Introduction to Valqua Technology NewsNo. 38 Winter 2020

We sincerely wish everyone a happy spring of the second year of Reiwa era. Thank you for regularly
reading the Valqua Technology News.
In the era of Reiwa, interest and expectations for the role of innovation for corporate growth areincreasing. In the changes brought by technological innovations such as IoT and AI, there is atransition that requires a single product technology development solution to be combined with othertechnology solutions, and that complex and diversified new value-added products and services beoffered to the market. In addition, in technology development to support this change, creating resultsthat pursue efficiency and speed, and establishing an ecosystem of technology development thatorganically connects a wide variety of technology development activities that are being deployedglobally is essential, and such is being implemented under the keyword of open innovation involving
industry, government, and private sectors.

Against this background, in this issue of Technology News, we look ahead to the introduction of nextgeneration technologies that we are promoting, firstly focusing on the core technology of sealengineering, which is the base, and prepared an essay introducing our technology and an introduction
to our core products. As for the technical essay, it is an analysis of the effect of the tightening
method on the sealing characteristics of large-diameter flanged fasteners, consideration ofcompression behavior due to gland packing tightening, and performance evaluation of semi-metallic
gaskets that readers can refer to for safety and security of their plants. Furthermore, as for theintroduction to our products, we take up the quick opening and closing cylinder valve and the newly
developed cleaning Spray BallTM , the usefulness of which has been once again recognized in themarket, and provide useful information for customers in future product selections.
Thank you for your patronage and we hope you will continue to enjoy the Valqua Technology News
this year.
Director, Managing Executive Officer CTO & CQO

Mutsuo Aoki
2Winter 2020

In this trend, we have taken various measures in our mid-term business plan NV・S8, which began in
2018, to keep up with the times. In particular, in the previous year, we opened the Valqua Advanced
Materials Technology Research Laboratory of in the National Institute of Advanced Industrial Scienceand Technology and promoted the creation of a system that utilizes technologies from startup
companies, such as those in Silicon Valley. In the new medium-term management plan beginningfrom this year, using these new technological solutions, we will incorporate cutting-edge newmaterials, sensing technology, and IoT and AI technology into core technology areas such as sealing
technology that we have accumulated since our founding, and resin processing technology such as
fluororesin, as well as strengthen our technology development activities to provide H&S products inareas that encompass everything from hardware products to services with solutions that customers
truly seek. Furthermore, in order to provide cutting-edge technology solutions to the market as highquality products, we are promoting activities that include the introduction of RPA for production
technology innovation.

No.38