FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Three Months Ended June 30, 2022
Tokyo, Japan, July 29, 2022 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 74,660 million yen and profit attributable to owners of parent of 4,865
million yen, or 43.29 yen per share, for the three months ended June 30, 2022 (April 1, 2022 - June 30,2022).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the three months ended June 30, 2022
rose 29.0% from the level of the year-ago period, to 100,109 million yen, and net sales increased 18.1%,
to 74,660 million yen. Business profit* increased 7.6%, to 6,321 million yen, operating profit was
6,378 million yen, up 9.7% versus the year-ago period, profit before tax was 7,325 million yen, rising30.1%, and profit attributable to owners of parent amounted to 4,865 million yen, up 30.1%.
In the first quarter 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 significant increases in profit before tax and profit attributable to owners of parent reflecta gain on derivatives transactions of 1,090 million yen, which was posted in finance income, from aforeign exchange contract the Company entered into after deciding to underwrite the capital increase.
In the first quarter under review, the global economy was recovering moderately. However,uncertainty increased, reflecting continued disruption in supply chains and sharp rises in prices of raw
materials and energy chiefly due to an increase in geopolitical risk and the resurgence in COVID-19
cases. Production activities in the manufacturing industry in Japan were weak in certain sectors chiefly
due to constraints on the supply of raw materials caused mainly by semiconductor shortages andlockdowns in China, but there remained signs of a recovery in capital investment. Overseas, the U.S.
economy was firm, and there were signs of a recovery in Europe and Asian countries excluding China.
Meanwhile, the Chinese economy slowed due to lockdowns and movement restrictions to block the
spread of COVID-19.
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 andcustomer 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 33,699 million yen, up 15.3%
versus the year-ago period, while net sales rose 16.4%, to 32,465 million yen.
In terms of profits, business profit amounted to 3,427 million yen, an increase of 5.9% year on year,
and operating profit rose to 3,646 million yen, up 12.9% year on year, chiefly due to an increase in net
sales, which more than offset a rise in raw materials costs and other expenses.
In Japan, orders remained flat, reflecting the absence of orders for large one-time projects posted in
the same period of the previous fiscal year. Net sales rose.
1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.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 66,410 million yen, up 37.3%
versus the same period of the previous fiscal year. Net sales increased 19.5%, to 42,194 million yen.
In terms of profits, business profit amounted to 2,892 million yen, an increase of 9.1% year on year,
and operating profit rose to 2,732 million yen, up 5.4% year on year, chiefly due to an increase in net
sales.
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 and net sales of water treatment facilities for general industries both increased. Orders andnet sales of maintenance services for the industry both increased because of the recovery inmaintenance demand. Orders for water treatment facilities for the electric power industry remained
flat. Net sales fell as the posting of sales from large projects had run its course. Orders and net sales ofsoil 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 tool cleaning
services.
Total net sales in the ultrapure water supply business in Japan and overseas increased mainly due tothe contribution of a contract that began in the previous fiscal year.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 482,337 million yen, an increase of 12,356 million yen from the end of the previous
fiscal year
Current assets totaled 177,453 million yen at the end of the first quarter, a decrease of 943 million yen
from the end of the previous fiscal year. This was mainly due to decreases in other current assets andtrade and other receivables of 2,942 million yen and 869 million yen, respectively, offsetting an
increase in inventories of 2,711 million yen.
Non-current assets totaled 304,883 million yen at the end of the first quarter, an increase of 13,298
million yen from the end of the previous fiscal year. Property, plant and equipment increased 6,574
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business (Water
Treatment Facilities business), and goodwill rose 5,902 million yen due to the weakening of the yen
against other currencies.
2) Liabilities: 194,231 million yen, an increase of 2,112 million yen from the end of the previous fiscal
year
Current liabilities totaled 106,150 million yen at the end of the period, a decrease of 7,777 million yen
from the end of the previous fiscal year. This is chiefly attributable to a decrease of 19,613 million yen
in other financial liabilities due to the implementation of the forward contract concluded with the noncontrolling shareholders of US-based Pentagon Technologies Group, Inc. (Water Treatment Facilities
business) and decrease in trade and other payables and income taxes payable of 5,379 million yen and
5,103 million yen, respectively, which were partially offset by an increase of 22,735 million yen inbonds and borrowings chiefly due to the issuance of commercial paper.
Non-current liabilities totaled 88,080 million yen at the end of the period, an increase of 9,889
million yen from the end of the previous fiscal year. This principally reflected an increase in bonds
2and borrowings of 9,947 million yen mainly due to the issuance of the second series of unsecured
bonds (10,000 million yen).
3) Equity: 288,106 million yen, an increase of 10,244 million yen from the end of the previous fiscal
yearThis was attributable chiefly to an increase of 9,732 million yen in other components of equity mainly
due to the posting of exchange differences on translation of foreign operations, reflecting theweakening of the yen against other currencies.
Cash Flows
Consolidated cash and cash equivalents at the end of the first quarter (June 30, 2022) totaled 45,472
million yen, a decrease of 258 million yen from the end of the previous fiscal year (March 31, 2022).
The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the first quarter ended June 30, 2022 totaled 10,941
million yen, an increase of 6,844 million yen from the same period of the previous fiscal year. Thiswas chiefly due to inflows from profit before tax of 7,325 million yen, depreciation and amortizationof 6,839 million yen, and Other of 5,188 million yen, which were partially offset by outflows, including
income taxes paid of 7,297 million yen. The inflow from Other was chiefly due to a decrease in
consumption taxes refund receivable.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 16,554 million yen, an increase of 5,528 million yen fromthe same period of the previous fiscal year. Cash was used mainly for purchases of property, plant andequipment of 16,108 million yen.
3) Cash Flows from Financing Activities
Net cash provided by financing activities totaled 4,760 million yen, an increase of 8,678 million yen
from the previous fiscal year. Inflows chiefly from a net increase in short-term borrowings andcommercial paper of 22,618 million yen and proceeds from the issuance of bonds of 9,955 million yen
were partly offset by the purchase of shares of subsidiaries not resulting in change in scope of
consolidation of 22,051 million yen and dividends paid of 4,072 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 is basically supplied by the Group’s
own funds. Capital investment and other investments in growth fields depend chiefly on the Group’s
own funds, but the Group considers financing through bond markets and bank loans as needed. As ofthe end of the period under review, the Group has concluded commitment line contracts with one
financial institution (no borrowing executed and unexecuted borrowings within the commitment line
was 20,000 million yen).

3

Forecasts for the Fiscal Year Ending March 31, 2023
Of the Company’s forecasts of consolidated results for the first half of the fiscal year ending March 31,
2023 and for the full year stated in the Earnings for the Fiscal Year Ended March 31, 2022, releasedon May 6, 2022, the Company revises the net sales forecasts for the first half of the fiscal year ending
March 31 and net sales forecasts for the fiscal year ending March 31. In doing so, it takes into
consideration an expected rise in net sales at overseas subsidiaries in yen because of the weaker yen,
as well as expected sales from the large water treatment facilities projects for the electronics industry
in Asia for which orders were received in the first quarter, which were not factored into the forecasts,
to be recorded in or after the first six months of the fiscal year under review. The consolidated profit
forecasts are left unchanged because of uncertainty about the effects of sharp rises in raw materials
prices and in distribution costs worldwide.
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.
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.
Revision to the consolidated business forecast for the first half of the fiscal year ending March 31,
2023 (April 1, 2022 - September 30, 2022)
Net sales

Business profit Operating profit Profit before tax

ProfitBasic earnings
attributable toper shareowners of parent

Previous forecast (A)Million yen
153,500

Million yen
17,300Million yen
16,600Million yen
16,600Million yen
11,200Yen
99.66

Revised forecast (B)160,500

17,30016,60016,600

11,20099.66

Change (B-A)

7,000

0

0

0

0

‒

Percentage change (%)

4.6

0.0

0.0

0.0

0.0

‒

(Reference) Previous year
(First half of year ended
March 31, 2022)

135,239

14,883

14,749

11,161

5,705

50.78

Revision to the consolidated business forecast for the fiscal year ending March 31, 2023 (April 1, 2022
- March 31, 2023)
Net sales

Business profit Operating profit Profit before tax

ProfitBasic earnings
attributable toper shareowners of parent

Previous forecast (A)Million yen
325,000

Million yen
38,000Million yen
36,500Million yen
36,500Million yen
25,700Yen
228.69

Revised forecast (B)338,000

38,00036,50036,50025,700228.69Change (B-A)

13,000

0

0

0

0

‒

Percentage change (%)

4.0

0.0

0.0

0.0

0.0

‒

(Reference) Previous year
(Year ended
March 31, 2022)

288,207

32,94435,73430,07918,471

164.384

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

As of June 30, 2022

AssetsCurrent assets
Cash and cash equivalents

45,73045,472

Trade and other receivables

108,892

108,023

Other financial assets

3,075

3,491

Inventories

13,132

15,843

Other current assets

7,564

4,622

Total current assets

178,396

177,453

Property, plant and equipment

161,034

167,608

Right-of-use assets

19,042

19,038Goodwill

62,992

68,894

Intangible assets

18,092

18,714Non-current assets

Investments accounted for using equity method

1,191

1,275

Other financial assets

23,011

23,128Deferred tax assets

6,071

6,057

Other non-current assets

150

166

Total non-current assets

291,585

304,883

469,981482,337

Total assets

5

(Million yen)
As of March 31, 2022

As of June 30, 2022

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

57,96752,588

Bonds and borrowings

8,180

30,915

Lease liabilities

4,683

4,628

Other financial liabilities

19,613‒

Income taxes payable

8,663

3,560

Provisions

1,529

1,146

Other current liabilities

13,28913,310Total current liabilities

113,927

106,150

Bonds and borrowings

30,95340,900

Lease liabilities

14,862

14,900

Other financial liabilities

1,757

2,023

Net defined benefit liability

18,14418,502

Provisions

2,335

2,336

Deferred tax liabilities

2,646

2,484

Other non-current liabilities

7,491

6,930

Total non-current liabilities

78,191

88,080

192,119

194,231

Share capital

13,45013,450Capital surplus(3,076)(134)

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

Other components of equity

12,161

21,893Retained earnings

260,073

260,946

Equity attributable to owners of parent

271,914285,462

Non-current liabilities

Total liabilities
Equity

5,948

2,643

Total equity

Non-controlling interests

277,862

288,106

Total liabilities and equity

469,981482,3376

(2) Condensed quarterly consolidated statement of profit or loss
(Million yen)Three months ended
June 30, 2021
Net sales

Three months ended
June 30, 2022

63,19974,66039,71348,45523,486

26,204

17,613

19,883

Other income

312

514

Other expenses

369

456

Operating profit

Cost of sales
Gross profit
Selling, general and administrative expenses

5,816

6,378

Finance income

197

1,312

Finance costs

449

402

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

66

36

5,630

7,325

1,681

2,153

3,949

5,172

3,740

4,865

Profit before tax
Income tax expense
Profit for the period
Profit attributable to
Owners of parent
Non-controlling interests
Profit for the period

208

306

3,949

5,172

33.29

43.29

‒

‒

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Condensed quarterly consolidated statement of comprehensive income(Million yen)Three months ended
June 30, 2021
Profit for the period

Three months ended
June 30, 2022

3,949

5,172

(1,305)51

453

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

(1,300)104

Exchange differences on translation of foreign operations

440

8,734

Cash flow hedges

(14)

106

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

27

46

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in the fair value of financial assets measured
at fair value through other comprehensive income
Remeasurements of defined benefit plans

452

8,887

Other comprehensive income, net of tax

Total of items that may be reclassified to profit or loss

(848)

8,992

Comprehensive income for the period

3,100

14,165

2,895

12,855

205

1,309

3,100

14,165Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income for the period8(4) Condensed quarterly consolidated statement of changes in equity
Three months ended June 30, 2021 (April 1, 2021 - June 30, 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

‒

‒

‒

470

(14)

(1,305)

Total comprehensive income for the period

13,060

‒

‒

‒

470

(14)

(1,305)Purchase of treasury shares

‒

‒

(0)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

6

‒

‒

‒

‒

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

‒

‒

‒

‒

‒

‒

Other

‒

0

‒

‒

‒

‒

‒

6

(0)

‒

‒

‒

13,450(2,206)(10,788)(3,998)(105)

11,755

Total transactions with owners
Balance as of June 30, 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

‒

‒

3,740

3,740

208

3,949

Other comprehensive income

4

(845)

‒

(845)

(2)

(848)

4

(845)

3,740

2,895

205

3,100

Purchase of treasury shares

‒

‒

‒

(0)

‒

(0)

Dividends‒‒(3,819)(3,819)(6)(3,825)

Share-based payment transactions

‒

‒

‒

6

(2)

4

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

274

274

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

(4)

(4)

4

‒

‒

‒

Total comprehensive income for the period

‒

‒

(0)

0

‒

0

Total transactions with owners

Other

(4)

(4)

(3,814)(3,814)266(3,547)

Balance as of June 30, 2021

‒

7,650

244,063

252,1705,220

257,3919Three months ended June 30, 2022 (April 1, 2022 - June 30, 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

‒

‒

‒

7,778

106

51

Total comprehensive income for the period

8,627

‒

‒

‒

7,778

106

51

Purchase of treasury shares

‒

‒

(0)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

(8)

‒

‒

‒

‒

Changes in ownership interests in subsidiaries‒(19,233)

‒

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

‒

‒

‒

‒

‒

‒

Other

‒

132

‒

‒

‒

‒

‒

2,942

(0)

1,796

‒

‒

13,450(134)(10,694)

13,068146

8,678

Total transactions with owners
Balance as of June 30, 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

‒

‒

4,865

4,865

306

5,172

Other comprehensive income

53

7,989

‒

7,989

1,003

8,992

53

7,989

4,865

12,855

1,309

14,165Purchase of treasury shares

‒

‒

‒

(0)

‒

(0)

Dividends‒‒(4,045)(4,045)‒(4,045)

Share-based payment transactions

‒

‒

‒

(8)

0

(7)

Changes in ownership interests in subsidiaries

‒

1,796

‒

(17,437)(4,614)(22,051)

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

(53)

(53)

53

‒

‒

‒

Total comprehensive income for the period

‒

‒

(0)

132

‒

132

Total transactions with owners

Other

(53)

1,742

(3,992)692(4,614)(3,921)

Balance as of June 30, 2022‒

21,893260,946

285,4622,643

288,10610

(5) Condensed quarterly consolidated statement of cash flows(Million yen)Three months ended
June 30, 2021

Three months ended
June 30, 2022

Cash flows from operating activities
Profit before tax

5,630

7,325

Depreciation and amortization

5,606

6,839

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

(66)

(36)

Loss (gain) on sale of fixed assets

(24)

(17)

Decrease (increase) in inventories(419)(1,921)

Decrease (increase) in trade and other receivables

3,281

3,204

Increase (decrease) in trade and other payables(2,210)(2,518)

(396)

5,188

Other

11,39918,063

Interest received

Subtotal

19

48

Dividends received

367

147

Interest paid

(31)

(20)

Income taxes paid

(7,657)(7,297)

Net cash provided by (used in) operating activities

4,097

10,941

(415)

(376)

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

425

208

Purchase of property, plant and equipment(7,967)(16,108)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)
Other
Net cash provided by (used in) investing activities

91

64

(507)

(319)

(2,611)

‒

(41)

(21)

(11,026)(16,554)

1,259

22,618Cash flows from financing activities
Net increase (decrease) in short-term borrowings andcommercial paper
Proceeds from issuance of bonds

‒

9,955

(132)

(272)

Repayments of lease liabilities(1,253)(1,417)

Dividends paid

(3,847)(4,072)‒(22,051)

Repayments of long-term borrowings

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

54

(0)

Net cash provided by (used in) financing activities(3,918)4,760

Effect of exchange rate changes on cash and cash equivalents

209

594

Net increase (decrease) in cash and cash equivalents(10,638)(258)

Cash and cash equivalents at beginning of period

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

51,59045,47211

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Three months ended June 30, 2022 (April 1, 2022 - June 30, 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, tool cleaning, soil and groundwater remediation services, and provides
maintenance services that encompass operation, maintenance, and management of water treatment facilities.

12(2) Information of reportable segments
Three months ended June 30, 2021 (April 1, 2021 - June 30, 2021)(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)Water
Treatment
Chemicals

Water
Treatment
Facilities

27,90190

35,297
153

63,199
243

‒
(243)

63,199‒27,99135,451

63,443(243)

63,199

3,230

2,591

5,822

(6)

5,816

Total

Finance income

197

Finance costs

449

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

66

Profit before tax

5,630(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

Three months ended June 30, 2022 (April 1, 2022 - June 30, 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)Water
Treatment
Chemicals

Water
Treatment
Facilities

32,46510842,194170

74,660
279

‒
(279)

74,660‒32,57442,36574,939(279)

74,660

3,646

2,732

6,379

(0)

6,378

Total

Finance income

1,312

Finance costs

402

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

36

Profit before tax

7,325(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

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(Bonds)
Three months ended June 30, 2021 (April 1, 2021 - June 30, 2021)
No bonds were issued or redeemed.
Three months ended June 30, 2022 (April 1, 2022 - June 30, 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.
(Finance income)Three months ended June 30, 2021 (April 1, 2021 - June 30, 2021)
Information is omitted because there were no important events.
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)
In the first quarter 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 to underwrite a capitalincrease 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 (22,051 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
4,614 million yen, and the capital surplus increased 2,818 million yen.

Disclaimer- This document is an English translation of the Earnings Report for the Three Months Ended June 30, 2022 as reference information
primarily for overseas investors. If there are any discrepancies between the Japanese version and the English version, the Japaneseversion 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 a commitment 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 thisdocument for the conditions assumed in the performance forecasts and the precautions concerning the use of performance forecasts.

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