LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
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.
(Structural Reform for Growth)
Simplify & Strengthen Balance Sheet
Core earnings margin 7.5%
Establish management process that enables profitable and sustainable growth
Net debt-to-EBITDA ratio of 3.5 times or below
Provide a stable foundation to support mid- to long-term growth
The Medium Term Plan (MTP) announced in 2017 outlines the actions LIXIL will take across its global organization, setting the company on track to achieve long-term sustainable growth.
Establish a purpose-driven entrepreneurial company
Develop attractive and differentiated products
Achieve competitive costing
Drive growth through strategic marketing
Building on the progress made under our MTP, we have outlined our new management direction. We call this the LIXIL Playbook and it is a continuation of the fundamentals laid out in the MTP. The LIXIL Playbook covers four strategic initiatives, as well as a foundation based on empowering our people for sustainable growth.
Our future depends on having a lean and efficient organization that can respond quickly to market needs. To accomplish this, we are moving away from peripheral businesses, eliminating layers of management and optimizing core businesses to capitalize on growth opportunities.
As we take advantage of our global opportunities, Japan is the critical financial engine to power our growth. Despite the broader trends of a shrinking population, we believe Japan can be a center of profitability.
With our leading brands such as INAX, GROHE, and American Standard, and with a presence across key geographies and markets, LIXIL International provides a strong platform for global growth. We are focused on new market opportunities, improving internal synergies and expanding our product lineup.
At LIXIL, we are deploying our current resources in order to be ready for the changing global market. Applying Three Box Solutions thinking, our executives are focused on managing innovations for the present while creating the future.
To do so, we have embraced a common language across LIXIL to talk about innovation to see how we can re-invent our business for longterm growth.
Our employees are at the center of everything we do and are also the vital element in our ability to transform the organization. Through our measures, we can turn everyone in the organization into an agent of change.
GLOBAL PEOPLE ORGANIZATION STRATEGY
Breaking from our older, established ways of human capital management, we have a new vision to create a more empowered, inclusive community of people at LIXIL – proud of what we do and innovative with how we do it.
Our rapid digitalization is transforming our business, answering new consumer needs, and enhancing productivity and employee engagement. Digitalization is about more than a set of tools, it is at the core of our transformation.