Summary of the Q&A Session at the Financial Results Briefing
for the Third Quarter of the Fiscal Year ending March 31, 2019

Date and Time: February 12, 2019 (Tue.) 11:00 - 11:45
Notice: This summary is a reference designed for the convenience of those who could notattend the financial results briefing stated above. Please note that this is not a word-for-wordtranscript of all remarks made at that session, but is a summary prepared by Kurita Water
Industries Ltd.

Q. With regard to orders for water treatment facilities for the electronics industry, pleasecomment on recent conditions by application. Has there been bad news, such as
cancellations?
A. Our understanding is that orders from China and South Korea, primarily in semiconductors,
have been pushed out rather than cancelled. On the domestic side, conditions are firm forboth electronic components and semiconductors.
Q. Subtracting nine-month water treatment facilities’ overseas orders from the full-year
forecast implies 4Q orders of just ¥1 billion. Is the situation as bad as this figure suggests?
A. Our forecasts are slightly conservative.
Q. What was the growth rate for nine-month overseas water treatment chemicals' revenues
in local currency terms?
A. Overseas sales of water treatment chemicals grew 9.5%, excluding the impact from thenewly consolidated Hansu Co., Ltd. and Fracta. This is in line with plan.
Q. Please comment on capacity utilization levels at your customers for the water treatment
chemicals business in Asia. Could you also discuss whether you have won new projects
and whether stricter enforcement of environmental regulations in China has had an impact
on your business?
A. Conditions in China, which account for a significant proportion of Asia sales, remain largely
unchanged from last year. We have not seen significant declines in capacity utilization atour customers. Tighter enforcement of environmental regulations has not impacted
earnings. We view this as an opportunity for Kurita.
Q. What is the OPM level for U.S. Water Services, Inc. (hereafter U.S. Water)? What was theEV/EBITDA at the time of the acquisition?
A. What I can say is that the OPM is largely in line with the margin generated by the Kurita
Group's overseas businesses. The EV/EBITDA multiple was not a single-digit multiple; it
was in line with market valuations on transactions for U.S. water treatment chemicals
companies.

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Q. Can we assume that U.S. Water's businesses are similar to Kurita's?
A. In terms of products, there are no major differences in the lineup of products currently
handled by the Kurita Group. However, U.S. Water does have some items that the Kurita
Group did not have, such as chemicals used in bioethanol refining.
Q. Did the acquisition of U.S. Water give you access to business areas that you were unable
to reach through Fremont?
A. That was not a consideration for this transaction. We were able to establish a platform
through Fremont. This transaction gives us a bigger platform. The transaction is alignedwith our overall strategy.
Q. When do you expect to close the U.S. Water transaction?
A. We cannot disclose specifics but assuming we make good progress, we would hope toclose sometime in March.
Q. After the closing, your cash balance will decline. Your shareholder return policy has been
to continuously raise the dividend: will this change?
A. Our policy on shareholder returns, including dividends, will not change.
Q. What will your market share be in North America following the acquisition of U.S. Water?
A. Slightly less than 5% in water treatment chemicals.
Q. In considering further acquisitions, are you looking for companies of a similar scale?
Would you consider larger-scale candidates?
A. Our top priority is to focus on integrating U.S. Water. Going forward, we will likely focus oncompanies with distinctive technologies.
Q. Will the U.S. Water management team stay on?
A. That is the plan.
Q. Excluding the impact of M&A, what was the organic growth rate for sales at U.S. Water
over the last 3 years?
A. We do not disclose the growth rates for either the water treatment facilities or water
treatment chemicals businesses. However, growth from sales of water treatment facilities
was driven by M&A. The driver of organic sales growth was the water treatment chemicals
business.
Q. You expanded the application of the percentage-of-completion method in the water
treatment facilities business. How large will the impact be on a full-year basis this fiscalyear?
A. Given how difficult it is to project, I can provide only a relatively wide range: I estimate asales impact of between ¥3 to 5 billion. The profit impact is likely to be around 15% of thetopline impact.

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Q. Looking at 3Q on a standalone basis, if we subtract the impact from the expanded
application of the percentage-of-completion method, the underlying profitability of thewater treatment facilities business appears to have improved on a YoY basis. Pleasecomment on why the margin improved and whether this positive impact can be sustained
into next fiscal year?
A. The key driver is the impact of higher revenues. We would expect the push-up to sales tocontinue going forward but the impact from the expanded application of the percentage ofcompletion method will drop out in the next fiscal year.
Q. In 3Q, you posted an extraordinary loss, taking an impairment loss on the goodwill from
Kurita Water Industries (Jiangyin) Co., Ltd. Please comment on the background to theimpairment loss. Also, how much goodwill remains and how will this write-down impact
the annual amount of goodwill amortization?
A. As a result of stricter enforcement of environmental regulations in China, we have plans
to move the production plant for this subsidiary, hence the impairment loss. Total annual
goodwill amortization is ¥1.7 billion. The impact of the write-down on annual amortization
is minimal.

Results forecasts presented and other statements relating to the future made in thisdocument are based on information currently available and certain assumptions theCompany considers reasonable. A variety of factors may cause actual financial results andother forward-looking statements to differ materially from the forecasts.

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