FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Nine Months Ended December31, 2012
Tokyo, Japan, January 31, 2013—Kurita Water Industries Ltd. (TSE Securities Code6370) announced net sales of 129,662 million yen and net income of 7,213 million yen,or 57.33 yen per share, for the nine months ended December 31, 2012 (April 1, 2012 –December 31, 2012).
Results of Operations
Total consolidated orders for the Kurita Group in the nine months ended December 31,
2012, decreased 5.3% versus the same period of the previous fiscal year to 130,844million yen. Net sales declined 2.8% year on year to 129,662 million yen. In terms ofincome, operating income declined 25.4% year on year to 14,617 million yen, while
ordinary income declined 24.1% to 15,382 million yen. Net income amounted to 7,213
million yen, down 32.9%.
Reviewing markets in which the Kurita Group (Kurita Water Industries and its
consolidated subsidiaries and an equity method affiliate) operates, the businessenvironment in Japan remained severe during the period. Capital investment was
sluggish, and capacity utilization was low in the manufacturing industry, reflecting
declining demand associated with the recovery from the Great East Japan Earthquake, aslowdown in personal spending, and weak exports. Outside Japan, the global downturn
continued with the European economy remaining sluggish and growth in emerging
economies—hitherto the driving force behind the global economy—slowing.
Amid this environment, the Kurita Group strove to increase orders throughcollaboration between operations in Japan and those overseas and the expansion ofproducts and services that help customers enhance productivity and address challenges
such as reducing their environmental footprint.
Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment in the nine-month
period totaled 41,857 million yen, down 1.1% versus the same period of the previous
fiscal year, while sales increased 0.1% to 42,428 million yen. Operating income
declined 9.2% to 6,531 million yen.
In Japan, there was an increase in orders for and sales of process treatment chemicals
for the paper and pulp industries and treatment chemicals for waste incinerationequipment. On the other hand, there was a decline in orders for and sales of mainstay
cooling water treatment chemicals and waste water treatment chemicals due to theconsolidation and halt of operations of customers’ manufacturing plants.
Overseas, both orders and sales declined in Europe, where the economies remained
stagnant, but performance was strong in Asia, especially in China and Thailand. Overallboth orders and sales rose.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment in the nine-month periodamounted to 88,986 million yen, down 7.2% versus the same period of the previousfiscal year. Sales slipped 4.2% to 87,233 million yen, while operating income declined
34.8% to 8,074 million yen.
1

In the electronics industry, orders and sales of maintenance services declined from thesame period of the previous fiscal year due to the restructuring of manufacturing plants
among major customers and lower capacity utilization rates. Orders and sales in theultrapure water supply business fell with a contract expiring. Overseas, while somecustomers postponed or scaled back capital investments, orders from the semiconductorand LCD panel industries in Asia increased.
In general industries, orders for water treatment facilities in the electric powerindustry and maintenance services declined due to the completion of earthquake
recovery-related demand and low capacity utilization at customers’ plants. Sales ofwater treatment facilities for the electric power industry increased with progress inconstruction, while sales of soil remediation services decreased.
Financial Condition
Current assets totaled 137,191 million yen at the end of the third quarter (December 31,2012), a decrease of 7,794 million yen versus the end of the previous fiscal year (March31, 2012). This was mainly a result of declines of 11,577 million yen in trade accounts
receivable and 6,736 million yen in cash and deposits, which outweighed increases of
7,000 million yen in marketable securities and 3,226 million yen in work in process.
The decline in trade accounts receivable was the result of progress in collecting
receivables since the end of the previous fiscal year and strong sales in the second halfof the previous fiscal year. The increase in work in process was mainly the result ofprogress in construction work in the water treatment facilities business.
The decline in cash and deposits and increase in marketable securities was mainly theresult of increased investment in negotiable certificates, which are treated as marketablesecurities.
Noncurrent assets totaled 115,876 million yen at the end of the nine-month period(December 31, 2012), a decline of 10,280 million yen versus the end of the previous
fiscal year. The decline was mainly due to a 10,038 million yen decrease in property,plant and equipment. The decline in property, plant and equipment was due todepreciation of ultrapure water supply business facilities exceeding capital expendituresduring the nine months ended December 31, 2012, the sale of some ultrapure watersupply business facilities, and an impairment loss in relation to the relocation of thehead office.
Current liabilities totaled 31,527 million yen at the end of the period, a decline of10,831 million yen versus the end of the previous fiscal year. This was mainly a resultof declines of 6,613 million yen in income taxes payable and 4,073 million yen in tradeaccounts payable. The decrease in income taxes payable resulted from annual tax returnand interim tax return adjustments. The decline in trade accounts payable was the resultof reduced purchases than in the second half of the previous fiscal year.
Noncurrent liabilities totaled 19,570 million yen at the end of the period, an increaseof 789 million yen versus the end of the previous fiscal year.
Net assets totaled 201,969 million yen at the end of the period, a decrease of 8,033
million yen versus the end of the previous fiscal year. The change mainly reflects a12,216 million yen increase in treasury stock through a tender offer and other means, a2,170 million yen rise in unrealized gains on available-for-sale securities due to upturns
in stock prices after the posting of a valuation loss on investment securities of 2,343
million yen in the second quarter, and a climb of 2,012 million yen in retained earnings
resulting from the posting of 7,213 million yen in net income in the first nine months,
which exceeded dividend payments of 5,193 million yen, the sum of year-end dividends
for the previous fiscal year and interim dividends for the fiscal year under review.

2Outlook for the Fiscal Year Ending March 31, 2013
The Group’s current outlook for the full year ending March 31, 2013 is consistent withthe targets disclosed in “Earnings Report for the Six Months Ended September 30,2012,” which was announced on October 31, 2012.
Other Information(1) Accounting treatment specific to the preparation of quarterly consolidated financial
statementsa. Tax expense
The Company calculates tax expense by producing a reasonable estimate of theeffective tax rate after applying tax-effect accounting to income before income taxes
and minority interests for the fiscal year and then multiplying quarterly income before
income taxes and minority interests by this estimated effective tax rate.
(2) Changes in accounting policy, changes in accounting estimates, and retrospective
restatement
Changes in accounting policy hard to distinguish from changes in accounting estimates
In response to Japan's recent corporate tax law amendments and effective from the firstquarter of the fiscal year ending March 31, 2013, the method which Kurita Water
Industries Ltd. and its domestic consolidated subsidiaries use for depreciation of
noncurrent assets acquired on or after April 1, 2012 will be adjusted to reflect therevised corporate tax code. Impact on earnings for the nine months ended December 31,
2012 is expected to be minimal.

3

Financial Statements — Consolidated
Balance Sheet — Consolidated(Million 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 - trade
Income taxes payable
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
Accumulated other comprehensive income
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

As ofMarch 31, 2012
Amount

As ofDecember 31, 2012
Amount28,902
7,045
59,31140,500
1,598
2,715
1,209
3,761
(58)
144,985

22,1666,584
47,73447,500
1,364
5,941
1,480
4,464
(45)
137,191

28,35544,77925,23398,368
1,683

24,46138,01025,85888,3301,706

26,443(339)
26,103
126,156
271,141

26,177(338)
25,839115,876
253,067

1,701
19,6207,045
3,434
10,55542,358

1,378
15,547432
2,332
11,836
31,527

10,335
168
8,277
18,781
61,13910,693596
8,280
19,57051,09813,45011,426
196,541(9,642)
211,776

13,45011,426
198,553(21,858)
201,572252(564)(2,572)(2,884)
1,110210,002
271,141

2,422
(564)
(2,616)(758)
1,156
201,969
253,0674

Statements of Income and Comprehensive Income — Consolidated
Statement of Income(Million yen)

Nine months ended
December 31, 2011
AmountNet 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 andaffiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Gain on discontinuation of approved retirement annuity
system (closed-type)
Total extraordinary gains
Extraordinary losses
Impairment losses
Provision for building demolition expenses
Valuation loss on investment securities
Disaster losses and disaster recovery expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in earnings of consolidated subsidiaries
Net income

Nine months ended
December 31, 2012
Amount133,404

129,662

86,76886,61046,63643,052

27,04928,435

19,586

14,617

107

108

353

347

265

271

134

197

860

925

69

61

121

98

191

159

20,255

15,382-

1,048-

137-

1,186-

1,001

-

434

608

2,343

35-

644

3,778

19,611

12,790

8,825

5,529

10,786

7,260

31

47

10,754

7,213

5

Statement of Comprehensive Income(Million yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available-for-sale securities
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of theparent company
Comprehensive income attributable to minority interests

Nine months ended
December 31, 2011
AmountNine months ended
December 31, 2012
Amount10,786

7,260(1,758)

2,168

184

-(577)(54)(57)

22(2,207)

2,136

8,578

9,396

8,588

9,338

(10)

57

6

Notes on the Going-concern Assumption
Nine months ended December 31, 2012 (April 1, 2012 – December 31, 2012)
Not applicable

Notes to Consolidated Financial Statements(Concerning quarterly consolidated statement of income)*1 Impairment loss
For the first nine months of the fiscal year ending March 31, 2013 (April 1, 2012 – December 31, 2012)
The Group has booked an impairment loss for the following asset group.
Use

Category

Location

Impairment loss

Idle assets

Buildings andTokyo, Shinjuku Ward

1,001 million yen

structures, etc.
The Company categorizes business assets by type of business structure, and leased assets and idle assets
by individual property type. In the first nine months of the fiscal year, though there were no indications ofimpairment to business assets or leased assets, land, buildings, and structures, etc. owned by the company
in Tokyo, Shinjuku Ward became idle as a result of the relocation of the head office. Among these assets,
the book value of the buildings and structures, etc. was reduced to the residual value due to asset
deterioration and the company’s recognition of its inability to recover book value. In conjunction with
this, the company booked an impairment loss of 1,001 million yen as an extraordinary loss.
*2 Booking of provision for building demolition expenses
In the first nine months of the fiscal year ending March 31, 2013, the company resolved to demolish its
former head office building (Tokyo, Shinjuku Ward). In conjunction with the decision, the company has
made a reasonable estimate of the cost and booked a provision for building demolition expenses of 434
million yen as an extraordinary loss.

Segment Information
1. Sales and income by reportable segment
Nine months ended December 31, 2011 (April 1, 2011 – December 31, 2011)(Million yen)

Reportable Segments

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

Water
Treatment
Chemicals

Water
Treatment
Facilities

42,393265
42,658
7,194

91,011
198
91,20912,392

Total
133,404463
133,868
19,587

Amounts
reported on
the quarterly
statements of
Adjustments
income(note 1)
(note 2)–(463)(463)(0)

133,404–
133,404
19,586

7

Nine months ended December 31, 2012 (April 1, 2012 – December 31, 2012)(Million yen)

Reportable Segment

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

Water
Treatment
Chemicals

Water
Treatment
Facilities

42,428236
42,6646,531

87,233115
87,349
8,074

Total

Amounts
reported on
the quarterly
statements ofAdjustments
income(note 1)
(note 2)

129,662351
130,014
14,605

–
(351)
(351)
11

129,662–
129,662
14,617

Notes:
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.

2. Impairment loss on noncurrent assets by reportable segment
Impairment loss on idle noncurrent assets was recognized in the nine months ended
December 31, 2012. This had no effect on each segment.

Notes on Significant Changes in Shareholders’ Equity
Nine months ended December 31, 2012 (April 1, 2012 – December 31, 2012)
The Company resolved at the Board of Directors meeting held on October 31, 2012 to acquire treasury
stock specifically by means of tender offer (“Tender Offer”) pursuant to Article 156, Paragraph 1,
applied with the replacement of certain terms as provided in Article 165, Paragraph 3 of the Company
Act and the provisions of its Articles of Association, and acquired 7,493,655 common shares for 12,214
million yen. As a result, the value of treasury stock increased 12,216 million yen, including the value offractional shares acquired, during the first nine months, to 21,858 million yen at the end of the first ninemonths.

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

Business segment
Water Treatment Chemicals

Nine months ended December 312011
2012%
AmountAmount42,33030.6
41,857%32.0

Water Treatment Facilities

95,86469.4

88,986

68.0

Total

138,194100.0

130,844100.0(2) Net Sales(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2011
2012
Amount%Amount42,39331.8
42,428%32.7

Water Treatment Facilities

91,011

68.2

87,233

67.3

Total

133,404

100.0

129,662100.0(3) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2011
2012
Amount%Amount
853
15.8
1,009

%
23.8

Water Treatment Facilities

4,562

84.2

3,237

76.2

Total

5,415

100.0

4,247

100.0

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

Business segment
Water Treatment Chemicals

Nine months ended December 31,
2011
2012
Amount%Amount
867
7.6
816%
7.5

Water Treatment Facilities

10,615

92.4

10,101

92.5

Total

11,482100.0

10,918100.0

9