Kurita Water Industries Ltd. · TSE:6370

Kurita Water Industries — 1H FY2027 Earnings Presentation

45 slides from Kurita Water Industries's earnings presentation, Nov 5, 2026

  1. Slide 1: Results Presentation for the First Half of the Fiscal Year Ending March 31, 2027

    Kurita Water Industries Ltd. Results Presentation for the First Half of the Fiscal Year Ending March 31, 2027 (Securities code: 6370) November 6, 2026 © KURITA WATER INDUSTRIES LTD. All Rights Reserved.

  2. Slide 2: Summary

    Summary 1H Results YoY change rate Orders: +81.8%, Net Sales: +9.3%, Business Profit: -74.0% ⚫ Orders exceeded expectations, driven by the acquisition of large-scale facility projects globally Electronics ⚫ Net sales increased in facilities and recurring contract-based services, while profit decline

  3. Slide 3: Changes in Disclosure

    Changes in Disclosure ⚫ Following the execution of a share transfer agreement for Pentagon Technologies Group, Inc. on May 13, 2026, the overseas precision tool cleaning business has been classified as discontinued operations and results up to profit before tax are presented on a continuing operatio

  4. Slide 4: Table of Contents

    Table of Contents Consolidated Financial Results for 1 P. 4 ‐ 14 the First Half of the Fiscal Year Ending March 31, 2027 Consolidated Business Forecast 2 P. 15 ‐ 24 for the Fiscal Year Ending March 31, 2027 Achieving the PSV-27 plan and driving the next 3 P. 25 ‐ 43 growth phase © KURITA WATER INDUS

  5. Slide 5: Consolidated Financial Results for the First Half

    1 Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2027 © KURITA WATER INDUSTRIES LTD. All Rights Reserved. 4

  6. Slide 6: Overview of Results

    Overview of Results FY 03/2027 FY 03/2026 FY 03/2027 1H Forecast (Billions of Yen) YoY YoY 1H Results 1H Results (Announced Change change rate in August) （Billions of Yen） Orders 197.8 359.6 + 161.8 + 81.8% 260.0 400.0 30 359.6 Net Sales 189.3 206.9 + 17.5 + 9.3% 198.0 24.2 Continuing Operations 25

  7. Slide 7: Factors in Business Profit Change (YoY Change)

    Factors in Business Profit Change (YoY Change) (Billions of Yen) Continuing Operations Impact of Worsening the increased sales cost of sales ratio Additional costs + 5.7 Increase in Impact of foreign on US facility (3.4) 30 SG&A expenses exchange rate project (1.3) + 1.2 (20.0) 24.2 Electronics ⚫ In

  8. Slide 8: Electronics Industry Results by Segment

    Electronics Industry Results by Segment FY 03/2027 FY 03/2026 FY 03/2027 1H Forecast Facilities (Billions of Yen) 1H Results 1H Results YoY Change (Announced in August) ⚫ Orders increased mainly due to the acquisition of large-scale facility projects in East Asia, including Japan, and the US. Orders

  9. Slide 9: Electronics Industry Factors in Business Profit Change

    Electronics Industry Factors in Business Profit Change (YoY Change) (Billions of Yen) Continuing Operations Impact of Worsening the increased sales cost of sales ratio Additional costs + 4.6 (2.9) Increase in Impact of foreign on US facility 17 SG&A expenses exchange rate project (0.7) + 0.6 (20.0)

  10. Slide 10: General Industry Results by Segment

    General Industry Results by Segment FY 03/2027 Facilities FY 03/2026 FY 03/2027 1H Forecast (Billions of Yen) 1H Results 1H Results YoY Change (Announced ⚫ Orders increased mainly due to the acquisition of facility in August) projects in Japan. Orders 119.2 128.3 + 9.0 115.0 ⚫ Net sales decreased du

  11. Slide 11: General Industry Factors in Business Profit Change

    General Industry Factors in Business Profit Change (YoY Change) (Billions of Yen) Continuing Operations 15 Improving the Increase in Impact of foreign Impact of cost of sales ratio SG&A expenses exchange rate decreased sales 11.7 + 0.7 (0.5) + 0.6 12.3 (0.2) 10 ⚫ Net sales for ⚫ Increase in chemical

  12. Slide 12: CSV Business

    CSV Business * CSV business net sales and the number of models for FY 03/2026 and prior periods include discontinued operations, as the impact of discontinued operations is immaterial. CSV Business Net Sales Number of CSV Business Models FY 03/2027 FY 03/2026 FY 03/2027 Forecast End of End of (Billi

  13. Slide 13: Net Sales by Region

    Net Sales by Region Consolidated ⚫ Asia, EMEA: Increased Electronics FY 03/2027 Due to progress in construction of facilities Industry FY 03/2026 FY 03/2027 1H Forecast (Billions of Yen) 1H Results 1H Results YoY Change (Announced in ⚫ Japan: Increased August) Growth in facilities, recurring contrac

  14. Slide 14: Capital Expenditures, Depreciation and R&D Expenses

    Capital Expenditures, Depreciation and R&D Expenses FY 03/2027 FY 03/2026 FY 03/2027 Forecast (Billions of Yen) 1H Results 1H Results (Announced ⚫ Capital expenditures decreased due to lower investment YoY Change in August) in water supply services within recurring contract-based Capital Expenditure

  15. Slide 15: Financial Condition

    Financial Condition (Billions of Yen) End of March 2026 End of September 2026 Change Cash and cash equivalents 62.2 55.3 (6.9) Trade and other receivables, and contract assets 145.6 145.9 + 0.2 Inventories 20.4 20.9 + 0.5 Others 12.6 15.2 + 2.6 Decrease mainly due to the transfer of shares in Assets

  16. Slide 16: Consolidated Business Forecast for the Fiscal Year Ending March 31, 2027

    2 Consolidated Business Forecast for the Fiscal Year Ending March 31, 2027 © KURITA WATER INDUSTRIES LTD. All Rights Reserved. 15

  17. Slide 17: Overview of Business Forecast

    Overview of Business Forecast Previous FY 03/2027 Forecast Forecast FY 03/2026 （Billions of Yen） (Billions of Yen) (Announced in (Announced in Change Results August) October) Orders 470.0 555.0 + 85.0 443.0 600.0 555.0 Net Sales 425.0 455.0 + 30.0 402.9 57.3 61.0 Continuing Operations Business Profi

  18. Slide 18: Factors in Business Profit Change (YoY Change)

    Factors in Business Profit Change (YoY Change) (Billions of Yen) Continuing Operations 90 Impact of Worsening the increased sales cost of sales ratio 80 Additional costs + 18.8 (10.3) Increase in on US facility SG&A expenses Impact of foreign exchange rate project 70 (2.2) 0.0 (23.6) 57.3 60 50 Elec

  19. Slide 19: Electronics Industry Forecast by Segment

    Electronics Industry Forecast by Segment Previous FY 03/2027 (Billions of Yen) Forecast Forecast FY 03/2026 Facilities (Announced (Announced in Change Results in August) October) ⚫ Orders were revised upward, reflecting stronger-than- Orders 240.0 325.0 + 85.0 209.0 expected orders in 1H. ⚫ Net sale

  20. Slide 20: Electronics Industry Factors in Business Profit Change

    Electronics Industry Factors in Business Profit Change (YoY Change) (Billions of Yen) Continuing Operations Impact of Worsening the increased sales cost of sales ratio + 14.9 (7.6) Increase in Additional costs 40 SG&A expenses Impact of foreign on US facility exchange rate project (2.3) 0.0 (23.6) 3

  21. Slide 21: General Industry Forecast by Segment

    General Industry Forecast by Segment Previous FY 03/2027 Facilities Forecast Forecast FY 03/2026 (Billions of Yen) (Announced in (Announced in Change Results ⚫ Orders were revised upward, reflecting expected increases August) October) in Asia and EMEA in 2H. Orders 230.0 230.0 0.0 234.0 ⚫ Net sales

  22. Slide 22: General Industry Factors in Business Profit Change

    General Industry Factors in Business Profit Change (YoY Change) (Billions of Yen) Continuing Operations 40 Improving the SG&A expense Impact of foreign Impact of cost of sales ratio control exchange rate 29.7 decreased sales + 1.7 + 0.0 0.0 31.0 (0.5) 30 FY 03/2027 Forecast ⚫ Expecting increased sal

  23. Slide 23: CSV Business

    CSV Business * CSV business net sales for FY 03/2026 and prior periods include discontinued operations, as the impact of discontinued operations is immaterial. CSV Business Net Sales Previous FY 03/2027 Forecast Forecast FY 03/2026 (Billions of Yen) (Announced (Announced Results Change in August) in

  24. Slide 24: Net Sales by Region

    Net Sales by Region Consolidated ⚫ Asia, Japan: Increase Electronics Previous FY 03/2027 Due to progress in construction of facility projects and Industry Forecast Forecast FY 03/2026 expected increases in maintenance (Billions of Yen) (Announced (Announced Results Change in August) in October) ⚫ EM

  25. Slide 25: Capital Expenditures, Depreciation and R&D Expenses

    Capital Expenditures, Depreciation and R&D Expenses Previous FY 03/2027 Forecast Forecast FY 03/2026 (Billions of Yen) (Announced (Announced Results ⚫ Forecasts for capital expenditures, depreciation and R&D Change in August) in October) expenses remain unchanged. Capital Expenditures Continuing Ope

  26. Slide 26: Achieving the PSV-27 plan and driving the next growth phase

    3 Achieving the PSV-27 plan and driving the next growth phase © KURITA WATER INDUSTRIES LTD. All Rights Reserved. 25

  27. Slide 27: Key Takeaways

    Key Takeaways Addressing current issues １ Address the issues involving analytical services and the US electronics facility project, and implement corrective and preventive measures Strengthening business foundations and management systems ２ Strengthen group-wide systems rather than treating these as

  28. Slide 28: Inappropriate Practices in Analytical Service and Preventive Measures

    Inappropriate Practices in Analytical Service and Preventive Measures Reaffirm analytical services as a critical business foundation and strengthen group-wide quality management Incident Overview Causes KBC Measures Kurita Analysis Center Co., Ltd. (KBC) ⚫ Review analysis, verification, and approval

  29. Slide 29: Additional Costs on Our First US Facility Project

    Additional Costs on Our First US Facility Project Project-specific challenges emerged despite initial risk measures Issues identified and measures FY 03/2027 1Q FY 03/2027 2Q taken at order Deployment of specialized personnel and Design delays and quality design progress ahead of on-site constructio

  30. Slide 30: Identified Issues and Countermeasures

    Identified Issues and Countermeasures Strengthen risk management to ensure reliable project execution Unique characteristics Issues to address Countermeasures Assets gained First project in Project ⚫ Cross-project monitoring of ⚫ Regular cost and schedule reviews progress and costs to ensure by head

  31. Slide 31: Execution Framework and Enhancements for Other US Facility Projects

    Execution Framework and Enhancements for Other US Facility Projects Ensure reliable project execution by leveraging our track record and lessons from the initial project Assets gained from Ongoing Engineering Process the initial project Projects PMO Quality Design Procure- Fabrication Assurance ment

  32. Slide 32: Evolution toward a Global Engineering Framework

    Evolution toward a Global Engineering Framework Establish a Global Engineering Center to strengthen project execution capabilities Global engineering center Issues Share resources across regions ⚫ Share standardized design assets ⚫ Cross-regional project management resources Project Expanded project

  33. Slide 33: Progress to Date and Initiatives for Sustainable Growth

    Progress to Date and Initiatives for Sustainable Growth Strengthen growth strategies based on progress and identified issues Progress to date PSV-27 Plan Initiatives to strengthen FY03/2027 forecast vs. FY03/2023 actual financial targets FY03/2028 Expanded customer base and Strengthen the production

  34. Slide 34: Electronics Industry Vision and Priority Measures

    Electronics Industry Vision and Priority Measures Enhancing presence in growth markets through a balanced mix of project-based and recurring businesses Vision Priority measures FY03/2028 targets Net sales Become an essential partner to the global Expand the facility business ¥230.0 billions as a dri

  35. Slide 35: Expanding the Facility Business to Drive Future Growth

    Electronics Expanding the Facility Business to Drive Industry Future Growth Expanding the project pipeline through a broader business base Semiconductor market CAGR* Project-based and Recurring Businesses +8.7% from 2026 to 2030 Facilities (project-based) Service (recurring) Demand Maintenance Opera

  36. Slide 36: Facility Order Backlog Supporting Growth Next Fiscal Year

    Electronics Facility Order Backlog Supporting Growth Industry Next Fiscal Year Order backlog in established markets will support facility sales growth and profit contribution next fiscal year Facility Order Backlog by Region Facility order backlog New bases Established Established bases Approx. (Jap

  37. Slide 37: Growth Potential of Service Business

    Electronics Industry Growth Potential of Service Business Expanding the facility customer base creates future service opportunities Service Recurring contract- Service growth potential driven by (recurring) based services facility orders (Billions of Yen) (water supply business) Maintenance 60 50 40

  38. Slide 38: Strengthening the Service Delivery System

    Electronics Industry Strengthening the Service Delivery System Translate growth in facility projects into recurring service revenue  Regions with established  Regions requiring stronger service capabilities service capabilities East Asia US (Japan, South Korea, China, Taiwan) ⚫ Idaho Plan to estab

  39. Slide 39: General Industry Vision and Priority Measures

    General Industry Vision and Priority Measures Building a business foundation for stable, sustainable growth Vision Priority measures FY03/2028 targets Net sales Create new markets by delivering new value in Expand the CSV business ¥240.0 billion stable-growth markets Business profit margin Advance m

  40. Slide 40: Profit Growth Driven by Market Development and Improved Profitability

    General Profit Growth Driven by Market Development Industry and Improved Profitability General Industry business profit grew 1.8x over three years Business Profit Trend Develop new markets through CSV business competitive strength 1.8x (CAGR 21%) ¥29.7 billion Contribution to gross profit growth: +

  41. Slide 41: CSV Business Profit Model

    General Industry CSV Business Profit Model Quantify customer value to enable value-based pricing and high profitability CSV Bioethanol plant business pHytOUT implementation in the US Manufacturing process Create Economic Value by Improving Customer Manufacturing Processes Process throughput Fermenta

  42. Slide 42: Toward Sustainable Corporate Value Growth

    Finance Toward Sustainable Corporate Value Growth Pursue higher capital efficiency over the medium to long term ROE trend Initiatives Optimal capital allocation between 11.7%* 12% or more growth investment and shareholder returns 9.3% 8.8% Disciplined growth investment 7.1% 6.1% Business portfolio o

  43. Slide 43: Cash Allocation

    Finance Cash Allocation Continue growth investment while responding flexibly to changes in the business environment  Cash allocation Policy Indicative amount (FY03/27-FY03/28) Maintenance and renewal investment in Debt Maintenance, etc. core business assets ¥25.0 billion Financing ¥60.0 billion Org

  44. Slide 44: Toward Achieving PSV-27 Plan

    Toward Achieving PSV-27 Plan Turn challenges into opportunities for sustainable profit growth PSV-27 Outlook financial targets ¥455.0 ⚫ Strengthen global project Net execution capabilities sales ¥470.0 billion ¥388.8 ¥402.9 billion ¥384.8 Net ¥344.6 billion billion ⚫ Convert facility growth billion

  45. Slide 45: 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

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