FOR IMMEDIATE RELEASE
Kurita Water Industries Ltd. Reports Earnings for the Six Months Ended September 30, 2023
Tokyo, Japan, November 7, 2023 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 188,363 million yen and profit attributable to owners of parent of 12,595
million yen, or 112.05 yen per share, for the six months ended September 30, 2023 (April 1, 2023 September 30, 2023).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the six months ended September 30,
2023 fell 7.0% from the level of the year-ago period, to 186,383 million yen, and net sales increased
17.2%, to 188,363 million yen. In terms of profits, business profit* amounted to 18,061 million yen,
an increase of 8.7% year on year, and operating profit rose to 18,287 million yen, up 11.9% year on
year. In the absence of the gain on derivatives transactions of 1,090 million yen, which was posted as
one-off finance income in the same period of the previous fiscal year, profit before tax was 18,183
million yen, up 3.8%, and profit attributable to owners of parent amounted to 12,595 million yen, up
1.7%.
During the six months ended September 30, 2023, the global economy continued to show a tendency
toward recovery, despite signs of weakness in some regions due to the impact of rising prices andmonetary policy tightening. In Japan, production in certain sectors of the manufacturing industry
showed signs of rising as raw material supply restrictions were being lifted, but the recovery slowed
chiefly due to weak semiconductor-related demand and exports. Capital investment held firm,
bolstered by strong corporate earnings. Overseas, the U.S. economy and Asian economies excluding
China recovered modestly. Meanwhile, European economies saw little growth due to the impact ofrising prices and monetary tightening. The Chinese economy’s rebound was hindered mainly by aprolonged 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 78,790 million yen, down 15.7% versus
the year-ago period. While orders for recurring contract-based services increased with the contributionof an ultrapure water supply contract that began in the previous fiscal year, orders for water treatment
facilities decreased due to the absence of orders for large-scale projects posted in the same period of
the previous fiscal year. Orders for precision tool cleaning decreased, reflecting the impact of lower
capacity utilization at customers’ plants in Japan and the U.S. associated with the deterioration insemiconductor market conditions, while orders for maintenance also declined.
Total Group net sales for the Electronics Industry segment rose 30.0%, to 87,592 million yen. While1

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 9,131 million yen, a decrease of 8.5％ year on year,
and operating profit declined 5.7%, to 9,373 million yen, reflecting a decrease in sales of precision
tool cleaning and a deterioration in the cost of sales ratio due to an increase in facility projects with acomparatively high cost ratio.
General Industry
Total Group orders for the General Industry segment increased 0.6% from the same period of theprevious fiscal year, to 107,593 million yen. The growth in orders for recurring contract-based services
and engineering cleaning was offset by a decline in orders for maintenance, which were strong in thefirst six months of the previous fiscal year, after orders ran their course, and decreased orders in thechemicals business under the impact of lower capacity utilization at customers’ plants, mainly in China.
Total Group net sales for the General Industry segment amounted to 100,770 million yen, an
increase of 8.0% year on year. Decline in the chemicals business was offset by 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 profit, business profit amounted to 8,921 million yen, an increase of 34.6% year on year,
reflecting higher sales and efforts to improve profitability, including a product mix optimization andcost-cutting. Operating profit rose to 8,912 million yen, up 38.9% year on year.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 528,760 million yen, an increase of 27,222 million yen from the end of the previous
fiscal year
Current assets totaled 210,693 million yen at the end of the second quarter, an increase of 14,277
million yen from the end of the previous fiscal year. This was mainly due to an increase of 13,513
million yen in trade and other receivables.
Non-current assets totaled 318,067 million yen at the end of the second quarter, an increase of 12,946
million yen from the end of the previous fiscal year. Property, plant and equipment increased 3,414
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business(Electronics Industry), and goodwill rose 8,950 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, Arcade Engineering AG and Arcade Engineering (Asia) Pte. Ltd., companies manufacturing andselling water treatment facilities in Europe, during the second quarter under review, and also reflects
the weakening of the yen against foreign currencies.
2) Liabilities: 211,154 million yen, an increase of 5,376 million yen from the end of the previous fiscal
year
Current liabilities totaled 116,371 million yen at the end of the period, an increase of 6,903 million yen
from the end of the previous fiscal year. This is chiefly attributable to an increase of 8,098 million yen
in trade and other payables, which offset a decrease of 1,096 million yen in income taxes payable.
Non-current liabilities totaled 94,782 million yen at the end of the period, a decrease of 1,528 million
yen from the end of the previous fiscal year. This was mainly due to a decrease in bonds andborrowings of 921 million yen resulting from the repayment of long-term borrowings.
3) Equity: 317,606 million yen, an increase of 21,847 million yen from the end of the previous fiscal
yearThis was attributable to an increase of 13,375 million yen in other components of equity mainly due
to the posting of exchange differences on translation of foreign operations, reflecting the weakeningof the yen against other currencies, and a rise of 8,187 million yen in retained earnings due to the2posting of a profit attributable to owners of parent.
Cash Flows
Consolidated cash and cash equivalents at the end of the second quarter totaled 49,131 million yen, adecrease of 1,336 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 six months ended September 30, 2023 totaled
21,267 million yen, a decrease of 2,358 million yen from the same period of the previous fiscal year.
Inflows from profit before tax of 18,183 million yen and depreciation, amortization and impairment
losses of 15,966 million yen were partly offset by an increase in trade and other receivables of 8,395
million yen and income taxes paid of 6,390 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 16,589 million yen, a decrease of 14,529 million yen fromthe same period of the previous fiscal year. Cash was used mainly for purchases of property, plant andequipment of 12,331 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 8,729 million yen, an increase of 11,544 million yen fromthe same period of the previous fiscal year. Cash used included dividends paid of 4,518 million yen,
repayments of lease liabilities of 2,544 million yen, and repayments of long-term borrowings of 1,211
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).

3

Forecasts for the Fiscal Year Ending March 31, 2024
The Company will revise the consolidated business forecasts for the fiscal year ending March 31, 2024
stated in the “Earnings Report for the Three Months Ended June 30, 2023,” released on August 8, 2023,
as below.
Net sales are expected to exceed the previous forecast, reflecting an increase in net sales due toprogress in the construction of large-scale water treatment facilities projects for the electronics industry
in Japan and in Asia in the first six months under review, new consolidation, and the weaker yen,which will increase net sales in yen terms.
Business profit is expected to increase in the Electronics Industry segment given an expected
increase in net sales in the segment, as explained above. Meanwhile, net sales in the chemicals businessare set to fall short of the forecast in the General Industry segment, chiefly due to lower capacity
utilization at customers’ plants in China. The Company is therefore leaving the forecast unchanged.
The Company is revising upward operating profit, profit before tax, and profit attributable to ownersof parent, considering other income and expenses and finance income and costs in the first six months
under review.
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 fiscal year ending March 31, 2024
(April 1, 2023 - March 31, 2024)
Net sales

Business profit Operating profit Profit before tax

ProfitBasic earnings
attributable toper shareowners of parent

Previous forecast (A)Million yen
375,000

Million yen
40,000Million yen
39,000Million yen
38,200Million yen
27,000Yen
240.21

Revised forecast (B)380,000

40,00039,70039,20028,000249.06

Change (B-A)

5,000

0

700

1,000

1,000

‒

Percentage change (%)

1.3

0.0

1.8

2.6

3.7

‒

(Reference) Results forthe fiscal year ended
March 31, 2023

344,608

38,58929,05830,151

20,134179.14

4

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

As of September 30, 2023

Cash and cash equivalents

50,46849,131

Trade and other receivables

AssetsCurrent assets
120,299

133,812

Other financial assets

3,357

3,546

Inventories

16,847

18,622Other current assets

5,444

5,580

Total current assets

196,416

210,693

Property, plant and equipment

178,737

182,151

Right-of-use assets

21,92822,573

Goodwill

60,41369,363

Intangible assets

17,104

17,366

Non-current assets

Investments accounted for using equity method

1,283

1,397

Other financial assets

15,433

16,517

Deferred tax assets

9,984

8,472

Other non-current assets

235

226

Total non-current assets

305,121318,067

Total assets

501,538

528,760

5

(Million yen)
As of March 31, 2023

As of September 30, 2023

Trade and other payables

51,46559,563

Bonds and borrowings

28,99828,688

Lease liabilities

4,294

4,534

Income taxes payable

6,018

4,922

Provisions

2,301

1,765

Liabilities and equity
Liabilities
Current liabilities

Other current liabilities

16,39016,897

Total current liabilities

109,468

116,371

Bonds and borrowings

48,75847,837

Lease liabilities

18,01618,304Non-current Liabilities

Other financial liabilities

1,666

2,223

Net defined benefit liability

17,321

17,812

Provisions

2,613

2,676

Deferred tax liabilities

2,362

1,471

Other non-current liabilities

5,570

4,457

Total non-current liabilities

96,31094,782

Total liabilities

205,778

211,154

13,45013,450EquityShare capital
Capital surplus

(608)

(524)

Treasury shares(10,638)(10,562)

Other components of equity

14,13227,507Retained earnings

277,639

285,826

Equity attributable to owners of parent

293,975

315,697

1,784

1,908

Total equity

295,759

317,606

Total liabilities and equity

501,538

528,760

Non-controlling interests6(2) Condensed quarterly consolidated statement of profit or loss and comprehensive income
Condensed quarterly consolidated statement of profit or loss
(Million yen)Six months ended
September 30, 2022
Net sales

Six months ended
September 30, 2023

160,680

188,363

103,734

126,076

56,94662,28640,33444,224

Other income

809

1,308

Other expenses

1,074

1,083

Operating profit

16,346

18,287

Finance income

1,651

356

Finance costs

588

525

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

99

64

17,50918,183

Cost of sales
Gross profit
Selling, general and administrative expenses

Profit before tax
Income tax expense

4,720

5,433

Profit for the period

12,78912,74912,37912,595409

154

12,78912,749110.15112.05‒‒

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)7

Condensed quarterly consolidated statement of comprehensive income(Million yen)Six months ended
September 30, 2022
Profit for the period

Six months ended
September 30, 2023

12,78912,749Net change in fair value of financial assets measured atfair value through other comprehensive income

(17)

437

Remeasurements of defined benefit plans

47

(24)

30

412

12,50012,994

Cash flow hedges

174

(20)

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

46

48

Total of items that may be reclassified to profit or loss

12,722

13,023

Other comprehensive income, net of tax

12,752

13,43525,542

26,185

Owners of parent

24,08725,945

Non-controlling interests

1,454

239

25,542

26,185

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

Total of items that will not be reclassified to profit orloss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations

Comprehensive income for the period
Comprehensive income attributable toComprehensive income for the period8(3) Condensed quarterly consolidated statement of changes in equity
Six months ended September 30, 2022 (April 1, 2022 - September 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
income8,627

13,450(3,076)(10,694)

3,493

40

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

11,502174(17)

Total comprehensive income for the period

‒

‒

‒

11,502174(17)

Purchase of treasury shares

‒

‒

(1)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

17

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

‒

‒

‒

‒

‒

‒
‒

Other

‒

132

‒

‒

‒

Total transactions with owners

‒

2,892

57

1,796

‒

‒

Balance as of September 30, 2022

13,450(184)(10,636)

16,792

214

8,610(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‒‒

12,37912,379409

12,789Other comprehensive income

47

11,708‒

11,7081,044

12,752

Total comprehensive income for the period

47

11,70812,37924,087

1,454

25,542

Purchase of treasury shares

‒

‒

‒

(1)

‒

(1)

Dividends‒‒(4,045)(4,045)(253)(4,299)

Share-based payment transactions

‒

‒

‒

75

0

76

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

(47)

(47)

47

‒

‒

‒

‒

‒

(0)

132

‒

132

Total transactions with owners

Other

(47)

1,748

(3,997)700(4,868)(4,167)

Balance as of September 30, 2022‒

25,617

268,455

296,7022,534

299,2369

Six months ended September 30, 2023 (April 1, 2023 - September 30, 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
income4,231

13,450(608)(10,638)

9,678

222

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

12,957(20)437

Total comprehensive income for the period

‒

‒

‒

12,957(20)437

Purchase of treasury shares

‒

‒

(2)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

84

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

‒

‒

‒

‒

‒

‒
‒

Other

‒

‒

‒

‒

‒

Total transactions with owners

‒

84

75

‒

‒

‒

Balance as of September 30, 2023

13,450(524)(10,562)

22,636

202

4,668(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‒‒

12,595

12,595154

12,749Other comprehensive income(24)

13,349‒13,34985

13,435

Total comprehensive income for the period(24)

13,34912,59525,945239

26,185Purchase of treasury shares

‒

‒

‒

(2)

‒

(2)

Dividends‒‒(4,383)(4,383)(112)(4,496)

Share-based payment transactions

‒

‒

‒

162

(2)

160

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

24

24

(24)

‒

‒

‒

Other

‒

‒

‒

‒

‒

‒

Total transactions with owners

24

24(4,408)(4,223)(115)(4,338)

Balance as of September 30, 2023‒

27,507285,826

315,697

1,908

317,60610

(4) Condensed quarterly consolidated statement of cash flows(Million yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Cash flows from operating activities
Profit before tax

17,50918,183

Depreciation, amortization and impairment losses

14,08815,966

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

(99)

(64)

Loss (gain) on sale of fixed assets

(17)

(34)

Decrease (increase) in inventories(3,235)(582)

Decrease (increase) in trade and other receivables

2,565(8,395)

Increase (decrease) in trade and other payables

(561)

4,609

Other

1,824

(2,214)32,074

27,467

Interest received

Subtotal

96

212

Dividends received

169

120

Interest paid

(8)

(141)

Income taxes paid

(8,706)(6,390)Net cash provided by (used in) operating activities

23,625

21,267

Payments into time deposits(1,553)(3,790)

Proceeds from withdrawal of time deposits

2,244

3,853

Purchase of property, plant and equipment(30,900)(12,331)

Cash flows from investing activities

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

70

31

(663)

(928)

‒

(3,070)

(315)

(352)

(31,118)(16,589)

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

22,244(540)

Proceeds from issuance of bonds

9,955

‒

‒

9

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from long-term borrowings
Repayments of long-term borrowings(348)(1,211)

Repayments of lease liabilities(2,646)(2,544)

Dividends paid

(4,320)(4,518)Purchase of shares of subsidiaries not resulting in change
in scope of consolidation(22,127)

‒

57

75

2,815

(8,729)

1,721

2,715

Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(2,956)(1,336)

Cash and cash equivalents at beginning of period

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

42,774

49,13111

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Six months ended September 30, 2023 (April 1, 2023 - September 30, 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 six months of the previous fiscal year has also been restated to reflect this change.

12(2) Information of reportable segments
Six months ended September 30, 2022 (April 1, 2022 - September 30, 2022)(Million yen)
Reportable Segments

Electronics
Industry

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

General Industry

Total

Adjustments(note 1)

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

67,379‒93,300‒160,680‒‒‒

160,680‒

67,37993,300160,680‒

160,680

9,940

6,414

16,354(8)

16,346

Finance income

1,651

Finance costs

588

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

99

Profit before tax

17,509(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

Six months ended September 30, 2023 (April 1, 2023 - September 30, 2023)(Million yen)
Reportable Segments

Electronics
Industry

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

General Industry

Total

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)87,592‒

100,770‒

188,363‒‒‒

188,363‒

87,592

100,770

188,363‒

188,363

9,373

8,912

18,286

1

18,287

Finance income

356

Finance costs

525

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

64

Profit before tax

18,183(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

13

(Bonds)
Six months ended September 30, 2022 (April 1, 2022 - September 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.
Six months ended September 30, 2023 (April 1, 2023 - September 30, 2023)
No bonds were issued or redeemed.
(Finance Income)Six months ended September 30, 2022 (April 1, 2022 - September 30, 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.
Six months ended September 30, 2023 (April 1, 2023 - September 30, 2023)
Information is omitted because there were no important events.

Disclaimer- This document is an English translation of the Earnings Report for the Six Months Ended September 30, 2023 as reference
information primarily for overseas investors. If there are any discrepancies between the Japanese version and the 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.

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