FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Nine Months Ended December 31, 2008
Tokyo, Japan, January 30, 2009—Kurita Water Industries Ltd. (TSE Security Code 6370) announced net
sales of 138,599 million yen for the first nine months (April 1 – December 31, 2008) of the fiscal year ending
March 31, 2009, and net income of 8,843 million yen, or 68.73 yen per share.

Results of Operations
Total consolidated orders for the Kurita Group decreased 0.8% versus the year-ago period to 150,541 million
yen, while sales decreased 0.6% to 138,599 million yen. Operating income was down 9.7% to 17,753 million
yen, ordinary income declined 9.7% to 18,489 million yen, and net income was down 22.6% to 8,843 million
yen, reflecting a decrease in net sales and increased costs due to rising raw materials prices.
Markets in which the Kurita Group operates were challenging in the nine months ended December 31, 2008,
taking a hefty downturn in the wake of the global recession sparked by financial woes in the US. In theelectronics industry, LCD-related and semiconductor-related capital expenditure levels in Japan and overseas
dropped even further, and factory operating rates declined. In general industries, capital expenditure andfactory operating rates were mainly flat through the first two fiscal quarters, but from the fiscal third quarter,
capital expenditure dropped and factory operating rates also declined.

Overview by Segment
Water Treatment Chemicals
Total Group orders for the segment increased 3.3% versus the year-ago period to 45,262 million yen, whilesales grew 4.0% to 45,288 million yen.
The Group strengthened efforts to expand sales of mainstay products, such as boiler water treatment
chemicals and cooling water treatment chemicals, while promoting sales based on proposals tailored toresolve the issues that clients face, such as the reduction of environmental burdens and productivity
improvements.
Japan
Among the Group’s mainstay products, compared with the year-ago period, orders for boiler water treatment
chemicals decreased slightly as factory operating rates at client companies declined, orders for cooling watertreatment chemicals were flat, and orders for wastewater treatment chemicals increased, buoyed by the needto reduce environmental burdens at client companies. With regard to other products, orders for process
treatment chemicals increased on the back of higher productivity requirements at client companies, whileorders for packaged water treatment management contracts were flat.
Overseas
Overseas, orders for the Group’s products increased as sales expanded in Asia and elsewhere.

Water Treatment Facilities
Total Group orders for the segment decreased 2.4% from a year earlier to 105,278 million yen, while sales
decreased 2.7% to 93,310 million yen.
During the period, the Group continued investing actively in service businesses, such as the ultrapure watersupply business and tool cleaning services, while also working to win orders by stepping up sales efforts
based on proposals tailored to resolve the issues that clients face, such as the reduction of environmental
burdens.
1

In the electronics industry, orders for the Group’s mainline ultrapure water production systems were down inJapan and overseas compared with the year-ago period as semiconductor-related and LCD-related capital
expenditure cooled off. Meanwhile, orders for the ultrapure water supply business rose on the commencementof additional contracts at existing clients, and orders for tool cleaning services rose moderately. Orders forwater treatment facilities for general industries increased due to an order from the electric power generationindustry. Orders for maintenance services decreased, however, due to lower factory operating rates at clientcompanies.
* Due to changes in accounting standards, percentage increases and decreases versus the year-ago period
given above are for reference only. The impact of the changes in accounting standards is immaterial.

Financial Condition
Consolidated current assets at the end of the fiscal third quarter (December 31, 2008) totaled 112,712 million
yen, a decline of 8,849 million yen compared with the end of last fiscal year (March 31, 2008). This mainlyreflects an 11,613 million yen increase in cash and deposits and a 6,585 million yen increase in work inprocess, which were more than offset by a 12,942 decrease in accounts receivable and a 15,678 million yen
decrease in marketable securities. The increase in work in process was due to progress made in works
underway in the water treatment facilities business. The decrease in trade accounts receivable was due to
steady progress made in collections, and the decrease in marketable securities is primarily due to redemptions.
886 million yen in trade notes receivable and 225 million yen in trade notes payable that matured on the last
day of the fiscal third quarter (December 31, 2008; financial institution holiday) are treated as paid on thatdate.
Fixed assets at the end of the third quarter totaled 137,685 million yen, an increase of 27,749 million yen
compared with the end of last fiscal year. This primarily reflects an increase in tangible fixed assets of 34,061
million yen due to the acquisition of facilities for the ultrapure water supply business, which was partly offset
by a decrease in investments and other assets of 6,088 million yen due to declines in market values ofinvestment securities and other factors.
Current liabilities at the end of the third quarter totaled 66,282 million yen, an increase of 17,201 million yen
compared with the end of last fiscal year. This primarily reflects a 7,705 million yen decrease in income taxes
payable due to the payment of income taxes, which was more than offset by increases of 23,628 million yen
in trade accounts payable associated with the acquisition of facilities for the ultrapure water supply businessand 3,317 million yen in advances received, which was recorded in current liabilities under “Other.”
Net assets totaled 172,274 million yen, an increase of 1,213 million yen compared with the end of last fiscalyear. This primarily reflects a net increase in retained earnings of 4,468 million yen after deducting dividends
paid from net income, which was partly offset by a 1,858 million yen decrease in unrealized gains onavailable-for-sale securities due to declines in market values of investment securities and a 1,156 million yen
decrease in the foreign currency translation adjustments account.

3. Outlook for the Fiscal Year Ending March 31, 2009
The full-year consolidated forecast for the fiscal year ending March 31, 2009, remains unchanged from theforecast that appeared in the earnings release for the year ended March 31, 2008, announced on April 30,2008.

2Financial Statements — Consolidated
Balance Sheets — Consolidated(millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - tradeMarketable securities
Finished products
Raw materials
Work in process
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings, net
Machinery and equipment, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Accounts payable - other
Income taxes payable
Allowances
Other
Total current liabilities
Fixed liabilities
Accrued employees’ retirement benefits
Other allowances
Other
Total fixed liabilities
Total liabilities

As of December
31, 2008
AmountAs of March 31,2008
Amount21,9309,344
50,605
8,266
1,581
1,423
14,713
5,008(159)
112,712

10,316
8,666
63,54823,945
1,428
1,365
8,128
4,323
(159)
121,562

20,84536,222
41,382
17,596116,046
2,273

22,00237,703
4,664
17,614
81,9842,497

19,472(107)
19,365
137,685
250,398

25,547(93)
25,454
109,935
231,498

2,267
19,89331,741
422
2,313
9,643
66,282

1,990
21,344
8,113
8,128
3,584
5,919
49,080

8,715
746
2,378
11,841
78,123

8,358
709
2,288
11,35760,4373

(millions of yen)

Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Unrealized gains (losses) on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total assets

As of December
31, 2008
AmountAs of March 31,2008
Amount13,45011,426
152,343(4,845)
172,375

13,45011,426
147,874(4,827)
167,924

(84)

1,773

(750)
(701)
(1,536)
1,435
172,274
250,398(750)
455
1,478
1,658
171,061
231,498

4

Statements of Income — Consolidated(millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and directors’ remuneration
Provision for employees’ bonuses
R&D expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Loss on disposal of properties
Other
Total non-operating expense
Ordinary income
Extraordinary gains
Extraordinary losses
Valuation loss on investment securities
Legal settlement

Nine monthsended
December 31,
2008
AmountNine months
ended
December 31,
2007
Amount138,599
93,47545,123

139,474
92,86846,606

10,412652
3,391
12,91327,36917,753

26,94819,657

212
303
219
218
954
30
55
132
218
18,489985

167
20,475186

Total extraordinary losses
Income before income taxes
Income taxes
Minority interests in earnings of consolidated subsidiaries

1,513
480
1,993
16,496
7,420
232

74
20,587
8,886
268

Net income

8,843

11,4325

Statements of Cash Flows — Consolidated(millions of yen)

Nine months ended
December 31, 2008
AmountCash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowances(Increase) decrease in notes and accounts receivables - trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable - trade
Valuation (gain) loss on investment securities
Income taxes paid
OtherNet cash provided by (used in) operating activities

16,496
8,079(821)
12,225(7,161)(1,457)1,513(15,068)
2,473
16,279Cash flows from investing activities
Payments for purchases of marketable securities
Proceeds from redemption and sale of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Proceeds from liquidation of subsidiaries
Other expenses
Other income
Net cash provided by (used in) investing activities(4,497)
6,897(16,772)
53(8)
1,451
(1,741)
156(14,460)

Cash flows from financing activities
Repayment of long-term borrowings
Payments for purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders of consolidated subsidiaries
Repayment for finance lease obligation
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

(99)
(17)
(4,111)(44)(25)(4,298)(536)(3,015)30,36027,345

6

Segment Information
Business segment information
Nine months ended December 31, 2008 (April 1, 2008 – December 31, 2008)(millions of yen)Water
treatmentchemicals

Watertreatment
facilities

Total

Sales
(1) Sales to outside customers(2) Inter-segment sales
Total

45,288248
45,53793,31074
93,385

138,599323
138,922

(323)
(323)

138,599
138,599

Operating income

6,930

10,82317,7540

17,753

Sales and operating income

Elimination or
corporate
Consolidated

Geographical segment information
Nine months ended December 31, 2008 (April 1, 2008 – December 31, 2008)

Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income(millions of yen)
Elimination or
corporate
Consolidated

Japan

Other
regions

Total

123,157
1,599
124,756
15,98815,441
204
15,645
1,498

138,599
1,803
140,402
17,486(1,803)(1,803)
266

138,599
138,599
17,753

Overseas sales
Nine months ended December 31, 2008 (April 1, 2008 – December 31, 2008)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated sales

Asia
15,553-

North
America
824-

Europe1,298-

Other
2,474-

Total
20,149138,599

11.2%

0.6%

0.9%

1.8%

14.5%

Notes:
1. Geographic segmentation is based on geographic proximity.
2. Major countries or regions in each category are as follows:(1) Asia:
Korea, China, Taiwan, Singapore, Indonesia, and Thailand(2) North America:
U.S.A.
(3) Europe:
Germany(4) Other areas:
Brazil3. “Overseas sales” includes sales by the Company and its consolidated subsidiaries in countries or regions otherthan Japan.

7

Net Sales and Order Intake
Order Intake(millions of yen)

Business segment
Water treatment chemicals

Nine months ended December 31,2008
2007Amount%Amount45,26230.1
43,833

Water treatment facilities

105,27869.9

107,892

71.1

Total

150,541100.0

151,725

100.0

%
28.9

Net Sales(millions of yen)

Business segment
Water treatment chemicals

Nine months ended December 31,2008
2007
Amount%Amount45,28832.7
43,534%31.2

Water treatment facilities

93,31067.3

95,940

68.8

Total

138,599

100.0

139,474

100.08