FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Six Months Ended September 30, 2021
Tokyo, Japan, October 29, 2021 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 135,239 million yen and profit attributable to owners of parent of 5,705
million yen, or 50.78 yen per share, for the six months ended September 30, 2021 (April 1, 2021 September 30, 2021).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the six months ended September 30,
2021 rose 15.9% from the level of the year-ago period, to 147,810 million yen, and net sales increased
3.2%, to 135,239 million yen. Business profit* was increased 9.4%, to 14,883 million yen, operating
profit was 14,749 million yen, down 7.9% versus the year-ago period, profit before tax was 11,161
million yen, declined 27.5%, and profit attributable to owners of parent amounted to 5,705 million yen,down 46.2%. Operating profit, profit before tax and profit attributable to owners of parent declined
due to finance costs of 3,611 million yen posted in the first six months under review, which resulted
from the subsequent measurement of liabilities related to a forward contract concluded with noncontrolling shareholders of Pentagon Technologies Group, Inc., and the absence of a profit fromliquidation of 2,086 million yen related to cancellations of contracts with a certain customer in theultrapure water supply business posted in other income in the same period of the previous fiscal year.
In the first quarter of the fiscal year under review, the Group acquired 51% of the shares in Kurita
AquaChemie Limited (Water Treatment Chemicals business) in the Middle East and made it and its
two wholly owned consolidated subsidiaries. The Group acquired also Keytech Water Management(Water Treatment Chemicals business), making it a consolidated subsidiary. The operating results of
those companies are newly consolidated.
The PPA for Pentagon Technologies Group, Inc., which was consolidated in the same period of theprevious fiscal year, was determined at the end of the previous fiscal year, and the results in the same
period of the previous fiscal year have been revised retroactively.
During the six months of the fiscal year ending March 31, 2022, there were signs of a recovery in
the world economy as economic activity moved toward normalization, reflecting economic stimulus
measures in the world and the increasing pace of vaccinations. Production activities in the
manufacturing industry in Japan were weak in certain sectors due to the effects of the spread of
COVID-19 on supply chains but were on a recovery trend. There were signs of recovery in capital
investment. Overseas, European, the U.S. and Chinese economies recovered steadily. Meanwhile, insome parts of Asia, economic recovery was weak due to a resurgence in COVID-19 infections.
In this environment, the Group stepped up initiatives to expand total solutions by focusing on
proposal activities that would help solve customer issues such as the reduction of the environmental
impact, including water saving, the reduction of CO2 emissions and waste reduction, and an
improvement in productivity based on a deep understanding of social and customers’ issues, aiming tobecome an indispensable partner of customers in the long term.
* Business profit is the Group’s own indicator that measures constant business performance. It is net
sales less cost of sales and selling, general and administrative expenses. Although business profit is
not defined by IFRS, the Group voluntarily discloses it, believing that it is beneficial for users of its
financial statements.
Segment Information
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 58,668 million yen, up 12.0%
1

versus the year-ago period, while net sales rose 12.8%, to 58,103 million yen.
In terms of profits, business profit amounted to 7,514 million yen, an increase of 16.7% year on year,
and operating profit rose to 7,270 million yen, up 14.3% year on year, chiefly due to an increase in net
sales.
Orders in Japan rose only slightly partly due to the absence of spot contracts for equipment in thesame period of the previous fiscal year, but net sales increased due to a rise in capacity utilization atcustomers’ plants, which reflected a recovery in production activities in the manufacturing industry.
Overseas, both orders and net sales rose due to an increase in reaction to a fall in demand a year ago
because of stagnant economic activities caused by the spread of COVID-19, the consolidation of theoperating results (for six months) of the subsidiaries in the Middle East and Canada acquired in thefirst quarter of the fiscal year under review, and an increase in results in yen at overseas subsidiaries
due to the weaker yen.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 89,141 million yen, up 18.6%
versus the same period of the previous fiscal year. Net sales declined 3.0%, to 77,135 million yen.
Business profit rose to 7,368 million yen, up 2.5% year on year, chiefly reflecting efforts to improve
profitability, including cost cutting. Operating profit stood at 7,460 million yen, down 22.9% year on
year, due to the absence of a profit from liquidation of 2,086 million yen related to cancellations ofcontracts with a certain customer in the ultrapure water supply business posted in other income in thesame period of the previous fiscal year.
In Japan, orders for water treatment facilities for the electronics industry increased significantly,
reflecting the posting of orders for large projects. Net sales also rose. Orders for maintenance services
for the industry increased, reflecting the expansion of facilities and repairs, including the replacementof consumables, against a backdrop of firm capacity utilization at customers’ plants. Net sales
decreased, however, due to the absence of sales from large projects posted in the same period of theprevious fiscal year.
While orders for water treatment facilities for the general industry increased due to orders for large
projects posted, net sales declined due to the completion of large projects. Orders and net sales ofmaintenance services for the industry climbed, reflecting growth in demand against a backdrop of arecovery in capacity utilization at customers’ plants. Orders for and net sales from water treatment
facilities for the electric power industry decreased because orders for large projects declined and theposting of sales from the order backlog ran its course. Orders for soil remediation services increased,
but net sales fell as the posting of sales from large projects had run its course.
Overseas, orders rose due to orders for large water treatment facilities projects in the electronics
industry in East Asia. However, net sales overseas rose only slightly due to a fall in sales from water
treatment facilities for the electronics industry in East Asia after peaking, although net sales of toolcleaning service increased.
Total net sales in the ultrapure water supply business in Japan and overseas increased due to thecontribution of a contract that began in the previous fiscal year.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 433,393 million yen, an increase of 8,465 million yen from the end of the previous
fiscal year)
Current assets totaled 162,414 million yen at the end of the second quarter (September 30, 2021), a
decrease of 14,068 million yen from the end of the previous fiscal year (March 31, 2021). This was
mainly attributable to a decrease in cash and cash equivalents of 16,438 million yen, chiefly due topurchase of property, plant and equipment and income taxes paid.
Non-current assets totaled 270,979 million yen at the end of the second quarter, an increase of 22,534
million yen from the end of the previous fiscal year. Property, plant and equipment increased 20,203
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business (Water
2

Treatment Facilities business) and progress in the construction of a new research and developmentbase in Akishima-shi, Tokyo, which the Company plans to open in April 2022.
2) Liabilities: 172,549 million yen, an increase of 5,459 million yen from the end of the previous fiscal
year
Current liabilities totaled 92,795 million yen at the end of the period, an increase of 17,843 million yen
from the end of the previous fiscal year. This is attributable chiefly to liabilities related to the forward
contract concluded with non-controlling shareholders of US-based Pentagon Technologies Group, Inc.
(Water Treatment Facilities business), which were transferred from non-current liabilities and reflecteda subsequent measurement after initial recognition. As a result, other financial liabilities rose 16,137
million yen.
Non-current liabilities totaled 79,754 million yen at the end of the period, a decrease of 12,383
million yen from the end of the previous fiscal year. This is because liabilities related to the forward
contract were transferred to current liabilities, and other financial liabilities decreased 11,534 millionyen.
3) Equity: 260,843 million yen, an increase of 3,006 million yen from the end of the previous fiscal
yearThis principally reflected an increase of 1,869 million yen in retained earnings primarily due to profit
attributable to owners of parent posted and a rise of 653 million yen in non-controlling interests chiefly
due to business combinations.
Cash Flows
Consolidated net cash and cash equivalents at the end of the second quarter (September 30, 2021)
totaled 45,790 million yen, a decrease of 16,438 million yen from the end of the previous fiscal year
(March 31, 2021).
The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the six months ended September 30, 2021 totaled
12,696 million yen, a decrease of 14,507 million yen from the same period of the previous fiscal year.
Inflows from profit before tax of 11,161 million yen and depreciation and amortization of 11,287
million yen were partly offset by income taxes paid of 8,263 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 24,411 million yen, an increase of 21,533 million yen fromthe same period of the previous fiscal year. Cash was used mainly for purchases of property, plant andequipment of 20,948 million yen and the acquisition of subsidiaries of 2,401 million yen (after
deducting cash and cash equivalents included in acquired assets).
3) Cash Flows from Financing Activities
Net cash used in financing activities totaled 5,082 million yen, a decrease of 16,728 million yen fromthe same period of the previous fiscal year. Cash was used mainly for dividends paid of 3,873 million
yen.
The Group’s basic policy is to constantly secure the liquidity necessary for business operations andestablish a stable funds-raising system. Short-term working capital is basically supplied by the Group’s
own funds. Capital investment and other investments in growth fields depend chiefly on the Group’s
own funds, but the Group considers financing through bond markets and bank loans as needed. As ofthe end of the period under review, the Group has concluded commitment line contracts with one
financial institution (executed and unexecuted borrowings within the commitment line were - million
yen and 20,000 million yen, respectively).
34) Forecasts for the Fiscal Year Ending March 31, 2022
As announced in “Kurita Water Industries Announces Revision of Business Forecast” published on
October 22, 2021, the Group has revised its consolidated business forecasts for the fiscal year ending
March 31, 2022. Regarding the impact of COVID-19 while it is difficult to rationally estimate how
COVID-19 will spread and when it will subside, the Company assumes that the economy will recovermoderately, given that economic activities are likely to normalize gradually through the second halfof the current fiscal year owing to increasing vaccinations around the world and economic measures.
The business forecasts are made by the Company based on information available at the time of
publication of this report and may differ from actual results due to changes in a range of factors.
(Consolidated business forecasts published on October 22, 2021)
Revision to the consolidated business forecast for the fiscal year ending March 31, 2022 (April 1, 2021
- March 31, 2022)
Net sales

Business profit

Profit attributable
Operating profit Profit before tax
to owners ofparent(Million yen)
Basic earnings
per share(yen)Previous forecast (A)276,000

33,00032,00031,30021,100187.82

Revised forecast (B)289,000

33,00032,00028,10018,000160.19Change (B-A)

13,00000(3,200)(3,100)‒Percentage change (%)

4.7

0.0

0.0

(10.2)(14.7)‒(Reference) Fiscal year
ended March 31, 2021

267,749

29,47031,52929,15019,088169.94

4

Condensed quarterly consolidated financial statements(1) Condensed quarterly consolidated statement of financial position(Million yen)
As of March 31, 2021

As of September 30, 2021

Cash and cash equivalents

62,22845,790Trade and other receivables

97,74597,932Other financial assets

2,817

2,488

Inventories

9,911

11,447

Other current assets

3,780

4,754

Total current assets

176,482

162,414

Property, plant and equipment

117,603

137,806

Right-of-use assets

19,40518,702

Goodwill

55,59658,803

Intangible assets

17,32017,042

AssetsCurrent assets

Non-current assets

Investments accounted for using equity method

1,578

1,290

Other financial assets

33,563

34,113

Deferred tax assets

3,199

3,079

Other non-current assets

177

140

Total non-current assets

248,445

270,979

424,928

433,393

Total assets

5

(Million yen)
As of March 31, 2021

As of September 30, 2021

46,506

51,402

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Other financial liabilities
Income taxes payable

445

1,909

4,373

4,387

‒

16,137

8,135

4,833

Provisions

1,847

1,321

Other current liabilities

13,644

12,802

Total current liabilities

74,952

92,795

Bonds and borrowings

31,20730,964

Lease liabilities

15,327

14,675

Other financial liabilities

13,703

2,169

Retirement benefit liability

18,027

18,418Provisions

1,160

2,171

Non-current liabilities

Deferred tax liabilities

2,368

2,311

Other non-current liabilities

10,343

9,044

Total non-current liabilities

92,13779,754

167,090

172,549

Share capital

13,45013,450Capital surplus(2,212)(2,225)

Treasury shares(10,787)(10,696)

8,500

8,906

Retained earnings

244,138

246,007

Equity attributable to owners of parent

253,089

255,442

Total liabilities
EquityOther components of equity

4,748

5,401

Total equity

Non-controlling interests

257,837

260,843

Total liabilities and equity

424,928

433,3936

(2) Condensed quarterly consolidated statement of profit or loss
(Million yen)Six months ended
September 30, 2020
Net sales
Cost of sales
Gross profit

Six months ended
September 30, 2021

131,012135,239

85,22085,23045,79150,009Selling, general and administrative expenses

32,19035,125

Other income

3,359

687

Other expenses

938

821

Operating profit

16,021

14,749Finance income

309

263

Finance costs

920

3,953

Share of profit (loss) of investments accounted for using
equity method

(7)

102

15,404

11,161

Profit before tax
Income tax expense
Profit for the period

4,619

4,998

10,784

6,163

10,607

5,705

Profit attributable to
Owners of parent
Non-controlling interests
Profit for the period

177

458

10,784

6,163

94.44

50.78

‒

‒

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Condensed quarterly consolidated statement of comprehensive income(Million yen)Six months ended
September 30, 2020
Profit for the period

Six months ended
September 30, 2021

10,784

6,163

3,833

311

(33)

(17)

Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss

3,799

293

Exchange differences on translation of foreign operations

(823)

153

Cash flow hedges

(188)

(14)

Share of other comprehensive income of investments
accounted for using equity method

(21)

38

Total of items that may be reclassified to profit or loss

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in the fair value of financial assets measured
at fair value through other comprehensive income
Remeasurements of defined benefit plans(1,033)176

Other comprehensive income, net of tax

2,766

470

Comprehensive income for the period

13,550

6,633

13,509

6,094

41

539

13,550

6,633

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income for the period8(4) Condensed quarterly consolidated statement of changes in equity
Six months ended September 30, 2020 (April 1, 2020 - September 30, 2020)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2020

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income
8,747

13,4508,212(10,893)(9,033)

503

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

(709)

(188)

3,833

Total comprehensive income for the period

‒

‒

‒

(709)

(188)

3,833

Purchase of treasury shares

‒

‒

(1)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

1

111

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders‒(10,578)

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(33)

Other

‒

(28)

‒

‒

‒

‒

‒

(10,605)

109

‒

‒

(33)

13,450(2,393)(10,784)(9,743)315

12,546

Total transactions with owners
Balance as of September 30, 2020

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2020‒

216

231,456

242,442

1,666

244,108

Profit for the period‒‒

10,607

10,607

177

10,784

(32)

2,902

‒

2,902

(136)

2,766

(32)

2,902

10,607

13,50941

13,550Purchase of treasury shares

‒

‒

‒

(1)

‒

(1)

Dividends‒‒(3,481)(3,481)(528)(4,010)Share-based payment transactions

‒

‒

‒

112

0

112

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

3,260

3,260

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

(10,578)‒(10,578)

Transfer from other components of equity toretained earnings

32

(0)

0

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

‒

‒

47

18

‒

18

Total transactions with owners

Other

32

(0)

(3,433)(13,930)

2,731(11,198)

Balance as of September 30, 2020

‒

3,118

238,630

242,0214,439

246,460

9

Six months ended September 30, 2021 (April 1, 2021 - September 30, 2021)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2021

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(2,212)(10,787)(4,469)(91)

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

108

(14)

311

Total comprehensive income for the period

13,060

‒

‒

‒

108

(14)

311

Purchase of treasury shares

‒

‒

(3)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

(11)

93

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

0

Other

‒

(2)

‒

‒

‒

‒

‒

(13)

90

‒

‒

0

13,450(2,225)(10,696)(4,360)(106)

13,372

Total transactions with owners
Balance as of September 30, 2021

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2021

‒

8,500

244,138

253,089

4,748

257,837

Profit for the period

‒

‒

5,705

5,705

458

6,163

(15)

389

‒

389

81

470

(15)

389

5,705

6,094

539

6,633

Purchase of treasury shares

‒

‒

‒

(3)

‒

(3)

Dividends‒‒(3,819)(3,819)(36)(3,856)

Share-based payment transactions

‒

‒

‒

82

(1)

80

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

125

125

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

15

16

(16)

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

‒

‒

‒

(2)

26

24

Total transactions with owners

Other

15

16

(3,835)(3,742)114(3,628)

Balance as of September 30, 2021

‒

8,906

246,007

255,4425,401

260,84310

(5) Condensed quarterly consolidated statement of cash flows(Million yen)Six months ended
September 30, 2020

Six months ended
September 30, 2021

Cash flows from operating activities
Profit before tax

15,404

11,161

Depreciation and amortization

10,263

11,287

Share of loss (profit) of investments accounted for using
equity method

7

(102)

Loss (gain) on sale of fixed assets

(5)

(37)

Decrease (increase) in inventories(123)(1,100)Decrease (increase) in trade and other receivables

6,578

549

Increase (decrease) in trade and other payables
Other
Subtotal

(371)

(636)

(2,286)(543)

29,465

20,578Interest received

43

48

Dividends received

184

383

Interest paid

(36)

(49)

Income taxes paid

(2,453)(8,263)

Net cash provided by (used in) operating activities

27,203

12,696(1,067)(1,167)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

843

1,294

Purchase of property, plant and equipment(3,083)(20,948)

Proceeds from sale of property, plant and equipment

5,942

251

Purchase of intangible assets(796)(1,094)(4,605)(2,401)

Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)
Other

(111)

(346)

(2,878)(24,411)(15,001)

1,392

(389)

(275)

Repayments of lease liabilities(2,444)(2,472)

Dividends paid

(4,006)(3,873)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings

Other

31

146

Net cash provided by (used in) financing activities(21,810)(5,082)

Effect of exchange rate changes on cash and cash equivalents

309

359

Net increase (decrease) in cash and cash equivalents

2,825(16,438)

Cash and cash equivalents at beginning of period

50,21562,228Cash and cash equivalents at end of period

53,04045,79011Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Six months ended September 30, 2021 (April 1, 2021 - September 30, 2021)
Not applicable(Segment Information)(1) Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial information is available.
These segments are subject to periodic review to enable the Company’s board of directors to decide how to allocate
resources and assess performance.
The Group plans comprehensive strategies for the products that it handles in Japan and overseas, and develops a business.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment Chemicals segment andthe Water Treatment Facilities segment.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals and equipment and provides
maintenance services. The Water Treatment Facilities segment manufacturers and sells water treatment system andfacilities, supplies ultrapure water, chemical cleaning, tool cleaning, soil and groundwater remediation services, andprovides maintenance services that encompass operation, maintenance, and management of water treatment facilities.

12(2) Information of reportable segments
Six months ended September 30, 2020 (April 1, 2020 - September 30, 2020)(Million yen)
Reportable Segments

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

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

51,511
211

79,501
1,086

131,012
1,297‒(1,297)131,012‒51,72280,588132,310(1,297)131,012

6,362

9,671

16,034(12)

16,021

Total

Finance income

309

Finance costs

920

Share of profit (loss) of investments accounted for using equity method(7)

Profit before tax

15,404(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

Six months ended September 30, 2021 (April 1, 2021 - September 30, 2021)(Million yen)
Reportable Segments

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

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

58,103
240

77,135
380

135,239
620

‒
(620)

135,239‒

58,34377,516

135,860(620)

135,239

7,270

7,460

14,73118

14,749Total

Finance income

263

Finance costs

3,953

Share of profit (loss) of investments accounted for using equity method
Profit before tax

102
11,161(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

13

(Business Combination)(Transaction under Common Control)(1) Outline of the transaction(i) Company names and businesses at the time of integrationi) Surviving company
Company name
Kurita Water Industries Ltd.
Business description
Manufacture and sale of water treatment chemicals and water treatment facilities;
maintenance of water treatment facilities; ultrapure water supply; soil and groundwater
remediationii) Merged companies
Company name
Kurita Engineering Co., Ltd. (“Kurita Engineering”)
Business description
Plant cleaning and maintenance; manufacture and sale of cleaning and sewage treatment
chemicals, facilities, and equipment; rental of temporary machinery(ii) Date of business combination
April 1, 2021(iii) Legal form of business combination
The business combination is an absorption-type merger. The surviving company is the Company. Kurita Engineeringhas been dissolved.
(iv) Name of the company after business combination
Kurita Water Industries Ltd.
(v) Main reason of integration
Kurita Engineering was established in 1959, by spinning off the chemical cleaning division of the Company. As aleading plant cleaning engineering company, Kurita Engineering engages primarily in chemical cleaning for large
plants in Japan. In the social and industrial infrastructure market, including the electricity, iron and steel, petroleum
refinery and petrochemical industries, which are primarily where Kurita Engineering and the Company operate, needs
to reduce the environmental impact, including decarbonization to address climate change, and demand productivity
improvement are increasing.
The merger enables the Company to appropriately respond to those needs by harnessing Kurita Engineering’s strong
technological base and customer base and using in an agile way the Company’s management resources, including
financial capital and human capital, and to provide optimal solutions. The Company will build a system to promptly
respond to social and customer needs in the social and industrial infrastructure market and will expand the plantcleaning business and achieve sustainable growth in the business.
(2) Outline of accounting
The business combination under common control is a business combination in which all companies or businesses
involved are ultimately controlled by the same company before and after the business combination. The control is not
temporary. The Group continues to perform accounting treatment for all business combination transactions undercommon control based on book value.

Disclaimer- This document is an English translation of the Earnings Report for the Six Months Ended September 30, 2021 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.
- This document is not subject to audit.
- The forward-looking statements such as performance forecasts contained in this document are based on information
currently available to the Company and certain assumptions deemed to be reasonable, and are not intended to be acommitment by the Company. Actual performance, etc. may differ due to a variety of factors. See “Forecasts for the
Fiscal Year Ending March 31, 2022” on page 4 of this document for the conditions assumed in the performance forecasts
and the precautions concerning the use of performance forecasts.

14