Business Risks

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This website contains information about business conditions, the financial situation, and other factors that may influence investor decisions. Forward-looking statements are based on the judgments of the LIXIL group of companies’ management as of March 2020.
Statements concerning the future and assumptions are subject to uncertainty and risks, and actual results may vary significantly.

Principal Risks and Countermeasures

In order to achieve our business objectives, we regularly identify, assess and monitor risks according to group-wide standards. This enables us to better understand the nature of the world we operate in and make better informed management decisions, ensuring we continue to generate value for our stakeholders.

The LIXIL group regularly monitors strategic and operational risks and implements countermeasures at all levels of the business in order to manage them. In addition, the Audit Committee monitors whether effective measures are being taken to address high-priority risks through participation in the Board of Directors and other committees.

Business Risk (FYE2020 Report)
- Risks related to Novel coronavirus
[Strategic risk] [Cross-business Risk] (1) Risks related to changes in the economic Environment
(2) Risks related to fluctuations in exchange rates and interest rates
(3) Risks related to the development of new products
(4) Risks related to the supply of raw materials
(5) Environmental risk
(6) Risks related to business restructuring
(7) Risks related to the acquisition and development of human resources and the promotion of diversity
(8) Risks related to the capacity of facilities
(9) Risks related to tie-ups with other companies and corporate acquisitions
[Business-specific Risk] LWT* (10) Risks related to sales channels
(11) Brand risk
LHT* (12) Risks related to competition with competitors and product prices
LBT* (13) Risks related to long-term contracts
[Operational Risk] (14) Risks related to disasters, accidents and infectious diseases
(15) Risks related to information security
(16) Risks related to litigation and other legal proceedings
(17) Risks related to product liability and claims
(18) Recoverability risk of deferred tax assets

* LWT:LIXIL Water Technology , LHT:LIXIL Housing Technology , LBT:LIXIL Building Technology

For a full description of the LIXIL group's strategic and operational risks and countermeasures, please refer to the PDF.

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