*This news letter is an English translation of LIXIL Corporation’s news letter issued on April 30, 2013 in Japan.

April 30, 2013
LIXIL Corporation

Ongoing Water Environmental Awareness
Program Being Provided in Cooperation withInternational NPOs
- Learned the Importance of Water with Local Children March 9 - 15, 2013

Environmental Awareness Programin Vietnam 2013
Hoa Binh, Fue, Ho Chi Minh

Since 2007, LIXIL Corporation (Headquarters: Chiyoda-ward in Tokyo, President: Yoshiaki Fujimori)and its local subsidiary LIXIL INAX VIETNAM Corporation (“LIXIL VIETNAM”) have been conducting
the “Water Environmental Awareness Program” for children in the Socialist Republic of Vietnam(“Vietnam”). At present, we are promoting the program in collaboration with two international NPOs,
namely Bridge Asia Japan (“BAJ”) and Seed to Table (“STT”).
Amid its recent economic growth, Vietnam has been facing a range of problems including abroadening gap between the wealthy and the poor, environmental pollution, sanitation problems,children’s rights, etc.

Unfortunately, such problems are not fully dealt with in their current socialsystems. Meanwhile, LIXIL (former INAX) has established its current position in the market in tandemwith the Vietnamese economic development. To contribute to the local community, LIXIL has been
providing unique environmental classes featuring “water” by partnering with well-establishedinternational NPOs since 2007.

LIXIL aims to offer what is really necessary for the children ofVietnam who will become future leaders of the country. We are not merely trying to give financial aid,
but consistently proposing educational programs with consideration to the social conditions andcircumstances in Vietnam. For example, we have created an original textbook “Let us think about andstudy water” and dispatched our employees as instructors.
This time, we carried out the environmental awareness program in Hoa Binh Province (in thenorthwest of Vietnam), and Hue (in central Vietnam) and made a visit to a tile factory in the south ofVietnam to deepen exchanges with local children and the international NPOs.

The following is areport of the activities we conducted in the period from March 9 (Sat.) through March 15 (Fri.) (7 days)in Vietnam together with the staff from the NGOs BAJ and STT.

Table of Contents■ Activities with STT: Environmental classes featuring water in Dich GiaoVillage (March 10)■ Activities with BAJ:
- Farm village tour (planned by local residents) in Thuy Bieu District(March 12)- Visit to a farm house using a biogas digester in Thuy Xuan District(March 13)- Activity report by children in Ho Chi Minhand factory tour at LIXIL SAIGON (March 14)■ Summary of the itinerary in Hoa Binh, Hue, and Ho Chi Minh
■ LIXIL Business in Vietnam■ Principles and History of Environmental Awareness Programs in Vietnam

■ Activities with STT: Environmental classes featuring water in Dich Giao Village(March 10)
Dich Giao Village is located in Tan Lac, Hoa Binh Province.

Hoa Binh Province is a mountainous

area located in northwest of Vietnam. Although it is just about 80 km away from Hanoi, it is a home toseveral minority races who have inherited original languages and traditional customs.
about 3,600 people (about 840 households) live in 14 distinct hamlets.
second time for us to conduct classes in this village.

In Dich Giao,

Following last year, this is theThis time, we had total 67 participants, including

school children and youth association members who were not able to attend the last time.
In the morning, a class was held using our original
textbook “Let us think about and study water”.

First, wetaught basic knowledge of water, such as the fact that
only a small portion of water on the earth can be used fordaily life, and that water is circulating in the earth’secosystem. Then, we explained harmful effects of waterpollution and unsanitary environment on human health,trying to make the students understand why clean water
is important.

We also introduced several ways toimprove the situation in their daily life, includingChildren eagerly listening to classes

separation of garbage and composting.
In the afternoon, a quality test and a filtration experiment were conducted using samples of well
water and river water that had been collected in advance by each hamlet.

Mr. Son of LIXIL VIETNAM,

who has been engaged in this activity since 2007, explained the procedures.

First, the participants

made “filtering equipment” by putting stones, sand, and soil into plastic bottles, and conducted anexperiment.

The children showed great interest as they saw clean transparent water coming out of

the hand-made equipment.

Then, they conducted a water quality test using “Pack Test”, a kit whichindicates a degree of water contamination by changing colors. The test results show that the watercollected downstream is more contaminated than that collected upstream, indicating the impact ofdrain water.

LIXIL will provide test kits and support continuous fixed-point observation in each hamlet.

This year, a total number of the participants in the programs (conducted jointly by LIXIL and STT) in
Hoa Binh Province exceeded 500.

Due to increasing population and rapidly modernizing lifestyles,

the area faces serious issues such as garbage disposal and water source contamination.

Throughthis program, however, more and more residents have a correct understanding of the environment.
LIXIL will continue support for these people who are trying to solve the problems and protect theirhealth and the natural environment.

2Children conducting “Pack Test”

Ms. Ino of STT (Left) and Mr. Son of LIXIL
VIETNAM explaining the filtration experiment(Right)■ Activities with BAJ:
Hue is located in the center of Vietnam and attracts a lot of domestic and foreign tourists, as itsbuildings and structures have been registered as the World Heritage.
suburbs of Hue have been prosperous in agriculture.

In addition to the tourism, theBAJ has been supporting organic farming andcommunity establishment in rural areas while working on improvement of the living environment inpoor neighborhoods.
Among the local communities, BAJ has created a good relationship with people in the Thuy Bieu
District through constant activities.

This year, we visited Thuy Bieu District as well as its neighboring

Thuy Xuan District to learn their various activities to vitalize the communities while respecting theirtraditions.

Also, we held a factory tour by inviting children who live in Ho Chi Minh.

- Farm village tour (planned by local residents) in Thuy Bieu District (March 12)
BAJ is promoting a farm village experience program with a view to preserving local traditional culture
and nature as well as conveying its attractions.

The program aims to let tourists know about localspecialties and traditional lifestyle of local farmers. At the same time it also aims to make local
residents themselves rediscover attractiveness of their community, and feel proud of their traditions
and natural environment.
This time, we participated in a “farm village tour” with BAJ staff, which was planned by local residentsin Thuy Bieu District.

In this area, BAJ has conducted an eco-tour before, but this is the first time thatthe local people planned the tour by themselves.

The residents played a central role in all thearrangements, such as searching for attractions, deciding the tour course, and making appointmentswith farmers to visit.
During the tour, we visited farmers who grow Zabon (a kind of oranges) and gingers, and went to theworld heritage site and other local sights.

The Zabon farmers told the importance of farming methods

without use of pesticide; instead of using chemicals, they use the power of nature, such as fertile soil

3brought by a flooded river. At each point, we saw local residents introducing their lifestyles andcultures proudly, realizing and conveying attractiveness of their community. We are sure that they aremaking progress steadily.

Dien Voi Re, the world heritage site wevisited during the tour

Farmer explaining how to grow Zabon

After the tour, we enjoyed the dishes using locally-produced vegetables and pork, together with thepeople in the community.

After the dinner, LIXIL staff again explained the importance of clean waterand natural environment, and all the participants agreed to it.
On that day, local TV network in Hue accompanied the tour. We expect that such coverage willfurther increase awareness of environmental issues in the region.

LIXIL staff interviewed by local TV

Dining after the tour

- Visit to a farm house using a biogas digester in Thuy Xuan District (March 13)
In Thuy Xuan District located next to Thuy Bieu District, more and more people have moved inrecently.

As neighboring houses are getting closer, bad odor from animal feces and rivercontamination are becoming serious issues.
a “biogas digester”.

To solve these problems, BAJ is promoting installation of

A “biogas digester” is a piece of equipment which produces methane gas bydecomposition of pigs’ droppings and uses the gas as energy for a water heater or a kitchen stove ateach household.

It reduces bad odor by preventing feces and urine from flowing into rivers orneighboring areas. Also, the compost after decomposition can be reused as fertilizer.

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(Upper left) Top part of fermenter(Lower left) Fermenter is large
enough for an adult to get in(Picture taken in the construction
period)(Right) Mechanism of “biogas digester” which is promoted by BAJ: Turnanimal feces and urine into gas in a fermenter, which is used as energy for a
cooking stove or a water heaterThis time, we visited a family which uses a biogas digester, and interviewed them about changes
after the installation.

According to them, they used to spend a lot of time and efforts to gather

firewood which they used as fuel.

Now that they do not need to do such labor, they are able toincrease the number of livestock, plant a wider variety of products, and expand the cultivated acreage.
In addition, they now spend their time to produce processed foods using local ingredients.

Theystarted to sell honey, herb teas, and fruit wines to tourists and some health-conscious Hue residents.
In cooperation with BAJ, we would like to support activities to protect the environment and improve
the living standards of local people in an ecological way.

- Activity report by children in Ho Chi Minh and factory tour at LIXIL SAIGON(March 14)
On March 14, the sixth day of our visit, we held a factory tour at LIXIL INAX SAIGON ManufacturingCo., Ltd. (“LIXIL SAIGON”) which manufactures tiles by inviting 120 Ngoi Sao junior high school
students in Ho Chi Minh as well as 5 BAJIKO Class children（BAJIKO Class is the name of a classroom run by BAJ forchildren

tolearnenvironmental issues.

science,manualtraining,andFollowing the environmental class

two years ago, students of Ngoi Sao have continued
environmental activities voluntarily.

This time, prior to thefactory tour, the students made a presentation to report on
their activities.

Local employees of LIXIL SAIGON made5Children making presentationcomments and asked some questions about the presentation.
During the plant tour, LIXIL SAIGON’s local staff introduced each process and responded to variousquestions such as “What is the product lifetime?” and “What is the most difficult thing in the whole
production process?”

Through such communication, the staff got more motivated toward their daily

work and more committed to addressing environmental issues.

Mr. Hatano, VP of LIXIL SAIGON

stressed, “LIXIL SAIGON uses soil and energy in Vietnam, so we must do whatever we can do toprotect the country’s environment.”
After the tour, an environmental class was held to lecture about water contamination, which
introduced how to keep water clean and some pollution episodes in Japan.

It was a great opportunity

for Vietnamese people to know Japan’s past experiences, as they are facing similar problems in theirrapid economic growth.

The event was covered by local newspaper.

Through this year’s activities, we strongly feel that local people including children are more aware ofenvironmental issues than before, and that our efforts so far are bearing fruit gradually but steadily inVietnam. We have also noticed some problems specific to each area.

Going forward, we will further

promote our activities based on local needs to raise environmental awareness of local people and help
them act on their own.

In this way, we will strive to contribute to the Vietnamese society.

Local employees of LIXIL SAIGON explaining
the manufacturing process

VP Hatano (Right) interviewed by a local
newspaper

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■ Summary of the itinerary in Hoa Binh, Hue, and Ho Chi Minh
March 9: Arrival of LIXIL staff in Hanoi, Vietnam
March 10: Environmental class and hands-on training in Dich Giao Village (in Hoa Binh Province)
Move to Hanoi
March 11: Activity report presentation at LIXIL VIETNAM
Move to Hue
March 12: Farm village tour and visit to packaging center of farm-fresh vegetables in Thuy BieuDistrict, Hue
March 13: Visit to farmers and processed foods store in Thuy Xuan District, Hue
Move to Ho Chi Minh
March 14: Activity report presentation by Ngoi Sao school children and BAJIKO Class children,
factory tour at LIXIL SAIGON
Numbers of participants in environmental education programs
Environmental class and hands-on training in Dich Giao Village in Hoa Binh Province
Farm village tour in Thuy Bieu District, HueVolunteer activities in Thuy Bieu District, Hue
Factory tour in Hochimin (Ngoi Sao school and BAJIKO Class): 67: 34
: 18
: 125

Accompanying staff from BAJ:
Bridge Asia Japan Vietnam Office: Huynh Hue Tue
Emiko Katayama
Tokyo Head Office:Shoko Ito
Accompanying staff from STT:
Representative of Seed to Table, Mayu Ino
Vietnam Office:
Doan Thi Toan
Instructors from LIXIL:
Aki Ashida and Asako Tadenuma, CSR and Environmental Management Division
Instructors from LIXIL VIETNAM:
Khuat Duy Son, General Affairs Division■ Bridge Asia Japan (BAJ)

http://www.baj-npo.org/

BAJ is a Japanese non-profit organization founded in 1993. As its name indicates, BAJ works as abridge between Asia and Japan, promoting international cooperation.

In Vietnam, this NGO provides

assistance mainly for children in low-income areas. As for environmental education, BAJ began
preparations in 2002 and started the program for children in Hue in 2004.

As part of their activities,

BAJ collects valuable resource such as plastics, and installs wastewater treatment facilities to prevent
domestic wastewater from flowing into the river.

Thanks to such practical supports by BAJ, more andmore local children are thinking and acting on their own.
In collaboration with BAJ, LIXIL has been giving environmental classes to children in Ho Chi Minh andHue since 2007.

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■ Seed to Table (STT)

http://seed-to-table.org/

STT is a Japanese non-profit organization founded in July 2009.

In close cooperation with

Vietnamese people, STT aims to protect indigenous seeds, nature and culture, while developing an
economic basis to improve food security and increase income of the Vietnamese people so that they
can live happily with their families and friends.

In addition to inheriting traditional farming methods

and other wisdom of living, STT is providing a place for meeting and discussing to foster next
generation leaders.

Hoa Binh Province, which is located in the northwest of Vietnam, is the base of

STT activities to improve Vietnamese food security and livelihoods.
LIXIL and STT started providing environmental classes in Nam Son Village in 2010, and have
expanded the joint activity to neighboring villages such as Phu Vinh and Dich Giao.

■ LIXIL Business in Vietnam
In the LIXIL Group, American Standard is the first sanitary ware brand which entered the Vietnamesemarket. American Standard started its production and sales activities in Ho Chi Minh in 1996,
followed by INAX in Hanoi in 1997. With these two brands, LIXIL currently has the No.1 market sharein the Vietnamese sanitary ware market.
a new factory.

In 2010, we began to sell fittings, as we started operation ofThen, in June 2012, we also entered into the electric water heater market which seems

to be promising.
Moreover, in the area of building materials, LIXIL has been engaged in manufacturing and sales ofdry exterior tiles, mainly mosaic tiles, since 2008.
operation in fall, 2013.

The factory for residential sashes will begin its

From now on as well, we are going to expand our businesses in Vietnam.

■ Principles and History of Environmental Awareness Program in Vietnam
In 2006, LIXIL (former INAX) began searching for partners who not only provide funds and supplies,
but really care for local people’s happiness and future.
activities with two well-established NPOs.

The following year, we actually began

Utilizing our extensive knowledge and know-how in thesanitary ware business, we support environmental educational programs featuring “water”, with an aim
to provide what is truly necessary for the children of Vietnam who lead the country in the future.

The

programs go beyond merely telling children not to throw trash in rivers because they will become
polluted, but are intended to make children understand what causes river pollution and think bythemselves what they can do to prevent it.

Based on this principle, LIXIL will continue such practicaleducational programs considering local circumstances, in collaboration with BAJ, STT, and LIXILVIETNAM.

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Record of major activities
2007: Start of activities with BAJ and Save the Children Japan (“SCJ”) (3-year contract)
Creation of original educational textbook (April)*1
Training of INAX VIETNAM Co., Ltd. staff to become instructors; briefing to government and educationalorganizations
Commencement of environmental educational programs targeting educators and children in Yen Bai, thenorth of Hanoi, and Hue (June through August)
2008: Children from Yen Bai and Hue invited to the Eco-products International Fair (Hanoi)
Factory tour at INAX VIETNAM Co., Ltd. (March)
Environmental educational programs in Yen Bai and Hue (June)
Environmental educational programs in Yen Bai, Hue, Ho Chi Minh, and Qui Nhon (December)
2009: Environmental educational programs in Yen Bai, Hue, and Ho Chi Minh (July)
2010: Start of activities with BAJ and STT
Environmental educational programs in Hue and Qui Nhon
*2
Factory tour at INAX VIETNAM TILE Co., Ltd. (January)
Environmental educational programs in Nam Son Village, Hoa Binh Province, Hue, and Ho Chi Minh (July)
2011: Environmental educational programs in Nam Son Village, Hoa Binh Province, Hue, and Ho Chi Minh(January)
Environmental educational programs in Phu Vinh Village, Hoa Binh Province, Hue, and Ho Chi Minh
Activity report by Nam Son Village residents, factory tour at INAX VIETNAM Co., Ltd. (July)
2012: Environmental educational programs in Phu Vinh Village, Hoa Binh Province, and Hue
Opinion exchanges in Dich Giao Village, Hoa Binh Province (February)
Environmental educational programs in Dich Giao Village, Hoa Binh Province, and Hue
Activity report by Phu Vinh Village residents, factory tour at LIXIL INAX VIETNAM Corporation (July)*1 Current LIXIL INAX VIETNAM Corporation*2 Current LIXIL INAX Saigon Manufacturing Co., Ltd.

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