FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Three Months Ended June 30,2015
Tokyo, Japan, July 31, 2015—Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 42,493 million yen and profit attributable to owners of the parent
company of 2,636 million yen, or 22.69 yen per share, for the three months ended June30, 2015 (April 1, 2015 – June 30, 2015).
Results of Operations
Total consolidated orders for the Kurita Group in the three months ended June 30, 2015rose 17.2% from the level of the same period of the previous fiscal year, to 54,023
million yen, and net sales increased 9.4%, to 42,493 million yen. Operating income was
3,569 million yen, up 18.2% versus the same period of the previous fiscal year, andordinary income was 3,964 million yen, up 22.5%. Profit attributable to owners of theparent company amounted to 2,636 million yen, up 23.5%. Because of the consolidationof the results of operations of acquired businesses, the consolidated orders and net salesof the Group and the Water Treatment Chemicals segment rose 3,771 million yen, butthe impact of the consolidation on operating income and the other levels of income wasminor.
Looking at the market environment surrounding the Kurita Group (Kurita Water
Industries Ltd. and its consolidated subsidiaries and equity method affiliates), therecovery in production in the manufacturing industry slowed, but capital expenditurerose on the back of an improvement in corporate earnings in Japan. Overseas, the U.S.
and European economies continued to recover, but growth in China and other emerging
economies slowed. Overall, overseas economies grew modestly.
In this environment, the Kurita Group worked to propose solutions to customers’
challenges by combining its three functions: water treatment chemicals, water treatment
facilities and maintenance services. From the first quarter under review, the Group is
consolidating the results of operations of the businesses that it has acquired from BK
Giulini GmbH in Germany and its affiliates.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 19,348 million
yen, up 31.2% versus the same period of the fiscal year ended March 31, 2015, whilesales rose 32.7%, to 18,356 million yen. Selling, general and administrative expenses
increased in association with the strengthening of the overseas business structure, but
the increase was offset by a rise in revenue. Operating income was up 2.6% to 1,770
million yen.
In Japan, the Group worked to gain new customers by proposing solutions using new
products and services. Meanwhile, there was no adverse effect of the spike in demand
before the consumption tax hike. For those reasons, both orders and sales rose slightly.
Overseas, both orders and sales increased significantly, reflecting strong performance in
China and Southeast Asia and the consolidation of the results of acquired businesses.

1Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 34,675 million yen,up 10.7% versus the same period of the previous fiscal year. Sales declined 3.5%, to24,136 million yen. Operating income climbed 38.7%, to 1,796 million yen due to animprovement in the cost rate as a result of cost cutting.
In Japan, in the electronics industry, orders and sales in the water treatment facilities
and the ultrapure water supply business remained flat. Meanwhile, orders and sales inmaintenance services rose. In general industries, orders declined slightly, but sales rose,reflecting progress in construction in progress in water treatment facilities for electric
power and in maintenance services.
Overseas, orders rose, chiefly reflecting large-scale projects in the electronics
industry in China and Taiwan, but sales fell.
Financial Condition
Assets, liabilities and net assets
Current assets totaled 138,389 million yen at the end of the first quarter (June 30, 2015),
a decrease of 9,901 million yen versus the end of the previous fiscal year (March 31,2015). This was mainly a result of declines of 11,684 million yen in trade accounts
receivable and 4,014 million yen in cash and deposits, which overweighed increases of
2,457 million yen in work in process, 2,000 million yen in marketable securities, and1,123 million yen in trade notes receivable.
The decline in trade accounts receivable was the result of progress in collecting
receivables and weaker sales in the first quarter under review than in the fourth quarterof the previous fiscal year. The decline in cash and deposits was mainly the result ofincreased investment in negotiable certificates, which are treated as marketablesecurities. The increase in work in process was the result of progress in construction in
the water treatment facilities business. The rise in trade notes receivable was the resultof an increase in notes in trade accounts receivable collected.
Noncurrent assets totaled 143,602 million yen at the end of the three-month period(June 30, 2015), a decline of 1,311 million yen versus the end of the previous fiscal year.
The decline was principally attributable to a 1,249 million yen decrease in intangible
fixed assets, which was partly offset by a 610 million yen rise in property, plant andequipment. The increase in property, plant and equipment was mainly due to an increasein construction in progress in new ultrapure water supply projects. The decline inintangible fixed assets was chiefly due to the amortization of the goodwill andtechnology-related assets that were posted and acquired in associated with the businessacquisition in the previous fiscal year and a decrease in the value in yen of assets inforeign currencies.
Current liabilities totaled 39,095 million yen at the end of the period, a decline of
8,666 million yen versus the end of the previous fiscal year. This was mainly a result of
declines of 2,547 million yen in trade accounts payable, 2,606 million yen in income
taxes payable, 2,429 million yen in “other” current liabilities, and 1,015 million yen inprovisions.
Noncurrent liabilities totaled 22,232 million yen at the end of the period, an increaseof 268 million yen versus the end of the previous fiscal year.

2Net assets totaled 220,665 million yen at the end of the period, a decrease of 2,813
million yen versus the end of the previous fiscal year primarily due to falls of 1,031
million yen in shareholders’ equity and 1,784 million yen in accumulated othercomprehensive income. The decline in shareholders’ equity was attributable to theacquisition of 988 million yen’s worth of treasury stock. The decrease in accumulated
other comprehensive income resulted mainly from a decline of 1,715 million yen inforeign currency translation adjustments given the stronger yen against foreign
currencies.
Outlook for the Fiscal Year Ending March 31, 2016
The Group’s current outlook for the six months ending September 30, 2015, and the fullyear ending March 31, 2016 is consistent with the targets disclosed in “Earnings Reportfor the Full Year Ended March 31, 2015,” which was announced on April 30, 2015.

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
OtherAllowance for doubtful accounts
Total current assets
Noncurrent 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, 2015
AmountAs ofJune 30, 2015
Amount52,497
7,513
59,81014,999
3,206
3,078
2,569
4,876(261)
148,290

48,483
8,636
48,126
16,999
3,371
5,535
2,330
5,101(196)
138,389

17,76529,38426,89674,046

16,93827,897
29,82074,656

19,391
7,940
27,332

18,585
7,497
26,08336,0707,766(302)
43,534
144,913293,204

35,9207,239(297)
42,862
143,602281,992

4

(Million yen)

As ofMarch 31, 2015
Amount

As ofJune 30, 2015
Amount1,650
19,1694,595
4,076
18,26947,761

1,581
16,622
1,989
3,061
15,84039,095

13,78575
8,104
21,96469,726

14,04357
8,130
22,232
61,327

13,45010,980189,693(7,705)
206,419

13,45010,980189,650(8,693)205,388

14,76815,03466(442)
1,510
815,911
1,147
223,478
293,204(265)
(442)
(205)
6
14,127
1,148
220,665
281,992

Liabilities
Current liabilities
Notes payable – trade
Accounts payable – trade
Income taxes payable
Provision
Other
Total current liabilities
Noncurrent liabilities
Net defined benefit liability
Provision
Other
Total noncurrent liabilities
Total liabilities
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 incomeDividend 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
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on liquidation 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

Three months ended
June 30, 2014
Amount
38,851
25,91912,9319,910
3,020

Three months ended
June 30, 2015
Amount42,49327,16015,333
11,763
3,569

42
190-

48
238
130

54

35

32
321

61
514

14
59
30
104
3,237

57
62
119
3,964-

135
135

3,237
1,145
2,091
(43)
2,135

140
140
3,959
1,294
2,664
27
2,636

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, net of tax
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to minority
interests

Three months ended
June 30, 2014
Amount2,091

Three months ended
June 30, 2015
Amount
2,664

715

266

(231)
6(331)(1,721)
(2)

(36)

(14)

452
2,544

(1,803)
860

2,611

846

(67)

13

7

Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Three months ended June 30, 2015 (April 1, 2015 – June 30, 2015)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Three months ended June 30, 2015 (April 1, 2015 – June 30, 2015)
Not applicable(Segment Information)
1. Sales and income by reportable segment
Three months ended June 30, 2014 (April 1, 2014 – June 30, 2014)(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 transfers13,836
48

25,01442

38,85190–(90)

38,851–

Total

13,88425,05638,941(90)

38,851

Segment income

1,725

1,295

3,021

(0)

3,020

Three months ended June 30, 2015 (April 1, 2015 – June 30, 2015)(Million yen)

Reportable Segment

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

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

18,35669
18,425
1,770

24,13637
24,174
1,796

42,493106
42,6003,566

Amounts
reported on
Adjustments the quarterly
statements of(note 1)
income(note 2)–(106)(106)
242,493–42,493
3,569

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.

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

Business segment
Water Treatment Chemicals

Three months ended June 30,
2014
2015
%
AmountAmount
14,75032.0
19,348%35.8

Water Treatment Facilities

31,33268.0

34,675

64.2

Total

46,082100.0

54,023100.0(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,2014
2015
Amount%Amount13,83635.6
18,356%43.2

Water Treatment Facilities

25,01464.4

24,136

56.8

Total

38,851100.0

42,493100.0(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2014
2015
Amount%Amount
257
13.1
686%
13.0

Water Treatment Facilities

1,707

86.9

4,581

87.0

Total

1,965

100.0

5,267

100.0

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

Business segment
Water Treatment Chemicals

Three months ended June 30,
2014
2015
Amount%Amount
279
7.9
327

%
10.0

Water Treatment Facilities

3,246

92.1

2,955

90.0

Total

3,526

100.0

3,282

100.0

9