Kurita Water Industries Ltd.
Earnings for the Six Months
Ended September 30, 2012
First Half of the Fiscal Year Ending March 31, 2013
( Stock code : 6370 )November 1, 2012

Table of Contents

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

Ⅲ. Reference Materials

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【 1 】 Financial Highlights【 2 】 Orders, Sales, Operating Income, and Operating Income Margin【 3 】 Water Treatment Chemicals【 4 】 Water Treatment Facilities (for the electronics industry)【 5 】 Water Treatment Facilities (for general industries)【 6 】 Service Business Revenue【 7 】 Overseas Businesses (sales by region and business & map of Asian locations)【 8 】 Capital Expenditures, Depreciation, and R&D Expenses【 9 】 Financial Condition

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【1】 Financial Highlights(Billions of Yen)
Fiscal year to
March 2012
First-half results

Fiscal year to
March 2013
Initial first-halfprojection

Fiscal year to
March 2013
First-half results

Year-on-yearchangeOrders

98.4

101.0

94.1

- 4.4%Net Sales89.595.0

90.2+ 0.8%

Operating Income

13.0

13.5

10.9

- 16.6%

Ordinary Income

13.4

13.7

11.3

- 15.3%Net Income

7.9

7.5

4.9

- 38.3%

1

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【2】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals

Water treatment facilities

Total*Orders(Billions of Yen)
100

Sales
Sales

98.4

94.1

101.0

29.0

28.7

30.0

(Billions of Yen)
100

500

69.4

65.4

90.2

95.0

28.6

28.7

29.9

60.9

61.6

65.1

03/2012First-half results

03/2013First-half results

03/2012First-half results

03/2013First-half results

71.00

Operating Income Margin(%)
1813.0
10.9

13.5

4.7

5.4

14.5
1378.003/2012
First-half results

6.2

17.4
16.3 18.1

5.00

89.5

50

Operating Income(Billions of Yen)
14denotes initial projections

13.2

8.1

03/2013First-half results

12.0 14.2
10.0 12.4

803/2012
First-half results

03/2013First-half results2

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【3】 Water Treatment Chemicals
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*denotes initial projections*Operating income
Operating income margin
denotes initial projections(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

3030

615029.003/2012
First-halfresults

28.7 30.003/2013
First-halfresults

15028.603/2012
First-halfresults

28.7 29.903/2013
First-halfresults【 Major areas of growth/decline in orders/sales 】
J a p a n ：  Increase in process treatment chemicals (+)
 Decrease in cooling water treatment chemicals (-)
Overseas：  Growth in areas including China and Thailand (+)
 Impact of yen appreciation (-)

(%)

17.4

20

16.3 18.1

3010

5.0

4.703/2012
First-halfresults

03/2013First-halfresults

5.40【 Major determinants of change 】
 Increase in SG&A expenses (-)
 Changes in sales composition (-)

3

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【4】 Water Treatment Facilities (for the electronics industry)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

40

40

8

Operating income
Operating income margin
denotes initial projections
(%)

18.3

20

14.7 17.3

20

38.7

36.7 39.8

20

37.7

36.2 40.0

4

10

6.9
5.3

003/2012
First-halfresults

03/2013First-halfresults【 Major areas of change 】
 Increase in hardware (+)
 Decrease in maintenance services (-)
 Decrease in the ultrapure watersupply (-)

003/2012
First-halfresults

03/2013First-halfresults【 Major areas of change 】
 Increase in hardware (+)
 Decrease in maintenance services (-)
 Decrease in the ultrapure watersupply (-)

003/2012
First-halfresults

03/2013First-halfresults

6.90【 Major determinants of change 】
 Impact of decline in revenue (-)
 Changes in sales composition (-)
 Increase in SG&A expenses (-)

4

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【5】 Water Treatment Facilities (for general industries)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*

Operating income
Operating income margin
denotes initial projections(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

(%)

30

30

1.4

6.0

4.9
3.3
15

30.7

28.7 31.2

0.7

15

23.2

25.3 25.1

3.01.10.8003/2012
First-halfresults

03/2013First-halfresults【 Major areas of change 】
 Increase in hardware (+)
 Decrease in orders from the electricpower industry (-)
 Decrease in maintenance services (-)

04.803/2012
First-halfresults

03/2013First-halfresults【 Major areas of change 】
 Increase in electric power industry
sales (+)
 Increase in hardware (+)
 Decrease in maintenance services (-)

0.0

03/2012First-halfresults

1.2

03/2013First-halfresults

0.0【 Major determinants of change 】
 Impact of revenue growth (+)
 Changes in sales composition (-)
 Increase in SG&A expenses (-)

5

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【6】 Service Business Revenue
Water treatment chemicals

Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment facilities (services)
Water treatment facilities (hardware)**denotes initial projection(Billions of Yen)

50

(Billions of Yen)

100
95.0

89.5

denotes initial projection

47.9

90.2

48.5

43.6

16.0

16.8

Ultrapurewater supply
business

4.6

4.3

Tool cleaning

27.9

22.5

Maintenance,etc.

17.3
29.9

28.628.7
4.6

47.9

12.9
0

72.3

76.5

5003/2012
First-half results

48.5

16.6

43.6

25

Servicebusinessrevenue

26.0

17.903/2013
First-half results

003/2012
First-half results

03/2013First-half results
6Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【7】 Overseas Businesses (sales by region and business & map of Asian locations)(Billions of Yen)

Growth centering on Asia
Asia

Europe0.7
03/2012First-halfresults

0.6
10.403/2013
First-halfresults

5.8
9.2

14.9

Dalian12.0

SouthKorea

03/2012First-halfresultsSuzhou03/2013First-halfresults

Guangzhou

0.5
03/2012First-halfresults

TianjinBusiness Segment

7.3 13.1

N. America

0.903/2013
First-halfresults

ShanghaiTaiwanOtherThailand

5.8

Malaysia

1.5

1.4

03/2012First-halfresults

03/2013First-halfresults

Singapore

03/2012First-half results

03/2013First-half results

Water treatment chemicals
Water treatment facilities

Water treatment
chemicals locations
Water treatment
facilities locations

Indonesia

7Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【8】 Capital Expenditures, Depreciation, and R&D Expenses
Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

Capital expenditures(excl. ultrapurewater supply business)

R&D Expenses

Depreciation

R&D Expenses

Percentage of net sales(Billions of Yen)

(Billions of Yen)

(%)

8

3.0

3.0

2.3

4

7.6
2.7
1.4
1.3003/2012
First-half results

2.9

7.4

2.4

1.5

1.5

2.1

0.9

2.2

2.003/2013
First-half results

0.003/2012
03/2013First-half results First-half results

0.08

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2013

【9】 Financial ConditionAssets

Liabilities and Net Assets(Billions of Yen)

271.1

268.7

69.4

83.7

(Billions of Yen)

Cash, deposits
andmarketablesecurities

271.1

268.7

61.1

55.8

Liabilities(- 5.3)(+ 14.3)

75.6

68.5

Other current
assets(- 7.1)

210.0
98.4

90.5

212.9

Net assets

Property,plant, andequipment(- 7.9)

27.8

26.0

Mar. 31, 2012

Sep. 30, 2012(- 1.8)Other fixed
assets(+ 2.9)Mar. 31, 2012

Sep. 30, 20129Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013
【 1 】 Overview【 2 】 Key Assumptions【 3 】 Orders, Sales, Operating Income, and Operating Income Margin【 4 】 Water Treatment Chemicals【 5 】 Water Treatment Facilities (for the electronics industry)【 6 】 Water Treatment Facilities (for general industries)【 7 】 Service Business Revenue【 8 】 Overseas Businesses (sales by region and business)【 9 】 Outlook for the Ultrapure Water Supply Business【10】 Capital Expenditures, Depreciation, and R&D Expenses【11】 Maintaining and Strengthening Profitability【12】 Stable Dividend Increase【13】 Acquisition and Tender Offer of Treasury StockⅡ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【1】 Overview(Billions of Yen)
Fiscal year to
March 2012
ActualFiscal year to
March 2013
Initial projection

Fiscal year toMarch 2013
Revised projection

Year-on-yearchangeOrders

197.3

201.0

198.0

+ 0.4%Net Sales

193.8

200.0

196.0

+ 1.1%

Operating Income

29.4

29.5

25.0

- 14.9%Ordinary Income

30.4

30.0

25.7

- 15.4%Net Income

16.5

17.5

13.6

- 17.8%

10Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【2】 Key Assumptions
Water Treatment Chemicals Segment
 Global economic slowdown, particularly in Europe and China Consolidation of domestic customers' production sites and adrop in capacity utilization

Water Treatment Facilities Segment
 Scaling back of semiconductor and liquid crystal display (LCD)
capital expenditure Capital expenditure in general industries is largely unchanged
in Japan Saturation of post-earthquake recovery demand from thedomestic electric power industry
11

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【3】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals

Water treatment facilities

Total*Orders(Billions of Yen)
200Sales
Sales

197.3

198.0 201.0

56.7

57.203/2012
Actual140.8 141.7003/2013
Projection

Operating Income(%)
1729.425.0

29.5

196.0 200.0

56.4

57.1

137.3

138.9 140.7

59.3

9.0

10.4
1415

20.1

03/2012Actual16.003/2013
Projection

03/2012Actual03/2013
Projection

Operating Income Margin
16.4
15.8 17.5

9.3

0

193.8

100

140.5

(Billions of Yen)
30

(Billions of Yen)
20059.3

1000denotes initial projections

15.2
14.7
12.8 14.8

19.1
11

11.5 13.603/2012
Actual03/2013
Projection

12

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013【4】 Water Treatment Chemicals
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*denotes initial projections*

Operating income
Operating income margin
denotes initial projections(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

1016.4(%)

1815.817.530057.2 59.3

56.703/2012
Actual03/2013
Projection

30056.403/2012
Actual【 Major areas of growth/decline in orders/sales 】
 Japan : Sales largely unchanged
 Overseas : Expansion in sales centering on Asia (+)

57.1 59.303/2013
Projection

5099.39.003/2012
Actual03/2013Projection10.40【 Major determinants of change 】
 Impact of revenue growth (+)
 Change in sales composition (-)
 Increase in SG&A expenses (-)

13

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【5】 Water Treatment Facilities (for the electronics industry)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*

denotes initial projections*(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

90

90

16

Operating income
Operating income margin
denotes initial projections
(%)

19.1

20

15.9 17.8

45

084.3

03/2012Actual84.4 85.203/2013
Projection【 Major areas of change 】
 Increase in hardware (+)
 Decrease in maintenance services (-)
 Decrease in the ultrapure watersupply (-)

45079.603/2012
Actual82.0 84.1

03/2013
Projection【 Major areas of change 】
 Increase in hardware (+)
 Decrease in maintenance services (-)
 Decrease in the ultrapure watersupply (-)

8015.2

03/2012Actual1013.0 15.003/2013
Projection0【 Major determinants of change 】
 Impact of revenue growth (+)
 Change in sales composition (-)
 Increase in SG&A expenses (-)

14Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【6】 Water Treatment Facilities (for general industries)
Orders*Operating Income andOperating Income MarginSales

denotes initial projections*denotes initial projections*

Operating income
Operating income margin
denotes initial projections(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

60

60

6(%)

8.6

10

5.2
30

56.2

56.4 56.5

30

57.7

56.9 56.6

354.9
3.0003/2012
Actual03/2013
Projection【 Major areas of change 】
 Increase in hardware (+)
 Decrease in orders from the electric
power industry (-)
 Decrease in maintenance services (-)

003/2012
Actual03/2013
Projection【 Major areas of change 】
 Increase in hardware (+)
 Increase in maintenance services (+)
 Decrease in electric power industrysales (-)

7.2

003/2012
Actual4.1

03/2013
Projection0【 Major determinants of change 】
 Impact of decline in revenue (-)
 Change in sales composition (-)
 Increase in SG&A expenses (-)

15

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【7】 Service Business Revenue
Water treatment chemicals

Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment facilities (services)
Water treatment facilities (hardware)*(Billionsof Yen)
200(Billionsof Yen)100

denotes initial projections

98.9

98.4

100.5
96.4

96.1

102.0

199.7
178.5

57.1

56.4

10.2

98.9

100.5
98.4

35.1

32.5
31.8

Ultrapurewater supply
business

9.3
9.7

8.9
9.5

Tool
cleaning

50

152.8

152.1

100

42.5

153.5

157.0

157.2

34.8

13.1

59.3

56.7

53.7

34.6

200.0

181.2

58.3

23.9

196.0

193.8

96.1

26.4

28.4

36.7

03/201003/201103/2012

96.4
102.0

Servicebusiness
revenue

61.9
53.6

51.356.4

55.0
60.7

Maintenance,etc.

42.5
38.7

00

03/2009

03/2013
Projection

03/2009

03/201003/201103/201203/2013
Projection

16

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【8】 Overseas Businesses (sales by region and business)
Sales by Region

Asia

Sales by Overseas Business Segment

N. America
EuropeOther*denotes initial projections

Water treatment chemicals*(Billions of Yen)

Water treatment facilities
denotes initial projections(Billions of Yen)

40

40

36.0 37.4
29.3

20

26.0

26.4

2.9
1.6
1.4

3.1
1.3
2.8

19.0

3.3
1.5
1.829.3

12.0 12.7

11.5
20

11.0

29.7 30.9
19.2

26.4

26.0

3.0
1.4
2.3

2.6
1.4
1.6
20.1

2.9
1.4
2.0

36.0 37.4

19.0

10.9

9.4
23.9 24.7

22.5
15.5

14.9

13.4

17.8

9.6
0

03/2009

03/201003/201103/201203/2013
Projection

003/2009

03/201003/201103/201203/2013
Projection17

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013

【9】 Outlook for the Ultrapure Water Supply Business
Sales*

Capital Expenditures

denotes initial projections(Billions of Yen)*

denotes initial projections(Billions of Yen)

4060

203034.6

35.1

34.8

52.0

32.5 31.8

23.9

003/2009

03/201003/201103/201203/2013
Projection

003/2009

5.7

3.9

5.3

3.3

03/201003/201103/201203/2013
Projection

1.1

18

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013【10】 Capital Expenditures, Depreciation, and R&D Expenses
Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

R&D Expenses

Depreciation
Capital expenditures(excl. ultrapurewater supply business)* denotes initial projections

R&D Expenses

Percentage of net sales*denotes initial projections(Billions of Yen)

(Billions of Yen)

(%)

16

6.0

3.0

2.3

8

15.4

7.7

15.4

5.5
5.3

7.5
5.0

15.4 15.4

2.2

2.3 2.3

3.0

3.3

1.5

4.2

4.203/201103/2012

4.6 4.7

1.1

3.9
4.2
0

1.6

2.4

3.903/2011

03/201203/2013
Projection

0.003/2013
Projection

0.0
19

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013【11】 Maintaining and Strengthening Profitability1) Making thorough total cost reductions【 Improving cost of sales ratio 】
 Water treatment facilities business : Improving cost of sales ratio upon order receipt, expanding local
procurement, and increasing standard-compliant equipment
 Water treatment chemicals business : Payment for services which were previously free of charge【 Keeping SG&A expenses down 】
 Elimination of unnecessary expenses and thorough streamlining

2) Stabilizing the overseas earnings base
 Focusing on food, beverage, and automobiles in Southeast Asia, in addition to semiconductors andLCDs in South Korea and China
 Reinforcing manufacturing and procurement systems at business locations in Indonesia and Malaysia
 Strengthening service businesses, including chemicals and maintenance services, overseas

Working to maintain and enhance the Group's strong profitability
20Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013【12】 Stable Dividend Increase(Yen)

50

32
28

25

22
18+434+236+238+240+242+2+6+4+2

0

03/2005

03/2006

03/2007

03/2008

03/2009

03/201003/201103/201203/2013
Projection

Basic Dividend Policy
Kurita’s basic policy is to maintain stable dividends, and the company will work to increase
dividends while giving due consideration to trends in results and investments in its businesses.
21

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2013【13】 Acquisition and Tender Offer of Treasury Stock【 Description of public tender offer 】
Purchase price

1,630 yen per share

Number of shares
to be purchased

7.5 million shares(Ratio of total number of shares issued : 5.65%)

Purchase period

November 1, 2012 to November 29, 2012

This treasury stock acquisition is being conducted in an effort to improve capital efficiency
and deliver even more returns to shareholders, as the Group executes a flexible capital
policy in consideration of factors including investment opportunities, its financial position,and stock price levels.

22Ⅲ. Reference Materials
Analysis of Changes in First-half Operating Income for the Fiscal Year Ending March 31, 2013
(Billions of Yen)

14

13.0

+ 0.2

-0

Effect ofrevenue
growth*Effect of raw
materials
prices- 0.8- 1.5
Increase in
SG&A
expenses

Effect ofchange in costof sales ratio*

10.97003/2012
First-half results

03/2013First-half results*The effects of revenue growth and change in the cost of sales ratio are calculated using the gross profit margin.

23

Kurita Water Industries Ltd.
U R L

h t t p : / / i r. k u r i t a . c o . j p /M A I L

ir@kurita.co.jp

Forward-looking Statements
This presentation contains forward-looking statements, business plan projections, and judgments based on
information available to management at the time of writing. Due to the existence of a variety of risk factors
and uncertainties, actual results may differ from those specified or implied by these forward-looking
statements and projections.