TOTO

Basic Information

Stock Code
5332
Industry
Glass and Stone Products
Category Detail
Construction Materials & Equipment
Prefecture
Fukuoka Prefecture
Establishment Year
May 1917
Listing Year
May 1949
Official Website
https://jp.toto.com
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kikkoman, Asahi Eito Holdings, Janis Kogyo, LIXIL, Komatsu

Overview

TOTO is a residential equipment manufacturer founded in 1917, boasting the top position in the domestic sanitary ware sector and leading the market with innovative technological prowess.

Current Situation

In the fiscal year ended March 2022, TOTO recorded consolidated net sales of 645.2 billion yen and operating profit of 52.1 billion yen, holding about 60% share of the domestic sanitary ware market. Its flagship products, such as Washlet and water-saving toilets, feature superior environmental performance and are highly acclaimed both in Japan and overseas. The company is actively expanding into Asia, Europe, and North America to promote business globalization. It also actively pursues product development focused on barrier-free and universal design, as well as social contributions through establishing a special subsidiary for employing people with disabilities. In recent years, while adapting to changes in the business environment such as head office rebuilding and special loss provisions, it has strengthened overseas market channels in response to reduced domestic renovation demand due to Building Standards Law revisions. Toward 2030, it is focusing on low-environmental-impact products and IoT-enabled smart residential equipment development to maintain a high-profit structure.

Trivia

Interesting Facts

  • TOTO holds about 60% share of the Japanese sanitary ware market as the domestic leader.
  • Washlet launched the world's first warm water cleansing bidet integrated toilet in the 1980s.
  • Tornado Flush technology dramatically improves toilet bowl cleaning performance.
  • Originally manufactured tableware; lapis lazuli blue technology influences current logo color.
  • Received the Imperial Invention Award in 2006 for photocatalyst technology.
  • Headquartered in Kitakyushu, Fukuoka Prefecture, with over 100 years of history.
  • Received Prime Minister's Award in 2006 for barrier-free product development.
  • Launched Japan's first unit bathroom in 1964.
  • Washlet CM slogan 'Even your bottom wants to be washed.' became a buzzword.
  • TOTO GREEN CHALLENGE promotes adoption of eco-friendly products.
  • For 2017 centennial, unique campaigns like Toilet Bike Neo.
  • Long-term sponsor of Kitakyushu International Music Festival.
  • Women's marathon national team athletes in track and field club.
  • Giravanz Kitakyushu uniform sponsor.
  • Post-Building Standards Law revision, focusing on overseas with bases in Singapore and Europe.

Hidden Connections

  • INAX (now LIXIL) is affiliated with Morimura Zaibatsu and has deep historical ties with TOTO.
  • Subsidiary TOTO Sanit techno exists in INAX's base, competing yet collaborating.
  • Chubu Centrair International Airport toilets use some TOTO products alongside LIXIL.
  • Featured Takashi Nagasakaya in TV CMs, creating numerous hit ads.
  • Established special subsidiary San Aqua Toto with Kitakyushu City for disabled employment.
  • Eco-conscious Samplaza Nakano-kun provided theme song for Toilet Bike Neo.
  • Publishing division issues architecture books and comics for workers.
  • Collaborative projects with Japan's sports promotion lottery 'toto'.

Future Outlook

Growth Drivers

  • Expanding demand for water-saving and eco-friendly products domestically and overseas
  • Strengthening and expansion of overseas sales channels
  • Integration of IoT and smart home technologies into products
  • Increasing demand for universal design and barrier-free products
  • Expected recovery in renovation and remodeling market
  • New product development through technological innovation
  • Increased investments and regulatory responses for sustainability
  • Post-COVID housing market revitalization
  • Improved business environment from global economic stabilization
  • Business growth leveraging M&A within the industry

Strategic Goals

  • Establish product lineup significantly reducing environmental impact
  • Expand overseas sales ratio to over 30%
  • Become market leader in IoT-compatible smart residential equipment
  • Enhance barrier-free compliant products domestically and overseas
  • Improve employee diversity and work-life balance
  • Achieve zero CO2 emissions in manufacturing processes
  • Sustainable procurement across the entire value chain
  • Aim for over 80% product recycling rate
  • Over 50% sales ratio of high-value-added products
  • Sustainable expansion of community contribution activities

Business Segments

Sales to Residential Equipment Trading Companies

Overview
Stable supply of diverse equipment to the residential building materials market.
Competitiveness
Domestic No. 1 market share and stable supply system
Customers
  • Residential Equipment Trading Companies
  • Building Materials Wholesalers
  • Renovation Contractors
  • Trading Companies
  • Building Materials Specialty Stores
Products
  • Sanitary Ware
  • System Kitchens
  • Unit Bathrooms
  • Faucets
  • Water Heaters

Services for Construction and Renovation Companies

Overview
Optimal equipment provision and technical support for construction projects.
Competitiveness
Comprehensive design proposals and maintenance systems
Customers
  • Construction Companies
  • Renovation Companies
  • Design Offices
  • Architects
  • Contractors
Products
  • Unit Baths
  • System Kitchens
  • Sanitary Equipment
  • Residential Accessories
  • IoT Toilet Systems

Equipment Provision for Commercial and Public Facilities

Overview
Proposes durable and comfortable equipment for facilities.
Competitiveness
Advanced barrier-free and universal design
Customers
  • Hotel Chains
  • Commercial Facility Management Companies
  • Public Organizations
  • Hospitals
  • Schools
Products
  • Multipurpose Toilets
  • Barrier-Free Design Products
  • High-Durability Sanitary Ware
  • Large Unit Baths
  • Cleaning and Maintenance Services

Overseas Residential Equipment Business

Overview
Expanding sales networks in Asia, Europe, and North America.
Competitiveness
High-quality products and region-adapted services
Customers
  • Overseas Housing Construction Companies
  • International Trading Companies
  • Exporters
  • Local Distributors
  • Overseas Showrooms
Products
  • Sanitary Ware
  • System Kitchens
  • Warm Water Bidet Seats
  • Unit Bathrooms
  • Water-Saving Products

R&D and Technical Services

Overview
Promotes advanced technology development and industry-academia research collaboration.
Competitiveness
Abundant patents and technical expertise
Customers
  • University Research Institutions
  • Technical Partner Companies
  • New Product Development Divisions
  • Environmental Technology Organizations
  • Industry-Academia Collaboration Partners
Products
  • Photocatalyst Technology
  • Stain-Resistant Technology
  • Energy-Saving Equipment
  • IoT Sensors
  • Water Environment Management Technology

Maintenance Services

Overview
Services aimed at product longevity and customer satisfaction improvement.
Competitiveness
Rapid response via nationwide network
Customers
  • Homeowners
  • Facility Managers
  • Construction Companies
  • Equipment Maintenance Companies
  • Renovation Contractors
Products
  • Product Maintenance
  • Regular Inspections
  • Parts Supply
  • Renewal Services
  • Breakdown Response

Competitive Advantage

Strengths

  • Overwhelming 60% share of domestic sanitary ware market
  • Innovative warm water bidet seat technology and patents
  • Pioneer in low-environmental-impact products
  • Strong domestic and international sales networks
  • High brand recognition and trust
  • Promotion of barrier-free and universal design
  • Diverse product lineup
  • Superior R&D capabilities and technology accumulation
  • Enhanced corporate value through social contributions
  • Solid financial foundation

Competitive Advantages

  • Differentiation via proprietary Tornado Flush and Cefiontect technologies
  • Domestic top-class water-saving toilet development and adoption rate
  • Washlet brand image and market penetration
  • Global expansion and adaptability to regional needs
  • Social responsibility through special subsidiary for disabled employment
  • Long-term stable management base and track record
  • High market coverage via diverse sales channels
  • Sustainability through active environmental technology adoption
  • Difficulty of imitation due to numerous patents and innovations
  • Loyal customer base built through community support activities

Threats

  • Decline in domestic housing starts due to Building Standards Law revisions
  • Shrinking domestic renovation market
  • Intense price competition in overseas markets
  • Rising material prices and supply instability
  • Cost increases from stricter environmental regulations
  • Technology innovation competition from emerging companies
  • Profit impacts from exchange rate fluctuations
  • Rising energy costs
  • Investment restraint due to social changes
  • Impacts on manufacturing and logistics from natural disasters
  • Shrinking domestic demand due to population decline

Innovations

2023: Launch of Next-Generation IoT-Enabled Smart Toilets

Overview
Utilizes sensor technology to analyze usage, significantly improving water savings and maintenance efficiency.
Impact
Achieves higher customer satisfaction and reduced operational costs

2024: Improvements to Environmentally Friendly Water-Saving Toilets

Overview
Introduces new Tornado Flush technology enabling powerful cleaning with less water.
Impact
Contributes to 20% reduction in annual water usage

2022: Practical Application of Hydrotect Photocatalyst Technology

Overview
Applies antibacterial and stain-resistant photocatalyst coating to products.
Impact
Improves product cleanliness and durability

2021: Expansion of Barrier-Free Products

Overview
Develops and strengthens lineup of user-friendly equipment for elderly and disabled.
Impact
Market expansion in universal design sector

2025: Enhanced R&D on Smart Bathroom Systems

Overview
Plans to develop next-generation systems with remote control and health management features.
Impact
Aims for new customer acquisition by meeting market needs

Sustainability

  • Accelerated adoption of water-saving toilets for water resource conservation
  • Implementation of CO2 emission reduction plans in manufacturing
  • Established special subsidiary to promote disabled employment
  • Active adoption of low-environmental-impact materials
  • Support for community environmental education activities
  • Strengthened environmental management via ISO14001 certification
  • Formulation and operation of green procurement standards
  • Product recycling and waste reduction programs
  • Promotion of universal design product development
  • Introduction and optimization of eco-friendly logistics