Kurita Water Industries Ltd.

Fiscal year ending March 31, 2024

Sustainability Briefing(Securities code: 6370)

January 16, 2024

Contents
Ⅰ

Kurita Group’s Sustainability Management

1- 6

Ⅱ

Initiatives in Shared Value Themes

7 - 14

Ⅲ

Initiatives in Basic Themes

Ⅲ-1

Human Resources Strategy

16 - 23

Ⅲ-2

Intellectual Property Strategy

24 ｰ 27

Ⅳ

Strengthening Corporate Governance28 ｰ 31

Ⅴ

Appendix

32 ｰ 34

15

Ⅰ Kurita Group’s Sustainability Management

President and Representative Executive Officer

Hirohiko Ejiri

New Stage of Creating Shared Value
Based on the foundation of providing social value by making full use of "water knowledge" and solving to customers'
issues, we are moving to the stage of pioneering new businesses and markets based on social value.

Enteredthe electronics industry

Launched ultrapure watersupply business

Established“Kurita Innovation Hub”

Launched soil
remediation services

Creating
SharedValue

Achieved 100%
wastewater reclamation
Expanded into process
treatment chemicals
Deployed precision
tool cleaning services

Founded with
the Water Treatment
Chemicals businessA new stage of value creation

BeforeMVP-22

PSV-27
Positioning sustainability at the core of our management strategy

1Corporate Philosophy and Philosophy System

Study the properties of water, master them, and we will create
an environment in which nature and humanity are in harmony

Pioneering “new value for water” to contribute to the realization ofa sustainable society⚫ Deepen understanding of frontline sites⚫ Elevate and connect expertise⚫ Exceed expectations⚫ Maintain unwavering integrity

2

The Kurita Group’s Materiality
Positioning sustainability at the core of our management strategy and identifying key issues to realize our Corporate
VisionIdentifying
Sustainability Issues

Theme

Social Value

Economic Value

Realizing asustainable
society

Achievinghighprofitability

Materiality

Shared Value
Realizing
the Corporate
VisionContributions to the SDGs

Solve issues related to water resources

Impact of sustainability
issues on the Kurita
Group’s corporate value

SharedValue
ThemesContribute to the realization of a decarbonized society
Contribute to building a circular economy society
Develop and disseminate innovative products,
technologies, and business models
Strategic development and utilization of human resources

Social and environmental
Impact of the Kurita Group’s
initiatives in response tosustainability issues

Basic
ThemesProvide highly safe and quality products and services
Conduct business activities respecting human rights
Conduct fair business activities
3Materiality Metrics (Targets to be achieved by March 31, 2028)
Shared Value Themes

Basic Themes
Develop and disseminate innovative products, technologies, and business models

Solve issues related to water resources
Total number of basins where collective actions are implemented and total
population in the basins

5 basins,
600 million people

Investment rate in innovation areas*

30%

Rate of the number of themes in innovation areas*

30%

Number of stakeholder engagements related to innovation areas*
Amount of water savings through CSV business

300 million m3

Continuous increase
every year

Strategic development and utilization of human resources

Rate of reduction in the ratio of GHG emissions to water saving throughCSV business (compared to FY2023)

50%

Engagement Score(a. rate of companies above the average of all industries, b. Score of eachcompany surveyed)

Rate of reduction of water intake intensity (compared to FY2023, excluding
the ultrapure water supply business)

20%

Rate of women, foreigners, and experienced personnel among executives of KWI

40%

Fill rate of human resources for development, digital, and intellectual property

80%

Number of individuals, organizations and groups we engage with to raiseawareness on water resources

Continuous increase
every year

Provide highly safe and quality products and services
Reduction rate in the recurrence rate of accidents that affect customers and society(compared to the previous year)

Contribute to the realization of a decarbonized society
Rate of reduction in Scope 1+2 emissions (compared to FY2020)

73%

Avoided GHG emissions through CSV business

22%
1,500 thousand tons

In-house waste recycling rate

Continuous implementation

Accident Severity Rate (KWI, and group companies in Japan)
Rate of participation in human rights-related training

Establishment of a liaison for remedies from human rights violations (grievancemechanism)

Contribute to building a circular economy society
Rate of increase in resource recovery or reduction of resource input throughCSV business (compared to FY2023)

20%

Conduct business activities respecting human rights
Conducting human rights due diligence on suppliers

Rate of reduction in Scope 3 emissions (compared to FY2020)

a: 75%
b: Continuous increase

0.005 or less100%
Completed

Conduct fair business activities
300%
Continuous increase
every year

Rate of participation in whistle-blowing system related training

100%

Rate of participation in training related to laws and internal rules for anti-bribery andantitrust, etc.

100%

Number of violations of anti-bribery and antitrust laws0

* Refers to the '' innovation area'' in Deloitte 7cells, which is Deloitte's approach to formulating growth strategies.

4

PSV-27 and the Kurita Group’s Materiality
Kurita’s Universal VisionCorporate Philosophy

New value for water

Medium-term Management Plan PSV-27

Vision for 2030

Main Non-Financial Indicators

Create and provide creative and high valued solutions

Financial Indicators¥450.0 billion
Net sales
Business profit margin on sales 16%
ROE
12% or more
ROIC
10% or more

Electronics
industries

Generalindustries

Business expansion

CSV business-based:
Amount of water savings

Diversifying and deepening the service businessInitiatives toAddress Climate
Change and Other
Environmental
IssuesExpansion of the CSV business
Financial
Strategy
Establish acompetitive advantage

Transformation based on
customer value

Digital Strategy●

Human Resources for
Digital Technology

300 million ㎥

Avoided GHG emissions
1,500 thousand
tons
Rate of increase in resource
recovery or reduction of
300% increase
resource input●

Innovation Strategy

Production Strategy
Human Resources
for Development●

Human Resources forIntellectual Property●

Human Resources Strategy

Values- Conduct business activities respecting human rights

Enhancement of Corporate Value
Creating shared value
Social value

Economic value

Materiality
Shared Value Themes- Solve issues related to water resources- Contribute to the realization of a decarbonizedsociety- Contribute to building a circular economy society

Innovation based onsocial valueIntellectual
Property Strategy

Corporate Vision- Conduct fair business activities●･･･ Activities where indicators and targets linked to each materiality theme are set

Basic Themes- Develop and disseminate innovative products,
technologies, and business models- Strategic development and utilization of humanresources- Provide highly safe and quality products andservices- Conduct business activities respecting humanrights- Conduct fair business activities

Corporate Governance5

Promoting System and PDCA
Sustainability Committee promote and manage each responsible department’s action for achieving its metrics andtargets
Consult

Board of Directors
Executive Committee
Discuss & Report

Instruction

Sustainability Committee

The Kurita Group’s Materiality

Sustainability
Advisory Council

Supervision

ReportAdvisePromote &ManageOrganizations in Charge*
Each Division of
Kurita Water Industries

Various Committees
International Initiatives

Activity plan

ReportBasic themes

1. Solve issues related to water
resources
2. Contribute to the realization of adecarbonized society
3. Contribute to building a circular
economy society

4. Develop and disseminate innovative
products, technologies, andbusiness models
5. Strategic development andutilization of human resources
es6. Provide highly safe and quality
products and services
7. Conduct business activities
respecting human rights
8. Conduct fair business activities

Verification and improvement

Chair: Executive General Manager, Sustainability Division
Committee members: Appointed from each division
Secretariat: General Manager, ESG Integration Department;
General Manager, Ethics & Integrity Department

Shared value themes

Materiality metrics and targets
Above themes linked to 10
metrics/targets

Above themes linked to 14
metrics/targets

Group Companies* Department responsible for promoting materiality initiatives for each metric

Activities

Results

Disclosure

Stakeholder
engagement

6Ⅱ Initiatives in Shared Value Themes

Corporate Officer
Executive General Manager of Sustainability Division

Hisashi Tanabe

Initiatives in Shared Value Themes
Kurita’s Universal VisionCorporate
Corporate Philosophy
Philosophy

New value for water

Medium-term Management Plan PSV-27

Vision for 2030

Main Non-Financial Indicators

Create and provide creative and high valued solutions

Financial Indicators¥450.0 billion
Net sales
Business profit margin on sales 16%
ROE
12% or more
ROIC
10% or more

Electronics
industries

Generalindustries

Business expansion

CSV business-based:
Amount of water savings

Diversifying and deepening the service businessInitiatives toAddress Climate
Change and Other
Environmental
IssuesExpansion of the CSV business
Financial
Strategy
Establish acompetitive advantage

Transformation based on
customer value

Digital Strategy●

Human Resources for
Digital Technology

300 million ㎥

Avoided GHG emissions
1,500 thousand
tons
Rate of increase in resource
recovery or reduction of
300% increase
resource input●

Innovation Strategy

Production Strategy
Human Resources
for Development●

Human Resources forIntellectual Property●

Human Resources Strategy

Values- Conduct business activities respecting human rights

Enhancement
Enhancement ofof Corporate
Corporate Value
Value
Creating
Creating sharedshared value
valueSocial value

Economic value

Materiality
Shared Value Themes- Solve issues related to water resources- Contribute to the realization of a decarbonizedsociety- Contribute to building a circular economy society

Innovation based onsocial valueIntellectual
Property Strategy

Corporate
Corporate Vision
Vision- Conduct fair business activities●･･･ Activities where indicators and targets linked to each materiality theme are set

Basic Themes- Develop and disseminate innovative products,
technologies, and business models- Strategic development and utilization of humanresources- Provide highly safe and quality products andservices- Conduct business activities respecting humanrights- Conduct fair business activities

Corporate Governance7Creating Shared Value with Society by Using the Unique
Characteristics of Our Business
Leveraging our unique characteristics that we have been working to solve special and industrial issues in the fields ofwater and the environment since our foundation
Shared Value Themes
Solve issues related to water resources
Total number of basins where collective actions are implemented and total
population in the basins
Amount of water savings through CSV business5 basins,
600 million people
300 million m3

Rate of reduction in the ratio of GHG emissions to water saving through CSV
business (compared to FY2023)

50%

Rate of reduction of water intake intensity (compared to FY2023, excluding theultrapure water supply business)

20%

Expansion of
CSV BusinessContinuous increase
every year

Kurita’s internal environmental
improvement

Rate of reduction in Scope 1+2 emissions (compared to FY2020)

73%

Participation in global initiatives

Rate of reduction in Scope 3 emissions (compared to FY2020)

22%

Number of individuals, organizations and groups we engage with to raiseawareness on water resources
Contribute to the realization of a decarbonized society

Avoided GHG emissions through CSV business

1,500 thousand tons

Contribute to building a circular economy society
Rate of increase in resource recovery or reduction of resource input throughCSV business (compared to FY2023)
In-house waste recycling rate

Enhanced
corporate value
for Kurita GroupEngagement with outside
stakeholders

300%
Continuous increase
every year8

Solve Issues Related to Water Resources
Major initiatives

Business Contributions⚫ Effective use of water resources through facilities, chemicals and services that
improve water use efficiency, such as wastewater reclamation⚫ Development of CSV business (models contributing to water savings as of December 2023: 22 models)
Examples:➢ Reclaimed water supply services: Provide recycled water as an alternative to tap waterand at a lower cost through a service that requires no operational management➢ Water-saving boiler treatment chemicals：Water treatment chemical that does notincrease the ion concentration of boiler water enables boiler operation with higher cycle ofconcentration to reduce the supply and blowdown required to replace boiler water.

Social Contribution Activities⚫ Participation in the Water Resilience Coalition

Creating Shared Value
Materiality indicators (PSV-27)
Total number of basins wherecollective actions are implemented andtotal population in the basins

5 basins,
600 million people

Amount of water savings through CSV
business

300 million m3

Rate of reduction in the ratio of GHG
emissions to water saving throughCSV business (compared to FY2023)

50%

Rate of reduction of water intake
intensity (compared to FY2023,
excluding the ultrapure water supply
business)

20%

Number of individuals, organizations
and groups we engage with to raiseawareness on water resources

Continuous increase every
year➢ With a Colorado River basin project in the US and a PCJ River
Basins project in Brazil, we launched the Impact Together campaign aimed at solving water issues➢ We support the development and widespread adoption of the Water Action Hub, a free online
platform under the CEO Water Mandate that supports water resource conservation activities bycompanies and organizations➢ We help create summarizes and guidance regarding Net Positive Water Impact (the state companies
should aim for in their water resource conservation activities as advocated by the WRC)

Estimating Economic Value(for the fiscal year Ending March 31, 2024)

Approx. 20 billion yen *CSV business net sales
45 billion yen* As we have a business model in which three shared value themes overlap; and contribute,
total economic value exceeds 45 billion yen.

9

Contribute to the Realization of a Decarbonized Society
Major initiatives

Business Contributions⚫ At plants that use water, we broadly offer facilities, chemicals and services that
demonstrate high energy conservation effects while also contributing to the reduction of
GHG emissions⚫ Development of CSV business (models that contribute to reduced GHG emissions as of December 2023: 55 models)
Examples:➢➢Dropwise Condensation Technology：Achieving energy savings by improving heat transfer efficiency of heatexchangers that generate steam

Extremely low-pressure RO membranes： Reducing water pump power by applying membranes with high water permeability

Promoting Net Zero Initiatives in line with Metrics Indicated by SBTi
● Gradual replacement of gasoline-powered vehicles with electric vehicles

Scope 1

Scope 3Medium- and longterm target
2050
Net-Zero

Materiality indicators (PSV-27)

Rate of reduction in
Scope 1 + 2
emissions(compared to thefiscal year ended
March 31, 2020)

Fiscal year ending March
31, 2031

73%

Scope 1 + 2

100% reduction
Scope 330% reduction

Rate of reduction in
Scope 3 emissions(compared to thefiscal year ended
March 31, 2020)

22%

Avoided GHG
emissions throughCSV business

1,500 thousand tons

Fiscal year ending March
31, 2051

Scope 1 + 2 + 3

100% reduction● Replacement of fuel with renewable energy● Use of renewable energy for power used at business locations

Scope 2Creating Shared Value● Measures to reduce Scope 2 not derived from power● Reduction of Scope 3 through promotion of CSV business /Transformation of products and services provided and businesses● Change in external environment (customers’ shift to renewable energy)

Estimating Economic Value(for the fiscal year Ending March 31, 2024)

Approx. 24 billion yen*
CSV business net sales

45 billion yen* As we have a business model in which three shared value themes overlap; and contribute,
total economic value exceeds 45 billion yen.

10

Contribute to Building a Circular Economy Society
Major initiatives

Business Contributions⚫ We leverage the technologies and extensive knowledge we have cultivated by working
with water to promote the effective utilization of resources, including technologies toreduce the waste generated by water treatment and recycle the waste into new
resources⚫ Development of CSV business (models that contribute to resource recovery or reduction of
resource inputs as of December 2023: 30 models)Creating Shared Value

Materiality indicators (PSV-27)

Rate of increase in resource
recovery or reduction of resource
input through CSV business(compared to the fiscal year ended
March 31, 2023)

300%

Examples:➢ Used Diaper Recycling System: Recycling of used diapers into recycled plastics and other resources➢ Fluorine resource recycling business: Recovering calcium fluoride from hydrofluoric acid wastewater
discharged by the semiconductor industry and producing and distributing artificial fluorite
In-house waste recycling rate

Continuous increase every year

Contributions Through Activities Within the Kurita Group⚫ We promote efforts to reduce the amount of waste generated due to our businessactivities (including hazardous substances) and for the waste that is generated, we work
to recycle it or convert it into valuable resources as much as possible➢ Waste reduction and resource recycling through the review of waste disposal methods➢ Waste reduction through the redesign and reuse of raw material containers

Estimating Economic Value(for the fiscal year Ending March 31, 2024)

Approx. 16 billion yen*
CSV business net sales
45 billion yen* As we have a business model in which three shared value themes overlap; and contribute,
total economic value exceeds 45 billion yen.

11Selection of CSV Businesses
Products, technologies and business models that meet the following standards regarding water savings, GHG emission
reductions, the resource recovery or resource input reductions are selected as CSV businesses(As of December 2023: all 82 models)

CSV Business Selection Standards

Significantly more effective
than previous or competing
technologies
or
New technologies orapplications of existing
technologies in newmarkets

Contribute to theachievement of SDG targets++

Contribute to reduction of
Scope 3 emissions in the
Kurita Group12

Calculating Social Value
The social value of a CSV business is measured by developing coefficients to express areas of observed superiority
compared with previous offerings
CSV business
name

Water-saving
boiler treatment
chemical(Cetamine)

Previous productused as thestandard forcomparison

Overview

Water treatment chemical (volatile substances) that
does not increase the ion concentration of boiler water
enables boiler operation with higher cycle ofconcentration than previous products. In addition to
reducing the supply and blowdown required to replaceboiler water, it also reduces GHG emissions byimproving the heat exchange rate of the boiling heattransfer surface and reducing fuel consumption.

Regular boiler
water treatment
chemicals

Formula(1) Amount of water savings:
Amount of chemicals shipped (kg) x coefficient(m3/year/kg)(2) Reduction in GHG emissions:
Amount of chemicals shipped (kg) x CO2
coefficient (t/year/kg)

Social Value(superiority)

Effects due to previous
technology(regular boiler water
treatment chemicals)

Social value of theCSV business(Cetamine)
13

Creation of New CSV Businesses
Developing CSV businesses through innovation and transformation in innovative fields to create shared value

Roll out of a CSV business in the innovation areas of Deloitte 7cells
Markets/Customers
New(for the world)

Innovation areas

KuritaDropwise
Condensation
Technology

Example of achieving atransformation basedon customer value
New(for our company)

Creation of newmarkets by
expanding theapplication ofexisting technologies

Used Diaper
Recycling System

Example of creating an
innovation based onsocial value

Existing

Existing

New

New(for our company)(for the world)

Products andservices
14

Ⅲ

Initiatives in Basic Themes

Enhancing Management Foundations for the Creation of Shared Value
To firmly establish the foundations underpinning the creation of shared value, we have also set promotion metrics for basic
themesBasic Themes

Today’s focus : underlined themes

Develop and disseminate innovative products, technologies, and business models
Investment rate in innovation areas*

30%

Rate of the number of themes in innovation areas*

30%

Innovation strategy, including Intellectual property strategy /Digital strategy / Engineering strategy

Continuous increase
every year

Number of stakeholder engagements related to innovation areas*
Strategic development and utilization of human resources
Engagement Score(a. rate of companies above the average of all industries, b. Score of each company surveyed)a: 75%
b: Continuous increase

Human Resources Strategy

Rate of women, foreigners, and experienced personnel among executives of KWI

40%

Fill rate of human resources for development, digital, and intellectual property

80%

Provide highly safe and quality products and services
Reduction rate in the recurrence rate of accidents that affect customers and society(compared to the previous year)

20%

Currently being worked on as a range of engineering strategies(See Page 46 of the Integrated Report 2023)

Conduct business activities respecting human rights
Conducting human rights due diligence on suppliers
Accident Severity Rate (KWI, and group companies in Japan)
Rate of participation in human rights-related training
Establishment of a liaison for remedies from human rights violations (grievance mechanism)

Continuous
implementation
0.005 or less100%
Completed(See Page 4, 68 and 74 of the Integrated Report 2023)

Conduct fair business activities
Rate of participation in whistle-blowing system related training

100%

Rate of participation in training related to laws and internal rules for anti-bribery and antitrust, etc.

100%

Number of violations of anti-bribery and antitrust laws
* Refers to the '' innovation area'' in Deloitte 7cells, which is Deloitte's approach to formulating growth strategies.

Instillment of the values
Integrity activities

015

Ⅲｰ1 Human Resources Strategy

Corporate Officer
Executive General Manager of Sustainability Division

Hisashi Tanabe

Strengthening Human Capital as the Basis for Creating Shared Value
Kurita’s Universal VisionCorporate
Corporate Philosophy
Philosophy

New value for water

Medium-term Management Plan PSV-27

Vision for 2030

Main Non-Financial Indicators

Create and provide creative and high valued solutions

Financial Indicators¥450.0 billion
Net sales
Business profit margin on sales 16%
ROE
12% or more
ROIC
10% or more

Electronics
industries

Generalindustries

Business expansion

CSV business-based:
Amount of water savings

Diversifying and deepening the service businessInitiatives toAddress Climate
Change and Other
Environmental
IssuesExpansion of the CSV business
Financial
Strategy
Establish acompetitive advantage

Transformation based on
customer value

Digital Strategy●

Innovation Strategy

Production Strategy

Enhancement
Enhancement ofof Corporate
Corporate Value
Value
Creating
Creating sharedshared value
valueSocial value

Economic value

Materiality
Shared Value Themes

Innovation based onsocial valueIntellectual
Property Strategy●

300 million ㎥

Avoided GHG emissions
1,500 thousand
tons
Rate of increase in resource
recovery or reduction of
300% increase
resource input

Corporate
Corporate Vision
Vision- Solve issues related to water resources- Contribute to the realization of a decarbonized society- Contribute to building a circular economy society●

Basic Themes- Develop and disseminate innovative products, technologies, andbusiness models

Human Resources for
Digital Technology

Human Resources forDevelopment- Strategic development and utilization ofhuman resources

Human Resources forIntellectual Property●

Human Resources Strategy

Values- Conduct business activities respecting human rights- Conduct fair business activities●･･･ Activities where indicators and targets linked to each materiality theme are set- Engagement Score- Rate of women, foreigners, and experienced
personnel among executives of KWI- Fill rate of human resources for development,
digital, and intellectual property- Provide highly safe and quality products and services- Conduct business activities respecting human rights- Conduct fair business activities

Corporate Governance16

Our Vision
By strengthening human capital, we will create a virtuous cycle of “increase in differences” and “permeation ofshared value” and realize our D&I vision.

In terms of the state of personnel
and organizations
when realizing our corporate vision

Transforming into a corporate group that
continues to create new value for water

Diverse humanresources andexperience

D&I Vision
The corporate group that
continues to create new value
for water through interaction
among diverse people who careabout water and the environment
and who accept each other’s
differences.

Diversity

Virtuous cycle as aresult of increasein differences

Trust from
customers andsociety

Creation of
new value
for water

Innovation
Increase indifferences

Harmonizationof individuality

Affinity withour corporate
philosophy

Virtuous cycle
as a result of
permeation ofshared value

Engagement

Permeation ofshared values

Inclusion

17

Our Approach to Initiatives
Determine the state of personnel and organization to realize our D&I vision and formulate the approach toinitiatives
Human Resources Policy
A group of professionals in a range of fields who obtain joy from their contributions to customers, society and the global
environment through their work at the Kurita Group with their commitment to creating new value.

Changes in the External Environment◆ Changing attitude in Japan towards
the seniority system and the conceptof life-time employment◆ Diversification of working styles◆ Advancements in digital technology
and growing demand for digitalspecialists

Personnel

Organizations

1. Personnel that use worksite data to identify issues and deliver
solutions and business models through numerous contacts
within and outside the Group.

1. Organizations that generate new value through innovation
without being shackled by the principle of self-sufficiency anddifferences between organizational units that welcome
challenges undertaken with an agile approach, and value theidea of learning from past mistakes.

2. Personnel that strengthen business with the following thoughts
and actions:- The accumulation of data and information to create explicit
knowledge that can be harnessed to create and provide
value- The utilization of new technologies- The highly accurate and rapid forecasting and quantificationof Kurita’s value
3. Personnel that possess an administrator’s point of view andhave the capacity to think logically.

Direction of Human Resources Utilization
Utilizing and securing human resources◆ Actively utilize engineers in technological fields including humanresources for development that support Kurita◆ Use human resources for intellectual property to predict thedirection of development and maintain the competitive
advantages of development outcomes◆ Create new value with human resources for digital technology

Personnel system◆ Development of a personnel system providing the Group
with two strengths: cooperation among human resources
and active participation of individuals who possess a highlevel of expertise

2. Organizations that identify with the corporate philosophy, andwork earnestly to solve issues faced by customers, society,and the global environment.

Changes in the Internal
Environment
Global business expansion through M&As

Direction of the Organization

FY ended
03/2014

FY ended
03/2023

Overseas sales
weightingApprox.
20％

Approx.
50％

Ratio of overseas
employees

Approx.
20％

Approx.
50％

Organizational culture◆ Transformation into a group with a high level of engagementwith permeation of D&I

Organization structure◆ Promote overseas local employees to management roles◆ Improve the organization’s global responsiveness◆ Instill shared values in Group employees

18Indicator（KGI）
Setting the engagement score as KGI based on the fact that strengthening human capital leads to "improved
engagement"

Realize
our D&I vision

Engagement Score Status
Results of theSurvey for the
Fiscal Year Ending
03/2024

Targets
for the Fiscal
Year Ending
03/2024

Targets
for the Fiscal
Year Ending
03/2028

a. Percentage of Group companies exceeding
all-industry average:51%

50% or more

75% or moreb. Scores from all Group companies surveyed:

41%

38% or more

Continuous
increase

Materiality: Engagement Score

Promotion of humanresources (HR) strategy

KGI
Continual improvement ofengagement score

Strengthening
human capital➢ In the survey for the fiscal year ending March 2024, the scope was expanded to 44 Group companies(four companies were previously surveyed), and the survey was run over July and August 2023
➢ Of 6,785 targeted employees, responses were received from 5,799 (response rate of 85%)

Trends varied by country and region, and to improve Groupwide engagement,
we will identify issues by confirming the background, conducting cause
analysis and other activities, formulate countermeasures, and take action

19

Indicator（KPI）
Manage the progress of the entire HR initiatives, tracking the KGIs (engagement scores), and KPIs (priority measures)
KGI

Continuous improvement in employee engagement scores
a. Percentage of Group companies exceeding all-industry average: 75％ (Result for FY ended 03/2022: 50％)b. Scores from all Group companies surveyed： Continuous improvement (Result for FY ended 03/2022: 38％)

KPI
Approx.

FY ending 03/2031

Approx.50%

30%

FY ending 03/2028

Approx.

40%

10%

Approx.

Approx. 80-90%30~40％

Approx.2-8 weeks

Above
previous
surveyApprox.

80%

80％

FY ending 03/2026

35%

75%

FY ending 03/2024

30%

65%

Current levels

27%

4.1%

29%

10.6%

KPIs

Percentage ofbusiness execution
management roles
filled by women,
foreign nationals andmid-career hires

Percentage ofmanagement
roles filled by
women

Percentage ofcareer-track
recruits who
are women

Percentage of
mid-career
recruits in theworkforce

Initiative Areas

Organizational culture

Above
previous
survey68%
23days

42%*

73%

32%

59%

38%*

Percentage ofmale employees
taking childcare
leave / length of
leave

D&I
Execution
level

Percentage of
executives atoverseassubsidiaries who
are local
employees

Percentage of globallyminded personnel inmanager-equivalent
positions at head office

Level of sufficienthuman resources fordevelopment, digitaland intellectual
property

HR system
operation level

Securing and utilizing
human resources

HR system

Organizational structure

Strengthening human capital＊Due to a change in the calculation method, the previously disclosed figures have been revised retroactively.

20

Utilization of Human Capital
Achieve D&I by promoting important behaviors and utilizing diverse knowledge and experience throughout the group

Accelerate transformation and innovation by realizing the D&I vision➢ Conduct assessments based on group-wide evaluation criteria for management
candidates at each group company
Assignment to management teamAchieving
D&I

Expanding initiatives
across all Kurita group

Achieving
D&I
Permeation and establishment of theKurita Group Philosophy System

Building the base for engagement➢ Based on the assessment results, management team candidates are developed andpromoted by each company, and also are considered as the management teamcandidates at the parent company➢ Develop cross-functional initiatives across the entire value chain and assign suitablepersonnel from all Kurita group
Connected lab, Global Marketing Team, Global Project by industries, DX-Summit, Global Supply Team,
Controllers Meeting, Group HR Meeting➢ Introduction of a system to share and praise initiatives and challenges that embody
the Kurita Group Philosophy System throughout our group
Kurita Global Award➢ Established group-wide “Behavioral Guidelines" demonstrating positive behavior
based on "Values"
Conduct group-wide workplace discussions and formulate "Behavioral Guidelines" that reflect employee
voices➢ Established behavior evaluation criteria based on the "Behavioral Guidelines" andencourage important behaviors for gall group employees
21Enhancement of Human Capital : Securing and Nurturing
Securing human resources need to be strengthened and implementing various training measures

Accelerate transformation and innovation by realizing the D&I vision
All employees

Personnels to be strengthened

Personal development of individuals

Present

110 people
AdviceExperience

Training

FY ending 03/2028
Approx.

130 people⚫ Utilization of technology-oriented humanresource maps
➢ Visualize the degree of sufficiency in humanresources for each of roughly 30 technology
categories

Support
Systems➢

1on1 meetings,
coaching, etc.
➢

Career preference surveys➢ Implementation of a structured humanresource development program

Talent Management Platform
Personnel placement using
career aspirations and humanresources data, overseas
training, etc.
➢ Creating a self-learning
environment through internaland external e-learning,developing training programs
within the group, etc.

Human Resources forIntellectual Property

Human Resources forDevelopment
Present

15 people

FY ending 03/2028

Approx.

30 people⚫ Cultivating, retaining and boosting
numbers of human resources who areable to utilize intellectual property inbusiness➢ Visualization of intellectual property-related
skillsHuman Resources for
Digital Technology

180 people

Approx.

750 people⚫ Securing and developing humanresources for digital technology➢

Promoting improved IT literacy among
human resources outside IT
departments➢

Specialized training for humanresources who are highly digitally
literate➢

Collaborations with startups➢

Hiring of experienced personnel fromoutside the company➢ Fostering of strategic thinking through IP
landscape activities and other initiatives⚫ Promotion of globalization

FY ending 03/2028

Present

Medium- to long-term humanresources reinforcement

Medium-term human resources
reinforcement

Early-stage human resources
reinforcement

Systematic cultivation of humanresources

Spread of intellectual propertyoriented human resources

Acquiring human resources who are
immediately effective＊The number of personnel for each person represents the situation for the fiscal year ended March 2023.

22

Enhancement of Human Capital : Expanding Diversity
Promoting co-creation within human resources from a wide range of backgrounds, to transform into an organizationthat creates new value for water
Number of Employees by Region

Expanding and leveraging diversity

EMEA

571

Japan

3,876

North & SouthAmerica

Key Measures

1,690⚫ Empowering Female Employees

7,784(As of March 31, 2023)⚫ Supporting Mid-Career Hires

Asia⚫ Supporting Globally Minded Personnel

1,647

Ratio of female
employees

Ratio of female
managers
13.2%

25.3%

(As of March 31, 2023)⚫ Creating a Comfortable Working
Environment for a Diverse Workforce(As of March 31, 2023)

Setting andpromoting theachievementof multifaceted
KPIs

Forming open connections inside and outside the Group, and combining a diverse range ofexperiences, knowledge and skills

Creating solutions and business models
that bring about innovation and create new value for water23

Ⅲｰ２ Intellectual Property Strategy

Corporate Officer
Executive General Manager of Innovation Division

Hiroyuki Suzuki

Intellectual Property (IP) Strategy as the Platform for Innovation
Kurita’s Universal VisionCorporate
Corporate Philosophy
Philosophy

New value for water

Medium-term Management Plan PSV-27

Vision for 2030

Main Non-Financial Indicators

Create and provide creative and high valued solutions

Financial Indicators¥450.0 billion
Net sales
Business profit margin on sales 16%
ROE
12% or more
ROIC
10% or more

Electronics
industries

Generalindustries

Business expansion

CSV business-based:
Amount of water savings

Diversifying and deepening the service businessInitiatives toAddress Climate
Change and Other
Environmental
IssuesExpansion of the CSV business
Financial
Strategy
Establish acompetitive advantage

Transformation based on
customer value

Digital Strategy●

Human Resources for
Digital Technology

300 million ㎥

Avoided GHG emissions
1,500 thousand
tons
Rate of increase in resource
recovery or reduction of
300% increase
resource input●

Innovation Strategy

Production Strategy
Human Resources
for Development●

Human Resources forIntellectual Property●

Human Resources Strategy

Values- Conduct business activities respecting human rights

Enhancement
Enhancement ofof Corporate
Corporate Value
Value
Creating
Creating sharedshared value
valueSocial value

Economic value

Materiality
Shared Value Themes- Solve issues related to water resources- Contribute to the realization of a decarbonizedsociety- Contribute to building a circular economy society

Innovation based onsocial valueIntellectual
Property Strategy

Corporate
Corporate Vision
Vision- Conduct fair business activities

Basic Themes- Develop and disseminate innovative
products, technologies, and businessmodels- Strategic development and utilization of humanresources- Provide highly safe and quality products and services- Conduct business activities respecting human rights- Conduct fair business activities●･･･ Activities where indicators and targets linked to each materiality theme are set

Corporate Governance24Intellectual Capital of the Kurita GroupThe patent assets owned by Kurita are rated No.1 in the industry, in terms of both quantity and quality
Rejecting other companies’ patent application
Ranking 2022

Patent Asset Size Ranking 2023
(Engineering industry)Intellectual Capitalof the Kurita GroupRank(As of March 31, 2023)

Japan

1,463

Number ofregisteredpatents
Overseas

Japan
Number of
filed patents(Basic)

1,180

120

179

Patent asset Number ofsize (pt)patents

Rank

Company name

Number ofpatents cited

3,687.7

111

1

Kurita Water
Industries

NIPPON STEELEngineering

3,531.985

2

JFE Engineering286

3Organo3,100.9

115

3

Organo140

4

JFE Engineering

1,809.2

54

4

Hitachi Power Solutions

111

5

Swing

1,655.9

45

5

NIPPON STEEL Engineering

97

6

Hitachi Power Solutions

1,545.2

33

6

Toray Engineering

797Kobelco Eco-Solutions

1,353.4

37

7

Toshiba Plant Systems & Services

78

8

Mitsubishi ElectricEngineering

1,312.9

33

8

Swing

77

9

Mitsubishi Heavy
Industries Environmental& Chemical Engineering

1,140.7

12

9

TAKUMA

68

10

TAKUMA

1,085.1

23

10

Kobelco Eco-Solutions

67

1

Kurita Water
Industries

2(Annual)Overseas

Company name(Engineering industry)Announced on November 1, 2023

* Quoted from the Patent Result Co., Ltd. website

331

Announced on July 7, 2023

25

Intellectual Property Utilization Initiatives Under PSV-27
Utilizing intellectual property strategically through offensive and defensive IP activities
Offensive IP activities⚫ Utilization in strategy formulation through analysis of IP/non-IP information(creation of competitive advantage)⚫ Promotion of co-creation (open innovation, consideration of M&A)
⚫ Ascertaining and utilization technology-oriented human resources and technologicalcompetitivenessManagement strategy
Business strategy
Innovation strategy➢ Anticipating the future by utilizing IP landscape methods

Defensive IP activities⚫ Maintaining and improving Kurita’s competitive advantage throughthe acquisition of IP rights⚫ Mitigating business risks by preventing infringements of the IP rights ofBusiness
protection

other parties➢ File patents to substantiate development outcomes and build barriers➢ Examine the entire value chain, identify the technologies and business models that need to
be protected, and file patents for them
➢ Develop a patent portfolio➢ Action to prevent or mitigate business risks, such as the acquisition and exercising of rights

Preventing infringementof other parties’ rights

26

Offensive IP Activities to Create an Competitive Advantage
Formulate strategies from IP landscape-based analysis, and promote the development and dissemination of innovative
products, technologies, and business models
Materiality

Management strategy
Megatrends

Business strategy
Innovation strategy

Develop anddisseminate innovative
products, technologies,
and business models

Market changes

IP information(External)

Innovation based onsocial value

Anticipating
market changes

IP information(Internal)

IP landscapeAnalysis

Customers andsales
information

Strategization
Futureprediction oftechnologies

Research and development

Transformation based on
customer value

Business expansion

Collaboration with partners
Hypothesis

Development of open innovation
27

Ⅳ Strengthening Corporate Governance

External Director

Yoshiko Takayama

History of Kurita’s Corporate GovernanceContinuously strengthening corporate governance to meet the expectations of shareholders and other stakeholders
MVP-22 April 2018-March 2023

To March 2018
Organizational
designBoard
chairperson

PSV-27 From April 2023
⚫ Transition in June 2023

Company with a Nominating
Committee, etc., system

Company with an Audit & Supervisory Board system⚫ From June 2023

President, Chairman

Chairman, non-executive⚫ 2006 Introduced the corporate officer system⚫ 2014 Appointed an independent external director⚫ 2014 Reduced the term of office for directors from two years to one

Audit Committee⚫ 2016 Established Nomination &Remuneration Advisory Council⚫ 2016 Started evaluating the effectiveness of the Board of Directors

Corporate
governancestructure

Nominating Committee⚫ 2018 Appointed a female external director⚫ 2018 Established the Investment Committee⚫ 2019 Established the Successor
Planning Committee⚫ 2009 Abolished the retirement benefit system for directors

Compensation Committee⚫ 2017 Increased the proportion of remuneration linked to consolidated results
performance and introduced a performance-linked stock compensation program⚫ 2019 Revised the remuneration system for corporate officers

Remuneration
system⚫ 2022 Trialed reflecting non-financial indicators in
performance evaluation standards⚫ From April 2023 Inclusion of non-financial indicators
and TSR outcomes in performance
evaluation standards for executive
officers and corporate officers＊ Fiscal years ended March 31

28

Corporate Governance Structure
Supervision (Directors)

Execution (Executive Officers and Corporate Officers)

By maintaining a clear separation from the business executionside, the Board of Directors focuses on management
supervision with the perspectives of shareholders

Executive officers and corporate officers make decisivedecisions on business execution in a speedy fashion under
the appropriate supervision of the Board of Directors
Supervision

Kenjiro Kobayashi

Keiko Tanaka

Michiya Kadota

Hirohiko Ejiri

Hirohiko Ejiri
President and Representative
Executive Officer(Chairman)

Executive General Manager ofRegional Management Division(Director)

Masahiro Miyazaki

Yoshiko Takayama

External Directors

Shuji Shirode

Yukihiko Mutou

Internal Directors

Katsuya Amano

Kunihiro Kuse

Jordi VERDÉS Prieto

Executive General Manager ofEngineering Division

Head of Europe andNorth America Region

Diversity
Chairperson

Chairperson

Members
Kenjiro Kobayashi
Masahiro Miyazaki
Michiya Kadota
Hirohiko Ejiri

Nominating Committee

12 people

Executive General Manager ofElectronics Industry Division and Chief
Business Officer for Electronics Industry

Composition of each committee

Keiko Tanaka (external)

Corporate Officer

Executive General Manager of Corporate
Control and Administration Division(Director)

Discuss /ReportFour of the eight directors (50%) are independent external directors

Chairperson

Shuji Shirode
Managing Executive Officer

Members
Keiko Tanaka
Yoshiko Takayama
Michiya Kadota
Hirohiko Ejiri
Masahiro Miyazaki (external)

Compensation Committee

Members
Yoshiko Takayama
Yukihiko Mutou

Composition of theBoard of Directors

Composition of
executive officers

Ratio of female
directors

Ratio of nonJapanese nationals

25%

20%

Kenjiro Kobayashi (external)

Audit Committee

29

Initiatives to Enhance Discussions at Board of Directors Meetings
Establish a clear role as a monitoring board, tasked with discussing and considering the future of the Group at along-term time frame
Roles of the Board of Directors

01

Time Frame for Consideration

Consider the future of the Kurita Group based ona ten-year time frame at the shortest

Major direction of the company with a focus on
determining basic management policies

02

Objective supervision through the nominationof top management (executive officers
including the president)

03

Support for appropriate risk taking by top
management2049(100th anniversary)

Present

2028

2033

2050

PSV-27
Changes in the internal andcompetitive environment

POST PSV-27

Changes in Business Environment

04

Determination of matters required by law to be
exclusively decided by the Board of Directors,
and other designated matters

Changes in the Macro Environment30

Establishment of the Sustainability Advisory Council
The Sustainability Advisory Council on the supervisory side will examine Kurita’s approach to sustainability
management from the perspective of multi-stakeholders including shareholders and from a medium- to long-term
perspective

Consultation

Sustainability Advisory Council

Board of Directors
AdviceReportSupervision

Chairperson

Under a structure mainly comprisingexternal directors, supervise and back up
executive initiatives

External Director

Yoshiko Takayama

Identify key themes, thoroughly discuss
them, and report to the Board of Directors

Executive Committee
Members
Discuss / Report

Director

Kenjiro Kobayashi

Michiya Kadota

Confirm the progress of materiality metrics,
and verify the transition of changes frommedium- to long-term perspectives

Decide / Instruct

Sustainability Committee
ReportExternal Director

External Director

Director

Keiko Tanaka

Hirohiko Ejiri

Promote / Manage

Advance discussions with a view toimproving the comprehensive corporate
value of the company

External Director

Divisions and Group Companies

Masahiro Miyazaki

Including outside experts as needed31

Ⅴ Appendix

CSV business： Reclaimed Water Supply Services
TargetSocial issues

Solution, competitiveness, social valueMarket size
(estimated)

Lack of water resources essential forthe manufacturing industry due to the(Additionallyimpact of climate change, population
targeting South
growth, progress in industrialization,
Korea, Taiwan and etc.
North America)

RegionJapan, China

SolutionContributing to customers’ water- saving by collecting a various types ofwastewater to reclaim and supplying water (recycled water) that has been
purified to a level that can be reused in manufacturing processes, etc.

Competitiveness- IP rights protection through multiple patents- Achieving stable operation even under high operating conditions- Providing recycled water in the amount and quality that meets customer
needs

Industry

Contributions to the SDGs

Chemicals,Electronics,
Automobile, Steel

Supplementary information

Social value（Kurita group’smateriality themes
and metrics）- Solve issues related to water
resources

48 billion yen
per year- Amount of water savings

Solution outline

Customer’s voice: Click here
Innovative water recovery
technology: CORR system

32

CSV business：Kurita Dropwise Condensation Technology
TargetSocial issues

Solution, competitiveness, social valueMarket size

Region(estimated)

Global

1. Global warming due to GHG
emissions
2. Promoting the expansion of theintroduction of environmentallyfriendly technologies

Solution

CompetitivenessContributing to energy-saving and productivity improvement, by inducing
water-repellent properties in the surface of the heat exchanger using steam toboost heat transfer efficiency- IP rights protection through multiple patents- Easily applicable to a wide range of heat exchanger use points- Analysis know-how to quantify customer value

Industry

Contributions to the SDGs

All manufacturingindustries thatuses steam

Supplementary information

Social value（Kurita group’smateriality themes
and metrics）- Realization of a decarbonizedsociety

30 billion yen
per year- Avoided GHG emissions

Solution outline

PR Movie：Click here
Supplemental information：- 2019:Won Agency of Natural Resources andEnergy Director-General's Award in the2019 Energy Conservation Grand- 2022:Invention Encouragement Award
presented by the Invention Association of
the Kanto Region- 2023:
Won the Sasaki Award from the Japan
Technical Association of the Pulp andPaper Industry

No water repellency

Water repellency

33

CSV business：Used Diaper Separation and Treatment System
TargetSocial issues

Solution, competitiveness, social valueMarket size

Industry

Region(estimated)

Japan

Local
municipalities,
waste disposal
company

Super-aged society causing;
1. Increase in volume of useddiaper wastes
2. Increase in energy consumption
and CO2 emission due toincineration of used diapers

Solution

CompetitivenessContributions to the SDGs
Social value（Kurita group’smateriality themes
and metrics）

Supplementary information

Recycle disposable diapers, which were previously incinerated, by sterilizing,
washing, disassembling and separating them into plastics and pulp
- IP rights protection through multiple patents- Securing safety and operational efficiency, and reducing
environmental impact- Recycling wastes in diverse ways according to their intended use

60 billion yen
per year（CY2030）- Realization of a decarbonized- Avoided GHG emissions
society- Rate of increase in resource recovery- Building a circular economy societyor reduction of resource input
System flow

Supplemental information：- 2021 & 2022 Support for High-efficiency Installations for Facilities with Targets ofMinistry of the Environment in Japan- Selected as a project for the “Demonstration Project for a Plastic Resource
Circulation System toward a Decarbonized Society" Program of the Environment
in Japan34

Forward-looking Statements
This presentation contains forward-looking statements, business plan projections, and judgments based on information
available to management at the time of writing. Due to the existence of a variety of risk factors and uncertainties, actual
results may differ from those specified or implied by these forward-looking statements and projections.
The product or service names and logos used in this presentation are trademarks or registered trademarks of theCompany or other companies.