Management Briefing
Kurita Water Industries Ltd.
(Securities code: 6370)
December 2017
Table of Contents
Policy for the Final Year of Competitive Kurita 2017 (CK-17) Plan
Business organizational reform
Expansion of the overseas business foundations
Increase Value Offered
Improvement of Capital Efficiency
Sales Plan for the Ultrapure Water Supply Business
Major Contracts in the Ultrapure Water Supply Business
Enhancing CSR Activities
1
2
3
4
5
6
7
8
1. Policy for the Final Year of Competitive Kurita 2017 (CK-17) Plan
1
Improve customer intimacy by providing the best customer solutions
Reform business process
and promote comprehensive
solutions
Invest in focused growth
areas and reorganization of
business
Enhance competitive
advantage and reduce risk by stepping up
CSR activities
Basic policy
2. Business organizational reform
2
Water Treatment Facilities
Water Treatment Chemicals
Domestic Overseas
Ultrapure water supply
Maintenance Services
EPC
Overseas
Domestic
Overseas
Water Treatment Chemicals
Water Treatment Facilities
Water Treatment Chemicals
Maintenance Services
Ultrapure water supply
EPC
~ March, 2017 April, 2017 ~
3. Expansion of the overseas business foundations
3
Expanding the water treatment business using M&A
Seeking expansion in North America
Decided to acquire the paper and pulp process treatment chemicals production base of Akzo Nobel in France.
Expanding the production system in Europe
Aims to expand KEG’s paper and pulp process treatment chemicals business and improve profitability.
Developing the business base
Close cooperation within the Group
Use of alliances and M&A
Bolster business in South Korea
Turned equity method affiliate Hansu Co., Ltd. into a consolidated subsidiary
4. Increase Value Offered
4
IoT
AI
Big data analysis
Contract model
New technologies & new tools
Energy saving
Water conservation
Waste product reduction
Stable utility operations
Existing Know-How Provide value to customers and society
Increase efficiency of
manufacturing processes
Recycle and reuse of waste
products
Smartfactories
Water risk management
5. Improvement of Capital Efficiency
5
Source of funds Use of funds(if small amount)
Use of funds(if large amount)
Proactively invest funds in promising businesses and shrink assets. Consider introducing capital efficiency indicators.
Operatingcash flow
shrink assets Share buybacks
M&A
Capitalexpenditures
Dividends
M&A
Capitalexpenditures
Dividends
Utilize debt
6. Sales Plan for the Ultrapure Water Supply Business
6
28.825.7 25.7 26.8
0
17
34
03/2017 03/2018Projection
- 0.8+ 1.1 - 2.0- 1.4 + 1.1
First half Second half
(Billions of Yen)
Expiration of contracts,
etc.
New construction or addition of
facilities
Revision to contracts New
construction or addition of
facilities
Expiration of contracts,
etc.
7. Major Contracts in the Ultrapure Water Supply Business
7
07/3 08/3 09/3 10/3 11/3 12/3 13/306/3 14/305/304/3 16/315/3 17/3 18/3 19/3 20/3 21/3 22/3 23/303/3
Original contract Renewal or extension
* Key contracts are shown above. This does not cover all contracts.
(Overseas)
(Domestic)
(Domestic)
(Domestic)
(Domestic)
(Domestic)
(Domestic)
(Domestic)
(Domestic)
(Domestic)
(Domestic)
(Overseas)
(Domestic)
(Domestic)
(Domestic)
8. Enhancing CSR Activities
8
CSR for value creation
CSR as a management foundation
Aiming to increase medium- to long-term corporate value and gain a competitive advantage
Resolve societal problems through business activities
Address societal demands
Create the overall framework for CSR and re-establish targets
Maximize CSV
Minimize latent risks
■ U R L ■
■MAIL■
http://ir.kurita.co.jp/en/
Forward-looking StatementsThis 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.