Kurita Water Industries Ltd.
Earnings for the Six Months
Ended September 30, 2011
First Half of the Fiscal Year Ending March 31, 2012

( Stock code : 6370 )November 1, 2011

Table of Contents

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

Ⅲ. Reference Materials

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【 1 】 Financial Highlights【 2 】 Orders, Sales, Operating Income, and Operating Income Margin【 3 】 Water treatment chemicals【 4 】 Water treatment facilities (for the electronics industry)【 5 】 Water treatment facilities (for general industries)【 6 】 Service Business Revenue【 7 】 Overseas Businesses (sales by region and business & map of Asian locations)【 8 】 Capital Expenditures, Depreciation, and R&D Expenses【 9 】 Financial Condition

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【1】 Financial Highlights(Billions of Yen)
Fiscal year to
March 2011
First-half results

Fiscal year to
March 2012
Initial first-halfprojection

Fiscal year to
March 2012
First-half results

Year-on-yearchangeOrders

89.9

96.3

98.4

+ 9.4%Net Sales

87.7

90.4

89.5

+ 2.1%

Operating Income

13.4

13.5

13.0

- 2.9%

Ordinary Income

13.9

13.7

13.4

- 3.7%Net Income

8.2

8.0

7.9

- 3.9%

1

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【2】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals

Water treatment facilities

Total*Orders
Orders(Billions of Yen)
100

89.9
29.2

Sales
Sales
98.4

96.3

29.0

28.3

(Billions of Yen)
100

500

87.7

89.5

90.4

28.7

28.6

27.8

59.0

60.9

62.6

03/2011First-half results

03/2012First-half results

50

68.0

60.8

69.403/2011
First-half results

03/2012First-half results

Operating Income(Billions of Yen)
1413.4

13.0

13.5

5.5

5.0

4.90(%)
20

7.9

8.0

Operating Income Margin
19.3
17.4 17.6

167

15.3

8.6

13.3
0

denotes initial projections

03/2011First-half results

03/2012First-half results

1203/2011
First-half results

14.5 14.9
13.2 13.703/2012
First-half results2

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【3】 Water treatment chemicals
Orders*Operating Income andOperating Income MarginSalesdenotes initial projections*

denotes initial projections*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

30

30615029.203/2011
First-halfresults

29.0 28.303/2012
First-halfresults

15028.703/2011
First-halfresults

28.6 27.803/2012
First-halfresults【 Major areas of growth/decline in orders/sales 】
 Japan : Decline in customers’ capacity utilization due to the earthquake (-)
 Overseas : Growth in China, Singapore, Europe, Brazil, etc. (+)

30

Operating income
Operating income margin
denotes initial projections
(%)

19.3
17.4

5.503/2011
First-halfresults

20

17.6

10

5.0

4.903/2012
First-halfresults0【 Major determinants of change 】
 Increase of SG&A expenses (-)
 Change in the product mix (-)
 Rise in price of raw materials (-)

3

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【4】 Water treatment facilities (for the electronics industry)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*(Billions of Yen)

(Billions of Yen)

40

40

Operating income
Operating income margin
denotes initial projections(Billions of Yen)

10(%)

2420.318.3 20.2

20036.2

03/2011First-halfresults

38.7 41.1

03/2012First-halfresults【 Major areas of change 】
 Increase in hardware (+)
 Increase in maintenance services (+)
 Minor decrease in the ultrapure watersupply (-)

200

38.003/2011
First-halfresults

37.7 41.1

03/2012First-halfresults【 Major areas of change 】
 Decline in hardware (-)
 Increase in maintenance services (+)
 Minor decrease in the ultrapure watersupply (-)

5127.7003/2011
First-halfresults

6.98.303/2012First-halfresults0【 Major determinants of change 】
 Impact of decline in revenue (-)
 Change in maintenance salesmix (-)

4

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【5】 Water treatment facilities (for general industries)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*(Billions of Yen)

(%)

30

1.2

6.0

150.6

(Billions of Yen)

(Billions of Yen)

30

30.7 26.9

15

Operating income
Operating income margin
denotes initial projections

24.6

4.9

21.0

1.1

23.2 21.5

1.4

3.00.30.7003/2011
First-halfresults

03/2012First-halfresults【 Major areas of change 】
 Increase towards electric power (+)
 Increase in maintenance services (+)
 Increase in hardware (+)

003/2011
First-halfresults

03/2012First-halfresults【 Major areas of change 】
 Increase in maintenance services (+)
 Increase towards electric power (+)
 Decline in soil remediation (-)

0.0

0.1
03/2011First-halfresults

03/2012First-halfresults

0.0【 Major determinants of change 】
 Impact of revenue growth (+)

5

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【6】 Service Business Revenue
Water treatment chemicals

Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment facilities (services)
Water treatment facilities (hardware)(Billions of Yen)

50

(Billions of Yen)

46.6

47.9

100

89.5

87.7

17.3

Ultrapurewater supply
business

4.6

Tool cleaning

24.1

26.0

Maintenance,etc.

03/2011First-half results

03/2012First-half results

17.7
28.6

28.7

25

50

0

76.5

75.2
46.6

4.8

47.9

12.4

12.9

03/2011First-half results

03/2012First-half results

ServiceBusinessRevenue

06

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【7】 Overseas Businesses (sales by region and business & map of Asian locations)(Billions of Yen)

Growth centering on Asia
Asia

Europe0.703/2011
First-halfresults

N. America

0.703/2012
First-halfresults

9.3

10.4

03/2011First-halfresults

03/2012First-halfresults

DalianSuzhouGuangzhou

Business Segment

SouthKorea

0.703/2011
First-halfresults

0.503/2012
First-halfresults

ShanghaiTaiwanOtherThailand

6.8 12.0

5.2

7.3 13.1

5.8
Malaysia

1.4

1.503/2011
First-halfresults

03/2012First-halfresults

Singapore

03/2011First-half results

03/2012First-half results

Water treatment chemicals
Water treatment facilities

Water treatment
chemicals locations
Water treatment
facilities locations

Indonesia

7

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【8】 Capital Expenditures, Depreciation, and R&D Expenses
Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

Capital expenditures(excl. ultrapure
water supply business)

R&D Expenses

Depreciation

R&D Expenses

Percentage of net sales(Billions of Yen)

(Billions of Yen)

(%)

83.0

3.0

2.3

4

7.7

7.6

1.5

2.7
1.7

2.3

1.5

2.0

2.103/2011
First-half results

03/2012First-half results

1.4

0.900.803/2011
First-half results

1.3
03/2012First-half results

0.0

0.08

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2012

【9】 Financial Condition
AssetsLiabilities and Net Assets(Billions of Yen)

253.3

257.8

55.1

64.5
( + 9.4)

62.8

64.1

(Billions of Yen)

Cash, depositsandMarketablesecurities

253.3

257.8

53.9

53.9

Liabilities( - 0.1)

Other current
assets( + 1.4)

199.4
106.6

101.8

203.9

Property,plant, andequipment

Net assets( - 4.9)

28.8

27.4

Mar. 31, 2011

Sep. 30, 2011

( - 1.4)

Other fixedassets( + 4.5)

Mar. 31, 2011

Sep. 30, 20119Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【 1 】 Key Assumptions【 2 】 Overview【 3 】 Orders, Sales, Operating Income, and Operating Income Margin【 4 】 Water treatment chemicals【 5 】 Water treatment facilities (for the electronics industry)【 6 】 Water treatment facilities (for general industries)【 7 】 Service Business Revenue【 8 】 Overseas Businesses (sales by region and business)【 9 】 Outlook for the Ultrapure Water Supply Business【10】 Capital Expenditures, Depreciation, and R&D Expenses【11】 Dividend Policy

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【1】 Key Assumptions
Water Treatment Chemicals Segment
 Continuation of firm demand in Asia and emerging countries
 Domestic customers' capacity utilization will recover Raw materials prices may rise

Water Treatment Facilities Segment
 Slow-down in demand for semiconductors and LCDs
 Contribution of post-earthquake recovery demand toward
domestic electric power

10

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【2】 Overview(Billions of Yen)
Fiscal year to
March 2011
ActualFiscal year to
March 2012
Initial projection

Fiscal year to
March 2012
Projection

Year-on-yearchangeOrders

182.0

195.0

195.0

+ 7.2%Net Sales

181.2

192.0

192.0

+ 5.9%

Operating Income

27.1

29.0

29.0

+ 6.9%

Ordinary Income

28.2

29.5

29.5

+ 4.8%Net Income

17.1

17.4

17.4+ 1.5%

11

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【3】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals

Water treatment facilities

Total*Orders
Orders(Billions of Yen)
200

182.0
56.7

Sales
Sales
195.0 195.0
57.0

03/2011
Actual138.0 138.0003/2012
Projection

Operating Income
27.1
10.1

29.0

29.0

9.7

9.7

(%)
18

192.0 192.0

56.7

57.0

124.5

135.0 135.0

57.0

17.0

19.3

03/2011
Actual03/2012
Projection

03/2011
Actual03/2012
Projection

Operating Income Margin
17.8
17.0 17.0

15

150

181.2

100125.2(Billions of Yen)
30

(Billions of Yen)
200

57.0

1000

denotes initial projections

19.315.0

15.1 15.1
14.3 14.3

13.7
1203/2011
Actual03/2012
Projection
12Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【4】 Water treatment chemicals
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*(Billions of Yen)

(Billions of Yen)

60

60

300

57.0 57.056.703/2011
Actual03/2012
Projection

300

Operating income
Operating income margin
denotes initial projections(Billions of Yen)

1257.0 57.0

56.703/2011
Actual03/2012
Projection【 Major areas of growth/decline in orders/sales 】
 Japan : Recovery in customers' capacity utilization (+)
 Overseas : Expansion in demand centering on Asia (+)

(%)

17.8

17.0

20

17.0

60

1010.1

9.7

03/2011
Actual03/2012
Projection

9.70【 Major determinants of change 】
 Increase of SG&A expenses (-)
 Rise in price of raw materials (-)

13

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【5】 Water treatment facilities (for the electronics industry)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

9090

20

Operating income
Operating income margin
denotes initial projections
(%)

19.8

2219.120.045078.403/2011
Actual82.8 86.003/2012
Projection【 Major areas of change 】
 Increase in hardware (+)
 Increase in maintenance services (+)
 Minor decrease in the ultrapure watersupply (-)

4576.9003/2011
Actual81.1 84.203/2012
Projection【 Major areas of change 】
 Increase in hardware (+)
 Increase in maintenance services (+)
 Minor decrease in the ultrapure watersupply (-)

101115.2003/2011
Actual15.5 16.803/2012
Projection0【 Major determinants of change 】
 Impact of revenue growth (+)

14

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【6】 Water treatment facilities (for general industries)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

4

Operating income
Operating income margin
denotes initial projections
(%)

87.1
4.9

3.9
30

46.9

55.2 52.030

47.6

53.9 50.8

2

3.8

4

2.5

1.8
003/2011
Actual03/2012
Projection【 Major areas of change 】
 Increase towards electric power (+)
 Increase in maintenance services (+)

003/2011
Actual03/2012
Projection【 Major areas of change 】
 Increase towards electric power (+)
 Increase in maintenance services (+)

003/2011
Actual03/2012
Projection0【 Major determinants of change 】
 Impact of revenue growth (+)

15

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【7】 Service Business Revenue
Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment chemicals
Water treatment facilities (services)
Water treatment facilities (hardware)*(Billions of Yen)
200

(Billions of Yen)100

denotes initial projections

204.9

197.1

192.0
178.5

181.2

192.0

53.7

56.7

57.0

58.3

16.8

13.1

34.6
14.4

152.1
157.4

157.2

100

85.2

93.5

52.8

98.9

42.5

03/2008

03/2009

35.1

35.3

Tool
cleaning

9.5
9.7

9.5

50

100.4

96.1

26.4

28.4

03/201003/2011101.0

ServiceBusiness
Revenue

62.3

62.3

61.9
53.6

51.3

56.1
56.2

Maintenance,
etc.

34.6
34.0

003/2007

Ultrapurewater supply
business

34.8

152.8

152.1

98.4

55.2

96.1

13.1
10.2

141.9

100.4
101.0

23.99.8

57.0

98.4

93.5

85.2

199.7

58.6

56.7

98.9

03/2012
Projection

003/2007 03/2008 03/2009 03/2010 03/2011 03/2012
Projection

16

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【8】 Overseas Businesses (sales by region and business)
Sales by Region

Asia(Billions of Yen)

30

Sales by Overseas Business Segment

N. America
EuropeOther*denotes initial projections(Billions of Yen)

31.3

29.5
2.2
1.3
3.4

3.1
1.7
2.8

29.4 31.3
26.0

26.4

2.9
1.6
1.4

3.1
1.3
2.8

19.0

1530

29.5
26.4

26.0

20.1
20.6

19.017.6 18.8
15.5

14.9
9.6

23.1 24.7
20.1

19.2
13.4
8.90

29.4 31.3

1523.7

Water treatment facilities
denotes initial projections

31.3

3.2 3.4
1.4 1.4
1.8 1.8

2.6
1.4
1.6
22.6

Water treatment chemicals*03/2007 03/2008 03/2009 03/2010 03/2011 03/2012
Projection

011.2

11.0

9.4

10.9

11.8 12.5

03/2007 03/2008 03/2009 03/2010 03/2011 03/2012
Projection17

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012

【9】 Outlook for the Ultrapure Water Supply Business
Capital Expenditures*Salesdenotes initial projections*(Billions of Yen)

(Billions of Yen)

60

4030

2052.0denotes initial projections

34.6

35.1

34.8 35.3

23.9
16.8
19.8
5.70

3.9

5.3 4.003/2008 03/2009 03/2010 03/2011 03/2012
Projection

003/2008 03/2009 03/2010 03/2011 03/2012
Projection18

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012【10】 Capital Expenditures, Depreciation, and R&D Expenses
Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

R&D Expenses

Depreciation
Capital expenditures(excl. ultrapurewater supply business)* denotes initial projections

R&D Expenses

Percentage of net sales*denotes initial projections(Billions of Yen)

(Billions of Yen)

(%)

20

5.0

3.0

4.0

2.2

2.3

4.4 4.4

2.3 2.3

2.5

10

1.5

8.0

7.5
14.8

15.4

6.4

15.6 15.6

5.5
3.9

5.3
4.0

1.8

1.6

2.7
2.403/201003/2011

5.70

4.203/2012
Projection

0.003/201003/201103/2012
Projection

0.0
19

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2012【11】 Dividend Policy
(Yen)

4032
28
20

22
18+434+236+238+240+2+6+4+2003/2005

03/2006

03/2007

03/2008

03/2009

03/201003/201103/2012
Projection

Basic Dividend Policy
Kurita’s basic policy is to maintain stable dividends, and the company will work to increase
dividends while giving due consideration to trends in results and investments in its businesses.
20

Ⅲ. Reference Materials
Analysis of Changes in First-half Operating Income for the Fiscal Year Ending March 31, 2012
(Billions of Yen)

16

+ 0.5
△ 0.1

△ 0.3

0.0

0.0

0.0

0.0

Effect ofrevenue
growth*Effect of raw
materials
prices

Effect ofchange in costof sales ratio*

Increase in
SG&A
expenses

13.4

△ 0.5

13.0

8003/2011
First-half results

03/2012First-half results*The effects of revenue growth and change in the cost of sales ratio are calculated using the gross profit margin.

21

Kurita Water Industries Ltd.
■ U R L ■http://www.kurita.jp/■ M A I L ■ir@kurita.co.jp

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