Medium-term Management Plan

The overview of our medium-term management plan

01. The Kurita Group’s vision

A. Corporate Philosophy and Philosophy System

B. The Kurita Group’s Materiality

With the aim of expanding the core of management strategy from CSR to sustainability and synchronizing Kurita’s earnings capacity with the realization of a sustainable society, we have identified materiality along two tracks:the impact on society and the environment, and the impact on the corporate value of the Kurita Group.
02. PSV-27 (Pioneering Shared Value 2027)
A. The Positioning of PSV-27

We will make full use of what we achieved in MVP-22 and accelerate revenue growth globally

B. PSV-27 Plan and Materiality

The PSV-27 Plan aims to enhance corporate value by providing unique solutions that deliver higher and new value to customers and society, driven by two competitive advantages: “customer intimacy,” which builds on the Kurita Group’s longstanding strengths, and the creation of “high social value,” a new challenge for long-term growth.
“Value Pioneering Path” is a roadmap that defines the medium-term direction of the Kurita Group by organizing the relationships among the vision, “the Kurita Group’s Materiality” as priority issues for achieving our corporate vision, and the PSV-27 Plan, which incorporates materiality efforts in an organic manner. The Kurita Group advances each strategy along this value-creation path, aiming to achieve our corporate vision by providing unique, high-value solutions to industry and society.

Value Pioneering Path

C. Management Indicators for the Fiscal Year Ending March 31, 2028

As management indicators of the PSV-27 Plan, we have established the following financial and non-financial targets for the final year of the plan, the fiscal year ending March 31, 2028.

PSV-27 Plan: Management indicators and progress

Note
In connection with the execution of a share transfer agreement for Pentagon Technologies Group, Inc., the Group has classified its business as discontinued operations. Accordingly, net sales and business profit margin for the fiscal years ended March 31, 2026 and March 31, 2025 are presented on a continuing operations basis.

D. Business Strategy for the Electronics Industries Segment

Enhancing Presence in growth market through a balanced mix of project-based and recurring business model^*

Win facilities projects in growth markets seeing active investment, and leverage these projects to build up a base of high value-added services. Our aim is to strengthen the stability of our business base in what is a rapidly changing market, by tapping into both flow and stock businesses. To achieve this, we will expand the regions in which we operate, enhance production capacity, and optimize our business portfolio.
- Leveraging facility projects as a starting point to capture recurring service revenues, including maintenance and chemicals
Note
In connection with the execution of a share transfer agreement for Pentagon Technologies Group, Inc., the Group has classified its business as discontinued operations. Accordingly, the amounts for the fiscal years ended March 31, 2026 and March 31, 2025 are presented on a continuing operations basis.

E. Business Strategy for the General Industries Segment

Developing new business domains and markets to establish a business foundation that combines stability and growth

Targeting all industries other than electronics, this segment aims to transform itself into a growth business over the medium to long term by expanding its business domains and steadily building earnings through proprietary value-providing models such as the CSV business^*1 and NEXTANCE^*2.
- Kurita defines the CSV business as products, technologies, or business models that achieve a greater contribution than conventional approaches to water saving, greenhouse gas (GHG) emissions reduction, and resource recovery or reduction of resource inputs.
- NEXTANCE is a long-term, circular business model that begins with the diagnosis of customers’ water treatment systems, including those of non-Kurita products, optimizes their water treatment system operations, and supports the formulation of maintenance plans and long-term capital investment plans through continuous customer engagement.
F. Establishment Competitive Advantage

To provide customers and society with unique and high value solutions on an ongoing basis rests on innovating our existing business models and creating new models with competitive advantages. "Technology" is the key to doing so. At the Kurita Group, technology refers not only to research and development, but to the entire technology value chain, including the on-site implementation of design, production, installation, and maintenance. In addition to enhancing our existing technologies, we will endeavor to develop technologies for creating new values that meet latent needs in society as a whole.
For more information, please refer to the Integrated Report.

G. Strengthening of Human Capital (Strategic Cultivation and Utilization of Human Resources)

Creating and delivering proprietary solutions that generate new and greater value for customers and society requires the integration of diverse expertise, experience, and perspectives. Guided by this belief, the Kurita Group has established its Diversity & Inclusion (D&I) Vision and developed a human resources strategy focused on fostering collaboration among diverse talent who share our corporate philosophy to create new value in water.
For more information, please refer to the Integrated Report.

H. Enhancing Corporate Governance

Through a system that clearly separates management supervision and execution, the Board of Directors focuses on management supervision with the perspectives of various stakeholders. In management execution, we have established a system that utilizes knowledge and appropriate monitoring functions on the supervisory side and adopt a structure for decisive decision-making on business execution.

I. Growth Investment and Cash Allocation

We aim to improve our ability to generate profits by investing for growth while maintaining financial soundness, and reward shareholders appropriately while taking into account cash levels. In this way, we seek to continuously expand the equity spread. After ensuring that we undertake maintenance and upgrade investments that are essential for the continuity of our business, and maintain our steady pace of continuously raising the dividend, our policy is to prioritize growth investments. With regard to share buybacks, we will take a flexible approach, subject to factors such as the level of excess cash and share price level. As well, over the medium- to long-term, we are targeting a level of around 50%. The main source of cash, in principle, is operating cash flow, but in situations where financial soundness has been secured, we are open to the use of debt and an appropriate level of leverage.

J. Optimization of the Business Portfolio

What is important in enhancing capital efficiency is the optimization of the business portfolio. We take a multifaceted approach in assessing businesses. In addition to evaluating growth potential and return on equity, we also take into account the attractiveness of the market and non-financial evaluation. Beyond this, we are proactively deploying capital in domains with high growth potential, including M&A and aim to leverage bolt-ons to accelerate growth. In addition, we also emphasize organic growth. For businesses where there are issues of growth or profitability, we undertake remedial measures such as structural reforms or business model transformations. In instances where, after taking into account growth potential or profitability levels, we come to believe that a business would be better served by a different owner we are prepared to take bold action, such as external alliances or business reorganization.