Summary of the Q&A Session at the Financial Conference Callfor the First Quarter of the Fiscal Year Ending March 31 2021
Date and Time: August 7, 2020 (Fri.) 11:30 - 12:00
Notice: This summary is a reference designed for the convenience of those who could not attend
the financial results conference call 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. Although the decline in revenue for the domestic Water Treatment Chemicals business was
not that large, please discuss conditions by industry.
A. There were single-digit declines in the electronics industry. Automotive fell 20% to 30% while
steel-making dropped around 20%. However, food and other inland industries were down only
slightly.

Q. You indicated there were delays for some domestic electronics industry maintenance projects,
but is it correct to assume there were no delays on overseas electronics maintenance andthat progress was good?
A. Progress was solid.

Q. Why was overseas maintenance solid? Was it because of firm capacity utilization at existingcustomers' plants, or success in expanding the customer base?
A. Capacity utilization at existing customers was solid.
Q. Please discuss the COVID-19 impact by segment.
A. The impact on orders was negative ¥4 billion, and on net sales was negative ¥3 billion. TheWater Treatment Chemicals business accounted for the majority of the impact.
Q. With regard to the overseas Water Treatment Chemicals business, have you seen signs of arecovery in the second half of 1Q or in 2Q?
A. April and May were tough, with no signs of an improvement from June into 2Q so far.
Q. Could you discuss the conditions for the overseas Water Treatment Chemicals business byregion and market segment, please?
A. The situation in the US is tough, as seen in ethanol-related chemicals, which have been
impacted by weak demand for petrochemicals, and the COVID-19 impact.
Q. For the electronics industry, do you expect to see lingering impact from delays in China?
A. Including projects delayed to this point, we do expect to see some impact going forward.

1/2

Q. Please talk about the specific factors that drove an improvement in business profits for WaterTreatment Chemicals business, despite the topline decline. Also, do you expect to be able tomaintain the 1Q segment profit margin in 2Q and beyond?
A. On the cost side, progress in transitioning to global procurements allowed us to reduce raw
materials costs. We were also able to reduce indirect manufacturing expenses. We expect tosee similar benefits in 2Q.
Q. Have you started to see synergies from the companies you acquired in the Water Treatment
Chemicals business?
A. We haven't gotten to that point quite yet but we have been able to collaborate on theprocurement side. We also did see some benefits from integration along functional lines.
Q. The 1Q results were firm, but do you have concerns for 2Q and beyond?
A. At this point, we have no concerns.
Q. The goodwill resulting from the acquisitions made to date is ¥56.4 billion. Given the toughoperating environment because of COVID-19, is there a possibility that you may need to take
impairment losses in the current fiscal year?
A. Under the current conditions, we have no major concerns.

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

2/2