FOR IMMEDIATE RELEASE

Kurita Water Industries Reports Earnings for the Six Months Ended
September 30, 2009
Tokyo, Japan, October 30, 2009—Kurita Water Industries Ltd. (TSE Security Code6370) announced net sales of 83,815 million yen for the six months ended September 30,
2009 (April 1 – September 30, 2009), and net income of 8,142 million yen, or 63.29 yen
per share.
Results of Operations
Total consolidated orders for the Kurita Group in the six months ended September 30,
2009, were down 17.5% versus the year-ago period (six months ended September 30,2008) to 88,101 million yen, while net sales declined 12.4% to 83,815 million yen.
Efforts to curtail costs helped the Group achieve operating income of 12,878 million,down 2.5% versus the year-ago period, ordinary income of 13,166 million yen, down
3.6%, and net income of 8,142 million yen, up 8.9%.
Markets in which the Kurita Group operates remained extremely challenging during
the six months ended September 30, 2009. Despite some signs of improvement mainlyin Asian markets, capital expenditure fell sharply in the electronics industry and generalindustries, both in Japan and overseas, and customers’ capacity utilization remained low.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 26,775 million
yen, down 14.2% versus the year-ago period, while sales fell 13.1% to 26,665 million
yen. Operating income declined 16.1% to 4,230 million yen.
During the six months ended September 30, 2009, the Group bolstered sales efforts bystrengthening alliances between Group companies, both in Japan and overseas, andpursued order bookings based on a consultative sales approach to help customers
successfully meet challenges such as productivity enhancement and environmental
mitigation.
In Japan, overall orders fell compared with the year-ago period, including those for
the Group’s mainstay boiler water treatment chemicals, cooling water treatment
chemicals, and wastewater treatment chemicals, due to a decline in customers’ capacity
utilization.
Overseas orders also decreased amid the global economic slowdown.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 61,325 million yen,down 18.8% versus the year-ago period, while sales fell 12.1% to 57,150 million yen.
Operating income rose 5.9% to 8,647 million yen on the contribution to earnings fromservice businesses.
During the six months ended September 30, 2009, the Group worked to generate
profits by focusing on service businesses and secure orders by stepping up consultative
sales efforts aimed at key customers.
1

In the electronics industry, orders for the ultrapure water supply business were up
markedly versus the year-ago period, but orders for the Group’s ultrapure waterproduction systems fell substantially as semiconductor- and LCD-related capital
expenditures remained sluggish. Orders for the tool-cleaning service business also
dropped considerably due to customers’ lower capacity utilization. Orders for water
treatment facilities for general industries decreased markedly versus the year-ago period
due to a fall in capital expenditure, and orders for maintenance services also plunged
because of diminished capacity utilization at client companies.
Outlook for the Fiscal Year Ending March 31, 2010
The Group believes that it is on course to achieve its earnings forecasts for the full fiscal
year ending March 31, 2010, detailed in its consolidated earnings release (and inJapanese in the kessan tanshin) for the fiscal year ended March 31, 2009, issued onApril 28, 2009.
Financial Condition
Current assets totaled 95,718 million yen at the end of the fiscal second quarter(September 30, 2009), a decline of 2,971 million yen versus the end of the previous
fiscal year (March 31, 2009). This was mainly due to sharp decreases in cash anddeposits of 11,425 million yen and trade accounts receivable of 10,170 million yen,which were partly offset by increases in marketable securities of 16,267 million yen andwork in process of 2,133 million yen. Despite steady collection of trade accounts
receivable, cash and deposits declined because of an increase in certificates of deposit,
which are recorded as marketable securities. The decline in trade accounts receivable
was due to both increased collections as well as a decrease in sales. The increase inmarketable securities reflects the increase in certificates of deposit, while the increase inwork in process was due to the progress of ongoing works in the water treatment
facilities business.
Noncurrent assets totaled 144,511 million yen at the end of the second quarter, adecline of 2,206 million yen compared with the end of the previous fiscal year. This
mainly reflects a 3,421 million yen decrease in property, plant and equipment, whichmore than offset a 1,323 million yen increase in the “Investments and other assets”
account reflecting increased market values of investment securities held by the Group.
Property, plant and equipment declined because depreciation on large-scale capital
expenditures executed in previous years exceeded capital expenditure during the firsttwo quarters.
Current liabilities totaled 35,281 million yen at the end of the second quarter, adecline of 12,654 million yen versus the end of the previous fiscal year. This was
mainly due to decreases of 2,440 million yen in trade accounts payable and 11,431
million yen in “Other” current liabilities, which more than offset a 1,656 million yen
increase in income taxes payable. The increase in income taxes payable reflects
recorded taxable income. The decline in trade accounts payable was due to a reduction
in purchases in line with diminished production. The decrease in “Other” current
liabilities was a result of the payment of accrued expenses associated with facilities forthe ultrapure water supply business acquired in the previous fiscal year.
Noncurrent liabilities totaled 18,537 million yen at the end of the second quarter, aslight decrease of 307 million yen versus the end of the previous fiscal year.
Net assets were 186,410 million yen at the end of the second quarter, an increase of7,784 million yen versus the end of the previous fiscal year. Despite dividend paymentsof 2,187 million yen, positive net income for the six months ended September 30, 2009,2

meant that retained earnings rose by 8,142 million yen. Valuation and translation
adjustments increased by 1,825 million yen due to a rise in unrealized gains onavailable-for-sale securities reflecting higher market values of investment securities
held by the Group.
About the Kurita GroupThe Kurita Group provides a wide range of products, technologies, and maintenanceservices related to water treatment. The two core lines of the Group’s business consistof: 1) water treatment chemicals used for boiler water, cooling water, and wastewaterand in manufacturing processes; and 2) water treatment facilities such as ultrapure waterproduction systems and wastewater treatment facilities. The scope of both business lines
includes production, sales, and maintenance services. For additional information about
the Kurita Group, please visit the Company’s website at:
http://www.kurita.co.jp/english/.
Forward-Looking Statements
This news release contains various forward-looking statements that are based on current
expectations and assumptions regarding future events. Except for the historicalinformation contained herein, all figures and statements with respect to future
performance, projections, and business plans of the Kurita Group constituteforward-looking statements. Although Kurita believes that its expectations andassumptions are reasonable, actual results and trends in the Group’s performance could
differ materially from those expressed or implied by such figures and statements due torisks and uncertainties.

3

Financial Statements — Consolidated
Balance Sheets — Consolidated(millions of yen)

AssetsCurrent assets
Cash and deposits
Notes 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
Investments and other assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - tradeIncome taxes payable
Accrued employees’ bonuses
Other allowances
Other
Total current liabilities
Noncurrent liabilities
Accrued employees’ retirement benefits
Other allowances
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total valuation and translation adjustmentsMinority interests
Total net assets
Total liabilities and net assets

As of
September 30, 2009
AmountAs ofMarch 31, 2009
Amount14,6368,700
41,943
17,300
1,508
6,426
1,356
3,996
(149)
95,71826,061
8,284
52,113
1,033
1,414
4,293
1,440
4,188
(140)
98,68937,97455,456
29,210122,642
2,177

39,29050,82135,950126,063
2,285

19,819(127)
19,691
144,511240,229

18,520(152)
18,368
146,717
245,406

1,239
14,570
5,437
2,691
833
10,50835,281

1,820
17,010
3,781
2,372
1,011
21,93947,935

8,807
446
9,284
18,53753,818

8,644
738
9,462
18,844
66,77913,45011,426
165,747(4,852)
185,772

13,45011,426
159,792(4,847)
179,821

1,431
(750)
(1,386)(705)
1,344
186,410240,229170(750)(1,950)(2,530)
1,335
178,626
245,406

4

Statements of Income — Consolidated(millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and directors’ remuneration
Provision for employees’ bonuses
R&D expenses
Other
Total 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
Loss on disposal of properties
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain from cancellation of contracts
Total extraordinary income
Extraordinary losses
Valuation loss on investment securities
Loss on liquidation of businessTotal extraordinary losses
Income before income taxes and minority interests
Income taxes
Minority interests in earnings of consolidated
subsidiaries
Net income

Six months ended
September 30, 2009
Amount83,81553,881
29,933Six months ended
September 30, 2008
Amount
95,67164,01931,652

6,004
1,332
1,958
7,759
17,055
12,878

6,024
1,386
2,404
8,632
18,448
13,203

46
128

146
165

131

-

136
443

260
572

17
138
155
13,166

19
29
72
120
13,655

679
679

-

136
136
13,709
5,514

317
317
13,337
5,667

53

191

8,142

7,478

5

Statements of Cash Flows — Consolidated(millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowances(Increase) decrease in notes and accounts receivable trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Income taxes paid
Other (net)Net cash provided by (used in) operating activities

Six months
ended
September 30,
2009
AmountSix months
ended
September 30,
2008
Amount13,7097,468(24)

13,337
5,346
531

9,284

4,698

(1,970)(2,587)(3,501)(2,401)(4,011)
1,326
22,280(8,643)525
10,806(2,099)(3,497)

Cash flows from investing activities
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketablesecurities
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of investment securities
Proceeds from liquidation of subsidiaries
Other payments
Other proceeds
Net cash provided by (used in) investing activities

2,916

4,698

(15,487)
42(5)
(995)
1,051
(14,579)(11,155)25(5)1,451(735)177(9,040)Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term borrowings
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by (used in) financing activities

40
(214)
(4)
(2,182)(78)(2,438)

(50)
(7)
(12)
(2,184)(44)(2,300)

814

(320)

6,075

(854)

25,26230,36060-

31,39829,505

Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiod
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at the end of the period6Segment Information
Business segment information
Six months ended September 30, 2009 (April 1, 2009 – September 30, 2009)(millions of yen)Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

Water
treatmentchemicals

Watertreatment
facilities

26,665
195
26,8604,230

57,15042
57,192
8,647

Total
83,815237
84,052
12,878Eliminationor corporate
(237)
(237)
-Consolidated
83,81583,815
12,878Six months ended September 30, 2008 (April 1, 2008 – September 30, 2008)(millions of yen)Water
treatmentchemicals

Watertreatment
facilities

Total

Eliminationor corporate

Consolidated
Sales(1) Sales to outside customers
30,68264,98995,671
95,671(2) Inter-segment sales
13557
193
(193)
Total
30,81765,047
95,864(193)
95,671
Operating income
5,043
8,165
13,208(4)
13,203
Notes:
1. Effective the first quarter of the fiscal year ending March 31, 2010, the Company adopted theAccounting Standard for Construction Contracts and its accompanying Guidance on theAccounting Standard for Construction Contracts. Due to this change, for the six months ended
September 31, 2009, sales were 1,231 million yen higher and operating income was 348 million
yen higher than they would have been under the previous accounting method.

Geographical segment information
Six months ended September 30, 2009 (April 1, 2009 – September 30, 2009)(millions of yen)

Japan
Sales
(1) Sales to outside customers(2) Inter-segment sales
Total
Operating income

77,018750
77,76912,160

Otherregions
6,796
140
6,937
661

Total83,815
891
84,707
12,821Eliminationor corporate(891)
(891)
57

Consolidated
83,81583,815
12,878Six months ended September 30, 2008 (April 1, 2008 – September 30, 2008)(millions of yen)

Otherregions

Eliminationor corporate

Japan
Total
Consolidated
Sales(1) Sales to outside customers
86,176
9,494
95,671
95,671(2) Inter-segment sales
993
59
1,053
(1,053)
Total
87,1709,554
96,724(1,053)
95,671
Operating income
12,040979
13,019184
13,203
Notes:
1. Geographic segmentation is based on geographic proximity.
2. “Other regions” in the above table consists of Asia and other areas.
3. Effective the first quarter of the fiscal year ending March 31, 2010, the Company adopted theAccounting Standard for Construction Contracts and its accompanying Guidance on theAccounting Standard for Construction Contracts. Due to this change, for the six months ended
September 31, 2009, sales in Japan were 1,231 million yen higher and operating income for Japanwas 348 million yen higher than they would have been under the previous accounting method.

7

Overseas sales
Six months ended September 30, 2009 (April 1, 2009 – September 30, 2009)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated salesAsia5,243-

North
America
781-

Europe683-

Other
1,042-

Total
7,751
83,815

6.3%

0.9%

0.8%

1.2%

9.2%

Six months ended September 30, 2008 (April 1, 2008 – September 30, 2008)(millions of yen)

I. Overseas sales
II. Consolidated net sales
III. Ratio of overseas sales to total
consolidated sales

Asia
9,472-

North
America502-

Europe840-

Other1,691-

Total
12,507
95,671

9.9%

0.5%

0.9%

1.8%

13.1%

Notes:
1. Geographic segmentation is based on geographic proximity.
2. Major countries or regions in each category are as follows:(1) Asia:
Korea, China, Taiwan, Singapore, Indonesia, and Thailand(2) North America:
U.S.A.
(3) Europe:
Germany(4) Other areas:
Brazil3. “Overseas sales” comprises sales by the Company and its consolidated subsidiaries in countries orregions other than Japan.

Net Sales, Order IntakeNet Sales(millions of yen)

Business segment
Water treatment chemicals

Six months ended September 30,
2009
2008
Amount%Amount26,66531.8
30,682%
32.1

Water treatment facilities

57,15068.2

64,989

67.9

Total

83,815100.0

95,671

100.0

Order Intake(millions of yen)

Business segment
Water treatment chemicals

Six months ended September 30,
2009
2008
Amount%Amount26,77530.4
31,198%29.2

Water treatment facilities

61,325

69.6

75,557

70.8

Total

88,101

100.0

106,755

100.08