Corporate Governance System

Outline of the Corporate Governance System(As of June 29, 2023)

Kurita Water Industries Ltd. transitioned to a company with a nominating committee, etc. The purpose of the transition is to establish a more effective and transparent corporate governance system by strengthening management supervision and business execution functions in order to further enhance the Group's sustainable growth and corporate value. Through a system that clearly separates management supervision and execution, the Company will focus on supervision based on the perspectives of various stakeholders in management supervision, while in management execution, the Company will utilize the knowledge and appropriate monitoring functions of the supervisory side to make decisions on business execution.

Corporate Governance System Chart

Corporate Governance System Chart

Board of Directors

As of June 29, 2023, the Board of Directors consists of eight Directors (including four External Directors), including the Michiya Kadota (Director and Chairman) who chairs the Board, and performs a supervisory function for Directors and overall management, in addition to providing strategic direction that contributes to the Kurita Group's sustainable growth.

Nominating Committee

As of June 29, 2023, the Nominating Committee consists of five members, including Ms. Keiko Tanaka (External Director) who chairs the Committee, and is responsible for deciding on the content of proposals to be submitted to the General Meeting of Shareholders regarding the election and dismissal of Directors, deciding on candidates for successors to the President and Executive Officer and their development plans, and deciding on candidates for successors to Executive Officers and their development plans. The Nominating Committee also deliberates and reports on candidates for the President and Executive Officer and candidates for Executive Officers.

Audit Committee

As of June 29, 2023, the Audit Committee consists of three members, including Mr. Kenjiro Kobayashi (External Directors) who chairs the Committee, and is responsible for auditing the execution of duties by Directors and Executive Officers, preparing audit reports, and deciding on the content of proposals to be submitted to the General Meeting of Shareholders regarding the election and dismissal of Accounting Auditor.

Compensation Committee

As of June 29, 2023, the Compensation Committee consists of five members, including Mr. Masahiro Miyazaki (External Director) who chairs the Committee, and is responsible for determining the content of individual remuneration for Directors and Executive Officers, determining policies regarding the determination of the content of individual remuneration for Directors and Executive Officers, and determining individual performance evaluations for Executive Officers.

Executive Committee

The Company has established and operates an authorization system based on the Executive Committee and the Internal Decision Approval and Review Rules for business execution decisions, including matters transferred from the Board of Directors. The Executive Committee consists of Hirohiko Ejiri (President and Representative Executive Officer) who chairs the Committee, and Executive Officers and Corporate Officers appointed by the President and Representative Executive Officer and makes decisions. Amendment and abolition of the Internal Decision Approval and Review Rules is resolved by the Board of Directors.

Sustainability Advisory Council

The Company has established the Sustainability Advisory Council to discuss matters related to domestic and international situations surrounding sustainability, and to provide advice and reports to the Board of Directors. The Sustainability Advisory Council examines the Company's approach to sustainability management from the perspective of multi-stakeholders and a medium- to long-term perspective.