Kurita Water Industries : Financial Results Presentation (329KB)

Kurita Water Industries Ltd.

Results Presentation for the First Quarter

of the Fiscal Year Ending March 31, 2024

(Securities code: 6370)

August 9, 2023

Overview of Results

(Billions of Yen)

1Q of FY ended

03/2023

1Q of FY ending

03/2024

YoY Change

1H

Forecast

YoY Change

Orders		100.1		98.4		(1.7%)	175.0	(12.7%)
Net Sales		74.7		90.5		+ 21.3%	181.0	+12.6%
Business Profit		6.3		7.5		+ 18.0%	16.2	(2.5%)
Net of Other Income and Expenses	0.1		0.7		－	(0.5)	－
Operating Profit		6.4		8.1		＋ 27.5%	15.7	(4.0%)
Profit Before Tax		7.3		8.1		＋ 10.9%	15.5	(11.5%)
Profit Attributable to Owners of Parent	4.9		5.7		＋ 17.1%	10.5	(15.2%)
Basic Earnings per Share (yen)	43.29		50.67		＋ 17.0％	93.42	(15.2%)
	USD (yen)	129.6		137.4
Foreign Exchange
EUR (yen)	138.1		149.5
Rate
	CNY (yen)	19.6		19.6

• Net of other income and expenses increased due to an increase in foreign exchange gains and a decrease in other operating expenses.
• In the same period of the previous fiscal year, the gain on derivative transactions (1.1 billion yen) accompanying the acquisition of additional shares in Pentagon Technologies Group, Inc. was posted as financial income that was included in profit before tax.

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Results by Segment

	1Q of FY	1Q of FY		1H
(Billions of Yen)	ended	ending	YoY Change
Forecast
	03/2023	03/2024

			Orders	100.1	98.4	(1.7)	175.0
			Net Sales	74.7	90.5	+ 15.9	181.0
	Total		Business Profit	6.3	7.5	+ 1.1	16.2
			Business Profit	8.5%	8.2%	(0.2pp)	9.0%
			Margin
			Operating Profit	6.4	8.1	+ 1.8	15.7
			Orders	43.6	42.0	(1.5)	68.0
			Net Sales	30.9	43.2	+ 12.3	81.0
	Electronics	Business Profit	4.3	4.4	+ 0.1	7.4
	Industry
		Business Profit	13.9%	10.1%	(3.8pp)	9.1%
			Margin
			Operating Profit	4.3	4.5	+ 0.2	7.4
			Orders	56.5	56.4	(0.2)	107.0
			Net Sales	43.7	47.3	+ 3.6	100.0
	General	Business Profit	2.0	3.1	+ 1.1	8.8
	Industry
		Business Profit	4.6％	6.5％	+ 1.9pp	8.8%
			Margin
			Operating Profit	2.1	3.6	+ 1.5	8.3

Electronics Industry

• Orders declined mainly due to the decrease in precision tool cleaning and maintenance.
• Net sales increased mainly due to the construction progress of facilities orders already received.
• Business profit increased slightly due to a deteriorating cost of sales ratio with lower service business composition and the increase of SG&A expenses, despite the sales increase.

General Industry

• Orders were almost unchanged from 1Q of the previous fiscal year, while net sales increased due to progress in construction of facilities and maintenance projects.
• Business profit increased, with the effects of higher sales and an improved cost of sales ratio more than offsetting the increase in SG&A expenses.

2

Factors in Change in Business Profit (YoY Change)

(Billions of Yen)

12

10

Impact of

increased sales

+5.0

Worsening in the cost of sales ratio

(1.9)		Increase in
	SG&A expenses
	(2.0)

8

6

4

2

6.3

1Q of FY

ended

03/2023

Results

• Increased sales in both Electronics Industry and General Industry
• Impact of foreign exchange rate

• In Electronics Industry, the product mix worsened due to large-scale facilities project
• In General Industry, cost of sales ratio improved due to countermeasures to the soaring raw material prices in the chemicals business.

• Impact of foreign exchange rate
• Increase in personnel expenses and sales expenses
• Increase in R&D expenses

7.5

1Q of FY

ending

03/2024

Results

0

YoY change : +1.1

[Impact of foreign exchange rate +0.1 included]

3

Electronics Industry Segment

(Billions of Yen)	1Q of FY ended	1Q of FY ending	YoY Change	1H
03/2023	03/2024	Forecast

Orders	43.6	42.0	(1.5)	68.0
Facilities	15.1	14.9	(0.1)	18.1
Recurring Contract-	10.0	11.3	+ 1.3	22.4
Based Services
Services	18.5	15,9	(2.7)	27.5
Chemicals	2.7	2.5	(0.2)	5.4
Precision Tool	7.0	5.6	(1.3)	12.8
Cleaning
Maintenance	8.9	7.7	(1.2)	9.3
Net Sales	30.9	43.2	+ 12.3	81.0
Facilities	8.2	19.5	+ 11.3	33.4
Recurring Contract-	9.9	11.2	+ 1.3	22.6
Based Services
Services	12.8	12.6	(0.2)	25.0
Chemicals	2.7	2.5	(0.2)	5.4
Precision Tool	6.9	5.7	(1.2)	12.8
Cleaning
Maintenance	3.2	4.3	+ 1.1	6.8

• Orders for facilities remained at a high level on par with the same period of the previous fiscal year, while net sales increased due to the posting of sales of ordered projects mainly in Japan and China.
• Recurring contract-based services increased due to an increase in water supply business.
• Both orders and net sales in precision tool cleaning decreased due to reflecting the impact of operations in customers' plants.
• Orders for maintenance decreased as a reaction to the increase in orders in the previous fiscal year mainly due to some frontloaded orders. Net sales increased due to the growth both in Japan and overseas.

Factors in Change (Billions of Yen)

Organic Change	+ 12.0
Effect of Foreign Exchange Rate	+ 0.3

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