FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Fiscal Year ended
March 31, 2012
Tokyo, Japan, March 31, 2012—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 193,792 million yen and net income of 16,548 million yen,or 130.65 yen per share, for the year ended March 31, 2012 (April 1, 2011 – March 31,2012).
Results of Operations
Total consolidated orders for the Kurita Group in the fiscal year ended March 31, 2012,were up 8.4% versus the previous fiscal year to 197,256 million yen, and net sales rose
6.9% to 193,792 million yen. Operating income was 29,382 million yen, up 8.3% versus
the previous fiscal year, and ordinary income was 30,369 million yen, up 7.9%. Net
income amounted to 16,548 million yen, down 3.4%.
At the start of the fiscal year ended March 31, 2012, production activity in Japan was
significantly depressed as a result of the Great East Japan Earthquake which struck in
March 2011. Although the economy has been recovering along with the restoration of
supply chains, the recovery pace has slackened as a result of the flooding in Thailand
and the appreciation of the yen. Overseas, economic expansion is continuing, primarily
in China and other Asian nations, but the pace of growth has declined, and the impact of
the European debt crisis triggered by Greece’s fiscal problems have led to a heightened
sense of uncertainty over the economy.
Markets in which the Kurita Group operates remained challenging during the fiscal year
ended March 31, 2012. In Japan, although there were some bright signs in conjunction
with the recovery in corporate production due to restoration efforts following theearthquake, the appreciation of the yen together with unstable electricity supply
following the shutting down of nuclear power plants has caused companies toconsolidate production sites or relocate them overseas, and key electronics industry
customers are struggling with a rapid downturn in earnings. Overseas, markets have
expanded, as there has been an increase in capital investment in the electronics industry
in East Asia in conjunction with the spread of smart phones and tablet PCs.
Amid this environment, the Kurita Group focused on helping the restoration efforts ofcustomers affected by the Great East Japan Earthquake, and worked to help customers
conserve energy, improve productivity, and resolve other issues they face. Overseas, theCompany has been working with overseas Group companies to expand sales of water
treatment facilities and new products, as well as core chemicals to customers in theelectronics industry. The Kurita Group expanded business globally, including bolstering
the production and sales frameworks in China and building a new water treatment
chemicals plant in Brazil.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 56,748 million
yen, up 0. 1% versus the fiscal year ended March 31, 2011, while sales fell 0.5% to56,443 million yen. Operating income fell 8.2% to 9,268 million yen
1

In Japan, orders for and sales of products including boiler water treatment chemicals,cooling water treatment chemicals, and process treatment chemicals for the paper andpulp and oil refining and petrochemical industries declined versus the previous fiscal
year, due to production stoppages caused by the earthquake disaster. Meanwhile, there
was an increase in injection systems and other equipment caused by the restoration
efforts following the earthquake, while orders for and sales chemicals for the steel
industry also increased. Overseas, orders and sales of cooling water treatment chemicals
and other core products increased as a result of growing manufacturing activity,
especially in China, Brazil and other emerging economies.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 140,507 million
yen, up 12.2% versus the previous fiscal year, sales rose 10.3% to 137,348 million yen,
and while operating income increased 18.2% to 20,127 million yen.
In the electronics industry, orders and sales in the ultrapure water supply businessdeclined slightly due to the impact of the drop in capacity utilization at customer plants.
Meanwhile, maintenance services orders and sales increased, primarily for facility
modifications, while there was a large increase in orders from overseas semiconductorand LCD panel manufacturers for ultrapure water production systems and electrolyzed
sulfuric acid generators for the manufacturing process of semiconductors.
In general industries, orders and sales increased significantly as demand for water
treatment facilities from the domestic electric power industry surged during recovery
efforts following the earthquake. Demand for maintenance services, mainly in relation
to facility modification in industries such as electric power and food, also increased.
Material Events during the Fiscal Year Ended March 31, 2012
At its board of directors meeting held on January 31, 2012, Kurita Water Industries Ltd.
resolved to relocate its headquarters from Shinjuku­ku, Tokyo, to Nakano­ku, Tokyo, on
October 1, 2012. This relocation will have minimal impact on earnings for the fiscal
year ending March 31, 2013
Outlook for the Fiscal Year Ending March 31, 2013
The Group forecasts 200,000 million yen in net sales (up 3.2% year­on­year), 29,500
million yen in operating income (up 0.4%), 30,000 million yen in ordinary income(down 1.2%), and 17,500 million yen in net income (up 5.8%) for the full fiscal year
ending March 31, 2013.
There are concerns about a global economic slowdown due to the prolonged European
debt crisis, and we expect the economic recovery in Japan, the US, and advanced
European countries to take some more time to materialize. On the other hand, despite aslight drop in the pace of growth, we expect emerging economies such as China andcountries in Southeast Asia continue to experience strong economic growth. Also, in
conjunction with the rising global population and economic growth in emerging
countries, we expect demand related to environmental impact mitigation to continue toincrease. Meanwhile, we expect Japanese companies to continue to consolidate or
relocate production sites overseas in response to high raw materials prices, unstableelectric power supply, and the strength of the yen, while intensifying price competition,
contracting markets and other factors will keep the situation challenging for the Kurita
Group.
2

Amid this environment, the Kurita Group established a new medium­term management
plan Take Action 14, TA­14 with a target year of fiscal 2014. Overseas, the Kurita
Group will steadfastly meet the increased demand for environmental impact mitigation,and harness the integrated strengths of the Kurita Group to expand its scale of businessand to achieve profits on a continuous basis. In the domestic market, the entire Groupwill provide products, technologies and services that help customers resolve the issues
they face, and thereby boost its market share and enhance its earnings base.
Outlook by Segment
Water Treatment Chemicals
Although the Kurita Group expects demand overseas to increase firmly, primarily in
China, there is concern about a market contraction and a decline in prices resulting frommoves by customers in Japan to consolidate or relocate production sites overseas. In
addition to enhancing initiatives to promote sales and marketing in key overseas regions
and markets, the Group will continue to focus on consultative sales to help customers inJapan resolve issues they face.
Water Treatment Facilities
Overseas, the Kurita Group expects capital investment in the electronics industry toincrease in China, South Korea, and other parts of East Asia, while the Group
anticipates capital investment in general industries to increase in Southeast Asia. Group
teamwork will be enhanced in an effort to win large orders in East Asia. In Japan, an
integrated sales framework featuring both facilities (hardware) and maintenance service
will be used for consultative sales which accurately capture the needs of our customers.

Financial Condition
Assets, liabilities and net assets
Current assets totaled 144,985 million yen at the end of the fiscal year (March 31,2012), an increase of 27,133 million yen from the end of the previous fiscal year
(March 31, 2011).
The increase was mainly due to increases of 12,054 million yen in trade accounts
receivable and 20,500 million yen in marketable securities, partially offset by a 6,171
million yen decrease in cash and deposits. The increase in trade accounts receivablereflects increased sales of water treatment facilities in the second half of the fiscal year
(particularly in the fourth quarter), while the increase in marketable securities and thedecrease in cash and deposits are both due to increased investment in negotiablecertificates of deposits, which are treated as marketable securities.
Noncurrent assets totaled 126,156 million yen at the end of the fiscal year, a decline of
9,290 million yen from the end of the previous fiscal year. The decline was mainly due
to a 8,240 million yen decrease in property, plant and equipment owing to depreciation
on past years’ investments in ultrapure water supply business facilities exceeding
current­year capital expenditures.
Current liabilities totaled 42,358 million yen at the end of the fiscal year, an increase of
7,587 million yen from the end of the previous fiscal year. The change was mainly due
to increases of 4,562 million yen in trade accounts payable, 1,452 million yen in otheraccounts payable, and 1,419 million yen in income taxes payable. The increases in tradeand other accounts payable were due to increases in expenses and amount of goods
3

purchased in line with the earlier noted increase in sales of water treatment facilities.
The increase in income taxes payable was due to a rise in income before income taxes
and minority interests.
Noncurrent liabilities totaled 18,781 million yen at the end of the fiscal year, amoderate decrease of 394 million yen from the end of the previous fiscal year.
Net assets totaled 210,002 million yen at the end of the fiscal year, an increase of
10,651 million yen from the end of the previous fiscal year. This mainly reflects anincrease in retained earnings from the posting of 16,548 million yen net income for the
fiscal year outweighing the payout of 4,939 million yen in dividends for the fiscal year
and a 736 million yen decline in total other comprehensive income due to a decrease inunrealized gains on available­for­sale securities owing to a drop in the market prices ofinvestment securities.
Cash Flows
Consolidated net cash and cash equivalents at the end of the fiscal year (March 31,2012) totaled 19,825 million yen, an increase of 8,991 million yen from the end of theprevious fiscal year (March 31, 2011). The various cash flows and related factors are
outlined below.
Cash Flows from Operating Activities
Net cash provided by operating activities during the fiscal year ended March 31, 2012,
totaled 28,282 million yen, a decrease of 1,514 million yen from the previous fiscal
year. Inflows from income before income taxes and minority interests (29,676 millionyen), depreciation and amortization (16,035 million yen) and an increase in trade notes
and accounts payable (5,448 million yen) were partially offset by an increase in tradenotes and accounts receivable (13,545 million yen) and income taxes paid (11,346
million yen).
Cash Flows from Investing Activities
Net cash used in investing activities was 13,507 million yen, 16,662 million yen lessthan in the previous fiscal year. Inflows from withdrawals from time deposits (net oftime deposits) totaling 6,608 million yen were countered by outflows for investments inmarketable securities (net of sale and redemptions of the same) totaling 12,009 million
yen and for the acquisition of property, plant and equipment totaling 7,460 million yen
Capital expenditures during the year were mainly for the ultrapure water supply
business.
Cash Flows from Financing Activities
Net cash used in financing activities totaled 5,607 million yen, 3,425 million yen lessthan in the previous fiscal year. The main cash outflow from financing activities was
the 4,977 million yen in cash dividends paid.
Dividend Policy and Dividends for the Fiscal Year ended March 31, 2012, and the
Fiscal Year ending March 31, 2013
Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.
In consideration of the Group’s future business development plans and our desire to
reward shareholders for their support, we intend to pay a year­end dividend of 20 yen
per share for the fiscal year ended March 31, 2012, 1 yen more than the previous
4year­end dividend. Combined with the interim dividend of 20 yen per share (1 yen morethan the previous interim dividend), the annual dividend comes to 40 yen per share, 2
yen higher than the previous fiscal year’s annual dividend.
For the fiscal year ending March 31, 2013, Kurita Water Industries plans to pay aninterim dividend of 21 yen per share and a year­end dividend of 21 yen per share, for anannual dividend of 42 yen per share.
Business and Other Risks
The following are summaries of major foreseeable risks present in the businessenvironments in which the Kurita Group operates. Forward­looking statements herein
are based on judgments made by management as of March 31, 2012.
1) Economic and market conditions
The Group’s Water Treatment Chemicals and Water Treatment Facilities
businesses are affected by economic conditions in Japan and in other countries andregions where the Group operates. Demand in the Water Treatment Chemicals
business fluctuates in response to factory capacity utilization rates in such industries
as steel, petroleum refining and petrochemicals, and pulp and paper, which are thebusiness’ main sources of demand. Such demand fluctuations may affect theGroup’s operating results. Demand in the Water Treatment Facilities businessfluctuates in response to trends in capital expenditure in the electronics industry andother industries that are the business’ main sources of demand. Such demand
fluctuations may affect the Group’s operating results.
Intensification of competition with rivals in the Group’s business domains could
lead to declines in prices of products and services, which could lower the Group’s
profitability.
2) Materials and parts procurement
The Group procures raw materials and parts from outside the Group for the
manufacture of products and the fabrication of facilities. The prices of raw materials
and parts fluctuate based on changes in market conditions, and such fluctuations
may affect the Group’s operating results.
3) Overseas business development
The Group is striving to expand its business outside Japan. In contrast to theJapanese market, doing business in overseas markets involves a number of inherent,
unforeseen risks, including the risk of changes to local laws and regulations, the riskof political and economic instability, and the risk of foreign exchange rate
fluctuations. If such risks materialized, the Group’s operating results could be
affected.
4) New product development
The Group continuously endeavors to develop new technology and competitive
new products. The success of new technology and product development efforts
cannot be guaranteed. The Group may not be able to offer new technologies andproducts that meet the needs of its customers or launch new products in a timely
fashion. The Group may also fail to keep pace with rapid changes in technologicalinnovation and changing customer needs. If the Group were to fail to develop
competitive new products, this could hamper its future growth and profitability orotherwise affect its operating results.
5) Intellectual property
The Group recognizes the importance of intellectual property and continuallyseeks to register its own intellectual property while avoiding infringement of theintellectual property rights of third parties, both in Japan and overseas. Given thewide scope of the Group’s business, however, there is potential for the Group’s
intellectual property rights to be infringed and potential for the Group to infringe
5

upon the rights held by third parties. Such occurrences may affect the Group’s
operating results.
6) Dependence on information systems
The Group’s use of information systems is increasing, as is the importance of
information systems to the Group’s business. If a computer virus or some otherfactor were to obstruct the functions of the Group’s information systems, theGroup’s business activities, operating results, and financial condition could be
negatively affected.
7) Large­scale natural disasters
If an earthquake, typhoon, or other kind of natural disaster were to directly or
indirectly upset the Group’s business execution, the Group’s business activities,
operating results, and financial condition could be negatively affected.

Management Policy(1) Basic management policy
The Kurita Group operates under corporate philosophy, “Study the properties ofwater, master them, and we will create an environment in which nature and man are
in harmony.” In line with this philosophy, the Group conducts business with the goalof becoming an advanced water and environmental management company.
The Group also seeks to enhance management transparency by making
appropriate and timely information disclosures to shareholders, investors, and otherstakeholders.
(2) Medium­ to long­term management strategy
The fiscal year ending March, 2013 is the initial year of our Take Action TA­14
three­year management plan based on the theme of “Execution and Evolution”. The
basic objectives of the plan are to demonstrate the Group’s comprehensive strengths
to secure the trust of customers in Japan and other countries. Under the plan, theGroup will endeavor to expand overseas business while also raising its domestic
market shares.
The plan’s targets for the fiscal year ending March, 2015 are as follows:
Consolidated
Orders¥240 billion
Net Sales¥235 billion
Operat ing inco me¥36.0 billion
Ord inar y inco me¥36.5 billion
Net income¥22.0 billion(3) Issues to be addressed
Under the recently concluded MP­11 medium­term management plan that started in
the fiscal year ending March, 2010, the Kurita Group endeavored to expand service
businesses that provide solutions for key issues facing customers and to broaden our
global business in China and other emerging areas. Although we achieved a measure of
success, including expanding orders for water treatment facilities from electronics
manufacturers in the Asian region and building our water treatment chemicals businessthroughout the region, overall Group business scale has rebounded only to the levelattained before Lehman Brothers collapsed.
Amid greatly changing markets in Japan and overseas, the Kurita Group will strive
to realize sustained profit growth by evolving into a corporate group capable ofcompeting on a global scale and by establishing solid business and profit bases in new
6growth areas such as water, energy, food and environmental impact mitigation. Under
the new TA­14 medium­term plan that starts from the fiscal year ending March 31,
2013, the Kurita Group will draw upon its comprehensive strengths to implement the
key measures outlined below.
1) Strengthening of our business foundations and ability to pursue new business in
key overseas markets.
The Group will work together to realize the growth of maintenance services andthe Water Treatment Chemicals business following from the expanding scale of
its Water Treatment Facilities business. Toward that end, we will strengthen
local staffing and management structures in each region and enhance ourmarketing, product and technical capabilities.
2) Timely provision of the products, technologies and services that help customers
resolve their key challenges.
In the fiscal year ended March, 2012, we succeeded in developing an ultrapure
water production system for use in the most advanced semiconductor
manufacturing processes, biological water treatment technology for sludge
reduction, and water treatment chemicals for reverse osmosis membranes.
Going forward, we will strive to continue providing the products, technologies,
and services that provide solutions to customer needs to reduce energy
consumption, improve productivity, and reduce their environmental footprint.
3) The speedy creation of new products and services based on further enhancementof technological capabilities that are fundamental for water, energy, and foods.
While further refining our “water” technologies, we will endeavor to develop
new products and technologies that provide solutions to customer challenges in
productivity improvement, environmental impact mitigation and energy
generation. We will also pursue R&D of new water functions that will lead to thecreation of new businesses.

7

Financial Statements — Consolidated
Balance Sheet — Consolidated(millions of yen)

As ofMarch 31, 2011
AmountAssetsCurrent assets
Cash and deposits
Notes receivable ­ trade
Accounts receivable ­ tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)Land
Leased assets
Accumulated depreciation
Leased assets (net)
Construction in progress
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable ­ trade
Accounts payable ­ trade
Accounts payable ­ other / Accrued expenses
Income taxes payable
Accrued employees’ bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Lease obligations

As ofMarch 31, 2012
Amount35,073
5,983
47,25720,000
1,303
2,643
1,533
2,312
1,785
(40)
117,852

28,902
7,045
59,31140,500
1,598
2,715
1,209
2,294
1,466
(58)
144,985

64,296(32,043)
32,252
86,962(38,045)
48,917
14,072
7,668
(987)
6,680
3,001
11,158(9,474)
1,683
106,608

65,368(36,277)
29,09092,180(47,298)
44,882
13,962
7,808(1,434)
6,374
2,362
11,237(9,541)
1,696
98,368

1,388
551
1,939

1,233
450
1,683

17,057
8,306
1,717
(184)
26,897
135,446
253,298

16,161
8,035
2,246
(339)
26,103
126,156
271,141

1,402
15,058
4,785
5,626
2,336
927
4,634
34,771

1,701
19,620
6,237
7,045
2,427
1,007
4,317
42,358

6,535

6,191

8

Deferred tax liabilities related to revaluation
Accrued employees’ retirement benefits
Accrued retirement benefits for directors and corporate
auditors
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 available­for­sale 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

1,509
9,936

1,303
10,335

440

168

754
19,17553,946782
18,781
61,13913,45011,426
184,954(9,640)200,191

13,45011,426
196,541(9,642)
211,776623(764)(2,006)(2,148)
1,308
199,351
253,298252(564)(2,572)(2,884)
1,110
210,002271,1419

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors' and corporate auditors' compensations,salaries and allowances
Provision for bonuses
Retirement benefit expenses
Traveling and transportation expenses
Research and development expenses
Other
Total Selling, general and administrative expenses
Operating incomeNon­operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non­operating incomeNon­operating expenses
Interest expense
Loss on disposal of noncurrent assets
Other
Total non­operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary losses
Impairment losses
Valuation loss on investment securities
Disaster losses and disaster recovery expenses
Loss on liquidation of affiliated companies
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Current
Deferred
Total income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

Year ended
March 31, 2011
Amount181,234
118,573
62,660Year ended
March 31, 2012
Amount
193,792
127,905
65,886

13,986

14,394

1,356
1,033
2,468
4,225
12,45835,52827,131

1,378
987
2,633
4,232
12,87736,50329,382

116
308

141
354

308

328

570
1,303

394
1,219

34
28
214
276
28,158

88
27
116
232
30,369

­
­

139
139

­
­
240
73
314
27,844

173
608
49
－
831
29,676

11,653(1,069)10,583
17,26012,750292
13,042
16,634121

86

17,13816,54810

Statement of Comprehensive Income(millions of yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available­for­sale securities
Unrealized gains (losses) on revaluation of land
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
the parent company
Comprehensive income attributable to minority
interests

Year ended
March 31, 2011
Amount17,260Year ended
March 31, 2012
Amount16,634(1,364)
­
(639)

(370)
184
(564)

(46)

(35)

(2,050)15,209(785)
15,84815,13915,79670

52

11

Statement of Changes in Shareholders’ Equity — Consolidated(millions of yen)

Shareholders’ equity
Common stock
Balance as of beginning of the fiscal year
Change during period
Total change during period
Balance as of end of the fiscal year
Capital surplus
Balance as of beginning of the fiscal year
Change during period
Total change during period
Balance as of end of the fiscal year
Retained earnings
Balance as of beginning of the fiscal year
Change during period
Dividend from surplus
Other
Net income
Reversal of unrealized gains (losses) onrevaluation of land
Total change during period
Balance as of end of the fiscal year
Treasury stock
Balance as of beginning of the fiscal year
Change during period
Purchase of treasury stock
Total change during period
Balance as of end of the fiscal year
Total shareholders’ equity
Balance as of beginning of the fiscal year
Change during period
Dividend from surplus
Other
Net income
Purchase of treasury stockReversal of unrealized gains (losses) onrevaluation of land
Total change during period
Balance as of end of the fiscal year

Year ended
March 31, 2011
AmountYear ended
March 31, 2012

13,45013,450­13,450­13,45011,426

11,426­
11,426­
11,426

172,717

184,954(4,888)(12)
17,138(4,939)(5)
16,548­(15)

12,236
184,954

11,587
196,541(4,855)(9,640)(4,784)(4,784)(9,640)(2)(2)(9,642)

192,738

200,191(4,888)(12)
17,138(4,784)(4,939)(5)
16,548
(2)

­

(15)

7,452
200,191

11,585
211,77612

Accumulated other comprehensive income
Unrealized gains (losses) on available­for­sale
securities
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Unrealized gains (losses) on revaluation of land
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Foreign currency translation adjustments
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Total accumulated other comprehensive income
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Minority interests
Balance as of beginning of the fiscal year
Change during period
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year
Total net assets
Balance as of beginning of the fiscal year
Change during period
Dividend from surplus
Other
Net income
Purchase of treasury stockReversal of unrealized gains (losses) onrevaluation of land
Net change in items other than shareholders’equity during period
Total change during period
Balance as of end of the fiscal year

1,989
(1,366)623(370)(1,366)
623

(370)
252

(764)

(764)

­

199

­
(764)

199
(564)

(1,374)(2,006)

(632)

(565)

(632)
(2,006)(565)(2,572)(149)(2,148)(1,998)(736)(1,998)(2,148)(736)(2,884)

1,350

1,308

(42)

(198)

(42)
1,308

(198)
1,110

193,939

199,351(4,888)(12)
17,138(4,784)(4,939)(5)
16,548
(2)

­

(15)

(2,040)

(934)

5,411
199,351

10,650210,002

13

Statement of Cash Flows — Consolidated(millions of yen)

Year ended
March 31, 2011
AmountYear ended
March 31, 2012
Amount27,844
16,066

29,676
16,035

(308)

(328)

455

415

225
(424)
34
(341)
314

85
(495)
88
(211)
51

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Equity in (earnings) losses of unconsolidated subsidiaries andaffiliates
Increase (decrease) in allowance for employees’ retirement
benefits
Increase (decrease) in other allowancesInterest and dividend income
Interest expense
Other non­operating (income) losses
Other extraordinary (income) losses(Gains) losses on sale/disposal of property, plant andequipment
Impairment loss
Valuation (gain) loss on investment securities(Increase) decrease in notes and accounts receivable ­ trade(Increase) decrease in inventories(Increase) decrease in other current assets
Increase (decrease) in notes and accounts payable ­ trade
Increase (decrease) in other current liabilities
Other
Sub totalInterest and dividend received
Other proceeds
Interest paid
Other payments
Income taxes paid
Net cash provided by (used in) operating activities

18

(108)

­
7
2,098
(461)
(350)
(573)
(2,315)200
42,490
703
490
(33)
(482)
(13,371)
29,796

173
608(13,545)
(135)
285
5,448
847
12
38,907
693
281
(89)
(163)
(11,346)
28,282

Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sale and redemption of investment securities
Other payments
Other proceeds
Net cash provided by (used in) investing activities(39,723)
15,735(65,000)
69,000(6,014)30(3,810)
50
(734)
295
(30,169)(38,988)
45,596(69,000)
57,000(7,460)262(10)
1(1,184)276(13,507)

1,183
­
(480)

(166)
46
(507)

Cash flows from financing activities
Net increase (decrease) in short­term borrowings
Proceeds from long­term loans payable
Repayment of finance lease obligations

14

Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at the end of the period(4,784)(4,886)(64)(9,032)(2)(4,936)(41)(5,607)

(397)

(176)

(9,802)
20,5908,991
10,83446­

10,834

19,82515

Segment Information
1. Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial
information is available. These segments are subject to periodic examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Company’s business divisions are based on product and service categories. Each of the divisions
conduct business based on comprehensive strategies formulated for the products and services that theyhandle in Japan and overseas. The Company’s consolidated subsidiaries conduct business under thesupervision of the relevant business divisions.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment
Chemicals segment and the Water Treatment Facilities segment, based on the products and services
handled by each of the divisions.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals andequipment and provides maintenance services. The Water Treatment Facilities segment manufacturers
and sells water treatment equipment and facilities, provides ultrapure water, chemical cleaning, toolcleaning, soil and groundwater remediation services, and provides maintenance services thatencompass operation, maintenance, and management of water treatment facilities.
2. Method for calculating sales, income and loss, assets and liabilities, and other amounts by reportablesegment
Accounting methods applied in reportable segments are consistent with the methods applied in
preparation of consolidated financial statements. Segment income represents operating income.
Inter­segment sales and transfers between consolidated­group companies reflect values based on market
prices. Inter­segment sales and transfers between the Company’s divisions are based primarily on bookvalues.
3. Sales, income and loss, assets and liabilities, and other amounts by reportable segment
Year ended March 31, 2011 (April 1, 2010 ­ March 31, 2011)(millions of yen)

Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Total

Adjustments(see note)

Amounts reported on
the statements ofincomeSales(1) Sales to outside customers(2) Inter­segment sales and transfers
Total
Segment income

56,735349
57,084
10,099124,499180
124,680
17,032

181,234
530
181,764
27,131

­
(530)
(530)
0

181,234­
181,234
27,131

Segment assets
Segment liabilities

36,444
16,919158,414
37,155

194,859
54,07558,439(128)

253,298
53,946

1,539

14,527

16,066­

16,066

1,183

4,781

5,965

­

5,965

Other amounts
Depreciation
Change in property, plant andequipment and intangible fixed
assetsYear ended March 31, 2012 (April 1, 2011 ­ March 31, 2012)(millions of yen)

Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Total
Sales
(1) Sales to outside customers(2) Inter­segment sales and transfers
Total
Segment income

56,443372
56,816
9,268

137,348
246
137,595
20,127

193,792
619
194,41129,396

Adjustments(see note)
­
(619)
(619)
(13)

Amounts reported on
the statements ofincome193,792­
193,792
29,382

16

Segment assets
36,580161,750
198,330
72,811
271,141
Segment liabilities
17,99943,252
61,252(113)
61,139Other amounts
Depreciation
1,485
14,55016,035­16,035
Impairment loss
­
­
­
173
173
Change in property, plant andequipment and intangible fixed
1,463
6,641
8,105
­
8,105
assetsNote: “Adjustments” represents the following:
1. Sales: Elimination of inter­segment transactions.
2. Segment income: Amount resulting from eliminations of inter­segment transactions.
3. Segment assets: Consisting mainly of corporate assets (cash deposits, securities in trust, andlong­term investments) unallocated to reportable segments. Corporate assets totaled 58,572 million
yen at March 31, 2011 and 72,932 million yen at March 31, 2012.
4. Segment liabilities: Amount resulting from eliminations of inter­segment claims and liabilities.
5. Impairment loss on idle assets was recognized in the fiscal year ended March 31, 2012. This had
no effect on the reportable segments.

Related information
Year ended March 31, 2011 (April 1, 2010 ­ March 31, 2011)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(millions of yen)
North
Japan
America
Asia
EuropeOther
Total
19,195
2,820
1,276
3,075
181,234
154,867
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer
Name of customer
Sharp Corporation

Sales
28,149(millions of yen)
Name of transacting segment
Water Treatment Facilities

Year ended March 31, 2012 (April 1, 2011 ­ March 31, 2012)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(millions of yen)
Japan

Asia

North
America

Europe

Other

Total

17

22,541
2,310
1,373
3,044
193,792
164,523
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer
Name of customer
Sharp Corporation(millions of yen)
Name of transacting segment
Water Treatment Facilities

Sales
28,792

Information on impairment of reportable segments’ fixed assets
Year ended March 31, 2011 (April 1, 2010 ­ March 31, 2011)
Not applicableYear ended March 31, 2012 (April 1, 2011 ­ March 31, 2012)
The Company has omitted disclosure here because equivalent information appears in the segment
information.
Goodwill amortization and unamortized balance of goodwill by segment
Year ended March 31, 2011 (April 1, 2010 ­ March 31, 2011)(millions of yen)
Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Total

Eliminationor corporate

Total

59

­

59

­

59

44

­

44

­

44

Year ended March 31, 2012 (April 1, 2011 ­ March 31, 2012)(millions of yen)
Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Total

Eliminationor corporate

Total

31

­

31

­

31

13

­

13

­

13

Information on negative goodwill
Year ended March 31, 2011 (April 1, 2010 ­ March 31, 2011)
Not applicableYear ended March 31, 2012 (April 1, 2011 ­ March 31, 2012)
The Company has omitted disclosure here because there was no significant negative goodwill.

18Per share information
Net assets per share
Net income per share

Year ended March 31, 2011
1,563.57 yen
134.02 yen

Year ended March 31, 2012
1,649.24 yen
130.65 yen

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

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

As ofMarch 31, 2011
199,351
1,308(1,308)198,042

As ofMarch 31, 2012
210,002
1,110(1,110)208,891

126,660,512

126,659,417

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

Net income (millions of yen)Amount not attributed to common stockholders
Net income attributed to common stock
Average number of shares outstanding (shares)

Year ended
March 31, 201117,138­17,138
127,874,054

Year ended
March 31, 2012
16,548­16,548
126,659,779

Significant Subsequent Events
Not applicable19Supplementary Information ­ Consolidated(1) Net Sales(millions of yen)

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

2011
Amount56,735
124,499

%
31.3
68.7

2012
Amount
56,443
137,348

Total

181,234

100.0

193,792

%
29.1
70.9
100.0

(2) Order Intake and Backlog(millions of yen)

Year ended March 31,
2011
Business segment
Water Treatment
Chemicals
Water Treatment
Order Intake
Facilities
Total
Water Treatment
Chemicals
Order Backlog Water Treatment
Facilities
Total

Amount2012%

Amount

%56,71431.2

56,74828.8

125,23768.8

140,50771.2

181,951

100.0

197,256

100

3,627

7.0

3,931

7.1

48,23593.0

51,39492.9

51,862100.0

55,326100.0(3) Production Results(millions of yen)

Year ended March 31,
Business segment
Water Treatment Chemicals

2011
Amount56,873

Water Treatment Facilities

123,959
Total
180,832
Note: The amounts were based on sales amounts.

%
31.5

2012
Amount56,454

%
29.0

68.5
100.0

137,934
194,389

71.0
100.0

(4) Capital Expenditures (Property, Plant and Equipment)(millions of yen)

Year ended March 31,
Business segment
Water Treatment Chemicals

2011
Amount
977

%
17.9

2012
Amount
1,311

%
17.0

Water Treatment Facilities

4,492

82.1

6,409

83.0

Total

5,469

100.0

7,721

100.0

(5) Depreciation (Property, Plant and Equipment)(millions of yen)

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

2011
Amount1,203
14,172
15,375

7.8
92.2

2012
Amount1,186
14,223100.0

15,410

%

%
7.7
92.3
100.0

20