FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Fiscal Year ended
March 31, 2016
Tokyo, Japan, April 28, 2016 - Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 214,372 million yen and net income attributable to owners ofparent of 12,577 million yen, or 108.24 yen per share, for the year ended March 31,
2016 (April 1, 2015 – March 31, 2016).

Results of Operations
Total consolidated orders for the Kurita Group in the fiscal year ended March 31, 2016rose 22.1% from the level of the previous fiscal year, to 221,273 million yen, and net
sales increased 13.2%, to 214,372 million yen. Retirement benefit expenses in selling,
general and administrative expenses rose 884 million yen chiefly due to the effect of achange in the discount rate used in the calculation of retirement benefit obligations
associated with a decline in interest rates in the latter half of the fiscal year, but
operating income rose 2.0% versus the previous fiscal year, to 19,833 million yen.
Ordinary income was 20,439 million yen, up 7.9%. Net income attributable to ownersof parent amounted to 12,577 million yen, up 20.5%. Because of the consolidation of
Kurita Europe APW GmbH (KEAG) and its subsidiaries, consolidated orders and net
sales of the Group and the Water Treatment Chemicals segment rose 21,633 million yen,
but consolidated operating income declined 1,169 million yen. The decline in operating
income was principally attributable to the posting of the amortization of the goodwill
and technology-related assets acquired in association with the business acquisition and atemporary rise in expenses associated with a review of the initial allocation of the costof the business acquisition.
During the fiscal year ended March 31, 2016, there was uncertainty over the outlook
for the global economy, given a slowdown in growth in China and other emerging
economies in Asia and a fall in crude oil prices. However, the U.S. and European
economies continued to recover, mainly thanks to an improvement in employment anddomestic demand, and the global economy overall grew moderately.
Although corporate profit was stable in Japan, the economic recovery was slow, given
weak consumer spending, sluggish growth in exports associated with slowing overseas
economies, and a stronger yen in the second half of the fiscal year.

Looking at the market environment surrounding Kurita Group (Kurita Water
Industries Ltd. and its consolidated subsidiaries and equity method affiliates), in Japan,
production in the manufacturing industry remained roughly flat, but there were signs ofrecovery in capital expenditure on the back of strong corporate earnings. Overseas,
demand for water treatment grew in East Asia and Southeast Asia.
In this environment, the Group started to implement the three-year medium-term
management plan CK-17 (Competitive Kurita 2017). In the medium-term management
plan, the Group aims to evolve into a strong corporate group capable of competing
successfully in the international market. In the first year of the plan, the fiscal year
ended March 31, 2016, the Group focused on improving profitability by expanding
overseas operations and thoroughly controlling costs.
To expand overseas operations, the Group sought to integrate KEAG, which has
become part of the Group following the acquisition of businesses in Europe, and took1

steps to create synergies early, supplying competitive products to each other. In Asia,
where the Group has been achieving results steadily, and started the first ultrapure watersupply business for foreign companies in South Korea.
The Group improved profitability to some degree by facilitating cooperation between
the sales and production divisions and carefully controlling costs in each project. To
create competitive products and services, the Group launched new services, combining
its expertise in three businesses: the water treatment chemicals business, water treatment
facilities business, and maintenance services. The Group focused on proposing solutions
to customers’ challenges, including environmental load reduction, energy saving, and an
improvement in productivity.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 83,440 million
yen, up 40.6% versus the fiscal year ended March 31, 2015, while sales rose 39.5%, to83,680 million yen. Operating income was down 17.9% to 6,467 million yen.
In Japan, the Group took steps to gain new customers, and both orders and sales rose
for wastewater treatment chemicals and process treatment chemicals for petroleum
refining. However, saw decreased orders and sales, chiefly reflecting a moderate
recovery in capacity utilization at customers’ plants, and overall orders and sales inJapan remained flat.
Overseas, orders and sales increased significantly due to the addition of new
customers especially in China and Southeast Asia and the consolidation of the KEAG
subsdiaries.
Income in the overall segment declined due to the posting of the amortization of the
goodwill and technology-related assets associated with the consolidation of the KEAG
Group and temporary expenses associated with a review of the initial allocation of thecost of the business acquisition.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 137,832 million
yen, up 13.0% versus the previous fiscal year. Sales rose 1.0%, to 130,692 million yen.
Operating income climbed 15.6%, to 13,366 million yen.
In Japan, orders and sales in the water treatment facilities business and maintenanceservices for the electronics industry rose, reflecting high capacity utilization at plants
manufacturing electronic components for smartphones. Orders and sales in the ultrapure
water supply business declined slightly due to a fall resulting from the termination ofsome contract periods, which was partially offset by revenue from new contracts.
In general industries, orders in the water treatment facilities business rose, reflecting
orders for dry methane fermentation facilities for recycling waste materials andwastewater treatment facilities in the food industry, but sales declined chiefly due todelays in progress in construction in projects. Orders and sales in maintenance services
were affected by a reactionary fall following projects in the previous fiscal year, butnonetheless increased thanks to orders through proposals of solutions to customers’
challenges. Orders for and sales of water treatment facilities for electric power rose.
Orders for soil remediation services declines, but sales rose due to the posting of sales
from projects for which orders were received in the previous fiscal year.
2Overseas, orders rose significantly, chiefly reflecting large-scale projects in theelectronics industry in China, Taiwan, and South Korea, but sales fell due to thecompletion of the posting of sales from large-scale projects.
Income in the overall segment climbed with the improvement in the cost rate as aresult of the strengthening of collaboration among the sales, design, and construction
work divisions and the curbing of unprofitable projects.
Outlook for Overall Results, Including Production, Sales, and Profits and Losses
For the full fiscal year ending March 31, 2017, the Group forecasts 222,000 million yen
in net sales (up 3.6% year on year), 21,500 million yen in operating income (up 8.4%),
22,000 million yen in ordinary income (up 7.6%), and 14,000 million yen in net income
attributable to owners of parent (up 11.3%).
In the fiscal year ending March 31, 2017, uncertainty surrounding the outlook for the
global economy is increasing, reflecting expected risks, including slowing growth inChina and other emerging economies, a slowdown in the recovery of the U.S. economy,
terrorism and refugees in Europe, the escalation of tensions in the Korean Peninsula,and fluctuations in exchange rates and crude oil prices.
In Japan, consumer spending and corporate capital expenditures are expected to be
stimulated by a reduction in the corporate tax, an improvement in wages andemployment, and the government and the Bank of Japan’s pump-priming measures andmonetary policies. However, the Japanese economy will be susceptible to global
economic trends. We expect that companies will take a cautious stance towards capital
expenditures, assessing the situation of the global economy.
In this environment, the Group aims to expand its businesses, leveraging its
advantage of possessing expertise in three businesses—the water treatment chemicals
business, water treatment facilities business, and maintenance services—and creating
new competitive products and technologies using the Group’s comprehensive strength,
including synergies with the acquired businesses. The Group will review its businessstrategies and production systems for each market and product and will work to improve
profitability by improving efficiency in the allocation of management resources.
Outlook by Segment
Water Treatment Chemicals
The Kurita Group will strengthen education for human resources, especially sales andtechnical staff in each country, to help them develop and will work to expand sales ofcompetitive products. It will seek to expand synergies with the acquired businesses in
Europe. The Group will aim to grow sales and increase earnings power primarily inoverseas markets, strengthening business structures in each country and region.
In Japan, the Group will strive to make effective use of customer information using
IT and promote proposals. It will focus on new cost competitive products and sales andtechnical staff in promising markets to expand market share and rebuild a stable revenue
base.
Water Treatment Facilities
The Group will act to provide products and services that will meet the needs of themarket and customers and will make the most suitable proposals to customers promptly
by making effective use of customer information using IT.
Overseas, the Group will seek to enhance the sales, design, and construction capabilities3

of the local staff and production systems at its overseas Kurita Group companies,
optimize quality and cost, and expand operations through the overseas Kurita Group
companies.
Financial Condition
Current assets totaled 150,546 million yen at the end of the fiscal year (March 31, 2016),
an increase of 1,579 million yen from the end of the previous fiscal year (March 31,2015). This increase was primarily attributable to an increase of 3,742 million yen inaccounts receivable-trade, which outweighed a decrease of 1,556 million yen in cash
reserves, that is, cash and deposits and marketable securities. The increase in accounts
receivable-trade was principally the result of a rise in sales in the Water Treatment
Facilities business in the latter half of the fiscal year under review, compared with theoutcome of a year ago. The decrease in cash reserves was principally the result of thepayment of the remaining cost of the acquisition of businesses in Europe.
Noncurrent assets totaled 147,561 million yen at the end of the fiscal year, an
increase of 2,036 million yen versus the end of the previous fiscal year. The increase
was principally attributable to a 3,355 million yen increase in property, plant andequipment and a 1,656 million yen increase in investments and other assets, which
outweighed a 2,975 million yen decrease in intangible fixed assets. The increase inproperty, plant and equipment was attributable chiefly to new ultrapure water supply
projects. The increase in investments and other assets was mainly because of an increasein unrealized gains on investment securities due to rises in the market prices of theshares held by the Group. The decrease in intangible fixed assets chiefly reflected theposting of amortization of goodwill associated with business acquisition in Europe.
Current liabilities totaled 44,407 million yen at the end of the fiscal year, a fall of
3,568 million yen from the end of the previous fiscal year. The fall was mainly
attributable to decreases of 2,961 million yen in accounts payable-other, 890 million
yen in income taxes payable, and 1,018 million yen in “Other” in current liabilities,
which outweighed a 1,891 million yen increase in accounts payable-trade. The decreasein accounts payable-other was mainly due to the settlement of the remaining cost of theacquisition of businesses in Europe. The decrease in “Other” in current liabilities waschiefly attributable to a reduction in advances received in association with the posting ofsales.
Noncurrent liabilities totaled 24,735 million yen at the end of the period, an increaseof 1,696 million yen versus the end of the previous fiscal year chiefly due to an increasein net defined benefit liability of 1,717 million yen, which resulted chiefly from achange in the discount rate used in the calculation of retirement benefit obligations.
Net assets totaled 228,964 million yen at the end of the period, an increase of 5,486
million yen versus the end of the previous fiscal year primarily due to an increase of
6,117 million yen in shareholders’ equity and a decrease of 551 million yen inaccumulated other comprehensive income. The main factors for the increase inshareholders’ equity were a 7,095 million yen increase in retained earnings mainly due
to net income of 12,577 million yen for the fiscal year under review, which exceeded
dividend payments of 5,469 million yen, the sum of year-end dividends for the previous
fiscal year and interim dividends for the fiscal year under review, and a 990 million yen
rise in treasury stock mainly through acquisitions in the market. Accumulated othercomprehensive income declined, chiefly reflecting a 2,128 million yen fall in foreign
currency translation adjustments due to the stronger yen, which outweighed an increase4

of 1,293 million yen in unrealized gains on available-for-sale securities associated withthe abovementioned increase in unrealized gains from investment securities.
Cash Flows
Consolidated net cash and cash equivalents at the end of the fiscal year (March 31,2016) totaled 43,591 million yen, a decrease of 12,084 million yen from the end of theprevious fiscal year (March 31, 2015). The various cash flows and related factors are
outlined below.
Cash Flows from Operating Activities
Net cash provided by operating activities during the fiscal year ended March 31, 2016
totaled 26,582 million yen, an increase of 3,268 million yen from the previous fiscal
year. Inflows from income before income taxes (20,411 million yen), depreciation andamortization (14,682 million yen) and an increase in notes and accounts payable-trade(2,293 million yen) were partially offset by an increase in notes and accounts
receivable-trade (4,473 million yen) and income taxes paid (8,264 million yen).
Cash Flows from Investing Activities
Net cash used in investing activities totaled 33,172 million yen, a decline of 37,918
million yen from the previous fiscal year. Net cash decreased chiefly due to payments
into time deposits (net of withdrawals from time deposits) of 10,138 million yen,
payments for purchases of property, plant and equipment totaling 17,693 million yen,including capital expenditures for ultrapure water supply business, and payments for theacquisition of businesses in Europe of 3,857 million yen.
Cash Flows from Financing Activities
Net cash used in financing activities totaled 5,707 million yen, an increase of 8,222
million yen from the previous fiscal year. The main cash outflows were cash dividends
paid of 5,551 million yen and the purchase of treasury stock of 990 million yen, whichwere partially offset by proceeds from long-term loans payable of 1,256 million yen.

5

Dividend Policy and Dividends for the Fiscal Year ended March 31, 2016 and the
Fiscal Year ending March 31, 2017
Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.
Setting a payout ratio of 30 to 50% as our target, we will continuously work to increase
dividends, making decisions based on the payout ratios for the most recent five years to
respond flexibly to fluctuations in business performance each year. If there are excess
funds after taking into account changes in business performance, business investments,
and precautionary funds to prepare for rapid fluctuations in the operating environment,
we will take steps to improve capital efficiency and return profits to shareholders
including the acquisition of treasury stock, taking the share price into consideration.
We intend to pay a year-end dividend of 24 yen per share for the fiscal year ended
March 31, 2016, 1 yen more than the previous year-end dividend. Combined with theinterim dividend of 24 yen per share (1 yen more than the previous interim dividend),
the annual dividend comes to 48 yen per share, 2 yen higher than the previous fiscal
year’s annual dividend. For the fiscal year ending March 31, 2017, Kurita Water
Industries plans to pay an interim dividend of 25 yen per share and a year-end dividendof 25 yen per share, for an annual dividend of 50 yen per share.
Business and Other Risks
The following are summaries of major foreseeable risks present in the businessenvironments in which the Kurita Group operates. Forward-looking statements herein
are based on judgments made by management as of March 31, 2016.
1) Economic and market conditions
The Group’s Water Treatment Chemicals and Water Treatment Facilities businesses
are affected by economic conditions in Japan and in other countries and regions where
the Group operates. Demand in the Water Treatment Chemicals business fluctuates in
response to factory capacity utilization rates in such industries as steel, petroleum
refining and petrochemicals, and pulp and paper, which are the business’ main sourcesof demand. Such demand fluctuations may affect the Group’s operating results.
Demand in the Water Treatment Facilities business fluctuates in response to trends incapital expenditure in the electronics industry and other industries that are the business’
main sources of demand. Such demand fluctuations may affect the Group’s operating
results.
Intensification of competition with rivals in the Group’s business domains could
lead to declines in prices of products and services, which could lower the Group’s
profitability.
2) Materials and parts procurement
The Group procures raw materials and parts from outside the Group for the
manufacture of products and the fabrication of facilities. The prices of raw materials
and parts fluctuate based on changes in market conditions, and such fluctuations may
affect the Group’s operating results.
3) Overseas business development
The Group is striving to expand its business outside Japan. In contrast to theJapanese market, doing business in overseas markets involves a number of inherent,
unforeseen risks, including the risk of changes to local laws and regulations, the risk ofpolitical and economic instability, and the risk of foreign exchange rate fluctuations. If
such risks materialized, the Group’s operating results could be affected.
4) New product development
6

The Group continuously endeavors to develop new technology and competitive new
products. The success of new technology and product development efforts cannot be
guaranteed. The Group may not be able to offer new technologies and products thatmeet the needs of its customers or launch new products in a timely fashion. The Group
may also fail to keep pace with rapid changes in technological innovation and changing
customer needs. If the Group were to fail to develop competitive new products, this
could hamper its future growth and profitability or otherwise affect its operating
results.
5) Intellectual property
The Group recognizes the importance of intellectual property and continually seeks
to register its own intellectual property while avoiding infringement of the intellectual
property rights of third parties, both in Japan and overseas. Given the wide scope of theGroup’s business, however, there is potential for the Group’s intellectual property
rights to be infringed and potential for the Group to infringe upon the rights held by
third parties. Such occurrences may affect the Group’s operating results.
6) Information systems
The Group’s use of information systems is increasing, as is the importance of
information systems to the Group’s business. If a computer virus or some other factor
were to obstruct the functions of the Group’s information systems, the Group’sbusiness activities, operating results, and financial condition could be negatively
affected.
7) Large-scale natural disasters
If an earthquake, typhoon, or other kind of natural disaster were to directly or
indirectly upset the Group’s business execution, the Group’s business activities,
operating results, and financial condition could be negatively affected.
Management Policy(1) Basic management policy
The Kurita Group operates under corporate philosophy, “Study the properties of water,
master them, and we will create an environment in which nature and man are inharmony.” In line with this philosophy, the Group conducts business with the goal of
becoming an advanced water and environmental management company.
The Group also seeks to enhance management transparency by making appropriate
and timely information disclosures to shareholders, investors, and other stakeholders.
(2) Issues to be addressed
The basic policy of CK-17 (Competitive Kurita 2017), a three-year medium-term
management plan from the fiscal year ended March 31, 2016, is the “review of all jobs
from the ground up to provide customers with high added value.” The issues to beaddressed to achieve sustainable growth under the management plan are the exertion of
the Group’s comprehensive strength, improvement in profitability, and the expansion ofoverseas business.
In the fiscal year ended March 31, 2016, the first year of CK-17, the Group expanded
the foundations of the water treatment chemicals business in Europe through theacquisition of businesses. In the water treatment facilities business, the Group improved
profitability to a certain degree by carefully controlling costs in each project, primarily
in overseas projects.
7Consequently, in the fiscal year ending March 31, 2017, the middle year in CK-17,
the Group will work on the key initiatives below to resolve the remaining challenges
based on the achievements in the first year.
(Focused initiatives)
1) Creation of competitive products and services
We will identify markets where we will be able to achieve growth. We willdevelop competitive products and services that will meet the needs of the market andcustomers and will launch them onto the market.
Using advanced analysis methods, we will analyze our customers’ water treatment
data, which we have gathered using our unique sensing technologies, and willpropose the most suitable solutions promptly. We will meet customer needs ahead of
our competitors, differentiating ourselves from them.
2) Changing the revenue and cost structure of each businessWe will review the revenue and cost structure of each business. In sales, we will
identify the needs of the market and customers and will assess our competitive
advantage. We will then make business fields to focus on clear. In production, we
will strive to improve the accuracy of cost estimates and carry out cost control morethoroughly in each project after receiving the order. In this way, we will improve ourearnings strength.
3) Expansion of global synergies
We will seek to expand globally the synergies created through the acquisition ofbusinesses in Europe. Kurita Water Industries, Kurita Europe GmbH (hereinafter“KEG”), and other Group companies will supply excellent products to each other topromote sales in Japan, Europe, and Asia, among other regions. Kurita Water
Industries and KEG will combine their research and development capabilities tobring new globally competitive products to market.
(Note) On April 1, 2016, Kurita Europe GmbH and Kurita Europe APW GmbH were merged, and the
new company has been named Kurita Europe GmbH. KEG above is the company createdthrough the merger.

Basic concept for the selection of accounting standards
The Kurita Group is considering improvements to the accounting standards of theGroup and accounting processing procedures and the timing for applying them inpreparation for the application of the International Financial Reporting Standards(IFRS).

8

Financial Statements — Consolidated
Balance Sheet — Consolidated(Million yen)

AssetsCurrent assets
Cash and deposits
Notes receivable – trade
Accounts receivable – tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)Land
Leased assets
Accumulated depreciation
Leased assets (net)
Construction in progress
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31, 2015
AmountAs ofMarch 31, 2016
Amount52,497
7,513
59,81014,999
3,840
3,078
2,561
1,728
3,169
(233)
148,967

58,374
7,463
63,552
7,566
3,130
3,690
2,433
1,652
2,866
(185)
150,546

62,403(43,199)
19,203102,923(73,062)
29,86013,972
8,199(2,713)
5,486
4,160
13,362(11,012)2,350
75,033

61,278(45,347)
15,931
109,735(77,295)
32,43913,941
8,315(3,216)
5,099
8,586
13,105(10,715)2,389
78,38817,4751,450
8,250
27,177

15,114
1,722
7,365
24,20235,678
4,595
3,342
(302)
43,314
145,525
294,492

37,063
4,232
3,879
(204)
44,970147,561
298,1079

(Million yen)

As ofMarch 31, 2015
AmountAs ofMarch 31, 2016
Amount1,650
19,169
9,858
4,595
2,255
1,037
784
8,624
47,975

1,719
21,060
6,897
3,705
2,365
284
768
7,606
44,407

5,159
1,181
75
13,7502,872
23,03971,014

4,763
1,119
57
15,467
3,327
24,735
69,142

13,45010,980189,693(7,705)
206,419

13,45010,993
196,788(8,695)
212,536

14,76816,061

66
(442)
1,510
8
15,911
1,147
223,478
294,492

398
(380)
(618)
(101)
15,3601,067
228,964
298,107

Liabilities
Current liabilities
Notes payable – trade
Accounts payable – trade
Accounts payable – other
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Lease obligations
Deferred tax liabilities related to revaluation
Provision for directors’ retirement benefit
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

10Statements of Income and Comprehensive Income — Consolidated
Statement of Income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors' and corporate auditors' compensations,salaries and allowances
Provision for bonuses
Retirement benefit expenses
Traveling and transportation expenses
Research and development expenses
Other
Total Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Acquisition-related costs
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on liquidation of businessTotal extraordinary losses
Income before income taxes
Income taxes
Current
Deferred
Total income taxes
Net income
Profit attributable to non-controlling interests
Profitattributable to owners of parent

Year ended
March 31, 2015
Amount189,398
130,50958,889Year ended
March 31, 2016
Amount214,372
143,964
70,407

16,06419,021

1,216
1,117
2,767
4,397
13,88939,454
19,435

1,318
2,001
3,023
5,269
19,93950,574
19,833

241
395

232
478

286

145

508
1,431

581
1,438

84
86
1,626
134
1,932
18,934

276
102
221
232
832
20,439

-

148
148

241
226
467
18,467

176
176
20,411

7,718
242
7,961
10,50671
10,434

7,027
626
7,654
12,757180
12,577

11

Statement of Comprehensive Income(Million yen)

Net income
Other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of theparent company
Comprehensive income attributable tonon-controlling interests

Year ended
March 31, 2015
Amount10,506

Year ended
March 31, 2016
Amount12,757

6,916

1,293

66
121
1,049
33

332
62
(2,113)
(109)

115

(86)

8,303
18,809(621)
12,136

18,688

11,997

121

138

12

Statement of Changes in Shareholders’ Equity — Consolidated
Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)(Million yen)

Shareholders’ equity

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Profit attributable toowners of parent
Purchase of treasury
stock
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

Common stock

Capital surplus

13,45011,426

Retained earnings

Treasury stock

185,159

Total shareholders’equity(2)

210,034(501)
13,45011,426(501)

184,657(2)

209,532(5,362)(5,362)

10,434

10,434(7,703)(7,703)

(445)

(445)
(36)

(36)

-

(445)

5,035

(7,703)(3,113)

13,45010,980189,693(7,705)

206,419

Accumulated other comprehensive income
Unrealized
gains (losses)
on availablefor-salesecurities

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Profit attributable toowners of parent
Purchase of treasury
stock
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

7,862

Deferred
gains(losses) onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

-

(564)

384

NonTotal
Remeasure- accumulated
controllingments ofother
definedinterests
comprehensive
benefit plansincome

(25)

7,657

1,461

Total net
assets219,153
(501)

7,862

-

(564)

384

(25)

7,657

1,461

218,652(5,362)
10,434(7,703)
(445)
(36)
6,905

66

121

1,126

33

8,253

(314)

7,939

6,905

66

121

1,126

33

8,253

(314)

4,826

14,768

66

(442)

1,510

8

15,911

1,147

223,47813

Year ended March 31, 2016 (April 1, 2015 - March 31, 2016)(Million yen)

Shareholders’ equity

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Profit attributable toowners of parent
Purchase of treasury
stock
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

Retained earnings

Treasury stock

Total shareholders’equityCommon stock

Capital surplus

13,45010,980189,693(7,705)

206,419

13,45010,980189,693(7,705)

206,419(5,469)(5,469)12,577

12,577
(990)

(990)

12

12
(13)

(13)

-

12

7,094

(990)

6,117

13,45010,993

196,788(8,695)

212,536

Accumulated other comprehensive income
Unrealized
gains (losses)
on availablefor-salesecurities

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Profit attributable toowners of parent
Purchase of treasury
stock
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

14,768Deferredgains( losses) onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

66

(442)

1,510

NonTotal
Remeasureaccumulated controllingments ofother
definedinterests
benefit plans comprehensive
income815,911

1,147

Total net
assets

223,478-

14,768

66

(442)

1,510

8

15,911

1,147

223,478(5,469)12,577
(990)
12
(13)
1,293

332

62

(2,129)

(109)

(551)

(79)

(630)

1,293

332

62

(2,129)

(109)

(551)

(79)

5,486

16,061

398

(380)

(618)

(101)

15,3601,067

228,964

14

Statement of Cash Flows — Consolidated(Million yen)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Equity in (earnings) losses of unconsolidated subsidiaries andaffiliates
Increase (decrease) in net defined benefit liability
Increase (decrease) in other allowancesInterest and dividend income
Interest expense
Other non-operating (income) losses
Other extraordinary (income) losses(Gains) losses on sale/disposal of property, plant andequipment
Impairment loss
(Gains) losses on sale of investment securities(Gains) losses on valuation of investment securities(Increase) decrease in notes and accounts receivable - trade(Increase) decrease in inventories(Increase) decrease in other current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other
Sub-totalInterest and dividend received
Other proceeds
Interest paid
Other payments
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchase of intangible assets
Proceeds from sale of intangible assets
Payments for purchases of investment securities
Proceeds from sale and redemption of investment securities
Payments associated with acquisition of business
Other payments
Other proceeds
Net cash provided by (used in) investing activities

Year ended
March 31, 2015
AmountYear ended
March 31, 2016
Amount18,467
14,863-

20,411
14,682
1,066

(286)

(145)

781
(547)
(636)
84
1,263
-

1,587
(842)
(710)
276
(214)
176

231

(74)

226
(39)
17
(7,674)
(504)
177
1,868
1,515
26
29,835783
452(84)(1,738)(5,934)
23,314(23)
20(4,473)
(249)
282
2,293
(274)
398
34,189
710
581
(276)
(358)
(8,264)
26,582(38,175)
36,844(45,000)
88,039(8,148)38(4,375)(8)
32(24,383)
(562)
445
4,746

(45,262)
35,124(9,576)9,000(17,693)
156
(772)
7
(8)
27
(3,857)(388)
72(33,172)15

(Million yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayment of finance lease obligations
Purchase of treasury stock
Proceeds from share issuance to non-controlling shareholders
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries without change in scope of
consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and Cash Equivalents of Newly Consolidated
Subsidiaries
Cash and cash equivalents at the end of the period

Year ended
March 31, 2015
AmountYear ended
March 31, 2016
Amount605(588)(7,703)54(5,362)
(118)

339
1,256
(15)
(626)
(990)
(5,474)
(77)

(815)

(119)

(13,929)(5,707)515

154

14,64741,028(12,143)
55,675-59

55,67543,591

16

Segment Information
1. Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial
information is available. These segments are subject to periodic examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Company’s business divisions are based on product and service categories. Each of the divisions
conduct business based on comprehensive strategies formulated for the products and services that theyhandle in Japan and overseas. The Company’s consolidated subsidiaries conduct business under thesupervision of the relevant business divisions.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment
Chemicals segment and the Water Treatment Facilities segment, based on the products and services
handled by each of the divisions.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals andequipment and provides maintenance services. The Water Treatment Facilities segment manufacturers
and sells water treatment equipment and facilities, provides ultrapure water, chemical cleaning, toolcleaning, soil and groundwater remediation services, and provides maintenance services that encompass
operation, maintenance, and management of water treatment facilities.
2. Method for calculating sales, income and loss, assets and liabilities, and other amounts by reportablesegment
Accounting methods applied in reportable segments are consistent with the methods applied in
preparation of consolidated financial statements. Segment income represents operating income.
Inter-segment sales and transfers between consolidated-group companies reflect values based on market
prices. Inter-segment sales and transfers between the Company’s divisions are based primarily on bookvalues.
3. Sales, income and loss, assets and liabilities, and other amounts by reportable segment
Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total
Sales
(1) Sales to outside customers(2) Inter-segment sales and transfers
Total
Segment income
Segment assets
Segment liabilities
Other amounts
Depreciation
Impairment loss
Change in property, plant andequipment and intangible fixed
assetsAmounts
reported on the
Adjustments statements of(see note)
income59,999377
60,376
7,877
79,79026,653

129,399231
129,631
11,560136,391
44,581

189,398
608
190,007
19,437
216,182
71,235

(608)
(608)
(2)
78,310(220)

189,398
189,398
19,435
294,492
71,014

1,406-

13,457226

14,863226-

14,863
226

5,378

7,486

12,864-

12,86417

Year ended March 31, 2016 (April 1, 2015 - March 31, 2016)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total

Amounts
reported on the
Adjustments statements of(see note)
incomeSales(1) Sales to outside customers
83,680130,692
214,372
214,372(2) Inter-segment sales and transfers
235
158
394
(394)
Total
83,916130,850
214,767(394)
214,372
Segment income
6,467
13,366
19,834(0)
19,833
Segment assets
79,365
142,564
221,930
76,176298,107
Segment liabilities
24,14245,06069,202(59)
69,142Other amounts
Depreciation
2,613
12,068
14,682
14,682
Impairment loss
Change in property, plant andequipment and intangible fixed
2,434
17,188
19,623
19,623
assetsNote: “Adjustments” represents the following:
1. Sales: Elimination of inter-segment transactions.
2. Segment income: Amount resulting from eliminations of inter-segment transactions.
3. Segment assets: Consisting mainly of corporate assets (cash deposits, securities in trust, andlong-term investments) unallocated to reportable segments. Corporate assets totaled 78,533 million
yen at March 31, 2015 and 76,237 million yen at March 31, 2016.
4. Segment liabilities: Amount resulting from eliminations of inter-segment claims and liabilities.
Related information
Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)

North
Japan
Asia
America
EMEA
Other
Total
32,061
2,028
1,557
3,460
189,398
150,291
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided. EMEA here stands for Europe, the Middle East and Africa.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer(Million yen)

Name of customer
Sharp Corporation

Sales
26,298Name of transacting segment
Water Treatment Facilities

18

Year ended March 31, 2016 (April 1, 2015 - March 31, 2016)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)

North
Japan
Asia
America
EMEA
Other
Total
37,7782,431
20,6982,970
214,372
150,495
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided. EMEA here stands for Europe, the Middle East and Africa.
(2) Property, plant and equipment(Million yen)

North
Japan
Asia
America
EMEA
6,790
21
2,038
68,993
Note: EMEA here stands for Europe, the Middle East and Africa.

Other
544

Total
78,388

3. Information by major customer(Million yen)

Name of customer
Sharp Corporation

Sales
23,097

Name of transacting segment
Water Treatment Facilities

Information on impairment of reportable segments’ noncurrent assets
Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)
Not applicableYear ended March 31, 2016 (April 1, 2015 - March 31, 2016)
The Company has omitted disclosure here because equivalent information appears in the segment
information.
Goodwill amortization and unamortized balance of goodwill by segment
Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)(Million yen)

Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Eliminationor corporate

Total

Total

-

-

-

-

-

17,475-

17,475-

17,475

Year ended March 31, 2016 (April 1, 2015 - March 31, 2016)(Million yen)

Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Total

Eliminationor corporate

Total

1,066

-

1,066

-

1,066

15,114-

15,114-

15,11419

Information on negative goodwill
Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)
Not applicableYear ended March 31, 2016 (April 1, 2015 - March 31, 2016)
Not applicable

Per Share Information
Net assets per share
Net income per share

Year ended March 31, 2015
1,907.80 yen
87.81 yen

Year ended March 31, 2016
1961.30 yen
108.24 yen

Notes: 1. Fully diluted net income per share was not reported here because there were no dilutive securities
outstanding.
2. The calculation bases for net assets per share are as follows.
(Million yen unless otherwise stated)

Total net assets
Amount deducted from total net assets(Those with non-controlling interests)
Net assets attributed to common stock
Number of common stock used in calculation of
net assets per share (shares)

As ofMarch 31, 2015
223,478
1,147(1,147)
222,330

As ofMarch 31, 2016
228,964
1,067(1,067)
227,896

116,538,033

116,196,920

Note: The calculation bases for net income per share are as follows.
(Million yen unless otherwise stated)

Net income attributable to owners of parent
Amount not attributed to common stockholders
Net income attributed to owners of parent
associated with common stock
Average number of shares outstanding (shares)

Year ended
March 31, 2015
10,434-

Year ended
March 31, 2016
12,577-

10,434

12,577

118,825,349

116,197,479

20

Supplementary Information - Consolidated(1) Net Sales(Million yen)

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2015
Amount59,999129,399
189,398

%
31.7
68.3
100.0

2016
Amount83,680130,692
214,372

%
39.0
61.0
100.0

(2) Order Intake and Backlog(Million yen)

Year ended March 31,
2015
Business segment
Water Treatment
Chemicals
Order Intake
Water Treatment
Facilities
Total
Water Treatment
Chemicals
Order Backlog Water Treatment
Facilities
Total

Amount2016%

Amount%59,35332.7

83,44037.7

121,928

67.3

137,83262.3

181,282

100.0

221,273

100.0

3,799

7.7

3,559

6.4%

45,33492.3

52,475

93.6

49,133100.0

56,034100.0(3) Production Results(Million yen)

Year ended March 31,
2015
Business segment
AmountWater Treatment Chemicals
60,636
Water Treatment Facilities
129,665
Total
190,301
Note: The amounts were based on sales amounts.

2016
%
31.9
68.1
100.0

Amount84,131
131,698
215,829

%
39.0
61.0
100.0

(4) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Year ended March 31,
2015
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Amount
1,369
7,119
8,489

2016
%
16.1
83.9
100.0

Amount1,951
16,867
18,818

%
10.4
89.6
100.0

(5) Depreciation (Property, Plant and Equipment)(Million yen)

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2015
Amount1,206
13,172
14,378

%
8.4
91.6
100.0

2016
Amount1,634
11,775
13,409

%
12.2
87.8
100.0

21