Kurita Water Industries Ltd.

Shareholder Relations Meeting forthe fiscal year ending March 31, 2022
(Securities code: 6370)

February - March 2022

Contents
I

Kurita Group Overview

p1-6

II

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

p7-9

III

Corporate Governance Initiatives

p10-24

IV

Initiatives Aimed at the Environment and Society

p25-29

I

Kurita Group Overview

Company Overview & Shareholder Composition
Company Overview

Shareholder Composition (Top 10) (As of September 30, 2021)◼ Name: Kurita Water Industries Ltd.

◼ Representative: Michiya Kadota, President◼ Date of Establishment: July 13, 1949

◼ Location: Nakano Central Park East, 10-1, Nakano 4-chome,
Nakano-ku, Tokyo◼ Fiscal Year-end: March 31◼ Stock Exchange Listing: First Section of the Tokyo Stock Exchange◼ Paid-in Capital: ¥ 13,450,751,434◼ Issued Common Stock: 116,200,694 shares

Rank◼ Number of Shareholders : 20,870 (As of September 30, 2021)

Shareholding Ratio(As of September 30, 2021)

Treasury Stock 3.1%

Individuals 8.4%
Financial Institutions 33.0%

Foreigners 49.5%

Shares(thousand)

Ratio

1

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

13,998,300

12.04%

2

Custody Bank of Japan, Ltd. (Trust Account)

6,069,557

5.22%

3

Nippon Life Insurance Company

5,979,883

5.14%

4

Kurita Water Industries Ltd.

3,576,475

3.07%

5

Custody Bank of Japan, Ltd. (Trust Account7)

2,400,700

2.06%

6

MUFG Bank, Ltd.

2,056,131

1.76%

7

CACEIS BANK LUXEMBOURG BRANCH/
UCITS CLIENTS

1,969,078

1.69%

8

BNP PARIBAS SECURITIES SERVICESLUXEMBOURG/JASDEC/FIM/
LUXEMBOURG FUNDS/UCITS ASSETS

1,861,500

1.60%

9

STATE STREET BANK AND TRUST 505025

1,826,528

1.57%

10

STATE STREET BANK WEST CLIENT-TREATY
505234

1,821,429

1.56%

Securities Firms 2.1%

Other Domestic Firms 3.9%

Shareholder* Custody Bank of Japan, Ltd. (Trust Account) includes 244,657 shares for performance-linked stockcompensation to directors.
1

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

Corporate
Philosophy

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

Basic Policy

Corporate Vision
1. Kurita Group Code of Conduct
2. Corporate Governance
Policies

5. Kurita Group BCM Policy(Business Continuity
Management)

3. Basic Policies for Constructing
an Internal Control System

6. Kurita Group Human Rights
Policy4. CSR Policy

7. Kurita Group Anti-Bribery Policy
8. Kurita Group Antitrust Policy“A Creator of unique value to thesolution of water and environment,”
contributing to the realization of asustainable society.
2Social/Customer Issues and Kurita’s Solutions
Climate Change(extreme weather andnatural disasters)

CO2 (Greenhouse gas)

█ Social andindustrial issues█ Solutions

CO2 emission reduction
Factories in various industries
Water resource depletion
Industrial water
Tap water andsea water
Water
treatment

Groundwater

Production process

Utilities

Yield increase

Labor andpersonnel saving

Tight capacity oflandfill sites

Energy saving

Facility preservation andextension of useful life

Waste reduction

Business continuity

WatersavingWastewater
treatment

Wastewater reclamation
Soil and groundwaterpollution

Groundwater depletion,
ground subsidenceRivers, lakes
and sea areas

Water pollution
Water purification

Soil and groundwater
remediation

3

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

Net sales(billion yen)

3,000
300.0
1975

1949

1965

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

Expanded into process
treatment chemicals

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

2020
Merged four U.S. subsidiaries, including
acquired companies
A tool cleaning company in the U.S.
becomes a subsidiary

2002

2015

Launched ultrapure watersupply business

Acquired a water treatment
chemicals business in Europe

2,000
200.0
1951
Entered the Water Treatment
Facilities business

1973

1991

Entered the electronics
industry

Launched soil
remediation services

2017/2019
Acquired water treatmentrelated companies in the
United States

100.0
1,000
1958

2021
A water treatment chemicals company in
the Middle East becomes a subsidiary
Acquired a water treatment chemicals
company in Canada

Expanded into
maintenance services

0
1949Founded (Kobe)

1947
Economic andindustrial history
Business
perspective

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

1955

1974
Head office built in Shinjuku, Tokyo

1973

2012
Relocated head office to
Nakano, Tokyo

1991

2000

Post-War
Recovery PeriodHigh Economic Growth Period

Stable Growth Period

Information Society
Development Period

Period of AI and IoT Advancement

Industrial water
treatment

Response to environmental
regulations

Contribution to improvement of productivity

Energy saving, waste saving
Response to newenvironmental regulations

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

4

Changes in Net Sales and Margin(billion yen)
3,000
300.0

236.8
178.5

181.2

193.8

214.4
180.1

178.1

257.3

264.8

267.7

(%)
30.0

214.2

189.4

1,500
150.0

15.0

14.8

15.0

15.2

11.7
8.4

10.3

9.3

9.5

9.1

10.0

10.1

11.0

0

0
3/20103/20113/2012█ Net sales

3/20133/20143/20153/2016⚫ Operating income margin (up to and including
the fiscal year ended March 31, 2018)

3/20173/20183/20193/20203/2021(IFRS)(IFRS)(IFRS)⚫ Business profit margin (from fiscal
year ended March 31, 2019)

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

5Capital Policy(Changes in Dividends and Dividend Payout Ratio)
The dividend payout ratio target is 30% to 50% over five years(yen)

Dividends
forecast to
rise for 18th
consecutive
year

120

100

80

60

(%)

25.1

26.9 25.4

56.1

60.0

52.4

45.4

50.3
45.0

44.3
39.9

38.1 38.8

30.0

22.5

40

20

18
0

22

28

40.0

32.6

30.6
28.4
26.8 26.8

32

34

36

38

40

50.0

42

44

46

48

50

52

54

62

66

72

20.0

10.0

3/2005 3/2006 3/2007 3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 3/2019 3/2020 3/2021 3/2022

0Forecast█ Dividend per share⚫ Dividend payout ratio
6II Medium-Term Management Plan MVP-22(Maximize Value Proposition 2022)

Basic Policy and Priority Measures/Management Targets and Required Measures
Basic Policy

Management Targets

Priority Measures

Measures

Maximize customer intimacy by dismantlingpreconceived ideas and dramatically raising thequality and speed of our work.

Net sales organic
growth rate

Business profit
margin3% or more

15%(1) Expansion of the service contract business model for sharing createdvalue with customers(2) Creation of comprehensive contracts for maintenance and operations
management originating from major EPC projects(3) Restructuring and downsizing of low-margin businesses and assets⚫ Development of CSV Business⚫ Rebuilding of manufacturing system for water
treatment facilities

Return on equity (ROE)⚫ Strengthening the foundation and promotion ofresearch and development

10 % or more

⚫ Enhancement of total solutions⚫ Creation of new business and the promotion of
innovation⚫ Establishment of the Group governance system

Adoption of business segment management
using return on invested capital (ROIC)
7

Measures Aimed at Improving Profitability
Business Profit Margin 11% (FY3/21) → 15% (FY3/23)
Shift to a highly profitablebusiness model⚫ Development and deployment of solution
model⚫ Expansion of service contract-type business

Increased profitability ofoverseas businessTransformation ofbusiness model⚫ Streamlining of low-margin products

Business
profitmargin11%⚫ Reduction of fixed expenses⚫ Improvement of productstrength

Business
profitmargin15%

Rebuilding production
process
Improvement of costs andexpense efficiency⚫ Net sales growth⚫ Systeminvestment

3/2021 Results⚫ Expansion of highly profitablebusiness⚫ Improvement ofoperational efficiency⚫ Work style reform⚫ Reorganization of production sites⚫ Automation of design
Change of business ⚫ Increased efficiency of global
procurement
processes⚫ Global sharing of production
information
3/2023 Target
8

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

Robust financial platform⚫ Sale of shares of other ⚫ Funding throughlisted companies
debt

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

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

Continued increase of dividends

Share buybacks
9

III Corporate Governance Initiatives

Basic Concept and Basic Policies
Basic Concept

Basic Policies (5 Items)

Corporate Philosophy
Study the properties of water, master them,and we will create an environment in which
nature and man are in harmony(1) Ensuring the rights and equality of shareholders(2) Appropriate level of cooperation with stakeholders other thanshareholders(3) Ensuring appropriate information disclosure and transparency of
information(4) Duties of the Board of Directors and the Audit & Supervisory
Board, etc.
(5) Dialogue with shareholders and investors

Establishment of Corporate GovernancePurpose⚫ Transparent, fair, prompt, and decisive decisionmaking

Policies (16→21 Items)
Policies were revised in FY2021 in conjunction
with revision of corporate governance code

Sustainable Growth and Medium- and Long-Term
Enhancement of Corporate Value
Respect for the rights and position of stakeholders andmeeting their expectations
Customers

Business
Partners

Employees

Shareholders/ Investors

Local
Communities

Main points⚫ Highly effective management supervision• Resolution of sustainability issues and disclosure of
initiatives (including TCFD)• Ensuring diversity of core human resources• Review of skill matrix• Review of percentage of external directors• Organization of views concerning the roles, authority andcomposition of the Nomination & Remuneration Advisory
Council and the Successor Planning Committee• Formulation of plan for business portfolio management
10Corporate Governance Structure
Voluntarily establish a Nomination & Remuneration Advisory
Council and a Successor Planning Committee
Company with an Audit & Supervisory Board

General Meeting of Shareholders
Election & Dismissal

Nomination &Remuneration
Advisory Council
Successor Planning
Committee

Election & Dismissal

Consultation

Board of Directors
Advisory
ReportDiscussion& Report

Resolution
Election &Supervision

Audit

Audit & Supervisory
Board
Members of the Audit &Supervisory Board

Cooperation

Election & Dismissal

Accounting Auditor

Audit

Audit report

Cooperation

Cooperation

Report[Business Execution]
ReportPresident

Audit report

Internal Auditing
Department

Executive Committee
E&S
Committee,
VariousCommittees

Investment
Committee

Discussion& Report

Instruction

Operating Divisions

Internal audit
Accounting Audit & Internal Control Audit

11

Size and Composition of the Board of Directors
The Board of Directors as a whole complements the necessary knowledge,
experience and diversity for management decision-making◼ Members: 8 (including 3 independent external directors)
Corporate governance and management
Corporate
management
Corporateplanning

Finance andAccounting

Michiya Kadota●●

Hirohiko Ejiri●

Yoshio Yamada〇

Yasuo Suzuki〇

Shuji Shirode

〇

Name

Ryoko Sugiyama(external director)
Keiko Tanaka(external director)
Kenichiro Kamai(external director)

Leveraging diversity ▶ Making full use of water knowledge ▶ Creating social value

Legal andHR
Human rights
management〇◼ Term: 1 year

Global

〇

〇

●

〇

●
●

Understanding
and Solving
issues on site

R&D,
Technology
andEngineering

DX

〇
●

●

●

●

●

〇

●

●

〇

●

●
〇

Environment

●
●

〇

●
●

〇

Note 1: Among the knowledge and experience of each director, those with ● are fields where they have strength while ● indicates an area where they are especially promising.
Note 2: This chart is based on information contained in Proposal 2 of the Notice of Convocation of the 85th Ordinary General Meeting of Shareholders.

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

12Changes in Composition of the Board of Directors
38% external directors, two female directors█ External directors█ Internal directors⚫ Percentage of external directors█ Female directors(Number)
20

27%
11%
10

9

8

0

18%

18%

11

11

20%

10%
10

9

1

1

3/20143/2015

9

9

33%

9
10

1

2

2

3/20163/20173/2018

40

11

10

2

(%)

17%
12

8

38%

2

8

1

3/20193

62

3/2020

3

0

8
5
2

3/20212
3
3/202213

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

Results

Main matters discussed

Remuneration

Nomination• Three external directors
Candidates for Director,
Representative Director,
Executive Director• One full-time external
member of the Audit &Supervisory Board

Candidates for member ofthe Audit & Supervisory
Board• One full-time external
member of the Audit &Supervisory Board• One full-time member ofthe Audit & Supervisory
Board• President• Executive GM, Corporate
Control and Administration
Division• Evaluated all candidates for director• Consideration of skill matrix• President• Three external directors• One full-time external
member of the Audit &Supervisory Board• President

Meetings held
Cases reviewed

4 times
6(April - December 2021)-

Meetings held
Cases reviewed(April - December 2021)

5 times8• Performance evaluation of directors
and executive officers• Discussed appropriateness of incentive
remuneration• Discussed appropriateness of fixed
remuneration• Consideration of adoption of nonfinancial indicators as performance
evaluation criteria
14

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

Recommendation

Selection

Development of successor candidates
Confirmation

Interview
Assessment

Review/
Interview

Setting
initiatives

Confirmation

Successor
Planning
Committee

Board ofDirectors

Identify areas for
improvement

Candidates for President
President
Externalorganization

Directors

President
Successor
Planning
Committee

Board ofDirectors

Externalorganization

Executive senior
managing director
or above

President

Executive senior
managing director
or above

Candidates for director

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

Members• Selection of president’s successor candidate

Three external directors
One full-time external member of the
Audit & Supervisory Board• Selection of directors’ successor candidates• Selection of executive officers’ successor
candidates• Setting of development measures for
successor candidates• Confirmation of distribution of knowledge andexperience making up the Board of Directors

In addition to the above four, thepresident and executive senior
managing directors

Number of Meetings and Chair

Meetings held:3 times(April-December 2021)
Chaired by an external director

15

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

Members

Members

Deputy GM of Corporate Planning and Management Office, Corporate
Planning Department GM, Accounting Department GM, Finance Department
GM, GMs of business management departments and operation departmentsin charge of sales and production

Meetings held

10 meetings

Cases reviewed

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

Results(April-December 2021)

Executive GM, Corporate Control and Administration Division

1
5
2
1
1

Total of 10 projects

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

Once a year

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

Evaluation
Items(1) Board of Directors roles and responsibilities(2) Collaboration with external directors andmembers of the Audit & Supervisory Board(3) Board of Directors composition(4) Board of Directors operation(5) Contributions of individual directors andmembers of the Audit & Supervisory Board(6) Dialogue with shareholders
Note: The evaluation of the Board of Directors for the period from January to December
2021 is currently underway.

Evaluation Results(Period Covered: January - December 2020)⚫ Average self-evaluation results were generally good in all 6 items.
⚫ The evaluation of evaluation item (4) was the highest, and theevaluations of internal directors, external directors and members of the
Audit & Supervisory Board all increased.
⚫ Of evaluation item (1) the evaluation of creation and oversight of DX
promotion system, which was newly established for evaluation this fiscal
year, was low.

Issue
⚫ It is necessary to strengthen involvement of the Board of
Directors to accelerate business model transformation andbusiness process reform utilizing DX.

Measures⚫ Ensure the Board of Directors understands the content of the activities of the DX
Committee overseeing DX of the Group as a whole and the Digital Strategy
Division that is at the core of companywide measures decided upon.
⚫ Discuss and establish the direction of the prioritization of matters to address inthe short term and medium to long term, and allocation of management
resources.
17

Main Governance Initiatives for the Fiscal Year Ending March 2022 (1)Initiatives for FY ending 03/2022

Composition of the Board of
Directors• External directors: 3 → 3• Internal directors: 6 → 5
Total:

Expected Benefits

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

9→8

Sales in FY ending 03/2022: 4*/24 stocks*Of which 2 were partial sales

Reduction of shareholding ofother listed companies(Reference)

FY ended 03/2020 2*/28 stocks

FY ended 03/2021 4/26 stocks

Investment in growth businesses of funds acquired
from disposals*Of which 2 were partial sales

Provision of information andtraining to directors andmembers of the Audit &Supervisory Board

Seminars held

Total of 5 times(April - December 2021)

Strengthening of Group
governance• Evaluating the effectiveness of boards of directors
at Group companies in Japan• Establishment of system aimed at the realization of
the value creation story• Invited outside instructors to conduct seminars on
DX, the utilization of ICT and IOT in business, andthe Corporate Governance Code• Conducted seminar with inside instructors on
topics such as examples of DX in the area of R&D
Strengthening mechanisms to ensure that Group
governance is being practiced appropriately
18

Main Governance Initiatives for the Fiscal Year Ending March 2022 (2):Initiatives for Core Human Resources
Approach to human resources diversity (from the Company’s Corporate Governance Policies)
The Kurita Group aims to provide value to customers and society through innovative achievements made by its human resources with diverse backgrounds -including gender, nationality, age, presence or absence of disabilities, how they joined the company, work style (employment status and working arrangements),
and experience -- by taking advantage of each other's experience, knowledge, skills, and other qualities, toward realizing the Corporate Philosophy. The Kurita
Group is also proactive in ensuring the diversity of its management and employees in management positions (and their equivalents) as its core human resources.

1. Promotion of women to
management positions, etc.

Ratio of women in
management positions
Kurita(New graduates

Ratio of women recruits)among recruits
for career track (New graduate
and mid-career
positions
recruits)

Ratio of women in
management positions<Reference>
Kurita Group Ratio of women to all
employees

3/2019Results

3/2020Results

3/2021Results

9/2021Results

3/2023
Targets

3/2028Targets

1.1%

2.1%

2.4%

2.7%

5.0% or more

Around 10.0%

21.0%

19.0%

33.0%

-

30.0%

-

15.0%

20.0%

33.0%

-

-

Around 30.0% to
40.0%

9.0%

10.0%

12.0%

24.0%

24.0%

25.0%

⚫ There were 9 women in management positions as of
September 2021 (2.7% of management positions)⚫ Through initiatives to encourage the promotion of women to core roles, the Company has been
selected as a constituent of the MSCI Japan Empowering Women Index (WIN) since FY2017⚫ There were 19 in positions equivalent to management positions(including management positions) in the specialist system⚫ We are also focusing on improving education and training and systems supporting the balance ofwork and childcare (obtained Kurumin and Eruboshi certification marks)
19

Main Governance Initiatives for the Fiscal Year Ending March 2022 (2):Initiatives for Core Human Resources
2. Promotion of non-Japanese employees tomanagement positions, etc. (Kurita)⚫ The Kurita Group(1) will conduct operations with Kurita’s headquarters functions
working in coordination with overseas Group companies;and(2) will aim to have a system for incorporating ideas fromvarious countries and regions, and operating the Group
globally by promoting local employees to executive positions
in overseas Group companies.
⚫ Active recruitment and promotion in step with the globalizationof business3. Promotion of mid-career recruits tomanagement positions, etc. (Kurita)⚫ Flexible and active recruitment and promotion in step withthe expansion of business⚫ Hiring around 10-20 people every year (equivalent to 1030% of annual recruitment)⚫ As of September 2021, 85 of those who joined theCompany as mid-career recruits have been promoted topositions equivalent to management positions (constituting
13% of all employees in such positions).

⚫ As of September 2021, two of the 18 non-Japanese employees
worked in positions equivalent to management positions⚫ Local employees account for 71% of the representatives andpersonnel working directly under the representatives ofoverseas Group companies.

20

Independent External Directors
Reflecting external perspectives and specialist knowledge in management◼ Term: 1 year

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

Ryoko Sugiyama

Keiko Tanaka

Kenichiro Kamai

Appointed as
director of Kurita

June 2017

Appointed as
director of Kurita

June 2019

Appointed as
director of Kurita

June 2021

Significant
positionsconcurrently held

• Head and Representative Director,
Gifu Shimbun Co., Ltd.
• External Director and Audit andSupervisory Committee Member,
LECIP Holdings Corporation• External Director, UACJ Corporation• Director, Gifu Sugiyama Memorial
Foundation, a public interest
incorporated foundation

Significant
positionsconcurrently held

• Vice President, Nissan Financial
Services Co., Ltd.

Significant
positionsconcurrently held

None

Board attendanceReason forelection

9/9 (100%)
Ms. Sugiyama is an expert in theenvironment and wastes, and has held
important positions such as external
director of listed companies.
The Company believes that she iscapable of expressing opinions from an
outside perspective different from theCompany’s and increasing the rationality
and transparency of the Company’s
management.

Note: Board attendance is for April–December 2021.

Board attendanceReason forelection

9/9 (100%)
Ms. Tanaka has been active in businessfields that differ from those of the Kurita
Group and possesses a great deal ofknowledge on public relations andmarketing, as well as having held theposition of Ambassador Extraordinary
and Plenipotentiary of Japan to
Uruguay. The Company believes that
she is capable of expressing opinionsfrom an outside perspective different
from the Company’s and increasing therationality and transparency of theCompany’s management.

Board attendanceReason forelectionNew

6/6 (100%)
Mr. Kenichiro Kamai has a wealth ofexperience, including overseas, inbusiness fields that differ fromthose of the Kurita Group, and he has
also considerable insight in DX anddevelopment. The Company
believes that he is an individual capableof expressing opinions from an outside
perspective different from theCompany’s to increase the rationality
and transparency of the Company’s
management and supervising theexecution of the duties of Directors
based on his experience of management
at multiple companies and expertise in
the fields of DX and development.
21Effective Functioning of Members of the Audit & Supervisory Board
Attendance at Board of Directors meetings and active input
Name

Attendance(April–December 2021)

Experience, Capability, and Knowledge

Board of Directors’
meetings

Kenjiro Kobayashi
External ｍemberof the Audit &Supervisory Board

Independent
Officer

Yukihiko Mutou

Toshiaki Tada
External ｍemberof the Audit &Supervisory Board

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

9

Audit & Supervisory
Board meetings

8

9

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

9

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

9

8
8

9

8
8

9

8

1. Attendance by members of the Audit & Supervisory Board at meetings of the Board of Directors, Executive Committee, and E&S Committee, and other important
meetings, as well as auditing the state of business execution by directors and the oversight duties of the Board of Directors
2. Performs audits of key administrative departments, implements field audits at business sites and Group companies, and conducts survey of the asset position of
the entire Kurita Group and audits of the status of development and operation of the internal control system at Group companies
3. Support for members of the Audit & Supervisory Board and cooperation with Internal Auditing Department• Head of Audit Office assists administratively to ensure members can properly perform audit work
• Members direct audit staff as necessary for support work
22Remuneration System for Directors and Members of
the Audit & Supervisory Board
Review director performance evaluation indicators to aim forachievement of management goals
Fixed (55%)*
Directors(excluding external
directors）

Fixed remuneration

Variable (45%)*
Contribution toshareholding
schemePerformance-linked
remuneration

Evaluation Indicators⚫ CommonRate of achievement of consolidated operating profit target⚫ President, Executive GM of
Corporate Control and
Administration Division

ROE⚫ Executive GM of R&D Division

Ratio of projects completed, R&D investment efficiency (consolidated)
YoY change in consolidated gross profit margin⚫ Executive GM of Engineering
Division

Performance-linked
stock compensation

Evaluation Indicators⚫ Profit attributable toowners of parent⚫ Executive GM of Solution
Business Division

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

Rate of achievement of a division’s consolidated net sales targets andconsolidated business profit margin targets

Timing of Payment⚫ Upon retirement

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

Fixed remuneration

Contribution toshareholding
scheme* Calculated using actual remuneration amounts for the fiscal year ended March 2021.
23

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

Major Initiatives (FY ending 03/2022)
Implementation of a hybrid participatory virtual general
meeting of shareholders

Early forwarding of the notice of convocation

June 1999-

Holding of ESG briefing (scheduled for March)

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

June 2006-

IR Activity in FY ended 03/2021

Institutional
investors(including
shareholders)

Results briefing (including
telephone conferencing)

4 times

Small meetings

1 timeIndividual meetings
ESG briefing
Overseas roadshows

Total of 250 times

1 time(Cancelled due to COVID-19)

Individual
investors

Publication of shareholder
report

1 time(including
shareholders)Briefings for individual
investors

1 timePromotion of dialogue through SR visits

November 2011-

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

June 2013-

Quick disclosure prior to notice of convocation

June 2016-

Preparation of English translation of CG report

October 2016-

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

Provision of more English-translated information in
notice of convocation

June 2018-

June 2018-24

IV Initiatives Aimed at the Environment and Society

CSR Policy
CSR Policy
Provide solutions to issues related to water and the environment, andfulfill responsibility for the future
Basic themes
1.Provide highly safe services andproducts

Growth opportunity themes
4.Solve issues related towater resources
5.Realize sustainable energy use

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

Reduction of risk
Lowering of
capital cost

7.Advance industrial production technologies

Enhancement ofcorporate value

Creating of shared value
with society
CSV
25

CSV Business and Promotion System
Creation of shared value with society
through the expansion of CSV business
Promotion System for CSV Business

Definition of CSV Business
Products, technologies, and businessmodels that contribute significantly towater-saving, CO2 emissions reduction
and waste reduction compared toprevious levels

External
evaluations andhelping solve
issuesInternal
Environmental
Impact Reduction

The Kurita
Group

Water
Total Solutions

CSV Business Selection
Standards
Those that satisfy all or part of thefollowing concerning saving water,
reducing CO2 emissions and reducing
waste(1) Are significantly more effective
than previous or competing
technologies.
(2) Are new technologies orapplications of existing
technologies in new markets.
(3) Contribute to the action planspresented in the SDGs.
(4) Contribute to reduction of Scope
3 of the Kurita Group.

Socialissues

New products
SelectAlliances

CSV
Business

Internal/ ExternalAwardsCO2

Waste

Environmental
Improvement at
Customers

Sharedvalue

Achievements

Higher Earnings
Awards(1) Significantly more effective than previous orcompeting technologies.
(2) New technologies or applications of existing
technologies in new markets.
(3) Contribute to action plans presented in the
SDGs.
(4) Contribution to reduction of Scope 3 of theKurita GroupKPIManagement

E&S
Committee

Executive
Committee
26

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

Metrics

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

5. Realize sustainable energy use

Scope 1 & 2 emission reductions(percentage reduction from FY ended 03/2020)
Scope 3 emission reductions(percentage reduction from FY ended 03/2020)

3/20233/2031

3/2051

10,000 t

-

-

-

27.5%

100%

-

27.5%

27

Initiatives to Address Climate Change (Schedule for Achieving Targets)
Scope 1, 2
27.5% reduction(3/2031 target)

Emissionrate(3/2020)

Scope 1⚫

Gradual replacement of gasoline-powered vehicles with electric vehicles and the like⚫

Replacement of fuel with electricity using renewable energy

0.3%

⚫

Scope 2

Use of renewable energy for power used atbusiness locations

0.8%⚫

Scope 3

Scope 1, 2
100% reduction(3/2051 target)

Measures to reduce Scope 2 not derived from power⚫

Reduction of Scope 3 through promotion of CSV business ⚫ Transformation of products and services provided and business⚫

Changes in external environment (such as customers’ shift to renewable energy)

98.9%

Scope 3
27.5% reduction(3/2031 target)
28

Participation in International Initiatives
Serving as Leadership Committee member of the industry-driven Water Resilience
Coalition for preserving water resources
Water Resilience Coalition
VisionGlobal water resilience

PledgeImprove water availability, quality,
and accessibility in basins facing
serious water resource problems

Creating a world in which water can be consistently supplied to the required
place, in the required quantity, and at the required quality

Raise the global ambition of water
resilience through public andcorporate outreachMembers (15 companies)

Founders & Leadership (11 companies)◼ Anheuser-Busch InBev◼ Diageo
◼ PVH
◼ Gap
◼ Microsoft◼ Cargill◼ Dow◼ Ecolab◼ STARBUCKS◼ 3M◼ Kurita

Implement measures to resolve
water resource problems
across the entire value chain

Participatingcompanies◼ The Coca-Cola
Company◼ Woolworths◼ Cummins◼ Levi Strauss◼ IHG Hotels & Resorts◼ Danone◼ Colgate◼ HEINEKEN◼ gsk◼ PhosAgro◼ DUPONT◼ MARS◼ Reckitt
Benckiser◼ Bayer◼ Braskem(As of January 2022)29

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

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who have allowed Kurita to use them.