*This news letter is an English translation of LIXIL Corporation’s news letter issued on March.21, 2012 in Japan

March 21, 2012
LIXIL Corporation

Ongoing Water Environmental Awareness
Program Being Provided in Cooperation withInternational NPOs

Environmental Awareness
Program in Vietnam 2012
Hue, Hanoi- Learned the Importance of Water with Local Children February 16-21, 2012
Since 2007, LIXIL Corporation and its local subsidiary INAX VIETNAM Co., Ltd. (“VINAX”) havebeen conducting the “Water Environmental Awareness Program” for children in the Socialist Republicof Vietnam (“Vietnam”). At present, LIXIL Corporation and VINAX are promoting the program incollaboration with two international NPOs, namely Bridge Asia Japan (“BAJ”) and Seed to Table(“STT”).
Since the foundation of VINAX by former INAX in 1996, LIXIL Corporation have manufactured andsold flush toilets and lavatory sinks in Vietnam and successfully increased sales. At present, INAX
sanitary ware has the largest share in Vietnam, where we are also promoting tile and plumbing fixture
businesses. In addition, our subsidiary ASAP is also doing business in Vietnam, and we are planningto establish a new sash manufacturing plant there in 2013.
As a result of rapid economic growth, Vietnam has been facing a range of problems which societalsystems are having difficulty to deal with. Those problems include the broadening gap between thewealthy and poor, environmental pollution, sanitation problems, children’s rights, etc. As a company
that has grown to achieve its current status during economic growth in Vietnam, LIXIL (former INAX)
aims to do whatever it can to benefit Vietnamese society.

Since 2007, in collaboration withwell-established international NPOs, LIXIL has been providing local support through environmental
education. Our education focuses on “water” that is truly necessary for the children of Vietnam tobecome future leaders of their country. We are consistently providing environmental education not
merely by giving financial aid, but by making curriculums and suggestions taking into account local
societal factors and circumstances, for example, by means of offering original curricular programs
such as “Let us think about and study water” and sending LIXIL staff as instructors.
For the second time after LIXIL integration, we carried out the environmental awareness program inHue (in central Vietnam) and Hoa Binh Province (in the north of Hanoi). The following is a report ofthe activities we conducted locally in the period from February 16 through February 21 (6 days) inVietnam together with staff from the NGOs BAJ and STT.
Table of contents■February 17: Environmental Classes together with BAJ
at Farming Villages in the Suburbs of Hue■February 18: Participation in a Trial of “BAJ Eco-Tour”
in the Tui Byeu district, Hue (the Ancient Capital)■February 19: Environmental Classes Given together with STT
in Mountain Regions (in the North of Hanoi)■February 20: Opinion Exchange Meetingin Dich Giao village, Hoa Binh Province■Summary of the itinerary in Hanoi and Hue, Vietnam■Principles and history of environmental awareness program in Vietnam1

■ Environmental Classes together with BAJ atFarming Villages in the Suburbs of Hue [February 17]
Located in central Vietnam, Hue is the ancient capitalwhere Nguyen Dynasty (the last Dynasty in Vietnam)
existed.

Along the Huong River, We can enjoy thescenery remnant from the days of Nguyen Dynasty, whichmakes Hue thrive on domestic and foreign tourism.

Inareas a little far from the city center, farmers are still living a
traditional life making best use of what is offered by nature.
However, with the rapid economic growth, traditional
lifestyle has been less and less popular.

Children moving towards activity site

In order topreserve local nature, lifestyle and wisdom to be taken overgenerations, BAJ started to visit local farmers together withchildren from 2004. The aim of the visits is to reconsider
the value of local nature and lifestyle as well as to deepenunderstanding of environment conservation by observing
local people’s ways of living and by conducting soil/water
testing.
On the 17th of February, the first day of the “Water
Resource Awareness Initiative”, we gave environmental

Quality test of water from nearby river byperforming “Pack Test”

classes in the Vin Thai district (in Phu Vang) and in the Vinh
Hai district (in Phu Loc) located in the suburbs of Hue,
together with BAJ staff (Messrs. Toe, Katayama andAraishi). BAJ started development of those areas recently.
Those areas are located downstream of the Huong River,facing Tam Giang (largest lagoon in Vietnam). Not only
children in the Vin Thai district but also children anduniversity student volunteers in the Tui Byeu district (inHue) participated. By organizing various activities across

A class being given using texts

districts, we try to provide children with a place for meetingchildren/people from other districts and an opportunity to become interested in other districts andenvironment conservation.
During our visit at farmers’ house in the Vin Thai district, we conducted water quality test by
sampling various types of water used by farmers including agricultural water, drinking water andrainwater. Using simple water quality test kit named “Pack Test,” which measures PH levels, COD
levels, and the quantity of phosphorous and nitrogen, we learned how to use water for different
purposes, and we scientifically confirmed the water quality in the region. After conducting the test,
we gave environmental classes using texts of Kamishibai-size (size of paper used for picture-storyshow). We learned together the importance of water, which is invaluable resource of the Earth’secosystems. By conducting scientific tests and giving comprehensive lectures about water, we aim to2provide comprehensive learning about water.
We conducted the same water quality test by visiting farmers in the Vinh Hai district. By conducting
the test at different farmers’ house, we discover different ways of living and using water as well as
points of difference and similarity, from which we can accumulate our knowledge and information about
local characteristics.

In addition, repeated tests will improve water testing skills of children.

Furthermore, in the Vinh Hai district, we held an opinion exchange meeting with the vice-president ofdistrict council to discuss about local water issues. The vice-president informed us of water wellrelated issues including drought during summer and submergence caused by floods during rainyseason. This provided a good learning opportunity for LIXIL as well as university student volunteers.
Participation in a Trial of “BAJ Eco-Tour” in the Tui Byeu District, Hue (the Ancient Capital)■[February 18]
The Tui Byeu district is about 7km far from the city center of Hue and is famous for pomeloproduction. BAJ has created good relationship of mutual trust with local people through constantactivities. In addition to the efforts made so far, BAJ is planning a new “Eco-Tour” with the objective to
make tourists understand traditional lifestyle of farmers as well as to make local farmers rediscover“values of their lifestyle” inherited from their ancestors.
On the 18th February, the second day of the program, we participated in a trial of “Eco-Tour” together
with children and their parents from the Tui Byeu district. We learned from farmers about vegetationin their garden, which is specific to the region, and we experienced cooking traditional food. We also
enjoyed a game in which participants had to find free-range eggs. By playing that game, children canlearn naturally about and become interested in how to raise farm animals and their ecology. We will
strive to strengthen collaboration with NPOs by actively getting involved in their new challenges.

Wewill also confirm participants’ reactions so that LIXIL staff can improve their teaching skills (how tochoose topics and how to proceed).

Experience of cooking using peel ofbananas

Free-range eggs found in theIntroduction and tasting of local foods

garden of a farmer’s house

Environmental Classes Given together with STT in Mountain Regions(In the North of Hanoi) [February 19]
Phu Vinh is located in Tan Lac (in the Hoa Binh Province), about three hours north by car from Hanoi.

■It is a village of about 3,900 people in about 820 households spread out over 12 distinct hamlets.
Since 2009, STT has been working on agriculture with reduced chemical use, the Aigamo (a cross3between a wild and a domestic duck) farming method, andenvironmental education, under the theme of promoting
eco-friendly

agriculture

andsupporting

communitydevelopment.

The Phu Vinh Village is one of the target

villages of those activities.
LIXIL held environmental classes in the Phu Vinh Village forthe first time last summer.

This year, totally 72 people(including youth group and elementary and middle school

Phu Vinh municipal office where classes
were given

students who could not participated last time) from 10 different
hamlets participated in our environmental classes.
In the morning a class was held using our original texts “Let us
think about and study water”. The class focused on a basic
knowledge of water and the Earth’s ecosystems, such as the factthat even though water covers about 70 percent of the Earth, onlya small fraction of that water is potable. The class also addressedissues related to “water” that are more pertinent to lifestyles in rural
Vietnam, for example, keeping one’s hands and body clean can
prevent infectious diseases.

The class lasted two and a halfChildren eagerly reading the texts

hours in a chilly classroom without heating system, but children eagerly read the text and answered toour questions enthusiastically. Based on their daily lives, they learn the importance of water as a finiteand invaluable resource.
In the afternoon the groups were split up by hamlet. Samples of the water for drinking andagricultural purposes were collected in advance at each village and tested for quality using “Pack Test”.
To conduct filtering test, the participants made their own “filtering equipment” by putting stones, sand,and soil into plastic bottles. This equipment operates using simplified natural mechanism throughwhich dirty water such as rainwater is filtered while being absorbed into the ground. The use ofstones and sand seemed to be a common way of filtering in Vietnam, but young men and children
cheered when they saw clean transparent water coming out of the plastic bottle. Mr. Song (Head ofGeneral Affaires, VINAX) commented “Children in Phu Vinh Village are used to making tools bythemselves. They worked very efficiently and the test went very smooth”.

Filtration test conducted by putting stones first, followed by sand and soil.

4How we conducted tests

Our environmental classes were accompanied by news people in Vietnam,
who interviewed STT staff, youth group members, and children.

Local

support through environmental programs by Japanese companies has beendrawing much attention of local media and newspapers. We would like to
use this opportunity to increase people’s awareness about environmental
conservation including water.
Ms. Inou, representative of STT, answering in an interview by local media interview■

Opinion Exchange Meeting in Dich Giao Village, Hoa Binh Province [February 20]

Dich Giao is located near Phu Vinh Village. It is a village of about 3,600 people in about 840
households spread out over 14 distinct hamlets. In recent years, the village has been facing issues
related to waste disposal and water source contamination. Village representatives and youth groups
took interest in solving those issues with the help of our environmental education. This opinion
exchange meeting was organized under such circumstances.
Through interviewing local people about the current situation of village, we learned that inhabitants’knowledge and information are not catching up with the rapid change of their lifestyle in recent years.
For example, they used to use plant leaves for wrapping crops, which were thrown away on theground to return to the soil. However, those plant leaves were replaced by plastics, and today, they
are left on the ground as indecomposable waste. In addition, soil has been contaminated by the useof chemical herbicides for cultivation of corns, which are the source of income for the village.
Furthermore, water contamination caused by people washing empty containers close to the invaluable
water source without a care has been a big concern. There has been an increasing need for better
understanding and proper use of convenient “things” that came into our life such as plastics andchemicals.

Correct understanding of environmental issues will prevent water contamination andprotect living environment. We will try to extend our support by finding out what we could do withlocal people.
In the afternoon, we moved to Hanoi to visit VINAX. Ms. Inou (representative of STT) reported STT
activities of 2011 to Mr. Shinji Ito (President of VINAX) and they discussed about future activities.
This kind of meeting is held once a year and it offers a good opportunity to deepen mutual
understanding and to discuss further practical collaboration.
Through this program, we realized again how children are conscious about what is going on in their
immediate surroundings and what is needed to be discussed. In addition, we came to discover
specific regional issues in addition to country level issues. We are committed to continue our practicalactivities paying more attention to regional level issues utilizing the knowledge we acquired.

5

[Summary of the itinerary in Hanoi and Hue, Vietnam]
Feb. 16: Arrival of LIXIL staff in Hue, Vietnam
Feb. 17: Environmental classes & hands-on training in the Vin Thai district (in Phu Vang) and in the Vinh Hai
district (in Phu Loc)
Feb. 18: Participation in eco-tour in the Tui Byeu district (in Hue)
Move to Hoa Binh Province
Feb. 19: Environmental classes & hands-on training in Phu Vinh Village (in Hoa Binh Province)
Feb. 20: Hearing in Dich Giao Village (in Hoa Binh Province)
Numbers of participants in environmental education programs
Environmental classes & hands-on training (morning class/afternoon class) in Vin Thai district (in Phu Vang) andVinh Hai district (in Phu Loc): about 35 (total)
Eco-tour in Hue: about 30
Environmental classes & hands-on training in Phu Vinh Village Hoa Binh Province: about 72
Accompanying staff from BAJ: Bridge Asia Japan
Vietnam Office: Huynh Hue Tue, Emiko Katayama
Tokyo Head Office: Shoji Araishi
Accompanying staff from STT: Mayu Inou, representative of Seed to Japan
Instructors from LIXIL: Satoshi Ono, Chiemi Kumazaki, Environmental Management Promotion Division
Instructors from VINAX: Khuat Duy Song, General Affaires Division

http://www.baj-npo.org/■ Bridge Asia Japan (BAJ)

BAJ is a Japanese non-profit organization founded in 1993.

As its name indicates, BAJ works as a bridge

between Asia and Japan, through international cooperation.

In Vietnam, BAJ carries out assistance activities

mainly to address child poverty. As for environmental education, BAJ began preparations in 2002 to start
providing education to local children in Hue from 2004.

Various supports carried out by BAJ include collection ofvaluable resource such as plastics and establishment of wastewater treatment facility to avoid domestic
wastewater from flowing into the river. Thanks to such practical supports by BAJ, more and more local children
are thinking and acting on their own.

■ Seed to Table （STT）

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

STT is a Japanese non-profit organization founded in July 2009. Through cooperation with Vietnamese people,
STT aims to protect the indigenous seeds, nature and culture, to develop an economic basis enabling local
people’s self-sufficiency as well as to improve their income so that Vietnamese people can live happily with theirfamilies and friends.

In addition to recording and communicating local wisdom of living including farming

methods, STT strives to provide a place for meeting and discussing with people, to foster next generation leaders,
and to promote eco-friendly agriculture and community development in Vietnam. Hoa Binh Province in the northof Hanoi is the base of STT activities.

6

[Principles and History of Environmental Awareness Program in Vietnam]
In 2006, the former INAX (now LIXIL) began searching not just for a way to provide funds and supplies, but forpartners who could take actions that are meaningful for local residents and will support their future. In 2007,former INAX began concrete activities with well-established NPOs.

Using extensive experiences in water

related issues gained by former INAX, we aim to support the kind of education that is truly necessary for thechildren of Vietnam to become future leaders of their country. Furthermore, the kind of education that thecompany promotes goes beyond merely telling children not to throw trash in rivers because they will become
polluted, but making children understand the causes of river pollution and to think for themselves about what they
can do to prevent it. Integration under LIXIL has not changed our commitment based on this philosophy tocontinuing such practical environmental educational programs taking into consideration local circumstances, withthe collaboration of BAJ, STT, and VINAX.
Record of major activities
2007:

Activities begun with BAJ and Save the Children Japan (“SCJ”) (3-year contract) Development of original
educational texts (April)
Training of VINAX staff to become instructors; briefing to government and educational organizations
Commencement of environmental educational programs targeting educators and children in Yen Bai northof Hanoi and Hue (June through August)

2008: Children from Yen Bai and Hue are invited to the Eco-products International Fair (Hanoi); VINAX factory
tour (March)
Environmental educational programs in Yen Bai and Hue (June)
Environmental educational programs in Yen Bai, Hue, Ho Chi Minh, and Qui Nhon (December)
2009: Environmental educational programs in Yen Bai, Hue, and Ho Chi Minh (July)
2010:

Activities begun with BAJ and STT
Environmental educational programs in Hue and Qui Nhon.
Visit to the tile factory of INAX Vietnam Tile Co., Ltd. (January)
Environmental educational programs in Nam Son Village, Hoa Binh Province, Hue, and Ho Chi Minh (July)

2011: Environmental educational programs in Nam Son Village, Hoa Binh Province, Hue, and Ho Chi Minh(January)
Environmental educational programs in Phu Vinh Village, Hoa Binh Province, Hue, and Ho Chi Minh (July)
Activity report by Namson Village inhabitants, VINAX factory visit (July)

7