FOR IMMEDIATE RELEASE
Kurita Water Industries Ltd. Reports Earnings for the Nine Months Ended December 31, 2022
Tokyo, Japan, February 2, 2023 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 251,706 million yen and profit attributable to owners of parent of 20,149
million yen, or 179.28 yen per share, for the nine months ended December 31, 2022 (April 1, 2022 December 31, 2022).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the nine months ended December 31,
2022 rose 31.6% from the level of the year-ago period, to 288,057 million yen, and net sales increased
19.2%, to 251,706 million yen. Business profit* increased 12.6%, to 28,369 million yen, operating
profit was 27,669 million yen, up 8.3% versus the year-ago period, profit before tax was 28,963 million
yen, rising 39.4%, and profit attributable to owners of parent amounted to 20,149 million yen, up
67.5%.
In the first nine months under review, the Company underwrote a capital increase at Kurita America
Holdings Inc. to help it acquire additional shares in US-based subsidiary Pentagon Technologies Group,
Inc. (Water Treatment Facilities business) (and make it a wholly owned subsidiary) and completed thepayment. The Company posted in finance income a gain on derivatives transactions of 1,090 million
yen from a foreign exchange contract it entered into after deciding to underwrite the capital increase.
Meanwhile, finance costs of 4,639 million yen posted in the same period of the previous fiscal yearthat resulted from the subsequent measurement of liabilities related to a forward contract concluded
with the non-controlling shareholders of Pentagon Technologies Group, Inc. (Water Treatment
Facilities business) were eliminated. Those factors contributed to the significant increases in profit
before tax and profit attributable to owners of parent.
During the first nine months of the fiscal year ending March 31, 2023, uncertainty in the global
economy increased, reflecting continued disruption in supply chains and sharp rises in prices of raw
materials and energy chiefly due to the prolonged war in Ukraine and the resurgence in COVID-19
cases. However, the global economy continued to recover moderately. Production activities in the
manufacturing industry in Japan were weak in certain sectors chiefly due to constraints on the supplyof raw materials caused mainly by semiconductor shortages and lockdowns in China, but there
remained signs of a recovery in capital investment. Overseas, there were signs of a recovery in the U.S.
economy, as well as in the economies in Europe and Asia excluding China. Meanwhile, the Chinese
economy slowed on economic weakness caused chiefly by the resurgence in COVID-19 cases after
the removal of movement restrictions.
In this environment, the Group stepped up initiatives to propose total solutions that would help solve
customer issues such as the reduction of the environmental impact, including water saving, thereduction of CO2 emissions and waste reduction, and an improvement in productivity, while expanding
the CSV (creating shared value) business based on a deep understanding of social and customer issues,
aiming to address climate change and create value shared with society.
* Business profit is the Group’s own indicator that measures constant business performance. It is net
sales less cost of sales and selling, general and administrative expenses. Although business profit is
not defined by IFRS, the Group voluntarily discloses it, believing that it is beneficial for users of its
financial statements.
Segment Information
The Group consists of two reportable segments in its segment information: Water Treatment
Chemicals and Water Treatment Facilities.
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 102,518 million yen, up 17.0%
1

versus the year-ago period, while net sales rose 17.2%, to 102,923 million yen.
In terms of profits, business profit amounted to 12,414 million yen, an increase of 14.5% year on
year, and operating profit rose to 12,284 million yen, up 10.6% year on year, chiefly due to an increasein net sales, which more than offset a rise in expenses chiefly due to increases in raw materials prices
and distribution costs.
In Japan, orders and net sales remained flat from the same period of the previous fiscal year,
reflecting the effects of supply shortages of semiconductors and other raw materials on capacity
utilization at certain customers’ plants.
Overseas, both orders and net sales increased, reflecting sales price increases in response to sharp
rises in raw materials prices and logistics costs and an increase in results in yen at overseas subsidiaries
due to the weaker yen as well as the results of the development of high value-added services, including
the CSV (creating shared value) business.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 185,538 million yen, up 41.4%
versus the same period of the previous fiscal year. Net sales increased 20.6%, to 148,783 million yen.
In terms of profits, business profit amounted to 15,971 million yen, an increase of 11.1% year on
year, and operating profit rose to 15,403 million yen, up 6.7% year on year, chiefly due to an increasein net sales, which more than offset a rise in expenses related to the procurement of raw materials andparts.
In Japan, both orders and net sales of water treatment facilities for the electronics industry increased
due to the posting of orders for large projects and sales from the order backlog. Orders and net sales
for maintenance services for the industry both increased, reflecting the expansion of facilities and theposting of orders for and sales from repairs, including the replacement of consumables, against a
backdrop of firm capacity utilization at customers’ plants.
Orders for water treatment facilities for general industries climbed, but net sales declined. Orders
and net sales of maintenance services for the industry both increased because of a recovery inmaintenance demand. Orders for water treatment facilities for the electric power industry increasedslightly. Net sales fell as the posting of sales from large projects had run its course. Orders and net
sales of soil remediation services increased, reflecting demand for small and medium-sized projects.
Overseas, both orders and net sales increased due to an increase in results in yen at overseas
subsidiaries associated with the weaker yen, the posting of orders and sales of large water treatment
facilities projects in the electronics industry in East Asia and an increase in sales of precision toolcleaning services.
Total net sales in the ultrapure water supply business in Japan and overseas increased due in part tothe contribution of a contract that began in the fiscal year under review.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 495,905 million yen, an increase of 25,924 million yen from the end of the previous
fiscal year
Current assets totaled 191,274 million yen at the end of the third quarter (December 31, 2022), an
increase of 12,878 million yen from the end of the previous fiscal year (March 31, 2022). This was
mainly due to trade and other receivables and inventories of 7,961 million yen and 5,019 million yen,respectively.
Non-current assets totaled 304,631million yen at the end of the third quarter, an increase of 13,046
million yen from the end of the previous fiscal year. Property, plant and equipment increased 14,049
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business (Water
Treatment Facilities business), and goodwill rose 4,331 million yen due to the weakening of the yen
against other currencies, while other financial assets decreased 8,430 million yen chiefly due to thesale of investment securities held by the Group.

22) Liabilities: 201,545 million yen, an increase of 9,426 million yen from the end of the previous fiscal
year
Current liabilities totaled 104,877 million yen at the end of the period, a decrease of 9,050 million yen
from the end of the previous fiscal year. This is chiefly attributable to a decrease of 19,608 million yen
in other financial liabilities due to mainly the implementation of the forward contract concluded with
the non-controlling shareholders of US-based Pentagon Technologies Group, Inc. (Water Treatment
Facilities business) and decreases in income taxes payable and trade and other payables of 6,223
million yen and 3,792 million yen, respectively, which were partially offset by an increase of 19,639
million yen in bonds and borrowings chiefly due to the issuance of commercial paper and new
borrowings.
Non-current liabilities totaled 96,667 million yen at the end of the period, an increase of 18,476
million yen from the end of the previous fiscal year. This principally reflected an increase in bonds
and borrowings of 17,940 million yen mainly due to the issuance of the second series of unsecured
bonds (10,000 million yen) and new borrowings.
3) Equity: 294,360 million yen, an increase of 16,498 million yen from the end of the previous fiscal
yearThis principally reflected an increase of 16,651 million yen in retained earnings primarily due to profit
attributable to owners of parent posted.
Cash Flows
Consolidated net cash and cash equivalents at the end of the third quarter totaled 48,268 million yen,
an increase of 2,537 million yen from the end of the previous fiscal year.
The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the nine months ended December 31, 2022 totaled
28,766 million yen, an increase of 11,002 million yen from the same period of the previous fiscal year.
This was chiefly due to inflows from profit before tax of 28,963 million yen and depreciation andamortization of 21,784 million yen, which were partially offset by outflows, including income taxes
paid of 16,508 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 29,785 million yen, an increase of 5,681 million yen fromthe same period of the previous fiscal year. Outflows chiefly from purchases of property, plant andequipment of 36,935 million yen were partly offset by inflows mainly from proceeds from sale ofinvestment securities of 8,740 million yen.
3) Cash Flows from Financing Activities
Net cash provided by financing activities totaled 2,429 million yen, an increase of 9,203 million yen
from the previous fiscal year. Inflows chiefly from a net increase in short-term borrowings andcommercial paper of 17,640 million yen, proceeds from long-term borrowings of 9,988 million yen,and proceeds from the issuance of bonds of 9,955 million yen were partly offset by the purchase ofshares of subsidiaries not resulting in change in scope of consolidation of 22,127 million yen anddividends paid of 8,699 million yen.
The Group’s basic policy is to constantly secure the liquidity necessary for business operations andestablish a stable funds-raising system. Short-term working capital, capital investment and otherinvestments in growth fields depend chiefly on the Group’s own funds, but the Group produce funds
from the bond market and bank loans as needed. As of the end of the period under review, the Grouphas concluded commitment line contracts with one financial institution (no borrowing executed andunexecuted borrowings within the commitment line was 20,000 million yen).
3

Forecasts for the Fiscal Year Ending March 31, 2023
Regarding the impact of COVID-19, while it is difficult to rationally estimate how COVID-19 will
spread and when it will subside, the Company assumes that economic activities will normalize and theeconomy will recover moderately. Therefore, the Group’s current outlook for the fiscal year ending
March 31, 2023 is consistent with the earnings forecast disclosed in “Kurita Water Industries Ltd.
Reports Earnings for the Six Months Ended September 30, 2022,” which was announced on October
31, 2022.
The business forecasts are made by the Company based on information available at the time of
publication of this report and may differ from actual results due to changes in a range of factors.

4Condensed quarterly consolidated financial statements(1) Condensed quarterly consolidated statement of financial position(Million yen)
As of March 31, 2022

As of December 31, 2022

Cash and cash equivalents

45,73048,268Trade and other receivables

AssetsCurrent assets
108,892

116,853

Other financial assets

3,075

3,662

Inventories

13,132

18,151Other current assets

7,564

4,337

Total current assets

178,396

191,274

Property, plant and equipment

161,034

175,083

Right-of-use assets

19,042

21,073

Goodwill

62,992

67,323

Intangible assets

18,092

17,256

Non-current assets

Investments accounted for using equity method

1,191

1,232

Other financial assets

23,011

14,581

Deferred tax assets

6,071

7,889

Other non-current assets

150

192

Total non-current assets

291,585304,631469,981495,905

Total assets

5

(Million yen)
As of March 31, 2022

As of December 31, 2022

Trade and other payables

57,96754,175

Bonds and borrowings

8,180

27,819Lease liabilities

4,683

4,332

Other financial liabilities

19,613

5

Income taxes payable

8,663

2,440

Liabilities and equity
Liabilities
Current liabilities

Provisions

1,529

1,227

Other current liabilities

13,28914,876

Total current liabilities

113,927

104,877

Bonds and borrowings

30,95348,893

Lease liabilities

14,862

16,965

Other financial liabilities

1,757

1,612

Net defined benefit liability

18,144

18,660

Provisions

2,335

2,434

Deferred tax liabilities

2,646

2,286

Other non-current liabilities

7,491

5,814

Total non-current liabilities

78,191

96,667

192,119

201,545

Share capital

13,45013,450Capital surplus(3,076)(162)

Treasury shares(10,694)(10,636)

Other components of equity

12,161

12,394Retained earnings

260,073276,724

Equity attributable to owners of parent

271,914

291,770

Non-current liabilities

Total liabilities
Equity

5,948

2,589

Total equity

Non-controlling interests

277,862

294,360

Total liabilities and equity

469,981495,9056

(2) Condensed quarterly consolidated statement of profit or loss
(Million yen)
Nine months ended
December 31, 2021
Net sales
Cost of sales
Gross profit

Nine months ended
December 31, 2022

211,223

251,706

133,482

162,781

77,74088,924

Selling, general and administrative expenses

52,54660,555

Other income

1,594

945

Other expenses

1,249

1,645

Operating profit

25,53927,669Finance income

513

1,852

Finance costs

5,183

704

(96)

146

20,77328,963

Share of profit (loss) of investments accounted for using
equity method
Profit before tax
Income tax expense
Profit for the period

7,775

8,215

12,997

20,747

12,031

20,149Profit attributable to
Owners of parent
Non-controlling interests
Profit for the period

965

598

12,997

20,747107.08179.28‒‒

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Condensed quarterly consolidated statement of comprehensive income(Million yen)
Nine months ended
December 31, 2021
Profit for the period

Nine months ended
December 31, 2022

12,997

20,747

Net change in the fair value of financial assets measured
at fair value through other comprehensive income

976

27

Remeasurements of defined benefit plans

1149

Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss

988

77

Exchange differences on translation of foreign operations

Other comprehensive income
Items that will not be reclassified to profit or loss

2,459

4,064

Cash flow hedges

11

153

Share of other comprehensive income of investments
accounted for using equity method

72

(16)

Total of items that may be reclassified to profit or loss

2,543

4,201

Other comprehensive income, net of tax

3,531

4,279

Comprehensive income for the period

16,52925,027

Owners of parent

15,18023,517

Non-controlling interests

1,348

1,509

16,52925,027

Comprehensive income attributable toComprehensive income for the period8(4) Condensed quarterly consolidated statement of changes in equity
Nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2021

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Financial assets
measured at fairvalue throughothercomprehensive
incomeCash flow
hedges13,450(2,212)(10,787)(4,469)(91)

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

2,147

11

976

Total comprehensive income for the period

13,060

‒

‒

‒

2,147

11

976

Purchase of treasury shares

‒

‒

(4)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

16

98

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(4,946)

Other

‒

(7)

‒

‒

‒

‒

‒

8

94

‒

‒

(4,946)

13,450(2,203)(10,693)(2,321)

(79)

9,090

Total transactions with owners
Balance as of December 31, 2021

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2021

‒

8,500

244,138

253,089

4,748

257,837

Profit for the period‒‒

12,031

12,031965

12,997

Other comprehensive income

13

3,148

‒

3,148

383

3,531

13

3,148

12,031

15,1801,348

16,529Purchase of treasury shares

‒

‒

‒

(4)

‒

(4)

Dividends‒‒(7,865)(7,865)(689)(8,554)

Share-based payment transactions

‒

‒

‒

114

(1)

113

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

268

268

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings(13)(4,960)

4,960

‒

‒

‒

Total comprehensive income for the period

‒

‒

‒

(7)

26

19

Total transactions with owners

Other

(13)

(4,960)(2,904)(7,762)(395)(8,158)

Balance as of December 31, 2021

‒

6,689

253,265

260,508

5,701

266,2099

Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2022

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(3,076)(10,694)

3,493

40

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

3,136

153

27

Total comprehensive income for the period

8,627

‒

‒

‒

3,136

153

27

Purchase of treasury shares

‒

‒

(1)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

38

58

‒

‒

‒

Changes in ownership interests in subsidiaries‒(19,308)

‒

1,796

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders‒

22,051‒‒‒‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(4,881)

Other

‒

132

‒

‒

‒

‒

‒

2,914

57

1,796

‒

(4,881)

13,450(162)(10,636)

8,426

194

3,773

Total transactions with owners
Balance as of December 31, 2022

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2022‒

12,161

260,073

271,914

5,948

277,862

Profit for the period‒‒

20,14920,149598

20,747

Other comprehensive income

49

3,368

‒

3,368

911

4,279

49

3,368

20,14923,517

1,509

25,027Purchase of treasury shares

‒

‒

‒

(1)

‒

(1)

Dividends‒‒(8,429)(8,429)(253)(8,683)

Share-based payment transactions

‒

‒

‒

97

0

98

Changes in ownership interests in subsidiaries

‒

1,796

‒

(17,511)(4,615)(22,127)

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

22,051‒22,051

Transfer from other components of equity toretained earnings(49)(4,931)

4,931

‒

‒

‒

Total comprehensive income for the period

‒

‒

‒

132

‒

132

Total transactions with owners

Other

(49)

(3,135)(3,497)(3,661)(4,868)(8,529)Balance as of December 31, 2022‒

12,394

276,724

291,7702,589

294,36010

(5) Condensed quarterly consolidated statement of cash flows(Million yen)
Nine months ended
December 31, 2021

Nine months ended
December 31, 2022

Cash flows from operating activities
Profit before tax

20,77328,963

Depreciation and amortization

17,103

21,784

Share of loss (profit) of investments accounted for using
equity method

96

(146)

Loss (gain) on sale of fixed assets

(59)

91

Decrease (increase) in inventories(2,165)(4,627)

Decrease (increase) in trade and other receivables(8,794)(7,367)

Increase (decrease) in trade and other payables

3,363

4,052

Other

(235)

2,057

30,08144,80881

167

SubtotalInterest received
Dividends received

586

412

Interest paid

(102)

(113)

Income taxes paid

(12,883)(16,508)

Net cash provided by (used in) operating activities

17,76428,766(1,582)(4,101)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

1,679

3,784

Purchase of property, plant and equipment(30,264)(36,935)

Proceeds from sale of property, plant and equipment

313

213

Purchase of intangible assets(1,602)(1,102)

Proceeds from sale of investment securities

9,194

8,740

Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)(2,401)

‒

560

(384)

(24,104)(29,785)

5,676

17,640‒9,955

Proceeds from long-term borrowings

58

9,988

Repayments of long-term borrowings

(335)

(434)

Repayments of lease liabilities(3,719)(3,950)

Dividends paid

(8,548)(8,699)‒(22,127)

Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings andcommercial paper
Proceeds from issuance of bonds

Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Other

94

57

Net cash provided by (used in) financing activities(6,774)2,429

Effect of exchange rate changes on cash and cash equivalents

1,174

1,127

Net increase (decrease) in cash and cash equivalents(11,940)

2,537

Cash and cash equivalents at beginning of period

62,22845,730Cash and cash equivalents at end of period

50,28748,26811

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)
Not applicable(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 review to enable the Company’s board of directors to decide how to allocate
resources and assess performance.
The Group plans comprehensive strategies for the products that it handles in Japan and overseas, and develops a business.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment Chemicals segment andthe Water Treatment Facilities segment.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals and equipment and provides
maintenance services. The Water Treatment Facilities segment manufactures and sells water treatment system and facilities,
supplies ultrapure water, chemical cleaning, precision tool cleaning, soil and groundwater remediation services, andprovides maintenance services that encompass operation, maintenance, and management of water treatment facilities.
(2) Information of reportable segments
Nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021)(Million yen)
Reportable Segments
Water Treatment Water Treatment
Chemicals
Facilities

Total

Adjustments(note 1)

Amounts reported
on the condensed
quarterly
consolidated
statement of profit
or loss (note 2)

Net sales
Sales to outside customers
Inter-segment sales and transfers

87,852
408

123,370374

211,223
783

‒
(783)

211,223‒

Total

88,261

123,745

212,006(783)

211,223

11,104

14,44025,544(5)

25,539Segment income
Finance income

513

Finance costs

5,183

Share of profit (loss) of investments accounted for using equity method(96)

Profit before tax

20,773(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)(Million yen)

Total

Adjustments(note 1)

Amounts reported
on the condensed
quarterly
consolidated
statement of profit
or loss (note 2)

Reportable Segments
Water Treatment Water Treatment
Chemicals
Facilities
Net sales
Sales to outside customers
Inter-segment sales and transfers

102,923
439

148,783684

251,706
1,123‒(1,123)

251,706‒

Total

103,362

149,467

252,829(1,123)

251,706

12,284

15,403

27,688(18)

27,669Segment income
Finance income

1,852

Finance costs

704

Share of profit (loss) of investments accounted for using equity method
Profit before tax

146
28,963(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

12

(Bonds and borrowings)(1) Bonds
Nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021)
No bonds were issued or redeemed.
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)
The bonds issued are described below.
Name

Issue

Issue date

Total amount issued(million yen)Interest rate(%)

Redemption period

The Company

Second series of
unsecured bonds

May 26, 2022

10,0000.29

May 26, 2027

No bonds were redeemed.
(2) Borrowings
Nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021)
Information is omitted because there were no important borrowings.
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)
The Group borrowed a total of 10,000 million yen (the final repayment date is December 29, 2027, even repayments) inthe third quarter under review.
(Finance income)Nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021)
Information is omitted because there were no important events.
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)
In the first quarter of the fiscal year under review, a gain on derivatives transactions of 1,090 million yen was recorded
in finance income. This is income from a foreign exchange contract that the Company entered into after deciding tounderwrite a capital increase in Kurita America Holdings Inc.
(Additional Information)(Acquisition of additional shares in a subsidiary)
The forward contract on a share transfer concluded between Kurita America Holdings Inc. and the non-controllingshareholders of Pentagon Technologies Group, Inc. was implemented on June 30, 2022, and Kurita America Holdings
acquired an additional 49% stake in Pentagon Technologies Group Inc. As a result, Pentagon Technologies Group Inc.
has become a wholly owned subsidiary of the Group.
The value of additional shares acquired was 161 million US dollars (22,127 million yen). The amount is posted under
the purchase of shares of subsidiaries not resulting in change in scope of consolidation in cash flows from financing
activities in the condensed quarterly consolidated statement of cash flows. In connection with the posting of purchase ofshares of subsidiaries, liabilities related to the forward contract concluded with the non-controlling shareholders posted
as financial liabilities of 19,613 million yen in the previous fiscal year was eliminated, non-controlling interests declined
4,615 million yen, and the capital surplus increased 2,743 million yen.

Disclaimer- This document is an English translation of the Earnings Report for the Nine Months Ended December 31, 2022 asreference information primarily for overseas investors. If there are any discrepancies between the Japanese version andthe English version, the Japanese version shall take precedence in all cases.
- This document is not subject to audit.
- The forward-looking statements such as performance forecasts contained in this document are based on information
currently available to the Company and certain assumptions deemed to be reasonable, and are not intended to be acommitment by the Company. Actual performance, etc. may differ due to a variety of factors. See “Forecasts for the
Fiscal Year Ending March 31, 2023” on page 4 of this document for the conditions assumed in the performance forecasts
and the precautions concerning the use of performance forecasts.

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