Kurita Water Industries Ltd.

Results Presentation for
the First Nine Months of the Fiscal YearEnding March 31, 2023
(Securities code: 6370)

February 3, 2023

Table of Contents
12

Consolidated Financial Results for the First Nine Months ofthe Fiscal Year Ending March 31, 2023

p 1-10

Revision to Forecast for the Fiscal Year Ending March 31, 2023

p 11-13

1

Consolidated Financial Results for the First Nine Monthsof the Fiscal Year Ending March 31, 2023

Overview of Results
Nine months of
FY ended 03/2022(Billions of Yen)

Nine months ofFY ending 03/2023

YoY ChangeOrders218.8

288.1+31.6%

Net Sales

211.2

251.7

+19.2%

Business Profit

25.2

28.4

+12.6%Net of Other Income and Expenses

0.3(0.7)-Operating Profit

25.5

27.7+8.3%

Profit Before Tax

20.8

29.0+ 39.4%

Profit Attributable to Owners of Parent

12.0

20.1

+ 67.5%107.08179.28-USD (yen)

111.1

136.5

EUR (yen)

130.6

140.6

CNY (yen)

17.3

19.9

Basic Earnings per Share (yen)Foreign Exchange Rate

⚫ Profit before tax and profit below rose significantly due to the change in the net of finance income*1 and costs*2accompanying the acquisition of additional shares in Pentagon Technologies Group, Inc.
*1 Finance income of 1.1 billion yen posted in this fiscal year from derivatives transactions*2 Finance costs of 4.6 billion yen posted in previous fiscal year from the subsequent measurement of liabilities related to a forward contract concluded with
non-controlling shareholders
1Results by Segment(Billions of Yen)

(Billions of Yen)

Total

Water
Treatment
Chemicals

Water
Treatment
Facilities

Nine months ofFY ended 03/2022

Nine months ofFY ending 03/2023

YoY ChangeOrders

218.8288.1+69.2

Net Sales

211.2

251.7+40.5

Business Profit

25.2

28.4+3.2

Business Profit
Margin11.9%

11.3%(0.7pp)

Operating Profit

25.5

27.7+2.1

Orders87.6

102.5+14.9

Net Sales

87.9

102.9+15.1

Business Profit

10.8

12.4+1.6

Business Profit
Margin

12.3%12.1%(0.3pp)

Operating Profit

11.1

12.3+1.2

Orders131.2

185.5+54.3

Net Sales

123.4

148.8+25.4

Business Profit

14.4

16.0+1.6

Business Profit
Margin11.7%

10.7%(0.9pp)

Operating Profit

14.4

15.4+1.0⚫ Both net sales and profit in the Water Treatment
Chemicals business rose chiefly due to overseas
business growth.

⚫ Orders in the Water Treatment Facilities businessincreased, reflecting increases in orders for facilities
and maintenance in Japan and overseas.
⚫ Net sales in the Water Treatment Facilities businessincreased for the domestic electronics industry andoverseas, while decreased for domestic generalindustries.
⚫ Business profit in the Water Treatment Facilities
business increased as the impact of increased sales
exceeded an increase in SG&A expenses and aworsening in the cost of sales ratio.

2Factors in Change in Business Profit (YoY Change)(Billions of Yen)

45

Impact ofincreased sales

Worsening in thecost of sales ratio

40+14.6(3.4)

Increase in
SG&A expenses
(8.0)

3530

⚫ Increased raw materials
prices and logistics costsin the Water Treatment
Chemicals business

25.2

25
20
15

10
5

FY03/2022
nine-monthresults⚫ Increased sales in boththe Water Treatment
Chemicals businessand Water Treatment
Facilities business⚫ Impact of foreignexchange rate

⚫ Worsening of the productmix as well as increased
energy and manpower
costs in the Water
Treatment Facilities
business

28.4⚫ Increase in expenses
related to the operationof the newdevelopment base
⚫ Increase in sales
expenses

FY03/2023
nine-monthresults⚫ Impact of foreignexchange rate

YoY change : +3.2
[Impact of foreign exchange rate +1.4 included]

03

Water Treatment Chemicals
Nine months ofFY ended 03/2022

Nine months ofFY ending 03/2023

YoY Change

87.6

102.5

+14.9

Domestic

32.2

32.3

+0.1

Overseas

55.4

70.2

+14.8

Net Sales

87.9

102.9

+15.1

Domestic

32.5

32.7

+0.2

Overseas

55.4

70.2

+14.8

Business Profit

10.8

12.4+1.6

Business ProfitMargin

12.3%

12.1%(0.3pp)

Operating Profit

11.1

12.3+1.2

Nine months ofFY ended 03/2022

Nine months ofFY ending 03/2023

YoY Change

Asia

20.0

23.6+3.6

North & South America

17.4

24.5+7.1

EMEA

18.0

22.1+4.2

55.4

70.2

+14.8

(Billions of Yen)

(Billions of Yen)
Orders⚫ In Japan, due to the continued impact of COVID-19
and shortages of semiconductors in certain
industries, net sales were almost unchanged fromthe same period of the previous fiscal year.
⚫ Overseas, net sales increased due to revisions tosales prices in response to rising raw material
prices, the development of CSV business, and an
impact of foreign exchange rate.
⚫ Business profit increased. This is because theimpact of increased sales more than offset theimpact of the worsening in the cost of sales ratio andincrease in SG&A expenses.

Overseas Net Sales by Region(Billions of Yen)

TotalFactors in Change (Billions of Yen)
Organic Change+5.9

Effect of Foreign Exchange Rate

+8.94

Water Treatment Facilities (for the domestic electronics industry)
Nine months ofFY ended 03/2022

Nine months ofFY ending 03/2023

YoY Change

47.9

61.4+13.5

Facilities

4.3

11.2+6.8

Maintenance

13.0

15.2+2.2

Ultrapure Water
Supply Business

23.2

27.9+4.7

Precision Tool
Cleaning

7.3

7.1(0.2)

Net Sales

47.3

56.0+8.7

Facilities

4.3

7.4+3.1

Maintenance

12.5

13.7+1.2

Ultrapure Water
Supply Business

23.2

27.9+4.7

Precision Tool
Cleaning

7.2

7.0(0.2)(Billions of Yen)

Orders⚫ Orders for facilities increased reflecting orders forlarge projects, and net sales also increased due toprogress on the construction of ordered projects.

⚫ Both orders and net sales in maintenance increased
mainly due to firm order trend including large
projects.
⚫ Orders and net sales in the ultrapure water supply
business increased due to the commencement of
new supply project.
⚫ Both orders and net sales in precision tool cleaningslightly decreased from the same period of theprevious fiscal year, reflecting the impact ofoperations in customers’ plants.

5

Water Treatment Facilities (for domestic general industries)
Nine months of
FY ended 03/2022

Nine months of
FY ending 03/2023

YoY Change37.4

42.5+5.0

Energy andInfrastructure

32.3

37.5+5.1

Soil Remediation

3.0

3.4+0.5

Other

2.1

1.6(0.6)

Net Sales

37.3

35.6

(1.7)

Energy andInfrastructure

32.3

30.7(1.6)

Soil Remediation

2.8

3.3+0.5

Other

2.1

1.6(0.5)(Billions of Yen)

Orders⚫ Energy and infrastructure orders rose reflecting
large projects for maintenance and facilities forgeneral industries.
⚫ Energy and infrastructure net sales fell, reflecting adecrease in sales from facilities for the electric
power industry and general industries, althoughsales from maintenance for general industries rose.
⚫ In soil remediation, both orders and net sales
increased from the same period of the previous
fiscal year, due to capturing demand for small andmedium-sized projects.

6Water Treatment Facilities (Overseas)
Nine months of
FY ended 03/2022

Nine months of
FY ending 03/2023

YoY Change

45.9

81.6

+35.7

Facilities

20.5

49.5

+29.0

Maintenance

12.0

14.8

+2.8

Ultrapure Water SupplyBusiness

2.4

2.7+0.3

Precision Tool Cleaning

10.9

14.6

+3.7

Net Sales

38.9

57.2

+18.4Facilities

14.7

27.0+12.3

Maintenance

10.8

13.0+2.1

Ultrapure Water Supply
Business

2.4

2.7+0.3

Precision Tool Cleaning

10.9

14.6+3.7

Nine months of
FY ended 03/2022

Nine months ofFY ending 03/2023

YoY Change

Asia

22.3

35.7+13.4

North & South America

16.5

21.6+5.0

38.9

57.2+18.4(Billions of Yen)

Orders⚫ In China and South Korea, both orders and net sales
increased against a backdrop of strong investment
demand in the electronics industry, mainly
semiconductor sectors.
⚫ Orders are progressing at a pace exceeding the fullyear forecast due to the acquisition of large projects
in China and South Korea.

Net Sales by Region(Billions of Yen)

TotalFactors in Change (Billions of Yen)
Organic Change+10.9

Effect of Foreign Exchange Rate

+7.5

7

Breakdown of Service Business Sales
Nine months ofFY ended 03/2022

Nine months ofFY ending 03/2023

YoY Change

Water Treatment
Chemicals

87.9

102.9+15.1

Water Treatment Facilities

99.3

111.7+12.4

Ultrapure Water Supply
Business

25.7

30.6+5.0

Domestic Precision Tool
Cleaning

7.2

7.0(0.2)

Overseas Precision ToolCleaning

10.9

14.6+3.7

Soil Remediation

2.8

3.3+0.5

Domestic Maintenance

40.3

41.7+1.4

Overseas Maintenance

10.8

13.0+2.1

Other

1.6

1.6(0.1)

187.2

214.6+27.5(Billions of Yen)

Total

⚫ Net sales in the Water Treatment Chemicals
business rose due to a growth overseas.
⚫ In the Water Treatment Facilities business, service
business sales increased mainly in the field ofultrapure water supply business, overseas precision
tool cleaning, and domestic and overseas
maintenance.

8Capital Expenditures, Depreciation and R&D Expenses⚫ Capital expenditures declined compared to the same
period of the previous fiscal year due to the absenceof investments related to new development bases.

Nine months ofFY ended 03/2022

Nine months ofFY ending 03/2023

YoY Change

47.3

35.3

(12.0)

Water Treatment Chemicals

8.9

5.3(3.7)

Water Treatment Facilities

38.3

30.0

(8.3)

14.7

18.9+4.2⚫ Depreciation increased due to the start of new
projects in the ultrapure water supply business andthe start of operation of new development bases.
⚫ R&D expenses increased due to the start ofoperation of new development bases.

(Billions of Yen)

Capital Expenditures(Property, Plant andEquipment*)

Depreciation(Property, Plant andEquipment*)
Water Treatment Chemicals

3.2

3.5+0.3

Water Treatment Facilities

11.5

15.4+3.9

3.8

4.7+0.9

Water Treatment Chemicals

1.2

1.4+0.2

Water Treatment Facilities

2.6

3.3+0.7

R&D Expenses⚫ Capital expenditures for the ultrapure water supply
business almost remained unchanged from thesame period of the previous year.

* Right-of-use assets are included.

9Financial Condition(Billions of Yen)End of March 2022

End of December 2022

ChangeCash and Cash Equivalents

45.7

48.3

+2.5

Other Current Assets

132.7

143.0

+10.3

Total Current Assets

178.4

191.3

+12.9

Property, Plant and Equipment

161.0

175.1

+14.0

Goodwill

63.0

67.3

+4.3

Other Non-current Assets

67.6

62.2

(5.3)

Total Non-current Assets

291.6

304.6

+13.0

470.0

495.9

+25.9

Current Liabilities

113.9

104.9

(9.1)

Non-current Liabilities

78.2

96.7

+18.5

Total Liabilities

192.1

201.5

+9.4

Equity Attributable to Ownersof Parent

271.9291.8

+19.9

5.9

2.6(3.4)

277.9

294.4

+16.5

470.0

495.9

+25.9

Total Assets

Non-controlling Interests

Total Equity
Total Liabilities and Equity⚫ Property, plant and equipment increased, mainlyreflecting the acquisition of ultrapure water supply
business facilities.

⚫ Goodwill increased due to an impact of foreignexchange rate.
⚫ Other non-current assets decreased mainly due tothe partial sale of investment securities.
⚫ Current liabilities decreased due to a decrease inother financial liabilities related to Pentagon
Technologies Group, Inc., despite an increase fromthe issuance of commercial paper.
⚫ Non-current liabilities increased due to the issuanceof the bonds and new borrowings.

10

2 Revision to Forecast for the Fiscal Year Ending March 31, 2023

Revisions to Business Forecast⚫ Orders forecast for Water Treatment Facilities business is revised upward to reflect the progress inorders for the domestic electronics industry and overseas.
⚫ Net sales and profit forecasts remain unchanged as the posting of sales from increase of orders will
be limited to a small portion in this fiscal year.
Previous Forecast(Billions of Yen)

(Announced in October)

FY ending 03/2023
Current Forecast

ChangeFY ended 03/2022
ResultsOrders

365.0

375.0

+10.0

315.2

Net Sales

350.0

350.0

ー

288.2

Business Profit

39.0

39.0

ー

32.9

Other Income and Expenses, Net

(1.0)

(1.0)

ー

2.8

Operating Profit

38.0

38.0

ー

35.7

Profit Before Tax

39.0

39.0

ー

30.1

Profit Attributable to Owners of Parent

27.6

27.6

ー

18.5

245.56245.56ー

164.38USD (yen)

136.0

136.0

ー

112.4

EUR (yen)

140.0

140.0

ー

130.6

CNY (yen)

20.0

20.0

ー

17.5

Earnings per Share (yen)Foreign Exchange Rate

11Forecasts by Segment(Billions of Yen)

Total

Water Treatment
Chemicals

Water Treatment
Facilities

Previous Forecast(Announced in October)

FY ending 03/2023
Current Forecast

ChangeFY ended 03/2022
Results

Orders

365.0

375.0

+10.0

315.2

Net Sales

350.0

350.0

ー

288.2

Business Profit

39.0

39.0ー

32.9

Business Profit Margin

11.1%

11.1%

ー

11.4%

Operating Profit

38.0

38.0ー

35.7

Orders

136.5

136.5

ー

118.4

Net Sales

136.0

136.0ー

117.7

Business Profit

15.7

15.7ー

13.6

Business Profit Margin

11.5%

11.5%ー

11.5%

Operating Profit

15.7

15.7

ー

14.6

Orders

228.5

238.5

+10.0

196.8

Net Sales

214.0

214.0

ー

170.5

Business Profit

23.3

23.3

ー

19.4

Business Profit Margin

10.9%

10.9%

ー11.4%

Operating Profit

22.3

22.3

ー

21.2

12Breakdown of revisions in Water Treatment Facilities⚫ For the Domestic Electronics Industry(Billions of Yen)

Previous Forecast(Announced in October)

FY ending 03/2023
Current Forecast

FY ended 03/2022
Results

Change

76.5

78.5

+ 2.0

86.7

Facilities

10.7

12.7

+ 2.0

25.5

Maintenance

18.8

18.8

ー20.1

Ultrapure Water Supply Business

37.3

37.3

ー

31.5

Precision Tool Cleaning

9.6

9.6ー

9.6

Previous Forecast(Announced in October)

FY ending 03/2023
Current Forecast

88.9

96.9

+ 8.0

66.0

Facilities

45.6

53.6

+ 8.0

32.5

Maintenance

18.1

18.1

ー

15.1

Ultrapure Water Supply Business

3.5

3.5ー

3.2

Precision Tool Cleaning

21.7

21.7

ー

15.1

Orders⚫ Overseas(Billions of Yen)

OrdersFY ended 03/2022
Results

Change13Forward-looking Statements
This presentation contains forward-looking statements, business plan projections, and judgments based on informationavailable 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.
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