Fiscal Year Ending March 2027 First Half Factors Affecting Changes in Business Profit and Full-Year Outlook Disclosure (Earnings Supplementary Materials)

Overview of Performance

Kurita Water Industries Ltd. released earnings supplementary materials for the first half of the fiscal year ending March 2027. The continuing businesses' revenue mix comprised both Electronics and General Water Treatment segments, and the first half saw notable revenue growth in continuing operations alongside increased personnel expenses. The full-year business profit is expected to be revised downward due to a worsening cost ratio and higher selling, general and administrative expenses. The overseas precision cleaning business, treated as a discontinued operation, is disclosed on a continuing-operation basis following the completion of the share transfer.

Outlook and Impact on Shareholders

Excluding foreign exchange effects, the variance between first-half results and the previous forecast shows revenue growth, while additional costs for U.S. equipment projects and higher personnel expenses are negative factors. For the full year, improvement in cost ratios and restraint of selling, general and administrative expenses will be key, and an improved business mix may contribute via expansion of recurring-contract services.