FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the Three Months Ended June 30,
2009Tokyo, Japan, July 30, 2009—Kurita Water Industries Ltd. (TSE Security Code 6370)
announced net sales of 36,584 million yen for the three months ended June 30, 2009 (April 1,2009 – June 30, 2009) and net income of 3,197 million yen, or 24.85 yen per share.
Results of Operations
Total consolidated orders for the Kurita Group in the three months ended June 30, 2009, weredown 25.5% versus last fiscal year’s first quarter to 40,503 million yen, while net sales declined
11.0% to 36,584 million yen. An improved cost-of-sales ratio and reduction of selling, generaland administrative expenses helped the Group achieve operating income of 4,785 million, down
1.1% versus last fiscal year’s first quarter, ordinary income of 5,004 million yen, down 2.3%,
and net income of 3,197 million yen, up 11.3%.
Markets in which the Kurita Group operates were extremely challenging during the threemonths ended June 30, 2009. Amid the sharp global downturn, ongoing since last fiscal year’s
second half, capital expenditure remained subdued and capacity utilization remained low in theelectronics industry and general industries, both in Japan and overseas.
Overview by Segment
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 13,560 million yen, down
13.1% versus the year-ago period, while sales fell 10.6% to 12,820 million yen.
During the three months ended June 30, 2009, the Group bolstered sales efforts by strengthening
alliances between Group companies both in Japan and overseas, and pursued order bookings
based on a consultative sales approach to help customers successfully meet challenges such as
productivity enhancement and environmental mitigation.
Japan
Orders declined for the Group’s mainstay boiler water treatment chemicals, cooling water
treatment chemicals, and wastewater treatment chemicals, as well as for other products, due tothe decline in customers’ capacity utilization.
Overseas
Overseas orders also decreased.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 26,942 million yen, down
30.5% versus the year-ago period, while sales fell 11.2% to 23,764 million yen.
During the three months ended June 30, 2009, the Group worked to generate profits by focusing
on service businesses and pursued order bookings by stepping up consultative sales efforts
aimed at key customers.
In the electronics industry, the ultrapure water supply business’s orders were up versus theyear-ago period, but orders for the Group’s ultrapure water production systems fell substantially
due to suspensions and postponements of semiconductor- and LCD-related capital expenditures1in Japan and Asia. The tool-cleaning service business’s orders also fell considerably due todiminished capacity utilization. Orders for water treatment facilities and maintenance services
from general industries were down markedly versus the year-ago period due to curtailment ofcapital expenditure and capacity utilization reductions.
Financial Condition
Current assets totaled 95,762 million yen at the end of the fiscal first quarter (June 30, 2009), a
decline of 2,926 million yen versus the end of the previous fiscal year (March 31, 2009). Thiswas mainly due to trade accounts receivable’s large decline of 11,488 million yen, which waspartly offset by increases in cash and deposits of 3,539 million yen, in trade notes receivable of
1,168 million yen, and in work in process of 3,853 million yen. The decline in trade accounts
receivable was due to both increased collections as well as the drop in sales. The increases incash and deposits and trade notes receivable were due to the aforementioned increase incollections, while the increase in work in process was due to ongoing works in the water
treatment facilities business.
Noncurrent assets totaled 146,091 million yen at the end of the fiscal first quarter, a decline of626 million yen versus the end of the previous fiscal year. This mainly reflects a 1,579 million
yen decrease in property, plant and equipment due to depreciation expenses on facilities used in
the ultrapure water supply business that we invested in before and during the previous fiscalyear, which more than offset a 1,043 million yen increase in the “investments and other assets”
account reflecting market-price appreciation of investment securities held by the Group.
Current liabilities totaled 42,142 million yen at the end of the fiscal first quarter, a decline of
5,793 million yen versus the end of the previous fiscal year. This was mainly due to declines of
2,847 million yen in trade accounts payable, 2,808 million yen in other accounts payable, and
1,354 million yen in income taxes payable.
Noncurrent liabilities totaled 18,681 million yen at the end of the fiscal first quarter, a small
decrease of 162 million yen versus the end of the previous fiscal year.
Net assets were 181,030 million yen at the end of the fiscal first quarter, an increase of 2,403
million yen versus the end of the previous fiscal year. Despite dividend payments of 2,187
million yen out of retained earnings, quarterly net income added 3,197 million yen to retained
earnings, and valuation and translation adjustments increased by 1,423 million yen due to anincrease in unrealized gains on available-for-sale securities, reflecting market-price appreciationof investment securities held by the Group.
Outlook for the Fiscal Year Ending March 31, 2010
The Group believes that it is on course to achieve its earnings forecasts for both the six months
ending September 30, 2009, and the full fiscal year ending March 31, 2010, detailed in its
consolidated earnings release (and in Japanese in the kessan tanshin) for the fiscal year ended
March 31, 2009, issued on April 28, 2009.

2

Financial Statements — Consolidated
Balance Sheets — Consolidated(millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeFinished products
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assetsNoncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Investments and other assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Accounts payable - other
Income taxes payable
Allowances
Other
Total current liabilities
Noncurrent liabilities
Accrued employees’ retirement benefits
Other allowances
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

As ofJune 30, 2009
AmountAs ofMarch 31, 2009
Amount29,601
9,452
40,624
1,520
8,146
1,476
5,083
(144)
95,762

26,061
8,284
52,113
1,414
4,293
1,440
5,221
(140)
98,68938,83753,19532,452
124,484
2,194

39,29050,82135,950126,063
2,285

19,549(137)
19,411
146,091
241,854

18,520(152)
18,368
146,717
245,406

1,807
14,16314,085
2,427
2,328
7,329
42,142

1,820
17,01016,893
3,781
3,384
5,045
47,935

8,824
492
9,365
18,68160,823

8,644
738
9,462
18,844
66,77913,45011,426
160,802(4,849)180,830

13,45011,426
159,792(4,847)
179,821

1,291
(750)
(1,647)(1,107)1,307
181,030
241,854

170(750)(1,950)(2,530)
1,335
178,626
245,4063

Statements of Income — Consolidated(millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and directors’ remuneration
Provision for employees’ bonuses
R&D expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain from cancellation of contracts
Total extraordinary income
Extraordinary income
Loss on liquidation of businessTotal extraordinary losses
Income before income taxes and minority interests
Income taxes
Minority interests in earnings of consolidated
subsidiaries
Net income

Three months ended Three months ended
June 30, 2009
June 30, 2008
AmountAmount36,58441,09323,317
27,174
13,267
13,919
2,981
675
908
3,916
8,481
4,785

2,910
695
1,073
4,399
9,078
4,840

29
125
126
281

80
173
67
322

655
62
5,004

8
30
38
5,124

646
646-136
136
5,514
2,278

5,124
2,066

38185

3,197

2,8724

Statements of Cash Flows — Consolidated(millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowances(Increase) decrease in notes and accounts receivable trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Income taxes paid
Other (net)Net cash provided by (used in) operating activities

Three months
ended
June 30, 2009
AmountThree months
ended
June 30, 2008
Amount5,514
3,663(1,154)

5,124
2,648
(794)

10,142

7,676(3,906)(3,249)(2,445)(3,970)(3,709)2,625
10,729(8,553)
2,011
893(2,099)(1,498)Cash flows from investing activities
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketablesecurities
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of investment securities
Proceeds from liquidation of subsidiaries
Other payments
Other proceeds
Net cash provided by (used in) investing activities

2,916

2,699

(6,865)
6(3)
(294)
621
(5,720)(6,528)
14(3)
1,451
(207)
56
(4,016)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term borrowings
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities

60
(101)
(1)
(1,866)(78)(1,988)

33
(49)
(3)
(1,931)(44)(1,996)

727

(396)

3,748

(5,516)25,26230,36060-29,071

24,843

Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiod
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at the end of the period5Segment Information
Business segment information
Three months ended June 30, 2009 (April 1, 2009 – June 30, 2009)(millions of yen)

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

Water
treatmentchemicals

Watertreatment
facilities

Total

12,82064
12,885
1,873

23,764
12
23,776
2,911

36,58476
36,661
4,785

Eliminationor corporate

(76)
(76)
(0)

Consolidated

36,58436,584
4,785

Three months ended June 30, 2008 (April 1, 2008 – June 30, 2008)(millions of yen)

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

Water
treatmentchemicals

Watertreatment
facilities

Total

14,33856
14,3942,269

26,75529
26,785
2,583

41,093
86
41,1794,852

Eliminationor corporate(86)
(86)
(11)

Consolidated

41,09341,093
4,840

Geographical segment information
Three months ended June 30, 2009 (April 1, 2009 – June 30, 2009)(millions of yen)

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

Japan

Other
regions

Total

33,522267
33,789
4,438

3,062
101
3,164
272

36,584369
36,954
4,711

Eliminationor corporate

(369)
(369)
74

Consolidated

36,58436,584
4,785

Three months ended June 30, 2008 (April 1, 2008 – June 30, 2008)(millions of yen)I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

Japan

Otherregions

Total

36,791
418
37,209
4,422

4,302
19
4,322
337

41,093438
41,531
4,759

Eliminationor corporate

(438)
(438)
80

Consolidated

41,09341,093
4,840

Notes:
1. Geographic segmentation is based on geographic proximity.
2. “Other regions” in the above table consists of Asia and other areas.

6

Overseas sales
Three months ended June 30, 2009 (April 1, 2009 – June 30, 2009)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated sales

Asia
2,038-

North
America
268-

Europe340-

Other609
-

Total
3,256
36,584

5.6%

0.7%

0.9%

1.7%

8.9%

Three months ended June 30, 2008 (April 1, 2008 – June 30, 2008)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated salesAsia
3,781-

North
America
218-

Europe381-

Other845-

Total
5,227
41,093

9.2%

0.5%

0.9%

2.1%

12.7%

Notes:
1. Geographic segmentation is based on geographic proximity.
2. Major countries or regions in each category are as follows:(1) Asia:
Korea, China, Taiwan, Singapore, Indonesia, and Thailand(2) North America:
U.S.A.
(3) Europe:
Germany(4) Other areas:
Brazil3. “Overseas sales” comprises sales by the Company and its consolidated subsidiaries in countries orregions other than Japan.

Net Sales, Order Intake
Net Sales(millions of yen)

Business segment
Water treatment chemicals

Three months ended June 30,2009
2008
Amount%Amount12,820
35.0
14,338%34.9

Water treatment facilities

23,76465.0

26,755

65.1

Total

36,584100.0

41,093100.0

Order Intake(millions of yen)

Business segment
Water treatment chemicals

Three months ended June 30,2009
2008
Amount%Amount13,56033.5
15,602%
28.7

Water treatment facilities

26,942

66.5

38,767

71.3

Total

40,503100.0

54,369100.07