FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Fiscal Year ended
March 31, 2015
Tokyo, Japan, April 30, 2015 - Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 189,398 million yen and net income of 10,434 million yen, or
87.81 yen per share, for the year ended March 31, 2015 (April 1, 2014 – March 31,2015).

Results of Operations
Total consolidated orders for the Kurita Group in the fiscal year ended March 31, 2015rose 4.5% from the level of the previous fiscal year, to 181,282 million yen, and net
sales increased 6.3%, to 189,398 million yen. Operating income was 19,435 million yen,
up 30.6% versus the previous fiscal year, and ordinary income 18,934 million yen, up
17.8%. Net income amounted to 10,434 million yen, up 11.6%.
During the fiscal year ended March 31, 2015, the global economy overall recovered
moderately. The U.S. economy recovered steadily, chiefly reflecting an improvement in
employment and the expansion of personal spending. In Europe, there were signs ofrecovery despite the debt crisis. China and emerging countries in Asia saw a slowdown
in growth.
The Japanese economy was affected by weakening demand in reaction to a spike indemand before the consumption tax hike. In the second half of the fiscal year, however,corporate earnings improved on the back of the weaker yen and a fall in crude oil prices,and the economy recovered moderately.
Looking at the market environment surrounding the Kurita Group (Kurita Water
Industries and its consolidated subsidiaries and an equity method affiliate), production
and capital expenditure in the manufacturing industry were weak in Japan. Overseas,
demand for water treatment increased in East Asia and Southeast Asia.
In this environment, the Kurita Group took steps to restore its earnings power andexpand its global business by combining its expertise in water treatment chemicals,
water treatment facilities and maintenance services, aiming to evolve into a corporategroup capable of competing successfully in the international market. Specifically, theGroup sought to expand orders by proposing solutions to customers’ challenges,
including environmental load reduction, energy saving, and an improvement inproductivity, and providing high value-added and price-competitive products andservices in regions and markets where demand for water treatment is increasing, such as
East Asia and Southeast Asia. The Group also worked to improve its production systemand control costs thoroughly.

1Segment Information
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 59,353 million
yen, down 0.1% versus the fiscal year ended March 31, 2014, while sales rose 2.0% to59,999 million yen. Operating income was down 1.0% to 7,877 million yen.
In Japan, while process treatment chemicals for the pulp and paper industries and thesteel industry rose in orders and sales, mainstay products—boiler water treatment
chemicals and cooling water treatment chemicals—saw decreased orders and sales,
mainly because of a tardy recovery in capacity utilization at customers’ plants. Overall
orders and sales fell slightly.
Overseas, orders and sales increased due to the addition of new customers especially in
China and Southeast Asia.
Income in the overall segment declined, reflecting a rise in the cost to sales ratio chiefly
due to a fall in sales of the profitable mainstay products in Japan.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 121,928 million
yen, up 6.9% versus the previous fiscal year, sales rose 8.5%, to 129,399 million yen,and operating income increased 66.7%, to 11,560 million yen.
In Japan, in the electronics industry, plant construction and expansion projects werelimited, and orders for and sales of water treatment facilities declined. Meanwhile,orders and sales in the ultrapure water supply business and maintenance services rose,
mainly due to a recovery in capacity utilization at the plants of major customers. In
general industries, orders for water treatment facilities declined due to a tardy recovery
in capital expenditure, but sales rose, reflecting progress in construction in progress.
Orders for maintenance services climbed thanks to proposals for the optimization of theoperation of water treatment facilities, among other factors, and sales from maintenanceservices increased slightly. Orders for and sales of water treatment facilities for electric
power and soil remediation services rose.
Overseas, orders and sales increased, chiefly reflecting large-scale projects in theelectronics industry in China and Taiwan. Income in the overall segment climbed
significantly due to the rise in sales and an improvement in the cost rate as a result of
the curbing of additional costs through the tight control of costs.

2

Outlook for Overall Results, Including Production, Sales, and Profits and Losses
For the full fiscal year ending March 31, 2016, the Group forecasts 216,000 million yen
in net sales (up 14.0% year on year), 19,500 million yen in operating income (up 0.3%),
20,000 million yen in ordinary income (up 5.6%), and 12,300 million yen in net income(up 17.9%).
During the fiscal year ending March 31, 2016, production and capital expenditure in theJapanese manufacturing industry are expected to recover moderately, reflecting massive
monetary easing and the effects of the government’s growth strategy. The industrial
structure is continuing to change, and markets are expected to continue shrinking insome industries.
We expect that the U.S. economy will continue to recover and Europe will see a tardy
recovery in demand. Although growth is slowing in China, in Asia overall, stable
growth is expected to continue, backed by strong domestic demand and a recovery inexports.
In this environment, the Kurita Group will identify growth regions and markets andshift its management resources. Based on the characteristics and changes identified ineach region and market, the Group will provide profitable products and services throughefficient sales and production methods. We will make Group-wide efforts to enhance
the quality of the solutions that we propose to customers, restore earnings power bypromptly integrating the overseas operations that we have acquired and generatingsynergy effects early, and expand overseas operations steadily.
Outlook by Segment
Water Treatment Chemicals
The Kurita Group will focus on integrating the businesses that it has acquired in Europe
and generating synergy effects. The Group will endeavor to increase sales and earnings
power overseas by boosting product appeal based on local characteristics, strengthening
its sales and technical assistance systems, and educating and cultivating humanresources, especially sales staff, and particularly in China and Southeast Asia. In Japan,
the Group will focus on new cost competitive products and sales and technical staff inpromising markets to expand market share and achieve a recovery in earnings.
Water Treatment Facilities
The Group will make specialized and appealing proposals promptly to customers byfacilitating cooperation between the sales and production divisions and emphasizing
individual customers and stronger field activities. Meanwhile, the Group will develop
and expand sales of new low-priced products offering stable quality.
Overseas, the Group will seek to enhance the sales, design, and construction capabilities
of its overseas subsidiaries and affiliates, optimize quality and cost, and expand
operations through the overseas subsidiaries and affiliates.

3

Financial Condition
Assets, liabilities and net assets
Current assets totaled 148,290 million yen at the end of the fiscal year (March 31, 2015),
a decrease of 14,210 million yen from the end of the previous fiscal year (March 31,2014). This decrease was primarily attributable to a decrease of 27,839 million yen in
cash reserves, that is, cash and deposits and marketable securities, which outweighed
increases of 9,307 million yen in accounts receivable-trade and 3,042 million yen in
inventories. The increase in accounts receivable-trade was mainly the result of a rise insales in the Water Treatment Facilities business in the latter half of the fiscal year underreview, compared with the outcome of a year ago. The increase in inventories was
attributable to the acquisition of businesses in Europe. The decrease in cash reserves
was principally the result of the use of cash reserves for the acquisition of businesses in
Europe, which was completed at the end of January, and the purchase of treasury stock.
Noncurrent assets totaled 144,913 million yen at the end of the fiscal year, an increaseof 32,488 million yen versus the end of the previous fiscal year. The increase wasprincipally attributable to increases of 25,754 million yen in intangible fixed assets and10,543 million yen in investments and other assets. The increase in intangible fixed
assets reflected the acquisition of 6,294 million yen’s worth of assets (“Other” inintangible fixed assets), primarily technology-related assets, and the posting of goodwillof 19,391 million yen in association with the acquisition of businesses in Europe. The
increase in investments and other assets primarily reflected a rise in investment
securities due to a rise in stock prices.
Current liabilities totaled 47,761 million yen at the end of the fiscal year, a rise of
10,862 million yen from the end of the previous fiscal year. The rise was mainly
attributable to increases of 2,142 million yen in accounts payable-trade, 4,317 million
yen in accounts payable-other / accrued expenses, 2,060 million yen in income taxes
payable, and 2,835 million yen in “Other” in current liabilities.
Noncurrent liabilities totaled 21,964 million yen at the end of the fiscal year, an increaseof 3,092 million yen from the end of the fiscal year. The increase was chiefly due to arise of 2,422 million yen in net defined benefit liability associated with a change in the
Accounting Standard for Retirement Benefits and the acquisition of businesses in
Europe.
Net assets totaled 223,478 million yen at the end of the fiscal year, an increase of 4,325
million yen from the end of the previous fiscal year primarily due to a 3,615 million yen
decrease in shareholders’ equity and an 8,254 million yen increase in accumulated othercomprehensive income. The main factors for the decrease in shareholders’ equity were a
446 million yen decrease in capital surplus in association with additional acquisitions ofequity in consolidated subsidiaries, a 4,534 million yen increase in retained earnings
mainly due to net income of 10,434 million yen for the fiscal year under review, which
exceeded dividend payments of 5,362 million yen, the sum of year-end dividends forthe previous fiscal year and interim dividends for the fiscal year under review, and a
7,703 million yen rise in treasury stock through acquisitions in the market. Accumulated
other comprehensive income rose, chiefly reflecting a 6,906 million yen increase inunrealized gains on available-for-sale securities associated with the abovementioned
4

increase in unrealized gains from investment securities and a 1,126 million yen rise inforeign currency translation adjustments due to the weaker yen.
Cash Flows
Consolidated net cash and cash equivalents at the end of the fiscal year (March 31,2015) totaled 55,675 million yen, an increase of 14,647 million yen from the end of theprevious fiscal year (March 31, 2014). The various cash flows and related factors are
outlined below.
Cash Flows from Operating Activities
Net cash provided by operating activities during the fiscal year ended March 31, 2015
totaled 23,314 million yen, a decrease of 6,352 million yen from the previous fiscal year.
Inflows from income before income taxes and minority interests (18,467 million yen),depreciation and amortization (14,863 million yen) and an increase in notes andaccounts payable-trade (1,868 million yen) were partially offset by an increase in notes
and accounts receivable-trade (7,674 million yen) and income taxes paid (5,934 million
yen).
Cash Flows from Investing Activities
Net cash provided by investing activities totaled 4,746 million yen, an increase of
21,422 million yen from the previous fiscal year. Net cash increased chiefly due toproceeds from sale and redemption of marketable securities (net of payments forpurchases of marketable securities) totaling 43,039 million yen. The main cash outflows
were payments into time deposits (net of withdrawals from time deposits) of 1,331
million yen, the payments for purchases of property, plant and equipment totaling 8,148
million yen, including capital expenditures for ultrapure water supply business,payments for purchases of intangible fixed assets of 4,375 million yen, and payments
for the acquisition of businesses in Europe of 24,383 million yen.
Cash Flows from Financing Activities
Net cash used in financing activities totaled 13,929 million yen, an increase of 7,972
million yen from the previous fiscal year. The main cash outflows were the purchase oftreasury stock of 7,703 million yen and cash dividends paid of 5,480 million yen.
Dividend Policy and Dividends for the Fiscal Year ended March 31, 2015 and the
Fiscal Year ending March 31, 2016
Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.
Setting a payout ratio of 30 to 50% as our target, we will continuously work to increase
dividends, making decisions based on the payout ratios for the most recent five years to
respond flexibly to fluctuations in business performance each year. If there are excess
funds after taking into account changes in business performance, business investments,
and precautionary funds to prepare for rapid fluctuations in the operating environment,
we will take steps to improve capital efficiency and return profits to shareholders
including the acquisition of treasury stock, taking the share price into consideration.
We intend to pay a year-end dividend of 23 yen per share for the fiscal year ended
March 31, 2015, 1 yen more than the previous year-end dividend. Combined with theinterim dividend of 23 yen per share (1 yen more than the previous interim dividend),5the annual dividend comes to 46 yen per share, 2 yen higher than the previous fiscal
year’s annual dividend. For the fiscal year ending March 31, 2016, Kurita Water
Industries plans to pay an interim dividend of 24 yen per share and a year-end dividendof 24 yen per share, for an annual dividend of 48 yen per share.
Business and Other Risks
The following are summaries of major foreseeable risks present in the businessenvironments in which the Kurita Group operates. Forward-looking statements herein
are based on judgments made by management as of March 31, 2015.
1) Economic and market conditions
The Group’s Water Treatment Chemicals and Water Treatment Facilities businesses
are affected by economic conditions in Japan and in other countries and regions where
the Group operates. Demand in the Water Treatment Chemicals business fluctuates in
response to factory capacity utilization rates in such industries as steel, petroleum
refining and petrochemicals, and pulp and paper, which are the business’ main sourcesof demand. Such demand fluctuations may affect the Group’s operating results.
Demand in the Water Treatment Facilities business fluctuates in response to trends incapital expenditure in the electronics industry and other industries that are the business’
main sources of demand. Such demand fluctuations may affect the Group’s operating
results.
Intensification of competition with rivals in the Group’s business domains could
lead to declines in prices of products and services, which could lower the Group’s
profitability.
2) Materials and parts procurement
The Group procures raw materials and parts from outside the Group for the
manufacture of products and the fabrication of facilities. The prices of raw materials
and parts fluctuate based on changes in market conditions, and such fluctuations may
affect the Group’s operating results.
3) Overseas business development
The Group is striving to expand its business outside Japan. In contrast to theJapanese market, doing business in overseas markets involves a number of inherent,
unforeseen risks, including the risk of changes to local laws and regulations, the risk ofpolitical and economic instability, and the risk of foreign exchange rate fluctuations. If
such risks materialized, the Group’s operating results could be affected.
4) New product development
The Group continuously endeavors to develop new technology and competitive new
products. The success of new technology and product development efforts cannot be
guaranteed. The Group may not be able to offer new technologies and products thatmeet the needs of its customers or launch new products in a timely fashion. The Group
may also fail to keep pace with rapid changes in technological innovation and changing
customer needs. If the Group were to fail to develop competitive new products, this
could hamper its future growth and profitability or otherwise affect its operating
results.
5) Intellectual property
The Group recognizes the importance of intellectual property and continually seeks
to register its own intellectual property while avoiding infringement of the intellectual
property rights of third parties, both in Japan and overseas. Given the wide scope of theGroup’s business, however, there is potential for the Group’s intellectual property
6rights to be infringed and potential for the Group to infringe upon the rights held by
third parties. Such occurrences may affect the Group’s operating results.
6) Information systems
The Group’s use of information systems is increasing, as is the importance of
information systems to the Group’s business. If a computer virus or some other factor
were to obstruct the functions of the Group’s information systems, the Group’sbusiness activities, operating results, and financial condition could be negatively
affected.
7) Large-scale natural disasters
If an earthquake, typhoon, or other kind of natural disaster were to directly or
indirectly upset the Group’s business execution, the Group’s business activities,
operating results, and financial condition could be negatively affected.
Management Policy(1) Basic management policy
The Kurita Group operates under corporate philosophy, “Study the properties of water,
master them, and we will create an environment in which nature and man are inharmony.” In line with this philosophy, the Group conducts business with the goal of
becoming an advanced water and environmental management company.
The Group also seeks to enhance management transparency by making appropriate
and timely information disclosures to shareholders, investors, and other stakeholders.
(2) Issues to be addressed
In the medium-term management plan TA-14 (Take Action 2014) starting from fiscal
year ended March 2013, we sought to solidify our revenue base further through a rapid
expansion of overseas business and an increase in our domestic market share based on
the theme of Execution and Evolution.
However, profits and sales declined in the fiscal year ended March 2013 and thefiscal year ended March 2014 for two consecutive years, and profitability has yet to
improve enough, although both profits and sales increased in the fiscal year ended
March 2015, the final year of the medium-term management plan. Meanwhile, withrespect to overseas business, we were able to embark on the groundwork for a rapid
expansion of overseas business in Europe as a result of acquiring the water
treatment-related businesses of BK Giulini GmbH in Germany.
During the fiscal year under review, the Kurita Group initiated the three-year
medium-term management plan CK-17 (Competitive Kurita 2017). Financial targets forthe final year (fiscal year ending March 2018) of the CK-17 plan are as follows:
Net Sales
Operating income
Ratio of operating income to sales

Consolidated¥235.0 billion¥24.5 billion
10.4%

In the CK-17, setting the “review of all jobs from the ground up to provide customers
with high added values” as the basic policy, we will work on the following focused
initiatives at higher speed, regarding the exertion of the Group’s comprehensive strength,
the expansion of overseas business, and improvement in profitability as challenges forsustainable growth.
7

(Focused initiatives)
1) Creation of competitive products and services
We will provide distinctive products and services by grasping customer needs
accurately.
Bringing together three functions of water treatment chemicals, water treatment
facilities and maintenance services, characteristics of the Group, we will assist
customers in their problem solving by creating comprehensive and competitive
products and services that meet customer needs. Actively adopting sensing
technologies and data analysis methods unique to the Group, we will differentiate our
products and services from those of other companies.
2) Cultivation of new markets
We will actively devote our management resources to the expansion of overseas
business.
We will establish a strong presence for the Group in both Japanese and European
markets by exerting synergy and strengthening our responsiveness to customer needs
through the enhancement of product lineup and services by promoting the integrationof businesses we have acquired in Europe with the Group. We will also advance ourefforts to expand our business in North America, as well as in Europe.
3) Optimization of the production system and the utilization of the Group network
We will strive to increase revenues by reviewing the function and role of basesaround the world and optimizing our system.
In the production system, we will reduce costs by strengthening the engineering,procurement and construction control functions of overseas Kurita Group companies.
We will also respond to customer needs for both quality and low cost by promoting
the downsizing and standardization of facilities. We will increase sales of theGroup’s products and services, taking advantage of its global network.
Basic concept for the selection of accounting standards
The Kurita Group is considering improvements to the accounting standards andaccounting processing procedures of the Group and the timing for applying them inpreparation for the application of the International Financial Reporting Standards(IFRS).

8

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
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles (net)Land
Leased assets
Accumulated depreciation
Leased assets (net)
Construction in progress
Other
Accumulated depreciation
Other (net)Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31, 2014
AmountAs ofMarch 31, 2015
Amount47,336
7,287
50,50347,999
1,788
2,568
1,455
2,193
1,551
(184)
162,500

52,497
7,513
59,81014,999
3,206
3,078
2,569
1,728
3,147
(261)
148,290

61,177(39,477)
21,70093,982(61,048)
32,934
13,9537,990(2,350)5,639
1,742
11,867(9,983)
1,884
77,85561,862(43,199)
18,662
102,598(73,062)
29,535
13,972
8,199(2,713)
5,486
4,156
13,245(11,012)2,232
74,046

1,281
297
1,578

19,391
1,450
6,490
27,332

24,717
6,586
2,097
(409)
32,991
112,425
274,925

36,070
4,423
3,342
(302)
43,534
144,913293,204

9

(Million yen)

As ofMarch 31, 2014
AmountAs ofMarch 31, 2015
Amount1,860
17,027
5,541
2,535
2,246
1,311
801
5,575
36,8991,650
19,169
9,858
4,595
2,255
1,037
784
8,410
47,761

5,389
1,303

5,159
1,181

98

75

11,363718
18,872
55,772

13,785
1,763
21,96469,726

13,45011,426
185,159(2)
210,034

13,45010,980189,693(7,705)
206,419

7,862

14,768

(564)
384
(25)
7,657
1,461
219,153274,925

66
(442)
1,510
8
15,911
1,147
223,478
293,204

Liabilities
Current liabilities
Notes payable – trade
Accounts payable – trade
Accounts payable – other
Income taxes payable
Accrued employees’ bonuses
Provision for loss on construction contracts
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Lease obligations
Deferred tax liabilities related to revaluation
Accrued retirement benefits for directors and corporate
auditors
Net defined benefit liability
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 (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors' and corporate auditors' compensations,salaries and allowances
Provision for bonuses
Retirement benefit expenses
Traveling and transportation expenses
Research and development expenses
Other
Total Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Settlement
Loss on disposal of noncurrent assets
Rent expenses on noncurrent assets
Foreign exchange losses
Acquisition-related costs
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Provision for building demolition expenses
Contribution
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Current
Deferred
Total income taxes
Income before minority interests
Minority interests in earnings of consolidated
subsidiaries
Net income

Year ended
March 31, 2014
Amount178,137
122,870
55,267

Year ended
March 31, 2015
Amount189,398
130,50958,88915,78016,064

1,223
1,018
2,808
4,534
15,01340,38014,886

1,216
1,117
2,767
4,397
13,88939,454
19,435

165
336
174

241
395
-

302

286

442
1,420

508
1,431

60
56
23
24
69
234
16,072

84
37
86
1,626
96
1,932
18,934197
500
697
15,375241226
467
18,467

6,614
(737)
5,877
9,498

7,718
242
7,961
10,506

145

71

9,352

10,43411

Statement of Comprehensive Income(Million yen)

Income before minority interests
Other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
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

Year ended
March 31, 2014
Amount9,498

Year ended
March 31, 2015
Amount10,506

3,782

6,916

1,792
-

66
121
1,049
33

204

115

5,780
15,2788,303
18,80914,98918,688

288

121

12

Statement of Changes in Shareholders’ Equity — Consolidated
Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)(Million yen)

Shareholders’ equity

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of revaluation
reserve for land
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

Common stock

Capital surplus

13,45011,426

Retained earnings

Treasury stock

202,807

Total shareholders’equity(21,859)

205,826-

13,45011,426

202,807(21,859)

205,826(5,124)
9,352(5,124)
9,352(21,859)(2)(2)

21,859

-

-

-

-

-

(17)

(17)

-

-

(17,648)

21,856

4,208

13,45011,426

185,159(2)

210,034

Accumulated other comprehensive income
Unrealized
gains (losses)
on availablefor-salesecurities

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of revaluation
reserve for land
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

4,079

Deferred
gains(losses) onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

-

(564)

(1,469)Total
Remeasure- accumulated
ments ofother
definedcomprehensive
benefit plansincome-2,045

Minority
interests

Total net
assets1,246

209,118
-

4,079

-

(564)

(1,469)

-

2,045

1,246

209,118(5,124)
9,352
(2)
(17)
3,783

-

-

1,853

(25)

5,611

215

5,827

3,783

-

-

1,853

(25)

5,611

215

10,035

7,862

-

(564)

384

(25)

7,657

1,461

219,153

13

Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)(Million yen)

Shareholders’ equity

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of revaluation
reserve for land
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

Common stock

Capital surplus

13,45011,426

Retained earnings

Treasury stock

185,159

Total shareholders’equity(2)

210,034(501)
13,45011,426(501)

184,657(2)

209,532(5,362)
10,434(5,362)
10,434(7,703)(7,703)
-

(445)

(445)
(36)

(36)

-

(445)

5,035

(7,703)(3,113)

13,45010,980189,693(7,705)

206,419

Accumulated other comprehensive income
Unrealized
gains (losses)
on availablefor-salesecurities

Balance as of the
beginning of the fiscal
year
Cumulative effects ofchanges in accounting
policies
Restated balance
Change during theperiodDividend from surplus
Net income
Purchase of treasury
stock
Retirement of treasury
stock
Reversal of revaluation
reserve for land
Changes of equity
interest in consolidated
subsidiaries
Other
Net change in items
other than shareholders’equity during theperiodTotal change during theperiodBalance as of the end of
the fiscal year

7,862

Deferredgains( losses) onhedges

Revaluation
reserve for
land

-

(564)

Foreigncurrencytranslation
adjustments

384

Total
Remeasureaccumulated
ments ofother
definedbenefit plans comprehensive
income

(25)

7,657

Minority
interests

Total net
assets1,461

219,153
(501)

7,862

-

(564)

384

(25)

7,657

1,461

218,652(5,362)
10,434(7,703)
(445)
(36)
6,905

66

121

1,126

33

8,253

(314)

7,939

6,905

66

121

1,126

33

8,253

(314)

4,826

14,768

66

(442)

1,510

8

15,911

1,147

223,478

14

Statement of Cash Flows — Consolidated(Million yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Equity in (earnings) losses of unconsolidated subsidiaries andaffiliates
Increase (decrease) in net defined benefit liability
Increase (decrease) in other allowancesInterest and dividend income
Interest expense
Other non-operating (income) losses
Other extraordinary (income) losses(Gains) losses on sale/disposal of property, plant andequipment
Impairment loss
(Gains) losses on sale of investment securities(Gains) losses on valuation of investment securities(Increase) decrease in notes and accounts receivable - trade(Increase) decrease in inventories(Increase) decrease in other current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other
Sub-totalInterest and dividend received
Other proceeds
Interest paid
Other payments
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Deposits into time deposit accounts
Withdrawals from time deposits
Payments for purchases of marketable securities
Proceeds from sale and redemption of marketable securities
Payments for purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchase of intangible assets
Payments for purchases of investment securities
Proceeds from sale and redemption of investment securities
Payments associated with acquisition of business
Other payments
Other proceeds
Net cash provided by (used in) investing activities

Year ended
March 31, 2014
AmountYear ended
March 31, 2015
Amount15,375
14,774

18,467
14,863

(302)

(286)

454
1,559
(501)
60
(290)
500

781
(547)
(636)
84
1,263
-

14

231

(0)
4,997
(673)
204
(26)
(222)
(88)
35,835
751
426
(62)
(631)
(6,652)
29,666226(39)
17(7,674)
(504)
177
1,868
1,515
26
29,835783
452(84)(1,738)(5,934)
23,314(19,315)
17,798(99,999)
91,000(5,670)
105
(441)
(145)
4
(227)
214
(16,676)(38,175)
36,844(45,000)
88,039(8,148)38(4,375)(8)
32(24,383)
(562)
445
4,746

15

(Million yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of finance lease obligations
Purchase of treasury stock
Proceeds from share issuance to minority shareholders
Cash dividends paid
Cash dividends paid to minority shareholders
Purchase of shares of subsidiaries without change in scope of
consolidation
Net cash provided by (used in) financing activities
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 the period
Cash and cash equivalents at the end of the period

Year ended
March 31, 2014
AmountYear ended
March 31, 2015
Amount

(164)
(595)
(2)
(5,122)
(71)

605
(588)
(7,703)54(5,362)
(118)

-

(815)

(5,957)(13,929)

683

515

7,715
33,31341,028

14,64741,02855,67516

Information for business combinations, etc.
Business combination through acquisition
1. Outline of business combination(1) Name of the counterparty companies and the content of their business
Name of the counterparty companies: BK Giulini GmbH and its affiliates
Content of business:
Businesses related to the manufacturing, sales and researchand development of water treatment chemicals, paper
solutions, and alumina compounds(2) Main reasons for business combination
The addition of broad-ranging customer bases in Europe of the water solutions business, the paper
solutions business, and the alumina compounds business (the “target businesses”) to the businessfoundation in Japan and Asia where the Group has a strong presence will significantly advance theexpansion of the Group’s overseas business. In addition, as the Group and the target businesses
have high complementarity in technologies and product lineup, we expect that their amalgamation
will enable us to develop new products and services.
(3) Date of business combination
January 31, 2015(4) Legal form of business combination
Acquisition of business with cash as consideration(5) Company names after combination
Kurita Europe APW GmbH, Kurita Water Industries (Jiangyin) Co., Ltd. and other sevencompanies(6) Ratio of voting rights acquired
100%(7) Main grounds to determine the acquirer
The Group acquired businesses with cash as consideration.
2. The period of business results of the acquired companies to be included in consolidated financial
statements
As the Group acquired businesses on January 31, 2015, only their balance sheets are consolidated in
the fiscal year under review.
3. Acquisition cost of businesses acquired and the breakdown of consideration by type
Consideration for acquisitionCash¥32,317 million
Acquisition cost
¥32,317 million
4. Breakdown and amount of major acquisition-related cost
Advisory fees, etc.

¥1,536 million

5. Amount, cause, amortization method and amortization period of goodwill generated(1) Amount of goodwill generated¥18,825 million
The amount of goodwill is tentatively calculated as the allocation of the acquisition cost has yet tobe completed.
(2) Cause of generation
Goodwill was generated due to an excess earnings capability expected in the future.
(3) Amortization method and amortization period
Straight-line method over 15 years
6. Amount and major breakdown of assets acquired and liabilities assumed on the date of businesscombination
Current assets¥5,124 million
Noncurrent assets¥10,756 million
Total assets¥15,880 million
Current liabilities¥1,191 million
Noncurrent liabilities¥1,196 million
Total liabilities¥2,388 million

17

7. Allocation of acquisition cost
The allocation of acquisition cost is not yet finished because the fair value of discernable assets andliabilities as of the date of business combination had not been fully identified and calculated by the endof the fiscal year under review.
8. Estimated amount and method of calculation of the impact of the acquisition of businesses on the
consolidated statement of income for the fiscal year under review on the assumption that theacquisition of businesses has been completed on the beginning date of the fiscal year under review
Not stated as it is difficult to calculate the estimated amount.

18

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 examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Company’s business divisions are based on product and service categories. Each of the divisions
conduct business based on comprehensive strategies formulated for the products and services that theyhandle in Japan and overseas. The Company’s consolidated subsidiaries conduct business under thesupervision of the relevant business divisions.
The Group’s operations are therefore classified into two reportable segments, the Water Treatment
Chemicals segment and the Water Treatment Facilities segment, based on the products and services
handled by each of the divisions.
The Water Treatment Chemicals segment manufactures and sells water treatment chemicals andequipment and provides maintenance services. The Water Treatment Facilities segment manufacturers
and sells water treatment equipment and facilities, provides ultrapure water, chemical cleaning, toolcleaning, soil and groundwater remediation services, and provides maintenance services that encompass
operation, maintenance, and management of water treatment facilities.
2. Method for calculating sales, income and loss, assets and liabilities, and other amounts by reportablesegment
Accounting methods applied in reportable segments are consistent with the methods applied in
preparation of consolidated financial statements. Segment income represents operating income.
Inter-segment sales and transfers between consolidated-group companies reflect values based on market
prices. Inter-segment sales and transfers between the Company’s divisions are based primarily on bookvalues.
3. Sales, income and loss, assets and liabilities, and other amounts by reportable segment
Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total

Amounts
reported on the
Adjustments statements of(see note)
incomeSales(1) Sales to outside customers(2) Inter-segment sales and transfers
Total

58,844278
59,122

119,292
252
119,545

178,137
530
178,668

(530)
(530)

178,137
178,137

Segment income

7,954

6,934

14,888(2)

14,886

Segment assets

37,310133,620

170,931103,994

274,925

Segment liabilities

15,82440,08755,911(139)

55,772

1,386

13,387

14,774-

14,774

1,792

3,917

5,709

-

5,709

Other amounts
Depreciation
Change in property, plant andequipment and intangible fixed
assets19

Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)(Million yen)

Reportable segment
Water
Water
Treatment Treatment
Chemicals Facilities
Total

Amounts
reported on the
Adjustments statements of(see note)
incomeSales(1) Sales to outside customers(2) Inter-segment sales and transfers
Total

59,999377
60,376

129,399231
129,631

189,398
608
190,007

(608)
(608)

189,398
189,398

Segment income

7,877

11,56019,437(2)

19,435

Segment assets

78,109136,931

214,50178,703

293,204

Segment liabilities

25,36544,581

69,947(220)

69,726

Other amounts
Depreciation
1,406
13,457
14,863
14,863
Impairment loss
226
226
226
Change in property, plant andequipment and intangible fixed
5,378
7,486
12,864
12,864assetsNote: “Adjustments” represents the following:
1. Sales: Elimination of inter-segment transactions.
2. Segment income: Amount resulting from eliminations of inter-segment transactions.
3. Segment assets: Consisting mainly of corporate assets (cash deposits, securities in trust, andlong-term investments) unallocated to reportable segments. Corporate assets totaled 104,135
million yen at March 31, 2014 and 78,926 million yen at March 31, 2015.
4. Segment liabilities: Amount resulting from eliminations of inter-segment claims and liabilities.
Related information
Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)

North
Japan
Asia
America
EuropeOther
Total
27,162
1,765
1,330
3,331
178,137
144,546
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer(Million yen)

Name of customer
Sharp Corporation

Sales
26,850Name of transacting segment
Water Treatment Facilities

20

Year ended March 31, 2015 (April 1, 2014 - March 31, 2015)
1. Information by product and service
The Company has omitted disclosure here because equivalent information appears in the segment
information.
2. Information by geographic region(1) Sales(Million yen)

North
Japan
Asia
America
EuropeOther
Total
32,092
2,028
1,514
3,471
189,398
150,291
Note: Sales are allocated to regions based on the location of the customer to which the products orservices are provided.
(2) Property, plant and equipment
The Company has omitted disclosure here because property, plant and equipment holdings in Japanaccount for more than 90% of the amount of property, plant and equipment reported on the
consolidated balance sheet.
3. Information by major customer(Million yen)

Name of customer
Sharp Corporation

Sales
26,298Name of transacting segment
Water Treatment Facilities

Information on impairment of reportable segments’ noncurrent assets
Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)
Not applicableYear ended March 31, 2015 (April 1, 2014 - March 31, 2015)
The Company has omitted disclosure here because equivalent information appears in the segment
information.
Goodwill amortization and unamortized balance of goodwill by segment
Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)
Not applicableYear ended March 31, 2015 (April 1, 2014 - March 31, 2015)(Million yen)

Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Eliminationor corporate

Total

Total

-

-

-

-

-

19,391-

19,391-

19,391

Information on negative goodwill
Year ended March 31, 2014 (April 1, 2013 - March 31, 2014)
Not applicableYear ended March 31, 2015 (April 1, 2014 - March 31, 2015)
Not applicable

21Per Share Information
Net assets per share
Net income per share

Year ended March 31, 2014
1,826.84 yen
78.48 yen

Year ended March 31, 2015
1,907.80 yen
87.81 yen

Notes: 1. Fully diluted net income per share was not reported here because there were no dilutive securities
outstanding.
2. The calculation bases for net assets per share are as follows.
(Million yen unless otherwise stated)

Total net assets
Amount deducted from total net assets(Those with minority interests)
Net assets attributed to common stock
Number of common stock used in calculation of
net assets per share (shares)

As ofMarch 31, 2014
219,153
1,461(1,461)
217,691

As ofMarch 31, 2015
223,478
1,147(1,147)
222,330

119,163,469

116,538,033

Note: The calculation bases for net income per share are as follows.
(Million yen unless otherwise stated)

Net income
Amount not attributed to common stockholders
Net income attributed to common stock
Average number of shares outstanding (shares)

Year ended
March 31, 2014
9,352
9,352
119,164,231

Year ended
March 31, 2015
10,434
10,434
118,825,349

Significant Subsequent Events
Not applicable22Supplementary Information - Consolidated(1) Net Sales(Million yen)

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2014
Amount58,844
119,292
178,137

%
33.0
67.0
100.0

2015
Amount59,999129,399
189,398

%
31.7
68.3
100.0

(2) Order Intake and Backlog(Million yen)

Year ended March 31,
2014
Business segment
Water Treatment
Chemicals
Order Intake
Water Treatment
Facilities
Total
Water Treatment
Chemicals
Order Backlog Water Treatment
Facilities
Total

Amount2015%

Amount%59,41334.3

59,35332.7

114,049

65.7

121,92867.3

173,463100.0

181,282

100.0

4,445

7.8

3,799

7.7

52,80492.2

45,334

92.3

57,250100.049,133100.0(3) Production Results(Million yen)

Year ended March 31,
2014
Business segment
AmountWater Treatment Chemicals
59,119Water Treatment Facilities
119,723
Total
178,842
Note: The amounts were based on sales amounts.

2015
%
33.1
66.9
100.0

Amount60,636
129,665
190,301

%
31.9
68.1
100.0

(4) Capital Expenditures (Property, Plant and Equipment)(Million yen)

Year ended March 31,
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

2014
Amount
1,599
3,669
5,268

%
30.4
69.6
100.0

2015
Amount
1,369
7,119
8,489

%
16.1
83.9
100.0

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

Year ended March 31,
2014
Business segment
Water Treatment Chemicals
Water Treatment Facilities
Total

Amount1,162
13,08814,250

2015
%
8.2
91.8
100.0

Amount1,206
13,172
14,378

%
8.4
91.6
100.0

23