Interim report
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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 user s 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.) Net sales Business profit Operating profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 425,000 3.9 54,000 9.8 53,500 71.1 36,300 78.8 330.61 (Reference) Profit before taxes Full year 52,500 million yen (65.0%) (Note) Revisions to results forecasts most recently announced: None
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and accounting estimates (i) Changes in accounting policies required by IFRS: No (ii) Changes in accounting policies other than (i) above: No (iii) Changes in accounting estimates: None (3) Number of issued shares (common share) (i) Number of issued shares at the end of the period (including treasury shares): As of December 31, 2025 116,200,694 shares As of March 31, 2025 116,200,694 shares (ii) Number of treasury shares at the end of the period: As of December 31, 2025 6,773,660 shares As of March 31, 2025 4,035,900 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year): Nine months ended December 31, 2025 109,918,205 shares Nine months ended December 31, 2024 112,436,985 shares (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 E nglish version, the Japanese version shall take precedence in all cases.
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- 1 - 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 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income 8 (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
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- 2 - 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.
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- 3 - 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. (i) 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 cert ain 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. (ii) 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
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- 4 - 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 recurri ng 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 ye n, 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 en d 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 fro m 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.
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- 5 - 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 par ent, which outweighed a decrease in equity caused by an increase of 14,923 million yen in treasury shares that followed purchas es 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 m illion 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 fundr aising 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 th e 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 m ay differ from actual results due to changes in a range of factors.
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- 6 - 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
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- 7 - (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
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- 8 - (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) ‒ ‒
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- 9 - 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
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- 10 - (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
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- 11 - 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
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- 12 - (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
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- 13 - (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
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- 14 - (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 incr ease 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.
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- 15 - (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.
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- 16 - (3) Information Related to Products and Services Net sales to external customers for the primary product and service lines are as follows. (Million yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Electronics Industry Facilities 53,653 48,514 Recurring contract-based services 40,286 41,225 Chemicals 9,026 8,861 Precision tool cleaning 21,745 19,730 Maintenance 15,241 18,163 Subtotal 139,954 136,495 General Industry Facilities 20,605 25,080 Recurring contract-based services 8,277 9,232 Chemicals 89,229 89,699 Maintenance 35,970 37,094 Other 6,805 6,002 Subtotal 160,888 167,108 Total 300,842 303,604 (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 date s 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 date s are December 9, 2030 and December 26, 2030, in a lump sum payment) in the third quarter under review.
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- 17 - (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. 2. 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. 3. 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) (Million yen) Reportable Segments Amounts reported on the condensed quarterly consolidated statement of profit or loss Electronics Industry General Industry Japan 66,152 87,559 153,711 Asia 45,801 17,321 63,123 North & South America 18,400 35,760 54,160 EMEA 6,140 26,467 32,608 Total 136,495 167,108 303,604 (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. 2. 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. 3. 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. 4. 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.
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- 18 - (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 (i) Name of the company involved in the business combination and its business i) Surviving company Name: Kurita America Inc. Business description: Manufacturing and sales of water treatment chemicals and Facilities, operation and maintenance of water treatment facilities ii) Merged company Name: Avista Technologies, Inc. Business description: Manufacture and sale of chemicals for RO membranes (ii) Date of business combination April 1, 2025 (iii) Legal form of business combination An absorption-type in which Kurita America Inc. is the surviving company. Avista Technologies Inc. has been dissolved. (iv) Name of the company after business combination Kurita America Inc. (v) 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.