About the TOTO WILL 2022 Mid-Term Management Plan (published October 2017)
Having celebrated its 100th anniversary in 2017, the TOTO Group will increase its fan base around the world as it embarks on the next century. To achieve that goal, we formulated TOTO WILL 2022, the five-year mid-term management plan that begins from FY2018.
The strategic framework includes corporate governance forming the basis of corporate activities, the two business axes of Global Housing Equipment Business Group and New Business Domains, and three innovation tasks spanning the company from the perspective of overall optimization. This will further unify these business activities with the TOTO Global Environmental Vision as we aim to further enhance our corporate value.
TOTO Group Management Goals (Financial year ending March 2023)
Net Sales ¥720 billion
Operating Income ¥80 billion
ROA（Return on Assets) 12.0%
ROE（Return on Equity） 13.0%
Details of the Two Business Axes
Global Housing Equipment Business
In the Global Housing Equipment Business (Japan), we will promote a “Anshin Remodeling Strategy” for the home remodeling market as the number of new housing starts declines and migration to a stock-type society advances. On the public facilities front, we will disseminate the Japanese toilet culture TOTO has created to the world with the aim of turning Japan into a showroom for the world. Promoting these strategies will establish and maintain a solid operating foundation.
In the Global Housing Equipment Business (Overseas), we will provide products and services boasting high functionality and quality with a focus on WASHLET to the countries and regions into which TOTO has expanded, and drive the growth of the TOTO Group in the process.
New Business Domains
In the Advanced ceramics business, we will drive the evolution of one-and-only technologies to deliver value that only TOTO can provide to customers.
In the Green building materials business, we will concentrate on three strategic businesses, namely ceramic tile, high-performance mirrors and HYDROTECT.
Promoting these strategies will reinforce our business structure.
Details of the Three Company-Wide Innovation Tasks
We will fuse TOTO strengths in function and design to a sophisticated degree, develop products that win the support of the global market, and communicate the benefits to the world through unified promotional efforts.
Demand Chain Innovation
Japanese initiatives such as minimizing inventory assets and optimizing distribution networks will be rolled out globally. We will also develop systems enabling the simultaneous development of products globally, and achieve the ultimate in waste elimination and quality improvements through smart factories utilizing IoT and AI. These innovative activities will build a solid demand chain.
Management Resource Innovation
We will create a company where a diverse array of human resources can gather, work with peace of mind and take on challenges energetically. We will also use familiar IT assets such as portal sites and systems to forge connections between people and organizations to establish a structure conducive to global collaboration. On the finance and accounting front, we will build mechanisms able to contribute to the PDCA cycle of management from the perspective of the efficiency of invested capital in an effort to optimize management resources.