October 30, 2020
For Immediate Release
Company Name:
Representative:(Securities Code:Contact:(Tel:Kurita Water Industries Ltd.
Michiya Kadota, President
6370, First section of TSE）
Kosuke Arai, General
Manager of Corporate
Communications and CSR
Department+81-3-6743-4389)

Notice of Absorption-type Merger of Wholly Owned Subsidiary(Simplified Merger and Short-form Merger)
Kurita Water Industries Ltd. (hereinafter the “Company”) announces that its Board of Directors has resolved at a
meeting held today that the Company will absorb Kurita Engineering Co., Ltd. (hereinafter "Kurita Engineering"), awholly owned subsidiary of the Company, with an effective date of April 1, 2021.
As it is an absorption-type merger of a wholly owned subsidiary of the Company, some items and details areomitted from the disclosure below.

1. Purpose of the merger
Kurita Engineering was established in 1959 when the chemical cleaning division was separated from the Company,and has been developing its business focusing on chemical cleaning for large plants in Japan as a leading company
in plant facilities cleaning services. In the social and industrial infrastructure markets such as electric power, ironand steel, petroleum refining, and petrochemicals, which are the main markets for Kurita Engineering and theCompany, there are growing needs to reduce environmental impact and improve productivity, including
decarbonization measures against global climate change.
This merger will enable the Company to flexibly invest its management resources, such as financial and humanresources, into Kurita Engineering’s solid technological and customer base so that the Company can accurately
identify these needs and provide optimal solutions. We aim to expand the scope of our plant facilities cleaning
business and achieve sustainable growth by establishing a system to respond promptly to social demands andcustomer needs in the future social and industrial infrastructure markets.
2. Summary of merger(1) Merger schedule
Date of board resolution regarding the merger

October 30, 2020

Board meeting to approve merger agreement

December 2020 (Scheduled)

Date of merger agreement conclusion

December 2020 (Scheduled)

Date of merger (Effective date)

April 1, 2021 (Scheduled)Note: As the merger is a simplified merger pursuant to Article 796, paragraph 2 of the Companies Act for theCompany and a short-form merger pursuant to Article 784, paragraph 1 of the Companies Act for Kurita
Engineering, in either case, the merger shall occur without obtaining approval at a shareholders
meeting.
(2) Merger method
Kurita Engineering shall be dissolved through an absorption-type merger in which the Company shall be thesurviving company.
(3) Allocations associated with merger
As Kurita Engineering is a wholly owned subsidiary of the Company, there shall be no allocation of shares orother monetary assets through the merger.
(4) Handling of stock acquisition rights and bonds with stock acquisition rights of the absorbed company
Kurita Engineering has not issued any stock acquisition rights or bonds with stock acquisition rights.
3. Overview of parties to the merger (as of September 30, 2020)
Surviving company(1)

Trade name(2)

Address(3)(4)

Absorbed company

Kurita Water Industries Ltd.

Kurita Engineering Co., Ltd.

10-1 Nakano 4-chome, Nakano-ku,

2-22, Kitahama 2-chome, Chuo-ku,

TokyoOsaka-shi, Osaka

Title & name ofMichiya Kadota

Ikuo Ishimaru

representative

President and Representative DirectorPresident and Representative Director

Manufacture and sale of water treatment

Plant cleaning and maintenance;

chemicals and water treatment facilities;

manufacture and sale of cleaning andmaintenance of water treatment

sewage treatment chemicals, facilities, andfacilities; ultrapure water supply; soilequipment; rental of temporary machinery

Business
description

and groundwater remediation(5)

Share capital

13,450 million yen

160 million yen(6)Date ofJuly 13, 1949

June 2, 1959

establishment(7)

Issued shares

116,200,694 shares

320,000 shares(8)

Fiscal year endMarch 31March 31

The Master Trust Bank of Japan, Ltd.

Kurita Water Industries Ltd.: 100%

(Trust Account): 7.61%

(9)

Major

Custody Bank of Japan, Ltd. (TrustshareholdersAccount): 6.80%

andNippon Life Insurance Company: 5.30%

shareholding

State Street Bank and Trust

ratiosCompany 505025: 2.51%
Custody Bank of Japan, Ltd. (TrustAccount 5): 2.00%

MUFG Bank, Ltd.: 1.82%
JP Morgan Chase Bank 385781: 1.61%
Tokio Marine & Nichido Fire InsuranceCo., Ltd.: 1.49%
BNP Paribas Securities Services Paris/Jasdec French Res/Ucits Assets: 1.48%
Custody Bank of Japan, Ltd. (Trust
Account 7): 1.43%

Businessperformance(10)

and financial
condition inmost recent
fiscal year

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2020

(Consolidated) (IFRS)(Non-consolidated) (Japanese GAAP)

Total equity

244,108 million yen

Net assets

4,402 million yen

Total assets

387,749 million yen

Total assets

5,944 million yen

Equity per share

2,158.96 yen

Net assets per share

13,757.19 yen

Net sales

264,807 million yen

Net sales

7,506 million yen

Business profit

26,654 million yen

Operating income

977 million yen

Operating profit

27,479 million yen

Ordinary income

1,014 million yen

18,287 million yen

Net income

Profit attributableto owners of692 million yen

parentBasic earnings
per share

162.86 yen

Net income pershare

2,164.72 yen

Notes: 1. In addition to the above major shareholders, the Company holds 3,584,076 treasury stock.
2. Calculations of shareholding ratios exclude treasury stock.
3. Business profit is an original indicator of the Company’s group that measures regular businessperformance by subtracting cost of sales and selling, general and administrative expenses from net sales.
4. Status after merger
After the merger, there will be no change to the trade name, address, title and name of representative, businessdescription, share capital, or fiscal year end of the Company.
5. Future outlook
As the merger is with a wholly owned subsidiary, the impact on the consolidated business results of theCompany will be minor.