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 FYE2021. 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. The updated Playbook is built around four stages of strategic direction: Focus, Transform, Grow and Innovate.

Progress on the Key Initiatives of the LIXIL Playbook

Focus
・Divest Non-core Businesses and Simplify Organization

We saw that the first critical step was to divest non-core businesses that distracted us from our most promising areas for growth, and to simplify the corporate structure. These have been largely completed, allowing us to move on to the next important areas.

Transform
・Tackle inflation and supply chain challenges

A new area of emphasis is addressing inflation and supply chain. We are optimizing procurement and production to different regions due to duties, higher freight costs, and longer lead-times.

Grow
・Optimize the business in Japan and drive new growth
・Grow Global Water Business

For the Housing Technology Japan business, with the support of government subsidies, sales of insulating products to conserve energy have shown solid growth, becoming an important driver of Japan revenue. For the Water Technology Japan business, we cater to the growing number of Japanese households seeking to renovate their homes. For the international business, we are accelerating structural reforms to improve profitability.

Innovate
・Embed Robust Environment Strategy
・Develop New Core

By weaving our environmental strategy into our core operations and placing a heightened focus on innovation, we aim to establish new game-changing technologies, products, and business models. The lineup of environmentally friendly products and solutions is expanding on schedule and is making a positive difference in both our profitability and our social and environmental impact.

Progress on the Key Initiatives of the LIXIL Playbook

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 (PDF: 7.9MB, P.36) >

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 (DX) (PDF: 7.9MB, P.40) >

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 (PDF: 7.9MB, P.42) >