Medium-term Management Plan

Outline of New Medium-Term Management Plan
“CK-17 (Competitive Kurita 2017)”

Basic Theme

Basic Policy

Fundamentally review all types of work to
provide high added value to customers

Operating Performance Targets

Sales will increase sharply due to business acquisition.
A double-digit operating income margin will be maintained.

Billions of Yen

FYE
March 2015
Actual
FYE
March 2018
Projection
Average growth
rate over the
3 years
Net Sales 1,894 2,350 +7.5%
Operating Income 194 245 +8.0%
Operating Income
Margin
10.3% 10.4%
Overseas Sales 391 813 +27.6%
Overseas Sales Ratio 20.6% 34.6%

Priority Measures

Cultivation of New Markets

We acquired water treatment chemicals businesses in Europe and will also aim for further business expansion in North America.

Sales of water treatment chemicals business
by overseas region (Originally Planned)

Optimization of Production System and Utilization of Group Network

Optimize functions and roles of production bases and strengthen engineering, procurement and construction management functions. Expand sales of products and services utilizing Group network.

Development of global system with
four “poles” including Japan

Overseas Sales

Creation of Competitive Products and Services

1.Provide original services by demonstrating all-round strength

Proposal activities using IT

K-eco Maintenance

An appropriate maintenance service based on the actual operation status of facilities is achieved by monitoring on a real-time basis the operation status of the water treatment facilities, which constantly varies in accordance with the operation status of the factory and the fluctuation of the quality and amount of water, and analyzing the monitoring results together with the water quality data obtained based on the analysis at a laboratory.

S.sensing™

The water quality and the amount of chemicals injected in the facilities where water treatment chemicals are used are monitored on a real-time basis to control and optimize chemical injection in accordance with changes in water quality. Furthermore, the measurement data and control results can always be confirmed over the Internet.

A Comprehensive Solutions Business

Providing solutions for cutting costs across all factory operations, including other companies' facilities owned by existing customers

By combining its water treatment chemicals, water treatment facilities, and maintenance technologies and know-how, the Kurita Group is helping customers cut costs by conserving water and energy throughout all factory operations.

Expanding the ultrapure water supply business into new markets

Having built up the ultrapure water supply business by focusing on customers in Japan's LCD and semiconductor industries, the Kurita Group is expanding into new areas of the country's electronics industry while taking the business to customers in electronics industries worldwide.

Strengthening Cost Competitiveness

Developing standardized models of water treatment facilities and expanding their applications

The Kurita Group is working to enhance cost competitiveness by developing standardized water treatment facilities, and at the same time, establishing a new business model for increasing added value and broadening possibilities for customers to use its equippment.

2.Strengthening of R&D capability

Reorganization and expansion of basic technologies

Core technology focus areas

Kurita focuses on the eight technology areas listed below, which comprise the technological foundation for the Group’s products and systems.

Synergies of merger and development of technologies with Kurita Europe APW GmbH (KEAG)

Kurita × KEAG

In addition, Kurita Europe APW GmbH (KEAG), which was established after Kurita acquired businesses in Europe, holds extensive know-how in such fields as paper process chemicals and polymer synthesis. Together with these, Kurita intends to maximize its strengths in comprehensive water treatment technologies to generate development synergies and accelerate development of products targeted at overseas markets.

  • Paper processing chemical technology
  • Polymer manufacturing technology

KEAG R&D facilities

Improvement of Capital Effciency

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.

Uses of Cash (Projections)