FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Three Months Ended June 30, 2021
Tokyo, Japan, July 30, 2021 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 63,199 million yen and profit attributable to owners of parent of 3,740
million yen, or 33.29 yen per share, for the three months ended June 30, 2021 (April 1, 2021 – June30, 2021).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the three months ended June 30,
2021 rose 18.6% from the level of the year-ago period, to 77,618 million yen, and net sales increased
3.6%, to 63,199 million yen. Business profit* was increased 4.6%, to 5,872 million yen, operating
profit was 5,816 million yen, down 0.5% versus the year-ago period, profit before tax was 5,630
million yen, declined 0.9%, and profit attributable to owners of parent amounted to 3,740 million yen,down 4.9%. Operating profit, profit before tax and profit attributable to owners of parent declined
due to the absence of the gain on step acquisition of 463 million yen that was posted in the same
period of the previous fiscal year in relation to the acquisition of Pentagon Technologies Group, Inc.
(Water Treatment Facilities business) in the United States, which was an equity method affiliate andbecame a consolidated subsidiary.
In the first quarter under review, the Group acquired 51% of the shares in Kurita Aquachemie
Limited (Water Treatment Chemicals business) in the Middle East and consolidated both it and its
two wholly owned subsidiaries. The Group acquired also Keytech Water Management (Water
Treatment Chemicals business), making it a consolidated subsidiary. The operating results of thosecompanies are newly consolidated. The PPA for Pentagon Technologies Group, Inc., which wasconsolidated in the same period of the previous fiscal year, was determined towards the end of theprevious fiscal year, and the results in the same period of the previous fiscal year have been revised
retroactively.
During the first quarter of the fiscal year ending March 31, 2022, there were signs of a recovery in
the world economy as economic activity moved toward normalization, reflecting economic stimulus
measures in the world and the increasing pace of vaccinations. In Japan, production activities in the
manufacturing industry recovered against the backdrop of growth in exports, and there were signs ofrecovery in capital investment in certain sectors. Overseas, the U.S. and Chinese economies
recovered steadily. Meanwhile, in certain countries in Europe and Asia, economic recovery was
weak due to a resurgence in COVID-19 infections.
In this environment, the Group stepped up initiatives to expand total solutions by focusing on
proposal activities that would help solve customer issues such as the reduction of the environmental
impact, including water saving, the reduction of CO2 emissions and waste reduction, and an
improvement in productivity based on society and customers' deep understanding of issues, aiming tobecome an indispensable partner of customers in the long term.
* Business profit is the Group’s own indicator that measures constant business performance. It is net
sales less cost of sales and selling, general and administrative expenses. Although business profit is
not defined by IFRS, the Group voluntarily discloses it, believing that it is beneficial for users of its
financial statements.
Segment Information
The Group consists of two reportable segments in its segment information: Water Treatment
Chemicals and Water Treatment Facilities.
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 29,238 million yen, up 13.7%
versus the year-ago period, while net sales rose 13.8%, to 27,901 million yen.
1

In terms of profits, business profit amounted to 3,236 million yen, an increase of 15.7% year on
year, and operating profit rose to 3,230 million yen, up 16.6% year on year, chiefly due to anincrease in net sales.
Both orders and net sales increased slightly in Japan due to a rise in capacity utilization atcustomers' plants, reflecting a recovery in production activity in the manufacturing industry, while
there were no increases in inventories at customers, a contrast to the same period of the previous
fiscal year.
Overseas, both orders and net sales rose due to an increase in reaction to a fall in demand a year
ago because of stagnant economic activities caused by the spread of COVID-19, the consolidation of
the operating results (for three months) of the subsidiaries in the Middle East and Canada acquired in
the first quarter under review, and an increase in results in yen at overseas subsidiaries due to theweaker yen.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 48,379 million yen, up 21.9%
versus the same period of the previous fiscal year. Net sales declined 3.2%, to 35,297 million yen.
Business profit fell to 2,650 million yen, down 6.3% year on year, due to a fall in sales and a risein selling, general and administrative expenses. Operating profit decreased to 2,591 million yen, afall of 15.9% year on year, reflecting the absence of a gain on step acquisition of 463 million yen(posted in other income) posted in the same period of the previous fiscal year.
In Japan, both orders and net sales of water treatment facilities for the electronics industry
increased. Orders for maintenance services for the industry increased, reflecting the expansion offacilities against a backdrop of firm capacity utilization at customers' plants. Net sales remained
almost flat due to progress in the construction of projects for which orders were posted in theprevious fiscal year.
Orders for water treatment facilities for general industries climbed, reflecting the posting of orders
for large projects, but net sales declined. Orders for maintenance services for the industry increased,reflecting a recovery in demand for maintenance at customers' facilities, but net sales fell. Bothorders for and net sales from water treatment facilities for the electric power industry and soil
remediation services decreased because orders for large projects declined and the posting of sales
from the order backlog ran its course.
Overseas, orders rose due to orders for large water treatment facilities projects in the electronics
industry in East Asia. However, net sales declined with the peaking of sales from water treatment
facilities for the electronics industry in East Asia, although net sales of tool cleaning service
increased.
Total net sales in the ultrapure water supply business in Japan and overseas increased due to thecontribution of a contract that began in the previous fiscal year.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 423,002 million yen, a decrease of 1,926 million yen from the end of the previous
fiscal year)
Current assets totaled 164,037 million yen at the end of the first quarter (June 30, 2021), a decreaseof 12,445 million yen from the end of the previous fiscal year (March 31, 2021). This was mainly
attributable to a decrease in cash and cash equivalents of 10,638 million yen, chiefly due to thepayment of income taxes and fixed assets purchasing expenses, and a decrease in trade and otherreceivables of 2,604 million yen due to the smooth collection of accounts receivable – trade.
Non-current assets totaled 258,965 million yen at the end of the first quarter, an increase of 10,520
million yen from the end of the previous fiscal year. Property, plant and equipment increased 9,458
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business(Water Treatment Facilities business) and progress in the construction of a new research anddevelopment base in Akishima-shi, Tokyo, which the Company plans to open in April 2022.
2

2) Liabilities: 165,611 million yen, a decrease of 1,479 million yen from the end of the previous
fiscal year
Current liabilities totaled 85,231 million yen at the end of the period, an increase of 10,279 million
yen from the end of the previous fiscal year. This was mainly due to an increase of 12,546 million
yen in other financial liabilities and an increase of 4,734 million yen in trade and other payables,
while income taxes payable fell 5,946 million yen.
An increase in other financial liabilities is chiefly attributable to liabilities related to the forward
contract concluded with non-controlling shareholders of Pentagon Technologies Group, Inc. (Water
Treatment Facilities business). They were transferred from non-current liabilities.
Non-current liabilities totaled 80,380 million yen at the end of the period, a decrease of 11,757
million yen from the end of the previous fiscal year. This is because liabilities related to the forward
contract were transferred to current liabilities, and other financial liabilities decreased 11,652 millionyen.
3) Equity: 257,391 million yen, a decrease of 446 million yen from the end of the previous fiscal
yearThis principally reflected a decrease of 850 million yen in other components of equity due to a fall infair value measured through other comprehensive income in association with a decrease in themarket value of shares held, while non-controlling interests increased 472 million yen chiefly due tobusiness combinations.
Cash Flows
Consolidated net cash and cash equivalents at the end of the first quarter (June 30, 2021) totaled
51,590 million yen, a decrease of 10,638 million yen from the end of the previous fiscal year (March
31, 2021).
The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the first quarter ended June 30, 2021 totaled 4,097
million yen, a decrease of 9,616 million yen from the same period of the previous fiscal year. Inflows
from profit before tax of 5,630 million yen and depreciation and amortization of 5,606 million yen
were partly offset by income taxes paid of 7,657 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 11,026 million yen, an increase of 3,938 million yen
from the same period of the previous fiscal year. Cash was used mainly for purchases of property,
plant and equipment of 7,967 million yen and the acquisition of subsidiaries of 2,611 million yen(after deducting cash and cash equivalents included in acquired assets).
3) Cash Flows from Financing Activities
Net cash used in financing activities totaled 3,918 million yen, a decrease of 11,536 million yen fromthe same period of the previous fiscal year. Cash was used mainly for dividends paid of 3,847 million
yen.
The Group’s basic policy is to constantly secure the liquidity necessary for business operations andestablish a stable funds-raising system. Short-term working capital is basically supplied by theGroup’s own funds. Capital investment and other investments in growth fields depend chiefly on theGroup’s own funds, but the Group considers financing through bond markets and bank loans asneeded. As of the end of the period under review, the Group has concluded commitment line
contracts with one financial institution (executed and unexecuted borrowings within the commitmentline were ‒ million yen and 20,000 million yen, respectively).

34) Forecasts for the Fiscal Year Ending March 31, 2022
Regarding the impact of COVID-19, while it is difficult to rationally estimate how COVID-19 will
spread and when it will subside, the Company assumes that the economy will recover moderately,
given that economic activities are likely to normalize gradually through the second half of the current
fiscal year owing to increasing vaccinations around the world and policy measures. Therefore, theGroup considers that consolidated earnings forecasts for the fiscal year ending March 31, 2022 will
be consistent with the forecast for the first half of the fiscal year ending March 31, 2022 and for thefull fiscal year stated in the “Earnings for the Fiscal Year Ended March 31, 2021” released on May 6,
2021.
The business forecasts are made by the Company based on information available at the time of
publication of this report and may differ from actual results due to changes in a range of factors.

4Condensed quarterly consolidated financial statements(1) Condensed quarterly consolidated statement of financial position(Million yen)
As of March 31, 2021

As of June 30, 2021

AssetsCurrent assets
Cash and cash equivalents

62,22851,590Trade and other receivables

97,745

95,141Other financial assets

2,817

2,733

Inventories

9,911

10,789Other current assets

3,780

3,781

Total current assets

176,482

164,037

Property, plant and equipment

117,603

127,062

Right-of-use assets

19,405

19,222

Goodwill

55,59658,306

Intangible assets

17,32017,124Non-current assets

Investments accounted for using equity method

1,578

1,245

Other financial assets

33,56331,593

Deferred tax assets

3,199

4,226

Other non-current assets

177

184

Total non-current assets

248,445258,965424,928

423,002

Total assets

5

(Million yen)
As of March 31, 2021

As of June 30, 2021

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Other financial liabilities
Income taxes payable

46,506

51,240

445

1,716

4,373

4,509

‒

12,546

8,135

2,189

Provisions

1,847

1,439

Other current liabilities

13,644

11,589Total current liabilities

74,952

85,231

Bonds and borrowings

31,207

31,134

Lease liabilities

15,327

15,058Other financial liabilities

13,703

2,051

Retirement benefit liability

18,02718,280

Provisions

1,160

1,635

Deferred tax liabilities

2,368

2,545

Other non-current liabilities

10,343

9,674

Total non-current liabilities

92,13780,380167,090

165,611

Share capital

13,45013,450Capital surplus(2,212)(2,206)

Treasury shares(10,787)(10,788)

8,500

7,650

Retained earnings

244,138

244,063

Equity attributable to owners of parent

253,089

252,170

Non-current liabilities

Total liabilities
EquityOther components of equity

4,748

5,220

Total equity

Non-controlling interests

257,837

257,391

Total liabilities and equity

424,928

423,0026

(2) Condensed quarterly consolidated statement of profit or loss
(Million yen)Three months ended
June 30, 2020
Net sales

Three months ended
June 30, 2021

60,98063,19939,43839,713

21,542

23,48615,926

17,613

Other income

714

312

Other expenses

483

369

Operating profit

Cost of sales
Gross profit
Selling, general and administrative expenses

5,847

5,816

Finance income

297

197

Finance costs

460

449

Share of profit (loss) of investments accounted for using
equity method

(2)

66

5,681

5,630

1,690

1,681

3,991

3,949

3,932

3,740

Profit before tax
Income tax expense
Profit for the period
Profit attributable to
Owners of parent
Non-controlling interests
Profit for the period

58

208

3,991

3,949

35.02

33.29

‒

‒

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Condensed quarterly consolidated statement of comprehensive income(Million yen)Three months ended
June 30, 2020
Profit for the period

Three months ended
June 30, 2021

3,991

3,949

3,031

(1,305)(24)

4

Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss

3,007

(1,300)Exchange differences on translation of foreign operations

(126)

440

Cash flow hedges

(65)

(14)

Share of other comprehensive income of investments
accounted for using equity method

(39)

27

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in the fair value of financial assets measured
at fair value through other comprehensive income
Remeasurements of defined benefit plans

(232)

452

Other comprehensive income, net of tax

Total of items that may be reclassified to profit or loss

2,774

(848)

Comprehensive income for the period

6,766

3,100

6,669

2,895

96

205

6,766

3,100

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income for the period8(4) Condensed quarterly consolidated statement of changes in equity
Three months ended June 30, 2020 (April 1, 2020 - June 30, 2020)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2020

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income
8,747

13,4508,212(10,893)(9,033)

503

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

(205)

(65)

3,031

Total comprehensive income for the period

‒

‒

‒

(205)

(65)

3,031

Purchase of treasury shares

‒

‒

(0)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

28

‒

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders‒(10,578)

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

‒

Other

‒

(55)

‒

‒

‒

‒

‒

(10,605)

(0)

‒

‒

‒

13,450(2,393)(10,894)(9,239)437

11,778

Total transactions with owners
Balance as of June 30, 2020

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2020‒

216

231,456

242,442

1,666

244,108

Profit for the period

‒

‒

3,932

3,932

58

3,991

(23)

2,736

‒

2,736

38

2,774

(23)

2,736

3,932

6,669

96

6,766

Purchase of treasury shares

‒

‒

‒

(0)

‒

(0)

Dividends‒‒(3,481)(3,481)(532)(4,013)

Share-based payment transactions

‒

‒

‒

28

0

28

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

3,260

3,260

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

(10,578)‒(10,578)

Transfer from other components of equity toretained earnings

23

23

(23)

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

‒

‒

47

(7)

‒

(7)

Total transactions with owners

Other

23

23

(3,457)(14,039)

2,728(11,311)

Balance as of June 30, 2020

‒

2,977

231,931

235,072

4,491

239,5639

Three months ended June 30, 2021 (April 1, 2021 - June 30, 2021)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2021

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(2,212)(10,787)(4,469)(91)

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

470

(14)

(1,305)

Total comprehensive income for the period

13,060

‒

‒

‒

470

(14)

(1,305)Purchase of treasury shares

‒

‒

(0)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

6

‒

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

‒

Other

‒

0

‒

‒

‒

‒

‒

6

(0)

‒

‒

‒

13,450(2,206)(10,788)(3,998)(105)

11,755

Total transactions with owners
Balance as of June 30, 2021

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controllinginterests

Total

Total

Balance as of April 1, 2021

‒

8,500

244,138

253,089

4,748

257,837

Profit for the period

‒

‒

3,740

3,740

208

3,949

Other comprehensive income

4

(845)

‒

(845)

(2)

(848)

4

(845)

3,740

2,895

205

3,100

Purchase of treasury shares

‒

‒

‒

(0)

‒

(0)

Dividends‒‒(3,819)(3,819)(6)(3,825)

Share-based payment transactions

‒

‒

‒

6

(2)

4

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

274

274

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

(4)

(4)

4

‒

‒

‒

Total comprehensive income for the period

‒

‒

(0)

0

‒

0

Total transactions with owners

Other

(4)

(4)

(3,814)(3,814)266(3,547)

Balance as of June 30, 2021

‒

7,650

244,063

252,1705,220

257,39110

(5) Condensed quarterly consolidated statement of cash flows(Million yen)Three months ended
June 30, 2020Three months ended
June 30, 2021

Cash flows from operating activities
Profit before tax

5,681

5,630

Depreciation and amortization

5,118

5,606

Share of loss (profit) of investments accounted for using
equity method

2

(66)

Loss (gain) on sale of fixed assets

(2)

(24)

Decrease (increase) in inventories

(963)

(419)

Decrease (increase) in trade and other receivables

9,438

3,281

Increase (decrease) in trade and other payables(2,317)(2,210)Other(1,773)(396)

15,183

11,399Interest received

Subtotal

32

19

Dividends received

169

367

Interest paid

(15)

(31)

Income taxes paid

(1,655)(7,657)

Net cash provided by (used in) operating activities

13,713

4,097

Payments into time deposits

(450)

(415)

Proceeds from withdrawal of time deposits

282

425

Purchase of property, plant and equipment(1,699)(7,967)

Cash flows from investing activities

Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)
Other

3

91

(318)

(507)

(4,605)(2,611)

(299)

(41)

(7,088)(11,026)(10,001)

1,259

(260)

(132)

Repayments of lease liabilities(1,189)(1,253)

Dividends paid

(4,007)(3,847)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings

Other

4

54

Net cash provided by (used in) financing activities(15,454)(3,918)

Effect of exchange rate changes on cash and cash equivalents

175

209

Net increase (decrease) in cash and cash equivalents(8,653)(10,638)

Cash and cash equivalents at beginning of period

50,21562,228Cash and cash equivalents at end of period

41,561

51,59011Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Three months ended June 30, 2021 (April 1, 2021 – June 30, 2021)
Not applicable(Segment Information)(1) Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial information isavailable. These segments are subject to periodic review to enable the Company’s board of directors to decide how toallocate resources and assess performance.
The Group plans comprehensive strategies for the products that it handles in Japan and overseas, and develops abusiness. The Group’s operations are therefore classified into two reportable segments, the Water Treatment Chemicals
segment and the Water Treatment Facilities segment.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals and equipment andprovides maintenance services. The Water Treatment Facilities segment manufacturers and sells water treatment
equipment and facilities, supplies ultrapure water, chemical cleaning, tool cleaning, soil and groundwater remediation
services, and provides maintenance services that encompass operation, maintenance, and management of water treatment
facilities.

12(2) Information of reportable segments
Three months ended June 30, 2020 (April 1, 2020 – June 30, 2020)(Million yen)
Reportable Segments

Sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

24,512
81

36,467435

60,980
517

‒
(517)

60,980‒24,59436,90361,498(517)

60,980

2,770

3,081

5,851

(4)

5,847

Total

Finance income

297

Finance costs

460

Share of profit (loss) of investments accounted for using equity method(2)

Profit before tax

5,681(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

Three months ended June 30, 2021 (April 1, 2021 – June 30, 2021)(Million yen)
Reportable Segments

Sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

27,90190

35,297
153

63,199
243

‒
(243)

63,199‒27,99135,451

63,443(243)

63,199

3,230

2,591

5,822

(6)

5,816

Total

Finance income

197

Finance costs

449

Share of profit (loss) of investments accounted for using equity method

66

Profit before tax

5,630(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

13

(Business Combination)(Transaction under Common Control)(1) Outline of the transaction(i) Company names and businesses at the time of integrationi) Surviving company
Company name
Kurita Water Industries Ltd.
Business description
Manufacture and sale of water treatment chemicals and water treatment facilities;
maintenance of water treatment facilities; ultrapure water supply; soil and groundwater
remediationii) Merged companies
Company name
Kurita Engineering Co., Ltd. ("Kurita Engineering")
Business description
Plant cleaning and maintenance; manufacture and sale of cleaning and sewage treatment
chemicals, facilities, and equipment; rental of temporary machinery(ii) Date of business combination
April 1, 2021(iii) Legal form of business combination
The business combination is an absorption-type merger. The surviving company is the Company. Kurita
Engineering has been dissolved.
(iv) Name of the company after business combination
Kurita Water Industries Ltd.
(v) Main reason of integration
Kurita Engineering was established in 1959, by spinning off the chemical cleaning division of the Company. As aleading plant cleaning engineering company, Kurita Engineering engages primarily in chemical cleaning for large
plants in Japan. In the social and industrial infrastructure market, including the electricity, iron and steel, petroleum
refinery and petrochemical industries, which are primarily where Kurita Engineering and the Company operate,needs to reduce the environmental impact, including decarbonization to address climate change, and demand
productivity improvement are increasing.
The merger enables the Company to appropriately respond to those needs by harnessing Kurita Engineering's strong
technological base and customer base and using in an agile way the Company's management resources, including
financial capital and human capital, and to provide optimal solutions. The Company will build a system to promptly
respond to social and customer needs in the social and industrial infrastructure market and will expand the plantcleaning business and achieve sustainable growth in the business.
(2) Outline of accounting
The business combination under common control is a business combination in which all companies or businesses
involved are ultimately controlled by the same company before and after the business combination. The control is not
temporary. The Group continues to perform accounting treatment for all business combination transactions undercommon control based on book value.

Disclaimer- This document is an English translation of the Earnings Report for the Three Months Ended June 30, 2021 as reference
information primarily for overseas investors. If there are any discrepancies between the Japanese version and theEnglish version, the Japanese version shall take precedence in all cases.
- This document is not subject to audit.
- The forward-looking statements such as performance forecasts contained in this document are based on information
currently available to the Company and certain assumptions deemed to be reasonable, and are not intended to be acommitment by the Company. Actual performance, etc. may differ due to a variety of factors. See “Forecasts for the
Fiscal Year Ending March 31, 2022” on page 4 of this document for the conditions assumed in the performance
forecasts and the precautions concerning the use of performance forecasts.

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