FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Fiscal Year ended
March 31, 2014
Tokyo, Japan, April 30, 2014 - Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 178,137 million yen and net income of 9,352 million yen, or
78.48 yen per share, for the year ended March 31, 2014 (April 1, 2013 – March 31,2014).

Results of Operations
Total consolidated orders for the Kurita Group in the fiscal year ended March 31, 2014
declined 7.1% from the level of the previous fiscal year, to 173,463 million yen, and net
sales declined 1.1% to 178,137 million yen. Operating income was 14,886 million yen,down 29.1% versus the previous fiscal year, and ordinary income was 16,072 million
yen, down 27.1%. Net income amounted to 9,352 million yen, down 18.5%.
During the fiscal year ended March 31, 2014, the global economy recovered moderately,
backed by a strong U.S. economy. The European economy, which had been sluggish
due to the debt crisis, bottomed out. China and other emerging economies were unstable
but grew steadily overall.
The Japanese economy recovered throughout the fiscal year. Thanks to the Bank ofJapan’s quantitative and qualitative monetary easing and government emergency
economic policies, the strong yen was corrected, and stock prices rose, which resulted ina rapid recovery in corporate earnings, especially those of exporting companies.
However, production at domestic manufacturers was below the year-ago level in thefirst half of the fiscal year. Capital expenditure was weak.
In this environment, the Kurita Group (Kurita Water Industries and its consolidated
subsidiaries and equity method affiliates) took steps to increase market share in Japanand expand its overseas business by maximizing its combined strength in water
treatment chemicals, water treatment facilities and maintenance services, aiming toevolve into a corporate group capable of competing successfully in the international
market. The Group concentrated its management resources on growth areas and industry
sectors, setting up operating bases and strengthening and cultivating its humanresources, especially in Asia.
However, the Group faced a challenging market environment. In domestic operations,both sales and income declined, affected by a fall in capacity utilization and weakcapital expenditure at manufacturers, the Group’s main customers. Overseas, sales
increased, reflecting growth in demand for water treatment in East Asia and Southeast
Asia and the correction to the strong yen, but income fell significantly, reflecting theworsening of the cost rate due to intensifying price competition in the electronics
industry and loss-making projects, and an increase in selling, general and administrative
expenses. The posting of certain orders were cancelled as customers canceled orchanged capital spending plans.
1Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 59,413 million
yen, up 6.0% versus the fiscal year ended March 31, 2013, while sales rose 4.9%, to58,844 million yen. Operating income was down 4.6% to 7,954 million yen.
In Japan, although cooling water treatment chemicals and process treatment chemicals
for the petroleum refinery and petrochemical industries, among other chemicals, saw
increased orders and sales, boiler water treatment chemicals and process treatment
chemicals for the pulp and paper industries experienced declines in both orders andsales. In the latter half of the fiscal year, capacity utilization at customers’ plants
recovered moderately, but overall orders and sales fell slightly.
Overseas, orders for and sales of cooling water treatment chemicals, wastewater
treatment chemicals, and reverse osmosis membrane treatment chemicals increased,
especially in Southeast Asia and China. In the overall segment, both orders and salesrose. Income, however, declined, reflecting an increase in selling, general andadministrative expenses due to a rise in expenses for business expansion, including an
increase in the overseas workforce.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 114,049 million
yen, down 12.7% versus the previous fiscal year, sales declined 3.8%, to 119,292
million yen, and operating income fell 45.1%, to 6,934 million yen.
In Japan, although the ultrapure water supply business in the electronics industry was
roughly in line with the plan, water treatment facilities and maintenance services in theindustry sustained lower orders and sales, reflecting weak capital expenditure and a
decline in capacity utilization at major customers’ plants.
In general industries, sales of water treatment facilities for electric power fell due to thecompletion of demand related to reconstruction after the Great East Japan Earthquake.
However, orders for and sales of water treatment facilities for soil remediation services
rose.
Overseas, both orders and sales declined, reflecting changes and cancellations ofcustomers’ capital expenditure plans in the electronics industry in East Asia. Because oflosses from unprofitable projects and an increase in additional costs, the cost rate
worsened.

2

Outlook for the Fiscal Year Ending March 31, 2015
For the full fiscal year ending March 31, 2015, the Group forecasts 185,000 million yen
in net sales (up 3.9% year on year), 17,000 million yen in operating income (up 14.2%),
17,800 million yen in ordinary income (up 10.8%) and 11,000 million yen in net income(up 17.6%).
During the fiscal year ending March 31, 2015, the Japanese economy is not expected torecord high growth, given the declining effects of a weaker yen and a slowdown in theeconomy after the consumption tax hike. From the middle of the fiscal year, however,exports will likely recover, reflecting the effects of the economic stimulus package anda recovery in overseas economies, and the economy will return to a moderate recovery
trend. The volume of new construction and expansion of production bases in the
manufacturing industry will likely be small, and capital spending is expected toconcentrate on improving production efficiency and renovating old facilities. The Groupwill likely continue to face a challenging market environment.
In East Asia and Southeast Asia, we expect that the new construction and expansion of
production facilities will increase, backed by steady economic growth, and that demand
for water treatment to improve production efficiency and reduce the environmental
burden will continue to rise. In Europe and the United States, we expect that the water
treatment market will recover gradually, given a moderate economic recovery.
In this environment, the Kurita Group will identify growth regions and markets andshift its management resources. Based on characteristics and changes identified in eachregion and market, the Group will provide more profitable products and services
through more efficient sales and production methods. We will make Group-wide efforts
to enhance the quality of the solutions that we propose, restore earnings power, andexpand overseas operations steadily.
Outlook by Segment
Water Treatment Chemicals
The Kurita Group will increase sales and improve profitability by developing andimproving products in accordance with the needs of each region and bolstering its
technical assistance system, especially in China and Southeast Asia. In Japan, the Groupwill expand the number of new customers, leveraging the new sensing technologies thatit has developed along with boiler water treatment chemicals and cooling water
treatment chemicals with new functions, and will seek to increase market share byproposing solutions to customers.
Water Treatment Facilities
The Kurita Group will seek to create new projects, focusing on the reclaimed water andelectricity markets, with a major emphasis on markets in Southeast Asia as well as
China, South Korea, and Taiwan. In Japan, the Group will make effective proposals
promptly, emphasizing individual customers and field activities. While seeking to
expand the lineup of standard products and resin and membrane products and their sales,
the Group will step up efforts for new markets such as pharmaceuticals, food processing,new energy, and water treatment for vessels.
3

Financial Condition
Assets, liabilities and net assets
Current assets totaled 162,500 million yen at the end of the fiscal year (March 31, 2014),
an increase of 15,626 million yen from the end of the previous fiscal year (March 31,2013). This increase was mainly due to increases of 4,297 million yen in cash anddeposits and 13,999 million yen in marketable securities, partially offset by a decreaseof 4,776 million yen in trade accounts receivable. The decrease in trade accounts
receivable and the increase in cash and deposits were mainly the result of progress incollecting receivables. The rise in marketable securities was attributable chiefly to a risein negotiable deposits, which are treated as marketable securities.
Noncurrent assets totaled 112,425 million yen at the end of the fiscal year, a decline of
4,280 million yen from the end of the previous fiscal year. The decline was due mainly
to an 8,965 million yen decrease in property, plant and equipment, which was partly
offset by a 4,726 million yen increase in investment and other assets. The decrease inproperty, plant and equipment reflected the depreciation mainly of ultrapure watersupply business facilities exceeding capital expenditures. The increase in investment
and other assets was the result of an increase in unrealized gains on investment
securities due to rises in share prices.
Current liabilities totaled 36,899 million yen at the end of the fiscal year, a rise of 1,484
million yen from the end of the previous fiscal year. The rise was mainly attributable toa 1,309 million yen increase in the provision for loss on construction contracts
associated with unprofitable projects in the water treatment facilities business overseas.
Noncurrent liabilities totaled 18,872 million yen at the end of the fiscal year, a slightdecrease of 174 million yen from the end of the previous fiscal year.
Net assets totaled 219,153 million yen at the end of the fiscal year, an increase of 10,035
million yen from the end of the previous fiscal year primarily due to a 4,208 million yen
increase in shareholders’ equity and a 5,612 million yen rise in accumulated othercomprehensive income. The increase in shareholders’ equity resulted from net incomeof 9,352 million yen for the fiscal year under review, which exceeded dividend
payments of 5,124 million yen, the sum of year-end dividends for the previous fiscal
year and interim dividends for the fiscal year under review. The increase in accumulated
other comprehensive income is a result of a 3,783 million yen rise in unrealized gains
on available-for-sale securities due to the abovementioned increase in unrealized gains
on investment securities and a 1,853 million yen increase in foreign currency translation
adjustments associated with a weaker yen. Certain shares of treasury stock werecancelled in the second quarter, which did not affect total net assets but reduced treasury
stock 21,859 million yen (an increase in net assets) and retained earnings by the sameamount.

4Cash Flows
Consolidated net cash and cash equivalents at the end of the fiscal year (March 31,2014) totaled 41,028 million yen, an increase of 7,715 million yen from the end of theprevious fiscal year (March 31, 2013). The various cash flows and related factors are
outlined below.
Cash Flows from Operating Activities
Net cash provided by operating activities during the fiscal year ended March 31, 2014
totaled 29,666 million yen, an increase of 2,390 million yen from the previous fiscal
year. Inflows from income before income taxes and minority interests (15,375 millionyen), depreciation and amortization (14,774 million yen) and a decrease in trade notes
and accounts receivable (4,997 million yen) were partially offset by income taxes paid
(6,652 million yen).
Cash Flows from Investing Activities
Net cash used in investing activities totaled 16,676 million yen, an increase of 20,944
million yen from the previous fiscal year. The main cash outflows from investing
activities were payments into time deposits (net of withdrawals from time deposits) of
1,517 million yen, investments in marketable securities (net of sale and redemptions of
the same) totaling 8,999 million yen and the acquisition of property, plant andequipment totaling 5,670 million yen, including capital expenditures for ultrapure watersupply business during the year.
Cash Flows from Financing Activities
Net cash used in financing activities totaled 5,957 million yen, a decrease of 12,604
million yen from the previous fiscal year. The main cash outflow from financing
activities was cash dividends paid of 5,193 million yen.
Dividend Policy and Dividends for the Fiscal Year ended March 31, 2014 and the
Fiscal Year ending March 31, 2015
Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.
We intend to pay a year-end dividend of 22 yen per share for the fiscal year ended
March 31, 2014, 1 yen more than the previous year-end dividend. Combined with theinterim dividend of 22 yen per share (1 yen more than the previous interim dividend),
the annual dividend comes to 44 yen per share, 2 yen higher than the previous fiscal
year’s annual dividend. For the fiscal year ending March 31, 2015, Kurita Water
Industries plans to pay an interim dividend of 23 yen per share and a year-end dividendof 23 yen per share, for an annual dividend of 46 yen per share.
Business and Other Risks
The following are summaries of major foreseeable risks present in the businessenvironments in which the Kurita Group operates. Forward-looking statements herein
are based on judgments made by management as of March 31, 2014.
1) Economic and market conditions
The Group’s Water Treatment Chemicals and Water Treatment Facilities businesses
are affected by economic conditions in Japan and in other countries and regions where
the Group operates. Demand in the Water Treatment Chemicals business fluctuates in5response to factory capacity utilization rates in such industries as steel, petroleum
refining and petrochemicals, and pulp and paper, which are the business’ main sourcesof demand. Such demand fluctuations may affect the Group’s operating results.
Demand in the Water Treatment Facilities business fluctuates in response to trends incapital expenditure in the electronics industry and other industries that are the business’
main sources of demand. Such demand fluctuations may affect the Group’s operating
results.
Intensification of competition with rivals in the Group’s business domains could
lead to declines in prices of products and services, which could lower the Group’s
profitability.
2) Materials and parts procurement
The Group procures raw materials and parts from outside the Group for the
manufacture of products and the fabrication of facilities. The prices of raw materials
and parts fluctuate based on changes in market conditions, and such fluctuations may
affect the Group’s operating results.
3) Overseas business development
The Group is striving to expand its business outside Japan. In contrast to theJapanese market, doing business in overseas markets involves a number of inherent,
unforeseen risks, including the risk of changes to local laws and regulations, the risk ofpolitical and economic instability, and the risk of foreign exchange rate fluctuations. If
such risks materialized, the Group’s operating results could be affected.
4) New product development
The Group continuously endeavors to develop new technology and competitive new
products. The success of new technology and product development efforts cannot be
guaranteed. The Group may not be able to offer new technologies and products thatmeet the needs of its customers or launch new products in a timely fashion. The Group
may also fail to keep pace with rapid changes in technological innovation and changing
customer needs. If the Group were to fail to develop competitive new products, this
could hamper its future growth and profitability or otherwise affect its operating
results.
5) Intellectual property
The Group recognizes the importance of intellectual property and continually seeks
to register its own intellectual property while avoiding infringement of the intellectual
property rights of third parties, both in Japan and overseas. Given the wide scope of theGroup’s business, however, there is potential for the Group’s intellectual property
rights to be infringed and potential for the Group to infringe upon the rights held by
third parties. Such occurrences may affect the Group’s operating results.
6) Information systems
The Group’s use of information systems is increasing, as is the importance of
information systems to the Group’s business. If a computer virus or some other factor
were to obstruct the functions of the Group’s information systems, the Group’sbusiness activities, operating results, and financial condition could be negatively
affected.
7) Large-scale natural disasters
If an earthquake, typhoon, or other kind of natural disaster were to directly or
indirectly upset the Group’s business execution, the Group’s business activities,
operating results, and financial condition could be negatively affected.
6Management Policy(1) Basic management policy
The Kurita Group operates under corporate philosophy, “Study the properties of water,
master them, and we will create an environment in which nature and man are inharmony.” In line with this philosophy, the Group conducts business with the goal of
becoming an advanced water and environmental management company.
The Group also seeks to enhance management transparency by making appropriate
and timely information disclosures to shareholders, investors, and other stakeholders.
(2) Medium- to long-term management strategy
The Kurita Group has been working on its TA-14 three-year medium-term
management plan based on the theme of “Execution and Evolution” since April 2012.
The basic objectives of the plan are to demonstrate the Group’s comprehensive
strengths to secure the trust of customers in Japan and other countries. Under the plan,
the Group will endeavor to significantly expand overseas business while also raising its
domestic market shares.
The Group has revised the plan’s targets for the final year of TA-14 (the fiscal year
ending March 2015) in consideration of changes in the operating environment asfollows:
Consolidated
Orders¥189 billion
Net Sales¥185 billion
Operating income¥17.0 billion
Ordinary income¥17.8 billion
Net income¥11.0 billion(3) Issues to be addressed
The Kurita Group aims to evolve into a corporate group capable of competing
successfully in the international market and to achieve dramatic growth by creating adriving force unique to the Group with the organic integration of the three functions ofwater treatment chemicals, water treatment facilities, and maintenance services, which
are the Group’s strengths, in the medium-term management plan TA-14 for three years
from April 2012. However, both sales and profits have declined in a challenging
environment for the past two years, and the Group was not able to achieve growth.
Profitability, traditionally the Group’s strength, declined significantly. The ratio of
operating income to sales has fallen to the level of more than ten years ago.
In this situation, the Group should address the following challenges:
1) Regaining earnings power
The main factors for the decline in the Group’s earnings power are the worsening of
the market environment, falls in sales prices and sales quantities due to intensifying
competition, losses on construction contracts, and additional costs. Against thisbackdrop, the Group will strive to expand orders for higher value-added and moreprice-competitive products and services in Japan and overseas, identifying growth
regions and markets, including East Asia and Southeast Asia. In the Water Treatment
Facilities segment, the Group will promote cooperation between the sales division andproduction division to lower the cost rate and prevent the occurrence of additionalcosts. The Group will continue to focus on developing rapidly and launching products
and technologies that can successfully compete internationally.
72) Making the most of the Group’s collective strengths
To bolster the competitiveness of the Group’s products and services, the Group will
amalgamate the functions of water treatment chemicals, water treatment facilities andmaintenance services and will provide solutions unique to the Group both in Japan andabroad in response to customer needs for environmental burden reduction, energy
saving, and the improvement of productivity.
3) Expanding global operations
As the domestic market continues to shrink, the Group needs to focus on expanding
operations in overseas markets, where demand for water treatment is expected toincrease. The Group will develop and launch products that will meet needs in eachcountry and region. Meanwhile, the Group will promote the localization ofmanagement, cultivating national staff. In Southeast Asia, the Group regards ASEAN
countries as one economic area and will optimize its management in this area, making
the most of the characteristic functions of individual overseas subsidiaries in the area.
The Group will strengthen its development, sales, and production systems throughbusiness alliances with local companies.

8

Financial Statements — Consolidated
Balance Sheet — Consolidated(Million yen)

As ofMarch 31, 2013
AmountAs ofMarch 31, 2014
Amount43,0396,10855,27934,000
1,445
2,238
1,191
1,956
1,719
(104)
146,874

47,336
7,287
50,50347,999
1,788
2,568
1,455
2,193
1,551
(184)
162,500

59,982(35,612)24,37087,994(51,690)
36,304
13,9848,183(1,924)
6,258
4,074
11,368(9,540)1,828
86,82061,177(39,477)
21,70093,982(61,048)
32,934
13,9537,990(2,350)5,639
1,742
11,867(9,983)
1,884
77,855

1,315
304
1,619

1,281
297
1,578

18,752
7,738
2,015
(241)
28,265
116,705
263,580

24,717
6,586
2,097
(409)
32,991
112,425
274,925

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)Land
Leased assets
Accumulated depreciation
Leased assets (net)
Construction in progress
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

9

(Million yen)

As ofMarch 31, 2013
AmountAs ofMarch 31, 2014
Amount1,451
16,522
6,857
2,509
2,362
2
774
4,935
35,415

1,860
17,027
5,541
2,535
2,246
1,311
801
5,575
36,8996,020
1,303
10,835

5,389
1,303
-

165

98

721
19,04654,462

11,363718
18,872
55,772

13,45011,426
202,807(21,859)
205,826

13,45011,426
185,159(2)
210,034

4,079
(564)
(1,469)2,045
1,246
209,118
263,580

7,862
(564)
384
(25)
7,657
1,461
219,153274,925

Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Accounts payable - other / Accrued expenses
Income taxes payable
Accrued employees’ bonuses
Provision for loss on construction contracts
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Lease obligations
Deferred tax liabilities related to revaluation
Accrued employees’ retirement benefits
Accrued retirement benefits for directors and corporate
auditors
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

10Statements of Income and Comprehensive Income — Consolidated
Statement of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors' and corporate auditors' compensations,salaries and allowances
Provision for bonuses
Retirement benefit expenses
Traveling and transportation expenses
Research and development expenses
Other
Total Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Settlement
Loss on disposal of noncurrent assets
Rent expenses on noncurrent assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Gain on discontinuation of approved retirement
annuity system (closed-type)
Total extraordinary income
Extraordinary losses
Impairment loss
Provision for building demolition expenses
Valuation loss on investment securities
Contribution
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Current
Deferred
Total income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

Year ended
March 31, 2013
Amount180,143
121,047
59,096

Year ended
March 31, 2014
Amount178,137
122,870
55,267

14,895

15,780

1,368
1,079
2,675
4,362
13,726
38,106
20,989

1,223
1,018
2,808
4,534
15,01340,38014,886

153
348
120

165
336
174

348

302

337
1,307

442
1,420

78
49
17
105
250
22,046

60
56
23
24
69
234
16,072

1,051
403

-

137

-

1,592

-

1,108
410
2,343
3,861
19,776197
500
697
15,375

8,660
(452)
8,208
11,568

6,614
(737)
5,877
9,498

92

145

11,476

9,352

11

Statement of Comprehensive Income(Million yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of
the parent company
Comprehensive income attributable to minority
interests

Year ended
March 31, 2013
Amount11,568Year ended
March 31, 2014
Amount
9,498

3,824
1,069

3,782
1,792

133

204

5,027
16,595

5,780
15,27816,406

14,989

189

288

12

Statement of Changes in Shareholders’ Equity — Consolidated
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)(Million yen)

Shareholders’ equity

Balance as of the
beginning of the fiscal
year
Change during the period
Dividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of unrealized
gains (losses) onrevaluation of land
Other
Net change in items
other than shareholders’equity during the period
Total change during theperiodBalance as of the end of
the fiscal year

Common stock

Capital surplus

13,45011,426

Retainedearnings

Treasury stock

Total
shareholders’equity(9,642)

211,776

196,541(5,193)
11,476(5,193)
11,476(12,216)(12,216)
-

(0)

(0)

(16)

(16)

-

-

6,266

(12,216)(5,950)13,45011,426

202,807(21,859)

205,826

Accumulated other comprehensive income

Balance as of the
beginning of the fiscal
year
Change during the period
Dividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of unrealized
gains (losses) onrevaluation of land
Other
Net change in items
other than shareholders’equity during the period
Total change during theperiodBalance as of the end of
the fiscal year

Unrealized
gains (losses)
on availablefor-salesecurities

Unrealized
gains (losses)
on revaluationof land

Foreigncurrencytranslation
adjustments

252

(564)

(2,572)

Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincome-(2,884)

Minority
interests

Total net
assets1,110

210,002(5,193)
11,476(12,216)
(0)
(16)
3,826

0

1,103

-

4,930

135

5,065

3,826

0

1,103

-

4,930

135

(884)

4,079

(564)

(1,469)

-

2,045

1,246

209,118

13

Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)(Million yen)

Shareholders’ equity

Balance as of the
beginning of the fiscal
year
Change during the period
Dividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of unrealized
gains (losses) onrevaluation of land
Other
Net change in items
other than shareholders’equity during the period
Total change during theperiodBalance as of the end of
the fiscal year

Common stock

Capital surplus

13,45011,426

Retainedearnings
202,807

Treasury stock

Total
shareholders’equity(21,859)

205,826(5,124)
9,352(5,124)
9,352(21,859)(2)(2)

21,859

-

-

-

(17)

(17)

-

-

(17,648)

21,856

4,208

13,45011,426

185,159(2)

210,034

Minority
interests

Total net
assets1,246

209,118

Accumulated other comprehensive income

Balance as of the
beginning of the fiscal
year
Change during the period
Dividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of unrealized
gains (losses) onrevaluation of land
Other
Net change in items
other than shareholders’equity during the period
Total change during theperiodBalance as of the end of
the fiscal year

Unrealized
gains (losses)
on availablefor-salesecurities

Unrealized
gains (losses)
on revaluationof land

Foreigncurrencytranslation
adjustments

4,079

(564)

(1,469)Total
Remeasureaccumulated
ments ofother
defined benefit
comprehensive
plansincome-2,045(5,124)
9,352
(2)
(17)
3,783

-

1,853

(25)

5,611

215

5,827

3,783

-

1,853

(25)

5,611

215

10,035

7,862

(564)

384

(25)

7,657

1,461

219,153

14

Statement of Cash Flows — Consolidated(Million yen)

Year ended
March 31, 2013
AmountYear ended
March 31, 2014
Amount

19,776
15,054

15,375
14,774

(348)

(302)

464

-

(379)
(501)
78
(226)
272

454
1,559
(501)
60
(290)
500

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Equity in (earnings) losses of unconsolidated subsidiaries
and affiliates
Increase (decrease) in allowance for employees’ retirement
benefits
Increase (decrease) in net defined benefit liability
Increase (decrease) in other allowancesInterest and dividend income
Interest expense
Other non-operating (income) losses
Other extraordinary (income) losses(Gains) losses on sale/disposal of property, plant andequipment
Impairment loss
(Gains) losses on sale of investment securities
Valuation (gain) loss on investment securities(Increase) decrease in notes and accounts receivable - trade(Increase) decrease in inventories(Increase) decrease in other current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other
Sub-totalInterest and dividend received
Other proceeds
Interest paid
Other payments
Income taxes paid
Net cash provided by (used in) operating activities(1,000)

14

1,108
(403)
2,343
5,686
808
(76)
(4,005)582
176
39,409
730
474
(73)
(113)
(13,152)
27,276

(0)
4,997
(673)
204
(26)
(222)
(88)
35,835
751
426
(62)
(631)
(6,652)
29,666

Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sale and redemption of investment securities
Other payments
Other proceeds
Net cash provided by (used in) investing activities(15,534)
23,430(76,500)
74,500(5,048)
3,356
(10)
617
(755)
213
4,268

(19,315)
17,798(99,999)
91,000(5,670)
105
(145)
4
(669)
214
(16,676)15

(Million yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

Year ended
March 31, 2013
AmountYear ended
March 31, 2014
Amount

(494)
58
(89)
(579)
(12,216)(5,192)(49)(18,561)

(164)
(595)
(2)
(5,122)(71)(5,957)503

683

13,487
19,82533,313

7,715
33,31341,02816

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 examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Company’s business divisions are based on product and service categories. Each of the divisions
conduct business based on comprehensive strategies formulated for the products and services that theyhandle in Japan and overseas. The Company’s consolidated subsidiaries conduct business under thesupervision of the relevant business divisions.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment
Chemicals segment and the Water Treatment Facilities segment, based on the products and services
handled by each of the divisions.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals andequipment and provides maintenance services. The Water Treatment Facilities segment manufacturers
and sells water treatment equipment and facilities, provides ultrapure water, chemical cleaning, toolcleaning, soil and groundwater remediation services, and provides maintenance services that encompass
operation, maintenance, and management of water treatment facilities.
2. Method for calculating sales, income and loss, assets and liabilities, and other amounts by reportablesegment
Accounting methods applied in reportable segments are consistent with the methods applied in
preparation of consolidated financial statements. Segment income represents operating income.
Inter-segment sales and transfers between consolidated-group companies reflect values based on market
prices. Inter-segment sales and transfers between the Company’s divisions are based primarily on bookvalues.
3. Sales, income and loss, assets and liabilities, and other amounts by reportable segment
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total
Sales
(1) Sales to outside customers(2) Inter-segment sales and transfers
Total
Segment income
Segment assets
Segment liabilities
Other amounts
Depreciation
Impairment loss
Change in property, plant andequipment and intangible fixed
assetsAmounts
reported on the
Adjustments statements of(see note)
income56,091287
56,378
8,334
34,647
16,589124,052
188
124,241
12,641
143,772
37,983

180,143476
180,619
20,975
178,41954,573

(476)
(476)
13
85,161(111)

180,143
180,143
20,989263,580
54,462

1,369-

13,684-

15,054-

1,108

15,054
1,108

1,458

5,230

6,688

-

6,688

17

Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total

Amounts
reported on the
Adjustments statements of(see note)
incomeSales(1) Sales to outside customers
58,844
119,292
178,137
178,137(2) Inter-segment sales and transfers
278
252
530
(530)
Total
59,122
119,545
178,668(530)
178,137
Segment income
7,954
6,934
14,888(2)
14,886
Segment assets
37,310133,620
170,931103,994
274,925
Segment liabilities
15,82440,08755,911(139)
55,772Other amounts
Depreciation
1,386
13,387
14,774
14,774
Change in property, plant andequipment and intangible fixed
1,792
3,917
5,709
5,709
assetsNote: “Adjustments” represents the following:
1. Sales: Elimination of inter-segment transactions.
2. Segment income: Amount resulting from eliminations of inter-segment transactions.
3. Segment assets: Consisting mainly of corporate assets (cash deposits, securities in trust, andlong-term investments) unallocated to reportable segments. Corporate assets totaled 85,272 million
yen at March 31, 2013 and 104,135 million yen at March 31, 2014.
4. Segment liabilities: Amount resulting from eliminations of inter-segment claims and liabilities.
5. Impairment loss on idle assets was recognized in the fiscal year ended March 31, 2013. This had
no effect on the reportable segments.
Related information
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)
North
Japan
Asia
America
EuropeOther
Total
23,898
2,349
1,196
3,028
180,143
149,670
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer
Name of customer
Sharp Corporation

Sales
25,684(Million yen)
Name of transacting segment
Water Treatment Facilities

18

Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)
North
Japan
Asia
America
EuropeOther
Total
27,162
1,765
1,330
3,331
178,137
144,546
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer
Name of customer
Sharp Corporation(Million yen)
Name of transacting segment
Water Treatment Facilities

Sales
26,850Information on impairment of reportable segments’ noncurrent assets
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)
The Company has omitted disclosure here because equivalent information appears in the segment
information.
Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)
Not applicable
Goodwill amortization and unamortized balance of goodwill by segment
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)(Million yen)
Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Eliminationor corporate

Total

Total

13

-

13

-

13

-

-

-

-

-

Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)
Not applicable19

Information on negative goodwill
Year ended March 31, 2013 (April 1, 2012 - March 31, 2013)
Not applicableYear ended March 31, 2014 (April 1, 2013 - March 31, 2014)
Not applicable

Per Share Information
Net assets per share
Net income per share

Year ended March 31, 2013
1,744.41 yen
92.43 yen

Year ended March 31, 2014
1,826.84 yen
78.48 yen

Notes: 1. Fully diluted net income per share was not reported here because there were no dilutive securities
outstanding.
2. The calculation bases for net assets per share are as follows.
(Million yen unless otherwise stated)

Total net assets
Amount deducted from total net assets(Those with minority interests)
Net assets attributed to common stock
Number of common stock used in calculation of
net assets per share (shares)

As ofMarch 31, 2013
209,118
1,246(1,246)
207,871

As ofMarch 31, 2014
219,153
1,461(1,461)
217,691

119,164,789

119,163,469

Note: The calculation bases for net income per share are as follows.
(Million yen unless otherwise stated)

Net income
Amount not attributed to common stockholders
Net income attributed to common stock
Average number of shares outstanding (shares)

Year ended
March 31, 2013
11,476
11,476
124,160,885

Year ended
March 31, 2014
9,352
9,352
119,164,231

Significant Subsequent Events
Not applicable20

Supplementary Information - Consolidated(1) Net Sales(Million yen)

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2013
Amount56,091
124,052
180,143

%
31.1
68.9
100.0

2014
Amount58,844
119,292
178,137

%
33.0
67.0
100.0

(2) Order Intake and Backlog(Million yen)

Year ended March 31,
2013
Business segment
Water Treatment
Chemicals
Order Intake
Water Treatment
Facilities
Total
Water Treatment
Chemicals
Order Backlog Water Treatment
Facilities
Total

Amount2014%

Amount%56,04030.059,41334.3

130,700

70.0

114,04965.7

186,741100.0

173,463

100.0

3,876

6.3

4,445

7.8

58,04893.7

52,804

92.2

61,924100.0

57,250100.0(3) Production Results(Million yen)

Year ended March 31,
2013
Business segment
AmountWater Treatment Chemicals
56,106
Water Treatment Facilities
123,704
Total
179,811
Note: The amounts were based on sales amounts.

%
31.2
68.8
100.0

2014
Amount59,119119,723
178,842

%
33.1
66.9
100.0

(4) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2013
Amount
1,242
4,866
6,108

%
20.3
79.7
100.0

2014
Amount
1,599
3,669
5,268

%
30.4
69.6
100.0

(5) Depreciation (Property, Plant and Equipment)(Million yen)

Year ended March 31,
2013
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Amount1,114
13,37814,493

2014
%
7.7
92.3
100.0

Amount1,162
13,08814,250

%
8.2
91.8
100.0

21