Kurita Water Industries Ltd.
Management Briefing(Securities code: 6370)

December 2016

Table of Contents
1

Expansion of the Water Treatment Chemicals business overseas

2

Status of Kurita Europe GmbH3

Sales Forecast in Ultrapure Water Supply Business

4

Trends in the Ultrapure Water Supply Business5

Change of the service business, using IT

6Improvement of Capital Efficiency

7

Review of remuneration policy for directors and the Audit & Supervisory Board members

1. Expansion of the Water Treatment Chemicals business overseas
Expansion of synergy with
KEG in products,development and production

Establishment of a
local subsidiary inVietnam

Searching ofM&A in North
AmericaRebuilding and strengtheningof the base function inSoutheast Asia
Strengthening of businessin the Middle East
Establishment of a local
subsidiary in UAE12. Status of Kurita Europe GmbH
Sales Composition by Product in Europe

Sales Composition by Region
Integration into Kurita Water
Industries (Dalian) Co., Ltd.

Y-o-Y
decline

China

Aluminacompounds

Paper process
treatmentchemicals

Water treatment
chemicals

EMEA

Y-o-Y
declineY-o-Y
increase
Bolster expansion into the Middle East
* Composition ratios based on 2016 outlooks.

23. Sales Forecast in Ultrapure Water Supply Business(Billions of Yen)
40

32.0

+3.8

-3.6

+3.2

-3.6

New andadditional
business, etc.

Expirationof contracts

32.2
-3.0
28.6

Review ofcontracts

20003/2016
Actual03/2017
Projection*

denotes initial projections3

4. Tarends in the Ultrapure Water Supply Business
Original contracts

Contract renewal or contract extension[ domestic ][ domestic ][ overseas ][ domestic ][ domestic ][ domestic ][ domestic ][ domestic ][ domestic ][ domestic ][ domestic ][ domestic ][ domestic ][ overseas ]03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3
* Key contracts are shown above. This does not cover all contracts.

45. Change of the service business, using IT

SensorData collection

Cloud
Monitor screen

Customer’sfacilities such as
boilers, cooling
tower and water
treatment facilities

Proposal

Analysis

Real-time monitoring

Optimum chemical dosing control
and maintenance

Creation ofcompetitive advantage

Change of the way of working
and how to proceed with workEstablishment ofthe IT Strategy Division56. Improvement of Capital Efficiency
Uses of Cash (policy)¥85.0 ‒ ¥88.0 billion

Operatingcash flow

Generation of cash

¥85.0 ‒ ¥88.0 billion
Dividends

 Strive to continue raising dividends, aiming fora payout ratio of 30-50% over 5 years.

Share buybacks
M&A Prioritize investment in promising businesses
and consider share buybacks using surplus
funds.
 Consider M&A in North America.

CapitalExpenditures

 Invest in the ultrapure water supply business,among other businesses, in Japan andoverseas.

Uses of cash

For three years from the fiscal year ended March 31,
2016 to the fiscal year ending March 31, 2018

 We will endeavor to curb surplus funds and increases in shareholders’ equity upon securing
operating funds and contingency funds.
 We will maintain ROE at a level that exceeds cost of shareholders’ equity and will strive toincrease it.
67. Review of remuneration policy for directors and the Audit & Supervisory Board members
Change in remuneration policy for directors and the Audit & Supervisory Board members
Current policy
Contribution toShareholding
SchemeFixed compensation

Performancelinked
component

New policy(1) Directors (excluding external directors)
Fixed compensation

Contribution to
Shareholding
Scheme(2) External directors, Members of the Audit & Supervisory Board
Fixed compensation

Performancelinked
component

Performancelinked
share-based
compensation
Paid at retirement
Contribution to
Shareholding
Scheme7

■ U R L ■h t t p : / / i r. k u r i t a . c o . j p / e n /■ M A I L ■ir@kurita.co.jp

Forward-looking Statements
This presentation contains forward-looking statements, business plan projections, and judgments based oninformation 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.