
March 31, 2012
Amount
193,792
127,905
65,886

Year ended
March 31, 2013
Amount180,143
121,047
59,096

14,394

14,895

1,378
987
2,633
4,232
12,87736,50329,382

1,368
1,079
2,675
4,362
13,726
38,106
20,989

141
354

153
348

328

348

394
1,219

457
1,307

88
27
116
232
30,369

78
49
122
250
22,046

139
-

1,051
403

-

137

139

1,592

173
608
49
831
29,676

1,108
410
2,343
3,861
19,776

12,750292
13,042
16,634

8,660
(452)
8,208
11,56886

92

16,548

11,476

10

Statement of Comprehensive Income(Million yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of
the parent company
Comprehensive income attributable to minority
interests

Year ended
March 31, 2012
Amount16,634

Year ended
March 31, 2013
Amount11,568

(370)
184
(564)

3,824
1,069

(35)

133

(785)
15,848

5,027
16,595

15,796

16,406

52

189

11

Statement of Changes in Shareholders’ Equity — Consolidated(Million yen)

Shareholders’ equity
Common stock
Balance as of beginning of the fiscal year
Change during period
Total change during period
Balance as of end of the fiscal year
Capital surplus
Balance as of beginning of the fiscal year
Change during period
Total change during period
Balance as of end of the fiscal year
Retained earnings
Balance as of beginning of the fiscal year
Change during period
Dividend from surplus
Other
Net income
Reversal of unrealized gains (losses) onrevaluation of land
Total change during period
Balance as of end of the fiscal year
Treasury stock
Balance as of beginning of the fiscal year
Change during period
Purchase of treasury stock
Total change during period
Balance as of end of the fiscal year
Total shareholders’ equity
Balance as of beginning of the fiscal year
Change during period
Dividend from surplus
Other
Net income
Purchase of treasury stockReversal of unrealized gains (losses) onrevaluation of land
Total change during period
Balance as of end of the fiscal year

Year ended
March 31, 2012
AmountYear ended
March 31, 2013
Amount13,45013,45013,45013,45011,426

11,426

11,426

11,426

184,954

196,541(4,939)(5)
16,548(5,193)(16)
11,476(15)(0)

11,587
196,541

6,266
202,807(9,640)(9,642)(2)(2)(9,642)(12,216)(12,216)(21,859)

200,191

211,776(4,939)(5)
16,548(2)(5,193)(16)
11,476(12,216)

(15)

(0)

11,585
211,776(5,950)205,826

12

(Million yen)

Accumulated other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Unrealized gains (losses) on revaluation of land
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Foreign currency translation adjustments
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Total accumulated other comprehensive income
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Minority interests
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Total net assets
Balance as of beginning of the fiscal year
Change during period
Dividend from surplus
Other
Net income
Purchase of treasury stockReversal of unrealized gains (losses) onrevaluation of land
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year

Year ended
March 31, 2012
AmountYear ended
March 31, 2013
Amount

623

252

(370)

3,826

(370)
252

3,826
4,079

(764)

(564)

199

0

199
(564)

0
(564)

(2,006)(2,572)

(565)

1,103

(565)
(2,572)

1,103(1,469)(2,148)(2,884)

(736)

4,930

(736)
(2,884)

4,930
2,045

1,308

1,110

(198)

135

(198)
1,110

135
1,246

199,351

210,002(4,939)(5)
16,548(2)(5,193)(16)
11,476(12,216)

(15)

(0)

(934)

5,065

10,650210,002(884)
209,118

13

Statement of Cash Flows — Consolidated(Million yen)

Year ended
March 31, 2012
AmountYear ended
March 31, 2013
Amount29,676
16,035

19,776
15,054

(328)

(348)

415

464

85
(495)
88
(212)
51

(379)
(501)
78
(226)
272

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Equity in (earnings) losses of unconsolidated subsidiaries
and affiliates
Increase (decrease) in allowance for employees’ retirement
benefits
Increase (decrease) in other allowancesInterest and dividend income
Interest expense
Other non-operating (income) losses
Other extraordinary (income) losses(Gains) losses on sale/disposal of property, plant andequipment
Impairment loss
(Gains) losses on sale of investment securities
Valuation (gain) loss on investment securities(Increase) decrease in notes and accounts receivable - trade(Increase) decrease in inventories(Increase) decrease in other current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other
Sub-totalInterest and dividend received
Other proceeds
Interest paid
Other payments
Income taxes paid
Net cash provided by (used in) operating activities(108)(1,000)173
1608(13,545)
(135)
285
5,448
847
12
38,907
693
281
(89)
(163)
(11,346)
28,282

1,108
(403)
2,343
5,686
808
(76)
(4,005)582
176
39,409
730
474
(73)
(113)
(13,152)
27,276

Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sale and redemption of investment securities
Other payments
Other proceeds
Net cash provided by (used in) investing activities(38,988)
45,596(69,000)
57,000(7,460)262(10)
1(1,184)276(13,507)(15,534)
23,430(76,500)
74,500(5,048)
3,356
(10)
617
(755)
213
4,268

14

(Million yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities
Effect 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 the period
Cash and cash equivalents at the end of the period

Year ended
March 31, 2012
AmountYear ended
March 31, 2013
Amount

(166)
46
(507)
(2)
(4,936)(41)(5,607)

(494)
58
(89)
(579)
(12,216)(5,192)(49)(18,561)

(176)

503

8,991
10,834
19,825

13,487
19,82533,31315

Notes to Consolidated Financial Statements(Concerning consolidated statement of income)Impairment LossYear ended March 31, 2013 (April 1, 2012 - March 31, 2013)
The Group has booked an impairment loss for the following asset group.
Use
Idle assets
Idle assets

Category
Buildings andstructures, etc.
Land

Location

Impairment loss

Tokyo, Shinjuku Ward

1,094 million yen

Aichi, Ichinomiya City

13 million yen(Background to recognition of impairment losses)
In the fiscal year under review, the land, buildings and structures, etc. of the former head office of theCompany (Shinjuku Ward, Tokyo) became idle assets as a result of the relocation of the head office. Of
these assets, the Company recognized an impairment loss for the buildings and structures, etc. as
because of aging and other factors it was deemed that their book value could not be recovered.
For land in Ichinomiya City, Aichi, the Company recognized an impartment loss for the following
reasons: it became idle, its future use was not yet determined, and the market price of land had fallen
significantly.
(Amount of impairment loss)
For the group of assets for which an impairment loss was recognized, the Company reduced their bookvalues to their recoverable values and recorded the amount of reductions as an impairment loss of 1,108
million yen under extraordinary losses.
(Categorization method of assets)
The Kurita Group categorizes business assets by type of business structure, and leased assets and idle
assets by individual property type.
(Calculation method of recoverable value)
The recoverable value of idle assets for which an impairment loss was recognized in the fiscal year
under review was measured by their net sales value. For buildings and structures, etc., the recoverable
value was measured by reducing it to the residual value of 1 yen as it was deemed that their book value
could not be recovered. For land, the recoverable value was measured by the real estate appraisal
standard.

Segment Information
1. Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial
information is available. These segments are subject to periodic examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Company’s business divisions are based on product and service categories. Each of the divisions
conduct business based on comprehensive strategies formulated for the products and services that theyhandle in Japan and overseas. The Company’s consolidated subsidiaries conduct business under thesupervision of the relevant business divisions.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment
Chemicals segment and the Water Treatment Facilities segment, based on the products and services
handled by each of the divisions.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals andequipment and provides maintenance services. The Water Treatment Facilities segment manufacturers
and sells water treatment equipment and facilities, provides ultrapure water, chemical cleaning, toolcleaning, soil and groundwater remediation services, and provides maintenance services that encompass
operation, maintenance, and management of water treatment facilities.

162. Method for calculating sales, income and loss, assets and liabilities, and other amounts by reportablesegment
Accounting methods applied in reportable segments are consistent with the methods applied in
preparation of consolidated financial statements. Segment income represents operating income.
Inter-segment sales and transfers between consolidated-group companies reflect values based on market
prices. Inter-segment sales and transfers between the Company’s divisions are based primarily on bookvalues.
3. Sales, income and loss, assets and liabilities, and other amounts by reportable segment
Year ended March 31, 2012 (April 1, 2011 - March 31, 2012)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total
Sales
(1) Sales to outside customers(2) Inter-segment sales and transfers
Total
Segment income
Segment assets
Segment liabilities
Other amounts
Depreciation
Impairment loss
Change in property, plant andequipment and intangible fixed
assetsAmounts
reported on the
Adjustments statements of(see note)
income56,443372
56,816
9,268
36,58017,999137,348
246
137,595
20,127
161,750
43,252

193,792
619
194,41129,396
198,330
61,252

(619)
(619)
(13)
72,811(113)

193,792
193,792
29,382
271,141
61,1391,485-

14,550-16,035-173

16,035
173

1,463

6,641

8,105

-

8,105

Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total

Amounts
reported on the
Adjustments statements of(see note)
incomeSales(1) Sales to outside customers
56,091
124,052
180,143
180,143(2) Inter-segment sales and transfers
287
188
476
(476)
Total
56,378124,241
180,619(476)
180,143
Segment income
8,334
12,641
20,975
13
20,989Segment assets
34,647
143,772
178,419
85,161
263,580
Segment liabilities
16,58937,98354,573(111)
54,462Other amounts
Depreciation
1,369
13,684
15,054
15,054
Impairment loss
1,108
1,108
Change in property, plant andequipment and intangible fixed
1,458
5,230
6,688
6,688
assetsNote: “Adjustments” represents the following:
1. Sales: Elimination of inter-segment transactions.
2. Segment income: Amount resulting from eliminations of inter-segment transactions.
3. Segment assets: Consisting mainly of corporate assets (cash deposits, securities in trust, andlong-term investments) unallocated to reportable segments. Corporate assets totaled 72,932 million
yen at March 31, 2012 and 85,272 million yen at March 31, 2013.
4. Segment liabilities: Amount resulting from eliminations of inter-segment claims and liabilities.
5. Impairment loss on idle assets was recognized in the fiscal year ended March 31, 2013. This had
no effect on the reportable segments.

17

Related information
Year ended March 31, 2012 (April 1, 2011 - March 31, 2012)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)
North
Japan
Asia
America
EuropeOther
Total
22,541
2,310
1,373
3,044
193,792
164,523
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer
Name of customer
Sharp Corporation

Sales
28,792(Million yen)
Name of transacting segment
Water Treatment Facilities

Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)
North
Japan
Asia
America
EuropeOther
Total
23,898
2,349
1,196
3,028
180,143
149,670
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer
Name of customer
Sharp Corporation

Sales
25,684(Million yen)
Name of transacting segment
Water Treatment Facilities

18

Information on impairment of reportable segments’ noncurrent assets
Year ended March 31, 2012 (April 1, 2011 - March 31, 2012)
The Company has omitted disclosure here because equivalent information appears in the segment
information.
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)
The Company has omitted disclosure here because equivalent information appears in the segment
information.
Goodwill amortization and unamortized balance of goodwill by segment
Year ended March 31, 2012 (April 1, 2011 - March 31, 2012)(Million yen)
Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Eliminationor corporate

Total

Total

31

-

31

-

31

13

-

13

-

13

Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)(Million yen)
Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Eliminationor corporate

Total

Total

13

-

13

-

13

-

-

-

-

-

Information on negative goodwill
Year ended March 31, 2012 (April 1, 2011 - March 31, 2012)
The Company has omitted disclosure here because there was no significant negative goodwill.
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)
Not applicable

19Per Share Information
Net assets per share
Net income per share

Year ended March 31, 2012
1,649.24 yen
130.65 yen

Year ended March 31, 2013
1,744.41 yen
92.43 yen

Notes: 1. Fully diluted net income per share was not reported here because there were no dilutive securities
outstanding.
2. The calculation bases for net assets per share are as follows.
(Million yen unless otherwise stated)

Total net assets
Amount deducted from total net assets(Those with minority interests)
Net assets attributed to common stock
Number of common stock used in calculation of
net assets per share (shares)

As ofMarch 31, 2012
210,002
1,110(1,110)208,891

As ofMarch 31, 2013
209,118
1,246(1,246)
207,871

126,659,417

119,164,789

Note: The calculation bases for net income per share are as follows.
(Million yen unless otherwise stated)

Net income
Amount not attributed to common stockholders
Net income attributed to common stock
Average number of shares outstanding (shares)

Year ended
March 31, 2012
16,54816,548
126,659,779

Year ended
March 31, 2013
11,476
11,476
124,160,885

Significant Subsequent Events
Not applicable20

Supplementary Information - Consolidated(1) Net Sales(Million yen)

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2012
Amount
56,443
137,348
193,792

%
29.1
70.9
100.0

2013
Amount56,091
124,052
180,143

%
31.1
68.9
100.0

(2) Order Intake and Backlog(Million yen)

Year ended March 31,
2012
Business segment
Water Treatment
Chemicals
Order Intake
Water Treatment
Facilities
Total
Water Treatment
Chemicals
Order Backlog Water Treatment
Facilities
Total

Amount2013%

Amount%56,74828.8

56,04030.0

140,50771.2

130,700

70.0

197,256

100

186,741

100.0

3,931

7.1

3,876

6.3

51,394

92.9

58,04893.7

55,326100.0

61,924100.0(3) Production Results(Million yen)

Year ended March 31,
2012
Business segment
AmountWater Treatment Chemicals
56,454
Water Treatment Facilities
137,934
Total
194,389
Note: The amounts were based on sales amounts.

%
29.0
71.0
100.0

2013
Amount56,106
123,704
179,811

%
31.2
68.8
100.0

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

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2012
Amount
1,311
6,409
7,721

%
17.0
83.0
100.0

2013
Amount
1,242
4,866
6,108

%
20.3
79.7
100.0

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

Year ended March 31,
2012
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Amount1,186
14,223
15,410

2013
%
7.7
92.3
100.0

Amount1,114
13,37814,493

%
7.7
92.3
100.0

21