Study the properties of water, master them,and we will create an environment
in which nature and man are in harmony.

Kurita Water Industries Ltd.

Results Presentation
for the Year Ended March 31, 2015
(Securities code: 6370)

April 30, 2015

Table of Contents

I

Consolidated Financial Results for the Fiscal Year Ended March 31, 2015

II

Consolidated Business Plan for the Fiscal Year Ending March 31, 2016

III

Review of Previous Medium-Term Management Plan
“TA-14 (Take Action 2014)”

IV

Outline of New Medium-Term Management Plan
“CK-17 (Competitive Kurita 2017)”
Reference Material

I. Consolidated Financial Results for the
Fiscal Year Ended March 31, 2015
1. Financial Highlights

2. Orders, Sales, Operating Income, and Operating Income Margin
3. Water Treatment Chemicals

4. Water Treatment Facilities (for the electronics industry)
5. Water Treatment Facilities (for general industries)

6. Financial Condition

I. Consolidated Financial Results for the Fiscal Year
Ended March 31, 2015

(Billions of Yen)
Fiscal Year to
March 2014
ActualFiscal Year to
March 2015
ActualYear-on-Year
ChangeRevised
Projections

InitialProjections

Orders

173.5

181.3

+ 4.5%

186.0

189.0

Net Sales

178.1

189.4

+ 6.3%

188.0

185.0

Operating Income

14.9

19.4

+ 30.6%

18.0

17.0

Ordinary Income

16.1

18.9

+ 17.8%

17.8

17.8

Net Income

9.4

10.4

+ 11.6%

11.0

11.0

 Orders increased mainly for water treatment facilities.
 Net sales rose primarily due to progress with the construction of water treatment facilities.
 Operating income grew, reflecting the effect of higher sales and lower SG&A expenses.
 M&A related expenses were recorded under non-operating expenses.
 As a result of the lowering of the effective tax rate, deferred tax assets decreased, while tax expenses increased.

1

I. Consolidated Financial Results for the Fiscal Year
Ended March 31, 2015

Water treatment chemicals

Water treatment facilities

Total

Orders(Billions of Yen)

173.5

181.3

186.0

59.4

59.4

59.8

100

0

200

114.0

121.9

03/201403/2015

126.2
0

189.4

188.0

58.8

60.0

59.7

119.3

129.4

128.3

03/201403/2015

Operating Income Margin(Billions of Yen)

(%)

22

14.9

19.4

18.0

7.9

7.8

8.0
6.9

0

178.1

100

Operating Income

11

denotes revised projections

Sales(Billions of Yen)

200*

03/201416

13.5

13.1 13.1

8.4

10.3 9.6
8.9 8.0

10

11.6

10.2

5.8
03/2015

4

03/201403/20152

I. Consolidated Financial Results for the Fiscal Year
Ended March 31, 2015

(Billions of Yen)

Orders60

 Domestic orders fell slightly, reflecting delayed recovery in

59.4

30

59.4

customers’ capacity utilization.

59.8

 Overseas orders expanded especially in China and Southeast
Asia.

0

03/201403/2015(Billions of Yen)

Sales

60

 Domestic sales fell slightly, reflecting delayed recovery in

60.0

58.8

30

customers’ capacity utilization.

59.7

 Overseas sales expanded especially in China and Southeast
Asia.

0

03/201403/2015(Billions of Yen)

(%)

12

14

13.5

13.1

13.1

6

0

 Operating income declined due to deterioration in the cost of
7

8.0

7.9

03/201403/2015

Operating income margin*

Operating Income

7.8

sales ratio caused by decline in core products, despite theimpact of increased revenue.

0

denotes revised projections

3

I. Consolidated Financial Results for the Fiscal Year
Ended March 31, 2015

(Billions of Yen)

Orders

80

40

0

65.2

69.3

03/201403/2015

 Orders for hardware overseas, which suffered cancellations the previous
fiscal year, increased, reflecting the acquisition of large contracts.
 Orders for maintenance services in Japan grew due to recovery indemand.
 Orders for hardware in Japan declined, reflecting the effect ofcancellations.
 Orders in the ultrapure water supply business increased.

71.4(Billions of Yen)

Sales

80

 Sales increased mainly due to progress in the construction of
40

0

71.0

75.4

03/201403/2015(Billions of Yen)

(%)

14

14

12.9

10.9

7

9.7

7.8
03/2014
Operating income marginand lower SG&A expenses.

8.9

03/2015*

Operating Income Operating income rose due to the impact of increased revenue

11.9

7

0

hardware overseas.

74.8

0

denotes revised projections

4

I. Consolidated Financial Results for the Fiscal Year
Ended March 31, 2015

(Billions of Yen)

Orders60

 Orders for general industries hardware fell due to thecancellation of orders.

30

52.6

48.9

54.8

 Orders for maintenance services for general industries increased
due to the success of proposal-based sales.

003/201403/2015(Billions of Yen)

Sales

60

 Sales of electric power industries hardware and general
30

54.0

48.3

industries hardware increased due to progress with construction.

53.5

 Sales of maintenance services for general industries rose as aresult of growth in orders.

003/201403/2015(Billions of Yen)

(%)

1.8

4

3.4 2.5
0.0

1.8

1.3

-0.8

Operating Income Operating income turned positive as a result of substantial

0

reduction in construction losses and the impact of increased
revenue.

-1.7
-1.8

03/2014
Operating income margin

03/2015*-4

denotes revised projections

5

I. Consolidated Financial Results for the Fiscal Year
Ended March 31, 2015

AssetsLiabilities and Net Assets(Billions of Yen)

274.9

293.2
67.5

95.3

(- 27.8)

80.7
67.2

(+ 13.6)

74.0

77.9

Mar. 31, 2014

293.2
Cash,
deposits andmarketablesecurities

274.9
55.8

69.7

Liabilities(+ 14.0)

Other current
assetsTangible
fixed assets

219.2

223.5

Net assets(- 3.8)70.9
34.6(Billions of Yen)

Other fixed
assets(+ 4.3)(+ 36.3)
Mar. 31, 2015

Mar. 31, 2014

Mar. 31, 2015

 Cash and deposits decreased due to business acquisition in Europe and the acquisition of treasury shares.
 Other fixed assets increased, reflecting the acquisition of technology-related assets as a result of businessacquisition and the recording of goodwill.
6II. Consolidated Business Plan for the
Fiscal Year Ending March 31, 2016
1. Key Assumptions
2. Overview

3. Orders, Sales, Operating Income, and Operating Income Margin
4. Water Treatment Chemicals
5. Water Treatment Facilities (for the electronics industry)
6. Water Treatment Facilities (for general industries)
7. Service Business Revenue
8. Overseas Businesses (sales by region and business)
9. Capital Expenditures, Depreciation, and R&D Expenses
10. Dividend Policy

II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

Water Treatment Chemicals
 In the Japanese manufacturing industry, production activity
will recover at a modest pace.
 In Europe, demand will recover at a slow pace, while Asia
will continue to see robust growth.

Water Treatment Facilities
 In the Japanese manufacturing industry, capital
expenditures will recover at a slow pace. However,investment to replace aging equipment is expected.
 Overseas, competitive companies will continue to makecapital investments, and outsourcing demand is expected toemerge.

7II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

(Billions of Yen)
Fiscal Year to
March 2015
ActualFiscal Year to
March 2016
Projection

Year-on-Year
ChangeOrders

181.3

217.0

+19.7%Net Sales

189.4

216.0

+14.0%

Operating Income

19.4

19.5

+0.3%

Ordinary Income

18.9

20.0

+5.6%

Net Income

10.4

12.3

+17.9%

 Orders in the water treatment chemicals business will increase sharply as a result of business acquisition, and orders in
the water treatment facilities business will also grow, especially overseas.
 Sales in the water treatment chemicals business will rise considerably due to business acquisition, while sales in the water
treatment facilities business will remain at the same level.
 Operating income is expected to remained unchanged, with higher SG&A expenses offset by improvement in the cost of
sales ratio and the impact of increased revenues.
 The tax burden rate is expected to be lower.
8

II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

Water treatment chemicals

Water treatment facilities

Orders(Billions of Yen)

200

181.3
59.4

Sales
217.0

(Billions of Yen)

200

60.0

121.9

130.8

03/2015

03/2016

86.2

0

129.4

129.8

03/2015

03/2016

Operating Income Margin(Billions of Yen)

(%)

19.4

19.5

7.9

7.7

11

0

216.0

100

Operating Income
22

189.4

86.2

100

0

Total

14

13.1
10

11.6

11.8

03/2015

03/2016

6

10.3
8.9

03/2015

9.1
9.0
8.9
03/20169

II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

(Billions of Yen)

Orders90

 Domestic orders are expected to remain flat amid modest
45

recovery in customer’s capacity utilization.

86.2

 Overseas orders will likely increase due to business acquisition

59.4

in Europe and continued expansion in Asia.
003/2015

03/2016(Billions of Yen)

Sales

90

 Domestic sales are expected to remain flat amid modest
45

recovery in customer’s capacity utilization.

86.2

 Overseas orders will likely increase due to business acquisition

60.0

in Europe and continued expansion in Asia.
003/2015

03/2016(Billions of Yen)

(%)

12

14

13.1

0

 Excluding the effect of business acquisition, operating income is

8.9

6

7

7.9

7.7

03/2015

03/2016

Operating Income
expected to increase slightly due to the impact of increased
revenue and improvement in the cost of sales ratio.

0

Operating income margin10II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

(Billions of Yen)

Orders80

 Overseas orders are expected to rise, especially in China and
40

South Korea.

69.3

72.2

 Orders for hardware in Japan are expected to increase because
there were cancellations the fiscal year before.

0

03/2015

03/2016(Billions of Yen)

Sales

80

 Sales of hardware overseas are predicted to decline, as progress
40

75.4

with construction comes to an end.

73.9

 Sales in ultrapure water supply business will remain almost flat.
 Sales in the precision cleaning business will drop due to0

03/2015(Billions of Yen)

(%)

14

14

12.9

13.5

7

0

withdrawal from unprofitable business.

03/2016

 Operating income is expected to increase due to improvement in
7

9.7

10.0

03/2015

03/2016

Operating Income
the cost of sales ratio.

0

Operating income margin11

II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

(Billions of Yen)

Orders60

 Orders of general industries hardware will likely increase as
30

52.6

investment to replace aging equipment is expected.

58.6

 Orders for maintenance services for general industries will also
increase due to stronger proposal activities

0

03/2015

03/2016(Billions of Yen)

Sales

60

 Sales of general industries hardware are predicted to rise due to
30

54.0

increased orders.

55.9

 Sales of maintenance services for general industries are also
predicted to rise due to increased orders.

003/2015

03/2016(Billions of Yen)

2.4

(%)

3.4

3.2

1.2

0.0

4

 Operating income is expected to remain flat, with higher SG&A
2

1.8

1.8

03/2015

03/2016

Operating Income
expenses offsetting the impact of increased revenues.

0Operating income margin12

II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment chemicals
Water treatment facilities (services)
Water treatment facilities (hardware)(Billions of Yen) 100.5

100(Billions of Yen)

193.8
180.1

34.8

189.4

178.1

86.2

56.4
56.1

60.0

58.8

157.0

100.5

0

146.4

90.3

150.4

91.5

32.4

31.6

8.5

8.1

49.4

51.8

9.3
182.6

110

90.3

216.0

220

91.5

50

94.9

96.4

32.2

31.6

Ultrapure watersupply business

6.9

Tool cleaning

57.9

Maintenance,
etc.

8.3

154.9

94.9

96.4

36.7

33.6

27.7

34.5

33.4

03/201203/201303/201403/2015

03/2016
Projection

Servicebusiness
revenue

0

56.4

54.4

03/2012 03/2013 03/2014 03/2015 03/2016
Projection

 In the fiscal year ended March 31, 2015, service business revenue increased due to growth in maintenance services.
 In the fiscal year ending March 31, 2016, growth in water treatment chemicals and maintenance services is expected,
and service business revenue is expected to account for 85% of total sales.
13II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

Sales by Region
Asia

N. America

Sales by Overseas Business Segment

EuropeOther(Billions of Yen)

Water treatment chemicals

Water treatment facilities(Billions of Yen)

66.9
3.7

70

66.9

70

22.3

35

0

29.3
3.0
1.4
2.3

30.5
3.0
1.2
2.3

33.6
3.3
1.3
1.8

22.5

23.9

27.2

03/201203/201303/2014

39.1
3.5
1.5
2.0

32.1

03/2015

39.1

3.2
35

43.8

33.6

29.3

30.5

11.5

12.0

15.9

17.8

18.5

17.7

03/201203/201303/2014

17.3

37.8

03/2016
Projection

0

21.8

23.1

03/2015

03/2016
Projection

 In the fiscal year ended March 31, 2015, overseas business sales increased, especially in Asia.
 In the fiscal year ending March 31, 2016, European sales and water treatment chemicals sales are
expected to increase considerably due to the contribution of business acquisitions.

 The overseas sales ratio will climb to 31%.
14

II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

Capital Expenditures and Depreciation
Capital expenditures Capital expenditures(ultrapure water(excl. ultrapure watersupply business)
supply business)

R&D Expenses

Depreciation(Billions of Yen)

R&D expenses

Percentage of net sales(Billions of Yen)

18

6

16.5

5.3 14.3

14.4

2.3

3

13.7

6.0

3

2.5

13.0

8.5

9

(%)

2.5

5.3

4.5

4.4

03/201403/2015

1.5

2.8
0

2.5

2.5

3.5

03/201403/2015

03/2016
Projection

 In the fiscal year ended March 31, 2015, capital
expenditures of the ultrapure water supply businessincreased.
 In the fiscal year ending March 31, 2016, capital
expenditures of the ultrapure water supply business are
expected to continue increasing sharply.

0003/2016
Projection

 In the fiscal year ending March 31, 2016, R&D expenses
will rise sharply, reflecting the concentration of efforts on
the development of differentiated products andtechnologies.
15II. Consolidated Business Plan for the Fiscal Year Ending
March 31, 2016

(Yen)

50

32
28

25

22
18

+4

34
+2

36
+2

38
+2

40
+2

42
+2

44
+2

46
+2

48
+2

+6

+4

+2

0

03/2005

03/2006

03/2007

03/2008

03/2009

03/201003/201103/201203/201303/201403/2015

03/2016
Projection

Basic Dividend Policy
Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.
Setting a payout ratio of 30 to 50% as our target, we will continuously work to increase dividends,
making decisions based on the payout ratios for the most recent five years.
16III. Review of Previous Medium-Term Management
Plan “TA-14 (Take Action 2014)”

1. Operating Performance Targets and Operating Performance Trends
2. Segment Results
3. Expansion of Global Business “Overseas Sales”
4. Expansion of Global Business “Measures and Results”
5. Service Business Revenue
6. Creation of New Products and New Services

7. Improvement of Capital Efficiency
8. Issues to be AddressedIII. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”(Billions of Yen)

TA14

TA14
Fiscal Year to Fiscal Year to Fiscal Year to Fiscal Year to
Fiscal Year to
March 2012
March 2013
March 2014
March 2015
March 2015
ActualActualActualActualRevised Targets

Orders

197.3

186.7

173.5

181.3

210.0

Net Sales

193.8

180.1

178.1

189.4

205.0

Operating Income

29.4

21.0

14.9

19.4

30.0

Ordinary Income

30.4

22.0

16.1

18.9

30.5

Net Income

16.5

11.5

9.4

10.4

18.5

Overseas Sales

29.3

30.5

33.6

39.1

55.0

Overseas Sales
Ratio

15.1%

16.9%

18.9%

20.6%

26.8%

 Following declines in sales and income for two consecutive years in the fiscal year to March 2013 and the fiscal year to
March 2014, both sales and income increased and operating performance targets were achieved in the fiscal year to
March 2015. However, improvement of profitability still remained a challenge.
 In overseas business, a start was made on creating a base in Europe in preparation for dramatic overseas businessexpansion through business acquisition.
17

III. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”

Water treatment chemicals

Water treatment facilities

Orders(Billions of Yen)

200

197.3
56.7

Sales
(Billions of Yen)

181.3

200

30

189.4

56.4

60.0

137.3

129.4

03/201203/2015

100

140.5

121.9

03/201203/20150

Operating Income(Billions of Yen)

193.8

59.4

100

0

Total

Operating Income Margin
(%)

29.4
9.3

17

19.4
7.9

15

16.4
15.2
14.7

11

13.1
10.3
8.9

20.1
11.6
0

03/201203/2015

5

03/201203/201518

III. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”

Sales by Region
Asia

N. America

Sales by Overseas Business Segment

EuropeOther

Water treatment chemicals

Water treatment facilities(Billions of Yen)

1.5
2.0

3.0
1.4
2.3

(Billions of Yen)

3.5

39.1
29.3

17.8
22.5

03/2012

29.3

11.5

21.8

39.1

17.3

32.1

03/2015

03/201203/2015

 Global sales increased through efforts to steadily tap into
water treatment demand in Asia.
 The overseas sales ratio climbed to 20.6%.

19

III. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”

Acquisition of water treatment business
in Europe

Receipt of order for ultrapure watersupply business in South Korea

Overview of acquired business

Overview of ultrapure water supply businessCore
products

Sales

Employees

Water solutions, paper solutions (sizing and wet
strength additives), alumina compounds (The key
products are water treatment, civil additives,
additives for paper process chemicals)

Customer

173 million Euro (24.3 billion yen*)

Timing ofcommencement ofwater supply

Note: * FY2014 業績
results* FX rate: 1 Euro = 140.4 yen

Business operating
entityApproximately 590

Acquisition of platform in Europe

New semiconductor plant to beconstructed in South Korea by SK Hynix
Inc. (South Korean)June 2015 (planned)
Hansu Technical Service Ltd.
(Kurita Water Industries’ wholly owned
subsidiary in South Korea)

First time to provide ultrapure watersupply service on a large scale to a local
company overseas

Foothold to become global company
20III. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”

Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment chemicals
Water treatment facilities (services)(Billions of Yen)

Water treatment facilities (hardware)

100.5
94.9

100
(Billions of Yen)

200

193.8

189.4

56.4

34.8

32.2

Ultrapure watersupply business

9.3

8.3

Tool cleaning

56.4

54.4

Maintenance,etc.

03/201203/2015

60.0
157.0

154.9

50

100

100.5

94.9

36.7

34.5

03/201203/201500 Revenues of water treatment chemicals increased, but revenues of maintenance services,
ultrapure water supply business and tool cleaning decreased.
 The service business ratio was 81.8%.
21

III. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”

New products
Newly developed
multi-functional polymer

Standard-type wastewater
treatment equipment

Development of new polymer material
with high functionality throughenhancement of basic technology.

Realization of standardization of wastewater
treatment equipment, cost reduction, shorter
delivery times and space saving.

Superior products

Strengthening of cost competitivenessNew services
K-eco maintenance service

S.sensingUtilization of sensing
technology to optimize
chemical injection control.

Installation of water
quality sensors, anddelivery of optimal
maintenance basedon data analysis.

Visualization and sharing of issues faced by customers
22III. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”

Uses of Cash¥80.3 billion¥79.6 billion
 Dividend increase for the 11th
consecutive fiscal year

Dividends
Shareholder
returnsSharebuybacks

 Repurchased shares in the fiscal year
to March 2013 and the fiscal year to
March 2015.

Operatingcash flow
M&A
Investment
for growth

CapitalExpenditures
Generation of cash Acquisition of European water
treatment business Investment in ultrapure water supply
business for domestic semiconductor
and liquid crystal display, etc.

Uses of cash

For three years from the fiscal year ended March 31,
2013 to the fiscal year ended March 31, 2015
 Operating cash flow was applied to investment for growth and shareholder returns.
23

III. Review of Previous Medium-Term Management Plan “TA-14(Take Action 2014)”

Improvement of profitability
 Strengthening of engineering, procurement and construction management functions by overseas
operating companies in water treatment facilities business Expansion of line-up of standard-type equipment
 Strengthening of competitiveness of core boiler and cooling water treatment chemicals

Promotion of integration of acquired business and business expansion overseas
 Business integration and early demonstration of synergies

Expansion of domestic business through demonstration of Group’s comprehensive capabilities Creation of competitive products and services (business model)

24IV. Outline of New Medium-Term Management Plan
“CK-17 (Competitive Kurita 2017)”

1. Basic Theme, Basic Policy and Priority Measures
2. Operating Performance Targets
3. Segment Projections
4. Cultivation of New Markets
5. Optimization of Production System and Utilization of Group Network

6. Creation of Competitive Products and Services
7. Improvement of Capital Efficiency

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

Basic Theme

Competitive human resources,
competitive structures, and competitive products
Basic Policy

We will conduct a radical review of every operation to provide high added-value
for our customers

Priority Measures

1

2

3

4

Cultivate newmarkets

Optimize production
system and utilize
global network

Create competitive
products andservices

Improve capitalefficiency

25

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”(Billions of Yen)

Fiscal Year to
March 2015
ActualFiscal Year to
March 2018
Projection

Average growthrate over the 3years

Net Sales

189.4

235.0

+7.5%

Operating Income

19.4

24.5

+8.0%

Operating Income
Margin

10.3%

10.4%

Overseas Sales

39.1

81.3

Overseas Sales Ratio

20.6%

34.6%

‒
+27.6%‒

 Sales will increase sharply due to business acquisition.
 A double-digit operating income margin will be maintained.
26

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

Water treatment chemicals

Water treatment facilities

Orders(Billions of Yen)

Sales
240.0

240

181.3

(Billions of Yen)

240

97.0

235.0
189.4
60.0

59.4
120

0

121.9

143.0

03/2015

03/2018(Billions of Yen)

0

129.4

138.0

03/2015

03/2018

Operating Income Margin
24.5

26

(%)

14

13.1

19.4
11.0

0

97.0

120

Operating Income

13

Total

7.9

10

11.6

13.5

03/2015

03/2018

6

10.3
8.9

03/2015

11.3
10.4
9.8

03/2018
27

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

1

To become a world-class water treatment chemicals company
Low-cost model based oncommodity products

Sales-oriented model based on
differentiated products

High-added-value model based on
total solutions

GlobalBASF
DOW

ECOLAB
NALCO

NALCO

GE
KemiraSolenisGE

BuckmanLocal

eka
Low profitability

High profitability

28

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

2

Sales of water treatment chemicals business by overseas region(Billions of Yen)

Other

4.9

Other

3.7
Asia
Asia

Other

3.5
Europe

1.5

Asia

17.3

12.0

Europe

43.8

53.1

16.9
Europe25.4

22.3

N. America

N. America

0.3

1.0
03/2015

21.6

03/2016

N. America

1.2
03/2018

 We acquired water treatment chemicals businesses in Europe and will also aim for further businessexpansion in North America.

29

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

Development of global system with four “poles” including Japan(Billions of Yen)

EuropePromotion of
integration of acquired
businesses

FranceItaly
Spain

Japan / Asia

SwedenPolandGermany
SlovakHungary
GreeceTurkeyOverseas Sales

Autonomous growthAngangDalianTianjing
JiangyinSouth Korea
SuzhouShanghai
Guangzhou
TaiwanVietnamN. America
Exploration of M&A
opportunities

Thailand
81.3
39.1

MalaysiaBrazilSingapore
03/2015
Asia

N. America

03/2018
EuropeWater treatment chemicals
Other

Indonesia

 Optimize functions and roles of production bases and strengthen engineering, procurement andconstruction management functions.
 Expand sales of products and services utilizing Group network.

Water treatment facilities

30

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

1

Provide original services by demonstrating comprehensive strength
Proposal activities using IT
 K-eco maintenance service

 S.sensing

Comprehensive proposal-type business Reduce total plant costs of existing customers, including equipment of other manufacturers
 Expand ultrapure water supply business to new markets (new domestic electronics
manufacturers and overseas electronics manufacturers)

Strengthening of cost competitiveness Develop compact standardized water treatment equipment and expand applications.

31IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

2

Ultrapure water supply business sales forecast(Billions of Yen)
40

+2.0
+4.0

32.2

Acquisition of newplant contracts

Contracts foraugmentation ofexisting plants-7.6
Expiration of contracts

30.6

Investment 6.0
Investment 12.020

003/2015
Actual03/2018
Forecast

Note: * Forecasts involve an element of uncertainty.

32

IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

3

Strengthening of R&D capability
Reorganization and expansion of core technologies

Analysis

Corrosion prevention
and dispersion

Coagulation andflocculation

Sterilization andbacteriostasis

Biologicalengineering

Adsorption anddeionization

Membrane separationand filtration

Surface treatment

Technology integration and development synergies with
Kurita Europe APW GmbH (KEAG)
Development(1)

Development of paper process chemical
technologies

Development(2)

Development of polymer manufacturing
technologies

33IV. Outline of New Medium-Term Management Plan “CK-17(Competitive Kurita 2017)”

Uses of Cash (Projections)¥81.0 billion¥81.0 billion
Dividends

Sharebuybacks
Operatingcash flow

M&A

CapitalExpenditures
Generation of cash Aim for average payout ratio of 3050% over 5 years
 Prioritize investment in business andalso consider share buybacks if there
are any surplus funds.
 Explore M&A opportunities in North
America.
 Investment in ultrapure water supply
business at new plants of customers
in Japan and overseas, etc.

Uses of cash

For three years from the fiscal year ended March 31,
2016 to the fiscal year ending March 31, 2018

 Regarding the level of cash, we will endeavor to curb surplus funds upon securing operating funds andcontingency funds.
 We will aim to maintain ROE at a level that exceeds cost of shareholders’ equity.

34

Reference Material(Billions of yen)

+0.9
+3.5
14.9

Decrease in
SG&A expenses+0.1
Effect of change incost of sales ratio

19.4

Impact ofincreased revenue

03/201403/2015

Note: The effect of change in the cost of sales ratio is calculated using the gross profit margin.
35

■URL■

http://ir.kurita.co.jp/■ M AI L ■ir@kurita.co.jp

Forward-looking Statements
This presentation contains forward-looking statements, business plan projections, and judgments based on
information available to management at the time of writing. Due to the existence of a variety of risk factors
and uncertainties, actual results may differ from those specified or implied by these forward-looking
statements and projections.