Kurita Water Industries Ltd.
Results Presentationfor the Year Ended March 31, 2011
( Stock code : 6370 )May 2, 2011

Table of Contents

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

【 1 】 Financial Highlights【 2 】 Impact of Great East Japan Earthquake【 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 】 Analysis of Changes in Operating Income for the Fiscal Year Ended March 31, 2011
【 8 】 Financial Condition【 9 】 Share Buyback

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

【1】 Financial Highlights(Billions of Yen)
03/201003/2011Year-on-yearchangeRevisedprojection
issuedJan. 31, 2011

Orders

175.2

182.0

+ 3.9％

190.0

200.0

Net Sales

178.5

181.2

+ 1.5％

185.0

195.0

OperatingIncome26.427.1+ 2.9％

27.5

29.5

Ordinary
Income27.1

28.2+ 3.9％

28.0

30.0

Net Income

17.3

17.1

- 0.9％

16.5

17.3

Initialprojection

1

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

【2】 Impact of Great East Japan Earthquake

Direct impact on Kurita was relatively small
Kurita has no production facilities in the affected Tohoku region,
and although it sustained some damage to buildings at offices in
the region, no personnel were injured.

Impact on goods distribution
Deliveries of chemicals and procurement of raw materials wereaffected by distribution stoppages.

Decrease in orders and sales
The earthquake happened at the end of the fiscal year, so orders
and sales were reduced due to postponement and cancellation offacility renewals.

2Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

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

Water treatment facilities

Total*Orders(Billions of Yen)
200

Sales

175.2

182.0 190.0

53.4

56.7

121.8

125.2 132.1

03/201003/2011

026.4

27.1

27.5

8.2

10.1

10.1

(%)
1815150178.5

181.2 185.0

53.7

56.7

124.8

124.5 127.7

03/201003/2011

57.3

100

Operating Income(Billions of Yen)
30

(Billions of Yen)
200

57.9

100

0denotes revised projection

18.2

17.003/2010

03/2011

17.4

Operating Income Margin17.8 17.6

15.2
14.8
14.6

15.0 14.9
13.7 13.6

1203/201003/20113

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

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

denotes revised projection*denotes revised projection*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

10

Operating income
Operating income margin
denotes revised projection
(%)

17.6

15.2

30053.4

56.7 57.903/201003/2011

300

53.7

56.7 57.303/201003/2011【 Major areas of growth/decline in orders/sales 】
 Japan: Increase for mainstay products (+)
 Overseas: Substantial growth in Indonesia, China, Singapore, Taiwan, Brazil, etc. (+)

10.1

5

8.2

020

17.803/2010

1010.103/2011

0【 Major determinants of change 】
 Impact of revenue growth (+)
 Efforts to reduce cost of sales (+)

4Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

【5】 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

20.9(%)

19.8

22

19.4

45

71.0

003/2010

78.4 79.403/2011

451067.3003/2010

76.9 77.503/2011【 Major areas of change 】
 Substantial increase in hardware overseas (+)
 Increase in hardware in Japan (+)
 Recovery in maintenance services (+)
 Marginal increase in the ultrapure water supply business (+)
 Decrease in tool cleaning services (-)

01114.0

15.2 15.1

03/201003/20110【 Major determinants of change 】
 Effect of improved cost of sales (+)
 Recovery in maintenance services (+)
 Cost increases in the ultrapure watersupply business (-)

5

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

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

denotes revised projection*denotes revised projection*(Billions of Yen)

(Billions of Yen)

60

60

303050.8(Billions of Yen)

Operating income
Operating income margin
denotes revised projection
(%)

7.2

8

4

57.5

2

4.1

3.9
4

47.6 50.1

46.9 52.6

4.6

1.8003/201003/2011【 Major areas of change 】
 Recovery in maintenance services (+)
 Decline in hardware (-)
 Decline in orders from the electric
power industry (-)
 Decline in soil remediation (-)

003/2010

03/2011【 Major areas of change 】
 Recovery in maintenance services (+)
 Decline in hardware (-)
 Decline in soil remediation (-)

003/2010

03/20112.30【 Major determinants of change 】
 Recovery in maintenance services (+)
 Decline in hardware (-)
 Decline in soil remediation (-)

6

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

【7】 Analysis of Changes in Operating Income for the Fiscal Year Ended March 31, 2011
(Billions of Yen)

26.4

+ 1.3

Effect ofrevenue
growth*

△0.1

+ 0.1

Effect of raw
materials
prices

Effect ofchange in costof sales ratio*△0.6
Increase inSG&Aexpenses

27.1≈
03/201003/2011*The effects of revenue growth and change in the cost of sales ratio are calculated using the gross profit margin.
7

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

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

251.6

253.3

44.9

55.1
( + 10.2)

64.4

62.8

(Billions of Yen)

Cash, deposits
andMarketablesecurities

251.6

253.3

57.7

53.9

Liabilities( - 3.7)

Other currentassets( - 1.6)

193.9
116.5

106.6

199.4

Tangible fixedassets

Net assets( - 9.9)

25.8
Mar. 31, 201028.8
( + 3.0)
Mar. 31, 2011

Other fixedassets( + 5.4)
Mar. 31, 2010

Mar. 31, 20118

Ⅰ. Consolidated Financial Results for the Fiscal Year Ended March 31, 2011

【9】 Share Buyback

4.77 billion yen
Buyback details

Buyback period

1,988,400 shares
As a percentage of the number of outstanding shares(excluding treasury stock) : 1.55%
November 8, 2010 – December 22, 2010

To improve capital efficiency and ensuring a flexible capital strategy.

9Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

【 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 】 Outlook for the 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, 2012

【1】 Key Assumptions
Water Treatment Chemicals Segment
 Demand will grow in Asia and emerging countries
 Demand will stay at low level in Japan Raw materials prices may rise

Water Treatment Facilities Segment
 Capital expenditure demand will rise in the Asian electronics
industry
 Subdued capital expenditure in Japan Demand for maintenance services in Japan will continue on
its recovery path
【 Impact of Great East Japan Earthquake 】
 Electric power and parts shortages could affect customers’ capacity utilization and capital expenditure.
 Kurita will make every effort to restore customers’ water treatment facilities affected by the disaster tohelp reinstate production activities.
10Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

【2】 Overview(Billions of Yen)
03/2011
Actual03/2012
Projection

Year-on-yearchangeOrders182.0

195.0+ 7.2%

Net Sales

181.2

192.0

+ 5.9%

Operating Income

27.1

29.0+ 6.9%

Ordinary Income

28.2

29.5+ 4.8%

Net Income

17.1

17.4+ 1.5%

11

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

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

Water treatment facilities

Orders(Billions of Yen)
200

182.0
56.7

Sales
195.0

125.2

138.003/2011
Actual03/2012
Projection

27.1
10.1

29.0

192.0

56.7

57.0

124.5

135.0003/2011
Actual03/2012
Projection(%)
18

Operating Income Margin
17.8

9.7
15150

181.2

100

Operating Income(Billions of Yen)
30

(Billions of Yen)
200

57.0

1000Total

17.0

19.303/2011
Actual03/2012
Projection

15.0
13.7

1203/2011
Actual17.0
15.1
14.303/2012
Projection
12

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

【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

1230056.7

57.003/2011
Actual03/2012
Projection30056.7

57.003/2011
Actual03/2012
Projection【 Major areas of growth/decline in orders/sales 】
 Japan: Decline in customers’ capacity utilization due to the disaster (-)
 Overseas: Demand growth centering on Asia (+)

(%)

17.8

17.0

6020

1010.19.703/2011
Actual03/2012
Projection0【 Major determinants of change 】
 Impact of revenue growth (+)
 Increase in cost of sales (-)

13Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

【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)

9090

2045078.403/2011
Actual86.003/2012
Projection【 Major areas of change 】
 Expansion in hardware overseas (+)
 Recovery in maintenance services (+)

4576.9003/2011
Actual84.203/2012
Projection【 Major areas of change 】
 Expansion in hardware overseas (+)
 Recovery in maintenance services (+)

19.8

20.0

15.2

16.8

100(%)

221103/2011Actual03/2012
Projection0【 Major determinants of change 】
 Impact of revenue growth(+)
 Effect of improved cost of sales (+)

14

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

【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

48

4.9
3.9
30

46.9

52.0

30

247.6

450.8
2.5
1.8

003/2011
Actual03/2012
Projection【 Major determinants of change 】
 Recovery in maintenance services (+)

003/2011
Actual03/2012
Projection【 Major determinants of change 】
 Recovery in maintenance services (+)

003/2011
Actual03/2012
Projection0【 Major determinants of change 】
 Recovery in maintenance services (+)

15

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

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

Water treatment chemicals
Water treatment facilities (services)
Water treatment facilities (hardware)(Billions of Yen)
100
(Billionsof Yen)
200

204.9

197.1

192.0
178.5

181.2

53.7

56.7

16.8

57.0

13.134.6
14.4

152.1
158.0

157.2

100

85.2

93.5

52.8

98.9

42.5

96.1

03/2008

03/2009

9.5

Toolcleaning

56.2

Maintenance,
etc.

35.1

9.7

101.0

26.4

28.4

34.0

03/201003/201103/2012
Projection

003/2007

Ultrapurewater supply
business

50

ServiceBusiness
Revenue

55.2

35.3

152.8

152.1

98.4

96.1

13.1
10.2

141.9

101.0

23.9

9.8

58.3

98.4

93.5

85.2

199.7

58.6

56.7

98.9

62.3

62.3

61.9
53.6

51.3

003/2007 03/2008 03/2009 03/2010 03/2011 03/2012
Projection

16

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

【8】 Overseas Businesses
Sales by Region

Sales by Overseas Business Segment
Water treatment chemicals

Asia(Billions of Yen)

30

N. America

Europe

Other

31.3
29.5
2.2
1.3
3.4

3.1
1.7
2.8

31.3
26.0

26.4

2.9
1.6
1.4

3.1
1.3
2.8

19.0

3.4
1.4
1.8

22.6

(Billions of Yen)

30

26.4

26.0

20.6

18.8

19.0
15.5

14.9

15

9.6

24.7

23.7
20.1

19.2
13.4
8.9

0

31.3

31.3
29.5

20.1

2.6
1.4
1.6

15

Water treatment facilities

03/2007 03/2008 03/2009 03/2010 03/2011 03/2012
Projection0

11.2

11.09.4

10.9

12.503/2007 03/2008 03/2009 03/2010 03/2011 03/2012
Projection17

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012

【9】 Outlook for the Ultrapure Water Supply Business
Capital Expenditures

Sales(Billions of Yen)

(Billions of Yen)

640

3020

5.703/2010

3.9

4.003/2011

03/2012
Projection

0

34.6

35.1

35.303/2010

03/201103/2012
Projection18

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012【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)

(%)

20

64

4.0

3

10
7.5
14.8

15.4

5.5

5.7
3.9

0

2.2

4.2

4.4

2.3

2.303/201103/2012
Projection2

6.4 15.6
4.0

1.8

1.6

2.403/201003/2011

03/2012
Projection

003/2010

019

Ⅱ. Consolidated Business Plan for the Fiscal Year Ending March 31, 2012【11】 Dividend Policy
(Yen)

4032
28
20

22
18+434+236+238+240+2+6+4+2003/2005

03/2006

03/2007

03/2008

03/2009

03/201003/201103/2012
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.
20

Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

【 1 】 Basic themes and medium-term vision【 2 】 Expand and evolve service businesses【 3 】 Expand global operations - 1 : Service provision【 4 】 Expand global operations - 2 : Promising markets and recent initiatives【 5 】 Develop new products and businesses - 1 : Electro-osmosis dehydrator【 6 】 Develop new products and businesses - 2 : Bioplanet

Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

【1】 Basic themes and medium-term vision
Basic theme :Evolution and Progress

Expand andevolve service
businesses

Expand global
operations

New value from andnew functions for water

Bolster operating baseRisk management

Develop our expertiseand manufacturing skills
21

Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

【2】 Expand and evolve service businesses
Water Treatment Chemicals Business

CAP (Co-operative Advanced Program) Sharing of key issues
 Mitigation of environmental burdens Enhancement of productivity

New tools Integration with IT systems
 Sensing technology
 Visualization of results【 Service evolution 】
Highly uniqueproblem-solving
capabilities

Simultaneous
launch at all ofcustomer’s plants

Expansion intooverseas markets

22

Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

【3】 Expand global operations - 1 : Service provision
Provide valuable services to customers
Environmental mitigation • Productivity enhancement •Reduction in operating costs

Focused sales(by region, industry, customer)

Integrated service(preliminary studies, design,production, performance validation)“Hard" and “soft” technologies
Wastewater reclamation andrecycling

Collaboration with local firms

23

Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

【4】 Expand global operations - 2 : Promising markets and recent initiatives
Small/mediumsized LCDs for
smartphones,
organic electroluminescence,
semiconductors

Suzhou Bolster operations/infrastructure Set up water quality analysis andvarious testing functions
DalianEurope

LCDs for flat-panelTVs,semiconductors,automobiles, foods,
pharmaceuticals

SuzhouUSSouth
Korea

Shanghai Bolster
operations/infrastructure
USTaiwan

Singapore

Automobiles,
materials

ThailandFoods

 Bolster
operations/infrastructure

BrazilMalaysia
Singapore

BrazilWater treatment
chemicals locations
Water treatment
facilities locations

Indonesia

 Bolster
operations/infrastructure24

Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

【5】 Develop new products and businesses - 1 : Electro-osmosis dehydrator
Electro-osmosis dehydrator (Hydopress® E)
 Uses Kurita’s unique dewatering technology. Sludge is charged with electricity togenerate an electro-osmotic flow and pressure, which forces out water.
 Reduces sludge volume by about 50% and CO2 emissions to about 1/3 vs.
conventional technology.
【 Before dehydrating 】(80% hydration)【 After dehydrating 】(60% hydration)

Excess sludge dehydrated withcentrifugal dehydrator

Sludge at left after dehydratingwith electro-osmosis dehydrator

View of electro-osmosis dehydrator
25Ⅲ. Key strategies for medium-term management plan MP-11’s final fiscal year

【6】 Develop new products and businesses - 2 : Bioplanet
Bioplanet
 System that uses the natural food chain to reduce sludge produced by
the treatment of wastewater.
 Can reduce up to 75% of excess sludge in new facilities.
[Dispersed bacteria tank][Microorganism tank][Sedimentation tank]

Organicwastewater

Bacteria

Treatedwater

Filtering predatory microorganisms

Reduction ofexcess sludge
generatedRotaria

Vorticella26

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.