Kurita Water Industries Ltd.

Results Presentation
for the Fiscal Year Ended March 31, 2024
(Securities code: 6370)

May 10, 2024

Table of Contents

1

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024

p 1- 82

Consolidated Business Forecast
for the Fiscal Year Ending March 31, 2025

p 9-163

Progress of the Medium-Term Management Plan
“Pioneering Shared Value 2027（PSV-27）”

p 17-26

4

Appendixp 27-29

1

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024

Overview of Results
FY 03/2023
Results(Billions of Yen)

FY 03/2024
Results

YoY Change

FY 03/2024 Forecast(Announced in Feb.)

Orders

374.3

390.2

+ 4.2%

375.0

Net Sales

344.6

384.8

+ 11.7%380.0

Business Profit

38.6

42.1

+ 9.0%

40.0

Net of Other Income and Expenses

(9.5)

(0.8)

－

(0.3)

Operating Profit

29.1

41.2

+ 41.9%

39.7

Profit Before Tax

30.2

41.7

+ 38.3%

39.2

Profit Attributable to Owners of Parent

20.1

29.2

+ 45.0%28.0

179.14259.70+ 45.0％249.06

Basic Earnings per Share (yen)Return on Equity (ROE)

7.1％

9.3％

+ 2.2ppーReturn on Invested Capital（ROIC）

8.0％

7.2％

(0.8pp)ーForeign Exchange Rate

USD（Yen）

135.5

144.6

139.7

EUR（Yen）

141.0

156.8

152.5

CNY（Yen）

19.8

20.1

19.7

⚫ The impact of the new consolidation of Arcade Engineering GmbH and its group companies (herein after “Arcade Engineering”) is included in the General Industry segment fromthe second quarter of the fiscal year ended March 2024.
⚫ Operating profit increased year on year due to the impact of recording a 7.6-billion-yen impairment loss on goodwill related to Kurita America, Inc. in the previous fiscal year.

1Results by Segment(Billions of Yen)

FY 03/2023
Results

FY 03/2024
Results

YoY Change

FY03/2024
Forecast(Announced
in Feb.)Orders

374.3

390.2

+ 15.9375.0

Net Sales

344.6

384.8

+ 40.2

380.0

Business Profit

38.6

42.1

+ 3.5

40.0

Business Profit
Margin

11.2%

10.9%

(0.3pp)10.5%

Operating Profit

29.1

41.2

+ 12.2

39.7

Orders

169.9

165.8

(4.1)

159.5

Net Sales

149.3

172.7

+ 23.4

169.0

Business Profit

21.8

19.9

(1.8)

19.4

Business Profit
Margin

14.6％

11.5％

(3.0pp)11.5％

Operating Profit

20.9

20.2

(0.7)

19.4

Orders

204.4

224.3

+ 20.0215.5

Net Sales

195.3

212.1

+ 16.8

211.0

16.9

22.1

+ 5.2

20.6

Business Profit
Margin

8.7％

10.4％

+ 1.8pp

9.8％

Operating Profit

8.2

21.0

+ 12.8

20.3

Total

Electronics
Industry

GeneralIndustry

Business Profit

Electronics Industry⚫ Order declined mainly due to the absence of orders
for large-scale projects posted in the previous fiscal
year, while net sales increased due to an increase infacilities, maintenance and recurring contract-based
services.
⚫ Business profit decreased due to a worsened cost of
sales ratio with lower service business composition
and the increase of SG&A expenses, despite thesales increase.
General Industry⚫ Orders and net sales increased due to the newconsolidation of Arcade Engineering and expandedfacility business in North America.
⚫ Business profit increased, with the effects of higher
sales and an improved cost of sales ratio more thanoffsetting the increase in SG&A expenses.
⚫ Operating profit increased due to the absence of an
impairment loss on goodwill related to Kurita
America, Inc. recorded in the previous fiscal year2Factors in Change in Business Profit (YoY Change)(Billions of Yen)

50.0

Impact ofincreased sales

Worsening in thecost of sales ratio

Increase in
SG&A expenses

+ 7.4

(0.5)

(4.8)

45.0
40.0

+ 1.4

⚫ Sales increased
in bothElectronics
Industry segment
and GeneralIndustry segment

30.0
25.0

15.0

42.1

38.6

35.0

20.0

Impact of foreignexchange rate and newconsolidation

FY 03/2023
Results⚫ In Electronics Industry
segment, the product mix
worsened due to lower
service businesscomposition⚫ In General Industry segment,
cost of sales ratio improved
due to countermeasures tothe soaring raw materials
prices/logistics costs andoptimization of productcomposition⚫ Increase in personnel
expenses and sales
expenses⚫ Increase in R&D
expenses

FY 03/2024
Results

10.0
5.0

YoY change : ＋3.5

0.0
3Electronics Industry Segment
FY 03/2023
Results

FY 03/2024
Results

YoY Change

FY 03/2024
Forecast(Announced
in Feb.)

169.9

165.8

(4.1)

159.5

Facilities

68.6

62.6

(5.9)

58.4

Recurring ContractBased Services

42.3

46.6

+ 4.3

45.2

Services

59.0

56.6

(2.5)

56.0

Chemicals

10.7

10.4

(0.2)

11.0

Precision Tool
Cleaning

27.7

24.9

(2.8)

24.7

Maintenance

20.7

21.2

+ 0.5

20.3

Net Sales

149.3

172.7

+ 23.4169.0

Facilities

50.1

70.3

+ 20.2

69.8

Recurring ContractBased Services

42.1

46.6

+ 4.4

45.0

Services

57.1

55.8

(1.3)

54.2

10.7

10.4

(0.3)

10.8

Precision Tool
Cleaning

27.6

25.0

(2.6)

24.8

Maintenance

18.8

20.3

+ 1.6

18.7

(Billions of Yen)

OrdersChemicals⚫ Orders for facilities declined due to the absence oforders for large-scale projects posted in the previous
fiscal year. Net sales increased due to the sales
progress from ordered projects mainly in Japan and
China.
⚫ Recurring contract-based services increased due toan increase in water supply services.
⚫ Net sales for precision tool cleaning decreased
reflecting the impact of operations in customers’
plants.
⚫ Orders for maintenance were almost at the samelevel as the previous fiscal year, but net sales
increased due to the progress of ordered projects.

Factors in Change(Billions of Yen)

Organic Change+ 20.0

Impact of Foreign Exchange Rate

+ 3.4

4

General Industry Segment
FY 03/2023
Results

FY 03/2024
Results

YoY Change

FY 03/2024
Forecast(Announced
in Feb.)

204.4

224.3

+ 20.0215.5

Facilities

26.4

41.9

+ 15.5

32.6

Recurring ContractBased Services*

7.4

10.4

+ 3.0

10.9

170.6

172.1

+ 1.4

172.0

Chemicals*

119.4

116.6

(2.8)

117.5

Maintenance

43.5

46.6

+ 3.1

45.7

Others

7.6

8.9

+ 1.2

8.8

Net Sales

195.3

212.1

+ 16.8211.0

Facilities

20.0

29.8

+ 9.8

27.7

Recurring ContractBased Services*

6.5

10.2

+ 3.7

10.5

168.8

172.1

+ 3.3

172.8

Chemicals*

119.0

116.6

(2.4)

116.3

Maintenance

41.5

45.8

+ 4.2

46.3

Others

8.3

9.7

+ 1.4

10.2

(Billions of Yen)

OrdersServices*

Services** Due to changes in disclosed segments, the breakdown figures for the fiscal year ended March 31, 2023,
which were provisionally calculated, have been re-calculated as actual figures.

⚫ Orders increased due to the new consolidation ofArcade Engineering, increased orders in North
America related to facility projects for public sector
and electronics industry. Net sales increased mainly
overseas due to the progress of ordered projects.
⚫ Recurring contract-based services increased due tothe growth both in Japan and overseas.
⚫ Orders and net sales for chemicals declined mainly
due to the impact of the operations in customers’
plants in China and the optimization of productcomposition.
⚫ Orders for maintenance increased due to thewinning of engineering cleaning projects. Net sales
increased due to the progress of maintenance andcleaning projects.

Factors in Change(Billions of Yen)

Organic Change+ 4.7

Impact of Foreign Exchange Rate

+ 7.6

Impact of New Consolidation

+ 4.5

5

Net Sales by Region / CSV Business Net Sales
Net Sales by Region - Consolidated

Net Sales by Region - General Industry

FY 03/2023
Results

FY 03/2024
Results

YoY Change

FY 03/2024
Forecast

Japan

178.5

198.4

+ 19.9

195.0

Asia

76.7

85.9

+ 9.3

North & SouthAmerica

59.9

63.6

EMEA

29.5
344.6

(Billions of Yen)

Total

FY 03/2023
Results

FY 03/2024
Results

YoY Change

FY 03/2024
Forecast

Japan

99.7

106.8

+ 7.1

104.6

84.9

Asia

24.6

22.5

(2.1)

23.6

+ 3.6

64.0

North & SouthAmerica

41.5

45.8

+ 4.3

46.7

37.0

+ 7.4

36.2

EMEA

29.5

37.0

+ 7.4

36.2

384.8

+ 40.2

380.0

195.3

212.1

+ 16.8211.0

FY 03/2024
Results% of Net Sales*

FY 03/2024
Forecast

40.2

10.4%

45.0

Electronics Industry

12.1

7.0%

14.0

General Industry

28.1

13.2％

31.0

(Announced
in Feb.)Net Sales by Region - Electronics Industry
FY 03/2024
Results

YoY Change

FY 03/2024
Forecast

Japan

78.8

91.6

+ 12.8

90.4

Asia

52.1

63.4

+ 11.3

61.3

North & SouthAmerica

18.4

17.7

(0.7)

17.3

ー

ー

ー

ー

149.3

172.7

+ 23.4

169.0

EMEA
Total

Total

(Announced
in Feb.)

CSV Business Net Sales

FY 03/2023
Results(Billions of Yen)

(Billions of Yen)

(Announced
in Feb.)(Billions of Yen)

Consolidated(Announced
in Feb.)* Percentage of consolidated or segment net sales
6Capital Expenditures, Depreciation and R&D Expenses（Billions of Yen）

Capital Expenditures(Property, Plant andEquipment*)

FY 03/2023
Results

46.6

FY 03/2024
Results

38.9

YoY Change(7.7)

FY 03/2024
Forecast(Announced
in Feb.)⚫ Capital expenditures declined year-on-year due to a lower
investment in ultrapure water supply business.

40.0⚫ Depreciation increased due to the start of new ultrapure
water supply business projects during the previous fiscal
year.

⚫ R&D expenses increased due to strengthening efforts tocreate innovation.

Depreciation(Property, Plant andEquipment*)

25.8

28.3

+ 2.5

27.3

R&D Expenses

6.3

7.4

+ 1.1

7.6

* Right-of-use assets are included.

7

Financial Condition
End ofMarch 2023

End ofMarch 2024

ChangeCash and Cash Equivalents

50.5

54.0

+ 3.5

Other Current Assets

145.9

174.0

+ 28.1

Total Current Assets

196.4

228.0

+ 31.6

Property, Plant and Equipment

178.7

191.0

+ 12.2

Goodwill

60.4

71.0

+ 10.6

Other Non-Current Assets

66.0

67.4

+ 1.4

Total Non-Current Assets

305.1

329.4

+ 24.3

Total Assets

501.5

557.4

+ 55.9Current Liabilities

109.5

118.6

+ 9.2

Non-Current Liabilities

96.3

105.4

+ 9.1

Total Liabilities

205.8

224.0

+ 18.2Equity Attributable to Owners of
Parent

294.0

331.3

+ 37.3

1.8

2.2

+ 0.4

295.8

333.4

+ 37.7

501.5

557.4

+ 55.9(Billions of Yen)

Non-Controlling Interests
Total Equity

Total Liabilities and Equity⚫ Other current assets increased due to increases intrade and other receivables.
⚫ Property, plant and equipment increased, mainlyreflecting the acquisition of ultrapure water supply
business facilities.
⚫ Goodwill increased due to the acquisition of Arcade
Engineering shares and the impact of foreignexchange rates.

⚫ Total liabilities increased mainly due to an increasein trade and other payables.
⚫ Total equity increased mainly due to the increase inretained earnings and the posting of exchange
differences on translation of foreign operations,reflecting the weakening of the yen against othercurrencies.

82

Consolidated Business Forecast
for the Fiscal Year Ending March 31, 2025

Assumptions for the Business Forecast⚫ We expect the Japanese economy will recover to a solid growth trajectory, driven mainly bydomestic demand.
⚫ Overseas, the European economy remains weak, but inflationary pressures are being eased. We
expect weakness to persist in China's economic recovery due to an ongoing real estate downturn
despite surging semiconductor investments, but project solid growth in other parts of Asia, and acontinued gradual recovery in the United States.
⚫ Demand in the semiconductor market will continue to grow, driven by generative AI applications andpower semiconductors, with economic recovery contributing to a rebound from the second half ofthe year.
⚫ The shortage and extended lead time of materials and components, which reflect changes in the
supply-demand balance, will continue.

9Overview of Business Forecast(Billions of Yen)

FY 03/2024
Results

FY 03/2025
Forecast

YoY Change

Orders

390.2

400.0

+ 2.5%Net Sales

384.8

400.0

+ 3.9%

Business Profit

42.1

47.0

+ 11.8%Net of Other Income and Expenses

(0.8)

(1.0)

－

Operating Profit

41.2

46.0

+ 11.6%

Profit Before Tax

41.7

45.0

+ 7.9%

Profit Attributable to Owners of Parent

29.2

33.0

+ 13.1%259.70293.65+ 13.1％

Basic Earnings per Share (yen)Return on Equity (ROE)

9.3％

9.7％

－

Return on Invested Capital（ROIC）

7.2％

7.9％

－

Foreign
Exchange
Rate

USD（yen）

144.6

142.0

EUR（yen）

156.8

154.0

CNY（yen）

20.1

19.8

⚫ Arcade Engineering GmbH and its group companies were newly consolidated from the second quarter of the fiscal year ended March 2024.

10

Forecast by Segment
FY 03/2024
Results

FY 03/2025
Forecast

YoY Change

Orders

390.2

400.0

+ 9.8

Net Sales

384.8

400.0

+ 15.2Business Profit

42.1

47.0

+ 4.9

Business Profit
Margin

10.9%

11.8%

+ 0.8pp

Operating Profit

41.2

46.0

+ 4.8

Orders

165.8

170.0

+ 4.2

General Industries

Net Sales

172.7

169.0

(3.7)

Business Profit

19.9

21.0

+ 1.1

⚫ Orders and net sales are expected to increase due
to expansion of facilities and CSV business.

Business Profit
Margin

11.5％

12.4％

+ 0.9pp

Operating Profit

20.2

21.0

+ 0.8

Orders

224.3

230.0

+ 5.7

Net Sales

212.1

231.0

+ 18.9Business Profit

22.1

26.0

+ 3.9

Business Profit
Margin

10.4％

11.3％

+ 0.8pp

Operating Profit

21.0

25.0

+ 4.0

(Billions of Yen)

Total

Electronics
Industries

GeneralIndustries

Electronics Industries⚫ Net sales for facilities are expected decline due tothe absence of large-scale projects posted in theprevious fiscal year.
⚫ Business profit is forecast to increase due to an
improving in cost of sales ratio with higher service
business composition.

⚫ Business profit is forecast to increase, with theeffects of higher sales and an improving in cost of
sales ratio.

11Factors in Change in Business Profit (YoY Change)(Billions of Yen)

60.0

Impact ofincreased sales

55.0

Increase in
SG&A expenses

+ 4.6

(6.8)

+ 7.6

50.0
45.0

Improvement in thecost of sales ratio

(0.4)

35.0
30.0

20.0
15.0
10.0
5.0

47.0

42.1

40.0

25.0

Impact of foreignexchange rate andnew consolidation*

FY 03/2024
Results⚫ In Electronics
Industry segment,
net sales decrease
due to the absenceof orders for largescale projects⚫ In General Industry
segment, we expect
the growth infacilities and CSV
businesses⚫ In Electronics Industry
segment, the product mix
improvement due to anincreased composition ofservice businesses⚫ In General Industry
segment, improvement
mainly in chemicals
business due to expansion
of CSV business⚫ Increase in personnel
expenses⚫ Increase expenses related
to digital investment

FY 03/2025
Forecast

YoY change : ＋4.9

0.0
* Only the first quarter business forecast of Arcade Engineering is recognized, as it was newly consolidated from the second quarter of the previous fiscal year.

12Electronics Industry Segment（Billions of Yen）

FY 03/2024
Results

FY 03/2025
Forecast

YoY Change

165.8

170.0

+ 4.2

Facilities

62.6

58.4

(4.3)

Recurring ContractBased Services

46.6

49.4

+ 2.8

Services

56.6

62.2

+ 5.7

10.4

10.9

+ 0.5

OrdersChemicals⚫ Orders for facilities are expected to decline
compared to the previous fiscal year whensemiconductor investment was booming. Net sales
are expected to decline in reaction to large-scale
projects posted in the previous fiscal year.
⚫ Net sales for recurring contract-based services are
expected to increase due to the start of new watersupply business projects.
⚫ Demand for precision tool cleaning is expected toincrease as the semiconductor market recovers.

Precision Tool
Cleaning

24.9

30.1

+ 5.2

Maintenance

21.2

21.3

+ 0.0

Net Sales

172.7

169.0

(3.7)

Facilities

70.3

58.4

(11.9)

Recurring ContractBased Services

46.6

49.4

+ 2.8

Services

55.8

61.2

+ 5.4

10.4

11.0

+ 0.5

Precision Tool
Cleaning

25.0

30.1

+ 5.0

Organic Change(2.1)

Maintenance

20.3

20.2

(0.1)

Impact of Foreign Exchange Rate

(1.6)

Chemicals⚫ Orders and net sales for maintenance are expected
to remain at the same level as the previous fiscal
year.

Factors in Change(Billions of Yen)

13

General Industry Segment（Billions of Yen）

FY 03/2024
Results

FY 03/2025
Forecast

YoY Change⚫ In the facilities business, both orders and net sales
are expected to increase due to the acquisition of
new facility project in North America and progress inconstruction work.

224.3

230.0

+ 5.7

Facilities

41.9

43.0

+ 1.1

Recurring ContractBased Services

10.4

11.4

+ 1.0

Services

172.1

175.6

+ 3.5

Chemicals

116.6

122.3

+ 5.7

Maintenance

46.6

44.7

(1.9)

Others

8.9

8.6

(0.2)

Net Sales

212.1

231.0

+ 18.9

Facilities

29.8

41.5

+ 11.7

Recurring ContractBased Services

10.2

11.9

+ 1.7

Services

172.1

177.6

+ 5.5

Factors in Change

Chemicals

116.6

122.3

+ 5.6

Organic Change

Maintenance

45.8

46.7

+ 0.9

Others

9.7

8.6

(1.0)

Orders⚫ Orders and net sales for recurring contract-based
services are expected to increase due to the
expansion of CSV business.
⚫ Net sales for chemicals are expected to increase
due to the impact of gradual economic recovery as
well as the expansion of CSV business.
⚫ Orders for maintenance are expected to decrease
due to the impact of spot engineering cleaning
projects in the previous fiscal year.

(Billions of Yen)

+ 19.3

Impact of Foreign Exchange Rate

(2.1)

Impact of New Consolidation*+ 1.7* Only the first quarter business forecast of Arcade Engineering is recognized,
as it was newly consolidated from the second quarter of the previous fiscal
year.

14

Net Sales by Region / CSV Business Net Sales
Net Sales by Region - Consolidated

Net Sales by Region - General Industry

FY 03/2024
Results

FY 03/2025
Forecast

Japan

198.4

187.7

(10.6)

Asia

85.9

92.2

North & SouthAmerica

63.6

EMEA

（Billions of Yen）

Total

FY 03/2024
Results

FY 03/2025
Forecast

YoY Change

Japan

106.8

109.1

+ 2.3

+ 6.3

Asia

22.5

23.8

+ 1.2

78.4

+ 14.8

North & SouthAmerica

45.8

56.4

+ 10.6

37.0

41.7

+ 4.7

EMEA

37.0

41.7

+ 4.7

384.8

400.0

+ 15.2

212.1

231.0

+ 18.9YoY Change

Net Sales by Region - Electronics Industry
FY 03/2025
Forecast

Japan

91.6

78.6

(13.0)

Asia

63.4

68.5

+ 5.1

North & SouthAmerica

17.7

21.9

+ 4.2

EMEA
Total

Total

CSV Business Net Sales

FY 03/2024
Results（Billions of Yen）

（Billions of Yen）

YoY Change

ー

ー

ー

172.7

169.0

(3.7)

FY 03/2024
Results

FY 03/2025
Forecast

Consolidated

40.2

48.0

12.0%

+ 7.8

Electronics
Industry

12.1

14.5

8.6%

+ 2.4

GeneralIndustry

28.1

33.5

14.5％

+ 5.4

（Billions of Yen）

% of Net Sales*

YoY Change*Percentage of consolidated or segment net sales

15Capital Expenditures, Depreciation and R&D Expenses
FY 03/2024
Results

FY 03/2025
Forecast

YoY Change

Capital Expenditures(Property, Plant andEquipment*)

38.9

46.4

+ 7.5

⚫ Capital expenditures are expected to increased due to thehigh-level investment for the ultrapure water supply projectacquired in the previous fiscal year, as well as investments to
expand the precision tool cleaning business.

Depreciation(Property, Plant andEquipment*)

28.3

31.5

+ 3.2

⚫ Depreciation are expected to increase due to the start of theultrapure water supply project acquired in the previous fiscal
year.

R&D Expenses

7.4

7.5

+ 0.1

（Billions of Yen）

⚫ R&D expenses remain at the same level as the previous fiscal
year due to the continuously strengthening of initiatives aimed
at creating innovation.

* Right-of-use assets are included.

16

3Progress of the Medium-Term Management Plan
“Pioneering Shared Value 2027（PSV-27）”

Vision for the PSV-27
VisionPioneering “new value for water” to contribute to the realization ofa sustainable society

Medium-termManagement Plan

FY 03/2024
Results

PSV-27

FY 03/2025
Forecast

PSV-27
FY 03/2028
TargetEnhancement ofCorporate Value
Creating shared value

Net sales

Financial
Indicators¥

Business profit
margin on sales

384.8 billion¥

400.0 billion¥

450.0 billion

10.9 ％

11.8 ％

16 ％

ROE

9.3 ％

9.7 ％

12 ％ or more

ROIC

7.2 ％

7.9 ％

10 ％ or more

CSV business-based:

Main NonFinancial
Indicators

Amount of watersavings

111

300

135

million ㎥

733

900

thousand tons

thousand tons

Rate of increase inresource recovery or
minus ％
reduction of resource(compared
to
FY03/2023)
input

65％

300％

(compared to FY03/2023)(compared to FY03/2023)

2* Greenhouse gases

SharedValue
Themesmillion ㎥

million ㎥

Avoided GHG*
emissions

Materiality

*

1,600

thousand tons

* Based on progress, upward revision of +100 thousand tons

Basic
Themes17

Priority Measures for the Electronics Industry

Priority measures

Progress made in FY 03/2024

Future direction⚫ Evolving the water supply
business⚫ Secured two new
projects⚫ Expansion into new customers and local
communities⚫ Expansion of recurring contract-based
services other than water supply⚫ Building new businessfoundations in Europe and North
America⚫ Completed of M&A
activities in Europe⚫ Made progress with new
projects in North America⚫ Rollout of global strategy⚫ Reforming production process
and strengthening the supply
chain⚫ Released digital tools⚫ Began demand
forecasting⚫ Productivity improvements through design
automation⚫ Strengthening the foundations of
the precision tool cleaning
business⚫ Made growth investments⚫ Stable growth through the development of
new businesses

18Evolving the Water Supply Business
Further evolving water supply business models with a value-driven approach
Conventional water supply service

New development by pursuing value
propositions

Evolution⚫ Develop new projects from a customer
value-based approach to both new andexisting customers alike

Water supply services that help reduce
a plant's overall environmental impact
Value provided to customers

Further
evolution⚫ Water recycling designed to optimize thewater balance region-wide, with the aimof conserving groundwater

Keeping down initial costs

Expandedcoverage

Focusing management
resources in core businessesNew
addition

Reducing environmental
impact and cost reductions

Coexistence with local communities

Support

Peripheral recurring contract-based
services⚫ Recurring contact-based services
including resin and membrane recycling

Production process reformand supply chain
strengthening
19

Reforming Production Process and Strengthening the Supply Chain
Expanding handling capacity and driving cost reductions through improved productivity
BeforeProposalInquiry

Planning and design

Orders

Detailed design

Procurement

Shortening the planning and design period

Manufacturing

Construction

ProposalInquiry

Planning and design

OrdersHandoverShortening the manufacturing and construction period

Shortening the detailed design period

After

Trial operation

Detailed design

Shortening the trial operation period
Procurement

Manufacturing

Construction

Trial operation

Handover

Reduction in production
person-hours
Demandforecasting

AutomaticdesignIncreased
efficiency inprocurement

Modularization

30% reduction

Cost reductions

in overall production
lead times

Quality enhancement

by March 31, 2028

Front loading

Streamlining(compared with FY 03/2023)

Expansion of handling
capacity
20

Strengthening the Foundations of the Precision Tool Cleaning Business
Reinforcing foundations through a counteroffensive and business expansionin light of semiconductor market conditions bottoming out
Initiatives Under PSV-27
By FY 03/2024

From FY 03/2025 onward➢

Development of a unified Japan-US management
structure➢ Consideration of new services through IP landscapeutilization, etc.
➢ Capital investment and securing of human resources
for business expansion➢

Size of thesemiconductor market*$588 billion$574 billion(forecast)$520 billion¥27.6 billion(Results)

Expanding operating regions and gaining newcustomers➢ Boosting profitability through enhanced service
offerings➢ Strengthening of governance in response to ongoinginvestment and business expansion

Switching tobusinesses lessaffected by thesilicon cycle¥45.0 billion(Target)■ Gain of new customers■ Expansion of regions where services
are provided¥30.1 billion(Forecast)¥25.0 billion(Results)■ Improved earnings from existing
businesses from new services, etc.

FY 03/2023

FY 03/2024

FY 03/2025

FY 03/2028(Target)* The size of the semiconductor market is taken from World Semiconductor Trade Statistics (WSTS)

21

Priority Measures for General Industry

Priority measures

Progress made in FY 03/2024

Future direction⚫ Expanding the CSV business⚫ Promising results fromexpansion, including thecreation of successful
examples⚫ Customer value-based improvements to
products and services⚫ Creation of new businesses models rooted insocial value⚫ Utilizing digital infrastructure toaccelerate business expansion⚫ Built a shared Groupwide data integration
infrastructure⚫ Data utilization spanning the Group⚫ Improved customer communication⚫ Improved profitability in the US
business⚫ Improved the businessprofit margin⚫ Stabilized businessbase⚫ Further profitability improvements and cost
reductions⚫ Challenging new businesses that
contribute to a circular economy
society⚫ Promoting thecommercialization ofused diaper recycling⚫ Expansion of the used diaper recycling
business⚫ Development of new businesses from theinnovations rooted in social value
22

Expansion of the CSV Business (1)Improving the quality and quantity of customer value and social value-based models
Key Themes of Initiatives

Customer value-based
improvements to products
and services

Creation of new businessmodels rooted in social value

CSV business net sales¥100.0 billion(Target)

New CSVbusiness¥36.0 billion(Reference figure)

FY 03/2023¥48.0 billion¥40.2 billion(Forecast)(Results)

FY 03/2024

FY 03/2025

FY 03/2028(Target)（2%)

Base Year

65%

Further expansion of
CSV business

499 thousand
111 million m3
125 million m3
tons
733 thousand
tons

135 million m3
900 thousand
tons
300 million m3
300%
1,600 thousand
tons

Social value created by the CSV businessDriving growth inGeneral Industry segment

Amount of water savings through CSV business

Avoided GHG* emissions through CSV business* Greenhouse gases

Rate of increase in resource recovery or reduction of resource input through CSV business (compared to FY03/2023)

23

Expansion of the CSV Business (2)Expanding business models with high potential by monitoring value contribution and profitability
Example(1)

Customer value-based improvements to products
and services
Customer Value

Products and services

Managing CSV business implementation

Expanded contribution

Quantitative expansion of CSV businesses⚫ Validate business models submitted for application andcertify them as CSV businesses

Customer needs⚫ Reduced energy
costs

Sustainability
Committee⚫ Improved productivity⚫ Reduced GHG
emissions

Example(2)Paper and pulp
Kurita Dropwise
Condensation
Technology

Products and services

Social issues⚫ Amount of waste fromadult diapers has
increased due to theaging population⚫ Local governments andother entities are steppingup efforts to respond toclimate change

Progression in the Number of CSV Business Models in FY 03/2024

Expanded contribution⚫ Received two orders in theused diaper recycling
business⚫ Concluded cooperationagreements with cities of
Kamakura and Hamamatsu

Used Diaper Separation andTreatment System⚫ Periodically verify value from the perspectives of novelty,
superiority and profitability

Expanded customer baseand new markets

Creation of new businesses models rooted in social value
Social Value

Qualitative enhancement of CSV businesses

Oil refining andpetrochemical

Year end
ExcludedStart ofthe year

53

Certifiedduring the year

78

Further expansion ofcommercialization24

Initiatives to Strengthen Business Foundations
Strategic investment in business assets, people, technologies and systems
Priority investment fields

Investment in GrowthBusinesses⚫ Securing new projects for water supply
services⚫ Expansion of precision tool cleaning sites⚫ Expansion of service businesses and otherefforts that contribute to resource recycling

Development of innovation

Bolstering human capital⚫ Strengthening new business development
functions⚫ Developing and gaining personnel skilledin R&D, IP and digital technologies⚫ Securing and utilizing a diverse range ofhuman resources utilizing HR data
⚫ Enhancing the training of prospective
next-generation management resources⚫ Initiatives to improve engagement by
allowing diversity & inclusion to take root

Digital utilization⚫ Business DX to accelerate business growth(Utilization of AI and IoT, innovation in operational management
technologies, automated design, etc.)⚫ Operational DX to strengthen management foundations(Centralization of management information, etc.)

FY 03/2022

FY 03/2023

FY 03/2024(First year results)

FY 03/2025(Second year plan)

PSV-27
FY 03/2028

Capital expenditures¥66.4 billion¥46.6 billion¥38.9 billion¥46.4 billion

Cumulative ¥300 billion over five years

R&D expenses¥5.4 billion¥6.3 billion¥7.4 billion¥7.5 billion

－

24.8%

23.5%

23.3%

24.0%

Maintain levels from FY 03/2023

SG&A ratio

25Initiatives to Enhance Corporate Value

Expanded equity spread

✕

＝

Solid
shareholder returns

Maximization of
corporate value

Expanded equity spread = profit growth ✕ improved asset efficiency ✕ optimization of the cost of capital
FY 03/2022

FY 03/2023

FY 03/2024

FY 03/2025(Forecast)

PSV-27
FY 03/2028

ROE

7.0%

7.1%

9.3%

9.7%

12% or more

ROIC

7.1%

8.0%

7.2%

7.9%

10% or more

Business profit margin

11.4%

11.2%

10.9%

11.8%

16%

Initiatives to enhance ROIC

Shareholder return:Over the past five years, we maintain our financial rating with a dividend payout ratio in the 30-50% range, and followed a policy of systematically increasing dividends over the long term

FY 03/2022

FY 03/2023

FY 03/2024(planned)

FY 03/2025(Forecast)

Dividends

72 yen78 yen84 yen92 yenDividend payout ratio

43.8%

43.5%

32.3%

31.3%

PSV-27
FY 03/2028

Continue tosystematicallyincrease dividends
over the long term

➢ Calculate ROIC by business and drive
the implementation of priority
measures based on the characteristics
of each business➢ Implement activities to improve the
cash conversion cycle (CCC)➢ Set ROIC improvements as aperformance evaluation metric for
executive officers and corporate
officers

26

4

Appendix

CSV business： Reclaimed Water Supply Services
TargetSocial issues

Solution, competitiveness, social valueMarket size

Region(estimated)Japan, China(Additionallytargeting South
Korea, Taiwan andNorth America)

Lack of water resources essential forthe manufacturing industry due to theimpact of climate change, population
growth, progress in industrialization,etc.

Solution

Industry

CompetitivenessContributions to the SDGs

Chemicals,Electronics,
Automobile, Steel

Supplementary information

Social value（Kurita group’smateriality themes
and metrics）

Contributing to customers’ water- saving by collecting a various types ofwastewater to reclaim and supplying water (recycled water) that has been
purified to a level that can be reused in manufacturing processes, etc.
- IP rights protection through multiple patents- Achieving stable operation even under high operating conditions- Providing recycled water in the amount and quality that meets customer
needs- Solve issues related to water
resources

48 billion yen
per year- Amount of water savings

Solution outline

Customer’s voice: Click here
Facility（Customized Optimal
Readymade Reclamation
System）- Kurita asset -Innovative water recovery
technology: Customized
Optimal Readymade
Reclamation System

27

CSV business：Kurita Dropwise Condensation Technology
TargetSocial issues

Solution, competitiveness, social valueMarket size

Region(estimated)

Global

1. Global warming due to GHG
emissions
2. Promoting the expansion of theintroduction of environmentallyfriendly technologies

Solution

CompetitivenessContributing to energy-saving and productivity improvement, by inducing waterrepellent properties in the surface of the heat exchanger using steam to boost
heat transfer efficiency- IP rights protection through multiple patents- Easily applicable to a wide range of heat exchanger use points- Analysis know-how to quantify customer value

30 billion yen
per yearIndustry

Contributions to the SDGs

All manufacturingindustries that uses
steam

Supplementary information

Social value（Kurita group’smateriality themes
and metrics）- Realization of a decarbonized society - Avoided GHG emissions

Solution outline

PR Movie：Click here
Supplemental information：- 2019:Won Agency of Natural Resources andEnergy Director-General's Award in the2019 Energy Conservation Grand- 2022:Invention Encouragement Award
presented by the Invention Association of
the Kanto Region- 2023:
Won the Sasaki Award from the Japan
Technical Association of the Pulp andPaper Industry

No water repellency

Water repellency

28

CSV business：Used Diaper Separation and Treatment System
TargetSocial issues

Solution, competitiveness, social valueMarket size

Region(estimated)

Japan

Super-aged society causing;
1. Increase in volume of useddiaper wastes
2. Increase in energy consumption
and CO2 emission due toincineration of used diapers

Solution

CompetitivenessIndustry

Contributions to the SDGs

Local
municipalities,
waste disposal
company

Social value（Kurita group’smateriality themes
and metrics）

Supplementary information

Recycle disposable diapers, which were previously incinerated, by sterilizing,
washing, disassembling and separating them into plastics and pulp

- IP rights protection through multiple patents- Securing safety and operational efficiency, and reducing
environmental impact- Recycling wastes in diverse ways according to their intended use

60 billion yen
per year（CY2030）- Avoided GHG emissions- Realization of a decarbonized society- Rate of increase in resource recovery- Building a circular economy societyor reduction of resource input
System flow

Supplemental information：- 2021 & 2022 Support for High-efficiency Installations for Facilities with Targets ofMinistry of the Environment in Japan- Selected as a project for the “Demonstration Project for a Plastic Resource
Circulation System toward a Decarbonized Society" Program of the Environment
in Japan29

Forward-looking Statements
This presentation contains forward-looking statements, business plan projections, and judgments based on information
available to management at the time of writing. Due to the existence of a variety of risk factors and uncertainties, actual
results may differ from those specified or implied by these forward-looking statements and projections.
The trademarks (products, services, logos) contained in this presentation belong to the Company or right holders
that allow the Company to use the trademarks.