KITZ GroupLong-term Management Vision

Beyond New Heights 2030
Change the ‘Flow’© KITZ CORPORATION All Rights Reserved© KITZ CORPORATION All Rights Reserved

I. Corporate Mission and Management Vision© KITZ CORPORATION All Rights Reserved｜1Corporate Mission
KITZ’ Statement of Corporate Mission
We strive to build a robust global environment and sustainable future bysupporting societal infrastructure through our advancements in fluid control
technologies and materials.
On the occasion of the 70th anniversary of our founding last year, we discussed thesignificance of our existence as a company and our contribution to society, and decided torevise our corporate mission, "KITZ’ Statement of Corporate Mission," as we announce ourLong-term management vision. We recognize that our mission to society is to create aprosperous global environment and a sustainable future, and we have a strong desire tocontinue to support social infrastructure by further refining the fluid control technology andmaterials development that we have cultivated since our founding.

© KITZ CORPORATION All Rights Reserved｜2

Long-term Management Vision
Long-term Management Vision
Beyond New Heights 2030
Change the ‘Flow’Our aspirations for 2030
Technology/Solutions
KITZ will continue to challenge in Stream, Block and Squeeze by leveraging its oneof-a-kind technology and exceeding the user’s expectations through its powerfulproposal capability.
Core Business/Growth Business
KITZ will strengthen the foundations of its core business for the information andsustainable society, while also accelerating its entry into growth businesses without
fear of risk.
Environmental conservation through business
KITZ will garner favor with society by contributing to a sustainable future, pursuingenvironmentally friendly product and material development and production
processes.
Diverse human resources
KITZ will ensure each and every employee, regardless of gender, age, nationality orculture, can work in high spirits at maximum performance as professionals.
© KITZ CORPORATION All Rights Reserved｜3

Corporate Philosophy Structure
Corporate Philosophy Structure

KITZ’ Statement ofCorporate Mission

Long-term Management Vision

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

Beyond New Heights 2030
Change the ‘Flow’

Do it KITZ Way
Guidelines for Action

Do it True
Do it Now
Do it New
© KITZ CORPORATION All Rights Reserved｜4II. Management Structure and Quantitative Targets© KITZ CORPORATION All Rights Reserved｜5Management structure and financial targets
Management Structure
Business domain

Business model

Expansion into growth areas based oncore businesses

Management with both growth potential
and return on investment

Semiconductor
Building facilities

Fine chemicals

Petrochemicals
and generalchemistry

Hydrogennew business

Revenue Growth

Return on Investment
Maintenance Service
Key Account Marketing
Product Lifecycle Management

Market SectorAreaProduct

FY2030 Financial Targets
Average sales growth rate

4% or more

(FY2030: consolidated sales scale of 200 billion yen)

ROE

10% or more

(FY2030: consolidated net income of 10 billion yen)
© KITZ CORPORATION All Rights Reserved｜6III. Business structure targeted for 2030
- Shift in Business Domains© KITZ CORPORATION All Rights Reserved｜7

Business structure targeted for 2030

Shift in business domains

Aim for two-sided management that can generate earnings in corebusinesses and growth areasProactively allocate resources to growth fields and regions against the backdrop ofdigitalization and de-carbonization
Business development with emphasis on return on invested capital (ROIC)●2050
Digital×KITZ

Achieving
Carbon neutrality

・Semiconductor
・Data Center・Water treatment (pure water)

Digital(semiconductor)●2030
SDGstarget

Green×KITZ

・Hydrogen
・LNG
・Water treatment(hygiene and health)●2021Green(de-carbonization)

Core Business(Current main business field)

Building facilities / Petroleum and general chemistry© KITZ CORPORATION All Rights Reserved｜8

Business structure targeted for 2030

Long-term strategic investment policy
Total investment budget (9 years): 80 billion yen

 Approximately 60% of this amount will be allocated to strategic investment ingrowth and new fields (including DX and M&A)
 Focused allocation of management resources to shift business from core businesses

Total investment budget: 80 billion yen (9-year cumulative total)
Semiconductor

Growth/New
business

Corebusiness

DX

Fine Chemicals

HRDevelopment

MaintenanceHydrogen

New Business/marketingAutomation

M&A

Environmentalmeasure© KITZ CORPORATION All Rights Reserved｜9IV. Basic Sustainability Policy© KITZ CORPORATION All Rights Reserved｜ 10Basic Policy and Slogan on Sustainability
Basic Policy on Sustainability

To realize”KITZ‘ Statement of Corporate Mission ”, which expresses the KITZ Group'scorporate philosophy, we will work toward the following:
1. Strive to increase both corporate value and social value by delivering solutions tosocial challenges through our businesses
2. Be an enterprise that deserves society's trust, through realizing efficient, fair,and transparent, highly ethical corporate management
3. Build unshakeable relations of trust through dialogue with all stakeholders

Slogan on Sustainability

Create the Future
The KITZ Group will act and take on challenges without
fear of change and create a new future aimed at realizing
a recycling-based society which is friendly to the earthand people.
Preserve the Future
The KITZ Group will continuously protect the earth’s
finite resources and people’s lives and will wok to realize
a society in which we can preserve things for the nextgeneration.
© KITZ CORPORATION All Rights Reserved｜ 11Sustainability Management (Overall Picture)
Sustainability management will be placed at the core of management
strategy in the Long-term strategy toward 2030.

KITZ’ Statement ofCorporate Mission

Long-termManagement Vision

Basic Policy on Sustainability
Our aspirationsfor 2030
Technology/Solutions
Shifting the focus ofour business
Environmental
conservation throughbusiness

Guidelines
for action

Activities of diverse
human resources

Key Themes for
Sustainability Management

environment

・Carbon-neutral / Resource recycling
・Innovationsocialgovernance・Sustained・Corporate governanceimprovement in・Risk management
employee・Complianceengagement
・Building a sustainablesupply chain© KITZ CORPORATION All Rights Reserved｜ 12Key Themes for Sustainability Management
Key Themes for
Sustainability Management
Carbon Neutral /Resource recycling

EInnovation

SG

Sustained improvement
in employee engagement

Initiatives
 Deployment of KPI targets to achieve "triple zero”(CO2 reduction rate / water resource discharge / waste
landfill disposal rate) Development of fluid control technology to support a
decarbonized/hydrogen-powered society Development of materials that contribute to reducing
environmental impact
 Penetration of corporate philosophy and long-term vision Promote D&I and foster a culture of collaboration
 Human resource development and system reforms to support
global management Realizing workplace environments in which employees canwork with vitality

Building a sustainablesupply chain

 Emphasis on CSR procurement
 Establishment of a structure for stable procurement of raw
materials and parts

Corporate GovernanceRisk management
Compliance Further enhancement of transparency in management
decision-making
 Risk management that focuses on both risk reduction andopportunity creation
 Global compliance conducive to sustainable management© KITZ CORPORATION All Rights Reserved｜ 13

ESG Initiatives : Environment
We will promote triple-zero (“zero CO2,” “zero environmental impact,” and “zero risk”)
initiatives aiming to create a sustainable, recycling-oriented society in 2050

Long-term environmental vision 3 ZERONET Zero CO2 emissions

Zero environmental impact

Promotion of de-carbonization

Promotion of resource recycling

Prevention of 3(Environmental Pollution,Occupational Accidents, Fires)-Water Neutral-Zero environmental accidents

2030

-90％＊

2050

-100％

Carbon neutrality

Compared to 2013,
Domestic Group Companies/Offices

Zero risk

Promote water conservation,
circulation, and recharge

Environmental pollution: 0 incidents(wastewater, VOCs, etc.)-Zero Emissions-Zero occupational accidents

Promotion of the 3Rs
Promotion of recycling of casting sandConsideration for packaging materials
Promotion of paperless system
Promoting Green Procurement

Serious accidents: 0 incidents
Disabling injury frequency rate:
less than 0.10

-Zero fire accidents

Fire and explosion accidents: 0-Pollution Prevention

Elimination of VOC (paints, chlorinesolvent)Main KPI
CO2 reduction rate

FY2030 Targets (* Compared to FY2013, in Japan)-90%*-50% including overseas

Waste landfill disposal rate

Less than 1.0%

Water resource discharge-100%© KITZ CORPORATION All Rights Reserved｜ 14

ESG Initiatives : Society
Activities of Diverse
Human Resources
KPI

To be acompany thatcontinues tobe chosen

Regardless of Age, Disability, Gender, National Origin, Race, Religion or Culture, KITZ
employees are dedicated to being professional and work vigorously to achieve theirbest performance and common goals.

KPI Driver

ValuesJob
responsibility

Diversity

Employeeengagement
Autonomy andpersonal growth

Health andsafety

Socialresponsibility

Specific measures/expected effects
Sharing ofmanagementvisionjob-based
personnelsystemFairness inappointment
opportunities

Takumi/Re-skilling
Education
Health-oriented
Management
CSR
procurement/
SocialContribution


Fostering a culture and opportunities for direct dialogue between
management and employees
Synchronization of organizational and individual goals
underpinned by empathy
Providing flexible and reversible career choice opportunities
Improving the mobility of human resources within the Group andfinding human resources
Realization of treatment that is comparable to industry standards
Medium- to Long-term development and promotion of female
leaders
Promotion of overseas national staff to management positions
Global collaboration for the right person in the right place
Studying and passing on the skills that support manufacturing
Support for diverse and autonomous career development andrelearning
Raising the level of global response capabilities, including
multilingual and cross-cultural support

Active use of external indicators such as the “White 500”
Improving the workplace environment in factories
Development of a work environment that is not restricted bywork location

Development of supplier guidelines and green procurement
standards
Harmonious coexistence and communication with localcommunities as a good corporate citizen© KITZ CORPORATION All Rights Reserved｜ 15

ESG Initiatives : GovernanceCorporateGovernance

RiskManagement

 Further enhancement of transparency in management
decision-making

 Strengthen portfolio management by incorporating a cost-of-capital
evaluation
 Enhance the monitoring function and strengthen the implementation
system by establishing the Sustainability Committee Risk management that focuses on both risk reduction andopportunity creation
 Identification, evaluation, implementation and verification of risks
throughout the KITZ Group, and continuous updates Uncovering new business opportunities by turning the risks associatedwith social needs and market changes into ideas Global compliance conducive to sustainable management
Compliance Transition to a compliance program that meets the needs of society(Strengthening our response to human rights, labor, the environment,anti-corruption, etc.)
 Spreading autonomous compliance throughout the Group, with each
employee taking it as his or her own responsibility© KITZ CORPORATION All Rights Reserved｜ 16

V. Towards DX(Business Transformation by Digitalization)© KITZ CORPORATION All Rights Reserved｜ 17Transformation scenarios for DX

Business transformation (BX) through business innovation activities
To realize the Long-term Management Vision, we aim to thoroughly streamline existing businesses,
visualize and mobilize management resources, and transform into a customer-oriented and agileorganization.

Newbusiness model

Pursuit of added value
Solution-oriented
hypothesis testing(Trial & Error)

Stage 3
New Business Models
Realization ofExisting
business modelStage 1

Strengthen existing
businesses• Thorough operational
efficiency and automation• Major review of customer
contact points• Business portfolio reform• value proposition/business model shift

Change inmanagement structure• ResourceVisualization• Resourcemobilization

Stage 2
 Thorough elimination of waste
 Dramatic increase in productivity and speed
 Generate profit & resources (spare capacity)© KITZ CORPORATION All Rights Reserved｜ 18