FOR IMMEDIATE RELEASE
Kurita Water Industries Ltd. Reports Earnings for the Fiscal Year ended March 31, 2024
Tokyo, Japan, May 9, 2024 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 384,825 million yen and profit attributable to owners of parent of 29,189
million yen, or 259.70 yen per share, for the fiscal year ended March 31, 2024 (April 1, 2023 - March
31, 2024).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the fiscal year ended March 31, 2024
rose 4.2% from the level of the previous fiscal year, to 390,152 million yen, and net sales increased
11.7%, to 384,825 million yen. Business profit* increased 9.0%, to 42,055 million yen, operating profit
was 41,232 million yen, up 41.9% versus the previous fiscal year, profit before tax was 41,686 million
yen, rising 38.3%, and profit attributable to owners of parent amounted to 29,189 million yen, up
45.0%.
During the fiscal year, other income of 1,968 million yen and other expenses of 2,791 million yen
were posted. Other income increased 404 million yen from the previous fiscal year, chiefly due toforeign exchange gains posted at European subsidiaries. Other expenses decreased 8,304 million yen,chiefly reflecting the absence of a goodwill impairment loss of 7,646 million yen related to Kurita
America, Inc. (Water Treatment Chemicals business) posted in the previous fiscal year. The otherincome and expenses significantly boosted operating profit, profit before tax, and profit attributable toowners of parent.
During the fiscal year ended March 31, 2024, the global economy experienced increasing
uncertainty, a reflection of the prolonged war in Ukraine and growing tensions over the Middle East
crisis. Despite this, signs of an economic recovery continued to emerge, although there was evidenceof weakness in some areas due to price hikes and interest rate increases.
Looking at the market conditions surrounding the Group, production activities in Japan’s
manufacturing industry showed a tendency towards recovery due to increasing consumer spending
following the normalization of social activities, which resulted from the COVID-19 pandemic being
downgraded to a Class 5 infectious disease. The removal of constraints on the supply of raw materials
also played a role in the recovery of production. However, the recovery slowed down in the second
half of the fiscal year, chiefly due to weak semiconductor-related demand and production stoppages atcertain auto manufacturers. Capital investment held firm against a backdrop of high corporate earnings.
Overseas, the U.S. economy remained firm, but European economies saw sluggish growth due to rising
prices, especially energy prices, and interest-rate hikes. The Chinese economy’s rebound was weak,
mainly due to the prolonged slump in the real estate market, while other Asian regions showed signsof recovery.
In this environment, the Group has begun implementing a five-year medium-term management plan
named PSV-27 (Pioneering Shared Value 2027). The basic policy is to refine human resources,
technologies and business processes to create value that exceeds expectations from stakeholders
through overwhelming speed and problem-solving ability. In the electronics industry, the Grouputilized, throughout the value chain, its water knowledge, which it had acquired and visualized byleveraging digital technology and analyzing the data accumulated primarily in the ultrapure watersupply business. The Group brought together in a single organization three functions—sales,
production, and development—to offer solutions that help customers solve their problems based on a
deep understanding of them in the areas of environmental impact reduction, including water saving,greenhouse gas emission reduction, and waste recycling, as well as productivity improvements. In thegeneral industry, the Group identified, in a centralized manner, the trends and needs of customers
involved in various types of business across different countries and regions and stepped up initiatives
to expand the CSV (creating shared value) business globally, offering solutions that create value sharedwith society. Overseas, the Group acquired four companies, Arcade Group companies including
Arcade Engineering GmbH (Head Office: Germany). As a result, the Group obtained local
1manufacturing bases and a supply chain for its water treatment facilities business for the electronics
industry in Europe. The Group worked to build a business foundation for responding promptly to anincrease in demand for water treatment facilities for the electronics industry chiefly due to theEuropean Chips Act.
* 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
Previously, the Group’s reportable segments were the Water Treatment Chemicals segment and theWater Treatment Facilities segment, from the viewpoint of the products and services provided;
however, starting from the fiscal year under review, the Group has Electronics Industry and GeneralIndustry as the two reportable segments in its segment information, in order to formulate strategies
based on an in-depth examination of the characteristics of each market and to expand solutions by
combining diverse products and services, from the viewpoint of providing value to society andcustomers.
Year-on-year comparisons are based on figures for the same period of the previous fiscal year whichhave been reclassified to conform to the new segments.
Electronics Industry
Total Group orders for the Electronics Industry segment fell 2.4%, to 165,805 million yen from theprevious fiscal year. Orders for recurring contract-based services increased chiefly due to thecontribution of an ultrapure water supply contract that began in the previous fiscal year, and orders formaintenance exceeded the high level recorded a year ago. However, orders for water treatment
facilities decreased due to the absence of orders for large-scale projects posted in the same period of
the previous year. Orders for precision tool cleaning fell, reflecting the impact of lower capacity
utilization at customers’ plants in Japan and the U.S. associated with the deterioration in semiconductor
market conditions.
Total Group net sales for the Electronics Industry segment amounted to 172,698 million yen, an
increase of 15.7% year on year. While net sales of precision tool cleaning decreased, net sales of water
treatment facilities rose sharply due to progress with the construction of already ordered large-scale
projects and net sales of recurring contract-based services and maintenance also grew.
In terms of profits, business profit amounted to 19,938 million yen, a decrease of 8.3% year on year,
and operating profit declined 3.3%, to 20,202 million yen, reflecting a decrease in sales of precision toolcleaning and a deterioration in the cost of sales ratio due to an increase in facility projects with acomparatively high cost ratio.
General Industry
Total Group orders for the General Industry segment increased 9.8% from the previous fiscal year, to224,346 million yen. Orders for water treatment chemicals declined given lower capacity utilization atcustomers’ plants, mainly in China. Orders for water treatment facilities rose mainly due to the additionof four Arcade companies as new consolidated subsidiaries. Orders for recurring contract-based
services, engineering cleaning, and maintenance also increased.
Total Group net sales for the General Industry segment amounted to 212,127 million yen, an
increase of 8.6% year on year. Decline in sales of water treatment chemicals was offset by the additionof new consolidated subsidiaries and recognition of revenue from the order backlog in the water
treatment facilities business and maintenance business, as well as growth in recurring contract-based
services and engineering cleaning, resulting in growth in net sales.
In terms of profits, business profit amounted to 22,103 million yen, an increase of 30.8% year on
year, reflecting higher sales and efforts to improve profitability, including product mix optimization2

and cost-cutting. Operating profit rose significantly to 21,030 million yen, up 155.1% year on year,
reflecting the absence of a goodwill impairment loss of 7,646 million yen related to Kurita America,
Inc. (Water Treatment Chemicals business) posted in the previous fiscal year.
Financial Condition
1) Total assets: 557,407 million yen (increased 55,869 million yen from the end of the previous fiscal
year)
Current assets totaled 228,018 million yen at the end of the period, an increase of 31,602 million yen
from the end of the previous fiscal year. This was mainly due to an increase of 19,165 million yen in
trade and other receivables, a rise of 4,222 million yen in inventories, and a climb of 3,541 million yen
in cash and cash equivalents.
Non-current assets totaled 329,388 million yen at the end of the period, an increase of 24,267 million
yen from the end of the previous fiscal year. Property, plant and equipment increased 12,236 million
yen chiefly due to the acquisition of new facilities in the ultrapure water supply business (Electronics
Industry), and goodwill rose 10,588 million yen. The rise in goodwill is attributable to an increase of
2,734 million yen due to the acquisition of Arcade Engineering GmbH, Arcade Industrie SAS and
Kurita Switzerland AG (former Arcade Engineering AG, whose name changed on December 18, 2023),
companies manufacturing and selling water treatment facilities in Europe, and Arcade Engineering(Asia) Pte. Ltd. during the second quarter under review, and also reflects the weakening of the yen
against foreign currencies.
2) Liabilities: 223,995 million yen, an increase of 18,217 million yen from the end of the previous
fiscal year
Current liabilities totaled 118,620 million yen at the end of the period, an increase of 9,152 million yen
from the end of the previous fiscal year. This is chiefly attributable to increases of 16,938 million yen
in trade and other payables and 2,302 million yen in other current liabilities, which offset a decreaseof 9,901 million yen in bonds and borrowings.
Non-current liabilities totaled 105,375 million yen at the end of the period, an increase of 9,065
million yen from the end of the previous fiscal year. This was mainly due to an increase in bonds andborrowings of 9,956 million yen resulting from the increase of long-term borrowings.
3) Equity: 333,411 million yen, an increase of 37,652 million yen from the end of the previous fiscal
yearThis was attributable to an increase of 16,251 million yen in other components of equity mainly due
to the posting of exchange differences on translation of foreign operations, reflecting the weakeningof the yen against other currencies, and a rise of 21,019 million yen in retained earnings due to theposting of a profit attributable to owners of parent.
Cash Flows
Consolidated net cash and cash equivalents at the end of the fiscal year ended March 31, 2024 totaled
54,009 million yen, an increase of 3,541 million yen from the end of the previous fiscal year ended
March 31, 2023.
The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the fiscal year ended March 31, 2024 totaled 50,874
million yen, an increase of 2,243 million yen from the previous fiscal year. This was chiefly due to
inflows, including profit before tax of 41,686 million yen and depreciation, amortization andimpairment losses of 32,637 million yen, which were partially offset by outflows, including an increasein trade and other receivables of 15,177 million yen and income taxes paid of 12,965 million yen.
2) Cash Flows from Investing Activities3

Net cash used in investing activities totaled 35,801 million yen, a decrease of 10,473 million yen fromthe previous fiscal year. Cash was used mainly for purchases of property, plant and equipment of
28,958 million yen and the acquisition of subsidiaries of 3,080 million yen (after deducting cash andcash equivalents included in acquired assets).
3) Cash Flows from Financing Activities
Net cash used in financing activities totaled 15,337 million yen, an increase of 16,438 million yen fromthe previous fiscal year. Cash was used mainly for dividends paid of 9,236 million yen, a net decreasein short-term borrowings and commercial paper of 10,196 million yen, and repayments of leaseliabilities of 5,310 million yen, which were partially offset by proceeds from long-term borrowings of
12,013 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, capital investment and otherinvestments in growth fields depend chiefly on the Group’s own funds, but the Group procuresfinancing through bond markets and bank loans as needed. As of the end of the fiscal year under review,
the Group has concluded commitment line contracts with two financial institutions (no borrowing
executed and unexecuted borrowings within the commitment line was 20,000 million yen).
(Reference) Indicators related to cash flow
Year ended
Year ended
Year ended
Year ended
Year ended
March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024
Ratio of equity attributable to ownersof parent (%)

62.5

59.6

57.9

58.6

59.4

Ratio of equity attributable to ownersof parent based on market value (%)

72.3

125.4

108.7

135.4

127.0

Ratio of interest-bearing debt to cash
flows (%)

148.1

130.3

207.0

207.4

200.7

Interest coverage ratio (times)

126.3

187.8

123.9

124.1

132.8

Ratio of equity attributable to owners of parent: Equity attributable to owners of parent / Total assets
Ratio of equity attributable to owners of parent based on market value: Market capitalization / Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest payments
1. Each indicator is calculated based on consolidated financial figures.
2. Market capitalization is calculated based on the number of shares outstanding excluding treasury stock.
3. Cash flow is net cash provided by operating activities.
4. Interest-bearing debt includes all liabilities requiring the payment of interest under the liabilities section of theconsolidated statement of financial position.

Outlook for Overall Business, Including Production, Sales, and Profits and Losses
The global economy is experiencing a moderate slowdown. The Chinese economy is expected to slow
due to a real estate market slump and the ongoing trade tensions between the U.S. and China, leading
to import and export restrictions. In the United States, demand control measures to curb inflation willtake effect, but the economy will slow only slightly due to the firm employment situation. The U.S.
economy will likely rebound in the latter half of the fiscal year following interest rate cuts. Emerging
economies, including Asian economies other than China, will experience firm growth because ofslower rises in import prices resulting from interest rate cuts in the U.S., leading to lower downward
pressure on the currencies. These economies are replacing China as production and demand areas, andincreasing direct investment in them will also help them grow.
The semiconductor market is expected to recover, driven by demand for automobiles and generative
AI. Data centers focusing on AI will likely invest in acquiring new equipment, including generalpurpose servers, or in replacing existing equipment.
The Japanese economy is predicted to return to a firm growth trajectory based on domestic demand.
4While wages continue to increase due to the labor shortage, price hikes will slow. As a result, real
wages will increase, and consumer spending is expected to rebound. Companies will pass on cost
increases to their customers, and corporate performance will be firm. Capital investment will continue
to increase. Exports are expected to continue to increase following an upturn in the semiconductor
cycle, although the growth rate will likely slow because of a possible downturn in overseas economies.
The forecasts do not reflect causes for concern over a further slowdown in the global economy,
including increasing energy inventories due to growing geopolitical risks and reviews of supply chainsdue to the strengthening of economic security. In that case, capacity utilization at plants of customers
may fall and capital expenditures may be postponed. It is also possible that business activities at theGroup will be delayed. If the actual situation becomes very different from our assumption, our businesswill be affected and the forecasts may have to be revised.
The consolidated results forecasts for the first half and the full year of the fiscal year ending March
31, 2025 are as shown below.
(The percentages are year-on-year changes.)First half of the fiscal year
(April 1, 2024
- September 30, 2024)

Full year(April 1, 2024
- March 31, 2025)

Million yen%

Million yen%

Net sales
Business profit

194,000
20,0003.0
10.7

400,000
47,000

3.9
11.8

Operating profit

19,5006.6

46,000

11.6

Profit before tax

19,2005.6

45,000

7.9

Profit attributable to owners of parent

13,5007.2

33,000

13.1

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.
Outlook by Segment
Electronics Industry
Orders, especially in the service business, such as precision tool cleaning, are expected to increase
given an anticipated semiconductor market recovery. Net sales are projected to decline due to the lackof sales from domestic large facility projects posted in the previous fiscal year, despite an expected
increase in the service business. Business profit and operating profit are expected to increase, chiefly
due to an improvement in the cost of sales ratio resulting from an increase in sales in the service
business, which will more than offset the decrease in sales and an expected rise in selling, general andadministrative expenses.
General Industry
Orders and net sales will increase due to the planned acquisition of a new large facility project in the
United States, progress in constructing these facilities, and growth in the water treatment chemicals
business. Business profit and operating profit are expected to increase, chiefly due to the predicted risein net sales, which will likely exceed an increase in selling, general and administrative expenses.
Dividend Policy and Dividends for the Fiscal Year ended March 31, 2024 and the Fiscal Yearending March 31, 2025
The Company’s basic policy is to provide shareholders with stable dividends.
Setting a payout ratio of 30 to 50% as our target, we will work to continue to increase dividends,
making decisions based on the payout ratios for the most recent five years to respond flexibly tofluctuations in business performance each year. In using retained earnings, we will maintain capitaldiscipline and will prioritize promising business fields that are expected to grow. If we have decided
that there are excess funds, we will take steps to improve capital efficiency and return profits toshareholders, including the acquisition of treasury stock, taking the share price into consideration.
5

We intend to pay a year-end dividend of 42 yen per share for the fiscal year ended March 31, 2024,
3 yen more than the previous year-end dividend. Combined with the interim dividend of 42 yen per
share (3 yen more than the previous interim dividend), the annual dividend comes to 84 yen per share,
6 yen higher than the previous fiscal year’s annual dividend. For the fiscal year ending March 31, 2025,
The Company plans to pay an interim dividend of 46 yen per share and a year-end dividend of 46 yen
per share, for an annual dividend to be 92 yen per share.
The dividend forecasts above are made by the Company based on information available at the timeof publication of this report. Actual results may differ from them due to a range of factors.
Basic Concept for the Selection of Accounting Standards
The Group voluntarily applied IFRS from the first quarter of the fiscal year ended March 31, 2020 for
its consolidated financial statements for the purpose of increasing the international comparability offinancial information and unifying accounting treatment within the Group.

6

Consolidated financial statements(1) Consolidated statement of financial position(Million yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and cash equivalents

50,46854,009Trade and other receivables

120,299

139,464

Other financial assets

3,357

6,367

Inventories

16,84721,069Other current assets

5,444

7,107

Total current assets

196,416228,018

Property, plant and equipment

178,737

190,973

Right-of-use assets

21,92822,898Goodwill

60,41371,001Intangible assets

17,104

17,485

Non-current assets

Investments accounted for using equity method

1,283

1,422

Other financial assets

15,433

16,994

Deferred tax assets

9,984

8,340

Other non-current assets

235

272

Total non-current assets

305,121329,388

501,538

557,407

Total assets

7

(Million yen)
As of March 31, 2023

As of March 31, 2024

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

51,46568,403

Bonds and borrowings

28,99819,097

Lease liabilities

4,294

4,603

Income taxes payable

6,018

5,423

Provisions

2,301

2,399

Other current liabilities

16,39018,692

Total current liabilities

109,468

118,620

Bonds and borrowings

48,75858,714

Lease liabilities

18,016

18,774Non-current liabilities

Other financial liabilities

1,666

2,338

Net defined benefit liability

17,321

17,527

Provisions

2,613

2,865

Deferred tax liabilities

2,362

1,628

Other non-current liabilities

5,570

3,526

Total non-current liabilities

96,310105,375

205,778

223,995

13,45013,450Total liabilities
EquityShare capital
Capital surplus

(608)

(361)

Treasury shares(10,638)(10,869)

Other components of equity

14,13230,383Retained earnings

277,639

298,658

293,975

331,261

1,784

2,150

Total equity

295,759

333,411

Total liabilities and equity

501,538

557,407

Equity attributable to owners of parent
Non-controlling interests8(2) Consolidated statement of profit or loss and comprehensive income
Consolidated statement of profit or loss
(Million yen)
Year ended March 31, 2023

Year ended March 31, 2024

344,608

384,825

224,911

252,983

119,696

131,841

Selling, general and administrative expenses

81,10689,786

Other income

1,564

1,968

Net sales
Cost of sales
Gross profit

Other expenses

11,095

2,791

Operating profit

29,05841,232Finance income

1,990

1,439

Finance costs

1,077

1,127

179

141

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

30,151

41,686

Income tax expense

9,473

12,099Profit for the period

20,67729,586

20,13429,189543

396

20,67729,586179.14259.70‒‒

Profit attributable to
Owners of parent
Non-controlling interests
Profit for the period
Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)9Consolidated statement of comprehensive income(Million yen)
Year ended March 31, 2023

Year ended March 31, 2024

20,67729,586

Net change in fair value of financial assets measured atfair value through other comprehensive income

674

1,614

Remeasurements of defined benefit plans

830

192

1,505

1,807

5,245

15,413

182

(88)

2

67

5,429

15,393

Profit for the period
Other comprehensive income
Items that will not be reclassified to profit or loss

Total of items that will not be reclassified to profit orloss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Cash flow hedges
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified to profit or loss
Other comprehensive income, net of tax

6,935

17,20027,612

46,787

Owners of parent

26,17646,306

Non-controlling interests

1,436

481

27,612

46,787

Comprehensive income for the period
Comprehensive income attributable toComprehensive income for the period10(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023)(Million yen)
Equity attributable to owners of parent
Other components of equity

Balance as of April 1, 2022

Share capital

Capital surplus

Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(3,076)(10,694)

3,493

40

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

4,354

182

674

Total comprehensive income for the period

8,627

‒

‒

‒

4,354

182

674

Purchase of treasury shares

‒

‒

(2)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

76

58

‒

‒

‒

Changes in ownership interests in subsidiaries‒(19,793)

‒

1,830

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders‒

22,051‒‒‒‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(5,070)

Other

‒

132

‒

‒

‒

‒

‒

2,467

55

1,830

‒

(5,070)13,450(608)(10,638)

9,678

222

4,231

Total transactions with owners
Balance as of March 31, 2023

(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, 2022‒

12,161

260,073

271,914

5,948

277,862

Profit for the period‒‒

20,134

20,134543

20,677

830

6,041

‒

6,041

893

6,935

830

6,041

20,134

26,176

1,436

27,612

Purchase of treasury shares

‒

‒

‒

(2)

‒

(2)

Dividends‒‒(8,429)(8,429)(280)(8,709)

Share-based payment transactions

‒

‒

‒

135

(31)

103

Changes in ownership interests in subsidiaries

‒

1,830

‒

(17,962)(5,289)(23,251)

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

22,051‒22,051

Transfer from other components of equity toretained earnings(830)(5,901)

5,901

‒

‒

‒

‒

‒

(39)

92

‒

92

Other comprehensive income
Total comprehensive income for the period

Other
Total transactions with owners
Balance as of March 31, 2023

(830)

(4,070)(2,567)(4,115)(5,600)(9,715)‒

14,132

277,639

293,975

1,784

295,75911

Fiscal year ended March 31, 2024 (April 1, 2023 - March 31, 2024)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2023

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(608)(10,638)

9,678

222

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

15,397

(88)

1,614

Total comprehensive income for the period

4,231

‒

‒

‒

15,397

(88)

1,614

Purchase of treasury shares

‒

‒

(356)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

247

125

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

(741)

Other

‒

‒

‒

68

‒

‒

‒

247

(231)

68

‒

(741)

13,450(361)(10,869)

25,144134

5,104

Total transactions with owners
Balance as of March 31, 2024

(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, 2023‒

14,132

277,639

293,975

1,784

295,759

Profit for the period‒‒

29,18929,189396

29,586

192

17,116‒

17,11684

17,200192

17,11629,18946,306481

46,787Purchase of treasury shares

‒

‒

‒

(356)

‒

(356)

Dividends‒‒(9,105)(9,105)(112)(9,218)

Share-based payment transactions

‒

‒

‒

373

(2)

370

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

(192)

(934)

934

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

Other
Total transactions with owners
Balance as of March 31, 2024

‒

68

‒

68

‒

68

(192)

(865)

(8,171)(9,020)(115)(9,135)‒30,383

298,658

331,261

2,150

333,41112

(4) Consolidated statement of cash flows(Million yen)
Year ended March 31, 2023

Year ended March 31, 2024

Profit before tax

30,151

41,686

Depreciation, amortization and impairment loss

37,27632,637

(179)

(141)

Cash flows from operating activities

Share of loss (profit) of investments accounted for using
equity method
Loss (gain) on sale of fixed assets

76

(30)

Decrease (increase) in inventories(3,109)(2,741)

Decrease (increase) in trade and other receivables(10,172)(15,177)

Increase (decrease) in trade and other payables

7,965

7,290

Other

3,365

(144)

65,37363,378Interest received

301

508

Dividends received

442

336

SubtotalInterest paid

(392)

(383)

(17,094)(12,965)

48,63150,874

Payments into time deposits(4,871)(10,467)

Proceeds from withdrawal of time deposits

4,902

7,695

Purchase of property, plant and equipment(53,384)(28,958)

265

66

Purchase of intangible assets(1,601)(3,096)

Proceeds from sale of investment securities

8,854

1,903

‒

(3,080)

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from sale of property, plant and equipment

Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)
Other

(439)

136

(46,274)(35,801)

Net increase (decrease) in short-term borrowings andcommercial paper

18,722(10,196)

Proceeds from issuance of bonds

9,955

‒

Proceeds from long-term borrowings

9,988

12,013

Net cash provided by (used in) investing activities
Cash flows from financing activities

Repayments of long-term borrowings(499)(2,375)

Repayments of lease liabilities(5,170)(5,310)

Dividends paid

(8,699)(9,236)

Purchase of shares of subsidiaries not resulting in change
in scope of consolidation(23,272)

‒

76

(231)

1,101

(15,337)

1,278

3,805

Other
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

4,737

3,541

Cash and cash equivalents at beginning of period

45,73050,468Cash and cash equivalents at end of period

50,46854,00913

Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Not applicable(Segment Information)(1) Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial information is available. Thesesegments are subject to periodic review to enable the Company’s board of directors to decide how to allocate resources and assess
performance.
Previously, the Group’s reportable segments were the Water Treatment Chemicals segment and the Water Treatment Facilities segment,from the viewpoint of the products and services provided; however, starting from the fiscal year under review, which is the first fiscal
year of the new Medium-term Management Plan PSV-27, the Group has Electronics Industry and General Industry as the two reportablesegments in its segment information, in order to formulate strategies based on an in-depth examination of the characteristics of eachmarket and to expand solutions by combining diverse products and services, from the viewpoint of providing value to society andcustomers.
The segment information for the fiscal year ended March 31, 2023 has also been restated to reflect this change.

14(2) Information of reportable segments
Fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023)(Million yen)
Reportable Segments

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

Total

Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements

Electronics
Industry

General Industry

149,275‒

195,332‒

344,608‒‒‒

344,608‒

149,275

195,332

344,608‒

344,608

20,8908,243

29,134(75)

29,058Finance income

1,990

Finance costs

1,077

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

179

Profit before tax

30,151(Million yen)
Reportable Segments

Segment assets
Other amounts
Depreciation and amortization
Impairment loss
Investments accounted for using equity
methodCapital expenditures

Total

Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements

Electronics
Industry

General Industry

235,718

211,377

447,096

54,441

501,538

19,807
‒

9,807
7,660

29,614
7,660‒‒

29,614
7,660

‒

1,234

1,234

49

1,283

38,263

9,978

48,241‒

48,241(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.
3. Segment assets: Amount resulting from eliminations of inter-segment transactions.
The main factor of adjustments for segment assets is company-wide assets that are not allocated to the reportable segments.
4. Capital expenditures include an increase in right-of-use assets.
5. The main factor of impairment loss is a loss on goodwill impairment of 7,646 million yen. For details, refer to (Consolidated
Statement of Profit or Loss: Other expenses).

15

Fiscal year ended March 31, 2024 (April 1, 2023 - March 31, 2024)(Million yen)
Reportable Segments

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

Total

Electronics
Industry

General Industry

172,698‒

212,127‒

384,825‒

172,698

212,127

20,202

21,030Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements‒‒

384,825‒

384,825‒

384,825

41,233(0)41,232Finance income

1,439

Finance costs

1,127

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

141

Profit before tax

41,686(Million yen)
Reportable Segments

Segment assets
Other amounts
Depreciation and amortization
Impairment loss
Investments accounted for using equity
methodCapital expenditures

Total

Adjustments(Note)

Amounts
reported on the
consolidated
financialstatements

Electronics
Industry

General Industry

261,694

234,018495,71361,693

557,407

21,697‒

10,939‒32,637‒‒‒32,637
‒

‒

1,368

1,368

53

1,422

33,107

8,916

42,023‒42,023(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.
3. Segment assets: Amount resulting from eliminations of inter-segment transactions.
The main factor of adjustments for segment assets is company-wide assets that are not allocated to the reportable segments.
4. Capital expenditures include an increase in right-of-use assets.
5. Capital expenditures do not include assets acquired through corporate acquisitions.

16

(3) Information related to geographic regions
Non-current assets and sales to external customers by geographic region in each fiscal year are as follows.
(i) Non-current assets(Million yen)
As of March 31, 2023
Japan
Asia
North & South America
EMEA
Total

As of March 31, 2024

175,610
20,33060,74921,679183,684
20,80669,36428,724

278,370

302,580(Note) Non-current assets are allocated based on the location of assets. Financial instruments or deferred tax assets are not included.
EMEA stands for Europe, the Middle East and Africa.
(ii) Net sales(Million yen)
Year ended March 31, 2023
Japan
Asia
North & South America
EMEA
Total

Year ended March 31, 2024

178,488
76,66959,931
29,517

198,367
85,927
63,57736,954

344,608

384,825(Note) Net sales were allocated to a country or areas based on the locations of customers. From the fiscal year under review, net sales
are allocated to a country or areas based on the locations of the Company or its consolidated subsidiaries. Net sales for the year
ended March 31, 2023, have been recalculated based on the locations of the Company or its consolidated subsidiaries.
EMEA stands for Europe, the Middle East and Africa.
(4) Information related to major customers
Because there is no single external customer that accounts for 10% or more of the net sales in the consolidated statement of income,no information is stated here.

(Bonds and borrowings)(1) Bonds
Fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023)
The bonds issued are described below.
Name

Issue

Issue date

Total amountissued(million yen)Interest rate(%)

Redemption period

The Company

Second series of
unsecured bonds

May 26, 2022

10,0000.29

May 26, 2027

No bonds were redeemed.
Fiscal year ended March 31, 2024 (April 1, 2023 - March 31, 2024)
No bonds were issued or redeemed.
(2) Borrowings
Fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023)
The Group borrowed a total of 10,000 million yen (the final repayment date is December 29, 2027, equal payments) in the third
quarter of the fiscal year.
Fiscal year ended March 31, 2024 (April 1, 2023 - March 31, 2024)
The Group borrowed a total of 12,000 million yen (the final repayment dates are December 8, 2028 and December 22, 2028, lumpsum repayments) in the third quarter of the fiscal year.

17

(Per Share Information)
The basis for calculation of basic earnings per share is as shown below.
(Million yen)
Year ended March 31, 2023
Profit attributable to owners of parent
Amount not attributed to common stockholders
Profit that is used for calculating basic earnings per share
Average number of common shares outstanding

Year ended March 31, 2024

20,13429,189‒‒20,13429,189112,394,378

112,396,307(Notes) 1. Because there are no dilutive shares, diluted earnings per share are not stated.
2. The Company’s own shares posted as treasury shares remaining in trust are included in the treasury shares that are deductedin the calculation of the average number of shares outstanding for calculation for basic earnings per share. (244,000 sharesin the fiscal year ended March 31, 2023, 254,000 shares in the fiscal year ended March 31, 2024)(Consolidated Statement of Profit or Loss)
Fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023)(Other expenses)
A goodwill impairment loss of 7,646 million yen was posted in the Water Treatment Chemicals business of Kurita America, Inc. inother expenses in the fourth quarter of the fiscal year. The impairment loss is calculated by comparing the value in use and theaccounting book value. The value in use is calculated by discounting expected future cash flows using an appropriate discount rate.
The discount rate was raised to 10.8% (9.5% a year ago), chiefly reflecting policy interest rate hikes in the United States. The businessplan, the basis of an estimate of future cash flows, was carefully estimated and revised downward, considering changes in the water
treatment chemicals market in the United States following the outbreak of COVID-19 and results during the fiscal year, which wereaffected by disruptions to logistics and rising prices, as well as results in previous fiscal years. As a result, the value in use was lessthan the accounting book value, and an impairment loss is recognized.
(Finance income)In the first quarter of the fiscal year under review, a gain on derivatives transactions of 1,090 million yen was recorded in financeincome. This was income from a foreign exchange contract that the Company entered into after deciding to underwrite a capitalincrease in Kurita America Holdings Inc.
Fiscal year ended March 31, 2024 (April 1, 2023 - March 31, 2024)
Information is omitted because there were no important events.

18

(Significant Subsequent Events)(Transaction under common control)(KURITA HANSU Water Industries Ltd.)On April 1, 2024, Hansu Co., Ltd., which primarily engages in the manufacture and sale of water treatment chemicals in South Korea,
was absorbed into Hansu Technical Service Ltd., which primarily engages in the manufacture and sale of water treatment facilities
and maintenance services in South Korea. Following the merger, Hansu Technical Services Ltd. was renamed KURITA HANSU
Water Industries Ltd.
(1) Outline of the transaction(i) Company names and businesses at the time of integrationi) Surviving company
Name: Hansu Technical Service Ltd.
Business description: Manufacturing and sales of water treatment facilities, maintenance servicesii) Merged companies
Name: Hansu Co., Ltd.
Business description: Manufacture and sale of water treatment chemicals(ii) Date of business combination
April 1, 2024(iii) Legal form of business combination
An absorption-type merger in which Hansu Technical Service Ltd. is the surviving company. Hansu Co., Ltd. has been dissolved.
(iv) Name of the company after business combination
KURITA HANSU Water Industries Ltd.
(v) Main reason of integration
In its medium-term management plan, Pioneering Shared Value 2027 (PSV-27), the Group has determined priority measures
including the upgrade of service businesses such as ultra-pure water supply to the electronics industry which requires advanced
water treatment technologies, and the expansion of the CSV business, which seeks to create shared value with society throughbusiness targeting diverse industries.
The announced merger will integrate the technologies that the two companies have long cultivate and their abundance ofknowledge accumulated at points of contact with sites. It will thus reinforce the foundation for quickly providing solutions forthe diverse needs and issues of customers in South Korea. In particular, the Group will increase its ability to propose and provide
services, etc., for the electronics industry and accelerate the creation and provision of solutions that will create shared value
together with society in the CSV business for a wide variety of industries and in other businesses.
(2) Outline of accounting
The business combination under common control is a business combination in which all companies or businesses involved areultimately 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 under common control based on book value.

19

(Kurita East Japan Co., Ltd. and Kurita West Japan Co., Ltd.)On April 1, 2024, the Company reorganized eleven domestic sales companies etc. which primarily sell water treatment chemicals
and provide maintenance services for water treatment facilities in Japan. Two of the 11 domestic sales companies Kurita Kanto Ltd.
and Kurita Kansai Ltd. will implement absorption-type mergers in which they are the surviving companies and the other ninecompanies are dissolved. Following the mergers, Kurita Kanto Ltd. and Kurita Kansai Ltd. were renamed Kurita East Japan Co.,
Ltd. and Kurita West Japan Co., Ltd., respectively.
(1) Outline of the transaction(i) Companies involved in mergers, their businesses, their names after mergers
Surviving company
Kurita Kanto Ltd.

Kurita Kansai Ltd.

Merged companies

Kurita BMS Co., Ltd.
Kurita Hokkaido Ltd.
Kurita Kitakantou Co., Ltd.
Kurita Buil-Tech Co., Ltd.

Kurita Tokai Ltd.
Kurita Hokuriku Ltd.
Kurita Meiki Ltd.
Kurita Sanyo Ltd.
Kurita Kyushu Ltd.

Business description

Sale of water treatment chemicals andmaintenance services for facilities

Sale of water treatment chemicals andmaintenance services for facilities

Name of the company after businesscombination

Kurita East Japan Co., Ltd.

Kurita West Japan Co., Ltd.

(ii) Date of business combination
April 1, 2024(iii) Legal form of business combination
Absorption-type mergers in which Kurita Kanto Ltd. and Kurita Kansai Ltd. are surviving companies. Kurita BMS Co., Ltd.,
Kurita Hokkaido Ltd., Kurita Kitakantou Co., Ltd., Kurita Buil-Tech Co., Ltd., Kurita Tokai Ltd., Kurita Hokuriku Ltd., Kurita
Meiki Ltd., Kurita Sanyo Ltd., and Kurita Kyushu Ltd. have been dissolved.
(iv) Main reason of integration
Under the medium-term management plan, Pioneering Shared Value 2027 (PSV-27), the Group aims to strengthen the creationof shared value with society through business targeting diverse industries, and global expansion of CSV business is positioned
as a priority measure. This reorganization is intended to speed up implementation of this measure and aims to achieve further
expansion of CSV business in Japan’s general water treatment market by seeking to strengthen contact points with customer sites
through the provision of water treatment chemicals and maintenance services on a one-stop basis and by breaking downboundaries between domestic sales companies and building a framework for quickly and efficiently sharing successful models.
Partnering closely with its customers to solve their business challenges, the Group contributes to saving water, reducing GHG
emissions, recycling waste and reducing resource inputs and aims to realize a sustainable society through the creation andprovision of solutions including CSV business.
(2) Outline of accounting
The business combination under common control is a business combination in which all companies or businesses involved areultimately 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 under common control based on book value.
Disclaimer- This document is an English translation of the Earnings Report for the Fiscal Year Ended March 31, 2024 as reference information
primarily for overseas investors. If there are any discrepancies between the Japanese version and the English version, the Japaneseversion 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 a commitment by the Company.
Actual performance, etc. may differ due to a variety of factors. See “Outlook for Overall Business, Including Production, Sales, andProfits and Losses” on page 4 of this document for the conditions assumed in the performance forecasts and the precautions concerning
the use of performance forecasts.

20