Medium-Term Management Plan: The LIVE Plan

Aiming to achieve the Management Vision, Lion launched its new medium-term management plan, the LION Value Evolution Plan (LIVE Plan), over the three-year period of 2018 to 2020. The background and overview of the plan are presented below.

The Business Environment for Lion

Due to the advance of digital transformation and other factors, the business environment of the Lion Group is now expected to change at a hitherto unimaginable pace.

Furthermore, both in and outside Japan, in such areas as improving quality of life (QOL) and extending healthy life expectancy, health care needs are forecast to see accelerating growth, which will make the role of Lion, as a company involved closely in consumers’ daily lives, even larger.

Lion formulated its medium-term management plan, the LIVE Plan, to realize its new Management Vision, and remain a company considered necessary by society and customers amid a drastically changing market environment.

Management Vision

Looking toward 2030: “Becoming an advanced daily healthcare company” We will realize ‘healthy minds and bodies for all,’ through the ‘ReDesign’ of the everyday rituals to become more natural, easy and enjoyable. To this end, we will create ‘customer experience-based value’ in the areas of health, comfort and cleanliness. “ReDesign: Health, Comfort, Cleanliness”

Basic Strategy of the LIVE Plan

  1. Expand and Evolve Our Business Domains through New Value Creation
    Creating new combinations of various technologies and services, we will create new business value that realizes “healthy minds and bodies for all”.
    • Oral-to-Body Solution:We aim for expansion and evolution that will create an “oral health care business” in which oral care contributes to whole-body health care.
    • Daily Self-Care Enhancement:We will work toward evolution aimed at creating a health care business that will, in turn, “ReDesign” daily living to create healthful habits that help enhance QOL.
    • Infotech Health Support:We will create new health care business models that leverage cutting-edge technologies, such as IoT and AI.
  2. Accelerate Growth in Overseas Businesses through Glocalization
    Focusing on growing markets in Asia, we will integrate globalization and localization approaches to create unique competitive advantages and thereby expand the scale of our businesses and the areas in which we operate.
    • We will evolve Group management by reinforcing regional management.
    • We will aim for business area expansion based on e-commerce channels and M&A.
  3. Reinforce Our Management Base through Business Structure Reform
    By improving management infrastructure and revising the business portfolio to stay ahead of changes in the environment, we will reinforce our management base to enable sustainable business growth.
    • We will reinforce investment in the flexible, efficient manufacturing infrastructure that will drive business growth.
    • We will build more advanced and sustainable supply chains.
    • We will reinforce information system foundations to promote more-sophisticated Group management.
    • We will advance revisions of business fields and the Group structure to improve the efficiency of management resources and business activities.
  4. Create Dynamism to Foster Innovative Change
    We aim to foster corporate strength that will win out over global competition by promoting diversity and openness in our human resources, organizations, and corporate culture.
    • We will create human dynamism by utilizing diverse human resources.
    • We will create organizational dynamism that fosters ambition and creativity through open innovation.
    • We will create management dynamism through environmental, social, and governance (ESG) initiatives and the reinforcement of health and productivity management.

Investment Strategy

Total ¥100 billion over three years. Strengthen the management base: • R&D, • Production and IT infrastructure; Gain growth opportunities: • M&A, • New businesses

Lion thinks that the total investment necessary to implement these four strategies will amount to around ¥100 billion over the next three years. Funds will be allocated to further strengthen the management foundation and gain new growth opportunities, including considerable increases in such areas as R&D, production infrastructure, and IT infrastructure. In addition, both in Japan and overseas, we will designate funds to acquiring external resources and exploring new businesses through M&A.

LIVE Plan Net Sales Targets by Business Segment (IFRS Standard)

(Unit: ¥ bn) 2020 Target 2017 Result Difference Average Annual
Growth Rate
(AAGR)
Net Sales 400.0 342.7 57.2 5.3%
Consumer Products 250.0 215.1 34.8 5.1%
Industrial Products 35.0 32.6 2.3 2.4%
Overseas 112.5 90.7 21.7 7.4%
Other 2.5 4.0 (1.5) (15.2%)
Adjustment 0.0 0.1 (0.1)