Kurita Water Industries Ltd.

Results Presentation
for the First Quarterof the Fiscal Year Ending March 31, 2025
(Securities code: 6370)

August 8, 2024

I am Shuji Shirode, Managing Executive Officer, Executive General Managerof Corporate Control and Administration Division and Chief Financial Officer(CFO).
I would like to explain the financial results for the first quarter of the fiscalyear ending March 31, 2025.

Overview of Results(Billions of Yen)

FY 03/2024
Three-Month
Results

FY 03/2025
Three-MonthResults

YoY Change

FY 03/2025
1H Forecast

YoY ChangeOrders

98.4

99.3

+ 0.9%

212.0+ 13.7%

Net Sales

90.594.0+ 3.8%

194.0+ 3.0%

Business Profit

7.58.4+ 12.1%

20.0+ 10.7%

Net of Other Income and Expenses

0.70.3－(0.5)－Operating Profit

8.1

8.6+ 6.2%

19.5+ 6.6%

Profit Before Tax

8.1

8.7

+ 7.6%

19.2+ 5.6%

Profit Attributable to Owners of Parent

5.7

5.7

+ 0.1%

13.5+ 7.2%

50.67

50.74

+ 0.1％

120.13+ 7.2%USD (yen)

137.4

155.9

142.0

EUR (yen)

149.5

167.9

154.0

CNY (yen)

19.6

21.5

19.8

Basic Earnings per Share (yen)Foreign Exchange
Rate⚫ Arcade Engineering GmbH and its group companies were consolidated in the General Industry segment in the second quarter of the previous fiscal year.

1

Overview of Results
During the first quarter of this fiscal year, the impact of the weak yen on
foreign exchange rates had a positive impact on the results.
Excluding this impact, both orders and net sales decreased, while businessprofit increased.
Arcade Engineering, which operates water treatment facility business for theelectronics industry in Europe, was consolidated in the second quarter of theprevious fiscal year.
For the first quarter of this fiscal year, this new consolidation had an impact ofapproximately 1.3 billion yen on both orders and net sales.

Results by Segment(Billions of Yen)

FY 03/2024
Three-Month
Results

Orders98.4

Net Sales

90.5

Business Profit
Business Profit
MarginTotalGeneralIndustry

YoY Change

FY 03/2025
1H Forecast

99.3

+ 0.9

212.0

94.0

+ 3.4

194.0

7.5

8.4

+ 0.9

20.0

8.2%

8.9%

+ 0.7pp

10.3%

8.1

8.6

+ 0.5

19.5

Orders42.0

37.4(4.7)

86.0

Net Sales

Operating ProfitElectronics
Industry

FY 03/2025
Three-MonthResults

43.2

43.6+ 0.4

85.0

Business Profit

4.4

4.7+ 0.4

9.8

Business Profit
Margin10.1％

10.8％+ 0.7pp

11.5％

Operating Profit

4.5

4.8+ 0.2

9.8

Orders

56.4

61.9+ 5.5

126.0

Net Sales

47.3

50.4+ 3.0

109.0

Business Profit

3.1

3.7+ 0.6

10.2

Business Profit
Margin6.5％

7.3％+ 0.7pp

9.4％

Operating Profit

3.6

3.9+ 0.3

9.7

Electronics Industry⚫ Orders declined due to decreased facility orders.
⚫ Net sales declined excluding the impact of foreignexchange rates due to the absence of net sales
coming from a Japanese large-scale facility project inthe same period of the previous fiscal year, although
recurring contract-based services increased.
⚫ Business profit increased, with the effects of an
improved cost of sales ratio due to the increase ofservice business sales, more than offsetting the impact
of decreased sales and increased SG&A expenses.
General Industry⚫ Orders increased excluding the impacts of foreignexchange rates and new consolidation mainly due toincreased orders for maintenance.
⚫ Net sales declined excluding the impacts of foreignexchange rates and new consolidation mainly due todecreased sales in overseas chemicals business.
⚫ Business profit increased, with the effects of an
improved cost of sales ratio due to expanded CSV
business and optimization of product composition,
more than offsetting the impact of decreased sales andincreased SG&A expenses.
2

Results by Segment
Business profit in the Electronics Industry segment increased compared tothe same period of the previous fiscal year.
Due to the increased sales of recurring contract-based services and theabsence of sales coming from a Japanese large-scale facility project in theprevious fiscal year, the proportion of net sales from the service businessincreased, leading to improved cost of sales ratio.
The effect of an improved cost of sales ratio outweighed the negative impact
of decreased sales and increased SG&A expenses.
Business profit in the General Industry segment also increased compared tothe same period of the previous fiscal year.
The cost of sales ratio was improved due to expanded CSV business andoptimization of product composition, more than offsetting the impact ofdecreased sales and increased SG&A expenses.

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

10.0

7.5

Improving thecost of sales ratio

Increase inSG&A expenses

+ 2.3

(1.0)

Impact ofdecreased sales

Impact of foreignexchange rate and newconsolidation*

+ 0.4

8.4

(0.8)
⚫ Increase in personnel
expenses⚫ Increase in R&D
expenses

5.0
FY 03/2024
Three-Month
Results⚫ Sales decreased inboth Electronics
Industry segment
and GeneralIndustry segment⚫ Improved in Electronics Industry
segment due to the higher
proportion of net sales from theservice business⚫ Improved in General Industry
segment due to expanded CSV
business and optimization ofproduct composition

FY 03/2025
Three-MonthResults

YoY change : ＋0.90.0* Arcade Engineering GmbH and its group companies were consolidated in the General Industry segment in the second quarter of the previous fiscal year.

Factors in Business Profit Change (YoY Change)
On an organic basis excluding the impact of foreign exchange rate and newconsolidation, business profit increased by 0.5 billion yen.
The factors of impact of decreased sales and improving the cost of salesratio were explained in the previous slide.
SG&A expenses increased due to an increase in personnel expenses as wellas costs associated with promoting innovation and digital transformation.

3

Electronics Industry Segment(Billions of Yen)

OrdersFacilities

FY 03/2024
Three-Month
Results

FY 03/2025
Three-Month
Results

YoY Change

FY 03/2025
1H Forecast

42.0

37.4

(4.7)

86.0

14.9

6.4

(8.5)

30.4

Recurring ContractBased Services

11.3

11.9

+ 0.7

23.9

Services

15.9

19.0+ 3.2

31.7

Chemicals

2.5

3.0+ 0.5

5.5

Precision ToolCleaning

5.6

7.2

+ 1.5

13.6

Maintenance

7.7

8.8

+ 1.2

12.6

Net Sales

43.2

43.6

+ 0.4

85.0

Facilities

19.5

18.1

(1.4)

33.2

⚫ Orders for facilities declined due to the absence of theseveral large projects in the same period of theprevious fiscal year. Net sales for facilities decreased
due to the absence of sales coming from a Japaneselarge-scale facility project posted in the previous fiscal
year despite of an increased sales in China.
⚫ Recurring contract-based services increased due toan increase in water supply business.
⚫ Net sales for precision tool cleaning increased evenexcluding the impact of foreign exchange rates.
⚫ Orders and net sales for maintenance were in line with
1H forecast, while year on year change depends on
the timing of the projects.

Recurring ContractBased Services

11.2

11.9+ 0.8

23.7Services

12.6

13.6

+ 1.1

28.1

Chemicals

2.5

2.9+ 0.3

5.5

Precision ToolCleaning

5.7

7.0

+ 1.3

13.6

Organic Change(1.9)

Maintenance

4.3

3.7

(0.6)

9.0

Impact of Foreign Exchange Rate+ 2.3

Factors in Change(Billions of Yen)

4

Orders and Net Sales in the Electronics Industry Segment
Orders decreased mainly due to decreased orders for facilities.
Facility orders declined mainly in China and South Korea due to the absenceof several large projects in the same period of the previous fiscal year.
Orders for precision tool cleaning increased even excluding the impact offoreign exchange rates. However, cleaning needs, which are affected by theoperating status of customers’ plants, have not yet fully recovered, andorders increase was slowly.
Recurring contract-based services increased due in part to the contribution ofcertain project where water supply began in April.

Net sales decreased excluding the impact of foreign exchange rates
compared to the same period of the previous fiscal year.
The main factor is a decrease in sales for facilities due to the absence ofsales coming from a Japanese large-scale facility project in the previous
fiscal year despite increased sales for precision tool cleaning and recurring
contract-based services.

General Industry Segment(Billions of Yen)

FY 03/2024
Three-Month
Results

FY 03/2025
Three-Month
Results

YoY Change

FY 03/2025
1H Forecast

56.4

61.9

+ 5.5

126.0

Facilities

7.7

8.8

+ 1.1

29.5

Recurring ContractBased Services

2.9

3.2

+ 0.3

5.0

Services

45.8

50.0+ 4.2

91.5

Chemicals

27.8

29.0

+ 1.3

61.9

Maintenance

16.4

17.9

+ 1.5

25.4

Others1.7

3.1+ 1.4

4.3

Net Sales

47.3

50.4

+ 3.0

109.0

Facilities

4.5

6.3

+ 1.8

16.8

Recurring ContractBased Services

2.2

2.7

+ 0.5

5.3

Services

Orders

40.6

41.4

+ 0.8

86.8

Chemicals

27.7

28.5

+ 0.8

61.7

Maintenance

11.2

10.9(0.3)

21.2Others

1.7

1.9+ 0.3⚫ Orders and net sales for facilities increased due to thenew consolidation of Arcade Engineering and anacquisition of projects and construction progress for
public sector in North America.
⚫ Recurring contract-based services increased due tothe growth both in Japan and overseas.
⚫ Orders and net sales for chemicals declined overseas
excluding the impact of foreign exchange rates, but
CSV business expanded.

⚫ Orders for maintenance increased mainly in Japan.

Factors in Change

3.9(Billions of Yen)

Organic Change(0.9)

Impact of Foreign Exchange Rate+ 2.7

Impact of New Consolidation+ 1.3
5Orders and Net Sales in General Industry Segment
Orders increased even excluding the impact of foreign exchange rates
compared to the same period of the previous fiscal year.
Facility orders increased due to the new consolidation of Arcade Engineeringand expanded facilities business for public sector in North America, andorders for maintenance increased mainly in Japan.
Net sales decreased excluding the impact of foreign exchange rates and newconsolidation, compared to the same period of the previous fiscal year.
Chemical sales decreased mainly due to the impact of changes in thebusiness environment in Asia and lower demand for chemicals in Europe
where the average temperature in June was lower than last year.
On the other hand, net sales in CSV business increased in each region, inline with the business expansion initiatives.

Net Sales by Region / CSV Business Net Sales
Net Sales by Region - Consolidated
FY 03/2024
Three-Month
Results

FY 03/2025
Three-Month
Results

Japan

48.1

Asia

20.3

(Billions of Yen)

Net Sales by Region - General Industry
YoY Change

FY 03/2025
1H Forecast

42.4(5.7)

85.8

25.1+ 4.850.0

FY 03/2024
Three-Month
Results

FY 03/2025
Three-Month
Results

YoY Change

FY 03/2025
1H Forecast

Japan

23.6

23.8+ 0.2

48.6

Asia

5.4

5.1(0.3)

12.0

10.6

12.3

+ 1.7

27.8

7.7

9.1

+ 1.3

20.7

47.3

50.4+ 3.0

109.0

FY 03/2025
Three-Month
Results

YoY Change(Billions of Yen)

North & SouthAmerica

14.2

17.2

+ 3.0

37.5

North & SouthAmerica

EMEA

8.0

9.3

+ 1.3

20.7

EMEA

90.5

94.0+ 3.4

194.0

Total

Net Sales by Region - Electronics Industry
FY 03/2024
Three-Month
Results

FY 03/2025
Three-Month
Results

Japan

24.5

Asia

14.9

North & SouthAmerica

3.6

EMEA*

0.3

0.2

43.2

43.6

(Billions of Yen)

Total

Total

CSV Business Net Sales

YoY Change

FY 03/2025
1H Forecast

18.6

(5.9)

37.2

19.9+ 5.0

38.0

4.9+ 1.3(Billions of Yen)

FY 03/2024
Three-Month
Results

FY 03/2025
Full-Year
Forecast

Consolidated

8.9

11.2+ 2.3

48.0

Electronics
Industry

2.9

3.3+ 0.4

14.5

9.8(0.0)

ーGeneralIndustry

6.0

7.9

+ 1.9

33.5

+ 0.4

85.0

* From the first quarter of this fiscal year, net sales for precision tool cleaning business in EMEA has been recognized as EMEA sales, while the forecast figures are still included in North and South America.
6Net Sales by Region / CSV Business Net Sales
Net Sales for CSV business increased and are progressing roughly in linewith our full-year forecast.
As the expansion of CSV business is one of key drivers to improve
profitability in General Industry segment, we will continue to pursue various
initiatives to expand this business.

Capital Expenditures, Depreciation and R&D Expenses（Billions of Yen）

FY 03/2024
FY 03/2025Three-Month Three-Month YoY Change
ResultsResults

FY 03/2025
Full-YearForecast⚫ Capital expenditures increased compared to the same
period of the previous fiscal year due to a higher investment
in water supply business and precision tool cleaning.

Capital Expenditures(Property, Plant andEquipment*)

8.3

12.0+ 3.6

46.4

⚫ Depreciation increased mainly due to the start of new watersupply business project in this fiscal year.

Depreciation(Property, Plant andEquipment*)

6.9

7.3

+ 0.5

31.5

⚫ R&D expenses increased due to strengthening efforts tocreate innovation.

R&D Expenses

1.7

2.0+ 0.3

7.5* Right-of-use assets are included.

7

Capital Expenditures, Depreciation, and R&D Expenses are progressing
roughly in line with the full-year forecast.
This concludes my explanation.

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.
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