Management Structure and Corporate Data 2013 · Type Test Certification of Special Equipment (CHINA) Vender Registration Certificate JIS product certification (JIS B 2011 Bronze,

Board of Directors, Officers

President

Director

Director

Director

Director

Outside Director

Outside Director

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Yasuyuki Hotta

Toshiaki Natori

Masahiko Kondo

Hitoshi Kurihara

Takahito Hirashima

Shigerou Kusano

Kazuyuki Matsumoto

Corporate Data (as of March 31, 2013)

Stock Information (as of March 31, 2013)

Corporate Name

Head Office

URL

Established

Capital

Fiscal-year Ended

Stock Exchange Listing

Number of Employees

1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Prefecture 261-8577, Japan TEL: +81-43-299-0111

http://www.kitz.co.jp/english/

January 26, 1951

21,207,084,670 yen

March 31

First Section of Tokyo Stock Exchange (Code: 6498)

1,210 (Non-consolidated basis)

Date of resolution of meeting of shareholders: March 31Year-end dividend: March 31Interim dividend: September 30

Total Number of Authorized Shares

Shares Issued and Outstanding

Japan Trustee Services Bank, Ltd.

Nippon Life Insurance Company

Kitazawa Agent’s Stock Ownership Plan

The Chase Manhattan Bank, N.A. London S.L. Omnibus Account

Kitazawa Ikueikai Foundation

SUMITOMO LIFE INSURANCE COMPANY

KITZ Corporation Client Stock Ownership Plan

Trust & Custody Services Bank, Ltd.

Mizuho Corporate Bank, Ltd.

Sumitomo Mitsui Banking Corporation

11,902

4,789

3,433

3,416

3,411

3,273

3,075

3,021

2,553

2,553

10.90

4.39

3.14

3.13

3.12

3.00

2.82

2.77

2.34

2.34

400,000,000 shares

109,221,188 shares Note: The number of shares shown above does not include 11,175,323 shares of treasury stock that were held as of March 31, 2013.

However, announcements will be placed in the Nihon Keizai Shimbun in cases where it is not possible to make an electronic announcement. URL for announcements: http://www.kitz.co.jp/

In addition, a public announcement will be made in advance as necessary.

Major ShareholdersName

Investment

Shareholdings (thousands) Percent of total shares issued (%)

Notes:1. The above list of major shareholders does not include the 11,175 thousand shares of treasury stock held as of March 31, 2013. 2. The above number of shares held includes shares associated with trust operations as follows:

3. Shares held by Nippon Life Insurance Company include 8 thousand shares in the separate account for annuities. 4. Shares held by SUMITOMO LIFE INSURANCE COMPANY include 88 thousand shares in the variable insurance account and 424 thousand shares in the separate account. 5. The total number of shares used to calculate percentages of shares held does not include 11,175,323 shares of treasury stock.

Financial instruments exchange

Treasury stocks

Other domestic companies

Individuals and others

Foreign companies

0.5%

9.3%

12.8%

30.0%

12.8%

Less than 1,000 shares

1,000 shares or more



0.6%

13.1%

11.3%

26.9%

1 million shares or more48.1%

Financial institutions34.6%

Management Structure and Corporate Data2 0 1 3

Directors andAudit & Supervisory Board Members

President Chief Executive Officer

Managing Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Executive Officer

Yasuyuki Hotta

Toshiaki Natori

Masahiko Kondo

Hitoshi Kurihara

Takahito Hirashima

Shimesu Fujihara

Yoshihiro Atobe

Toshiyuki Hara

Choji Suzuki

Kazuhiko Shimodaira

Mitsuo Otaki

Toshiyuki Murasawa

Taro Kimura

Yukio Osada

Kazuhiro Naito

Takaoki Nakajima

Kazuhiko Hirabayashi

Executive Officers (as of April 1, 2013)

Composition of Shareholders Composition of Shareholdings

Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., The Hachijuni Bank, Ltd., The Yamanashi Chuo Bank, Ltd., The Chiba Bank, Ltd.

Various types of valves, actuated valves, automated control valves, emergency shutoff equipment, systems devices, metal fittings and diverging tube attachable devices, forged products, water supply equipment

Takafumi Azuma

Junichiro Haishima

Hirosuke Chihara

Akio Mitsufuji

Main Banks

Products

Electronic announcement

100 shares

10,627

June

Reference Dates

Number of shareholders

General Meeting of Shareholders

Share Unit Number

Public Announcement Method

Japan Trustee Services Bank, Ltd.: 11,902 thousand shares Trust & Custody Services Bank, Ltd.: 3,021 thousand shares

(as of June 27, 2013)

1951

19521959

1960

1962

1965196719681969

1970197319741975

19801984

1985

19881989

1991

199219941995

1999

20002001

20022003

2004

2005200720082009

201120122013

Kitazawa Mfg. Works was established. The Nagasaka Plant was constructed in Nagasaka-cho, Yamanashi, and the Company started manufacturing and selling bronze valves.

The Nagasaka Plant received JIS certification for bronze valves.

Toyo Metals Co., Ltd. was established and started manufacturing brass rods.

KITZ started using a high-performance automated production system using the most advanced machinery, including automated processing and molding machines from Europe and North America.

Company name changed to Kitazawa Valve Co., Ltd.

KITZ was the first in Japan to start using a brass hot forging press; started manufacturing and selling brass forged valves.

KITZ became a registered trademark.

Started manufacturing and selling ductile cast iron valves and stainless steel valves.

Started manufacturing and selling butterfly valves.

Started manufacturing and selling cast gray iron valves.

Started operations at stainless steel valve casting facility and machining facility at the Nagasaka Plant.

Started operations at the Ina Plant.

Started manufacturing and selling cast steel valves.

Changed Japanese-character company name (still Kitazawa Valve Co., Ltd., in English).

Adopts “CHRYSANTHEMUM-HANDLE ” for cast bronze valves.

Shares listed on first section of Tokyo Stock Exchange.

Established KITZ Corporation of America in Houston, Texas.

Established KITZ Corporation of Taiwan in Kaohsiung, Taiwan.

Senior Managing Director Yusuke Shimizu named President & CEO.

Established KITZ (Thailand) Ltd. in Samutprakarn, Thailand.

Nagasaka and Ina plants earned ISO 9001 quality management system certification, making KITZ the first Japanese company to receivethis certification.

KITZ merged with TOYO Metals.

Purchased ISO S.A. of Spain (currently KITZ Corporation of Europe, S.A.) to establish a manufacturing and sales base in Europe.

Changed name to KITZ Corporation and moved the head office to the Makuhari district of the city of Chiba.

Established KITZ Engineering Service Co., Ltd.

Chino Plant was first in Japan’s brass bar industry to receive ISO 9002 certification for quality management systems.

Shimizu Alloy Mfg. Co., Ltd. joined the KITZ Group, enabling the Group to begin supplying products for water supply systems.

The Nagasaka Plant received ISO 14001 certification.

Announced the development of KEEPALLOY brass and bronze alloys that are easy to machine and are free of lead for environmental protection.

Miyoshi Valve Co., Ltd. joined the KITZ Group.

The Ina Plant received ISO 14001 certification.

KITZ marked its 50th anniversary, announcing a New KITZ’ Statement of Corporate Mission, Action Guide and a Long-term Management Plan “Target 2010.”

Managing Director Kimio Kobayashi was named President & CEO.

Purchased semiconductor manufacturing machine device business from the former Benkan Group and established KITZ SCT Corporation to operate this business.

Established KITZ Corporation of Kunshan in China.

Established KITZ Corporation of Shanghai in China.

Established KITZ Corporation of Jiangsu Kunshan in China.

Purchased the valve business of the former Toyo Valve Co., Ltd. and began business at its reorganized operations.

Spun off the KITZ brass bar manufacturing and micro filter businesses to form KITZ Metal Works Corporation and KITZ Micro Filter Corporation.

Purchased the brass bar manufacturing business of the former Kyoto Brass Co., Ltd.

Established KITZ Corporation of Lianyungang in China.

Director and Senior Executive Officer Yasuyuki Hotta was named President & CEO.

KITZ Metal Works Corporation and Kyoto Brass Co., Ltd. merged.

Purchased Perrin GmbH a ball valve manufacturer in Germany.

Established KITZ Corporation of Asia Pacific Pte. Ltd., in Singapore.

Transferred manufacturing operations of Toyo Valve to KITZ, changing Toyo Valve into a sales company.

KITZ Europe GmbH starts operations as European regional headquarters.

Purchased Mikuni Engineering (Singapore) Pte. Ltd., an exclusive distributor in Singapore, and began operations as KITZ Valve & Actuation Singapore Pte. Ltd.

Certification item Certification body Business site Certification item

JIS product certification (JIS B 2062 Sluice valves for water works)

ISO 9001 / ISO 14001

Certified by Japan Water Works Association

ISO 9001 / ISO 14001

ISO 9001 / ISO 14001


ISO 9001 / ISO 14001


Manufacturing plant for PED/CE Marking Products

CSA<Canadian Standard Association>

FM<Factory Mutual>

UL<Underwriters Laboratories>

Australian Standard

NSF

ISO 9001 / ISO 14001


UL<Underwriters Laboratories>

ISO 9001 / ISO 14001

TS certification

ISO 9001 / ISO 14001


TS certification

ISO 9001

ISO 9001 / ISO 14001


API Spec 6D

ISO 9001

API Spec 6D

DIN/GOST certification obtained


CRN<Canadian Registration Number>

Type Test Certification of Special Equipment(CHINA)

Vender Registration Certificate

JIS product certification (JIS B 2011 Bronze, gate, globe, angle and check valves)

Manufacturing plant for AD2000-Merkblatt HP0 products

Manufacturing plant for AD2000-Merkblatt W0 castings




Management Structure and Corporate Data 2013

Approvals and Authorizations of the Group’s Principal PlantsHistory

KITZ Corporation Nagasaka Plant

ISO 9001

Shimizu Alloy Mfg. Co., Ltd.

KITZ SCT Corporation

KITZ Micro FilterCorporation

KITZ (Thailand) Ltd.

KITZ Corporation ofTaiwan

KITZ Corporation ofKunshan(China)

KITZ Corporation ofJiangsu Kunshan(China)

KITZ Corporation ofLianyungang(China)

KITZ Corporation ofEurope, S.A. (Spain)

Perrin GmbH(Germany)

ISO 14001


API Spec Q1 and 6D




KITZ Corporation Ina Plant

ISO 9001

ISO 14001


API Spec Q1 and 6D


JIS product certification (JIS B 2031 gray cast iron valves)

KITZ Corporation Chino Plant

ISO 9001

LRQA

LRQA

LRQA

Bureau Veritas Japan Co., Ltd.



Japan Water Works Association (JWWA)



American Petroleum Institute (API)

American Petroleum Institute (API)



TÜV SÜD

TÜV SÜD

Japan Water Works Association (JWWA) (Ministry of Economy, Trade and Industry)


ISO 14001

JIS product certification (JIS B 2011 Bronze, gate, globe, angle and check valves)


®

Management and Financial Information

Consolidated Financial Highlights

Net Sales Operating Income Ordinary Income

Net Income Total Assets Cash Dividends per Share

Sales by Reportable Segments Operating Income by Reportable Segments Sales by Geographical Area

Consolidated Financial Summary

KITZ Corporation of Asia Pacific Pte. Ltd., a Group company

headquartered in Singapore, made its Singapore exclusive

distributor, Mikuni Engineering (Singapore) Pte. Ltd.

(hereafter Mikuni), a subsidiary in March 2013.

Founded in 1981, Mikuni is involved in the sales of

industrial valves and modifications and maintenance for

shifting from manually operated valves to automated

valves. Since its founding, it has sold industrial valves as an

exclusive distributor, focusing mainly on Jurong Island

(Singapore), an ASEAN hub for oil refining and petrochemi-

cal markets.

By becoming part of the KITZ Group, Mikuni will be

able to undertake the new business of industrial valves for

oil refining and petrochemicals in the ASEAN region, where

its sales previously centered on general-purpose valves for

applications such as buildings and water supply system

facilities. In particular, in Singapore, where investments in

petroleum plants are expanding rapidly, Mikuni will rebuild

its sales structure for industrial valves and make direct

T O P I C

approaches to customers using its strengths as a local

subsidiary to provide even more highly detailed services

than ever before. Moreover, Mikuni will also upgrade its

functions such as for modifications and maintenance of

valves and will build a structure that can respond quickly to

the needs of customers in the ASEAN region.

Mikuni’s corporate name has been changed to KITZ

Valve & Actuation Singapore Pte. Ltd.

Mikuni Engineering (Singapore) Pte. Ltd., an Exclusive Distributor in Singapore, Becomes Part of the KITZ Group

FY2009 FY2010 FY2011 FY2012FY2008Item

Net sales

Year-on-year

Operating income

Year-on-year

Ordinary income

Year-on-year

Net income

Year-on-year

Total assets

Year-on-year

Interest-bearing liabilities

ROE (Return on equity)

EPS (Earnings per Share)

PER (Price Earnings Ratio)

Cash dividends per share

Free cash flows

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Millions of yen)

(%)

(Yen)

(Times)

(Yen)

(Millions of yen)

Operating income by reportable segments shows figures beforeadjustments for company-wide expenses and others.

Note:

127,095

(14.9)

7,188

(38.1)

6,475

(38.5)

3,396

(46.0)

101,101

(7.5)

35,860

6.6

30.02

10.0

9.0

7,155

96,592

(24.0)

6,976

(3.0)

6,248

(3.5)

3,079

(9.3)

97,533

(3.5)

27,555

6.0

27.23

20.0

7.0

8,759

106,059

9.8

6,341

(9.1)

5,929

(5.1)

3,063

(0.5)

100,138

2.7

30,165

5.8

27.36

14.6

7.0

2,911

108,446

2.3

4,638

(26.9)

4,388

(26.0)

2,480

(19.0)

94,981

(5.2)

24,290

4.7

22.71

15.8

7.5

(291)

111,275

2.6

6,558

41.4

6,521

48.6

4,039

62.8

99,972

5.3

22,319

7.2

36.98

12.8

9.5

3,366

150,000

127,0957,188 6,976

6,341

4,638

6,558 6,475 6,2485,929

4,388

6,521

96,592106,059 108,446

111,275

(Millions of yen) (Millions of yen) (Millions of yen)

(Millions of yen) (Millions of yen) (Yen)

FY2008 FY2009 FY2010 FY2011 FY2012 FY2008 FY2009 FY2010 FY2011 FY2012 FY2008 FY2009 FY2010 FY2011 FY2012

FY2008 FY2009 FY2010 FY2011 FY2012 FY2008 FY2009 FY2010 FY2011 FY2012 FY2008 FY2009 FY2010 FY2011 FY2012

100,000

50,000

0

8,000

6,000

4,000

2,000

8,000

6,000

4,000

2,000

0 0

4,000

3,396 101,10197,533

100,13894,981

99,9729.0

7.0 7.07.5

9.5

3,079 3,063

2,480

4,039

2,000

3,000

1,000

0

120,000

100,000

80,000

60,000

20,000

40,000

10

8

4

6

2

0 0

Valve Manufacturing Business84,472 (75.9%)

Valve Manufacturing Business8,808 (92.0%)

Japan 81,509(73.3%)

Brass Bar Manufacturing

Business17,948

(16.1%)

Other8,855(8.0%)

Brass BarManufacturing Business

441 (4.6%)

Other 330 (3.4%)

FY2012Total 111,275

(Millions of yen)

FY2012Total 9,580(Millions of yen)

FY2012Total 111,275

(Millions of yen)

Asia and Middle East

16,955 (15.2%)

Other 4,187 (3.8%)North America8,622 (7.7%)

2 0 1 3

Note: Free cash flows = Cash flows from operating activities + Cash flows from investing activities

FY2011(As of Mar. 31,

2012)


2013)Item

FY2011(As of Mar. 31, 2012)

FY2012(As of Mar. 31, 2013)

Item

FY2011(Year ended

Mar. 31,2012)

FY2012(Year ended

Mar. 31, 2013)

Item

FY2011(Year ended

Mar. 31,2012)

FY2012(Year ended

Mar. 31, 2013)

Item

ASSETS

Total current assets

Total fixed assets

Property, plant and equipment

Intangible assets

Investments and other assets

Total assets

FY2012 (results) FY2013 (forecasted) FY2014 (forecasted) FY2015 (forecasted)

FY2012 (results)

FY2013(forecasted)

FY2014 (forecasted)

FY2015 (forecasted)

FY2012 (results)

FY2013(forecasted)

FY2014 (forecasted)

FY2015 (forecasted)

Item

Net sales

Operating income

Ordinary income

Net income

111,2756,5586,5214,039

120,000

7,200

7,100

4,300

130,000

8,900

8,700

5,300

143,000

11,600

11,400

7,100

47,247

47,734

34,767

2,404

10,561

94,981

49,956

50,016

35,811

3,269

10,935

99,972

ASSETS

Total current assets

Total fixed assets

Property, plant and equipment

Intangible assets

Investments and other assets

Total assets

29,439

51,782

20,008

944

30,829

81,221

29,649

54,401

20,459

1,710

32,231

84,051

LIABILITIES

Total current liabilities

Total long-term liabilities

Total liabilities

NET ASSETS

Total shareholders’ equity

Minority interests

Total net assets

Total liabilities and net assets

20,182

20,309

40,491

57,283

898

54,489

94,981

21,149

18,603

39,752

60,394

977

60,219

99,972

(Millions of yen)


2012)


2013)Item

(Millions of yen)

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

2,217

(2,508)

(6,638)

(143)

(7,072)

12,707

5,635

7,885

(4,519)

(3,213)

253

406

5,635

6,042

FY2011(Year ended

Mar. 31,2012)

FY2012(Year ended

Mar. 31, 2013)

Item

(Millions of yen)

Management and Financial Information 2013

Consolidated Financial Statements

Second Phase of Medium-term Management Plan (FY2013 – FY2015)

Notes: Amounts less than the unit expressed are omitted.These financial statements show major items only.

Notes: Amounts less than the unit expressed are omitted.These financial statements show major items only.

LIABILITIES

Total current liabilities

Total long-term liabilities

Total liabilities

NET ASSETS

Total shareholders’ equity

Total net assets

Total liabilities and net assets

15,693

15,796

31,490

48,768

49,730

81,221

17,017

14,986

32,004

50,381

52,047

84,051

Net sales

Cost of sales

Gross profit

Selling, general and administrative expenses

Operating income

Non-operating income

Non-operating expenses

Ordinary income

Extraordinary income

Extraordinary loss

Income before income taxes

Income taxes

Net income

56,577

44,354

12,223

10,765

1,457

1,074

607

1,925

3,850

39

5,736

694

5,041

65,188

49,962

15,225

11,757

3,468

876

490

3,853

54

75

3,831

1,290

2,541

Non-consolidated Financial Statements

KITZ Global Vision 2020 Slogan

Evolution to become a fully global company

Maximize corporate value by full globalization

Revitalization of our operations as a dynamic and conscientious group of companies

Develop global level business locations with composite functions of sales, marketing, engineering, stock, maintenance and service

Highly secured rate of profits and cash flow

Continuous development of our corporate value and social contributions by improving our values

to the customer, our employees’ quality of life and mutually beneficial business with our partners

Net sales

Operating income

Operating income ratio

Overseas sales ratio

Interest-bearing liabilities

Equity ratio

ROE (Return on equity)

250,000 million yen20,000 million yen

8.0%50%

24,000 million yen70%

7%

Establish a position as a global company by investing management resources efficiently into growing markets and by improving profitability as

a result of transformation in the business contents

Pursuance of quality in all business activity: Management, Development, Production, Sales

150,000

111,275120,000

130,000143,000

(Millions of yen)

(Millions of yen)

125,000

100,000

0

6,5587,200

8,900

11,600

(Millions of yen)

12,000

10,000

6,000

8,000

0

Net salesCost of sales

Gross profit

Selling, general and administrative expenses

Operating incomeNon-operating income

Non-operating expenses

Ordinary incomeExtraordinary income

Extraordinary loss

Income before income taxes and minority interestsIncome taxes

Income before minority interests

Minority interests

Net income

108,446

84,674

23,772

19,134

4,638

607

857

4,388

108

146

4,350

1,841

2,509

28

2,480

111,27585,07126,20319,645

6,558662698

6,52123

2076,3372,2624,075

354,039

Long-term Management Plan “KITZ Global Vision 2020”

Balance Sheets(Millions of yen)

Statements of Income

(Millions of yen)

FY2011(As of Mar. 31, 2012)

FY2012(As of Mar. 31, 2013)

Item

(Millions of yen)

Balance Sheets

FY2020 Numerical Targets (Consolidated Basis)

Basic Policy

Sales and Profits Plan (Consolidated Basis)

Consolidated Net Sales

(Millions of yen)Statements of Income

Statements of Cash Flows

Consolidated Operating Income

Total accumulated other comprehensive income

Total valuation and translation adjustments

(3,692) (1,151)

962 1,666

Note: Total amount of depreciation of tangible fixed assets for FY2012 was ¥39,140 million.

Note: Total amount of depreciation of tangible fixed assets for FY2012 was ¥64,710 million.

The KITZ Group formulated its “KITZ Global Vision 2020,” a Long-term Management Plan in May 2010.

Group Network

KITZ Corporation

Head Office1-10-1 Nakase, Mihama-ku, Chiba-shi, Chiba Pref. 261-8577, JapanTEL: +81-43-299-0111

Sales & Marketing Bases

Tokyo Office

Tokyo Sales Group No. 11-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1708

Tokyo Sales Group No. 21-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1709

Chiba Sales Group1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1706

Yokohama Sales GroupMeiji Yasuda Life Radio Nippon Building, 5-85Chojamachi, Naka-ku, Yokohama-shi,Kanagawa Pref. 231-0033, Japan TEL: +81-45-253-1095

Building Utility Product Group1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1710

Air Conditioning and Instrumentation Planning Group1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1746

Project Sales Group Tokyo Office1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1716

Hokkaido BranchHokkaido Sales Group12-1-25 Kita 14 Jo Higashi, Higashi-ku, Sapporo-shi, Hokkaido Pref. 065-0014, Japan TEL: +81-11-733-2225

Tohoku BranchTohoku Sales GroupAsahi Seimei Sendai Ichibancho Building, 2-7-17 Ichibancho, Aoba-ku, Sendai-shi, Miyagi Pref. 980-0811, Japan TEL: +81-22-224-5335 Water Supply Product Sales Group - TohokuAsahi Seimei Sendai Ichibancho Building, 2-7-17 Ichibancho, Aoba-ku, Sendai-shi, Miyagi Pref. 980-0811, Japan TEL: +81-22-224-5335

Head Office


Production Bases

Production, Sales & Marketing Bases

Others

Head Office


Production Bases

Production, Sales & Marketing Bases

Domestic Network

KITZ (Thailand) Ltd. (Thailand)426 Moo17 Bangna-Trad Rd., T. Bangsaothong A. Bangsaothong, Samutprakarn 10540, ThailandTEL: +66-2-315-3129~31(Manufacturing and sales of copper alloy valves and butterfly valves)

KITZ Corporation of Taiwan (Taiwan) 5-26 East Street, N.E.P.Z., Kaohsiung, Taiwan (R.O.C.)TEL: +886-7-361-1235(Manufacturing and sales of stainless steel and carbon steel valves and joints)

KITZ Corporation of Kunshan (China) No. 15 Taihu South Road Economic and Technology Development Zone, Kunshan, Jiangsu, P.R. China, 215300TEL: +86-512-5763-8181(Manufacturing and sales of stainless steel valves)

KITZ Corporation of Jiangsu Kunshan (China) No.188, Zhongyang Road, B Zone, Kunshan Comprehensive Free Trade Zone, Jiangsu Province, P.R. China, 215300TEL: +86-512-5771-6078(Manufacturing and sales of carbon steel valves)

KITZ Corporation of Shanghai (China)Room 2012-2017, No.369 KaiXuan Rd., Longemont Yes Tower, ChangNing District, Shanghai, P.R. China, 200051TEL: +86-21-6439-1249(Sales, marketing and distribution of valves)

KITZ Corporation of Lianyungang (China)No. 16 Yun Yang Road, Lianyungang Economic and Technical Development Zone, Jiangsu, Province, P.R. China, 222047TEL: +86-518-8236-6061(Manufacturing and sales of carbon steel valves)

KITZ SCT Corporation of Kunshan (China)8-3, No.3 Road, Export Processing A Zone, Kunshan, Jiangsu, P.R. China, 215300TEL: +86-512-5735-0700(Manufacturing and sales of valves and fittings for semiconductor production facilities)

U.S.A.

KITZ Corporation of America10750 Corporate Drive, Stafford, Texas 77477, U.S.A.TEL: +1-281-491-7333(Sales, marketing and distribution of valves)

KITZ SCT America Corporation 1183 Bordeaux Drive, Suite 15 Sunnyvale, California 94089, U.S.A.TEL: +1-408-747-5546(Sales, marketing and distribution of valves and fittings for semiconductor production facilities)

Europe

KITZ Corporation of Europe, S.A. (Spain)Ramon Vinas, 808930 Sant Adria de Besos Barcelona, SpainTEL: +34-9346-21408(Manufacturing and sales of stainless steel and carbon steel ball valves)

KITZ Europe GmbH (Germany)Siemensstraße 1, D-61130, Nidderau, GermanyTEL: +49-0-6187-928-100(Sales and marketing for Europe)

Perrin GmbH (Germany)Siemensstraße 1, D-61130, Nidderau, GermanyTEL: +49-0-6187-928-0(Manufacturing and sales of steel ball valves)

Overseas Network2 0 1 3

Domestic Network

Overseas Network

Group Network 2013

Kita-Kanto BranchKita-Kanto Sales GroupSakamoto-2 Building, 3-306-1, Miyaharacho, Kita-ku Saitama-shi, Saitama Pref. 331-0812, Japan TEL: +81-48-651-5260

Niigata Sales GroupMeiji Yasuda Life Niigataekiminami-2 Building, 1-1-54 Minamisasaguchi, Chuo-ku, Niigata-shi, Niigata Pref. 950-0912, Japan TEL: +81-25-243-3122

Chubu Office

Nagoya Sales Group No.148KT Building, 3-9-37 Meieki Nishi-ku, Nagoya-shi, Aichi Pref. 451-0045, JapanTEL: +81-52-562-1541

Nagoya Sales Group No.248KT Building, 3-9-37 Meieki Nishi-ku, Nagoya-shi, Aichi Pref. 451-0045, Japan TEL: +81-52-562-1541

Tokai Sales GroupSumitomo Life Shizuoka Tokiwacho Building, 2-13-1 Tokiwacho, Aoi-ku, Shizuoka-shi,Shizuoka Pref. 420-0034, JapanTEL: +81-54-273-7337

Hokuriku Sales GroupS.F Building, 4-7-14 Futakuchimachi, Toyama-shi, Toyama Pref. 939-8211, JapanTEL: +81-76-492-4685

Koshin Sales Group5125 Mosakubo, Kanazawa, Chino-shi, Nagano Pref. 391-0012, Japan (located in Chino Plant) TEL: +81-266-71-1441

Osaka Office

Osaka Sales Group No.1Osaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, JapanTEL: +81-6-6541-1178



Building Utility Product GroupOsaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, JapanTEL: +81-6-6541-1357

Air Conditioning and Instrumentation Planning GroupOsaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, JapanTEL: +81-6-6533-0350

Chugoku BranchHiroshima Sales GroupNBF Hiroshima Tatemachi Building, 2-27 Tatemachi, Naka-ku, Hiroshima-shi,Hiroshima Pref. 730-0032, JapanTEL: +81-82-248-5903

Okayama Sales GroupMitsui Life Okayama Building, 8-29 Saiwaicho, Kita-ku, Okayama-shi, Okayama Pref. 700-0903, JapanTEL: +81-86-226-1607

Kyushu BranchKyushu Sales GroupZS Fukuoka Building, 3-4-2 Higashihie, Hakata-ku, Fukuoka-shi, Fukuoka Pref. 812-0007, Japan TEL: +81-92-431-7877

Project Division

Project Sales Department1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1719

Project Engineering Department1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1767

Project Control Department1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1757

Water Supply Product Sales Department

Water Supply Product Sales Group No.11-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1760

Kita-Kanto OfficeSakamoto-2 Building, 3-306-1, Miyaharacho, Kita-ku Saitama-shi, Saitama Pref. 331-0812, Japan TEL: +81-48-651-5260

Yokohama OfficeMeiji Yasuda Life Radio Nippon Building, 5-85 Chojamachi, Naka-ku, Yokohama-shi,Kanagawa Pref. 231-0033, Japan TEL: +81-45-253-1095

Nishi-Tokyo OfficeALUB Tachikawa Building, 2-3-28, Nishikicho, Tachikawa-shi, Tokyo 190-0022, Japan TEL: +81-42-595-9241

Water Supply Product Sales Group - KansaiOsaka Glen Check Building, 1-34-15 Shinmachi, Nishi-ku, Osaka-shi, Osaka Pref. 550-0013, Japan TEL: +81-6-7636-1061

Market Development Department1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1741

International Sales Department

Area Sales – Asia & Middle East1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, JapanTEL: +81-43-299-1732

Area Sales – America & Europe1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1733

Production Bases and Training Center

Plants

KITZ Corporation Nagasaka Plant2040 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Pref. 408-8515, JapanTEL: +81-551-20-4100

KITZ Corporation Ina Plant7130 Higashiharuchika, Ina-shi, Nagano Pref. 399-4496, JapanTEL: +81-265-78-1111

KITZ Corporation Chino Plant5125 Mosakubo, Kanazawa, Chino-shi,Nagano Pref. 391-0012, JapanTEL: +81-266-82-0170

Training Center

KITZ Training Center3332-1239 Kamisasao Shinohara, Kobuchisawa-cho, Hokuto-shi, Yamanashi Pref. 408-0041, JapanTEL: +81-551-36-3971

KITZ Group

Toyo Valve Co., Ltd. TT-2 Building, 3-8-1 Nihombashi Ningyocho, Chuo-ku, Tokyo 103-0013, JapanTEL: +81-3-3249-5311(Sales of valves and system equipment)

Shimizu Alloy Mfg. Co., Ltd.928 Higashinonamicho, Hikone-shi, Shiga Pref. 522-0027, JapanTEL: +81-749-23-3131(Manufacturing and sales of water works valves)

KITZ SCT CorporationOmorieki Higashiguchi Building, 1-5-1 Omori kita Ota-ku, Tokyo 143-0016, JapanTEL: +81-3-6404-2171(Manufacturing and sales of valves and fittings for semiconductor production facilities)

Miyoshi Valve Co., Ltd.1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1734(Sales of valves for building utilities and freezing and refrigeration equipment)

YKV Corporation1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1773(Manufacturing, sales and services of control valves for various applications)

KITZ Engineering Service Co., Ltd.1-7-59 Akanehama, Narashino-shi, Chiba Pref. 275-0024, JapanTEL: +81-47-452-0585(Maintenance services for valves)

KITZ Micro Filter Corporation2983 Shiga, Suwa-shi, Nagano Pref.392-0012, JapanTEL: +81-266-52-0002(Manufacturing and sales of fluid separation products for filters and related products)

KITZ Metal Works Corporation7377 Kobayakawa, Miyagawa, Chino-shi, Nagano Pref. 391-8555, JapanTEL: +81-266-79-3030(Manufacturing and sales of copper and processed products)

India

KITZ Corporation (India Liaison Office)805 Meadows, Sahar Plaza, Off Andheri Kurla Road, Andheri East, Mumbai 400 059, India TEL: +91-22-40154202

U.A.E.

KITZ Corporation (Dubai Branch)6EA501 Dubai Airport Free Zone, P.O. Box 293545, Dubai-U.A.E. TEL: +971-(0)4-701-7524

KITZ Wellness Co., Ltd.1-10-1 Nakase, Mihama-ku, Chiba-shi,Chiba Pref. 261-8577, Japan TEL: +81-43-299-1795(Operation of comprehensive sports clubs)

Hotel Beniya Co., Ltd.2-7-21 Kogan-dori, Suwa-shi, Nagano Pref. 392-8577, JapanTEL: +81-266-57-1111(Operation of hotel and restaurants)

KITZ G&I Co., Ltd.2575 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Pref. 408-0021, JapanTEL: +81-551-32-5800(Insurance agency business and real estate buying and selling, brokerage and management)

KITZ Corporation supports the public interest

incorporated foundation Kitazawa Museum of

Art as a part of social contribution activities.

Kitazawa Museum of Art1-13-28 Kogan-dori, Suwa-shi, Nagano Pref.

392-0027, Japan

TEL: +81-266-58-6000

Asia

KITZ Corporation of Asia Pacific Pte. Ltd. (Singapore)No.22 Pioneer Crescent, #03-06 West Park BizCentral, Singapore 628556TEL: +65-6339-0350 (Sales, marketing and distribution of valves)

KITZ Valve & Actuation Singapore Pte. Ltd.(formerly Mikuni Engineering (Singapore) Pte. Ltd.)No.22 Pioneer Crescent, #03-06 West ParkBizCentral, Singapore 628556TEL: +65-6861-1833(Sales and maintenance of valves)

Nitta SC Plant

Liaison Offices, KITZ Corporation

KITZ Group

1.

KITZ Group companies aspire to become operations worthy of society’s confidence through the supply of environmentally friendly products and services and promotion of environment-responsive corporate activities.

2 0 1 3KITZ Group Environmental Report Digest

KITZ Group Principle of Environmental Activities

KITZ Group companies shall recognize environmental issues as an essential perspective of corporate management and every employee shall positively participate in the following activities.

Development and supply of environmentally friendly products and services

2. Effective use of resources

3. Promotion of reduction, reuse and recycle of waste

4. Prevention of environmental contamination

KITZ Group Companies: Environmental Action Policy

KITZ Corporation Environment Promotion Group

2040 Nagasaka Kamijo, Nagasakacho, Hokuto-shi, Yamanashi Prefecture 408-8515, JapanTEL: +81-551-20-4104 FAX: +81-551-20-4180Website: http://www.kitz.co.jp/english/about/environment.html

Targeted Scope of Report: Includes KITZ Corporation and seven domestic group companies

Target Period: Target period was FY2012 (April 1, 2012 ~ March 31, 2013) and the results for the period are reported, although some information after FY2012 has also been published.Policy and Standards for Collection and Reporting of Environmental Performance Information: In compliance with environment-related laws and regulations, the report is published in accordance with the “KITZ Group Environmental Philosophy,” the “KITZ Group Environmental

Terms in the report

KITZ

Gro

up

Dom

esti

c G

roup

Business sites

KITZ

Overseas

KITZ Corporation

Toyo Valve Co., Ltd.

Shimizu Alloy Mfg. Co., Ltd. Hikone Plant (Head Office)

Nitta SC Plant

Head Office Plant

7 sales bases 2 Sales Bases (Sapporo, Aomori)

Head Office, 3 sales bases

2 overseas bases

8 overseas bases


KITZ Micro Filter Corporation

KITZ Metal Works Corporation

KITZ Engineering Service Co., Ltd. Keihin, Kashima, Nagoya, Hanshin and Tokuyama

KITZ Wellness Co., Ltd.

Hotel Beniya Co., Ltd.

Overseas production andsales basesOverseas purchase andsales bases

Manufactures

Servicecompanies

Production Sales office Services

Scope of reportingNot subject to compilation

Head Office, Nagasaka Plant, Ina Plant and Chino Plant

Head Office Plant (including Koshin Sales Office)

Training Center, 13 sales bases

Kansai Distribution Center (former Kyoto Brass Co., Ltd.) Targeted since July 2009

Ayase, Fujisawa, Kanazawabunko, Makuhari, Hiratsuka, Kitamatsudo, Minamikashiwa, Chigasaki, Kozunomori, Nagareyama Otakanomori , Sendai, Minamifuruya, Mito, Nisshin, Omori and Inagekaigan (Acupuncture Clinic)

Hotel, Kiseki-no-Yu, Shops and Restaurants in Tobu Yunomaru, Suwako Service Area

Tokyo Sales Office and Industrial Filter Sales Office are included in Toyo Valve Head OfficeOsaka Sales Office is included in KITZ Osaka Sales Office

Head Office, 9 sales bases. Koshin Sales Office within KITZ Corporation Chino Plant is included.

Kanto Sales Office is included in KITZ Head OfficeChubu Sales Office is included in KITZ Chubu OfficeKansai Sales Office is included in KITZ Osaka Sales Office

Sutama (contracted operation), Nenoshiroishi (contracted operation) and Kurikoma (contracted operation)

Calculation Standards (Results in FY2012)

Environmentalperformance index

INPU

T

Unit

Total energy input amount

Raw materialsinput amount

Use amount of water

GJ

GJ

Ton

m3

Ton

Calculation method

OU

TPU

T

Carb

on d

ioxi

de (C

O₂ )

em

issi

on a

mou

nts

Waste

CO2 emitted from the energy used in business activities (t)

* List of calculation method and emission coefficients in the calculation, report and publication system under the Law to Promote Global Warming Countermeasures

Bunker A: 2.76 kg-CO2/L Kerosene: 2.49 kg-CO2/L Light Oil: 2.60 kg-CO2/L

LPG: 3.00 kg-CO2/kgCity Gas: 2.23 kg-CO2/m3

Tokyo/Osaka/Tobu Gas: 2.29 kg-CO2/m3

Cold/Hot Water: 0.057 kg-CO2/MJ Gasoline: 2.32 kg-CO2/L

Bushu Gas: 2.23 kg-CO2/m3

Kita Gas: 2.36 kg-CO2/m3

Final disposed amount: consigned waste amount (t) x final disposal rate *(%)* General Waste: 11.3% quoted from the Ministry of the Environment, “Status of Discharge and Disposal of General Waste, etc. (Results in fiscal 2011)” Industrial Waste: figures obtained from intermediate waste disposal service responses

Dust amount (t) = dust density (g/m3N) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 10-6

SOx (t) = sulfur oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 64/22.4 x 10-9

NOx (t) = nitrogen oxide density (ppm) x dry exhaust gas amount per unit hour (m3N/h) x annual operation hours (h/year) x 46/22.4 x 10-9

Electric power (kg-CO2/kWh)

Tokyo Electric Power Company, Incorporated: 0.464

Kansai Electric Power Company Co., Ltd.: 0.450

Hokuriku Electric Power Company, Incorporated: 0.641

Chubu Electric Power Co., Inc.: 0.518

Chugoku Electric Power Co., Inc.: 0.657

Hokkaido Electric Power Co., Inc.: 0.485

Kyushu Electric Power Co., Inc.: 0.525Tohoku Electric Power Co., Inc.: 0.547

Business activities

Energy amount consumed in business activities (GJ)

Amount of cold and hot water, the heat source, accepted from local cooling and heating system for ventilation use at KITZ Head Office Building (Makuhari New City, Chiba)

Annual use amount of raw materials directly used for manufacturing of products (t)

Annual use amount of clean water and underground water (m3)

* Source: Energy supply and demand results in 2011(final) (published on April 12, 2013) Resources and Energy Agency

Electricity: 3.6MJ/kWh Bunker A: 39.8 MJ/L Kerosene: 36.7MJ/L Light Oil: 38.0 MJ/L LPG: 50.8MJ/kg City Gas: 44.8 MJ/m3 Gasoline: 34.6MJ/L

∑[Each energy annual use amount x each unit calorific value] x 10-3

Action Guidelines,” the “KITZ Group Environment, Safety and Health Performance Data Calculation Guidelines” and other environment-related internal regulations.Referenced Guidelines:The Ministry of the Environment, Environmental Report Guidelines (2007 Edition)The Ministry of the Environment, Environmental Accounting Guidelines (2005 Edition)Published: June 2013Next publication: June 2014 (to be issued every year)

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Strengthening Overseas Environmental Management

The KITZ Group formulated its “KITZ Global Vision 2020,” a Long-term Management

Plan, and places promotion of environment-responsive business operations as a

major item for strengthening its business foundations. In the Environmental

Mid-Term Plan, we set out a target for all 15 production bases in Japan and

overseas to acquiring ISO 14001 certification, and two overseas production bases

acquired ISO 14001 certification by May 2012. We will continue to promote a

systematic approach to the acquisition of certification and make efforts toward

establishment of global environmental management.

At the KITZ Group, each business office sets out environmental targets based

on ISO 14001 and is building a management system that implements

environmental activities. As a result of acquisition this year, a total of six overseas

companies acquired ISO 14001 certification. Domestic production bases

completed acquisition of ISO 14001 certification in FY2006.

KITZ Corporation Nagasaka Plant

KITZ Corporation Ina Plant

KITZ Corporation Chino Plant

KITZ Metal Works Corporation

KITZ Micro Filter Corporation


Shimizu Alloy Mfg. Co., Ltd.

Toyo Valve Co., Ltd. Koshin Sales Office

Name of business office

Date of acquisition

(1) KITZ Corporation of Taiwan

(2) KITZ (Thailand) Ltd. Bangplee Plant

(3) KITZ Corporation of Kunshan

(4) KITZ Corporation of Jiangsu Kunshan

(5) KITZ (Thailand) Ltd. Amatanakorn Plant

(6) KITZ Corporation of Europe, S.A.

November 2000

December 2010

December 2010

April 2011

February 2012

May 2012

Name of business office

China(3) (4)

Taiwan(1)

Thailand(2) (5)

Spain(6)

KITZ Group Environmental Report Digest 2013

Preparations for obtaining ISO 14001 certification began in the

middle of 2011. Checks and improvements to recycling

processes have already been performed and we are measuring

the emission of particulate matter into the atmosphere in

accordance with existing environmental laws. At the same

time, we have also introduced education for employees to

raise their environmental awareness. Additionally, we have

prepared necessary documents, procedure manuals and

transcript ledgers and the Quality Control and Manufacturing

departments have worked in concert to build an environment

management system. At the end of 2011, each rebuilt system

underwent provisional certification inspection and acquired

certification after undergoing the actual inspection in

February 2012.

Prior to the introduction of the environmental manage-

ment system, employees already had a high level of environ-

mental awareness, and eight years ago we began using

specialized separate containers for such waste as paper,

cardboard and packaging vinyl. Also, we appropriately

commission the disposal of wooden boxes to recycling

companies. We separately store and reutilize reusable packag-

ing materials (pallets, wooden boxes, packaging vinyl,

plywood, packaging styrene foam) for raw materials and

components that are delivered by business partners.

At present, we carry out activities for separating wastewa-

ter from cutting waste oil and recycling the cutting waste oil to

reduce the amount of

usage. Moreover, we are

addressing environmen-

tal issues that arise during

the coating process.

KITZ Corporation of Europe, S.A.

Main business: Manufacturing and sales of stainless steel and carbon steel ball valves

Examples of Practical Implementation of Environmental Management by an Overseas Group Company

Business Offices That Have Acquired Integrated ISO 14001 Certification

Status of Acquisition of ISO 14001 Certification (Overseas)

Targets of Environmental Issues in Long-Range Management Projections

Environmental Management Agenda Needed to Accomplish Targets

1. Enhancement of Environmental Management System

2. Reduction in Environmental Impact

3. Compliance with Environment-Related Laws and Regulations

Items to control:

Enhancement of corporate business infrastructure(Group-wide environment-responsive management)

Enhancing management system

Risk prevention Cost reductionBalanced

CO₂ emissions

Forcused subject

Enhancement of

Environmental

Management

System

1. Strengthening environmental management system

2. Establishment of a recycling-oriented society

3. Reduce hazardous chemical substances

4. Prevent global warming

5. Visualization of environmental risk and responses

Legal compliance

Sales consumption units 0.29t/¥100 million

Sales consumption units 620.72GJ/¥100 million

Sales consumption units 58.89t-CO2/¥100 million

(*) KITZ and domestic group companies (except for sales offices)

0.32t/¥100 million (*)

631.57GJ/¥100 million (*)

66.15t-CO2/¥100 million (*)

Reduction in

Environmental

Impact

Compliance with

Environment-

Related Laws

and Regulations

Actions planned Target for FY2012 Results in FY2012

Environmental Target and Results in FY2012

Environmental Data

We introduced “promotion of Group environment-responsive business operations” in the First Mid-term Management Plan (FY2010 – FY2012) to promoted environmental activities.

Energy Consumption Amount (GJ)

(Base Year) FY2005

FY2010 FY2011 FY2012

(Base Year) FY2005

FY2010 FY2011 FY2012

(Base Year) FY2005

FY2010 FY2011 FY2012

Sales Consumption Units (GJ/Sales (¥100 million))

Energy Consumption (GJ)

800,000

600,000

200,000

0

600

450

400,000 300

150

0

513,307 498,935

225,742

8,196

191,228

7,332

191,690

6,122

511,945 519,427

Industrial Waste Amounts (t)

Manufacturers (except for sales offices)

Consumption units at manufacturers (except for sales offices)

(t)

Sales Output (t/Sales (¥100 million))

Discharge of Industrial Waste (ton) Consumption of PRTR Target Chemicals (tons of top 5 items)

15,000

10,000

5,000

0

12

8

4

0

8,974

9.858.16 8.47 8.58

7,951

1,984

1,513

708

486

38492 6 112 97 01

8,526 8,843

CO2 Emission Amounts (t-CO2)

Lead

Manganese

Chrome

Nickel (metal)

Chrome oxide

Sales Output (t-CO2/Sales (¥100 million))

CO2 Emission (ton- CO2)

100,000

75,000

50,000

25,000

0

60

45

30

15

0

47,752

52.4 53.3 53.057.9

51,964

16,325

654

13,446574

53,304

14,805512

59,674

0 500 1,000 1,500 2,000

* PRTR target substances, for which annual handling amounts are less than 1t and content is less than 1%, are also compiled.

We aim to promote environment-responsive business operations across our entire groupwhile simultaneously pursuing risk prevention and cost reduction

The KITZ Group has designated “Group-wide promotion of environmentally conscious management” as one measure for strengthening

our business foundation to realize our slogan “Evolution to become a fully global company,” which is articulated in the KITZ Global Vision

2020, a Long-term Management Plan. Based on this, we have set three targets of “Enhancement of Environmental Management System,”

“Reduction in Environmental Impact” and “Compliance with Environment-Related Laws and Regulations.”

We have completed certification for ISO 14001 at all our production plants (seven locations) in Japan and will now expand efforts for obtaining

ISO 14001 certification to our overseas bases. We will strive to complete the acquisition of ISO 14001 certification in the near future at all

overseas manufacturing bases with the aim of building an environment management system as a truly global company.

The KITZ Group will work in unison to undertake environment-responsive management to attain these three targets based on its policy of

achieving a balance between risk prevention and cost reduction.

(1) Change to integrated ISO 14001

(7 domestic bases).

(2) Implement environmental results management at overseas production bases (energy, waste materials, others).

(1) Building the basic structure for group-wide environmental management system

Enhanced structure for gathering information about law revisions and made responses.

Established management system for PCB waste materials at the KITZ Group in Japan

Responded to revised Water Quality Pollution Control Act. Completed survey of current situation as well as of response preparations.

Completed disposal of 72 units of high-concentration PCB.

(1) Acquired integrated ISO 14001 cretification in October 2012.

(2) KITZ Corporation of Taiwan begins environmental results operation. To be sequentially deployed at KITZ (Thailand) Ltd., KITZ Corporation of Kunshan, KITZ Corporation of Jiangsu Kunshan.

563.2511.9 508.8 504.3

Enhancement of Environmental Management System

We have set the target of reducing consumption of energy and water used for our business activities and reducing the discharge of carbon

dioxide, industrial waste and chemical pollutants from our business operations. We will effectively use finite resources while extensively

eliminating waste to reduce environmental impacts in terms of total volume and basic units.

Reduction in Environmental Impact

Besides complying with various environment-related laws and regulations for addressing environmental problems amid a tightening of

restrictions worldwide, including in Japan, Europe, Asia and the United States, we also engage in activities to eliminate all environmental risk

associated with our business activities.

Industrial waste discharge

Water consumption

Streamlining action processes Reducing environmentallyhazardous substances

Group activities

Application of management system

Building the basic structure

Cultivation of human resources

Visualization

Combating global warming

Common issues (handling waste and water)

Care for local communities

Prevention of future risk issues

Energy consumption

Final disposal of waste

Discharge of PRTR target chemicals

Compliance with Environment-Related Laws and Regulations



Sales consumption units 1,030.58 m3/¥100 million

8.31t/¥100 million (*)

0.41t/¥100 million (*)

991.43 m3/¥100 million (*)

Service companies (data compiled from FY2008)

Sales offices of manufacturers (data compiled from FY2009)

(1) Reducing discharged waste

(2) Reducing finally disposed waste

(3) Reducing consumed water resource

(4) Reducing discharged PRTR Class-1 chemicals

(5) Reducing energy consumption

(6) Reducing CO2 emission

ISO 14001 certification and control of environmental issues for overseas manufacturing operations

KITZ Group Environmental Report Digest 2013

Category Category Numerical targets (Unit) Results inFY2011

Results inFY2012

FY2012 lessFY2011

Main actions

Details of effects Amount

Capitalinvestment

Expenditures

Cost for premises

Pollution control

Global environmentprotection

Resourcecirculation

59,506

100,361

215

6,467

Total costs Costs for environmental conservation Total operationcosts (A)

Total capital investment

Total R&D expenditures

4,069,033

1,588,876

1.6% against total operation cost (A)

6.3% against total operation cost (A)

Earned from recycling waste and used products

Saved by energy saving activities

Reduced recycling expenditures

Saved by waste reduction

Consumed totalenergies (GJ)

Consumed PRTRmaterials (ton)

Consumed undergroundwater (m3)

Consumed cleanwater (m3)

Greenhouse gasemission (ton-CO2)

Discharged or displacedchemicals (ton)

Discharged total waste(ton)

519,427

5,091

135,938

408,660

59,674

358

9,063

511,945

4,702

130,255

447,931

53,304

327

8,724

7,482

389

5,683

(39,270)

6,371

31

339

352,988

14,342

164,257

(2,150)

529,437

Product recycling

Administrative duties

Research anddevelopment

Social activities

Damaged environmentrecovery

Other costs

TotalProfits

Savedexpenditures

Total

(Thousand of yen)

(Thousands of yen)

Environmental Accounting in FY2012

Overall Image of Environmental Impact

Scope of compilation is KITZ Corporation (Head Office, Nagasaka, Ina, Chino), KITZ Metal Works Corporation, KITZ Micro Filter Corporation, KITZ SCT Corporation and Shimizu Alloy Mfg. Co., Ltd.

Effects related with input resources

Effects related with output waste and pollutants

INPUT in FY2012

KITZ GROUP

Major Energies Manufacturers

ElectricityPurchased electric power Solar power generationCity gasBunker ALPGKeroseneCold and hot water

(1,000 kWh)(1,000 kWh)

(1,000 m3)(kl)(t)

(kl)(GJ)

97,1474811

1,0041,777

7103,374

(Sales offices)

411

1927

Servicecompanies

15,264

2,345351181158

1,343

Water

Clean waterUnderground water

(1,000 m3)(1,000 m3)

136409

2 213359

Main Raw Materials Manufacturers

LeadNickelManganeseChromeCopperZinc

(t)(t)(t)(t)(t)(t)

(t)(t)(t)

1,984485

1,513708

39,67820,289

Main Auxiliary Materials

Sand for cores and castingsPaint and thinnerOil solution

6,064199208

OUTPUT in FY2012

Emission in Air

Development and Design Procurement Production Logistics Sales

Manufacturers

CO2

DustNOxSOx

Industrial wasteNon-industrial wasteValuable substancesFinal disposal

AirWastePublic water

(t)(t)(t)(t)

(t)(t)(t)(t)

59,6744.56.44.9

(Sales offices)

512

Servicecompanies

14,8050.37.9

10.8

Discharge of Waste Manufacturers

8,843220

6,474427

(Sales offices)

02

Servicecompanies

97200

4640

Discharge of PRTRTarget Chemicals

(t)(t)(t)

732850.1

Both CO2 emissions and waste discharge amount in FY2012 have been on the rise compared with the previous fiscal year.

Conversely, the amount of water resource use has significantly decreased due to a review of facilities. We will continue to make

concerted efforts as a Group to engage in activities to reduce environmental impact.

Environmental performance points

Environmental Conservation Costs Environmental Conservation Effects

Economic Effects of Environmental Conservation Activities

Bre

akd

ow

n

Introduction, purchasing and maintenance of facilities

Introduction of facilities and equipment

Reduction, recycling and outsourced disposal of waste

Collection and recycling of used goods

ISO-related works, environmental measurement and disclosure of environmental information

Development of lead-free and other environmentally friendly products

Promotion of greening activities

Purification of underground water

-

64,199

484

681,436

64,199

54,954

7,045

2,200

-

-

-

-

-

501,178

212,069

65,940

223,169

13,225

Documents

Management Structure and Corporate Data 2013 · Type Test Certification of Special Equipment (CHINA) Vender Registration Certificate JIS product certification (JIS B 2011 Bronze,