Kurita Water Industries Ltd.
Results Presentation
for the Year Ended March 31, 2012
( Stock code : 6370 )May 2, 2012

Table of Contents

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2012
Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013
Ⅲ. Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)
Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)
Ⅴ. Reference Material

Consolidated Financial Results for the Fiscal Year Ended March 31, 2012

【 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, 2012

【1】 Financial Highlights(Billions of Yen)
Fiscal year to
March 2011
ActualFiscal year to
March 2012
ActualYear-on-yearchangeFiscal year to
March 2012
Initial projection

Orders

182.0

197.3

+ 8.4%

195.0

Net Sales

181.2

193.8

+ 6.9%

192.0

Operating Income

27.1

29.4

+ 8.3%

29.0

Ordinary Income

28.2

30.4

+ 7.9%

29.5

Net Income

17.1

16.5

- 3.4%

17.4

1

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2012

【2】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals

Water treatment facilities

Total

*

Orders(Billions of Yen)
200

182.0
56.7

Sales
197.3 195.0
56.7

125.2

140.5 138.0

03/201103/2012

27.1
10.1

56.7

0

29.4

29.0

9.3

9.7

(%)
18

193.8 192.0
56.4

57.0

17.0

20.1

03/201103/2012124.5

137.3 135.0

03/201103/2012

Operating Income Margin
17.8
16.4 17.0

15

15

0

181.2

100

Operating Income(Billions of Yen)
30

(Billions of Yen)
200

57.0

100

0

denotes initial projection

15.0

15.2 15.1
14.7 14.3

19.3

13.7
12

03/201103/20122

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2012

【3】 Water Treatment Chemicals
Orders*Operating Income andOperating Income MarginSales

denotes initial projection*

denotes initial projection*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

12

30

0

56.7

03/201156.7 57.0

03/2012

30

0

56.7

03/2011【 Major areas of change in orders/sales 】
 Japan : Decrease in core products (-)
 Overseas : Increase in Asia and Europe (+)

56.4 57.0

03/2012

Operating income
Operating income margin
denotes initial projection
(%)

17.8

20

16.4 17.0

6

0

10

10.1

9.3

03/201103/20129.7

0【 Major determinants of change 】
 Increase of SG&A (-)
 Increase in raw materials prices (-)
 Impact of decline in revenue (-)

3

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2012

【4】 Water Treatment Facilities (for the electronics industry)
Orders*Operating Income andOperating Income MarginSales

denotes revised projection*

denotes revised projection*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

90

90

20

Operating income
Operating income margin
denotes revised projection

19.8

(%)

19.1

20

19.1

45

0

78.4

84.3 82.8

03/201103/2012【 Major areas of change 】
 Increase in hardware overseas (+)
 Increase in maintenance services
in Japan (+)
 Decrease in hardware in Japan (-)

45

0

76.9

79.6 81.1

03/201103/2012【 Major areas of change 】
 Increase in hardware overseas (+)
 Increase in maintenance services
in Japan (+)

10

10

15.2

0

03/201115.2 15.5

03/20120【 Major determinants of change 】
 Impact of revenue growth (+)
 Change in sales composition (-)
 Increase of SG&A (-)

4

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2012

【5】 Water Treatment Facilities (for general industries)
Orders*Operating Income andOperating Income MarginSales

denotes revised projection*

denotes revised projection*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

6

30

46.9

56.2 55.2

30

57.7 53.9

3

Operating income
Operating income margin
denotes revised projection
(%)

8.6

10

7.1

3.9

5

4.9

47.6

3.8

1.8
0

03/201103/2012【 Major areas of change 】
 Increase in orders from the electric
power industry (+)
 Increase in maintenance services (+)

0

03/201103/2012【 Major areas of change 】
 Increase in sales from the electric
power industry (+)
 Increase in maintenance services (+)

0

03/201103/20120【 Major determinants of change 】
 Impact of revenue growth (+)

5

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2012

【6】 Financial Condition
AssetsLiabilities and Net Assets(Billions of Yen)

(Billions of Yen)

271.1

271.1

253.3
69.4
55.1
( +14.3)

62.8

75.6

Cash, depositsandMarketablesecurities

253.3
61.1
53.9

Liabilities( +7.2)Other current
assets( +12.8)

199.4
106.6

98.4

210.0

Net assets

Tangible fixed
assets( -8.2)

28.8
Mar. 31, 201127.8

( -1.0)Mar. 31, 2012

Other fixed
assets( +10.6)
Mar. 31, 2011

Mar. 31, 20126

Consolidated Business Plan for the Fiscal Year Ending March 31, 2013
【 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【 9 】 Ultrapure Water Supply Business【10】 Capital Expenditures, Depreciation, and R&D Expenses【11】 Dividend Policy

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【1】 Key Assumptions
Water Treatment Chemicals Segment
 Continued robust demand in Asia and emerging economies
 Customers’ capacity utilization in Japan has recovered to aroundpre-earthquake levels but is unlikely to change much in future Concern over increase in raw materials prices

Water Treatment Facilities Segment
 Semiconductor and liquid crystal display (LCD) capital
expenditure varies with the product and customer Capital expenditure in general industries is largely unchanged
 Demand from the domestic electric power industry turns fullcycle through recovery efforts following the earthquake

7

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【2】 Overview(Billions of Yen)

Fiscal year to
March 2012
ActualFiscal year to
March 2013

Orders

197.3

201.0

+ 1.9%Net Sales

193.8

200.0

+ 3.2%

Operating Income

29.4

29.5

+ 0.4%

Ordinary Income

30.4

30.0

- 1.2%Net Income

16.5

17.5

+ 5.8%

Projection

Year-on-yearchange8

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【3】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals(Billions of Yen)
220

Orders
197.3

201.0

56.7

59.3

110

0

140.5

141.7

03/2012Actual03/2013
Projection

29.4

29.5

9.3

10.4

Sales

(Billions of Yen)
220

0

(%)
18

193.8

200.0

56.4

59.3

137.3

140.7

03/2012Actual03/2013
Projection

20.1

19.1

03/2012Actual03/2013
Projection

Operating Income Margin
17.5
16.4

15

15

0

Total

110

Operating Income(Billions of Yen)
30

Water treatment facilities

15.2
14.7

14.8
13.6

12

03/2012Actual03/2013
Projection
9

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【4】 Water Treatment Chemicals
OrdersOperating Income andOperating Income Margin

Sales

Operating income
Operating income margin(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

12

(%)

16.4

30

56.7

59.3

30

56.4

59.3

6

9.3

0

03/2012Actual03/2013
Projection

0

03/2012Actual03/2013
Projection【 Major areas of growth/decline in orders/sales 】
 Japan : Recovery in customers’ capacity utilization (+)
 Overseas : Increase in demand overseas, particularly in Asia (+)

0

03/2012Actual17.5

10.4

03/2013
Projection

20

10

0

【 Major determinants of change 】
 Impact of revenue growth (+)
 Increase of SG&A (-)
 Increase in raw materials prices (-)

10

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【5】 Water Treatment Facilities (for the electronics industry)
OrdersOperating Income andOperating Income Margin

Sales

Operating income
Operating income margin(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

90

90

20

45

0

84.3

03/2012Actual85.2

03/2013
Projection【 Major areas of change 】
 Increase in maintenance services
in Japan (+)
 Decrease in the ultrapure watersupply (-)

45

0

79.6

84.1

03/2012Actual03/2013
Projection【 Major areas of change 】
 Increase in hardware overseas (+)
 Increase in maintenance services inJapan (+)
 Decrease in the ultrapure water supply (-)

19.1

(%)

17.8

10

0

20

10

15.2

15.0

03/2012Actual03/2013
Projection0【 Major determinants of change 】
 Impact of revenue growth (+)
 Change in sales composition (-)
 Increase of SG&A (-)

11

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【6】 Water Treatment Facilities (for general industries)
OrdersOperating Income andOperating Income Margin

Sales

Operating income
Operating income margin(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

6

(%)

10

8.6
7.2

30

0

56.2

03/2012Actual56.5

03/2013
Projection【 Major areas of change 】
 Increase in maintenance services (+)
 Decrease in orders from the electric
power industry (-)

30

0

57.7

03/2012Actual56.6

03/2013
Projection【 Major areas of change 】
 Increase in maintenance services (+)
 Decrease in sales from the electric
power industry (-)

3

5

4.9

0

03/2012Actual4.1

03/2013
Projection0【 Major determinants of change 】
 Impact of decline in revenue (-)
 Increase of SG&A (-)

12

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【7】 Service Business Revenue
Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment chemicals
Water treatment facilities (services)
Water treatment facilities (hardware)(Billionsof Yen)200

199.7(Billionsof Yen)
100

200.0

193.8

98.9

34.6

58.3

59.3

56.4

157.2

161.3

157.0

98.9

100.5
98.4

Ultrapurewater supply
business

9.5

Tool
cleaning

60.7

Maintenance,
etc.

35.1

9.3
9.7

50

102.0

96.1

ServiceBusiness
Revenue

26.4

28.4

36.7

38.7

03/201003/201103/201203/2013
Projection

0

03/2009

31.8

152.8

152.1

42.5

34.8

13.1
10.2

102.0

96.1

56.7

53.7

100

100.5

23.9

181.2

178.5

98.4

61.9
53.6

51.3

03/201003/201156.4

003/2009

03/201203/2013
Projection

13

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【8】 Overseas Businesses
Sales by Region

Sales by Overseas Business Segment
Water treatment chemicals

Asia

N. America

EuropeOther(Billions of Yen)

(Billions of Yen)

40

37.4

29.3

20

Water treatment facilities

26.0

26.4

2.9
1.6
1.4

3.1
1.3
2.8

19.0

37.4

3.3
1.5
1.8

29.3

11.5
20

11.0

30.9
19.2

12.7

26.4

26.0

3.0
1.4
2.3

2.6
1.4
1.6
20.1

40

19.0

10.9

9.4
24.7

22.5
15.5

14.9

13.4

17.8

9.6
0

03/2009

03/201003/201103/201203/2013
Projection

0

03/2009

03/201003/201103/201203/2013
Projection

14

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013

【9】 Ultrapure Water Supply Business
Capital Expenditures

Sales(Billions of Yen)

(Billions of Yen)

52

40

26

20

52.0

34.6

35.1

34.8

03/201003/201103/2012

31.8

23.9

0

03/2009

5.7

3.9

5.3

03/201003/201103/20121.1
03/2013
Projection

0

03/2009

03/2013
Projection15

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013【10】 Capital Expenditures, Depreciation, and R&D Expenses
Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

Capital expenditures(excl. ultrapure
water supply business)

R&D Expenses

Depreciation
R&D Expenses

Percentage of net sales(Billions of Yen)

(Billions of Yen)

(%)

16

6

4

4.7

8

15.4

7.7

15.4

5.5
5.3

15.4

3

4.2

4.2

2.3

2.2

2.3

2

5.0
1.1

3.9

0

1.6
03/2011

2.4
03/20123.9
03/2013
Projection

0

03/201103/201203/2013
Projection

016

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2013【11】 Dividend Policy
(Yen)

44

32
28
22

22
18

+4

34
+2

36
+2

38
+2

40
+2

42
+2

+6

+4

+2

0

03/2005

03/2006

03/2007

03/2008

03/2009

03/201003/201103/201203/2013
Projection

Basic Dividend Policy
Kurita’s basic policy is to maintain stable dividends, and the company will work to increase
dividends while giving due consideration to trends in results and investments in its businesses.
17

Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)【 1 】 Operating Performance Targets and Results【 2 】 Segment Performance【 3 】 Achievements and Issues (1) : Service Business Expansion / Evolution【 4 】 Achievements and Issues (2) : Global Business Expansion【 5 】 Implemented Strategies : Global Business Expansion【 6 】 Achievement : New Business Area Creation / Expansion

Ⅲ. Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)【1】 Operating Performance Targets and Results
MP11(Billions of Yen)

Fiscal year to
March 2009
ActualFiscal year to
March 2010
ActualFiscal year to
March 2011
ActualFiscal year to
March 2012
ActualMP11
Fiscal year to
March 2012
Initial Targets

Orders

195.1

175.2

182.0

197.3

228.0

Net Sales

199.7

178.5

181.2

193.8

224.0

Operating Income

27.9

26.4

27.1

29.4

36.0

Ordinary Income

28.9

27.1

28.2

30.4

36.3

Net Income

16.3

17.3

17.1

16.5

20.6

Net sales (overseas)

26.0

19.0

26.4

29.3

32.0

Overseas sales ratio

13.0%

10.6%

14.5%

15.1%

14.3%

 Unable to exceed the level prior to the ‘08 financial crisis. Issues remain concerning business scale expansion
and sustainable growth.
 Targeted an increase in profits based on domestic service business but this was affected by business conditions.
 While overseas sales increased, the overseas sales ratio stayed at the level of 15%.
18

Ⅲ. Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)【2】 Segment Performance
Water treatment chemicals

Water treatment facilities

Total

*

Orders(Billions of Yen)
200

Sales

195.1

197.3 228.0

58.5

56.7

03/2009 Actual

140.5 165.0003/2012 Actual

Operating Income
27.9

29.4

36.0

8.4

9.3

10.5

193.8 224.0

58.3

56.4

141.4

137.3 161.0

63.0

(%)
17

03/2009 Actual

03/2012 Actual

Operating Income Margin16.4 16.7
15.2 16.1

15

15

0

199.7

100

136.6

(Billions of Yen)
30

(Billions of Yen)
200

63.0

100

0

denotes initial projection

14.4
14.0
13.8

25.5

19.5

20.1

03/2009 Actual

03/2012 Actual

13

03/2009 Actual

14.7 15.8

03/2012 Actual
19

Ⅲ. Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)【3】 Achievements and Issues (1) : Service Business Expansion / Evolution
Water treatment chemicals
Water treatment facilities (services)

Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment facilities (hardware)*(Billions of Yen)

200

denotes initial projection(Billions of Yen)

100

199.7

224.0

58.3

63.0

193.8

100

98.9

23.9

56.4

157.2

0

03/2009 Actual

45.0

100.5

34.0

34.8

Ultrapurewater supply
business

14.5

9.3

Tool cleaning

67.5

56.4

Maintenance,
etc.

50

100.5
61.9

42.5

116.0

13.1
157.0

116.0

98.9

36.7

03/2012 Actual

003/2009 Actual

03/2012 Actual

Customer business solution proposals for increasing productivity and environmental impact
mitigation have been taken up and contributed to maintaining stable profits.
20

Ⅲ. Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)【4】 Achievements and Issues (2) : Global Business Expansion
Sales by Region

Asia

Sales by Overseas Business Segment

N. America
EuropeOther*denotes initial projections(Billions of Yen)

29.3

30

26.0
2.9
1.6
1.4

3.0
1.4
2.3

32.0
2.6
1.7
2.4

Water treatment chemicals*(Billions of Yen)

30

29.3

32.0

11.5

12.5

17.8

19.5

26.0
11.0

15

15

20.1

22.5

25.3

14.9

0

Water treatment facilities
denotes initial projections

03/2009 Actual

03/2012 Actual

003/2009 Actual

03/2012 Actual

On the whole, business expansion overseas, particularly in Asia, progressed well, but the following issues remain :Chemicals : Expanded in all regions, but unable
to grow at a rate exceeding the economic
growth in those countries.

Facilities : Large electronics projects obtainedin China and South Korea will necessitate
maintenance services.
21

Ⅲ. Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)【5】 Implemented Strategies : Global Business Expansion

DalianSouth Korea

 Enhanced workforce(+12 persons )DalianEurope

South
Korea

 Enhanced workforce(+42 persons)TianjinSuzhou Enhanced workforce (+39 persons ) Set up water quality analysis andvarious testing functions

SuzhouShanghai
US

Guangzhou

TaiwanThailandBrazilSingapore
Water treatment
chemicals locations
Water treatment
facilities locations

Malaysia
Singapore Enhanced workforce(+12 persons ) Constructed of newplant (2011.6)

BrazilDoubled production
capacity
Indonesia

Enhanced the workforce at bases in China and South Korea, and built new plant in Brazil(increased of around 100 overseas business staff over the past 3 years)

22Ⅲ. Review of Medium-Term Management Plan, Make Progress 2011 (MP-11)【6】 Achievement : New Business Area Creation / Expansion
Electrolyzed Sulfuric Acid Generator Customer issues
Aim to increase productivity and mitigate
environmental impact in semiconductor
manufacturing processes while lowering costs

 Solution
Electrolyzed sulfuric acid generator using diamondelectrode for resist removal

 Results
1. No aqueous hydrogen peroxide is used
2. Consumption of sulfuric acid can be
reduced to about one-tenth of theconventional level by recycling sulfuric acidGreen Sulfaceed KDTM

3. Ensure stable resist removal effectObtain large orders from Korean semiconductor manufacturers by using the opening createdby electrolyzed sulfuric acid generators to engage in their manufacturing processes
23Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【 1 】 Basic Theme and Vision in 3 Years【 2 】 Operating Performance Targets【 3 】 Segment Performance【 4 】 Key Strategies (1) : Overseas Business Growth [Enhance Business Drive]【 5 】 Key Strategies (1) : Overseas Business Growth [Bolster Foundation]【 6 】 Key Strategies (1) : Overseas Business Growth [Business Planning by Region]【 7 】 Key Strategies (1) : Overseas Business Growth [China Business Plan]【 8 】 Key Strategies (2) : Dominant reliability and domestic market growth【 9 】 Key Strategies (3) : Quick Creation of New Products and New Businesses【10】 Key Strategies (4) : Increase Management Efficiency and Capital Efficiency

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【1】 Basic Theme and Vision in 3 Years
Basic Theme :Execution and Evolution

Dramatic growthof overseas
business

Dominant
reliability andmarket share
growth indomestic business

New products andbusinesses that
help resolve water,energy and foodproblems

Products, technologies and services capable of winning against international competition
Improvement of management efficiency and capital efficiency
Enhance risk management and other Group management/administrative functions
24

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【2】 Operating Performance Targets(Billions of Yen)
Fiscal year to
March 2012
ActualFiscal year to
March 2015
Projection

3 Year Average
Growth Rate

Orders

197.3

240.0

+ 6.7%Net Sales

193.8

235.0

+ 6.6%

Operating Income

29.4

36.0

+ 7.0%

Ordinary Income

30.4

36.5

+ 6.3%Net Income

16.5

22.0

+ 10.0%Net sales (overseas)

29.3

64.4

+ 30.2%

Overseas sales ratio

15.1%

27.4%

-

 Quantitative increase planned by expanding sales overseas.
 Maintain profitability while investing in overseas business foundations.
25

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【3】 Segment Performance
Water treatment chemicals

Water treatment facilities

Orders(Billions of Yen)
240

Sales
240.0

197.3

(Billions of Yen)
240

235.0
193.8

68.9

56.7
120

140.5
03/2012Actual

171.1

36.0
29.4

137.3
0

03/2015
Projection

Operating Income(Billions of Yen)
36

69.0

56.4

120

0

Total

(%)
19

03/2015
Projection

Operating Income Margin
18.4

12.7

9.3
16

18

20.1

03/2012Actual

166.0

16.4
15.2
14.7

23.3

15.3
14.0

0

03/2012Actual03/2015
Projection

13

03/2012Actual03/2015
Projection

26

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【4】 Key Strategies (1) : Overseas Business Growth [Enhance Business Drive]
Dramatic Growth of Overseas Business / Sustainable Profits

Chemicals
Investment
Necessary to
Bolster Overseas
Business
Foundation

MaintenanceBusiness
capabilities that
other companies
don’t have

HardwareDramatic
andContinuousBusiness
GrowthConnect the Kurita Group’s
strengths to achievements
27

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【5】 Key Strategies (1) : Overseas Business Growth [Bolster Foundation]
Localize investment and feasibility tests tomaintain supply structure for resins andmembranes and advanced analytical equipment
Development of products that can win against overseas
competition and which meet the needs in overseas
markets, service framework upgrade

Overseas net sales and sales ratio(Billions of Yen)
70

35

Add Local Employees / Enhance Human Resources
Secure and train personnel capable of responding to local
customers’ needs and proposing solutions to issues they
face (increase of around 380 overseas business staff
planned over the next 3 years)

29.3
15.1

Chemicals : Acquire sales network and technologies
Facilities : Increase design, installation and engineering
capabilities

44.2

17.8
0

03/2012 Actual

03/2015 Projection

Facilities(net sales)

0

Sales ratio[ Profit ]Chemicals

Hardware

Overseas, we will expand our scope with hardware,and bridge this with the increase in demand formaintenance and chemicals (from plant entrance
to exit) and thereby continuously grow earnings

15

11.5

Chemicals(net sales)

Bolster Tie-ups with Local Partners,
Implement alliances and M&As

(%)
30

64.4
27.4
20.2

Maintenance[Sales ]28

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【6】 Key Strategies (1) : Overseas Business Growth [Business Planning by Region]
Water treatment chemicals

Water treatment facilities

Asia (including China)(Billions of Yen)

(Billions of Yen)

54.4

60

12.5
30

22.5
7.1

41.9

15.5
0

Europe03/2012Actual03/2015
Projection

RO chemicals,
wastewater reclaim(water recycling)Electrolyzed sulfuric
acid generator(semiconductor
process)
Pursuit of allianceswith local
installation/engineering companies(facilities)

4

2

2.5
1.4
0

03/2012ActualNorth America

03/2015
Projection

Other (Brazil, etc.)(Billions of Yen)

(Billions of Yen)

4

3.2
2.3

1.0

2

0

RO chemicals(Middle East)Pursuit ofalliances andM&As (chemicals)

2.3

2.2

03/2012Actual03/2015
Projection

4
Electrolyzed
sulfuric acidgenerator(semiconductor
process)
Pursuit ofalliances andM&As (chemicals)

4.2

2

3.0
0

03/2012ActualContribution by
new plant in Brazil(chemicals)

03/2015
Projection29

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【7】 Key Strategies (1) : Overseas Business Growth [China Business Plan]
Assignment of Executive Officer Overseeing China
Bolster integrated business activities by Kurita Water
Industries (Dalian) (chemicals), Kurita Water Industries(Suzhou) (facilities) and Kuritec Shanghai (maintenance)

Increase investment in Kurita Water Industries (Suzhou) Ltd

China Revenue

12.3(Billions of Yen)

12

400 million yen increase planned for June 2012

5.0

Chemicals
Key Markets : Petroleum, petrochemicals, generalindustries, Seawater desalination (including urban waste)
Key Products : Cooling water treatment chemicals, RO
chemicals, chemicals for fly ash

6

5.6
2.1

Facilities
Key Markets : Electronics (semiconductors, LCDs, etc.),
recycled water market (including recycling sewage)
Key Products : ultrapure water systems, wastewater
reclamation systems, etc.

Use wastewater reclamation to cultivate new market
by China’s water shortage and regulation tightening

7.3

3.4
0

03/2012ActualWater treatment
chemicals

03/2015
Projection

Water treatment
facilities

30

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【8】 Key Strategies (2) : Dominant reliability and domestic market growth
Bolster Earnings Base by Increasing Market Share in Japan
Sensing, consulting technologies, etc.

Technology

High valueadded products

Products

Solve
Customers’
Problems

Service

Synergy between
chemicals,
facilities, andmaintenance

Boost market sharewith the group’s
integrated strengths

31

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【9】 Key Strategies (3) : Quick Creation of New Products and New Businesses

Feedback

Increase
Market Share

New Market
Cultivation

Solve domestic andoverseas customers’issuesFood
water

Quick developmentof new products andtechnologies

Cutting-edge
technology

Energy
water

Space
water

Feedback

Bolster Core Technologies
Membranes

Biotreatment

Polymers

Functional
water

Advancedanalyticalsensing32

Ⅳ. Overview of New Medium-Term Management Plan, Take Action 2014 (TA-14)【10】 Key Strategies (4) : Increase Management Efficiency and Capital Efficiency

Increase Management Efficiency
and Capital Efficiency
Increase rate of return on invested capital(Billions of Yen)

Use of cash
1. Investment in Growth Fields
Capital investment, R&D, stronger partnerships,
M&A, alliances to bolster the businessfoundation overseas
2. Enhance Shareholder Returns
Consecutive dividends : Targeting payout ratio of30%
Share buybacks : Flexible and expeditious
judgment based on business environment,
opportunities for investment and stock price level

MP11 results

TA14 forecast

FYE Mar.31,2010
to Mar.31,2012(accumulated)FYE Mar.31,2013
to Mar.31,2015(accumulated)

Capitalexpenditure

20.7

13.0 *

Depreciation &amortization

45.6

48.5

R&D expenses

12.4

14.0

SG&A

107.0

117.6

*Capital expenditure which has already been decided as ofMarch 31, 2012.

33

Reference Material

Ⅴ. Reference Material

Analysis of Changes in Operating Income for the Fiscal Year Ended March 31, 2012
(Billions of Yen)

27.1

3.5

(0.2)

(0)

Effect of raw
materials
prices

Effect ofchange in costof sales ratio*(1.0)
Increase in
SG&A
expenses

29.4

Effect ofrevenue
growth*≈03/201103/2012*The effects of revenue growth and change in the cost of sales ratio are calculated using the gross profit margin.
34

Kurita Water Industries Ltd.
■ U R L ■http://www.kurita.jp/■ M A I 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.