Kurita Water Industries Ltd.

Shareholder Relations Meeting forthe fiscal year ending March 31, 2023
(Securities code: 6370)

February - March 2023

Contents
I

Kurita Group Overview

p1-4

II

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

p5-8

III

Corporate Governance Initiatives

p9-22

IV

Sustainability Initiatives

p23-30

I

Kurita Group Overview

Company Overview & Shareholder Composition
Company Overview

Shareholder Composition (Top 10) (As of September 30, 2022)◼ 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: Tokyo Stock Exchange Prime Market◼ Paid-in Capital: ¥ 13,450,751,434◼ Issued Common Stock: 116,200,694 shares

Rank(As of September 30, 2022)

Shares(thousand)

Ratio

1

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

16,917,500

14.55％

2

Custody Bank of Japan, Ltd. (Trust Account)

7,352,957

6.32％

3

Nippon Life Insurance Company

5,979,883

5.14％

4

Kurita Water Industries Ltd.

3,554,787

3.05％

5

CACEIS BANK, LUXEMBOURG BRANCH/
UCITS CLIENTS ASSETS

2,575,581

2.21％

6

STATE STREET BANK AND TRUST COMPANY
5050252,307,274

1.98％

7

MUFG Bank, Ltd.

2,056,131

1.76％

8

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

1,805,700

1.55％

9

STATE STREET BANK WEST CLIENT - TREATY
505234

1,743,429

1.50％

10

JP MORGAN CHASE BANK 385781

1,475,253

1.26％◼ Number of Shareholders : 20,872 (As of September 30, 2022)

Shareholding Ratio

Shareholder

Treasury Stock 3.0%

Individuals 8.4%
Financial Institutions 33.3%

Foreigners 50.4%

Securities Firms 1.7%

Other Domestic Firms 3.2%

* 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 andhumanity 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)

2022
Established the new research anddevelopment base, “Kurita Innovation
Hub”

3,000
300.0

1949

1965

1975

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

2,000
200.0

1951
Entered the Water Treatment Facilities
business

2017/2019

1973

1991

Entered the electronics
industry

Launched soil remediation
services

2015

Acquired water treatment-relatedcompanies in the United States

Acquired a water treatment chemicals
business in Europe

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

100.0
1,000

1958
Expanded into maintenanceservices

2002

2021

Launched ultrapure water supply
business

A water treatment chemicals company in the
Middle East becomes a subsidiary
Acquired a water treatment chemicals company inCanada0
1949
Founded (Kobe)

1947
Economic andIndustrial history
Business
perspective

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

1955

1974
Head office built in Shinjuku, Tokyo

1973

2012
Relocated head office to Nakano, Tokyo

1991

2022
Transitioned to the Tokyo
Stock Exchange Prime Market

2000

Post-warrecovery 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
savingResponse to newenvironmental regulations

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

4

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

Progress on Management Targets and Improving Profitability
Management Targets
Net sales organic growth rate

Business profit margin

Return on equity（ROE）

3 % or more

15 ％10 % or more

Progress to date
⚫ Expand highly competitive service business for the domestic electronics industry⚫ Continue the shift to highly profitable business overseas in Asia and Europe

Water Treatment
Chemicals
business

Business profit margin

7.9％

11.5％

(3/2018)(3/2022)

Water Treatment
Facilities businessBusiness profit margin

10.4％

11.4％

(3/2018)(3/2022)5

Changes in Net Sales and Margin(billion yen)
3,200
320.0

236.8
181.2

193.8

214.4
180.1

178.1

257.3

264.8

288.2

267.7

(%)
30.0

214.2

189.4

1,600
160.0

15.0

15.0

15.2

11.7
8.4

10.3

9.3

9.1

10.0

9.5

10.1

11.4

11.0

0

0
3/20113/20123/2013█ Net sales

3/20143/20153/20163/2017⚫ Operating income margin (up to and including
the fiscal year ended March 31, 2018)

3/20183/20193/20203/2021

3/2022（IFRS）（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.

6

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 19th
consecutive
year

120

100

80

60

(%)

25.1

26.9 25.4

56.1

60.0

52.4

45.4

50.3
44.3
39.9

38.1 38.8
32.6

30.6
28.4
26.8 26.8

31.8

18
0

22

28

32

34

36

38

40

40.0

30.0

22.5

40

20

50.0

43.8

42

44

46

48

50

52

54

62

66

72

78

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 3/2023

0Forecast█ Dividend per share⚫ Dividend payout ratio
7

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
8

Ⅲ Corporate Governance Initiatives

Basic Concept and Basic Policies
Basic Concept

Basic Policies (5 Items)(1) Ensuring the rights and equality of shareholders

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

Establishment of Corporate GovernancePurpose⚫ Transparent, fair, prompt, and decisive decisionmaking(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⚫ Highly effective management supervision

Policies (21 Items)
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

See our website for details.
https://ir.kurita.co.jp/en/corporate_governance/governance_policies/index.html

9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

10

Size and Composition of the Board of Directors (Skill Matrix)
The Board of Directors as a whole complements the necessary knowledge,
experience and diversity for management decision making◼ Members: 10 (including 4 independent external directors) ◼ Term: 1 year
Corporate governance and management
Name

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

Corporate
management
Corporate planning

Finance andAccounting

Legal and HR
management

Human rights

GlobalMichiya Kadota

●

●

〇

〇

〇

Hirohiko Ejiri

●

●

〇

Yoshio Yamada〇

Yasuo Suzuki〇

Shuji Shirode

〇

●
●

●

●
●

Keiko Tanaka(external director)〇

Kenichiro Kamai(external director)●

Masahiro Miyazaki(external director)●

DX

Environment

〇
●

●

●

●

●

〇

●

〇

●

●

Katsuya Amano
Ryoko Sugiyama(external director)

Understanding andR&D, Technology andSolving issues on site
Engineering

●
●
●

●

〇

●
●

〇

●

Note: 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.

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
11Skills and reason for selection
High-level
concepts

SkillsCorporate
governanceandmanagement

Corporate management
Corporate planning /Finance and accounting /Legal and HR
management

Leveraging
diversity

Reason for selection

These skill categories have been selected because they are considered to be skills, knowledge, and experience that provide a foundation for decision making andsupervision of business execution.

Human rights

In developing its business globally, the Kurita Group encounters diverse working environments, business customs, and trading practices, and there is a need to engage inbusiness while respecting stakeholders’ human rights. The Group has therefore established “respect human rights” as one of its materiality themes , and is promoting
human rights respect initiatives for stakeholders such as employees in countries and regions where it conducts business. The Group also views the diversity of humanresources as a foundation for generating innovation and a source for creating value that will lead to sustainable growth, and therefore considers it important to utilize
diversity. Accordingly, the Group has selected human rights as a skill category because it is a priority issue for management.

GlobalAs it develops its business globally, the Kurita Group is working to establish and reinforce global platform built on the four pivotal regions of Japan, Asia, EMEA, and theAmericas. The skills item “global” stands for understanding of regions and countries, etc., where the Group is developing its business, and for international experience. It isan essential element for cultivating the “diverse points of contact with sites ” that are a source of the Group’s competitive advantage. This skill category has been selected
because the Group considers a deep knowledge of global markets to be essential for developing business globally and increasing corporate value.

Understanding andsolving
Making full use
issues on siteof waterknowledge
R&D,
technology,
and▼engineering
Creating social
value
DX
▼

Environment

The Group provides solutions to issues caused by water at the sites of various customers around the world. At “diverse points of contact with sites,” the Group engages
seriously with customers’ issues, utilizing its “water knowledge” in form of accumulated information and data to create solutions that only the Kurita Group can provide.
This is the source of shared value creation with customers and society. This skill category was selected in because the Group considers it important to have a deep
understanding of points of contact with customer sites, which is the source of value creation, and a deep experience of solving issues at such points of contact.
The Group merges technology and expertise acquired in various business domains to create new products, services, and technologies. Furthermore, amid the significant
external environmental changes of recent times, the Group has revised its methods of providing products, services, and technology with an emphasis on providing value incustomers’ business continuity, and is taking steps to improve cost competitiveness and production capacity by reviewing its procurement and production structures. Thisskill category was selected as the Group considers the strengthening of development, technology, and production to be the foundation for creating and providing solutions.
The Group aims to achieve DX by using digital technology to change its business processes and transform its business model. This skill category was selected because theGroup considers DX to be a priority task for making use of digital tools, AI, and IoT, and utilizing information and data collected from diverse customer sites as “water
knowledge ,” to create innovative shared value with customer and society.
In its CSR policies, the Group has identified “solve issues related to water resources,” “realize sustainable energy use,” and “reduce waste ” as material issues for realizing asustainable society, and as priority themes for it to address. Moreover, it has defined products, technologies or business models that make significant contributions towater-savings, CO2 emissions reduction and waste reduction compared with previous levels as “CSV businesses,” and is working to create shared value with society
through their development and provision to customers. The Group has selected this as a skill category because it views reducing environmental load through its business as
its mission.

12

Changes in Composition of the Board of Directors
40% external directors, two female directors█ External directors█ Internal directors█ Female directors（Number）
20

11%
10

9

8

0

18%

18%

11

11

20%

10%
10

9

1

1

3/20143/201599⚫ Percentage of external director
40%
38%
33%
27%

11

10

10

9
10

1

2

2

2

3/20163/20173/2018

40

17%
12

8

（％）

2

8

1

3/20193

6

62

3/2020

3

0

8
5
2

3/20212
3
3/2022423/202313

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

Results

Main matters discussed• Four external directors
Nomination• One full-time external
member of the Audit &Supervisory Board• （President）

Meetings held

4 times

Cases reviewed

11(April - December 2022)[Chair] External director• Four external directors
Remuneration• One full-time external
member of the Audit &Supervisory Board• （President）[Chair] External director

Meetings held
Cases reviewed(April - December 2022)

2 times5• Evaluated all candidates for
director• Establish direction of Board of
Directors and management
structure review in next MediumTerm Management Plan
• Performance evaluation of
directors and executive officers• Consideration of expansion of nonfinancial indicators• Consideration of remuneration
system in the next Medium-Term
Management Plan
14

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

Recommendation

Selection

Development of successor candidates
Confirmation

Review/

Interview
Assessment

Interview

Identify areas
for improvement

Setting
initiatives

Confirmation

Candidates for President
President
Externalorganization

Successor
Planning
Committee

President
Board ofDirectors

Directors

President

Externalorganization
Executive senior
managing director or
above

Executive senior
managing director or
above

Successor
Planning
Committee

Board ofDirectors

Candidates for director
Feedback to candidates, assignment,
appointment, etc.

Successor Planning Committee members
Matter for discussion

Members / Chair• Selection of president’s successor candidate

Four external directors
One full-time external member ofthe Audit & Supervisory Board[Chair] External director• Selection of directors’ successor candidates andconfirmation of their development status• Selection of executive officers’ successor
candidates and confirmation of their development
status• Management development at overseas affiliates

In addition to the above five, the president
and executive senior managing directors[Chair] External director

Meetings held

Meetings held: 4 times(April - December 2022)

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

Meetings held

Results(April-December 2022)

Cases
reviewed

Deputy Executive GM, Corporate Control and Administration Division
Deputy GM of Corporate Planning and Management Office, Corporate Planning
Department GM, Accounting Department GM, Finance Department GM, GMs ofbusiness management departments and operation departments in charge ofsales and production
14 meetings

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

2
6
4
2

Total of 14 projects

16Main Governance Initiatives for the Fiscal Year Ending March 2023
Initiatives for FY ending 03/2023

Board of directors• Consideration and discussion on the ideal medium- to longterm governance structure (Board of Directors + Executive
Committee)• Proposals and discussions by directors

Expected Benefits• Confirmation and sharing of direction among directors• Promoting mutual understanding among directors anddeeper understanding of Kurita among external directors

Sales in FY ending 03/2023: 3 * / 22 stocks*Of which 1 was a partial sale
Reduction of cross-shareholdings(Reference)

FY ended 03/2020 2*/28 stocks

FY ended 03/2021 4/26 stocks

Investment in growth businesses of funds acquired from
disposals

FY ended 03/2022 4*/24 stocks*Of which 2 were partial sales

Provision of information and training
to directors and members of the
Audit & Supervisory Board

Seminars held ・・・・・・・・・・・・・・・・・・・・・・・ Total of 8 times(April 2022 - January 2023)

Strengthening of Group governance• Evaluating the effectiveness of boards of directors at Group
companies in Japan (continued)• Expanding the role of the Audit & Supervisory Board at Group
companies in Japan• Invited outside instructors to conduct seminars on digital
human resources, human rights due diligence, international
taxation, etc.
• Conducted seminars with inside instructors on DX-related
topicsStrengthening mechanisms to ensure that Group governanceis being practiced appropriately

17

Evaluation of the Board of Directors
The effectiveness of the Board of Directors is analyzed andevaluated to identify the future issues
Implementation
MethodEvaluation Results(Period Covered: January–December 2021)⚫ Average self-evaluation results were generally good in all 6 items.

Frequency

Once a year

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

Evaluation
Items(1) Board of Directors roles and responsibilities(2) Fulfilling the function of external directors(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 2022 is currently
underway.

⚫ As in the previous year, evaluation item (4) received the highest rating, followed byevaluation item (5).
⚫ Evaluation was relatively low for the creation and oversight of a DX promotion system (within
evaluation item (1)), which was newly established for evaluation last fiscal year, and for“Dialogue with shareholders.”

Issue⚫ In order to improve the quality of dialogue with shareholders and investors, it is necessaryfor each member of the Board of Directors to be more aware of external perspectives when
executing their duties.

Measures⚫ Enhance mechanisms for sharing the results of dialogues with all members of the Board andstrengthen the Board's involvement in IR and SR activities.
⚫ Each member of the Board of Directors will identify issues based on an accurate
understanding of the current status of the Group and the requests and expectations of theGroup's shareholders and investors and will make original proposals for further discussion
by the Board.
⚫ The Board of Directors will ask specific committees to report on important topics forconsideration by the Board and will discuss and set the direction for the Group based on the
expectations of its shareholders and investors.

18

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

◼ Restrictions on concurrent positions: Directors and members of the Audit & Supervisory Board are allowed
to serve concurrently at up to three listed companies, including Kurita

Ryoko Sugiyama

Keiko Tanaka
New▶ Significant positions concurrently held

Appointed as directorof Kurita• Head and Representative Director, Gifu Shimbun Co., Ltd.
• External Director and Audit and Supervisory Committee Member,
LECIP Holdings Corporation• External Director, UACJ Corporation• Director, Gifu Sugiyama Memorial Foundation, a public interest
incorporated foundation▶ Significant positions concurrently held
• Corporate Vice President, Nissan Financial Services Co., Ltd.

▶ Reason for election

Appointed as directorof Kurita▶ Reason for election

June 2017
Board attendance
8/9（88.9％）

June 2019
Ms. Sugiyama is an expert in the environment and wastes and has
experience of management such as external director of listedcompanies. The Company believes that she is an individual capableof expressing opinions from an outside perspective different from theCompany’s to increase the rationality and transparency of theCompany’s management and supervising the execution of the duties
of Directors based on her high level of expertise in the environmental
field and abundant corporate management experience.

Board attendance
9/9（100％）

Ms. Tanaka has been active in business fields that differ from thoseof the Kurita Group and possesses a great deal of knowledge on
public relations and marketing, as well as having held the position ofAmbassador 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, andincreasing the rationality and transparency of the Company’s
management and supervising the execution of the duties of Directors
by leveraging her wide-ranging knowledge and international
experience.

Note: Board attendance is for April–December 2022.
19

Independent External Directors (2)Reflecting external perspectives and specialist knowledge in management◼ Term: 1 year

◼ Restrictions on concurrent positions: Directors and members of the Audit & Supervisory Board are allowed
to serve concurrently at up to three listed companies, including Kurita

Kenichiro Kamai

Masahiro MiyazakiNew

Appointed as directorof Kurita
June 2021
Board attendance
9/9（100％）▶ Significant positions concurrently held

▶ Significant positions concurrently held

No significant concurrent positions.

No significant concurrent positions.

▶ Reason for election▶ Reason for election

Mr. Kenichiro Kamai has a wealth of experience, including overseas,in business fields that differ from those of the Kurita Group, and hehas also considerable insight in DX and development. The Company
believes that he is an individual capable of expressing opinions froman outside perspective different from the Company’s to increase therationality and transparency of the Company’s management andsupervising the execution of the duties of Directors based on his
experience of management at multiple companies and expertise in
the fields of DX and development.

Appointed as directorof Kurita
June 2022
Board attendance
6/6（100％）Mr. Miyazaki has served in important positions in Japan andoverseas, including Representative Executive Officer, Executive
Officer and President of a globally operating corporate group. The
Company believes that he is capable of utilizing his rich experiencein corporate management and global business to increase therationality and transparency of the Group's management from an
outside perspective and supervising the execution of the duties of
Directors.

Note: Board attendance is for April–December 2022.
20

Remuneration System for Directors and Members of
the Audit & Supervisory Board
Fixed (54%)

Directors(excluding external
directors)

Variable (46%)
Contribution toshareholding scheme

Fixed remuneration

Performancelinked
remuneration

Evaluation Indicators

Performance-linked stockcompensation

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

ROE⚫ Digital Strategy Division

YoY change in consolidated business profit margin⚫ Innovation Division

YoY change in consolidated gross profit margin

Timing of Payment⚫ Engineering Division

YoY change in consolidated gross profit margin⚫ Global Business Division and Japan Sales Business Division

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

⚫ Upon retirement⚫ Other incentive remuneration (directors and executive officers other than the President)

The President evaluates contributions on a 4-point scale fromperspectives indicated below⚫ Profit attributable toowners of parent

Evaluation perspectives: Contributions to each committee; improvement of the Group's corporate structure; implementation of large-scale investment projects
such as M&A; significant orders received that are not reflected in the business performance of the current fiscal year; rate ofachievement of water-saving, CO2 emissions reduction, and waste reduction at customers tied to CSV business; other

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 2022.
21

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

Major Initiatives (FY ending 03/2023)
Accepting questions in advance at the General Meeting of
Shareholders

Early forwarding of the notice of convocation

June 1999-

Resumption of overseas roadshows (North America and Europe)

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

June 2006-

Tour of "Kurita Innovation Hub" facilities for institutional andindividual investors

Promotion of dialogue through SR interviews

November 2011-

IR Activity in FY ended 03/2022

Institutional
investors(including
shareholders)

Financial results briefings
Small group meeting
Individual meetings
ESG briefing
Participation in conferences held bysecurities companies

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-

4times1time
Total approx.250times
1time
3times

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

Individual
investors(including
shareholders)Letter to Shareholder

1time

Provision of more English-translated information in
notice of convocation

June 2018-

June 2018-22

Ⅳ Sustainability Initiatives

CSR Framework
Reaffirmation of Corporate Philosophy
CSR Definition and Initiative Objectives
Consideration of Priority Themes (Materiality)
Priority themes

CSR Policy

Basic themes

Themes for growth opportunities

Provide solutions to issues related towater and the environment, and fulfill
responsibility for the future

1. Provide highly safe services and products

4. Solve issues related to water resources
5. Realize sustainable energy use
6. Reduce waste
7. Advance industrial production technologies

2. Conduct fair business activities
3. Respect human rights

Individual activities

Results

Activities organization

Disclosure

Business policy

Stakeholder
engagement

Verification and improvement

23

CSV Business and Promotion System
Creation of shared value with society through the expansion of CSV business
CSV Business Selection
Standard
Products, technologies or business models
that meet some or all of the following
standards with regard to water-savings, CO2
emissions reduction, and waste reduction:

Promotion System for CSV Business

External evaluations
and helping solve
issuesInternal Environmental Impact
Reduction

The Kurita Group

RequiredSignificantly more
effective thanprevious orcompetingtechnologies.

Or

New technologies
or applications ofexisting
technologies in
new markets.

Water

CO2

Waste

Total Solutions
Environmental Improvement at
Customers

New products
Social issues

Selection

Sharedvalue

Achievements

CSV
Business

Alliances

RequiredHigher Earnings
Internal/ External Awards

Contribute to action plans
aimed at achieving the SDGs.

Recommended
Contribute to reduction of
Scope 3 emissions
in the Kurita Group.

KPI Management

AwardsE&S Committee

Executive
Committee

Definition of CSV Business
Products, technologies, and business models that contributesignificantly to water-saving, CO2 emissions reduction and waste
reduction compared to previous levels

24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 policy

Priority themes in CSR Policy

Metrics

3/2022(Results)

Long-term targets
3/20233/2031

3/2051CO2 emission reductions at customers- CO2 emissions from our businessactivities
5. Realize sustainable energyuse

91,000 t

10,000t

—

—

11.5％

—

27.5％

100％

20.3％

—

27.5％

—

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

25

Initiatives to Address Climate Change and Schedule for Achieving Targets
Percentageofemissions(3/2020)

Scope1,2
27.5% reduction

Scope1,2
100% reduction(Target for 3/2031)(Target for 3/2051)

Selection Process for Measures

Sort risks based on scenario analysis
Gradual replacement of gasoline-powered vehicles with electric vehicles andthe like

Scope1

0.4%

Level of
ImpactReplacement of fuel with renewable energy

Use of renewable energy for power used atbusiness locations

Scope2

Probabilityofoccurrence

Formulate and promote Group strategies

1.0%
Measures to reduce Scope 2 not derived from power

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

Scope3

98.7%
Changes in external environment (such as customers’ shift to renewable energy)

Scope3

27.5% reduction

Category 13
9％Category
1,4,924％

Other 1%

Reduction of Scope 3
through CSV business
Low environmental
impact water treatment
systemMethane fermentationequipment for biogas
power generation

Category 11
66％(3/2020)(Target for 3/2031)

Focusing efforts also on avoided emissions(customers’ environmental improvement), which
does not fall into Scope 1 to 3.

Establish competitive
advantage
26

WRC Progress
Serving as Leadership Committee member of the industry-driven Water Resilience
Coalition for preserving water resources
Water Resilience Coalition
2050 VisionInterim targets(By 2030)

Global water resilience

Creating a world in which water can be consistently supplied to the required place, in the required quantity, and at the required quality(1) Conduct initiatives in more than 100 basins around the world to help improve the water resources of more than 3 billion people in the target basins.
(2) Have had a positive effect on the water and sanitary conditions of at least 300 million people.
(3) Acquire 150 member companies with value chains that account for one third of the world's water use.

Target and initiatives of the Kurita Group
Target (FY2030)

Number of people that can benefit from improvement in water resources*: 700 million people*

Water Conservation Initiative in the U.S.

Kurita-specific initiative

Campaign aimed at conserving water resources in the Colorado River Basin in North
America began on September 1, 2022

⚫ This initiative is being implemented together with Avista Technologies, Inc., an overseas Group company headquartered in the Colorado River Basin, in response to a serious
water shortage due to the effects of a historic drought in the basin. In addition to contributing to water conservation for customers based in the basin, we will contribute an
amount corresponding to the estimated water savings to water conservation projects.
Solving problems related to water resources in the basin in two ways: saving water in customer factories and supporting water resource conservation projects*Number of people that can benefit from improvement in water availability, water quality, and water accessibility in highly-stressed basins.
27

Initiatives for Human Resources (1)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 ofeach 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.
3/2020Results

3/2021Results

3/2022
Results

1.1%

2.1%

2.4%

2.7%

4.1%

(New graduates
recruits)

21.0%

19.0%

33.0%

31.0%

31.0%

30.0%

(New graduate andmid-career recruits)

15.0%

20.0%

33.0%

28.0%

29.0%

ー

Ratio of women in management
positions

9.0%

10.0%

12.0%

13.0%

Ratio of women to all employees

24.0%

24.0%

25.0%

25.0%

Ratio of women in management
positions
Kurita<Reference>
Kurita Group2022(up to Dec. 1)
Results

3/2019Results

Ratio of womenamong recruits
for career track
positions

April 2023
Targets

3/2028Targets

5.0% or more

Around 10.0%
ーAround 30.0% to 40.0%⚫ There were 13 women in management positions as of December
2022 (4.1% of management positions)⚫ Through initiatives to encourage the promotion of women to core roles, the Company has been selected as aconstituent of the MSCI Japan Empowering Women Index (WIN) since FY2017⚫ There were 26 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 of work and childcare(obtained Kurumin and Eruboshi certification marks)

28

Initiatives for Human Resources (2)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 incorporatingideas from various countries and regions, andoperating the Group globally by promoting local
employees to executive positions in overseas
Group companies.

3. Promotion of experienced recruits tomanagement positions, etc. (Kurita)⚫ Flexible and active recruitment and promotion instep with the expansion of business⚫ Hiring around 10-20 people every year (equivalent
to 10-30% of annual recruitment)⚫ As of December 2022, 82 of those who joined theCompany as experienced recruits have been promoted
to positions equivalent to management positions(constituting 12.5% of all employees in such positions)⚫ Active recruitment and promotion in step with theglobalization of business⚫ As of December 2022, three of the 19 nonJapanese employees worked in positions
equivalent to management positions

29

Initiatives for Diversity and Inclusion
Engagement

D＆I

Implement measures to strengthen vertical andhorizontal communication based on results of2021 engagement survey

Group-wide implementation of measures toinstill the D&I Vision

Create opportunities for executive general managers andemployees to speak directly on a variety of topics

An initiative to watch the “D&I Vision Explanation Video,” conduct
workplace discussions, and think and implement actions referring to
the 9 recommended actions in each department

9 recommended actions

Be aware of unconscious
biases and focus on diversity

Create a
psychologically safe
workplace

Praise your peers fortheir achievements andthank them

Learn, act, and growautonomously

Have diverse interactions
regardless of divides

Take on challenges withagility and without fear ofrisk

Understand the Vision

Increase sense of selfaffirmation

Share D&I
accomplishments30

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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