Summary of Q&A Session at the Financial Results Briefingfor the First Half of the Fiscal Year Ending March 31, 2012

Date and time: Tuesday, November 1, 2011, from 3:00 p.m. to 3:40 p.m.
Place: Belle Salle Yaesu
Notice: This summary is a reference designed for the convenience of those who could not attend thefinancial results briefing stated above. Please note that this is not a word-for-word transcript of all
remarks made at that session, but is a summary prepared by Kurita Water Industries Ltd.
Q: In the forecast orders from the electronics industry for the second half of the fiscal year underreview, the Company expects to receive a relatively large amount of overseas orders for
hardware. It is generally considered that the economic situation will deteriorate in the second
half. What are the chances of the Company achieving these figures in the plan?
A: With respect to facilities for the electronics industry, because there will be almost no large-scale
capital spending in Japan, most of the orders are expected to come from overseas. Specifically,orders for semiconductor projects are mainly from South Korea, and orders for projects related
to flat-panel displays are mainly from South Korea and China. We believe that the probability
that these orders will be received is high.
Q: The Company forecasts that the operating margin of facilities for the electronics industry willreach 19.8% for the second half, improving from 18.3% achieved in the first half. What isbehind the improvement in the profit margin, despite the fact that the service business sales
ratio in the second half is expected to decline from the first half?
A: First, the Company expects that the sales mix of maintenance services will improve. Second, it
expects that, while sales of hardware will increase, the profit margin on hardware will improve,reflecting the expectation of sales of profitable projects.
Q: What was the ratio of semiconductors and flat-panel displays and electronics components inorders for hardware for the electronics industry for the first half?
A: Semiconductors accounted for approximately 60%, and flat-panel displays and electronics
components for approximately 40%.
Q: Are there any orders brought forward from the previous term in the orders for facilities forgeneral industries for the first half?
A: No. There were no large-scale projects brought forward from the previous term.
Q: Was the increase in orders from the electric power industry mainly attributable to the earthquake?
Will there be any demand related to the earthquake in the next fiscal year?
A: The majority of the increase in orders for hardware from the electric power industry wasattributable to demand from reconstruction efforts in the wake of the earthquake. As
reconstruction work will continue over the long term, these types of sales will continue to beposted in the next fiscal year, although orders for this work are likely to fade.
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Q: There appears to be an increasing number of cases of contract expiration in the ultrapure watersupply business. What is the impact on contract renewal in the ultrapure water supply businessof the current business situation, in which the final demand, prices, and capital spending for
PCs and flat-panel displays have been changing?
A: The Company does not expect that the handling of issues when contracts are expiring will beaffected by the demand situation or investment trends. When contracts expire, there are several
options, including, first, renewing contracts, second, entering into operation and maintenance(O&M) contracts after transferring the ownership of facilities to customers, and, third,continuing to manage operations, but reentering into maintenance contracts, when appropriate,after transferring the ownership of facilities to customers. In any case, as the Company has
been managing operations over a period of ten years, it will be difficult for customers to
immediately take over operations. As a basic stance, the Company will aim to secure earnings
by changing contracts to O&M contracts.
Q: Are there any minimum operation guarantee in the case of O&M contracts? Is the size of thebalance sheets going to fall with the entries of O&M contracts?
A: The Company will manage operations by allocating its full-time employees to the site. As formaintenance, the Company will enter into long-term contracts. In each fiscal year, theCompany will determine items such as consumables, tanks, and pumps, for which
maintenance work is conducted, and will undertake maintenance work item by item. TheCompany has already concluded comprehensive maintenance contracts in Japan. O&M
contracts can be regarded as one such comprehensive contract. With respect to balance sheets,
because facilities and assets are basically transferred to customers, the Company’s balance
sheets will become smaller.
Q: Can the Company develop an overseas ultrapure water supply business in the near future?
A: The issue is how the Company deals with risks, such as country risks, foreign exchange risks,
cash collection risk, and differences in business custom and culture. Basically, the firstconsideration will be profitability. Then, if risks can be minimized, and if projects offer similar
conditions to those in Japan, the Company will look at these overseas businesses as one of its
potential businesses. The Company does not expect to develop any overseas businesses in thesecond half, but it will not completely rule out the development of overseas businesses in thefuture.
Q: The Company announced a share buybacks at around this time last year. It now appears to havesufficient cash flow, as last year. What is the Company’s policy in this regard?
A: The Company plans to use funds for developing future businesses including the ultrapure watersupply business and for executing M&A and alliances over the medium and long terms. It will
also consider the possibility of share buybacks, when appropriate, by taking into account thebalance of overall operations.
Q: The Company has been competitive in the flat-panel displays sector in South Korea. It has now
captured orders in the semiconductor sector. How have competitive conditions changed?
A: The Company had business in the semiconductor sector in South Korea some time ago, but it has
recently focused on the flat-panel displays sector. Recently, however, a customer in South
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Korea have come to fully appreciate the Company’s technologies, quality management, andconstruction and maintenance capabilities, and the customer decided that the Company had theedge over its competitors. The Company’s unit systems for semiconductor production
processing have also been appreciated by the customer. Although the competitive environment
is likely to remain severe, because the Company has earned a reputation for its superiority, itexpects strong flows of repeat orders.
Results forecasts presented and other statements relating to the future made in this document arebased on information currently available and certain assumptions, which the Company considers
reasonable. A variety of factors may cause actual financial results and other forward-looking
statements to differ materially from the forecasts.

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