Interim report
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FASF Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31 , 2027 ( IFRS ) August 6 , 2026 1. Consolidated financial results for the first quarter of the fiscal year ending March 31 , 2027 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated results of operations Net sales Business profit Operating profit Company name : Securities code : Representative : Contact : Kurita Water Industries Ltd. 6370 URL : https://www.kurita-water.com/en/ Hirohiko Ejiri , Director , President and Representative Executive Officer Shinichi Masuda , General Manager of Corporate Accounting Department Scheduled starting date of dividend payment : Supplementary documents for financial results : Yes Holding of financial results briefing : Stock exchange listing : Tokyo TEL : + 81-3-6743-5054 Yes ( Conference calls for analysts and institutional investors ) ( Amounts are rounded to the nearest million ) ( % : Year - on - year change ) Profit attributable to Total comprehensive Profit Three months ended Million yen June 30 , 2026 June 30 , 2025 99,899 87,415 % Million yen 14.3 8,825 8,190 % Million yen 7.8 14,293 9,016 % Million yen 58.5 % owners of parent Million yen income % Million yen % - 14,383 5,764 149.5 14,346 154.4 16,229 222.1 ( 0.2 ) 5,639 ( 1.1 ) 5,039 ( 66.8 ) Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 131.83 50.84 ( Reference ) Profit before tax Three months ended June 30 , 2026 : Three months ended June 30 , 2025 : 14,619 million yen ( 63.9 % ) 8,917 million yen ( - % ) ( Notes ) 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. Since the fourth quarter of the previous fiscal year , the Company has classified the business of Pentagon Technologies Group , Inc. as discontinued operations . Net sales , business profit , operating profit , and profit before tax are figures pertaining only to continuing operations and exclude figures from discontinued operations . Profit , profit attributable to owners of parent , and total comprehensive income encompass profits from both continuing and discontinued operations . These figures for the first quarter of the previous fiscal year have been restated in the same way , and year - on - year percentage changes for net sales , business profit , operating profit , and profit before tax are not provided . ( 2 ) Consolidated financial condition As of June 30 , 2026 March 31 , 2026 2. Dividend Total assets Total equity Total equity attributable to owners of parent Ratio of equity attributable to owners of parent Million yen 557,643 564,422 Million yen 337,950 343,977 Million yen 335,056 341,151 % 60.1 60.4 First quarter - end per share Second quarter - end Third quarter - end Dividend Fiscal year - end Total Yen Fiscal year ended March 31 , 2026 Yen 56.00 Yen Yen 56.00 Yen 112.00 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( forecast ) 67.00 ( Note ) Revisions to the forecast of cash dividends most recently announced : None 67.00 134.00 3. Forecast of consolidated financial results for the fiscal year ending March 31 , 2027 ( from April 1 , 2026 to March 31 , 2027 ) Net sales First half Full year Million yen 198,000 425,000 % Business profit Million yen Operating profit Profit attributable to owners of parent ( % : Year - on - year change ) Basic earnings per share 5.5 Million yen 23,500 28,000 61,500 7.2 65,500 First half 27,800 million yen ( - % ) % % Million yen % 24,600 43.2 12.4 50,700 217.7 ( Reference ) Profit before tax Yen 228.11 475.47 Full year 65,000 million yen ( 11.8 % ) ( Notes ) 1. Since the fourth quarter of the previous fiscal year , the Company has classified the business of Pentagon Technologies Group , Inc. as discontinued operations . Net sales , business profit , operating profit , and profit before tax are figures pertaining only to continuing operations and exclude figures from discontinued operations . Profit attributable to owners of parent encompasses profits from both continuing and discontinued operations . The year - on - year percentage changes for the full - year forecasts are based on the results for the fiscal year under review , after excluding figures from discontinued operations . 2. The Company purchased treasury shares by resolution of the Board of Directors on May 14 , 2026. The basic earnings per share in the forecast of consolidated financial results for the fiscal year ending March 31 , 2027 , takes into account the effect of the purchase of treasury shares by Board resolution . ( 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: Yes Included: — (company name) — ; excluded: four companies (company names) Pentagon Technologies Group, Inc. and three other companies (2) Changes in accounting policies and accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies other than (i) above: None (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 June 30, 2026 116,200,694 shares As of March 31, 2026 116,200,694 shares (ii) Number of treasury shares at the end of the period: As of June 30, 2026 8,055,244 shares As of March 31, 2026 6,772,548 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year): Three months ended June 30, 2026 108,824,353 shares Three months ended June 30, 2025 110,917,699 shares (Note) The total number of treasury shares at the end of the period includes shares of the Company (447,000 shares in the three months ended June 30, 2026, 447,000 shares in the fiscal year ended March 31, 2026). 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. (447,000 shares in the three months ended June 30, 2026, 498,000 shares in the three months ended June 30, 2025). * 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 “(4) Forecasts for the Fiscal Year Ending March 31, 2027” on page 7 of the accompanying materials. * This document is an English translation of the Earnings Report for the First Quarter of the Fiscal Year Ending March 31, 202 7 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 ................................................................................................................................................................. 6 (3) Cash Flows.............................................................................................................................................................................. 7 (4) Forecasts for the Fiscal Year Ending March 31, 2027 ............................................................................................................ 7 2. Condensed Quarterly Consolidated Financial Statements and Key Notes .................................................................................... 8 (1) Condensed Quarterly Consolidated Statement of Financial Position ...................................................................................... 8 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income .......................................................................................................................................................... 10 (3) Condensed Quarterly Consolidated Statement of Changes in Equity ..................................................................................... 12 (4) Condensed Quarterly Consolidated Statement of Cash Flows ................................................................................................ 14 (5) Notes to Condensed Quarterly Consolidated Financial Statements ........................................................................................ 16 (Notes on the Going-concern Assumption) .......................................................................................................................... 16 (Changes in the Method of Presentation) .............................................................................................................................. 16 (Segment Information) ......................................................................................................................................................... 17 (Bonds) ................................................................................................................................................................................. 19 (Notes in the Event of Significant Changes in Shareholders’ Equity) .................................................................................. 19 (Net Sales) ............................................................................................................................................................................ 20 (Per Share Information) ........................................................................................................................................................ 21 (Other Income) ..................................................................................................................................................................... 21 (Discontinued Operations) .................................................................................................................................................... 22
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- 2 - 1. Results of Operations (1) Results of Operations 1) Three Months Ended June 30, 2026 (April 1, 2026 - June 30, 2026) During the three months ended June 30, 2026, the global economy experienced ongoing uncertainty due to worsening conditions in the Middle East, which caused rising prices. Despite this difficult environment, the global economy continued to recover moderately overall. In Japan, production in the manufacturing industry showed weakness, especially in the petrochemical sector, due to stagnant crude oil imports from the Middle East. However, the economy achieved a moderate recovery overall. Capital expenditures continued to improve, driven by strong corporate earnings. Overseas, the U.S. economy saw moderate growth. European economies also maintained a similarly modest growth trend. In China, domestic demand was weak, and the economy slowed. Meanwhile, other Asian countries experienced moderate growth, partly due to increased capital investment, particularly in AI semiconductors. In this environment, the Company decided on May 13, 2026 to transfer the shares in Pentagon Technologies Group, Inc. (Electronics Industry), which operated a precision tool cleaning business primarily in the United States. The share transfer was completed on June 30. Since the fourth quarter of the previous fiscal year, the assets of Pentagon Technologies Group, Inc. have met the criteria for classification as assets held for sale under IFRS 5 Non -current Assets Held for S ale and Discontinued Operations. The Group has thus classified the business of Pentagon Technologies Group, Inc. as discontinued operations. The presentation of its consolidated financial statements for the first quarter under review has been updated, and the condensed quarterly consolidated financial statements and notes for the first quarter of the previous fiscal year have been restated to align with the new presentation. These initiatives resulted in a total of 165,691 million yen in consolidated orders for continuing operations, a 77.1% increa se year on year. Net sales increased 14.3%, to 99,899 million yen. Business profit* increased 7.8%, to 8,825 million yen, operating profit was 14,293 million yen, up 58.5%, profit before tax was 14,619 million yen, rising 63.9%, and profit attributable to owners of parent, which encompasses profits from both continuing and discontinued operations, came to 14,346 million yen, up 154.4%. During the first quarter of the fiscal year under review, other income of 5,908 million yen and other expenses of 439 million yen were posted in continuing operations. Other income increased 4,814 million yen from the previous fiscal year. This increase was chiefly due to exchange differences on translation of foreign operations of 5,021 million yen, which was recorded in other income following the completion of the aforementioned transfer of the shares of Pentagon Technologies Group, Inc. * 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 - (Note) Since the fourth quarter of the previous fiscal year, the Company has classified the business of Pentagon Technologies Group, Inc. as discontinued operations. Orders, net sales, business profit, and operating profit for the first three months of the fiscal year ending March 31, 2027 are figures pertaining only to continuing operations and exclude figures from discontinued operations. Profit attributable to owners of parent encompasses profits from both continuing and discontinued operations. These figures for the first three months of the fiscal year ended March 31, 2026 have been restated accordingly.
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- 4 - 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. (i) Electronics Industry Total Group orders for the Electronics Industry segment in continuing operations (the same applies hereinafter) were 97,943 million yen, up 192.4% versus the same period of the previous fiscal year . Orders for water treatment facilities increased significantly due to multiple large-scale projects acquired in East Asia and the United States, driven by strong global investment in building new semiconductor plants or expanding existing ones. While orde rs for maintenance declined, orders for recurring contract-based services increased, primarily due to a new ultrapure water supply contract. Total Group net sales for the Electronics Industry segment amounted to 45,929 million yen, an increase of 23.3% year on year. Net sales for water treatment facilities increased due to sales from a backlog of orders. Net sales for recurring contract -based services rose for the same reason that orders increased. In terms of profits, business profit stood at 4,105 million yen, down 10.3% year on year, chiefly due to additional costs incurred in a project. Operating profit came to 9,463 million yen, an increase of 90.6% year on year. This growth is largely attributable to exchange differences on translation of foreign operations, totaling 5,021 million yen, associated with Pentagon Technologies Group, Inc. This amount was recorded under other income. (Note) Since the fourth quarter of the previous fiscal year, the Company has classified the business of Pentagon Technologies Group, Inc. as discontinued operations. Orders, net sales, business profit, and operating profit for the first three months of the fiscal year ending March 31, 2027 are figures pertaining only to continuing operations and exclude figures from discontinued operations. These figures for the first three months of the fiscal year ended March 31, 2026 have been restated accordingly.
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- 5 - (ii) General Industry Total Group orders for the General Industry segment increased 12.8% from the same period of the previous fiscal year, to 67,747 million yen. Orders for water treatment facilities increased due to orders for a large domestic project. There was also a rise in orders for maintenance and recurring contract-based services. Orders for water treatment chemicals rose due to the growth of the CSV business and the depreciation of the yen, resulting in higher amounts when converted to yen. Total Group net sales for the General Industry segment amounted to 53,970 million yen, an increase of 7.6% year on year. Net sales for water treatment facilities increased due to sales from a backlog of orders from the previous fiscal year. Net sales for main tenance declined. Net sales for water treatment chemicals rose for the same reason that orders increased. Net sales for recurring contract-based services also increased. In terms of profits, business profit stood at 4,723 million yen, an increase of 29.5% year on year, due to higher sales and a lower cost of sales ratio, driven by higher net sales for the CSV business with high added value. Operating profit came to 4,834 million yen, up 18.4% year on year, while there was a decrease in foreign exchange gains from those reported by subsidiaries in Europe and the United States during the first quarter of the previous fiscal year.
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- 6 - (2) Financial Condition Condition of Assets, Liabilities and Equity 1) Total assets: 557,643 million yen, a decrease of 6,779 million yen from the end of the previous fiscal year Current assets totaled 241,951 million yen at the end of the first quarter, a decrease of 7,034 million yen from the end of t he previous fiscal year. This was mainly due to a decrease of 4,864 million yen in trade and other receivables, and contract ass ets and a decline of 8,211 million yen in assets held for sale due to the transfer of the shares in Pentagon Technologies Group, Inc. These decreases were partially offset by increases of 3,620 million yen in cash and cash equivalents, excluding those include d in assets held for sale, and 1,806 million yen in other current assets. Non-current assets totaled 315,691 million yen at the end of the first quarter, an increase of 254 million yen from the end of the previous fiscal year. This was chiefly attributable to an increase of 4,352 million yen in other financial assets, partially offset by a decrease of 3,813 million yen in property, plant and equipment. 2) Liabilities: 219,693 million yen, a decrease of 752 million yen from the end of the previous fiscal year. Current liabilities totaled 119,702 million yen at the end of the first quarter, an increase of 636 million yen from the end of the previous fiscal year. This was chiefly attributable to increases of 2,855 million yen in trade and other payables and 17,106 million yen in bonds and borrowings. These increases were partially offset by decreases of 4,073 million yen in income taxes payable, etc., 4,668 million yen in other current liabilities, and 10,349 million yen in liabilities directly associated with assets held for sale due to the transfer of the shares of Pentagon Technologies Group, Inc. Bonds and borrowings increased mainly due to the issuance of commercial paper and the transfer of a current portion of bonds payable of 10,000 million yen from non-current liabilities. Non-current liabilities totaled 99,990 million yen at the end of the first quarter, a decrease of 1,389 million yen from the end of the previous fiscal year. This was mainly due to a decrease of 1,029 million yen in bonds and borrowings resulting from the aforementioned transfer of a current portion of bonds payable to current liabilities, despite the issuance of bonds totaling 10,000 million yen. 3) Equity: 337,950 million yen, a decrease of 6,027 million yen from the end of the previous fiscal year The decrease in equity was primarily attributable to a decrease caused by an increase of 11,115 million yen in treasury share s that followed purchases made in the market and a decrease of 3,188 million yen in other components of equity, mainly due to a reduction in exchange differences on translation of foreign operations, which occurred following the transfer of the shares in Pentagon Technologies Group, Inc. These decreases outweighed an increase of 8,229 million yen in retained earnings.
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- 7 - (3) Cash Flows Consolidated net cash and cash equivalents at the end of the first quarter totaled 65,790 million yen, an increase of 539 million yen from the end of the previous fiscal year. Cash and cash equivalents at the end of the previous fiscal year reported in the consolidated statement of cash flows stood at 65,251 million yen. This amount includes cash and cash equivalents totaling 3,081 million yen that are part of assets held for sale. During the first quarter of the fiscal year under review, the various cash flows and related factors are outlined below. 1) Cash Flows from Operating Activities Net cash provided by operating activities during the first quarter ended June 30, 2026 totaled 10,065 million yen, a decrease of 255 million yen from the same period of the previous fiscal year. This was chiefly due to inflows, including profit before tax of 14,619 million yen, profit before tax from discontinued operations of 3,193 million yen, depreciation, amortization and impairment losses of 8,989 million yen, and a decrease in trade and other receivables, and contract assets of 4,569 million y en, partially offset by outflows that included income taxes paid of 9,725 million yen, a realized gain on exchange differences on translation of foreign operations of 5,021 million yen, and other (primarily a decrease in accrued consumption taxes) of 5,79 0 million yen. 2) Cash Flows from Investing Activities Net cash used in investing activities totaled 7,240 million yen, a decrease of 2,875 million yen from the same period of the previous fiscal year. Cash was used mainly for the purchase of property, plant and equipment of 4,061 million yen, payments for the sale of subsidiaries of 2,516 million yen, and the purchase of investment securities of 957 million yen. 3) Cash Flows from Financing Activities Net cash used in financing activities totaled 2,813 million yen, a decrease of 7,897 million yen from the same period of the previous fiscal year. Cash was used mainly for the purchase of treasury shares of 11,113 million yen, dividends paid of 6,230 million yen, and repayments of lease liabilities of 1,471 million yen, which were partially offset by a net increase in short -term borrowings and commercial paper of 7,131 million yen due to the issuance of commercial paper and proceeds from issuance of bonds of 9,955 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 first quarter of the fiscal year under review, the Group has concluded commitment line contracts with two financial institutions (no borrowing executed and the unused commitment balance totaled 20,000 million yen). (4) Forecasts for the Fiscal Year Ending March 31, 2027 The Group considers that consolidated earnings forecasts for the fiscal year ending March 31, 2027 will be consistent with th e forecast for the first half of the fiscal year ending March 31, 2027 and for the full fiscal year stated in the “Notice Regar ding Recognition of Gain on Transfer of Subsidiary Shares and Revision of Business Forecast” released on July 29, 2026. The busine ss forecasts are made by the Company based on information available at the time of publication of this report and may differ fro m actual results due to changes in a range of factors.
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- 8 - 2. Condensed Quarterly Consolidated Financial Statements and Key Notes (1) Condensed Quarterly Consolidated Statement of Financial Position (Million yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 62,170 65,790 Trade and other receivables, and contract assets 145,633 140,769 Other financial assets 5,018 4,891 Inventories 20,352 21,096 Other current assets 7,598 9,404 Subtotal 240,773 241,951 Assets held for sale 8,211 ‒ Total current assets 248,985 241,951 Non-current assets Property, plant and equipment 186,762 182,949 Right-of-use assets 17,863 17,845 Goodwill 61,497 62,261 Intangible assets 15,395 15,056 Investments accounted for using equity method 1,684 1,793 Other financial assets 23,484 27,836 Deferred tax assets 8,291 7,490 Other non-current assets 458 457 Total non-current assets 315,437 315,691 Total assets 564,422 557,643
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- 9 - (Million yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 53,452 56,307 Bonds and borrowings 15,884 32,990 Lease liabilities 4,781 4,722 Income taxes payable 11,378 7,305 Provisions 2,414 2,237 Other current liabilities 20,805 16,137 Subtotal 108,717 119,702 Liabilities directly associated with assets held for sale 10,349 ‒ Total current liabilities 119,066 119,702 Non-current liabilities Bonds and borrowings 63,945 62,916 Lease liabilities 14,441 14,418 Other financial liabilities 1,021 1,009 Retirement benefit liability 17,537 17,692 Provisions 2,937 2,973 Deferred tax liabilities 614 322 Other non-current liabilities 881 658 Total non-current liabilities 101,379 99,990 Total liabilities 220,445 219,693 Equity Share capital 13,450 13,450 Capital surplus (21) (43) Treasury shares (27,119) (38,234) Other components of equity 40,090 36,902 Retained earnings 314,750 322,979 Equity attributable to owners of parent 341,151 335,056 Non-controlling interests 2,826 2,893 Total equity 343,977 337,950 Total liabilities and equity 564,422 557,643
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- 10 - (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) Three months ended June 30, 2025 Three months ended June 30, 2026 Continuing operations Net sales 87,415 99,899 Cost of sales 55,917 65,846 Gross profit 31,497 34,053 Selling, general and administrative expenses 23,306 25,228 Other income 1,094 5,908 Other expenses 268 439 Operating profit 9,016 14,293 Finance income 241 869 Finance costs 354 557 Share of profit of investments accounted for using equity method 13 13 Profit before tax 8,917 14,619 Income tax expense 2,936 3,902 Profit from continuing operations 5,981 10,717 Discontinued operations Profit (loss) from discontinued operations (216) 3,665 Profit 5,764 14,383 Profit attributable to Owners of parent 5,639 14,346 Non-controlling interests 125 37 Profit 5,764 14,383 Earnings (loss) per share Continuing operations 53.09 98.11 Discontinued operations (2.25) 33.72 Basic earnings per share (yen) 50.84 131.83 Diluted earnings per share Continuing operations ‒ ‒ Discontinued operations ‒ ‒ Diluted earnings per share (yen) ‒ ‒
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- 11 - Condensed quarterly consolidated statement of comprehensive income (Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 5,764 14,383 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 206 538 Remeasurements of defined benefit plans ‒ 10 Total of items that will not be reclassified to profit or loss 206 549 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (900) 1,262 Cash flow hedges (8) (10) Share of other comprehensive income of investments accounted for using equity method (22) 43 Total of items that may be reclassified to profit or loss (931) 1,296 Other comprehensive income, net of tax (725) 1,846 Comprehensive income for the period 5,039 16,229 Comprehensive income attributable to Owners of parent 5,011 16,190 Non-controlling interests 27 38 Comprehensive income for the period 5,039 16,229
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- 12 - (3) Condensed Quarterly Consolidated Statement of Changes in Equity Three months ended June 30, 2025 (April 1, 2025 - June 30, 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 ‒ ‒ ‒ (825) (8) 206 Comprehensive income ‒ ‒ ‒ (825) (8) 206 Purchase of treasury shares ‒ ‒ (12,237) ‒ ‒ ‒ Dividends ‒ ‒ ‒ ‒ ‒ ‒ Share-based payment transactions ‒ (18) 3 ‒ ‒ ‒ Other ‒ (3) ‒ ‒ ‒ ‒ Total transactions with owners ‒ (21) (12,233) ‒ ‒ ‒ Balance as of June 30, 2025 13,450 (12) (24,433) 20,241 25 3,894 (Million yen) Total equity attributable to owners of parent Non-controlling interests Total Other components of equity Retained earnings Total Total Balance as of April 1, 2025 24,789 309,978 336,027 2,477 338,504 Profit ‒ 5,639 5,639 125 5,764 Other comprehensive income (627) ‒ (627) (97) (725) Comprehensive income (627) 5,639 5,011 27 5,039 Purchase of treasury shares ‒ ‒ (12,237) ‒ (12,237) Dividends ‒ (5,328) (5,328) (49) (5,378) Share-based payment transactions ‒ ‒ (14) ‒ (14) Other ‒ (3) (6) ‒ (6) Total transactions with owners ‒ (5,331) (17,586) (49) (17,636) Balance as of June 30, 2025 24,161 310,286 323,452 2,455 325,907
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- 13 - Three months ended June 30, 2026 (April 1, 2026 - June 30, 2026) (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, 2026 13,450 (21) (27,119) 34,558 17 5,514 Profit ‒ ‒ ‒ ‒ ‒ ‒ Other comprehensive income ‒ ‒ ‒ 1,305 (10) 538 Comprehensive income ‒ ‒ ‒ 1,305 (10) 538 Purchase of treasury shares ‒ ‒ (11,114) ‒ ‒ ‒ Dividends ‒ ‒ ‒ ‒ ‒ ‒ Share-based payment transactions ‒ (21) ‒ ‒ ‒ ‒ Transfer from other components of equity to retained earnings ‒ ‒ ‒ ‒ ‒ ‒ Other ‒ ‒ ‒ (5,021) ‒ ‒ Total transactions with owners ‒ (21) (11,114) (5,021) ‒ ‒ Balance as of June 30, 2026 13,450 (43) (38,234) 30,842 7 6,052 (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, 2026 ‒ 40,090 314,750 341,151 2,826 343,977 Profit ‒ ‒ 14,346 14,346 37 14,383 Other comprehensive income 10 1,844 - 1,844 1 1,846 Comprehensive income 10 1,844 14,346 16,190 38 16,229 Purchase of treasury shares ‒ ‒ ‒ (11,114) ‒ (11,114) Dividends ‒ ‒ (6,127) (6,127) (102) (6,230) Share-based payment transactions ‒ ‒ ‒ (21) ‒ (21) Transfer from other components of equity to retained earnings (10) (10) 10 ‒ ‒ ‒ Other ‒ (5,021) ‒ (5,021) 132 (4,889) Total transactions with owners (10) (5,032) (6,116) (22,285) 29 (22,256) Balance as of June 30, 2026 ‒ 36,902 322,979 335,056 2,893 337,950
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- 14 - (4) Condensed Quarterly Consolidated Statement of Cash Flows (Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from operating activities Profit before tax 8,917 14,619 Profit (loss) before tax from discontinued operations (278) 3,193 Depreciation, amortization and impairment losses 8,696 8,989 Share of loss (profit) of investments accounted for using equity method (13) (13) Realized gain on exchange differences on translation of foreign operations ‒ (5,021) Loss (gain) on sale of fixed assets (17) (444) Decrease (increase) in inventories (778) (1,376) Decrease (increase) in trade and other receivables, and contract assets 5,518 4,569 Increase (decrease) in trade and other payables (2,562) 1,407 Other (3,096) (5,790) Subtotal 16,383 20,132 Interest received 148 259 Dividends received 101 92 Interest paid (197) (693) Income taxes paid (6,115) (9,725) Net cash provided by (used in) operating activities 10,320 10,065
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- 15 - (Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from investing activities Payments into time deposits (1,769) (110) Proceeds from withdrawal of time deposits 1,023 305 Purchase of property, plant and equipment (8,509) (4,061) Proceeds from sale of property, plant and equipment 575 413 Purchase of intangible assets (989) (478) Purchase of investment securities (0) (957) Payments for the sale of subsidiaries ‒ (2,516) Other (445) 165 Net cash provided by (used in) investing activities (10,115) (7,240) Cash flows from financing activities Net increase (decrease) in short-term borrowings and commercial paper 9,097 7,131 Repayments of long-term borrowings (1,079) (1,084) Proceeds from issuance of bonds ‒ 9,955 Purchase of treasury shares (12,237) (11,113) Repayments of lease liabilities (1,281) (1,471) Dividends paid (5,209) (6,230) Net cash provided by (used in) financing activities (10,710) (2,813) Effect of exchange rate changes on cash and cash equivalents 1,160 526 Net increase (decrease) in cash and cash equivalents (9,345) 539 Cash and cash equivalents at beginning of period 62,951 65,251 Cash and cash equivalents at end of period 53,606 65,790
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- 16 - (5) Notes to Condensed Quarterly Consolidated Financial Statements (Notes on the Going-concern Assumption) Not applicable (Changes in the Method of Presentation) Since the fourth quarter of the previous fiscal year, the Company has classified the business of Pentagon Technologies Group, Inc. as discontinued operations. Accordingly, the condensed quarterly consolidated statement of profit or loss, condensed quarterly consolidated statement of cash flows and related notes for the first three months of the previous fiscal year have been reclassified to conform to the presentation format for the first three months of the current fiscal year. (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 thre e months of the previous fiscal year, is presented separately for the first three 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 three months of the previous fiscal year. The -445 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 three months of the previous fiscal year is now presented as -0 million yen in “purchase of investment securities” and -445 million yen in “Other.”
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- 17 - (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. Since the fourth quarter of the previous fiscal year, the Group has classified the business of Pentagon Technologies Group, Inc. as discontinued operations. The segment information is prepared based on continuing operations. The financial figures for Pentagon Technologies Group, Inc. for the first quarter of the previous fiscal year, which were part of the Electronics Industry segment, are not included in the information below. The data presented here pertains only to continuing operations.
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- 18 - (2) Information of Reportable Segments Three months ended June 30, 2025 (April 1, 2025 - June 30, 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 37,264 50,151 87,415 ‒ 87,415 Intersegment sales and transfers ‒ ‒ ‒ ‒ ‒ Total 37,264 50,151 87,415 ‒ 87,415 Segment profit 4,965 4,084 9,050 (33) 9,016 Finance income 241 Finance costs 354 Share of profit of investments accounted for using equity method 13 Profit before tax 8,917 (Notes) 1. Adjustments to segment profit include the elimination of intersegment transactions, etc. 2. Segment profit shows the amount of operating profit. Three months ended June 30, 2026 (April 1, 2026 - June 30, 2026) (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 45,929 53,970 99,899 ‒ 99,899 Intersegment sales and transfers ‒ ‒ ‒ ‒ ‒ Total 45,929 53,970 99,899 ‒ 99,899 Segment profit 9,463 4,834 14,297 (3) 14,293 Finance income 869 Finance costs 557 Share of profit of investments accounted for using equity method 13 Profit before tax 14,619 (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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- 19 - (3) Information Related to Products and Services Net sales to external customers for the primary product and service lines are as follows. (Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Electronics Industry Facilities 14,376 21,340 Recurring contract-based services 13,219 14,464 Chemicals 2,766 3,158 Precision tool cleaning 1,942 2,213 Maintenance 4,959 4,753 Subtotal 37,264 45,929 General Industry Facilities 5,873 6,659 Recurring contract-based services 3,014 3,341 Chemicals 28,060 31,613 Maintenance 11,391 10,784 Other 1,811 1,572 Subtotal 50,151 53,970 Total 87,415 99,899 (Bonds) Three months ended June 30, 2025 (April 1, 2025 - June 30, 2025) No bonds were issued or redeemed. Three months ended June 30, 2026 (April 1, 2026 - June 30, 2026) The bonds issued are described below. Name Issue Issue date Total amount issued (million yen) Interest rate (%) Redemption period Kurita Water Industries Fourth series of unsecured bonds June 18, 2026 10,000 2.246 June 18, 2031 No bonds were redeemed. (Notes in the Event of Significant Changes in Shareholders’ Equity) The Company purchased 1,282,600 shares of treasury shares by resolution of the Board of Directors on May 14, 2026. Consequently, treasury shares increased by 11,112 million yen.
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- 20 - (Net Sales) The table below presents a breakdown of net sales for each reportable segment based on contracts with customers. Three months ended June 30, 2025 (April 1, 2025 - June 30, 2025) (Million yen) Reportable Segments Amounts reported on the condensed quarterly consolidated statement of profit or loss Electronics Industry General Industry Japan 20,000 25,498 45,498 Asia 15,459 5,561 21,020 North & South America 1,163 10,722 11,885 EMEA 640 8,369 9,010 Total 37,264 50,151 87,415 (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 three months ended June 30, 2025, are included in net sales for EMEA. 3. Net sales in the United States, which are included in North & South America, are 9,996 million yen. Within this total, net sales in the Electronics Industry and the General Industry are 1,163 million yen and 8,833 million yen, respectively. Three months ended June 30, 2026 (April 1, 2026 - June 30, 2026) (Million yen) Reportable Segments Amounts reported on the condensed quarterly consolidated statement of profit or loss Electronics Industry General Industry Japan 22,023 26,405 48,429 Asia 19,309 5,661 24,970 North & South America 2,221 12,577 14,799 EMEA 2,374 9,325 11,700 Total 45,929 53,970 99,899 (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 the United States during the three months ended June 30, 2026, are included in net sales for North & South America. 3. Net sales recorded at the Company’s business locations in Europe during the three months ended June 30, 2026, are included in net sales for EMEA. 4. Net sales in the United States, which are included in North & South America, are 12,310 million yen. Within this total, net sales in the Electronics Industry and the General Industry are 2,221 million yen and 10,089 million yen, respectively.
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- 21 - (Per Share Information) Basic earnings (loss) per share and the basis for its calculation are shown below. (Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit (loss) attributable to owners of parent Continuing operations Discontinued operations 5,639 5,888 (249) 14,346 10,676 3,669 Amount not attributed to common stockholders ‒ ‒ Profit (loss) that is used for calculating basic earnings per share Continuing operations Discontinued operations 5,639 5,888 (249) 14,346 10,676 3,669 Average number of common shares outstanding 110,917,699 108,824,353 Basic earnings (loss) per share (yen) Continuing operations Discontinued operations 50.84 53.09 (2.25) 131.83 98.11 33.72 (Notes) 1. Because there are no dilutive shares, diluted earnings per share are not stated. 2. 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. (498,000 shares in the first quarter of the fiscal year ended March 31, 2026, 447,000 shares in the first quarter of the fiscal year ending March 31, 2027) (Other Income) Three months ended June 30, 2025 (April 1, 2025 - June 30, 2025) Information is omitted due to the absence of significant events. Three months ended June 30, 2026 (April 1, 2026 - June 30, 2026) In the first quarter under review, a realized gain on exchange differences on translation of foreign operations of 5,021 million yen was recorded in other income. This income was recognized upon the realization of exchange differences on translation of foreign operations related to the transfer of the shares of Pentagon Technologies Group, Inc.
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- 22 - (Discontinued Operations) (1) Outline of discontinued operations On May 13, 2026, the Company decided to transfer all outstanding shares of Pentagon Technologies Group, Inc. held by Kurita America Holdings Inc., a consolidated subsidiary of the Company, to AEQH20 GmbH, a subsidiary of AEQUITA GmbH & Co. KG. On the same day, the Company signed a share transfer agreement. The assets of Pentagon Technologies Group, Inc. met the criteria for classification as assets held for sale under IFRS 5 Non - current Assets Held for Sale and Discontinued Operations. Profit or loss from Pentagon Technologies Group, Inc. has thus been classified as discontinued operations since the fourth quarter of the previous fiscal year. This reclassification is also applied to the first quarter of the previous fiscal year. The transfer of the shares of Pentagon Technologies Group, Inc. was completed on June 30, 2026. (2) Profit (loss) from discontinued operations (Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Discontinued operations Revenue (Note) Expenses 4,590 4,869 9,714 6,520 Profit (loss) before tax from discontinued operations (278) 3,193 Income tax expense (62) (472) Profit (loss) from discontinued operations (216) 3,665 (Note) This revenue includes a gain on sale of shares recognized upon the completion of the transfer of shares of Pentagon Technologies Group, Inc. in the three months ended June 30, 2026 and gain on settlement resulting from the termination of a lease contract entered into by Pentagon Technologies Group, Inc., which total 2,647 million yen. (3) Cash flows of discontinued operations (Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities (Note) Net cash provided by (used in) financing activities 158 (2,425) (61) (403) (2,642) (131) Total (2,327) (3,176) (Note) This net cash used in investing activities includes payments for the sale of subsidiaries of 2,516 million yen resulting from the completion of the transfer of shares of Pentagon Technologies Group, Inc. in the three months ended June 30, 2026. This loss reflects the deduction of cash and cash equivalents held by Pentagon Technologies Group, Inc. on the date when the Company lost its control of it.