Kurita Water Industries Ltd. · TSE:6370

Kurita Water Industries — FY2025 Earnings Presentation

43 slides from Kurita Water Industries's earnings presentation, May 9, 2025

  1. Slide 1: Results Presentation for the Fiscal Year Ended March 31, 2025

    Kurita Water Industries Ltd. Results Presentation for the Fiscal Year Ended March 31, 2025 (Securities code: 6370) May 9, 2025 © KURITA WATER INDUSTRIES LTD. All Rights Reserved.

  2. Slide 2: Summary of Results

    Summary of Results FY 03/2025 Results Net Sales +6%, Business profit +17%, Net Profit* -30% ⚫ Secured orders for large-scale electrical facilities projects in the US and Europe in the fourth quarter ⚫ Service business net sales rose in both Electronics Industry and General Industry segments, driving

  3. Slide 3: Table of Contents

    Table of Contents Progress of “Pioneering Shared Value 1 P. 3‐18 2027（PSV-27）” Consolidated Financial Results 2 P. 19‐30 for the Fiscal Year Ended March 31, 2025 Consolidated Business Forecast 3 P. 31‐41 for the Fiscal Year Ending March 31, 2026 * PSV-27 is medium-term management plan, “Pioneering S

  4. Slide 4: Progress of Pioneering Shared Value 2027 (PSV-27)

    1 Progress of “ Pioneering Shared Value 2027（PSV-27）” © KURITA WATER INDUSTRIES LTD. All Rights Reserved.

  5. Slide 5: PSV-27 and Materiality (Value Pioneering Path)

    PSV-27 and Materiality（Value Pioneering Path） Corporate Vision Pioneering “new value for water” to contribute to the realization of a sustainable society （Vision for 2030） Medium-Term Management Plan PSV-27 Shareholder Returns Enhancement of Corporate Value Create and provide creative and Financial

  6. Slide 6: Electronics Industry: Progress to Date

    Progress to Date We have steadily advanced priority measures under the PSV-27 plan, laying the foundations to contribute to future growth. Priority Measures Progress Business Evolving the water supply Electronics Industry profit margin business Secured two new customer projects 16.0% Strengthening t

  7. Slide 7: Priority Measures: Evolving the Water Supply Business

    Priority Measures: Evolving the Water Supply Business In addition to growth expectations driven by subsequent projects from existing customers, we are taking on the challenge of further expanding our customer base. FY 03/2023 FY 03/2024 FY 03/2025 FY 03/2026 FY 03/2027 FY 03/2028 FY 03/2029 - FY 03/

  8. Slide 8: Priority Measures: Expansion of the CSV Business

    Priority Measures: Expansion of the CSV Business In addition to steadily accumulating sales and service models, profitability improvements and greenhouse gas reductions have advanced more than expected. In light of the progress made up to FY 03/2025, Number of Water savings were revised downward fro

  9. Slide 9: Improvement Strategies over the Next Three Years

    Improvement Strategies over the Next Three Years We will view changes to the business environment as an opportunity and identify growth areas where we can leverage our competitive advantages. Electronics Industry General Industry Business environment Business environment ⚫ Medium- to long-term growt

  10. Slide 10: Priority Measures Based on Improvement Strategies

    Priority Measures Based on Improvement Strategies In light of the progress made to date and new priority measures, we have re-set our targets for the final year of the plan. Electronics Industry General industry Expand starting points for the service business globally Advance businesses focused on t

  11. Slide 11: Reinforce Business Foundations Including Europe and North America

    Electronics Reinforce Business Foundations Including Industry Europe and North America We will enhance our business foundations, reflecting strengthened relationships with semiconductor manufacturers including global accounts. In the semiconductor market, which is expected to expand in the medium- t

  12. Slide 12: Secure Facilities Projects Through Efficient Production Systems

    Electronics Secure Facilities Projects Through Industry Efficient Production Systems With production process transformation and EP (+ modules), acquiring facilities projects as a starting point for service businesses Production Process EP (+ modules) Transformation Front loading Contracts specializi

  13. Slide 13: Expanding the Service Business with Facilities as the Starting Point

    Electronics Expanding the Service Business with Facilities Industry as the Starting Point Through service business acquisitions targeting facilities projects as a starting point, developing stable business foundations in the medium- to long-term Water • Increased demands against a backdrop treatment

  14. Slide 14: Revitalization of the Precision Tool Cleaning Business

    Electronics Revitalization of Industry the Precision Tool Cleaning Business Making progress in securing cleaning projects delivered from large-scale facility projects in Japan and the US, shifting to a new stage of growth New Strategies Aimed at FY 03/2028 Net sales ¥35.0 billion Securing projects w

  15. Slide 15: CSV Business Expansion Initiatives

    General Industry CSV Business Expansion Initiatives With working around five key points, expanding the CSV business globally by combining industry- and regional-specific approaches. Five key points for CSV business expansion By industry Enhancing expansion Creation of new models 1 ➢ Quantity of mode

  16. Slide 16: Advancing Businesses Focused on Value

    General Industry Advancing Businesses Focused on Value In addition to the CSV business, promoting service businesses that are focused on the value we provide to customers Advanced maintenance Ongoing value-driven business revisions • Aging facilities and equipment Customer • Labor shortages in the o

  17. Slide 17: Creating and Expanding New Business

    General Industry Creating and Expanding New Business Cultivating new business opportunities rooted in social value. New business for PFAS/PFOA measures Identifying both existing issues and future issues to provide solutions as a partner to customers Water quality Perspective of avoiding use Business

  18. Slide 18: The PSV-27 Plan

    The PSV-27 Plan In light of the progress made to date and future enhancements to strategy, we have revised both our financial and non-financial targets. Medium-Term Management Plan Pioneering Shared Value 2027 (FY 03/2024 to FY 03/2028) Financial indicators (FY 03/2028 targets) Key non-financial ind

  19. Slide 19: Initiatives to Enhance Corporate Value

    Initiatives to Enhance Corporate Value Maximizing of corporate value through expanded equity spreads and solid shareholder returns ROE 12% or more (Yen) 10.7% 300 9.3% 7.1% 7.0% 6.1% Shareholder return 250 per share 200 Considering through ¥ 134 further 150 share buyback shareholder Maximization ret

  20. Slide 20: Consolidated Financial Results for the Fiscal Year Ended March 31, 2025

    2 Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 © KURITA WATER INDUSTRIES LTD. All Rights Reserved.

  21. Slide 21: Overview of Results

    Overview of Results FY 03/2025 FY 03/2024 FY 03/2025 Forecast （Billions of Yen） 80 (Billions of Yen) YoY YoY Results Results (Announced 433.0 Change change rate in Nov.) 408.9 374.3 390.2 384.8 Orders 390.2 433.0 + 42.8 + 11.0% 425.0 344.6 Net Sales 384.8 408.9 + 24.1 + 6.3% 410.0 49.2 42.1 Business

  22. Slide 22: Factors in Business Profit Change (YoY Change)

    Factors in Business Profit Change (YoY Change) Improving the Increase in SG&A expenses Impact of foreign (Billions of Yen) cost of sales ratio exchange rate + 8.4 (7.1) and new Impact of consolidation* increased sales 50 + 0.7 49.2 + 5.1 42.1 40 Electronics ⚫ Increased in personnel Industry expenses

  23. Slide 23: Electronics Industry Results by Segment

    Electronics Industry Results by Segment FY 03/2025 Facilities FY 03/2024 FY 03/2025 Forecast (Billions of Yen) Results Results YoY Change (Announced ⚫ Orders increased due to the acquisition of a large-scale in Nov.) project in Europe. Orders 165.8 195.0 + 29.2 195.0 ⚫ Net sales decreased due to the

  24. Slide 24: Electronics Industry: Factors in Business Profit Change

    Electronics Industry Factors in Business Profit Change (YoY Change) Improving the Increase in (Billions of Yen) cost of sales ratio SG&A expenses + 6.0 (3.3) Impact of foreign exchange rate 25 Impact of + 0.2 24.2 increased sales + 1.3 19.9 20 ⚫ Increased in ⚫ Improved the personnel expenses busines

  25. Slide 25: General Industry Results by Segment

    General Industry Results by Segment FY 03/2025 Facilities FY 03/2024 FY 03/2025 Forecast (Billions of Yen) Results Results YoY Change (Announced ⚫ Orders increased due to the acquisition of a large-scale in Nov.) semiconductor facility project in North America. Orders 224.3 238.0 + 13.6 230.0 ⚫ Net

  26. Slide 26: General Industry: Factors in Business Profit Change

    General Industry Factors in Business Profit Change (YoY Change) Improving the Increase in (Billions of Yen) Impact of foreign cost of sales ratio SG&A expenses 30 Impact of exchange rate increased sales + 2.2 (3.8) and new consolidation* + 4.0 25.0 + 0.5 25 22.1 ⚫ Expansion of CSV ⚫ Increased mainly

  27. Slide 27: CSV Business

    CSV Business CSV Business Net Sales Number of CSV Business Models FY 03/2025 End of End of FY 03/2024 FY 03/2025 Forecast YoY Change (Billions of Yen) March 2024 March 2025 Results Results (Announced YoY Change in Nov.) Consolidated 78 96 + 18 Consolidated 40.2 47.3 + 7.1 48.0 Electronics 12.1 12.2

  28. Slide 28: Net Sales by Region

    Net Sales by Region Net Sales by Region (Consolidated) ⚫ Japan : Decreased Electronics Affected by the absence of sales coming from a Japanese Industry FY 03/2025 FY 03/2024 FY 03/2025 Forecast large-scale facility project posted in the previous fiscal year. (Billions of Yen) Results Results (Announ

  29. Slide 29: Capital Expenditures, Depreciation and R&D Expenses

    Capital Expenditures, Depreciation and R&D Expenses FY 03/2025 ⚫ Capital expenditures increased compared to the previous fiscal FY 03/2024 FY 03/2025 Forecast year due to a higher investment in precision tool cleaning (Billions of Yen) Results Results (Announced YoY Change business. in Nov.) Capital

  30. Slide 30: Financial Condition

    Financial Condition End of End of (Billions of Yen) Change March 2024 March 2025 Cash and Cash Equivalents 54.0 63.0 + 8.9 ⚫ Total current assets declined due to decreases in contract assets. Trade and Other Receivables 139.5 126.4 (13.1) Inventories ⚫ Property, plant and equipment increased due to

  31. Slide 31: The Share Buyback

    The Share Buyback Ensuring a flexible capital strategy at the right time Policy of Shareholder returns Cash Allocation ➢ Continue to increase dividends systematically over the long ➢ Prioritize growth investments with an eye on the PSV-27 plan and term, maintaining dividend payout ratio of 30% to 50

  32. Slide 32: Consolidated Business Forecast for the Fiscal Year Ending March 31, 2026

    2 Consolidated Business Forecast for the Fiscal Year Ending March 31, 2026 © KURITA WATER INDUSTRIES LTD. All Rights Reserved.

  33. Slide 33: Assumptions in the Business Forecast for FY 03/2026

    Assumptions in the Business Forecast for FY 03/2026 At this point it is difficult to predict the impact of increased US tariffs, and this factor is not reflected in the business forecast. ⚫ The global economy is on a moderate recovery track, although some regions are showing stagnation. Japan Modera

  34. Slide 34: Overview of Business Forecast

    Overview of Business Forecast FY 03/2025 FY 03/2026 （Billions of Yen） (Billions of Yen) YoY 433.0 425.0 Results Forecast YoY Change 390.2 408.9 425.0 change rate 384.8 Orders 433.0 425.0 (8.0) (1.8%) Net Sales 408.9 425.0 + 16.1 + 3.9% 49.2 54.0 Business Profit 49.2 54.0 + 4.8 + 9.8% 42.1 Business P

  35. Slide 35: Factors in Business Profit Change (YoY Change)

    Factors in Business Profit Change (YoY Change) (Billions of Yen) Impact of Worsened the Increase in 65 Increased sales cost of sales ratio SG&A expenses Impact of foreign + 10.4 (0.6) (3.5) exchange rate 60 55 (1.4) 54.0 49.2 50 Electronics ⚫ Increased mainly in 45 Industry personnel expenses and Wo

  36. Slide 36: Electronics Industry Forecast by Segment

    Electronics Industry Forecast by Segment Facilities FY 03/2025 FY 03/2026 (Billions of Yen) Results Forecast YoY Change ⚫ Orders for large-scale projects are expected in Japan and North America. Orders 195.0 210.0 + 15.0 ⚫ Net sales are expected to increase due to the progress of Facilities 76.8 94.

  37. Slide 37: Electronics Industry: Factors in Business Profit Change

    Electronics Industry Factors in Business Profit Change (YoY Change) (Billions of Yen) Impact of Worsened the increased sales cost of sales ratio 35 Increase in + 8.4 (2.8) SG&A expenses Impact of foreign (3.2) exchange rate 30 26.0 (0.6) 24.2 25 ⚫ The business mix worsen due to lower ⚫ Increase serv

  38. Slide 38: General Industry Forecast by Segment

    General Industry Forecast by Segment Facilities FY 03/2025 FY 03/2026 (Billions of Yen) Results Forecast YoY Change ⚫ Both orders and net sales are expected to decrease due to the impact of segment transfer of facility business for electronics Orders 238.0 215.0 (23.0) industry. * Facility projects

  39. Slide 39: General Industry: Factors in Business Profit Change

    General Industry Factors in Business Profit Change (YoY Change) (Billions of Yen) Improving the Increase in Impact of foreign cost of sales ratio SG&A expenses exchange rate Impact of + 4.8 (0.4) 30 decreased sales (0.8) 28.0 25.0 (0.6) 25 ⚫ The business mix is expected 20 to be improved due to an ⚫

  40. Slide 40: CSV Business

    CSV Business CSV Business Net Sales FY 03/2025 FY 03/2026 (Billions of Yen) Results Forecast YoY Change Consolidated 47.3 55.5 + 8.2 Electronics 12.2 11.5 (0.7) Industry General 35.0 44.0 + 9.0 Industry CSV Business Net Sales CSV Business Net Sales CSV Business Net Sales (Consolidated) (Electronics

  41. Slide 41: Net Sales by Region

    Net Sales by Region Japan : Increase Net Sales by Region (Consolidated) ⚫ Construction progress in a large-scale facility project for Electronics Europe is expected. Industry FY 03/2025 FY 03/2026 (Billions of Yen) Results Forecast ⚫ North and South America : Increase YoY Change Construction progres

  42. Slide 42: Capital Expenditures, Depreciation and R&D Expenses

    Capital Expenditures, Depreciation and R&D Expenses ⚫ Capital expenditures for the ultrapure water supply and the FY 03/2025 FY 03/2026 (Billions of Yen) Results Forecast precision tool cleaning businesses are expected to decrease. YoY Change ⚫ Depreciation for the ultrapure water supply business is

  43. Slide 43: Forward-looking Statements

    Forward-looking Statements This presentation contains forward-looking statements, business plan projections, and judgments based on information available to management at the time of writing. Due to the existence of a variety of risk factors and uncertainties, actual results may differ from those sp

Kurita Water Industries — FY2025 Earnings Presentation on 6ix