Kurita Water Industries Ltd.

Shareholder Relations Meeting forthe fiscal year ending March 31, 2021
(Securities code: 6370)

February - March 2021

Contents
I

Kurita Group Overview

P1-5

II

Medium-Term Management Plan MVP-22(Maximize Value Proposition 2022)

P6-9

III

Corporate Governance Initiatives

P10-22

IV

Initiatives Aimed at the Environment and Society

P23-27

I

Kurita Group Overview

Company Overview & Shareholder Composition
Company Overview

Shareholder Composition (Top 10) (As of September 30, 2020)◼ Name： Kurita Water Industries Ltd.

◼ Representative： Michiya Kadota, President◼ Date of Establishment◼ Location

Rank

Shareholder

Shares(thousand)

Ratio： July 13, 1949

1

The Master Trust Bank of Japan, Ltd. (Trust Account)

8,572,200： Nakano Central Park East, 10-1,
Nakano 4-chome, Nakano-ku, Tokyo

7.37％

2

Custody Bank of Japan, Ltd. (Trust Account)

7,664,883

6.59％◼ Stock Exchange Listing ： First Section of the Tokyo Stock Exchange

3

Nippon Life Insurance Company

5,979,883

5.14％： ¥ 13,450,751,434

4

Kurita Water Industries Ltd.

3,584,076

3.08％

5

STATE STREET BANK AND TRUST COMPANY
5050252,836,210

2.44％

6

Custody Bank of Japan, Ltd. (Trust Account 5)2,254,500

1.94％

7

MUFG Bank, Ltd.

2,056,131

1.76％

8

JP MORGAN CHASE BANK 385781

1,821,905

1.56％

9

Tokio Marine & Nichido Fire Insurance Co., Ltd.

1,680,826

1.44％

10

BNP PARIBAS SECURITIES SERVICES PARIS /JASDEC FRENCH RES / UCITS ASSETS

1,673,800

1.44％◼ Fiscal Year-end◼ Paid-in Capital： March 31◼ Issued Common Stock ： 116,200,694 shares◼ Number of Shareholders ： 21,848 (As of September 30, 2020)

Shareholding Ratio (As of September 30, 2020)
Treasury Stock 3.1％
Individuals
9.5%

Foreigners
46.2%

Financial Institutions
35.4％

Securities Firms
1.5%
Other Domestic Firms
4.3%

Notes:
1. On July 27, 2020, Japan Trustee Services Bank, Ltd. merged with JTC Holdings, Ltd. and Trust &Custody Services Bank, Ltd. and changed its name to Custody Bank of Japan, Ltd.
2. Custody Bank of Japan, Ltd. (Trust Account) includes 274,583 shares for performance-linked stockcompensation to directors.
1

Kurita Group Philosophy System
Systemizing our mission and visions based on the corporate philosophy

Corporate
Philosophy

Core
ValuesCorporate VisionCorporate Philosophy
Study the properties of water, masterthem, and we will create
an environment in which nature andman are in harmony

Basic Policy

1. Kurita Group Code of Conduct

Corporate Vision

2. Corporate Governance Policies
3. Basic Policies for Constructing an Internal Control System

4. CSR Policy
5. Kurita Group BCM Policy (Business Continuity Management)
6. Kurita Group Business Policy“A Creator of unique value to thesolution of water and environment,”
contributing to the realization ofa sustainable society.
2

Kurita’s Business Domains
From factory entrance to exit
Industrial water / groundwater

Manufacturing line
Water Treatment

Manufacturing process

Water treatment facilities◼ Pre-treatment◼ Pure waterproduction◼ Soft waterproduction

Power generation
systems

Refrigeration
systems

Cooling water
treatment chemicals◼ Cooling water
treatment

Wastewater treatment

BoilerBoiler water treatment chemicals◼ Boiler◼ Condenser water
treatment

Utilities

Cooling tower

Air conditioning
systems

Water Treatment
Ultrapure waterproduction systems◼ Ultrapure water production

Process treatment
chemicals◼ Process treatment

Wastewater Reclamation
Wastewater
reclamation
system

RO membrane
treatmentchemicals

Wastewater
treatment chemicals
Wastewater
treatment systems

Industrial
waste

Waterway andsewagedischarge
3

History of Value Creation
Contributing to the resolution of customers’ and society’s issues
in the areas of water and the environment

Net sales(billion yen)

2017/ 2019

Acquired water treatment related companies in the UnitedStates

300.0

1949

1975

1965

Founded as a company in the Water
Treatment Chemicals business (boiler
water treatment chemicals)

Expanded into process treatment
chemicals

Established an overseas company for
the Water Treatment Chemicals
business in Brazil

2002

2015

Launched ultrapure watersupply business

Acquired a water treatment
chemicals business in Europe

200.0

1951
Entered the Water Treatment
Facilities business

1973

1991

Entered the electronics
industry

Launched soil
remediation services

2019/ 2020
Investment in Pentagon Technologies
Group, Inc., which operates a toolcleaning business in the US

100.0

1958

2020

Expanded into
maintenance services

Conclusion of share transfer agreementwith a Middle Eastern water treatment
chemicals company

0.0
1949
Founded (Kobe)

1947
Economic andIndustrial history
Business
perspective

1961
Listed on the Tokyo Stock
Exchange and the Osaka
Securities Exchange

1955

1974
Head office built in Shinjuku, Tokyo

1973

2012
Relocated head officeto Nakano, Tokyo

1991

2010

Post-war recovery
periodHigh economic growth period

Stable growth period

Information society development period

Period of IoT advancement

Industrial water
treatment

Response to environmental
regulations

Contribution to improvement of
productivity

Reduction of energy consumption and waste
Response to new environmental regulations

Recovery and reuse of resources andenergyAcceleration of global expansion
(M&A)

4

Changes in Net Sales and Margin(billion yen)
300

(％)
30.0

257.3

264.8

236.8
214.4

199.7
178.5

181.2

193.8

180.1

178.1

214.2

189.4

150

15.0
14.0

14.8

15.0

15.2
11.7
10.3
8.4

0

3/2009█ Net sales

3/20103/20113/20123/20133/20143/2015

9.3

9.1

9.5

10.0

10.1

3/20163/20173/20183/2019(IFRS)

3/2020(IFRS)

0⚫ Operating income margin (up to and including the fiscal year ended March 31, 2018) ⚫ Business profit margin (from fiscal year ended March 31, 2019)

Net sales are accounted for under Japanese GAAP up to the fiscal year ended March 31, 2018, and under IFRS from the fiscal year ended March 31,
2019 onward.
Operating income margin is used up to and including the fiscal year ended March 31, 2018, and business profit margin is used thereafter.
* Business profit is a proprietary earnings indicator, which is calculated by deducting cost of sales and selling, general and administrative expenses from net sales togive a more consistent picture of earnings.

5

II Medium-Term Management Plan MVP-22（Maximize Value Proposition 2022）

Basic Policy and Priority Measures
Basic Policy

Maximize customer intimacy by dismantling preconceived ideas
and dramatically raising the quality and speed of our work.

Priority Measures⚫ Development of CSV Business⚫ Rebuilding of manufacturing system
for water treatment facilities⚫ Strengthening the foundation andpromotion of research anddevelopment⚫ Enhancement of total solutions⚫ Creation of new business and thepromotion of innovation⚫ Establishment of the Group governancesystem6

Management Targets and Required Measures
Emphasis on profitability and capital efficiency
Management Targets
Net sales organic growth rate

Business profit margin

Return on equity (ROE)

3 ％ or more

15 ％10 ％ or more

Adoption of business segment management using
return on invested capital (ROIC)

Measures(1) Expansion of the service contract
business model for sharing createdvalue(2) Creation of comprehensive contracts
for maintenance and operations
management originating from major
EPC projects(3) Restructuring and downsizing of lowmargin businesses and assets

7

Measures Aimed at Improving Profitability
Business Profit Margin 10% (FY3/20) → 15% (FY3/23)
Shift to a highly profitablebusiness model⚫ Development and deployment of solution
model⚫ Expansion of service contract-typebusiness⚫ Streamlining of low-margin products

Increased profitabilityof overseas businessChange ofbusiness model⚫ Expansion of highly
profitable business⚫ Reduction of fixed expenses⚫ Improvement of productstrength

Business
profit margin

10%

15%

Rebuilding production
process
Improvement of costs andexpense efficiency⚫ Net sales growth ⚫ Improvement ofoperational efficiency⚫ Systeminvestment⚫ Work style reform

3/2020Results

Business
profit margin

Transformation ofbusiness
processes⚫ Reorganization of production sites⚫ Automation of design⚫ Increased efficiency of global
procurement⚫ Global sharing of production
information
3/2023
Target8

Financial Strategy
Priorities of Usage of Funds
Sources of funds⚫ Operating cash
flow

⚫ Sale of shares of otherlisted companies

Robust financial platform⚫ Fundingthrough debt

Growth investment(Ultrapure water supply business, asset-holding type services, M&A)

Renewal of facilities (R&D sites and production sites)

Continued increase of dividends

Share buybacks
9

III Corporate Governance Initiatives

Basic Concept and Basic Policies
Basic Concept

Basic Policies (5 Items)

Corporate Philosophy
Study the properties of water, master them, and wewill create an environment in which nature and man
are in harmony

Establishment of Corporate GovernancePurpose(1) Ensuring the rights and equality of shareholders(2) Appropriate level of cooperation with stakeholders
other than shareholders(3) Ensuring appropriate information disclosure andtransparency of information(4) Duties of the Board of Directors and the Audit &Supervisory Board, etc.
(5) Dialogue with shareholders and investors⚫ Transparent, fair, prompt, and decisive decisionmaking⚫ Highly effective management supervision

Policies (16 Items)
Sustainable Growth and Medium- and Long-Term
Enhancement of Corporate Value
Respect for the rights and position of
stakeholders and meeting their expectations
Customers

Business
Partners

Employees

Shareholders/
Investors

Local
Communities

Only minor changes in FY ending 03/2021

Policies to be revised in FY ending 03/2022 inconjunction with revision of corporate
governance code10Capital Policy (Changes in Dividends and Dividend Payout Ratio)
The dividend payout ratio target is 30% to 50% over five years
（yen）
120

Dividends
forecast to
rise for 17th
consecutive
year

100

(％)
60.0

56.1
52.4

45.4

50.3
50.0

44.3
39.9

80

25.1

26.9

26.8

25.4

37.8
40.0

32.6

30.6
60

38.1

28.4

26.8

30.0

22.5
40

20.0

20

0

18

22

3/20053/2006

28

32

34

36

38

3/20073/20083/20093/20103/2011

42

46

48

50

40

44

52

3/20123/20133/20143/20153/20163/20173/2018█ Dividend per share

54

62

64
10.0

3/20193/20203/2021
Forecast

0⚫ Dividend payout ratio
11Corporate Governance Structure
Voluntarily establish a Nomination & Remuneration Advisory Council anda Successor Planning Committee
Company with an Audit & Supervisory Board
General Meeting of Shareholders
Election/
Dismissal

Consultation

Nomination &Remuneration Advisory
CouncilElection/
Dismissal
Audit meetings

Board meetings

Audit

Reporting Discussion/
Reporting

Resolution

Cooperation

Audit report

President
Reporting
E&S (Environmental & Social)Committee, Investment
Committee and Various Other
Committees

Accounting Auditor

Audit

Election/
Supervision[Business Execution]

Cooperation

Members of the Audit &Supervisory Board

Advisory

Successor Planning
Committee

Election/
Dismissal

Cooperation

Internal Auditing
Department

Executive Committee
Discussion/
ReportingInstructions

Internal audit
Accounting Audit & Internal Control Audit

Operating Divisions
12

Size and Composition of the Board of Directors
The Board of Directors as a whole complements the necessary knowledge,
experience and diversity for management decision making◼ Members: 9 (including 3 independent external directors)
Corporateplanning

Finance/
Accounting
Legal affairs
HR

Michiya Kadota●

Kiyoshi Itou

●

Sales
Name
Japan

Overseas

Yoshio Yamada●

Hirohiko Ejiri●●

Yasuo Suzuki●●

Toshimi Kobayashi●

Tsuguto Moriwaki(external director)
Ryoko Sugiyama(external director)
Keiko Tanaka(external director)◼ Term: 1 year

Development
Production
Technology

Knowledge and experience expected of external
directors
Corporate
management

Environment

International

●

-

-

-

●

-

-

-

●

-

-

-

●

-

-

-

●

-

-

-

●

-

-

-

●

-

-

-

-

-

●

-

-

-

-

-

●

-

-

-

-

-

●

●
●

*Note: This chart is based on information contained in Proposal 2 of the Notice of Convocation of the 84th Ordinary General Meeting of Shareholders.

There shall be three or more directors in total. At least two of these directors shall be
external directors to ensure the independence and objectivity of the Board of Directors.
13

Nomination & Remuneration Advisory Council
Committee established to improve the transparency of the nomination andremuneration decision-making process
Members

Results

Main matters discussed• Three external directors
Candidates for Director, Representative
Director, and Executive Director• One full-time external memberof the Audit & Supervisory
Board• Evaluated all candidates for
director

Nomination• President• One full-time external memberof the Audit & Supervisory
Board
Candidates for member of the Audit &Supervisory Board

Meetings held

3 times

Cases reviewed

9（April - December 2020）• Evaluated candidates formember of the Audit &Supervisory Board• One full-time member of the
Audit & Supervisory Board• President

Remuneration• Executive GM, Corporate
Planning and Control Division• Performance evaluation of
directors and executive officers• Three external directors• One full-time external memberof the Audit & Supervisory
Board• President

Meetings held
Cases reviewed（April - December 2020）

1 time2• Discussed appropriateness of
incentive remuneration• Discussed appropriateness of
fixed remuneration14

Process of the Successor Planning Committee
Planned development of successors
Selection of successor candidates
Assessment

Recommendation

Selection

Development of successor candidates
Interview
Assessment

Confirmation

Interview

Review
Identify areas for
improvement

Setting
initiatives

Confirmation

Successor
Planning
Committee

Boardmeetings

Candidates for President
President
Externalorganization
Directors

President
Successor
Planning
Committee

Boardmeetings

Externalorganization

Executive senior
managing director or
above

President

Executive senior
managing director or
above

Candidates for director

Feedback to candidates, assignment, appointment, etc.
Successor Planning Committee members
Matter for discussion

Members

Selection of president’s successor candidate

Three external directors
One full-time external member ofthe Audit & Supervisory Board

Selection of directors’ successor candidates
Selection of executive officers’ successor candidates
Setting of development measures for successor
candidates

In addition to the above four, the president andexecutive senior managing directors
15

Investment Committee
Enhances the quality of discussions and the speed of investment decision-making by the
Board of Directors and the Executive Committee by strengthening the pre-screening ofinvestment and financing projects
Roles• Review investment and financing projects to be submitted to the Board of Directors or the
Executive Committee for deliberation• Report results of pre-screening and major discussion points to the Board of Directors and the
Executive Committee
Chair

Members

Members

Corporate Planning Department GM, Risk Management Department GM,
Finance & Accounting Department GM, International Finance Control
Department GM, GMs of business management departments in charge ofsales and production

Meetings held

18

Cases reviewed

Investment, M&A
Capex projects
Borrowing, funding
Corporate establishment, etc.
Other

Results(April - December 2020)

Deputy Executive GM, Corporate Planning and Control Division

5
5
5
1
4

total 20 projects

16Evaluation of the Board of Directors
The effectiveness of the Board of Directors is analyzed
and evaluated to identify the future issues
Implementation Method

Evaluation Results(Period Covered: January - December 2019)

Frequency

Once a year

Method- Self-evaluation
Discussion of written survey (with respondents
identified) and tabulated results

Evaluation
Items(1) Board of Directors roles and responsibilities(2) Collaboration with external directors andmembers of the Audit & Supervisory Board(3) Board of Directors composition(4) Board of Directors operation(5) Contributions of individual directors andmembers of the Audit & Supervisory Board(6) Dialogue with shareholders

Note: The evaluation of the Board of Directors for the period from January
to December 2020 is currently underway.

⚫ Average self-evaluation results were generally good in all 6
items.
⚫ Evaluation item (5) was rated particularly highly, and there waslittle variance.
⚫ Evaluation item (1), related to deepening discussion on therelationship between the business strategy and the environmentand society, and providing more specific goals, received a low
rating.

Issue⚫ There is a need to identify and deepen discussion on specificthemes in order to support the creation of long-term corporate
value.

Measures⚫ We will provide opportunities to consider value creation stories
based on integrated thinking and how management capital isused to realize those stories.
⚫ Outcomes of the process will be discussed by the Board of
Directors.
17

Main Governance Initiatives for the Fiscal Year Ending March 2021
Initiatives for FY ending 03/2021

Composition of the Board of
Directors• External directors:

3→3• Internal directors:

8→6
11 → 9Total:

Expected Benefits

Optimizing the size of the Board of Directors andensuring independence and objectivity

Sales in FY ending 03/2021: 4/26 stocks*Of which 2 were partial sales

Reduction of shareholding ofother listed companies(Reference)

FY ended 03/2019: 13*/37 stocks*Of which 4 were partial sales

Investment in growth businesses of funds acquired
from disposals

FY ended 03/2020 2/28 stocks

Provision of information andtraining to directors andmembers of the Audit &Supervisory Board• Seminars by outside instructors
4 times• Explanations of departmental initiatives
2 times
to external directors• External director participation in internal committees• Learning about management strategy such as DX
and integrated thinking• Promotion of external directors’ understanding of
the Company’s businesses and initiatives(April - December 2020)

Strengthening of Group
governance• Reorganizing Kurita Group Basic Policy andBusiness Policy• Evaluating the effectiveness of boards of directors atgroup companies in Japan

Strengthening mechanisms to ensure that group
governance is being practiced appropriately
18

Independent External Directors
Evaluating management from an external perspective andwith the benefit of specialist knowledge◼ Term: 1 year

◼ Restrictions on concurrent positions: Allowed to serve concurrently at up to three listed companies, including Kurita

Tsuguto Moriwaki

Ryoko Sugiyama

Keiko Tanaka

Appointed asJune 2015
director of Kurita

Appointed asJune 2017
director of Kurita

June 2019

Significant
positionsconcurrently
held

Significant
positionsconcurrently
held

Appointed as
director of
KuritaSignificant
positionsconcurrently
held• Vice President, Nissan Financial
Services Co., Ltd.

Board
attendanceReason forelectionNone

12/12 (100%)
Mr. Moriwaki is an individual who
possesses a great deal of knowledge
about manufacturing and corporate
reform. The Company believes that he is
an individual capable of utilizing thisknowledge as well as his experience of
having served in important positions suchas representative director in othercompanies to deliver opinions from an
outside perspective and increase therationality and transparency of theCompany’s management.

Note: Board attendance is for April–December 2020.

Board
attendanceReason forelection• Head and Representative Director, Gifu
Shimbun Co., Ltd.
• External Director and Audit andSupervisory Committee Member, LECIP
Holdings Corporation• External Director, UACJ Corporation• Director, Gifu Sugiyama Memorial
Foundation, a public interest
incorporated foundation
12/12 (100%)
Ms. Sugiyama is an expert in theenvironment and wastes, and has held
important positions such as external
director of listed companies.
The Company believes that she iscapable of expressing opinions from an
outside perspective different from theCompany’s and increasing the rationality
and transparency of the Company’s
management.

Board
attendanceReason forelectionNew

12/12 (100%)
Ms. Tanaka has been active in businessfields that differ from those of the Kurita
Group and possesses a great deal ofknowledge on public relations andmarketing, as well as having held theposition of Ambassador Extraordinary
and Plenipotentiary of Japan to
Uruguay. The Company believes that
she is capable of expressing opinionsfrom an outside perspective different
from the Company’s and increasing therationality and transparency of theCompany’s management.
19Effective Functioning of Members of the Audit & Supervisory Board

Attendance at Board of Directors meetings and active input
Name

Attendance(April-December 2020)

Experience, Capability, and Knowledge

Board of Directors’
meetings

Kenjiro Kobayashi
External ｍemberof the Audit &Supervisory
Board

Independent
Officer

Yukihiko Mutou

Toshiaki Tada
New

External ｍemberof the Audit &Supervisory
Board

Independent
OfficerMr. Kenjiro Kobayashi has been active in different fields to those of the Kurita
Group’s businesses and has high expertise in the areas of finance,
management planning, new business development, M&As, etc., along with awealth of international experience.

Audit & Supervisory
Board meetings

8

12
12

Mr. Yukihiko Mutou has held important positions in the Administrative Division.
He possesses a wealth of knowledge and experience in the areas of finance,accounting, and management.

11

Mr. Toshiaki Tada has special knowledge as well as a wealth of experience anddeep insight into corporate legal affairs as an attorney who has worked inJapan and overseas.

9

8
8

12

8
6

9

6

1. Attendance by members of the Audit & Supervisory Board at meetings of the Board of Directors, Executive Committee, and E&S Committee, andother important meetings, as well as auditing the state of business execution by directors and the oversight duties of the Board of Directors
2. Performs audits of key administrative departments, implements field audits at business sites and Group companies, and conducts survey of the asset
position of the entire Kurita Group and audits of the status of development and operation of the internal control system at group companies
3. Support for members of the Audit & Supervisory Board and cooperation with Internal Auditing Department• Head of Audit Office assists administratively to ensure members can properly perform audit work
• Members direct audit staff as necessary for support work20Remuneration System
Review director performance evaluation indicators
to aim for achievement of management goals
Fixed (68%)*

Directors(excluding external
directors）

Variable (32%)*
Contribution toshareholding
schemeFixed remuneration

Performancelinked
remuneration

Evaluation Indicators

Performancelinked stockcompensation

Evaluation Indicators⚫ Common

Consolidated operating profit⚫ President, Chairman, Executive GM of
Corporate Planning and Control Division

ROE⚫ Executive GM of R&D Division

Ratio of projects completed, R&D investment efficiency (consolidated)⚫ Executive GM of Engineering Division

YoY change in consolidated gross profit margin

Timing of Payment⚫ Executive GM of Solution Business Division

YoY change in consolidated business profit margin⚫ Executive GM of Sales Division

Degree to which a division’s consolidated net sales achieve targets,and YoY change in consolidated business profit margin⚫ Upon retirement⚫ Profit attributable toowners of parent

Fixed (100%)External Directors
Members of the
Audit & Supervisory
Board

Fixed remuneration

Contribution toshareholding
scheme* Calculated using actual remuneration amounts for the fiscal year ended March 2020.
21

Efforts for Dialogue with Shareholders/Investors
Initiative to improve the convenience of
exercising voting rights

New Initiatives (FY ending 03/2021)
Holding of ESG briefing (scheduled for March)

Early forwarding of the notice of convocation

June 1999-

Implementation of a hybrid-attendance virtual general meeting ofshareholders

Adoption of ICJ, Inc.’s platform for electronic
exercise of voting rights

June 2006-

IR Activity in FY ended 03/2020

Institutional
investors(including
shareholders)

Results briefing(including telephone conferencing)

4 times

Small meetings

4 times

Individual meetings
Overseas roadshows

Individual
investors(including
shareholders)

total 250 times
2 times

Promotion of dialogue through SR visits

November 2011-

Preparation of the notice of convocation(reference materials) in English

June 2013-

Quick disclosure prior to notice of convocation

June 2016-

Preparation of English translation of CG report

October 2016-

Produced notice of convocation in color,
added more information(published together with shareholder report;
added candidate photos, graphs, etc.)

Briefing for shareholders held after
General Meeting of Shareholders

1 timePublication of shareholder report

1 timeProvision of more English-translated informationin notice of convocation

June 2018-

June 2018-22

IV Initiatives Aimed at the Environment and Society

CSR Policy
Formulate a CSR policy from both defensive (preventing
impairment of value) and proactive (competitiveness) perspectives
Reconfirm of Corporate Philosophy

CSR Policy

Definition of CSR and Objective of Initiatives

Provide solutions to issues related to water and theenvironment, and fulfill responsibility for the future
Priority themes

The Kurita Group’s
impact on society

Consideration of Priority Themes(Materiality)
LargerBasic themes
1. Provide highly safe services andproducts

Cluster of 30
themesconsideredalong twoaxes

4. Solve issues related to water
resources
5. Realize sustainable energy use

2. Conduct fair business activities
6. Reduce waste
3. Respect human rights

Smaller

Growth opportunity themes

7. Advance industrial production
technologies

LargerStakeholder expectations

CSV
23

CSV Business and Promotion System
Creation of shared value with society through the development andprovision to customers of CSV business
Definition of CSVBusiness
Products, technologies, andbusiness models that contributesignificantly to water-saving, CO2
emissions reduction and waste
reduction compared to previous
levelsPromotion System for CSV Business

External
evaluations andhelping solve
issuesInternal Environmental
Impact Reduction

The Kurita GroupWater

CSV BusinessSelection Standard
With regard to water-saving, CO2
emissions reduction, and waste
reduction:(1) Are significantly more effective
than previous or competing
technologies.
(2) Are new technologies orapplications of existing
technologies in new markets.
(3) Contribute to the action plans
aimed at achieving in the SDGs.

CO2

Waste

Total Solutions

SocialissuesNew Products

SelectAlliances

CSV
Business

Internal/
External Awards

Environmental
Improvement at
Customers

Sharedvalue

Achievements

Higher Earnings
Awards(1) Significantly more effective than previous
or competing technologies.
(2) New technologies or applications ofexisting technologies in new markets.
(3) Contribute to action plans presented in the
SDGs.

KPI
Management

E&S Committee

Executive
Committee

24Responding to Climate Change (Metrics and Targets)Continuous reduction in greenhouse gas (GHG) emissions
based on TFCD recommendations◼ Evaluate risks, opportunities, and impact on business, and formulate measures for Kurita Group◼ Set new long-term targets aligned with the “Well-below 2°C level” for existing CSR policy

Priority themes in CSR Policy

Metrics

CO2 emission reductions at customers– CO2 emissions from our business activities

FY ending
03/2023

Long-term targets
FY ending
03/2031

FY ending
03/2051

10,000 t

-

-

-

27.5％

100%

-

27.5％

-

Scope 1 & 2 emission reductions

5. Realize sustainable energy use(percentage reduction from FY ended
03/2020)
Scope 3 emission reductions(percentage reduction from FY ended
03/2020)

25

Participation in International Initiatives
Serving as Leadership Committee member of the industry-driven
Water Resilience Coalition for preserving water resources
VisionPledgeCreating a world in which water can be consistently supplied to therequired place, in the required quantity, and at the required quality

Global water resilience

Achieve a measurable and net
positive impact in waterstressed* basins on availability,
quality, and accessibility
through industry-leading water
operations and basin initiatives

Raise the global ambitionof water resilience throughpublic and corporate outreachDevelop, implement, andenable strategies to support
leading impact-based water
resilience practices across theglobal value chain.

*A situation in which the maximum available water resource per head of population is less than 1,700 ㎥/year.

Promote effectively by cooperating with environmental improvement activities
based on the CSR policy (solve issues related to water resources)
26

Initiatives for Diversity and Inclusion
Set up dedicated organization to strengthen initiatives
Kurita Water Industries Action Plan (April 2018 - March 2023)
Targets◼ At least 15 women in management positions (by April 1, 2023)

Initiatives

Promotion of
Women’sParticipation
andAdvancementin theWorkplace(1) Career planning support for women in career
track positions(2) Increase the ratio of female recruits(3) Expand the roles of female employees(4) Support career development through the selfreporting system◼ Achieve a ratio of 30% or more for women among new
graduate recruits for career track positions
Advancement of
Measures to
Support Raising
Next-Generation
Children(1) Ease workplace restrictions(2) Promote use of annual paidleave(3) Promote male participation inchildcare(4) Provide time for childcare“Diversity & Inclusion Group” launched in October 2020
PurposeSeek to improve the competitiveness of the Kurita Group by leveraging diversity in human resources

Initiatives

Formulate vision of the future, cultivate corporate culture through “job satisfaction” and “comfortable working environment”

27Forward-looking Statements
The plans and values contained in this document are decided based on information available at the present time.
They contain risks and uncertainties, and therefore may differ from actual results.