FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Nine Months Ended December31, 2014
Tokyo, Japan, January 30, 2015—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 133,180 million yen and net income of 7,711 million yen,or 64.72 yen per share, for the nine months ended December 31, 2014 (April 1, 2014 –December 31, 2014).
Results of Operations
Total consolidated orders for the Kurita Group in the nine months ended December 31,
2014 rose 6.3% from the level of the same period of the previous fiscal year, to 137,002
million yen, and net sales increased 7.6%, to 133,180 million yen. Operating income
was 12,380 million yen, up 26.5% versus the same period of the previous fiscal year,and ordinary income was 12,696 million yen, up 18.9%. Net income amounted to 7,711
million yen, up 22.7%.
During the nine months under review, the Japanese economy saw a much tardier
recovery in production and capital expenditure in the manufacturing industry thaninitially expected, reflecting a spike in demand before the consumption tax hike and a
decline in reaction to it. The global economy overall recovered only moderately. TheU.S. economy expanded steadily, and the European economy picked up. Meanwhile,
China’s economic growth rate slowed moderately.
In this environment, the Kurita Group focused on tapping into demand throughproposals of solutions for customers in Japan and sought to gain new customers andcontrol costs thoroughly overseas.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 43,920 million
yen, down 0.4% versus the same period of the fiscal year ended March 31, 2014, whilesales rose 2.9% to 44,415 million yen. Operating income was down 2.3% to 5,953
million yen.
In Japan, although mainstay products—boiler water treatment chemicals and coolingwater treatment chemicals—saw decreased orders and sales from the same period of theprevious fiscal year due mainly to a decline in capacity utilization at customers’ plants,
wastewater treatment chemicals and process treatment chemicals for the pulp and paperindustries rose in orders and sales.
Overseas, orders and sales increased due to the addition of new customers especiallyin Southeast Asia and China. In the overall segment, orders fell, but sales rose. Income,however, declined, reflecting the worsening of the cost rate chiefly due to a decline insales of the main products in Japan, and an increase in selling, general andadministrative expenses to strengthen the overseas business structure.

1

Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 93,081 million yen,up 9.7% versus the same period of the previous fiscal year, sales rose 10.1%, to 88,765
million yen, and operating income climbed 73.9%, to 6,433 million yen.
In Japan, in the electronics industry, plant construction and expansion projects werelimited, and orders for water treatment facilities declined from a year ago. Meanwhile,orders for and sales of maintenance services rose, backed by strong demand forelectronic components and an improvement in customers’ earnings. Results in theultrapure water supply business remained roughly flat. In general industries, orders forand sales of water treatment facilities for electric power increased.
Overseas, orders and sales increased, chiefly reflecting large-scale projects in Chinaand Taiwan. Overall both orders and sales in the Water Treatment Facilities segmentrose. Income in the segment increased significantly due to increased sales and animprovement in the cost rate.
Financial Condition
Assets, liabilities and net assets
Current assets totaled 172,197 million yen at the end of the third quarter (December 31,2014), an increase of 9,697 million yen versus the end of the previous fiscal year
(March 31, 2014). This was mainly a result of increases of 11,943 million yen in cashand deposits, 1,393 million yen in notes receivable-trade, and 4,860 million yen in workin process, which overweighed declines of 1,873 million yen in accounts
receivable-trade and 8,000 million yen in marketable securities.
The increase in cash and deposits was the result of progress in collecting accounts
receivable-trade and digging into negotiable certificates, which are treated as
marketable securities, to raise capital for the acquisition in Europe, which is planned
towards the end of January. The increase in work in process was mainly the result ofprogress in the water treatment facilities business.
Noncurrent assets totaled 110,863 million yen at the end of the third quarter(December 31, 2014), a decline of 1,562 million yen versus the end of the previous
fiscal year. The decline was principally attributable to a 6,027 million yen decrease inproperty, plant and equipment, which was partly offset by a 4,439 million yen increase
in investments and other assets. The decline in property, plant and equipment was
mainly due to the depreciation of ultrapure water supply business facilities and otherfacilities exceeding capital expenditures. The increase in investments and other assets
primarily reflected a rise in unrealized gains on investment securities due to rises in themarket prices of the shares held by the Group.
Current liabilities totaled 38,653 million yen at the end of the period, an increase of
1,754 million yen versus the end of the previous fiscal year. The increase was chiefly
due to increases of 2,202 million yen in accounts payable-trade and 1,778 million yen in“Other” in current liabilities, which more than offset a decrease of 1,380 million yen inprovision.
Noncurrent liabilities totaled 19,922 million yen at the end of the period, an increaseof 1,050 million yen versus the end of the previous fiscal year. This was primarily
attributable to an increase in net defined benefit liability associated with a change in theAccounting Standard for Retirement Benefits.

2

Net assets totaled 224,484 million yen at the end of the period, an increase of 5,331
million yen versus the end of the previous fiscal year mainly due to a 1,378 million yen
increase in shareholders’ equity and an increase of 4,303 million yen in accumulated
other comprehensive income. Shareholders’ equity increased primarily due to anincrease of 1,826 million yen in retained earnings, which were partly offset by a fall of
446 million yen in capital surplus. The fall in capital surplus was attributable toadditional acquisitions of equity in consolidated subsidiaries. The increase in retainedearnings resulted from net income of 7,711 million yen exceeding year-end dividends
for the previous fiscal year and interim dividends for the fiscal year under review of a
total of 5,362 million yen and a reduction of 501 million yen at the beginning of thisfiscal year in association with the change in the Accounting Standard for Retirement
Benefits. Accumulated other comprehensive income rose 4,303 million yen, chiefly
reflecting an increase in unrealized gains on available-for-sale securities associated withan increase in unrealized gains from investment securities.
Outlook for the Fiscal Year Ending March 31, 2015
Considering the results in comparison with the initial earnings forecast, the Company has
revised its consolidated earnings forecast for the fiscal year ending March 31, 2015 asshown below. The Company has revised the earnings forecast based on information
currently available. Actual results may differ materially from it due to a variety of factors.
Net sales

Previous forecast (A)Revised forecast (B)Change (B – A)
Percentage change(For reference) Results inyear ended March 2014

Operatingincome

Ordinary
incomeNet income

Net income
per share

Million yen

Million yen

Million yen

Million yen

Yen

185,000
188,000
3,000
1.6

17,00018,0001,000
5.9

17,80017,800––11,00011,000
–
–

92.31
92.31
––

178,137

14,886

16,072

9,352

78.48Other Information
Additional information
Material business acquisition
On October 27, 2014, the Company entered into an agreement with BK Giulini GmbH(“BKG”) and its ultimate parent company, Israel Chemicals Limited, to acquire,through a subsidiary, the Water Solutions, Paper Solutions and Alumina Compounds
businesses (the “Business”) of BKG and its affiliates (the “Transaction”).
1. Name, address, and representative of the consolidated subsidiary(1) Name:
Kurita Europe APW GmbH
(2) Address:
Giulinistraße 2, 67065 Ludwigshafen/Rhein, Germany(3) Representative: Yasuo Suzuki
2. Name, address, and representative of the company to be acquired(1) Name:
BK Giulini GmbH and its affiliates(2) Address:
Giulinistraße 2, 67065 Ludwigshafen/Rhein, Germany(3) Representative: Eli Glazer(4) Paid-in capital: EUR 16 million (as of December 31, 2013)(5) Business:
Manufacturing, developing and marketing water treatment
chemicals, paper chemicals, alumina compounds, intermediates
for pharma and cosmetics and gypsum33. Purpose of the Transaction
The Transaction will enable Kurita to strengthen its overseas business platform
through combining the Business’s broad customer base in Europe and other regionswith Kutita’s existing customer base, which is mainly in Japan and the Asia region. Inaddition, Kurita sees the technologies and products of the Business as highly
complementary with those of Kurita, leading up to the development of more diverse
product offering for its customers.
4. Outline of the agreement on the acquisition(1) Date of acquisition
The transaction is planned to be closed on January 31, 2015.
(2) Business to be acquired
Manufacturing, developing and marketing the water treatment chemicals, paper
chemicals, and alumina compounds of BKG(3) Assets to be acquired
Assets belonging to the Business(4) Amount of assets and liabilities of the Business
The assets and liabilities have yet to be determined.
(5) Acquisition amount
We will make an adjustment for excess or deficiency in working capital and net
interest-bearing debt at the time of closing to 250 million euros.

4

Financial Statements — Consolidated
Balance Sheet — Consolidated(Million yen)

AssetsCurrent assets
Cash and deposits
Notes receivable – trade
Accounts receivable – tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable – trade
Accounts payable – trade
Income taxes payable
Provision
Other
Total current liabilities
Noncurrent liabilities
Net defined benefit liability
Provision
Other
Total noncurrent liabilities
Total liabilities

As ofMarch 31, 2014
Amount

As ofDecember 31, 2014
Amount47,336
7,287
50,50347,999
1,788
2,568
1,455
3,745
(184)
162,500

59,2798,680
48,63039,999
1,906
7,428
1,875
4,541
(144)
172,197

20,79532,76524,29477,855
1,578

18,30029,567
23,95971,828
1,604

24,717
8,683(409)
32,991
112,425
274,925

30,763
6,986(319)
37,430110,863
283,060

1,860
17,027
2,535
4,556
10,92036,8991,411
19,2292,137
3,176
12,69838,653

11,36398
7,411
18,872
55,772

12,56073
7,289
19,92258,576

5

(Million yen)

Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gains on available-for-sale securities
Deferred gains on hedges
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

As ofMarch 31, 2014
AmountAs ofDecember 31, 2014
Amount13,45011,426
185,159(2)
210,034

13,45010,980186,985(4)
211,412

7,862–(564)
384
(25)
7,657
1,461
219,153274,925

11,9128(564)
610(6)
11,9601,111
224,484
283,060

6

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Settlement
Acquisition-related costs
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on disposal of noncurrent assets
Provision for building demolition expenses
Contribution
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in earnings of consolidated subsidiaries
Net income

Nine months ended
December 31, 2013
Amount123,80284,291
39,51029,724
9,785Nine months ended
December 31, 2014
Amount133,180
91,541
41,63829,25812,380

123
335

136
386

190

206

424
1,074

381
1,110

46
56
–
81
184
10,675

49
–
666
78
794
12,696

–
190
500
690
9,985
3,653
6,331
48
6,283

165
–
–
165
12,530
4,793
7,737
25
7,711

7

Statement of Comprehensive Income(Million yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available-for-sale securities
Deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to minority interests

Nine months ended
December 31, 2013
Amount6,331

Nine months ended
December 31, 2014
Amount
7,737

4,957
–
998
–

4,048
8
178
19

105

52

6,061
12,393

4,308
12,045

12,27012,015123

30

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Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Nine months ended December 31, 2014 (April 1, 2014 – December 31, 2014)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Nine months ended December 31, 2014 (April 1, 2014 – December 31, 2014)
Not applicable(Segment Information)
1. Sales and income by reportable segment
Nine months ended December 31, 2013 (April 1, 2013 – December 31, 2013)(Million yen)

Reportable Segments

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

Water
Treatment
Facilities

TotalSales
Sales to outside customers
Inter-segment sales or transfers

43,165208

80,637158

123,802366–(366)

123,802–

Total

43,37380,795

124,168(366)

123,802

6,095

3,699

9,795

(9)

9,785

Segment income

Nine months ended December 31, 2014 (April 1, 2014 – December 31, 2014)(Million yen)

Reportable Segment

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

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

44,415247
44,663
5,953

88,765136
88,902
6,433

133,180384
133,565
12,386

Amounts
reported on
Adjustments the quarterly
statements of(note 1)
income(note 2)–(384)(384)(6)

133,180–
133,180
12,380Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income Adjustments.
2. Segment income is shown at the operating income level.

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

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2013
2014
Amount%Amount44,10034.2
43,920%32.1

Water Treatment Facilities

84,832

65.8

93,081

67.9

Total

128,933

100.0

137,002100.0(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2013
2014
Amount%Amount43,16534.9
44,415%
33.3

Water Treatment Facilities

80,63765.1

88,765

66.7

Total

123,802100.0

133,180

100.0(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2013
2014
Amount%Amount
1,192
36.6
904

%
19.0

Water Treatment Facilities

2,063

63.4

3,858

81.0

Total

3,255

100.0

4,762

100.0

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

Business segment
Water Treatment Chemicals

Nine months ended December 31,2013
2014
Amount%Amount
849
8.0
881%
8.2

Water Treatment Facilities

9,809

92.0

9,880

91.8

Total

10,659100.0

10,761100.010