FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Nine Months Ended December31, 2013
Tokyo, Japan, January 31, 2014—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 123,802 million yen and net income of 6,283 million yen,or 52.73 yen per share, for the nine months ended December 31, 2013 (April 1, 2013 –December 31, 2013).
Results of Operations
Total consolidated orders for the Kurita Group in the nine months ended December 31,
2013, decreased 1.5% from the same period of the previous fiscal year, to 128,933million yen. Net sales declined 4.5% year on year, to 123,802 million yen. In terms ofincome, operating income declined 33.1% year on year to 9,785 million yen, andordinary income fell 30.6%, to 10,675 million yen. Net income amounted to 6,283
million yen, down 12.9%.
During the nine months under review, the global economy recovered moderately,backed by a strong U.S. economy, despite a slowdown in China and emerging
economies in Asia. There were signs that the European economy, which had beensluggish, was bottoming out. In Japan, business sentiment improved, and personal
spending and corporate earnings appeared to be recovering with the correction to thestrong yen and the introduction of new government economic policies, but customers’
capacity utilization and capital expenditure did not improve significantly.
The Kurita Group (Kurita Water Industries and its consolidated subsidiaries andequity method affiliates) faced a challenging environment. Capital expenditure wasweak, and capacity utilization recovered only moderately at the Group’s main customers,
namely manufacturers in Japan. Overseas, demand for water treatment expanded, but
capital spending plans were cancelled or postponed in the electronics industry. Inaddition, the Group was affected by intensifying price competition. Reflecting this,orders and sales declined from a year earlier, and income fell due to the worsening of
the cost rate and an increase in selling, general and administrative expenses.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment in the nine-month
period stood at 44,100 million yen, up 5.4% versus the same period of the previous
fiscal year. Sales increased 1.7%, to 43,165 million yen, while operating income
declined 6.7%, to 6,095 million yen.
In Japan, with a slow improvement in capacity utilization at customers’ plants, orders
for and sales of mainstay boiler water treatment chemicals and process treatment
chemicals for the pulp and paper industries declined. Overseas, orders for and sales ofcooling water treatment chemicals, wastewater treatment chemicals, and reverse
osmosis membrane treatment chemicals increased, especially in Southeast Asia andChina. In the overall segment, sales rose. Selling, general and administrative expenses
increased, reflecting an increase in the overseas workforce.

1

Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment in the nine-month periodamounted to 84,832 million yen, down 4.7% versus the same period of the previous
fiscal year. Sales declined 7.6%, to 80,637 million yen, and operating income dropped
54.2%, to 3,699 million yen.
In Japan, orders for and sales of water treatment facilities declined in the electronics
industry, where demand for capital expenditure was weak. Orders for and sales of water
treatment facilities for electric power in general industries also fell due to thecompletion of demand related to reconstruction after the Great East Japan Earthquake.
Orders and sales declined slightly in the ultrapure water supply business, which is lesssusceptible to capital expenditure trends. Overseas, both orders and sales declined,reflecting postponements of the commencement of work and cancellations of orders in
the electronics industry in East Asia due to delays in customers’ capital expenditures.
Because of the decline in revenue, and unprofitable contracts and additional costs at
certain projects, the cost rate worsened.
Financial Condition
Assets, liabilities and net assets
Current assets totaled 154,397 million yen at the end of the third quarter (December 31,2013), an increase of 7,523 million yen versus the end of the previous fiscal year
(March 31, 2013). This was mainly a result of increases of 5,705 million yen in cash
and deposits, 4,000 million yen in marketable securities, and 4,329 million yen in workin process, which outweighed a decline of 9,547 million yen in trade accounts
receivable.
The decline in trade accounts receivable was the result of progress in collecting
receivables and weaker sales in the third quarter under review than in the fourth quarterof the previous fiscal year. The rise in marketable securities was attributable chiefly to arise in negotiable deposits, which are treated as marketable securities. The increase inwork in process was mainly the result of progress in construction work in the water
treatment facilities business.
Noncurrent assets totaled 114,112 million yen at the end of the third quarter(December 31, 2013), a decline of 2,593 million yen versus the end of the previous
fiscal year. The decline was principally attributable to a 7,418 million yen decrease inproperty, plant and equipment, which was partly offset by a 4,957 million yen rise ininvestments and other assets. The decline in property, plant and equipment was due tothe depreciation of ultrapure water supply business facilities exceeding capital
expenditures. The increase in investments and other assets reflected a rise in unrealized
gains on investment securities due to rises in the market prices of the shares held by theGroup.
Current liabilities totaled 33,182 million yen at the end of the period, a decline of
2,233 million yen versus the end of the previous fiscal year. The decline was mainly
attributable to a 2,052 million yen decrease in income taxes payable resulting from theannual and interim tax returns.
Noncurrent liabilities totaled 18,945 million yen at the end of the period, a slightdecrease of 101 million yen versus the end of the previous fiscal year.

2Net assets totaled 216,381 million yen at the end of the period, an increase of 7,263
million yen versus the end of the previous fiscal year primarily due to a 1,158 million
yen increase in shareholders’ equity and a 5,987 million yen rise in accumulated othercomprehensive income. The increase in shareholders’ equity resulted from net incomeof 6,283 million yen for the first nine months, which exceeded dividend payments of5,124 million yen, the sum of year-end dividends for the previous fiscal year andinterim dividends for the fiscal year under review. The increase in accumulated othercomprehensive income is a result of a 4,963 million yen rise in unrealized gains onavailable-for-sale securities due to the increase in unrealized gains on investment
securities and a 1,024 million yen increase in foreign currency translation adjustments
associated with a weaker yen. Certain shares of treasury stock were cancelled in thesecond quarter, which did not affect total net assets but reduced treasury stock 21,859
million yen (an increase in net assets) and retained earnings by the same amount.
Outlook for the Fiscal Year Ending March 31, 2014
The Group’s current outlook for the full year ending March 31, 2014 is consistent withthe targets disclosed in “Earnings Report for the Six Months Ended September 30,2013,” which was announced on October 31, 2013.

3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
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)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 noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable – trade
Accounts payable - trade
Income taxes payable
Allowances
Other
Total current liabilities
Noncurrent liabilities
Accrued employees’ retirement benefits
Other allowances
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 on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

As ofMarch 31, 2013
AmountAs ofDecember 31, 2013
Amount43,0396,10855,27934,000
1,445
2,238
1,191
3,676
(104)
146,874

48,744
7,087
45,73238,000
1,740
6,567
2,015
4,594
(86)
154,397

23,69336,173
26,95486,8201,619

21,57534,53323,29379,402
1,487

28,506(241)
28,265
116,705
263,580

33,596(374)
33,222
114,112268,509

1,451
16,5222,509
3,550
11,38235,415

1,855
15,293457
3,951
11,62433,182

10,835165
8,045
19,04654,462

11,30896
7,541
18,94552,12813,45011,426
202,807(21,859)
205,826

13,45011,426
182,107(1)
206,984

4,079
(564)
(1,469)2,045
1,246
209,118
263,580

9,042
(564)
(445)
8,032
1,365
216,381
268,509

4

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

Net sales
Cost of sales
Gross profit
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 expenses
Interest expense
Settlement
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Gain on discontinuation of approved retirement annuitysystem (closed-type)
Total extraordinary gainsExtraordinary losses
Impairment losses
Provision for building demolition expenses
Valuation loss on investment securities
Contribution
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in earnings of consolidated subsidiaries
Net income

Nine months ended
December 31, 2012
Amount129,662
86,61043,05228,435
14,617

Nine months ended
December 31, 2013
Amount123,80284,291
39,51029,724
9,785

108
347

123
335

271

190

197
925

424
1,074

61–98
159
15,382

46
56
81
184
10,675

1,048–

137–

1,186–

1,001
434
2,343–
3,778
12,790
5,529
7,260
47
7,213–* 190–** 500
690
9,985
3,653
6,331
48
6,283

5

Statement of Comprehensive Income(Million yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available-for-sale securities
Foreign currency translation adjustments
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 to minority interests

Nine months ended
December 31, 2012
Amount7,260

Nine months ended
December 31, 2013
Amount6,331

2,168(54)

4,957
998

22

105

2,136
9,396

6,061
12,393

9,338

12,27057

1236

Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Nine months ended December 31, 2013 (April 1, 2013 – December 31, 2013)
Not applicable(Notes on Statement of Income)* Provision for building demolition expenses
Nine months ended December 31, 2013 (April 1, 2013 – December 31, 2013)
The Company decided to demolish the annex of its former head office building (Tokyo, Shinjuku Ward).
Based on a reasonable estimate of the cost, the Company booked a provision for building demolition
expenses of 190 million yen as an extraordinary loss.
** Contribution
Nine months ended December 31, 2013 (April 1, 2013 – December 31, 2013)
The Company made an additional contribution of 500 million yen to the basic fund of the Kurita Waterand Environment Foundation and posted the amount as a contribution in extraordinary losses.
(Notes on Significant Changes in Shareholders’ Equity)
Nine months ended December 31, 2013 (April 1, 2013 – December 31, 2013)
Under a resolution at a meeting of the Board of Directors held on July 30, 2013, the Company canceled
13,635,662 shares of its treasury stock on August 6, 2013. The cancellation has not changed the total
amount of shareholders’ equity, but treasury stock declined 21,859 million yen (an increase inshareholders’ equity), and retained earnings fell by the same amount.

7

(Segment Information)
1. Sales and income by reportable segment
Nine months ended December 31, 2012 (April 1, 2012 – December 31, 2012)(Million yen)

Reportable Segments

Amounts
reported on
Adjustments the quarterly
statements of(note 1)
income(note 2)Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

Sales
Sales to outside customers
Inter-segment sales or transfers

42,428236

87,233
115

129,662351–(351)

129,662–

Total

42,66487,349130,014(351)

129,662

Segment income

6,531

8,074

14,605

11

14,617

Nine months ended December 31, 2013 (April 1, 2013 – December 31, 2013)(Million yen)

Reportable Segment

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

Water
TreatmentChemicals

Water
Treatment
Facilities

Total

43,165208
43,373
6,095

80,637
158
80,795
3,699

123,802366
124,168
9,795

Amounts
reported on
Adjustments the quarterly
statements of(note 1)income(note 2)–(366)(366)(9)

123,802–
123,802
9,785

Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income Adjustments.
2. Segment income is shown at the operating income level.

8Supplementary Information — Consolidated(1) Order Intake(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2012
2013
%
AmountAmount
41,85732.0
44,100%34.2

Water Treatment Facilities

88,98668.0

84,832

65.8

Total

130,844

100.0

128,933

100.0(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2012
2013
Amount%Amount42,42832.7
43,165%34.9

Water Treatment Facilities

87,233

67.3

80,637

65.1

Total

129,662

100.0

123,802100.0(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,2012
2013
Amount%Amount
1,009
23.8
1,192

%
36.6

Water Treatment Facilities

3,237

76.2

2,063

63.4

Total

4,247

100.0

3,255

100.0

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

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2012
2013
Amount%Amount
816
7.5
849

%
8.0

Water Treatment Facilities

10,101

92.5

9,809

92.0

Total

10,918100.0

10,659100.0

9