Management Direction

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At LIXIL, we are working to become an agile and entrepreneurial company that can achieve sustainable competitiveness and growth in order to fulfill our corporate purpose of making better homes a reality for everyone, everywhere.

To achieve this, we are taking steps to transform our operations, including optimizing our business portfolio to accelerate growth and strengthen our finances, actively managing our core businesses to enhance productivity and efficiency, driving synergies to create new growth, and strengthening governance to build trust and manage risk.

LIXIL PLAYBOOK

LIXIL has formulated the LIXIL Playbook as a roadmap (management direction) for achieving medium- to long-term targets in 2021. LIXIL is steadily implementing the strategies in the Playbook to enhance its competitive advantages and transform into a highly profitable company.

These initiatives require us to respond flexibly to changes in the rapidly evolving business environment of recent years by allocating resources appropriately and at the right time.

LIXIL therefore announces the execution of strategies in accordance with the Playbook as a discrete plan for every fiscal year, and conducts reviews to measure progress and confirm validity.

The Playbook is an evolving document. As our operating environment continues to rapidly change, we have updated our LIXIL Playbook in 2023 to ensure we stay on course to becoming a sustainable company. Today, we are focused on five key strategic initiatives.

* With regard to the “Divest Non-Core Businesses and Simplify Organization” initiative set out in the Playbook formulated in 2021, we have implemented divesting non-core assets and simplifying our overly complex corporate structure. For more information on this initiative, please refer to the Integrated Report 2021.

TACKLE INFLATION AND SUPPLY CHAIN CHALLENGES

Supply constraints and the resulting inflationary pressures have proven to be among the most challenging external factors. As we saw over the past year, rising cost and supply volatility affect every stage of LIXIL’s business, from procurement, manufacturing, and delivery, to retail pricing and the level of consumer demand. The Company’s response has therefore been equally multifaceted.

TACKLE INFLATION AND SUPPLY CHAIN CHALLENGES

OPTIMIZE JAPAN AND DRIVE NEW GROWTH

We have worked to improve the profitability of the Japan business by bringing down fixed costs while implementing price optimization. To achieve sustainable growth and increase profitability, we will focus on capturing the growing demand for home renovations and further strengthening our organizational structure.

OPTIMIZE JAPAN AND DRIVE NEW GROWTH

GROW GLOBAL WATER BUSINESS

The international water business has been focusing on enhancing operational efficiency and accelerating the rollout of differentiated products and services through our global brand portfolio. We are also uniquely placed to tackle the growing problem of ensuring access to clean drinking water and proper sanitation for everyone.

GROW GLOBAL WATER BUSINESS

EMBED ROBUST ENVIRONMENT STRATEGY

In response to the increased urgency around environmental issues including climate change, LIXIL is addressing these issues not only as part of its responsibility as a global company but also an integral part of its business strategy. We actively strive to tackle these challenges, aiming to achieve sustainable growth and create value.

EMBED ROBUST ENVIRONMENT STRATEGY

DEVELOP NEW CORE

To ensure long-term success, establishing and growing innovative new businesses is an important part of the LIXIL Playbook. This approach is built on the concept that we must have the entrepreneurial mindset today to see what kind of businesses we can create in 10 years. We must also balance the funding needed for these new businesses of the future with our current capital requirements.

DEVELOP NEW CORE

FEATURES

GLOBAL PEOPLE STRATEGY

At LIXIL, we believe that our employees are the driving force behind value creation, and have positioned talent development as one of our long-term priorities. Through our development processes, we focus on training next-generation leaders and employees with the right capabilities to meet our future business needs.

GLOBAL PEOPLE STRATEGY

DIGITAL TRANSFORMATION

COVID-19 has created a seismic shift in the global business environment. To respond in an agile and flexible way, LIXIL has accelerated its digital transformation. We are becoming a more consumer-centric organization, transforming existing businesses, developing new businesses, and improving productivity.

DIGITAL TRANSFORMATION

INTELLECTUAL PROPERTY STRATEGY

We support our business units by acquiring intellectual property assets and managing their intellectual property portfolios. In doing so, we enhance the execution of management strategies, and contribute to the sustainable competitiveness of the company, which are key components of the IP Division’s mission.

INTELLECTUAL PROPERTY STRATEGY

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