Summary of the Q&A Session at the Financial Results Conference Callfor the Fiscal Year Ended March 2020

Date and Time: May 19, 2020 (Tue) 10:00 - 10:45
Notice: This summary is a reference designed for the convenience of those who could notattend the financial results conference call stated above. Please note that this is not a wordfor-word transcript of all remarks made at that session, but is a summary prepared by Kurita
Water Industries Ltd.
Q. You have indicated that the novel coronavirus impact on the water treatment facilities forthe electronics industry was negligible. Please discuss trends by region for customers insemiconductors, FPD and electronic components.
A. Current capacity utilization levels for electronic industry customers are solid.
Semiconductor and FPD customers in China are running at close to normal levels, at
capacity utilization rates of around 80%. In South Korea as well utilization atsemiconductor customers is firm. Similarly for Taiwan, the novel coronavirus impact has
not been that large; customer operating rates are stable. Domestically, while utilization atsome customers is very strong, there are others where capacity utilization is slightly lower
but not down significantly on a YoY basis.
Q. You are guiding for a YoY drop in water treatment facilities revenue from North America.
Do you expect revenues from U.S. Water's water treatment facilities business to fall?
A. We expect U.S. Water's water treatment facilities business to be slightly weaker.
Q. With regard to the novel coronavirus impact on the water treatment chemicals business,
you are guiding for a larger decline in revenues in 1H. Have trends from April onward been
as tough as you had expected? Also, please comment on the status of the recovery inregions like China, where the outbreak has already subsided.
A. We believe conditions in China, where the outbreak came earlier but is now under control,
will be useful in assessing the impact of the novel coronavirus going forward. Currently in
China, the automakers that are doing well have order backlogs and are running at close
to full capacity. However, conditions remain challenging for customers in steel making,petrochemicals and other industries that are particularly impacted by energy prices. The
picture is mixed if you look at individual customers but overall capacity utilization isprobably around 70-80%. We expect similar conditions in the domestic market in sixmonths' time.

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On the domestic side, we are only now starting to see an impact from the novel coronavirus.
With the exception of a few industries, it has not been the case that demand has dried up
or that capacity utilization is severely depressed. To date, the decline has not been as
significant as we had assumed in our forecasts.
Q. You have guided for revenue growth in the ultra-pure water supply (UPWS) business.
Please discuss the drivers, including customer trends. Is it fair to say that the YoY increasereflects the contribution from the new UPWS projects which came on line last fiscal year
and the absence of negative factors such as contract revisions?
A. The UPWS business will see an increase in revenues from new projects, for which weinvested significantly in the previous two years. However, because of the impact from 2Qof the fiscal year ended March 2020 owing to the sale of facilities, the resulting negative
effect will be felt up to the end of 1Q of the fiscal year ending March 2021. Basically, theforecasts are the net result of these positive and negative factors. Capacity utilization rates
have not changed significantly. However, we hope that delayed capex projects will resume
from 2H.
Q. Are you assuming any contract revisions for the UPWS business in the fiscal year ending
March 2021?
A. No.
Q. Please explain the Kurita Group's current positioning with regard to Avista's RO membranechemicals. How big do you expect the business to be? Which are the markets where you
believe you have superiority relative to major competitors? Is the current focus ondeveloping applications rather than developing markets?
A. The RO membrane chemicals project seeks to fully leverage Avista's extensive expertisein RO membranes, its product lineup and comprehensive service models, including themembrane diagnostic service. We aim to offer Avista's products and service models incombination with the existing Kurita Group's lineup of RO membrane chemicals, including
slime control chemicals, on a global basis. These technologies, products and businessmodels are already established. We aim to achieve a business scale of around 10 billion
yen within the next 2-3 years.
Q. Which regions and markets are you targeting for the RO membrane chemicals project?
Have you already determined which regions and markets you will pursue?
A. The industries that make extensive use of RO membranes are the electronics industry andthe desalination market. These would be our main target markets. By region, we are

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focused on Singapore, where we have a group development base. We are also targeting
East Asia, specifically countries which have a strong presence in electronics such as China,
South Korea and Taiwan, and aim to include membrane processing services. We haveclearly defined our target markets.

Business forecasts presented and other statements relating to the future made in thisdocument are based on information currently available and certain assumptions theCompany considers reasonable. A variety of factors may cause actual financial results andother forward-looking statements to differ materially from the forecasts.

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