April 27, 2023
For Immediate Release
Company Name Kurita Water Industries Ltd.
Representative
Hirohiko Ejiri, President(Securities code: 6370, Tokyo Stock Exchange Prime Market)
ContactShinichi Masuda
General Manager of Corporate
Accounting Department（TEL+81-3-6743-5054 )Notice of Posting of an Impairment Loss and a Revision of Business Forecast
Kurita Water Industries Ltd. (hereinafter "Kurita") announces that a meeting of the Board of Directors held today
resolved to revise the business forecast for the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
announced on October 31, 2022. Details are as follows.
1. Posting of an impairment loss
Kurita will post a goodwill impairment loss of 7.6 billion yen in the fiscal year ended March 31, 2023, related to theWater Treatment Chemicals business of Kurita America, Inc., a consolidated subsidiary that operates the Water Treatment
Chemicals business and the Water Treatment Facilities business in the United States. Kurita performs an impairment test
each year and every time that there are any signs of an impairment and calculated the goodwill impairment loss at Kurita
America, Inc. (Water Treatment Chemicals business) by comparing the use value and accounting book value. The usevalue is calculated by discounting the expected future cash flows using an appropriate discount rate. In the United States,
the discount rate used in the calculation of the use value rose to 10.8% in the fiscal year under review (9.5% a year earlier),
due to policy interest rate hikes to curb inflation. Kurita estimated future cash flows of Kurita America carefully andrevised them downward, considering changes in the water treatment chemicals market in the United States following theoutbreak of COVID-19 and results in the fiscal year under review, which were affected by disruptions to logistics andrising prices, as well as results in previous fiscal years. As a result, the use value was less than the accounting book value,
and Kurita recognizes an impairment loss.
2. Revision of the business forecast and its reason(1) Revision of the consolidated business forecast for the fiscal year ended March 31, 2023
(April 1, 2022 – March 31, 2023)
Profit
BeforeTaxProfitAttributableto Ownersof Parent(Million yen)
BasicEarnings
per Share( yen )Net SalesBusinessProfit

Operating
ProfitPrevious forecasts (A)350,000

39,00038,00039,00027,600245.56

Revised forecasts (B)344,600

38,50029,00030,10020,100178.83

Change (B-A)△5,400△500△9,000△8,900△7,500－Percent change (%)

△1.5

△1.3

△23.7

△22.8

△27.2

－

For reference:
Fiscal year ended
March 31, 2022

288,207

32,94435,73430,07918,471

164.38

Note) Business profit is the Group’s own indicator that measures constant business performance. It is net sales lesscost 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.
(2) Reason of the revision
In the fiscal year ended March 31, 2023, net sales are expected to fall short of the forecast, particularly in thedomestic and overseas precision tool cleaning business. Along with this reason, business profit will be below the forecast.
Operating profit and other profit figures below it will also be less than the forecasts, mainly reflecting the goodwill
impairment loss described in "1. Posting of an impairment loss."
The dividend forecast remains unchanged.
Note) These forecasts are based on our company's judgment based on currently available information and may differ
from actual results due to changes in various factors.