FOR IMMEDIATE RELEASE
Kurita Water Industries Ltd. Reports Earnings for the Three Months Ended June 30, 2023
Tokyo, Japan, August 8, 2023 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 90,544 million yen and profit attributable to owners of parent of 5,695
million yen, or 50.67 yen per share, for the three months ended June 30, 2023 (April 1, 2023 - June 30,2023).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the three months ended June 30, 2023
fell 1.7% from the level of the year-ago period, to 98,413 million yen, and net sales increased 21.3%,
to 90,544 million yen. In terms of profits, business profit* amounted to 7,457 million yen, an increaseof 18.0% year on year, and operating profit rose to 8,131 million yen, up 27.5% year on year. In theabsence 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 8,120 million yen,up 10.9%, and profit attributable to owners of parent amounted to 5,695 million yen, up 17.1%.
During the three months ended June 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 activities in the manufacturing industry seemed tofalter amid a slowdown in semiconductor-related demand; however, the economy showed signs ofrecovery as constraints on the supply of raw materials eased. Capital investment held firm, bolsteredby strong corporate earnings. Overseas, the U.S. economy and Asian economies excluding China
recovered modestly but economic recovery in Europe was sluggish under the impact of rising prices
and monetary policy tightening. In China, the recovery of production activities in the manufacturingindustry floundered, and the economic rebound lost momentum.
* 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 three months ended June 30, 2023, the Group has Electronics Industry andGeneral 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.
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 42,037 million yen, down 3.5% versus
the year-ago period. While orders of recurring contract-based services increased due to the sales
contribution of an ultrapure water supply contract that began in the previous fiscal year, orders of
precision tool cleaning decreased under the impact of lower capacity utilization at customers’ plants
in Japan and the U.S. due to deterioration in semiconductor market conditions, and maintenance orders
also decreased.
Total Group net sales for the Electronics Industry segment rose 39.7%, to 43,205 million yen. While
net sales of precision tool cleaning decreased, net sales of water treatment facilities rose sharply due toprogress with the construction of already ordered large-scale projects and net sales of recurring contract1

based services and maintenance also grew.
In terms of profits, business profit amounted to 4,352 million yen, an increase of 1.5% year on year,
while operating profit climbed 5.6% year on year, to 4,526 million yen, with the sharp increase in net
sales offset by deterioration in the cost of sales ratio due to an increase in facility projects with acomparatively high cost ratio and a decrease in the sales share of the precision tool cleaning business.
General Industry
Total Group orders for the General Industry segment fell 0.3%, to 56,375 million yen. The recordingof orders for large-scale projects in the water treatment facilities business and growth of orders forrecurring contract-based services were offset by decreased orders in the chemicals 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 47,338 million yen, an increaseof 8.2% year on year. Decline in the chemicals business was offset by recognition of revenue from theorder backlog in the water treatment facilities business and maintenance business and growth inrecurring contract-based services, resulting in growth in net sales.
In terms of profits, business profit increased 52.7% year on year, to 3,092 million yen, reflecting
higher sales due to the effects of price increases in addition to cost-cutting efforts. Operating profit
rose 72.2% to 3,596 million yen, partly due to an increase of 368 million yen in foreign exchange gain
which is recorded in other income.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 523,893 million yen, an increase of 22,355 million yen from the end of the previous
fiscal year
Current assets totaled 210,185 million yen at the end of the first quarter, an increase of 13,769 million
yen from the end of the previous fiscal year. This was mainly due to an increase of 9,103 million yen
in trade and other receivables and increases in cash and cash equivalents and inventories of 1,694
million yen and 1,510 million yen, respectively.
Non-current assets totaled 313,708 million yen at the end of the first quarter, an increase of 8,587
million yen from the end of the previous fiscal year. Property, plant and equipment increased 3,256
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business(Electronics Industry), and goodwill rose 5,105 million yen due to the weakening of the yen against
other currencies.
2) Liabilities: 216,263 million yen, an increase of 10,485 million yen from the end of the previous
fiscal year
Current liabilities totaled 121,442 million yen at the end of the period, an increase of 11,974 million
yen from the end of the previous fiscal year. This is chiefly attributable to increases of 9,665 million
yen in bonds and borrowings and 6,049 million yen in trade and other payables respectively, which
offset a decrease of 2,681 million yen in income taxes payable.
Non-current liabilities totaled 94,821 million yen at the end of the period, a decrease of 1,489 million
yen from the end of the previous fiscal year. This was mainly due to a decrease in bonds andborrowings of 970 million yen resulting from the repayment of long-term borrowings.
3) Equity: 307,630 million yen, an increase of 11,871 million yen from the end of the previous fiscal
yearThis was attributable to an increase of 10,449 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 1,287 million yen in retained earnings due to theposting of a profit attributable to owners of parent.

2Cash Flows
Consolidated net cash and cash equivalents at the end of the first quarter totaled 52,162 million yen,
an increase of 1,694 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 first quarter ended June 30, 2023 totaled 4,467
million yen, a decrease of 6,474 million yen from the same period of the previous fiscal year. Inflows
from profit before tax of 8,120 million yen and depreciation, amortization and impairment losses of
7,858 million yen were partly offset by an increase in trade and other receivables of 6,317 million yen
and income taxes paid of 4,688 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 7,987 million yen, a decrease of 8,567 million yen fromthe same period of the previous fiscal year. Cash was used mainly for purchases of property, plant andequipment of 7,228 million yen.
3) Cash Flows from Financing Activities
Net cash provided by financing activities totaled 2,693 million yen, a decrease of 2,067 million yen
from the same period of the previous fiscal year. Outflows chiefly from dividends paid of 4,421 million
yen, repayments of lease liabilities of 1,251 million yen, and repayments of long-term borrowings of
1,135 million yen were offset by inflows chiefly from net increase in short-term borrowings andcommercial paper of 9,479 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 considers that consolidated earnings forecasts for the fiscal year ending March 31, 2024
will be consistent with the forecast for the first half of the fiscal year ending March 31, 2024 and forthe full fiscal year stated in the “Earnings for the Fiscal Year Ended March 31, 2023” released on May
11, 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 June 30, 2023

AssetsCurrent assets
Cash and cash equivalents

50,46852,162

Trade and other receivables

120,299

129,402

Other financial assets

3,357

3,632

Inventories

16,847

18,357

Other current assets

5,444

6,631

Total current assets

196,416

210,185

Property, plant and equipment

178,737

181,993

Right-of-use assets

21,92822,134

Goodwill

60,41365,518Intangible assets

17,104

17,595

Non-current assets

Investments accounted for using equity method

1,283

1,328

Other financial assets

15,433

16,373

Deferred tax assets

9,984

8,539

Other non-current assets

235

224

Total non-current assets

305,121313,708

501,538

523,893

Total assets

4

(Million yen)
As of March 31, 2023

As of June 30, 2023

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

51,46557,514

Bonds and borrowings

28,99838,663

Lease liabilities

4,294

4,496

Income taxes payable

6,018

3,337

Provisions

2,301

1,969

Other current liabilities

16,39015,460Total current liabilities

109,468

121,442

Bonds and borrowings

48,75847,788

Lease liabilities

18,01618,086

Non-current liabilities

Other financial liabilities

1,666

2,150

Net defined benefit liability

17,321

17,705

Provisions

2,613

2,614

Deferred tax liabilities

2,362

1,480

Other non-current liabilities

5,570

4,995

Total non-current liabilities

96,31094,821

205,778

216,263

13,45013,450Total liabilities
EquityShare capital
Capital surplus

(608)

(553)

Treasury shares(10,638)(10,639)

Other components of equity

14,132

24,581Retained earnings

277,639

278,926

293,975

305,766

1,784

1,863

Total equity

295,759

307,630

Total liabilities and equity

501,538

523,893

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)Three months ended
June 30, 2022
Net sales

Three months ended
June 30, 2023

74,66090,54448,45561,253

26,20429,291

19,883

21,834

Other income

514

1,023

Other expenses

456

348

Operating profit

6,378

8,131

Finance income

1,312

228

Finance costs

402

261

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

36

21

7,325

8,120

Income tax expense

2,153

2,356

Profit for the period

5,172

5,763

4,865

5,695

306

67

5,172

5,763

43.29

50.67

‒

‒

Cost of sales
Gross profit
Selling, general and administrative expenses

Profit before tax

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)Three months ended
June 30, 2022
Profit for the period

Three months ended
June 30, 2023

5,172

5,763

Net change in fair value of financial assets measured atfair value through other comprehensive income

51

492

Remeasurements of defined benefit plans

53

(24)

104

467

8,734

9,965

Cash flow hedges

106

18

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

46

23

Total of items that may be reclassified to profit or loss

8,887

10,008

8,992

10,475

14,165

16,23912,855

16,119Other 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

Other comprehensive income, net of tax
Comprehensive income for the period
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income for the period

1,309

119

14,165

16,2397

(3) Condensed quarterly consolidated statement of changes in equity
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

‒

‒

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)

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

Other
Total transactions with owners
Balance as of June 30, 2022

‒

‒

(0)

132

‒

132

(53)

1,742

(3,992)692(4,614)(3,921)‒

21,893260,946

285,4622,643

288,1068

Three months ended June 30, 2023 (April 1, 2023 - June 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

‒

‒

‒

9,937

18

492

Total comprehensive income for the period

‒

‒

‒

9,937

18

492

Purchase of treasury shares

‒

‒

(1)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

55

‒

‒

‒

‒

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

‒

‒

‒

‒

‒

‒

‒

55

(1)

‒

‒

‒

13,450(553)(10,639)

19,616241

4,724

Total transactions with owners
Balance as of June 30, 2023

(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

Profit for the period

‒

‒

5,695

5,695

67

5,763

(24)

10,424‒

10,42451

10,475
16,239Other comprehensive income
Total comprehensive income for the period

295,759(24)

10,424

5,695

16,119119

Purchase of treasury shares

‒

‒

‒

(1)

‒

(1)

Dividends‒‒(4,383)(4,383)(37)(4,421)

Share-based payment transactions

‒

‒

‒

55

(2)

53

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)

‒

‒

‒

‒

‒

‒

‒

‒

‒

Total transactions with owners

Other

24

24

(4,408)(4,328)(40)(4,369)Balance as of June 30, 2023‒

24,581

278,926

305,766

1,863

307,6309

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

Three months ended
June 30, 2023

Cash flows from operating activities
Profit before tax

7,325

8,120

Depreciation, amortization and impairment losses

6,839

7,858

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

(36)

(21)

Loss (gain) on sale of fixed assets

(17)

(26)

Decrease (increase) in inventories(1,921)(642)

Decrease (increase) in trade and other receivables

3,204(6,317)

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

1,974

Other

5,188

(1,899)18,063

9,047

Interest received

Subtotal

48

101

Dividends received

147

105

Interest paid

(20)

(98)

Income taxes paid

(7,297)(4,688)

10,941

4,467

Payments into time deposits(376)(1,645)

Proceeds from withdrawal of time deposits

208

1,492

Purchase of property, plant and equipment(16,108)(7,228)Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Other

64

28

(319)

(459)

(21)

(174)

(16,554)(7,987)

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

22,618

9,479

Proceeds from issuance of bonds

9,955

‒

‒

22

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

Proceeds from long-term borrowings
Repayments of long-term borrowings(272)(1,135)

Repayments of lease liabilities(1,417)(1,251)Dividends paid

(4,072)(4,421)

Purchase of shares of subsidiaries not resulting in change
in scope of consolidation(22,051)

‒

(0)

(1)

4,760

2,693

594

2,520

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

(258)

1,694

Cash and cash equivalents at beginning of period

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

45,472

52,16210Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Three months ended June 30, 2023 (April 1, 2023 - June 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. Thesesegments 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 first three months of the fiscal year under review,which is the first fiscal year of the new Medium-term Management Plan PSV-27, 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 examinationof the characteristics of each market and to expand solutions by combining diverse products and services, from the viewpoint ofproviding value to society and customers.
The segment information for the first three months of the previous fiscal year has also been restated to reflect this change.

11(2) Information of reportable segments
Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)(Million yen)
Reportable Segments
Adjustments(note 1)

Total

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

Electronics
Industry

General Industry

Net sales
Sales to outside customers
Inter-segment sales and transfers

30,923‒43,737‒74,660‒‒‒74,660‒Total

30,92343,73774,660‒74,660

4,287

2,088

6,376

2

6,378

Segment income
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.
Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)(Million yen)
Reportable Segments
Adjustments(note 1)

Total

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

Electronics
Industry

General Industry

Net sales
Sales to outside customers
Inter-segment sales and transfers

43,205‒47,338‒90,544‒‒‒90,544‒

Total

43,20547,33890,544‒90,544

4,526

3,596

8,123

8

8,131

Segment income
Finance income

228

Finance costs

261

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

21

Profit before tax

8,120(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

(Bonds)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.
Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)
No bonds were issued or redeemed.

12(Finance income)Three months ended June 30, 2022 (April 1, 2022 - June 30, 2022)
In the three months ended June 30, 2022, 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 capital increase in
Kurita America Holdings Inc.
Three months ended June 30, 2023 (April 1, 2023 - June 30, 2023)
Information is omitted because there were no important events.

(Significant Subsequent Events)(Acquisition of shares in companies to make them subsidiaries)
At a meeting of the Board of Directors held on April 27, 2023, the Company resolved to acquire all issued shares in European
companies manufacturing and selling water treatment facilities, namely, Arcade Engineering GmbH (“Arcade Germany”), Arcade
Industrie SAS (“Arcade France”), and Arcade Engineering AG (“Arcade Switzerland”) through Kurita Europe GmbH, a consolidated
subsidiary of the Company, and make them subsidiaries. Kurita Europe GmbH concluded a share purchase agreement to acquire theissued shares on May 2, 2023. The Company then acquired the shares on July 3, 2023. As a result of the acquisition of shares in Arcade
Germany and Arcade Switzerland, the Company acquired the shares of Arcade Engineering (Asia) Pte. Ltd. (“Arcade Asia”), a
subsidiary of the two companies.
Initial accounting treatment of the business combination was not completed by the date of approval of the condensed quarterly
consolidated financial statements, and detailed information on the accounting treatment is not disclosed.
(1) Name, address, representative, capital and business of the company whose shares the Company will acquire(i) Acquired company:
Arcade Engineering GmbH
Address:
Representative name:

Meißner Str. 151a, 01445 Radebeul, Germany
Dr. Claudia Kaiser

Amount of share capital: 25,000 euros
Business description:
Design/engineering, construction management, and the provision of consulting services on water
treatment facilities(ii) Acquired company:
Address:

Arcade Industrie SAS
Aire de la Thur - 68840 Pulversheim, France

Representative name:
Ms. Claudine Muller
Amount of share capital: 40,000 euros
Business description:(iii) Acquired company:
Address:

Design/engineering and manufacture of electric equipment for water treatment facilities
Arcade Engineering AG
Hegenheimermattweg 65, 4123 Allschwil, Switzerland

Representative name:
Mr. Felix GrischAmount of share capital: 100,000 Swiss francs
Business description:(iv) Acquired company:
Address:

Design/engineering of, and provision of consulting services on, water treatment facilities
Arcade Engineering (Asia) Pte. Ltd.
280 Woodlands Industrial Park E5 #10-16, Singapore

Representative name:
Mr. Frederic Schindler
Amount of share capital: 100,000 Singapore dollars
Business description:

Design/engineering, construction management, and the provision of consulting services on water
treatment facilities13(2) Purpose of the acquisition of shares
To operate globally in the electronics industry, a key market, the Group will acquire local manufacturing bases and a supply chain
for its water treatment facilities business, targeting the electronics industry in Europe. The Company will build a business foundation
for responding promptly to the growth in demand for water treatment facilities intended for the electronics industry, which partly
reflects the European Chips Act, thus driving business expansion to the electronics industry in Europe. Further, the Company will
combine products, technologies, and business models of the Group, including Kurita Europe GmbH and Kurita (Singapore) Pte. Ltd.,a subsidiary of the Company, with the solution capabilities of Arcade Germany, Arcade France, Arcade Switzerland, and Arcade Asia,
in its efforts to enhance solutions which contribute greatly to saving water, cutting CO 2 emissions, and reducing waste.
(3) Date of share acquisition
July 3, 2023
(4) Number of shares to be acquired, acquisition value and shareholding ratio after acquisition(i) Arcade Engineering GmbH
Number of shares to be acquired:
Acquisition value:

3 shares16,500,000 euros

Shareholding ratio after acquisition: 100%(ii) Arcade Industrie SAS
Number of shares to be acquired:

2,000 shares

Acquisition value:2,500,000 euros
Shareholding ratio after acquisition: 100%(iii) Arcade Engineering AG
Number of shares to be acquired:
Acquisition value:

200 shares
6,000,000 euros

Shareholding ratio after acquisition: 100%(iv) Arcade Engineering (Asia) Pte. Ltd.
Number of shares to be acquired:
100,000 shares
Acquisition value:‒ (The acquisition value is included in the acquisition value in (i) and (iii) above.)
Shareholding ratio after acquisition: 100%(5) Fund procurement method and payment method
The Company’s own funds

Disclaimer- This document is an English translation of the Earnings Report for the Three Months Ended June 30, 2023 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, 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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