FOR IMMEDIATE RELEASE
Kurita Water Industries Ltd. Reports Earnings for the Six Months Ended September 30, 2022
Tokyo, Japan, October 31, 2022 - Kurita Water Industries Ltd. (the “Company”) (TSE Securities Code6370) announced net sales of 160,680 million yen and profit attributable to owners of parent of 12,379
million yen, or 110.15 yen per share, for the six months ended September 30, 2022 (April 1, 2022 September 30, 2022).
Results of Operations
Total consolidated orders for the Kurita Group (the “Group”) in the six months ended September 30,
2022 rose 35.6% from the level of the year-ago period, to 200,415 million yen, and net sales increased
18.8%, to 160,680 million yen. Business profit* increased 11.6%, to 16,611 million yen, operating
profit was 16,346 million yen, up 10.8% versus the year-ago period, profit before tax was 17,509
million yen, rising 56.9%, and profit attributable to owners of parent amounted to 12,379 million yen,up 117.0%.
In the first six months under review, the Company underwrote a capital increase at Kurita America
Holdings Inc. to help it acquire additional shares in US-based subsidiary Pentagon Technologies Group,
Inc. (and make it a wholly owned subsidiary) and completed the payment. The Company posted infinance income a gain on derivatives transactions of 1,090 million yen from a foreign exchange
contract it entered into after deciding to underwrite the capital increase. Meanwhile, finance costs of
3,611 million yen posted in the same period of the previous fiscal year that resulted from thesubsequent measurement of liabilities related to a forward contract concluded with the non-controllingshareholders of Pentagon Technologies Group, Inc. were eliminated. Those factors contributed to thesignificant increases in profit before tax and profit attributable to owners of parent.
During the first six months of the fiscal year ending March 31, 2023, uncertainty in the global
economy increased, reflecting continued disruption in supply chains and sharp rises in prices of raw
materials and energy chiefly due to an increase in geopolitical risk and the resurgence in COVID-19
cases. However, the global economy continued to recover moderately. Production activities in the
manufacturing industry in Japan were weak in certain sectors chiefly due to constraints on the supplyof raw materials caused mainly by semiconductor shortages and lockdowns in China, but there
remained signs of a recovery in capital investment. Overseas, there were signs of a recovery in the U.S.
economy and the economies in Europe and Asian countries excluding China. Meanwhile, the Chinese
economy slowed due to the lingering effects of lockdowns and movement restrictions to block the
spread of COVID-19.
In this environment, the Group stepped up initiatives to propose total solutions that would help solve
customer issues such as the reduction of the environmental impact, including water saving, thereduction of CO2 emissions and waste reduction, and an improvement in productivity, while expanding
the CSV (creating shared value) business based on a deep understanding of social and customer issues,
aiming to address climate change and create value shared with society.
* Business profit is the Group’s own indicator that measures constant business performance. It is net
sales less cost of sales and selling, general and administrative expenses. Although business profit is
not defined by IFRS, the Group voluntarily discloses it, believing that it is beneficial for users of its
financial statements.
Segment Information
The Group consists of two reportable segments in its segment information: Water Treatment
Chemicals and Water Treatment Facilities.
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 69,170 million yen, up 17.9%
versus the year-ago period, while net sales rose 17.7%, to 68,396 million yen.
1

In terms of profits, business profit amounted to 8,436 million yen, an increase of 12.3% year on year,
and operating profit rose to 8,557 million yen, up 17.7% year on year, chiefly due to an increase in net
sales, which more than offset a rise in expenses chiefly due to increases in raw materials prices anddistribution costs.
In Japan, orders and net sales remained flat from the same period of the previous fiscal year,
reflecting the effects of supply shortages of semiconductors and other raw materials on capacity
utilization at certain customers’ plants.
Overseas, both orders and net sales increased, reflecting sales price increases in response to sharp
rises in raw materials prices and logistics costs and an increase in results in yen at overseas subsidiaries
due to the weaker yen.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 131,244 million yen, up 47.2%
versus the same period of the previous fiscal year. Net sales increased 19.6%, to 92,283 million yen.
In terms of profits, business profit amounted to 8,182 million yen, an increase of 11.0% year on year,
and operating profit rose to 7,799 million yen, up 4.5% year on year, chiefly due to an increase in net
sales, which more than offset a rise in expenses related to the procurement of raw materials and parts.
In Japan, both orders and net sales of water treatment facilities for the electronics industry increased
due to the posting of orders for large projects and sales from the order backlog. Orders and net sales
for maintenance services for the industry both increased, reflecting the expansion of facilities and theposting of orders for and sales from repairs, including the replacement of consumables, against a
backdrop of firm capacity utilization at customers’ plants.
Orders for water treatment facilities for general industries climbed, but net sales remained flat.
Orders and net sales of maintenance services for the industry both increased because of a recovery inmaintenance demand. Both orders for and net sales from water treatment facilities for the electric
power industry decreased because the posting of orders and net sales from large projects ran its course.
Orders for soil remediation services declined, but net sales of the services increased.
Overseas, both orders and net sales increased due to an increase in results in yen at overseas
subsidiaries associated with the weaker yen, the posting of orders and sales of large water treatment
facilities projects in the electronics industry in East Asia and an increase in sales of precision toolcleaning services.
Total net sales in the ultrapure water supply business in Japan and overseas increased mainly due tothe contribution of a contract that began in the previous fiscal year.
Financial Condition
Condition of assets, liabilities and equity
1) Total assets: 493,472 million yen, an increase of 23,491 million yen from the end of the previous
fiscal year
Current assets totaled 176,973 million yen at the end of the second quarter (September 30, 2022), a
decrease of 1,423 million yen from the end of the previous fiscal year (March 31, 2022). This was
mainly due to decreases in cash and cash equivalents and other current assets of 2,956 million yen and
2,683 million yen, respectively, offsetting an increase in inventories of 4,334 million yen.
Non-current assets totaled 316,498 million yen at the end of the second quarter, an increase of 24,913
million yen from the end of the previous fiscal year. Property, plant and equipment increased 12,658
million yen chiefly due to the acquisition of new facilities in the ultrapure water supply business (Water
Treatment Facilities business), and goodwill rose 8,533 million yen due to the weakening of the yen
against other currencies.
2) Liabilities: 194,235 million yen, an increase of 2,116 million yen from the end of the previous fiscal
year
Current liabilities totaled 104,304 million yen at the end of the period, a decrease of 9,623 million yen
from the end of the previous fiscal year. This is chiefly attributable to a decrease of 19,613 million yen
2in other financial liabilities due to the implementation of the forward contract concluded with the noncontrolling shareholders of US-based Pentagon Technologies Group, Inc. (Water Treatment Facilities
business) and decrease in trade and other payables and income taxes payable of 9,379 million yen and
3,598 million yen, respectively, which were partially offset by an increase of 22,494 million yen inbonds and borrowings chiefly due to the issuance of commercial paper.
Non-current liabilities totaled 89,930 million yen at the end of the period, an increase of 11,739
million yen from the end of the previous fiscal year. This principally reflected an increase in bonds
and borrowings of 9,944 million yen mainly due to the issuance of the second series of unsecured
bonds (10,000 million yen).
3) Equity: 299,236 million yen, an increase of 21,374 million yen from the end of the previous fiscal
yearThis was attributable to an increase of 13,456 million yen in other components of equity mainly due
to the posting of exchange differences on translation of foreign operations, reflecting the weakeningof the yen against other currencies, and a rise of 8,382 million yen in retained earnings, chiefly due tothe posting of a profit attributable to owners of parent.
Cash Flows
Consolidated cash and cash equivalents at the end of the second quarter (September 30, 2022) totaled
42,774 million yen, a decrease of 2,956 million yen from the end of the previous fiscal year (March
31, 2022).
The various cash flows and related factors are outlined below.
1) Cash Flows from Operating Activities
Net cash provided by operating activities during the second quarter ended September 30, 2022 totaled
23,625 million yen, an increase of 10,929 million yen from the same period of the previous fiscal year.
Inflows from profit before tax of 17,509 million yen and depreciation and amortization of 14,088
million yen were partly offset by income taxes paid of 8,706 million yen.
2) Cash Flows from Investing Activities
Net cash used in investing activities totaled 31,118 million yen, an increase of 6,707 million yen fromthe same period of the previous fiscal year. Cash was used mainly for purchases of property, plant andequipment of 30,900 million yen.
3) Cash Flows from Financing Activities
Net cash provided by financing activities totaled 2,815 million yen, an increase of 7,897 million yen
from the same period of the previous fiscal year. Inflows chiefly from a net increase in short-termborrowings and commercial paper of 22,244 million yen and proceeds from the issuance of bonds of
9,955 million yen were partly offset by the purchase of shares of subsidiaries not resulting in change
in scope of consolidation of 22,127 million yen and dividends paid of 4,320 million yen.
The Group’s basic policy is to constantly secure the liquidity necessary for business operations andestablish a stable funds-raising system. Short-term working capital is basically supplied by the Group’s
own funds. Capital investment and other investments in growth fields depend chiefly on the Group’s
own funds, but the Group considers financing through bond markets and bank loans as needed. As ofthe end of the period under review, the Group has concluded commitment line contracts with one
financial institution (no borrowing executed and unexecuted borrowings within the commitment line
was 20,000 million yen).

3

Forecasts for the Fiscal Year Ending March 31, 2023
The Group has revised the consolidated earnings forecasts for the fiscal year ending March 31, 2023
stated in the “Kurita Water Industries Reports Earnings for the Three Months Ended June 30, 2022”
released on July 29, 2022, as below.
Net sales are expected to exceed the previous forecast, reflecting the expected contribution to thefull-year net sales of orders for water treatment facilities projects for the electronics industry in Japanand in Asia that were received in the first six months under review and an expected continued increasein net sales in the Water Treatment Chemicals business primarily overseas. The Company revises
upward the business profit forecast because of the increase in net sales as described above, althoughgiven price increases, raw materials costs and personnel expenses, among other expenses, will likely
rise more sharply than assumed when the previous forecast was announced. The operating profit, profit
before tax, and profit attributable to owners of parent forecasts are also revised upward, reflecting the
expected rise in business profit and trends in other income and expenses and finance income and costsin the first six months under review.
Regarding the impact of COVID-19, while it is difficult to rationally estimate how COVID-19 will
spread and when it will subside, the Company assumes that economic activities will normalize and theeconomy will recover moderately.
The business forecasts are made by the Company based on information available at the time of
publication of this report and may differ from actual results due to changes in a range of factors.
Revision to the consolidated business forecast for the fiscal year ending March 31, 2023
(April 1, 2022 - March 31, 2023)
Net sales

Business profit Operating profit Profit before tax

ProfitBasic earnings
attributable toper shareowners of parent

Previous forecast (A)Million yen
338,000

Million yen
38,000Million yen
36,500Million yen
36,500Million yen
25,700Yen
228.69

Revised forecast (B)350,000

39,00038,00039,00027,600245.56

Change (B-A)

12,000

1,000

1,500

2,500

1,900

‒

Percentage change (%)

3.6

2.6

4.1

6.8

7.4

‒

(Reference) Previous year
(Year ended March 31,
2022)

288,207

32,94435,73430,07918,471

164.384

Condensed quarterly consolidated financial statements(1) Condensed quarterly consolidated statement of financial position(Million yen)
As of March 31, 2022

As of September 30, 2022

Cash and cash equivalents

45,73042,774

Trade and other receivables

AssetsCurrent assets
108,892

109,158

Other financial assets

3,075

2,693

Inventories

13,132

17,466

Other current assets

7,564

4,881

Total current assets

178,396

176,973

Property, plant and equipment

161,034

173,692

Right-of-use assets

19,042

21,810Goodwill

62,992

71,525Intangible assets

18,092

18,627

Non-current assets

Investments accounted for using equity method

1,191

1,338

Other financial assets

23,011

23,271

Deferred tax assets

6,071

6,065

Other non-current assets

150

166

Total non-current assets

291,585

316,498

469,981

493,472

Total assets

5

(Million yen)
As of March 31, 2022

As of September 30, 2022

Trade and other payables

57,967

48,588

Bonds and borrowings

8,180

30,674

Lease liabilities

4,683

4,573

Other financial liabilities

19,613‒

Income taxes payable

8,663

5,065

Liabilities and equity
Liabilities
Current liabilities

Provisions

1,529

1,214

Other current liabilities

13,28914,187

Total current liabilities

113,927

104,304

Bonds and borrowings

30,95340,897

Lease liabilities

14,862

17,594

Other financial liabilities

1,757

1,683

Net defined benefit liability

18,144

18,407

Provisions

2,335

2,437

Deferred tax liabilities

2,646

2,486

Other non-current liabilities

7,491

6,423

Total non-current liabilities

78,19189,930

192,119

194,235

Share capital

13,45013,450Capital surplus(3,076)(184)

Treasury shares(10,694)(10,636)

Other components of equity

12,161

25,617Retained earnings

260,073

268,455

Equity attributable to owners of parent

271,914

296,702

Non-current liabilities

Total Liabilities
Equity

5,948

2,534

Total Equity

Non-controlling Interests

277,862299,236

Total liabilities and equity

469,981

493,4726

(2) Condensed quarterly consolidated statement of profit or loss
(Million yen)Six months ended
September 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses

Six months ended
September 30, 2022

135,239

160,680

85,230103,734

50,00956,94635,12540,334

Other income

687

809

Other expenses

821

1,074

Operating profit

14,74916,346

Finance income

263

1,651

Finance costs

3,953

588

102

99

11,161

17,509

Share of profit (loss) of investments accounted for using
equity method
Profit Before Tax
Income tax expense
Profit for the period

4,998

4,720

6,163

12,7895,705

12,379Profit attributable to
Owners of parent
Non-controlling Interests
Profit for the period

458

409

6,163

12,78950.78

110.15‒‒

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Condensed quarterly consolidated statement of comprehensive income(Million yen)Six months ended
September 30, 2021
Profit for the period

Six months ended
September 30, 2022

6,163

12,789Net change in the fair value of financial assets measured
at fair value through other comprehensive income

311

(17)

Remeasurements of defined benefit plans

(17)

47

Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss

293

30

Exchange differences on translation of foreign operations

153

12,500Cash flow hedges

(14)

174

Share of other comprehensive income of investments
accounted for using equity method

38

46

Total of items that may be reclassified to profit or loss

Other comprehensive income
Items that will not be reclassified to profit or loss

176

12,722Other comprehensive income, net of tax

470

12,752Comprehensive income for the period

6,633

25,542

6,094

24,087

539

1,454

6,633

25,542Comprehensive income attributable to
Owners of parent
Non-controlling Interests
Comprehensive income for the period8(4) Condensed quarterly consolidated statement of changes in equity
Six months ended September 30, 2021 (April 1, 2021 - September 30, 2021)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2021

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income13,450(2,212)(10,787)(4,469)(91)

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

108

(14)

311

Total comprehensive income for the period

13,060

‒

‒

‒

108

(14)

311

Purchase of treasury shares

‒

‒

(3)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

(11)

93

‒

‒

‒

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

0

Other

‒

(2)

‒

‒

‒

‒

‒

(13)

90

‒

‒

0

13,450(2,225)(10,696)(4,360)(106)

13,372

Total transactions with owners
Balance as of September 30, 2021

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controlling
Interests

Total

Total

Balance as of April 1, 2021

‒

8,500

244,138

253,089

4,748

257,837

Profit for the period

‒

‒

5,705

5,705

458

6,163

(15)

389

‒

389

81

470

(15)

389

5,705

6,094

539

6,633

Purchase of treasury shares

‒

‒

‒

(3)

‒

(3)

Dividends‒‒(3,819)(3,819)(36)(3,856)

Share-based payment transactions

‒

‒

‒

82

(1)

80

Changes in ownership interests in subsidiaries

‒

‒

‒

‒

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

125

125

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

‒

‒

‒

Transfer from other components of equity toretained earnings

15

16

(16)

‒

‒

‒

Other comprehensive income
Total comprehensive income for the period

‒

‒

‒

(2)

26

24

Total transactions with owners

Other

15

16

(3,835)(3,742)114(3,628)

Balance as of September 30, 2021

‒

8,906

246,007

255,4425,401

260,8439

Six months ended September 30, 2022 (April 1, 2022 - September 30, 2022)(Million yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of April 1, 2022

Capital surplus Treasury shares

Exchangedifferences ontranslation offoreign
operations

Cash flow
hedgesFinancial assets
measured at fairvalue throughothercomprehensive
income8,627

13,450(3,076)(10,694)

3,493

40

Profit for the period

‒

‒

‒

‒

‒

‒

Other comprehensive income

‒

‒

‒

11,502174(17)

Total comprehensive income for the period

‒

‒

‒

11,502174(17)

Purchase of treasury shares

‒

‒

(1)

‒

‒

‒

Dividends

‒

‒

‒

‒

‒

‒

Share-based payment transactions

‒

17

58

‒

‒

‒

Changes in ownership interests in subsidiaries‒(19,308)

‒

1,796

‒

‒

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

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

22,051‒‒‒‒

Transfer from other components of equity toretained earnings

‒

‒

‒

‒

‒

‒

Other

‒

132

‒

‒

‒

‒

‒

2,892

57

1,796

‒

‒

13,450(184)(10,636)

16,792214

8,610

Total transactions with owners
Balance as of September 30, 2022

(Million yen)
Equity attributable to owners of parent
Other components of equity
Remeasurementsof defined
benefit plans

Retainedearnings

Total

Non-controlling
Interests

Total

Total

Balance as of April 1, 2022‒

12,161

260,073

271,914

5,948

277,862

Profit for the period‒‒

12,37912,379409

12,789Other comprehensive income

47

11,708‒

11,7081,044

12,75247

11,70812,37924,087

1,454

25,542

Purchase of treasury shares

‒

‒

‒

(1)

‒

(1)

Dividends‒‒(4,045)(4,045)(253)(4,299)

Share-based payment transactions

‒

‒

‒

75

0

76

Changes in ownership interests in subsidiaries

‒

1,796

‒

(17,511)(4,615)(22,127)

Increase (decrease) by business combination

‒

‒

‒

‒

‒

‒

Liabilities pertaining to forward contracts
concluded with non-controlling shareholders

‒

‒

‒

22,051‒22,051

Transfer from other components of equity toretained earnings

(47)

(47)

47

‒

‒

‒

Total comprehensive income for the period

Other
Total transactions with owners
Balance as of September 30, 2022

‒

‒

(0)

132

‒

132

(47)

1,748

(3,997)700(4,868)(4,167)‒

25,617

268,455

296,7022,534

299,23610

(5) Condensed quarterly consolidated statement of cash flows(Million yen)Six months ended
September 30, 2021

Six months ended
September 30, 2022

Cash flows from operating activities
Profit Before Tax

11,161

17,509Depreciation and amortization

11,287

14,088

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

(102)

(99)

Loss (gain) on sale of fixed assets

(37)

(17)

Decrease (increase) in inventories(1,100)(3,235)Decrease (increase) in trade and other receivables

549

2,565

Increase (decrease) in trade and other payables

(636)

(561)

Other

(543)

1,824

20,57832,074

Interest received

Subtotal

48

96

Dividends received

383

169

Interest paid

(49)

(8)

Income taxes paid

(8,263)(8,706)

Net cash provided by (used in) operating activities

12,696

23,625

Payments into time deposits(1,167)(1,553)

Proceeds from withdrawal of time deposits

1,294

2,244

Purchase of property, plant and equipment(20,948)(30,900)

Cash flows from investing activities

Proceeds from sale of property, plant and equipment

251

70

Purchase of intangible assets(1,094)(663)

Payments for acquisition of subsidiaries (after deductionof cash and cash equivalents included in acquired assets)(2,401)‒Other
Net cash provided by (used in) investing activities

(346)

(315)

(24,411)(31,118)

1,392

22,244

Cash flows from financing activities
Net increase (decrease) in short-term borrowings andcommercial paper
Proceeds from issuance of bonds

‒

9,955

(275)

(348)

Repayments of lease liabilities(2,472)(2,646)

Dividends paid

(3,873)(4,320)‒(22,127)

Repayments of long-term borrowings

Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Other

146

57

Net cash provided by (used in) financing activities(5,082)2,815

Effect of exchange rate changes on cash and cash equivalents

359

1,721

Net increase (decrease) in cash and cash equivalents(16,438)(2,956)

Cash and cash equivalents at beginning of period

62,22845,730Cash and cash equivalents at end of period

45,79042,77411

Notes to Condensed Quarterly Consolidated Financial Statements(Notes on the Going-concern Assumption)
Six months ended September 30, 2022 (April 1, 2022 - September 30, 2022)
Not applicable(Segment Information)(1) Overview of reportable segments
The Company’s reportable segments are components of the Group about which separate financial information is available.
These segments are subject to periodic review to enable the Company’s board of directors to decide how to allocate
resources and assess performance.
The Group plans comprehensive strategies for the products that it handles in Japan and overseas, and develops a business.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment Chemicals segment andthe Water Treatment Facilities segment.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals and equipment and provides
maintenance services. The Water Treatment Facilities segment manufactures and sells water treatment system and facilities,
supplies ultrapure water, chemical cleaning, tool cleaning, soil and groundwater remediation services, and provides
maintenance services that encompass operation, maintenance, and management of water treatment facilities.

12(2) Information of reportable segments
Six months ended September 30, 2021 (April 1, 2021 - September 30, 2021)(Million yen)
Reportable Segments

Water Treatment Water Treatment
Chemicals
Facilities

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

Total

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)

58,103
240

77,135
380

135,239
620

‒
(620)

135,239‒

58,34377,516

135,860(620)

135,239

7,270

7,460

14,73118

14,749Finance income

263

Finance costs

3,953

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

102

Profit Before Tax

11,161(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

Six months ended September 30, 2022 (April 1, 2022 - September 30, 2022)(Million yen)
Reportable Segments

Water Treatment Water Treatment
Chemicals
Facilities

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

Total

Adjustments(note 1)

Amounts
reported on thecondensed
quarterly
consolidated
statement of
profit or loss
(note 2)

68,396275

92,283407

160,680
682

‒
(682)

160,680‒

68,672

92,690161,363(682)

160,680

8,557

7,799

16,356(10)

16,346

Finance income

1,651

Finance costs

588

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

99

Profit Before Tax

17,509(Notes) 1. Segment income: Amount resulting from eliminations of inter-segment transactions.
2. Segment income is shown at the operating profit level.

13

(Bonds)
Six months ended September 30, 2021 (April 1, 2021 - September 30, 2021)
No bonds were issued or redeemed.
Six months ended September 30, 2022 (April 1, 2022 - September 30, 2022)
The bonds issued are described below.
Name

Issue

Issue date

Total amount issued(million yen)Interest rate(%)

Redemption period

The Company

Second series of
unsecured bonds

May 26, 2022

10,0000.29

May 26, 2027

No bonds were redeemed.
(Finance income)Six months ended September 30, 2021 (April 1, 2021 - September 30, 2021)
Information is omitted because there were no important events.
Six months ended September 30, 2022 (April 1, 2022 - September 30, 2022)
In the first quarter of the fiscal year under review, a gain on derivatives transactions of 1,090 million yen was recorded
in finance income. This is income from a foreign exchange contract that the Company entered into after deciding tounderwrite a capital increase in Kurita America Holdings Inc.
(Additional Information)(Acquisition of additional shares in a subsidiary)
The forward contract on a share transfer concluded between Kurita America Holdings Inc. and the non-controllingshareholders of Pentagon Technologies Group, Inc. was implemented on June 30, 2022, and Kurita America Holdings
acquired an additional 49% stake in Pentagon Technologies Group Inc. As a result, Pentagon Technologies Group Inc.
has become a wholly owned subsidiary of the Group. The acquisition cost increased 553,000 US dollars (75 million yen)in the second quarter under review under the contract terms with the other party.
As the result, the value of additional shares acquired was 161 million US dollars (22,127 million yen). The amount isposted under the purchase of shares of subsidiaries not resulting in change in scope of consolidation in cash flows fromfinancing activities in the condensed quarterly consolidated statement of cash flows. In connection with the posting ofpurchase of shares of subsidiaries, liabilities related to the forward contract concluded with the non-controllingshareholders posted as financial liabilities of 19,613 million yen in the previous fiscal year was eliminated, noncontrolling interests declined 4,615 million yen, and the capital surplus increased 2,743 million yen.

Disclaimer- This document is an English translation of the Earnings Report for the Six Months Ended September 30, 2022 as reference
information primarily for overseas investors. If there are any discrepancies between the Japanese version and the English
version, the Japanese version shall take precedence in all cases.
- This document is not subject to audit.
- The forward-looking statements such as performance forecasts contained in this document are based on information
currently available to the Company and certain assumptions deemed to be reasonable, and are not intended to be acommitment by the Company. Actual performance, etc. may differ due to a variety of factors. See “Forecasts for the
Fiscal Year Ending March 31, 2023” on page 4 of this document for the conditions assumed in the performance forecasts
and the precautions concerning the use of performance forecasts.

14