LIXIL (5938) Status Update summary

Integration of Impact, Innovation, and Business Strategy

• The event, renamed Impact Briefing, emphasized integrating impact strategy with business strategy to enhance corporate value and address social and environmental issues.

• Strategic initiatives are guided by the LIXIL Playbook and Environmental Vision 2050, positioning employees as key drivers of value creation and innovation.

• Core pillars focus on climate change mitigation, water sustainability, and circular economy, with R&D as a core driver.

• Board of Directors now prioritizes sustainable growth and innovation, with active involvement and knowledge sharing from outside directors.

• Strategic initiatives include divesting non-core businesses, optimizing supply chains, and embedding robust environmental strategies.

R&D and Innovation Initiatives

• Global R&D teams span 18 locations in 9 countries, focusing on both basic research and product development to deliver differentiated products worldwide.

• Collaboration with external partners, suppliers, and internal cross-regional teams accelerates innovation and technology deployment.

• AI and digital innovation management solutions are being adopted to accelerate idea generation and product development.

• Ideation events and partnerships with universities and industry councils foster open innovation and digitalization.

• Collaboration between LIXIL International and LWTJ enhances global R&D integration and resource optimization.

Key Product and Technology Innovations

• Notable product launches include Everstream and Heat Recovery, which enable significant water and energy conservation, with Everstream reducing water use by 75% and energy by up to 69% per shower.

• New technologies like Pure Foam, combining Japanese and German expertise, are being rolled out internationally to enhance user experience and sustainability.

• Greentap mineral water purifier and advanced water purification cartridges address water sustainability and health concerns.

• INAX shower toilets with feminine front-wash nozzles support women's hygiene and have received external recognition.

• Water purification technologies effectively remove harmful substances like PFAS, and femcare products have received industry recognition and awards.