Kurita Europe

The alumina compounds business of Kurita Europe GmbH is a business which Kurita acquired with a water solutions business and a paper solutions business from BK Giulini GmbH in Germany and its affiliate in 2015. However, it is not a core business of the Kurita Group. Believing that selling this business will improve its future profitability, the Group has been examining the possibility of concluding a business transfer agreement and has recently reached an agreement with LIVIA. With respect to the impact of this transfer on Kurita's consolidated financial results, Kurita has posted the amount of estimated loss of 2,869 million yen associated with this transfer as an extraordinary loss (provision for loss on transfer of business) in its financial results for the first quarter of the fiscal year ending March 31, 2019. Kurita will keep its consolidated results forecasts for the fiscal year ending March 31, 2019 unchanged because the posting of a gain on the sale of investment securities is expected in or after the second quarter of the current fiscal year, as Kurita is currently proceeding with a review of its cross-shareholdings.