FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Three Months ended
June 30, 2012
Tokyo, Japan, July 31, 2012—Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 40,273 million yen and net income of 3,510 million yen, or
27.72 yen per share, for the three months ended June 30, 2012 (April 1, 2012 – June 30,2012).
Results of Operations
Total consolidated orders for the Kurita Group in the three months ended June 30, 2012,
decreased 5.2% versus the same period of the previous fiscal year to 44,516 million yen.
Net sales rose 5.3% year on year to 40,273 million yen. In terms of income, operating
income declined 8.7% year on year to 4,345 million yen, while ordinary income
declined 9.1% to 4,592 million yen. Net income amounted to 3,510 million yen, up
17.3%.
Reviewing markets in which the Kurita Group operates, the fiscal year got off to achallenging start overall, as despite ongoing restoration efforts in the wake of the Great
East Japan Earthquake, the appreciation of the yen together with unstable electricity
supply caused companies to continue to consolidate production sites or relocate themoverseas, amid a reduction in capital investment by key customers. Overseas, although
there are ongoing large capital investment projects in the electronics industry in East
Asia, the growing debt crisis in Europe and the flattening out of economic growth inChina and other emerging nations have brought a sense of uncertainty over the economy.
Amid this environment, the Kurita Group secured orders by continuing to focus on
helping the restoration efforts of customers affected by the Great East Japan Earthquake,and further bolstered teamwork within the Group to demonstrate the Group’s integrative
capabilities as well as promoting consultative sales to help customers with issues suchas productivity enhancement and environmental mitigation.

Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment in the three­month
period totaled 14,462 million yen, down 1.3% versus the same period of the previous
fiscal year, while sales increased 0.1% to 13,465 million yen. Operating income
declined 8.3% to 2,013 million yen.
In Japan, orders for and sales of products including boiler water treatment chemicals
and process treatment chemicals for the paper and pulp industries increased as industrial
production recovered. There was also an increase in sales of agents for solidifying
heavy metals. On the other hand, there was a decline in orders for equipment andservices which had hitherto seen an increase as a result of strong post­earthquake
recovery demand. Overall, there was a decline in orders and an increase in sales inJapan.

1Overseas, despite a robust showing in China, sales of cooling water treatment chemicals
and other core chemicals declined in Southeast Asia and Europe, resulting in an overall
decline in both orders and sales.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment in the three­month
period amounted to 30,053 million yen, down 6.9% versus the same period of theprevious fiscal year. Sales increased 8.1% to 26,807 million yen, while operating
income declined 10.1% to 2,318 million yen.
In the electronics industry, orders and sales in the ultrapure water supply business werelargely unchanged compared to the same period of the previous fiscal year, despite
consolidation of production facilities by key customers. Maintenance service sales andorders declined as a result of the decline in restoration related demand caused by theearthquake. Overseas, there was an increase in orders and sales to semiconductor and
LCD panel plants in East Asia.
In general industries, orders for water treatment facilities, soil remediation, andmaintenance services declined due to the drop in restoration­related demand. Sales
increased in conjunction with progress on the construction of water treatment facilities
for the electric power industry.
Financial Condition
Current assets totaled 145,305 million yen at the end of the first quarter (June 30, 2012),
an increase of 320 million yen versus the end of the previous fiscal year (March 31,2012). This was mainly a result of increases such as 13,000 million yen in marketablesecurities and 1,920 million yen in work in process, outweighing declines of 10,522
million yen in trade accounts receivable and 4,964 million yen in cash and deposits.
The decline in trade accounts receivable was the result of progress in collections madeat the end of the previous fiscal year. The decline in cash and deposits was the result ofincreased investment in negotiable certificates of deposit, 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 120,483 million yen at the end of the three­month period, adecline of 5,673 million yen versus the end of the previous fiscal year. The decline wasmainly due to a 4,771 million yen drop in property, plant and equipment due todepreciation on past years’ investments in ultrapure water supply business facilities
exceeding capital expenditures during the first quarter ended June 30, 2012, as well as
the sale of some ultrapure water supply business facilities owned by the company.
Current liabilities totaled 35,902 million yen at the end of the period, a decline of 6,456
million yen versus the end of the previous fiscal year. This was mainly a result of
declines of 4,603 million yen in income taxes payable and 3,163 million yen in tradeaccounts payable.
Noncurrent liabilities totaled 18,993 million yen at the end of the period, a slightincrease of 212 million yen versus the end of the previous fiscal year.

2Net assets totaled 210,892 million yen at the end of the period, an increase of 890
million yen versus the end of the previous fiscal year. The change mainly reflects a 978
million yen increase in retained earnings resulting from the posting of 3,510 million yen
in net income, which exceeded the dividend payments of 2,533 million yen at the end of
the previous fiscal year.
Outlook for the Fiscal Year Ending March 31, 2013
The Group’s current outlook for the six months ending September 30, 2012, and the fullyear ending March 31, 2013, is consistent with the targets disclosed in the April 27,
2012 financial results announcement.
Other Information(1) Accounting treatment specific to the preparation of quarterly consolidated financialstatementsa. Tax expense
The Company calculates tax expense by producing a reasonable estimate of theeffective tax rate after applying tax­effect accounting to income before income taxes
and minority interests for the fiscal year and then multiplying quarterly income before
income taxes and minority interests by this estimated effective tax rate.
(2) Changes in accounting policy, changes in accounting estimates, and retrospective
restatement
Changes in accounting principles hard to distinguish from changes in accounting
estimates
In response to Japan's recent corporate tax law amendments and effective from the firstquarter of the fiscal year ending March 31, 2013, the method which Kurita Water
Industries Ltd. and its domestic consolidated subsidiaries use for depreciation of
noncurrent assets acquired on or after April 1, 2012 will be adjusted to reflect therevised corporate tax code. Impact on earnings for the three months ended June 30,
2012 is expected to be minimal.

3

Financial Statements — Consolidated
Balance Sheet — Consolidated

AssetsCurrent assets
Cash and deposits
Notes receivable ­ trade
Accounts receivable ­ tradeMarketable securities
Finished 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
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31, 2012
Amount(millions of yen)
As ofJune 30, 2012
Amount28,902
7,045
59,31140,500
1,598
2,715
1,209
3,761
(58)
144,985

23,938
7,417
48,78953,500
1,788
4,635
1,537
3,750
(52)
145,305

28,35544,77925,23398,368
1,683

26,70542,00324,88993,597
1,775

26,443(339)
26,103
126,156
271,141

25,451(342)
25,109120,483
265,788

1,701
19,6207,045
3,434
10,55542,3581,840
16,4572,442
2,462
12,69835,902

10,335
168
8,277
18,781
61,13910,584
156
8,252
18,99354,895

13,45011,426
196,541(9,642)
211,776

13,45011,426
197,519(9,643)
212,753

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
4

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

5252
(564)
(2,572)(2,884)
1,110
210,002271,141(565)(564)(1,942)(3,072)
1,211
210,892
265,788

Statements of Income and Comprehensive Income – Consolidated
Statement of Income

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
Valuation loss on investment securities
Foreign exchange loss
Other
Total non­operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on discontinuation of approved
retirement annuity system (closed­type)
Total extraordinary income
Income before income taxes and minority
interests
Income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

6(millions of yen)Three months ended Three months ended
June 30, 2011
June 30, 2012
AmountAmount38,24840,273
24,406
26,578
13,841
13,695
9,081
9,349
4,760
4,345
23
171

43
182

77

75

88
362

40
342

17
­
15
34
68
5,054

22
53
­
19
95
4,592

­

1,040

­

137

­

1,177

5,054

5,770

2,044
3,010

2,200
3,570

16

59

2,993

3,510Statement of Comprehensive 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

7(millions of yen)Three months ended Three months ended
June 30, 2011
June 30, 2012
3,010
3,570
(52)

(816)

346

632

29

42323
3,333(142)
3,428

3,289

3,322

44105

Notes on the Going­concern Assumption
Three months ended June 30, 2012 (April 1, 2012 – June 30, 2012)
Not applicable
Segment Information
1. Sales and income/loss by reportable segment
Three months ended June 30, 2011 (April 1, 2011 – June 30, 2011)(millions of yen)
Reportable Segment

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

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

13,44577
13,523
2,195

24,802
19
24,822
2,579

38,24897
38,345
4,774

Amount reportedon the quarterly
statements ofAdjustments
income(note 1)
(note 2)
­(97)
(97)
(14)

38,248­38,2484,760

Three months ended June 30, 2012 (April 1, 2012 – June 30, 2012)(millions of yen)
Reportable Segment
Water
Treatment
Chemicals

Water
Treatment
Facilities

Amount reported
on the quarterly
statements ofAdjustments
income(note 1)
(note 2)

Total
Sales
Sales to outside customers
13,46526,80740,273­
Inter­segment sales or transfers
55
51
107
(107)
(107)
Total
13,521
26,85940,381
13
Segment income
2,013
2,318
4,332
Notes:
1. Adjustments related to sales represents elimination of inter­segment sales. Resultantadjustment 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, 2012 (April 1, 2012 – June 30, 2012)
Not applicable

840,273­
40,2734,345

Other Information — Consolidated(1) Order Intake

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,20112012
Amount%Amount%14,65831.2
14,462
32.5
32,29568.8
30,053
67.5
46,953100.0
44,516100.0(2) Net Sales

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,
2011
2012
Amount%Amount%13,44535.2
13,46533.4
24,80264.8
26,807
66.6
38,248100.0
40,273100.0(3) Capital Expenditures (Property, Plant and Equipment)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,
2011
2012
Amount%Amount%
331
28.8
199
18.8
820
71.286281.2
1,152
100.0
1,061
100.0

(4) Depreciation (Property, Plant and Equipment)

Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total(millions of yen)Three months ended June 30,20112012
Amount%Amount%
272
7.3
254
6.9
3,470
92.7
3,438
93.1
3,742
100.0
3,693
100.09