FOR IMMEDIATE RELEASE
Kurita Water Industries Ltd. Reports Earnings for the Nine Months Ended December 31, 2023
Tokyo, Japan, February 9, 2024 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 286,675 million yen and profit attributable to owners of parent of 21,906
million yen, or 194.89 yen per share, for the nine months ended December 31, 2023 (April 1, 2023 December 31, 2023).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the nine months ended December 31,
2023 fell 2.2% from the level of the year-ago period, to 281,597 million yen, and net sales increased
13.9%, to 286,675 million yen. Business profit* increased 7.3%, to 30,452 million yen, operating profit
was 30,518 million yen, up 10.3% versus the year-ago period, profit before tax was 30,471 million
yen, rising 5.2%, and profit attributable to owners of parent amounted to 21,906 million yen, up 8.7%.
During the nine months ended December 31, 2023, the global economy continued to show atendency toward recovery, despite signs of weakness in some regions. In Japan, production in certain
sectors of the manufacturing industry showed signs of rising as raw material supply restrictions werebeing lifted, but the recovery was weak, chiefly due to the weak semiconductor-related demand.
Capital investment saw little growth. Overseas, the U.S. economy and Asian economies excluding
China recovered modestly. Meanwhile, European economies saw sluggish growth due to the impactof rising prices and interest-rate hikes. The Chinese economy’s rebound was weak mainly due to theprolonged slump in the real estate market.
* 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
Previously, the Group’s reportable segments were the Water Treatment Chemicals segment and theWater Treatment Facilities segment, from the viewpoint of the products and services provided;
however, starting from the fiscal year under review, the Group has Electronics Industry and GeneralIndustry as the two reportable segments in its segment information, in order to formulate strategies
based on an in-depth examination of the characteristics of each market and to expand solutions by
combining diverse products and services, from the viewpoint of providing value to society andcustomers.
Year-on-year comparisons are based on figures for the same period of the previous fiscal year whichhave been reclassified to conform to the new segments.
Electronics Industry
Total Group orders for the Electronics Industry segment were 125,413 million yen, down 6.5% versus
the year-ago period. While orders for recurring contract-based services increased chiefly due to thecontribution of an ultrapure water supply contract that began in the previous fiscal year, orders forwater treatment facilities decreased due to the absence of orders for large-scale projects posted in thesame period of the previous fiscal year. Orders for precision tool cleaning fell, reflecting the impact oflower capacity utilization at customers’ plants in Japan and the U.S. associated with the deteriorationin semiconductor market conditions, while orders for maintenance also declined.
Total Group net sales for the Electronics Industry segment amounted to 131,419 million yen, an
increase of 22.2% year on year. While net sales of precision tool cleaning decreased, net sales of water
treatment facilities rose sharply due to progress with the construction of already ordered large-scale
projects and net sales of recurring contract-based services and maintenance also grew.
In terms of profits, business profit amounted to 14,914 million yen, a decrease of 10.9% year on1

year, and operating profit declined 9.1%, to 15,072 million yen, reflecting a decrease in sales ofprecision tool cleaning and a deterioration in the cost of sales ratio due to an increase in facility projects
with a comparatively high cost ratio.
General Industry
Total Group orders for the General Industry segment increased 1.5% from the same period of theprevious fiscal year, to 156,184 million yen. Orders for water treatment facilities rose mainly due tothe addition of four Arcade companies as new consolidated subsidiaries. Orders for recurring contractbased services and engineering cleaning also increased. Orders for maintenance, which were strong in
the first nine months of the previous fiscal year, remained flat. Orders for water treatment chemicals
declined given lower capacity utilization at customers’ plants, mainly in China.
Total Group net sales for the General Industry segment amounted to 155,256 million yen, an
increase of 7.7% year on year. Decline in sales of water treatment chemicals was offset by the additionof new consolidated subsidiaries and recognition of revenue from the order backlog in the water
treatment facilities business and maintenance business, as well as growth in recurring contract-based
services and engineering cleaning, resulting in growth in net sales.
In terms of profits, business profit amounted to 15,534 million yen, an increase of 33.4% year on
year, reflecting higher sales and efforts to improve profitability, including product mix optimizationand cost-cutting. Operating profit rose to 15,454 million yen, up 39.0% year on year.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 529,725 million yen, an increase of 28,187 million yen from the end of the previous
fiscal year
Current assets totaled 213,094 million yen at the end of the third quarter, an increase of 16,678 million
yen from the end of the previous fiscal year. This was mainly due to an increase of 11,136 million yen
in trade and other receivables and a rise of 4,227 million yen in inventories.
Non-current assets totaled 316,631 million yen at the end of the third quarter, an increase of 11,510
million yen from the end of the previous fiscal year. Property, plant and equipment increased 4,635
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business(Electronics Industry), and goodwill rose 6,486 million yen. The rise in goodwill is attributable to anincrease of 2,377 million yen due to the acquisition of Arcade Engineering GmbH, Arcade IndustrieSAS and Kurita Switzerland AG (former Arcade Engineering AG, whose name changed on December
18, 2023), and Arcade Engineering (Asia) Pte. Ltd. during the second quarter under review, and also
reflects the weakening of the yen against foreign currencies.
2) Liabilities: 212,340 million yen, an increase of 6,562 million yen from the end of the previous fiscal
year
Current liabilities totaled 106,886 million yen at the end of the period, a decrease of 2,582 million yen
from the end of the previous fiscal year. This is chiefly attributable to decreases of 4,870 million yen
in bonds and borrowings and 3,153 million yen in income taxes payable, which offset an increase of
5,497 million yen in trade and other payables.
Non-current liabilities totaled 105,453 million yen at the end of the period, an increase of 9,143
million yen from the end of the previous fiscal year. This was mainly due to an increase in bonds andborrowings of 9,984 million yen resulting from a rise in long-term borrowings.

23) Equity: 317,384 million yen, an increase of 21,625 million yen from the end of the previous fiscal
yearThis was attributable to an increase of 8,820 million yen in other components of equity mainly due tothe posting of exchange differences on translation of foreign operations, reflecting the weakening of
the yen against other currencies, and a rise of 12,761 million yen in retained earnings due to the postingof a profit attributable to owners of parent.
Cash Flows
Consolidated cash and cash equivalents at the end of the third quarter totaled 49,286 million yen, adecrease of 1,182 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, 2023 totaled
33,053 million yen, an increase of 4,287 million yen from the same period of the previous fiscal year.
This was chiefly due to inflows, including profit before tax of 30,471 million yen and depreciation,amortization and impairment losses of 24,089 million yen, which were partially offset by outflows,
including an increase in trade and other receivables of 7,613 million yen and income taxes paid of
11,898 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 27,814 million yen, a decrease of 1,971 million yen fromthe same period of the previous fiscal year. Cash was used mainly for purchases of property, plant andequipment of 21,242 million yen and the acquisition of subsidiaries of 3,070 million yen (after
deducting cash and cash equivalents included in acquired assets).
3) Cash Flows from Financing Activities
Net cash used in financing activities totaled 8,737 million yen, an increase of 11,166 million yen fromthe same period of the previous fiscal year. Cash was used mainly for dividends paid of 9,236 million
yen, a net decrease in short-term borrowings and commercial paper of 5,065 million yen, andrepayments of lease liabilities of 3,889 million yen, which were partially offset by proceeds from longterm borrowings of 12,018 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 procuresfinancing through bond markets and bank loans as needed. As of the end of the period under review,
the Group has concluded commitment line contracts with two financial institutions (no borrowing
executed and unexecuted borrowings within the commitment line was 20,000 million yen).
Forecasts for the Fiscal Year Ending March 31, 2024
The Group’s current outlook for the fiscal year ending March 31, 2024 is consistent with the earnings
forecast disclosed in “Reports Earnings for the Six Months Ended September 30, 2023,” which wasannounced on November 7, 2023.
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.

3Condensed quarterly consolidated financial statements(1) Condensed quarterly consolidated statement of financial position(Million yen)
As of March 31, 2023

As of December 31, 2023

Cash and cash equivalents

50,46849,286

Trade and other receivables

AssetsCurrent assets
120,299

131,435

Other financial assets

3,357

4,713

Inventories

16,84721,074

Other current assets

5,444

6,584

Total current assets

196,416

213,094

Property, plant and equipment

178,737

183,372

Right-of-use assets

21,92822,600Goodwill

60,413

66,899Intangible assets

17,104

16,604Non-current assets

Investments accounted for using equity method

1,283

1,343

Other financial assets

15,433

17,562

Deferred tax assets

9,984

7,999

Other non-current assets

235

248

Total non-current assets

305,121316,631501,538

529,725

Total assets

4

(Million yen)
As of March 31, 2023

As of December 31, 2023

Trade and other payables

51,46556,962

Bonds and borrowings

28,99824,128

Lease liabilities

4,294

4,414

Income taxes payable

6,018

2,865

Provisions

2,301

1,938

Liabilities and equity
Liabilities
Current liabilities

Other current liabilities

16,39016,578

Total current liabilities

109,468

106,886

Bonds and borrowings

48,75858,742

Lease liabilities

18,016

18,297

Non-current liabilities

Other financial liabilities

1,666

2,350

Net defined benefit liability

17,321

18,096

Provisions

2,613

2,703

Deferred tax liabilities

2,362

1,360

Other non-current liabilities

5,570

3,901

Total non-current liabilities

96,310105,453

205,778

212,340

13,45013,450Total liabilities
EquityShare capital
Capital surplus

(608)

(462)

Treasury shares(10,638)(10,916)

Other components of equity

14,132

22,952Retained earnings

277,639

290,400

293,975

315,425

1,784

1,959

Total equity

295,759

317,384

Total liabilities and equity

501,538

529,725

Equity attributable to owners of parent
Non-controlling interests5(2) Condensed quarterly consolidated statement of profit or loss and comprehensive income
Condensed quarterly consolidated statement of profit or loss
(Million yen)
Nine months ended
December 31, 2022
Net sales

Nine months ended
December 31, 2023

251,706

286,675

162,781

189,886

88,92496,78960,55566,336

Other income

945

1,601

Other expenses

1,645

1,534

Operating profit

27,66930,518Finance income

1,852

577

Finance costs

704

733

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

146

108

28,96330,471

Cost of sales
Gross profit
Selling, general and administrative expenses

Profit before tax
Income tax expense

8,215

8,303

Profit for the period

20,74722,16820,14921,906598

262

20,74722,168179.28

194.89‒‒Profit attributable to
Owners of parent
Non-controlling interests
Profit for the period
Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)6

Condensed quarterly consolidated statement of comprehensive income(Million yen)
Nine months ended
December 31, 2022

Profit for the period
Other comprehensive income

Nine months ended
December 31, 2023

20,74722,168Net change in fair value of financial assets measured atfair value through other comprehensive income

27

1,211

Remeasurements of defined benefit plans

49

(38)

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

77

1,173

Exchange differences on translation of foreign operations

4,064

7,724

Cash flow hedges

153

(111)

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

(16)

22

Total of items that may be reclassified to profit or loss

4,201

7,635

Items that will not be reclassified to profit or loss

Other comprehensive income, net of tax

4,279

8,809

25,02730,977

Owners of parent

23,51730,687

Non-controlling interests

1,509

290

25,02730,977

Comprehensive income for the period
Comprehensive income attributable toComprehensive income for the period7(3) Condensed quarterly consolidated statement of changes in equity
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

‒

‒

‒

‒

‒

8,627
‒

Other comprehensive income

‒

‒

‒

3,136

153

27

Total comprehensive income for the period

‒

‒

‒

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

‒

‒

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

22,051‒‒‒‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(4,881)

Other

‒

132

‒

‒

‒

‒

Total transactions with owners

‒

2,914

57

1,796

‒

(4,881)

Balance as of December 31, 2022

13,450(162)(10,636)

8,426

194

3,773

(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

Total comprehensive income for the period

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)

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

‒

‒

‒

‒

‒

‒

132

‒

132

Other
Total transactions with owners(49)(3,135)(3,497)(3,661)(4,868)(8,529)Balance as of December 31, 2022‒

12,394

276,724

291,7702,589

294,3608

Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2023

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(608)(10,638)

9,678

222

Profit for the period

‒

‒

‒

‒

‒

4,231
‒

Other comprehensive income

‒

‒

‒

7,718

(111)

1,211

Total comprehensive income for the period

‒

‒

‒

7,718

(111)

1,211

Purchase of treasury shares

‒

‒

(356)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

146

78

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

1
‒

Other

‒

‒

‒

‒

‒

Total transactions with owners

‒

146

(277)

‒

‒

1

Balance as of December 31, 2023

13,450(462)(10,916)

17,397111

5,444(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, 2023‒

14,132

277,639

293,975

1,784

295,759

Profit for the period‒‒

21,906

21,906262

22,168Other comprehensive income

(38)

8,780

‒

8,780

28

8,809

Total comprehensive income for the period

(38)

8,780

21,90630,687290

30,977Purchase of treasury shares

‒

‒

‒

(356)

‒

(356)

Dividends‒‒(9,105)(9,105)(112)(9,218)

Share-based payment transactions

‒

‒

‒

225

(2)

222

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

38

39

(39)

‒

‒

‒

Other

‒

‒

‒

‒

‒

‒

Total transactions with owners

38

39(9,145)(9,236)(115)(9,352)

Balance as of December 31, 2023‒

22,952

290,400

315,425

1,959

317,3849

(4) Condensed quarterly consolidated statement of cash flows(Million yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

Cash flows from operating activities
Profit before tax

28,96330,471

Depreciation, amortization and impairment losses

21,78424,089

(146)

(108)

Loss (gain) on sale of fixed assets

91

(22)

Decrease (increase) in inventories(4,627)(3,407)

Decrease (increase) in trade and other receivables(7,367)(7,613)

Increase (decrease) in trade and other payables

4,052

3,934

Other

2,057

(2,746)44,80844,597

167

335

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

SubtotalInterest received
Dividends received

412

266

Interest paid

(113)

(246)

Income taxes paid

(16,508)(11,898)

Net cash provided by (used in) operating activities

28,76633,053(4,101)(6,031)

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

3,784

4,850

Purchase of property, plant and equipment(36,935)(21,242)

Proceeds from sale of property, plant and equipment

213

48

Purchase of intangible assets(1,102)(2,007)

Proceeds from sale of investment securities

8,740

0

‒

(3,070)

(384)

(361)

(29,785)(27,814)

Net increase (decrease) in short-term borrowings andcommercial paper

17,640(5,065)

Proceeds from issuance of bonds

9,955

‒

Proceeds from long-term borrowings

9,988

12,018

Repayments of long-term borrowings(434)(2,286)

Repayments of lease liabilities(3,950)(3,889)Dividends paid
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation(8,699)(9,236)(22,127)‒

Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities

Other

57

(277)

2,429

(8,737)

Effect of exchange rate changes on cash and cash
equivalents

1,127

2,316

Net increase (decrease) in cash and cash equivalents

2,537(1,182)

Cash and cash equivalents at beginning of period

45,73050,468Cash and cash equivalents at end of period

48,26849,286

Net cash provided by (used in) financing activities

10Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)
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.
Previously, the Group’s reportable segments were the Water Treatment Chemicals segment and the Water Treatment
Facilities segment, from the viewpoint of the products and services provided; however, starting from the fiscal year underreview, which is the first fiscal year of the new Medium-term Management Plan PSV-27, the Group has Electronics
Industry and General Industry as the two reportable segments in its segment information, in order to formulate strategies
based on an in-depth examination of the characteristics of each market and to expand solutions by combining diverse
products and services, from the viewpoint of providing value to society and customers.
The segment information for the first nine months of the previous fiscal year has also been restated to reflect this change.

11(2) Information of reportable segments
Nine months ended December 31, 2022 (April 1, 2022 - December 31, 2022)(Million yen)
Reportable Segments

Net sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income

Adjustments(note 1)

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

Electronics
Industry

GeneralIndustry

Total

107,586‒

144,120‒

251,706‒‒‒

251,706‒

107,586

144,120

251,706‒

251,706

16,575

11,114

27,689(20)

27,669Finance income

1,852

Finance costs

704

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

146

Profit before tax

28,963(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, 2023 (April 1, 2023 - December 31, 2023)
Reportable Segments

Net sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income

Adjustments(note 1)

(Million yen)Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)

Electronics
Industry

GeneralIndustry

Total

131,419‒

155,256‒

286,675‒‒‒

286,675‒

131,419

155,256

286,675‒

286,675

15,072

15,45430,526(8)

30,518Finance income

577

Finance costs

733

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

108

Profit before tax

30,471(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, 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.
Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)
No bonds were issued or redeemed.
(2) 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, equal monthly
repayments) in the third quarter under review.
Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)
The Group borrowed a total of 12,000 million yen (the final repayment dates are December 8, 2028 and December 22,
2028, in one lump sum repayment) in the third quarter under review.
(Finance Income)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.
Nine months ended December 31, 2023 (April 1, 2023 - December 31, 2023)
Information is omitted because there were no important events.

Disclaimer- This document is an English translation of the Earnings Report for the Nine Months Ended December 31, 2023 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, 2024” on page 3 of this document for the conditions assumed in the performance forecasts
and the precautions concerning the use of performance forecasts.

13