FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Nine Months Ended December 31, 2021
Tokyo, Japan, January 31, 2022 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities
Code 6370) announced net sales of 211,223 million yen and profit attributable to owners of parent of
12,031 million yen, or 107.08 yen per share, for the nine months ended December 31, 2021 (April 1,
2021 - December 31, 2021).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the nine months ended December 31,
2021 rose 16.8% from the level of the year-ago period, to 218,829 million yen, and net sales
increased 6.7%, to 211,223 million yen. Business profit* was increased 16.7%, to 25,194 million yen,operating profit was 25,539 million yen, up 8.1% versus the year-ago period, profit before tax was
20,773 million yen, declined 4.1%, and profit attributable to owners of parent amounted to 12,031
million yen, down 18.2%. Profit before tax and profit attributable to owners of parent declined due tofinance costs of 4,639 million yen posted in the first nine months under review, which resulted fromthe subsequent measurement of liabilities related to a forward contract concluded with
non-controlling shareholders of US-based Pentagon Technologies Group, Inc. (Water Treatment
Facilities business).
In the first quarter of the fiscal year under review, the Group acquired 51% of the shares in Kurita
AquaChemie Limited (Water Treatment Chemicals business) in the Middle East and made it and its
two wholly owned consolidated subsidiaries. The Group acquired also Keytech Water Management(Water Treatment Chemicals business), making it a consolidated subsidiary. The operating results of
those companies are newly consolidated.
The PPA for Pentagon Technologies Group, Inc. (Water Treatment Facilities business), which wasconsolidated in the same period of the previous fiscal year, was determined at the end of the previous
fiscal year, and the results in the same period of the previous fiscal year have been revised
retroactively.
During the nine months 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. Production activities in the
manufacturing industry in Japan were weak in certain sectors due to constraints on the supply of raw
materials, including semiconductor shortages, but were on a recovery trend. There were signs of arecovery in capital investment. Overseas, European, the U.S. and Chinese economies have recovered
gradually. Meanwhile, in some parts of 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 a deep understanding of social and customers’ issues, aiming
to become 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.

1

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 87,585 million yen, up 13.0%
versus the year-ago period, while net sales rose 13.3%, to 87,852 million yen.
In terms of profits, despite an increase in expenses with business activities returning to a normal
condition and the effect of rising raw materials prices, business profit amounted to 10,846 million
yen, an increase of 12.3% year on year, chiefly due to an increase in net sales, and operating profit
rose to 11,104 million yen, up 19.7% year on year, reflecting foreign exchange gains (other income)at overseas subsidiaries in addition to an increase in net sales.
Orders and net sales in Japan increased due to a rise in capacity utilization at customers’ plants,
which reflected a recovery in production activities in the manufacturing industry.
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 nine months) of the subsidiaries in the Middle East and Canada acquired in
the first quarter of the fiscal year under review, and an increase in results in yen at overseas
subsidiaries due to the weaker yen.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 131,243 million yen, up 19.4%
versus the same period of the previous fiscal year. Net sales increased 2.4%, to 123,370 million yen.
Business profit rose to 14,377 million yen, up 20.5％ year on year, chiefly reflecting efforts toimprove profitability, including cost cutting. Operating profit stood at 14,440 million yen, up 0.8％
year on year, due to the absence of a profit from liquidation of 2,076 million yen related tocancellations of contracts with a certain customer in the ultrapure water supply business posted inother income 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 due to the posting of orders for large projects and progress in the construction of large
projects. Orders and net sales for maintenance services for the industry increased, reflecting the
expansion of facilities and repairs, including the replacement of consumables, against a backdrop offirm capacity utilization at customers’ plants.
While orders for water treatment facilities for the general industry increased due to orders for large
projects posted, net sales declined as the posting of sales from large projects had run its course.
Orders and net sales of maintenance services for the industry climbed, reflecting growth in demandagainst a backdrop of a recovery in capacity utilization at customers’ plants. Both orders for and net
sales from water treatment facilities for the electric power industry decreased because orders forlarge projects declined and the posting of sales from the order backlog ran its course. Orders for soil
remediation services increased, but net sales fell as the posting of sales from large projects had run
its course.
Overseas, both orders and net sales increased due to the posting of orders and sales of large water
treatment facilities projects in the electronics industry in East Asia and an increase in demand fortool cleaning service.
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.

2

Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 457,489 million yen, an increase of 32,561 million yen from the end of the previous
fiscal year
Current assets totaled 178,978 million yen at the end of the third quarter (December 31, 2021), an
increase of 2,496 million yen from the end of the previous fiscal year (March 31, 2021). This was
mainly attributable to an increase of 10,438 million yen in trade and other receivables and a rise of
2,796 million yen in inventories, which more than offset a decrease in cash and cash equivalents of
11,940 million yen, chiefly due to purchase of property, plant and equipment and income taxes paid.
Non-current assets totaled 278,511 million yen at the end of the third quarter, an increase of
30,066 million yen from the end of the previous fiscal year. This chiefly reflected an increase of
33,995 million yen in property, plant and equipment due to the acquisition of new facilities in theultrapure water supply business (Water Treatment Facilities business) and progress in theconstruction of a new research and development base, Kurita Innovation Hub, in Akishima-shi,
Tokyo, which the Company plans to open in April 2022, despite a decrease of 8,633 million yen inother financial assets chiefly due to the sale of certain investment securities held.
2) Liabilities: 191,279 million yen, an increase of 24,189 million yen from the end of the previous
fiscal year
Current liabilities totaled 111,770 million yen at the end of the period, an increase of 36,818 million
yen from the end of the previous fiscal year. This is chiefly attributable to an increase in trade andother payables of 17,783 million yen and a rise in other financial liabilities of 17,609 million yen.
Other financial liabilities increased due to liabilities related to the forward contract concluded with
non-controlling shareholders of US-based Pentagon Technologies Group, Inc. (Water Treatment
Facilities business), which were transferred from non-current liabilities and a subsequent
measurement after initial recognition.
Non-current liabilities totaled 79,508 million yen at the end of the period, a decrease of 12,629
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 11,524 millionyen.
3) Equity: 266,209 million yen, an increase of 8,372 million yen from the end of the previous fiscal
yearThis principally reflected an increase of 9,127 million yen in retained earnings primarily due to profit
attributable to owners of parent posted.
Cash Flows
Consolidated net cash and cash equivalents at the end of the third quarter (December 31, 2021)
totaled 50,287 million yen, a decrease of 11,940 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 nine months ended December 31, 2021 totaled
17,764 million yen, a decrease of 14,922 million yen from the same period of the previous fiscal year.
Inflows from profit before tax of 20,773 million yen and depreciation and amortization of 17,103
million yen were partly offset by an increase in trade and other receivables of 8,794 million yen andincome taxes paid of 12,883 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 24,104 million yen, an increase of 19,279 million yen
from the same period of the previous fiscal year. Cash was used mainly for purchases of property,
3plant and equipment of 30,264 million yen and the acquisition of subsidiaries of 2,401 million yen(after deducting cash and cash equivalents included in acquired assets). The cash used was partly
offset by an increase in cash, including proceeds from sale of investment securities of 9,194 million
yen.
3) Cash Flows from Financing Activities
Net cash used in financing activities totaled 6,774 million yen, a decrease of 10,575 million yen fromthe same period of the previous fiscal year. Cash used included repayments of lease liabilities of
3,719 million yen and dividends paid of 8,548 million yen, which was partly offset by a net increasein short-term borrowings of 5,676 million yen.
The Group’s basic policy is to constantly secure the liquidity necessary for business operations
and establish 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 0 yen and 20,000 million yen, respectively).
4) Forecasts for the Fiscal Year Ending March 31, 2022
In the fiscal year ending March 31, 2022, net sales are expected to exceed the previous forecast,reflecting a recovery in demand for water treatment chemicals overseas at a faster pace than expected
and firm demand in the electronics industry. On the profit front, business profit will likely exceed theprevious forecast chiefly given an increase in net sales. Operating profit is also expected to exceed
the previous forecast, reflecting a capital gain on sale of fixed assets. The forecast for profit
attributable to owners of parent remains unchanged from the previous forecast, reflecting the postingof additional finance costs due to progress in business at US-based Pentagon Technologies Group,
Inc. that exceeded the business plan. The dividend forecast remains unchanged.
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.
Revision to the consolidated business forecast for the fiscal year ending March 31, 2022 (April 1,
2021 - March 31, 2022)
Net sales

Business profit

Profit attributable
Operating profit Profit before tax
to owners ofparent(Million yen)
Basic earnings
per share(yen)Previous forecast (A)289,000

33,00032,00028,10018,000160.19

Revised forecast (B)291,000

34,00034,00029,20018,000160.19Change (B-A)

2,000

1,000

2,000

1,100

0

‒

Percentage change (%)

0.7

3.0

6.3

3.9

0.0

‒

(Reference) Fiscal year
ended March 31, 2021

267,749

29,47031,52929,15019,088169.94

4

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

As of December 31, 2021

Cash and cash equivalents

62,22850,287

Trade and other receivables

97,745

108,183

Other financial assets

2,817

2,613

Inventories

9,911

12,707

Other current assets

3,780

5,185

Total current assets

176,482

178,978

Property, plant and equipment

117,603

151,598

Right-of-use assets

19,40518,933

Goodwill

55,59659,979Intangible assets

17,32017,039AssetsCurrent assets

Non-current assets

Investments accounted for using equity method

1,578

1,128

Other financial assets

33,56324,930

Deferred tax assets

3,199

4,759

Other non-current assets

177

141

Total non-current assets

248,445

278,511424,928

457,489

Total assets

5

(Million yen)
As of March 31, 2021

As of December 31, 2021

46,50664,289

445

6,197

4,373

4,401

‒

17,609

8,135

4,895

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

1,847

1,234

Other current liabilities

13,644

13,143

Total current liabilities

74,952

111,770

Bonds and borrowings

31,20730,943

Lease liabilities

15,327

14,602Other financial liabilities

13,703

2,179

Retirement benefit liability

18,027

18,688Provisions

1,160

2,312

Deferred tax liabilities

2,368

2,309

Other non-current liabilities

10,343

8,474

Total non-current liabilities

92,13779,508167,090

191,279

Share capital

13,45013,450Capital surplus(2,212)(2,203)

Treasury shares(10,787)(10,693)

8,500

6,689

Retained earnings

244,138

253,265

Equity attributable to owners of parent

253,089

260,508

Non-current liabilities

Total liabilities
EquityOther components of equity

4,748

5,701

Total equity

Non-controlling Interests

257,837

266,209

Total liabilities and equity

424,928

457,4896

(2) Condensed quarterly consolidated statement of profit or loss
(Million yen)
Nine months ended
December 31, 2020
Net sales
Cost of sales
Gross profit

Nine months ended
December 31, 2021

198,007211,223

128,181

133,482

69,82577,740

Selling, general and administrative expenses

48,23752,546

Other income

3,449

1,594

Other expenses

1,415

1,249

Operating profit

23,621

25,539Finance income

490

513

Finance costs

1,406

5,183

Share of profit (loss) of investments accounted for using
equity method(1,047)(96)

21,657

20,773

Profit before tax
Income tax expense
Profit for the period

6,458

7,775

15,19812,997

14,702

12,031

Profit attributable to
Owners of parent
Non-controlling Interests
Profit for the period

496

965

15,19812,997130.89107.08‒‒

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Condensed quarterly consolidated statement of comprehensive income(Million yen)
Nine months ended
December 31, 2020
Profit for the period

Nine months ended
December 31, 2021

15,19812,997

5,933

976

(34)

11

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

5,898

988

Exchange differences on translation of foreign operations

(139)

2,459

Cash flow hedges

(393)

11

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

(35)

72

Total of items that may be reclassified to profit or loss

(569)

2,543

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

Other comprehensive income, net of tax

5,328

3,531

Comprehensive income for the period

20,527

16,52920,33015,180196

1,348

20,527

16,529Comprehensive income attributable to
Owners of parent
Non-controlling Interests
Comprehensive income for the period8(4) Condensed quarterly consolidated statement of changes in equity
Nine months ended December 31, 2020 (April 1, 2020 - December 31, 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
income13,4508,212(10,893)(9,033)

503

Profit for the period

‒

‒

‒

‒

‒

8,747
‒

Other comprehensive income

‒

‒

‒

122

(393)

5,933

‒

‒

‒

122

(393)

5,933

Purchase of treasury shares

‒

‒

(2)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

29

111

‒

‒

‒

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

‒

‒

‒

‒

‒

(964)

Other

‒

(1)

‒

‒

‒

‒

‒

(10,549)

108

‒

‒

(964)

13,450(2,337)(10,785)(8,911)

109

13,715

Total comprehensive income for the period

Total transactions with owners
Balance as of December 31, 2020

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

Retainedearnings

Total

Non-controlling
Interests

Total

Total

Balance as of April 1, 2020‒

216

231,456

242,442

1,666

244,108

Profit for the period‒‒

14,702

14,702496

15,198

(33)

5,628

‒

5,628

(299)

5,328

(33)

5,628

14,702

20,330196

20,527Purchase of treasury shares

‒

‒

‒

(2)

‒

(2)

Dividends‒‒(7,076)(7,076)(993)(8,069)

Share-based payment transactions

‒

‒

‒

140

0

141

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

33

(931)

931

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

‒

‒

47

46

‒

46

Total transactions with owners

33

(931)

(6,097)(17,470)

2,267(15,202)

Balance as of December 31, 2020

‒

4,913

240,061

245,3024,130

249,433

Other

9

Nine months ended December 31, 2021 (April 1, 2021 - December 31, 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

Financial assets
measured at fairvalue throughothercomprehensive
incomeCash flow
hedges13,450(2,212)(10,787)(4,469)(91)

Profit for the period

‒

‒

‒

‒

‒

13,060‒

Other comprehensive income

‒

‒

‒

2,147

11

976

‒

‒

‒

2,147

11

976

Purchase of treasury shares

‒

‒

(4)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

16

98

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(4,946)

Other

‒

(7)

‒

‒

‒

‒

‒

8

94

‒

‒

(4,946)

13,450(2,203)(10,693)(2,321)

(79)

9,090

Total comprehensive income for the period

Total transactions with owners
Balance as of December 31, 2021

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

Retainedearnings

Total

Non-controlling
Interests

Total

Total

Balance as of April 1, 2021

‒

8,500

244,138

253,089

4,748

257,837

Profit for the period‒‒

12,031

12,031965

12,997

Other comprehensive income

13

3,148

‒

3,148

383

3,531

13

3,148

12,031

15,1801,348

16,529Purchase of treasury shares

‒

‒

‒

(4)

‒

(4)

Dividends‒‒(7,865)(7,865)(689)(8,554)

Share-based payment transactions

‒

‒

‒

114

(1)

113

Increase (decrease) by business combination

‒

‒

‒

‒

268

268

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings(13)(4,960)

4,960

‒

‒

‒

Total comprehensive income for the period

‒

‒

‒

(7)

26

19

Total transactions with owners(13)(4,960)(2,904)(7,762)(395)(8,158)

Balance as of December 31, 2021

‒

6,689

253,265

260,508

5,701

266,209

Other

10

(5) Condensed quarterly consolidated statement of cash flows(Million yen)
Nine months ended
December 31, 2020

Nine months ended
December 31, 2021

Cash flows from operating activities
Profit before tax

21,657

20,773

Depreciation and amortization

15,385

17,103

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

1,047

96

(4)

(59)

Decrease (increase) in inventories(452)(2,165)Decrease (increase) in trade and other receivables

3,955(8,794)

Increase (decrease) in trade and other payables(2,338)

3,363

Other

(3,025)(235)

Loss (gain) on sale of fixed assets

36,22430,081

Interest received

Subtotal

64

81

Dividends received

349

586

Interest paid

(55)

(102)

Income taxes paid

(3,896)(12,883)

Net cash provided by (used in) operating activities

32,686

17,764(1,407)(1,582)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

1,123

1,679

Purchase of property, plant and equipment(6,307)(30,264)

Proceeds from sale of property, plant and equipment

5,934

313

Purchase of intangible assets(1,290)(1,602)

Proceeds from sale of investment securities

2,533

9,194

Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)(4,605)(2,401)

(805)

560

(4,825)(24,104)

Net increase (decrease) in short-term borrowings(35,001)

5,676

Proceeds from issuance of bonds

29,882

‒

(516)

(335)

Repayments of lease liabilities(3,682)(3,719)Dividends paid

(8,062)(8,548)Other
Net cash provided by (used in) investing activities
Cash flows from financing activities

Repayments of long-term borrowings

Other

30

152

Net cash provided by (used in) financing activities(17,349)(6,774)

Effect of exchange rate changes on cash and cash equivalents

682

1,174

Net increase (decrease) in cash and cash equivalents

11,193(11,940)

Cash and cash equivalents at beginning of period

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

61,40850,28711

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Nine months ended December 31, 2021 (April 1, 2021 - December 31, 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 systemand facilities, supplies ultrapure water, chemical cleaning, tool cleaning, soil and groundwater remediation services, andprovides maintenance services that encompass operation, maintenance, and management of water treatment facilities.
(2) Information of reportable segments
Nine months ended December 31, 2020 (April 1, 2020 - December 31, 2020)(Million yen)
Reportable Segments
Water Treatment Water Treatment
Chemicals
Facilities

Total

Adjustments(note 1)

Amounts reported
on the condensed
quarterly
consolidated
statement of profit
or loss (note 2)

Net sales
Sales to outside customers
Inter-segment sales and transfers

77,515
339

120,491
1,586

198,007
1,926‒(1,926)

198,007‒

Total

77,855122,078

199,933(1,926)

198,007

9,279

14,332

23,612

923,621

Segment income
Finance income

490

Finance costs

1,406

Share of profit (loss) of investments accounted for using equity method(1,047)

Profit before tax

21,657(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

Nine months ended December 31, 2021 (April 1, 2021 - December 31, 2021)(Million yen)
Reportable Segments
Water Treatment Water Treatment
Chemicals
Facilities

Total

Adjustments(note 1)

Amounts reported
on the condensed
quarterly
consolidated
statement of profit
or loss (note 2)

Net sales
Sales to outside customers
Inter-segment sales and transfers

87,852
408

123,370374

211,223
783

‒
(783)

211,223‒

Total

88,261

123,745

212,006(783)

211,223

11,104

14,44025,544(5)

25,539Segment income
Finance income

513

Finance costs

5,183

Share of profit (loss) of investments accounted for using equity method
Profit before tax(96)
20,773(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

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(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.

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(Additional information)(Transfer of fixed assets)
At a meeting of the Board of Directors held on October 29, 2021, the Company resolved to transfer fixed assets, and theCompany concluded a real estate sales contract on December 16, 2021.
1. Reason for the transfer
To use management resources effectively and increase asset efficiency, the Company decided to transfer the fixed
assets below.
2. Assets to be transferred
Description and location of assets

Transfer priceBook value

Capital gain*2

Present status

Osaka Office
Land: 1/2 (co-ownership share) of 703.52 m2
Buildings: 3,068.41 m2 (total floor area)(2-22, Kitahama 2-chome, Chuo-ku, Osaka-shi,
Osaka)(*1)(*1)

1,100 million yen

Regional office*1 The transfer price and book value are not disclosed in line with the wishes of the transferee. The assets aretransferred at a reasonable price that reflects the market price.
*2 The capital gain is an estimated amount. It is calculated by subtracting the carrying amount and an estimatedamount of expenses related to the transfer from the transfer price.
3. Outline of the transferee
The Company has refrained from disclosing information on the transferee under an agreement with it. There is no
information to note regarding capital ties, personal relationships or related party matters between the transferee andthe Company.
4. Schedule(1) Date of resolution by the Board of Directors

October 29, 2021

(2) Date of conclusion of contract

December 16, 2021

(3) Date of delivery of assets

March 31, 2022 (plan)

5. Effects of the event on profits or losses
A gain on sale of fixed assets of 1,100 million yen is expected to be posted in other income due to the event in the
fourth quarter in the fiscal year ending March 31, 2022.

Disclaimer- This document is an English translation of the Earnings Report for the Nine Months Ended December 31, 2021 asreference information primarily for overseas investors. If there are any discrepancies between the Japanese version andthe English 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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