LIXIL GROUP PROFILE

2016 –17

©Daniele Domenicali
 To be the world’s most valued, innovative and trusted
living technology company

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Team members engaged in discussion during a planning session for the new SPAGE bathroom system
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Message from the President & CEO

Kinya Seto
Director, Representative Executive Officer,
President & Chief Executive Officer,
LIXIL Group Corporation

Generating New Value with a Stronger,

More Streamlined Structure
Over the past five years, LIXIL Group Corporation has accomplished
significant transformation.
Establishing a network that now stretches across more than 150 countries
and regions, and cultivating a corporate culture that embraces and nurtures
workplace diversity, the LIXIL Group has succeeded in becoming a truly
global corporation.
Pursuing further growth, the LIXIL Group is focused on maximizing its
internal synergies while creating a structure that generates new value by
quickly responding to shifting market needs.

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Creating an environment that instills pride
in employees
The fiscal year ended March 2016 was another
period of significant change, including my own
entrance into the company. Ultimately, what I want to
achieve at LIXIL is simple: to create an environment
where our employees can enjoy their work and feel
proud of what we do as a company. This may sound
unusual coming from the CEO of a large profit-making
company. However, I truly believe that this is the
most important goal for any corporate leader, and
that if our employees can take great pride and feel
strongly motivated about their work, then other
benefits and gains will very quickly follow. Employees
who enjoy coming to work, and who experience a
culture of respect, trust and friendship within LIXIL,
will naturally be in a stronger position to contribute to
our customers, consumers, business partners and
the community.
Utilizing manufacturing expertise and
product development capabilities
The LIXIL Group’s success or failure in the future will
depend on our ability to succeed as a manufacturer,
which is where our core competencies as a company
lie. We must clearly understand the needs of our
customers and consumers, and apply our expertise
and capabilities as a manufacturer to better serve
these needs. This starts in Japan, which remains our
largest and most important single market.
To better leverage LIXIL’s core strengths as a
manufacturer, we must bring a more consistent focus
throughout the full product life cycle, from research
and development to manufacturing and through
marketing and sales, while also incorporating feedback
from customers and consumers back into the R&D
process. To support these sales and marketing efforts,
and to drive more engagement with consumers, we
must also place a stronger emphasis on developing
LIXIL’s equity as a consumer and product brand,
rather than merely a business-to-business play
focused on distributors.
Growth in the Japanese home renovation market
remains unsatisfactory due to a lack of such initiatives
focusing on the consumer. This renovation market
holds great potential due to the rise in awareness
around energy efficiency in the home and a growing
preference for “aging in place” against the
background of a graying society. In the fiscal year
ended March 2016, domestic sales of LIXIL’s
renovation products rose 9% year-on-year to reach
JPY304.3 billion. However, even greater opportunities
exist if we can stimulate growth of the overall market.
Between April and July 2016, we held the LIXIL
Renovation Fair 2016 in six locations throughout the
country, including Tokyo, Osaka and Nagoya. These
large-scale events enabled us to demonstrate
installation work along with the latest products.
Heightened consumer interest in renovation was
evident, with participant numbers exceeding
expectations at every venue.
LIXIL has also expanded its range of “One Day
Reform” products, which drastically reduce installation
times. The extensive renovation lineup now includes
entrance doors, windows and other products that can
be easily installed in a single day. We believe this
reduction in installation time will become a major
driving force in stimulating market growth.
Generating greater value through an
enhanced structure
Over the past several years, the LIXIL Group has
sought growth through M&A; the next step is to focus
on integrating the Group’s new additions, improve
governance and maximize synergies.
Specifically, we will seek to utilize our existing
business assets to enhance value, both in Japan and
Our Chubu region flagship showroom, LIXIL Showroom Nagoya, opened in April 2016,
offering customers comprehensive and friendly renovation advice
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 able to develop the GROHE Sensia Arena, a shower
toilet that is tailored to European specifications.
Moving forward, we will increase the pace of global
sanitary ware sales expansion, predominantly in the
major markets of Europe and North America under
GROHE and American Standard Brands, utilizing
LIXIL’s unique Triple Vortex and Aqua Ceramic
technologies and spa-toilet range.

Toward a stronger,
more streamlined structure
The GROHE Sensia Arena, a shower toilet designed to European specifications utilizing
LIXIL’s Japanese market know-how As we shift to a new stage of the LIXIL Group’s
evolution, an immediate goal—and one we are already
implementing—is to improve management efficiency.
across the world, leading to stable growth. We will also This in turn will create a platform for us to similarly
generate significant added value by constructing improve operational efficiencies across the LIXIL Group.
globally unified, efficient manufacturing systems and By taking the types of measures that I have
supply chains, and strengthening integration across mentioned to create a simpler and more nimble
areas such as technology, R&D and marketing. organization, we are ensuring that the LIXIL Group is
One example of these initiatives is the utilization in a better position to respond quickly to consumer
of know-how cultivated by LIXIL in the Japanese needs and emerging opportunities. At the same time,
market to build a stable supply chain to support we are creating an organization that enables improved
expanded sales of GROHE brand sanitary ware management oversight, compliance and governance
products in Europe for the fiscal year ending March and thus is equipped to meet today’s complex global
2017. By combining LIXIL’s advanced technology and regulatory and market environment. It is a LIXIL that is
GROHE’s expertise in the European market, we were positioned to deliver value.

Legaris, the world’s first high-performance five-layer glass window, brings together LIXIL’s manufacturing techniques to achieve wall-like thermal insulation without sacrificing clarity

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 LIXIL CORE (Corporate Philosophy)
The Group’s superior products and services contribute to improving
people’s comfort and lifestyles.

Our Values
LIXIL is united by a set of shared values:

Work with Respect

As a global company, we strive for open and honest communication with everyone, internally and externally.
We value diversity and respect people from different backgrounds and treat everyone equally with meritocracy.
We always act with unquestioned integrity.

Deliver on Commitment
We “act like owners” to create value for everyone that touches our business.
We set ambitious targets, which we are committed to achieving.
We are accountable for decisions, actions and results.

Embrace Quality
We are committed to having our customers enjoy a positive experience in every aspect when interacting with us.
We are committed to the highest quality products and solutions.
We take a Kaizen approach to continuously improving our knowledge, products and processes.

Inspire Passion
We dare to dream big and seek to transform ourselves, our industry and customers’ experiences.
We push ourselves to stretch beyond our commitments to exceed expectations.
We pursue excellence in everything we do and reward a “Can-do” attitude.

Pursue Growth
We strive for growth and innovation.
We consistently invest in the growth of our leaders and their teams.
We are willing to embrace change and risk with speed in a thoughtful, informed and appropriate way.

Corporate Culture of LIXIL

LIXIL Diversity Declaration
The corporate culture of LIXIL is marked by a commitment to become a company that utilizes energy and
innovation generated by diversity for its businesses. We also aim to create an environment where people are always
looking forward and will achieve better results by continuously clearing self-imposed hurdles.

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Respect Diversity

We will welcome differences among

genders, ages, races, cultures,
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Provide Equal Opportunity

We will provide equal opportunities

and occasions to anyone that tries
3
Implement Meritocracy

We will fairly evaluate how much

nationalities, beliefs, and
backgrounds. Energy and creativity
generated by open and passionate
discussion can be used as a source
of competitiveness.
one puts “LIXIL VALUES” into
to demonstrate a positive and practice and how much one
proactive attitude, regardless of performs.
background.

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 Businesses and Principal Group Companies of the
LIXIL Group
Holding Company Business Area

Water Technology
Bathroom and kitchen fixtures
Sanitary ware, spa-toilets, water faucets, washstands, bathtubs,
unit bathrooms, kitchen systems, washstand fixtures,
washstand cabinet units, decorative tiles, etc.

Housing Technology
Metal building materials
Housing window sashes, entrance doors, various types of
shutters, gates, carports, banisters, high railings, tide barriers,
smoke insulated screens, etc.
Wooden interior furnishing materials
Window frames, wooden furnishing materials, interior
decorative materials, etc.
Building Materials
and Housing Other building materials
Siding, stone materials, roofing materials, etc.
Equipment Business
Interior fabrics
Curtains, etc.
Other
Solar photovoltaic systems

Building Technology
Metal building materials
Curtain walls, building sashes, store facades

LIXIL Group Corporation

Kitchen Technology
Kitchen
Kitchen systems

Distribution and Home centers

Retail Business Household products, DIY products, building materials, etc.

Housing solution businesses

Developing homebuilding franchise chains, construction on
order, housing defect warranty liability insurance services,
ground inspections and improvements, etc.
Real estate
Housing Services Comprehensive real estate services (brokerage, management, etc.)
Business Development of real estate franchises
Nursing home business
Nursing homes
Financial services business
Housing loans

Other Business Services for Group companies

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The LIXIL Group is a corporate group consisting of LIXIL Group Corporation (pure holding company) and operating companies led
by the holding company. The Group is involved in a broad spectrum of housing-related businesses ranging from the manufacture
and sales of building materials and housing equipment to the operation of home centers and a network of homebuilding franchises,
in addition to offering comprehensive real estate services.

Operating Company

LIXIL WATER TECHNOLOGY

Dinaone Corporation
JAXSON CORP
GROHE Group S.à r.l. (Luxembourg)
American Standard Brands (USA)
A-S China Plumbing Products Ltd. (China)
LIXIL Vietnam Corporation (Vietnam)
LIXIL BUILDING MATERIALS MANUFACTURING (Suzhou) CORPORATION (China)
LIXIL Sanitary Fitting Manufacturing (Suzhou) Corporation (China)

LIXIL HOUSING TECHNOLOGY

Kawashima Selkon Textiles Co., Ltd.
Asahi Tostem Exterior Building Materials Co., Ltd.
LIXIL ENERGY Co., Ltd.
LIXIL INTERNATIONAL Pte. Ltd. (Singapore)
TOSTEM THAI Co., Ltd. (Thailand)
LIXIL Manufacturing (Dalian) Corporation (China)
LIXIL GLOBAL MANUFACTURING VIETNAM Co., Ltd. (Vietnam)
LG-TOSTEM BM Co., Ltd. (South Korea)
LIXIL Corporation
LIXIL BUILDING TECHNOLOGY
PERMASTEELISA GROUP (Italy)

LIXIL KITCHEN TECHNOLOGY

LIXIL-Haier Housing Products (Qingdao) Co., Ltd. (China)

LIXIL JAPAN COMPANY

LIXIL Total Service Corporation
LIXIL Total Hanbai Corporation
G TERIOR Corporation
LIXIL RENEWAL Corporation
LIXIL SUZUKI SHUTTER CORPORATION
LIXIL Toyo Sash Shoji Co., Ltd.
TM.S Corporation
Kuwata Corporation
Oita Tostem Corporation
Nishikyushu Tostem Corporation

LIXIL VIVA CORPORATION

LIXIL Housing Research Institute, Ltd.

Japan Home Shield Corporation JHS Engineering Corporation
LIXIL Living Solution Corporation LIXIL REALTY, Corp. LIXIL ERA Japan, Corp.

JIO Corporation

LIXIL Home Finance Corporation

LIXIL Group Finance Corporation

*The total number of LIXIL Group companies: 324 (including the above, as of March 2016)

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 Major Subsidiaries
LIXIL Corporation
A global leader in the building materials and housing
equipment industry, contributing to enhanced lifestyles
LIXIL Corporation is a global leader in housing and building
materials products and services. The foundation of LIXIL’s
success is our constant investment in technological innovation
to improve the way we live. Delivering core strengths in water,
housing, building and kitchen technologies, our brands,
including LIXIL, GROHE, American Standard Brands and
Permasteelisa, are leaders in the industries and regions in
which they operate. LIXIL produces some of the world’s most
fundamental and innovative products and services, and our
solutions are an integral part of some of the world’s most
iconic and cutting-edge living and working spaces. Operating
in more than 150 countries, we bring together function,
quality and design to make people’s lives better and more
delightful—wherever they are.
Established: October 2001
Business activities: Manufacture and sale of building materials
and housing equipment as well as
related services
Registered office: 2-1-1 Ojima, Koto-ku, Tokyo 136-8535
Head office: 36F, Kasumigaseki Building, 3-2-5 Kasumigaseki,
Chiyoda-ku, Tokyo 100-6036, Japan
Website: www.lixil.com
LIXIL’s comprehensive range of living solutions
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LIXIL WATER TECHNOLOGY
GROHE
Leading the market for faucets and fittings
all over the world
The German-based GROHE is the world’s leading provider of
sanitary fittings. Promoting its strong engineering and quality
performance, refined and numerously awarded design
capabilities and strong sustainability efforts, GROHE has
expanded to over 150 countries, offering high-quality lineups
mainly to high-end luxury markets. All products are designed
and engineered to contribute to a perfect water experience
—“Pure Freude an Wasser.” The GROHE product range
comprises everything from aesthetically appealing designer
faucets for bathrooms and kitchens to luxurious shower
systems equipped with ingeniously safe thermostats as well as
intelligent control shower toilet systems and smart installation
and flushing systems.
Established: 1948
Business activities: Manufacture, sale of bathroom and kitchen
fittings, shower heads and shower systems,
automatic fittings for the commercial and
public sectors, installation and flushing
systems and shower toilets, and ceramics
Address: Feldmühleplatz 15, 40545 Düsseldorf, Germany
Website: www.grohe.com/en/
GROHE’s stylish, high-quality products
LIXIL WATER TECHNOLOGY
American Standard Brands
Integrating ASB’s strong brands and network with
LIXIL’s technologies
American Standard Brands (ASB) is one of the largest primary
housing equipment bath and kitchen manufacturers in North
America, making and marketing kitchen and bathroom
products for residential and commercial use in the U.S.,
Canada and Mexico. The company has built a solid presence
particularly in the U.S. and Canada, where their sanitary wares
and plumbing fixtures, faucets and accessories can be found
in approximately 65% of households. Operating for over 140
years, the company has expanded its business under multiple
brands, including American Standard and DXV, winning the
trust of a wide range of partners and consumers.
Joining the LIXIL Group in 2013, ASB has taken a new step to
offer greater customer value by integrating LIXIL’s proven
capabilities in quality assurance, manufacturing technology
and product development with its extensive sales networks.
Established: 1872
Business activities: Manufacture and sale of, toilets, sinks, e-bidets,
integrated shower toilets, faucets, showers,
bathtubs, urinals and accessories
Main address: One Centennial Avenue, Piscataway, NJ 08854, USA
Website: www.americanstandard.com
ASB’s broad range of kitchen/bathroom fixtures marketed in North America
LIXIL BUILDING TECHNOLOGY
PERMASTEELISA GROUP
Providing outstanding solutions through the designing
and building of architectural envelopes, interiors and
complex forms
Permasteelisa Group is a worldwide leading contractor for
engineering, project management, manufacturing and
installation of architectural envelopes and interior systems.
The Group’s mission is to create the world’s top-class
contemporary architectural works, using its strength in
designing and building innovative and avant-garde
structures and employing advanced technologies and
eco-sustainable solutions.
Originally incorporated in 1973 in Italy, during ’80s and ’90s
the Group started an international expansion in the Australian,
European, Asian and US markets.
In December 2011 Permasteelisa Group joined the LIXIL Group.
Established: 1973
Business activities: Engineering, project management,
manufacture and installation of architectural
envelopes and interior systems
Main address: Viale E. Mattei, 21/23-31029 Vittorio Veneto,
Treviso, Italy
Website: www.permasteelisagroup.com
Venezia Tessera Airport ©Daniele Domenicali
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 The LIXIL Group’s Cultural Activities www.lixil.co.jp/corporate/csr/culture

Housing and building is an essential part of human culture. As a business operator in this sector, the LIXIL Group conducts a
variety of living and lifestyle-themed cultural activities, contributing to local communities and wider society. Our efforts include
preservation of local treasures and inventions, conservation of valuable cultural assets and support for education on this theme, as
well as exhibition and publication activities aimed at promoting diverse or new aspects of living.

LIXIL Museum
The LIXIL Museum was established in 2012 to showcase the history of the LIXIL Group through an
exploration of products and technologies that were developed by group companies. The museum
consists of three sections: The Museum zone hosts permanent exhibitions, including image and video
presentations, to introduce past activities such as each company’s pioneering development efforts
and brand stories along with the Group’s history, as well as new exhibition events. The Library zone
houses archive materials, LIXIL Publication works, and the latest housing-related publications. The
museum’s newest addition is the Housing Safety zone, launched in 2013. It provides advice on the
appropriate long-term use of LIXIL products, displaying examples of faulty work with the intention of
preventing the potential for damage or harm. This project aims to enhance customer communication
as well as facilitate deeper understanding and shared awareness within the Group.

Address: LIXIL WING Bld., 2-1-1 Ojima, Koto-ku, Tokyo 136-8535

Website: www.lixil.co.jp/corporate/csr/culture/shiryokan.htm (Japanese only)

LIXIL Gallery, LIXIL Publication, LIXIL Book Gallery

Since its establishment in 1981 in Tokyo’s Ginza shopping district, the LIXIL Gallery has organized a
number of serialized exhibitions. These include projects that explore architecture and related activities
under themes selected to introduce new ideas and values associated with housing and lifestyle; the
Future of Creation exhibition directed by architects and art directors; and pottery shows that focus on
the relationships between art and life. In addition, the gallery embarked on publishing activities in
1986, focusing on architecture and related topics, including exhibition brochures and the works of
contemporary young architects. As part of this initiative, the LIXIL Book Gallery was opened in 1988
as a specialized bookstore that offers a unique selection of titles on architecture and interior design.

Address: LIXIL:GINZA, 3-6-18 Kyobashi, Chuo-ku, Tokyo 104-0031

Website: www1.lixil.co.jp/gallery/english

INAX MUSEUMS
INAX MUSEUMS is a museum complex consisting of six facilities designed to promote clay and
ceramics as well as display premier craftsmanship, mainly by providing hands-on classes and
interactive exhibitions. The museum commenced public activities in 1986 with the opening of Kiln
Plaza. It expanded with the new Tile Museum and Tiling Workshop before the grand opening of the
collective INAX MUSEUMS in 2006 when Clay Works and Tiling Labo joined the complex. In April
2012, the Architectural Terracotta Museum was newly opened to exhibit its broad collection of
Japanese modern-age building terracotta ornamentations. In 2013, INAX MUSEUMS was awarded a
prize by the Architectural Institute of Japan for its long-term efforts in collecting and preserving these
historical ceramic building materials. While displaying a unique collection of historical ceramics and
related structures, the museum has geared up its activities by hosting new exhibitions and workshops.

Address: 1-130 Okueicho, Tokoname, Aichi 479-8586

Website: www1.lixil.co.jp/ilm/english

Textile Museum (Kawashima Selkon Textiles)

The Textile Museum was Japan’s first corporate museum, founded in 1889, when the country’s
modern museum projects were still in their infancy, and was recognized by the first chancellor of the
national museum. Since its establishment, the museum has been collecting a multitude of textiles
and related materials from Japan and abroad, and currently owns a huge collection consisting of
around 160,000 items. The precious repository contains roughly 80,000 items of dyed woven
fabric and 20,000 ancient documents that have been produced in many parts of the world along
with 60,000 pieces of the company’s textile prototypes and design drawings. The museum is
also expanding activities through collaborations with other organizations and participation in
academic projects.

Address: 265 Ichihara-cho, Shizuichi, Sakyo-ku, Kyoto 601-1123

Website: www.kawashimaselkon.co.jp/bunkakan (Japanese only)

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Corporate Responsibility (CR) at the LIXIL Group www.lixil.com/en/sustainability

At LIXIL, we believe that our living spaces—the environment where we live, work and play—are critical to our daily lives and wellbeing.
Based on this belief, we are committed to ensuring that the growth of our businesses contributes to improving the quality of
people’s lives by delivering safe and comfortable products and services through responsible and sustainable innovations, which are
pursued utilizing our expertise in a broad range of business areas.

Corporate Responsibility (CR) Strategy

LIXIL’s Corporate Responsibility (CR) activities are promoted with a focus on three themes, as described below, which have been selected for
the two principal objectives: making a positive impact in the communities in which we operate and addressing issues that require urgent action.
Specific projects are planned and implemented by our core water, housing, building and kitchen technology business units, leveraging their
business scale and expertise.
In addition, our CR activities relate to a broad range of themes, from ethical business conduct and operations through corporate governance
and respect for human rights to stakeholder engagement. Through these efforts, we will contribute to the sustainable development of society at
large and the planet.

Our Corporate Responsibility Mission

To be the most trusted company by enhancing living spaces through innovative, responsible engagements and initiatives around the world

Global Sanitation & Hygiene
Promote and enable access to safe and
hygienic sanitation practices, especially
for women and girls, while preventing
the harmful transmission of diseases
for children
Water Conservation &
Environmental Sustainability
Conserve water, energy, and other natural
resources utilized in and by LIXIL
products and services, including in the
supply chain, production, distribution and
during end use
Diversity & Inclusion
● Enhance quality of life and wellbeing
for the elderly and the physically disabled
through LIXIL products and services
● Harness the intelligence and perspectives
of our diverse workforce as an engine for
growth and innovation

“100 Million People” “Net Zero” “Embrace the diversity of people

By 2020, improve the livelihood of By 2030, achieve a net zero balance between in society and within LIXIL”
100 million people through sanitation and LIXIL’s environmental footprint and the positive
hygiene solutions environmental contributions created through
our products and services

● Promote research and development of
products that actively contribute to resolving
sanitation issues
● Create a business that improves sanitation
facilities in developing countries around
the world
● Design products and services with ● Create more inclusive products, particularly to
consideration to lifecycle impacts and support the elderly and people with disabilities
environmental efficiencies, and increase the ● Implement internal diversity initiatives around
sales share of this product portfolio the world
● Lower the environmental burden of the overall
business process by improving energy
and water efficiencies and resource recycling

The LIXIL Group has launched projects to
offer safe and hygienic toilets in
developing countries, aiming to improve
sanitary conditions, particularly for
females, and reduce risks of children
being infected with potentially fatal
transmitted diseases.
Originally developed by American
Standard Brands, the Sato (derived from
“Safe Toilet”) series of products has been
introduced in developing countries, with
more than one million units as of July
2016, contributing to improved sanitation
for five million people.
The LIXIL Group considers environmental
conservation an important management
theme. As a lifestyle-related technology
company, it promotes strategies to
contribute in this area by offering
environmentally conscious products
and services.
We will continue pursuing technological
innovations that can facilitate our
sustainability efforts, setting a goal of
achieving a net zero balance for our
entire supply chain between
environmental impacts of business
operations and environmental
contributions made by offering products
and services with low-carbon, water-
saving, and other environmental features.
In Japan, where the LIXIL Group is
headquartered, a rapidly graying
population is giving rise to various social
issues. Seeking to offer solutions to these
issues, we promote R&D efforts to deliver
products and services aimed at
increasing housing safety for and
wellbeing of the elderly and the disabled.
The Group also promotes workforce
diversity, viewing it as essential to foster a
dynamic, inspiring corporate culture,
which is essential for increasing corporate
strength. We implement initiatives to
ensure that individual employees are
given equal opportunities to demonstrate
their skills and knowledge irrespective of
their personal traits and background,
including gender. This serves as a strong
engine for growth and innovation.

13
 Company Profile

Overview of the Holding Company

Name: LIXIL GROUP CORPORATION Board of Directors Executive Officers
(* Outside directors)
Registered office: 2-1-1 Ojima, Koto-ku, Tokyo 136-8535
Head office: 36F, Kasumigaseki Building, 3-2-5 Yoichiro Ushioda President and CEO: Kinya Seto
Kasumigaseki, Chiyoda-ku, Tokyo 100-6036 Kinya Seto Representative Executive Officer and Vice President: Ryuichi Kawamoto
Established: September 19, 1949 Yoshizumi Kanamori Executive Officer and Vice President: Yosuke Yagi
Employees: Consolidated: 58,889 as of end of Yoshinobu Kikuchi Executive Officer and Vice President: Sachio Matsumoto
March 2016 Ryuichi Kawamoto Executive Officer and Vice President: Toshimasa Iue
Capital stock: ¥68,121 million Toshimasa Iue Executive Officer and Vice President: Haruo Shirai
Fiscal year closing: March 31 Keiichiro Ina Executive Officer and Senior Managing Director: Laurence W. Bates
Shares outstanding: 313,054,255 Hidehiko Sato* Executive Officer and Senior Managing Director: Jin Song Montesano
Business activities: Tsutomu Kawaguchi*
The control and management of the domestic and
overseas companies operating housing-related Main Kohda*
businesses and urban environment-related businesses, Barbara Judge*
through acquisition and holding of stocks or Hirokazu Yamanashi*
ownership interests

Financial Highlights
Management indicators Sales breakdown by segment
Distribution and Housing Services Net sales
Net sales and Recurring
(left axis) recurring profi
profit (right axis) t
(consolidated) (JGAAP)
Retail Business Business
(¥ billion) (¥ billion)
10.0 % and
Distribution
Distribution and Housing 3.3 %
Services
Housing Services Net Net
1,800 salessales
(left(left
axis)axis) Recurring profit
Recurring (right
profit axis)axis) 140
(right
Fiscal year ended March 2016 (¥ million)
Retail Business Business
Retail Business Business
1,600
(¥ billion)
(¥ billion) (¥ billion)
(¥120
billion)
Net sales 1,845,117 10.0
LIXIL
10.0
Kitchen
% % 3.3
LIXIL
3.3
% %
Water 1,800
1,800
1,400 140140
Operating income 56,259 Technology Technology 100
1,600
1,600
1,200 120120
Recurring profit 48,421 LIXILLIXIL
Net sales
LIXILLIXIL
6.0 %
Kitchen
Kitchen 31.1 %
Water
Water 1,400
1,400
1,000 80
Net income -18,664 100100
Technology
Technology ¥1,845.1 billion Technology
Technology
1,200
1,200
800 60
Total assets 2,060,873 6.06.0
% % NetNet
sales
sales 31.1
31.1
% % 80 80
1,000
1,000
600
Net assets 637,517 ¥1,845.1 billion
¥1,845.1 billion 40
LIXIL LIXIL 800800
400 60 60
Equity ratio 26.4%
Building Housing 600600 20
Technology Technology 200 40 40
Dividends per share ¥60 400 0
LIXILLIXIL LIXILLIXIL 0400
Number of subsidiaries 175 18.4
Building%
Building 31.2 %
Housing
Housing 2012 2013 2014 2015 2016 20 20
Technology Technology 200200
Number of equity method affiliates 6 Technology Technology (Fiscal years ended March 31)
0 0 0 0
18.4
18.4
% % 31.2
31.2
% % 2012
20122013
20132014
20142015
20152016
2016
(Fiscal years
(Fiscal ended
years March
ended 31) 31)
March

Corporate Governance Structure

Under the leadership of LIXIL Group General Meeting of Shareholders
Appointment
Appointment

Corporation, a pure holding company, and Dismissal

LIXIL Group Corporation General Meeting of Shareholder Nomination
General Meeting of Shareholder
Group operating companies work in of Director
etc.

Board ofAppointment
Directors
Appointment
Appointment

Candidates
Appointment

and and
(Internal Dismissal
Outside)
cooperation as independent partners in and Dismissal
Committee,

LIXILLIXIL
Group
Group Chairman of the Board
Corporation
Corporation Nomination Committee
Supervision

Determination
Determination
Appointment and Dismissal of Director
etc.

of Director
Company with Nominating Committee, etc.

order to produce superior results as a Appointment and Dismissal Board of Directors Compensation
of Directors
Board Committee
Candidates
Candidates
(Outside directors
form the majority)
Board ofofDirectors (Internal and and
(Internal Outside)
Outside)
Committee,

Chairman
Chairman the
of Board
the Board Report Nomination
Audit Committee
Committee
executionExecution Supervision

group. The LIXIL Group works to create Nomination Committee

Supervision

(Decision making and supervision) Appointment and Dismissal

Appointment and Dismissal
with Nomination

Appointment and Dismissal

Appointment and Dismissal Compensation Committee(Outside
Committee
Compensation directors
(Outside directors
Internal Audit
Accounting Auditors (Collaborate with Internal Audit

Appointment
and provide value for all stakeholders, Board of
Board Directors
of Directors
and Dismissal Report Compliance audit
form form
Compliance audit
the majority)
the majority)
Audit

Report AuditAudit
Committee
Committee
(Decision-making and supervision of business execution) Report Validation audit
divisions)

(Decision-making and supervision of business execution) Validation audit

thereby earning and maintaining the trust
auditDivision)
Committee and Internal Audit Division)
with Nominating

Appointment
Representative Executive Officers and Executive Officers
Appointment
of society. In this context, we define and(Decide on matters delegated by the Board ofCompliance
Dismissal auditexecute
Compliance Compliance
audit business) auditaudit
Compliance
Audit

and Dismissal
Audit

Directors and
Report
ReportValidation auditaudit
Validation Validation auditaudit
Validation
Financial Auditors (Collaborate with

Executive Officers’ Meetings and Various Committees

Company

internalAudit

corporate governance as one of our most

Business execution

Representative
RepresentativeExecutive Officers
Executive and
Officers Executive
and Officers
Executive Officers
Business Business

Internal Audit Committee, Compliance Committee, Risk Management Committee,

(Decide on matters
Investment
(Decide on delegated
Strategy Council,
matters by the
delegated byBoard
Investment of Directors,
andBoard
the Loan Council, andBusiness
New
of Directors, execute
and business)
Council,
execute business)
important management themes. *Corporate Responsibility
andInternal

Business Divestment Council, and CR* Committee

Executive Officers
Executive Meeting
Officers andand
Meeting Various Committees
Various Committees
Company

To strengthen corporate governance, the Investment

Internal
Strategy
Investment
AuditAudit
Internal
Council,
Strategy
Committee,
Investment
Council,
Compliance
Committee,
and Loan
Investment
Committee,
Management
Compliance
Council,
andSupervision
Loan
Risk Management
Committee,
New Business
Council,
Committee,
Risk Management
Deliberation
New Business
Committee,
(Acquisition)
Deliberation Council,
(Acquisition) Council,
Committeeand

Business Withdrawal
Business Deliberation
Withdrawal Council,
Deliberation CR Committee
Council, CR Committee
Group has established an appropriate Operating Companies
Auditors and others
with Audit Committees,Company

Committee

Management
General Meeting of Shareholders
Management
structure and developed a range of
with Audit and

Supervision
Supervision
Operating Companies Audit and Supervisory Committee /
Operating Companies
measures to expedite decision-making,
Accounting

Company Auditors
CompanyAuditors/

Auditors/

Audit

General Meeting
General of Shareholders
Meeting of Shareholders
Board of Directors
and

Company with Audit and

Committee

Supervisory Committee

ensure effective and efficient business

Company

Corporate Auditors/
Corporate Auditors/
Company with Corporate
CompanySupervisory
Corporate

Management Meeting AuditAudit

and and
Supervisory Committee
Supervisory Committee MemberMember
Audit

execution, and enhance internal control.

Audit

Note:This structure applies only to operating companies

Divisions
Supervisory

Board of Directors
withwith

Board of Directors (LIXIL Corporation and other subsidiaries) in Japan

Management Meetings,
Management etc. etc.
Meetings,
Company

14 Divisions
Divisions (Model for operating
(Model companies
for operating in Japan)
companies in Japan)
History
1843: Company founder Jimbei Kawashima launches a fabrics store,
the predecessor of Kawashima Selkon Textiles Co., Ltd.
1875: Standard Manufacturing, the predecessor of American Standard,
is founded to produce cast-iron water closets, washstands and bathtubs.
1900
1919: The founder of INAX provides technology advice on the production of
exterior tiles for the Imperial Hotel building designed by Frank Lloyd Wright.
1923: Takejiro Ushioda sets up the Myokenya store, the predecessor of
Previous main wing of Imperial Hotel Tostem Corporation, to launch a wooden fittings retail business.
1924: Ina Seito Co., Ltd., the predecessor of INAX, is founded by
Chozaburo Ina to manufacture tiles, earthenware pipes and terracotta.
1936: Chugai Seiko Co., Ltd., the predecessor of SUNWAVE CORPORATION,
is founded by Ryozo Yoshizaki.
1936: GROHE is founded by Friedrich Grohe,
acquiring Berkenhoff & Paschedag.
1945: INAX launches production of ceramic sanitary ware.
1949: Nihon Tategu Kogyo Co., Ltd. (later Tostem Corporation;
currently LIXIL Group Corporation) is founded by Kenjiro Ushioda.
1950
1956: SUNWAVE develops Japan’s first mass production technology
for high-quality, low-priced stainless steel sinks.
1958: INAX launches production of FRP bathtubs.
1960: American Standard launches a new-type (push-pull) faucet.
1967: INAX launches the first made-in-Japan shower toilet.
1968: Tostem and Shin Nikkei undertake Japan’s first super high-rise
curtain wall project for the Kasumigaseki Building.
1971: Tostem launches a new aluminum window sash designed to prevent
rainwater seepage and allow easier cleaning.
1973: Permasteelisa is founded in Italy (original name: Isa).
1974: Toyo Exterior Co., Ltd. is established.
1984: Shin Nikkei Co., Ltd. is established.
1988: TOEX launches Japan’s first full-open/full-close glass-paneled
“garden room.”
2001: Tostem Corporation is renamed Tostem Inax Holding Corporation,
2000
and becomes a pure holding company.
Tostem Corporation (currently LIXIL Corporation), an operating company,
is established through a corporate separation.
Inax Corporation joins the Group.
2001: INAX launches tankless flush toilets.
2004: Tostem Inax Holding Corporation is renamed JS Group Corporation.
2005: SUNWAVE’s kitchen systems receive a Red Dot Design Award.
2007: INAX and Tostem develop a bathroom drainage system designed
to significantly increase cleaning functionality.
2009: American Standard Asia Pacific becomes a subsidiary of Inax
Corporation.
2010 2010: SUNWAVE CORPORATION and Shin Nikkei Co., Ltd.
become subsidiaries.
2010: TOSTEM launches a window featuring significantly increased heat
insulation due to expansion of the double-glazed area.
2011: Tostem, INAX, Shin Nikkei, SUNWAVE and Toyo Exterior are
integrated to establish LIXIL Corporation.
2011: Kawashima Selkon Textiles Co., Ltd. becomes a subsidiary.
2011: Permasteelisa Group, a world-leading curtain wall project contractor,
becomes a full subsidiary of LIXIL Corporation.
2011: LIXIL Corporation forms a joint venture with Haier Group in China
(LIXIL-Haier Housing Products [Qingdao] Co., Ltd.).
2012: Permasteelisa undertakes a building envelope project
for The Shard tower (in the UK) designed by Renzo Piano.
2013: American Standard Brands in the US becomes a subsidiary
of LIXIL Corporation.
2014: GROHE Group S.A.R.L. becomes an equity-method affiliated company
of LIXIL Corporation.
2015: LIXIL Corporation converts GROHE Group S.a.r.l. 2015
into a consolidated subsidiary.
2015: LIXIL Corporation reorganizes its structure into four technology units
to pursue global expansion. ©Atlantide Phototravel/Corbis

15
36F, Kasumigaseki Building,
3-2-5 Kasumigaseki, Chiyoda-ku,
Tokyo 100-6036, Japan
www.lixil.com

*XV2100 * XV2100 01 September 15, 2016