FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Three Months Ended June 30,
2014Tokyo, Japan, July 30, 2014—Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 38,851 million yen and net income of 2,135 million yen, or
17.92 yen per share, for the three months ended June 30, 2014 (April 1, 2014 – June 30,2014).
Results of Operations
Total consolidated orders for the Kurita Group in the three months ended June 30, 2014
rose 9.4% from the level of the same period of the previous fiscal year, to 46,082
million yen, and net sales increased 6.3%, to 38,851 million yen. Operating income was
3,020 million yen, up 17.6% versus the same period of the previous fiscal year, andordinary income was 3,237 million yen, up 12.8%. Net income amounted to 2,135
million yen, up 18.4%.
Looking at the global economy during the three months under review, the U.S.
economy continued to recover moderately, and there were signs of a recovery in Europe.
Although there was concern over a slowdown in growth in emerging economies,including those in Asia, they appeared to have bottomed out. The Japanese economy
continued to recover moderately. However, personal spending fell in reaction to a spikein demand before the consumption tax hike. Capital expenditure varied from industry toindustry, and there were positive signs: certain companies, especially companies that
had improved their earnings strength, began to replace equipment.
In this environment, the Kurita Group took steps to retain earnings strength andexpand overseas operations, harnessing its combined strength in water treatment
chemicals, water treatment facilities and maintenance services.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 14,750 million
yen, up 1.3% versus the same period of the fiscal year ended March 31, 2014, whilesales rose 1.1%, to 13,836 million yen. Operating income was down 7.0% to 1,725
million yen.
In Japan, although mainstay products—boiler water treatment chemicals, coolingwater treatment chemicals, and wastewater treatment chemicals—saw decreased orders
and sales, process treatment chemicals for the pulp and paper industries rose in orders
and sales.
Overseas, orders for and sales of boiler water treatment chemicals, cooling water
treatment chemicals, and wastewater treatment chemicals, among other chemicals,increased, especially in Southeast Asia and China. In the overall segment, sales rose.
Income, however, declined, reflecting the worsening of the cost rate chiefly due to a
decline in sales of the main products in Japan, and an increase in selling, general andadministrative expenses to strengthen the overseas business structure.

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Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 31,332 million yen,up 13.7% versus the same period of the previous fiscal year, sales rose 9.3%, to 25,014
million yen, and operating income climbed 81.1%, to 1,295 million yen.
In Japan, in the electronics industry, sales of water treatment facilities rose, whilesales of maintenance services declined. Sales in the ultrapure water supply businessremained roughly flat. In the general industries, orders for and sales of water treatment
facilities for electric power increased.
Overseas, sales rose, especially in South Korea and Taiwan, where production ofsemiconductors and small liquid crystal display panels was strong given the expansionof the smartphone market. Overall income in the Water Treatment Facilities segment
increased significantly on increased sales and an improvement in the cost rate.
Financial Condition
Assets, liabilities and net assets
Current assets totaled 159,741 million yen at the end of the first quarter (June 30, 2014),
a decrease of 2,759 million yen versus the end of the previous fiscal year (March 31,2014). This was mainly a result of declines of 7,542 million yen in cash and deposits
and 6,047 million yen in trade accounts receivable, which overweighed increases of
7,000 million yen in marketable securities, 2,482 million yen in work in process, and833 million yen in trade notes receivable.
The decline in trade accounts receivable was the result of progress in collecting
receivables and weaker sales in the first quarter under review than in the fourth quarterof the previous fiscal year. The decline in cash and deposits and increase in marketablesecurities was mainly the result of increased investment in negotiable certificates, which
are treated as marketable securities. The increase in work in process was mainly theresult of progress in the water treatment facilities business.
Noncurrent assets totaled 111,683 million yen at the end of the three-month period(June 30, 2014), a decline of 742 million yen versus the end of the previous fiscal year.
The decline was principally attributable to a 1,611 million yen decrease in property,
plant and equipment, which was partly offset by an 840 million yen rise in investments
and other assets. The decline in property, plant and equipment was due to depreciationof ultrapure water supply business facilities exceeding capital expenditures. The
increase in investments and other assets reflected a rise in unrealized gains on
investment securities due to rises in the market prices of the shares held by the Group.
Current liabilities totaled 34,060 million yen at the end of the period, a decline of
2,839 million yen versus the end of the previous fiscal year. This was mainly a result ofdeclines of 3,065 million yen in trade accounts payable and 1,053 million yen in income
taxes payable, and 1,206 million yen in provisions, and an increase of 2,376 million yen
in ―other‖ current liabilities. The decline in trade accounts payable reflected paymentsof trade accounts payable towards the end of the previous fiscal year. The decrease inprovisions was attributable mainly to reversals of accrued employees’ bonuses andprovision for building demolition expenses. The increase in ―other‖ was chiefly due torises in accounts payable-other/accrued expenses and advances received.
Noncurrent liabilities totaled 19,638 million yen at the end of the period, an increaseof 766 million yen versus the end of the previous fiscal year. This was primarily
attributable to a 924 million yen rise in net defined benefit liability associated with achange in the Accounting Standard for Retirement Benefits.

2

Net assets totaled 217,726 million yen at the end of the period, a decrease of 1,427
million yen versus the end of the previous fiscal year primarily due to falls of 446
million yen in capital surplus, 1,009 million yen in retained earnings, and 447 million
yen in minority interests, which were partly offset by a 476 million yen rise inaccumulated other comprehensive income. The declines in capital surplus and minority
interests were attributable to additional acquisitions of equity in consolidated
subsidiaries. The decrease in retained earnings resulted from a year-end dividend for theprevious fiscal year of 2,621 million yen exceeding net income in the first quarter underreview of 2,135 million yen and a reduction of 501 million yen in retained earnings at
the beginning of this fiscal year in association with the change in the AccountingStandard for Retirement Benefits. The rise in accumulated other comprehensive income
chiefly reflects a 717 million yen increase in unrealized gains on available-for-salesecurities associated with a rise in unrealized gains from investment securities and a 247
million yen decrease in foreign currency translation adjustments due to the stronger yen
against foreign currencies.
Outlook for the Fiscal Year Ending March 31, 2015
The Group’s current outlook for the six months ending September 30, 2014, and the fullyear ending March 31, 2015 is consistent with the targets disclosed in ―Earnings Reportfor the Full Year Ended March 31, 2014,‖ which was announced on April 30, 2014.

3

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

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
Liabilities
Current liabilities
Notes payable – trade
Accounts payable - trade
Income taxes payable
Provision
Other
Total current liabilities
Noncurrent liabilities
Net defined benefit liability
Provision
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

As ofMarch 31, 2014
Amount

As ofJune 30, 2014
Amount47,336
7,287
50,50347,999
1,788
2,568
1,455
3,745
(184)
162,500

39,7948,120
44,45654,999
1,825
5,050
1,583
4,045
(134)
159,741

20,79532,76524,29477,855
1,578

19,98230,89625,36476,244
1,608

33,401(409)
32,991
112,425
274,925

34,227(396)
33,831
111,683
271,424

1,860
17,027
2,535
4,556
10,92036,8991,967
13,962
1,482
3,350
13,296
34,06011,36398
7,411
18,872
55,772

12,28769
7,281
19,63853,69813,45011,426
185,159(2)
210,034

13,45010,980184,150(3)
208,578

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

8,579
(564)
137
(19)
8,133
1,014
217,726
271,424

4

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

Net sales
Cost of salesGross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in earnings (losses) of consolidated
subsidiaries
Net income

Three months ended
June 30, 2013
Amount36,558
24,021
12,536
9,968
2,568Three months ended
June 30, 2014
Amount
38,851
25,91912,931
9,910
3,020

47
164

42
190

2354

95
332

32
321

14–
15
30
2,870
2,870
1,094
1,775

1459
30
104
3,237
3,237
1,145
2,091

(27)

(43)

1,803

2,135

5

Statement of Comprehensive Income(Million yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
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 theparent company
Comprehensive income attributable to minority interests

Three months ended
June 30, 2013
Amount1,775

Three months ended
June 30, 2014
Amount
2,091

1,712
873
–715(231)
640(36)

2,627
4,403

452
2,544

4,379

2,611

24(67)

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Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Three months ended June 30, 2014 (April 1, 2014 – June 30, 2014)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)Three months ended June 30, 2014 (April 1, 2014 – June 30, 2014)
Not applicable(Segment Information)
1. Sales and income by reportable segment
Three months ended June 30, 2013 (April 1, 2013 – June 30, 2013)(Million yen)

Reportable Segments

Amounts
reported on
Adjustments the quarterly
statements of(note 1)
income(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

Sales
Sales to outside customers
Inter-segment sales or transfers

13,68144

22,87647

36,55892–(92)

36,558–

Total

13,72622,92336,650(92)

36,558Segment income

1,855715

2,571(2)2,568Three months ended June 30, 2014 (April 1, 2014 – June 30, 2014)(Million yen)

Reportable Segment

Sales
Sales to outside customers
Inter-segment sales or transfers
Total
Segment income

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

13,83648
13,884
1,725

25,01442
25,056
1,295

38,851
90
38,941
3,021

Amounts
reported on
Adjustments the quarterly
statements of(note 1)
income(note 2)
–(90)
(90)
(0)

38,851–
38,851
3,020

Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income adjustments.
2. Segment income is shown at the operating income level.

7Supplementary Information — Consolidated(1) Order Intake(Million yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2013
2014
Amount%Amount
14,56434.6
14,750%32.0

Water Treatment Facilities

27,54665.4

31,332

68.0

Total

42,111

100.0

46,082100.0(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2013
2014
Amount%Amount13,681
37.4
13,836%35.6

Water Treatment Facilities

22,87662.6

25,014

64.4

Total

36,558100.0

38,851

100.0(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals

Three months ended June 30,
2013
2014
Amount%Amount
211
23.5
257

%
13.1

Water Treatment Facilities

689

76.5

1,707

86.9

Total

901

100.0

1,965

100.0

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

Business segment
Water Treatment Chemicals

Three months ended June 30,
2013
2014
Amount%Amount
265
7.6
279%
7.9

Water Treatment Facilities

3,25392.4

3,246

92.1

Total

3,519

100.0

3,526

100.08