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.
Success in the Japan market is critical to the company’s future. To tackle the challenges of a shrinking population and a decline in new home construction, we have implemented strategies to make our business more agile, resilient and profitable.
An unparalleled portfolio of brands, agile manufacturing capability, and innovation continue to drive LIXIL’s global growth. With a clear strategy in place, we are well-positioned to grow sustainably in international markets.
Innovation in products and services is a vital input to delivering long-term growth. Through our entrepreneurial spirit, we foster new avenues to discovery.
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 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.
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.