Kurita Water Industries : Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2026 (IFRS)

February 5, 2026

Company name: Kurita Water Industries Ltd. Stock exchange listing: Tokyo Securities code: 6370 URL: https://www.kurita-water.com/

Representative: Hirohiko Ejiri, Director, President and Representative Executive Officer

Contact: Shinichi Masuda, General Manager of Corporate Accounting Department TEL: +81-3-6743-5054 Scheduled starting date of dividend payment: -

Supplementary documents for financial results: Yes

Holding of financial results briefing: Yes (Conference calls for analysts and institutional investors)

(Amounts are rounded to the nearest million)

1. Consolidated financial results for the first nine months of the fiscal year ending March 31, 2026 (from April 1, 2025 to December 31, 2025)

   1. Consolidated results of operations (%: Year-on-year change)

      	Net sales		Business profit		Operating profit		Profit		Profit attributable to owners of parent		Total comprehensive income
      Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      December 31, 2025	303,604	0.9	38,862	10.1	40,227	15.9	27,788	13.1	27,404	13.1	40,619	45.2
      December 31, 2024	300,842	4.9	35,295	15.9	34,709	13.7	24,563	10.8	24,235	10.6	27,977	(9.7)

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      December 31, 2025	249.32	-
      December 31, 2024	215.55	-

      (Reference) Profit before taxes Nine months ended December 31, 2025: 40,010 million yen (15.3%)

      Nine months ended December 31, 2024: 34,704 million yen (13.9%)

      (Note) Business profit is the Kurita Group's own indicator that measures constant business performance. It is net sales less cost of sales and selling, general and administrative expenses.

      Although business profit is not defined by IFRS, the Group voluntarily discloses it, believing that it is beneficial for users of its financial statements.

   2. Consolidated financial condition

   	Total assets	Total equity	Total equity attributable to owners of parent	Ratio of equity attributable to owners of the parent
   As of	Million yen	Million yen	Million yen	%
   December 31, 2025	571,194	352,738	349,910	61.3
   March 31, 2025	548,949	338,504	336,027	61.2

2. Dividend

   	Dividend per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	46.00	-	46.00	92.00
   Fiscal year ending March 31, 2026	-	56.00	-
   Fiscal year ending March 31, 2026 (forecast)				56.00	112.00

   (Note) Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(The percentages are year-on-year changes.)

(Reference) Profit before taxes Full year 52,500 million yen (65.0%) (Note) Revisions to results forecasts most recently announced: None

* Notes

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies and accounting estimates

   1. Changes in accounting policies required by IFRS: No

   2. Changes in accounting policies other than (i) above: No

   3. Changes in accounting estimates: None

3. Number of issued shares (common share)

(Note) The total number of treasury shares at the end of the period includes shares of the Company (448,000 shares in the nine months ended December 31, 2025, 499,000 shares in the fiscal year ended March 31, 2025). The Company's own shares posted as treasury shares remaining in trust are included in the treasury shares that are deducted in the calculation of the average number of shares outstanding for calculation for basic earnings per share. (470,000 shares in the nine months ended December 31, 2025, 222,000 shares in the nine months ended December 31, 2024).

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Explanation about the appropriate use of the results forecasts and other special notes (Note on forward-looking statements, etc.)

  Forward-looking statements, including the results forecasts contained in this material, are based on information currently available for

  the Company and certain assumptions which the Company deems reasonable. The Company does not intend to provide any guarantee on the realization on these forecasts. Actual results may differ from these forecasts and forward-looking statements due to various factors. For the conditions on which financial results forecasts are based and the notes on the use of these forecasts, please refer to "Forecasts for the Fiscal Year Ending March 31, 2026" on page 5 of the accompanying materials.

• This document is an English translation of the Earnings Report for the Third Quarter of the Fiscal Year Ending March 31, 2026 as reference information primarily for overseas investors. If there are any discrepancies between the Japanese version and the English version, the Japanese version shall take precedence in all cases.

  Table of Contents - Attachments

  1. Results of Operations 2

     1. Results of Operations 2

     2. Financial Condition 4

     3. Cash Flows 5

     4. Forecasts for the Fiscal Year Ending March 31, 2026 5

  2. Condensed Quarterly Consolidated Financial Statements and Key Notes 6

     1. Condensed Quarterly Consolidated Statement of Financial Position 6

        8

     2. Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income

     3. Condensed Quarterly Consolidated Statement of Changes in Equity 10

     4. Condensed Quarterly Consolidated Statement of Cash Flows 12

     5. Notes to Condensed Quarterly Consolidated Financial Statements 14

(Notes on the Going-concern Assumption) 14

(Changes in the Method of Presentation) 14

(Segment Information) 14

(Bonds and Borrowings) 16

(Notes in the Event of Significant Changes in Shareholders' Equity) 17

(Net Sales) 17

(Business Combinations) 18

1. Results of Operations

   1. Results of Operations

      1. Nine Months Ended December 31, 2025 (April 1, 2025 - December 31, 2025)

         During the nine months ended December 31, 2025, the global economy continued to recover moderately, although countries'

         tariff policies and export controls affected certain sectors.

         In Japan, production in the manufacturing industry remained roughly flat, while capital expenditures were solid due to high corporate earnings. Overseas, the U.S. economy was firm. European economies continued to recover, although certain sectors were negatively affected by U.S. tariff hikes. In China, signs of a slowdown intensified, particularly in domestic demand. Asian economies outside China experienced a moderate overall recovery. The pace of recovery varied by country.

         In this environment, total consolidated orders of 314,151 million yen, up 0.5% year on year. Net sales increased 0.9%, to 303,604 million yen. Business profit* increased 10.1%, to 38,862 million yen, operating profit was 40,227 million yen, up 15.9% versus the year-ago period, profit before tax was 40,010 million yen, rising 15.3%, and profit attributable to owners of parent amounted to 27,404 million yen, up 13.1%.

         * Business profit is the Group's own indicator that measures constant business performance. It is net sales less cost of sales and selling, general and administrative expenses. Although business profit is not defined by IFRS, the Group voluntarily discloses it, believing that it is beneficial for users of its financial statements.

         
         
         

      2. Segment Information

         The Group has Electronics Industry and General Industry as two reportable segments in its segment information in order to formulate strategies based on an in-depth examination of the characteristics of each market and to expand solutions by combining diverse products and services, from the viewpoint of providing value to society and customers.

         Due to a reorganization that occurred in the fiscal year under review, Arcade Engineering GmbH and certain divisions of Kurita America Inc. (water treatment facilities business), which were previously classified into the General Industry segment, have been moved to the Electronics Industry segment. The figures for the same period of the previous fiscal year have been adjusted to reflect the changes in the reportable segments.

         1. Electronics Industry

            Total Group orders for the Electronics Industry segment were 143,258 million yen, down 3.7% versus the year-ago period. Orders for water treatment facilities fell due to a reactionary decline following a large-scale project in the same period of the previous fiscal year. The demand for precision tool cleaning declined due to a fall in capacity utilization at plants of certain customers. Orders for maintenance and recurring contract-based services, including the ultrapure water supply business, rose. Total Group net sales for the Electronics Industry segment amounted to 136,495 million yen, a decrease of 2.5% year on year. Net sales of water treatment facilities declined due to the lack of sales from large-scale projects in China recorded in the same period of the previous fiscal year. Net sales from maintenance services increased. Net sales of recurring contract-based services increased, reflecting higher capacity utilization at plants of certain customers. Net sales from precision tool cleaning dropped. In terms of profits, business profit stood at 18,490 million yen, down 1.7% year on year. While profitability improved for water treatment facilities, this was outweighed by decreased sales and an increase in selling, general and administrative expenses. Operating profit came to 19,489 million yen, an increase of 2.9% year on year, reflecting settlement gains from the mid-contract termination of ultrapure water supply contracts with a certain customer.

            
            
            

         2. General Industry

            Total Group orders for the General Industry segment increased 4.3% from the same period of the previous fiscal year, to 170,892 million yen. Orders for water treatment chemicals increased only slightly, reflecting weak conditions in the Chinese and Southeast Asian markets. However, there was a significant increase in orders for soil remediation services due to a large project. Orders for water treatment facilities, maintenance, and recurring contract-based services also increased.

            Total Group net sales for the General Industry segment amounted to 167,108 million yen, an increase of 3.9% year on year. Net

            sales for water treatment facilities rose due to progress on large projects in Japan. Net sales for water treatment chemicals increased only slightly due to weak market conditions in certain countries and regions. Net sales for maintenance and recurring contract-based services rose.

            In terms of profits, business profit stood at 20,376 million yen, an increase of 23.8% year on year, reflecting higher sales and a lower cost of sales ratio, driven by higher net sales for the CSV business with high added value. Operating profit totaled 20,741 million yen, up 31.6% year on year. This increase was driven primarily by foreign exchange gains from subsidiaries in the United States and Europe.

            
            
            

   2. Financial Condition

      Condition of Assets, Liabilities and Equity

      1. Total assets: 571,194 million yen, an increase of 22,245 million yen from the end of the previous fiscal year

         Current assets totaled 236,424 million yen at the end of the third quarter, an increase of 15,474 million yen from the end of the previous fiscal year. This was mainly due to an increase of 12,694 million yen in trade and other receivables, and an increase of 2,896 million yen in cash and cash equivalents.

         Non-current assets totaled 334,769 million yen at the end of the third quarter, an increase of 6,771 million yen from the end of the previous fiscal year. This was chiefly attributable to an increase of 5,058 million yen in goodwill, when converted to yen, due to the weakening of the yen against foreign currencies, and an increase of 4,260 million yen in other financial assets. These increases outweighed a 2,922 million yen decrease in deferred tax assets.

      2. Liabilities: 218,455 million yen, an increase of 8,011 million yen from the end of the previous fiscal year

         Current liabilities totaled 113,912 million yen at the end of the third quarter, a decrease of 18,655 million yen from the end of the previous fiscal year. This is chiefly attributable to decreases of 9,389 million yen in bonds and borrowings, 7,864 million yen in trade and other payables, and 2,103 million yen in income taxes payable. Bonds and borrowings decreased due to the redemption of bonds totaling 30,000 million yen, despite an increase primarily from the issuance of commercial paper.

         Non-current liabilities totaled 104,542 million yen at the end of the third quarter, an increase of 26,665 million yen from the end of the previous fiscal year. This was mainly due to an increase of 27,693 million yen in bonds and borrowings, primarily from the issuance of new bonds (totaling 10,000 million yen) and new long-term borrowings, which more than offset a decrease of 824 million yen in deferred tax liabilities.

      3. Equity: 352,738 million yen, an increase of 14,234 million yen from the end of the previous fiscal year

         The increase in equity was primarily attributable to an increase of 12,516 million yen in other components of equity, mainly due to larger exchange differences on translation of foreign operations, reflecting the weakening of the yen against other currencies, and a rise of 16,384 million yen in retained earnings, primarily due to the posting of a profit attributable to owners of parent, which outweighed a decrease in equity caused by an increase of 14,923 million yen in treasury shares that followed purchases made in the market.

   3. Cash Flows

      Consolidated net cash and cash equivalents at the end of the third quarter totaled 65,848 million yen, an increase of 2,896 million yen from the end of the previous fiscal year.

      The various cash flows and related factors are outlined below.

      1. Cash Flows from Operating Activities

         Net cash provided by operating activities during the nine months ended December 31, 2025 totaled 36,114 million yen, a decrease of 28,989 million yen from the same period of the previous fiscal year. This was chiefly due to inflows, including profit before tax of 40,010 million yen and depreciation, amortization and impairment losses of 26,168 million yen, partially offset by outflows that included an increase in trade and other receivables of 8,910 million yen, a decrease in trade and other payables of 5,044 million yen, and income taxes paid of 13,537 million yen.

      2. Cash Flows from Investing Activities

         Net cash used in investing activities totaled 24,500 million yen, a decrease of 13,749 million yen from the same period of the previous fiscal year. Cash was used mainly for the purchase of property, plant and equipment of 19,793 million yen, the purchase of intangible assets of 2,836 million yen, and the purchase of investment securities of 2,545 million yen.

      3. Cash Flows from Financing Activities

         Net cash used in financing activities totaled 12,865 million yen, a decrease of 7,400 million yen from the same period of the previous fiscal year. Cash was used mainly for the redemption of bonds amounting to 30,000 million yen, the purchase of treasury shares of 15,162 million yen, dividends paid of 11,341 million yen, and repayments of lease liabilities of 4,266 million yen, which were partially offset by a net increase in short-term borrowings and commercial paper of 20,236 million yen, proceeds from long-term borrowings of 19,936 million yen, and proceeds from issuance of bonds of 9,954 million yen.

         The Group's basic policy is to constantly secure the liquidity necessary for business operations and establish a stable fundraising system. Short-term working capital, capital investment and other investments in growth fields depend chiefly on the Group's own funds, but the Group procures financing through bond markets and bank loans as needed. As of the end of the period under review, the Group has concluded commitment line contracts with two financial institutions (no borrowing executed and unexecuted borrowings within the commitment line was 20,000 million yen).

   4. Forecasts for the Fiscal Year Ending March 31, 2026

      The Group considers that consolidated earnings forecasts for the fiscal year ending March 31, 2026 will be consistent with the forecast for the full fiscal year stated in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2025" released on May 8, 2025.

      The business forecasts are made by the Company based on information available at the time of publication of this report and may differ from actual results due to changes in a range of factors.

2. Condensed Quarterly Consolidated Financial Statements and Key Notes

   1. Condensed Quarterly Consolidated Statement of Financial Position

      (Million yen)
      	As of March 31, 2025	As of December 31, 2025
      Assets
      Current assets
      Cash and cash equivalents	62,951	65,848
      Trade and other receivables	126,413	139,107
      Other financial assets	4,598	4,328
      Inventories	20,718	22,291
      Other current assets	6,267	4,848
      Total current assets	220,950	236,424
      Non-current assets
      Property, plant and equipment	195,431	194,653
      Right-of-use assets	19,828	20,321
      Goodwill	66,347	71,405
      Intangible assets	16,942	17,396
      Investments accounted for using equity method	1,515	1,602
      Other financial assets	15,541	19,801
      Deferred tax assets	12,177	9,255
      Other non-current assets	213	333
      Total non-current assets	327,998	334,769
      Total assets	548,949	571,194

      (Million yen)
      	As of March 31, 2025	As of December 31, 2025
      Liabilities and equity
      Liabilities
      Current liabilities
      Trade and other payables	64,443	56,579
      Bonds and borrowings	33,893	24,504
      Lease liabilities	4,436	5,165
      Income taxes payable	8,540	6,437
      Provisions	1,689	1,899
      Other current liabilities	19,563	19,326
      Total current liabilities	132,567	113,912
      Non-current liabilities
      Bonds and borrowings	36,326	64,019
      Lease liabilities	18,815	18,485
      Other financial liabilities	1,455	1,008
      Retirement benefit liability	16,785	17,395
      Provisions	2,934	2,987
      Deferred tax liabilities	854	30
      Other non-current liabilities	705	615
      Total non-current liabilities	77,877	104,542
      Total liabilities	210,444	218,455
      Equity
      Share capital	13,450	13,450
      Capital surplus	8	(85)
      Treasury shares	(12,200)	(27,123)
      Other components of equity	24,789	37,305
      Retained earnings	309,978	326,362
      Equity attributable to owners of parent	336,027	349,910
      Non-controlling interests	2,477	2,827
      Total equity	338,504	352,738
      Total liabilities and equity	548,949	571,194

   2. Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income

      Condensed quarterly consolidated statement of profit or loss

      (Million yen)
      	Nine months ended December 31, 2024	Nine months ended December 31, 2025
      Net sales	300,842	303,604
      Cost of sales	192,053	190,144
      Gross profit	108,789	113,459
      Selling, general and administrative expenses	73,493	74,597
      Other income	1,155	2,205
      Other expenses	1,742	840
      Operating profit	34,709	40,227
      Finance income	734	890
      Finance costs	846	1,189
      Share of profit of investments accounted for using equity method	107	82
      Profit before tax	34,704	40,010
      Income tax expense	10,141	12,221
      Profit	24,563	27,788
      Profit attributable to
      Owners of parent	24,235	27,404
      Non-controlling interests	327	383
      Profit	24,563	27,788
      Earnings per share
      Basic earnings per share (yen)	215.55	249.32
      Diluted earnings per share (yen)	-	-

      Condensed quarterly consolidated statement of comprehensive income

      (Million yen)
      	Nine months ended December 31, 2024	Nine months ended December 31, 2025
      Profit	24,563	27,788
      Other comprehensive income
      Items that will not be reclassified to profit or loss
      Net change in fair value of financial assets measured at fair value through other comprehensive income	(297)	780
      Remeasurements of defined benefit plans	(6)	4
      Total of items that will not be reclassified to profit or loss	(304)	784
      Items that may be reclassified to profit or loss
      Exchange differences on translation of foreign operations	3,764	11,959
      Cash flow hedges	(92)	(12)
      Share of other comprehensive income of investments accounted for using equity method	46	99
      Total of items that may be reclassified to profit or loss	3,718	12,046
      Other comprehensive income, net of tax	3,413	12,830
      Comprehensive income for the period	27,977	40,619
      Comprehensive income attributable to
      Owners of parent	27,522	40,210
      Non-controlling interests	454	408
      Comprehensive income for the period	27,977	40,619

   3. Condensed Quarterly Consolidated Statement of Changes in Equity

      Nine months ended December 31, 2024 (April 1, 2024 - December 31, 2024)

      (Million yen)
      	Total equity attributable to owners of parent
      	Share capital	Capital surplus	Treasury shares	Other components of equity
      				Exchange differences on translation of foreign operations	Cash flow hedges	Financial assets measured at fair value through other comprehensive income
      Balance as of April 1, 2024	13,450	(361)	(10,869)	25,144	134	5,104
      Profit	-	-	-	-	-	-
      Other comprehensive income	-	-	-	3,683	(92)	(297)
      Comprehensive income	-	-	-	3,683	(92)	(297)
      Purchase of treasury shares	-	-	(3)	-	-	-
      Dividends	-	-	-	-	-	-
      Share-based payment transactions	-	280	300	-	-	-
      Transfer from other components of equity to retained earnings	-	-	-	-	-	-
      Other	-	-	-	-	-	-
      Total transactions with owners	-	280	297	-	-	-
      Balance as of December 31, 2024	13,450	(81)	(10,572)	28,828	42	4,807

      (Million yen)
      	Total equity attributable to owners of parent				Non-controlling interests	Total
      	Other components of equity		Retained earnings	Total
      	Remeasurements of defined benefit plans	Total
      Balance as of April 1, 2024	-	30,383	298,658	331,261	2,150	333,411
      Profit	-	-	24,235	24,235	327	24,563
      Other comprehensive income	(6)	3,287	-	3,287	126	3,413
      Comprehensive income	(6)	3,287	24,235	27,522	454	27,977
      Purchase of treasury shares	-	-	-	(3)	-	(3)
      Dividends	-	-	(9,875)	(9,875)	(70)	(9,946)
      Share-based payment transactions	-	-	-	580	-	580
      Transfer from other components of equity to retained earnings	6	6	(6)	-	-	-
      Other	-	-	(20)	(20)	-	(20)
      Total transactions with owners	6	6	(9,903)	(9,318)	(70)	(9,389)
      Balance as of December 31, 2024	-	33,677	312,990	349,465	2,533	351,999

      Nine months ended December 31, 2025 (April 1, 2025 - December 31, 2025)

      (Million yen)
      	Total equity attributable to owners of parent
      	Share capital	Capital surplus	Treasury shares	Other components of equity
      				Exchange differences on translation of foreign operations	Cash flow hedges	Financial assets measured at fair value through other comprehensive income
      Balance as of April 1, 2025	13,450	8	(12,200)	21,067	33	3,688
      Profit	-	-	-	-	-	-
      Other comprehensive income	-	-	-	12,033	(12)	780
      Comprehensive income	-	-	-	12,033	(12)	780
      Purchase of treasury shares	-	-	(15,162)	-	-	-
      Dividends	-	-	-	-	-	-
      Share-based payment transactions	-	(90)	239	-	-	-
      Transfer from other components of equity to retained earnings	-	-	-	-	-	(259)
      Other	-	(3)	-	(26)	-	-
      Total transactions with owners	-	(93)	(14,922)	(26)	-	(259)
      Balance as of December 31, 2025	13,450	(85)	(27,123)	33,074	21	4,209

      (Million yen)
      	Total equity attributable to owners of parent				Non-controlling interests	Total
      	Other components of equity		Retained earnings	Total
      	Remeasurements of defined benefit plans	Total
      Balance as of April 1, 2025	-	24,789	309,978	336,027	2,477	338,504
      Profit	-	-	27,404	27,404	383	27,788
      Other comprehensive income	4	12,805	-	12,805	25	12,830
      Comprehensive income	4	12,805	27,404	40,210	408	40,619
      Purchase of treasury shares	-	-	-	(15,162)	-	(15,162)
      Dividends	-	-	(11,287)	(11,287)	(58)	(11,345)
      Share-based payment transactions	-	-	-	148	-	148
      Transfer from other components of equity to retained earnings	(4)	(263)	263	-	-	-
      Other	-	(26)	3	(26)	-	(26)
      Total transactions with owners	(4)	(289)	(11,020)	(26,326)	(58)	(26,385)
      Balance as of December 31, 2025	-	37,305	326,362	349,910	2,827	352,738

   4. Condensed Quarterly Consolidated Statement of Cash Flows

      (Million yen)
      	Nine months ended December 31, 2024	Nine months ended December 31, 2025
      Cash flows from operating activities
      Profit before tax	34,704	40,010
      Depreciation, amortization and impairment losses	26,080	26,168
      Share of loss (profit) of investments accounted for using equity method	(107)	(82)
      Loss (gain) on sale of fixed assets	1,009	(47)
      Decrease (increase) in inventories	(1,386)	(750)
      Decrease (increase) in trade and other receivables	11,211	(8,910)
      Increase (decrease) in trade and other payables	4,627	(5,044)
      Other	(623)	(1,144)
      Subtotal	75,517	50,199
      Interest received	507	464
      Dividends received	187	209
      Interest paid	(346)	(1,221)
      Income taxes paid	(10,762)	(13,537)
      Net cash provided by (used in) operating activities	65,103	36,114

      (Million yen)
      	Nine months ended December 31, 2024	Nine months ended December 31, 2025
      Cash flows from investing activities
      Payments into time deposits	(6,258)	(4,038)
      Proceeds from withdrawal of time deposits	7,035	5,106
      Purchase of property, plant and equipment	(35,913)	(19,793)
      Proceeds from sale of property, plant and equipment	96	642
      Purchase of intangible assets	(2,616)	(2,836)
      Purchase of investment securities	(1)	(2,545)
      Proceeds from sale of investment securities	-	517
      Other	(591)	(1,551)
      Net cash provided by (used in) investing activities	(38,249)	(24,500)
      Cash flows from financing activities
      Net increase (decrease) in short-term borrowings and commercial paper	(14,140)	20,236
      Proceeds from long-term borrowings	9,977	19,936
      Repayments of long-term borrowings	(2,261)	(2,241)
      Proceeds from issuance of bonds	-	9,954
      Redemption of bonds	-	(30,000)
      Purchase of treasury shares	(3)	(15,162)
      Repayments of lease liabilities	(3,913)	(4,266)
      Dividends paid	(9,956)	(11,341)
      Other	31	20
      Net cash provided by (used in) financing activities	(20,265)	(12,865)
      Effect of exchange rate changes on cash and cash equivalents	570	4,148
      Net increase (decrease) in cash and cash equivalents	7,159	2,896
      Cash and cash equivalents at beginning of period	54,009	62,951
      Cash and cash equivalents at end of period	61,168	65,848

   5. Notes to Condensed Quarterly Consolidated Financial Statements (Notes on the Going-concern Assumption)

Not applicable

(Changes in the Method of Presentation)

(Condensed quarterly consolidated statement of cash flows)

"Purchase of investment securities," which was included in "Other" in cash flows from investing activities for the first nine months of the previous fiscal year, is presented separately for the first nine months of the fiscal year under review due to an increase in its materiality. To reflect this change in presentation, the Company has reclassified its condensed quarterly consolidated statement of cash flows for the first nine months of the previous fiscal year.

The -592 million yen recorded in the "Other" item of cash flows from investing activities in the condensed quarterly consolidated statement of cash flows for the first nine months of the previous fiscal year is now presented as -1 million yen in "purchase of investment securities" and -591 million yen in "Other."

"Purchase of treasury shares," which was included in "Other" in cash flows from financing activities for the first nine months of the previous fiscal year, is presented separately for the first nine months of the fiscal year under review due to an increase in its materiality. To reflect this change in presentation, the Company has reclassified its condensed quarterly consolidated statement of cash flows for the first nine months of the previous fiscal year.

Consequently, the 28 million yen recorded in the "Other" item of cash flows from financing activities in the condensed quarterly consolidated statement of cash flows for the first nine months of the previous fiscal year is now presented as -3 million yen in "purchase of treasury shares" and 31 million yen in "Other."

(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 review to enable the Company's board of directors to decide how to allocate resources and assess performance.

   The Group has Electronics Industry and General Industry as two reportable segments in order to formulate strategies based on an in-depth examination of the characteristics of each market and to expand solutions by combining diverse products and services, from the viewpoint of providing value to society and customers.

   
   
   

   (Changes in Reportable Segments)

   Following a reorganization that occurred in the fiscal year under review, Arcade Engineering GmbH and certain divisions of Kurita America Inc. (water treatment facilities business), which were previously classified into the General Industry segment, have been moved to the Electronics Industry segment. The figures for the same period of the previous fiscal year have been adjusted to reflect the changes in the reportable segments.

2. Information of Reportable Segments

   Nine months ended December 31, 2024 (April 1, 2024 - December 31, 2024)

   (Million yen)

   	Reportable Segments		Total	Adjustments (note 1)	Amounts reported on the condensed quarterly consolidated statement of profit or loss (note 2)
   	Electronics Industry	General Industry
   Net sales
   Sales to external customers	139,954	160,888	300,842	-	300,842
   Intersegment sales and transfers	-	-	-	-	-
   Total	139,954	160,888	300,842	-	300,842
   Segment profit	18,940	15,758	34,698	11	34,709
   Finance income					734
   Finance costs					846
   Share of profit of investments accounted for using equity method					107
   Profit before tax					34,704

   (Notes) 1. Adjustments to segment profit include the elimination of intersegment transactions, etc.

   2. Segment profit shows the amount of operating profit.

   Nine months ended December 31, 2025 (April 1, 2025 - December 31, 2025)

   (Million yen)

   	Reportable Segments		Total	Adjustments (note 1)	Amounts reported on the condensed quarterly consolidated statement of profit or loss (note 2)
   	Electronics Industry	General Industry
   Net sales
   Sales to external customers	136,495	167,108	303,604	-	303,604
   Intersegment sales and transfers	-	-	-	-	-
   Total	136,495	167,108	303,604	-	303,604
   Segment profit	19,489	20,741	40,231	(3)	40,227
   Finance income					890
   Finance costs					1,189
   Share of profit of investments accounted for using equity method					82
   Profit before tax					40,010

   (Notes) 1. Adjustments to segment profit include the elimination of intersegment transactions, etc.

   2. Segment profit shows the amount of operating profit.

3. Information Related to Products and Services

Net sales to external customers for the primary product and service lines are as follows.

(Bonds and Borrowings)

1. Bonds

   Nine months ended December 31, 2024 (April 1, 2024 - December 31, 2024) No bonds were issued or redeemed.

   Nine months ended December 31, 2025 (April 1, 2025 - December 31, 2025) The bonds issued are described below.

   Name	Issue	Issue date	Total amount issued (million yen)	Interest rate (%)	Redemption period
   Kurita Water Industries	Third series of unsecured bonds (blue bonds)	September 4, 2025	10,000	1.466	September 4, 2030

   The bonds redeemed are described below.

   Name	Issue	Issue date	Total amount issued (million yen)	Interest rate (%)	Redemption period
   Kurita Water Industries	First series of unsecured bonds	December 10, 2020	30,000	0.150	December 10, 2025

2. Borrowings

   Nine months ended December 31, 2024 (April 1, 2024 - December 31, 2024)

   The Group borrowed a total of 10,000 million yen (the final repayment dates are December 6, 2029 and December 13, 2029, in a lump sum payment) in the third quarter under review.

   Nine months ended December 31, 2025 (April 1, 2025 - December 31, 2025)

   The Group borrowed a total of 20,000 million yen (the final repayment dates are December 9, 2030 and December 26, 2030, in a lump sum payment) in the third quarter under review.

   (Notes in the Event of Significant Changes in Shareholders' Equity)

   The Company purchased 2,792,500 shares of treasury shares by resolution of the Board of Directors on May 8, 2025. Consequently, treasury shares increased by 15,158 million yen.

   (Net Sales)

   The table below presents a breakdown of net sales for each reportable segment based on contracts with customers.

   Due to a reorganization that occurred in the fiscal year under review, Arcade Engineering GmbH and certain divisions of Kurita America Inc. (water treatment facilities business), which were previously classified into the General Industry segment, have been moved to the Electronics Industry segment. The distribution of net sales in each region to segments has also changed. Net sales for the reportable segments for the first nine months of the previous fiscal year are recalculated based on the reorganized segments.

   Nine months ended December 31, 2024 (April 1, 2024 - December 31, 2024)

   (Million yen)
   	Reportable Segments		Amounts reported on the condensed quarterly consolidated statement of profit or loss
   	Electronics Industry	General Industry
   Japan	62,071	81,519	143,591
   Asia	58,483	17,663	76,147
   North & South America	16,203	36,442	52,646
   EMEA	3,195	25,263	28,458
   Total	139,954	160,888	300,842

   (Notes) 1. Net sales are broken down by countries or regions based on the locations of the Company or its consolidated subsidiaries. EMEA stands for Europe, the Middle East and Africa.

   1. Net sales in China, which are included in Asia, are 39,167 million yen. Within this total, net sales in the Electronics Industry and the General Industry are 33,884 million yen and 5,282 million yen, respectively.

   2. Net sales in the United States, which are included in North & South America, are 46,657 million yen. Within this total, net sales in the Electronics Industry and the General Industry are 16,203 million yen and 30,453 million yen, respectively.

Nine months ended December 31, 2025 (April 1, 2025 - December 31, 2025)

(Notes) 1. Net sales are broken down by countries or regions based on the locations of the Company or its consolidated subsidiaries. EMEA stands for Europe, the Middle East and Africa.

1. Net sales recorded at the Company's business locations in Europe during the nine months ended December 31, 2025,

   are included in net sales for EMEA.

2. Net sales in China, which are included in Asia, are 25,282 million yen. Within this total, net sales in the Electronics Industry and the General Industry are 20,152 million yen and 5,129 million yen, respectively.

3. Net sales in the United States, which are included in North & South America, are 47,708 million yen. Within this total, net sales in the Electronics Industry and the General Industry are 18,400 million yen and 29,308 million yen, respectively.

(Business Combination)

(Transaction under common control) (Kurita America Inc.)

On April 1, 2025, Kurita America Inc., a company primarily involved in the manufacture and sale of water treatment chemicals and facilities in the United States, absorbed Avista Technologies Inc., which specialized in the manufacturing and sale of chemicals for reverse osmosis (RO) membranes.

1. Outline of the transaction

   1. Name of the company involved in the business combination and its business

      1. Surviving company

         Name: Kurita America Inc.

         Business description: Manufacturing and sales of water treatment chemicals and Facilities, operation and maintenance of water treatment facilities

      2. Merged company

         Name: Avista Technologies, Inc.

         Business description: Manufacture and sale of chemicals for RO membranes

   2. Date of business combination April 1, 2025

   3. Legal form of business combination

      An absorption-type in which Kurita America Inc. is the surviving company. Avista Technologies Inc. has been dissolved.

   4. Name of the company after business combination Kurita America Inc.

   5. Main reason of business combination

      The merger is aimed at strengthening the Kurita Group's presence in the North America water treatment market by deepening cooperation and information sharing between Kurita America Inc. and Avista Technologies, Inc., thereby creating new business opportunities, accelerating the expansion of the CSV business, including RO chemicals, and broadening the customer base through new market development.

      By combining the extensive portfolio of Kurita America, which specializes in the manufacture and sale of water treatment chemicals and facilities in the United States, with the expertise in membrane treatments of Avista Technologies, which was primarily focused on producing and selling chemicals for RO membranes in the United States, the Kurita Group aims to create and deliver high-quality, more wide-ranging, innovative technologies, products, and services that contribute to addressing water and environmental challenges.

2. Outline of accounting

The business combination under common control is a business combination in which all companies or businesses involved are ultimately controlled by the same company before and after the business combination. The control is not temporary. The Group continues to perform accounting treatment for all business combination transactions under common control based on book value.