Kurita Water Industries Ltd.
Results Presentation for the First Quarterof the Year Ending March 31, 2017
(Securities code: 6370)

August 1, 2016

Results for the 1Q of the Year Ending March 2017

(Billions of Yen)
Fiscal Year toMarch 2015
First Quarter Actual(After reflecting PPA*)Fiscal Year toMarch 2016
First Quarter ActualYear-onYearChange

Fiscal Year toMarch 2015
First Quarter Actual(Before reflecting PPA*)

Orders

54.0

56.3

+4.3%

54.0

Net Sales

42.5

46.4

+9.2%

42.5

Operating Income

3.1

3.7

+19.6%

3.6

Ordinary Income

3.5

3.8

+7.6%

4.0

Net income attributableto owners of parent

2.3

2.6

+12.6%

2.6* PPA stands for “Purchase Price Allocation,” which means to reallocate the acquisition cost of acquired business by evaluating its assets and liabilities at fair value.

 Orders increased primarily in the Water Treatment Chemicals business due to an increase in the period toconsolidate acquired business in Europe by one month.
 Net sales rose in both the Water Treatment Chemicals and the Water Treatment Facilities businesses.
 Income was revised by incorporating the impact of PPA retroactively to the first quarter of the previous fiscal year.

1Results for the 1Q of the Year Ending March 2017

Water treatment chemicals

Water treatment facilities

Orders(Billions of Yen)

60

54.0
19.3

Sales
56.3

(Billions of Yen)

60

42.5

21.0

30

030

34.7

35.3

06/2015

06/20160

Operating Income(Billions of Yen)

4

20

46.4

18.4

20.1

24.1

26.2

06/2015

06/2016

Operating Income Margin
3.7

3.1
1.3

Total(%)

10

9.3

1.9
8

1.8

1.906/2015

06/2016

6

7.4
7.4
7.3
06/2015

8.1

7.2
06/20162

Results for the 1Q of the Year Ending March 2017

(Billions of Yen)

Orders22 Domestic orders increased, reflecting a moderate recovery incustomers’ capacity utilization.
11019.3

21.006/2015

06/2016

 Overseas, the period to consolidate acquired business in Europe
increased by one month.

(Billions of Yen)

Sales

22 Ditto
110

18.4

20.106/2015

06/2016(Billions of Yen)

(%)

2.6

109.3
1.3

7.3
1.3

0.006/2015

51.906/2016

Operating Income Operating income increased partly in the absence of temporary
cost and expenses associated with PPA, in addition to thepositive effect of higher sales.

0Operating income margin3Results for the 1Q of the Year Ending March 2017

(Billions of Yen)

Orders20

 Orders for maintenance services in Japan declined due to weak
demand for smartphones.
10018.4

16.906/2015

06/2016

 Orders for hardware overseas declined year on year, compared
to a strong performance last year.

(Billions of Yen)

Sales

20

100

14.9

16.3

06/2015

06/2016(Billions of Yen)

(%)

3.4

16

15.2

8

2.3

2.3

06/2015

06/2016

Operating Income Income improved in overseas businesses.

14.2

1.70.0 Sales of hardware overseas increased with progress in theconstruction of large-scale projects.
 Sales of maintenance services in Japan grew thanks to sales
from the order backlog.
 Sales in the ultrapure water supply business remained flat.
 Sales of tool cleaning declined due to a fall in the capacity
utilization of customers.

 Maintenance costs increased year on year in the ultrapure
water supply business.

0

Operating income margin4

Results for the 1Q of the Year Ending March 2017

(Billions of Yen)

Orders20

 Orders for general industries declined slightly.
10016.2

 Orders for soil remediation increased due to orders for largescale projects.

18.4

 Orders for maintenance services from public offices increased
due to projects to remodel old facilities.
06/2015

06/2016(Billions of Yen)

Sales

1260

 Sales of general industries hardware and soil remediation
increased with progress in construction.

9.2

10.0

06/2015

06/2016(Billions of Yen)

 Sales of electric power industries hardware declined.
(%)

0.00-0.5

Operating Income
 The operating loss contracted due to the effect of higher sales.

-0.4-0.4-4-5.0-0.8

 Sales of maintenance services for general industries rose thanks
to sales from the order backlog.

06/2015-4.4
06/2016-8

Operating income margin5

Results for the 1Q of the Year Ending March 2017
Service Business Revenue
in the Water Treatment Facilities Segment

Water treatment chemicals
Water treatment facilities (services)(Billions of Yen)

22

Water treatment facilities (hardware)

19.6(Billions of Yen)

50

46.4
42.5

8.0

1125

8.0

Ultrapure watersupply business

1.5

Tool cleaning

11.1

Maintenance, etc.

20.1

18.4

0

20.6

40.7

37.9
19.6

20.6

4.6

5.7

06/2015

06/2016

1.79.9006/2015

06/2016

 Revenue from tool cleaning declined, but revenues from maintenance and others increased.

6

Results for the 1Q of the Year Ending March 2017

Sales by Region
Asia

N. America

Sales by Overseas Business Segment

EMEA*

Other

Water treatment chemicals

Water treatment facilities(Billions of Yen)

0.6

0.8
3.5

10.9
0.406/2015(Billions of Yen)

2.6

4.8
6.1

14.1

8.1

4.3
14.1

10.9

9.8

8.2

0.506/2016

06/2015

06/2016

 In the Water Treatment Chemical business, sales increased in EMEA and China but declined in Other.
 In the Water Treatment Facilities business, sales rose mainly due to progress in the construction of largescale projects.
* For 06/2015, Europe7

Results for the 1Q of the Year Ending March 2017

Capital Expenditures and Depreciation
Capital expenditures Capital expenditures(ultrapure water(excl. ultrapure watersupply business)
supply business)

Depreciation(Billions of Yen)

63

R&D expenses

Percentage of net sales(Billions of Yen)

(%)

1.6

5.3

2.6

2.5

3.6

2.3

0.8

3.3
1.7
0R&D Expenses

06/2015

1.6
0.8

3.4

0.806/2016

 Capital expenditures of the ultrapure water supply
business declined significantly.

0.0

1.3

1.1

1.1

06/2015

06/20160.0

 R&D expenses remained flat.

 Depreciation increased slightly.
8

Results for the 1Q of the Year Ending March 2017

AssetsLiabilities and Net Assets(Billions of Yen)

298.1
65.9

290.8
70.5
(+4.6)

84.6

76.7(-7.9)

78.4

76.2(-2.2)

69.2

67.4(-1.8)

Mar. 31, 2016

Cash, deposits
andmarketablesecurities(Billions of Yen)

298.1

290.8

69.1

63.7

Liabilities(-5.4)

Other current
assetsProperty, plantand equipment

229.0

Other noncurrent assets

Jun. 30, 2016

227.1

Net assets(-1.8)

Mar. 31, 2016

Jun. 30, 2015

 Accounts receivable – trade declined due to progress in collection.
 Property, plant and equipment decreased because the amount of depreciation related to the ultrapure water supply
business exceeded the amount of capital expenditures.
9■ U R L ■http://ir.kurita.co.jp/en/■ M A I L ■ir@kurita.co.jp

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