Attachment to the Notice of Convocation of the 82nd Annual Shareholders' Meeting
Report for the 82nd Fiscal Year
﴾From April 1, 2023 to March 31, 2024﴿
Index
・Business Report ………………………………………… | 1 |
・Consolidated Financial Statements………………… | 45 |
・Non-consolidated Financial Statements ………… | 49 |
・Audit Reports …………………………………………… | 54 |
Of the matters to be provided electronically, the following matters are posted on the Company's website and the TSE's website in accordance with laws and regulations and the Company's Articles of Incorporation, and are not included in the delivered documents for shareholders who have requested delivery of the document.
- Notes to the Consolidated Financial Statement
- Notes to the Non-consolidated Financial Statements
The Company's Website: https://www.lixil.com/en/investor/ir_event/meeting.html
The TSE's Website: https://www2.jpx.co.jp/tseHpFront/JJK020010Action.do?Show=Show
The Audit Committee and the Accounting Auditor have audited the documents to be audited, including the above.
Securities Code: 5938
LIXIL Corporation
The following is an English translation of the Report for the 82nd Fiscal Year ﴾the "Report"﴿ [ as Attachment to the Notice of Convocation of the 82nd Annual Shareholders' Meeting of LIXIL Corporation ﴾the "Company"﴿]. The Company provides this
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translation for your reference and convenience only and without any warranty as to its accuracy or otherwise. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.
Business Report ﴾From April 1, 2023 to March 31, 2024﴿
1. Matters regarding the current state of the group of companies
﴾1﴿ Business developments and their results
This consolidated Fiscal Year, Japan's domestic economy entered a moderate growth phase after strict restrictions on movement were eased following the downgrading of COVID-19 to a Class 5 infectious disease, which paved the way for a return to the normalization of social and economic activity such as a recovery in consumer demand and higher inbound tourist demand. However, Japan's economy still risks being held back by the continuing increase in overall prices, global monetary tightening, and the sharply weaker yen caused by factors such as the expanding interest rate differential between Japan and the United States. As for residential investment, downward trends in number of owned properties and condominiums for sale has been unstoppable due to concerns about rising home loan interest rates, the effect of continuing high prices for construction materials, and the like, and the number of new housing starts are weakening, and consequently the outlook remains unclear. On the other hand, the use of subsidies under the government-led major housing energy support measure of "advanced window renovation business" has created large-scale demand in the window renovation market, particularly for insulation products. This policy will continue in the next fiscal year on an even larger scale.
The global economy continues to stagnate as a consequence of factors such as the protracted conflict between Russia and Ukraine, instability in the Middle East, geopolitical risk such as U.S.-China relations, sustained global monetary tightening to control inflation, stagnation of the real estate market, and concerns over the Chinese economy from lower consumer confidence. The interest rate situation in the U.S. and Europe remains high despite a recent pause, but most recently some expect interest rates to fall, which would greatly impact consumer sentiment, meaning it will be necessary to continue closely observing the situation.
In this context, the revenue of the Company and its consolidated subsidiaries ﴾the "Group"﴿ in this consolidated Fiscal Year decreased to 1,483,224 million yen ﴾down 0.9% on year﴿, with the significant impact of continuous decline in new housing starts weighing on the domestic business despite increased revenue from renovation products centering on insulated windows that were subject to government subsidies, and factors in the overseas business such as a significant fall in demand due to higher interest rates in mainly Europe and the U.S. and sustained inflation. Earnings were also down, with continued efforts to execute structural reforms and sales price competitiveness as well as improved profitability policies both domestically and overseas being unable to cover the impact of revenue decrease due to weakening demand and market slowdown in the overseas business in particular, in addition to increased costs from continued high raw material, energy, and component prices. Core earnings decreased to 23,162 million yen ﴾down 10.0% on year﴿. Operating profit fell to 16,351 million yen ﴾down 34.3% on year﴿ due to increased other costs from the implementation of structural reforms, and profit before tax from continuing operations decreased to 6,664 million yen ﴾down 66.3% on year﴿ on an increase in financial expenses and the like arising from higher interest rates.
As well as an increase in corporate income tax expenses due to a temporary deterioration in profitability, a current loss was recorded from the discontinued operation of Permasteelisa S.p.A., previously a consolidated subsidiary, for which the sale was completed in September 2020.
As a result, loss for this Fiscal Year attributable to the owners of the parent ﴾net of non-controlling interests﴿, was 13,908 million yen ﴾15,991 million yen profit attributable to the owners of the parent in FYE2023﴿.
Note: Core earnings are calculated by deducting the cost of sales and selling, general and administrative expenses from revenue.
Results in This Consolidated Fiscal Year
Revenue | Core earnings | Loss for the year attributable | |||
to owners of the parent | |||||
1,483,224 million yen | 23,162 million yen | ﴾13,908﴿ million yen |
The overall conditions for each business unit are described below. Revenue of each business unit is before elimination of intercompany transactions and core earnings are before deduction of corporate expenses.
Note 1: Core earnings are calculated by deducting the cost of sales and selling, general and administrative expenses from revenue.
Note 2: For "domestic business" and "overseas business," management-based categories that are defined in the Group's consolidated revenue management are used, and they partially differ from categories based on country of location. Specifically, the Water Technology Business and the Housing Technology Business include some overseas subsidiaries managed domestically in "domestic business."
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Water Technology Business
Housing Technology Business
Principal business
Principal business
Business breakdown
Plumbing facilities
Other
Principal products and goods, etc.
Sanitation equipment, shower toilets, water faucet clasps, hand wash basin, bathtub, integrated baths, smart products, showers, sinks, countertops, fitted kitchens, etc.
Residential and office building exterior tiles, interior tiles, etc.
SATIS ﴾Tank-less toilets﴿ | Lidea ﴾Bathroom﴿ |
Business breakdown | Principal products and goods, etc. | |
Metal building | Sashes for residences, buildings, | |
materials | and stores, front doors, various | |
shutters, gates, carports, | ||
handrails, bridge railings, curtain | ||
walls, etc. | ||
Wood interior | Window frames, fixture materials, | |
building materials | interior building materials, etc. | |
Other building | Siding, roofing materials etc. | |
materials | Development of franchise chains |
Reform entrance door "Rechent High-size model"
In the Water Technology Business, which mainly handles plumbing products, the domestic business secured revenue that was slightly higher than the previous Fiscal Year because, while still suffering from the impact of lower housing construction demand, the businesses benefited from the manifestation of price revision effects for which efforts had been made to date, while sales of renovation-related products remained strong. By contrast, revenue in the overseas business declined compared with the previous Fiscal Year owing to continued high interest rates in Europe and the United States and a significant fall in housing-related investment demand due to sustained high inflation, despite the foreign currency exchange effect from depreciation of the Japanese yen.
As a result, revenue in the Water Technology Business decreased to 896,924 million yen ﴾down 2.0% on year﴿.
Despite both the domestic and overseas business working to secure gross profits through price revision effects and reduce SG&A expenses, this was insufficient to cover the effect of lower sales and fixed expenses, with core earnings falling sharply to 22,717 million yen ﴾down 51.9% on year﴿.
Noct ﴾Kitchen﴿ | GROHE Everstream |
﴾Recycle shower system﴿ |
Revenue | Core earnings | |||
896,924 million yen | 22,717 million yen | |||
﴾unit: million yen﴿ | ﴾unit: million yen﴿ | |||
Housing and | of builders, building contractor, |
services | real estate management, |
development support of real- | |
estate franchise chain business, | |
home loans, etc. | |
Others | Solar power systems, etc. |
In the Housing Technology Business, which primarily develops housing construction material products domestically, revenue decreased slightly to 596,448 million yen ﴾down 0.3% on year﴿, due to the significant impact of a decline in new housing construction demand like with the Water Technology Business, despite substantial sales growth of renovation products centering on insulated windows from stimulated demand for renovations for the purpose of increasing housing performance and comfort, and environmental conservation, amid the background of the government policy of introducing large-scale subsidies, in addition to the manifestation of price revision effects for which efforts had been made to date.
Meanwhile, core earnings grew sharply to 35,887 million yen ﴾up 85.4% on year﴿, helped by steady progress in improved profitability due to sales growth for renovation- related products, securing gross profits through price revisions, and productivity improvement measures such as
Inplus ﴾Interior window﴿ Laboratory of TAISEI CORPORATION using "PremiAL R70" for construction material ﴾perspective drawing﴿
Revenue | Core earnings | |||
596,448 million yen | 35,887 million yen | |||
﴾unit: million yen﴿ | ﴾unit: million yen﴿ | |||
FYE2023 | FYE2024 | FYE2023 | FYE2024 |
Consolidated | Consolidated | Consolidated | Consolidated |
Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year |
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"Asset-Light" at production sites, despite the effect of higher costs from protracted high materials and energy prices.
FYE2023 | FYE2024 | FYE2023 | FYE2024 | |
Consolidated | Consolidated | Consolidated | Consolidated | |
Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | |
- 4 -
Revenue and core earnings by business
FYE2023 | FYE2024 | Year-on-year | ||||
Consolidated Fiscal Year | Consolidated Fiscal Year | |||||
Business Category | ﴾April 1, 2022 | ﴾April 1, 2023 | increase/decrease | |||
to March 31, 2023﴿ | to March 31, 2024﴿ | |||||
Revenue | Core Earnings | Revenue | Core Earnings | Revenue ﴾%﴿ | Core Earnings | |
﴾million yen﴿ | ﴾million yen﴿ | ﴾million yen﴿ | ﴾million yen﴿ | ﴾%﴿ | ||
Water Technology Business | 915,285 | 47,259 | 896,924 | 22,717 | ﴾2.0﴿ | ﴾51.9﴿ |
Housing Technology Business | 598,211 | 19,360 | 596,448 | 35,887 | ﴾0.3﴿ | 85.4 |
Deletion or Common | ﴾17,509﴿ | ﴾40,874﴿ | ﴾10,148﴿ | ﴾35,442﴿ | - | - |
throughout Company | ||||||
Total | 1,495,987 | 25,745 | 1,483,224 | 23,162 | ﴾0.9﴿ | ﴾10.0﴿ |
Note: Operations categorized as discontinued operations are not included.
﴾2﴿ Status of Capital Investment
The amount of capital investment ﴾including right of use assets﴿ for this consolidated Fiscal Year is 60,955 million yen. Most of the amount was for investment in new product development and for streamlining and investment in facilities update and maintenance.
﴾3﴿ Status of Financial Arrangements
In this consolidated Fiscal Year, 140,100 million yen was procured through long term loans, to be applied to refinancing funds.
﴾4﴿ Transfer of Business, Absorption-Type Company Split, or Incorporation-Type Company Split
In this consolidated Fiscal Year, the Company's consolidated subsidiary LIXIL REALTY, Corp. transferred its asset securitization business ﴾real estate purchase and resale business﴿, to Tosei-R Inc., a subsidiary of Tosei Corporation, in the form of an absorption-type company split dated September 1, 2023.
﴾7﴿ Changes in Status of Assets and Income/Losses
FYE2021 | FYE2022 | FYE2023 | FYE2024 | |
Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | |
Category | Year | Year | Year | Year |
﴾April 1, 2020 to | ﴾April 1, 2021 to | ﴾April 1, 2022 to | ﴾April 1, 2023 to | |
March 31, 2021﴿ | March 31, 2022﴿ | March 31, 2023﴿ | March 31, 2024﴿ | |
Revenue ﴾million yen﴿ | 1,378,255 | 1,428,578 | 1,495,987 | 1,483,224 |
Core earnings ﴾million yen﴿ | 57,288 | 64,875 | 25,745 | 23,162 |
Operating profit ﴾million yen﴿ | 35,842 | 69,471 | 24,903 | 16,351 |
Profit/Loss for the year attributable to | 33,048 | 48,603 | 15,991 | ﴾13,908﴿ |
owners of the parent ﴾million yen﴿ | ||||
Basic profit/loss per share ﴾yen﴿ | 113.92 | 167.21 | 55.54 | ﴾48.43﴿ |
Total assets ﴾million yen﴿ | 1,741,814 | 1,782,882 | 1,853,534 | 1,886,595 |
Equity attributable to owners of the parent | 552,271 | 612,385 | 625,433 | 642,511 |
﴾million yen﴿ | ||||
Equity attributable to owners of the parent | 1,902.89 | 2,106.30 | 2,178.77 | 2,237.53 |
per share ﴾yen﴿ | ||||
Equity ratio attributable to owners of the | 31.7 | 34.3 | 33.7 | 34.1 |
parent ﴾%﴿ | ||||
Notes: Core earnings are calculated by deducting cost of sales and selling, general and administrative expenses from revenue.
Revenue | Core earnings | |
﴾unit: million yen﴿ | ﴾unit: million yen﴿ |
﴾5﴿ Succession of Rights and Obligations from the Business of another Corporation due to Absorption-Type Merger or Absorption-Type Company Split
In this consolidated Fiscal Year, the Company conducted an absorption-type merger with wholly-owned subsidiary LIXIL Window Products Inc. on March 1, 2024, with the Company as the surviving company.
﴾6﴿ Acquisition or Disposal of Shares, other Equity, or Share Options, etc. in Other Company
In this consolidated Fiscal Year, the Company transferred all its shares in its consolidated subsidiary Sonitech Corporation on December 1, 2023 to Sky Holdings K.K., a special purpose company which is wholly owned by NMC No.4 Investment Limited Partnership and for which Nippon Mirai Capital Co., Ltd. provides investment support services.
2021 | 2022 | 2023 | 2024 |
Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal |
Year | Year | Year | Year |
Profit/loss for the year attributable to owners of the parent ﴾unit: million yen﴿
(13,908) | |||||
2021 | 2023 | ||||
2022 | 2024 | ||||
Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | ||
Year | Year | Year | Year | ||
2021 | 2022 | 2023 | 2024 |
Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal |
Year | Year | Year | Year |
Total assets/equity attributable to owners of the parent/equity ratio attributable to owners of the parent
Total assets ﴾unit: million yen﴿ Equity attributable to owners of the parent ﴾unit: million yen﴿ Equity ratio attributable to owners of the parent ﴾unit: percentage﴿
2021 | 2022 | 2023 | 2024 | |
Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | Consolidated Fiscal | |
Year | Year | Year | Year |
- 5 - | - 6 - |
﴾8﴿ Issues to be addressed
In 2020, the Group formulated "LIXIL Playbook" that laid out the basic direction for the management and proceeded with initiatives for the four strategic initiatives, but it improved "LIXIL Playbook" in 2023 to respond to changes in the business environment and lead the way to further growth. Specifically, while steady achievements have been made through the initiatives to date for "focus on simplifying organization and core businesses," which was the first of the four strategic initiatives that were set when "LIXIL Playbook" was formulated in 2020, the future-oriented strategy was updated again.
As a result, the following five strategic initiatives areas were set. Along with increasing the Group's ability to respond to changes and working to further strengthen its core businesses, the Group will also enhance initiatives for environmental issues through its business and focus on developing new core businesses.
[Five strategic initiative areas in the evolved "LIXIL Playbook"]
1. Tackle inflation and supply chain challenges
In response to the ongoing impact of rising materials and logistics costs, the Group will move forward with profitability improvements both by seeking optimization of sale prices and cost reductions with cost stabilization through changing materials, and by shifting to differentiated, high-value-added products. In addition, in preparation for the risk of global supply chains being disrupted, the Group will move forward on shifting to regional procurement and production systems, in addition to previous policies such as moving to redundancy in suppliers and the use of platforms for production.
2. Optimize Japan and drive new growth
The Group will continue policies to increase the profitability and agility of its Japan business, and will enhance its initiatives for growing renovation demand by expanding its renovation products, which traditionally focused on plumbing products, to those for insulation improvements such as windows and walls. Furthermore, the Group will introduce environmentally friendly products and businesses for all product lines, which will lead to differentiation.
3. Grow global Water Technology Business
Through policies such as expanded sales of high-value-added products, diversification of sales channels, and creation of a strategic brand portfolio, the Group will work to free itself from commodity business, and enhance its foundation to steadily capture growth in overseas markets.
4. Embed robust environment strategy
The Group has set three focus areas for its environmental strategy: climate change mitigation and adaptation; water sustainability; and circular economy. By integrating its environmental strategy into its business strategy and enhancing initiatives to realize medium-term targets in each area, the Group aims to expand its sustainable growth and positive impact on the global environment and society.
5. Develop new core
Towards future growth, the Group will commit resources to seek to establish core businesses that will be pillars of new profit through the creation of impactful new technologies, products, and business models.
- 7 - | - 8 - |
[Impact Strategy]
The Group believes that we can have a positive impact on a rapidly changing world through our corporate purpose, which is to "Make Better Homes a Reality for Everyone, Everywhere." In order to realize this, the Company's impact strategy has established three core pillars, "Global Sanitation & Hygiene," "Water Conservation & Environmental Sustainability," and "Diversity & Inclusion," that are highly pressing global social issues and areas where it can drive positive impact through its business. The Group leverages its expertise and business scale to better promote initiatives while collaborating with various stakeholders, and measuring progress. Through promoting the Impact Strategy, we aim improvement of our profits, enhancement of our brand equity, and long-term value creation.
Looking ahead to the next Fiscal Year, although we expect the economic environment to continue to recover both domestically and overseas, we expect the outlook to remain unclear based on factors such as the global instability caused by geopolitical risks such as international conflicts and the U.S. presidential election, the downturn in the real estate market, inflation, and interest rates.
Amid this challenging business environment, the Group has continued to take proactive measures based on the strategic initiatives outlined in "LIXIL Playbook" that lays out the basic direction for the management of the Group. These include the urgent issue of continued structural reform to recover profitability in the overseas business, as well as optimization of personnel distribution particularly in Europe and the U.S., further review of the business portfolio such as reorganization of unprofitable businesses, and supply chain reorganization. We believe the outcome of these initiatives will undoubtedly contribute to improved profitability from next fiscal year onwards.
The Group is also seeking to expand differentiated products and create social and environmental impact in order to improve earnings and achieve sustained growth. To date, the Group has continued initiatives for flexible and entrepreneurial organizational reform, and will continue to promote innovation through the acceleration of digitalization and development of an inclusive corporate culture, ensuring new growth opportunities.
The results of the business foundation strengthening that the Group has engaged in to date have started to appear, and the path to long-term growth has not changed. We intend to not only be able to increase the value we provide to our stakeholders, but also make progress in achieving the Group's purpose to "Make Better Homes a Reality for Everyone, Everywhere."
﴾9﴿ Principal business
The Group is pursuing its purpose, "Make Better Homes a Reality for Everyone, Everywhere" through business activities, and is developing business activities such as the Water Technology Business and Housing Technology Business as the main businesses as well as other related services. The principal products and goods, etc. of both businesses are as follows respectively:
Business Category | Business Breakdown ﴾principal products and goods, etc.﴿ | |
Plumbing facilities | ﴾sanitation equipment, shower toilets, water faucet clasps, hand wash | |
Water Technology | basin, bathtub, integrated baths, smart products, showers, sinks, | |
Business | countertops, fitted kitchens, etc.﴿ | |
Other | ﴾residential and office building exterior tiles, interior tiles, etc.﴿ | |
Metal building materials | ﴾sashes for residences, buildings, and stores, front doors, various shutters, | |
gates, carports, handrails, bridge railings, curtain walls, etc.﴿ | ||
Housing Technology | Wood interior building | ﴾window frames, fixture materials, interior building materials, etc.﴿ |
materials | ||
Business | ||
Other building materials | ﴾siding, roofing materials etc.﴿ | |
Housing and services | ﴾development of franchise chains of builders, building contractor, real | |
estate management, development support of real-estate franchise chain | ||
business, home loans, etc.﴿ | ||
Others | ﴾solar power systems, etc.﴿ |
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﴾10﴿ Status of significant subsidiaries
Voting rights | |||||||||||
Company Name | Capital | ownership of | Principal Business | ||||||||
the Company | |||||||||||
﴾%﴿ | |||||||||||
LIXIL Total Service Corporation | 100 million yen | 100 | Sales of plumbing facilities and metal | ||||||||
building materials | |||||||||||
LIXIL Total Hanbai Corporation | 75 million yen | 100 | Sales of metal building materials | ||||||||
LIXIL Europe S.à r.l. | 57,143 thousand EUR | 100 | Manufacturing and sales of plumbing | ||||||||
facilities | |||||||||||
ASD Holding Corp. | 412,962 thousand USD | 100 | Manufacturing and sales of plumbing | ||||||||
facilities | |||||||||||
LIXIL Vietnam Corporation | 743,386 million VND | 100 | Manufacturing and sales of plumbing | ||||||||
facilities | |||||||||||
TOSTEM THAI Co., Ltd. | 2,767 million THB | 100 | Manufacturing and sales of metal building | ||||||||
materials | |||||||||||
LIXIL INTERNATIONAL Pte. Ltd. | 274,417 thousand USD | 100 | Intermediate holding company for | ||||||||
overseas subsidiaries in Asia | |||||||||||
LIXIL GLOBAL MANUFACTURING | 40,700 thousand USD | 100 | Manufacturing and sales of metal building | ||||||||
VIETNAM Co., Ltd. | materials and housing tiles | ||||||||||
LIXIL Manufacturing ﴾Dalian﴿ | 43,500 thousand USD | 100 | Manufacturing and sales of wood interior | ||||||||
Corporation | building materials |
Notes:
- Voting rights ownership includes indirect ownership by the Company's subsidiaries.
- There are 137 consolidated subsidiaries of the Company.
- Based on a resolution at the Board of Executive Officers' Meeting held on February 22, 2024, a decision was made to dissolve Decorative Panels International, Inc., a consolidated subsidiary of the Company owned by ASD Holding Corp.
﴾11﴿ Principal hubs, etc.
Company Name | Trade Name and Location | ||||
LIXIL Corporation | Head Office | Osaki Garden Tower, 1-1Nishi-Shinagawa1-chome,Shinagawa-ku, Tokyo | |||
﴾the Company﴿ | |||||
Sales Office | LHT Hokkaido Branch | LWT Hokkaido Branch | |||
LHT Tohoku Branch ﴾Miyagi﴿ | LWT Tohoku Branch ﴾Miyagi﴿ | ||||
LHT Kita Kanto Branch ﴾Tochigi﴿ | LWT Kita Kanto Branch ﴾Tochigi﴿ | ||||
LHT Koshin-etsu Branch ﴾Nagano﴿ | LWT Koshin-etsu Branch ﴾Nagano﴿ | ||||
LHT Saitama Branch | LWT Saitama Branch | ||||
LHT Chiba Branch | LWT Chiba Branch | ||||
LHT Tokyo Branch | LWT Tokyo Branch | ||||
LHT Kanagawa Branch | LWT Kanagawa Branch | ||||
LHT Chubu Branch ﴾Aichi﴿ | LWT Chubu Branch ﴾Aichi﴿ | ||||
LHT Hokuriku Branch ﴾Ishikawa﴿ | LWT Hokuriku Branch ﴾Ishikawa﴿ | ||||
LHT Osaka Branch | LWT Osaka Branch | ||||
LHT Keiji Branch ﴾Kyoto﴿ | LWT Keiji Branch ﴾Kyoto﴿ | ||||
LHT Hyogo Branch | LWT Hyogo Branch | ||||
LHT Chugoku Branch ﴾Hiroshima﴿ | LWT Chugoku Branch ﴾Hiroshima﴿ | ||||
LHT Shikoku Branch ﴾Kagawa﴿ | LWT Shikoku Branch ﴾Kagawa﴿ | ||||
LHT Kyushu Branch ﴾Fukuoka﴿ | LWT Kyushu Branch ﴾Fukuoka﴿ | ||||
LIXIL Showroom Tokyo | |||||
LIXIL Showroom Osaka | |||||
Factory | Sukagawa Factory ﴾Fukushima﴿ | Shimotsuma Factory ﴾Ibaraki﴿ | |||
Iwai Factory ﴾Ibaraki﴿ | Tsuchiura Factory ﴾Ibaraki﴿ | ||||
Ishige Factory ﴾Ibaraki﴿ | Fukaya Factory ﴾Saitama﴿ | ||||
Oyabe Factory ﴾Toyama﴿ | Chita Factory ﴾Aichi﴿ | ||||
Enokido Factory ﴾Aichi﴿ | Tokoname Higashi Factory ﴾Aichi﴿ | ||||
Uenomidori Factory ﴾Mie﴿ | Hisai Factory ﴾Mie﴿ | ||||
Ariake Factory ﴾Kumamoto﴿ | |||||
Other Office | Tokoname Building ﴾Aichi﴿ | ||||
LIXIL Total Service Corporation | Head Office | Sumida-ku, Tokyo | |||
LIXIL Total Hanbai Corporation | Head Office | Shinagawa-ku, Tokyo | |||
LIXIL Europe S.à r.l. | Head Office | Luxembourg | |||
ASD Holding Corp. | Head Office | U.S.A. | |||
LIXIL Vietnam Corporation | Factory | Vietnam | |||
TOSTEM THAI Co., Ltd. | Factory | Thailand | |||
LIXIL INTERNATIONAL Pte. Ltd. | Head Office | Singapore | |||
LIXIL GLOBAL MANUFACTURING | Factory | Vietnam | |||
VIETNAM Co., Ltd. | |||||
LIXIL Manufacturing ﴾Dalian﴿ | Factory | China | |||
Corporation |
- 11 - | - 12 - |
﴾12﴿ Status of employees
Business Category | Number of Employees | Comparison ﴾increase/decrease﴿ |
with end of previous | ||
consolidated Fiscal Year | ||
Water Technology Business | 29,108 | 1,805 decrease |
Housing Technology Business | 19,004 | 295 decrease |
Sector common throughout the Company | 1,198 | 91 decrease |
Total | 49,310 | 2,191 decrease |
Notes: |
- The number of employees is the number of employed staff and does not include the number of part-time or temporary staff.
- The number of employees described in the sector common throughout the company represents those employees in administrative functions that cannot be assigned to any one business category.
﴾13﴿ Status of principal lenders
Lender | Outstanding Loan Amount |
﴾million yen﴿ | |
Sumitomo Mitsui Banking Corporation | 114,829 |
MUFG Bank, Ltd. | 103,267 |
Development Bank of Japan Inc. | 60,000 |
Mizuho Bank, Ltd. | 51,468 |
Sumitomo Mitsui Trust Bank, Limited | 30,500 |
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﴾14﴿ Basic policies regarding dividend distribution, etc. of retained earnings
The Company has decided to revise its dividend policy following change effective from its interim dividend next consolidated fiscal year to reflect the Company's real circumstances and to make it easier to understand for stakeholders.
﴾Before change﴿
The Company's basic policy on shareholder returns is to maintain a consolidated dividend payout ratio of 30% or more, and to return profits to shareholders in a stable manner, taking into consideration financial condition and profit level. In light of its management direction and the progress in strengthening its balance sheet, the company will appropriately consider flexible share buybacks from the perspectives of improving capital efficiency and strengthening shareholder returns.
﴾After change﴿
The Company policy on profit allocation is to make decisions based on a comprehensive assessment of all management factors, including periodic earnings, cash flows, retained earnings, and financial strength. With regard to retained earnings, the Company will prioritize investments for growth, such as capital investments ﴾including new product development, rationalization, and IT investments﴿ to strengthen its competitiveness, in addition to strengthening its financial position, taking into consideration the cash flow situation at that point in time. The Company policy on shareholder returns is to pay stable dividends to shareholders over the long term, and to determine the amount of annual dividends based on the medium-term EBITDA level, as well as to buy back shares in a flexible manner.
﴾Note: EBITDA determined as being stably and continuously achievable: core earnings + depreciation ﴾rectification of recorded amount of depreciation and amortization accompanying cash outflows based on the application of lease accounting pursuant to IFRS.﴿.
With regard to this consolidated Fiscal Year, the year-end cash dividend per share is 45 yen ﴾90 yen for the year, including the midterm cash dividend﴿ as determined based on the dividend policy prior to change.
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2. Matters regarding the current state of the Company
﴾1﴿ Matters regarding stock
﴾i﴿ Total number of authorized shares: | 1,300,000,000 shares | |||||||
﴾ii﴿ Total number of issued shares: | 287,152,467 shares | |||||||
﴾excluding 59,323 shares of treasury share﴿ | ||||||||
﴾iii﴿ Number of shares in 1 unit: | 100 shares | |||||||
﴾iv﴿ Capital stock: | 68,530,342,826 yen | |||||||
﴾v﴿ Total number of shareholders: | 171,399 | |||||||
﴾vi﴿ Top 10 shareholders: | ||||||||
Shareholder Name | Number of | Ratio of | ||||||
shares held | shareholdings | |||||||
﴾thousand shares﴿ | ||||||||
The Master Trust Bank of Japan, Ltd. ﴾Trust Account﴿ | *48,512 | 16.89% | ||||||
SSBTC CLIENT OMNIBUS ACCOUNT | 5.18% | |||||||
﴾Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited- | 14,887 | |||||||
Tokyo Branch﴿ | ||||||||
Custody Bank of Japan, Ltd. ﴾Trust Account﴿ | *12,687 | 4.42% | ||||||
LIXIL Employee Stock Ownership | 7,463 | 2.60% | ||||||
JPMorgan Securities Japan Co., Ltd. | 6,757 | 2.35% | ||||||
NORTHERN TRUST CO.﴾AVFC﴿ SUB A/C AMERICAN CLIENTS | 1.87% | |||||||
﴾Standing Proxy: The Hongkong and Shanghai Banking Corporation Limited- | 5,364 | |||||||
Tokyo Branch﴿ | ||||||||
Nippon Life Insurance Company | 3,824 | 1.33% | ||||||
﴾Standing Proxy: The Master Trust Bank of Japan, Ltd.﴿ | ||||||||
JP MORGAN CHASE BANK 385781 | 3,620 | 1.26% | ||||||
﴾Standing Proxy: Mizuho Bank Ltd.-Settlement Sales Department﴿ | ||||||||
STATE STREET BANK WEST CLIENT - TREATY 505234 | 3,248 | 1.13% | ||||||
﴾Standing Proxy: Mizuho Bank, Ltd.-Settlement Sales Department﴿ | ||||||||
LIXIL Customer Holding Association | 3,056 | 1.06% | ||||||
Notes: |
- The ratio of shareholdings has been calculated after deducting treasury shares.
- The asterisk ﴾*﴿ indicates those involved in the trust business.
- 15 -
﴾vii﴿ Distribution of shares by shareholder:
Type | Number of shares | Ratio of |
held | shareholdings | |
﴾thousand shares﴿ | Treasury shares | |||||||||||
Financial institutions | ||||||||||||
Financial | ||||||||||||
79,492 | 27.68% | Individuals and others | 27.68% | |||||||||
institutions | 36.74% | |||||||||||
Domestic | 31,116 | 10.83% | ||||||||||
corporations | ||||||||||||
71,029 | 24.73% | |||||||||||
Foreign investors | thousand | |||||||||||
Domestic corporations | ||||||||||||
Individuals and | 105,514 | 36.74% | shares | 10.83% | ||||||||
others | ||||||||||||
59 | 0.02% | Foreigners | ||||||||||
Treasury share | ||||||||||||
24.73% | ||||||||||||
Total | 287,211 | 100.00% | ||||||||||
Note: The ratio of shareholdings has been calculated including treasury shares.
﴾viii﴿ Status of shares provided to the officers of the Company in consideration of their duties during the Fiscal Year ended March 2024:
The Company resolved to implement restricted stock compensation plan from April 2023 in order to encourage Executive Officers to deepen interest sharing with shareholders during their term of duties and to work to create corporate value from medium- to long-term at the Compensation Committee held on February 16, 2023.
Issuance of new shares as restricted stock compensation
At the Board of Directors' Meeting held on April 28, 2023, the Company resolved to issue new shares as restricted stock compensation and issued 102,131 shares of Common stock of the Company on May 16, 2023. The number of restricted stock allocated to the Company's officers is as follows:
Position Segment | Number of Shares | Number of Allocated Officers | ||||
Executive Officers* | 102,131 shares | 7 persons |
Notes:
- The asterisk ﴾*﴿ includes Executive Officers concurrently serving as Directors, and excludes non-residents of Japan.
- The content of the Company's restricted stock compensation plan is described in "2. Matters regarding the current state of the Company ﴾2﴿ Matters regarding company Directors and Executive Officers ﴾3﴿ Compensation Committee policies regarding the decision on the calculation method of the compensation for Directors and Executive Officers."
- 16 -
﴾ix﴿ Other material matter regarding shares:
Issuance of new shares as restricted stock compensation
At the Board of Directors' Meeting held on April 30, 2024, the Company resolved to conduct the issuance of new shares as restricted stock compensation as follows.
Payment date | May 15, 2024 |
Class and number of shares to be issued | Common stock of the Company, 128,670 shares |
Issuance price | 1,923 yen per share |
Total issuance price | 247,432,410 yen |
Planned allottees | *Seven Executive Officers of the Company; 128,670 shares |
Other | Regarding the issuance of new shares, an extraordinary report has |
been submitted pursuant to the Financial Instruments and |
Exchange Act.
Note: The asterisk ﴾*﴿ includes Executive Officers concurrently serving as Directors, and excludes non-residents of Japan.
﴾2﴿ Matters regarding company Directors and Executive Officers
﴾1﴿ Status of Directors ﴾as of March 31, 2024﴿
Position | Name | Area of Responsibility | Status of Important Concurrently- | ||||||||
held Positions | |||||||||||
Director | Kinya Seto | ||||||||||
Director | Sachio Matsumoto | ||||||||||
Director | Hwa Jin Song Montesano | Outside Director, Yamaha Motor | |||||||||
Co., Ltd. | |||||||||||
Director | Jun Aoki | Nomination Committee Member, | Representative Director, | ||||||||
Compensation Committee Member | JunpuManpan Inc. | ||||||||||
and Governance Committee Member | Outside Director, FIDEA Holdings | ||||||||||
Co., Ltd. | |||||||||||
Director | Shigeki Ishizuka | Audit Committee Member and | Outside Director, Marubeni | ||||||||
Governance Committee Member | Corporation | ||||||||||
Director | Shiho Konno | Audit Committee Member and | Attorney-at-law, Shiho Konno | ||||||||
Governance Committee Member | Habataki Law Office | ||||||||||
Outside Director, Monex Group, Inc. | |||||||||||
Director | Mayumi Tamura | Audit Committee Member and | Outside Director, Shimizu | ||||||||
Governance Committee Member | Corporation | ||||||||||
Outside Audit & Supervisory Board | |||||||||||
Member, Kyowa Kirin Co., Ltd. | |||||||||||
Director | Yuji Nishiura | Nomination Committee Member | |||||||||
﴾Chairperson﴿, Compensation | |||||||||||
Committee Member and Governance | |||||||||||
Committee Member | |||||||||||
Director | Daisuke Hamaguchi | Audit Committee Member | |||||||||
﴾Chairperson﴿and Governance | |||||||||||
Committee Member | |||||||||||
Director, | Masatoshi Matsuzaki | Governance Committee Member | Outside Director, Ushio Inc. | ||||||||
Chairperson of | ﴾Chairperson﴿ and Nomination | External Audit & Supervisory Board | |||||||||
the Board | Committee Member | Member, Lion Corporation | |||||||||
Director | Mariko Watahiki | Compensation Committee Member | Attorney-at-law, Okamura Law | ||||||||
﴾Chairperson﴿, Nomination | Office | ||||||||||
Committee Member and Governance | |||||||||||
Committee Member |
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LIXIL Group Corporation published this content on 24 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 May 2024 07:29:10 UTC.