FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Fiscal Year ended March 31, 2022
Tokyo, Japan, May 6, 2022 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 288,207 million yen and profit attributable to owners of parent of 18,471
million yen, or 164.38 yen per share, for the year ended March 31, 2022 (April 1, 2021 - March 31,2022).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the fiscal year ended March 31, 2022
increased 20.2% from the level of the previous fiscal year, to 315,240 million yen, while net sales rose
7.6%, to 288,207 million yen. Business profit* increased 11.8%, to 32,944 million yen, operating profit
was 35,734 million yen, up 13.3% versus the year-ago period, profit before tax was 30,079 million
yen, rising 3.2%, and profit attributable to owners of parent amounted to 18,471 million yen, down
3.2%.
During the fiscal year, other income of 6,119 million yen and other expenses of 3,329 million yen
were posted.
Other income includes a gain on sale of fixed assets of 4,079 million yen chiefly related to the saleof real estate at the former Shinjuku Head Office and the Osaka Office. Other expenses include
impairment losses on fixed assets of 1,028 million yen.
The impairment losses on fixed assets were caused mainly by the closure of the Yamaguchi Plant in
the reorganization of the production bases in the domestic Water Treatment Facilities business and thedecision to discontinue operations at the plant of Kurita Water Industries (Jiangyin) Co., Ltd. (Water
Treatment Chemicals business) related to a review of the production system for water treatment
chemicals in China. Meanwhile, profit attributable to owners of parent declined due to finance costsof 5,496 million yen posted, which resulted from the subsequent measurement of liabilities related toa forward contract concluded with non-controlling shareholders of US-based Pentagon Technologies
Group, Inc. (Water Treatment Facilities business).
During the fiscal year ended March 31, 2022, the global economic recovery was weak at times due torestrictions on movement and disruption in logistics because of the spread of COVID-19 variants.
Economic activity subsequently moved toward normalization, reflecting economic stimulus measuresaround the world and the increasing pace of vaccinations. Consequently, there were signs of a recovery.
Looking at the market conditions surrounding the Group, production activities in the manufacturingindustry in Japan were weak in certain sectors due to constraints on the supply of raw materials, including
semiconductor shortages, but were on a recovery trend. There were signs of a recovery in capital
investment.
Overseas, European, the U.S. and Chinese economies have recovered gradually. Meanwhile, in someparts of Asia, economic recovery was weak due to a resurgence in COVID-19 infections.
In this environment, the Group worked to expand total solutions and CSV business by focusing on
proposal activities that would help solve customer issues such as the reduction of the environmental
impact, including water saving, the reduction of CO2 emissions and waste reduction, and an improvementin productivity based on a deep understanding of social and customers’ issues, aiming to become an
indispensable partner of customers in the long term. To boost productivity, the Group achieved resultsin helping customers increase production capacity and winning new projects in the ultrapure water supply
business and tool cleaning business, both highly profitable businesses, and took steps to curb additionalcosts in the design and construction process for water treatment facilities, using a nonconformity
prevention and recurrence prevention model.
Overseas, the Group reviewed the local business portfolios and production and sales systems andexpanded highly profitable business. Meanwhile, the Group strove to build a business structure that is
not easily affected by the external environment. In the first quarter of the fiscal year under review, theGroup acquired 51% of the shares in Kurita AquaChemie Limited (Water Treatment Chemicals
business) in the Middle East and its two wholly owned consolidated subsidiaries to consolidated1

subsidiaries. The Group acquired also Keytech Water Management (Water Treatment Chemicals
business), making it a consolidated subsidiary. The Group took steps to create synergies between thesecompanies’ manufacturing facilities, unique water treatment chemicals, and local personal connections
and sales networks and the Group’s products, technologies, and services and is accelerating businessgrowth in the Middle East and Canada.
* Business profit is the Group’s own indicator that measures constant business performance. It is net
sales less cost of sales and selling, general and administrative expenses. Although business profit is
not defined by IFRS, the Group voluntarily discloses it, believing that it is beneficial for users of its
financial statements.
Segment Information
The Group consists of two reportable segments in its segment information: Water Treatment
Chemicals and Water Treatment Facilities.
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 118,401 million yen, up 14.3%
versus the year-ago period, while net sales rose 14.0%, to 117,672 million yen.
In terms of profits, despite an increase in expenses with business activities returning to a normal
condition and the effect of rising raw materials prices, business profit amounted to 13,589 million yen,
an increase of 10.6% year on year, due to an increase in net sales, and operating profit rose to 14,560
million yen, up 23.2% year on year, reflecting foreign exchange gains (other income) at overseas
subsidiaries in addition to an increase in net sales.
Orders and net sales in Japan increased due to a rise in capacity utilization at customers’ plants,
which reflected a recovery in production activities in the manufacturing industry. Overseas, both orders
and net sales rose due to an increase in reaction to a fall in demand a year ago because of stagnant
economic activities caused by the spread of COVID-19, the consolidation of the operating results (fortwelve months) of the subsidiaries in the Middle East and Canada acquired in the first quarter of the
fiscal year under review, and an increase in results in yen at overseas subsidiaries due to the weakeryen.
Water Treatment Facilities
Total net sales in the ultrapure water supply business in Japan and overseas increased due to thecontribution of contracts that began in the previous fiscal year and the contribution of new projects tosales.
Total Group orders for the Water Treatment Facilities segment were 196,839 million yen, up 24.0%
versus the same period of the previous fiscal year. Net sales increased 3.7%, to 170,534 million yen.
Business profit rose to 19,391 million yen, up 13.2% year on year, chiefly reflecting efforts to improve
profitability, including cost cutting. Operating profit stood at 21,169 million yen, up 7.8% year on year,
due to the absence of a profit from liquidation of 2,066 million yen related to cancellations of contracts
with a certain customer in the ultrapure water supply business posted in other income in the same
period of the previous fiscal year.
In Japan, orders for water treatment facilities for the electronics industry increased significantly,
reflecting the posting of orders for large projects. Net sales also rose due to progress in the constructionof large projects. Orders and net sales for maintenance services for the industry increased, reflecting
the expansion of facilities and repairs, including the replacement of consumables, against a backdropof firm capacity utilization at customers’ plants.
Orders for water treatment facilities for the general industry decreased significantly due tocancellations of orders for large projects. Net sales also declined due to the completion of large projects.
While orders of maintenance services for the industry declined because of business activities
emphasizing profitability, net sales climbed, reflecting growth in demand against a backdrop of arecovery in capacity utilization at customers’ plants. Both orders for and net sales from water treatment2

facilities for the electric power industry decreased because orders for large projects declined and theposting of sales from the order backlog ran its course. Orders for soil remediation services increased,
but net sales fell as the posting of sales from large projects had run its course.
Overseas, both orders and net sales increased due to the posting of orders and sales of large water
treatment facilities projects in the electronics industry in East Asia and an increase in demand for toolcleaning service.
Financial Condition
1) Total assets: 469,981 million yen (increased 45,053 million yen from the end of the previous fiscal
year)
Current assets totaled 178,396 million yen, an increase of 1,914 million yen from the end of theprevious fiscal year ended March 31, 2021. This was mainly attributable to an increase in trade andother receivables of 11,147 million yen due to a rise in net sales, and increases in other current assets
and inventories of 3,784 million yen and 3,221 million yen, respectively, which more than offset a
decrease in cash and cash equivalents of 16,498 million yen chiefly due to purchases of property, plantand equipment and income taxes paid.
Non-current assets totaled 291,585 million yen, an increase of 43,140 million yen from the end of
the previous fiscal year. Property, plant and equipment increased 43,431 million yen chiefly due to theacquisition of facilities related to the opening of a new research and development base, Kurita
Innovation Hub, in Akishima-shi, Tokyo in April 2022, and the ultrapure water supply business (Water
Treatment Facilities business). Goodwill increased 7,396 million yen due to a rise in goodwill recorded
at overseas subsidiaries in yen because of the weaker yen as well as the acquisition of 51% of theshares in Kurita AquaChemie Limited (Water Treatment Chemicals business) in the Middle East andthe conversion of the company and its two wholly owned consolidated subsidiaries to consolidated
subsidiaries of Kurita Water Industries in the first quarter of the fiscal year under review and theacquisition and conversion to a consolidated subsidiary of Keytech Water Management (Water
Treatment Chemicals business) in the first quarter. Other financial assets decreased 10,552 million yen
while deferred tax assets increased 2,872 million yen owing mainly to the sale of a part of shares owned
for policy purposes.
2) Liabilities: 192,119 million yen (increased 25,029 million yen from the end of the previous fiscal
year)
Current liabilities totaled 113,927 million yen, an increase of 38,975 million yen from the end of theprevious fiscal year. This is chiefly attributable to increases in other financial liabilities, trade and otherpayables, and bonds and borrowings of 19,613 million yen, 11,461 million yen, and 7,735 million yen.
Other financial liabilities increased due to liabilities related to the forward contract concluded with
non-controlling shareholders of US-based Pentagon Technologies Group, Inc. (Water Treatment
Facilities business), which were measured after the contract and transferred from non-current liabilities.
No-current liabilities totaled 78,191 million yen at the end of the period, a decrease of 13,946 million
yen from the end of the previous fiscal year. This is because liabilities related to the forward contract
were transferred to current liabilities, and other financial liabilities decreased 11,946 million yen.
3) Equity: 277,862 million yen (increased 20,025 million yen from the end of the previous fiscal year)
This principally reflected a rise of 15,935 million yen in retained earnings primarily due to profit
attributable to owners of parent and an increase of 3,661 million yen in other components of equity
chiefly due to the posting of exchange differences on translation of foreign operations, reflecting theweakening of the yen against other currencies.
Cash Flows
Consolidated net cash and cash equivalents at the end of the fiscal year ended March 31, 2022 totaled
45,730 million yen, a decrease of 16,497 million yen from the end of the previous fiscal year ended
March 31, 2021.
3

The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the fiscal year ended March 31, 2022 totaled 28,737
million yen, a decrease of 11,265 million yen from the previous fiscal year. Inflows from profit before
tax of 30,079 million yen and depreciation and amortization of 23,412 million yen were partly offset
by income taxes paid of 13,308 million yen and an increase in trade and other receivables of 6,713
million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 39,929 million yen, an increase of 29,158 million yen fromthe same period of the previous fiscal year. Cash was used mainly for purchases of property, plant andequipment of 55,096 million yen, which more than offset proceeds from the sale of investment
securities of 9,197 million yen and proceeds from the sale of property, plant and equipment of 8,743
million yen.
3) Cash Flows from Financing Activities
Net cash used in financing activities totaled 7,927 million yen, a decrease of 10,925 million yen fromthe same period of the previous fiscal year. Cash was used mainly for dividends paid of 8,797 million
yen and repayments of lease liabilities of 5,005 million yen, which more than offset a net increase in
short-term borrowings and commercial paper of 7,577 million yen.
The Group’s basic policy is to constantly secure the liquidity necessary for business operations andestablish a stable funds-raising system. Short-term working capital is basically supplied by the Group’s
own funds. Capital investment and other investments in growth fields depend chiefly on the Group’s
own funds, but the Group considers financing through bond markets and bank loans as needed. As ofthe end of the fiscal year under review, the Group has concluded commitment line contracts with one
financial institution (no borrowing executed and unexecuted borrowings within the commitment line
was 20,000 million yen).
(Reference) Indicators related to cash flow
Year ended
Year ended
Year ended
Year ended
Year ended
March 31, 2018 March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2022
Ratio of equity attributable to ownersof parent (%)

73.9

66.0

62.5

59.6

57.9

Ratio of equity attributable to ownersof parent based on market value (%)

117.3

88.3

72.3

125.4

108.7

Ratio of interest bearing debt to cash
flows (%)

42.6

39.6

148.1

130.3

207.0

Interest coverage ratio (times)

41.6

115.9

126.3

187.8

123.9

(Notes) Ratio of equity attributable to owners of parent: Equity attributable to owners of parent / Total assets
Ratio of equity attributable to owners of parent based on market value: Market capitalization / Total assets
Ratio of interest bearing debt to cash flows: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest payments
1. Each indicator is calculated based on consolidated financial figures.
2. Market capitalization is calculated based on the number of shares outstanding excluding treasury stock.
3. Cash flow is net cash provided by operating activities.
4. Interest-bearing debt includes all liabilities requiring the payment of interest under the liabilities section of theconsolidated statement of financial position.
5. The data of the year ended March 31, 2018 are based on Japanese GAAP.

4

Outlook for Overall Business, Including Production, Sales, and Profits and Losses
COVID-19 cases are likely to go up and down. Regardless of that, economic activities are unlikely toslow and will be returning to normal. The global economy is expected to continue growing. Meanwhile,high raw materials prices and the lack of semiconductors are likely to be prolonged. Economic activity
will be maintained in Japan, and the Japanese economy will basically continue to recover moderately
in tandem with the global economy. Capital investment is likely to increase at companies and exports
are set to rise moderately on the back of a recovery in consumer spending and alleviation of shortagesof raw materials and parts, among other factors. Meanwhile, global supply constraints primarily insemiconductors may reduce production activity in some sectors of the manufacturing industry, as
production in the auto industry declined significantly in fiscal 2021. The Company’s forecasts ofconsolidated results are based on that assumption.
There is, however, concern about a slowdown in the global economy due to a recurrence of sluggish
economic activity because of the spread of COVID-19 variants, among other infections, a downturn in
the Chinese economy following the defaults of major real estate companies in China, accelerating
inflation in the United States, rising raw materials and energy prices and disruptions in supply chainsbecause of the Russian invasion of Ukraine, or other factors. In that case, capacity utilization at plantsof customers may fall and capital expenditures may be postponed. It is also possible that businessactivities at the Group will be delayed. If the actually situation becomes very different from ourassumption, our business will be affected and the forecasts may have to be revised.
The consolidated results forecasts for the first half of the fiscal year ending March 31, 2023 and thefull year are as shown below.
(The percentages are year-on-year changes.)First half of the fiscal year
(April 1, 2022
- September 30, 2022)

Full year(April 1, 2022
- March 31, 2023)

Million yen%

Million yen%

Net sales

153,500

13.5

325,000

12.8

Business profit

17,30016.2

38,00015.3

Operating profit

16,60012.6

36,500

2.1

Profit before tax

16,60048.7

36,500

21.3

Profit attributable to owners of parent

11,20096.3

25,70039.1

The business forecasts are made by the Company based on information available at the time of
publication of this report and may differ from actual results due to changes in a range of factors.
Outlook by Segment
Water Treatment Chemicals
Both orders and sales are likely to increase due to organic growth on the back of growth in the world
economy and an initiative to pass sharp rises in raw materials prices on to sales prices. This segment
will seek to improve profitability by focusing on the development of solution models that contributeto creating value shared with society while utilizing IT and sensing technology under a market-based
system integrated with water treatment facilities and maintenance services in Japan and shifting the
focus to highly profitable products and transactions overseas.
Water Treatment Facilities
Orders and net sales are expected to increase chiefly due to the expansion of demand for maintenanceservices and growth in the ultrapure water supply business. This segment will seek to enhance
profitability by focusing on advancing digital transformation in the customer contact area and in the
production process and developing solution models.

5

Dividend Policy and Dividends for the Fiscal Year ended March 31, 2022 and the Fiscal Yearending March 31, 2023
Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.
Setting a payout ratio of 30 to 50% as our target, we will work to continue to increase dividends,
making decisions based on the payout ratios for the most recent five years to respond flexibly tofluctuations in business performance each year. In using retained earnings, we will maintain capitaldiscipline and will prioritize promising business fields that are expected to grow. If we have decided
that there are excess funds, we will take steps to improve capital efficiency and return profits toshareholders, including the acquisition of treasury stock, taking the share price into consideration.
We intend to pay a year-end dividend of 36 yen per share for the fiscal year ended March 31, 2022,
2 yen more than the previous year-end dividend. Combined with the interim dividend of 36 yen per
share (4 yen more than the previous interim dividend), the annual dividend comes to 72 yen per share,
6 yen higher than the previous fiscal year’s annual dividend. For the fiscal year ending March 31, 2023,
Kurita Water Industries plans to pay an interim dividend of 39 yen per share and a year-end dividendof 39 yen per share, for an annual dividend to be 78 yen per share.
The dividend forecasts above are made by the Company based on information available at the timeof publication of this report. Actual results may differ from them due to a range of factors.
Basic Concept for the Selection of Accounting Standards
The Kurita Group voluntarily applied IFRS from the first quarter of the fiscal year ended March 31,
2020 for its consolidated financial statements for the purpose of increasing the international
comparability of financial information and unifying accounting treatment within the Group.

6

Consolidated financial statements(1) Consolidated statement of financial position(Million yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and cash equivalents

62,22845,730Trade and other receivables

97,745

108,892

Other financial assets

2,817

3,075

Inventories

9,911

13,132Other current assets

3,780

7,564

Total current assets

176,482

178,396

Property, plant and equipment

117,603

161,034

Right-of-use assets

19,40519,042

Goodwill

55,59662,992Intangible assets

17,32018,092

Non-current assets

Investments accounted for using equity method

1,578

1,191

Other financial assets

33,56323,011

Deferred tax assets

3,199

6,071

Other non-current assets

177

150

Total non-current assets

248,445

291,585

424,928

469,981

Total assets

7

(Million yen)
As of March 31, 2021

As of March 31, 2022

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Lease liabilities
Other financial liabilities
Income taxes payable

46,50657,967

445

8,180

4,373

4,683

‒

19,613

8,135

8,663

Provisions

1,847

1,529

Other current liabilities

13,644

13,289Total current liabilities

74,952

113,927

Bonds and borrowings

31,20730,953

Lease liabilities

15,327

14,862Other financial liabilities

13,703

1,757

Retirement benefit liability

18,027

18,144

Provisions

1,160

2,335

Deferred tax liabilities

2,368

2,646

Other non-current liabilities

10,343

7,491

Total non-current liabilities

92,137

78,191167,090

192,119

Share capital

13,45013,450Capital surplus(2,212)(3,076)

Treasury shares(10,787)(10,694)

8,500

12,161Retained earnings

244,138

260,073

Equity attributable to owners of parent

253,089

271,914

Non-current liabilities

Total liabilities
EquityOther components of equity

Non-controlling Interests
Total equity
Total liabilities and equity

4,748

5,948

257,837

277,862

424,928

469,9818

(2) Consolidated statement of profit or loss and comprehensive income
Consolidated statement of profit or loss
(Million yen)
Year ended March 31, 2021

Year ended March 31, 2022

267,749

288,207173,073

183,928

94,676104,278

Selling, general and administrative expenses

65,206

71,334

Other income

5,929

6,119

Net sales
Cost of sales
Gross profit

Other expenses
Operating profit

3,870

3,329

31,52935,734

Finance income

545

601

Finance costs

1,923

6,176

Share of profit (loss) of investments accounted for using
equity method

(999)

(80)

29,15030,0799,326

10,454

19,824

19,62419,08818,471735

1,153

19,824

19,624169.94164.38‒‒

Profit before tax
Income tax expense
Profit for the period
Profit attributable to
Owners of parent
Non-controlling Interests
Profit for the period
Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)9Consolidated statement of comprehensive income(Million yen)
Year ended March 31, 2021

Year ended March 31, 2022

19,824

19,624

Net change in the fair value of financial assets
measured at fair value through other comprehensive
income5,202

520

Remeasurements of defined benefit plans

(234)

417

4,968

938

Exchange differences on translation of foreign
operations

4,851

8,692

Cash flow hedges

(594)

131

24

121

4,280

8,944

9,249

9,883

29,07329,50728,021

27,501

Profit for the period
Other comprehensive income
Items that will not be reclassified to profit or loss

Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss

Share of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Other comprehensive income, net of tax
Comprehensive income for the period
Comprehensive income attributable to
Owners of parent
Non-controlling Interests
Comprehensive income for the period

1,052

2,005

29,07329,50710

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2021 (April 1, 2020 - March 31, 2021)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2020

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,4508,212(10,893)(9,033)

503

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

4,560

(594)

5,202

Total comprehensive income for the period

8,747

‒

‒

‒

4,560

(594)

5,202

Purchase of treasury shares

‒

‒

(4)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

9

111

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

(991)

‒

4

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders‒(10,578)

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(888)

Other

‒

1,135

‒

‒

‒

‒

Total transactions with owners‒(10,424)

106

4

‒

(888)

Balance as of March 31, 2021

13,450(2,212)(10,787)(4,469)(91)

13,060(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controlling
Interests

Total

Total

Balance as of April 1, 2020‒

216

231,456

242,442

1,666

244,108

Profit for the period‒‒

19,08819,088735

19,824

(235)

8,932

‒

8,932

316

9,249

(235)

8,932

19,08828,021

1,052

29,073Purchase of treasury shares

‒

‒

‒

(4)

‒

(4)

Dividends‒‒(7,076)(7,076)(1,013)(8,090)Share-based payment transactions

‒

‒

‒

120

(9)

111

Changes in ownership interests in subsidiaries

‒

4

‒

(986)

(208)

(1,194)

Increase (decrease) by business combination

‒

‒

‒

‒

3,260

3,260

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

(10,578)‒(10,578)

Transfer from other components of equity toretained earnings

235

(653)

653

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

‒

‒

16

1,152

‒

1,152

Total transactions with owners

Other

235

(648)

(6,406)(17,373)

2,029(15,344)

Balance as of March 31, 2021

‒

8,500

244,138

253,089

4,748

257,837

11

Fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2021

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(2,212)(10,787)(4,469)(91)

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

7,962

131

520

Total comprehensive income for the period

13,060

‒

‒

‒

7,962

131

520

Purchase of treasury shares

‒

‒

(5)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

57

98

‒

‒

‒

Changes in ownership interests in subsidiaries‒(1,115)

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(4,954)

Other

‒

193

‒

‒

‒

‒

Total transactions with owners

‒

(864)

93

‒

‒

(4,954)

Balance as of March 31, 2022

13,450(3,076)(10,694)

3,493

40

8,627

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controlling
Interests

Total

Total

Balance as of April 1, 2021

‒

8,500

244,138

253,089

4,748

257,837

Profit for the period‒‒

18,471

18,471

1,153

19,624

415

9,030

‒

9,030

852

9,883

415

9,030

18,471

27,501

2,005

29,507Purchase of treasury shares

‒

‒

‒

(5)

‒

(5)

Dividends‒‒(7,865)(7,865)(943)(8,809)

Share-based payment transactions

‒

‒

‒

155

23

179

Changes in ownership interests in subsidiaries

‒

‒

‒

(1,115)(268)(1,384)

Increase (decrease) by business combination

‒

‒

‒

‒

357

357

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings(415)(5,369)

5,369

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

‒

‒

(41)

152

26

179

Total transactions with owners

Other

(415)

(5,369)(2,536)(8,677)(805)(9,483)

Balance as of March 31, 2022‒

12,161

260,073

271,914

5,948

277,86212

(4) Consolidated statement of cash flows(Million yen)
Year ended March 31, 2021

Year ended March 31, 2022

Profit before tax

29,15030,079Depreciation and amortization

20,73923,412

999

80

Loss (gain) on sale of fixed assets(1,333)(4,073)

Decrease (increase) in inventories

254(1,918)Decrease (increase) in trade and other receivables

746(6,713)

Increase (decrease) in trade and other payables(2,904)

1,459

Cash flows from operating activities

Share of loss (profit) of investments accounted for using
equity method

Other(3,410)(828)

44,242

41,497

Interest received

153

177

Dividends received

360

601

SubtotalInterest paid

(213)

(232)

Income taxes paid

(4,541)(13,308)

Net cash provided by (used in) operating activities

40,002

28,737

Payments into time deposits(1,856)(2,348)Proceeds from withdrawal of time deposits

1,588

2,175

Purchase of property, plant and equipment

Cash flows from investing activities(14,055)(55,096)

Proceeds from sale of property, plant and equipment

8,401

8,743

Purchase of intangible assets(1,909)(2,038)Proceeds from sale of investment securities

2,533

9,197

Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)(4,599)(2,401)

Other

(874)

1,839

(10,771)(39,929)

Net increase (decrease) in short-term borrowings andcommercial paper(35,001)

7,577

Proceeds from issuance of bonds

29,882

‒

(645)

(485)

Repayments of lease liabilities(5,033)(5,005)

Dividends paid

(8,083)(8,797)‒(1,440)Net cash provided by (used in) investing activities
Cash flows from financing activities

Repayments of long-term borrowings

Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Other

29

224

Net cash provided by (used in) financing activities(18,852)(7,927)

Effect of exchange rate changes on cash and cash equivalents

1,634

2,622

Net increase (decrease) in cash and cash equivalents

12,013(16,497)

Cash and cash equivalents at beginning of period

50,21562,228Cash and cash equivalents at end of period

62,22845,73013Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Not applicable(Segment Information)(1) Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial information is available. Thesesegments are subject to periodic review to enable the Company’s board of directors to decide how to allocate resources and assess
performance.
The Group plans comprehensive strategies for the products that it handles in Japan and overseas, and develops a business. The Group’s
operations are therefore classified into two reportable segments, the Water Treatment Chemicals segment and the Water Treatment
Facilities segment.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals and equipment and provides maintenanceservices. The Water Treatment Facilities segment manufacturers and sells water treatment system and facilities, supplies ultrapure
water, chemical cleaning, tool cleaning, soil and groundwater remediation services, and provides maintenance services that encompass
operation, maintenance, and management of water treatment facilities.

14

(2) Information of reportable segments
Inter-segment net sales are based on prevailing market prices.
Fiscal year ended March 31, 2021 (April 1, 2020 - March 31, 2021)(Million yen)
Reportable Segments

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

Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

103,231453

164,518
2,306

267,749
2,760‒(2,760)267,749‒

103,684

166,825

270,509(2,760)267,749

11,816

19,634

31,451

78

31,529Finance income

545

Finance costs

1,923

Share of profit (loss) of investments accounted for using equity method(999)

Profit before tax

29,150(Million yen)
Reportable Segments

Segment assets
Other amounts
Depreciation and amortization
Impairment loss
Investments accounted for using equity
methodCapital expenditures

Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

123,476

233,530

357,006

67,921

424,928

4,986‒

15,752
1,419

20,7391,419‒‒

20,739
1,419

1,448

110

1,558

19

1,578

8,719

25,84834,568‒34,568(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.
3. Segment assets: Amount resulting from eliminations of inter-segment transactions.
The main factor of adjustments for segment assets is company-wide assets that are not allocated to the reportable segments.
4. Capital expenditures include an increase in right-of-use assets.
5. Capital expenditures do not include assets acquired through corporate acquisitions.
6. The main factor of impairment loss is a loss on goodwill impairment of 1,304 million yen.

15

Fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)(Million yen)
Reportable Segments

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

Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

117,672518

170,534
561

288,207
1,080‒(1,080)288,207‒

118,191

171,095

289,287(1,080)288,207

14,56021,16935,729435,734

Finance income

601

Finance costs

6,176

Share of profit (loss) of investments accounted for using equity method(80)

Profit before tax

30,079(Million yen)
Reportable Segments

Segment assets
Other amounts
Depreciation and amortization
Impairment loss
Investments accounted for using equity
methodCapital expenditures

Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

148,267

274,119422,386

47,595469,9815,935
380

17,477647

23,412
1,028‒‒

23,412
1,028

988

163

1,152

39

1,191

11,45457,016

68,471‒

68,471(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.
3. Segment assets: Amount resulting from eliminations of inter-segment transactions.
The main factor of adjustments for segment assets is company-wide assets that are not allocated to the reportable segments.
4. Capital expenditures include an increase in right-of-use assets.
5. Capital expenditures do not include assets acquired through corporate acquisitions.
(3) Information related to products and services
Information about products and services is omitted because the classifications are the same as the reportable segments.
(4) Information related to geographic regions
Non-current assets and sales to external customers by geographic region in each fiscal year are as follows.
(i) Non-current assets(Million yen)
As of March 31, 2021
Japan
Asia
North & South America
EMEA
Total

As of March 31, 2022
119,495
17,93955,693
16,975

159,264
19,45061,74020,855

210,104

261,311(Note) Non-current assets are allocated based on the location of assets. Financial instruments or deferred tax assets are not included.
EMEA stands for Europe, the Middle East and Africa. Also, the geographical segments have changed. Other and North America
have been consolidated into North & South America. The figures for the year ended March 31, 2021 are calculated byreclassifying the figures in the geographical segments before the change.

16

(ii) Net sales(Million yen)
Year ended March 31, 2021
Japan
Asia
North & South America
EMEA
Total

Year ended March 31, 2022

161,371
48,535
39,16018,681

159,365
58,032
46,351
24,457

267,749

288,207(Note) Net sales are allocated to a country or areas based on the locations of customers.
EMEA stands for Europe, the Middle East and Africa. Also, the geographical segments have changed. Other and North America
have been consolidated into North & South America. The figures for the year ended March 31, 2021 are calculated byreclassifying the figures in the geographical segments before the change.
(5) Information related to major customers
Because there is no single external customer that accounts for 10% or more of the net sales in the consolidated statement of income,no information is stated here.

(Business Combination)(Transaction under Common Control)(1) Outline of the transaction(i) Company names and businesses at the time of integrationi) Surviving company
Company nameBusiness description

Kurita Water Industries Ltd.
Manufacture and sale of water treatment chemicals and water treatment facilities; maintenance of water
treatment facilities; ultrapure water supply; soil and groundwater remediationii) Merged companies
Company nameBusiness description

Kurita Engineering Co., Ltd. (“Kurita Engineering”)
Plant cleaning and maintenance; manufacture and sale of cleaning and sewage treatment chemicals,

facilities, and equipment; rental of temporary machinery(ii) Date of business combination
April 1, 2021(iii) Legal form of business combination
The business combination is an absorption-type merger. The surviving company is the Company. Kurita Engineering has been
dissolved.
(iv) Name of the company after business combination
Kurita Water Industries Ltd.
(v) Main reason of integration
Kurita Engineering was established in 1959, by spinning off the chemical cleaning division of the Company. As a leading plantcleaning engineering company, Kurita Engineering engages primarily in chemical cleaning for large plants in Japan. In the social
and industrial infrastructure market, including the electricity, iron and steel, petroleum refinery and petrochemical industries, which
are primarily where Kurita Engineering and the Company operate, needs to reduce the environmental impact, including
decarbonization to address climate change, and demand for productivity improvement is increasing.
The merger enables the Company to appropriately respond to those needs by harnessing Kurita Engineering’s strong technologicalbase and customer base and using in an agile way the Company’s management resources, including financial capital and humancapital, and to provide optimal solutions. The Company will build a system to promptly respond to social and customer needs inthe social and industrial infrastructure market and will expand the plant cleaning business and achieve sustainable growth in thebusiness.
(2) Outline of accounting
The business combination under common control is a business combination in which all companies or businesses involved areultimately controlled by the same company before and after the business combination. The control is not temporary. The Group
continues to perform accounting treatment for all business combination transactions under common control based on book value.

17

(Per Share Information)
The basis for calculation of basic earnings per share is as shown below.
(Million yen)
Year ended March 31, 2021
Profit attributable to owners of parent

19,08818,471‒‒

Amount not attributed to common stockholders
Profit that is used for calculating basic earnings per share
Average number of common shares outstanding

Year ended March 31, 2022

19,08818,471

112,327,368

112,368,155(Notes) 1. Because there are no dilutive shares, diluted earnings per share are not stated.
2. The Company’s own shares posted as treasury shares remaining in trust are included in the treasury shares that are deductedin the calculation of the average number of shares outstanding for calculation for basic earnings per share. (253,000 sharesin the fiscal year ended March 31, 2022, 286,000 shares in the fiscal year ended March 31, 2021)(Consolidated Statement of Profit or Loss)
In the fiscal year under review, a gain on the sale of fixed assets (mainly land and buildings) of 4,079 million yen was posted in otherincome.

(Significant Subsequent Events)
Not applicable(Additional Information)(Transfer of fixed assets)(1) At a meeting of the Board of Directors held on February 28, 2022, the Company resolved to transfer fixed assets, and the Company
concluded a real estate sales contract on March 22, 2022. The transfer was completed on March 22, 2022.
(i) Reason for the transfer
To use management resources effectively and increase asset efficiency, the Company decided to transfer the fixed assets below.
(ii) Assets to be transferred
Description and location of assets
Mainly real estate for rent
Land: 1,414.89 m2(4-7, Nishi-Shinjuku 3-chome, Shinjuku-ku,
Tokyo)

Transfer priceBook value

Capital gain

Present status

(*1)

(*1)

2,894 million yen

Mainly realestate for rent

*1 The transfer price and book value are not disclosed in line with the wishes of the transferee. The assets are transferred at areasonable price that reflects the market price.
(iii) Outline of transferee
The Company has refrained from disclosing information on the transferee under an agreement with it. There is no information tonote regarding capital ties, personal relationships or related party matters between the transferee and the Company.
(iv) Schedule(1) Date of resolution by the Board of Directors

February 28, 2022

(2) Date of conclusion of contract

March 22, 2022

(3) Date of delivery of assets

March 22, 2022(v) Effects of the event on profits and losses
A gain on sale of fixed assets of 2,894 million yen has been posted in other income due to the event in the fourth quarter in thefiscal year ended March 31, 2022.

18

(2) At a meeting of the Board of Directors held on October 29, 2021, the Company resolved to transfer fixed assets, and the Company
concluded a real estate sales contract on December 16, 2021. The transfer was completed on March 31, 2022.
(i) Reason for the transfer
To use management resources effectively and increase asset efficiency, the Company decided to transfer the fixed assets below.
(ii) Assets to be transferred
Description and location of assets
Osaka Office
Land: 1/2 (co-ownership share) of 703.52 m2
Buildings: 3,068.41 m2 (total floor area)(2-22, Kitahama 2-chome, Chuo-ku, Osaka-shi,
Osaka)

Transfer priceBook value

Capital gain

Present status

(*1)

(*1)

1,079 million yen

Regional office*1 The transfer price and book value are not disclosed in line with the wishes of the transferee. The assets are transferred at areasonable price that reflects the market price.
(iii) Outline of transferee
The Company has refrained from disclosing information on the transferee under an agreement with it. There is no information tonote regarding capital ties, personal relationships or related party matters between the transferee and the Company.
(iv) Schedule(1) Date of resolution by the Board of Directors

October 29, 2021

(2) Date of conclusion of contract

December 16, 2021

(3) Date of delivery of assets

March 31, 2022(v) Effects of the event on profits and losses
A gain on sale of fixed assets of 1,079 million yen has been posted in other income due to the event in the fourth quarter in thefiscal year ended March 31, 2022.

Disclaimer- This document is an English translation of the Earnings Report for the Fiscal Year Ended March 31, 2022 as reference information
primarily for overseas investors. If there are any discrepancies between the Japanese version and the English version, the Japaneseversion shall take precedence in all cases.
- This document is not subject to audit.
- The forward-looking statements such as performance forecasts contained in this document are based on information currently
available to the Company and certain assumptions deemed to be reasonable, and are not intended to be a commitment by the Company.
Actual performance, etc. may differ due to a variety of factors. See “Outlook for Overall Business, Including Production, Sales, andProfits and Losses” on page 5 of this document for the conditions assumed in the performance forecasts and the precautions concerning
the use of performance forecasts.

19