Page 1

FOR IMMEDIATE RELEASE Kurita Water Industries Reports Earnings for the Six Months Ended September 30 , 2021 Tokyo , Japan , October 29 , 2021 - Kurita Water Industries Ltd. ( the “ Company ” ) ( TSE Securities Code 6370 ) announced net sales of 135,239 million yen and profit attributable to owners of parent of 5,705 million yen , or 50.78 yen per share , for the six months ended September 30 , 2021 ( April 1 , 2021 - September 30 , 2021 ) . Results of Operations Total consolidated orders for the Kurita Group ( the “ Group ” ) in the six months ended September 30 , 2021 rose 15.9 % from the level of the year - ago period , to 147,810 million yen , and net sales increased 3.2 % , to 135,239 million yen . Business profit * was increased 9.4 % , to 14,883 million yen , operating profit was 14,749 million yen , down 7.9 % versus the year - ago period , profit before tax was 11,161 million yen , declined 27.5 % , and profit attributable to owners of parent amounted to 5,705 million yen , down 46.2 % . Operating profit , profit before tax and profit attributable to owners of parent declined due to finance costs of 3,611 million yen posted in the first six months under review , which resulted from the subsequent measurement of liabilities related to a forward contract concluded with non- controlling shareholders of Pentagon Technologies Group , Inc. , and the absence of a profit from liquidation of 2,086 million yen related to cancellations of contracts with a certain customer in the ultrapure water supply business posted in other income in the same period of the previous fiscal year . In the first quarter of the fiscal year under review , the Group acquired 51 % of the shares in Kurita AquaChemie Limited ( Water Treatment Chemicals business ) in the Middle East and made it and its two wholly owned consolidated subsidiaries . The Group acquired also Keytech Water Management ( Water Treatment Chemicals business ) , making it a consolidated subsidiary . The operating results of those companies are newly consolidated . The PPA for Pentagon Technologies Group , Inc. , which was consolidated in the same period of the previous fiscal year , was determined at the end of the previous fiscal year , and the results in the same period of the previous fiscal year have been revised retroactively . During the six months of the fiscal year ending March 31 , 2022 , there were signs of a recovery in the world economy as economic activity moved toward normalization , reflecting economic stimulus measures in the world and the increasing pace of vaccinations . Production activities in the manufacturing industry in Japan were weak in certain sectors due to the effects of the spread of COVID - 19 on supply chains but were on a recovery trend . There were signs of recovery in capital investment . Overseas , European , the U.S. and Chinese economies recovered steadily . Meanwhile , in some parts of Asia , economic recovery was weak due to a resurgence in COVID - 19 infections . In this environment , the Group stepped up initiatives to expand total solutions by focusing on proposal activities that would help solve customer issues such as the reduction of the environmental impact , including water saving , the reduction of CO2 emissions and waste reduction , and an improvement in productivity based on a deep understanding of social and customers ' issues , aiming to become an indispensable partner of customers in the long term . * 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 . Segment Information The Group consists of two reportable segments in its segment information : Water Treatment Chemicals and Water Treatment Facilities . Water Treatment Chemicals Total Group orders for the Water Treatment Chemicals segment were 58,668 million yen , up 12.0 % 1