LIXIL ANNUAL
REPORT 2018
About LIXIL: | Features: | Results: | Commitments: |
Business Platforms | Design-Led Thinking to | Financial to | CR to |
to People | Sustainable Growth | Operational | Governance |
2 | 16 | 50 | 70 |
Every person on the planet dreams of a better home. LIXIL makes that possible with pioneering water and housing products.
A better home is made up of surprisingly simple things: baths to escape in after a long day, kitchens that unleash creativity, toilets that provide cleanliness and comfort, doors and windows that connect you with the world outside, showers and faucets to experience water in new ways, and interiors and exteriors that bring spaces to life.
LIXIL makes better homes a reality for everyone, everywhere. It makes things that matter to all sorts of different people, to the many communities it is part of, and to sustainably support the world around it. LIXIL is proud that its products touch the lives of more than a billion people every day, but believes it has the potential to still do so much more.
Contents
About LIXIL
Regional Platforms 2
Brand Portfolio 4
Value Creation Process 6
Conversation with the CEO: Kinya Seto 8
Executive Officers and 12 Global Business Board
Features
LIXIL's People: Purpose-Driven and 16 Entrepreneurial
Design-Led Innovation 24
Everything for the Consumer 30
Pursuing Global Competitiveness 38
Beyond the Medium-Term Plan 44
Results
Financial Highlights 50
CFO Message 52
Review and Analysis of Operating Results 54 and Financial Position
Review of Operations 60
Commitments
Corporate Responsibility 70
Corporate Governance 80
Internal Control Systems and Compliance 94
Measures against Risks that May Influence 97 Management Strategy
Consolidated 10-Year Summary 98
Reporting Items
Business Risks 100
Principal Group Companies 104
Investor Relations 106
External Recognition 106
LIXIL's History 107
Shareholder Information 108
Corporate Data 109
Regional Platforms
LIXIL is globally organized into regional platforms.
With all key business functions present in each of its regions, LIXIL has the agility to best serve individual markets, while enabling it to work collaboratively worldwide.
Asia Pacific
Americas
Japan is LIXIL's largest market, where it draws on over 100 years of experience and techno-logical development to help make the better home a reality. From bathrooms to kitchens, interiors to exteriors, and from a nationwide retail network to housing services, LIXIL provides consumers in Japan with the entire spectrum of housing products and services. But Japan is also the most advanced of the world's aging populations, where demand for new and high-quality solutions is especially high. This is bringing unprecedented change in market dynamics, making Japan a focus for LIXIL's technological innovation and a base from where technology is transferred to LIXIL's global brands.
Across LIXIL's global operations, the Asia Pacific region embodies the true spirit of
LIXIL - global, multi-brand, multi-portfolio, and multi-cultural. From water and housing prod-ucts through to the presence of all of LIXIL's global brands, nowhere is the range of LIXIL's product lines, brands, and business models more diverse and present outside of Japan. Active in 23 of the world's fastest growing mar-kets, including in China, Vietnam, Thailand, Indonesia, and India, LIXIL is today leveraging its broad portfolio to truly tailor its approaches - from brick and mortar to digital - to target each consumer group, making the home solu-tions experience easy, enjoyable, and of true value to the consumer.
Generations of families across the US have grown up with the American Standard brand at the heart of their homes. LIXIL Americas has grown since then, now also encompassing iconic and premium water technology brands GROHE and DXV across its operations in the US, Canada, and Mexico. Having strength-ened its manufacturing and supply network, LIXIL Americas is today focused on becoming a consumer-centric organization in the world's largest consumer market, investing further in developing first-class insights and analytics, new and innovative digital content, and de-livering premium solutions through its three brands.
LIXIL is active in every country in Europe and is growing its presence in the Middle East and North Africa through a single, focused, and powerful point of entry: GROHE, the world's leading brand in sanitary fittings. Known for its design ethos, GROHE is today innovating the "digitalization of water," while leveraging technological synergies to roll out new product lines, from shower toilets to ceramic basins, providing consumers with the full suite of bath-room products. In Sub-Saharan Africa, LIXIL Africa is today expanding its lineup of products through global brands such as GROHE and homegrown brands like COBRA.
Revenue: ¥1,296.9 billion
Revenue: ¥115.9 billion
Revenue: ¥143.1 billion
Revenue: ¥145.6 billion
Number of Factories: 43
Number of Factories: 31
Number of Factories: 11
Number of Factories: 8
CO2 Emissions (Scope 1+2): 464,051 t-CO2 CO2 Emissions (Scope 1+2): 349,140 t-CO2
Number of Employees: 35,452
Number of Employees: 19,373
CO2 Emissions (Scope 1+2): 323,831 t-CO2 Number of Employees: 6,308
CO2 Emissions (Scope 1+2): 64,249 t-CO2 Number of Employees: 5,741
* Overseas revenues are shown before the elimination of transactions within and among segments.
Brand Portfolio
LIXIL is made up of many individual product brands, each helping to make better homes a reality for everyone, everywhere.
Global Specialty
Global
INAX provides products combining Japanese thoughtfulness with tech-nology developed over the years as a pioneering manufacturer of bathroom and sanitary fixtures, tiles, and build-ing materials.
GROHE provides innovative water products for every aspect of the bathroom and the kitchen, offering exceptional customer experiences, all from a single, reliable source.
American Standard innovates and creates products that improve everyday living and raise the standard of health, safety, and beauty in and around the bathroom and the kitchen.
KAWASHIMA SELKON provides textile products and services that inspire and delight customers around the world, all while constantly reimagining cultures to enrich society.
COBRA, a homegrown brand that has become part of life in South Africa, offers water products that leave a lasting impression.
DXV elevates the everyday by offering meticulously crafted kitchen and bathroom collections that reimagine the most influential design movements of the past 150 years.
JAXSON offers exquisitely designed and high-quality bathtubs, providing the satisfaction and joy of the ultimate comfortable bathing experience.
SATO brings innovative, simple, desirable yet affordable sanitation solutions to consumers in areas without access to water and sewerage infrastructure.
TOSTEM delivers doors and windows with thoroughly polished designs and technologies, adding a new level of comfort and satisfaction to the home.
LIXIL provides a spectrum of products, from bathrooms and kitchens to exteriors, for all homes.
LIXIL brings together some of the most trusted brands in the industry.
Japan
RICHELLE is a kitchen brand offering technologies that make things easier for the consumer, all while providing attractive and coordinated design that makes cooking ever more enjoyable.
SPAGE offers refined, stylish bathrooms that provide the "ultimate indulgence," utilizing technological expertise in mastering the shape and flow of water.
INTERIO offers the joy of finding and coordinating interiors that match personal changing tastes and preferences, for those who want to always be true to their inner self.
EXSIOR provides products that extend the living room experience into garden spaces, where people can be themselves and enjoy a delightful time surrounded by nature.
SUPER WALL provides healthy, comfortable, and safe living through a construction method for homes which uses high thermal insulation panels.
ASAHI TOSTEM coordinates a large range of exteriors to match a person's tastes and personality, enhancing their lifestyle in their homes.
LIXIL SUZUKI keeps cities and buildings beautiful through its fireproof and smoke-proof shutters for buildings, as well as lightweight shutters for storefronts and garages.
Value Creation Process
LIXIL's Capital
How LIXIL Creates Value
The Value LIXIL Creates
Underpinned by strong corporate governance, LIXIL's business model will drive it toward long-term sustainable growth and value creation for all of its stakeholders.
Corporate Philosophy
Employees 65,000+ people working around the world
The Group's superior products and services contribute to improving people's comfort and lifestyles
Employees 55% "strongly agree" or "agree"
that they are proud to be part of LIXIL; the top two responses out of six in an employee survey
Brands
Medium-Term Plan
Portfolio of 17 industry-leading product brands and six retail and housing services brands
- Establish a purpose-driven, entrepreneurial company for sustainable growth
Brands
- Develop attractive and differentiated products
LIXIL products are used by more than a billion people every day
Intellectual Property ¥27.6 billion invested in R&D
- Achieve competitive costing
Intellectual Property
- Strategic marketing to drive growth
Almost 1,000 utility and design patent applications generated and filed worldwide
Financial Capital ¥616.9 billion in capital and ¥687.9 billion in interest-bearing debt
LIXIL Behaviors
- Do the Right Thing
Financial Capital
- Work with Respect
- Experiment and Learn
Core earnings ratio of 4.5% and ROE of 9.4% in FYE2018
Natural Capital 22.5 million GJ of energy and 18.1 million m3 of water used
Corporate Responsibility (CR) Strategy
Natural Capital
Global Sanitation & Hygiene Promote and enable access to safe and hygienic sanitation
Manufacturing Assets
Emitted 0.72 t-CO2 per ¥1 million of revenue, an increase of 0.16% from the previous fiscal year
Capital investment of
¥68.4 billion
Water Conservation & Environmental Sustainability
Social Engagement Over ¥680 million in social investments and community contributions
Conserve water, energy, and other natural resources utilized by LIXIL products and services
Manufacturing Assets 93 factories globally
Diversity & Inclusion Embrace the diversity of people in society and within LIXIL
Social Engagement
Over 52 projects related to the three strategic pillars of the Company's CR strategy
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Disclaimer
LIXIL Group Corporation published this content on 27 August 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 August 2018 06:46:04 UTC