FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Nine Months Ended December31, 2015
Tokyo, Japan, January 29, 2016—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 148,862 million yen and profit attributable to owners of
the parent company of 9,314 million yen, or 80.16 yen per share, for the nine months
ended December 31, 2015 (April 1, 2015 – December 31, 2015).
Results of Operations
Total consolidated orders for the Kurita Group in the nine months ended December 31,
2015 rose 16.2% from the level of the same period of the previous fiscal year, to159,228 million yen, and net sales increased 11.8%, to 148,862 million yen. Operating
income was 14,040 million yen, up 13.4% versus the same period of the previous fiscal
year, and ordinary income was 14,735 million yen, up 16.1%. Profit attributable toowners of the parent company amounted to 9,314 million, up 20.8%. Because of theconsolidation of acquired businesses, consolidated orders and net sales of the Group andthe Water Treatment Chemicals segment rose 16,031 million yen, but the consolidated
operating income declined 691 million yen. The decline in operating income wasprincipally attributable to the posting of the amortization of the goodwill andtechnology-related assets acquired in association with the business acquisition and atemporary rise in expenses associated with a review of the initial allocation of the costof the business acquisition.
Looking at the market environment surrounding Kurita Group (Kurita Water
Industries Ltd. and its consolidated subsidiaries and equity method affiliates), in Japan,
the recovery in production in the manufacturing industry remained at a standstill,
mainly due to sluggish growth in exports. There were signs of a recovery in capital
expenditure in certain areas, reflecting an improvement in corporate earnings, butcapital expenditure overall remained flat. There was uncertainty over the outlook foroverseas economies, given a slowdown in China and other emerging economies and a
sharp fall in crude oil prices. The U.S. and European economies continued to recover.
In this environment, the Kurita Group worked to propose solutions to customers’
challenges by combining its three functions: water treatment chemicals, water treatmentfacilities and maintenance services. From the first quarter, the Group is consolidating
the results of operations of the businesses that it has acquired from BK Giulini GmbH inGermany and its affiliates.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 62,133 million
yen, up 41.5% versus the same period of the fiscal year ended March 31, 2015, whilesales rose 39.7%, to 62,060 million yen. Operating income was down 7.5% to 5,506
million yen due to the posting of the amortization of goodwill and technology-relatedassets and a temporary expense associated with a review of the initial allocation of thecost of business acquisition.
In Japan, the Group took steps to gain new customers. However, capacity utilization
at customers’ plants recovered only moderately, and overall orders and sales in Japanremained flat. Overseas, orders and sales increased significantly, reflecting strong1performance in China and Southeast Asia and the consolidation of acquired businesses
from the first quarter.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 97,094 million yen,up 4.3% versus the same period of the previous fiscal year. Sales declined 2.2%, to86,801 million yen. Operating income climbed 32.8%, to 8,544 million yen due to an
improvement in the cost rate as a result of the strengthening of collaboration among thesales, design, and construction work divisions and the curbing of unprofitable projects.
In Japan, orders and sales in the water treatment facilities business and maintenanceservices for the electronics industry rose, reflecting high capacity utilization at plants
manufacturing electronic components for smartphones. In the ultrapure water supply
business, despite the termination of some contract periods, overall sales rose slightly
with the posting of revenue from new contracts. In general industries, orders declined
due to a decrease in orders for water treatment facilities for electric power and soil
remediation services. Sales of water treatment facilities for electric power and sales inmaintenance services rose, but overall sales of water treatment facilities remained flat
due to a decline in sales of water treatment facilities, with the exception of facilities forelectric power, as a result of delays in progress in construction. Overseas, orders rose,chiefly reflecting large-scale projects in the electronics industry in China and Taiwan,
but sales fell due to the completion of construction in large-scale projects.
Financial Condition
Assets, liabilities and net assets
Current assets totaled 145,725 million yen at the end of the third quarter (December 31,2015), a decrease of 3,242 million yen versus the end of the previous fiscal year (March31, 2015). This was mainly a result of declines of 3,197 million yen in cash and deposits
and 5,625 million yen in trade accounts receivable, which overweighed an increase of
6,239 million yen in work in process. The decline in cash and deposits principallyreflected the acquisition of businesses in Europe. The decline in trade accounts
receivable was the result of progress in collecting receivables and a decrease in sales in
the nine months under review from the fourth quarter of the previous fiscal year. The
increase in work in process was mainly due to progress in construction work in thewater treatment facilities business.
Noncurrent assets totaled 148,676 million yen at the end of the third quarter(December 31, 2015), an increase of 3,151 million yen versus the end of the previous
fiscal year. The increase was principally attributable to a 2,898 million yen increase inproperty, plant and equipment and a 1,603 million yen increase in investments and otherassets, which outweighed a 1,351 million yen decrease in intangible fixed assets. The
increase in property, plant and equipment was attributable chiefly to an increase inconstruction in progress associated with new ultrapure water supply projects. The
increase in investments and other assets was mainly due to an increase in unrealized
gains on investment securities due to rises in the market prices of the shares held by theGroup. The decrease in intangible fixed assets chiefly reflected the posting ofamortization of goodwill associated with business acquisition in Europe.
Current liabilities totaled 43,117 million yen at the end of the period, a decline of
4,858 million yen versus the end of the previous fiscal year. This was mainly a result ofdeclines of 2,639 million yen in income taxes payable and 1,339 million yen in2

provision.
Noncurrent liabilities totaled 23,902 million yen at the end of the period, an increaseof 863 million yen versus the end of the previous fiscal year chiefly due to an increasein net defined benefit liability.
Net assets totaled 227,381 million yen at the end of the period, an increase of 3,903
million yen versus the end of the previous fiscal year primarily due to an increase of
2,868 million yen in shareholders’ equity and an increase of 1,113 million yen inaccumulated other comprehensive income. The increase in shareholders’ equity chiefly
reflected growth in retained earnings due to the posting of a profit attributable to ownersof the parent company of 9,314 million yen in the nine months under review, which
exceeded year-end dividends for the previous fiscal year and interim dividends for thefiscal year under review of a total of 5,469 million yen, and a rise of 990 million yen intreasury stock due to the acquisition of treasury stock. The increase in accumulated
other comprehensive income resulted mainly from a 1,535 million yen decrease inforeign currency translation adjustment due to a stronger yen against foreign currencies
and a 2,608 million yen increase in unrealized gains on available-for-sale securities
associated with an increase in unrealized gains on investment securities.
Outlook for the Fiscal Year Ending March 31, 2016
The Group’s current outlook for the full year ending March 31, 2016 is consistent withthe revised forecast disclosed in the Earnings for the Six Months Ended September 30,
2015, which was announced on October 29, 2015.

3

Financial Statements — Consolidated
Balance Sheet — Consolidated

AssetsCurrent assets
Cash and depositsNotes receivable – trade
Accounts receivable – tradeMarketable securities
Finished products
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings (net)
Machinery and equipment (net)Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets(Million yen)

As ofMarch 31, 2015
Amount

As ofDecember 31, 2015
Amount52,497
7,513
59,81014,999
3,840
3,078
2,561
4,898(233)
148,967

49,3007,090
54,185
14,999
3,217
9,317
2,362
5,459
(208)
145,725

18,307
29,70827,01775,03315,70729,58032,644
77,931

17,475
9,701
27,177

16,762
9,064
25,82635,678
7,938(302)
43,314
145,525
294,492

39,3175,849(249)
44,917
148,676
294,401

4

(Million yen)

As ofMarch 31, 2015
Amount

As ofDecember 31, 2015
AmountLiabilities
Current liabilities
Notes payable – tradeAccounts payable – trade
Income taxes payable
Provision
Other
Total current liabilities
Noncurrent liabilities
Net defined benefit liability
Provision
Other
Total noncurrent liabilities
Total liabilities

1,650
19,1694,595
4,076
18,48347,975

1,749
19,0291,956
2,737
17,644
43,117

13,75075
9,213
23,03971,014

14,39457
9,450
23,90267,01913,45010,980189,693(7,705)
206,419

13,45010,993
193,539(8,695)
209,287

14,76817,376

66
(442)
1,510
8
15,911
1,147
223,478
294,492

114
(442)
(25)2
17,024
1,069
227,381294,401

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

5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
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Acquisition-related expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on liquidation of businessTotal extraordinary losses
Income before income taxes
Income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

Nine months ended
December 31, 2014
Amount133,180
91,541
41,63829,25812,380Nine months ended
December 31, 2015
Amount148,862
97,93950,92336,882
14,040

136
386

172
467

206

168

381
1,110

322
1,130

49
666
78
794
12,696

154
87
193
435
14,735

-147
147

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

150
150
14,731
5,299
9,432
117
9,314

6

Statement of Comprehensive Income(Million yen)

Net income
Other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners ofparent company
Comprehensive income attributable tonon-controlling interests

Nine months ended
December 31, 2014
Amount7,737

Nine months ended
December 31, 2015
Amount
9,432

4,048

2,6068178
1948(1,461)(6)52(125)

4,308
12,045

1,061
10,49412,015

10,42130

73

7Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Nine months ended December 31, 2015 (April 1, 2015 – December 31, 2015)
Not applicable(Notes on Significant Changes in Shareholders’ Equity)
Nine months ended December 31, 2015 (April 1, 2015 – December 31, 2015)
Not applicable(Segment Information)
1. Sales and income by reportable segment
Nine months ended December 31, 2014 (April 1, 2014 – December 31, 2014)(Million yen)

Reportable Segments

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

Water
Treatment
Facilities

Total

Sales
Sales to outside customers
Inter-segment sales or transfers

44,415247

88,765
136

133,180384–(384)

133,180–

Total

44,66388,902

133,565(384)

133,180

Segment income

5,953

6,433

12,386(6)

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.

Nine months ended December 31, 2015 (April 1, 2015 – December 31, 2015)(Million yen)

Reportable Segment

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

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

62,060191
62,252
5,506

86,801
113
86,9158,544

148,862304
149,167
14,051

Amounts
reported on
Adjustments the quarterly
statements of(note 1)
income(note 2)–(304)(304)(10)

148,862–
148,862
14,040Notes:
1. Adjustments related to sales represent elimination of inter-segment sales. Resultant adjustment of segment
income is reflected in segment income adjustments.
2. Segment income is shown at the operating income level.

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

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2014
2015
Amount%Amount43,92032.1
62,133%39.0

Water Treatment Facilities

93,081

67.9

97,094

61.0

Total

137,002100.0

159,228100.0(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2014
2015
Amount%Amount44,41533.3
62,060%41.7

Water Treatment Facilities

88,765

66.7

86,801

58.3

Total

133,180100.0

148,862100.0(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2014
2015
Amount%Amount
904
19.0
1,238

%
9.0

Water Treatment Facilities

3,858

81.0

12,529

91.0

Total

4,762

100.0

13,768100.0(4) Depreciation (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2014
2015
Amount%Amount881
8.2
1,186%
11.8

Water Treatment Facilities

9,880

91.8

8,880

88.2

Total

10,761

100.0

10,066100.0

9