FOR IMMEDIATE RELEASE
Kurita Water Industries Reports Earnings for the Fiscal Year ended
March 31, 2011
Tokyo, Japan, April 28, 2011—Kurita Water Industries Ltd. (TSE Securities Code 6370)
announced net sales of 181,234 million yen for the fiscal year ended March 31, 2011
(April 1, 2010 – March 31, 2011) and net income of 17,138 million, or 134.02 yen per
share.
Results of Operations
Total consolidated orders for the Kurita Group in the fiscal year ended March 31, 2011,were up 3.9% versus the previous fiscal year to 181,951 million yen, and net sales rose
1.5% to 181,234 million yen. Operating income was 27,131 million yen, up 2.9% versus
the previous fiscal year, and ordinary income was 28,158 million yen, up 3.9%. Net
income totaled 17,138 million yen, down 0.9%.
Markets in which the Kurita Group operates were challenging on the whole during the
fiscal year ended March 31, 2011. In Japan, although customer factories’ capacity
utilization rose moderately due to factors such as an increase in exports and pickup in
personal consumption due to the government’s economic stimulus measures, capital
expenditure levels in both the electronics industry and general industries remain low,having yet to experience a full-fledged recovery. On the other hand, the overseas
business was firm, particularly in Asia, on the back of continued economic growth. The
devastating earthquake and tsunami that struck eastern Japan in March had a significant
impact on economic activity in Japan. While the Kurita Group did incur someearthquake-related damages to facilities, the damage was minimal. Following thedisaster, the Kurita Group has been ascertaining the damage incurred by customers inaffected regions and working to restore all services, and has been providing a wide
range of support, including sending drinking water to affected areas and providing relief
money.
Segment Information
The Kurita Group is composed of segments delineated according to the products andservices handled by each of its business divisions. These reportable segments
correspond to the segments that the Group has used thus far, namely the Water
Treatment Chemicals segment and the Water Treatment Facilities segment.
Water Treatment Chemicals
Total Group orders for the Water Treatment Chemicals segment were 56,714 million
yen, up 6.3% versus the fiscal year ended March 31, 2010, while sales rose 5.6% to56,735 million yen. Operating income rose 23.5% to 10,099 million yen.
During the fiscal year ended March 31, 2011, the Kurita Group bolstered sales efforts
by strengthening intra-group alliances between domestic and overseas Group companies,
and pursued order bookings through consultative sales to help customers successfully
meet challenges such as productivity enhancement and environmental mitigation.
In Japan, orders for and sales of boiler water treatment chemicals, cooling water
treatment chemicals, and wastewater treatment chemicals, the Group’s mainstay
products, increased versus the previous fiscal year, due to a redoubling of consultative
sales efforts and higher capacity utilization by customers. Overseas, orders and sales
11increased in response to recoveries in production in various industries, mainly in Asia,and enhanced sales activities by the Group.
Water Treatment Facilities
Total Group orders for the Water Treatment Facilities segment were 125,237 million yen,up 2.8% versus the previous fiscal year, sales fell 0.2% to 124,499 million yen, while
operating income fell 6.3% to 17,032 million yen
During the fiscal year ended March 31, 2011, the Group worked to secure orders byfocusing on service businesses, such as the ultrapure water supply business as well as
maintenance services, in addition to stepping up both consultative sales targeting key
customers and sales activities in Asia, with emphasis on China.
In the electronics industry, orders for the ultrapure water supply business rose slightly
versus the previous fiscal year, while orders for ultrapure water production systems
increased overseas. Orders for maintenance services rose due to a recovery in capacity
utilization at customer plants in Japan. Orders for tool cleaning services were downslightly. Sales of ultrapure water production systems increased on the back of progresson projects in Japan and overseas. Sales of maintenance services also rose, while salesof tool cleaning services dropped slightly.
In general industries, orders for water treatment facilities declined versus the previous
fiscal year, while orders for maintenance services increased. Sales of water treatment
facilities declined amid a lull in sales from large projects in the steel industry. Sales ofsoil remediation services also dropped, but sales of maintenance services increased
versus the previous fiscal year.
Material Events during the Fiscal Year Ended March 31, 2011
In accordance with a resolution made at its board of directors meeting of October 29,
2010, Kurita Water Industries Ltd. repurchased 1,988,400 shares of stock (total amountof acquisition: 4,776,730,100 yen) between November 8, 2010 and December 22, 2010
on the Tokyo Stock Exchange via market orders.
Outlook for the Fiscal Year Ending March 31, 2012
The Group forecasts 192,000 million in net sales, 29,000 million in operating income,
29,500 million in ordinary income and 17,400 million in net income for the full fiscal
year ending March 31, 2012.
Overseas, we expect the mild recovery to continue, led by firm economic expansionin emerging countries, particularly China. In Japan, while we look for some growth indemand from overseas fueled by economic growth in Asia, production activity is likely
to be restricted owing to the repercussions of the recent disaster in Japan, which
include electric power and parts shortages.
Amid this environment, the Group will make every effort to help customers who
sustained damage in the disaster restore water treatment facilities. The Group will also
pursue new growth based on the objectives of MP-11, the Group’s medium-term
management plan, by raising the quality of its service businesses, which help
customers successfully meet challenges, and further expanding its global operations,where it sees strong growth potential.

22Outlook by Segment
Water Treatment Chemicals
The Kurita Group anticipates orders and earnings to be impacted by market contraction
due to the consolidation of production facilities, customers’ enhanced cost-cutting
efforts, as well as lower capacity utilization at customer factories resulting fromearthquake and tsunami damage.
Under such circumstances, the Group aims to secure orders by bolstering alliances
between Group companies both in Japan and overseas, accurately grasping customers’
needs, and providing swift solutions to issues that they face. To secure earnings, theGroup will endeavor to expand business by developing and expanding sales of new
products for overseas markets and continue to reduce manufacturing and distribution
costs.
Water Treatment Facilities
The Kurita Group is concerned about continued low levels of domestic capital
expenditure by customers, while it expects overseas capital expenditure to increase in
the Asian market, particularly in China, both in the electronics industry and generalindustries.
In this environment, the Group aims to secure orders by stepping up consultative sales
efforts aimed at key customers to help them, for example, reclaim wastewater andotherwise effectively utilize water resources. The Group will also work to secure
earnings by further expanding its service businesses, which are resilient to capital
expenditure trends, and by continuing to enhance quality, increase productivity, andreduce costs.
Financial Condition
Current assets totaled 117,852 million yen at the end of the fiscal year (March 31, 2011),
an increase of 8,555 million yen versus the end of the previous fiscal year (March 31,2010). The increase was mainly due to an increase of 18,710 million yen in cash anddeposits, which was partially offset by declines of 2,718 million yen in trade accounts
receivable and 8,500 million yen in marketable securities. The increase in cash anddeposits resulted from progress with collections of trade accounts receivable and adecrease in negotiable certificates of deposits, which are treated as marketable securities.
The decreases in trade accounts receivable and marketable securities are stated above.
Noncurrent assets totaled 135,446 million yen at the end of the fiscal year, a declineof 6,877 million yen versus the end of the previous fiscal year. The decline was due to a
9,892 million yen decrease in property, plant and equipment due to depreciation on past
years’ investments in ultrapure water supply business facilities exceeding current period
investments in property, plant and equipment. The decline was partially offset byincreases of 1,314 million yen in investment securities and 2,122 million yen in deferred
tax assets.
Current liabilities totaled 34,771 million yen at the end of the fiscal year, a decrease of
3,821 million yen versus the end of the previous fiscal year. The change was mainly due
to declines of 2,304 million yen in other accounts payable and 1,804 million yen inincome taxes payable. The decrease in other accounts payable was due to payment ofconsumption taxes, while the decrease in income taxes payable resulted from thepayment of annual and interim income taxes.
Noncurrent liabilities totaled 19,175 million yen at the end of the fiscal year, a slightincrease of 87 million yen versus the end of the previous fiscal year.
Net assets totaled 199,351 million yen at the end of the fiscal year, an increase of33

5,412 million yen versus the end of the previous fiscal year. The change mainly reflects
a 12,237 million yen increase in retained earnings due to positive net income for the
fiscal year. This increase was partially offset by a 4,785 million yen increase in treasury
stock due to open market repurchases, a 4,888 million yen decrease in retained earnings
due to dividend payments, and a 1,999 million yen decrease in total othercomprehensive income due to a decrease in unrealized gains on available-for-salesecurities reflecting a drop in the market prices of investment securities held by theGroup.
Cash Flows
Consolidated net cash and cash equivalents totaled 10,834 million yen at the end of the
fiscal year (March 31, 2011), a decrease of 9,756 million yen versus the end of theprevious fiscal year (March 31, 2010).
Cash Flows from Operating Activities
Net cash provided by operating activities was 29,796 million yen in the fiscal year
ended March 31, 2011, a decrease of 13,848 million yen versus the previous fiscal year
(ended March 31, 2010). This primarily reflects a net inflow comprising income before
income taxes of 27,844 million yen, 16,066 million yen in depreciation andamortization, and a 2,098 million yen decrease in trade notes and accounts receivable,
which was partially offset by the payment of income taxes in the amount of 13,371
million yen.
Cash Flows from Investing Activities
Net cash used in investing activities was 30,169 million yen in the fiscal year ended
March 31, 2011, a decrease of 14,181 million yen versus the previous fiscal year. This
primarily reflects 23,988 million yen in deposits (net of withdrawals) into time deposits
and outflows totaling 6,014 million yen for the acquisition of property, plant andequipment, mainly for the ultrapure water supply business. The net result of purchases
and redemptions of marketable securities and investment securities was only a small
inflow of 240 million yen.
Cash Flows from Financing Activities
Net cash used in financing activities was 9,032 million yen in the fiscal year ended
March 31, 2011, an increase of 4,173 million yen versus the previous fiscal year. This
mainly reflects dividend payments of 4,950 million yen and stock repurchases totaling
4,784 million yen.

44Cash Flow Indicators
Fiscal year ended March 31,
2007
2008
2009
2010
2011
Equity ratio (%)
66.7
73.2
72.2
76.5
78.2
Equity ratio (based on market capitalization) (%)
155.9
203.9
99.2
135.2
123.0
Interest-bearing debt to cash flow ratio (%)
4.1
4.0
24.8
18.7
29.8
Interest coverage ratio (times)
601.6
452.9
1,051.8
1,148.5
902.9
Equity ratio: Equity / Total assets
Equity ratio based on market capitalization: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest paid
Notes:
1. All indicators are calculated using financial figures produced on a consolidated basis.
2. Market capitalization is calculated by multiplying the closing stock price at the end of the periodby the number of shares issued and outstanding (excluding treasury stock) at the end of the period.
3. Cash flow from operating activities is used as the cash flow variable.
4. Interest-bearing debt refers to all debts recorded on the consolidated balance sheet that incur
interest payments.

Dividends
Kurita Water Industries intends to pay a year-end dividend of 19 yen per share for the
fiscal year ended March 31, 2011, the same amount as its previous year-end dividend.
This takes into account the Group’s business development going forward and is aimed
at rewarding shareholders for their support. This year-end dividend, together with theinterim dividend of 19 yen per share (a 2 yen increase from the previous interim
dividend), will result in an annual dividend of 38 yen per share, an increase of 2 yen per
share versus the previous fiscal year.
For the fiscal year ending March 31, 2012, Kurita Water Industries intends to pay aninterim dividend of 20 yen per share and a year-end dividend of 20 yen per share, giving
an annual dividend of 40 yen per share.
Business and Other Risks
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, 2011.
1. Economic and market conditions
The Group’s Water Treatment Chemicals and Water Treatment Facilities businesses areaffected by economic conditions in Japan and countries and regions outside Japan where
the Group operates. Demand in the Water Treatment Chemicals business fluctuates in
response to factory capacity utilization rates in industries such as steel, petroleum
refining and petrochemicals, and pulp and paper—main sources of demand for thebusiness. Such demand fluctuations may affect the Group’s financial results. Demand in
the Water Treatment Facilities business fluctuates in response to trends in capital
expenditure in electronics—main sources of demand for the business—and otherindustries. Such demand fluctuations may affect the Group’s financial results.
More intense 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 manufactureof products and fabrication of facilities. The prices of raw materials and parts fluctuate
based on changes in market conditions, and this may affect the Group’s financial results.
55

3. Overseas business development
The Group is striving to expand its business outside Japan. In contrast to the Japanesemarket, doing business in overseas markets involves a number of inherent, unforeseenrisks, including the risk of changes to local laws and regulations, the risk of political andeconomic instability, and the risk of foreign exchange rate fluctuations. If such risksmaterialized, the Group’s financial results could be affected.
4. New product development
The Group continuously endeavors to develop new technology and appealing 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 that meet the needsof its customers or launch new products in a timely fashion. The Group may also fail tokeep pace with rapid changes in technological innovation and changing customer needs.
If the Group were to fail to develop appealing new products, this could hamper its
future growth and profitability or otherwise affect its financial results.
5. Intellectual property
The Group recognizes the importance of intellectual property and continually seeks toregister its own intellectual property while avoiding infringing the intellectual property
rights of third parties, both in Japan and overseas. Given the wide scope of the Group’sbusiness, however, there is potential for the Group’s intellectual property rights to be
infringed and potential for the Group to infringe the rights of third parties. Suchoccurrences may affect the Group’s financial results.
6. Dependence on 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’s businessactivities, financial 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, financial results,
and financial condition could be negatively affected.

66Management Policy(1) Basic management policy
The Kurita Group operates under the corporate philosophy, “Study the properties ofwater, master them, and we will create an environment in which nature and man are inharmony.” The Group conducts business activities in the aim of becoming an advanced
water and environmental management company.
The Group seeks to enhance management transparency by making appropriate andtimely information disclosures to shareholders, investors, and other stakeholders.
In April 2009, the Group launched a three-year management plan, Make Progress2011 (MP-11), the basic theme of which is “Evolution and Progress.”(2) Medium- to long-term management strategy
Fiscal 2010 was the second year of the MP-11 three-year plan. The basic objectives ofthe plan are to strengthen customer trust, enhance business quality, and carve out new
business domains. Under the plan, the Group has worked to achieve sustained growth
by further expanding its service businesses and global operations and developing new
products and businesses, while also practicing rigorous risk management throughout theGroup.
1) Expand and evolve service businesses
Through its service businesses, the Kurita Group works hand in hand with customers to
help them solve such challenges as productivity enhancement and environmental
mitigation. Expanding service businesses is one pillar of these activities, with the aim of
ensuring sustained Group growth. The Group is evolving its business models, as it has
been doing in the ultrapure water supply business thus far, while also working to
generate new value through water and provide even greater levels of value to customers.
Through these efforts, the Group hopes to improve profitability and competitiveness.
In fiscal year ended March 31, 2011, the Group worked to maintain a stable supply ofultrapure water and expand the business.
2) Expand global operations
In line with the corporate vision of becoming an advanced water and environmental
management company, the Group will continue working to expand its business domains
and market share, particularly in China and East Asia, which require effective water
resource management solutions as their economies grow. Specific measures include
increasing personnel and strengthening the organizational structure in these regions.
In the fiscal year ended March 31, 2011, the Group worked to secure orders by further
strengthening alliances with overseas operating companies and engaging in sales efforts
tailored to circumstances in each respective country.
3) Bolster operating baseAmid a diversifying business environment, the Kurita Group set forth a Fundamental
Policy Regarding the Establishment of Internal Control Systems in 2006. Based on thispolicy, Kurita is instituting and bolstering risk management and internal controls
throughout the Group. The Group will also work to improve manufacturing and humanresource capabilities, recognizing that it must continually raise the quality of products,
technologies, and services it provides to customers and develop the people who support
these activities.
77

(3) Issues to be addressed
Looking at the global economy, large-scale structural change is taking place as China
and other emerging economies continue to enjoy economic growth, while developed
nations as a whole are experiencing economic stagnation. In Japan, companies are
responding to globalization by expanding their manufacturing bases overseas,
consolidating their manufacturing bases in Japan, and cutting costs. These trends are
expected to intensify. In addition, companies are expected to accelerate their efforts tomake more efficient use of energy and reduce their carbon dioxide emissions in order toreduce their environment footprints.
A number of factors cloud the future global economic outlook, among them the Great
Eastern Japan Earthquake and power shortages in its aftermath, along with rising oil
prices and other issues arising from instability in the Middle East.
Amid this economic environment, the Kurita Group will tackle the following issues andstrive to generate sustained growth into the future.
1) Enhance service businesses by creating products, technologies, and services that
help to resolving customers’ challenges
The Group’s service businesses will aim to help solve customers’ challenges,
such as productivity enhancement and environmental mitigation, through thedevelopment of products and technologies in the Group’s key areas of water
treatment chemicals, water treatment facilities, and maintenance services.
2) Accelerate global expansion as a unified GroupThe Group will work to develop its presence in China and other emerging
economies with strong economic growth potential through active sales efforts inthe Water Treatment Chemicals business and by expanding the market share of
the Water Treatment Facilities business in electronics industries, including
flat-panel displays and semiconductors manufacturers. The Group will also aim
to expand wastewater reclamation products and services in general industries.
3) Continue rigorous risk management
The risks that the Kurita Group faces continue to diversify. Responding rapidly
to risks is important for the very survival of a company. The Group continues topractice rigorous risk management and enhance its internal control system.
By carrying out the above initiatives, the Kurita Group aims to fulfill its corporate
vision of becoming an advanced water and environmental management company andachieve “Evolution and Progress,” the basic theme of MP-11.
Though the Great Eastern Japan Earthquake has impacted the supply of raw materials
from suppliers in Japan, the Kurita Group is working to ensure that this does not hinder
its provision of products and services to customers. As for customers impacted by thedisaster, the Kurita Group is doing everything it can to support the recovery of theirwater treatment facilities and contribute to the resumption of their manufacturing
operations.

88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
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, 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
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
Liabilities
Current liabilities
Notes payable – trade
Accounts payable - trade
Accounts payable - other / Accrued expenses
Income taxes payable
Accrued employees’ bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Lease obligations
Deferred tax liabilities related to revaluation
Accrued employees’ retirement benefits

9

As of
March 31, 2010
AmountAs ofMarch 31, 2011
Amount16,363
5,393
49,97528,500
1,334
2,600
1,186
2,463
1,611
(132)
109,297

35,073
5,983
47,25720,000
1,303
2,643
1,533
2,312
1,785
(40)
117,852

64,101(27,559)
36,54180,472(28,730)
51,742
13,981
7,599
(548)
7,051
5,273
11,042(9,133)
1,909
116,500

64,296(32,043)
32,252
86,962(38,045)
48,917
14,072
7,668
(987)
6,680
3,001
11,158(9,474)
1,683
106,608

1,536
637
2,173

1,388
551
1,939

15,743
6,184
1,926
(205)
23,649142,323
251,620

17,057
8,306
1,717
(184)
26,897
135,446
253,298

1,198
15,632
7,089
7,430
2,377
546
4,317
38,592

1,402
15,058
4,785
5,626
2,336
927
4,634
34,771

6,925
1,509
9,465

6,535
1,509
9,936

9

Accrued retirement benefits for directors and corporate
auditors
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

10

449

440

737
19,08857,680754
19,17553,946

13,45011,426
172,717(4,855)
192,738

13,45011,426
184,954(9,640)200,191

1,989
(764)
(1,374)(149)
1,350
193,939
251,620623(764)(2,006)(2,148)
1,308
199,351
253,29810

Statements of Income and Comprehensive Income— Consolidated(millions of yen)

Net 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
and affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Commissions paid
Loss on disposal of properties
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain from cancellation of contracts
Total extraordinary income
Extraordinary losses
Loss on disposal of properties
Impairment losses
Loss on liquidation of affiliated companies
Loss on liquidation of business
Disaster losses
Disaster recovery expenses
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

11Year ended March 31, Year ended March 31,
2010
2011
AmountAmount178,520
181,234
117,221
118,573
61,29962,66034,941
35,52826,35827,131
97
233

116
308

270

308

404
1,006

570
1,303

26
60
6
174
268
27,096

34
61
28
35
117
276
28,158

1,507
1,507

-

253
36
136
426
28,178

73
124
115
314
27,844

12,197(1,379)10,817-

11,653(1,069)10,583
17,26072

121

17,28817,13811

(millions of yen)

Income before minority interests
Other comprehensive income
Unrealized gains on available-for-sale securities
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
the parent company
Comprehensive income attributable to minority
interests

12

Year ended March 31, Year ended March 31,
2010
2011
AmountAmount17,260(1,364)
(639)
-

(46)

-

(2,050)15,209-15,139-70

12

Statements of Changes in Shareholders’ Equity — Consolidated(millions of yen)

Year ended
March 31, 2010
AmountShareholders’ equity
Common stock
Balance as of end of the previous fiscal year
Change during period
Total change during period
Balance as of end of the fiscal year
Capital surplus
Balance as of end of the previous fiscal year
Change during period
Total change during period
Balance as of end of the fiscal year
Retained earnings
Balance as of end of the previous fiscal year
Change during period
Dividend from surplus
Other
Net income
Reversal of unrealized gains (losses) on revaluationof land
Total change during period
Balance as of end of the fiscal year
Treasury stock
Balance as of end of the previous fiscal year
Change during period
Purchase of treasury stock
Total change during period
Balance as of end of the fiscal year
Total shareholders’ equity
Balance as of end of the previous fiscal year
Change during period
Dividend from surplus
Other
Net income
Purchase of treasury stockReversal of unrealized gains (losses) on revaluationof land
Total change during period
Balance as of end of the fiscal year

13

Year ended
March 31, 2011
Amount13,45013,45013,45013,45011,426

11,426

11,426

11,426

159,792

172,717(4,374)(2)
17,288(4,888)(12)
17,13813-

12,925
172,717

12,236
184,954(4,847)(4,855)(8)(8)(4,855)(4,784)(4,784)(9,640)179,821

192,738(4,374)(2)
17,288(8)(4,888)(12)
17,138(4,784)

13-

12,916
192,738

7,452
200,19113

Accumulated other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Balance as of end of the previous fiscal year
Change during period
Net change in items other than shareholders’ equity
during period
Total change during period
Balance as of end of the fiscal year
Unrealized gains (losses) on revaluation of land
Balance as of end of the previous fiscal year
Change during period
Net change in items other than shareholders’ equity
during period
Total change during period
Balance as of end of the fiscal year
Foreign currency translation adjustments
Balance as of end of the previous fiscal year
Change during period
Net change in items other than shareholders’ equity
during period

170

1,989

1,818

(1,366)

1,818
1,989

(1,366)
623

(750)

(764)

(13)

-

(13)
(764)

(764)

(1,950)(1,374)

575

(632)

575
(1,374)(632)(2,006)(2,530)

(149)

2,380

(1,998)

Total change during period
Balance as of end of the fiscal year
Minority interests
Balance as of end of the previous fiscal year
Change during period
Net change in items other than shareholders’ equity
during period

2,380
(149)

(1,998)(2,148)

1,335

1,350

15

(42)

Total change during period
Balance as of end of the fiscal year
Total net assets
Balance as of end of the previous fiscal year
Change during period
Dividend from surplus
Other
Net income
Purchase of treasury stockReversal of unrealized gains (losses) on revaluation ofland
Net change in items other than shareholders’ equity
during period
Total change during period
Balance as of end of the fiscal year

15
1,350

(42)
1,308

178,626

193,939(4,374)(2)
17,288(8)(4,888)(12)
17,138(4,784)

13

-

2,395

(2,040)15,312
193,9395,411
199,351

Total change during period
Balance as of end of the fiscal year
Total accumulated other comprehensive income
Balance as of end of the previous fiscal year
Change during period
Net change in items other than shareholders’ equity
during period

14

14Statements of Cash Flows — Consolidated(millions of yen)

Year ended
March 31, 2010
AmountYear ended
March 31, 2011
Amount28,17815,523

27,844
16,066

(270)

(308)

799

455

(645)
(331)
26
(140)
(1,371)

225
(424)
34
(333)
314

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 allowance for employees’ retirement
benefits
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(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 advances received
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

245

18

4,351
2,194
(230)
(1,936)
(878)
1,945
125
47,586
685
4,025
(38)
(404)
(8,209)43,644

2,098
(461)
(350)
(573)
(884)
(1,430)200
42,490
703
490
(33)
(482)
(13,371)
29,796

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 purchases of investment securities
Proceeds from sale and redemption of investment securities
Other payments
Other proceeds
Net cash provided by (used in) investing activities

(587)
1,357
(27,999)
4,799(19,278)
56(2,109)71(1,176)515(44,350)(39,723)
15,735(65,000)
69,000(6,014)30(3,810)
50
(734)
295
(30,169)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of finance lease obligations
Purchase of treasury stock
Cash dividends paid

67
(451)
(8)
(4,369)

1,183
(480)
(4,784)(4,886)15

15

Cash dividends paid to minority shareholders
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
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at the end of the period

16

(96)
(4,859)(64)(9,032)

832

(397)

(4,732)25,262(9,802)
20,59060

46

20,59010,83416

Segment Information
Business segment information
Year ended March 31, 2010 (April 1, 2009 – March 31, 2010)(millions of yen)

Water
Treatment
Chemicals

Water
Treatment
Facilities

Total

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total

53,743455
54,199124,777
78
124,855

Operating cost and expenses

46,022

Operating income
II. Assets, depreciation and capital
expenditure
AssetsEliminationor corporate

Consolidated

178,520534
179,055

(534)
(534)

178,520
178,520

106,674

152,697(534)

152,162

8,177

18,181

26,358-26,35835,194

168,119

203,31448,306

251,620

Depreciation and amortization

1,662

13,86015,523-

15,523

Capital expenditures

1,151

6,932

8,083

-

8,083

Notes:
1. No unallocated operating costs or expenses were included in “Elimination or corporate”.
2. Unallocated corporate assets included in “Elimination or corporate” amounted to 48,369 million
yen consisting principally of cash deposits, securities in trust, and long-term investments (cashdeposits, marketable securities and investment securities).
3. Effective the fiscal year ended March 31, 2010, the Company adopted the Partial Amendments to
Accounting Standard for Retirement Benefits (Part3) (ASBJ Statement No.19, July, 31, 2008). Dueto this change, operating income in the Water Treatment Chemicals segment was 290 million yen
lower and in the Water Treatment Facilities, 585 million yen lower than would have resulted withthe previous accounting method.
4. Effective the fiscal year ended March 31, 2010, the Company and certain consolidated subsidiaries
in Japan adopted the Accounting Standard for Construction Contracts (ASBJ Statement No.15,
December 27, 2007) and its accompanying Guidance on the Accounting Standard for Construction
Contracts (ASBJ Guidance No.18, December 27, 2007). Due to this change, for the fiscal year
ended March 31, 2010, net sales and operating income in the Water Treatment Facilities segment
were 6,265 million yen higher and 1,244 million yen higher, respectively, than would have resulted
with the previous accounting method.

Geographical segment information
Year ended March 31, 2010 (April 1, 2009 – March 31, 2010)(millions of yen)

Eliminationor corporate

Consolidated

Japan

Other
regions

I. Sales and operating income
Sales(1) Sales to outside customers(2) Inter-segment sales
Total
Operating cost and expenses
Operating income

163,696
1,561
165,257
140,733
24,523

14,824238
15,063
13,544
1,518

178,520
1,799
180,320
154,278
26,042(1,799)(1,799)(2,115)315

178,520
178,520
152,162
26,358

II. Assets

185,816

8,116

193,932

57,687

251,620

Total

Notes:
1. Geographic segmentation is based on geographic proximity.
2. “Other regions” in the above table consists of Asia and other areas.
3. No unallocated operating costs or expenses were included in “Elimination or corporate”.

1717

4. Amounts and details of unallocated corporate assets included in “Elimination or corporate” were
the same as those stated in note 2 in the “Business segment information” section.
5. Effective the fiscal year ended March 31, 2010, the Company adopted the Partial Amendments to
Accounting Standard for Retirement Benefits (Part3) (ASBJ Statement No.19, July, 31, 2008). Dueto this change, in Japan operating income was 876 million yen lower than would have resulted
with the previous accounting method.
6. Effective the fiscal year ended March 31, 2010, the Company and certain consolidated subsidiaries
in Japan adopted the Accounting Standard for Construction Contracts (ASBJ Statement No.15,
December 27, 2007) and its accompanying Guidance on the Accounting Standard for Construction
Contracts (ASBJ Guidance No.18, December 27, 2007). Due to this change, for the fiscal year
ended March 31, 2010, in Japan sales were 6,265 million yen higher and operating income was
1,244 million yen higher than would have resulted with the previous accounting method.

Overseas sales
Year ended March 31, 2010 (April 1, 2009 – March 31, 2010)(millions of yen)I.

Overseas sales

Asia
13,404

North
America
1,626Europe
1,399

Other
2,581

Total
19,011

II. Consolidated net sales
178,520
III. Ratio of overseas sales to total
7.5%
0.9%
0.8%
1.4%
10.6%
consolidated sales
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.
4. Effective the fiscal year ended March 31, 2010, the Company and certain consolidated subsidiaries
in Japan adopted the Accounting Standard for Construction Contracts (ASBJ Statement No.15,
December 27, 2007) and its accompanying Guidance on the Accounting Standard for Construction
Contracts (ASBJ Guidance No.18, December 27, 2007). Due to this change, for the fiscal year
ended March 31, 2010, sales in Asia were 1,794 million yen higher than would have resulted withthe previous accounting method.

18

18

Additional information
Effective the fiscal year ended March 31, 2011, the Company adopted the Revised Accounting Standard
for Disclosures about Segments of an Enterprise and Related Information (ASBJ Statement No. 17,
revised March 27, 2009) and its accompanying Guidance on the Accounting Standard for Disclosuresabout Segments of an Enterprise and Related information (Guidance No. 20, March 21, 2008).
1. Overview of reportable segments
The Company’s reportable segments are components of the Company 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. The Company’s consolidated subsidiaries conduct business under relevant business divisions’supervision.
The Group’s operations are therefore segmented based on the products and services handled by eachof the divisions. The Company’s reportable segments correspond to the segments it has used thus far,namely the Water Treatment Chemicals segment and Water Treatment Facilities segment.
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 thatencompass operation, maintenance, and management of water treatment facilities.

2. Method for calculating sales, income and loss, assets and liabilities, and other amounts by reportablesegment
Segment income represent 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 book values.
3. Sales, income and loss, assets and liabilities, and other amounts by reportable segment
Year ended March 31, 2010 (April 1, 2009 – March 31, 2010)
The Company has omitted disclosure here because the figures appearing in the segment information
related to consolidated financial statements that the Company has elsewhere disclosed for its previous
segmentation are the same as or similar to figures that would result under the Revised AccountingStandard for Disclosures about Segments of an Enterprise and Related Information (ASBJ Statement No.
17, revised March 27, 2009.)
Year ended March 31, 2011 (April 1, 2010 – March 31, 2011)(millions of yen)

Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Total

Adjustments(see note)

Amounts reported on
the statements ofincomeSales(1) Sales to outside customers(2) Inter-segment sales and transfers
Total

56,735349
57,084

124,499180
124,680

181,234
530
181,764

—
(530)
(530)

181,234—
181,234

Segment income

10,09917,032

27,131

0

27,131

Segment assets

36,444

158,414

194,859

58,439253,298

Segment liabilities

16,91937,15554,075(128)

53,946

16,066—

16,066

5,965

—

5,965

Other amounts
Depreciation
1,539
14,527
Change in property, plant and
1,183
4,781
equipment and intangible fixed
assetsNote: “Adjustments” represents the following:
1. Sales: Elimination of inter-segment transactions.

1919

2. Segment income: Amount resulting from eliminations of inter-segment transactions.
3. Segment assets: Mainly corporate assets of 58,572 million yen not included in reportable segment
assets (cash deposits, securities in trust, and long-term investments).
4. Segment liabilities: Amount resulting eliminations of inter-segment claims and liabilities.

Related information
Year ended March 31, 2011 (April 1, 2010 – March 31, 2011)
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(millions of yen)
North
Japan
Europe
Other
Total
Asia
America
19,195
2,820
1,276
3,075
181,234
154,867
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
Name of customer
Sharp Corporation(millions of yen)
Name of transacting segment
Water Treatment Facilities

Sales
28,1494. Information on impairment of reportable segments’ fixed assets
Not applicable
5. Goodwill amortization and unamortized balance of goodwill by segment(millions of yen)
Reportable segment
Water
Water
Treatment
Treatment
Chemicals
Facilities
Goodwill
amortization
Unamortizedbalance of
goodwill

Total

Eliminationor corporate

Total

59

—

59

—

59

44

—

44

—

44

6. Information on negative goodwill gains
Not applicable20

20

Other Information — Consolidated
Net Sales(millions of yen)

Year ended March 31,
2010

2011

Business segment
Water Treatment Chemicals

Amount53,743%30.1

Amount56,735%
31.3

Water Treatment Facilities

124,777

69.9

124,499

68.7

Total

178,520100.0

181,234

100.0

Order Intake and Backlog(millions of yen)

Year ended March 31,
2010
Business segment
Water Treatment
Chemicals
Water Treatment
Order Intake
Facilities
Total
Water Treatment
Chemicals
Order Backlog Water Treatment
Facilities
Total

2011

Amount%Amount%53,37030.5

56,71431.2

121,79169.5

125,23768.8

175,162100.0

181,951

100.0

3,647

7.1

3,627

7.0

47,497

92.9

48,23593.0

51,145100.0

51,862100.0

Production Results(millions of yen)

Year ended March 31,
Business segment
Water Treatment Chemicals

2010
Amount52,575%
29.9

Amount56,873

2011
%
31.5

Water Treatment Facilities

123,306

70.1

123,959

68.5

Total
175,882
Note: The amounts were based on sales amounts.

100.0

180,832

100.0

Capital Expenditures (Property, Plant and Equipment)(millions of yen)

Year ended March 31,
Business segment
Water Treatment Chemicals

2010
Amount908%
12.1

Amount
977

2011
%
17.9

Water Treatment Facilities

6,616

87.9

4,492

82.1

Total

7,525

100.0

5,469

100.0

Depreciation (Property, Plant and Equipment)(millions of yen)

Year ended March 31,
Business segment
Water Treatment Chemicals

2010
Amount1,319

Water Treatment Facilities
Total

2011
8.9

Amount1,203

13,52091.1

14,172

92.2

14,840100.0

15,375

100.0

21

%

%
7.8

21