kurita water industries ltd. results presentation for the ...€¦ · results presentation for the...

Results Presentation

for the Year Ended March 31, 2015

Kurita Water Industries Ltd.

April 30, 2015

(Securities code: 6370)

Study the properties of water, master them,

and we will create an environment

in which nature and man are in harmony.

Table of Contents

Consolidated Financial Results for the Fiscal Year Ended March 31, 2015

Consolidated Business Plan for the Fiscal Year Ending March 31, 2016

Review of Previous Medium-Term Management Plan

“TA-14 (Take Action 2014)”

Outline of New Medium-Term Management Plan

“CK-17 (Competitive Kurita 2017)”

Reference Material

I

II

III

IV

I. Consolidated Financial Results for the

Fiscal Year Ended March 31, 2015

1.

2.

3.

4.

5.

6.

Financial Highlights

Orders, Sales, Operating Income, and Operating Income Margin

Water Treatment Chemicals

Water Treatment Facilities (for the electronics industry)

Water Treatment Facilities (for general industries)

Financial Condition

I. Consolidated Financial Results for the Fiscal Year

Ended March 31, 2015

Fiscal Year to March 2014

Actual

Fiscal Year to March 2015

Actual

Year-on-Year Change

Revised Projections

Initial Projections

Orders 173.5 181.3 + 4.5% 186.0 189.0

Net Sales 178.1 189.4 + 6.3% 188.0 185.0

Operating Income 14.9 19.4 + 30.6% 18.0 17.0

Ordinary Income 16.1 18.9 + 17.8% 17.8 17.8

Net Income 9.4 10.4 + 11.6% 11.0 11.0

Orders increased mainly for water treatment facilities.

Net sales rose primarily due to progress with the construction of water treatment facilities.

Operating income grew, reflecting the effect of higher sales and lower SG&A expenses.

M&A related expenses were recorded under non-operating expenses.

As a result of the lowering of the effective tax rate, deferred tax assets decreased, while tax expenses increased.

(Billions of Yen)

1

114.0 121.9

59.4 59.4

173.5 181.3

0

100

200

03/2014 03/2015

13.5 13.1

5.8

8.9 8.4

10.3

4

10

16

03/2014 03/2015

119.3 129.4

58.8 60.0

178.1 189.4

0

100

200

03/2014 03/2015

6.911.6

8.0

7.914.9

19.4

0

11

22

03/2014 03/2015

Water treatment chemicals Water treatment facilities Total * denotes revised projections

186.0

59.8

126.2

188.0

59.7

128.3

18.0

7.8

10.2

13.1

9.6

8.0

Orders Sales

Operating Income Operating Income Margin

(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

(%)

2



59.4 59.4

0

30

60

03/2014 03/2015

58.8 60.0

0

30

60

03/2014 03/2015

8.0 7.9

13.5 13.1

0

7

14

0

6

12

03/2014 03/2015

59.8

7.8

13.1

59.7

Orders

Domestic sales fell slightly, reflecting delayed recovery in

customers’ capacity utilization.

Overseas sales expanded especially in China and Southeast

Asia.

Operating income declined due to deterioration in the cost of

sales ratio caused by decline in core products, despite the

impact of increased revenue.

Domestic orders fell slightly, reflecting delayed recovery in

customers’ capacity utilization.

Overseas orders expanded especially in China and Southeast

Asia.

(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

Sales

Operating Income (%)

Operating income margin * denotes revised projections

3



7.8 9.7

10.9 12.9

0

7

14

0

7

14

03/2014 03/2015

65.2 69.3

0

40

80

03/2014 03/2015

71.0 75.4

0

40

80

03/2014 03/2015

71.4

8.9

11.9

74.8

(%)

Orders

Sales increased mainly due to progress in the construction of

hardware overseas.

Operating income rose due to the impact of increased revenue

and lower SG&A expenses.

Orders for hardware overseas, which suffered cancellations the previous

fiscal year, increased, reflecting the acquisition of large contracts.

Orders for maintenance services in Japan grew due to recovery in

demand.

Orders for hardware in Japan declined, reflecting the effect of

cancellations.

Orders in the ultrapure water supply business increased.

Sales

Operating Income

4




(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

-0.8 1.8

-1.7

3.4

-4

0

4

-1.8

0.0

1.8

03/2014 03/2015

48.9 52.6

0

30

60

03/2014 03/2015

48.3 54.0

0

30

60

03/2014 03/2015

54.8

1.3

2.5

53.5

(%)

Orders

Sales of electric power industries hardware and general

industries hardware increased due to progress with construction.

Sales of maintenance services for general industries rose as a

result of growth in orders.

Operating income turned positive as a result of substantial

reduction in construction losses and the impact of increased

revenue.

Orders for general industries hardware fell due to the

cancellation of orders.

Orders for maintenance services for general industries increased

due to the success of proposal-based sales.

Sales

Operating Income

5




(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

219.2 223.5

55.8 69.7

274.9 293.2

34.670.9

77.9

74.0

67.2

80.7

95.3

67.5

274.9293.2

Cash,

deposits and

marketable

securities

Other current

assets

Tangible

fixed assets

Other fixed

assets

Liabilities

Net assets

6

Assets Liabilities and Net Assets

Cash and deposits decreased due to business acquisition in Europe and the acquisition of treasury shares.

Other fixed assets increased, reflecting the acquisition of technology-related assets as a result of business

acquisition and the recording of goodwill.

(Billions of Yen) (Billions of Yen)

Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2015

(+ 36.3)

(- 3.8)

(+ 13.6)

(- 27.8)

(+ 4.3)

(+ 14.0)



1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Key Assumptions

Overview

Orders, Sales, Operating Income, and Operating Income Margin


Water Treatment Facilities (for the electronics industry)

Water Treatment Facilities (for general industries)

Service Business Revenue

Overseas Businesses (sales by region and business)

Capital Expenditures, Depreciation, and R&D Expenses

Dividend Policy

II. Consolidated Business Plan for the

Fiscal Year Ending March 31, 2016

7


In the Japanese manufacturing industry, production activity

will recover at a modest pace.

In Europe, demand will recover at a slow pace, while Asia

will continue to see robust growth.

In the Japanese manufacturing industry, capital

expenditures will recover at a slow pace. However,

investment to replace aging equipment is expected.

Overseas, competitive companies will continue to make

capital investments, and outsourcing demand is expected to

emerge.

Water Treatment Facilities

II. Consolidated Business Plan for the Fiscal Year Ending

March 31, 2016

Fiscal Year toMarch 2015

Actual

Fiscal Year toMarch 2016Projection

Year-on-Year Change

Orders 181.3 217.0 +19.7%

Net Sales 189.4 216.0 +14.0%

Operating Income 19.4 19.5 +0.3%

Ordinary Income 18.9 20.0 +5.6%

Net Income 10.4 12.3 +17.9%

(Billions of Yen)

8

Orders in the water treatment chemicals business will increase sharply as a result of business acquisition, and orders in

the water treatment facilities business will also grow, especially overseas.

Sales in the water treatment chemicals business will rise considerably due to business acquisition, while sales in the water

treatment facilities business will remain at the same level.

Operating income is expected to remained unchanged, with higher SG&A expenses offset by improvement in the cost of

sales ratio and the impact of increased revenues.

The tax burden rate is expected to be lower.


March 31, 2016

9

121.9 130.8

59.486.2

181.3217.0

0

100

200

03/2015 03/2016

13.1

8.9 8.9

9.1 10.3

9.0

6

10

14

03/2015 03/2016

129.4 129.8

60.086.2

189.4216.0

0

100

200

03/2015 03/2016

11.6 11.8

7.9 7.7

19.4 19.5

0

11

22

03/2015 03/2016

Water treatment chemicals Water treatment facilities Total

Orders Sales


(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

(%)


March 31, 2016

10

59.4 86.2

0

45

90

03/2015 03/2016

60.0 86.2

0

45

90

03/2015 03/2016

7.9 7.7

13.1 8.9

0

7

14

0

6

12

03/2015 03/2016

Orders

Domestic sales are expected to remain flat amid modest

recovery in customer’s capacity utilization.

Overseas orders will likely increase due to business acquisition

in Europe and continued expansion in Asia.

Excluding the effect of business acquisition, operating income is

expected to increase slightly due to the impact of increased

revenue and improvement in the cost of sales ratio.

Domestic orders are expected to remain flat amid modest

recovery in customer’s capacity utilization.

Overseas orders will likely increase due to business acquisition

in Europe and continued expansion in Asia.

(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

Sales

Operating Income(%)

Operating income margin


March 31, 2016

11

9.7 10.0

12.9 13.5

0

7

14

0

7

14

03/2015 03/2016


69.3 72.2

0

40

80

03/2015 03/2016

75.4 73.9

0

40

80

03/2015 03/2016

Orders

Sales of hardware overseas are predicted to decline, as progress

with construction comes to an end.

Sales in ultrapure water supply business will remain almost flat.

Sales in the precision cleaning business will drop due to

withdrawal from unprofitable business.

Operating income is expected to increase due to improvement in

the cost of sales ratio.

Overseas orders are expected to rise, especially in China and

South Korea.

Orders for hardware in Japan are expected to increase because

there were cancellations the fiscal year before.

Sales

Operating Income(%)


March 31, 2016

(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

12

1.8 1.8

3.4 3.2

0

2

4

0.0

1.2

2.4

03/2015 03/2016

52.6 58.6

0

30

60

03/2015 03/2016

54.0 55.9

0

30

60

03/2015 03/2016

(%)

Orders

Sales of general industries hardware are predicted to rise due to

increased orders.

Sales of maintenance services for general industries are also

predicted to rise due to increased orders.

Operating income is expected to remain flat, with higher SG&A

expenses offsetting the impact of increased revenues.

Orders of general industries hardware will likely increase as

investment to replace aging equipment is expected.

Orders for maintenance services for general industries will also

increase due to stronger proposal activities

Sales

Operating Income



March 31, 2016

(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

36.7 33.6 27.7 34.5 33.4

100.590.3 91.5

94.9 96.4

56.456.1 58.8

60.086.2

193.8180.1 178.1

189.4

216.0

0

110

220

03/2012 03/2013 03/2014 03/2015 03/2016 Projection

56.449.4 51.8 54.4 57.9

9.3

8.5 8.18.3

6.9

34.8

32.4 31.632.2 31.6

100.5

90.3 91.594.9 96.4

0

50

100

03/2012 03/2013 03/2014 03/2015 03/2016 Projection

13

Maintenance,

etc.

Tool cleaning

Ultrapure water

supply business

Water treatment chemicals

Water treatment facilities (services)

Water treatment facilities (hardware)

154.9157.0146.4 150.4

182.6

In the fiscal year ended March 31, 2015, service business revenue increased due to growth in maintenance services.

In the fiscal year ending March 31, 2016, growth in water treatment chemicals and maintenance services is expected,

and service business revenue is expected to account for 85% of total sales.


in the Water Treatment Facilities Segment

Service

business

revenue

(Billions of Yen)

(Billions of Yen)


March 31, 2016

14

22.5 23.9 27.232.1

37.82.3 2.3

1.8

2.0

3.2

1.4 1.21.3

1.5

22.3

3.0 3.03.3

3.5

3.7

29.3 30.533.6

39.1

66.9

0

35

70

03/2012 03/2013 03/2014 03/2015 03/2016 Projection

Asia N. America

Sales by Region Sales by Overseas Business Segment

Water treatment chemicals Water treatment facilities

In the fiscal year ended March 31, 2015, overseas business sales increased, especially in Asia.

In the fiscal year ending March 31, 2016, European sales and water treatment chemicals sales are

expected to increase considerably due to the contribution of business acquisitions.

The overseas sales ratio will climb to 31%.

17.8 18.5 17.721.8 23.1

11.5 12.0 15.9

17.3

43.8

29.3 30.533.6

39.1

66.9

0

35

70

03/2012 03/2013 03/2014 03/2015 03/2016 Projection

Europe Other

(Billions of Yen) (Billions of Yen)


March 31, 2016

15

Capital Expenditures and Depreciation R&D Expenses

Capital expenditures(ultrapure watersupply business)

Capital expenditures (excl. ultrapure water

supply business)

DepreciationR&D expenses Percentage of net sales

4.5 4.4 5.3

2.5 2.3

2.5

0

1.5

3

0

3

6

03/2014 03/2015 03/2016 Projection

(Billions of Yen) (Billions of Yen) (%)

In the fiscal year ended March 31, 2015, capital

expenditures of the ultrapure water supply business

increased.

In the fiscal year ending March 31, 2016, capital

expenditures of the ultrapure water supply business are

expected to continue increasing sharply.

In the fiscal year ending March 31, 2016, R&D expenses

will rise sharply, reflecting the concentration of efforts on

the development of differentiated products and

technologies.

2.5 2.5 3.5

2.86.0

13.0

5.3

8.5

16.5

14.3 14.4 13.7

0

9

18

03/2014 03/2015 03/2016

Projection


March 31, 2016

16

Basic Dividend Policy

Kurita Water Industries’ basic policy is to provide shareholders with stable dividends.

Setting a payout ratio of 30 to 50% as our target, we will continuously work to increase dividends,

making decisions based on the payout ratios for the most recent five years.

18

22

28

3234

3638

4042

4446

48

0

25

50

03/2005 03/2006 03/2007 03/2008 03/2009 03/2010 03/2011 03/2012 03/2013 03/2014 03/2015 03/2016Projection

+ 4+ 2

+ 2

+ 6

+ 2+ 2

+ 2+ 2

+ 2+ 2

+ 2

(Yen)

+ 4


March 31, 2016

III. Review of Previous Medium-Term Management

Plan “TA-14 (Take Action 2014)”

1.

2.

3.

4.

5.

6.

7.

8.

Operating Performance Targets and Operating Performance Trends

Segment Results

Expansion of Global Business “Overseas Sales”

Expansion of Global Business “Measures and Results”


Creation of New Products and New Services

Improvement of Capital Efficiency

Issues to be Addressed

III. Review of Previous Medium-Term Management Plan “TA-14

(Take Action 2014)”

17

TA14

Fiscal Year to

March 2012

Actual

Fiscal Year to

March 2013

Actual

Fiscal Year to

March 2014

Actual

Fiscal Year to

March 2015

Actual

TA14Fiscal Year to March 2015

Revised Targets

Orders 197.3 186.7 173.5 181.3 210.0

Net Sales 193.8 180.1 178.1 189.4 205.0

Operating Income 29.4 21.0 14.9 19.4 30.0

Ordinary Income 30.4 22.0 16.1 18.9 30.5

Net Income 16.5 11.5 9.4 10.4 18.5

Overseas Sales 29.3 30.5 33.6 39.1 55.0

Overseas Sales

Ratio15.1% 16.9% 18.9% 20.6% 26.8%

Following declines in sales and income for two consecutive years in the fiscal year to March 2013 and the fiscal year to

March 2014, both sales and income increased and operating performance targets were achieved in the fiscal year to

March 2015. However, improvement of profitability still remained a challenge.

In overseas business, a start was made on creating a base in Europe in preparation for dramatic overseas business

expansion through business acquisition.

(Billions of Yen)

18

140.5 121.9

56.7 59.4

197.3 181.3

0

100

200

03/2012 03/2015

16.4

13.1 14.7

8.9

15.2

10.3

5

11

17

03/2012 03/2015

137.3 129.4

56.4 60.0

193.8 189.4

0

100

200

03/2012 03/2015

20.1

11.6

9.3

7.9

29.4

19.4

0

15

30

03/2012 03/2015

Orders Sales



(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

(%)



39.129.3

39.129.3

17.3

21.8

32.1

2.01.5

3.5

2.3

1.43.0

Sales by Region Sales by Overseas Business Segment

Global sales increased through efforts to steadily tap into

water treatment demand in Asia.

The overseas sales ratio climbed to 20.6%.

(Billions of Yen)

03/2012 03/2015 03/2012 03/2015

19

(Billions of Yen)

Asia N. America Europe Other Water treatment chemicals Water treatment facilities

22.5

17.8

11.5



業績

20

Acquisition of water treatment business

in Europe

Receipt of order for ultrapure water

supply business in South Korea

Overview of acquired business

First time to provide ultrapure water

supply service on a large scale to a local

company overseas

Overview of ultrapure water supply business

Acquisition of platform in Europe

Foothold to become global company

Core

products

Water solutions, paper solutions (sizing and wet

strength additives), alumina compounds (The key

products are water treatment, civil additives,

additives for paper process chemicals)

Sales 173 million Euro (24.3 billion yen*)

Employees Approximately 590

* FY2014 results

* FX rate: 1 Euro = 140.4 yen

Note:

Customer New semiconductor plant to be

constructed in South Korea by SK Hynix

Inc. (South Korean)

Timing of

commencement of

water supply

June 2015 (planned)

Business operating

entity

Hansu Technical Service Ltd.

(Kurita Water Industries’ wholly owned

subsidiary in South Korea)



36.7 34.5

100.5 94.9

56.4 60.0

193.8 189.4

0

100

200

03/2012 03/2015

56.4 54.4

9.3 8.3

34.832.2

100.594.9

0

50

100

03/2012 03/2015

21

154.9157.0

Revenues of water treatment chemicals increased, but revenues of maintenance services,

ultrapure water supply business and tool cleaning decreased.

The service business ratio was 81.8%.


Water treatment facilities (services)

Water treatment facilities (hardware)


in the Water Treatment Facilities Segment

(Billions of Yen)

(Billions of Yen)

Maintenance,

etc.

Tool cleaning

Ultrapure water

supply business



New services

New products

K-eco maintenance serviceS.sensing

22

Utilization of sensing

technology to optimize

chemical injection control.

Installation of water

quality sensors, and

delivery of optimal

maintenance based

on data analysis.

Realization of standardization of wastewater

treatment equipment, cost reduction, shorter

delivery times and space saving.

Standard-type wastewater

treatment equipment

Newly developed

multi-functional polymerDevelopment of new polymer material

with high functionality through

enhancement of basic technology.

Visualization and sharing of issues faced by customers

Strengthening of cost competitivenessSuperior products



Investment in ultrapure water supply

business for domestic semiconductor

and liquid crystal display, etc.

Acquisition of European water

treatment business

Repurchased shares in the fiscal year

to March 2013 and the fiscal year to

March 2015.

Dividend increase for the 11th

consecutive fiscal year

Generation of cash Uses of cash

23

Capital

Expenditures

Dividends

M&A

Share

buybacks

Operating

cash flow

For three years from the fiscal year ended March 31,

2013 to the fiscal year ended March 31, 2015

¥80.3 billion ¥79.6 billion

Uses of Cash

Operating cash flow was applied to investment for growth and shareholder returns.

Shareholder

returns

Investment

for growth



24

Improvement of profitability

Strengthening of engineering, procurement and construction management functions by overseas

operating companies in water treatment facilities business

Expansion of line-up of standard-type equipment

Strengthening of competitiveness of core boiler and cooling water treatment chemicals

Promotion of integration of acquired business and business expansion overseas

Business integration and early demonstration of synergies

Expansion of domestic business through demonstration of Group’s comprehensive capabilities

Creation of competitive products and services (business model)



IV. Outline of New Medium-Term Management Plan

“CK-17 (Competitive Kurita 2017)”

1.

2.

3.

4.

5.

6.

7.

Basic Theme, Basic Policy and Priority Measures

Operating Performance Targets

Segment Projections

Cultivation of New Markets

Optimization of Production System and Utilization of Group Network

Creation of Competitive Products and Services

Improvement of Capital Efficiency

IV. Outline of New Medium-Term Management Plan “CK-17

(Competitive Kurita 2017)”

25

Basic Theme

Basic Policy

Competitive human resources,

competitive structures, and competitive products

Priority Measures

Cultivate new

markets

Optimize production

system and utilize

global network

Create competitive

products and

services

Improve capital

efficiency

1 2 3 4

We will conduct a radical review of every operation to provide high added-value

for our customers

26

(Billions of Yen)

Fiscal Year toMarch 2015

Actual

Fiscal Year toMarch 2018Projection

Average growth rate over the 3

years

Net Sales 189.4 235.0 +7.5%

Operating Income 19.4 24.5 +8.0%

Operating Income

Margin10.3% 10.4% ‒

Overseas Sales 39.1 81.3 +27.6%

Overseas Sales Ratio 20.6% 34.6% ‒

Sales will increase sharply due to business acquisition.

A double-digit operating income margin will be maintained.



27

121.9 143.0

59.4

97.0181.3

240.0

0

120

240

03/2015 03/2018

13.1

11.3

8.9 9.8 10.3 10.4

6

10

14

03/2015 03/2018

129.4 138.0

60.097.0

189.4

235.0

0

120

240

03/2015 03/2018

11.6 13.5

7.9

11.019.4

24.5

0

13

26

03/2015 03/2018

Orders Sales



(Billions of Yen)

(Billions of Yen)

(Billions of Yen)

(%)



Low-cost model based on

commodity products

Sales-oriented model based on

differentiated products

High-added-value model based on

total solutions

28

Glo

bal

Lo

ca

l

Low profitability High profitability

BASF

DOW NALCO

Kemira Solenis

Buckman

eka

ECOLAB

NALCO

GE

To become a world-class water treatment chemicals company1

GE



53.121.6

25.4

4.9

17.3

43.8

1.5

3.5 16.9

22.3

3.7

29

03/2015 03/2016 03/2018

(Billions of Yen)

We acquired water treatment chemicals businesses in Europe and will also aim for further business

expansion in North America.

Asia

N. America

1.2

Europe

Other

Asia

Europe

Other

N. America

1.0

Asia

12.0 Europe

Other

N. America

0.3

2 Sales of water treatment chemicals business by overseas region



Germany

Hungary

Slovak

Spain

France

Italy

Poland

Greece

Turkey

SwedenPromotion of

integration of acquired businesses

39.1

30


Water treatment facilities

Brazil

Singapore

Indonesia

Malaysia

GuangzhouTaiwan

Tianjing

Suzhou

South Korea

Vietnam

Shanghai

Thailand

Dalian

Overseas Sales

81.3

03/2015 03/2018

Asia N. America Europe Other

(Billions of Yen)

Optimize functions and roles of production bases and strengthen engineering, procurement and

construction management functions.

Expand sales of products and services utilizing Group network.

Autonomous growth

Japan / Asia

Exploration of M&A

opportunities

N. America

Development of global system with four “poles” including Japan



Europe

Jiangyin

Angang

31

Comprehensive proposal-type business

Reduce total plant costs of existing customers, including equipment of other manufacturers

Expand ultrapure water supply business to new markets (new domestic electronics

manufacturers and overseas electronics manufacturers)

Proposal activities using IT

K-eco maintenance service

S.sensing

Develop compact standardized water treatment equipment and expand applications.

Strengthening of cost competitiveness

Provide original services by demonstrating comprehensive strength1



32

32.230.6

0

20

40

03/2015Actual

03/2018Forecast

* Forecasts involve an element of uncertainty.

+2.0

-7.6

Expiration of contracts

Contracts for

augmentation of

existing plantsAcquisition of new

plant contracts

+4.0

(Billions of Yen)

Investment 6.0

Note:

2 Ultrapure water supply business sales forecast

Investment 12.0



33

Technology integration and development synergies with

Kurita Europe APW GmbH (KEAG)

Reorganization and expansion of core technologies

AnalysisCorrosion prevention

and dispersion

Coagulation and

flocculation

Sterilization and

bacteriostasis

Biological

engineering

Adsorption and

deionization

Membrane separation

and filtrationSurface treatment

3 Strengthening of R&D capability

Development of paper process chemical

technologies

Development of polymer manufacturing

technologiesDevelopment

(1)

Development

(2)



Generation of cash Uses of cash

Investment in ultrapure water supply business at new plants of customers in Japan and overseas, etc.

Aim for average payout ratio of 30-

50% over 5 years

Prioritize investment in business and

also consider share buybacks if there

are any surplus funds.

Explore M&A opportunities in North

America.

34

Capital

Expenditures

Dividends

M&A

Share

buybacks

Operating

cash flow

¥81.0 billion ¥81.0 billion

Uses of Cash (Projections)

Regarding the level of cash, we will endeavor to curb surplus funds upon securing operating funds and

contingency funds.

We will aim to maintain ROE at a level that exceeds cost of shareholders’ equity.

For three years from the fiscal year ended March 31,

2016 to the fiscal year ending March 31, 2018



Reference Material

35

Note: The effect of change in the cost of sales ratio is calculated using the gross profit margin.

(Billions of yen)

14.9

19.4

03/2014 03/2015

+0.9

Effect of change in

cost of sales ratioDecrease in

SG&A expenses

Impact of

increased revenue

+3.5

+0.1

■ U R L■

■MAIL■

http://ir.kurita.co.jp/

[email protected]

Forward-looking Statements

This presentation contains forward-looking statements, business plan projections, and judgments based on

information available to management at the time of writing. Due to the existence of a variety of risk factors

and uncertainties, actual results may differ from those specified or implied by these forward-looking

statements and projections.

kurita water industries ltd. results presentation for the ...€¦ · results presentation for the...

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