Study the properties of water, master them,and we will create an environment
in which nature and man are in harmony.

Kurita Water Industries Ltd.
Results Presentation for the First Quarterof the Year Ending March 31, 2016
(Stock code: 6370)

August 3, 2015

Results for the 1Q of the Year Ending March 2016

(Billions of Yen)
Fiscal Year to
March 2015
First Quarter
ActualFiscal Year to
March 2016
First Quarter
ActualYear-on-Year
ChangeFiscal Year to
March 2016
First Half
Projections

Year-on-Year
ChangeOrders

46.1

54.0+ 17.2%111.2+ 14.7%

Net Sales

38.942.5+ 9.4%

101.4

+ 14.0%Operating Income

3.0

3.6+ 18.2%

8.7+ 0.7%

Ordinary Income

3.24.0+ 22.5%

8.9- 3.2%

Net Income

2.12.6+ 23.5%

5.5- 6.5%

 Orders increased in the Water Treatment Facilities business and also rose in the Water Treatment Chemicals
business due to the acquisition effect.
 Net sales rose in the Water Treatment Chemicals business mainly due to the acquisition effect.
 Operating income grew, reflecting improvement in the cost of sales ratio, despite an increase in SG&A expenses
mainly due to the acquisition effect.
 As a result of the lowering of the effective tax rate, tax expenses decreased.

1

Results for the 1Q of the Year Ending March 2016

Water treatment chemicals

Water treatment facilities

Orders

Sales(Billions of Yen)

(Billions of Yen)

54.0

60

60

46.1

38.9

19.3

14.8

30

30

0

31.3

34.706/2014

06/20150

Operating Income

13.8

18.4

25.0

24.1

06/201406/2015

(%)

3.6

4

3.0

12.5
1.8

11

1.7

7.8
1.3
0

42.5

Operating Income Margin(Billions of Yen)

2

Total

06/20141.806/2015

9.6
8.4
7.4

5.2
406/2014

06/20152

Results for the 1Q of the Year Ending March 2016

(Billions of Yen)

201014.8

Orders / Sales

19.3

 Domestic orders and sales increased slightly, reflecting amoderate recovery in customers’ capacity utilization.

006/2014

 Overseas orders and sales expanded in Europe due to the06/2015(Billions of Yen)acquisition effect and also grew smoothly in China and20

Southeast Asia.

1013.8006/2014

18.406/2015(Billions of Yen)(%)

21412.5

9.6

1

 Operating income increased due to the effect of higher sales,
71.7

Operating Income

1.8

despite an increase in SG&A expenses.
 The operating income margin declined, primarily reflecting theeffect of amortization of goodwill and technology-related assets,

006/2014

06/2015
Operating income margin

0etc.

3

Results for the 1Q of the Year Ending March 2016

(Billions of Yen)

20

Orders10

 Orders for hardware overseas increased, reflecting the acquisitionof large contracts in China and Taiwan.
 Orders for maintenance services in Japan grew due to recovery indemand.
 Orders in the ultrapure water supply business rose slightly.

015.8
06/201418.4

06/2015

Sales(Billions of Yen)

20

 Sales of tool cleaning declined due to a withdrawal fromunprofitable businesses.
 Sales of hardware overseas increased with progress in

100

15.5

14.906/2014

06/2015(Billions of Yen)

(%)

3.4

16

Operating Income

15.2
12.7
1.7

8

2.0
0.006/2014

 Operating income increased with an improvement in the cost ofsales ratio, despite an increase in SG&A expenses.

2.306/2015
Operating income margin

construction.
 Sales of maintenance services in Japan grew due to recovery indemand.
 Sales in the ultrapure water supply business increased slightly.

04

Results for the 1Q of the Year Ending March 2016

(Billions of Yen)

Orders18

 Orders for soil remediation increased mainly in assessment
9contracts for land transactions, etc.

15.6

16.2

 Orders for electric power industries hardware declined due totiming differences.

006/2014

 Orders for general industries hardware fell slightly.

06/2015(Billions of Yen)

18

Sales
 Sales of general industries hardware declined due to delayed
progress in construction.

99.5

 Sales of electric power industries hardware increased due to

9.2

progress in construction.
006/2014

06/2015(Billions of Yen)

(%)

110

Operating Income The operating loss contracted thanks to an improvement in the-0.500

cost of sales ratio.

-0.7-1-7.206/2014-5.006/2015-10

Operating income margin5

Results for the 1Q of the Year Ending March 2016

Service Business Revenue
in the Water Treatment Facilities Segment
Water treatment chemicals(Billions of Yen)

24

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

19.7

19.6

7.9

8.0

Ultrapure watersupply business

2.1

1.7

Tool cleaning

9.7

9.9

Maintenance, etc.

06/201406/2015

50

42.5
38.9
18.4

13.8
25

37.9

33.6

0

12

19.7

19.6

5.3

4.6

06/201406/20150 Revenue from tool cleaning declined, but revenues from water treatment chemicals and maintenance increased.
 Service business revenue accounted for 89.3% of total sales.
6Results for the 1Q of the Year Ending March 2016

AssetsLiabilities and Net Assets(Billions of Yen)

293.2
67.5

(- 2.0)

80.8

293.2

282.0
65.5

72.9

(Billions of Yen)

Cash,deposits andmarketablesecurities

69.7

282.0
61.3

Liabilities(- 8.4)

Other current
assets(- 7.9)

74.0

74.7

Tangible
fixed assets

223.5

220.7

Net assets(+ 0.6)70.9

68.9(- 1.9)Mar. 31, 2015

Jun. 30, 2015

Other fixedassets(- 2.8)Mar. 31, 2015

Jun. 30, 2015

 Other current assets declined due to the collection of accounts receivable-trade.
 Liquidity on hand declined, mainly because of the acquisition of treasury shares.
 Other fixed assets decreased, reflecting the amortization of goodwill and technology-related assets, etc. and a fall in
their yen equivalent.

7