FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Nine Months Ended December
31, 2018
Tokyo, Japan, February 8, 2019—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 193,723 million yen and profit attributable to owners ofparent of 12,938 million yen, or 115.23 yen per share, for the nine months ended
December 31, 2018 (April 1, 2018 – December 31, 2018).
Results of Operations
Total consolidated orders for the Kurita Group (Kurita Water Industries Ltd. and its
consolidated subsidiaries and equity method affiliates) in the nine months ended
December 31, 2018 rose 6.7% from the level of the year-ago period, to 200,601 million
yen, and net sales increased 18.5%, to 193,723 million yen. Operating income was17,252 million yen, up 16.1% versus the same the year-ago period, and ordinary income
was 17,582 million yen, up 19.4%. Profit attributable to owners of parent amounted to12,938 million yen, down 4.5%.
Looking at the market environment surrounding the Kurita Group, in Japan,
production in the manufacturing industry remained firm, despite the temporary impactof natural disasters, and capital expenditure also continued to be solid on the back ofrobust corporate earnings. Overseas, although the Chinese economy showed signs ofdeceleration as the global economic outlook became increasingly uncertain, mainly due
to trade friction between the United States and China, the U.S. economy remained firm,and economies in Europe and emerging countries in Asia excluding China also
recovered moderately.
In this environment, the Group sought to develop and market competitive products
and services using IT and sensing technologies. It also proposed solutions to customers’
challenges including the reduction of environmental footprints, energy saving andimprovements in productivity.
The Group has expanded the scope of application of the percentage-of-completion
method mainly in the Water Treatment Facilities business. As a consequence, net sales
increased 10,104 million yen, and operating income and ordinary income rose 2,121
million yen, respectively. In addition, the Group recorded a 8,381 million yen gain on
sales of shareholdings of other listed companies (gain of sales of investment securities)
in extraordinary income, while 4,920 million yen, the sum of a 2,838 million yen loss
associated with the transfer of the aluminum compound business of Kurita EuropeGmbH and a 1,106 million yen impairment loss on goodwill of Kurita Water Industries(Jiangyin) Co., Ltd., was recorded in extraordinary losses. The recording of theimpairment loss on goodwill of Kurita Water Industries (Jiangyin) Co., Ltd. was basedon the Group’s decision to transfer the production function of water treatment chemicalsof this company to a plant of the new Kurita Water Industries (Taixing) Co., Ltd. (dueto begin operating in the second half of fiscal year ending March 31, 2021) to eliminate
production constraints associated with tightened regulations on companies that
manufacture hazardous chemicals in densely populated areas in China.

1

Segment Overview
The Group consists of two reportable segments in its segment information: Water
Treatment Chemicals and Water Treatment Facilities
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 77,802 million
yen, up 17.0% versus the same period of the fiscal year ended March 31, 2018, whilesales rose 16.5%, to 77,437 million yen.
Operating income climbed 22.3%, to 6,854 million yen mainly due to the increase inoverseas sales.
In Japan, orders and sales increased despite the absence of the posting of spot projectsof equipment and services that was made in the year-ago period, while sales and orders
in cooling water treatment chemicals and process treatment chemicals for iron and steel
increased thanks to segment efforts to develop new customers by proposing problem
solutions using new products and services.
Overseas, both orders and sales rose, reflecting an increase in the consolidation
period for operating results of Hansu Co., Ltd. in South Korea, which became aconsolidated subsidiary in the fourth quarter of the previous fiscal year, by nine months,
in addition to an increase in demand for water treatment, particularly in Asia.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 122,798 million
yen, up 1.1% versus the same period of the previous fiscal year. Partly thanks to the
expansion of the scope of application of the percentage-of-completion method, salesrose 19.9%, to 116,285 million yen.
Operating income climbed 12.4%, to 10,407 million yen as higher sales offset theeffect of the deteriorated cost of sales ratio due to the occurrence of unprofitableprojects.
In Japan, orders for water treatment facilities increased significantly in the electronics
industry due to orders received for large-scale projects, and sales also rose thanks toprogress in construction work for large-scale projects. Orders and sales in maintenanceservices rose, thanks to increase of orders for expansion and remodeling projects against
a backdrop of a rise in capacity utilization at customers’ plants.
In general industries, orders and sales of water treatment facilities decreased, butorders and sales of maintenance services remained stable mainly for remodeling andexpansion projects at customers’ plants for the purpose of expanding production
capacity. Meanwhile, orders for water treatment facilities for electric power and soil
remediation increased due to orders received for large-scale projects, and sales also
increased significantly thanks to progress in construction work for large-scale projects
the orders for which were received in the previous fiscal year.
Overseas, while orders for water treatment facilities declined in reaction to orders for
multiple large-scale projects in the previous fiscal year, sales increased due to progressin construction work for large-scale projects for the electronics industry in China andSouth Korea. Sales in the ultrapure water supply business in Japan and overseas
increased due to the posting of sales from expansion projects.

2

Financial Condition
1) Total assets: 336,471 million yen (increased 13,425 million yen from the end of theprevious fiscal year)
Current assets totaled 175,356 million yen at the end of the third quarter (December 31,2018), an increase of 14,947 million yen from the end of the previous fiscal year (March
31, 2018). This was mainly a result of an increase of 12,322 million yen in funds in
hand, or cash and deposits and marketable securities, due to proceeds from sales ofshareholdings of other listed companies and the receipt of long-term advances received,
as well as an increase of 1,824 million yen in trade accounts receivable due to higher
sales, despite a decrease of 1,419 million yen in work in progress due to the absence ofposting of the relevant projects chiefly associated with the expansion of the scope of
application of the percentage-of-completion method.
Non-current assets totaled 161,115 million yen at the end of the nine-month period(December 31, 2018), a decrease of 1,522 million yen from the end of the previous
fiscal year. This decrease mainly reflected a 15,657 million yen decline in investment
securities due to sales of shareholdings of other listed companies, although property,
plant and equipment increased 12,360 million yen with capital expenditure in theultrapure water supply business (Water Treatment Facilities business), which
outweighed the depreciation of existing facilities.
2) Liabilities: 101,695 million yen (increased 19,502 million yen from the end of theprevious fiscal year)
Current liabilities totaled 58,466 million yen at the end of the period, an increase of
2,317 million yen from the end of the previous fiscal year. The increase mainly reflecteda rise of 8,759 million yen in Other due to increases in accounts payable and advances
received, while trade accounts payable and income taxes payable decreased 4,627
million yen and 1,428 million yen, respectively.
Non-current liabilities totaled 43,229 million yen at the end of the period, an increase of
17,185 million yen from the end of the previous fiscal year. This increase mainly reflected arise of 16,903 million yen in Other due to the receipt of long-term advances received.
3) Net assets: 234,775 million yen (decreased 6,078 million yen from the end of theprevious fiscal year)
Net assets totaled 234,775 million yen at the end of the period, a decrease of 6,078
million yen from the end of the previous fiscal year. This decrease was mainly due to afall of 12,359 million yen in accumulated other comprehensive income, while
shareholders’ equity rose 6,485 million yen. The major factor for the increase inshareholders’ equity was a rise of 6,767 million yen in retained earnings due to theposting of profit attributable to owners of parent, which outweighed the posting of
year-end dividends and interim dividends. Meanwhile, the major factors for thedecrease in accumulated other comprehensive income were a 8,249 million yen decline
in unrealized gains on available-for-sale securities, the result of a decrease in unrealized
gains on investment securities held associated with sales of shareholdings of other listedcompanies, and a 4,482 million yen fall in foreign currency translation adjustments
associated with the appreciation of the yen against foreign currencies.
Outlook for the Fiscal Year Ending March 31, 2019
The Group’s current outlook for the year ending March 31, 2019 is consistent with theearnings forecast disclosed in “Earnings Report for the Six Months Ended September 30,
2018,” which was announced on November 9, 2018.
3

Financial Statements — Consolidated
Balance Sheet — Consolidated(Million yen)

AssetsCurrent assets
Cash and deposits
Notes receivable – trade
Accounts receivable – tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31, 2018
Amount

As ofDecember 31, 2018
Amount61,086
7,870
78,994
3
3,968
3,621
2,800
2,528
(464)
160,409

72,0058,750
80,818
1,406
4,133
2,202
2,765
3,776
(503)
175,356

11,132
42,84332,051
86,02812,89042,76542,732
98,38820,362
10,641
31,003

19,2409,465
28,70635,683
10,099(176)
45,605
162,637
323,046

20,02614,143(149)
34,020161,115
336,471

4

(Million yen)

As ofMarch 31, 2018
Amount

As ofDecember 31, 2018
AmountLiabilities
Current liabilities
Notes payable – trade
Accounts payable – trade
Income taxes payable
Provision
Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
Provision
Other
Total non-current liabilities
Total liabilities

2,073
26,801
4,806
3,436
19,03156,1492,571
22,174
3,378
2,551
27,79058,466

16,610191
9,242
26,04482,193

16,907
175
26,14543,229101,695

13,45010,959209,149(10,943)
222,615

13,450
10,665215,916(10,932)
229,100

16,558

8,309

(1)
(380)
6
3
16,1872,049
240,853
323,046213(200)(4,476)
(18)
3,828
1,847
234,775
336,471

Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5Statements of Income and Comprehensive Income — Consolidated
Statement of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Loss on valuation of investments in capital
Acquisition expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on liquidation of business
Loss on transfer of businessTotal extraordinary losses
Income before income taxes
Income taxes
Net income
Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Nine months ended
December 31, 2017
Amount163,511
109,381
54,13039,275
14,854

Nine months ended
December 31, 2018
Amount
193,723
133,050
60,672
43,41917,252

139
537
–

124
551
93

140

112

419
1,236

728
1,611

303
105
–
530
426
1,364
14,726

245
–
251
392
393
1,282
17,582

1,572
2,443
4,015

8,381
–
8,381

–
–
–
–
–
18,742
5,121
13,621
76
13,545

535
1,106
440
*2
2,838
4,920
21,0438,129
12,913(24)
12,938*1

6

Statement of Comprehensive Income(Million yen)

Net income
Other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

Nine months ended
December 31, 2017
Amount13,621

Nine months ended
December 31, 2018
Amount12,913

2,568(8,246)(1,085)
1,599
(12)

214
(2,001)
(24)

75

(152)

3,145
16,766(10,210)
2,702

16,690

2,803

76

(100)

7

Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Nine months ended December 31, 2018 (April 1, 2018 – December 31, 2018)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Nine months ended December 31, 2018 (April 1, 2018 – December 31, 2018)
Not applicable(Changes in the scope of consolidation or the scope of application of the equity method)(Changes in the scope of consolidation)
From the first quarter of the current fiscal year, Fracta, Inc. and Fracta (a wholly-owned subsidiary of
Fracta, Inc.) are included in the scope of consolidation associated with the acquisition of shares ofFracta, Inc.
From the third quarter of the current fiscal year, the newly established Kurita Water Industries (Taixing)
Co., Ltd. is included in the scope of consolidation.
(Changes in matters related to the fiscal year of consolidated subsidiaries)
In the past, for all overseas consolidated subsidiaries whose closing date was December 31, the financial
statements as of December 31 had been used and necessary adjustments had been made forconsolidation for important transactions that had occurred during the period between their closing date
and the consolidated closing date. However, the Group has changed the closing date of all overseas
consolidated subsidiaries but Kurita Water Industries (Dalian) Co., Ltd., Kurita Water Industries(Jiangyin) Co., Ltd., Kurita Water Industries (Suzhou) Ltd., Kuritec (Shanghai) Co., Ltd. and Kurita do
Brasil Ltda. to March 31. For the five companies above, the Group has changed their account settlement
method to one in which a provisional closing equivalent to the full-year account settlement is made on
the consolidated closing date. In association with this change, the Group has made an adjustment for
profits and losses for three months from January 1, 2018 to March 31, 2018 using retained earnings andconsolidated them in the first nine-month period under review.
(Changes in accounting policies)(Changes to accounting policies that are difficult differentiating from changes to accounting estimates)(Changes to the depreciation method of property, plant and equipment)
In the past, the Company adopted the declining-balance method for the deprecation of buildings(excluding facilities attached to buildings) acquired on or after April 1, 1998, facilities attached tobuildings and structures acquired on or after April 1, 2016 and property, plant and equipment(excluding leased assets) except for facilities of ultrapure water supply business which the Company
had installed at customer sites. However, the Company has changed the depreciation method for themto the straight-line method from the first quarter of the current fiscal year.
The Company has made this change because the pattern of consumption of the economic benefits ofproperty, plant and equipment has changed as the expansion of the global business and a transition tothe optimum production system have become clear. Given that actual production on a consolidated
basis generally stays at a certain level and that the operation of facilities is also stable, the Company
has determined that the straight-line method is more suitable for the consumption pattern of theeconomic benefits of property, plant and equipment.
The impact of this change on profits and losses in the first nine-month period under review is minor.

8

(Application of Accounting Unique to the Creation of Quarterly Consolidated Financial Statements)
Calculation of tax expense
The Company reasonably estimates an effective tax rate after the application of tax effect accounting fornet income before income taxes for the consolidated fiscal year and multiplies the net income before
income taxes by the estimated effective tax rate.
(Additional Information)(Adoption of the “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
The Company has adopted the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28 on February 16, 2018), among others, from the beginning of the first quarter ofthe current fiscal year. As a result, deferred tax assets are presented in investments and other assets, anddeferred tax liabilities are presented in non-current liabilities.
(Expansion the scope of application of the percentage-of-completion method)
In the past, the Company applied the percentage-of-completion method to construction work forprogress of which the certainty of outcome can be recognized and applied the completed-contract
method to other construction work. However, the Company has applied the percentage-of-completion
method to other construction work from the first quarter of the current fiscal year because a reliable
estimate has become possible for most of them due to the development and strengthening of the costmanagement system.
As a result, net sales have increased 10,104 million yen, and operating income, ordinary income andincome before income taxes have increased 2,121 million yen, respectively.
(Statement of income)*1. Impairment loss
Nine months ended December 31, 2018 (April 1, 2018 – December 31, 2018)
1) Overview of assets or asset groups for which an impairment loss was recognized
During the nine-month period under review, an impairment loss was posted for the following asset
group.
Use

Type

Place

–

Goodwill

Jiangyin, China

Amount of impairment loss
posted1,106 million yen

2) Background of recognition of an impairment loss
During the nine-month period under review, the Group recognized an impairment loss because therecoverability of investment amount became unrecognizable, given that the Group decided to transfer
the production function of water treatment chemicals of Kurita Water Industries (Jiangyin) Co., Ltd.
to a plant of the newly established Kurita Water Industries (Taixing) Co., Ltd. (due to begin operatingin the second half of fiscal year ending March 31, 2021) to eliminate production constraints associatedwith tightened regulations on companies that manufacture hazardous chemicals in densely populatedareas in China.
3) Amount of the impairment loss
The book value of the asset group for which the impairment loss was recognized was reduced to its
recoverable value, and the reduction amount was posted in extraordinary losses as an impairment lossof 1,106 million yen.
4) Method of grouping assets
The Group conducts the grouping of business assets based on the type of business and the grouping ofleased assets and idle assets by individual property.

95) Calculation method of the recoverable value
For the goodwill for which the impairment loss was recognized during the nine-month period underreview, the Group recorded the entire amount of the unamortized balance as an extraordinary loss
because the recoverability was not recognized, given that the Group decided to transfer the production
function of water treatment chemicals of Kurita Water Industries (Jiangyin) Co., Ltd. to a plant of the
newly established Kurita Water Industries (Taixing) Co., Ltd.
*2. Loss on transfer of business
Nine months ended December 31, 2018 (April 1, 2018 – December 31, 2018)
A loss on transfer of business of 2,838 million yen comprises mainly of a loss on transfer pertaining to thesale of the aluminum compound business of Kurita Europe GmbH, its non-core business, andcompensation money for the business continuation.
(Segment Information)
I. Nine months ended December 31, 2017 (April 1, 2017 – December 31, 2017)
1. Sales and income by reportable segment(Million yen)

Reportable Segments

Amounts
reported on
Adjustments the quarterly
statements of(note 1)income(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

Sales
Sales to outside customers
Inter-segment sales or transfers

66,498301

97,013
192

163,511
493

–
(493)

163,511–

Total

66,79997,205

164,005(493)

163,511

5,602

9,260

14,863(8)

14,854

Segment income

Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income adjustments.
2. Segment income is shown at the operating income level.

2. Information on the impairment loss or goodwill of non-current assets by reportable segment(Significant impairment loss of non-current assets)
Not applicable(Significant changes in the amount of goodwill)In the Water Treatment Chemicals business, the Company acquired shares of Hansu Co., Ltd., which
had been an equity-method affiliate, and made it a consolidated subsidiary. The amount of increase ingoodwill associated with this transaction was 5,155 million yen in the nine-month period under review.
(Significant gain on bargain purchase)
Not applicable10II Nine months ended December 31, 2018 (April 1, 2018 – December 31, 2018)
1. Sales and income by reportable segment(Million yen)

Reportable Segment
Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

77,437605
78,043
6,854

116,285
1,145
117,430
10,407

193,723
1,750
195,473
17,262

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

Amounts
reported on
Adjustments the quarterly
statements of(note 1)income(note 2)–
(1,750)(1,750)(9)

193,723–
193,723
17,252

Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income adjustments.
2. Segment income is shown at the operating income level.

2. Matters related to changes in reportable segments(Changes in the depreciation method of property, plant and equipment)
As stated in changes in accounting policies, the Company has changed the depreciation method forcertain property, plant and equipment from the declining-balance method to the straight-line method fromthe first quarter of the current fiscal year. Associated with this, the Company has also changed thedepreciation method for property, plant and equipment in the relevant reportable segments from thedeclining-balance method to the straight-line method.
The impact of this change on segment income in the Water Treatment Chemicals business and the Water
Treatment Facilities business in the nine months under review is minor.
(Expansion of the scope of application of the percentage-of-completion method)
As stated in additional information, the Company has expanded the scope of application of thepercentage-of-completion method from the first quarter of the current fiscal year.
As a result, net sales in the Water Treatment Facilities business has increased 10,104 million yen in thenine months under review, and the segment income has risen 2,121 million yen.
3. Information on the impairment loss or goodwill of non-current assets by reportable segment(Significant impairment loss of non-current assets)
As a result of the Company’s decision to transfer the production function of water treatment chemicalsof Kurita Water Industries (Jiangyin) Co., Ltd. to a plant of the newly established Kurita Water
Industries (Taixing) Co., Ltd. (due to begin operating in the second half of fiscal year ending March 31,2021) in the Water Treatment Chemicals business, the Company recorded 1,106 million yen, the entire
amount of the unamortized balance of goodwill which the Company had recorded when it had acquired
shares of Kurita Water Industries (Jiangyin) Co., Ltd., as an impairment loss. For details, please refer to(Statement of income).
(Significant changes in the amount of goodwill)In the Water Treatment Chemicals business, the Company recorded an impairment loss as describedabove.
(Significant gain on bargain purchase)
Not applicable11

(Significant subsequent events)(Acquisition of equity interests through a consolidated subsidiary)
On February 8, 2019, the Company concluded an agreement to acquire 100% of the outstanding shares of
Global Water Services Holding Company, Inc. (headquartered in Delaware, the United States; hereinafter“GWS”), a wholly owning parent company of U.S. Water Services, Inc. that manufactures and sells water
treatment chemicals and facilities in the United States (headquartered in Minnesota, the United States;
hereinafter “U.S. Water”), through Kurita America Holdings Inc., a wholly owned subsidiary of theCompany. GWS will become a consolidated subsidiary of the Company.
1. Name, address, the name of representative, the amount of capital and business of the company whose
shares will be acquired(1) Name:

Global Water Services Holding Company, Inc.

(2) Address:

Corporation Trust Center, 1209 Orange Street, Wilmington, New
Castle, Delaware 19801, U.S.A.

(3) Name of representative:

CEO, Alan R. Hodnik(4) Common stock and paid-in capital: 193,000,000 US dollars(5) Business:

Holding of shares of U.S. Water

2. Purpose of acquiring equity interests
The Group aims to significantly expand its overseas businesses by establishing platforms in four
regions of the world – Japan, Asia, Europe and the Americas, and this investment will be made as part of
the Group’s initiatives to strengthen business in the North America, a strategic market. In addition, theGroup will accelerate business development in the United States by establishing even closer relationships
with customers

through the development of the service contract business model making full use of IT

and sensing by injecting the Group’s products with competitive advantage and highly unique services
such as pure water supply and wastewater reclamation into the solid customer base and sales channels of
GWS.
3. Time of acquiring equity interests
The Group will acquire equity interests as soon as it has obtained the approval from the authorities.
4. Acquisition price and the ownership ratio after acquisition(1) Number of shares to acquire:

3,517,457 shares(2) Purchase price:

270,000,000 US dollars(3) Ownership ratio after acquisition:

100.0%

12

Supplementary Information — Consolidated(1) Order Intake(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Nine months ended December 31,
2017
2018
Amount%Amount
66,511
121,415
187,926

35.4
64.6
100.0

77,802
122,798
200,601

%
38.8
61.2
100.0

(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Nine months ended December 31,
2017
2018
Amount%Amount
66,49897,013
163,511

40.7
59.3
100.0

77,437116,285
193,723

%
40.0
60.0
100.0

(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Nine months ended December 31,
2017
2018
Amount%Amount1,534
13,46615,001

10.2
89.8
100.0

2,248
22,03524,283

%
9.3
90.7
100.0

(4) Depreciation (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Nine months ended December 31,
2017
2018
Amount%Amount
1,294
8,638
9,933

13.0
87.0
100.0

1,537
9,513
11,050

%
13.9
86.1
100.0

13

Disclaimer* This document is an English translation of the Earnings Report for the nine Months
Ended December 31, 2018 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.
* The quarterly financial report is outside the scope of audit procedures by certified
public accountants and audit firm.
* Comment regarding appropriate usage of earnings forecast, and other special notes
Forward-looking statements such as earnings forecasts contained in this material are
based on information currently available for the Company and certain assumptions
which the Company deems reasonable, and the Company does not guarantee thatthey will be realized. Actual results may differ materially from forecasts due tovarious factors. Please see “Outlook for the Fiscal Year Ending March 31, 2019” onpage 3 of the accompanying materials for notes to the use of earnings forecasts andpreconditions, or assumptions, for the forecasts.

14