Earnings for the Six Months Ended September 30, 2008
(First Half of the Fiscal Year Ending March 31, 2009)

Kurita Water Industries Ltd.
( Stock code : 6370 )November 6, 2008

Table of Contents

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009

Ⅲ. Reference Materials

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009

【 1 】 Financial Highlights【 2 】 Factors Behind Consolidated Financial Results【 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【 9 】 Capital Expenditures, Depreciation, and R&D Expenses【10】 Financial Condition

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009
【1】 Financial Highlights(Billions of Yen)

03/2008

03/2009

03/2009First-halfresults

First-halfprojectionsFirst-halfresults

Orders

108.8

107.3

106.8

- 1.9％Net Sales

94.1

92.8

95.7

+ 1.7％

Operating Income

13.5

12.9

13.2

- 2.2％

Ordinary Income

14.1

13.1

13.7

- 2.9％Net Income

7.5

7.2

7.5

- 0.6％

Year-on-yearchange1

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009
【2】 Factors Behind Consolidated Financial Results

Water Treatment Chemicals Business Solid sales growth in Japan and overseas
 Greater-than-expected rise in raw materials prices

Water Treatment Facilities Business Sudden cooling of demand in electronics industries
 Ultrapure water supply business expanded steadily Improved earnings from sales to general industries2

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009
【3】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals

Water treatment facilities

Total*Orders(Billions of Yen)
100

500

108.8
29.7

Sales
106.8 107.3
31.2

30.4

79.1

75.6

76.903/2008
First-half results

03/2009First-half results(Billions of Yen)
100

94.1

95.7

92.8

28.9

30.7

30.0

65.3

65.0

62.8

03/2008
First-half results

03/2009First-half results

500Operating Income(Billions of Yen)
16

Operating Income Margin

13.5

13.2

12.9

5.0

5.0

5.3

8(%)
1817.316.4 17.615

14.3
8.50

denotes initial projections

03/2008
First-half results

8.27.603/2009
First-half results

13.01203/2008
First-half results

13.8 13.8
12.6 12.0
03/2009First-half results

3Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009【4】 Water treatment chemicals
Orders and Sales
Orders*Operating Income and Operating Income Margin

Sales

Operating income

denotes initial projections

Operating income margin*(Billions of Yen)

(Billions of Yen)

30

617.3

denotes initial projections
(%)

16.4

18

17.6

15

29.7 28.9

31.2 30.7
30.4

395.030.0

5.0
5.3003/2008
First-half results

03/2009First-half results【Major areas of growth】
 Japan: Cooling water treatment chemicals,
paper & pulp and process treatment chemicals
 Overseas: Operating subsidiaries

003/2008
First-half results

03/2009First-half results0【Major determinants of change】
 Higher revenues in Japan and overseas
 Increased SG&A expenses
 Rising raw materials prices4

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009【5】 Water treatment facilities (for the electronics industry)
Orders and SalesOrders*Operating Income and Operating Income Margin

Sales

Operating income

denotes initial projections

Operating income margin*(Billions of Yen)

(Billions of Yen)

50

8denotes initial projections
(%)

17.8

20

17.4
17.2

25

44.5 40.2

4

39.7 37.6
44.0003/2008
First-half results

7.2【 Determinants of orders/sales growth or decline】
 Lower orders/sales for hardware in Japan andoverseas
 Growth in orders/sales for ultrapure water supply
and tool cleaning services

6.5
6.4

37.103/2009
First-half results

10003/2008
First-half results

03/2009First-half results0【 Determinants of income growth or decline】
 Lower income from hardware in Japan andoverseas
 Revenue growth in the ultrapure watersupply business5Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009
【6】 Water treatment facilities (for general industries)
Orders and Sales
Orders*Operating Income and Operating Income MarginSales

Operating income

denotes initial projections*(Billions of Yen)

(Billions of Yen)

40

220

25.1

32.9

27.403/2008
First-half results

(%)

5.9
5.3

4.603/2009
First-half results【 Major areas of orders growth】
 Maintenance services063

1.3

25.7
0

denotes initial projections

135.9

34.6

Operating income margin

1.6
1.2

03/2008
03/2009First-half results First-half results0【 Major determinants of income growth】
 Revenue growth【 Major areas of sales growth】
 Soil remediation, maintenance services6

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009
【7】 Service Business Revenue
Water treatment chemicals
Water treatment facilities (services)
Water treatment facilities (hardware)

Service Business Revenue
in the Water Treatment Facilities Business(Billions of Yen)

48.8(+4.9)50(Billions of Yen)

100

94.1

43.9

95.7

10.2

Ultrapurewater supply
business

7.5

Tool cleaning

4.8

6.6

Soilremediation

24.7

24.6

Maintenance, etc.

03/2008
First-half results

03/2009First-half results

7.4
28.9

30.7

7.0
25

50

43.9

0

48.8

21.3

16.2

03/2008
First-half results

03/2009First-half results

07

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009【8】 Overseas Businesses
Sales by Region

Asia

N. America

Sales by Overseas Business Segment

EuropeOther(Billions of Yen)

14

Water treatment facilities(Billions of Yen)

13.2
1.10.9
2.0

12.5

14

1.7
0.8
0.5

7

13.2

12.5

5.1
5.97

9.2

0

Water treatment chemicals

03/2008
First-half results

9.503/2009
First-half results

8.1003/2008
First-half results

6.603/2009
First-half results
8

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009
【9】 Capital Expenditures, Depreciation, and R&D Expenses
Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

Capital expenditures(excl. ultrapurewater supply business)

Depreciation

31.6(Billions of Yen)

R&D Expenses

R&D Expenses

Percentage of net sales(Billions of Yen)

(%)

4430

2.4
15.915

30.2

213.7

0

2.2 3.803/2008
First-half results

22.2

1.4

2.5

2.4

4.903/2009
First-half results

003/2008
03/2009First-half results First-half results

09

Ⅰ. First-half Results for the Fiscal Year Ending March 31, 2009【10】 Financial Condition

Assets231.5

Liabilities and Net Assets(Billions of Yen)

(Billions of Yen)

250.3

250.3

32.5
( - 1.8)

34.3

Cash, deposits
andMarketablesecurities

231.5
60.4

85.1
87.3

75.4

Liabilities( + 15.0)

Other current
assets( - 2.2)

82.0

108.5

Tangible
fixed assets

171.1

174.9

Net assets( + 26.6)

25.5

21.8( - 3.6)

Mar. 31, 2008

Sep. 30, 2008

Other fixedassets( + 3.8)

Mar. 31, 2008

Sep. 30, 200810

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009
【 1 】 Key Assumptions【 2 】 Overview【 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 】 Ultrapure Water Supply Business (Trends)【 9 】 Expand Ultrapure Water Supply Business【10】 Overseas Businesses【11】 Capital Expenditures, Depreciation, and R&D Expenses【12】 Dividend Policy

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009
【1】 Key Assumptions

Water Treatment Chemicals Business Decline in operating rates in the domestic materials sector
 Client companies: Strong continued demands for productivity improvements,
energy-use reductions, environmental efforts
 Slowing growth in Asian and emerging economies
 Continued rise of raw materials prices

Water Treatment Facilities Business Continued expansion of the ultrapure water supply business Slowing capital expenditure in domestic and overseas electronics industries
 Slowing capital expenditure in general domestic industries11Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009
【2】 Overview(Billions of Yen)
03/2008
Actual03/2009
Current Projection

Year-on-yearchangeOrders

208.7

218.0

+ 4.5%Net Sales

204.9

213.0

+ 4.0%

Operating Income

30.5

32.0

+ 5.0%

Ordinary Income

31.2

32.3

+ 3.4%Net Income18.318.5+ 1.1%

12Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009
【3】 Orders, Sales, Operating Income, and Operating Income Margin
Water treatment chemicals

Water treatment facilities

Total*Orders(Billions of Yen)
200

Sales

208.7

218.0 218.0

59.0

62.0

149.7

156.0 157.2

60.8

100003/2008
Actual30.59.5003/2009
Projection

(%)

32.0

32.0

9.6

10.1

204.9

213.0 213.0

58.6

62.0

146.2

151.0 152.3

60.7

20.9

22.403/2008
Actual03/2009
Projection03/2008
Actual03/2009
Projection

Operating Income Margin

1716.215150(Billions of Yen)200100

Operating Income(Billions of Yen)30

denotes initial projections

21.91314.9
14.303/2008
Actual15.5 16.6
15.0 15.0
14.8 14.403/2009
Projection

13Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009【4】 Water treatment chemicals
Orders and Sales
Orders*Operating Income and Operating Income Margin

Sales

Operating income

denotes initial projections

Operating income margin*

denotes initial projections(Billions of Yen)

(Billions of Yen)

(%)

60

1020

16.2

15.5
16.6

30

59.0 58.6

62.0 62.0
60.8003/2008
Actual59.560.703/2009
Projection【 Major areas of growth】
 Japan: Cooling water treatment chemicals,
process treatment chemicals
 Overseas: Asia, Brazil

109.6
10.1

003/2008
Actual03/2009
Projection0【 Major determinants of change】
 Higher revenues in Japan and overseas
 Increased SG&A expenses
 Rising raw materials prices
14

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009【5】 Water treatment facilities (for the electronics industry)
Orders and Sales
Orders*Operating Income and Operating Income MarginSales

Operating income

denotes initial projections*(Billions of Yen)

(Billions of Yen)

100205088.1 91.2

90.4 89.5
95.0003/2008
ActualOperating income margin

18.6【 Major determinants of change】
 Declines in hardware in Japan Growth of the ultrapure water supply business

19.4
19.0

10

16.9

92.403/2009
Projection

denotes initial projections

17.4

(%)

2010

17.5

003/2008
Actual03/2009
Projection0【 Major determinants of change】
 Lower revenues from hardware in Japanand overseas
 Higher revenues from the ultrapure watersupply business15

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009
【6】 Water treatment facilities (for general industries)
Orders and Sales
Orders*Operating Income and Operating Income Margin
Sales

Operating income

denotes initial projections

Operating income margin*

denotes initial projections(Billions of Yen)

(Billions of Yen)(%)

706108.1
7.3

350

61.5

55.103/2008
Actual65.6 61.5
62.2

3【Main areas of orders/sales growth】
 Iron and steel, maintenance services

55.0
4.0

59.903/2009
Projection

7.4003/2008
Actual

4.403/2009
Projection0【Major determinants of income growth】
 Increased revenues from hardware
and maintenance services
16Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009
【7】 Service Business Revenue

Water treatment facilities (services)

Service Business Revenue
in the Water Treatment Facilities Business

Water treatment facilities (hardware)*

Water treatment chemicals

104.4 104.4(+10.9)(Billions of Yen)
(Billions of Yen)

204.9

213.0

100

200

58.6

denotes initial projections

93.5
24.0

24.0

Ultrapurewater supply
business

15.0

15.0

Tool cleaning

10.5

10.5

Soilremediation

54.9

54.9

Maintenance, etc.

16.8

62.0 60.7

14.4
10.4
50100

93.5

104.4 104.4
51.9

52.8
003/2008
Actual46.6 47.903/2009
Projection

003/2008
Actual03/2009
Projection17

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009
【8】 Ultrapure Water Supply Business (Trends)【 to domestic large-scale LCD plants 】【 to domestic large-scale plasma display panel (PDP) plants 】【 to domestic large-scale LCD plants 】【 to domestic semiconductor plants 】【 to domestic wafer plants 】【 to domestic semiconductor plants 】【 to domestic large-scale LCDplants 】【 to LCD plants in Singapore 】

03/2002

03/2003

03/2004

03/2005

03/2006

03/2007

03/200803/200918

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009【9】 Expand Ultrapure Water Supply Business
Capital Expenditures andTotal Cumulative Investment

Sales
*

Capital expenditure(left axis)

denotes initial projections

Total cumulative investment(right axis)*
denotes initial projections(Billions of Yen)

60

(Billions of Yen)

(Billions of Yen)

120

24

109.4

106.4

59.4
30

60

03/2006
Actual

24.0

16.8

47.0

23.8

0

24.0

50.0

39.6

11.9

12

15.7

9.8

19.8

03/2007 03/2008 03/2009
ActualActual Projection

5.70003/2006
Actual03/2007
Actual03/2008 03/2009
Actual Projection

19Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009【10】 Overseas Businesses
Sales by Region

Asia(Billions of Yen)

30

Sales by Overseas Business Segment

N. AmericaEurope
Other*denotes initial projections

29.5
2.2
1.3
3.4

31.3

31.3 32.5(Billions of Yen)

3.1
1.7
2.8

3.1 2.7
1.7 1.9
1.9 2.6

30

15

31.3

31.3 32.5

8.9

11.2

12.5 12.5

20.6

20.1

18.8 20.0

03/2007
Actual03/2008
Actual29.5

1522.60

Water treatment chemicals Water treatment facilities*
denotes initial projections

03/2007
Actual23.703/2008
Actual24.6 25.303/2009
Projection

003/2009
Projection20

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009【11】 Capital Expenditures, Depreciation, and R&D Expenses
Capital Expenditures and Depreciation

Capital expenditures(ultrapure watersupply business)

Capital expenditures(excl. ultrapure
water supply business)*

Depreciation

R&D Expenses

Percentage of net sales*

denotes initial projections

denotes initial projections(Billions of Yen)60

R&D Expenses

55.0 51.0(Billions of Yen)

(%)

64

4.8

4.8

2.2

2.2

2.203/2008
Actual03/2009
Projection

4.630

50.0 47.0

23.3

32

19.80

3.58.503/2008
Actual

4.0 5.0

11.7 11.503/2009
Projection0021

Ⅱ. Full-year Business Plan for the Fiscal Year Ending March 31, 2009【12】 Dividend Policy
(Yen)

40

32
28
20

22
18+434+2+6+4+2003/2005
Actual03/2006
Actual03/2007
Actual03/2008
Actual03/2009
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.

22Reference Materials

Reference Materials
Analysis of Changes in First-half Operating Income for the Fiscal Year Ending March 31, 2009

(Billions of Yen)

Rise in prices of chemicals raw
materials resulting from the surge
in crude oil prices

20

+ 0.8
13.5

- 0.6

- 0.3

13.2

- 0.2

10
 Increase in personnel
expenses Increase in advertising andpromotional expenses
 Increase in research anddevelopment expenses

00.0
Higher cost
03/2008of rawFirst-half resultsmaterials

0.00.00.0

HigherSG&A
expenses

Effect ofhigher
cost ratio*

Effect ofhigher
income*03/2009First-half results* Effects of improved cost ratio and higher income are calculated using the gross profit margin.
“Cost ratio” refers to the sales-to-cost ratio.

23

Kurita Water Industries Ltd.
■ U R L ■http://www.kurita.jp/■ 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.