FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the First Quarter ended
June 30, 2011
Tokyo, Japan, July 29, 2011—Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 38,248 million yen for the first quarter ended June 30, 2011
(April 1, 2011 – June 30, 2011) and net income of 2,993 million yen, or 23.64 yen pershare.
Results of Operations
Total consolidated orders for the Kurita Group in the first quarter ended June 30, 2011
increased 5.7% versus the same period of the previous year to 46,953 million yen. Netsales declined 2.4% year on year to 38,248 million yen. Though efforts were made to
reduce costs, the decline in net sales resulted in operating income decreasing 9.6% year
on year to 4,760 million yen. Ordinary income was 5,054 million yen, down 9.1%, andnet income totaled 2,993 million yen, down 9.8%.
Reviewing markets in which the Kurita Group operates, the Japanese market was
severe during the first quarter due to the lingering impact of the Great East Japan
Earthquake. Restoration and reconstruction efforts gradually gained momentum duringthe period, and there are expectations of a recovery ahead. Overseas, concerns arose
over the economic course of advanced nations. Newly emerging economies, however,continued to exhibit growth.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment in the first quarter were
14,658 million yen, up 0.7% versus the same period of the previous year, while sales
declined 1.2% to 13,445 million yen. Operating income declined 6.0% to 2,195 million
yen.
In the period, the Kurita Group strove to help customers in Japan restore theiroperations following the earthquake. In addition, the Group continued to strengthen
alliances between Group companies in Japan and overseas, while promoting a
consultative sales approach geared towards helping customers successfully meetchallenges such as productivity enhancement and environmental mitigation.
In Japan, orders and sales declined due to the suspension of operations and decreased
activity among manufacturers following the earthquake, most notably in the
petrochemical and auto industries. Overseas, orders and sales increased on growing
manufacturing activity, primarily in newly emerging economies.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment in the first quarter were32,295 million yen, up 8.2% versus the same period of the previous year. Sales declined
3.1% to 24,802 million yen, while operating income fell 12.0% to 2,579 million yen.
In the period, the Group strove to help Japanese customers restore their operations
following the earthquake. In addition, the Group bolstered its consultative sales
targeting key customers and sales activities in Asia, with emphasis on China.
In the electronics industry, orders and sales in the ultrapure water supply business1

declined slightly versus the same period the previous fiscal year, while maintenanceservices sales and orders rose as customers in Japan worked to restore their
manufacturing operations following the disaster and manufacturing activity on thewhole recovered. Orders for ultrapure water production systems increased both in andoutside Japan, but sales of the systems declined.
In general industries, orders for both water treatment facilities and maintenanceservices increased as customers in Japan worked to restore their manufacturing
operations following the disaster and manufacturing activity on the whole recovered.
Sales of water treatment facilities declined slightly, while maintenance services sales
increased.
Financial Condition
Current assets totaled 117,579 million yen at the end of the first quarter (June 30, 2011),
a decrease of 273 million yen versus the end of the previous fiscal year (March 31,2011). Increases of 5,000 million yen in marketable securities and 2,750 million yen inwork in process were outweighed by decreases of 7,540 million yen in trade accounts
receivable and 957 million yen in cash and deposits.
The decrease in trade accounts receivable was the result of progress in collections
made at the end of the previous fiscal year. The decline in cash and deposits was theresult of increased investment in negotiable certificates of deposits, which are treated asmarketable securities. The increase in work in process was the result of progress inwater treatment facility construction, and the increase in marketable securities is asstated above.
Noncurrent assets totaled 132,741 million yen at the end of the first quarter, a declineof 2,705 million yen versus the end of the previous fiscal year. The decline resulted
from a 2,492 million yen decrease in property, plant and equipment due to depreciation
on past years’ investments in ultrapure water supply business facilities exceeding thecurrent period’s investments in property, plant and equipment.
Current liabilities totaled 31,069 million yen at the end of the first quarter, a decrease of
3,702 million yen versus the end of the previous fiscal year. The change was mainly due
to declines of 3,577 million yen in income taxes payable and 1,640 million yen in tradeaccounts payable.
Noncurrent liabilities totaled 18,987 million yen at the end of the first quarter, a slightdecrease of 188 million yen versus the end of the previous fiscal year.
Net assets totaled 200,264 million yen at the end of the first quarter, an increase of
913 million yen versus the end of the previous fiscal year. The change mainly reflects a587 million yen increase in retained earnings and a 296 million yen increase inaccumulated other comprehensive income. Retained earnings increased as the first­quarter net income of 2,993 million yen exceeded the year­end dividend payment of
2,406 million yen for the previous year.
Outlook for the Fiscal Year Ending March 31, 2012
The Group’s current outlook for the first half of the year ending September 30, 2011
and the full year ending March 31, 2012 is consistent with the targets disclosed in theApril 28, 2011 financial results announcement.

2

Financial Statements — Consolidated
Balance Sheets — Consolidated

AssetsCurrent assets
Cash and deposits
Notes receivable ­ trade
Accounts receivable ­ tradeMarketable securitiesFinished products
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Investments and other assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31, 2011
Amount(millions of yen)
As ofJune 30, 2011
Amount35,073
5,983
47,25720,000
1,303
2,643
1,533
4,098(40)
117,85234,116
6,133
39,71725,000
1,481
5,393
1,703
4,079
(46)
117,579

31,454
48,82626,328106,608
1,939

30,647
48,90324,566104,116
1,866

27,081(184)
26,897
135,446
253,298

26,946(187)
26,758132,741
250,321

1,402
15,058
5,626
3,275
9,407
34,771

1,750
13,4182,049
2,312
11,53731,069

9,936
440
8,799
19,17553,946

10,070161
8,755
18,98750,056

13,45011,426
184,954(9,640)200,191

13,45011,426
185,541(9,641)200,777

Liabilities
Current liabilities
Notes payable – trade
Accounts payable ­ trade
Income taxes payable
Allowances
Other
Total current liabilities
Noncurrent liabilities
Accrued employees’ retirement benefits
Other allowances
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
3

Accumulated other comprehensive income
Unrealized gains on available­for­sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive incomeMinority interests
Total net assets
Total liabilities and net assets

4623(764)(2,006)(2,148)
1,308
199,351
253,298570(764)(1,658)(1,852)
1,340
200,264
250,321

Statements of Income and Comprehensive Income – Consolidated

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating incomeNon­operating income
Interest income
Dividend income
Equity in earnings of unconsolidated
subsidiaries and affiliates
Other
Total non­operating incomeNon­operating expenses
Interest expense
Foreign exchange loss
Other
Total non­operating expenses
Ordinary income
Income before income taxes and minorityinterests
Income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

Income before minority interests
Other comprehensive income
Unrealized gains on available­for­sale
securities
Foreign currency translation adjustments
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income(Components)
Comprehensive income attributable to ownersof the parent company
Comprehensive income attributable tominority interests

5(millions of yen)Three months ended Three months ended
June 30, 2010
June 30, 2011
AmountAmount39,201
38,24825,077
24,406
14,123
13,841
8,856
9,081
5,267
4,760
29
148

23
171

62

77

143
383

88
362

5
37
48
91
5,559

17
15
34
68
5,054

5,559

5,054

2,244
3,314

2,044
3,010

(3)

16

3,318

2,993

(millions of yen)Three months ended Three months ended
June 30, 2010
June 30, 2011
3,314
3,010
(1,687)

(52)

47

346

2529(1,613)
1,701

323
3,333

1,688

3,289

1244

Notes on the Going­concern Assumption
Three months ended June 30, 2011 (April 1, 2011 – June 30, 2011)
Not applicable
Segment Information
1. Sales and income/loss by reportable segment
Three months ended June 30, 2010 (April 1, 2010 – June 30, 2010)(millions of yen)
Reportable Segments

Sales
Sales to outside customers
Inter­segment sales or transfers
Total
Segment income

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

13,60482
13,6862,334

25,59618
25,615
2,932

39,201101
39,302
5,267

Adjustments Consolidated(note 1)
(note 2)­(101)(101)­39,201­39,201
5,267

Three months ended June 30, 2011 (April 1, 2011 – June 30, 2011)(millions of yen)
Reportable Segments
Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

Adjustments Consolidated(note 1)
(note 2)

Sales
Sales to outside customers
13,44524,802
38,248­Inter­segment sales or77
1997(97)transfers
(97)
Total
13,52324,822
38,345(14)
Segment income
2,195
2,579
4,774
Notes:
1. Adjustments related to sales represents elimination of inter­segment sales. Resultant
adjustment of segment income is reflected in segment income Adjustments.
2. Segment income is shown at the operating income level.
Notes on Significant Changes in Shareholders’ Equity
Three months ended June 30, 2011 (April 1, 2011 – June 30, 2011)
Not applicable638,248­
38,2484,760

Other Information — Consolidated
Order Intake

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,2010
2011
Amount%Amount%14,55032.8
14,65831.2
29,85967.2
32,29568.8
44,410100.0
46,953100.0

Net Sales

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,2010
2011
Amount%Amount%13,60434.7
13,44535.2
25,59665.3
24,802
64.8
39,201
100.0
38,248100.0

Capital Expenditures (Property, Plant and Equipment)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,2010
2011
Amount%Amount
%
106
14.8
331
28.8
609
85.2
820
71.2
715
100.0
1,152
100.0

Depreciation (Property, Plant and Equipment)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,2010
2011
Amount%Amount%
286
7.5
272
7.3
3,513
92.5
3,470
92.7
3,799
100.0
3,742
100.07