KURIMOTO REPORT 2023

KURIMOTOREPORT 2023
Corporate Report

For a Future withDreamsPublished in July 2023

Contents
1

1

Contents and Editorial Policies

13

The Kurimoto Group’s Strengths and Values

15

The Kurimoto Group’s Business Model

17

Financial and Non-Financial Highlights

Introduction

The Kurimoto Group:
Corporate History andBusinesses

3

3

Values of the Kurimoto Group

5

History of the Kurimoto Group

7

Businesses of the Kurimoto Group19

Three-Year Mid-Term Business Plan

21

Financial Strategy
Message from Director of Finance23Intellectual Property Activities

25
27

Vision5

Sustainability

Sustainability

31

The Kurimoto Group’s CSR Management

33

The Kurimoto Group’s ESG Materiality
and SDGs

Research and Development

35

Environmental Initiatives

Business Strategy

41

Social Initiatives

50

Corporate Governance

54

Compliance and Risk Management

55

Management Members

6

Our Commitments
9

GovernanceCorporate
Governance

Strategy

Mid-Term Business Plan
and Execution Strategy

2

4

Message from the President

Data

Performance ofthe Kurimoto Group

Publication of Our Corporate Report

KURIMOTO REPORT 2023

Financial Statements

60

Stock Information

61

Company Profile

Details of the 2023 edition and changes fromthe 2022 edition
Beginning with the next fiscal year, we aim to reintroduce this publication as ourIntegrated Report. As a result, the publication for the next fiscal year will serve asa tool to achieve quantitative sales targets, CO2 emissions reduction targets in
the interests of achieving carbon neutrality by 2050, disclosure of our long-term
vision, and a deeper relationship with all our stakeholders. KURIMOTO REPORT2023 therefore represents a corporate report covering the transitional phaseprior to the subsequent publication of our Integrated Report in 2024. Previously,
we have disclosed both financial and non-financial information, but in the fiscal
2023 edition, we are disclosing information from a medium- and long-term
perspective with the goal of providing integrated disclosures.

• This corporate report concisely summarizes the Kurimoto Group’s
approach and future prospects for improving our corporate value ina sustainable manner. This includes our business activities as wellas our ESG initiatives in keeping with the business model we haveadopted in accordance with our medium and long-term management
strategies. (The relevant sections are as follows: Management
Principle/Management Plan/Sustainability Data/Corporate Governance/
Financial Summary)• We also disclose financial and sustainability information on our
corporate website.

Financial Information
Corporate Site

KURIMOTOREPORT
2023

KURIMOTOREPORT 2023

Financial Information/
Annual Securities Reports

Corporate Report

For a Future withDreamsPublished in July 2023

Comprehensiveness

1

59

Content of Our Primary Information Disclosure Tools

Brevity

This edition represents the 10th anniversary of KURIMOTO REPORT,
which integrates the content of our previous distinct publications known
as the Business Report and the CSR Report. This edition offers
easy-to-understand presentations of our strategy, managementfoundations, and sustainability initiatives for a wide range of stakeholders
with interests in our management and business activities. In addition toproviding information on specific initiatives, this report discloses detailed
data on sustainability as required by government agencies and as
requested by many elements of society. We are confident that
presentation of this information will contribute to greater trust in ourGroup while enhancing our corporate value.

Financial Summary (11-Year Summary)

KURIMOTO REPORT 2023

Editorial Policies

57

Non-Financial Information

KURIMOTO REPORT 2023

2

Introduction

Protecting
Humanity and
Preserving
Our Planet

Corporate Philosophy
We respect and value Earth, its water, air and life,
and we will protect social infrastructure.
We offer “reassurance” in response to the society
and our customer’s trust.
We listen to our customers, learn from ourcustomers, further develop and innovate
technology, and offer original, “suitable systems”
to our customers.
We aim for the happiness of our employees andthe happiness of mankind through manufacturing
products.

The future as envisioned by the Kurimoto GroupFor the implementation of the above, we ensure

We have operated as a manufacturing entity for more than a century.

strict compliance, harmonize inheritance andWe remain committed to fulfilling our corporate responsibility to build

changes, respect individuality and ingenuity, andand protect social infrastructure while looking 50 to 100 years into the
future without being preoccupied with the short-term pursuit of profit.

Management Principle

work hard to contribute to society and thedevelopment of business.

A Spirit of Ensuring All Participants Are
Beneficiaries
The age-old Japanese philosophy of

We will meet the trust andexpectations of all stakeholders,always provide suitable systems and“sanpo-yoshi,” a three-way satisfaction, says thatbusiness should be good for the seller, good forthe buyer, and good for society. To this, we add afourth element — good for the future. In the spiritof “yonpo-yoshi,” a four-way satisfaction, we
strive to bring about a better future for all.

create “a future with dreams.”

3

KURIMOTO REPORT 2023

KURIMOTO REPORT 2023

4

The Kurimoto Group:
Corporate History andBusinesses

The Kurimoto Group: Corporate History and Businesses

Mid-Term Business Plan
and Execution Strategy

Our Commitments

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

History of the Kurimoto Group
Since our company was founded 114 years ago to apply our casting technology in the manufacture of cast iron waterand gas pipes, we have dedicated ourselves to improving the social infrastructure and expanding lifelines as well as
industrial facilities. The origins of our company can be traced to the corporate philosophy of our founder, Yunosuke
Kurimoto, who overcame difficulties with a flexible and proactive approach to management while focusing on thelatest technological advances.

1909–

1934–

1969–

1981–

2001–

2016–

Origins of the Kurimoto Group;
benefiting from the flourishingwaterworks sector

Meeting government demandand surviving the recessionary
period with export orders

Meeting the challenge of new
industries; securing
state-of-the-art casting facilities

Adapting to societal changes
through a large-scale corporate
restructuring effort

Stabilizing our existing
business base; transitioning
to a turnaroundIn 1909, our founder Yunosuke Kurimoto founded

Launch of the Plant Engineering& Machinery Division; spanningthe period from war disruption to
postwar reconstruction

In 1969, we constructed the new Kurimoto Building

Around this time, we began to take on the challenge

In 2001, we established the Koga Factory in

We are continuing to stabilize our business

Kinoyoshi Iron Works as a limited partnership

In addition to the company’s reorganization as aand moved our headquarters to theof entering new fields by pursuing technologicalKoga, Ibaraki Prefecture. This Factory was

performance,company in Shinsumiya-cho, Nishi-ku (currently

joint-stock company, the Machinery Department

location.

development.

Development

intended to serve as a manufacturing base forfoundation, enable investment as well as research

Taisho Ward), Osaka, and began manufacturing cast

was established to begin industrial machinery, plate

In 1971, we launched our Plastic Products

Division was established for the purpose of what webuilding materials in the Kanto area, and in 2007,

and development in new business segments, andiron pipes for carrying water and gas. Building on theworking, cast iron, and cast steel manufacturing.

Division. We developed a new material, polycon

called “deironization” — the development of

we established the Kurimoto Center for Innovative

accelerate our growth strategy.

growth in demand for iron pipes, we later launchedThis was the beginning of our current Plant

fiberglass-reinforced plastic (FRP) pipe, built the

products not found in Kurimoto’s conventional

Technology.

Kurimoto Iron Works as a limited partnership

Engineering & Machinery Division.

current Shiga Factory, and started full-scale

product line. As a result, we undertook a renewed

manufacturing

focus on innovation.

Our Founding

A Period of Significant Growthcompany and succeeded in developing high-grade

In 1935, we exported our first plant to China,

of

FRP

A Period of Expansion

products.

current

AlthoughOur

A Turning Point

Technology

which led to a large number of orders. After that,private-sector demand remained sluggish due to

In 1987, Shin-Japan Pipe Co., Ltd. was

In 1933, we established Kurimoto Ashida Iron

we established our main plant in the Kansai region.

the recession caused by the oil crisis, we focusedacquired to form the Sakai Factory, and we beganWorks as a limited partnership company as part of ourDuring the postwar period, as demand for cast-ironon public-sector demand and export orders mainly

manufacturing small-diameter ductile iron pipes.

effort to expand into the machinery and steel casting

pipes for waterworks increased, we worked

for iron pipe, valves, bridges, and floodgates.

This greatly contributed to improved productivity

sectors.

diligently as part of the reconstruction effort.

cast iron pipes to increase our competitiveness.

Pipe Systems
Division

1909

1931

Yunosuke Kurimoto
renames thecompany Kinoyoshi
Iron Works andbegins manufacturing
cast iron water andgas pipes at Shinsumiya-cho, Nishi-ku,
Osaka (the former Chishima Factory).

Plant Engineering &Machinery Division

Materials & Machinery
Division

1933

The company succeeds in developing
high-grade cast iron pipes and achieves
quality improvements following acollaboration with Professor Kotaro
Honda of Tohoku Imperial University.
These cast iron pipes are exported to theEast Indies, Java, Sumatra, and othermarkets through trading companies.

Kurimoto Ashida Iron Works is established andbegins production of crushers and presses.
The company is reorganized as a joint-stockcompany later the same year. It supplies theUnit 1 electrode molding machine (1,000-tonne
vertical type) for Showa Denko K.K.. The
following year, the company is amalgamatedand the Machinery Division is established.

Construction Materials
Division

The company exports its first castiron pipes to Europe. The good
reception for these pipes in the East
Indies paves the way for subsequent
exports to the Netherlands. The
following year, the company receives
an award for product excellencefrom the Dutch government.

1938

Naruse Iron Works, a valve
subcontracting plant, is acquired andthe Izuo Valve Factory is opened.

1957

The Sumiyoshi
Factory opens andthe plate working
factory begins
operation. Two years later, the Sumiyoshi
Machine Factory is completed and developed
into a general machinery factory.

Sand mold centrifugal casting
equipment is installed at the
Kagaya Factory in preparation
for production of medium- andlarge-diameter pipes. This
innovation results in a systemcapable of a full-scale increasein production.

repairourdamagedfinancial

In 2016, we opened the Kurimoto Composite

From 2008 to 2010, we transferred or withdrew

Center within the Koto Factory to accelerate R&D infrom businesses and subsidiaries that were posting

carbon-fiber reinforced plastic (CFRP), a newlossescategory of material.

as

we

implementedalarge-scale

restructuring of our operations.

We remain committed to refining our technical

In 2009, the company proudly celebrated its

expertise in order to make a greater contribution tocentennial.

society in the future.

The Matsudo
Factory opensin Matsudo,
Chiba
Prefecture.

1971
Kurimoto
Chemical Industry
Co., Ltd., thepredecessor of the
Plastic Products Division, is establishedin Echigawa, Shiga Prefecture to
manufacture FRP molded products.

1961
The manufactureof winding pipe
for cylindricalforms begins.

1987
The Koto Factory
opens and
undergoes an
expansion to begin
manufacturing
large-diameter
FRPM pipes.

1966

Shipment of disc brakerotors for Shinkansen
trains begins.

1981

CIX, a high-chromium
cast iron material withexcellent wear
resistance, is developed.

Resilient seated gate valve technology isintroduced from Hawle of Austria.

1968

1970

The Katano Factory opens in
Katano, Osaka Prefecture.
Lightweight steel pipe manufacturing
equipment is relocated from theSumiyoshi Factory.

1988

Manufacture ofaluminum flexible
ducts begins.

1991

The Hokkaido
Regional
Development Bureau
places an order for
FRPM piping of thelargest diameter(1800 mm).

Our 600-mm-diameter FRPM
well piping is used for ground
improvement and buoyancy
prevention on Kazenotou Island(Kawasaki Artificial Island) on theTokyo Bay Aqua-Line
Expressway.

2013

The government of Ecuador
places an order for ahigh-depth dam dredger.

1984

1994

The company ships its first
6,500-tonne large forging
press to China for aluminum
forging. The second and thirdunits are shipped soonafterward.

2017

The company begins sales of self-propelledcrushing equipment as the sole Japan agentof Terex Finlay of the UK.

1987

The Metropolitan Water District of Southern
California places an order for four large butterfly
valves.

Manufacture ofSilent Flex
(N-type andS-type) begins.

2019

The company enters the North American
market by acquiring Readco Manufacturing
Inc. of the U.S.A. and establishing theholding company Kurimoto USA, Inc., andthe manufacturing and sales company
Readco Kurimoto, LLC.

1989

UCX, a composite cast material
made by casting cemented
carbide particles in high-chromium
cast iron, is developed.

1993

The company succeeds inmanufacturing Japan’s first
1650-mm pipe with a lining
comprising an epoxy resin
powder coating.
This product is introduced tothe sewerage market andreceives high praise.

2006

The company forms amanufacturing
technology alliancewith Readco
Manufacturing Inc. of the U.S.A. for production of
the KRC Kneader continuous kneading machine.

1987

2022

In order to respond to the rapidly
increasing demand forearthquake-resistant ductile iron pipes
in the aftermath of the Great
Hanshin-Awaji Earthquake, a
dedicated production line for NS tubes
is established in preparation for thelaunch of a mass production system.

1971

1963

The company exports twenty
portable crushing plants toIndonesia and establishes theCasting Division.

1998

After many years of research at
the Kagaya Factory, thecompany begins manufacture ofductile iron pipes with adiameter of 2600 mm. This
product is later adopted by theWaterworks Bureau of the Tokyo
Metropolitan Government.

The company
forms a technicalcooperation with
Smeral Brno a.s. inCzechoslovakia for forging presses.
Manufacturing and sales of the Kurimoto
Smeral Forging Press begins.

The Semboku Factory is established as a specialized
valve plant, and the valve making equipment isrelocated from the Chishima Factory.

1960

The company introduces lightweightsteel pipe manufacturing equipmentfrom Schwermer GmbH of West
Germany and begins production of
spiral ducts at the Sumiyoshi Factory.

1974

1965

1969

Plastic Products
Division

KURIMOTO REPORT 2023

1948

1960

1940

A Challenging Period

and helped to rationalize the company’s operations.

1932

1933

Valve Systems
Division5

A Period of Transition

1995

The Saitama Factory
constructs the Acoustic
Laboratory (currently the
Acoustic Technology
Research Institute).

The company ships 2400-mm FRP(M) pipes(for penstock pipelines) to the Electric Power
Development Company for the world’s firstseawater pumped-storage power station.
This is a pilot plant under construction in
Okinawa as commissioned by the Ministryof International Trade and Industry.

A continuous
molding method forhorseshoe-shaped
FRPM pipes isdeveloped.

PREGE CONE, a newcone crusher, isintroduced.

2022

The production base is moved
from the Semboku Factory to
the Sumiyoshi Factory.

2006

The Koga Factory is
expanded and the
Matsudo Factory andSaitama Factory in the
Kanto area are merged.

2004

Sasebo Metal Co., Ltd. and
Kawara Steel Co., Ltd. merge toform Japan Castering Co., Ltd.

2005

Sales of White Butterfly all-stainlesssteel butterfly valves begin.

2001

2022

The Chugoku Electric Power Co., Inc. places anorder for two 4000-mm-diameter large special ironpipe valves for the Matanogawa Power Station.

2008

The company acquires thesound dampening businessof NGK Insulators Ltd. toexpands its noise reduction
product business.

2020

The Corru-Air corrugated cardboard
duct, jointly developed with Taisei
Corporation and Rengo Co., Ltd.,
wins the Environmental Parts Awardat the Monodzukuri Award for Parts.

2007
The company manufactures 3250-mm-diameter
reinforced plastic composite pipe (FRPM pipe),
the largest in Japan, and begins shipments tothe water distribution tunnel improvement projectin Ikeda, Osaka Prefecture. Kurika FRP core is
introduced for use as winding core.

The company
develops and begins
sales of metal soundinsulation plates withinspection ports.

2012
The company begins
consignment
production of FRP
cores in Yixing, China
for customers in China.

2019
The company receives its firstorder for FRP inspection passages
for the Kanmon Expressway
Yamanaka Viaduct (outbound Line)and another order for a bridge
floor slab replacement project.

KURIMOTO REPORT 2023

6

The Kurimoto Group:
Corporate History andBusinesses

The Kurimoto Group: Corporate History and Businesses

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceBusinesses of the Kurimoto Group

Lifelinebusiness

Machinerysystembusiness

Industrial
materials
business

7

KURIMOTO REPORT 2023

Our lifeline business segment is
responsible for the development ofsocial infrastructure.
Our Pipe Systems Division handles
underground water and gas pipes that
support infrastructure. We manufactureand supply ductile iron pipes and also
provide comprehensive support for the
maintenance and renewal of lifelines(infrastructure) through the design andsupervision of pipes construction as
well as our ICT-based construction
management system.
Our Valve Systems Division handles awide variety of valves to meet public sector
needs, such as water purification plants,
as well as private sector demand related to
power plants, steel mills, and other plants
both inside and outside Japan.

The machinery system businesssegment is responsible for helping to
expand industrial facilities.
This segment handles industrial
machinery and equipment that
supports the production lines of awide variety of industries. It also
supports society in a wide range ofareas, from stand-alone equipment tocomprehensive engineering services.
The Materials & Machinery Division
handles product groups that deal withcrushing and material technologies. It
serves a variety of industrial fields
such as the aggregate resource
industry, steel industry, electric powerindustry, cement industry, and railtransportation industry.

Our industrial materials businesssegment handles building materials
and chemical products to serve bothsocial infrastructure and industrial
equipment.
The Construction Materials Division
provides materials and methods usedin the construction of buildings andcondominiums, roads and otherprojects.
Our Plastic Products Division
provides an array of composite
products such as FRP pipes andpanels that exploit the multifunctionaland highly flexible characteristics of
FRP, a fiberglass-reinforced plastic. Bymanufacturing reliable products, weare contributing to the development ofa robust social infrastructure.

Pipe Systems Division

Valve Systems Division

Sales by business segment

Sales(Million yen)
70,00060,00056,185 57,478

60,879Fiscal 2022

124.8
billion yen

50,00040,00030,000■ Product lines
Ductile iron pipes (pipes, fittings, joint parts), pipeline design,
installation, supervision of pipes installation and maintenanceservices such as pipeline survey and inspection

Plant Engineering & Machinery Division■ Product lines
Butterfly valves, resilient seated gate valves, sleeve valves,
valves for thermal and hydroelectric power plants, emergency
shutoff valves for water tanks, various control valves, valves forblast furnaces, pre-actuated flow detection valves for sprinkler
systems (negative pressure wet type/dry type)

Materials & Machinery Division

20,000Lifeline business60.8 billion yen(48.8%)

Sales by business segment

10,0000

Fiscal
2020

Fiscal2021

Fiscal2022

Sales(Million yen)
70,00060,000Fiscal 2022

124.8
billion yen

50,00040,000■ Products and services: Pulverizers, classifiers, granulators,
dryers, calciners, mixers/kneaders/dispersers, reactors, solvent
recovery equipment, secondary battery material manufacturing
equipment, various industrial machines, testing machines, plantand system equipment, forging presses, bending rolls,
peripheral equipment for forging presses, a plant engineeringbusiness, and the design, manufacture, procurement,
construction, commissioning and maintenance of various plants

Construction Materials Division■ Product lines
Crushers, pulverizers, classifiers, conveyors, wear- andheat-resistant castings, wear-resistant pumps, disc brakerotors and brake linings for railways, and products of Terex
Finlay of the UK.

22,09520,000Machinery system business34.1 billion yen(27.3%)

Plastic Products Division

34,102

31,18430,00010,0000

Fiscal
2020

Fiscal2021

Fiscal2022

Sales
Sales by business segment(Million yen)
70,00060,000Fiscal 2022

124.8
billion yen■ Product lines / Spiral ducts, flexible ducts, Silent Flex,noise-reduction products, stainless steel ducts, Super Spiral,
premium spiral ducts, Corru-Air corrugated cardboard ducts,
winding sheaths, polyethylene sheaths, winding pipes,
through-hole reinforcing bar (Super Harry Z), voided slabs,
various earthquake-resistant products, semi-precast products(Kaiser Slab, Kaiser Balcony), precast stair systems, noise
reduction and soundproofing services (measurement, design,
manufacture, installation, and verification), and translucent
sound-absorbing screens (Viewsone)

50,00040,00030,000■ Product lines
Fiberglass-reinforced plastic mortar (FRPM) pipes,
fiberglass-reinforced plastic (FRP) pipes, fiberglass-reinforced
plastic mortar (FRPM) panels, FRP cores, FRP pultrusion
products, and various synthetic resin molded products

29,226

26,381

29,84520,000Industrial materials business29.8 billion yen(23.9%)

10,0000

Fiscal
2020

Fiscal2021

Fiscal2022

KURIMOTO REPORT 2023

8

The Kurimoto Group:
Corporate History andBusinesses

Our Commitments

Message fromthe President

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceWe remain committed to meeting all challenges as “TeamKurimoto” by creating value as we contribute to social
infrastructure and the industrial equipment market.
The Japanese philosophy of “sanpo-yoshi,” a three-way satisfaction, can be defined as management that
ensures reciprocal benefits to what are considered the three intrinsic parties to a business transaction— the seller, the buyer, and society at large. Our unique management approach can be characterized as“yonpo-yoshi,” a four-way satisfaction, which includes benefits to an additional party in the transaction.

Kazutaka Kikumoto
Kurimoto, Ltd. President

Moving forward with“Team Kurimoto” —Fostering an organizational culture
through a unified group eager totake on challenges

9

KURIMOTO REPORT 2023

Kurimoto, Ltd. celebrated its 114th anniversary in February 2023.
In 1909, our founder Yunosuke Kurimoto launched a business inOsaka City with the intention of delivering clean, pure water to the
public. The company originally started out as a manufacturer ofcast iron pipes to carry water and gas. Today, as we continue tobuild on a business has greatly expanded in scope, we remain
dedicated to upholding our founder’s viewpoint as an unchanging
and deeply rooted element of our corporate spirit.
We believe that, for more than a century, our corporate value
has been encompassed in our commitment to our founding spiriteven as we sincerely and steadily pursue manufacturing andservices that contribute to greater customer satisfaction. We
continue to fulfill our responsibilities as a company that builds andprotects the infrastructure of society. Rather than focusing only on
immediate profits, we look 50 to 100 years into the future.
In fact, while iron pipes used for water supply have always beenrequired to provide a longer service life, we are now working topopularize long-life water pipes with an expected service life of 100
years. The fact that our products can be used for 100 years meansthat our company expects to survive for 100 years into the future;
Kurimoto is thus dedicated to managing with an ultra-long-term
perspective.
We value the spirit of “yonpo-yoshi,” a four-way satisfaction.
This is an update to the long-renowned management philosophy of
local Ohmi merchants, known as “sanpo-yoshi,” a three-way
satisfaction, which holds that a business transaction should be ofsatisfactory to the seller, the buyer, and society at large. With
“yonpo-yoshi,” we have added satisfaction for the people of the
future. In the course of our more than a century of valuing people
as part of our business development, we have been committed todeveloping Kurimoto as a technology-focused company and havepursued technological innovation as a means of addressing
customer needs. We will continue to carry on this approach as weseek to enhance our corporate value.

By fostering a corporate culture keen to take on new challenges,
we are witnessing the emergence of a series of new opportunities.
Kurimoto has fostered a corporate culture dedicated to nurturing
people and taking on challenges. The foundation of this culture has
been passed down from generation to generation. Benefiting fromthe advantages offered by that tradition, I will focus on establishinga corporate culture eager to take on even more challenges as we
focus on strengthening our human resource foundation to the nextlevel.
Many might believe that Kurimoto is mainly a producer of ductile
iron pipe and other such ductile products. However, while we do
produce a number of such products, we continue to take on thechallenges of pioneering new areas. One example is a newtechnology we call “Soft MRF ®.” This technology is based on
haptics (a technology that incorporates human perception of thesense of touch); it creates new sensations that convey the presenceof certain substances in the hand. In offering this new tactile
experience, Kurimoto retains dedicated designers and developers
responsible for everything from the development of elemental
technologies to various liquids, devices, and units. Haptics is

becoming an important technology related to the future spread ofrobots throughout society, so we believe Soft MRF® technology
holds great potential.
The key to creating value by taking on challenges andsharpening our competitive edge is to maintain a willingness tocontinue meeting challenges head-on. At the same time, “TeamKurimoto” is a concept inherent to the idea of creating value. Thisphrase simply represents the concept of responding to customer
needs with a company-wide approach that entails our six businessdivisions as well as our Group companies. We believe that, insteadof working within a vertically divided organization, we must work on
solving issues from the customer’s point of view, and if necessary,
look beyond the boundaries of the organization. In some cases, weform cross-organizational project teams to tackle certain issues. As
we aim for sustainable growth through to 2030, the success of“Team Kurimoto” will be a decisive factor, so we remain focused on
promoting this approach.

KURIMOTO REPORT 2023

10

The Kurimoto Group:
Corporate History andBusinesses

Our Commitments

Implementing a new movement to identify business opportunities across each business division
I would like to introduce some new trends that have arisen in our
industry. First, regarding “social infrastructure,” as the number oflong-life products available increases, such as our 100-year ironwater pipes, demand for new and replacement products will likely
diminish. At the same time, the management and operation ofwater supply systems as public entities is becoming more difficult
due to aging populations in many countries. Thus, the trend toward“pipeline design build,” or the placing of a comprehensive order forwater pipeline design, construction, maintenance andmanagement, has become more apparent. In fact, Kurimoto has
already received multiple such orders.
As well, the renewal of highways has been presenting yet
another business opportunity in the realm of social infrastructure.
At Kurimoto, we are focusing on gaining orders for the kinds ofproducts that are required for such renewal work. I believe thatmuch room exists for the Japanese government to accelerate thistrend, as it has been promoting the National Resilience Plan.
On the other hand, new initiatives are also being implemented
in the industrial equipment sector. For example, in our Plant

Engineering & Machinery Division, the need is arising for muchlighter vehicle bodies due to the trend toward the electrification andautomation of motor vehicles. In response to this trend, theKurimoto Composite Center and others are working to introduce
parts incorporating strong and light carbon-fiber-reinforced plastic(CFRP), which is a combination of carbon fiber and plastic.
As a means of capturing yet another business opportunity, we
are addressing the battery market. At Kurimoto, we are developing
a kneader necessary for the manufacture of electrodes for lithiumion secondary batteries, taking advantage of our expertise in
manufacturing kneaders since early in our history. In addition, we
are focusing on proposing solutions that include crushers andcalciners. As the electrification of motor vehicles progresses, thedemand for batteries will increase worldwide, so we have great
expectations for the future of this field. We believe we will be able
to establish a competitive advantage by continuing to acceleratetechnological innovation and by demonstrating Kurimoto’s
uniqueness in the process of accomplishing difficult and complex
tasks.

Promoting our interests by gathering our collective expertise and developing our business acumen
As economic activity continues to recover in the post-COVID-19
era, Kurimoto is maintaining a special focus on after-sales service
and solving any issues that may arise with regard to the equipment
we have provided both in Japan and around the globe. While we
make every effort to eliminate causes of complaints, we cannot
rightfully claim that none have arisen. The important point is tohandle complaints quickly and appropriately, as they can actually
be converted into business opportunities. I therefore repeatedly
stress to front-line employees the importance of maintaining an
agile customer response.
Fiscal 2022 marks the second year of our three-year mid-termbusiness plan. In terms of performance, progress has been madein price revisions; moreover, the temporary restriction on investment
has been removed, and large-scale building projects haveprogressed. Sales have exceeded our forecasts, resulting inincreased profits. Although it is difficult to predict the future in lightof the market environment, we believe that our company-wide
efforts to gather our collective expertise and develop our businessacumen have borne fruit. Most notably, our front-line employees in
the field are quickly gathering information, sharing it across theorganization, and using that data to respond quickly, allowing us torespond with agility to an uncertain market. For “Team Kurimoto,”
the hard work of our employees has brought forth considerable
benefits.

Our Commitments

Mid-Term Business Plan
and Execution Strategy

With regard to devising solutions for a decarbonized society,since we use a cupola furnace in the manufacture of our iron pipes,
we view the need to reduce CO2 emissions as an essential issue.
For this reason, we are working to transition to bio-coke and awayfrom the coke currently used as fuel. We are also investigating
further research and development with the goal of improving
combustion efficiency and utilizing emissions from manufacturing.
Furthermore, we will consider options for reusing iron pipes thathave passed their service life.
In fiscal 2022, our six business divisions as well as all our Group
companies took steps to identify areas in which they can contributeto the 17 sustainable development goals (SDGs). As a result, they
have begun conducting annual surveys on the extent of theirprogress in this area. In addition to contributing to the SDGs, we

Sustainability

Performance ofthe Kurimoto Group

Corporate Governanceare considering the possibility of developing new businesses
arising from this effort, and we expect that new businesses andproducts will emerge from this area in the future.
In April 2023, we launched a project targeting further growth. Inorder to accelerate efforts to achieve progress with the main themeof our three-year mid-term business plan, titled “Go Forward!,” ourgoal is to maintain our existing business foundation while promoting
progress in fields that transcend existing boundaries. For eachbusiness, I am convinced that new potential will be unearthed as
we take on challenges that surpass the scope of existing
businesses, even if only slightly. Even in our indirect departments,
we believe that efforts that go beyond current boundaries will
broaden the potential of individuals and help improve our
productivity.

Gaining recognition that Kurimoto has undergone a transformation
In order to achieve sustainable growth over the medium and longterms, we believe it is important to not only expand our business inJapan, but also to develop our markets outside Japan. Toward thisend, we remain focused on education and training — mainly for
mid-career and young employees — as a means of driving our
expansion outside Japan. Without committing to producing resultsin the short term, we intend to institute changes that compel our
stakeholders to remark, in about three years’ time, that they notice
Kurimoto has undergone a transformation. In the future, as we
manage our human capital, we will also focus on strengthening ourhuman resource base from the perspective of diversity andinclusion.
While we do not anticipate any major changes to our businessportfolio, we acknowledge the possibility that it will fluctuate as
new trends emerge. For example, with respect to the machinery
system business, we plan to further strengthen sales of parts

manufacturing equipment in line with the shift to electric vehicles.
In the field of non-ferrous metals, we are proceeding with researchand development of composites and FRP, which have a bright
future. In our lifeline business, we will strengthen sales to meetdemand for updating of water supply facilities, as we havedemonstrated our expertise in steel pipes as well as large valves.
These initiatives will be specifically formulated in our next mid-termbusiness plan scheduled for implementation in fiscal 2024.
Even if our current performance is solid, we will not remaincomplacent about the status quo; we intend to deal with all relevant
management issues with appropriate diligence. In the process, wewill become a company that is evaluated both internally andexternally as “Team Kurimoto.” We look forward to the support of
all of our stakeholders as we pursue these goals.

Achieving steady progress in each aspect of our three-year mid-term business plan
According to our three-year mid-term business plan, we haveadopted the management policy of adapting to the “new normal”
through business reforms and building a system to support ourlong-term business operations. We intend to address several
issues — promoting operational reforms, developing humanresources for sustainable growth, and meeting our corporate social
responsibility to society and the environment — through a steadyapproach.
Looking to the future, we will dedicate ourselves to improving
overall corporate productivity by ensuring each employee is

11

KURIMOTO REPORT 2023

capable of performing work of higher added value.
Looking to the general direction of our business, we are firstaccelerating our efforts with regard to disaster response andmitigation by providing solutions to augment national resilience.
“Team Kurimoto” has demonstrated expertise at providing optimal
solutions to social infrastructure issues such as water supply andsewerage, roads, bridges, and railways; moreover, we can address
other issues such as seismic resistance and aging infrastructure.
We believe that we can contribute across a wide range of fields,
including design, construction, investigation, and maintenance.

KURIMOTO REPORT 2023

12

The Kurimoto Group:
Corporate History andBusinesses

Our Commitments

The KurimotoGroup’sStrengths andValuesOur Commitments

SocialInfrastructure
Providing and securing lifelines

Contributing to the development of
infrastructure with expertise cultivatedover more than 100 years

Supporting
Society’s Lifelines

We are engaged in construction,
maintenance, and management ofessential infrastructure, including
water
supplyandsewerage,energy infrastructure, communication
infrastructure, roads, and railways.

Creating comfortable spaces
We create clean and comfortableliving spaces with products such as
pipes, valves, and construction
materials as well as construction
methods that utilize these products.

Building a resilient nation
We contribute to a resilient nation by
developing highly functional anddurable products.

Mid-Term Business Plan
and Execution Strategy

Sustainability

Corporate Governance

Performance ofthe Kurimoto Group

Commonalities

Industrial
Equipment

Promoting safety and security

Improving the quality of our end products

We promote safety and greater peace ofmind through comprehensive disaster
preparedness while providing total
quality services.

We provide high-precision mechanicalpresses for warm and hot forging anda wide range of other products that
contribute to the quality of our end
products.

Preparing for earthquakes andother disasters

Increased productivity

We provide earthquake-resistant lifelines
and a variety of earthquake-resistantproducts
suchasemergency
shut-offvalvesandemergency
earthquake-resistant water tanks.

We improve line productivity with highly
efficient and reliable manufacturing
equipment, comprehensive design andengineering services, and after-sales
service.

Supporting energy efficiency
and environmental conservation

Cost reduction

We develop and design products that
contribute to energy efficiency, reduced
CO2 emissions, and pollution control while
reducing our overall environmental impact.

Value provided throughWe contribute to cost reduction by
developing products focused on
economy,portability,
workability,
durability, operational reliability, andmaintenance and inspection.

our expertise

Expertise of the Kurimoto Group

13

1

2

3

4

Technology & Quality

Human capital

Total solution

Cultivated trust

A wide range of technologies
and high quality incorporated
in products used in social
infrastructure and industrial
equipment

A group of diverse personnel
assigned to various locationsin Japan and around the
globe

Offering customer optimized
solutions through a wide
variety of products andtechnologies

The unwavering confidence ofour customers cultivated overthe more than 100 years since
our founding

KURIMOTO REPORT 2023

KURIMOTO REPORT 2023

14

The Kurimoto Group:
Corporate History andBusinesses

Our Commitments

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

The Kurimoto Group’s Business ModelIn the future, the Kurimoto Group will be required to operate its business in a manner that
contributes even more to the sustainability of society. In order to support “a future withdreams,” we intend to remain a corporate group that society depends on by providing optimal
systems for social infrastructure and industrial facilities while promoting a strategy committed
to sustainability.

Expertise of the Kurimoto Group

Technology & Quality
A wide range of technologies
and high quality incorporated in
products used in social
infrastructure and industrial
equipment

BusinessModel

Our Vision

Business Activities
Ductile Iron
ダクタイルPiping 配管技術
Pipe
鉄管Technology
Warm and
温間・熱間
Hot Forging
Presses鍛造プレス

1

We respect and value Earth,
its water, air and life, and wewill protect social
infrastructure.

2

We offer “reassurance” inresponse to society’s and ourcustomer’s trust.

3

We listen to our customers,
learn from our customers,
further develop and innovate
technology, and offer original,“suitable systems” to ourcustomers.

4

We aim for the happiness of
our employees and thehappiness of mankind throughmanufacturing products.

5

We ensure strict complianceand work hard to contribute tosociety and the developmentof business.

ライフライン事業
Lifeline BusinessIndustrial産業機械
Machinery

プラント

Plant
エンジニア
Engineering

Human capital

A group of diverse personnel
assigned to various locations inJapan and around the globe

リング

Social 社会 Industrial
産業設備
infrastructure
インフラ Equipment

Casting
鋳物製品・
Products andCrushing破砕機器
Equipment

Business
事業戦略
Strategy

サステナビリティ
Sustainability

Strategy
戦略（方針）(Policy)

コンポジットComposite
Products 製品

Total solution
Offering customer optimized
solutions through a wide variety
of products and technologies

Construction
建設資材
Materials

FRP製
Valve バルブ
Products 製品 FRP Pipes パイプ

機械システム事業
Machinery System Business

産業建設資材事業
Industrial Materials Business

Management Strategy for
Sustainable Value Creation
Management
Principle

We will meet the trust andsuitable systems and create

expectations of all stakeholders, always provide“a future with dreams.”

1. We will provide optimal
2. We will provide optimalcommitment to decarbonization.

solutions in support of national resilience.
solutions to contribute to the emergence of a societal

Cultivated trust
The unwavering confidence ofour customers cultivated overthe more than 100 years since
our founding

15

KURIMOTO REPORT 2023

Long-Term
Management
PolicyThree-Year Mid-TermBusiness Plan
2021−2023

Main Theme

Go Forward!

While firmly solidifying our existing business foundation, we
will continue to push forward and accelerate our businessexpansion in segments that have transcended boundaries
during the preceding three years.

KURIMOTO REPORT 2023

16

The Kurimoto Group:
Corporate History andBusinesses

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Our Commitments

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

Financial and Non-Financial Highlights
Financial Highlights

Non-Financial Highlights (Non-consolidated)

During the consolidated fiscal year under review, amid the impact
of COVID-19, the Japanese economy was on a path to recovery
largely because of the government’s easing of movement
restrictions. The economic situation remains uncertain, however,
due to the prolonged invasion of Ukraine by Russia, fluctuations in
exchange rates, high resource prices, and rising commodity prices.
Under these circumstances, our Group ensured stableproduction and supply of products through measures to preventthe spread of COVID-19.
In addition, to further enhance corporate value and strengthen
its management base, our Group has been striving to reduce costs
and strengthen business activities.
In our Group’s business performance for this consolidated fiscal
year, net sales increased by 18,872 million yen from the previous

consolidated fiscal year to 124,827 million yen. With profit and loss,
operating income increased by 2,668 million yen from the previous
consolidated fiscal year to 6,840 million yen.
Current earnings increased by 2,688 million yen from theprevious consolidated fiscal year to 6,868 million yen. Current net
income attributable to equity holders of the parent rose by 1,809
million yen compared to the previous consolidated fiscal year to
4,727 million yen, due to factors including gain on sales ofinvestment securities, loss on valuation of shares of subsidiaries
and affiliates, and income taxes.

116,596

109,904

3.0

6.77

6.24

2019

2020

60,0003,200

30,000

1,600

4,673

4,340

4,172

3,003

(

)

124th term(

Year ended
March 2020)

125th term(

Year ended
March 2021)

126th term(

Year ended
March 2022

(FY)

0

1.86

1.91

1.88

0.38

0.43

0.39

1.81
0.38

1.52

1.48

1.48

1.49

1.43

2018

2019

2020

2021

2022

(FY)

The graph shows trends in waste discharge. Disposal volume refers to the weight ofwaste ultimately disposed of (landfilled). The disposal volume mainly consists of
non-recyclable plastic waste such as waste FRP. In addition to reducing such waste, we
are also engaged in research and development of recycling.

VOC emissions

Engagement survey score(10,000 t)(Point)

20.0

60

16.0

16.6

)

127th term(

Year ended
March 2023

0)123rd term(

Year ended
March 2019)

124th term(

Year ended
March 2020)

125th term(

Year ended
March 2021)

126th term(

Year ended
March 2022

)

12.3

127th term(

Year ended
March 2023

)

51.7

52.5

FY2021BOY

FY2021
EOY

50

15.0
Year ended
March 2019

2022

1.85
0.33

6,840

4,800

123rd term

2021

The graph shows CO2 emissions (total of Scope 1 and Scope 2). The significant decrease
in CO2 emissions in fiscal 2022 is attributable to the introduction of CO2-free electricity at
the head office and five factories (Kagaya, Sumiyoshi, Sakai, Koto, and Shiga).

8,000

Disposal volume

6,400

105,954

90,000

0

2.0

4.15

2018

Amount of valuable resources/recycled

6.28

6.11

6.0

0

(Million yen)

108,786(10,000 t)

8.0

1.0

Operating income

120,000

Waste discharge

2.0(Million yen)

124,827

CO2 emissions(10,000 t-CO2)

4.0

Net sales
150,000

As an initiative to contribute to the realization of a sustainable society, we have established indexes for managing our progress in theenvironmental field, including decarbonization targets. We also present indexes related to a “pleasant and comfortable working environment”
for our employees.

47.8

48.1

FY2022BOY

FY2022
EOY

40

8.6

10.0

30

7.8

20

Current earnings

Net income attributable to equity holders of the parent(Million yen)

(Million yen)

8,000

5,000

6,868
4,392

4,800
3,200

4,583

0

3,200

2,000

1,600

1,000

0

0

123rd term
Year ended( March2019 )

124th term
Year ended( March2020 )

125th term
Year ended( March2021 )

126th term
Year ended( March2022 )

2,773

3,000

4,179

127th term
Year ended( March2023 )

10

4,727

4,000

6,400

5.0

3,174

2,917

2018

2019

2020

2021

123rd term
Year ended( March2019 )

124th term
Year ended( March2020 )

125th term
Year ended( March2021 )

126th term
Year ended( March2022 )

127th term
Year ended( March2023 )

387.27

400

4,800

320

222.83240

260.42239.17

Proportion of male workers who took childcare leave

Number of annual paid holidays taken (per employee per year)(%)(Days/Year)

100

15

75.0

160

2,400

80

1,200

0

123rd term
Year ended( March2019 )

124th term
Year ended( March2020 )KURIMOTO REPORT 2023

125th term
Year ended( March2021 )

126th term
Year ended( March2022 )

4,633.55

4,750.96

5,245.94

5,436.86

5,865.19

127th term
Year ended( March2023 )

0

20

10.7

Year ended( March2019 )

Year ended( March2020 )

125th term
Year ended( March2021 )

126th term
Year ended( March2022 )

127th term
Year ended( March2023 )

2019

2020

13.2

13.8

2019

5

20.0

2020

2021

2022

(FY)

“Proportion of male “Number of male workers who took childcare leave”
workers who took =× 100“Number of male workers whose spouses have given birth”
childcare leave”

124th term

12.6

40.6
40

0

123rd term

12.5
10

60

3,600

165.65

17

(Yen)
6,000

0

In this era of investment to personnel, diversity, and mutual choice between organizations
and individuals, we are quantitatively measuring the degree of employees’ attachment tothe company and their work through engagement surveys.
The survey was started in fiscal 2021 and has since been conducted on a trial basis, withtarget departments replaced in turn.

2,075

Net assets per share

(Yen)

(FY)

The graph illustrates trends in VOC (Volatile Organic Compounds) emissions. The
significant decrease since fiscal 2020 is mainly due to the ongoing shift to water-based
paint at our iron pipe-producing factories.

80

Net income per share2022

The graph shows trends in the “Proportion of male workers who took childcare leave” asdefined above.
Following the revision of the Child Care and Family Care Leave Act in April 2022, we
prepared a “Guidebook for Balancing Childcare and Work” and conductedawareness-raising activities, resulting in a significant improvement in fiscal 2022.

0

2021

2022

(FY)

The graph shows trends in annual paid holidays taken per employee.
The number of paid holidays taken has been increasing over the years as the “Working
Hours Committee,” which was established by labor and management, set annual targets
and encouraged employees to take paid holidays through periodic monitoring.

KURIMOTO REPORT 2023

18

The Kurimoto Group:
Corporate History andBusinesses

Mid-Term Business Plan and Execution Strategy

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Corporate Governance

Performance ofthe Kurimoto Group

Three-Year Mid-Term Business Plan
In the ongoing three-year mid-term business plan developed by the Kurimoto Group, while firmly maintaining the existing
business base, we will further accelerate the expansion of our business based on the previous three-year mid-termbusiness plan.

Direction of the business① Provision of optimal solutions toward the achievement of national resilience
Values provided by Kurimoto

Three-year mid-term business plan (2021 to 2023)
While maintaining the existing business base, we are promoting our business based on the three-year mid-term business plan
(2021–2023) to accelerate business expansion in areas that crossed borders in the previous three-year mid-term business plan, and togo even further.

Management Principle

We will meet the trust and expectations of all stakeholders,always provide suitable systems and create“a future with dreams.”

Social trends
Water supply and sewage systems• Promotion of the five-year acceleration measures(to make them earthquake-proof)• Increase in the integrated ordering of design and construction

Design, construction, survey, maintenance and othersolutions for the pipelines that support social infrastructure

Agricultural water and industrial water• Increase in aging pipelines

New technologies and construction work and other solutions
that contribute to the management and maintenance of
highways and bridges② Provision of optimal solutions to realize a carbon-free society
Values provided by KurimotoSocial trends

Products and solutions for the renewable energy market(biomass power generation, small hydropower generation,hydropower generation, wind power generation, etc.)

Energy• Expansion of renewable energy-related businesses

System for the continuous production of highly functional
resins and composites that help reduce the weight ofManagement
policyMoving devices• Growth in demand for lightweight and high-strength materials to
reduce the weight and improve fuel efficiency• Acceleration of activities for the shift to EVs on a global scale

products, and composite materials
Innovative technology for the continuous mass production
process in the secondary battery market

Three-year mid-term management policy

Reorganize our businesses to adapt to the new normal and also establish
a system with an eye to long-term business management

The business environment surrounding our Group has been changing dramatically due to various domestic and international factors. We will
adapt to social and environmental changes and establish a system that is sustainable in the medium to long term, thereby pursuing businessexpansion.

Performance targets

Investment planThis plan initially aimed to achieve net sales of 120 billion yen,operating income of 5.5 billion yen (operating margin of 4.6%), andreturn on equity (ROE) of 5.4% in fiscal 2023. Considering the mostrecent business environment, however, we have revised our
performance targets for fiscal 2023 to net sales of 120 billion yen,operating income of 6 billion yen (operating margin of 5.0%), andROE of 5.5%.

We plan to invest approximately 14 billion yen over the three years
by using the cash flow from operations in the period of thisthree-year mid-term business plan.
Specifically, investments will be made for sustainable growth,
including 4 billion yen in the streamlining of production facilities, 2.6
billion yen in the development of new businesses and new
products and 2 billion yen in IoT and other systems.

6.9

Reform of production lines
Promotion of business reforms

Roads, bridges and railways• Aging of road structures• Rapid growth of demand for maintenance and repair

1,248

1,200

1,059

4.5

68

Production facilities(streamlining ofproduction)

5.5
60

Adoption of smart production activities using ICT

4 billion yen

41

Further promotion of work style reforms

Human resource development forsustainable growth

Promotion of socially andenvironmentally conscious CSR
activities

19

KURIMOTO REPORT 2023

Enhancement of the development and appointment of humanresources for engineering, construction management (CM)and overseas operations

Strengthening of activities that contribute to
SDGs and ESG

2021

2022

Net sales (100 million yen)

2023

(FY)

2021

2022

2023

Operating income (100 million yen)

(FY)

Production facilities(maintenance andrenewal of existingproduction facilities)

Development of new
businesses and new
products
Breakdown ofinvestments inthe plan

2.6 billion yen
Information system-related
investment

2 billion yen

5.4 billion yen

ROE (%)

Dividend
We have set the target of achieving the dividend ratio of more than 30% to ensure that the return to stockholders meets expectations in thefinancial market while also considering the balance between it and investments for growth.

KURIMOTO REPORT 2023

20

The Kurimoto Group:
Corporate History andBusinesses

Mid-Term Business Plan and Execution Strategy

Financial Strategy

Mid-Term Business Plan
and Execution Strategy

Our Commitments

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

Message from Director of Finance(Million yen)Three-year mid-term business plan
FY2020
FY2021

Yoshiaki Shingu
Director and Senior Executive Officer in charge ofFinance and Group Governance(Auditing and Consolidated Affiliates)

FY2022(Results)(Plan)(Results)(Difference)

Net sales

116,596

107,000

105,954

Operatingincome

4,673

3,500

Operating profit
margin

4.0%

ROE

5.2%

Equity ratio
D/E ratio (times)(Revised plan)

9,827

120,000

120,000

6,840

2,340

5,500

6,000

3.9%

5.5%

1.6%

4.6%

5.0%

4.8%

6.9%

2.1%

5.4%

5.5%

(Results)(Difference)(1,046)

115,000

124,827

4,172

672

4,500

3.3%

3.9%

0.6%

3.6%

4.5%

0.9%

With an equity ratio of 49%, liquidity on hand of 2.0 months, and adebt-to-equity ratio of 0.2 times for the fiscal year ending March
31, 2023, our financial base is getting stronger year by year andfunds for business expansion activities have been secured.
With regard to capital investment in the ongoing three-year
mid-term business plan, based on operating cash flow, we areaccelerating investment for sustainable growth toward the future
through a 14-billion-yen investment plan, which includes production
rationalization and information systems, in addition to investment inmaintenance and renewal.

Ratio of liquidity on
hand (months)(Plan)(Plan)

Financial base and direction of
investment for growth

Supporting the creation of“a future with dreams,” our management
principle, on the financial front

FY2023

FY2018FY2019FY2020

FY2021

FY2022

2.4

2.2

2.1

2.4

2.0

42.6%

43.1%

47.6%

47.5%

49.3%

0.43

0.40

0.35

0.36

0.28

investment for growth. In accordance with this policy, for the fiscal
year ending March 31, 2023, we have decided to increase
dividends distributed twice a year (a 20-yen increase per year),which will make an annual dividend of 90 yen, consisting of aninterim dividend of 40 yen and a year-end dividend of 50 yen,based on a comprehensive assessment of our businessperformance and business environment. We will continue striving
for stable shareholder returns in the next fiscal year and beyond,aiming for a dividend payout ratio of over 30% while also taking into
consideration stock repurchase.
Moreover, we will seek further improvement of ROE to promote
more efficient management with an emphasis on return on capital.
As a means of achieving this end, we are also considering
management development based on ROIC management for eachbusiness unit.
With the financial strategy mentioned above, the KurimotoGroup will create business value, achieve sustainable growth, andsupport the creation of “a future with dreams” by solving social
issues through the provision of solutions for “building national
resilience” and “decarbonization,” as stated in the three-year midterm business plan.
Trends of dividend per share and payout ratio (Consolidated)

Looking back on fiscal 2022
In the fiscal year ending March 31, 2023, the second year of theongoing three-year mid-term business plan (2021–2023), theeconomic climate surrounding our business remained uncertain
due to the prolonged Russian invasion of Ukraine, fluctuations inforeign exchange rates, surging resource prices, and risingcommodity prices. Our Group nevertheless achieved results well
above its initial plan due to factors such as the recovery in capital
investment and the revision of selling prices.
For the fiscal year under review, net sales totaled 124.8 billion

21

KURIMOTO REPORT 2023

yen, operating income was 6.8 billion yen, ROE was 6.9%, and net
income attributable to equity holders of the parent amounted to 4.7
billion yen, representing year-on-year increases in both sales andincome.
These results exceeded all the initial targets of the ongoing
three-year mid-term business plan: net sales of 115 billion yen,operating income of 4.5 billion yen, and ROE of 4.8%. The equity
ratio came to 49%.
Despite these positive results, we recognize that improving
profitability and achieving sustainable growth by strengthening thecompetitiveness of our existing businesses remain key issues. We
will continue to work toward improvement.

Direction of financial strategy

Year-end dividend amount (yen)Total annual dividend amount (yen)Interim dividend amount (yen)Annual dividend payout ratio (%)

36.2%

Since the previous three-year mid-term business plan, our Grouphas been committed to “Change and Earn.” In the ongoing
three-year mid-term business plan, with an even greater awarenessof improving growth potential and profitability, we have been working
to strengthen our financial base and deliver stable and continuous
dividends based on the policy of allocating acquired cash to growthinvestment and shareholder returns in a balanced manner.
Our shareholder return policy is to provide stable returns whileaiming for a dividend payout ratio of over 30% to meet the
expectations of stakeholders while maintaining the balance with

26.9%

26.9%

29.3%
23.2%

70 yen70 yen40 yen35 yen27.5%

90 yen90 yen50 yen45 yen60 yen60 yen30 yen30 yen30 yen30 yen30 yen35 yen40 yen45 yenFY2018FY2019FY2020

FY2021

FY2022

FY2023(Forecast)

KURIMOTO REPORT 2023

22

The Kurimoto Group:
Corporate History andBusinesses

Mid-Term Business Plan and Execution Strategy

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Corporate Governance

Performance ofthe Kurimoto GroupIntellectual Property Activities
Considering intellectual property as an essential component of management resources, the Kurimoto Group promotes active investment in
intellectual property and respects the intellectual property of other companies for the sustainable development of its business activities.
In February 2023, this policy was clearly defined as the “Basic Policy on Intellectual Property” which stipulates as follows.

Basic Policy on Intellectual Property

Situation of Patent Application
We promote a series of intellectual property activities from preceding investigation to the identification of inventions and acquisition of rights tothem in parallel with research and development activities through close cooperation between divisions and the intellectual property department
to support the prompt and comprehensive creation of intellectual property rights that are essential for the achievement of our business anddevelopment strategies.
While further enhancing the cooperation between divisions and the intellectual property department, we will continue to perform intellectual
property activities integrated with our business strategy.
Number of patents published and registered by year

1. Creation and use of intellectual property(Number)

We create intellectual property with an eye to changes in the business environment and strive to secure businesssuperiority through the strategic acquisition of rights and use of intellectual property.

100

88
80

2. Analysis and use of intellectual property information

60

We analyze intellectual property information from our own and other companies and actively use it as a resource
for sustainable business development and enhancement of competitiveness.

82

80
73

68

65
58

51

46

55

48
37

40

3. Development of intellectual property talent

20

We provide our employees with training and raise their awareness of intellectual property to enhance theeffectiveness of our intellectual property by steadily implementing strategic intellectual property activities.

0

2017

Number of patents registered

4. Legitimate exercise of our own rights and respect for the rights of other companies
We exercise our own intellectual property rights in a legitimate manner and respect the intellectual property rights
of other companies.

2018

2019

2020

2021

2022

(FY)

Number of patents published* The number of patents published refers to the number of patents for which the content of the application was published approximately 18 months
after the application based on the application publication system.
* The number of patents registered refers to the number of patents to which a patent right was established through the examination of the application.

TOPICSSpecific Activities
Internal Intellectual Property Training
Creation and Use of Intellectual Property

We are committed to the following activities to promote thecreation and use of strong intellectual property rights that
support our business and R&D activities.
Visualization of intellectual property
We sort out our intellectual property, as well as that of othercompanies, by product and by technology and analyze thestrengths and weaknesses to reflect the results in ourbusiness and development strategies.
Improvement of internal training
We have further improved the training program for divisions
to create more valuable intellectual property and strengthen
our abilities to use the property.

23

KURIMOTO REPORT 2023

Strengthening and Promotion of
the Intellectual Property Strategy

We have established the Intellectual Property Strategy
Group, which is responsible for supporting the development
and execution of the intellectual property strategy, as thecore section for the strengthening and promotion of thestrategy.
Promotion of the intellectual property strategy
We take intellectual property measures linked to ourbusiness strategy, such as the proposal of a policy for theestablishment of a patent portfolio in anticipation of futurebusinesses and the support of the creation of a strategic
alliance with external partners, through close communication
between the Intellectual Property Strategy Group anddivisions.

To promote the use of intellectual property, we started an internal intellectual property training program with renewed content infiscal 2021. With an aim to make the training “truly useful for engineers,” the new program is characterized by details customized
for each business unit.
Using the commercial products of each business division as the subject matter, it is designed to eliminate the nature of being“hard to start on” inherent to intellectual property. The synergistic effect of “visualization of intellectual property,” which is being
conducted in parallel, is also expected to promote anunderstanding of the current status of intellectual property.
The training program was originally developed forengineers, but at the request of business divisions, targets
were broadened to include the manufacturing and sales
departments, regardless of position. The program has been
positively received by participants, and we feel that it iscontributing to an increase in awareness of intellectual
property even more than initially expected.
We will continue to refine the details of the training programand visit divisions that have not yet participated in the program
to promote the use of intellectual property across the Group.

KURIMOTO REPORT 2023

24

The Kurimoto Group:
Corporate History andBusinesses

Mid-Term Business Plan and Execution Strategy

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceResearch and Development

Technologicalprowessthat connects Kurimoto’s century-plus history
and proven track record to a better future

Go Forward!

Main research facilities

Kurimoto Center for Innovative Technology (Technology Development Division)
The Kurimoto Center for Innovative Technology—the company’s
hub of creativity and R&D—forms the backbone of ourmanufacturing.
Carrying on the DNA of Kurimoto’s material technologies, the Center for Innovative
Technology conducts R&D that spans areas such as nanotechnology andenvironmentally friendly materials.
Along with material technologies, we work on related technologies such as
welding and corrosion prevention. We focus on developing parts and devices thatmaximize the functions of our materials.

By taking advantage of technological development strength and solutions
capabilities built up over the years, Kurimoto’s R&D departments collaborate
and co-create with customers and other stakeholders in moving aggressively
forward in R&D activities. Join us in developing a way to a better future.

Scanning electron microscope

X-ray fluorescence analyzer

Combined cycle test equipment

Using our advanced capabilities, we work with customers to deliver total solutions.
In addition to conducting R&D in each Kurimoto division, we have
two corporate research divisions: the Technology Development
Division based in the Kurimoto Center for Innovative Technology;
and the Composite Project Division based in the Kurimoto
Composite Center.
With the aim of being a technology-driven company andbringing the SDGs to fruition, these two divisions strive to build
new businesses and maintain existing ones. Besides justdeveloping technologies, we aim to build business models andsupply chains, and we focus on molding employees into engineers

25

KURIMOTO REPORT 2023

with advanced solutions capabilities and planners who can bringnew products and businesses to market.
In the spirit of “yonpo-yoshi,” a four-way satisfaction of goodfor the seller, good for the buyer, good for society, and good forthe future, we will provide total solutions through collaborationand co-creation, thus solving society’s problems by supporting
customers and being a trusted partner dedicated to building abetter future.

Kurimoto Composite Center (Composite Project Division)
This facility excels at meeting the challenge of developing
advanced materials incorporating Kurimoto’s core technologies.
We are now developing and commercializing next-generation FRP
in collaboration with our customers and affiliated manufacturers.
By exploiting our core technologies of kneading, pressing, and FRP molding, we aredeveloping and commercializing our Long Fiber Thermoplastic Direct (LFTD) system,high-cycle Resin Transfer Molding (RTM) system, and pultrusion molding technology.
These are all molding processes that combine excellent productivity and low cost. We
continue to improve our equipment and systems by building on our technology andexpertise as a machinery manufacturer, especially for LFTD systems that use
thermoplastic resins offering excellent recyclability.
By taking advantage of the light weight, long service life and other features of FRP,
we remain focused on developing and commercializing FRP materials that can be
employed as structural members in the automobile, civil engineering, and construction
sectors.
At the Kurimoto Composite Center, our state-of-the-art FRP technology
development base, we have installed a demonstration line for LFTD systems, highcycle RTMs, and pultrusion molding. Thus, the Center serves as a facility for co-creation
with customers and partners as we develop prototypes with an eye to mass production.

Kurimoto Composite Center

Pultrusion line

High-cycle RTM
Molding systems

KURIMOTO REPORT 2023

26

The Kurimoto Group:
Corporate History andBusinesses

Mid-Term Business Plan and Execution Strategy

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceBusiness Strategy
As stated in our three-year mid-term business plan, the Kurimoto Group will maintain its existing business foundation as it focuses on six
business areas that transcend conventional business boundaries in order to expand the scale of our new businesses. In this section, we
introduce our three core business segments, the focus of their constituent business divisions, and their respective areas of interest.

Three-year mid-term business plan
While maintaining our business foundation, we will focus on six
business areas beyond the existing boundaries in order toexpand the scale of our business.

National
resilience

Businesssegment

Business Domain

Lifeline

SocialIndustrial
Infrastructure Equipment

Division

Main
products

Major customer

Pipe
Systems

Ductile iron pipes

Water utility

Valve
Systems

Water utility, various plants
Water valves,
such as ironmaking and electricindustrial valves
power, pump manufacturers

Composite
WaterbusinessNewmaterials

StockManagement

Secondarybattery
manufacturing
process

Machinery
SystemIndustrial
Equipment

Plant
Engineering& Machinery

Industrial
Materials

Lifeline

Machinery
SystemSocialIndustrial
Infrastructure Equipment

Automobile-related
manufacturers

Powderprocessor

Carbon, engineering plastic,
rechargeable battery-related
manufacturers, etc.

Resource development
Plant engineering enterprises in various countries,
plant engineering companies

Materials &Machinery

Industrial
Materials

Forging press

Construction
Materials
Plastic
Products

Abrasion
Steel, cement, electric power,
resistant casting,environment, crushedcrusherstone-related companies
Construction
materials

Pipe material trading firms, airconditioning equipment suppliers,
general contractors, etc.

FRP (M)
products

National/local governments,
electric power companies, generalcontractors, film manufacturers

Lifeline BusinessInitiatives of our three-year mid-term business plan
Expanding our solutions and maintenance business and rationalizing our production processes
Pipe Systems Division

Valve Systems Division

Many of the water pipes in Japan have exceeded their legally designated service
lives. These pipes are at risk of leakage due to aging as well as in danger of being
seriously damaged in the event of an earthquake or severe weather. In addition,in both the public and private sectors, the water supply industry is facing ashortage of workers. To address these issues, we are promoting public-private
partnerships with the aim of effecting efficient pipeline renewal even in the face ofa worker shortage.

We provide optimal solutions in the areas ofmaintenance and renewal through field surveys(diagnosis), design, and proposals for water purification
plants and sewage treatment plants that support
lifelines. We are also aiming to expand sales in the
renewable energy market and strengthen our sales
outside Japan.

Our primary focus
Expanding the number of integrated orders for the design-build construction method for pipelines
Cumulative number of orders received

The water supply market is witnessing an increase in orders for the design-build construction
method for pipelines. This approach overcomes the drawbacks of the conventional methodof ordering the design and construction separately, as the design-build method streamlines
the work of both parties.
The number of orders we have received has been steadily increasing, with eight orders
having been received so far, three of which have been completed. By posting a steadyrecord of achievements, we are expanding our expertise and increasing our ability to offer awide range of solutions encompassing surveying, design, and construction.
It should be noted that we do not assume all aspects of the design-build construction
method alone; collaboration with other businesses and local contractors is essential. We aim
to further increase our record of achievements and expand the trust we have earned to dateas we continue to increase orders by leveraging our commitment to close communication.

(Number)

10

10

8
6
5

4

1
0

2019

2020

2021

2022

2023
(FY)
(expected)■ Ordering Procedure Ordering “design” and “installation” together makes tasks more efficient for both the purchaser and the contractor.
Conventional method
Installation company

Design company
Ordering/Contract

DesignInspection

Ordering/Contract

Trial pitting

Design change

Installation

Inspection

Pipeline design-build (DB) method
Shorten the work period bymaking tasks more efficient

Design/installation joint venture (JV)

DesignBuild

Basicagreement

Contract

DesignApproval

Contract

Trial pitting

Installation

Inspection

Legend Business entity tasks

Pipeline DB method

Private enterprise tasks

Future policies and strategies
Divisions and main group companies of the lifeline business
Pipe Systems Division

Valve Systems Division

Motoyama Eng. Works, Ltd.

In addition to manufacturing andselling ductile iron pipes primarily
for use as water pipes, this divisioncontributes to pipeline design,
construction supervision, andpipeline surveys.

This division handles a wide range of valves formarkets outside Japan. These include valves for
public sector applications such as water purification
plants and sewage treatment plants as well as private
sector applications such as power plants and steel
mills.

This company offers a broad andvaried product line to meet various
needs. These include control
valves, safety valves, relief valves,
instrumentation accessories, andbuilding equipment.

Our other affiliated companies include Kurimoto Trading Co., Ltd.; Yamatogawa Co., Ltd.; Hokkaido Kanzai Co. Ltd.; Kurimoto Logistics
Corporation; and Kurimoto Pipe Engineering Co., Ltd., etc.

27

KURIMOTO REPORT 2023

Pipe Systems Division

Valve Systems Division

We are committed to providing ductile iron pipe to all segments of
the water supply industry, including water supply utilities, sewerage,
and industrial water. We will also respond to the needs ofpublic-private partnerships, which contribute to the growth of ourbusiness. In addition, we intend to contribute to the emergence ofa decarbonized society committed to recycling while creating asustainable business. We will do so by introducing technologies toreduce CO2 emissions during ductile iron pipe manufacturing,promoting research and development of paints that extend productlife cycles, reducing CO2 generated in manufacturing processes,
and introducing innovations in our production lines that incorporate
AI technology.

Through an optimal public-private business structure that respondswith flexibility to changes in the economic environment, we aim to bea business division that can grow sustainably while maintaining stablebusiness performance. For pipeline valves, we will maximize oureffectiveness through efficient production planning and by reconfiguring
our production lines. Moreover, we will create demand for publicprojects such as water purification plants through large-scale renewal
projects and by strengthening our ability to accommodate construction
and maintenance tasks. In the private sector and outside Japan, we
aim to expand our market share, mainly for large special valves, byleveraging Kurimoto’s advanced technological capabilities andenhancing our manufacturing capabilities.
KURIMOTO REPORT 2023

28

The Kurimoto Group:
Corporate History andBusinesses

Mid-Term Business Plan and Execution Strategy

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceBusiness Strategy
Machinery System BusinessIndustrial Materials Business

Divisions and main group companies of the machinery system business

Divisions and main group companies of the industrial materials business

Plant Engineering & Machinery Division

Materials & Machinery Division

Construction Materials Division

Plastic Products DivisionThis division provides comprehensive customer support, including the supplyof production machinery and equipment for various industries; the design,
manufacture, and installation of production lines; provision of post-delivery
maintenance work; and the management of renovation projects.

We provide heat- and wear-resistant castings, crushingequipment, dredging pumps, disc brake rotors forrailway cars, and related engineering expertise utilizing
casting material technology and crushing technology.

We provide a series of solutions for measurement, design, production,
construction, and verification of road noise and other sources of noise
generated in factory facilities. Our innovations include air conditioning products
such as spiral ducts for air conditioning in office buildings; civil engineering
products used in the construction of concrete structures; and construction
products used in the hollow slab construction method that contributes tolarge living spaces with high sound insulation performance.

We are developing FRP recycling systems that benefit
the environment as we introduce production activities
focused on recycling. We are also developing FRP
products for a wide range of applications related toelectric power generation and small hydropower
applications as well as agricultural and sewage water,converting services, railways, and bridge repair.

Our other affiliated companies include Kurimoto Trading Co., Ltd.; KS-Tech Co., Ltd.; Yashima Chemical Engineering Co., Ltd.; and Japan Castering Co., Ltd., etc.

Initiatives of our three-year mid-term business plan

Our other affiliated companies include Kurimoto Trading Co., Ltd., Nihon Kaiser Co., Ltd., Zentec Co., Ltd.; and Kurimoto Polymers Co., Ltd., etc.

Winning orders by fully implementing core technologies and improving profitability through smarter production

Initiatives of our three-year mid-term business plan

Plant Engineering & Machinery Division

Materials & Machinery Division

We are focusing on adding value to individual models of equipment and machinery and offering systems
that include pre- and post-processes, expanding our lineup of press machines and further increasing
our sales territories in the global market. We are also providing kneading, reaction, and desolvent
systems suitable for high-performance resins. Moreover, we will continue to provide raw material storage
and transportation technologies as well as combustion technology for the renewable energy market.

In our crushing business, we aim to improve customer
satisfaction by adding value to existing products
through the use of IoT and AI technologies and thelike. Similarly, we intend to further reduce costs by
optimizing production in our casting business.

Rationalizing our production while expanding our business scale in the roadbuilding and industrial plant markets
Construction Materials Division

Plastic Products Division

We intend to capture the growing renewal
demand in the road building market as we
also grow sales of strategic products in
the industrial plant market.

Our goal is to expand the scale of our business by concentrating our management resourcesin new markets and growth fields such as the bridge repair market. Moreover, we intend to
improve our earning power by further reducing costs in the fields of electricity, sewage andconverting services. We will also develop production sites that respond to Japan’s declining
population by automating our equipment and improving our work environments.

Our primary focus
Our primary focus
Expanding sales of Twin-Screw Continuous Kneaders in the secondary battery market
By employing continuous kneaders for the electrode slurry kneading process, we
contribute to reduced environmental impacts, as this innovation reduces the kneading
time and minimizes the volume of organic solvents consumed. In the production process
for electrode slurries, our twin-screw continuous kneaders contribute to significantly
reduced kneading time. What’s more, the high kneading power produced reduces thevolume of organic solvents used, thus contributing
to lower impact on the environment.
In recent years, we have received manyinquiries about this product from across Japanand from other parts of Asia. In line with the trend
toward carbon neutrality, we intend to further
strengthen our efforts at expanding the
introduction of EVs.

Five-year trend in cumulative number and cumulativevalue of products shipped
Five-year trend in cumulative number of products shipped
Five-year trend in cumulative value of products shipped(Number)(Million yen)

20

2,000

10

1,000

0

2018

2019

2020

2021

2022

(FY)
2023
(expected)

0

Growing adoption of FRP materials in the roadbuilding industry
Demand for maintenance and repair is rapidly increasing due to the aging of existing road infrastructure. Inspection passages of FRP (fiberreinforced plastic) are maintenance access structures used for expressways and bridges. These are highly durable and unique structures withspecifications that improve construction efficiency. Since launching these on the market as part of our previous three-year business plan, we havewitnessed a steady improvement in our
Cumulative number of orders received
results. Our cumulative order value is(Million yen)
1,477
expected to reach about 1.5 billion yen
1,500
in fiscal 2023.
929
As we take steps to enhance our
1,000
performance, we will continue to499
500
develop innovative technologies for
205
71
maintenance and repair applications
0
(FY)
2019
2020
2021
2022
2023
while strengthening our production(expected)
system and sales activities.

Future policies and strategies
Future policies and strategies

29

Plant Engineering & Machinery Division

Materials & Machinery Division

In order to contribute to the emergence of a society committed to decarbonization,
we are providing optimized systems in the powder processing equipment field.
These advanced systems contribute to the production of high-performance resinsthat facilitate weight reduction as well as the secondary batteries required for thetransition of conventional automobiles to EVs. In the field of forging presses, we areupgrading our production facilities to contribute to weight reduction, the transition
to EVs, and the maintenance of businesses that support LCA. In the plant businesssector, we are developing a recycling business that will contribute to reduced
environmental impacts.

In order to strengthen our business foundation, we remain
highly committed to improving the profitability of our existing
businesses and implementing initiatives targeting new
businesses. For our heat- and wear-resistant cast products,
we are collaborating with our manufacturing subsidiary, Japan
Castering Co., Ltd., to reduce costs and add value. In addition,
we are addressing needs that lead to the resolution of societal
issues such as decarbonization and carbon neutrality as we
aim to contribute to society as a good corporate citizen.

KURIMOTO REPORT 2023

Construction Materials Division

Plastic Products Division

Amid changes in the market and labor environment, we willcontinue to ensure consistent levels of quality and a stablesupply of products and services. In addition, we will develop asolutions business that addresses customer problems byproviding needed products and services while seeking tocapture new demand.

We intend to satisfy our customers and the public at large as a meansof achieving sustainable growth in the plastic products business. We
will achieve this by improving the earning power of existing and new
businesses, building a sustainable business model, and implementing
initiatives consistent with Vision 2030, our long-term vision.

KURIMOTO REPORT 2023

30

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

The KurimotoGroup’s
CSR
Management

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Various committees topromote CSR management

Corporate Governance

Performance ofthe Kurimoto Group

Respect for the human rights of all people

To contribute to the realization of a sustainable society, the CSR
Committee, which is chaired by the President and composed of
directors, executive officers, general managers, and representatives
from the labor union, has been established to discuss measures toaddress climate change and many other ESG issues, develop
policies, and manage progress in various activities related to CSR
management.
In addition, to maintain a system for compliance and risk
management underlying our CSR management and to promotethese activities, we have established the Compliance & Risk
Management Committee chaired by the President; this committee
makes decisions on all aspects of compliance and risk management
including policies and other matters for the Kurimoto Group. Other
committees have also been set up to address various challenges
for the Group as a whole and carry out activities to solve respective
challenges.

The Kurimoto Group complies with applicable laws and regulations,
supports relevant international norms, respects the human rights ofall people affected by its business activities, and does not infringeon human rights for any reason, in accordance with its corporate
philosophy that states it will conduct business activities withrespect for human rights. In recognizing that respect for humanrights is a responsibility that the Kurimoto Group must fulfill, we
have established the “Kurimoto Group Human Rights Policy.”
We will present this policy to our business partners and supply
chain, encourage them to support it, and collaborate to promoterespect for human rights.

Organization Chart of the Promotion of CSR Management

CSR Committee
Approve mid-term and annual
CSR plans and monitor
progress in their implementation

CSR Promotion Conference
Develop and practice plans for CSR

Compliance Education Subcommittee• Manage education/training and enlightenment activities
on compliance for officers and employees

Basic Sustainability Policy

Creating a Future through“Inheritance and Innovation”!
Based on our corporate creed and philosophy, we, the Kurimoto Group, aim to enhance our long-term
corporate value and contribute to the sustainable development of society and Earth through manufacturing

Decision-making bodyunder Corporate Law

Board ofDirectors

Supervision /ReportingCompliance & Risk
Management
Committee
Make decisions on all aspects of compliance and risk management
including the policy and themes, and engage in related activities such asreporting on individual issues, collection of relevant information andprovision of instructions to subcommittees

Internal Control Promotion Committee
Export Control Committeethat makes everyone happy, using the technology and experience we have cultivated since our founding(inheritance), and our creativity and the spirit to challenge ourselves to overcome huge obstacles (innovation).

Environmental Promotion Committee
Kurimoto Company-wide Safety
and Health Committee

Explanation

Sustainability is a concept that aims to ensure that the natural environment, society, and economy will be able to continue into the future
without losing their current quality. It is necessary to address sustainability in corporate activities in this era of increasingly serious global-scalesocial issues.
The Kurimoto Group has instituted this basic policy with the aim of communicating to its stakeholders that it is a “company of high social
value” through its CSR and SDG initiatives, and to express the Group’s ideals as well as its corporate value.
Instituted on April 4, 2023
31

KURIMOTO REPORT 2023

Quality Conference
Development Committee

Risk Management Subcommittee• Identify risks across the company and inform theCompliance & Risk Management Committee of resultsof impact assessment and priority initiatives• Conduct simulation, training and other measures for risk
control

Information Security Subcommittee• Establish an information security system, consider
measures to prevent information leakage, promote
education/training and enlightenment activities on suchmeasures for officers and employees

Construction Business Act Compliance
Subcommittee• Develop a system to comply with the Construction
Business Act and promote education/training andenlightenment activities on related measures for officers
and employees

Various ad hoc subcommittees• Whistleblowing system: When the Compliance & Risk
Management Committee identifies the need of
specifically responding to an issue reported through acontact for consultation or reporting in the system, thecommittee establishes a subcommittee to address it.

KURIMOTO REPORT 2023

32

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

The Kurimoto Group’s ESG Materiality and SDGs
ISO 26000 core
subjects

ESG
Classification

環境への
取り組み
Environment

E

Item

Materiality

Measures to combat
climate change

Contribution to a
recycling-basedsociety[Plant Engineering & Machinery
Division]• Minimize the environmental
impact of manufacturing (weight,
materials).
• Consider circulation of recycledparts for replacement parts
during maintenance.

Select models and review
existing components.

Promotion of diversity
and inclusion• Diversity in recruitment• Fair hiring practices• Promoting women’s
empowerment[Women]Increase in applicants for regular
recruitment[Mid-career recruitment]
About the same number as
regular hires[Individuals with disabilities]
Compliance with legal standards(2.5% in 2024, 2.7% in 2026)[Women]30% or more
[Mid-career recruitment]
50% of new hires[Individuals with disabilities]
2.6%

Establishment of a
productive and highvalue-added working
environment• Strengthen employee
engagement in company areas,
as direct supervisors, and withthe work environment.
• Develop personnel andeducation systems to increase
retention rates.

Improvement of employee
engagement value

Internal target: Overall scoreaverage of 60 or higher(External disclosure method will
be considered separately).

Conservationof the global
environment

Labor practices

Fair operating
practices

Fair
transactions

Supply ofsafe andreliable
products
and services

Consumer issues

Community
involvement anddevelopment

Contribution
to the local
community

G

KURIMOTO REPORT 2023

Fair andhealthybusiness
operations

Reduce by 50% in FY2030
compared to FY2013• Candidate part selection• Form examination• Material examination

These activities are items to bemonitored, and the main activity is
to check compliance status, etc.

According to the activity plan
formulated by each committee

According to the activity plan
formulated by each committee

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance[excerpts from major themes]
Targetachievement
year

Measures implemented

2030• Promote energy conservation activities atfactories, improve productivity, and promotewaste heat recovery.
• Significant reduction of CO2 emissions throughfactory integration• Fuel conversion for cupolas and gas burners• Consider using renewable energy.

2025• For large parts, consider weight reduction andchange from casting to welding structure
through analysis, simulation, etc.
• Review the forms of replacement parts andminimize the number of replacement parts.
• Circulate recycled parts and do not dispose ofthem carelessly.

Progress status in FY2022

SDGs

Progress status

Summary

Yearly results (iron pipe factory
estimate):
38,651 t-CO2 (-42.8%)
FY2021 result: 54,652 t-CO2 (-19.1%)
FY2013 result: 67,593 t-CO2 (BMyear)

CO2 emissions were reduced as production volume
decreased (26.2% reduction compared to BM,
including CO2 emissions from electricity).
Bio-coke was tested in the cupola at Sakai Factory,
with consideration given to increasing the amount ofuse going forward.

13-2

Will start in FY2023.

• In addition to cost and performance, considerationof environmental impact reduction will berecognized as a product value in the future.
• At present, replacement parts are new as a matterof course, but more and more customers will findvalue in recycled parts.

12-4

2025

• Review of the recruitment website• Strengthening information dissemination on
women’s empowerment• Strengthening follow-up in female applicant
recruitment• Employment of individuals with disabilities:
Strengthening relationships with universities
and special-needs schools• Female applicants for regular
recruitment: 35.5%• Mid-career recruitment: 48.8%• Statutory employment rate: 2.56%• Interviews with senior female employees were held
for female applicants. The senior female employees
were appointed as personnel recruiters to increase
appeal.
• The need for mid-career recruitment increased,
particularly in sales positions.
• At the request of a special-needs school for people
with disabilities, a lecture was given on our efforts inthe employment of people with disabilities.
One new employee is to join our company in fiscal
2023.

5-5

2025

• Conducting periodic research and providing
feedback• Promotion and monitoring of activities in eachdepartment• Implementing necessary measures forpromotion support• Information sharing and horizontal expansion

Conducted for 459 respondents inspecific departments
The year-end overall score was 48.1
points.
Up 0.3 points from the beginning of
the year• For two divisions, opportunities were created for
department managers to exchange opinions with
the President to disseminate supervisors’ policies.
• Interviews were held with model divisions in theinitiative, and examples of successful activities wereshared with other divisions.

8-2

Continued• Compliance with the Corporate Code of
Conduct• Confirmation of compliance status with the
Basic Policy on Information Security• Confirmation of compliance status with various
laws and regulations (Construction Business
Act, Anti-Monopoly Act, Act on the Protectionof Personal Information, export control laws,
Product Liability Act, Anti-Organized Crime
Law, Subcontracting Act…etc.)• Confirmation of compliance status with the
Basic Procurement Policy

Continued• All employees are informed about the Corporate
Code of Conduct.
• Information dissemination and awareness-raising
activities concerning information security were
implemented.
• Information dissemination, education andawareness-raising activities related to compliancewith various laws and regulations were provided.
• We are considering putting more effort into
information dissemination on green procurement
and expanding its scope to include parts andproduct procurement.

Quality control activities and preventive/corrective
actions at each worksite

Meetings related to quality are held ineach division and worksite (once amonth) to improve quality.
Major factors in complaints arevisualized to enhance improvements.

In departments that need further improvement,
activities to improve products to better suitcustomers’ operating environments were successful,
resulting in a significant reduction of complaints (from0.56% to 0.19% in sales ratio).
The Group’s overall complaints remained unchanged
numerically from fiscal 2020, and countermeasures
are in progress.

12-6

Will start in FY2023.

In the stone crushing market, the labor shortage is
expected to become increasingly distinct in the future,and more productive systems are needed. In view ofthis, in addition to the particle size distribution
measurement technology using image processing,which is already being developed, we will develop
automated plant operation technology and provide ahigh-value-added system for differentiation from ourcompetitors.

9-4

Assessment andmanagement of the
supply chain

Provision of proper
information on
products and services

S

CO2 emissions in Energy Saving
Act (Law Concerning thePromotion of the Measures to
Cope with Global Warming)
ReportTarget value• CO2 emission reduction at twoiron pipe factories• CO2 emission reduction throughenergy conservation activities

Corporate
culture thatenables
employees
to worksafely withsatisfaction

33

Activity progress management
indicators related to issues(KPIs)

Environment

Human rights

Organizational
governance

Activities related to issues

Our Commitments

Goal

Target

17-17

12-6

Securing of quality,
safety and reliability
and establishment of aproper supply system• Improvement of product quality• Elimination of complaints

Proposal of optimal
systems that lead tocustomer satisfaction[Materials & Machinery Division]
Provide automated operation
systems to solve problems in thestone crushing industry, such aslabor shortages and dependence
on personal skills in plant
operation.

Field test completion forautomated plant operation

Launch of automated plant
operation system2024• Improvement of accuracy of particle size
distribution measurement technology• PLC control technology verification• Roughness determination system feasibility
verification• AI plant operation autonomous solutions
feasibility verification• Automated plant operation system field test

Good relationship withthe local community

Promotion of volunteer activities(Lineup expansion)

Lineup additions

Lineup expansion

2025• Consider a social contribution shareholder
benefit program.
• Promote volunteer leave.

Case study on the social contribution
shareholder benefit program(continued)

Case study on the social contribution shareholder
benefit program (continued)

11-6

Continued• Data management (visualization and sharing)• Compliance briefings (twice a year)• Regular communication with local lawyers• Ensure that approval must be received forimportant settlements and the conclusion ofcontracts.
• Promote understanding and keep everyone
informed about the laws and regulations ineach country.
• Resumption of periodic on-site visits

Overseas bases are regularly
communicated with through web
conferences and visits.
Gathering information on the status ofoverseas bases (twice a month) andsharing it with relevant personnel.
Measures for Cookie in Europe were
implemented.
Individual cases have also beenhandled.

We will continue to communicate over the Internet.
On the other hand, on-site visits will be made asnecessary to understand operational aspects andverify information transmitted locally.

16-5

Strengthening ofgovernance andprevention ofcorruption

Prevention of corruption andinappropriate transfer of profits atoverseas subsidiaries(China, U.S.A.)

According to the activity plan
formulated by each committee

Number of occurrences

According to the activity plan
formulated by each committee

Zero occurrences of corruption
at overseas sites

Continued

KURIMOTO REPORT 2023

34

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

Mid-Term Business Plan
and Execution Strategy

Our Commitments

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

Environmentally Conscious Manufacturing in All
Business Activities
Promotion of CO2 emission reduction

Environmental
Initiatives

Environment

We have set a CO2 emission reduction target for fiscal 2030 to achieve our goal of becoming carbon neutral by 2050. As an initiative toachieve this goal, we have been introducing CO2-free electricity derived from renewable energy sources mainly at our Head Office, theKagaya Factory, and other worksites and production plants in the Kansai area since fiscal 2022. Through this initiative, we will reduce CO2
emissions particularly at our main factories.
Moreover, along with updating energy-efficient equipment, we are considering production systems and fuel conversion that contribute to
CO2 emission reductions when making capital investments for productivity improvement, aiming to achieve a 50% reduction compared to
the fiscal 2013 level, which exceeds the reduction target set by the Japanese government for fiscal 2030. In an effort to achieve carbon
neutrality by 2050, we will look into all possibilities for continuous reduction of CO2 emissions.
STEP1

CO2 emission reduction target (FY2030)
90,00050% reduction from FY2013

80,00070,000STEP160,00050%

STEP2

reduction

50,000STEP240,00030,000

Reduce Scope 1 (direct emissions) CO2 emissions by upgradingenergy-efficient equipment and by building production systems
and implementing fuel conversion methods that contribute to
CO2 emission reductions when making capital investments for
productivity improvement.

20,00010,000A Balance of
Manufacturing andthe Environment

Environmental Management Structure
Chaired by the manager of the section in charge of environment
management in the Head Office, the Environmental Promotion
Committee cross-connects different divisions and worksites
and promotes the introduction and operation of anenvironmental management system and environmental impact
reduction activities.

Aiming at Coexistence with
the Earth【Environmental Promotion Committee】
Chairperson: Manager of the section in charge of theenvironment management in the Head OfficeCommittee members: Managers responsible for theenvironment management in factories

0

2. Compliance with laws, regulations, agreements, actionplans, etc. and elimination of environmental risks
We will strive to prevent environmental pollution and eliminate environmental risks
by strictly observing the Basic Act on the Environment, environment-related
regulations, and agreements with relevant government agencies, variousorganizations and companies, voluntary action plans, and other groups.

3. Energy saving, resource saving, reduction of waste andrecycling to promote reduction of environmental impact

In addition to its own CO2 emissions (Scope 1 and 2), the Kurimoto Group has been calculating the emissions of its entire supply chain since
fiscal 2021. In the first year (fiscal 2021), we made a trial calculation to estimate the scale of the entire supply chain, and in fiscal 2022, westarted official calculations.
Going forward, we will continue calculation, expanding the scope of calculation from a non-consolidated to consolidated basis and also
improving accuracy, aiming to achieve carbon neutrality by 2050 through efficient CO2 reduction efforts throughout the supply chain.

Emission Category

4. Promotion of shifting to products with lower environmental
impact and development of environmental conservationequipment

We will provide educational programs on the environment and conduct internal andexternal PR activities for better understanding of all employees, raising theirawareness of environmental issues.

FY2021

FY2022

4.63

4.46

4.02

Scope 2
[Indirect emissions from energy generation]

Indirect emissions from the use of electricity and heat purchased by thecompany

1.47

1.82

0.13

Scope 3[Other indirect emissions]

6. Promotion of participation in social contribution activities
Aiming to realize a better global environment, we will actively participate in andsupport social contribution activities as a corporate citizen and communicate with
our stakeholders on the environment.

Category 1

Products and services purchased by the company−(17.47)25.50

Category 2

Capital goods

−

0.69

0.43

Category 3

Fuel and energy-related activities not included in Scope 1 and 2

−

1.55

1.40

Category 4

Transportation and delivery (upstream)−

Not calculated

0.85

Category 5

Waste generated by business operations

−

0.37

0.35

Category 6

Business trip

−

0.02

0.02

Category 7

Employee commuting

−

0.07

0.07

Category 8

Leased assets (upstream)−

Not applicableNot applicable

Category 9

Transportation, delivery (downstream)−

Not calculated

0.01
Under
consideration

Category 10

Processing of sold products−

Not calculated

Category 11

Use of sold products−(8.07)

Category 12

Disposal of sold products−(1.21)

1.13

Category 13

Leased assets (downstream)−

Not applicableNot applicable

Category 14

Franchise−

Not applicableNot applicable

Category 15

Investment−

Not applicableNot applicable−(35.73)51.38

Figures in parentheses

Low data reliability due toestimation

Total GHG emissions through the supply chain
Not applicable

KURIMOTO REPORT 2023

FY2020

Direct emissions from the use of fuels and industrial processes in thecompany

We will take care to minimize the environmental impact of all our products at eachstage of raw material procurement, production, distribution, use, and disposal. We
will also actively promote the development, dissemination, and introduction ofequipment and facilities that contribute to environmental conservation.

5. Environmental education and enlightenment of all
employees

Emissions (10,000 t-CO2)

Scope of Calculation

Scope 1 [Direct emissions]

We will promote energy and resource conservation by eliminating defects andspoilage in our production activities and will also work to reduce environmental
impact through reduction, effective use, and recycling of waste.

35

FY2030Efforts to reduce CO2 emissions including supply chain

In all our business activities, we are committed to manufacturing products that are environmentally friendly for water, air, and life on planet Earth.

We will work based on the concept of environmental management, which
integrates environmental considerations into corporate management. By
developing an environmental management system in the Kurimoto Group, we willcontinuously improve our environmental conservation activities. In addition, we willfunctionally operate the Environmental Promotion Committee to engage in global
environmental conservation activities at the Kurimoto Group, and effectively
operate the environmental management system.

FY2013*All figures above are the sum of Scope 1 and Scope 2 of Kurimoto, Ltd. ona non-consolidated basis.

CO2 emissions throughout the supply chain (Kurimoto, Ltd. on a non-consolidated basis)

Kurimoto Basic Environmental Policy

1. Promotion of environmental management and continuous
environmental conservation activities

Reduce Scope 2 (indirect emissions from energy generation)
CO2 emissions by switching electricity to carbon-free electricity
derived from renewable energy sources, etc. mainly at worksites
and production bases in the Kansai area, including the Head
Office.

No applicablecalculation items

Not calculated

Excluded due tolow data reliability

Under consideration

Optimal calculation method
under consideration

17.47

KURIMOTO REPORT 2023

36

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

Response to TCFD

Sustainability

Corporate Governance

Performance ofthe Kurimoto GroupScenario Analysis Results
Effects of Climate-related Issues(Risks and Opportunities)

Task Force on Climate-related Financial Disclosures

Sustainability Promotion Organization Diagram

The CSR Committee chaired by the President has been establishedto promote management from a sustainability perspective.
The committee meets twice a year to discuss climate change
as an important agenda item. Decisions made at the meetings arereported to the Board of Directors and reflected in the managementof the entire Group.
In fiscal 2021, the Board of Directors discussed the switch tocarbon-free electricity, the use of biofuels, and a production systemthat contributes to reducing greenhouse gas (GHG) emissions, andresolved to reduce GHG emissions by 50% in fiscal 2030 comparedto fiscal 2013.

Strategy

CSR Promotion Division

Compliance & Risk
Management Committee

Risk Management
Subcommittee

Chair: President
Committee members:
Directors; executive officers; generalmanagers from the Head Office,branch offices, and factories;
representatives from the labor
union; and corporate lawyers

Information Security
Subcommittee
Construction Business
Act Compliance
Subcommittee

Secretariat

Legal Affairs Department

Climate change scenarios referenced in scenario analysis
A world where temperature rise iscontrolled by policies

A world undergoing temperature
increases and climate change

1.5°C scenario

4°C scenario

The increase in temperature by 2100 is
limited to 1.5°C compared to levels in
the late 19th century.
Transition risks such as carbon taxes
due to tighter regulations have an impact
on the world.
The influence of physical risks is relatively
small compared to the 4°C scenario.

The temperature in 2100 rises by 4°C
compared to temperatures in the late
19th century.
Physical risks such as severe extreme
weather exert impact on the world.
The influence of transition risks issmall, as there will be no strengtheningof regulations on climate change.

Transition

IEA NZE・SDS・APSIEA STEPS

Physics

IPCC RCP 2.6

IPCC RCP 8.5

Worldview

Overview

KURIMOTO REPORT 2023

Indexes and Targets

Scope: Kurimoto, Ltd. (non-consolidated) (Scope 1 + Scope 2)
Emissions (t)Reduction rate from FY2013
Kurimoto’s target

45.5% reduction
41,51150.0%

2013 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30

Opportunities

Greenhouse gas (GHG) emissions reduction [t-CO2]

Risks

To assess and manage the progress of sustainability management
and the effects of policies and other measures on climate change,
we have set greenhouse gas emissions as an index.
Our target is to reduce greenhouse gas emissions by 50% ormore in fiscal 2030 compared to fiscal 2013. To achieve this goal,
we will continue moving forward with energy conservation at ourplants and the introduction of renewable energy.

76,134High

Low• Introduction of carbon-free electricity• Improving productivity by optimizing factoryequipment• Switch to low-carbon vehicles (commercial
vehicles)• Bio-coke introduction test

[Company-wide]
The introduction of carbon taxes, emissions trading, and othercarbon pricing mechanisms will incur costs, such as tax payments
and purchases of emission allowances, depending on the amountof greenhouse gas (GHG) emissions in a company.

Regulations on the useof fossil fuels[Lifeline]
The use of fossil fuels in iron pipe production will be regulated,
incurring costs in switching to alternative fuels.

MediumLow

Regulation of plastics[Machinery system]
Sales from customers in the petrochemical and steel industries willslow down, and demand for related products will decline.

MediumLow

Introduction ofrenewable energy andenergy conservation
policies[Company-wide]• Renewable energy introduction will push up electricity costs.
• Equipment costs will increase due to the need for companies tosave energy, which will necessitate equipment renewal, etc.

High

Low

Information disclosure
requirements[Machinery system]• CO2 emission calculation per product (CFP calculation) isrequested mainly by the automobile and battery industries, andcosts will be incurred to deal with these requests.
• If CFP is not calculated, our products will be excluded from
customers’ choices.

Low

Low

Changes in the energy
mix[Machinery system]
Demand for products related to coal-fired power generation will
decline.

Medium

Low

High

Low

MediumLow[Machinery system / Lifeline]
Introduction of a
Sales of products related to renewable energy will increase with therenewable energy policy
spread of renewable energy.

MediumLow• Expanding sales in products related torenewable energy(Valves for power generation facilities, plant
equipment for power generation, etc.)

Introduction of anenergy conservation
policy[Machinery system]
With the spread of EVs, demand for products related to secondary
batteries will increase.

MediumLow• Expanding sales in energy-saving products(Secondary battery manufacturing process
products, etc.)

Changes in customer/
investor reputations[Company-wide]
Disclosure of proactive environmental initiatives will increase
opportunities to acquire new customers and make investments andloans.

MediumLow• Information disclosure based on TCFD
recommendations• Disclosure of environmental information
through CSR reports• Consideration given to green procurement

Intensification of
extreme weather[Company-wide]• Delays in delivery, securing substitute products, etc. will occur.
• Possibilities of damage to our equipment will increase.
• Reduced purchasing power with customers affected by disasterwill push down our sales.

MediumHigh• Ensuring readiness in line with our company’s
BCP

Rising averagetemperatures[Company-wide]
Rising temperatures will increase air conditioning costs during thesummer months.

Low

MediumDeteriorating working
conditions
Stricter labor laws

[Company-wide]• If outdoor work is involved, extreme summer heat will reduce laborproductivity, resulting in lower profitability.
• If labor laws are tightened, the working environment needs to be
improved.

Low

Low

Intensification of
extreme weather[Lifeline]
Extended water supply networks will increase demand for ironpipes.

Low

Medium[Company-wide]
Changes in raw material• Prices of fossil fuels used in manufacturing will fluctuate.
costs• Prices of steel and metals used as raw materials will rise sharply.

Opportunities

and implement initiatives. Through the risk management systemdescribed above, risks that could have a significant influence on
our business are identified and reflected in our management plan.

Physical effects of climate change

Risk Management

4°C
Scenario

Introduction of a carbon
price

Recycling regulations

We have put a risk management system in place with the aim ofenabling accurate management and implementation of measuresagainst various risks surrounding our business. Risks posed byclimate change are integrated into the company-wide risk
management system in cooperation with the CSR Committee.
In accordance with risk management regulations, risks related
to each business division and our Group company are identified
every three years, and a risk matrix is prepared by the Risk
Management Subcommittee. Identified risks are assessed basedon their type, severity, frequency or probability of occurrence, andimpact on management.
Specifically, risks are classified into four categories: human,
property, liability, and credit, and are rated on three levels of severity(including impact on management) and four levels of frequency orprobability of occurrence.
The risk matrix is reviewed once a year, and the results are
examined and approved by the Compliance & Risk Management
Committee.
For the management of assessed risks, we have established a
specialized
subcommittee
to
study
and
implement
countermeasures. Matters discussed by the committee andspecialized subcommittee are shared by employees to promote

Internal Initiatives

1.5°C
Scenario

Compliance Education
Subcommittee

Supervision /Reporting

Scenario

We are conducting a scenario analysis to understand the impact ofrisks and opportunities arising from climate change. For scenario
analysis results, please refer to the table “Scenario Analysis
Results” on the next page.

Chair: President
Committee members: Directors, executive officers, general managers, andrepresentatives from the labor union
Secretariat

Board ofDirectors

Severity Assessment
Potential Events

CSR Promotion
Conference

CSR Committee

Governance System

Risks

In support of the TCFD (Task Force on Climate-related Financial
Disclosure) recommendations, Kurimoto is committed to disclosing
information on the risks and opportunities posed by climate change
to our business in terms of governance, strategy, risk management,
and indexes and targets.

37

Mid-Term Business Plan
and Execution Strategy

Environment

Effects of the transition to a decarbonized economy

Environmental
Initiatives

Our Commitments[Machinery system]
Tighter recycling regulations will increase demand for recycling
business-related products.

• Optimizing factory equipment to improve
productivity• Promoting equipment introduction through theintroduction of ICP• Diversification of raw material procurement
routes• Examination of alternative products• Appropriate temperature setting• Capital investment that contributes toimproving the working environment• Acquisition of Certified Health andProductivity Management Organization
Recognition (Large Enterprise Category)• Focus on sales for products related to disaster
response

KURIMOTO REPORT 2023

38

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

Environmental
Initiatives

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

Environment

Green procurement activity promotion

TOPICSTo pursue environmental conservation in our supply chain, we
promote green procurement activities. Kurimoto’s basic ideas arepresented to suppliers as guidelines to ask for their cooperation.

We also encourage suppliers to develop their environmental
management structures in reference to ISO 14001/JIS Q14001(environmental management system).

Guidelines
In purchasing, we will select the products with less environmental impact in consideration of the following aspects.

1. Materials

5. Energy saving

The materials to be used in products and parts shall be easily recyclable.
The kinds of the materials to be used in products and parts shall be uniform
whenever possible.

Energy saving (power, fuel, etc.) shall be considered in the production process.

6. Easiness of disassembly
The products and parts shall be able to be easily disassembled into reusable units.

2. Recycling
A large quantity of recycled materials shall be used in the materials to be used in
products and parts.

7. Packaging materials
The packaging materials (containers, packaging materials, etc.) shall be recyclable
and able to be reused or used as recycled materials.

3. Resource saving
The raw materials shall offer a high yield to enable effective use of resources.
The products and parts shall be smaller and lighter and have a low failure rate.

Full-scale demonstration of ductile iron pipe manufacturing using bio-coke
Before taking on the challenge of achieving carbon neutrality by 2050, we will be the first in theindustry to undertake full-scale cupola fuel conversion from coal-derived coke to plant-derived
bio-coke in the manufacturing process of ductile iron pipes, with the aim of reducing our CO2
emissions by 10% or more.
This initiative is expected not only to reduce CO2 emissions in the entire cupola industry,
which uses coke, but also to promote zero emissions in eachindustry related to raw biomass materials, bringing the positiveeffects of environmental measures to the industry as a whole.
Looking toward the future, we are committed to realizing
ductile iron pipe manufacturing that adapts to the circular
economy era to create a sustainable society into the next
generation.
Bio-coke

4. Chemicals

CupolaLess amount of hazardous substances shall be used (legally banned substances
shall not be used).

Lead-free bronze alloy “KURIKA BRONZE®LN”

Material flow in ductile iron pipe manufacturingDuctile iron pipes play an important role in the main arteries ofindustry, such as underground water, underpinning people’s lives inevery corner of society, including urban, suburban, and rural areas.
With high adaptability to severe laying conditions, as well as highdurability and easy applicability, ductile pipes are used widely as
parts for conduit lines in water supply, agricultural water supply,
sewage systems, and industrial water supply. Ductile iron pipes are

made of iron, which is highly recyclable, and we are making efforts
to use other materials efficiently, in addition to paint, water, andenergy. In fiscal 2022, we substantially reduced CO2 emissions byintroducing CO2-free electricity. The material flow in the productionof ductile iron pipes is presented below in relation to the environment
in two of our factories responsible for manufacturing them.

The lead-freetakes youto a new world

KURIKA BRONZE®LN* Figures are data for FY2022 while those in parentheses are data for FY2021.

[ Input ]Energy

Water

Coke

8,700 t(9,800 t)

City gas 13A

4,970,000 m3 (5,280,000 m3)

Electricity

30.8 GWh

Raw materials and paintIndustrial water

191,000 m3(201,000 m3)

Main raw materials

50,800 t (63,400 t)

Water supply

32,000 m3(33,000 m3)

Cement, mortar materials

2,280 t(2,920 t)

Other materials

5,350 t(5,850 t)

970 t(1,060 t)(32.8 GWh)

Paint

[ Output ]Ductile iron pipes
52,300 t (58,700 t)

CO2 emissions
CO2

Exhaust gas emissions

38,900 t-CO2 SOx(54,600 t-CO2)
NOx
VOC

39

“Lead-free takes you to a different world” is our main message. With a focus on the developmentof lead-free copper alloys, we have put brobea® (for sliding members) and KURIKA Series (forwater supply equipment) on the market. We would now like to introduce one of the products
comprising the KURIKA Series, “KURIKA BRONZE®LN” (JIS: CAC905). Lead-free bronzes havetraditionally had issues with 1) material cost, 2) castability, and 3) corrosion resistance compared
to conventional materials. KURIKA BRONZE®LN, however, has excellent castability and corrosion
resistance at a cost close to that of conventional materials. It is also environmentally conscious interms of energy saving and CO2 emission reduction, as it can melt and cast at lower temperaturesin a shorter period of time.
KURIKA BRONZE®LN, which is used in various water supply components, recently acquired
US ASTM certification. Going forward, we will enter the North American market where lead
regulations are strict, and aim to make it the industry standard for lead-free bronze for water supply
components, thereby contributing to the realization of a sustainable society in terms of materials.

KURIMOTO REPORT 2023

1.13 t(1.69 t)15.2 t(16.0 t)81 t
(95 t)

Volume of wastewater
Volume of processwastewater

160,000 m3(189,000 m3)

Industrial waste
Industrial waste

13,100 t(13,700 t)

Noise and vibration
Less than
the regulation values

The “Comprehensive CFRP Circulation System,” in which we participate as a partner,
won the JEC Composites Innovation Awards
In March 2023, CFRP recycling technology and “Comprehensive CFRP Circulation System,” inwhich Kurimoto participates as a partner company of the Toyota Industries Corporation(hereafter, Toyota Industries), received the JEC Composites Innovation Awards (in the Circularity& Recycling category).
In this system that recycles used CFRP carbon fibers, we participate as a partner for CFRP
pultrusion using recycled fibers and succeeded for the first time in the world in continuous
pultrusion using epoxy resin and newly developed recycled materials.
We will continue to work on further demonstration tests and improvement of molding andproduction technology for recycled FRP products, aiming to realize a sustainable society.

Recycled quantity
Recycled quantity

12,900 t(13,500 t)

Conceptual diagram of the comprehensive
CFRP recycling system(provided by Toyota Industries)

KURIMOTO REPORT 2023

40

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

Mid-Term Business Plan
and Execution Strategy

Our Commitments

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceStaying Aware of Problems and Acting Positively
and Proactively
Basic education policy and capacity-building support• Cultivation of an organizational culture that encourages employees to study

Education System Diagram of Kurimoto, Ltd. (FY2023)

personnel, including women, non-Japanese, people with disabilities, and mid-career hires with various professional backgrounds can play an active role, andcreate opportunities for them to build capacities required.
• By bringing together diverse values and making the most of them, we aim to respond to the rapidly changing market environment and achieve sustainable growth.

41

KURIMOTO REPORT 2023

Skills Technical

Sales

Training for 3rd-year employees hired for regular employment

2nd yearTraining for 2nd-year employees hired for regular employment

New
employee

New employee introductory training

New employee follow-up training

P Course*3

Brother & SistersystemCredit management training
Intellectual property training

C2 rotation
system

Mid-career employee training

C Course*2

Job type/departmentbased education

Various skill exams (casting, mechanical processing, finishing, mechanical maintenance, etc.)• In line with our corporate creed of “cultivating wisdom and asking many people for advice,” we create a work environment where a diverse range of Kurimoto

Promoted mid-level staff training(P5 and C2)

Compliance education, safety and health education, environmental education, quality
education
Human rights education, diversity promotion education, time management training,

3. We will promote diversity initiatives.

3rd year–

GlobalCSReducation related

Global personnel development program, TOEIC test, overseas on-site training, etc.

regardless of age and develop a system where employees are motivated and can feel happy.

Mid-level

Basic management training
Training for management skill
enhancement at an early stage

New life training (58 years old)Management staff promotion assessment training

Seniorclass

LifedesignMiddle senior training (50 years old)

New management staff training

Scheme to support the acquisition of public qualifications• With an aim to improve employee engagement, we will establish a system where those who have taken action and made achievements are rewarded fairly

Current management staff training

Distance learning system

Management staff(M Course*1)

Support ofpersonal
development

New executive officer training

Senior manager (newly appointed M2/division
manager) training

Union members• We will promote work-life balance and develop a flexible mechanism that enables diverse personnel to work actively.

New director training

Training for
selected
employees

Improvement cafeteria system (business school)

Directors/
Executive Officers• We will promote the creation of an organization where people take full responsibility for their actions and complete them by themselves.

2. We will create a workplace that motivates Kurimoto employees.

Personnel
system-related

Position-based training• We will develop a system that gives all employees opportunities to take on challenges voluntarily and that supports them.

values.

• CSR education for work style reform, promotion of diversity, and achievement of a sustainable
society

Opinion exchange meeting between the
President and department executives based on
survey results

1. We will reform the corporate culture and the mindsets and behaviors of Kurimoto employees.

• We aim to develop a corporate culture where all the abilities of those who belong to the organization are mobilized and demonstrated to foster creative and original• Finding and fostering candidates as the next executives and innovative Kurimoto personnel

As one of the activities to increase corporate value, we conduct employee engagement surveys
that quantitatively show the strength of the ties between companies and their employees. Amidchanges in social conditions such as needs of personnel and diversification of values and work
styles, we continually strive to be a company that is chosen by its workers and to maximize theperformance of each individual. We expect these activities to produce various effects such as“improving productivity,” “securing excellent personnel,” and “decreasing the turnover rate.”

Selection-based training

Based on the concept that people are the most important assets for companies,
the Kurimoto Group respects the diversity of human resources and strives tocreate a work environment where employees can work with peace of mind
according to their individual aptitudes and competencies.

• Strengthening of conceptual skills (abilities to think logically and solve problems) of young and midlevel employees

Improvement of employee engagement

Human Resource Development Strategy

Human resources policy for realizing sustainable growth• Strengthening of the organizational management abilities of management staff who play pivotal
roles in corporate management

KPC management
schoolto Create a Work Environment
Where Diverse Personnel
Can Play Active Roles

Five specific measure items

1. 
We will produce value-added products andservices through capacity building for employees
and revitalization of the organization to createcustomer value and make social contributions.
We will support employees in their career
2. 
development and capacity building and foster
abilities to make social contributions as well as
foster rich humanity as members of society andas members of the organization.

Next-generation management
leader development training

Manufacturing andCultivating Wisdom

Basic education policy

Target management system training

Social

Production leader
development training(section chiefs)

SocialInitiatives

Based on the corporate philosophy “We aim for the happiness of our employees and the happiness of mankind through manufacturing
products,” we strive to realize the basic policy stated below. As specific themes to work on, we develop training programs and othereducational measures with a focus on the following five items, thereby promoting employee career development and improvement oforganizational strength.

Newsales staff
training*1: M Course (management course) *2: C Course (creative course) *3: P Course (professional course)

KURIMOTO REPORT 2023

42

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

SocialInitiatives

Evaluation of action-for-change process
We highly evaluate taking on challenges without fear of failure andrevise the target management system to utilize results for capacity
building.

Promotion of diversified work styles
To create an environment that facilitates change, we review ourbusiness processes to facilitate reform and diversification of ourwork styles.

The Kurimoto Group promotes mid-career recruitment immediate
forces who can be contributed to the company and enhance thediversity of human resources in the workplace to develop a cultureof making reforms and taking on challenges. We have also
formulated an action plan to promote activities to develop a work
environment where female workers can play active roles.
Number of new employees
by year (Kurimoto)
50

46

47

40

16

20

We bring forward an overall plan based on future business plans topromote diversity.

20

Early development of core human resources (formanagers, overseas reps, leaders, etc.)
Based on the future business concept, we formulate and analyze
human resource portfolios and make efforts in early developmentof core human resources for the positions of manager, overseas
representative, and leader.

Fostering spontaneous career orientation and creatinga system for career development
In addition to establishing means for each employee to recognize
their own strengths and for what they need to raise awareness, weenhance systems and tools to support voluntary and spontaneous
capacity building and strengthening, including reskilling (training
programs and educational materials).

Developing an internal environment that respects diversity
The Kurimoto Group values the diversity of human resources in theworkplace, including women, non-Japanese, people withdisabilities, and mid-career hires with various professional
backgrounds, striving to create a work environment where these
employees can play an active role according to their individual
aptitudes and competencies.

Promotion of employment of people with disabilities
The Kurimoto Group continues to make various efforts to create acomfortable work environment for people with disabilities and toadapt workplaces to accommodate their needs.
Employment of people with disabilities by year (Kurimoto)
Number of employees with disabilities(Persons)

34

38

34

36

Employment rate
(%)

39

4.0

30

0

3.0
2.27

2.53

2.26

2.39

2.56

2018

2019

2020

2021

2022 (FY)

Legallyrequired
percentage

2.0
1.0
0

* As of June 1 every year (according to the annual report on the employment of people withdisabilities)* Employing one person with severe disabilities is considered the same as employing two
persons with disabilities.

KURIMOTO REPORT 2023

10
0

Ratio of women to theapplicants for regular
recruitment (Kurimoto)

Regular recruitment
Mid-career recruitment(Persons)

30

Creating a human resource management systemthat encourages individual development andgrowth and leverages employee strengths

43

Promotion of mid-career recruitment and women’s empowerment measures

Promotion of diversity

10

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

Safety and HealthCreating a corporate culture that encourages
change and reform

20

Mid-Term Business Plan
and Execution Strategy

SocialInternal Environment Improvement Policy

40

Our Commitments

30
2020

(%)
50

41

35.5

40
30

20

21.3

24.0

24.1

24.7

20
10

27

21

2021

2022

0

2018 2019 2020 2021 2022

(Year of entry)(FY)* Excluding those hired as part-time employees

Action plan based on the Act on Promotion of Women’sParticipation and Advancement in the Workplace(Three years, from April 1, 2021 to March 31, 2024)

Target 1: Increase the ratio of female workers among the new
employees hired at the time of regular employment to30%.
Target 2: Increase the ratio of male workers who take childcare
leave to 13%.

Progress in safety and health activities

Results of health and safety activities

The Kurimoto Group actively develops safety and health activities
with the involvement of our Group companies and partnercompanies to attain the ultimate goal of zero occupational
accidents and zero occupational illnesses.
Since 1962, the Kurimoto Company-wide Safety and HealthCommittee has held meetings with the participation of the whole
Kurimoto Group, including partner companies, in health and safety
activities to meet the target of zero occupational accidents andzero occupational illnesses. Our safety initiatives include steady
implementation of activities that serve as the foundation of safety
such as safety patrols, safety training, risk assessment, and risk
prediction. We also address health-related issues such as theimplementation of periodic health checkups, prevention of lifestylerelated diseases, avoidance of overwork, and strengthening of
support for mental health through implementation of workshops,
consultations with industrial physicians, specific health guidance,and stress checks in a planned manner.

The Kurimoto Group follows the PDCA cycle of safety activities by
ensuring, in case of an occupational accident, that the cause isascertained and that measures are taken to prevent recurrence, inorder to eliminate occupational accidents.

Kurimoto’s Company-wide Target and Basic
Policy for Safety and Health in FY2023

Number of occupational accidents(including accidents with no lost workdays)
Kurimoto (excluding affiliates)

Group companies(No. of accidents)

25
20
15

15

13

12

11

9

10
5
0

2018

2019

2020

2021

2022

(FY)

Frequency rate
Kurimoto Group
Kurimoto (excluding affiliates)
Average for the whole manufacturing industry in Japan

Promotion of support for balancing work and life
Kurimoto works to ensure that employees can keep working
actively while balancing work and life through the development andimprovement of programs that help them “work-life balance,” aswell as other initiatives.
Action plan based on the Next Generation Nurturing Support
Measures Promotion Law

TargetZero occupational accidents and zero
occupational illnesses
Safety Declaration
We will adhere to the rules decided by us orothers.

2.0
1.5
1.0
0.5
0.0

(Three years, from April 1, 2021 to March 31, 2024)

Target 1: Take measures to encourage employees to use theprograms that help them balance work and life.
Target 2: Improve the personnel systems applicable duringchildcare leave.

“Platinum Kurumin” certification obtained
On August 15, 2022, based on the Next Generation Nurturing
Support Measures Promotion Law, Kurimoto was awarded the“Platinum Kurumin certification” by the Osaka Labour Bureau of
the Ministry of Health, Labour and Welfare, as a company that
supports child-rearing as part of their high-level efforts with systems
to support work-life balance introduced and used by its employees.
In addition to achieving our action plan (fiscal 2018 to 2020), ourefforts made for the actual proportion of male workers who tookchildcare leave, the increase in the number of paid holidays taken,
and other achievements were highly evaluated.

2018

2019

2020

2021

2022

(FY)

Basic Policy
1. We return to the origin that safety should be put before
everything else, and everyone from top management toeach employee acts with the top priority on safety.
2. We aim to establish workplace groups of people who
individually understand and comply with the determined
rules and always follow the basics in their operations.
3. We help each employee to grow, and work to create acomfortable work environment as well as a corporate
culture that focuses on safety and health with theparticipation of all employees.

2018

2019

2020

2021

2022

Kurimoto(excluding affiliates)

0.84

0.64

0.86

1.94

0.89

Kurimoto Group

0.67

1.03

1.05

1.58

0.91

Average for thewhole manufacturingindustry in Japan

1.20

1.20

1.21

1.31

Frequency rate is the number of injury accidents per million work hours, and indicatesthe frequency of accidents that cause a worker to miss one or more days of work.
Frequency rate =（number of injury accidents / total working hours）
× 1,000,000

Use of childcare-related programs (FY2022)
Proportion of female workers
who took childcare leave
Proportion of male workers who
took childcare leave
Number of workers who reduced
working hours for childcare
Number of days off taken for
nursing care

100.0%
75.0%
4 persons
24 days
KURIMOTO REPORT 2023

44

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

SocialInitiatives

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceSocialSafety and health initiatives
Certified as Health & Productivity Management Outstanding
Organization 2023 (large enterprise category)Health and productivity management refers to considering thehealth management of employees and other people from theperspective of business management. Based on the idea that thecommitment of a company to the maintenance and improvementof the health of its employees based on its management philosophy,
etc. will lead to vibrant production activities of the employees andactivation of the organization and eventually improve the businessresults and corporate value, the Ministry of Economy, Trade andIndustry certifies and rewards the organizations that actively
promote health and productivity management. Kurimoto wascertified for the first time in fiscal 2021 and again in fiscal 2023. We
believe that it was because we worked for the maintenance of thephysical and mental health ofeach employee and developedand established a comfortableworking environment as well as
many personnel and welfare
programs. We will continue torecognize the maintenance of thehealth of employees and theimprovement of the working
environment as priority issues andpromote health and productivity
management from the viewpointof employees.

Commitment to mental health support
Kurimoto considers mental health care an important issue and has
made efforts to encourage employees to be aware of stress levels
since even before it was made mandatory to introduce a stresscheck system in 2015.
We have conducted stress checks every October, and the highlevel of interest in this is reflected in a staggering upper 90% rangeof employees undergoing the checks across the company every
year. In this year’s stress check, we changed it from a paper test to
an online test, increased the number of questions, adding indicators
to measure the strengths and weaknesses of the workplace itself.
We will continue to proceed with mental health measures by making
effective use of analysis results that incorporate new perspectives
to improve the workplace environment.

45

Our Commitments

KURIMOTO REPORT 2023

Efforts against smoking and passive smoking
In accordance with the revised Health Promotion Act that cameinto force on April 1, 2020, at Kurimoto smoking is prohibitedindoors except in limited smoking areas established at all worksites
as an initiative to prevent passive smoking.
In addition, we have set a smoking rate target of less than 25%
in the ongoing “Health and Productivity Management Roadmap”
and a major issue for the future is to encourage all employees toreduce or quit smoking.
In November 2022, the Head Office held a health lecture by its
industrial physician on the theme of “Recommendation to quit
smoking - Let’s learn about chronic obstructive pulmonary disease(COPD).” Many of us have come to think of lung cancer as asmoking-related disease, but COPD is a lifestyle-related diseaseassociated with long-term smoking habits that smokers may
already have without realizing it. It was a meaningful lecture as
some of the participants who smoke regularly said afterwards thatthey wanted to quit smoking.
We will continue to keep everyone informed about the healthhazards of smoking and promote initiatives to reduce the smoking
rate, which is an important risk factor for lifestyle-related diseases.

Quality Control

Securing “safety and security in manufacturing” through quality management
As a company that can contribute to society through manufacturing, our Group makes continuous efforts to improve our quality managementlevel in our business activities to provide various lines of products and services for creating infrastructure.

Declaration of Quality Assurance Activities

Kurimoto Group Quality Policy

In accordance with a principle in the Kurimoto Group’s
Corporate Philosophy, “We offer ‘reassurance’ inresponse to the society and our customer’s trust,” weaim for quality assurance from the perspective ofcustomers and perform activities based on the quality
assurance system established to meet the needs of thetimes as well as social demand.

1. We provide products from the perspective of customers.
2. We provide customers with accurate and comprehensible information.
3. We listen sincerely to the precious opinions of customers.
4. We give top priority to safety.
5. We comply with laws.
6. Each and every employee of the Kurimoto Group makes best efforts to ensure
quality.

Promoting continuous improvement activities using our quality management system• We work to improve mechanisms for quality control based on the quality management system to ensure that customers recognize safety
and security in the Kurimoto brand.
• We work to obtain ISO 9001 certification on a group-wide scale for reliable operation and maintenance of the quality management system.

ISO 9001 Certification Registrations in the Kurimoto Group
Registered organization(as of April 1, 2023)

Date of registration

Registration No.

January 20, 1995

JQA-0766

Ductile iron pipes

May 17, 1996

JQA-1281

Pulverization, kneading, drying and crushing systems, forging
and bending roll systems, valves for industrial and public uses,
various heat-resistant/wear-resistant metal castings, products
related to brakes for railway vehicles

March 13, 2015

JQA-QMA15184

Design, procurement, construction, commissioning, maintenance,and supply of parts for resource plants, power plants, energy
plants and other similar plants

September 30, 1996

Q4193

Products related to ducts for equipment, building material
products for construction and civil engineering, noise reduction
equipment

Kurimoto, Ltd.
Plastic Products Division

May 28, 1999

JQA-QM3393

Fiber-reinforced plastic mortar pipes, various fiber-reinforced
plastic moldings

Japan Castering Co., Ltd.
Kawara Factory

March 23, 2018

JQA-QMA15776

Heat-resistant and wear-resistant casting for industrial devices

Motoyama Eng. Works, Ltd.

May 15, 1994

UKAS
No.3449752

Control valves, safety valves, industrial equipment

KS-Tech Co., Ltd.

July 30, 2010

UKAS
No.06546

Roll forging machines, cutting machines, forging machines,
bending rolls

Yashima Chemical Engineering
Co., Ltd.

December 19, 2016

ISAQ1119

Tanks, heat exchangers

Kurimoto Polymers Co., Ltd.

December 24, 2003

JCQA-1355

Molded plastic products(pipe materials and construction materials)

Zentec Co., Ltd.

November 10, 2000

JQA-QM5518

Road management (maintenance and repair) and construction ofroad environment equipment (e.g. sound insulation walls)

Kurimoto, Ltd.
Pipe Systems Division

Main product lines, etc.

(Production and Technology Departments)

Kurimoto, Ltd. Sumiyoshi Factory• Plant Engineering & Machinery Division• Valve Systems Division• Materials & Machinery Division

Kurimoto, Ltd.
Plant Engineering & Machinery Division(plant-related)

Kurimoto, Ltd.
Construction Materials Division

KURIMOTO REPORT 2023

46

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

SocialInitiatives

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Corporate Governance

Performance ofthe Kurimoto Group

SocialRevitalizing quality improvement activities
with the participation of all employees
Quality assurance system
To respond to quality requirements based on existing and potential
customer needs, the Kurimoto Group endeavors to enhancecustomer satisfaction by sincerely listening to valuable input from
customers.
• At the Quality Conference, individual divisions are monitored frommanagerial perspectives, with respect to quality assurance that
responds to trust from society and customers, and instructions
for correction are rendered as necessary.
• The Safety & Quality Control Department checks and improves
quality assurance systems in individual divisions, collecting
quality-related information and providing internal training basedon the collected information.

Raising the quality level of employees during Quality
Improvement Emphasis Month
The Kurimoto Group has designated November as Quality
Improvement Emphasis Month to promote various quality
improvement activities with participation of all employees.
•Top management sends a “quality-related message” to all
employees.
•
Quality slogans for the Kurimoto Group are requested andposters are displayed to raise the awareness of participation.
• Daily operations are reviewed to intensively verify that customers
receive accurate information on the products and services weprovide for them.
•All employees participate in efforts to enhance and promote
proposals for improvement.

Building Relationships with Suppliers, Shareholders, and Investors

With suppliers
Basic approach
The Kurimoto Group’s business activities rely on the cooperationand support of many companies and people including the suppliers
that provide raw materials and parts necessary for production.
In procurement, the Kurimoto Group respects internationallyCorporate Standards of Conduct [Procurement]
1. P olicy of “customer satisfaction comes first,” andprocurement in consideration of environmental conservation
In our procurement activities, we are always conscious of the principle in the
Corporate Philosophy that we offer “total quality services” (combination of highvalue, high quality and high level services) to enhance trust, as well as the ideathat environmental conservation is a social mission for companies.

〈 Business review system that meets the needs ofthe times and society 〉

2. Fair, equitable and transparent procurement activities
We promote fair, equitable and transparent procurement activities in a rationalmanner in terms of quality, price, delivery period, safety and environmental
conservation.

As a company that meets the needs of the times and society

proclaimed principles of human rights. In full awareness of quality
and cost reduction, we also consider environmental issues such as
prevention of pollution, resource saving, and energy saving in our
procurement activities.

3. Mutual prosperity based on trust and improvement efforts
In our procurement activities, we aim to realize mutual prosperity by placing highvalue on relationships of trust with suppliers and seeking long-term growth andmaintenance and strengthening of competitiveness through high quality, thoroughcost reduction and other efforts.

4. Compliance with laws
We promote procurement activities in compliance with all relevant laws, including
the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade(Antimonopoly Act) and the Act against Delay in Payment of Subcontract
Proceeds, etc. to Subcontractors (Subcontractor Payment Act), as well as with
their intent.

Compliance & Risk Management Committee Quality Conference

Basic Procurement Policy

Kurimoto Group(Business activities)

Customers

Sharing of customer
information

Declaration of Quality
Assurance Activities
Corporate Philosophy

Divisions /Group companies

Quality assurance departments

Society’s appraisal

Employee awarenessAcquisition ofISO
certification

Safety & Quality Control Department
Quality Assurance and QMS Conference (mutual verification)

Socialresponsibility• Check and improve quality
assurance systems

Corporate
value• Enlightenment of awarenessand internal training for all
employees

Slogan(displayed from November 2022 to October
2023)

Activities to make improvement proposals are carried out with theparticipation of employees at our factories, Head Office, andbranch offices. Many proposals for improvement are submitted
every year, leading to improvement in the workplace and higher
productivity.
Number of employees

Annual number of proposals

1,534

14,149DivisionsCustomersatisfaction

Customers

Products/
Services

Group companies• Quality assurance
departments

We open the door wide for suppliers in Japan and overseas and work to seek new suppliers on a continuous basis.

Green procurement

We make efforts to procure environmentally-friendly parts and products.

Compliance with the Subcontractor Payment Act
To ensure dissemination of, and compliance with, Act against
Delay in Payment of Subcontract Proceeds, etc. to Subcontractors(Subcontractor Payment Act), the Kurimoto Group has prepared acompliance manual on transactions with subcontractors. A briefing
session to study the Subcontractor Payment Act is held at each
worksite during the Compliance Emphasis Week, and seminars byexternal lecturers are also organized, to enhance understanding of
the manual.

Kurimoto believes that timely and appropriate disclosure of
information to shareholders and investors leads to long-term andstable trust and support. We deliver information on businessactivities and make efforts to maintain good relationships in orderto promote the growth of the company and to contribute to society.

Provide information• Quality improvement
activities

We make decisions on adoption of materials based on fair and equitable assessment of quality, delivery time, prices and services.

Open door

Transparent business management

Collect information• Quality assurance
departments

Fairness and equity

With shareholders and investors

President
Instructions

To purchase materials that satisfy our demand in terms of quality, cost and delivery time, we make efforts to build good
relationships with suppliers and to pursue mutual prosperity through mutual trust and cooperation.

Activities to make proposals for improvement

Society

Safety & Quality Control Department

Poster(displayed in November 2022)

Total

Quality Conference• Examine and monitor quality
issuesPhilosophy• Quality improvement
activities

Communication with shareholders and investors
Poster (displayed in November 2022)

We visit institutional investors and security analysts and holdfinancial results briefings in an effort to transmit information on ourbusiness activities. IR materials such as earnings briefings,

securities reports, and annual reports are available on our website
to ensure that information is provided in a timely and appropriatemanner. We also believe that general meetings of shareholders are
significant opportunities for our executives to communicate withshareholders. In the annual meetings, the President himself
explains our management policy and corporate activities toshareholders in an easy-to-understand way.

Response to anti-social forces
Anti-social forces pose a threat to the order and safety of civilsociety and obstruct economic activities, and the activities of theseforces are becoming increasingly intellectual and sophisticated.
The Kurimoto Group declares in the Corporate Standards ofConduct that it is aware of social responsibility in responding toanti-social forces and will take the initiative to strictly for bid
submission to, or collusion with, such forces and maintain aresolute attitude to eliminate them. We will cooperate closely with
relevant administrative bodies to develop an organization to
respond to anti-social forces. In addition, we will consider this issue
not as a passive risk, but as a serious issue concerning compliance,and establish procedures to solve issues on an organizational
scale. We will also develop systems for responding to anti-social
forces and ensure related contractual provisions so that persons incharge can respond with confidence.

* Quality Conference is mainly comprised of directors and executive officers.

47

KURIMOTO REPORT 2023

KURIMOTO REPORT 2023

48

The Kurimoto Group:
Corporate History andBusinesses

Sustainability

SocialInitiatives

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate GovernanceSocialWith Local Communities

Engagement with society
Participated in various trade shows at home and abroad

Co-existence with local communities
Cleanup campaigns
As part of its CSR activities, the Kurimoto Group conducts cleanup
campaigns to promote communication with neighboring
companies and residents. Through continuous participation, we
will contribute to activities to protect river environments to the bestof our ability.

Business divisions and the Technology Development Division of
Kurimoto and our Group companies participated in various tradeshows held in Japan and overseas. Many visitors were able to see
new technology and new products from the Kurimoto Group in theshows.

Corporate
Governance

GovernanceMay 25–27, 2022 “The 31st New Environmental Exposition 2022”(Tokyo Big Sight)

We Are Enhancing Our System to Promote
Corporate Governance.

Participated in the “Yamato River Cleanup Campaign”(Head Office; Kagaya, Sumiyoshi, and Sakai Factories; Kurimoto Trading, Co., Ltd.;
Yamatogawa Co., Ltd.)

July 12–14, 2022 “Hydro Vision 2022”(Colorado, USA)

Based on our corporate and management philosophy, Kurimoto aims to maximize shareholder value, customer value, employee value, andcorporate value.
To turn these ideals into reality, management must be efficient, transparent, and legitimate, and we regard the enhancement of corporate
governance and compliance as our top priority.

Basic Corporate Governance Policy
We are enhancing our system to promote corporate governance mainly through the establishment of the Nomination and Remuneration Committee, which aims to enhance theindependence and objectivity of the functions of the Board of Directors, as well as its accountability; the establishment of the Management Conference, which complements theBoard of Directors; the partial delegation of authority to execute business to executive officers; and the activities at the Audit & Supervisory Board.

Participated in the cleanup event “Hirose River 10,000 People Project” (Tohoku Office)

Governance system and promotion framework
August 2–5, 2022 “Sewage Works Exhibition 2022” (Tokyo Big Sight)

Participated in “Clean Ota River” (Chugoku Office)Supporting children in developing countries
Participation in the Eco-Cap Campaign

December 7–9, 2022 “POWTEX TOKYO 2022”(Tokyo Big Sight)

As part of our environmental activities, we recycle plastic bottle caps.
The caps collected from used plastic bottles are sent to the Ecocap
Movement and other organizations forrecycling. This program helps raise
funds to deliver vaccines to children indeveloping countries and for reducing
CO2 emissions.

February 10–11, 2023 “JAEPO 2023”
Makuhari Messe International Exhibition Hall

49

KURIMOTO REPORT 2023

Under Kurimoto’s governance system, the President and directors
in charge have authority and responsibility for execution of duties
with the Board of Directors, which is composed of directors
including outside directors elected at the general meeting ofshareholders, as the supreme decision-making and supervisory
body. Additionally, we have introduced an executive officer system,
under which part of the directors’ business execution functions aredelegated to executive officers, thereby relatively strengthening thesupervisory function of the directors.
Directors regularly report on the execution of their duties at theBoard of Directors meetings and supervise the execution of duties
by other directors from the perspective of total optimization.
The Audit & Supervisory Board members, including outside
Audit & Supervisory Board members elected at the general meetingof shareholders, collaborate and share information with theaccounting auditor through the Audit & Supervisory Board as
appropriate, and audit the legality and appropriateness of thedirectors’ execution of duties from an independent and objective
standpoint.

1) Directors and the Board of Directors
The President appoints candidates for director. The Nomination
and Remuneration Committee chaired by an outside director is
asked for opinions and advice on these candidates, and the Boardof Directors finally determines candidates for director through a
resolution. In addition to the criteria for selecting candidates for
director, candidates for outside director are appointed using thefollowing criteria for independence: Neither the candidate nor any
relative within the second degree of kinship falls under any of thefollowing items at present or within the past three years.
① A person who does not conform to the independence standards
for independent directors/auditors established by the Tokyo
Stock Exchange②A n executive executor of the company or its subsidiary③ A major shareholder of the company or an executive executor ofa major shareholder of the company④ An executive executor of a business partner of the company ora person from such a business partner*Those who are not likely to cause conflicts of interest with general shareholders shallbe appointed.

⑤ An executive executor of a financial institution with which thecompany does transactions or a person from such an institution*Those who are not likely to cause conflicts of interest with general shareholders shallbe appointed.

⑥ Consultants, accounting experts, legal experts, and others who
receive remuneration, etc. exceeding 10 million yen from thecompany apart from officers’ remuneration.

KURIMOTO REPORT 2023

50

The Kurimoto Group:
Corporate History andBusinesses

Corporate Governance

Performance ofthe Kurimoto Group

Corporate Governance

Sustainability

Governance
Organizational Chart of the Corporate Governance System
General Meeting of Shareholders
Appointment/
Dismissal

Reporting/
ProposalAudit &
Supervisory Board

Cooperation

Board ofDirectors

Audit

Audit &
Supervisory
Board Members

Internal
control
Audit

Appointment/
Dismissal①②

Cooperation

3) The Nomination and Remuneration Committee
The Nomination and Compensation Committee has been
established with the aim of enhancing the independence,
objectivity, and accountability of the functions of the Board of
Directors in relation to the nomination of directors, compensation
for them, etc. Composed of four directors: outside directors and a
director in charge of human resources, the Committee deliberates
on matters concerning the selection of candidates for directors andexecutive officers, the dismissal of directors and executive officers,
the compensation of directors and executive officers, etc., and thebasic policies necessary for deliberating these matters, andprovides advice and recommendations to the Board of Directors or
the President.

Appointment/
Dismissal

ReportingPresident
Directors

Reporting

Audit & Supervisory
Board Member’s
Office③
Advice/Suggestion

Nomination andRemuneration Committee[Chaired by an outside director][A majority of the members areoutside directors]

Audit/
ReportPresident / Directors in charge
Monitor④

Instruct/Order

ControlManagement Conference(meeting of officers responsible for business execution)

Accounting
audit

Group
companies

Executive Officers
DivisionsBack-Office Departments
Department⑤
Auditing
Department

Supervision

2) The Audit & Supervisory Board and its members
The Audit & Supervisory Board members verify the legality andappropriateness of the Board of Directors and express theiropinions proactively.
To facilitate audits of legality and appropriateness, a full-time
staff member in charge of the Audit & Supervisory Board Member’s
Office is assigned to respond to operational instructions from theBoard members and assist them in their duties. In addition, toensure appropriate information sharing between the Board
members and the accounting auditor, the Finance Department
provides support upon request from the Audit & Supervisory Board
Member’s Office.
For outside directors to fulfill their roles and responsibilities, theAudit & Supervisory Board and its members closely cooperate withoutside directors by exchanging opinions as appropriate.
Candidates for the Audit & Supervisory Board member are
appointed through deliberations by the Board of Directors, taking
into consideration the opinions of outside directors, etc. At least
one candidate for the audit & supervisory board member shall havesufficient knowledge of finance and accounting. Prior to thedeliberation by the Board of Directors, the consent of the Audit &Supervisory Board shall be obtained.
The Audit & Supervisory Board, which is composed of threeauditors and holds a meeting once a month in principle, discusses
or resolves important matters concerning auditing. The Audit &Supervisory Board members attend regular meetings of the Boardof Directors, which are held on a monthly basis, extraordinary
meetings of the Board of Directors held on an ad hoc basis, andother important meetings to check the operation of internal control
and business execution, and state views to the Board of Directors
when necessary to audit business execution by directors.

Department
Internal audit

Support business execution

Department

General managers ofbranch offices

SectionSectionSection• CSR Meeting• Compliance & Risk
Management Committee• Human Resource
Development Committee• Internal Control Promotion
Committee• Export Control Committee• Environmental Promotion
Committee• Kurimoto Company-wide
Safety and Health Committee• Quality Conference• Development Committee,
and others

Support business execution

Factory managers

Business execution

The Board of Directors holds regular meetings once a month andextraordinary meetings on an ad hoc basis with the attendance ofAudit & Supervisory Board members (in fiscal 2022, the Board of
Directors held 17 regular and extraordinary meetings in total). The
Board of Directors makes decisions regarding basic policies andimportant matters concerning the execution of the company’sbusiness operations and supervises the execution of duties bydirectors and internal controls.

Accounting auditors

Corporate
Governance

Mid-Term Business Plan
and Execution Strategy

Our Commitments

Skills matrix of Directors and Audit & Supervisory Board Members
To increase its corporate value over the long term, Kurimoto ensures diversity and balance by identifying the following skills that the Boardof Directors should possess according to its management strategy. In addition, the Board of Directors appoints candidates for directors andthe Audit & Supervisory Board members after deliberation by the Nomination and Remuneration Committee, taking into consideration thecomposition of inside/outside membership (directors and auditors), independence, specific experience, and areas of expertise of the candidates, depending on the business environment.
(as of June 28, 2023)
DutiesCorporate
management

Technology/
Development

Manufacturing
quality

Finance

Human resource
management

CSR
Sustainability

Kazutaka Kikumoto

ー

●

●

●

●

●

●

Yoshiaki Shingu

Finance and group governance(auditing and consolidated affiliates)

●

●

●

Akitoshi Oda

Human resources, general affairs andlegal affairs●

Yasuharu Yoshinaga

Facilities, production, logistics, CSR(safety, quality control and environment)●

Yoshihiro Uraji

Overseas, procurement andcomposite project●

Hitoshi Marutani

Technology development andintellectual property●

Audit &
Supervisory
Board
Members

Directors

Name

51

Keiko Kondoー●Tomohiko Sato

ー

●

●
●
●

The Audit & Supervisory Board consists of three auditors, two of whom are outside auditors. The function of the Board is② strengthened by appointing dedicated staff of the Board who are not subject to the direction and orders of directors and otherofficers.

The Committee is comprised by majority of independent outside directors and chaired by an independent outside director to ensure③ independence.

A “Management Conference” chaired by the President and composed of members of senior management shall be established to④ supplement the functions of the Board of Directors, including the sharing of management information and progress management at
Kurimoto and its Group companies, and to make prompt decisions and execute operations in a flexible and efficient manner.

The Auditing Department shall be established as an internal audit department independent of the business execution divisions to⑤ audit the business processes of each division and evaluate and verify the appropriateness of such processes, etc.

●●

Outside●●●Kiyoshi Sawai

ー

●

ー

●

Maki Arita

ー

●

●

Osamu Honda

ー

●

●

●

Board ofDirectors●

Yukitaka Fujimoto

KURIMOTO REPORT 2023

As the supreme decision-making and supervisory body, the Board of Directors consists of nine directors and three of them, at least① one-third, are independent outside directors.

●

●

●

●

●

●

●

●

●

●

●

Audit &
Supervisory Board
Nomination andRemuneration Committee
Chaired by an outside director

KURIMOTO REPORT 2023

52

The Kurimoto Group:
Corporate History andBusinesses

Corporate GovernanceCorporate
Governance

Mid-Term Business Plan
and Execution Strategy

Sustainability

Corporate Governance

Performance ofthe Kurimoto Group

GovernanceCompliance and Risk Management

Executive remuneration system
Overview of the executive remuneration system
Kurimoto’s executive remuneration policy has been resolved by the
Board of Directors to ① raise awareness of contributing tosustainable improvement in corporate performance and increase
corporate value, ② be closely linked to corporate performance andresults, and the roles and responsibilities of directors, and ③
ensure that the remuneration decision process is objective andhighly transparent.
Directors
Remuneration for directors, excluding outside directors, consists ofa “base compensation portion” which is determined in accordancewith the director’s position (70% of the total), a “stock compensation
portion” (5% of the total), and a “performance-linked compensation
portion” (25% of the total). The performance-linked portion varies

between 0% and 200%, and 50% of the portion exceeding 100%is paid in shares.
Audit & Supervisory Board members
Remuneration for the Audit & Supervisory Board members is only“base compensation.”
Outside directors
Remuneration for outside directors is only “base compensation.”
Matters concerning performance-linked compensation, etc.
The “performance-linked compensation portion” is calculated
based on the “achievement rate of the operating income plan (initialplan),” “year-on-year change of operating income,” “achievement
rate of ROE plan (mid-term business plan),” and “achievement levelof individual missions,” and varies between 0% and 200%.

We have established and are operating the following compliance and risk management system, which is the basis of our CSR management.

Compliance and risk management system
We have established the Compliance & Risk Management
Committee, which is chaired by the President and composed of
directors, executive officers, general managers of branch offices
and factories, as well as labor union representatives and corporate
lawyers. This committee makes decisions on all aspects ofcompliance and risk management, including the policy and themes,
and engages in related activities, such as reporting on individual
issues, collection of relevant information and provision ofAssessment of the Board of Directors’ effectivenessInternal control system

We assess the effectiveness of the Board of Directors to establish a PDCA cycle of actions to be taken by the Board of Directors, based on
the Board’s self-check (self-review) of the mechanisms and procedures to realize the best and most appropriate decision-making andsupervision to enhance corporate value, and whether the actual discussions and decision-making meet such roles and expectations forrecognizing future issues. The following is an overview of the results of the effectiveness assessment conducted in fiscal 2022.

We seek to maintain and update the internal control system byformulating Corporate Standards of Conduct and Basic Policy for
Establishment of the Internal Control System as the basic
guidelines, and by implementing healthy and transparent
management and enhancing internal audits and auditor’s audits inaccordance with the Regulations of the Board of Directors, Rules
for Organization, Basic Rules on Risk Management, Rules on
Compliance and Risk Management, Rules on Information Security
Management and other regulations.

Method of effectiveness assessment
Assessment period: April 1, 2022 to March 31, 2023
Assessors: All directors and all auditors (12 individuals)
Main items of the questionnaire: 20 questions in total
1. Composition of the Board of Directors
2. Role of the Board of Directors
3. Operation of the Board of Directors
4. Compliance with the corporate governance code
5. General comments② Capital cost management
With regard to our long-term direction, such as capital costmanagement, the Board of Directors deepened discussions atcomplementary meetings in addition to the Board meetings andproceeded to look into specific initiatives and measures.
The Board of Directors is acting in accordance with corporate
governance guidelines, appropriately fulfilling its role, and effectivelyfunctioning to contribute to the corporate governance goals ofsustainable growth and medium- to long-term enhancement ofcorporate value.

Results of effectiveness analysis and assessment
The Board of Directors exchanges opinions and discusses
proposed agenda items without regard as to internal and external,
making decisions after receiving confirmation from the Audit &Supervisory Board members and also considering their opinions.
In fiscal 2022, the Board of Directors addressed two main
issues: ESG and SDG management and capital cost management.
①E
 SG and SDG management
The CSR Committee, composed of directors and senior
management, held discussions and formulated a sustainability
policy and human rights policy, reviewing specific initiatives andschedules for issues such as TCFD and CDP requirements and
GHG emissions calculations, and took necessary action.

53

Our Commitments

KURIMOTO REPORT 2023

Future issues and policy on initiatives
The Board of Directors will continue to identify issues througheffectiveness assessment questionnaires and will continue to workon improvements.
•Regarding the succession plan, the Board of Directors will
provide appropriate oversight and support, taking into
consideration the diversity and skills matrix of senior management
members.
• ESG and SDGs will be discussed at the CSR Committee andspecific initiatives will be studied as part of management strategy.
•More discussions will be held on management issues frommedium- to long-term perspectives. With particular emphasis
placed on capital cost management and human capitalmanagement, quantitative targets will be set and KPIs will be
discussed.
Through these measures, we will strive to enhance ourcorporate governance system.

instructions to subcommittees. Its meeting is held once a month inprinciple. Four full-time subcommittees have been formed in thecommittee, and are in charge of planning and management ofspecific activities related to issues such as compliance education
and risk management.
We have designated February 4 and May 23 of each year as
Compliance Days and implement activities to raise awareness ofcompliance across the Kurimoto Group.

In addition, the Internal Control Promotion Committee has been
established as a permanent organization to respond to the internal
control reporting system based on the Financial Instruments andExchange Act, which focuses on ensuring the appropriateness offinancial reporting. This committee is also responsible for leading
the internal control in the Kurimoto Group as a whole, and promotes
improvement of the internal management system to prevent
violation of laws and accounting errors and irregularities in acontinuous manner.

Whistleblowing system
To promote compliance and ensure fair business practices in the
Kurimoto Group, we have established a whistleblowing system.
Through this system, we aim to have the company promptly
recognize any organizational or personal acts of dishonesty,
violation or immorality and acts of harassment and detect andsolve them early to further enhance the self-cleaning actions of theKurimoto Group. We have set up contacts for consultation andreporting on compliance as well as contacts for consultation on
harassment. No one will be treated unfavorably and face any
negative consequences for having had a consultation or made areport under this system.

Kurimoto Group Whistleblowing System
Whistleblower
Employees
Employees ofaffiliates
Dispatched workers
Employees ofpartner companies
Retirees

Dedicated emails,
documents, phone,
Web, interviews
Feedback of the
response(Feedback is provided
to the whistleblower in
his/her real namewhen requested.)

Kurimoto

Consultation and reporting on compliance• Internal contacts• External contacts(third-party organization)
Consultation on harassment• Contacts for consultation on harassment

ReportFeedback on the reportCompliance & Risk
Management
Committee
Departments incharge of humanresources andgeneral affairs
Labor union, etc.

KURIMOTO REPORT 2023

54

The Kurimoto Group:
Corporate History andBusinesses

Corporate GovernanceCorporate
Governance

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

GovernanceManagement Members (as of June 28, 2023)
Directors

Audit & Supervisory Board Members

Kazutaka Kikumoto

Yoshiaki Shingu

President

Director & Senior Managing Executive Officer

Born April 14, 1956
Number of the company’s shares owned:
12,366 shares

Born July 21, 1957
Number of the company’s shares owned:
12,430 shares

Yukitaka Fujimoto

Maki Arita

Osamu Honda

Full-Time Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Born May 15, 1960
Number of the company’s shares owned:
3,271 shares

Born July 10, 1968
Number of the company’s shares owned:
2,840 shares

Born March 4, 1958
Number of the company’s shares owned:
758 sharesWith expertise and experience in finance, accounting, andauditing as a certified public accountant and tax
accountant, she has served as Director of Maki Arita
Certified Public Accountant Office, Outside Director ofJapan PC Service Co., Ltd, and Outside Director of Daiken
Co., Ltd. (to present).

With abundant experience at the Industrial Bank of Japan(currently Mizuho Bank, Ltd.) and Mizuho Securities Co.,
Ltd., he served as outside director (audit and supervisoryboard member) of Riken Corporation (to present).

Moriyoshi Kushida

Shinya Kojima

Yasuji Noguchi

Chairman

Senior Executive Officer

Executive Officer

General Manager, Corporate Strategy Division

In charge of finance, internal control

Liao Jinsun

Masanobu Mino

Yasuo Sano

Executive Officer

Executive Officer

Executive Officer

General Manager, Technology Development Division

General Manager, Plant Engineering & Machinery
Division

General Manager, Construction Materials Division

Yasushi Tabuchi

Hiroshi Fujimoto

Soichiro Nakanishi

Executive Officer

Executive Officer

Executive Officer

General Manager, Valve Systems Division

General Manager, Materials & Machinery Division

General Manager, Pipe Systems Division

Takanori Kuzuoka

Ken Kurimoto

Shin Matsumura

Executive Officer

Executive Officer

Executive Officer

President
Kurimoto Trading Co., Ltd.

Assistant General Manager, Pipe Systems Division andGeneral Manager, Business Development Management
Headquarters

General Manager, Plastic Products Division

In charge of finance and group governance(auditing and consolidated affiliates)

55

Akitoshi Oda

Yasuharu Yoshinaga

Director & Senior Executive Officer

Director & Senior Executive Officer

Born July 24, 1961
Number of the company’s shares owned:
4,754 shares

Born October 25, 1959
Number of the company’s shares owned:
9,976 shares

In charge of human resources, general affairs
and legal affairs

In charge of facilities, production, logistics,
CSR (safety, quality control and environment)

Yoshihiro Uraji

Hitoshi Marutani

Director & Senior Executive Officer

Director & Senior Executive Officer

Born April 10, 1962
Number of the company’s shares owned:
1,276 shares

Born January 19, 1962
Number of the company’s shares owned:
1,619 shares

In charge of overseas, procurement andcomposite project

In charge of technology development andintellectual property

Keiko Kondo

Tomohiko Sato

Kiyoshi Sawai

Outside Director

Outside Director

Outside Director

Born January 5, 1963
Number of the company’s shares owned:
1,217 shares

Born June 22, 1955
Number of the company’s shares owned:
1,138 shares

Born June 6, 1954
Number of the company’s shares owned:
438 shares

Served in various positions such as Chief Organizer Headof Secretariat and visiting professor at a university
research institute, and as manager at the Japan Scienceand Technology Agency.

Held key positions, including director, in a trading
company specializing in living environments, synthetic
resins, chemical products, etc.

Held key positions, including director, in a general
construction company, primarily in the civil engineeringbusiness field.

KURIMOTO REPORT 2023

Executive Officers, etc.

*The numbers of the company’s shares held are as of March 2023.
The numbers also include shares in the Kurimoto Officer Shareholding Association and the Kurimoto Employee Shareholding Association.

KURIMOTO REPORT 2023

56

The Kurimoto Group:
Corporate History andBusinesses

Performance of the Kurimoto Group

Our Commitments

Mid-Term Business Plan
and Execution Strategy

Sustainability

Performance ofthe Kurimoto Group

Corporate Governance

Financial Summary (11-Year Summary)FYE March 31,
2013

FYE March 31,
2014

FYE March 31,
2015

FYE March 31,
2016

FYE March 31,
2017

FYE March 31,
2018

FYE March 31,
2019

FYE March 31,
2020

FYE March 31,
2021

FYE March 31,
2022

FYE March 31,
2023

Net sales

98,175

103,664

98,394

101,964

101,647

107,122

108,786

109,904

116,596

105,954

124,827

Operating income

5,888

5,402

2,925

3,330

3,421

3,409

3,003

4,340

4,673

4,172

6,840

Current earnings

5,525

4,691

2,553

2,889

3,023

3,077

3,200

4,392

4,583

4,179

6,868

Net income attributable to equity holders of the parent

2,898

3,747

1,598

2,194

4,103

2,400

2,075

2,773

3,174

2,917

4,727

Capital investments

2,267

3,880

2,421

2,944

1,944

1,950

2,915

4,960

3,401

2,460

3,444

Depreciation

2,264

2,199

2,355

2,463

2,434

2,468

2,409

2,401

2,520

2,711

2,930

Net cash provided by (used in) operating activities

5,117

7,433

3,438

2,675

6,883

9,522

4,141

5,552

5,907

2,813

5,064

Net cash provided by (used in) investing activities(1,468)2,365(4,701)(767)(2,328)(745)(1,918)(3,951)(4,034)(2,455)(1,741)

Net cash provided by (used in) financing activities(4,260)(4,324)(4,834)(3,610)(3,341)(4,349)(4,211)(2,769)(1,815)482(4,495)

Total assets

129,934

129,021

127,884

124,382

129,212135,122

136,469

134,216

134,477

139,722

145,164

Total liabilities

84,02883,71378,30075,63373,08476,02277,60275,33969,366

72,102

72,200Interest-bearing debt

43,02339,40035,85132,78630,62028,87825,707

24,24623,242

24,692

21,967

Net assets

45,90545,30749,584

48,74956,12859,10058,86758,876

65,111

67,61972,963

Net income per share

21.93

28.35

12.34

16.98

326.05

191.67165.65222.83260.42239.17387.27

Dividend per share (annual)

4.00

4.00

4.00

4.00

32.00

60.00

60.00

60.00

70.00

70.00

90.00

344.83339.83380.30373.434,440.72

4,658.26

4,633.55

4,750.96

5,245.94

5,436.86

5,865.19

Operating income to net sales

6.0

5.2

3.0

3.3

3.4

3.2

2.8

3.9

4.0

3.9

5.5

ROE (Return on equity)

6.6

8.3

3.3

4.5

7.9

4.2

3.6

4.8

5.2

4.5

6.9

ROA (Return on assets)

4.3

3.6

2.0

2.3

2.4

2.3

2.4

3.2

3.4

3.0

4.8

Equity ratio (%)

35.1

34.8

38.4

38.8

43.0

43.2

42.6

43.1

47.6

47.5

49.3

Dividend payout ratio

18.2

14.1

32.4

23.6

15.3

31.3

36.2

26.9

26.9

29.3

23.2

Consolidated fiscal year (millions of yen)

Consolidated fiscal year-end (millions of yen)

Per share data (yen)

Net Assets per share
Financial ratios (%)

A reverse stock split was implemented at a ratio of 1 share for every 10 shares of common stock effective October 1, 2016.

57

KURIMOTO REPORT 2023

KURIMOTO REPORT 2023

58

The Kurimoto Group:
Corporate History andBusinesses

Performance of the Kurimoto Group

Consolidated Balance Sheets

Item

Previous fiscal year

This fiscal year

As of March 31, 2022

As of March 31, 2023

(Assets)
Current assets
Fixed assets
Tangible fixed assets

89,149124,827

Cost of sales

80,61595,477Gross profit

25,33829,34933,295

Operating income

4,172

6,840

Non-operating income

662

754

Non-operating expenses

655

727

4,179

6,868

Extraordinary income

271

96

Extraordinary loss

69

86

4,381

6,879

139,722

1,443
16,958145,164

Current earnings

Income before income taxes
and minority interests

61,84662,311

Income taxes - current

727

2,490

Income taxes - deferred

577

(436)

Total income taxes

1,304

2,054

Net income

3,077

4,824

Net income (loss) attributable
to non-controlling interests

159

97

Net income attributable toequity holders of the parent

2,917

4,727

Fixed liabilities

10,256

9,889

Total liabilities

72,102

72,20063,287

67,109

Capital stock

31,186

31,186

Capital surplus

6,873

6,873

Retained earnings

27,02930,828Treasury stock(1,802)(1,778)

3,054

4,498

Valuation difference on
available-for-sale securities

3,256

4,212

Deferred gains or losses on
hedge

1

0

Foreign currency translation
adjustment

44

198

Remeasurements of defined
benefit plans

(247)

87

Non-controlling interests

1,277

1,355

Total net assets

67,61972,963

Total liabilities and net assets

139,722

145,164

KURIMOTO REPORT 2023

105,954

32,525(Net assets)

59

Net sales

22,509(Liabilities)

Total accumulated othercomprehensive income

From April 1, 2022 toMarch 31, 2023

21,166

16,274

Shareholders’ equity

From April 1, 2021 toMarch 31, 2022

Selling, general andadministrative expenses

Investments and other assets

Current liabilities

Item

This fiscal year

51,6971,773

Corporate Governance

Performance ofthe Kurimoto Group(Million yen)Previous fiscal year

50,573

Intangible fixed assets

Total assets

93,466

Sustainability

Stock Information

Consolidated Statements ofIncome(Million yen)

Mid-Term Business Plan
and Execution Strategy

Our Commitments

Stock Information (as of March 31, 2023)

Breakdown of Shareholding by Investor Type (as of March 31, 2023)

Total number of shares authorized

39,376,600

Total number of shares outstanding

13,098,490

Share unit

100

Number of shareholders

7,788

Individuals and
other
23.9%

Financial
institutions
47.8%

Major Shareholders (Top 10) (as of March 31, 2023)
Number of shares
held (1,000)

Percentage ofshares held (%)

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

1,215

9.9

Taiyo Life Insurance Company

1,209

9.8

Custody Bank of Japan, Ltd. (Trust Account)

951

7.7

Nippon Life Insurance Company

678

5.5

Resona Bank, Ltd.

444

3.6

Mizuho Bank, Ltd.

362

2.9

Custody Bank of Japan, Ltd. as trustee forMizuho Bank Retirement Benefit Trust Accountre-entrusted by Mizuho Trust & Banking Co., Ltd.

320

2.6

Iwatani Corporation

289

2.3

Sumitomo Mitsui Banking Corporation

204

1.6

Okumura Corporation

203

1.6

Name

*1 W e hold treasury stock (846,663 shares), which is not included in the table
above.
*2 T reasury stock is excluded from the calculation of the percentage of sharesheld.
*3 T reasury stock does not include our shares held by Custody Bank of Japan,
Ltd. (Trust E Account) as trust assets for board benefit trust (BBT) (42,822
shares).

Treasury stock
6.5%
Foreigncorporations, etc.
12.0%
Securities firms
2.1%

Other domestic
corporations
7.7%

Breakdown of Shareholding by Number of Shares Held(as of March 31, 2023)
100 units or more
0.9%

500 units or more
0.2%

50 units or more
0.8%

1,000 units or more
0.2%

10 units or more
8.7%

Less than 1 unit
20.5%

5 units or
more
9.4%

1 unit or
more
59.3%

Consolidated Statements ofCash Flows(Million yen)Previous fiscal year

This fiscal year

From April 1, 2021 toMarch 31, 2022

From April 1, 2022 toMarch 31, 2023

Net cash provided by (used in)operating activities

2,813

5,064

Net cash provided by (used in)investing activities(2,455)(1,741)

Net cash provided by (used in)financing activities482(4,495)

Effect of exchange ratechanges on cash and cash
equivalents

99

147

Net increase (decrease) in cash
and cash equivalents

939(1,024)

Cash and cash equivalents at
beginning of year

20,35921,299Cash and cash equivalents at
end of year

21,29920,275Item

KURIMOTO REPORT 2023

60

Performance of the Kurimoto Group

Company Profile
Company Profile (as of March 31, 2023)
Company NameFoundedKurimoto, Ltd.
February 2, 1909

Affiliates in Japan

Affiliates in Other Countries

Kurimoto Trading Co., Ltd.

Riko, Ltd.

Yamatogawa Co., Ltd.

Kuritetsu (Shanghai) Trading Co., Ltd.

Hokkaido Kanzai Co. Ltd.

Incorporated

May 10, 1934

Capital31,186,098,159 yen

Number of
employees

1,327 (non-consolidated)
2,107 (consolidated)

Kurimoto Group

Readco Kurimoto, LLC.

Kurimoto Logistics Corporation
Kurimoto Pipe Engineering Co., Ltd.

Kurimoto USA, Inc.

Motoyama Eng. Works, Ltd.
KS-Tech Co., Ltd.
Yashima Chemical Engineering Co., Ltd.
Japan Castering Co., Ltd.
Nihon Kaiser Co., Ltd.
Zentec Co., Ltd.
Kurimoto Polymers Co., Ltd.
Kurimoto Business Associates Co., Ltd.

Organization
Pipe Systems Division
Valve Systems Division
Plant Engineering & Machinery Division
Materials & Machinery Division
Construction Materials Division
Plastic Products Division
Management
Conference

Board ofDirectors

Compliance & Risk
Management Committee

President

Composite Project Division
Technology
Development
Division

Kurimoto Center for
Innovative Technology
Technology Management &intellectual Property Department

Corporate Planning Division
CSR
Committee
Audit &
Supervisory
Board

Audit & Supervisory
Board Members

VariousCommittees

Corporate Strategy Division

The Kurimoto Group contributes to society and environmental preservation

CSR Promotion Division
Audit &
Supervisory Board
Member’s Office

Human Resources Department

and creates “a future with dreams” through manufacturing.

Human Resource Development
Department
Finance Department
Facilities Planning Department
Overseas Business Department
General Affairs Department
Legal Affairs Department
Safety & Quality Control Department
Information Systems Department
Auditing Department(as of April 1, 2023)

61

KURIMOTO REPORT 2023

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62