Corporate Report 2023

Corporate Philosophy Structure

KITZ’ Statement of Corporate Mission

KITZ’
Statement ofCorporate Mission

We strive to build a robust global
environment and sustainable future bysupporting societal infrastructure
through our advancements in fluid
control technologies and materials.

Beyond New Heights 2030
Change the ‘Flow’
Long-termManagement Vision

Action Guide

Do it
Action Guide

Way■ Do it True
■ Do it Now■ Do it New

Please visit the website for more information

Reflecting on the Publication of Corporate Report 2023
KITZ has been publishing an integrated report (Corporate Report) since2016. In addition to management strategy and financial information, thereport integrates ESG and other non-financial information in a comprehensive and systematic fashion, and is compiled as a communication
tool to promote understanding of the KITZ Group, including its growthpotential.
Corporate Report 2023 is made up of details on the KITZ Group’s value
creation in the short, medium and long term based on the unique storyof KITZ centering on the Long-term Management Vision “Beyond New
Heights 2030 - Change the Flow” and the first Medium-termManagement Plan 2024 (FY2022-2024), which were announced in
February 2022.
In compiling this report, we made reference to the Integrated
Reporting Framework presented by the Value Reporting Foundation (VRF)
and Guidance for Collaborative Value Creation announced by the Ministryof Economy, Trade and Industry of Japan. Related departments haveengaged in cooperative efforts spanning the company to compile thisreport to confirm the validity of the compilation process and the1

information described herein.
KITZ will make use of this report as a tool for engaging in dialogue
with all manner of stakeholders, including shareholders and investors,
and will endeavor to further enhance our corporate value. In addition, toensure management transparency and give
readers insight into improvements to corporate value through sustainable growth andinitiatives aimed at solving social issues, we will
also make timely and appropriate disclosuresoutside this report using tools including our
website, securities reports, shareholder notices
and environmental report digests.

Toshiyuki Murasawa
Director, Managing Executive Officer
Division Manager, Corporate Planning Division

Contents
Value Creation Story
03

KITZ Group by Numbers

05

Message from the President

Sustainability
11

Special Feature: Business Transformation for“Beyond New Heights”

13

Growth Trajectory

15

Value Creation Process

Growth Strategies
17

Business Summary of the KITZ Group19

Valve Manufacturing Business

35

Message from Director in Charge of Sustainability

38

Environment

42

Social45

Diverse Human Resources in the KITZ Group47

Social Contribution Activities

49

Stakeholder Engagement

50

Governance

55

Board of Directors, Corporate Auditors andExecutive Officers
Messages from Outside Directors

19

Message from Unit General Manager, Flow
Control Business Unit

61

21

KITZ Group + Water

23

KITZ Group + Energy

Data Section

25

Research and Development System CreatingHigh Added Value

27

Production Systems That Assure High-Quality
Products

29

Extensive and Strong Sales Network

30

KITZ—A Reliable Brand

31

Brass Bar Manufacturing Business33

Message from the CFO

63

Financial and Non-Financial Data

67

Group Network

69

Corporate Data / Stock Information

70

Information

NotationIn this report, “Long-term Management Vision" will refer to the “Long-term Management Vision Beyond New Heights 2030 - Change the Flow,” which
was announced on February 10, 2022, and “first Medium-term Management Plan” or “Medium-term Management Plan” will refer to the first Mediumterm Management Plan 2024 (FY2022-2024)” that was announced on the same day.

Cautionary Note Regarding Forward-Looking Statements
This report contains forward-looking statements concerning future plans, measures and other matters that the Company believes are reasonableassumptions based on information that is currently available. These statements contain a number of risks and uncertainties. Therefore, actual results
may differ materially from our expectations due to various reasons.

2

Value Creation Story

KITZ Group by Numbers(as of December 31, 2022)● Payout Ratio● Net Sales

34.6 ¥159.9%

billion● Dividends per Share● Operating Income

33

¥

11.0

¥

Financialbillion

12.0

10.0
● ROE

● Ordinary Income

¥

%

● BPS

¥1,002.69● Net Income Attributable to Owners

8.5

of the Parent

● EPS

95.35

¥

3

billion¥billion1,944

Non-Financial

Male:
Female:35.3%

Number of New Graduate Hires

Male:

Total:

47
13
60

Male:
Female:Total:% of Female Managers

•

3.4

35
4
39

Data Section

Female:Number of Mid-career Hires

Sustainability

Total:

3,843
1,509
5,352

% of Male Employees Taking Childcare Leave

Growth Strategies

Number of Employees (Consolidated)

hours

Value Creation Story

Total Working Hours

CO2 Reduction Rate*1

CO2%

Non-consolidated basis, excluding number of employees and CO2 reduction rate.
*1 Compared to FY2013

66.2

%

4

Message from the President

We will aim to achieve our Longterm Management Vision withproactive management and theunited efforts of all employees.
Makoto Kohno
President and CEO

5

Achieving Record Net Sales under the Difficult
Environment of the Fiscal Year under Review (FY2022)

Management Plan for the Current Fiscal Year (FY2023)
in Anticipation of the Medium and Long Term

Sustainability

We advocate ROIC × ESG Management, placing the improvement of return on invested capital over the medium to longterm as the cornerstone of our sustainability management,
which aims to achieve improved corporate value in tandemwith higher social value. We aim to achieve our targets by setting ROE for our stakeholders and ROIC internally as our key
performance indicators (KPIs).
Net sales in FY2022 even managed to exceed our numerical targets for FY2024, the final year of our first Medium-termManagement Plan.
In response, we set our numerical targets for FY2023 toGrowth Strategies

It has now been two years since I was appointed President
and CEO of KITZ Corporation. Over this time, various events
that have shaken the global economy have played out, including the global COVID-19 pandemic and intensifying conflict
between the U.S. and China.
Under these circumstances, our business environment
also underwent rapid change, requiring us to respond withurgency.
In FY2022, geopolitical risks became prominent with
Russia’s invasion of Ukraine. With disrupted supply chains,
growing inflation due to soaring prices of energy resources
and raw materials, and the depreciation of the yen, it was ayear in which the future was even more uncertain.
Over this period, embracing “quick and decisive” as our
slogan, we have aimed for management that overcomes
these difficulties. In our mainstay Valve Manufacturing
Business, we saw strong domestic and overseas performancefor semiconductor manufacturing equipment against a backdrop of growing semiconductor demand, with higher sales
volumes in the Americas and ASEAN regions also helped by
the weakening yen. We also managed to cover the sharp risein raw material prices with price revisions early on. I believe
this was possible due to the brand power that KITZ holds, as

Value Creation Story

well as the relationship of trust it has built with customers.
Similarly, in Brass Bar Manufacturing Business, we managed to increase net sales by implementing price revisions in
response to the rising raw materials market while focusing on
expanding sales.
As a result of these efforts, net sales rose 17.8% year on
year to ¥159,914 million, a record high. Operating income
was ¥11,051 million, up 22.9% year on year, while ROE was
10.0%, surpassing our initial forecast for FY2022 in the first
Medium-term Management Plan 2024 (FY2022-2024) that wasannounced in February 2022.

First Medium-term Management Plan 2024 (FY2022-2024) Results and Numerical Targets (Revised in February 2023)(Millions of yen)

FY2021

FY2022
Initial Plan

Net sales(Announced in Feb. 2022)

Initial Plan

Results

Revised Plan

(Announced in Feb. 2022)(Announced in Feb. 2023)

135,790

143,000

159,914150,000

170,000

Operating income

8,990

10,00011,051

12,00013,000

ROE

6.4%

7.6%

10.0%

at least 8%

at least 9%

Valve Manufacturing

106,754

112,200

125,189

118,500

136,600

Brass Bar Manufacturing

27,36629,00032,51329,50031,000

Others

1,668

1,800

2,212

2,000

2,400

Data Section

Results

FY2024

Net sales by segments

Operating income (loss) by segments
12,08813,30014,98015,10017,000Brass Bar Manufacturing

665

800

222

1,000

800

Others

(243)

0

68

100

100

(3,519)(4,100)(4,219)(4,200)(4,900)

Valve Manufacturing

Adjustment

6

net sales of ¥167.0 billion, a 4.4% year-on-year increase; operating income of ¥11.9 billion, up 7.7%; and an ROE of at least
9%. In FY2024, we will aim for net sales of ¥170.0 billion with
operating income of ¥13.0 billion and an ROE of at least 9%.
Underpinning these figures are growth sectors, primarily
the semiconductor market. A brisk semiconductor businessnot only benefits semiconductor manufacturing equipment
but also leads to broad demand in other areas such as data

centers and ultrapure water plants. Additionally, in the petrochemical market in which we have traditionally excelled, ashift to fine chemicals with high added value is expected, raising the prospects of significant growth.
In response to these developments, KITZ SCT, which manufactures and sells valves for semiconductor manufacturing
equipment, has constructed a new plant building that began
operating in April 2023. Meanwhile, KITZ Micro Filter, which
produces and sells filters for semiconductor photoresists, isalso working on the construction of a new plant building withthe aim of beefing up production capacity to meet vigorous
demand. These improvements to production capacity will
start contributing to business results in the third year of our
Medium-term Management Plan and beyond.
Currently we are also actively working on new businesses.
From January 2023, Hydrogen Department was elevated to
Hydrogen Division in order to pursue hydrogen-related business in earnest. Previously, projects related to water treatment had been implemented on an individual basis by eachGroup company, but to unify our elemental technologies
and products for creating greater synergy, the Environmental
Solutions Division has been launched as a new entity at KITZ.

● Summary of FY2023 Plan

Sales

¥167.0 Billion

ROE

At least 9%

Year on Year: +4.4%“ROIC × ESG” Management

Operating Income¥11.9 Billion

Year on Year: +7.7%

Annual Dividend¥33 per share

Equal to Previous FY

Aim to enhance both corporate value and social value

Set “improving return on invested capital over the medium to long term” as the core management objective, and manage ROE externally and ROIC
internally as the main KPIs

ROIC
•Through ROIC tree, make all employees perceive
their role and contribution to the company•Aim to minimize inventory and receivables turnoverand maximize profits considering asset efficiency•Identify and improve unprofitable products (costreduction, product integration & discontinuation,
price raises)•Invest actively in growth areas and harvest speedily7

ESG (Sustainability Management)•Protect the environment through “3 ZERO” andtarget environmental businesses sector•Consider employees as capital, and create anenvironment to improve their capabilities andengagement•Take reasonable risks and mitigate risks that exceed
our tolerance•Build a management system that is transparent andcapable of quick decision-making

Focusing on Risk Management

Data Section

Implementing Proactive Management toward 2030

Sustainability

Human capital is one of the factors to achieve our plans. It
depends on how well we can cultivate employees engaged
with a positive attitude toward their work. To achieve that,
we need to properly take stock of our human capital, discovertalented employees, and hone their abilities across various
departments and regions, including overseas.
Another perspective is improving employee engagementscores. Looking at engagement scores, in FY2022, KITZ scored48 points for a rewarding work culture and 44 points for abetter work environment. This level is not something to beparticularly proud of. Our challenge is to improve the scoresof younger generations and employees at production sites.
Boosting engagement by creating an open workplace is vitalto achieving our Medium-term Management Plan.
How can we foster a sense of trust in senior employees andsupervisors, how can we link employees’ own jobs with achieving the company’s plans, and how can employees themselvesadvance their own career plans? The division managers are now
leading efforts to visualize those questions.

Growth Strategies

Development of a Rewarding Workplace

As a part of that initiative, we set up the KITZ GroupEngagement Forum 2022, events for dialogue between top
management and employees. Around 40 of these forum
events were held at KITZ and the Group companies in Japanand overseas. I gave direct explanations of the Long-termManagement Vision and Medium-term Management Plan weannounced in February 2022, giving employees the opportunity to think about these as their own. The sessions alsoemphasized dialogue, and around half of their running time
was taken up answering questions from employees. This has
enabled employees to ask directly about the issues they are
regularly facing and put forth proposals, and we have started
to see positive results. Through these initiatives, in FY2024,
we aim to score 56 points in rewarding work culture and 55
points in a better work environment. I see KITZ’s greatest
strength as its serious and sincere corporate culture epitomized by an element of its Action Guide: Do it True. We will
engage in fair and equitable corporate activities which ensurethat each employee understands the need to observe internal
rules, social ethics, and morals and which meet the expectations of society and earn its trust. This is directly connectedwith the job satisfaction of employees.
Group-wide, KITZ employees number more than 5,300,
half of whom work overseas. We must foster the same KITZ
corporate culture at overseas sites as we do in Japan anddevelop a fulfilling work environment. I think we must also
actively pursue personnel exchanges, having employees
come from overseas to work in Japan, and vice versa.
Creating women's opportunities for active roles is anotherimportant effort. We have set the target of raising the percentage of female managers, which was 3.4% in FY2022, to
10% by FY2024. I want KITZ to be a company where a diverse
range of talent can succeed irrespective of gender, age,nationality, or culture.

Value Creation Story

Meanwhile, analyzing risk factors and minimizing those risks
are key points to achieving our plans. I think of risk management as my most important role. I am aware that theuncertain management environment will continue due toglobal economic trends such as inflation, rising interest rates,
exchange rate fluctuations, and supply chain issues. Further,
we must now also face emerging geopolitical risks.
As KITZ currently has four production sites in China andanother site in Taiwan, there is a need to pay attention to therelationship between China and Taiwan, as well as between
the U.S. and China. As a contingency, we are developing systems enabling some products currently produced in China to
be produced in Japan. We will also make progress in reviewing our production systems, including the decision to relocate
some of the production underway in China and Taiwan toVietnam.
We are also focusing on improved supply chain management in coordination with production. At times last year, ourcustomers were inconvenienced due to supply chain disruptions. Previously, we had been managing production control
and purchasing separately but now we have established a
new department to oversee the supply chain and enabled acentralized management system. We are in the process of creating a system that will give us a bird’s-eye view of the situation from the formulation of production plans based on sales
targets to cooperation with suppliers and changes to production sites to avoid geopolitical risks.

In 2021, my appointment as President & CEO coincided withour 70th anniversary. The first task I set about was to revise
the KITZ’ Statement of Corporate Mission to make it more
purposeful and clearer. Revisions to our corporate mission led
to the formulation of our Long-term Management Vision andMedium-term Management Plan.
Then in February 2022, we announced our Long-termManagement Vision “Beyond New Heights 2030 – Change theFlow.” As quantitative targets for 2030, we aim to achieve an
average sales growth rate of at least 4%, with net sales in the¥200 billion range, an ROE of at least 10% and net income ofaround ¥10 billion.
To achieve our vision, we will strengthen our foundations

8

in the Building & Facilities, Petrochemicals and Machinery &Equipment markets that represent our core businesses. To
cater to the demands of the times in terms of digitalizationand decarbonization, we will accelerate our entry into growth
sectors including Semiconductors, Fine Chemicals, andHydrogen & Clean Energy and aim for ambidextrous management that shifts our business domains. To implement thesemeasures, we have set aside a total budget for investments of¥80 billion over nine years from 2022 to 2030, 60% of which
will be allocated to strategic investments in growth sectors
and new areas.
As a measure of digitalization, we will lead BX (business
transformation) Task Force activities in which roughly 20% of
all employees take part. To take on the challenge of rapidly

Corporate Philosophy Structure

We strive to build a robust global environmentand sustainable future by supporting societal

KITZ’
Statement ofCorporate Mission

infrastructure through our advancements in fluid
control technologies and materials.
Beyond New Heights 2030

Long-termManagement Vision

Change the ‘Flow’
Do it

Way

■ Do it True

Action Guide■ Do it Now■ Do it New

Our Aspirations for 2030
Technology/Solutions

Environmental Conservation through Business

KITZ will continue to challenge in Stream, Block andSqueeze by leveraging its one-of-a-kind technology andexceeding the user’s expectations through its powerfulproposal capability.

KITZ will garner favor with society by contributing to asustainable future, pursuing environmentally friendly
product and material development and production
processes.

Core Business/Growth Business

Diverse Human Resources

KITZ will strengthen the foundations of its core businessfor the information and sustainable society, while also
accelerating its entry into growth businesses without fearof risk.

FY2030Financial
Targets

9

KITZ will ensure each and every employee, regardless ofgender, age, nationality or culture, can work in high spirits
at maximum performance as professionals.

Average sales growth rate
at least %4(FY2030: consolidated sales of ¥200 billion)

ROE at least

10%(FY2030: consolidated net income of ¥10 billion)

Value Creation Story

My motto is “Fueki Ryuko”, a Japanese phrase that means
to incorporate new trends without changing one’s essence.
As KITZ’s Slogan on Sustainability states “Create the Future /Preserve the Future,” I hope to be a manager who is able to beproactive in this time of rapid change. As we head to 2030 andbeyond, KITZ will continue to evolve in sustainable ways.
Our 70th anniversary was an important milestone, but it
was also just a waypoint. We will Change the Flow to adapt
to an evolving external environment and aim “Beyond New
Heights” toward our upcoming 80th and even 100th anniversaries. Your ongoing support is greatly appreciated.

Sustainability
Data Section

Non-Financial Targets*1 of the First Medium-term anagement Plan 2024 (FY2022-2024)

CO2 reduction rate
(Compared to FY2013, domestic group)

Growth Strategies

changing social issues, we will work to transform business byutilizing the power of digital technologies.
In our Long-term Management Vision, we specified key
themes in each field of ESG. As an environmental initiative
for achieving “3 ZERO (triple zero)”, namely Net Zero CO2Emissions, Zero Environmental Impact, and Zero Risk.
We have made considerable progress in reducing CO2
emissions. By switching to green electricity, in 2022, wereduced CO2 emissions by 65% compared with FY2013 levels
group-wide in Japan, outpacing the original schedule. At thisstage, we expect to achieve a reduction of 80% by FY2024
and 90% by FY2030.
In response, we issued Sustainability-Linked Bonds worth¥10 billion in September 2022. As a way of dealing with theurgent issue of climate change, these corporate bonds use
the CO2 reduction rates for Scope 1 and Scope 2 of domestic
Group companies as evaluation indicators.
In November 2023, our head office will be relocatedfrom Makuhari Shin Toshin, Mihama-ku in Chiba-shi, Chiba
Prefecture to the Shiodome area of Minato-ku, Tokyo. The
move will enable us to consolidate over half of the offices andGroup companies that are spread throughout Tokyo in orderto pursue further synergy and speed up decision-making. It
will facilitate communication between employees and help
create a better work environment. By consolidating functions
in a single office, we also hope the move will have a positiveeffect on creative ideas and innovations.

FY2021 (Results)

FY2022 (Results)

FY2024 (Plan)-28.1%*5-66.2%*6

-80%

48pt

48pt

56pt

43pt

44pt

55pt

21.7%

22.0%

23%

Employee Engagement Score
Rewarding work culture*3
Better work environment*

4% of female employees% of female managers*

3.4%

3.4%

10%

% of male employee taking childcare leave

29.0%

35.3%

50%

5

*1 Non-consolidated basis excluding CO2 reduction rate *2 Scores on questions measuring willingness to contribute toward goals, sense of belonging, voluntary effort, etc. *3 Scores on questions
measuring opportunities to utilize skills and abilities, a better work environment, etc. *4 Managers: employees of the department manager *5 Replaced FY2020 results with FY2021 results (final figures,-26.9 to -28.1%) *6 Provisional figures as of March 29, 2023

10

Special
FeatureBusiness Transformation for “Beyond New Heights”

To respond to rapid changes in the social environment,
we will pursue business transformation that fully
leverages the power of digital technologies.
Driving Three Stages Toward Business Transformation
In the changing social environment, such as population
decline and decarbonization, KITZ formulated the Long-termManagement Vision to enhance competitiveness and continue to support infrastructure. To make effective use of digital transformation (DX) as the means to achieving the goals of
this vision, we have been engaged in Business Transformation(BX) Task Force activities.
These activities are being personally led by the President
as a large task force with the participation of roughly 20%
of all employees across multiple sections, and involves theimplementation of three stages: strengthening existing businesses, changing the management structure, and realizing
new business models.
We will strengthen our existing businesses by thorough streamlining, starting with improvements to EX*1. The
management resources by this process will be visualized,
President
Steering Committee

Project Management Office

Executive Officers

BX Promotion Department

Cooperate with leadersof each functional area

Cross-departmental Collaboration (Operation x IT)
Design & Development / Production & Quality Assurance / Sales, Marketing & CS / Back Officemobilized, and used to enhance CX*2.
As indicators of the progress of Task Force activities, wehave created BX KPIs that link the activities of each department to management based on an ROIC tree. Using these BX
KPIs, we will aim to transform into a customer-oriented andagile organization and develop new business models.
*1 Employee Experience*2 Customer Experience

Encouraging a Proactive Approach Based on Datadriven Thinking
In the first Medium-term Management Plan, we aim totake ownership of changes and acquire the capability to
implement various reforms through a transformation in theenvironment, ideas, action, and culture.
As the basis for the DX implementation in FY2022, we
mainly worked on establishing an optimized management
system to create cross-departmental collaboration as the coreof transformation, reforming mindset and corporate culture
to lay the groundwork for a culture to take root, developing
DX human resources to cultivate employees to lead that
culture, and enhancing IT infrastructure as a tool to put theabove into practice. From FY2023, we will utilize this basis for
implementation to drive BX at full scale based on plans foreach measure.

IT Division

Existing business model =Strengthening EX

Thorough elimination of waste
Increase in productivity and speed
Generate profit & resources(spare capacity)

Pursuit of added value
New business model =Solution-oriented
Strengthening CX
Hypothesis testing (Trial & Error)

Stage 1

Stage 2

Stage 3

Strengthen Existing
Businesses

Change inManagement
Structure

Realization of New
Business Models● Thorough operational

efficiency and automation● Major review of customer
contact points● Resource visualization● Resource mobilization

Creation of new
business● Business portfolio reform● Value proposition/business

From goods toservicesmodel shift

Strengthening growthmarkets (resource shift)Basis for DX Implementation
Optimized management
system11

Mindset and corporate
culture reformDX human resource
development

IT infrastructure enhancement- Digital platform- IT security

Ability to Excute
Awareness-raising and problem-solving

Motivation
for identifying issues

Investigate
ConsiderDoubt

Skill development

Developing the Environments and Tools for Each
Employee to Succeed

Sustainability

KITZ has made progress in streamlining operations throughthe update of mission critical systems and enabled the accumulation of accurate data. In addition, through the upgradingof communication tools, we have changed the way of information sharing internally.
As for BX Task Force activities, we have used these developments as the foundation for actively sharing information
to employees and improving awareness of the management
situation and management indicators. We have also introduced tools for employees to utilize the accumulated data,such as data platforms and BI tools. Based on the KITZ Group
Information Security and Personal Information Protection
Policy, we have developed the environments and tools to
identify and solve problems in business operations.
We are also pursuing paperless operations by digitizing
existing analog data, and have seen each activity steadilybear fruit as the foundation for a new corporate culture to
take root.

Growth Strategies

BX Task Force carries out cross-organizational improvement
activities to shift human resources to new businesses as partof business transformation. Through these activities, Task
Force members are developing their spirit of innovation andability to set challenges.
In parallel with the above, DX human resource development is conducted to cultivate key members who will leadfuture reforms through enlightenment activities and skill
development. Enlightenment activities begin with recognizing the need for the reform and broadening one’s perspective. Skill development fosters the ability to identify an issue
and its cause and solve them through data analysis training,as well as the ability to analyze the current situation and solve
issues on one’s own through citizen development*3 training
for RPA and business apps*4.
As of 2022, 200 and 170 employees have undergone data
analysis and citizen development training respectively. These
DX talents with ability to execute will become the leaders of a
new corporate culture.

for solutions

Value Creation Story

Enlightenment

Creating Resources for Transformation andDeveloping DX Human Resources to Lead a New
CultureSkillsTry

Knowledge*3 Citizen development: The development of RPA and applications by users with
intimate knowledge of the field in which they work rather than those from an
IT department*4 RPA and business apps: Tools that enable the development of PC task automation or applications through intuitive operations that do not require knowledgeof a development language as with conventional system development

DX Human Resource Development

Launch of the BX Task Force led by the President, in which 20%
of employees participatedAcquiring the abilities to set challenges and solve problems

Data Section

Optimized Management System

Strengthening digital literacy and in-house production skills
through internal training

Setting BX KPIs aligned with an ROIC tree

IT Infrastructure Enhancement
Mindset and Corporate Culture Reform

Upgrading of systems and communication tools

Shift to indicating targets and progress with numerical data

Introducing and promoting data visualization and analysis tools
Developing cloud-based platforms to accumulate data

Thoroughly sharing information using the intranet portal(management vision, departmental vision, KPIs)

Strengthening in-factory information security
Setting KPIs for digital technology utilization

Promoting digitalization through paperless operations

Number of DX humanresources

Security assessment scores

IT environment user
satisfaction

12

KITZ Group’s Growth Trajectory
The Kitazawa Factory (now KITZ Corporation) was founded in 1951 when Japan was in the transition
period from the chaotic aftermath of the postwar era to the approaching era of high growth. Guided
by the founding principle of Toshio Kitazawa (1917-1997), the Company positioned integrated
production as the basis of its operations, in which all processes are carried out under one roof, frommaterials to finished products and from casting through machining, assembly, inspection, andshipment. Furthermore, the Company has built a structure that provides customers with meticulous
service and post-sale follow-up. This insistence on “better quality” has been upheld and passed down
as the cornerstone of the KITZ Group’s activities. The Group has grown to become one of the world’s
pre-eminent corporate groups, developing a solid position as an all-round valve manufacturer thatprovides a wide variety of products to multiple fields.
* Sales from 1951 to 1976: Non-consolidated

1951

1955

1960

1965

1970

1975

1980

Toshio Kitazawa

1985

Yusuke Shimizu(Term of office:1951 to 1985)(Term of office:1985 to 2001)

Initial founding, and building
a production and sales network

Expansion of product range and growth into
an all-round valve manufacturer

Establishment of the trusted
KITZ brand1951● Toshio Kitazawa founded theKitazawa Mfg. Works Co., Ltd.

1962
● Company name was changed
to Kitazawa Valve Co., Ltd.

1974
● Started manufacturing andselling cast steel valves.

The Nagasaka Plant was completed
and the manufacture and sales ofcast bronze valves started.

1967● Started manufacturing andselling ductile cast iron valvesand stainless steel valves.

1977● Listed on the Second Sectionof the Tokyo Stock Exchange.

1989● The Nagasaka and Ina plants
obtained ISO 9001 quality
management system certification,
making KITZ the first Japanesecompany to receive this certification.

●

1952● Nationwide distributors’ association
was organized, marking theestablishment of a distribution
system for the domestic market.
1959● Started manufacturing brass rods.

1968● Started manufacturing andselling butterfly valves.

1978●

became aregistered trademark.

1991● Spanish ball valve manufacturer ISO
S.A. (currently KITZ Corporation ofEurope, S.A.) joined the KITZ Group.

1969● Started manufacturing andselling cast iron valves.

H i s t o r y

1951
The Nagasaka Plant begins
operation in Japan with just 11
employees in a small workshop,
not a full factory.

13

1962
Japan’s first forged brassvalves called FH and FS
introduced.

1980
Introduced a cast bronze
valves designed handwheel,“CHRYSANTHEMUMHANDLE®”(See page 30 Focus.).

1984
Listed on the First Section of
the Tokyo Stock Exchange.

1999
KEEPALOY environmentallyfriendly lead-freedezincification-resistantbrass bars are developed
and announced.

Net Sales

Focus(Billions of yen)

* F iscal 2020 is an irregular nine-month period
due to the change in the fiscal year end.

150

In October 1992, we changed our company namefrom Kitazawa Valve Co., Ltd. to KITZ Corporation,
based on global recognition of the KITZ productbrand. The name KITZ is a shortened version of theoriginal name Kitazawa (KITaZawa).

*

1990

1995

2000

2005

2010

2020

Yasuyuki Hotta(Term of office:2001 to 2008)

2022

0

Makoto Kohno(Term of office:2008 to 2021)(Term of office:2021-)

Sustainability

Kimio Kobayashi

2015

Growth Strategies

50

Value Creation Story

100

Accelerating selection and concentration, and promoting globalization

1995● Shimizu Alloy Mfg. Co., Ltd.
joined the KITZ Group, enabling
the Group to begin supplying
products for water supply
systems.

2004
Toyo Valve Co., Ltd., anotherwell-known Japanese valve
manufacturer, joined the KITZGroup.

2001● Purchased the semiconductor
related business from the former
Benkan Group.

2009● Perrin GmbH, a ball valve
manufacturer in Germany, joined
the KITZ Group.

2002● Carried out impairment of assets
and reconstructed poorly
performing business operations.

2015● Indian industrial valve
manufacturer Micro Pneumatics
Pvt. Ltd. joined the KITZ Group.

2004● Separated and reestablished thebrass bar manufacturing andmicrofilter (MF) business as
separate entities.

2012
Launched ultra-high pressureball valves for hydrogenstations.

●2022● Unveiled our Long-termManagement Vision.
●

Selected Prime Market in Tokyo
Stock Exchange new market
segments

Data Section

1992● Changed name to
KITZ Corporation and moved
the head office to the Makuhari
district of Chiba City.

Brazilian industrial ball valve
manufacturer Metalúrgica Golden
Art’s Ltda. joined the KITZ Group.

2018● Korean industrial butterfly valve
manufacturer Cephas Pipelines
Corp. joined the KITZ Group.

2019
Consolidated operating
income for the fiscal year
ended March 2019 was arecord-high ¥11,713 million.

2022
Decided to relocate
headquarters to Shiodome
area, Minato-ku, Tokyo

14

Value Creation Process
Beyond New Heights 2030
Changes in the external
environment and social issues

Management resources supporting
the value creation process● Offering a variety ofE● Climate change due toglobal warming

products to multiple
fieldsValue Creation Process

Thorough pursuitof customer value● Reduction ofenvironmental impact● Carbon neutrality● Integrated production

system from materials tofinished productsS● Decline in the working

age population● AI and IoT● Diversity● Global sales networks● Diverse humanG● Risk management

resources in thecorporate culture
capable of taking onchallenges● ComplianceR&D activities
generating highadded value

Production
activities achieving
high quality

Global sales
activities

Foundations supporting
business● Anti-corruption● Environmentally friendly

manufacturing

Sustainability
Corporate governance
Financial basis

15Change the Flow

Providing high quality products
and services catering to every
need to Stream, Block andSqueeze flows

Value Creation Story

OutputValue Delivery● Creation of a comfortable living● Customer/supplier confidence andCore Markets● Building & Facilities● Petrochemicals● Water Treatment● Machinery &Equipment

coexistence with local
communities● Development of diverse human

Growth Strategies

environment through support forthe stable supply of water andenergyresources and creation of acorporate culture in which
employees are always motivated● Business activities that minimize● Semiconductor

Equipment● Semiconductor

Materials (Filters)● Fine Chemicals● Hydrogen & Clean
Energy● Continuous enhancement of

Sustainability

Growth Markets

the impact on the environmentand strengthening of theenvironmental management
systemshareholder value

FY2030 Financial Targets

New Businesses● Water Solutions● Maintenance

Solutions

4%(FY2030: consolidated sales of ¥200 billion)

ROE at least

Data Section

Average sales growth rate at least

10%(FY2030: consolidated net income of ¥10 billion)

16

Growth Strategies

Business Segments

The KITZ Group operates Valve Manufacturing Business that involves the manufacturing and sale of joints,
purifiers, and industrial filters with a focus on valves as a type of fluid control device; Brass Bar Manufacturing
Business that involves the manufacturing and sale of brass bars used as faucet fittings, gas equipment, andmaterials for home appliance components; and other businesses including the operation of hotels.
Moving forward, the KITZ Group will continue to pursue further growth as an all-round fluid control device
manufacturer with a focus on valves.
● Overview of KITZ Group's Business Promotion Structure

Domestic

Overseas

Business Partners

Sales Company

Maintenance

Sales Company

Shimizu Alloy Mfg. Co., Ltd.
KITZ SCT Corporation
KITZ Micro Filter Corporation

Toyo Valve Co., Ltd.

KITZ Engineering Service
Co., Ltd.

KITZ Corporation of America
KITZ SCT America Corporation
KITZ Corporation of Asia Pacific Pte. Ltd.
KITZ Valve & Actuation Singapore Pte.
Ltd.
KITZ Valve & Actuation (Thailand) Co.,Ltd.
KITZ Valve & Actuation (Malaysia) Sdn.
Bhd.
KITZ Valve & Actuation Vietnam Co., Ltd.
KITZ Corporation of Shanghai
KITZ Hong Kong Company Limited
KITZ Corporation of Korea

Valve Manufacturing Business

Manufacturing and Sales Company

Brass Bar Manufacturing Business
Others17

KITZ (Manufacturing and Sales)

Manufacturing Company

Manufacturing and Sales Company

KITZ (Thailand) Ltd.
KITZ Corporation of Taiwan
KITZ Corporation of Kunshan
KITZ Corporation of Jiangsu Kunshan
KITZ Corporation of Lianyungang
KITZ SCT Corporation of Kunshan
KITZ Corporation of Vietnam Co., Ltd.

KITZ Corporation of Europe, S.A.
Perrin GmbH
Metalúrgica Golden Art’s Ltda.
Micro Pneumatics Pvt. Ltd.
Cephas Pipelines Corp.
Filcore Co., Ltd.

Manufacturing and Sales Company
KITZ Metal Works Corporation
Hokutoh Giken Kogyo
Corporation

Supply of Products

Hotel Beniya Co., Ltd.

Supply of Parts and Materials

Valve Manufacturing Business
Sales by segments

78.3%

With a large number of valve manufacturers specializing inlimited markets and fields and narrowing down the manufacturing and sale of valves to particular materials and shapes,
the KITZ Group maintains a lineup of valves featuring an arrayof shapes in various materials including bronze, brass, stainless steel, cast iron, and cast steel. As an all-round valve
manufacturer, we offer products that span numerous fields
covering every area from our daily lives to industry.

The KITZ Group maintains casting equipment designed for themain materials of valves. We manufacture our products on thebasis of an integrated production system that covers everything from material selection to casting, machining, assembly
and inspection. By developing a quality assurance system that
extends back to the materials we use, we have established theposition of KITZ as a brand that stands for reliability.

High Market Share—

Sustainability

In the domestic market, we have established a strong sales
network that can quickly respond to customer feedback
through a network of distributors that covers all of Japan. We
thus maintain a particularly high market share in bronze,
brass, and stainless steel valves.

Growth Strategies

KITZ Brand as a Mark of High Quality

Valves are a general term for fluid control devices
that have the function of flowing and stopping
fluids (water, air, oil, gas, etc.) in pipes and controlling the flow.
The origin of valves dates back to woodcocks
that were excavated from ancient Egyptian ruins
dating from around 1000 BC. Around the mid-1800s,
when boilers for spinning were imported, metal
valves were used for the first time in Japan. At thestart of the Meiji era, when water service and town
gas service commenced, valve manufacture began
in Japan.
Today, valves are connected with diverse pipes
in a wide range of fields from those close to ourdaily life, such as water and sewage, hot-watersupply, gas, and air conditioning, to the production
processes in industrial fields, such as oil, chemicaland pharmaceutical products and food. Valves play
an extremely important role. Although we are rarely
aware of their existence in our daily life, valves
strongly support our life behind the scenes.

Value Creation Story

Strengths
Providing a Wide Range of Products as an AllRound Valve Manufacturer

What Are Valves?

Data Section

Brass Bar Manufacturing Business
Sales by segments

20.3%

OthersSales by segments

1.4%

Strengths
Development of New Materials based on Alloy
Technologies Cultivated over Many Years

Strengths
Operating One of the Largest Hotels in the
Kamisuwa Onsen Hot Springs District

Our business began with the manufacturing of brass bars,
which is a main material of valves. Today, we respond tomarket needs by actively developing and selling new materials that are friendly toward people and the environment,
including dezincified corrosion-resistant brass bars andlead-free brass bars.

Our business is service-related operations, focusing on Hotel
Beniya, located in Suwa, Nagano Prefecture. In addition to thehotel business, we also operate two service areas: the Suwako
service area located along the Chuo Expressway (outbound)and the Tobu Yu-no-maru service area located along the
Joshin-etsu Expressway (inbound).

18

Business Summary and Strategy—Valve Manufacturing BusinessMessage from Unit General Manager, Flow Control Business Unit
We will accelerate initiatives targeting
growth markets and aim to transform ourbusiness portfolio.
Yukinari Koide
Executive Officer, General Manager, Flow Control Business Unit

Business Results in the Fiscal Year Under Review(FY2022)In FY2022, we saw a recovery in economic activity with global
progress on the COVID-19 pandemic response. However, due
to China’s zero-COVID policy, the Russian invasion of Ukraine,and other factors, difficult conditions continued, including●

Net Sales & Operating Income in Valve Manufacturing
Business Segment

Net Sales

Operating Income(Millions of yen)

125,189 (Millions of yen)

125,000

100,000

25,000109,969
106,754
103,114
98,162
95,335

14,98014,93875,00015,00012,798
10,62750,00020,000

Toward Achieving the Long-term Management Vision

12,0889,306

10,0005,000

25,000002017 2018 2019 2020 2021 2022 FY• For the fiscal year ended December 2020, which is an irregular nine-month period
due to the change in the fiscal year end, reference figures (unaudited) calculated
as if the previous fiscal year ran from January to December 2020 are shown.
• The operating income of Valve Manufacturing Business shows the figures before
the elimination of corporate expenses, etc.

19

supply chain disruptions, soaring energy resources andraw material prices, and the depreciation of the yen. Under
these circumstances, we managed to achieve net sales thatexceeded our plan in Valve Manufacturing Business, on theback of favorable conditions for semiconductor manufacturing equipment continued in Japan and overseas, pricerevisions in response to sharply rising raw material prices,increased sales in the Americas and ASEAN regions, and theimpact of foreign exchange rates.
On the profit front, the effects of the price revisions offset
soaring raw material prices. Favorable conditions for semiconductor manufacturing equipment and increased sales fromdomestic and overseas markets due to the economic recovery
also led to increased profit.
As a result, net sales in Valve Manufacturing Business segment rose by ¥18,434 million year on year to ¥125,189 million.
Operating income also increased by ¥2,892 million year on
year to ¥14,980 million. This performance represents record
highs for both net sales and operating income.

The Long-term Management Vision states a policy of aiming
for expanded sales and profit by pursuing core businesses
in greater depth and investing resources in growth markets.
The first Medium-term Management Plan categorizes thebusinesses in which the KITZ Group excels as core businesses,
namely Building & Facilities, Petrochemicals, Water Treatment,
and Machinery & Equipment. We will further enhance theinfrastructure of these businesses and lay solid foundations
while investing resources in growth markets toward achieving“digitalization” and “decarbonization,” two keywords to solve
social issues. Specifically, we have categorized Semiconductor
Equipment, Semiconductor Materials (Filters), Fine Chemicals

are new needs to deal with the aging of experienced engineers and technicians, the decline in the working population,and the spread of infectious disease. As a solution, it is necessary to prevent equipment failures in a way that does not relyon human intervention. Using technologies based on uniquesensing algorithms, AI and IoT, KITZ has launched KISMOS(KITZ SMART MONITORING SYSTEM), a monitoring service that
detects signs of abnormalities in valves for batch production
processes in plants and factories. This will provide a systemfor providing total support to customers from the selection ofvalves to planned maintenance. Going forward, KITZ will fully
take on the challenge of solutions-oriented businesses.

Growth Strategies

Initiatives in the Field of Hydrogen

Launch of a Monitoring Service
Domestically, there are many plants that were constructedduring Japan’s high economic growth periods and are still
operating today. Due to their many years of operation, there isa heightened risk of trouble and accidents from deteriorating
facilities, which increases the importance of regular inspections, upkeep, and other maintenance tasks for securing safe
operations. However, in the field of maintenance work, there

As a Leading Company in the Valve Industry
As a leading company in the valve industry, KITZ has cultivated advanced technology and a wealth of experience overthe course of many years. KITZ utilizes these to meet thediverse needs of customers. KITZ introduced the Valve Meister
System for certifying employees who have reached a certain
level of skills and knowledge regarding automated valvesand metal materials for valves as Valve Meisters. Our Valve
Meisters respond to requests for customer consultations andpropose specific solutions. KITZ has also offered training programs (group training and online training) for trading companies that handle valves as well as construction companies,
customers and plant-related companies to learn the basics ofvalve technologies. Through practical training in areas such as
valve assembly and disassembly, piping, and automatic valve
flow tests, along with lectures from veteran engineers with awealth of practical experience, we will help improve knowledge and skills across the industry.

Data Section*1 NEDO: New Energy and Industrial Technology Development Organization*2 METI: Ministry of Economy, Trade and Industry

Valves equipped with sensors and other devices

Sustainability

KITZ began selling valves for hydrogen stations that supply
hydrogen gas as fuel for fuel cell vehicles and other uses in
July 2012, and in April 2020, entered the packaged unit-typehydrogen station business. In recognition of the developmentof technologies to reduce the costs of hydrogen stations aspart of the ultrahigh pressure hydrogen infrastructure widespread adoption and technological development project
operated by NEDO*1, and for the technological developmentof large valves for liquefied hydrogen as part of a project todevelop technologies to build a hydrogen society, KITZ wasselected by METI*2 as a “Zero-Emission Challenge Company.”
In addition, Kawasaki Heavy Industries, Ltd. proposed andwas selected for its hydrogen-powered aircraft core technology development project as a “next-generation aircraft development project” as part of NEDO’s Green Innovation Fund,and in November 2021, KITZ was selected by Kawasaki Heavy
Industries as a project participant and subcontracted again
for the development of valve technologies under hydrogen
aircraft engine combustor and system technology development and liquefied hydrogen fuel storage tank development.
We will pursue efforts in the field of hydrogen, one of our
growth markets, including our aim of contributing to the realization of next-generation aircraft through the developmentof these technologies.

Value Creation Storyand Hydrogen & Clean Energy as target markets, while the
Building System Department, Industrial Department, and Fine
Chemical Department have executed business strategies foreach target market. Additionally, in January 2023, we established the Hydrogen Division and Environmental Solutions
Division under the direct control of executive officers. We arepreparing to expand our Hydrogen & Clean Energy business inline with the future expansion of the demand, while in Water
Treatment, we will leverage the KITZ Group’s water-related
technologies, products, and services to provide customers
with solutions under our slogan, “Design Future with Water.”
We will accelerate initiatives aimed at each growth market
while specifying and managing resource allocations in aneffort to transform our business portfolio.

20

To meet the world’s water infrastructure demands

Supporting the Stable Supply of Water

Evolution of Water Treatment Technology

Water is the source of life and essential for sustaining all lives
on the earth, flora and fauna alike. The KITZ Group helps tomake people’s daily lives more comfortable bysupporting the stable supply of clean and safe water throughits safety-conscious products and services.

The KITZ Group is steadily evolving technologies that meet
the world’s water infrastructure demands, including water
purification technologies that use membranes to clean water,
desalination technologies to purify and desalinate water thatis not suitable for consumption, such as seawater, and technologies catering to the need for pure water and ultrapure
water against the backdrop of an expanding semiconductor
market.

Water purification
devices
Use membrane filter
water purification
systems to produce safe,delicious-tasting water.

Water meter units

Bronze and brass valves

An integrated unit
comprised of a watersupply meter and joint
fittings

Utilized by many customers in all manner of fields,
including the air conditioning and sanitation ofbuilding facilities such as
office buildings andhotels, plant production
facilities, and machine
tools and devices.

Office buildings andHotels, Hospitals

Apartment houses

Water source

Water purification
plantsWater supply anddistribution
facilities
Pumps

Water distribution lines
Drainage systems

Resilient seatedgate valves
Widely used forwater supply anddistribution
pipelines.

21

Products for water distribution systems
A broad choice of
products including
shutoff valves, metal
fittings, and snap taps
for branching tap waterpipes

Working Toward Solving Water-Related Issues

Tap water filters forhome use

Water conditioners forcommercial applications

Hollow fiber
membranes purify
tap water. Used forwater sources andpurification
systems.

Groundbreaking water treatment
devices that use a combinationof ozone, UV light, andphotocatalysis, together withadvanced oxidation treatment

Sustainability

Designed foreasy installationon compact,
space-saving
type for water
heaters.

Growth Strategies

Valves for water heaters

Value Creation Story

We work actively on the development of environmentallyfriendly technologies, such as surface treatment technology
to prevent the elution of nickel and lead from valves, andlead-free copper alloy materials, and meet the international
standards for water quality. Moreover, our lineup includes
equipment that breaks down organic substances dissolved
into water by way of ozone, UV light, or photocatalysis, purification devices designed to handle every kind of water sourceand household water purifiers.
The world faces serious issues related to water resources
and shortages. The KITZ Group is marshalling its combined
strengths to ensure that all people have access to clean andsafe water and is seeking new solutions for various waterrelated problems by harnessing the Group’s combined
capabilities, utilizing every group member’s experience,know-how, technologies, products and services.

Data Section

Pools and hot springs
HousesValves for watersupply systems
Made of special chemical
ingredients to minimize or
eliminate lead elution into
tap water for protection ofhuman health.

Sewage plants

Valves for sewage plants
Gate valves, ball-checkvalves, and other valves
that are essential fortreatment of sewage
water

22

Providing Valuable Energy Resources
That Keep Industry Running in an Endless Stream
Ensuring the Stable Supply of Energy

Controlling the Flow of Fluids in Extreme Harsh
Environments

The KITZ Group provides a wide scope of products that playa key role in providing essential energy resources that keepindustry running to oil refineries, petrochemical plants,
chemical plants and innumerable other industrial processes
through oil and gas pipelines, loading/off-loading terminals
and other modes of transportation.

At energy plants, valves must be able to withstand severe conditions like extremely high temperatures and pressure withno possibility of failure. Before introducing any new product,
the KITZ Group repeats stringent laboratory tests, analyses
and evaluations based on actual on-site service environments.
Only those products that have passed such verification procedures are added to our product lineup.

Metal seated ball valves

Stainless steel valves

Automated valves

Offer highdurability and arealso capable ofhandling hightemperature andcorrosive fluids.

Suited for use under high temperature, highpressure conditions in various types ofplants.

Automated
operation valvesequipped withactuators

Oil refineries and petrochemical plants

Crude oil and natural gas
excavation locations

Crude oilLiquefied natural gas

Three-piece trunnion mounted ball valves

23

From the oil refining topetrochemical industries,
industrial floating andtrunnion mounted ballvalves are used in a wide
range of chemistry, finechemicals, and energyrelated fields.

Carbon steel
valvesActuated compact ballvalvesWidely used inchemical plants
and petrochemicalindustry due totheir superior
corrosion resistance.

Cater to automationneeds for smalldiameter piping on
industrial production
process lines.

Value Creation Story

For a Clean Energy Society

Growth Strategies

With the decarbonization of energy picking up speed in
the race to carbon neutrality, there is increased interest in liquefied natural gas (LNG), which produces fewer CO2 emissions
during combustion than coal or oil and it can help curb global
warming, as well as hydrogen, regarded as the mainstay ofnext-generation energy. Particularly with regard to hydrogen,we have begun to develop large-sized valves for the high volume transportation of liquid hydrogen and aim to have the
KITZ Group’s valves supplied throughout the supply chain forhydrogen.
We are focused on developing eco-friendly products
to deliver clean, renewable energy to people all over theworld with the aim of contributing to the realization ofa decarbonized society.

Fully-welded type pipeline ballvalvesSafety design ballvalves guarantee
leak-free control of
fluid flow in pipelines.

Valves for high-purity gas service
Clean stainlesssteel diaphragmvalves or
bellows seal
valves forsemiconductor
manufacturing

Thermal power plants
Hydrogen stations

Cyrogenic and low
temperature service
control valves
Valves for LNG designed forcontrol of flow rate of industrial
low temperature fluids, undertechnical collaboration with
Valtek Inc. USA (currently
Flowserve Corp.)

Semiconductor
manufacturing
facilities

Cyrogenic and low temperature

Microfiltration Filters

Designed for handling
ethylene and industrial
low-temperature gas
fluids in LNG production, intake, satellite
terminals, and various
other applications.

Micro-pore,
low-leachinghollow-fiber
membrane filters
make significant
contributions in thesemiconductor andmedical fields.

service shut-off valves

Data Section

LNG terminal andtransportation facilities

Ultrahigh-pressure ball valves withexcellent seal performance anddurability, developed for use inhydrogen refueling stations

Sustainability

High-pressure ball valves forhydrogen stations

24

Research and Development System CreatingHigh Added Value
In order to meet the diverse needs of the times, we take immense pride in producing fluid control devices
delivering safety, durability and reliability.

R&D Concept

To Provide Next-generation Solutions

The KITZ Group’s engineering section is actively and boldly
engaged in research and development to realize KITZ’
Statement of Corporate Mission: “We strive to build a robust
global environment and sustainable future by supporting
societal infrastructure through our advancements in fluid
control technologies and materials.”

As part of KITZ’s 70th anniversary project, the KITZ Group
Innovation Center was constructed on the grounds of the
Chino Plant.
On the second floor, which has an office area for development and design sections, there is ample meeting space.
Thanks to the adoption of activity-based working (ABW)*, thespace encourages the free and flexible exchange of ideas andknowledge.
In addition, on the third floor, we have set up an “innovation studio” for putting original design ideas that create newvalue into practice. This will be the starting point for the
speedy provision of innovative products and services that will
satisfy customers.

n Core technologies

We integrate process technologies in the field of sealing,material, and process engineering that serves as the coreof our R&D operations.
n Providing solutions*ABW: A working style where people choose their work location based on thenature of the work at the time

We focus on resolving customer problems and provide
products and services that please our customers.
n Speed and global network

We develop new products rapidly by utilizing theworldwide group network to respond to the diverse needsof customers.

●

Valve Research and Development Process
Product
planning

Product
development
Materialand processengineering

Fluid analysis❶

Structural
analysis❷

Assessmentof prototype

Processdesign3D prototype
verification

Structural analysis❶ Structural analysis
The optimal structure of the product is designed by using
simulated fluid analysis, stress, or other structural analysis.

25

3D-CADCAM❷ 3D prototype verification
Prototypes can be verified at an
early stage using 3D printermodeling. Customers can checkthose prototypes by touch.

❸ Casting analysis
Design for an optimal mold forcasting is planned using
solidification analysis.

❹ Mold design/production
The CAM* data used to design themolds is transferred to processing
equipment, and molds areproduced internally.
* Computer Aided Manufacturing

The Product Development Department at KITZ is engaged inresearch and development to provide value to customers in awide range of fields, including building utilities, petrochemicals, clean energy, water treatment, and semiconductors.
To maximize the synergy of the Group, engineers fromJapan, Europe, the Americas, ASEAN, and China collaborate topromote product development and design, utilizing networks
such as groupware, and have established a technology structure for design at the optimum sites worldwide. We also
develop products with materials and specifications that arecompatible with the markets and regulations in each country,
and strive to improve efficiency through the active introduction of DX, such as promoting product development according
to market needs through centrally managing product drawings, design drawings and component tables through the useof PLM*.
In response to the diverse needs of today’s world, eachand every engineer, by raising the level of his or her skills andcontinuing to take up the daily challenge of value creation, iscreating fluid control devices that are outstandingly safe,
durable and reliable.

●

Sealing technologies, the core of valves

Offering eco- and human-friendly
products and services

Temperature

Narrowing fluid

Pressure

Sustainability

Fluid properties
Maintenance free
Automation and labor savings inplant and factory operations

Evaluationof mass
production

Mold design/
production❺Massproduction

Flowing fluid
The challenge to zero emissions

Launch ofproduct

Data Section❹

Seat seal

Reducing
operating torque

KITZ Corporation started operations from manufacturing
general-purpose valves. Over the years, KITZ has continually

Castinganalysis

Stopping fluid

Shaft seal

Sealing Technology and Materials Development
Supporting Lifelines in a Wide Range of Fields❸

Achieving carbon neutrality andhydrogen society

Support forISO-compliant low
emissions* PLM: Product Lifecycle Management

Mass
production
trial

Growth Strategies

gone a step ahead of the needs of emerging markets anddeveloped high value-added products, advancing frommanually operated shut-off valves to automated control
valves, and from single valves to complex modular products.
What makes it possible is sealing technology andmaterials development. Sealing technology has beendeveloped in a wide range of fields from low pressure toultra-high pressure, from extremely low temperature to hightemperature, with up to more than 90,000 products created.
The Company has also, based on its know-how cultivated overthe long period of its history, developed optimum metalmaterials and introduced new products through high-level
casting technology. These technologies are still evolving.

Value Creation Story

Earning the Trust of Users Globally with World-Class
Valve Technologies

Reliability
test❺ Reliability test
Testing and analysis are carried out under every condition of use.

Cryogenic test
Liquefied natural gas (LNG) is a
low-temperature fluid. We conduct
tests to reproduce the lowtemperature conditions.

Fire test
We verify whether valve functions
can be maintained, even if a fireoccurs and the valve seal materials
are burned out completely.

Blow-off test
Significant force is applied for hightemperature and high pressure fluid
flow control when valves are opened
and closed. We verify the durability
to ensure that valves can operateproperly even under the conditionsof application limits.

Low emission test
The company exclusively retains the
only methane gas testing facility
based on the API standard in Japanand performs external leak tests
with actual fluid.

26

Production Systems That Assure
High-Quality Products
The KITZ Group’s manufacturing is based on the concept of delivering products when necessary and in
the quantities required with better quality.

Integrated Production System That Provides Quality
Control Starting from Castings
Based on integrated production, the KITZ Group positions
castings (forge and foundry materials) that are valve materials
as the core technology and produces them internally fromcastings. We have established an integrated production system in which our Group has its own casting facilities for themain valve materials such as bronze, casting iron, ductile castiron, stainless steel, and casting steel, thus putting in place aquality assurance system starting from materials. We also provide a wide variety of products in small quantities.
What supports manufacturing operations based on themarket-oriented concept is the production method according
to the KITZ Innovative and Challenging System (KICS). KICS
provides a mechanism of sending only good products to thesubsequent process by producing each product one by one
in a sequence of processes at the exact timing with which
it can be sold. It also achieves the elimination of stagnation
and waste in a series of processes from order receipt to production and delivery. Moreover, we strive to further reducedelivery times and reinforce production lines continuously
by thoroughly implementing standard work and improving
processes.
3D scanners for casting mold production have been
introduced at the Nagasaka Plant. The casting molds used in●

production sites are theresult of engineers' ingenuity and expertise overmany years. By utilizing thisknow-how as data with theuse of 3D scanners, we canstandardize and improve
3D scanned moldour casting technology
in-house, shorten lead times from casting mold production to
product completion, and improve service for customers.

Toward an Eco-friendly Manufacturing Workplace forCreating Added ValueKITZ is investing proactively in R&D for new production technologies to achieve sustainable, eco-friendly production
processes. We have expanded efforts to reuse the sand usedin the casting process, recycle water resources used in valve
inspections, and research eco-friendly paints. To provide
customers and society with new added value as quickly as
possible, in 2022 a research laboratory was newly establishedin the KITZ Group Innovation Center on the premises of the
Chino Plant, accelerating initiatives for research into thesetechnologies.

Stainless Steel Valve Manufacturing Process
Melting Melting

Ladling Ladling

Pouring Pouring

Cooling Cooling

Cutting Cutting

Heat Heat
treatment
treatment

MoldingMolding❶ MeltingRaw materials are melted inhigh-frequency electric furnaces.

27❷ Ladling
Melted metal is ladled for pouring.

❸ Pouring
Melted metal is poured into a casting
mold. The melted metal flows into
the cavity between the upper mold,the lower mold and the core.

❹ Heat treatment(solution heat treatment)
Raw materials are quenched after having
been heated up to 1,100°C. This process
forms a uniform metallic structure andmakes mechanical properties such as
tensile strength and elongation higher
and ensures corrosion resistance.

Value Creation Story

KITZ Group Innovation Center Test Lab

KITZ Brand is Backed by Quality Management
Systems❺ Acid pickling
Pickling castings in acid solution removes
impurities such as oxidized scales on thecasting surface caused by heat treatment
and shot blasting. At the same time, aprotective film is formed on the casting
surface, enhancing corrosion resistance.

Machining❻ Machining
Castings are cut, drilled andprocessed with machines.

The KITZ Group is building a structure for undertaking production in the most suitable locations for its operations
around the world. Under this structure, we produce high value-added products in Japan, while Japan also plays a crucialrole as the command center for our global manufacturing
activities. The KITZ Group now has international production
sites in Thailand, Taiwan, China, Korea, India, Spain, Germany
and Brazil. We also revise our production systems flexibly,
including a decision to shift a part of production underway in
China and Taiwan to Vietnam.

Assembly❼ Assembly
Various parts and components areassembled to complete valves.

Pressure
tests

Shipment

Data Section

Inspection

Global Production Network: Manufacturing
Facilities Located in Optimum Locations

Sustainability

Acidpickling

Economy, Trade and Industry as an authorized gas tester
under the High Pressure Gas Safety Act. It supplies Japan
Industrial Standards (JIS) certified products and complies withthe standards of the Japan Water Works Association (JWWA).
KITZ plants in Japan and China are also certified to display the
API Monogram of the American Petroleum Institute.

Growth Strategies

KITZ Corporation recognized the importance of conformanceto the international standard on quality management systems
earlier than anyone in the industry. In November 1989, KITZ
became the first Japanese company to earn ISO 9001 certification. At present, all domestic and international production
bases in the KITZ Group have been certified to this standard.
In February 2019, our Group company, KITZ Engineering
Service Co., Ltd., became the first in the Group to obtaincertification for the scope of “valve maintenance” under the
standard. Additionally, in July 2001, KITZ Corporation wascertified, for the first time in the valve industry in Japan, in
accordance with the Pressure Equipment Directive (PED) for
CE marking required for European markets. KITZ plants in
Taiwan, Thailand, China, Spain, and Germany have subsequently obtained PED certification as well.
In addition to these international quality standards,
in Japan, KITZ Corporation is approved by the Minister ofResearching eco-friendly paint in the Test Lab❽ Pressure tests
Valves are pressurized with air and/or water and operated to verify thatthey satisfy the quality requirement.

28Extensive and Strong Sales Network
Since our foundation, the KITZ Group has established a strong sales network covering all of Japan.
Today, we are working on the development of a global sales network in order to meet customers’ requests
with regard to quality, price, delivery, and service.

Full Distribution System
We have developed a sales structure to respond to customer
requests immediately through a strong distributors’ network covering all of Japan. These distributors and KITZ areconnected via dedicated lines and the Internet. As a result,information on market demand is fed back directly to the production site, and this also achieves marked improvements inbusiness efficiency and the acceleration of business. We havealso adopted a pull production system, a system for setting
a standard volume of distributor inventory for each productand replenishing the quantity shipped on a daily basis tomaintain the inventory at a certain level. With this, distributors
do not need to monitor the inventory volume of products forwhich standard inventory is set and can meet needs for rapid
delivery.

We build win-win relationships with customers by securing
repeat orders from customers and by accepting maintenancerequests for existing valve installations.
KITZ Engineering Service Co., Ltd. (KESCO) handles aftersales service. Through coordination between service centers
and affiliate companies, we provide smooth and varied maintenance services across Japan.
In February 2019, KESCO acquired ISO 9001 Certificationin the scope of the valve maintenance service. In addition, toperform proper maintenance on valves from other manufacturers, we have obtained certifications and qualifications in
the valve maintenance from valve manufacturers, including
those based overseas.
KESCO is committed to the development of humanresources. We have built a system based on on-the-job training where veteran and junior employees form teams so junioremployees can gain skills while performing actual maintenance work. KITZ also has extensive support systems in placefor employees to obtain qualifications. Acquiring qualifications in the various areas needed for maintenance, such as
crane slinging, forklift operation, gas welding, and construction management, is promoted as a part of employee training.

Sales Structure Responsive to the Market
Environment

KITZ’s Strength in Domestic Sales
KITZ provides a variety of products, from goods familiar inour daily lives to the production processes encompassing
industrial fields, through its powerful and wide-ranging sales
network.
Customers in each market decide which valve manufacturer they will use. To respond to customer needs witha diverse range of solutions, KITZ listens carefully to usage
conditions and the issues customers face to select the mostsuitable valves and quickly responds with prices and delivery
times.
After delivery, we maintain close contact with customers through meticulous support services including technicalassistance, parts supply, and on-site inspection and repair.

29

For global markets, we have been strengthening our sales andservice systems based on the environment in eachmarket. We have established regional headquarters that provide the functions of sales, marketing, engineering, stock,
maintenance, and service for each area, and conduct businessclose to the region and provide products andservices to satisfy local customers’ needs.
In addition to the representative offices in India andUAE, we have established sales bases in China, Hong Kong,
Korea, Singapore, Thailand, Malaysia, Vietnam, the UnitedStates, Germany, Spain, and Brazil and have developed global
sales networks. In order to quickly respond to individual
requests from customers, we have developed the KITZ Official
Modification Shop network for the modification and repair ofvalves.

KITZ—A Reliable Brand
The KITZ Group provides a full lineup of products, and our quality is highly regarded by customers in Japanand overseas. Our 12 brands have a presence in virtually all markets and fields centered on the KITZ brand.

Value Creation Story

KITZ Corporation ofEurope, S.A.

Cephas Pipelines
Corp.

Growth Strategies

Perrin GmbH

Metalúrgica Golden
Art’s Ltda.

YKV Corporation

Toyo Valve Co., Ltd.

Sustainability

Micro Pneumatics
Pvt. Ltd.

Data Section

Shimizu Alloy Mfg.
Co., Ltd.

KITZ Micro Filter
Corporation

KITZ SCT Corporation

Focus

A “CHRYSANTHEMUM-HANDLE®” is a symbol of, the brand of valve reliability.

Created in cooperation with Mr. Sori Yanagi (1915-2011), a prominent Japanese industrial
designer. Pursues the ease of holding from the perspective of ergonomics. Because the shapeof the finger-holds embodies plumpness that is reminiscent of large chrysanthemum petals,
it is nicknamed the “chrysanthemum handle.” It was employed for the design of the handle forbronze valves in September 1980 and has gradually been applied to other products.

30

Brass Bar Manufacturing Business

Manufacture and Sales of Brass Bars
The KITZ Group operates Brass Bar Manufacturing Business, manufacturing and selling brass bars andother fabricated brass products (cut and forged brass products). Brass bars are widely utilized formachines, construction materials, and other applications.

What is Brass?
Brass is an alloy of copper (Cu) and zinc (Zn). Modifying thepercentages of copper and zinc contained in the alloy andadding various other metallic elements makes it possible toproduce numerous superb characteristics, such as electricaland thermal conductivity, corrosion resistance, plastic
workability, and machinability.

with high recyclability. In 2019, the company entered intoa licensing agreement with Mitsubishi Shindoh Co., Ltd.
(currently Mitsubishi Materials Corporation) for the ECOBRASS® series of silicon-based lead-free brass bars. ECO
BRASS® is a global material registered under JIS, EN, andASTM and demonstrates high corrosion resistance andstrength properties.

ECO BRASS®

Initiatives as a Company Promoting the SDGs

Brass Bar Manufacturing Business
KITZ Metal Works Corporation, which handles the KITZGroup’s copper products business, develops and supplies
the materials for brass valves, and also manufactures andsells high-quality brass bars and fabricated items, which areused widely as materials for faucet metal fittings, and components in gas supply equipment, home appliances andauto parts.
Hokuto Giken Kogyo Corporation manufactures andsells cut parts and brazed workpieces.

Development of Environmentally Friendly New
Materials
In recent years, stricter regulations concerning substancesthat impact the environment have been introduced aroundthe world. In Europe, in particular, lead regulations havebecome increasingly strict, and the demand for lead-freebrass bars is expected to expand in the future.
In addition to the KEEPALOY series of bismuth-basedlead-free brass bars it has already been selling, KITZ Metal
Works Corporation has also released KEEPALOY II, a series

31

KITZ Metal Works Corporation is registered as a company
promoting the SDGs in Nagano Prefecture and pursues anumber of initiatives to achieve the SDGs. As one of these
efforts, since April 2022 we have adopted CO2-free electric
power utilizing environmental value derived from hydroelectric and solar power generation (non-feed-in-tariff/
non-fossil-fuel certified ), and expect to reduce CO2 emissions by roughly 85% compared with before introduction.
In addition, a feature of the brass products manufactured by KITZ Metal Works Corporation is the ease of recycling. By promoting even greater recycling, the company
will strive to reduce its environmental impact.

Brass Bar Manufacturing Process❸ Cutting
The slabs are cut into billets (intermediate
products) of predetermined length ready for
extrusion, using a large-scale cutting machine.

❹ Heating and extrusion
The billets are heated to the prescribedtemperature, and extruded into rods or coils
using an extruder.

❺ Continuous pickling
Oxides that have become attached to thesurface of the alloy during the extrusion
processes are removed by pickling.

❻ Cold drawing
The rods and/or coils are passed through the dieof a drawing machine to finish them into brass
bars with accurate shapes and dimensions.

❼ Straightening and cutting
Bends or curvature in the bars are straightenedout using a straightener. The bars are then cut tothe prescribed length.

❽ Low-temperature annealing
The bars are subjected to low-temperatureannealing at the prescribed temperature inorder to remove residual stress and to adjust
their hardness.

❾ Measurement, packing and shipping
Completed bars are bundled and packed to theprescribed weight and/or quantity before being
delivered to customers.

Growth Strategies❷ Continuous casting
The molten alloy is cast into large ingots (called“slabs” or “cakes”) using either a water-cooled
horizontal continuous casting machine or avertical semi-continuous casting machine.

Value Creation Story❶ Composition and melting of raw materials
The raw materials are melted in an induction
furnace.

Sustainability

Suwa, Nagano Prefecture, is the birthplace of KITZ founder Toshio
Kitawaza. In addition to KITZ Corporation’s Chino and Ina plants,
many of the plants and offices of the KITZ Group are located in thesurrounding area, including KITZ Metal Works Corporation and KITZ
Micro Filter Corporation.
Hotel Beniya is one of the largest resort hotels in the Kamisuwa
Onsen hot spring area and boasts a diverse range of spa facilities,
including a hot spring bath with outstanding panoramic views anda fully-equipped ganbanyoku (hot stone spa). The hotel is used not
only by tourists, but also by local residents as a place for relaxation.
Hotel Beniya also operates the Suwako Service Area on the
Chuo Expressway (outbound) and the Tobu-yunomaru Service Area
on the Joshin-etsu Expressway (inbound) serving food incorporating local specialty produce and selling local goods and souvenirs.

Data Section

Hotel Beniya is also a KITZ Group company.

32

Financial Strategy

Message from the CFO
We will aim to improve the returnon invested capital in the medium
to long term by adopting ROIC
management.
Kenichi Bessho
Executive Officer and Division Manager, Corporate Finance Division

Initiatives in the Fiscal Year Under Review (FY2022)
In the fiscal year under review, the outlook was uncertain due
to inflation driven by sharply rising material prices caused bygeopolitical risks in China and Russia, among other issues.
However, we managed to increase net sales and profits year
on year, in part due to price revisions and the impact of foreign exchange rates.
Under these circumstances, despite an increase in notes
and accounts receivable and inventories due to soaring raw
material prices along with higher investment expenditures,
we managed to secure free cash flow of ¥1 billion on the backof increased profits. While we issued Sustainability-Linked
Bonds, a first for KITZ, to fund bond redemption in anticipation of rising interest rate risks, interest-bearing debt declinedby ¥1.3 billion year on year due to loan repayments and bondredemptions. However, partly due to investment expenditures, net interest-bearing debt increased ¥2.2 billion year on
year. The equity ratio rose by 3 points year on year to 59%,
in part reflecting increased profits and higher translation●

Change in Cash Flow

(Millions of yen)

10,0005,000

10,0696,941(125)

10,024
7,645 8,280 8,541
5,288
5,044
1,070

804

(10,000)2017(9,264)2018

Investing Cash Flow
Free Cash Flow

33

(7,471)(8,040)2019

Change in ROE

2020

2021

10

10.0
8.7
7.4

8

2022 FY

Operating Cash Flowat least 9.0

6.4

6.5

6

2.8

4

(2,379) (3,236)(7,066)In the fiscal year under review, the first year of the first
Medium-term Management Plan, we placed a focus on
improving return on invested capital over the medium to longterm, adopted ROIC management internally to improve theexternal target ROE and developed an ROIC Tree that links
those elements with KPIs in the field. From FY2023 we will
implement KPI management and further advance ROIC management. On the profit/loss front, we will strive to improve
profitability by visualizing the product portfolio, considering
rearrangements, and reviewing unprofitable products. On
the asset front, we will make efforts to improve the CCC*1
by reducing inventories and taking other measures while
continuing with asset compression efforts, including surplus
funds. In addition, to ensure future growth and earnings(%)

0(5,000)Medium-term Financial Strategy and Capital Policy●

13,32915,000adjustments. ROE was 10%, achieving the FY2024 target of
8% ahead of schedule. We will continue to maintain ROE at astable level of at least 9%.

2
0

2017

2018

2019

2020

2021

2022

2024 FY
Target• For the fiscal year ended December 2020, which was an irregular period
due to the change in the fiscal year-end, the financial results are for anine-month period.

(R&I), registered a total of ¥20 billion in new corporate bondissuance capacity and also obtained an A rating from Japan
Credit Rating Agency, Ltd. (JCR).
While the majority of the operating cash flow generated
over the three years of the first Medium-term Management
Plan will be mostly allocated to the investment budget, a
positive free cash flow will be maintained over the three years
on a cumulative basis. Additionally, while we aim to improvefunding efficiency by reducing cash on hand, we will continue
to maintain risk response capabilities with a short-term special credit line of ¥13.5 billion from major banks, thus ensuringliquidity on hand.

Value Creation Story*1 CCC: Cash Conversion Cycle*2 SPT: Sustainability Performance Target

Shareholder Returns

Sustainability

Returning profits to shareholders is an important management issue, and KITZ has set around 35% of net income attributable to owners of the parent as a preferred consolidated
payout ratio level. Dividends in the year under review were arecord high of ¥33 per share, resulting in a consolidated payout ratio of 34.6%. We will also consider share buybacks as
appropriate, taking into account financial stability, liquidity
on hand and the state of investment funding. Also note thata dividend of ¥33 per share is planned for FY2023, and we will
pay dividends considering continuity and stability.

Growth Strategies

potential, we will set strategic investment allocations with afocus on growth fields and new fields such as semiconductors,
fine chemicals and hydrogen. We will continue with proactive
investment and work to achieve the target ROE of at least 10%
as declared in the Long-term Management Vision. Further, toenable contributions to sustainability management, we will
also aim to enhance social value by achieving the CO2 reduction targets stated as an SPT*2 for the Sustainability-Linked
Bonds issued in the fiscal year under review.
KITZ places an emphasis on improving capital efficiency
and shareholder return. At the same time, to respond tochanges in the management environment and risks while
securing funds for strategic investments, we have set thefinancial and capital strategy of maintaining an appropriate
capital structure that takes into account the ability to procure
funds in addition to return on invested capital. More specifically, we will target an equity ratio in the neighborhood of
55-60%, enabling us to improve measures of capital efficiency
such as ROE while responding to business risks.
In addition, to enable the implementation of flexible
financing including strategic investments and bond redemption, we have endeavored to maintain an A rating for our corporate bonds with the aim of maintaining good relationships
with banks while also ensuring sufficient borrowing capacity
for the issuance of publicly offered bonds. We have obtainedan A- rating from Rating and Investment Information, Inc.

The First Medium-term Management Plan Financial Strategy and Capital Policyn To enhance the corporate value, we have set “improving return on invested capital over the medium to long term" as the core management

objective, and are managing ROE externally and ROIC internally as the main KPIs.
n On the other hand, we will execute strategic investments and raise the necessary funds for future growth and ROE improvement.
n We also aim to enhance our social value by promoting sustainability management through the issuance of Sustainability-Linked Bonds.

FY2024: at least 9%
FY2030: at least 10%

n Introduction of ROIC management:(1) Profitable improvement(2) ROIC Tree deployment and PDCA management (3) CCC improvement and asset compressionn Proactive strategic investment: Ensuring growth and profitability for the future

Data Section

ROE target

n Preservation of optimal capital structure and Ensuring borrowing capacity: Flexible financing and risk response capability

Accumulated Operating Cash Flow ¥38.0 billion yen (FY2022-2024)
Investmentn Total investment limit 37.0 billion yen(Strategic investment limit 24.0 billion yen)Semiconductors, fine chemicals, hydrogen, DX,and environmental measure
M&A

Target of optimal
capital structure

Shareholder Returns

Debt repayment / Financing

n Keeping previous policy: approx. 35%

n Preparing for an uncertain business

Share repurchases will be conducted to ensure financial stability andimprove the quality of our operations. Consideration will be given as
appropriate, taking into account the liquidity of cash on hand and thestatus of investment funds.

environmentn For strategic investment

Flexible financing■ Risk response capability: Equity Ratio Target 55 to 60 % Commitment line of short-term loans from banks (Current state: 13.5 billion yen)
■ Corporate Bond Rating: Maintain A (Current Rating: R&I

A –[May. 2022]; JCR A [Nov. 2021])
Preliminary Rating for Corporate Bond Issuance (R&I): A –(20 billion yen; Oct. 2022 –Oct. 2024)

34

Sustainability

Message from Director in Charge of Sustainability
We will continue to proactively
take on the challenge of new things
with the aim to become a 100-yearcompany.
Toshiyuki Murasawa
Director, Managing Executive Officer, Division Manager, Corporate Planning Division

Promoting Sustainability Management
Since its founding in 1951, the KITZ Group has championed
regional development in the places it does business and also
pursued environmental conservation activities to fulfill its
corporate social responsibility (CSR).
We are now in the midst of a great swell, with changes
to the global environment never experienced in the past,and phenomenal advances in technology. To continue beinga sustainable company under these conditions, we mustsustainably grow and enhance corporate value, while at thesame time solving social issues and creating social value.
Managing these two essential dimensions in tandem are whatis expected of us. We believe that this creation of shared value(CSV) is linked with the trust of society. This is what we see assustainability management.
In the Long-term Management Vision unveiled in
February 2022, we placed sustainability management at
the core of our management strategy. To coincide with theLong-term Management Vision, we have formulated key sustainability management themes, and in December 2021, aGroup-wide Sustainability Promotion Committee was established following a resolution by the Board of Directors. The
committee will share priority themes and key performanceindicators (KPIs) on a group-wide basis and manage progress
toward the achievement of targets.
In our bid to become a 100-year company that achieves
growth and development a decade from now, we will continue to actively pursue challenges rather than remaining
content with the status quo. We will further evolve the fluid
control technologies we have cultivated with valves andaspire to “Beyond New Heights” with a sense of speed and awillingness to take on challenges and build a “New Flow.” Asa member of the global community, we will continue to be acompany that strides boldly toward 2030 to help shape a society that can be left in the hands of future generations.
Basic Policy on Sustainability(Keystone of medium to long-term sustainability(ESG) related targets, planning and operation)

Key Themes for
Sustainability Management

Our aspirations for 2030
KITZ’ Statement ofCorporate Mission

Technology/Solutions

Environment●Long-termManagement Vision

Core Business/Growth Business

Beyond New Heights 2030
Change the ‘Flow’

Environmental Conservation
through business●Social

Do it

35

Way

Diverse Human Resources

Governance

Sustained improvement ● Corporate governancein employee engagement ● Risk management● Building a sustainable● Compliancesupply chain●

Action Guide

Carbon neutrality
Resource recycling
Innovation

Basic Policy and Slogan on Sustainability
The Basic Policy on Sustainability is the keystone of sustainability management, and the Slogan on Sustainability
is a guide for employees to recognize and embody theimportance of what will change and what will be protected ina rapidly changing world.

Value Creation Storyl	Basic Policy on Sustainability
To realize “KITZ’ Statement of Corporate Mission”, which expresses the KITZ Group‘s corporate philosophy, we will work toward thefollowing:
1. Strive to increase both corporate value and social value by delivering solutions to social challenges through our businesses
2. Be an enterprise that deserves society’s trust, through realizing efficient, fair, and transparent, highly ethical corporate
management
3. Build unshakeable relations of trust through dialogue with all stakeholders
l Slogan on Sustainability

Preserve the Future
The KITZ Group will continuously protect the earth’s finite resources and people’s lives andwill work to realize a society in which we can preserve things for the next generation.

Sustainability Promotion Structure(1) Promoting integrated sustainability management group-wide

Goals(2) Ensuring sustainability management takes root in individualcompanies and sections(3) Sharing priority themes and measures for sustainability
management, formulating KPIs for individual companies andsections and revising plans

Chairperson

General Manager, Corporate Planning Division

Membership

Executive Officers, presidents of KITZ Group companies

Administrative
officeSustainability Promotion OfficeFrequency of
meetings

Twice a year

Disseminating Sustainability Management and the SDGs InternallyRunning KITZ Group Sustainability Month 2022
Since FY2021, KITZ has run internal events to promote anunderstanding of sustainability management and the SDGs
as well as provide an opportunity to think about them as
their own. In FY2022, KITZ Group Sustainability Month 2022
took place in November. Based on the concept of “learning
about sustainability in fun and exciting ways,” the committee
members, openly recruited internally, spent four months fromorganizing ideas to making preparations and operating theevent. The highlight of the Month, “Sustainability Site Bus
Tours,” offered employees and their families chances to visit
different facilities producing energy for in-house use, including
a nearby hydroelectric power plant and hydrogen production
facility. Another event to promote knowledge about the 17

Data Section

I n Fo c us

Sustainabilityl Group-wide Sustainability Promotion Committee
In December 2021, the KITZ Group established the Groupwide Sustainability Promotion Committee to promote
integrated sustainability management throughout theGroup. The committee shares the key themes and KPIs forsustainability management and exchanges information on
issues and their measures at each company and section, thus
managing progress toward the targets. The Board of Directors
receives reports on the progress and results and deliberates
on improvement measures as deemed necessary.

Growth Strategies

Create the Future /Preserve the Future

Create the Future
The KITZ Group will act and take on challenges without fear of change and create a new
future aimed at realizing a recycling-based society which is friendly to the earth and people.

SDGs was the“SDGs Quiz Stamp
Rally.” Participants
scanned QR codeson the SDGs icons
placed at various
locations around offices and plants and took quizzes about
each goal, deepening their understanding in a fun way.
Through Disseminating awareness of the SDGs internally,
we will promote human resources development thatenables each employee to link the company’s sustainability
management to their own work, and then think and act
accordingly.

36Key Themes for Sustainability Management
In February 2022, the KITZ Group announced its Long-termManagement Vision. At the same time, we established five key
themes for sustainability management and quantitative targets up to FY2030. Each year, the Group-wide Sustainability
Promotion Committee checks progress toward these targets.

E(Environmental)
KITZ has declared carbon neutrality and resource recycling
as one of its key themes for sustainability management andpromotes CO2 emission reductions as well as efficient energy
and resource usage in an effort to take on the challenge. We
will further strengthen our Long-term Environmental Vision“3 ZERO” and disclose information in line with the TCFD recommendations. We are creating innovations with the key concepts of decarbonization and water resources, based on thefluid control technologies and material development that wehave cultivated over many years.
*For information about KITZ’s Long-term Environmental Vision and disclosuresconsistent with the TCFD recommendations, see pages 38 and 41, respectively.

S(Social)that each and every employee, regardless of gender, age,nationality, or culture, can work in high spirits at maximum
performance as professionals. To that end, one of our
key themes for sustainability management is continuous
improvement in employee engagement. In addition, we work
to develop sustainable systems that take into account humanrights, the environment, labor, and other concerns not onlyinternally but also in the supply chain.
*For information about KITZ’s employee engagement and supply chain
management, see pages 43 and 42, respectively.

G(Governance)
KITZ has declared “Do it True” as one of the elements in its
Action Guide and engages in fair and equitable corporate
activities to meet the expectations and trust of society.
Moreover, to “be an enterprise that deserves society’s trust,through realizing efficient, fair, and transparent, highly ethicalcorporate management” as declared in the second item of our
Basic Policy on Sustainability, we conduct management thatemphasizes corporate governance, risk management, andcompliance.
*For information about KITZ’s governance, see page 50.

In our Long-term Management Vision, we aim to ensure

Key Themes for
Sustainability Management

Innovation· E conomic growth throughinnovationof fluid control technology to support decarbonization/hydrogen society· T ransition to a decarbonized Development
Development of materials that contribute to reducing environmental impact
society
Initiatives
tosolve
social issues related to limited water and fluids·D epletion of water
resources

Sustainable improvement of
employee engagement· Decline in the working-age
population· Respect for human rights· Active role played by diverse
human resources· System and environment fora better workplace· A rewarding work culture

Social esponsibilities in the
Building a sustainable supply · Rsupply
chain surrounding
chain
the Company

GovernanceCorporate governanceRisk management
Compliance

Permeation of corporate philosophy and long-term
management vision
Promotion of D&I and fostering of a culture ofcollaboration
Human resource development and system reforms to
support global management
Realization of a workplace environment in which
employees can work with vitality

CO2 reduction rate -90%
Waste landfill disposal rate Less
than 1.0%
Water resource usage -100%*1(Compared to FY2013)

Employee engagement score*2“Rewarding work culture” 56 pt“Better work environment” 55 pt% of female managers: 20%*3
Total working hours: 1,870 hours% of male employee taking
childcare leave: 100%

Emphasis on CSR procurement
Establishment of a structure for stable procurement of raw materials and parts· Sustainable corporate
Further enhancement of transparency in management decision-making
management
Risk management that focuses on both risk reduction and opportunity creation· Corporate fraud and scandals Global compliance conducive to sustainable management*1 Scope: Process water used in the manufacture of valves, etc. *2 FY2024 target *3 Employees of the department manager

37

FY2030 Quantitative Targets

Carbon neutrality
Resource recycling

E

G

Specific Initiatives

Initiatives for realization of Long-term Environmental
Vision “3 ZERO”(1) Net zero CO2 emissions(2) Zero environmental impact• Water neutrality(Promote water saving, circulation, and recharge)• Zero emissions· T ransition to a decarbonized(Promotion of the 3Rs, recycling of casting sand,societyetc.)· Depletion of resources(3) Zero risk
· Increase in waste• Zero environmental accidents (Environmental
pollution)• Zero occupational accidents (Serious accidents
and LTIF rate)• Zero fire accidents (accidents involving fire or
explosions)

Environmental

S

Social Issues

Relationshipwith theSDGs

Environmental
The KITZ Group has established targets for environmental conservation on a global scale based on its
Principle of Environmental Activities and Environmental Action Policy. The Group is making a unitedeffort to achieve a sustainable society.

KITZ Group companies aspire to become operations worthy of society’s confidence through the supply of environmentallyfriendly products and services and promotion of environment-responsive corporate activities.

KITZ Group Environmental Action Policy

Philosophy and Initiatives for Environment-Responsive Management
KITZ will conduct activities in accordance with the aforementioned principle and action policy on the basis ofachieving a balance between risk prevention and cost reduction. This balance is based on our philosophy thatpreventing environmental risks such as soil contamination through proactive environmental conservation activities
minimizes potential future costs; and that we can reduce other costs and make a broad contribution to society bythoroughly reducing waste generated by our business activities.

Risk prevention

Sustainability

Enhancement of corporate business infrastructure(Group-wide environment-responsive management)

Cost reduction

Balanced

Streamlining action processes

Building the basic structure
Human resource development
Visualization

Group activities
Application of management system

Reducing environmentallyhazardous substances
Combating global warming
Common issues (handling of waste and water)
Care for local communities
Prevention of future risk

Data Section

Enhancing management system

Growth Strategies

KITZ Group companies shall recognize environmental issues as an essential perspective of corporate management andevery employee shall positively participate in the following activities.
1. Development and supply of environmentally friendly products and services
2. Effective use of resources
3. Promotion of reduction, reuse and recycle of waste
4. Prevention of environmental contamination

Value Creation Story

KITZ Group Principle of Environmental Activities

Long-term Environmental Vision
It is because manufacturing that takes the environment andsafety into account is essential that we formulated our Longterm Environmental Vision “3 ZERO” and tackle three key
issues.
Under Net Zero CO2 Emissions, the first key issue, by having
all domestic Group companies switch to renewable energy for
their electricity by the end of FY2024, KITZ will work towardachieving the mid-term environmental goal of at least 90% CO2
reduction from 2013 levels by 2030, and the long-term environmental goal of becoming carbon neutral by 2050.
Under Zero Environmental Impact, the second key issue,
we are working on three themes: effective use of water
resources that are closely related to valves; reduction of waste

Long-term Environmental Vision 3 ZERONET Zero CO2 emissions

Zero environmental impact Zero risk

Promotion of de-carbonization Promotion of resource recycling Prevention of 3
(Environmental Pollution,
Occupational Accidents, Fires)-Water Neutral

Promote water conservation,
circulation, and recharge-Zero Emissions
2030

2050

-90%* -100%		

Carbon neutrality*Compared to 2013,
Domestic Group Companies/Offices

Promotion of the 3Rs
Promotion of recycling of castingsand
Consideration for packaging
materials
Promotion of paperless system
Promoting Green Procurement-Pollution Prevention-Zero environmental
accidents

Environmental pollution: 0
incidents(wastewater, VOCs, etc.)-Zero occupational accidents
Serious accidents: 0 incidents
Disabling injury frequency rate:
less than 0.10

-Zero fire accidents

Fire and explosion accidents: 0

Elimination of VOC (paints, chlorine
solvent)38

generated by plants and offices; and promotion of manufacturing without organic solvents to minimize not only air andsoil pollution but also the impact on the health of employees.
Under the third key issue, Zero Risk, we are working tomaintain safe and secure manufacturing and stable operations through activities to prevent occupational accidents,
environmental pollution, and fires.

Initiatives toward a Decarbonized Societyl Switching to 100% CO2-free Electricity at Main
Manufacturing Facilities in Japan
Starting in April 2022, KITZ has adopted CO2-free Shinshu
Green Denki electricity and makes maximum use of the abundant water resources in Nagano Prefecture in Japan, where
many of the KITZ Group’s manufacturing facilities are located.
KITZ has also adopted CO2-free electricity utilizing the environmental value of hydroelectric and solar power (non-feedin-tariff/non-fossil-fuel certified) at eight business sites inJapan. As a result, 100% of the electricity used at these sites
is CO2-free. Going forward, we will continue to systematicallyintroduce these changes to switch more of the electricity usedby our main business sites in Japan to CO2-free electricity.

lConversion to LNG Fuels at Ina Plant
At the Ina Plant, Bunker A and LPG (liquefied petroleum gas)
were previously used as energy for boilers and heaters. In
October 2022, a storage tank for LNG (liquefied natural gas)
was constructed in the plant, and fuel conversion started in
January 2023.

Developing and Providing Environmentally Friendly
Products and Services
Based on the KITZ Group Environmental Action Policy, we
focus on the development of eco-friendly products aimed atenvironmental innovation while enhancing Group synergy. In
addition to implementing evaluations from the technologicaldevelopment phases in accordance with the Guidelines forEnvironmental Impact Reduction Evaluation Standards, we
carry out score-based evaluations of technological development activity items (material development, process development, design development) in terms of environmental impact
reduction as well as the necessary quality, functionality, andeconomic rationalization. In the future, we will build mechanisms to consider CO2 reductions during evaluations in thetechnological development phase.

Environmentally Friendly Products
Valves for hydrogen stations

Lead-free products

RoHS Directive-compliant
products

Sterilization, purification andwater treatment device(Pureculaser)

Ultra-high pressure valves used inhydrogen stations

Products that comply with harmful
chemical substance regulations
such as the RoHS Directive

Valves for water and heated watersupply made from lead-free copper
alloy materials that clear lead
leaching standards for tap water

Water treatment device thatsterilizes and purifies water
through the synergistic effects ofozone, UV rays and photocatalysts

Portable membrane filtration
device (Aqua Rescue)

Temporary equipment for the repair or
renovation of existing filtration
facilities and as emergency treatment
equipment for the sudden deterioration of water sources

By switching to CO2-free electricity and converting to LNG
fuel, CO2 emissions by domestic Group companies in FY2022
amounted to 22,220t*, a CO2 reduction rate of 66.2% compared with FY2013 levels. KITZ will continue to reduce CO2 toachieve the targets of its Long-term Environmental Vision.
*Provisional figures as of March 29, 2023

39

KISMOS (KITZ SMART
MONITORING SYSTEM)

Preventive solution for valve
problems using solar panels

Environmental News

*1 Project Name: Development of Technologies of Carbon Recycling and NextGeneration Thermal Power Generation, etc. / Development of Technology for
CO2 Separation, Capture, etc.
*2 Research and development is being jointly conducted by three parties, Kyoto
Institute of Technology, TOSOH Corporation and Tokyo Institute of Technology.

Growth Strategies* A technology using electricity from renewable energy, etc., to produce hydrogenthrough water electrolysis.

l Joint Participation in Research and Development of CO2
Separation and Capture Technologies
KITZ Group company KITZ Micro Filter Corporation is jointly
participating in “Research and development of an effective
CO2 capture process with novel CO2 separation membrane
modules”*2 as a subcontractor to Tosoh Corporation in a
NEDO project*1.
The project is designed to develop technologies for a
CO2 separation membrane for process gases and exhaustgases with a CO2 concentration of more than 10%, and KITZ
Micro Filter is responsible for the development of hollow fiber
membrane supports that are ideal for this use, as well as the
manufacturing and development of hollow fiber membrane
modules.

Value Creation Storyl KITZ Concludes Basic Agreement on Green Hydrogenwith Yamanashi Prefecture
KITZ signed a basic agreement with Yamanashi Prefecture tocollaborate on the use and the wide adoption of green hydrogen as part of demonstration and research into a P2G system*in order to develop a hydrogen society.
Under the agreement, green hydrogen produced with a
P2G system at the Komekurayama P2G Demo Site (Kofu City),
which is a NEDO-commissioned project, is transported to the
Nagasaka Plant and used as fuel for fuel cell-driven forklifts
and other equipment at a hydrogen station located in theplant.

Development of
separation function layer

Hollow fiber
membraneDevelopment of
supports

Actual exhaustgas test

Treatedgas
Utilization ofhigh-purity CO2
chemical productsl Expansion of Solar Power Generating System at Thai
Production Site
Group company KITZ (Thailand) Ltd. has expanded its solar
power generating system as an effort to achieve Net Zero CO2Emissions, and began operation in September 2022. Solarpanels have been installed at the main Bangplee Plant since2016, but the latest expansion of 2,112 panels brought the
total to 3,612 panels.
The power generated by the solar panels accounts for
10.3% of the average monthly power usage at the Bangplee
Plant in 2021, with CO2 emissions reductions equivalent to 753
tons* annually.

Data Sectionl Development of Water Treatment Equipment for the
Effective Use of Water Resources
KITZ operates KITZ Water Solutions as an activity to comprehensively utilize the water-related technologies, products,
and services of the KITZ Group companies and propose solutions to customers. As a result of these activities, KITZ has
developed water treatment equipment that purifies groundwater to drinkable levels. The equipment makes use of thetechnologies of the membrane filtration type water purification system of Shimizu Alloy Mfg. Co., Ltd. and the sterilization and purification treatment equipment of Toyo Valve
Co., Ltd., which are KITZ Group companies. Even when thewater supply is cut off in emergencies, it is possible to supply
groundwater and industrial water as safe and secure water in
combination with in-house power generation equipment.

CO2 emission source

Optimization of separation process

Sustainability

Exhaustgas
Steam sweep*Estimated by KITZ based on Japanese standards

40Please visit the website for more information

TCFD Recommendations
In order to phase in the disclosure of information about the financial impact of climate change, KITZ indicated its support for therecommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in December 2021. Future scenarios were formulated in line with the recommendations to analyze the impact of climate change on KITZ. The following summary has been disclosed in accordance with the four categories in the TCFD recommendations (governance, strategy, risk management, and metrics
and targets).

lGovernance
The Management Conference made up of executive officers
confirms the progress and results of major items in our Longterm Environmental Vision, and makes decisions regarding
direction, issues, and necessary matters. Matters of particular importance are referred to the Board of Directors fordeliberation and decision. In addition, at the Group-wide
Sustainability Promotion Committee meetings held twice ayear, key themes and KPIs related to sustainability management including climate change are shared, and issues andmeasures to deal with them are implemented.
lStrategy
Regarding our strategy on climate change, based on thesocioeconomic scenarios indicated in a report issued by the
IPCC*, we have identified major risks, opportunities, and otherfactors and conducted a financial impact analysis. The following are the pillars of our strategy accordingly. We pursue initiatives based on this strategy.
*IPCC: The Intergovernmental Panel on Climate ChangelRisk Management
We are taking action to continually reduce climate changerisks based on the KITZ Group’s basic policy and evaluation
standards for risk evaluation.
We follow a process where potential risks, including climate change risks in the business activities of the Group companies, are identified, with the Board of Directors deliberatingover and making decisions regarding response policies.
Please refer to the website for details about our response to climate change(disclosures consistent with the TCFD recommendations)lMetrics and Targets
Under Strategic Pillar (1), we promote our Long-term
Environmental Vision “3 ZERO” with the aim of reducing ourCO2 emissions by at least 90% compared with FY2013 levels
by FY2030, and achieving carbon neutrality by FY2050.
Base Year

CO2
EmissionsTarget Year

Reduction Target Business
Rate
Sites

Scope of Calculation

FY201365,933
tons

FY2030At least-90%

All businesssites inJapan

Scope 1 and 2
Electricity,
Kerosene, Light Oil,
LPG, LNG, etc.

We will set metrics and targets for strategic pillars (2) and (3) based on the status of future
initiatives.

Categories

Opportunities

Financial Impact*

Technology

SmallMarketDecline in demand for valves due to a shrinking market in fossil fuel-related fields such as
petrochemicals

Small

Acute

Stagnation in the supply chain due to an increase in natural disasters

Chronic

Increased costs from the operation of air conditioning and cooling equipment due to averagetemperature increases

Small

Development of valves for the supply chains of hydrogen, NH3, etc.

Large

Development of valve business for LNG plants

Large

Transition Risks

Physical Risks

Details of Risks and Opportunities

Increased costs of conversion and transition to fluid control technologies and materials that
achieve low-carbon performance

Products andServices

Small to Moderate*Expected financial impact is categorized as “small,” “moderate” or “large”

Strategic Pillars(1) Contribute to climate change mitigation through the reduction of KITZ’s CO2 emissions and the efficient use of resources and energy(2) Contribute to climate change mitigation by promoting CO2 emission reductions through KITZ products(3) Contribute to the creation of a sustainable future by working with local communities on climate change mitigation measures

41

SociallDesired Personnel
Through its investments in humanresources, the KITZGroup aims to be acompany that continues to be the choice ofprospective employees.
“Do it True” (referring to sincerity and the truth) is the first
Action Guide at KITZ. Being sincere, being serious, and complying with the rules and morals of society are the values that
the KITZ Group considers to be the most important. We also
consider these values to be the essence of KITZ’s outstanding corporate culture. The Action Guides that follow theseare “Do it Now” (referring to speed and timeliness) and “Do it
New” (referring to creative ability and challenges). To swiftly
respond to a world that is rapidly changing, we need agile
business expansion and the ability to come up with and act
on ideas that fall outside conventional thinking. We aim to
be a professional group that boldly takes on new challenges
and where employees can deploy their own latent creative
powers.

Supply Chain Management[Survey Outline and Results]- Applicable suppliers: 214 key domestic and overseas suppliers
selected based on KITZ criteria from among major suppliers
related to manufacturing- Survey details: A total of 21 questions were set based on the
Guidelines and the Procurement Standards- Assessment method: Verification of compliance or non-compliance for each question, and responses to questions pertaining
to key issues for FY2022- Number of respondents (response rate): 203 of 214 companies(response rate of 95%)
Please visit the website for details about KITZ’s supply chain management

lHuman Resource Development
In human resource development, KITZ promotes two themes,
displaying human resources competency and displayingorganizational capacity. To achieve these themes, we support
the development of motivation, skills, and opportunities todemonstrate potential through a wide range of in-house educational programs.

Data Section

lImplementing Supplier Due Diligence
Initiatives on respecting human rights are something we cannot realize alone. To have our business partners understand
KITZ’s vision and values and to implement initiatives throughout the entire supply chain, we have formulated Supplier
Guidelines and Green Procurement Standards that incorporate items on respect for human rights.
In FY2022, KITZ conducted a survey (self-assessment) of
its major suppliers based on these guidelines.
From FY2023 onwards, we will phase in these initiatives at
Group companies and develop procurement activities to build
a robust global environment and sustainable future as declaredin our Corporate Mission.

Sustainability

Initiatives Supporting Human Resources

lBasic Concept of Respect For Human Rights and Code of
Conduct
The KITZ Group supports the Universal Declaration of Human
Rights, an international standard concerning human rights,
and has also expressed its support for the United National
Global Compact (UNGC). The spirit of the UNGC conforms
to the spirit of the KITZ Group’s corporate philosophy, andwe strive to put the Ten Principles of the UNGC into practicegoing forward.
Under the KITZ Group Compliance Code of Conduct,
which calls for respecting the individuality and human rights
of all individuals, we do our utmost
to enable each and every KITZ Group
employee to act based on thinking in linewith the relevant guidelines, conscious of
their roles as members of a global society.

Growth Strategies

Respect for Human Rights

Value Creation Story

The KITZ Group aims to be an organization in which each employee can work with vitality anddemonstrate the highest levels of performance as a professional, regardless of attributes, such as gender,
age, nationality, and culture. We are also making progress on the development of environments to
support our human resources as they continue proactively taking on challenges with a sense of urgency
and ambition, demonstrating the creativity that is inherent in each and every employee.

Basic Concept for Human Resource Development
1. We will provide support to those who seek to improve
themselves based on self-development.
2. Supervisors will conduct systematic on-the-job training(OJT) with the aim of having employees gain the practicalskills and knowledge necessary to properly carry out theirduties in the workplace.
3. Education (group training) outside the workplace will be
provided to supplement and accelerate OJT.
4. Ongoing human resource development will be pursued byincorporating human resource development into challengegoals (personal goals).

42

Initiatives toward Enhancing Employee Engagement
KITZ regards constant improvements to employee engagement as one of the key themes of sustainability management and conducts engagement surveys for ascertaining
the current state of our organizational culture. In FY2022,
these surveys were rolled out to the domestic Group companies in addition to KITZ. Along with being reported to management, the results are provided as feedback to individual
workplaces and also utilized to verify and analyze the current state of the organizational culture. Accordingly, we set
specific action plans and target figures to improve employee
engagement.

Employeeengagementscore

FY2021 Results

FY2022 Results

FY2024 Targets

Rewardingwork culture

48pt

48pt

56pt

Better work
environment

43pt

44pt

55pt

l Initiatives at Main Divisions
Production Division
Theme: Enable employees to feel that “I can do my best for thecompany” and “Do our best for employees”- Holding forums for employees to engage in dialogue with theDivision Manager of Production Division- Establishment of a project for working style and workplace environment improvement- Drafting plans, allocating budgetary funds, and disclosing information on the intranet portal
National Sales Division
Theme: Instill employees with the company vision and improve
the human resource development environment- Having managers share development issues and solutions specific to employee tiers- Conducting training on coaching, time management, etc.
Engineering Division
Theme: Join forces as “collective wisdom” and instill the idea of“working as a team” to solve issues toward a common goal
- Conducting training on the concept of “working as a team”• Non-consolidated basis

lDiversity and Inclusion Initiatives
KITZ promotes diversity and inclusion as an important management strategy.
We have declared targets for the percentage of female
employees and percentage of female managers to beachieved by FY2030. We are pursuing specific initiatives
aimed at achieving these targets.
Qualitative
Targets

Main KPIs% of female
Women in the employees
workplace% of female
managers
LGBTQ
Earningunderstanding Pride Index% of
Employment
employeesof people withwithdisabilities
disabilities

FY2021 Results FY2022 Results FY 2024 Targets FY 2027 Targets FY 2030 Targets

21.7%

22.0%

23%

24%

25%

Qualitative
Targets

3.4%

3.4%

10%

16%

20%

Enhancingwork-life
balance——

Preparingtraining
programs
2.4%

Conducting Earning Golde-learning for rating in Pride
Indexmanagers
2.4%

2.5%

2.7%

3.0%

• Non-consolidated basis• Managers refers to employees who are in the position of department head or
higher.
• Pride Index is an external index based on assessment of LGBTQ initiatives.

LGBTQ Inclusion
KITZ respects diversity in gender identities, sexual orientations, and values. To develop a comfortable environmentthat allows each employee to fully demonstrate their abilities
in their own way, we are striving to foster a corporate culture that is understanding and accepting of sexual diversity
among all Group employees. We have started activities tomake improvements to our systems and environments for
LGBTQ employees and to raise awareness of LGBTQ issues.
In FY2022, we conducted an e-learning program to instill
an understanding of LGBTQ issues among managers, and in
FY2023, we will expand these efforts to regular employees.

43

lPromoting a Healthy Work-Life Balance
To ensure that employees can continue working with peaceof mind, the KITZ Group has set targets to enhance work-lifebalance, support employees with childcare and family care
responsibilities, and promote health and productivity management. Through these efforts, we will develop an environment in which employees can achieve harmony between
work and private life.
Main KPIs

Shortening
total working
hours

FY2021 Results FY2022 Results FY2024 Targets FY2027 Targets FY2030 Targets

2,012
hours

1,944
hours

1,990
hours

1,930
hours

1,870
hours

29.0%

35.3%

50%

100%

100%

CertifiedHealth &Productivity CertifiedHealthManagement Management in 2022
Outstanding
Organization

Certifiedin 2023—

Certified
as “White500”—% of male
Support for
employees
employees
takingwith child andchildcarefamily careleave

• Non-consolidated basis

Conducting Briefing Sessions on Childcare Leave
KITZ has worked to develop a range of systems to allow
employees to continue working with peace of mind and fully
demonstrate their abilities while raising children. We haveset a goal of having 100% of eligible male employees taking
childcare leave by FY2027. In FY2022, we conducted briefing
sessions to give managers a general understanding of ourchildcare leave systems so that they can become leaders supporting employees who are raising children. Articles about
the childcare leave system have also been posted to theintranet portal.

Please visit the website for more information

Health and Safety Activities
We promote efforts to ensure zero accidents based on the KITZ Group Safety and Health Fundamental Philosophy and the Safety and
Health Fundamental Policies. We have established safety and health committees and we bolster efforts to prevent injuries and illness,promote the development of comfortable workplace environments, engage in healthcare and work to prevent traffic accidents.

KITZ places the highest priority on safety and health in all of its activities based on the principle of showing respect for people.
Group companies conduct extensive safety and health programs with the goal of zero accident.

KITZ Group Safety and Health Fundamental Policies

KITZ Group Safety and Health Activities Approach and Initiatives

Develop a management systeml Create frameworkl Make it visible

lEducation on Health and Safety
With the aim of eliminating occupational accidents, we conducted tiered health and safety training delivered by occupational health and safety consultants. The training is divided
into content for employees with limited experience, newly
appointed managers and supervisors, and veteran employees
who are familiar with the workplace. The training is designed
to underscore the importance of safety management and foster a strong awareness of safety.

l Measures for equipment and environment
l Measures for people

Create a workplace culture

l Activate small group activities

l Introduce enlightenment programslReciprocal Audits by Group Companies
Mutual audits regarding the environment, health, and safetyof KITZ’s eight Group domestic companies are conducted.
Audits are carried out to identify and assess risks, and briefing
sessions are held for the officer and the managers of each site.
These efforts lead to activities that reduce the spread of andeliminate risks.
In addition, to cultivate personnel who will be responsible for the environment and safety in the future, we conduct
training related to the environment, health, and safety.

Data Section

lEnhancement of Health and Safety Management Systems
To promote occupational health and safety management
compliance with international standards, in January 2022,
KITZ obtained certification under the ISO 45001 standard for
Occupational Health and Safety Management Systems forplants in Nagasaka, Ina, and Chino, followed by certification
for all production sites in Japan in November 2022.

Implement safety measures formachines, equipment and people

Sustainability

The company will address safety from two directions: “Enhancement of safety activities and systematic incorporation of
prevention measures into production lines” and “Promotion of volunteer activities at workplaces (bottom-up approach via
small group activities).” Through this two-pronged approach, the company will encourage a change in every employee’s
mindset and increase employees’ awareness with regard to safety, thereby reforming the corporate culture.
KITZ has formulated the following key actions as measures for employee safety and health with the aim of taking
preventive steps for safety and improving safety awareness.
l Develop a management system (comply with safety and health related laws and regulations)l Implement safety measures for machines,
Office safety activities
equipment and people (prevent similar accidents)l Create a workplace culture (promote zeroTake preventive steps
Improve safety awarenessaccidents)

Growth Strategies

1. KITZ maintains stimulating and pleasant workplaces that contribute to the mental and physical well-being of all employees.
2. KITZ is dedicated to ensuring safety and health of all employees by complying with Japan’s Industrial Safety and Health Act andother associated laws and regulations as well as by adhering to internal rules and standards.
3. KITZ improves safety and health management by educating and training all employees with regard to the knowledge and skills
needed for safety and health programs.
4. KITZ is dedicated to ensuring the safety of its machinery and equipment so that employees can do their jobs without concern.
5. KITZ reduces exposure to risk factors with the goal of eliminating potential sources of danger and harm to employees in workplaces.

Value Creation Story

KITZ Group Safety and Health Fundamental Philosophy

lHealth Management
KITZ has been certified as a Health & Productivity
Management Outstanding Organization, which is conferredby the Ministry of Economy, Trade and Industry to companies
engaging in outstanding
health and productivity
management activities.
44

Diverse Human Resources in the KITZ GroupWe introduce how employees work to create value at their own posts.
We aim to supply KITZ products to realize acarbon neutral society.

I try to convey my experience to other
employees for their own development.

Longtian Piao

Maria Luisa Ribas Steegmann

Hydrogen Supply & Unit Group, Hydrogen Division,
KITZ Corporation

Managing Director & President
KITZ Corporation of Europe, S.A.

I feel especially pleased when our
team manages to overcome a major
challenge to help other people so we
can satisfy the needs of a customer.
The trust placed in me to put me incharge of the management of one ofits companies has helped me togrow professionally and improve inother areas during the past 15 years,
and I try to convey my experience
also to other employees for theirown development.

I am responsible for work that covers
everything from the development ofhydrogen-related products and technology proposals to product delivery. In
the course of following one projectthrough to completion, I have accumulated a wide range of experience, andeach time I realize that I have achieved
personal growth. In the future, I will aim
to supply KITZ products across theentire hydrogen supply chain to help
realize a carbon neutral society.

I will adapt to the increasingly diverse roles
expected of an accounting department.

I feel happy to be facing new challenges
together with fellow KITZ Group colleagues.

Yoshie Suzuki

Takashi TakagiManager of Business Transformation and New Business, Corporate Finance
Division, KITZ Corporation

Managing Director
KITZ Valve & Actuation (Thailand) Co., Ltd.

Times have changed from the role ofaccounting as a safe keeper. I hope
to respond to the diversification of
the roles now expected of an
accounting department, including
data analysis and support for
management decisions, along withtaking on the challenge of reforming
workstyles in the back office.

I feel happy to be facing newchallenges together with fellow
colleagues who share the samecommon philosophy: the KITZ’
Statement of Corporate Mission.
Looking ahead, we will continue toengage in new challenges in order toenable us to evolve into a stronger
company in the global marketplace,and to contribute to society throughour activities.

Having been entrusted with a role ofresponsibility, I feel a sense of growth andmotivation.

I want to connect KITZ with customers fromthe standpoint of sales administration.

Naoki Kira

Kaori Kikumoto

Manager, Digital Transformation Promotion Group, Production Planning
Department, Production Division, Flow Control Business Unit, KITZ
Corporation

Osaka Sales Office 2, Osaka Branch, National Sales Division, Flow Control
Business Unit, KITZ Corporation

Employees are now working together on
activities aimed at the company’s digitaltransformation, and I am responsible forpromoting this at our plants. Although I
am still short on experience, being
entrusted with this role of responsibility
gives me a sense of growth and motivation on a regular basis. I will continue
to work hard to make KITZ better forcustomers, employees and society.

45

Using my perspective of sales administration, I have been involved in various
business activities from the launch ofa new IT system to the introduction oforder placement systems for our customers. Moving forward, I hope tocontinue doing work that connects KITZ
with its customers in a wide range ofways.

I feel proud to be improving people’s lives.

Tomoya Nakagomi

Marina Tedesco

Production Control Department Section Chief
KITZ Corporation of Taiwan

Chemical Engineer, Environmental Department
Metalúrgica Golden Arts Ltda.

Yuka Yoshihara

Masanao Takatsuka

Plant General Affairs and Accounting Section, Administrative
Department, KITZ SCT Corporation

Manager, Sales Engineering Department, Flow Control Business Unit, KITZ
Corporation

In addition to general affairs,
accounting, and human resource
management duties, I am the contact
point for consultations with employees, and I feel the need to acquire awide range of knowledge in this role.
I hope to embrace a mindset ofcompassion and gratitude with an
employee-first attitude while fulfilling a role as a bridge between
employees and the company.

Through involvement in employee
training related to technology, I feelthat I have improved my own knowledge and understanding, and when I
receive words of thanks for providing
technical support, it fills me withhappiness. I hope to instill a “cultureof learning about technology”
through the technical training
curriculum for salespeople.

I listen to requests from customers and sales
companies and support our global sales
structure.

I aim to establish quality assurance practices
that are trusted by customers.

Rika Miyasawa

Kumi Shimizu

Sales Company Support Group, International Business Development
Department, Flow Control Business Unit, KITZ Corporation

Manager, QA Operational Improvement Group, Quality Assurance Department,
Customer Satisfaction Division, KITZ Corporation

From Japan, I support KITZ’s overseas
sales companies in managing theirsales activities locally and independently. I make a point of sharing
the requests from sales companies
and their customers and aligningthem with the direction we need totake in the future. I hope to keep
contributing to the global sales of
KITZ products.

Data Section

I want to help a “culture of learning about
technology” take root through technicaltraining for salespeople.
Sustainability

I hope to fulfill my role with
an employee-first spirit.

Growth Strategies

I work to improve each process andconsider the environment in the areasof chemical engineering, environmental management, and occupational safety. Through involvementwith sustainability management, I
can contribute to the mission of
improving the quality of life of future
generations, and I feel proud to workin the KITZ Group.

When I joined KITZ, working overseas
was the last thing I expected. But
when I actually began working in
Taiwan, I had opportunities toexperience many new things, andeach time I gained a sense of personal growth. Moving forward, I willkeep working to maintain a broad
view of the world.

Value Creation Story

I hadn’t even imagined being posted overseas,
and with every new experience I feel personal
growth.

I carry out business improvement
activities that observe compliancerequirements and combine practicalexperience with business transformation. With the goal of establishingquality assurance operations that are
trusted by customers, I want todevelop an organization that can go
about its tasks with enthusiasm.

46

Social Contribution Activities
KITZ focuses its various social contribution activities on areas including regional development (regional
contribution), environment preservation, social and international contribution, and culture development.
Participation in the Multi-Organizational Disaster Relief Drill
Environmental Solutions Division participated in the 2022 MultiOrganizational Disaster Relief Drill (organized by Peace Winds Japan)
conducted in Aki District, Kochi Prefecture, in December 2022, as part of
KITZ Water Solutions’ activities.
At the water supply area of a field hospital set up on the banks of ariver, Aqua Rescue portable membrane filtration device by Shimizu Alloy
Mfg. were installed to supply water for general use such as showers, saunas and hand washing. In addition, using KITZ Micro Filter’s Super Delios
portable water purifiers that can be easily carried around, we purified
water taken from the river and promoted that the water could be used
to clean wounds or as drinking water.
Participants offered feedback, including “Having Aqua Rescue
would offer peace of mind because we would be able to secure sufficient amounts of water for daily use in shelters at evacuation points.”

Comprehensive Partnership Agreement with Chino City and
the Graduate School of Project Design to Achieve a “City
Chosen by Young People”
In July 2022, KITZ Corporation, together with Chino City, Nagano
Prefecture, and Advanced Academic Agency, The Graduate School of
Project Design signed an agreement on comprehensive cooperation
to realize a “city chosen by young people” based on 2nd Chino City
Comprehensive Strategy for Regional Development. To coincide withthe agreement, “Project Research into a City Chosen by Young People”
through collaboration between industry, academia, and government
was launched. Ten researchers, including three from KITZ, worked on abusiness concept to realize Chino as a livable future city through collaboration transcending corporations and partners for seven months starting in September.

Support for Kitazawa Museum of Art
KITZ supports the activities of the Kitazawa Museum of Art located on
the shores of Lake Suwa. KITZ founder Toshio Kitazawa established themuseum in 1983 as an incorporated foundation with the aim of contributing to the promotion and development of the regional culture. The
museum became a public interest incorporated foundation in 2013 andobserved its 40th anniversary in May 2023. The Kitazawa Museum of Art
permanently displays excellent pieces of artwork, including some of theworld’s best French glassworks made during the art nouveau era at theend of the 19th century and modern Japanese paintings. These works
are highly acclaimed both in Japan and overseas.

47

In Focus
Special supporting site

Yui Susaki

Yui Susaki took up wrestling at the age of seven under the influence of her
father, who had experience with the sport.
In her second year of junior high school, she entered JOC Elite Academy.
She achieved victory at the Tokyo 2020 Olympic Games competing while astudent of Waseda University.
In April 2022, she joined KITZ Corporation.
The following is a summary of her achievements since joining.

Value Creation Story

Gold medalist in the women’s freestyle 50 kilograms wrestling competition at the Tokyo 2020 Olympics

2022

Growth Strategies

June: Competed at the Meiji Cup All Japan Invitational Championships
September: Won the World Championships in September
October: Won the U23 World Championships
December: Won the Emperor’s Cup All Japan Championships
With her victory at the U23 World Championships, she achieved a worldfirst “grand slam,” a clean sweep of five tournaments, including the
Olympics.

2023● Profile
Sport/Class

Wrestling/50kg

Date of BirthJune 30, 1999

OriginMatsudo, Chiba Prefecture
Waseda University(Upcoming Schedule)
She is expected to compete at the Meiji Cup All Japan Invitational
Championships in June to earn the right to represent Japan at the Paris2024 Olympic Games.

Relationships with Local Communities:
Promoting Sports in Communities with KITZ Business Locations

Sustainability

University

February: Won the UWW Ranking Series Zagreb Open
She is currently ranked No.1 in the world. (as of March 31. 2023)

Ventforet Kofu
Data Section

KITZ supports the training academy for (U-18) developing future players as a
uniform sponsor.

Matsumoto Yamaga F.C.
In addition to supporting the Academy development organization (Ladies U-15)
as a uniform sponsor, KITZ also displays a stadium banner with its company
name in the wheelchair seats on the back-stand side of Sunpro Alwin stadium,
which is the team’s home ground.

©Matsumoto Yamaga F.C.

VC Nagano Tridents
KITZ’s logo has been displayed on the back (leg) of the team’s uniform and on
training attire. Horizontal banners are also displayed at away match venues.

48

Stakeholder Engagement
KITZ engages in the timely, appropriate, and fair disclosure of information with all shareholders andinvestors, as well as with other stakeholders including customers, business partners, employees, andsociety. During the fiscal year under review (FY2022), we were impacted by the COVID-19 pandemic andaccordingly, responded by proactively creating opportunities for dialogue utilizing online solutions. We
feed back opinions and requests obtained by constructive communication to the management team, andreflect the outcomes in efforts to improve the efficiency and transparency of management.
Dialogue with Shareholders
We seek to disclose information at an early stage, wherein we send thenotice of the ordinary general meeting of shareholders earlier than thelegal requirement, and the contents are posted on the website prior tosending. The English version can also be read on the website. We arepreparing a system that enables our shareholders to exercise voting
rights online for their convenience.

Dialogue with Investors
We hold financial results presentations for institutional investors andanalysts on a quarterly basis. The president or executive officer explains
the achievements and the medium and long-term strategy.
Additionally, for the purpose of getting more people interested in
becoming a KITZ shareholder, we have taken part in online IR events forindividual investors.

Dialogue with Employees
The management team including the president regularly visits manufacturing sites and promotes better understanding through communication with employees. We stream video of internal resultspresentations and messages from management via our intranet portalso that employees at offices in Japan and overseas as well as those
employees working from home can participate.
KITZ continues to conduct events promoting dialogue between
top management and employees to help instill the Long-termManagement Vision.

Dialogue with Business Partners
A meeting of presidents of domestic general distributors is held annually, in which we promote mutual understanding and further deepen
our partnership with distributors.
While these meetings were postponed due to the COVID-19 pandemic, in July 2022, an “Appreciation Gathering” was held to mark our
70th anniversary.

49Governance

Audit & Supervisory Board and its Members

KITZ employs as its organizational design for corporate governance the structure of a company with an Audit & Supervisory
Board, under which authority and responsibility for decisionmaking on important matters concerning business administration and for oversight of business execution are centeredin the Board of Directors and the Audit & Supervisory Board,and its members provide highly effective oversight of theBoard of Directors from independent and objective perspectives, thus ensuring the effectiveness of corporate governance.
Additionally, an executive officer system has been adopted tofacilitate swift decision-making regarding business execution.

The Audit & Supervisory Board comprises five members, threeof whom are outside (independent) Audit & Supervisory
Board members in order to facilitate highly effective auditing
and strengthen oversight functions. In addition, to ensure
diversity on the Audit & Supervisory Board, one female Audit& Supervisory Board member (outside Audit & Supervisory
Board member) has been appointed.

Composition of Directors and Audit & Supervisory
Board Members (as of end of March 2023)

Growth Strategies

Organizational Design

Value Creation Story

The KITZ Group understands the effective functioning of corporate governance to help fulfill our
corporate social responsibility and contribute to increasing management efficiency and transparency,
as well as sustained increases in corporate value. For this reason, we aim to realize effective corporate
governance through maintenance and continuous operation of top management and business execution
systems capable of responding to changing business conditions in swift and appropriate ways while also
rewarding the trust of all stakeholders and fulfilling our social missions and responsibility.

Board of Directors and Directors
Outside4 (57%)

Director 7

Inside3 (43%)Of which,
one female

Audit &
Supervisory
Board
Member 5

Outside3 (60%)

Inside2 (40%)

Sustainability

The Board of Directors comprises seven members. Four ofthese members, which make up the majority of the board, areindependent outside directors to enhance the management
oversight functions. In addition, to ensure diversity on the
Board of Directors, one female director (outside director) has
been appointed.

Of which,
one female

General Meeting of Shareholders
Election / dismissal
AdviseGroup-wide Expert Committee
C&C Control Committee(Crisis & Compliance / Risk Management)Internal Control Committee
Group-wide Sustainability
Promotion Committee
Quality Assurance Committee

Response

Directors

ReportElection / dismissal

Audit

Audit & Supervisory Board

Monitor/ Supervise

Audit report

Audit &
Supervisory Board Members

Audit report

Cooperate

Data Section

Compensation Committee

Board of Directors

Election / dismissal

Audit report
Select / Remove / Supervise

Cooperate

Propose / report

Direct / Supervise

Direct / Supervise
President and Chief Executive Officer

Internal Audit Office

ReportReportReportDirect / Supervise
Direct / Supervise

ReportManagement Conference

Information Security and Personal
Information Protection Committee

Internal Audit

Cooperate
Accounting Auditor

Advisory Committee
Nomination Committee

Propose / report

Propose / report

Group-wide Environment,
Safety and Health Committee
Investment andLoans Review Committee
Security Trade Control Committee
AEO Trade Control Committee
CI Control Committee

Executive Officer
Propose / report

ReportBusiness execution organization(Divisions in charge andconsolidated subusidiaries)

Audit

50

Nomination Committee and Compensation
Committee

Ensuring the Effectiveness of the Board of Directors
To improve the effectiveness of the functions of the Board of
Directors, a questionnaire survey on the effectiveness of theBoard of Directors is conducted among directors and auditors
each year.
In the questionnaire survey conducted in February
2023, formulation and implementation of management
strategy, sustainability initiatives, constitution of the Board of
Directors, appointment and compensation of directors andofficers, audits, outside directors, vitalization of discussion
at Board meetings, and response to shareholders, investors,
and other stakeholders were asked. Feedback regarding
discussions at Board meetings was also collected.
The result of the evaluation says that the effectivenessof the Board of Directors is ensured in general. Constructive
feedback was also obtained regarding enhanced employee
engagement, business portfolio management, improvements
to the price-book value ratio, and other matters. In light ofthese evaluation results, the Board of Directors will sharethese issues and consider improvement measures in an effort
to ensure greater effectiveness.

To strengthen the oversight functions of the Board of
Directors and enhance corporate governance, the Board of
Directors has established an optional Nomination Committee
and Compensation Committee regarding candidates for
director, candidates for Audit & Supervisory Board member,personnel matters concerning executive officers, and thecompensation of directors and executive officers, as advisory
bodies whose members comprise a majority of independent
outside directors.
Nomination Committee and Compensation Committee
Chairperson: Independent Outside Director Kazuyuki Matsumoto
Members: Independent Outside Director Minoru Amoh
Independent Outside Director Yutaka Fujiwara
Independent Outside Director Yukino Kikuma
Chairman
Yasuyuki Hotta●

Matrix and History of Corporate Governance

Separation of Supervision
and Execution

1990

2000

20 members of the Board of Directors asprescribed by the Articles of Incorporation

1999
Decreased to 12

2005
Decreased to 9

1999
Introduced the Executive Officer System
2001
One

Number of Outside Directors
Number of Outside Audit &Supervisory Board Members

2020

2010

2011
Two

2017
Three

2000
Two

One

2020
Four (Of which, one female)2019
Three (Of which, one female)

2006
Term of office for Directors: 1 year

Operation of the Boardof Directors

2016 Implemented evaluations on the effectiveness of theBoard of Directors
1999
Established the Investment and Loans Review Committee
2002
Established the C&C Control Committee
2007
Established the Internal Control Committee

Various Committees

2017 Established the Nomination Committee and theCompensation Committee
2021 Established the Group-wide
Sustainability Promotion Committee
2004
Abolished the system for retirement bonuses for Executive Officers
2016
Introduced a performance-linked stock-based compensation plan

Compensation System

2022 Introduced a new stock-based
compensation system*
2016
Published the integrated report Corporate Report

Integrated Report
Corporate Philosophy

1991 Formulated the KITZ’ Statementof Corporate Mission

2001 Revised KITZ’
Statement ofCorporate Mission

2006 Reviewed KITZ’ Statement of Corporate Mission* Program for Restricted Stock Compensation and Post-paid Performance-Linked Stock Compensation for Directors (Not including Outside Directors)

51

2022 Revised KITZ’ Statement ofCorporate Mission

Executive Officer System and the Management
Conference

Establishment of Various Committees

Executive Compensation(Millions of yen)

Total amounts of compensation by typeClassification

Number ofmembers

Total amountsofBase
compensation compensation

Performance-linked
compensation
Bonuses

Stock-based
compensation

Directors (outside
directors)

8
(4)

249
(43)

143
(43)

76
(–)

28
(–)

Audit & Supervisory
Board members(outside Audit &Supervisory Board
members)

5
(3)

71
(28)

71
(28)

–
(–)

–
(–)

Total (total foroutside officers)

13
(7)

320
(72)

215
(72)

76
(–)

28
(–)

*A
 mounts recorded as the accrued bonuses to directors and accrued stock-based
benefits to directors and officers stock benefits in the fiscal year ended
December 2022 are listed.

Sustainability

Sale and Reduction of Cross-Shareholdings
KITZ basic policy is to not maintain cross-shareholdings forthe purposes of securing stable shareholders.
In addition, the Board of Directors annually verifies andreviews cross-shareholdings from the perspectives of both
economic rationality (quantitative perspectives) and the qualitative significance of such holdings, and share issues judged
not to satisfy the Policy on Cross-Shareholdings are sold.

Data Section

KITZ’s policy regarding the details of compensation given to
individual directors is to determine compensation amounts
consistent with business performance while also taking into
account factors such as compensation levels at other companies, the main objective of which is to increase motivation
toward achieving the Long-term Management Vision andMedium-term Management Plan, and enhancing the corporate value of the KITZ Group.
As for the structure of compensation, it comprises monetary compensation in the form of “base compensation”
and “performance-linked compensation (bonuses),” andnon-monetary compensation in the form of “performancelinked stock-based compensation.”
Base compensation is paid as a fixed amount and is set
based on the position and responsibilities of each director.
Performance-linked compensation (bonuses) is paid out of anamount equivalent to 1% of net income attributable to owners of the parent (the total amount of bonuses) when certain
requirements are met, and is paid based on the position andindividual performance target achievement level for eachdirector.
Performance-linked stock-based compensation involves
a portion of compensation being granted as stock in the
Company based on an amount calculated according to theposition of each director and performance indicators, withthe aim of increasing the awareness of contribution to KITZ’s
medium to long-term business performance and improved
corporate value, and promoting greater sharing of value
between directors and shareholders.

Total amounts of compensation for directors and Audit &Supervisory Board members concerning the fiscal year
ended December 2022

Growth Strategies

To enhance the effectiveness of the internal control system
operation, KITZ operates various dedicated committees.
Through these committees, KITZ implements necessary controls such as evaluation, check and balance, and improvements on important matters related to appropriate and lawful
decision-making in Group management.

●

Value Creation Story

The Group employs an executive officer system for cross-functional business execution regarding Group companies inJapan and around the world to focus the Group’s comprehensive strengths on corporate strategy. Thirteen executive
officers, including those serving concurrently as executive
directors, are appointed. In addition, the Management
Conference consisting of executive officers, meets monthly
for broad-ranging discussions of important management
topics and decides on important matters related to businessexecution.

Outside directors are only paid base compensation, inlight of the fact that they are in positions independent fromthe execution of business.
Each fiscal year, the Board of Directors determines details
including the compensation of individual directors based on
deliberations and reports from the Compensation Committee
in order to ensure the objectivity and transparency of executive compensation.
Also note that the compensation of Audit & Supervisory
Board members comprises only base compensation as fixedamounts, and the payment amounts are determined throughdiscussions by the Audit & Supervisory Board.

Internal Control System
To establish sound and strong Group management foundations, KITZ has established a Basic Policy on Internal Control.
KITZ has built and currently operates an internal control system in accordance with laws and regulations.
In addition, the Internal Audit Office conducts businessaudits and internal control audits of KITZ and the KITZ Group
companies, as well as monitoring the group-wide state ofinternal control and appropriateness of business processes.
The results of the audits are communicated to the president,
Audit & Supervisory Board members, and related sections,and follow-up is conducted regarding corrective measures.

52

These are reviewed closely by the Internal Control Committee
and reported to the Board of Directors periodically. In addition, we identify the inherent risks by conducting audits
regarding the serious risks that each Group company is facing.
We also provide support for improving operations and building structures for legal and regulatory compliance to avoid
and mitigate risks.

Promotion of Compliance Management
KITZ recognizes compliance management as a fundamental
and essential condition of continued corporate growth. Thisis expressed in the topmost element of the Action Guide forthe realization of KITZ’ Statement of Corporate Mission, which
expresses the Group’s corporate philosophy: “Do it True.”l Compliance Management Promotion Structure
In the KITZ Group, both KITZ and each Group company
have established a Crisis and Compliance (C&C) Control
Committee chaired by the president. It also is building
structures to prevent various management risks, such as
those associated with legal, regulatory, and complianceviolations, and to respond swiftly and appropriately to any
crises that may arise.
l	Initiatives Related to Promotion of ComplianceManagement
The C&C Control Committee at KITZ and each Group
company deliberates on the following matters related topromotion of compliance, formulates necessary policies,
and implements specific measures.
1 Formulation of basic policies on development and operation of
the compliance promotion program
2 Formulation of basic policies on preparation and maintenanceof the Compliance Guidebook
3 Formulation of basic policies on implementing complianceeducation
4 Responding to any compliance violations that have occurred(including investigation of related facts, investigation of theircauses, formulation and implementation of measures toprevent their reoccurrence, and checking on the
countermeasures implemented)
5 Establishment, amendment, and abolition of rules andregulations necessary for compliance promotion
6 Other necessary matters related to compliance promotionl Whistleblowing System (Compliance Helpline)
To promote compliance management, KITZ and each Group
company have established compliance helplines as a contact point for reporting and consultation concerning information about any acts in violation of laws, regulations, orcompliance identified by management or employees.
The management and employees of KITZ and each

53

Group company may use their own companies’ compliancehelplines, compliance helplines set up by outside law firms,
and the compliance helpline of the parent company, KITZ.
We secure a structure that the management and employees can use with peace of mind, by setting up multiple
routes for consultation and reporting.
Each compliance helpline is managed and operated by
the C&C Control Committee of the Company or the Group
company. Reports and consultations received are investigated swiftly while strictly protecting the confidentiality of
the reporting party, and timely and appropriate corrective
measures are implemented in response.
l Compliance Education
KITZ distributes a group-wide Compliance Guidebook to
the management and employees of KITZ and Group companies. The guidebook describes the thinking of Group
top management regarding compliance management, theimportance of compliance management, the compliancepromotion structure, the compliance code of conduct, thewhistleblowing system, and other matters related to compliance. In FY2022, the guidebook was revised to enhancedescriptions of social issues such as human rights, labor, theenvironment, and anti-corruption. The revised edition wastranslated into the languages of each country in which the
KTIZ Group operates and thoroughly informed throughout
the Group. Japanese and English editions were also published on the KITZ website.
We also hold seminars on compliance education systematically each year and individual seminars focusing
on the details of the operations of each section whenso requested by a section of KITZ or a Group company.
Furthermore, we also strive proactively to foster a cultureof compliance, raise awareness, and convey related knowledge through various other means, such as preparing anddistributing educational and awareness-raising tools and,recently, deployment of digital content using online tools.

Please visit the website for more information

Risk Management
To control various risks that could have severe impacts on
corporate management, KITZ carries out risk management in
KITZ and each Group company.

• Implementing
Countermeasures

P

D

A

C

• Repeated Consideration
and Implementation• Monitoring and Verifying
the Effects

l Information Security and Personal Information
Protection
To minimize the impact of cyber-attacks or information
leakage from insiders on business continuity, the KITZGroup has considered information security governance asa key management issue. Accordingly, we have formulated
KITZ Group Information Security and Personal Information
Protection Policy, established an Information Security andPersonal Information Protection Committee, and undertaken various measures for information security and personal information protection.

Data Sectionl Risk Management Implementation Flow
Based on the results of risk evaluation by each organization and through the Management Conference, the KITZGroup identifies important risks and key risks that have aparticularly high possibility of significantly impacting management among the important risks, chooses whether toaddress each risk through avoidance, transfer, mitigation,or retention in light of its importance, and drafts and implements necessary countermeasures under the responsibilityof the individual executive officers and Group company
presidents.
Particularly in recent years, the Group has been identifying and taking action flexibly on key risks in accordance• Identifying and Assessing Risks• Identifying Important and Major
Risks• Formulating Countermeasures• Deliberation by theManagement Conference• Deliberation by the
Board of Directors

Sustainabilityl Risk Analysis and Evaluation
In the KITZ Group, the importance of anticipated risks
related to business activities (totaling 128 risk items) isjudged quantitatively along the two axes of their frequencyof occurrence and their impact on management based on
the basic policy and evaluation standards for risk evaluation
formulated by the C&C Control Committee. Specifically,risks are graded by each evaluation item under the standards
for determining their frequency of occurrence and theirimpact (consisting of the items of human injury, physicaldamage, liability, loss of profit, loss of trust, and environmental damage), and each is grouped into one of the fourzones of high-damage/high-frequency, low-damage/highfrequency, high-damage/low-frequency, or low-damage/low-frequency based on a four-quadrant risk-mapping scale.

Supervision by the Board of Directors

Growth Strategiesl Risk Management Structure
In the KITZ Group, the executive officer in charge of risk
management, who also serves concurrently as a memberof the C&C Control Committee, promotes risk management
at KITZ and each Group company based on basic policies
decided on by the committee under the supervision of theBoard of Directors.

with social conditions, such as control measures for supply
chains in light of geopolitical risks as well as information
security risks.
Important risks and key risks thus identified, and countermeasures drafted for them, are shared with the Internal Audit
Office. The Internal Audit Office evaluates the state of development and operation of risk management from an independent perspective through means that include checking on
the progress and results of related countermeasures throughbusiness auditing and other activities.
In addition, based on reports on such matters as priority risks identified in the Management Conference andcountermeasures drafted for them, as well as the resultsof evaluation by the Internal Audit Office, the Board of
Directors carries out necessary deliberation and checks on
the ultimate results of implementing countermeasures,among other activities involved in final decision-making on
and oversight of risk management in the Group.

Value Creation Storyl Compliance Survey
To check the degree to which compliance management
has taken root in KITZ and each Group company and visualize potential compliance risks, KITZ surveys employees oncompliance.
The risks identified through this survey are utilized in such
efforts as business process improvements and employee education in accordance with their degrees of importance.

Please visit the website for details about KITZ’s
risk management activities

54

Board of Directors, Corporate Auditors andExecutive Officers(as of March 31, 2023)

Directors

Chairman

Yasuyuki Hotta

Born: June 18, 1955
Mar. 1978 Joined KITZ
Jan. 1997 Branch Manager, Chubu Branch, Sales Division
Apr. 2001 Plant Manager, Nagasaka Plant
Oct. 2001 Managing Executive Director, KITZ SCT Corporation
Jun. 2004	Representative Director and President, KITZ SCT Corporation
Apr. 2006	Managing Executive Officer, Division Manager, Flow Control
Business Division
Apr. 2007	Senior Executive Officer, Division Manager, Flow Control
Business DivisionJun. 2007	Director, Senior Executive Officer, Division Manager, Flow
Control Business DivisionJun. 2008	President and Chief Executive Officer, Division Manager, Flow
Control Business Division
Apr. 2009 President and Chief Executive Officer
Mar. 2021	Chairman and Representative Director, Chair of the Board of
Directors (present position)
Jun. 2021 Chairman of the Kitazawa Museum of Art (present position)
Director

Toshiyuki Murasawa

Born: February 9, 1959
Mar. 1981 Joined KITZ
Apr. 2001 General Manager, Corporate Planning Department
Apr. 2009	Executive Officer, General Manager, Corporate Planning
Department
Oct. 2011	Executive Officer, Division Manager, Corporate Planning
Division
Apr. 2016	Executive Officer, Division Manager, Corporate Administration
Division
Jun. 2016	Director, Executive Officer, Division Manager, Corporate
Administration Division
Apr. 2019	Director, Managing Executive Officer, Division Manager,
Corporate Administration Division
Jan. 2022	Director, Managing Executive Officer, Division Manager,
Corporate Planning Division (present position)
Outside Director

Minoru AmohBorn: December 9, 1951
Apr. 1979	Joined Du Pont Far East, Inc. Japan Representative Office(currently DuPont Kabushiki Kaisha)Mar. 2000	Director
Mar. 2002	Managing Executive Director
Mar. 2004	Senior Executive Director, Regional Director, Asia-PacificRegion, Engineering Polymer Business Division
Jul. 2005	Director, Vice President
Sep. 2006	Representative Director, President
Jan. 2013	Representative Director, Chairman, DuPont Kabushiki Kaisha,
President, DuPont Asia Pacific Limited
Sep. 2014	Honorary Chairman, DuPont Kabushiki Kaisha
Jun. 2015	Outside Director of KITZ (present position)
Mar. 2016	Statutory Auditor, Otsuka Chemical Co., Ltd.
Mar. 2019	Outside Director (present position)
Dec. 2020	Outside Director of HEXEL Works, Inc.
Jun. 2021 Outside Director of Enplas Corporation (present position)
Outside Director

Yukino Kikuma

Born: March 5, 1972
Apr. 1995 Joined Fuji Television Network, Inc.
Dec. 2011 Registered as an attorney at law
Jan. 2012 Joined MATSUO & KOSUGI
Dec. 2014 Outside Director, Noevir Holdings Co., Ltd.
Jun. 2018 External Director, KOSÉ Corporation (present position)
May 2020 Outside Director, Takihyo Co., Ltd. (present position)
Jun. 2020	Outside Director, ALCONIX Corporation (present position),
Outside Director of KITZ (present position)
Jan. 2022	Representative attorney (managing partner), MATSUO &KOSUGI (present position)

55

President

Makoto Kohno

Born: March 10, 1966
Apr. 1988 Joined KITZ
Aug. 2008	General Manager, Project Sales Department, International
Sales Division, Flow Control Business Unit
Dec. 2011	General Manager, Project Management Department
Apr. 2013	General Manager, Production Control Department, Production
Division, Flow Control Business Unit
Apr. 2015	General Manager, Business Planning Department, Flow
Control Business Unit
Apr. 2016	Executive Officer, Division Manager, Corporate Planning Division
Apr. 2017	CEO & Managing Director, KITZ Corporation of Asia Pacific Pte. Ltd.,Managing Director, KITZ Valve & Actuation Singapore Pte. Ltd.
Apr. 2019	Managing Executive Officer, General Manager, Flow Control
Business Unit
Jun. 2019	Director, Managing Executive Officer, General Manager, Flow
Control Business Unit
Mar. 2021 President and Chief Executive Officer (present position)

Outside Director

Kazuyuki Matsumoto

Born: September 21, 1945
Apr. 1970 Joined Teijin Seiki Co., Ltd. (currently Nabtesco Corporation)
Jun. 2001	Director
Sep. 2003	Executive Officer, Nabtesco Corporation
Jun. 2004	Director
Jun. 2005	Representative Director, President & CEO
Jun. 2011	Chairman
Jun. 2013	Outside Director, TOPCON CORPORATION (present position),
Outside Director of KITZ (present position)

Outside Director

Yutaka Fujiwara

Born: April 20, 1951
Apr. 1974	Joined MODEC, Inc.
Nov. 1987	Joined The Yasuda Trust & Banking Co., Ltd. (currently Mizuho
Trust & Banking Co., Ltd.)
Aug. 1994	Deputy General Manager, New York Branch
Jun. 1996	General Manager, Chicago BranchAug. 1998	Joined OMRON Corporation
Jun. 2005	Executive Officer, General Manager, Financial IR Department
Mar. 2007	Executive Officer, General Manager, Group Strategy Department
Jun. 2008	Managing Officer and General Manager, Group Strategy
Department
Dec. 2008	Managing Officer, General Manager, IR & Corporate
Information Department
Jun. 2013	Outside Director, Nabtesco Corporation
Jun. 2017	Outside Director of KITZ (present position)
Jul. 2020 	Outside Audit & Supervisory Board Member of Konoike
Transport Co., Ltd. (present position)

Audit & Supervisory Board Members
Standing Audit & Supervisory Board Member

Standing Audit & Supervisory Board Member

Born: September 8, 1952
Aug. 1977 Joined KITZ
Jul. 2000	General Manager, General Administration and Human
Resource Department
Apr. 2004	Executive Officer, General Manager, General Administrationand Human Resource Department
Apr. 2010	Executive Officer, Deputy Division Manager, Corporate
Administration Division
Apr. 2011	Executive Officer, Division Manager, Corporate Administration
Division
Jun. 2012	Director, Executive Officer, Division Manager, Corporate
Administration Division
Apr. 2014	Director, Managing Executive Officer, Division Manager,
Corporate Administration DivisionJun. 2016	Standing Audit & Supervisory Board Member (present
position)

Born: August 4, 1959
Dec. 1991 Joined KITZ
Jun. 2001 General Manager, Accounting and Finance Department
Apr. 2010	General Manager, Accounting Supervisory Department,
Corporate Administration Division
Apr. 2011	Executive Officer, Deputy Division Manager, Corporate
Administration DivisionJun. 2017	Standing Audit & Supervisory Board Member (present
position)

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Born: February 3, 1952
Jul. 1974 Joined Mitsui Mining & Smelting Co., Ltd.
Jun. 2004	Executive Officer, General Manager, Finance Department,
Mitsui Mining & Smelting Co., Ltd., Outside Audit &Supervisory Board Member, MESCO, Inc.
Jun. 2007	Chief Financial Officer, Senior Executive Officer, General
Manager, Finance Department
Jun. 2008	Standing Audit & Supervisory Board Member
Jun. 2011	Outside Audit & Supervisory Board Member, Nakabohtec
Corrosion Protecting Co., Ltd.
Jun. 2015	Outside Audit & Supervisory Board Member of KITZ (present
position)

Born: February 17, 1954
Apr. 1977	Joined Yokogawa Electric Works Ltd.
(currently Yokogawa Electric Corporation)
Oct. 1999	General Manager, Affiliated Company Supervision Office
Apr. 2005	Vice President, General Manager, Accounting & Treasury
Center, Corporate Administration Headquarters
Jun. 2008	Senior Vice President, General Manager, Audit andCompliance Headquarters
Jun. 2016	Audit & Supervisory Board Member, Yokogawa Solution
Service Corporation
Jun. 2017	Outside Audit & Supervisory Board Member of KITZ (present
position)
Oct. 2019	Outside Audit & Supervisory Board Member, Japaniace Co., Ltd.
(present position)

Masahiko Kondo

Growth Strategies

Shuhei Sakuno

Value Creation Story

Tatsuhiko Takai

Taro Kimura

Sustainability

Outside Audit & Supervisory Board Member

Ayako Kobayashi

Data Section

Born: October 14, 1975
Oct. 2000 Registered as an attorney at law
Jan. 2009 Partner, Kataoka & Kobayashi
Sep. 2013	Part-time lecturer, Keio University Law School
Apr. 2018 Partner, KATAOKA & KOBAYASHI LPC (present position)
Jun. 2019	Outside Audit & Supervisory Board Member of KITZ (present
position)
Jun. 2021	Outside Director of Musashino Bank, Ltd. (present position)

56

Reasons for Appointment of Directors and Skills Matrix
Name

Chairman

Yasuyuki Hotta

President

Makoto Kohno

Director,
Managing Executive Officer

Toshiyuki Murasawa

Outside Director

Kazuyuki Matsumoto

Outside Director

Minoru Amoh

Outside Director

Yutaka Fujiwara

Outside Director

Yukino Kikuma

Reason for Appointment

Yasuyuki Hotta has boldly promoted globalization and sound, highly transparent management, while focusing on tasks including themanagement of the Board of Directors and strengthening of corporate governance. The Company has judged that the use of his extensive
experience and insight will contribute to strengthening the important decision-making and management supervision functions of theBoard of Directors, and ultimately to enhancing the corporate value of the Group.
Makoto Kohno was involved with sales and production in the Valve Manufacturing Business, and later served as Executive Officer in chargeof corporate planning and CEO & Managing Director of an overseas Group company. In addition, as Executive Officer in charge of the Valve
Manufacturing Business, he boldly promoted the formulation and execution of Valve Manufacturing Business strategy, and as President andChief Executive Officer has been at the forefront of the overall management of the Group. The Company has judged that the use of his
extensive experience and insight will contribute to strengthening the important decision-making and management supervision functionsof the Board of Directors, and ultimately to enhancing the corporate value of the Group.
Toshiyuki Murasawa was involved with duties including the Group companies’ business administration division, and served as Executive
Officer in charge of the corporate planning and administration divisions, as well as director of a domestic Group company. In addition toplanning and executing the Group business and human resource strategies for globalization, he has boldly promoted the strengthening ofcorporate governance and sustainability management. The Company has judged that the use of his extensive experience and insight willcontribute to strengthening the important decision-making and management supervision functions of the Board of Directors, andultimately to enhancing the corporate value of the Group.
Kazuyuki Matsumoto was long active as a manager of Nabtesco Corporation, and in addition to extensive experience as a corporate
manager, he has broad and high-level insight into technological development, manufacturing and other areas. The Company has judgedthat he will be able to fulfill the role of supervising and providing appropriate advice from an objective and fair standpoint by utilizing his
experience.
Minoru Amoh was long active as a manager of DuPont Kabushiki Kaisha and has broad and high-level insight into corporate management,
global business development, technological development and other areas. The Company has judged that he will be able to fulfill the role ofsupervising and providing appropriate advice from an objective and fair standpoint by utilizing his experience.
Having held branch general manager’s positions at overseas branches of a financial institution, Yutaka Fujiwara was active as Executive
Officer in charge of finance, IR and group strategy at OMRON Corporation, and has broad and high-level insight into business administrationfrom a global perspective, financial strategy, governance and so on. The Company has judged that he will be able to fulfill the role ofsupervising and providing appropriate advice from an objective and fair standpoint by utilizing his experience.
Yukino Kikuma has been active as a representative attorney (managing partner) of a law firm and has broad, high-level insight into
corporate legal affairs, including dispute resolution in various types of litigation, labor, compliance, risk management and governance, as
well as other specialized fields. The Company has judged that she will be able to fulfill the role of supervising and providing appropriate
advice from an objective and fair standpoint by utilizing her experience.

Reason for Appointment of Audit & Supervisory Board Members
NameStanding Audit &Supervisory Board Member

Masahiko Kondo
Standing Audit &Supervisory Board Member

Taro Kimura
Outside Audit & Supervisory
Board Member

Tatsuhiko Takai
Outside Audit & Supervisory
Board Member

Shuhei Sakuno
Outside Audit & Supervisory
Board Member

Ayako Kobayashi

57

Reason for Appointment

He is involved in management of the Company as a director in charge of the corporate administration areas which bring the Group
companies together and has sought to strengthen management infrastructure and has built and pushed for the strengthening of theGroup’s risk management system. The Company has judged that he will be able to fulfill the role of reflecting his knowledge and experiencein business management, labor, accounting and finance in the audits of the Company.
He has many years of experience in managing the Company’s accounting and financial operations. As an executive officer in charge ofcorporate administrative divisions that oversee Group companies, he has developed the Company’s internal control system, strengthened
its internal audit function and promoted the building of its risk management system. The Company has judged that he will be able to reflect
his knowledge and experience in risk management as well as in accounting and finance in the audits of the Company.
He served as Chief Financial Officer and executive officer in charge of finance as well as a corporate auditor for Mitsui Mining & Smelting Co.,
Ltd. for many years, and has accumulated advanced and wide-ranging insight into finance and accounting. The Company has judged that
he will be able to fulfill an appropriate role, including using his knowledge to provide proactive and useful comments at meetings of theBoard of Directors and Audit & Supervisory Board.
He served for many years as the executive officer in charge of corporate administration at Yokogawa Electric Corporation, and possesses
advanced and wide-ranging insight into finance and accounting, internal control, risk management and the development of internal audit
systems. The Company has judged that he will be able to fulfill an appropriate role, including using his knowledge to provide proactive anduseful comments at meetings of the Board of Directors and Audit & Supervisory Board.
She has been active as an attorney for many years and possesses advanced and wide-ranging insight into corporate legal affairs including
resolution of disputes including various litigation, compliance, risk management and governance. The Company has judged that she will beable to fulfill an appropriate role, including using her knowledge to provide proactive and useful comments at meetings of the Board of
Directors and Audit & Supervisory Board.

Attendance Status for FY2022
Years in Office

Main specialized knowledge/area
Legal matters/
Global experience risk
management

Sustainability(ESG)

Capital efficiency Manufacturing/
management/
qualityfinancial strategy

Innovation/DX/
technologicaldevelopment

15 years
9 months

15/15 times

○

○

○

3 years
9 months

15/15 times

○

○

○

6 years
9 months

15/15 times

9 years
9 months

15/15 times○

7 years
9 months

15/15 times○

5 years
9 months

15/15 times

2 years
9 months

15/15 times○○

Personnel affairs/
human resource
development○

Growth Strategies○○

Sales/marketing

Value Creation Story

Board of Directors Meetings

Corporate
management

○

○

○

○

○

○

Sustainability○○* The main areas in which each director is expected to demonstrate specialized knowledge based on past experience are indicated with up to three marks. This does notindicate all knowledge and experience that each director possesses.

Attendance Status for FY2022
Audit &
Supervisory
Board Meetings

6 years
9 months

15/15 times

15/15 times

5 years
9 months

15/15 times

15/15 times

7 years
9 months

15/15 times

15/15 times

5 years
9 months

15/15 times

15/15 times

3 years
9 months

15/15 times

15/15 times

Data Section

Board ofDirectors
Meetings

Years in Office58

Executive Officers
President and Chief Executive Officer		

Makoto Kohno

Managing Executive Officer		Toshiyuki Murasawa

Executive Officer

Yukinari Koide

Born: January 15, 1959
Mar. 1982 Joined KITZ
Aug. 1999 Managing Director, Miyoshi Valve Co., Ltd.
Dec. 2004	Branch Manager, Chubu Branch, National Sales Division
Apr. 2008	General Manager, Sales Planning Department, National
Sales Division
Apr. 2013	General Manager, Business Planning Department, Flow
Control Business Unit
Apr. 2015	Executive Officer, Division Manager, IT Control Division
Mar. 2021	Executive Officer, General Manager, Flow Control Business
Unit (present position)

Executive Officer

Yoriyuki Koyama

Born: March 9, 1959
Mar. 1984 Joined KITZ
Apr. 2007	General Manager, Production Engineering Department,
Production Division
Oct. 2008	General Manager, SC Manufacturing Department,
Production Division
Apr. 2013	General Manager, Production Engineering Center,
Production Division
Apr. 2015	Executive Officer, Division Manager, Customer Support
Division (present position)

Executive Officer

Takahito Hirashima

Born: September 10, 1959
Mar. 1985 Joined KITZ
Jul. 2002 Plant Manager, Suwa Plant, Production Division
Apr. 2004 Director, KITZ Micro Filter Corporation
Apr. 2006	President and Chief Executive Officer, KITZ Micro Filter
Corporation
Apr. 2011 Executive Officer, Division Manager, Engineering DivisionJun. 2012	Director, Executive Officer, Division Manager, Engineering
Division
Apr. 2017 Executive Officer, Division Manager, Engineering DivisionFeb. 2018 Division Manager, Engineering Division
Apr. 2019	Executive Officer, Division Manager, Engineering Division
Jan. 2022	Executive Officer, General Manager, New Business
Development OfficeJan. 2023	Executive Officer, General Manager, New Business
Development Office; In charge of Environmental Solutions
Division (present position)

59

Executive Officer

Kazuhiko Hirabayashi

Born: August 6, 1959
Mar. 1982 Joined KITZ
Apr. 2004	General Manager, Production Planning Department,
Production Division
Apr. 2012 Deputy Division Manager, Production Division
Apr. 2013	Executive Officer, Division Manager, Production Division
Apr. 2017	Executive Officer, Division Manager, Production Division; In charge of NEW KICS Center (present position)

Executive Officer

Masaru Takusagawa

Born: October 4, 1962
Mar. 1991 Joined KITZ
Apr. 2004	General Manager, Development Department 3, Engineering
Division
Apr. 2007	General Manager, Research Department, Engineering
Division
Apr. 2008	General Manager, Engineering Department 2, Engineering
Division
Apr. 2010	General Manager, Product Development Department,
Engineering Division
Apr. 2015	General Manager, Production Engineering Center,
Production Division
Apr. 2017	Executive Officer, General Manager, Product Management
CenterJan. 2022	Executive Officer, General Manager, Product Management
Center, Flow Control Business Unit (present position)

Executive Officer

Kazunori Okimura

Born: September 5, 1959
Apr. 1983	Joined Fujisawa Pharmaceutical Co., Ltd. (currently
Astellas Pharma Inc.)
Apr. 2009	General Manager, Legal Department
Apr. 2012	General Manager of Legal and Compliance Department
Jun. 2013	Executive Officer, General Manager of Legal andCompliance Department
Apr. 2016	Executive Officer, General Manager, Legal Department
Jun. 2018	Joined KITZ
Apr. 2019	Executive Officer, General Manager, Legal Department,
Jan. 2021	Executive Officer, Division Manager, Legal, Intellectual
Property and Risk Management Division (present position)

Value Creation Story

Executive Officer

Kenji Kato

Executive Officer

Shuji Takei

Kenichi Bessho

Executive Officer

Yasunori Sugita

Born: May 6, 1974
Apr. 1997 Joined KITZ
Apr. 2008 KITZ Corporation of Europe, S. A. Director
Apr. 2014	Manager, Quarter-Turn Valve Business Promotion Office,Flow Control Business Unit
Jan. 2016 Metalúrgica Golden Art’s Ltda. Chairman
Jan. 2022	Executive Officer, General Manager, Business Promotion
Center, Flow Control Business Unit
Jan. 2023	Executive Officer, General Manager, Business Promotion
Center; In charge of Hydrogen Division (present position)

Data Section

Executive Officer

Born: October 1, 1967
Apr. 1990 Joined Nissan Motor Co., Ltd.
Apr. 2011	Chief IT Architect, Enterprise Architecture Department,
Global IT Headquarters
Apr. 2017	Chief IT Architect, IT Architecture and Production Service
Department, Global IT Headquarters
Sep. 2018 Joined KITZ
Apr. 2020 Deputy Division Manager, IT Control Division
Mar. 2021	Executive Officer, Division Manager, IT Division (present
position)

Sustainability

Born: September 16, 1968
Apr. 1991 Joined KITZ
Apr. 2015	Manager, Human Resources Department, Corporate
Administration Division
Jan. 2022	Executive Officer, Division Manager, General Affairs andHuman Resources Division (present position)

Takashi Ishijima

Growth Strategies

Born: January 21, 1962
Mar. 1991 Joined KITZ
Apr. 2006 Manager, Kyushu Branch, National Sales Division
Apr. 2008 Manager, Tokyo Branch, National Sales Division
Apr. 2015	President & Representative Director, Hotel Beniya Co., Ltd.
Apr. 2020	Executive Officer, Division Manager, National Sales
Division (present position)

Executive Officer

Born: October 27, 1964
Apr. 1988	Joined Matsushita Electric Industrial Co., Ltd. (currently
Panasonic Corporation
Apr. 2003 Director, Matsushita Industrial Corp. Sdn. Bhd.
Apr. 2017	President and Representative Director, Panasonic Finance
Solutions Co., Ltd.
Oct. 2020	Joined KITZ
Apr. 2021	Manager, Accounting Supervisory Department, Corporate
Administration Division
Jan. 2022	Deputy Division Manager, Corporate Finance Division
Jan. 2023	Executive Officer, Division Manager, Corporate Finance
Division (present position)

60

Messages from Outside Directors
KITZ appoints outside directors who have extensive experience and insight regarding corporate
management to further enhance its corporate governance. Of the seven company directors, four of them,more than half, have been outside directors since June 2020.

Minoru Amoh

Yukino Kikuma

Yutaka Fujiwara

Kazuyuki Matsumoto

Outside Director

Outside Director

Outside Director

Outside Director

Enhance corporate value by achieving the Long-term Management Vision!
Kazuyuki Matsumoto Outside Director
Already a year has passed since the excellent Long-termManagement Vision and Medium-term Management Plan
were announced. As the systems to implement them andthe necessary investments have also been given full consideration, let’s achieve the Long-term Management Vision for2030 and enhance the corporate value of the KITZ Group. I
also encourage the Group to fully consider the technology
roadmap, place a greater emphasis on the customer perspective while regularly revising it, and steadily implement technological development that actively reflects points of contact
with the outside.
The business of KITZ is deeply connected with the growthmarkets of water, energy, and information and is essential to61

people’s daily lives, both directly and indirectly. That is why weshould look forward to exceptional growth in the future.
I hope to work together to make the KITZ Group an organization that all stakeholders see as attractive in the longterm, with the aim of putting into practice the KITZ Action
Guide of “Do it True,” “Do it Now,” and “Do it New” and achieving remarkable growth.
As an outside director, I intend to pose high-quality questions regarding various management issues and follow up on
those issues to contribute to the realization of the Long-termManagement Vision and Medium-term Management Plan.

I will contribute to sustainable growth to enhance corporate value.
Minoru Amoh Outside Director

I will continue to take on challenges.
Yutaka Fujiwara Outside Director
many institutional investors.”
To continue improving ROE going forward, KITZ has beenworking not only to expand its business but also to revise
unprofitable products, slim down its assets, and improve capitalefficiency from the front lines up with the adoption of ROIC.
At the same time, KITZ has been making company-wide
efforts to create a company that fulfills the dreams of employees and all stakeholders, one that is friendly to the environment and respects diversity. As a member of the Board of
Directors, I also hope to be actively involved in taking on thesechallenges.

As work isn’t something you can do alone but a team effort,
it naturally demands cooperation. But if that is taken to meanthat “people should be malleable,” an organization will not
grow. Always looking to hire people with the potential tosurpass you and steadily giving opportunities to that juniortalent is essential for sustainable growth.
KITZ regularly reports on the progress of its talentmanagement system. This shows what management wants
each employee to experience at any given time and where
it wants them to end up. While KITZ has not yet produced afemale officer internally, the progress of female employees
succeeding in each department can be monitored through

Data Section

An organization in which each person can shine
Yukino Kikuma Outside Director

Sustainability

In FY2022, business performance rebounded, and ROE, an
indicator of capital efficiency, also returned to a level above
8% expected by the market.
In April 2022, KITZ moved to the Prime Market of theTokyo Stock Exchange. About a year and a half since then,while still having some way to go, KITZ has made steadystrides to becoming a company befitting the Prime Market,
namely a “company committed to achieving sustainablegrowth and improving corporate value over the medium tolong term as well as maintaining appropriate levels of market capitalization (liquidity) to be investment instruments for

Growth Strategies

to customers while pursuing sustainable management, adapting to energy shifts and a recycling-oriented society, andestablishing a solid position in growth markets. KITZ is also
working to visualize global supply chains, invest in labor savings, and boost labor productivity while pursuing workstylereforms and striving to become a company where employees
can work in better health and safety.
KITZ is also promoting a structure of company officers
that takes into account diversity, specialization, and overallbalance, important elements for further enhancing corporate
governance, and at the same time is thoroughly implementing risk management and global compliance and making
every effort to ensure management transparency.

Value Creation Story

I believe that an outside director has important roles to play
in offering differing opinions and approaches, driving toughdecision-making, and contributing to the selection of successors for important positions. To ensure these roles function
effectively, it is important to closely communicate with insideand outside officers, understand the logic behind actions on
the execution side, and have a good knowledge of the corporate culture. To enhance corporate value, which is the greatest
responsibility of a company, I will be involved in medium tolong-term strategy and contribute to sustainable growth.
KITZ is currently in the process of establishing global management foundations and is striving to harness world-classtechnologies and production innovations to deliver solutions

these reporting sessions.
However, the results of KITZ’s employment engagement
survey showed some room for improvement in terms of
positive attitudes toward work and expectations of theorganization. There may be a disconnect between what senior
management wants and how that is received by employees. I
believe it will be necessary to pursue further reforms in orderto properly accept honest feedback from employees, develop
an environment in which each employee can fully realize
their potential, and offer a fulfilling work experience for theemployees who have chosen to work at the KITZ Group.

62

Data Section

Financial and Non-Financial Data
FY2012FY2013

FY2014FY2015111,275

117,355

117,036

117,278

Domestic sales

81,50984,97081,98380,127

Overseas sales

29,76532,38435,05237,151

Valve Manufacturing Business

84,472

87,88890,152

93,579Brass Bar Manufacturing Business

17,948

20,95321,021

20,557

Others

8,855

8,514

5,863

3,141

Operating income

6,558

6,470

6,886

7,245

Ordinary income

6,521

6,501

7,581

7,300

Net income attributable to owners of the parent

4,039

3,564

6,881

4,915

Cash flows from operating activities

7,885

4,667

8,923

9,592

Cash flows from investing activities(4,519)(3,546)(1,010)(9,763)

Cash flows from financing activities(3,213)66(3,706)796

Current assets

49,95655,86663,88463,501

Fixed assets

50,016

51,71751,90555,920Total assets

99,972

107,583

115,790

119,422

Current liabilities

21,14920,70325,74019,040Long-term liabilities

18,603

20,101

14,55624,284

Total liabilities

39,75240,80540,29643,325

Net assets

60,21966,77775,49376,096

Interest-bearing liabilities

22,31923,72821,42625,008

472

505

594

487

EPS

36.98

32.63

63.22

45.5

BPS

542.41601.56686.47700.17

9.50

10.00

13.00

13.00

Operating income to net sales

5.9

5.5

5.9

6.2

ROE

7.2

5.7

9.8

6.6

ROA

6.7

6.3

6.8

6.2

Equity ratio

59.3

61.1

64.2

62.9

Payout Ratio

25.7

30.6

20.6

28.6

Total return ratio

25.7

30.6

27.6

38.8

Financial Data
For the YearNet sales

At Year-End

Share price (Yen)Per Share Data

Cash dividends per share
Financial Indicators (%)* KITZ Corporation has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16, 2018) as of the start of the fiscal year
ended March 31, 2019. Accordingly, figures for the year ended March 31, 2018 in this report are those after retrospective application of the standard.
* The fiscal year ended December 2020 is an irregular nine-month period due to the change in the fiscal year end.

63

FY2016

FY2017FY2018FY2019FY2020

FY2021

FY2022(Millions of yen)

136,637

127,090

84,245

135,790

159,91480,20789,756

95,20988,14759,51094,510104,364

33,89334,80941,42838,942

24,734

41,27955,55091,766

98,162

109,969

103,11470,129106,754

125,189

19,33323,53523,64321,061

12,95227,36632,513

3,002

2,867

3,025

2,914

1,163

1,668

2,212

8,929

10,117

11,713

6,950

3,751

8,990

11,051

8,799

9,733

11,883

7,241

3,169

8,975

12,045

5,400

6,518

5,625

4,937

2,113

4,954

8,549

12,9796,941

10,06913,32910,024

8,280

8,541

(2,141)(7,066)(9,264)(8,040)(2,379)(3,236)(7,471)(6,838)5,267(9,702)

(167)

7,497

(11,527)(5,567)Growth Strategies

124,566

Value Creation Story

114,101(Millions of yen)

77,40071,22673,351

81,76586,621

93,17751,17556,14560,43061,712

58,916

56,79859,392

119,148

133,545

131,657

135,063

140,681

143,419

152,569

19,60824,07822,22725,03623,33232,93923,33524,64732,07532,60033,14742,182

29,22638,19044,25556,15454,82758,18465,514

62,166

61,52674,892

77,391

76,82976,87975,167

81,25391,042

24,78734,302

33,672

39,14749,352

39,71038,386

742

914

811

653

627

712

789

51.43

65.5

58.5

53.06

23.38

55.26

95.35

727.78782.98793.74819.49828.76896.55

1,002.69

13.00

17.00

20.00

20.00

9.00

20.00

33.00

7.8

8.1

8.6

5.5

4.5

6.6

6.9

7.3

8.7

7.4

6.5

2.8

6.4

10.0

7.4

7.7

9.0

5.4

2.3

6.3

8.1

61.9

57.1

57.4

56.0

52.8

56.0

59.0

25.3

26.0

34.2

37.7

38.5

36.2

34.6

92.5

80.0

70.1

80.2

121.5

36.4

34.6

Data Section(Yen)

Sustainability

67,97264

Non-financial Datal CO2 Emissions / Reduction Ratel Number of Employees(thousand t-CO2) 0

80

65.9

(persons)

6,000(13.0) (16.0)
57.3

60

%)

0

55.3

(26.9)(28.1)

47.3*140

022.2*22013(Base year)

CO2 emissions

2018

2019

2020

2021

500

5,153

1,314

1,365

1,389

1,408

4,000

1,281

2,000

3,481

3,631

3,683

3,701

3,745

3,843

2022

2017

2018

2019

2020

2021

2022

(75)

(100)

0
Male

Reduction ratel Water Resource Usage*3 / Reduction Rate(thousand m3)

5,090

1,509

(50)

(66.2)
20

4,762

5,048

(25)

48.1

5,352

4,945

Femalel Number of New Graduate Hires0%)(persons)

0

80

415.8
400

360.2
(13.3)(10)

347.3(16.4)

300

200

297.4

(28.4)

290.7(30.0)

284.0

2018

Water resource usage

2019

2020

2021

2022

(50)

0

13

36

36

42

41

47

2017

2018

2019

2020

2021

2022

Femalel Number of Mid-Career Hires(persons)

15

15

60

12.2

10

34

20

%)

13.4

51

12

16

12

(thousand t)

13.9

52

15

40

Male

Reduction ratel Waste Generation*4 / Landfill Disposal Rate

13.9

51

(31.6)(40)

2013(Base year)

46

(20)

54

(30)

100

0

60

60

12.6

11.9

10

46
10

11

40

39
4

38
13

5

5

2.9

0

2017

Waste generation

2.7

2018

2.5

2019

2.5

2020

2.3

2021

Landfill disposal rate

*1 Changed to final figures*2 Provisional figures as of March 29, 2023
*3 Applies to process water related to the manufacturing of valves, etc.
*4 Industrial waste + general waste + valuable materials*5 All employees + temporary employees

65

20

23
6

23
3

2.5

2022

0

0
Male

18
3

17

35

25

20

15

35

2017

2018

2019

2020

2021

2022

Femalel Percentage of Female Employees, Female Managers

l Total Working Hours

%)(hours)

25

2,500

20.1

20.8

21.8

21.3

21.7

22.0

2,000

15

1,500

10

1,000

5

0

2.5
2017

2018

3.3

3.6

3.4

3.4

2019

2020

2021

2022

2,040

2017

2018

2019

1,976

2,012

2020

2021

1,944

500

0

2022

Female managers

l Percentage of Employees Taking Childcare Leavel LTIF Rate* (4 days of absence)

%)

%)

100

1.0

100

2,055

100

100

100

100

100

80

0.93

Growth Strategies

Female employees

4.0

2,076

Value Creation Story

20

0.8

0.65
60

46.3
23.5

25.0

26.5

20

7.7

7.1
0
Male

32.4

29.0

35.3

Female

2018

2019

2021

2022

Overall

0

2018

2019

2020

2021

2022

500

2.4

2.4

2.4

2.4

400

300

316
26

341
34

379
42

467

470

61

59

117

123

269

289

288

2020

2021

2022

430
49
112

Data Section(Item)

3

2.0

0
2017

l Number of Patents Held

%)

2

0.28

* LTIF Rate = number of occupational accidents / total working hours x 1 million hours

l Percentage of Employees with Disabilities

2.2

0.40

0.2

10.7
2020

0.4

0.23

0.0
2017

0.6

Sustainability

40

50.0

102

89

93

201

214

235

2017

2018

2019

200
1
100

0

2017

2018

2019

2020

2021

2022

0

Japan (valves, joints)

Japan (other)Overseas (U.S. and China)• The fiscal year ended December 2020 is an irregular nine-month period due to the change in the fiscal year end.
• Aggregation periods - Fiscal year ended March 2014 to fiscal year ended March 2020: April to March, Fiscal year ended December 2020: April to December, Fiscal year ended December 2021: January to
December. However, CO2 emissions, water resource usage, waste generation, total working hours and frequency rate for the fiscal year ending December 2020 display the results for the 12-months from January
to December 2020.
• Aggregation scope: CO2 emissions, water resource usage, waste generation for the fiscal year ended March 2014 to the fiscal year ended March 2019 are for domestic Group companies except for KITZ domestic
business sites and Hokuto Giken Kogyo, and for the fiscal year ended March 2020 and thereafter are for KITZ domestic business sites and domestic Group companies. Number of employees is for KITZ and allGroup companies. Number of new hires, percentage of employees taking childcare leave, percentage of employees with disabilities, and total working hours are for KITZ on a non-consolidated basis. The frequency rate is for the production sites of KITZ and its domestic Group companies. Number of patents held is as shown in the legend.

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Group Network(as of March 31, 2023)

Overseas Network

Domestic Network
Head Office
KITZ Corporation
Sales Bases● Hokkaido Regional Office● Tohoku Regional Office● Kita-Kanto Regional Office● Niigata Sales Office● Tokyo Branch● Chiba Sales Office67

Please visit the website for more information about KITZ head office,sales bases, production sites, and marketing bases

Please visit the website for more
information about the KITZ Group

Marketing Bases, KITZ Corporation● KITZ Corporation (India Liaison Office)● KITZ Corporation (Dubai Liaison Office)Sustainability
Data Section

Production Sites /Research and Training Facilities
KITZ Corporation Nagasaka Plant
KITZ Corporation Ina Plant
KITZ Corporation Chino Plant
KITZ Group Innovation Center

Growth Strategies● Yokohama Sales Office● Chubu Branch● Tokai Sales Office● Hokuriku Sales Office● Koshin Sales Office● Osaka Branch● Chugoku Regional Office● Okayama Sales Office● Kyushu Regional Office

Value Creation Story

KITZ GroupKorea● KITZ Corporation of Korea● Cephas Pipelines Corp.
● Filcore Co., Ltd.
Singapore● KITZ Corporation of Asia Pacific Pte. Ltd.
● KITZ Valve & Actuation Singapore Pte. Ltd.
Thailand● KITZ Valve & Actuation (Thailand) Co., Ltd.
● KITZ (Thailand) Ltd.
Malaysia● KITZ Valve & Actuation (Malaysia) Sdn. Bhd.
Vietnam● KITZ Valve & Actuation Vietnam Co., Ltd.
● KITZ Corporation of Vietnam Co., Ltd.
Taiwan● KITZ Corporation of Taiwan
China● KITZ Corporation of Kunshan● KITZ Corporation of Jiangsu Kunshan● KITZ Corporation of Shanghai● KITZ Corporation of Lianyungang● KITZ SCT Corporation of Kunshan
Hong Kong● KITZ Hong Kong Company Limited
India● Micro Pneumatics Pvt. Ltd.
U.S.A.
● KITZ Corporation of America● KITZ SCT America Corporation
Brazil● Metalúrgica Golden Art’s Ltda.
Spain● KITZ Corporation of Europe, S.A.
Germany● Perrin GmbHKITZ Group● Toyo Valve Co., Ltd.
● Shimizu Alloy Mfg. Co., Ltd.
● KITZ SCT Corporation● YKV Corporation● KITZ Engineering Service Co., Ltd.
● KITZ Micro Filter Corporation● KITZ Metal Works Corporation● Hokutoh Giken Kogyo Corporation● Hotel Beniya Co., Ltd.

68

Corporate Data / Stock Information
Corporate Data (as of December 31, 2022)
Corporate Name
1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Prefecture 261-8577, Japan TEL: +81-43-299-0111

Head Office

Relocation to Tokyo Shiodome Building, 1-9-1, Higashi-Shimbashi Minato-ku, Tokyo is scheduled for November 2023

URL
Established
CapitalFiscal Year-end
Stock Exchange Listing
Number of Employees
Business Activities
Independent Auditor

https://www.kitz.com/en/
January 26, 1951
¥21,207,084,670
DecemberPrime Market of Tokyo Stock Exchange Code: 6498
1,422 (Non-consolidated basis)
Manufacturing and sales of valves, other flow control devices and related products
Ernst & Young ShinNihon LLC

Stock Information (as of December 31, 2022)
Total Number of Authorized Shares 400,000,000 shares
90,117,974 shares

Shares Issued and Outstanding

Note: The number of shares shown above does not include 278,537 shares of treasury stock that were held as of December 31, 2022.

Number of Shareholders

14,651

General Meeting of Shareholders

March
Voting rights at general meetings of shareholders: December 31
Year-end dividend: December 31
Interim dividend: June 30
In addition, a public announcement will be made in advance as necessary.
Electronic announcement

Record Dates
Public Announcement Method

However, announcements will be placed in the Nihon Keizai Shimbun in cases where it is not possible to makean electronic announcement. URL for announcements: https://www.kitz.co.jp/

Share Unit

100 shares

Major Shareholders (top 10)

Composition of Shareholdersof total
Shareholdings Percent
issued(thousands) shares
(%)

Name

The Master Trust Bank of Japan, Ltd.

9,534

10.58

Kitazawa-kai Stock Ownership Plan

4,926

5.47

Nippon Life Insurance Company

4,303

4.78

Custody Bank of Japan, Ltd.

4,267

4.73

SUMITOMO LIFE INSURANCE COMPANY

3,422

3.80

Kitazawa Ikueikai Foundation

3,411

3.79

KITZ Corporation Trading Partner Stock Ownership Plan

3,312

3.68

Sumitomo Mitsui Banking Corporation

2,553

2.83

KITZ Corporation Employee Stock Ownership Plan

2,162

2.40

SECOM General Insurance Co., Ltd.

1,702

1.89

Treasury stocks
0.3%
Financial instruments business operators
1.1%

Financial
institutions
35.6%

Other domestic companies
13.7%

Foreign investors
14.4%

Individuals and others
34.9%

Stock Price Information(Yen)(Thousand shares)

1,200

Stock price(left)

1,000

50,000800

40,000600

30,000400

20,000200

10,000

0

1

2

3

4

5

6

7

2018

69

60,000Turnover(right)8

9 10 11 12 1

2

3

4

5

6

7

2019

8

9 10 11 12 1

2

3

4

5

6

7

2020

8

9 10 11 12 1

2

3

4

5

6

7

2021

8

9 10 11 12 1

2

3

4

5

6

7

2022

8

9 10 11 120

I N F O R M AT I O N
Outdoor Signboards of KITZ
To increase name recognition, KITZ installed company
advertising signboards at Tokyo Dome.

Tokyo DomeKITZ Website

Please access our website
for smartphones thathas been designed usinglarge buttons for themain menu and is easy
to browse.

https://www.kitz.com/en

https://www.kitz.com/en

Corporate PR Character

Kikumaru is a PR character,designed around the motif of the
Chrysanthemum-Handle® (see Page
30 Focus), created to improve the
KITZ corporate brand. The characteris used at trade expo booths andin sales promotion tools, and isalso actively utilized in all mannerof promotional situations as acorporate PR character.

Name: Kikumaru
Date of birth: October 3, 2007
Gender: N/A
Personality: Sincere and honest.
Active, and full of thespirit of challenge, butsometimes clumsy.
Kikumaru spends its days busy
travelling throughout Japan andaround the countries of the world
as an outstanding KITZ sales
representative.

70

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