Management Plan

Seeking to sustain our robust business and ensure growth in a climate of fierce competition, we at the Noritz Group have established "V-plan 20," a medium-term management plan which paves the way for our operations from 2017 through to 2020 . The plan sets targets of an operating income to sales ratio of 10% and a return on equity (ROE) of 8%.
Our vision for the group is one of global competitiveness and, in order to make that vision a reality—and to bring happiness to all our stakeholders—we pursue a policy of generating corporate value from three angles: economic value, social value, and brand value.



Under V-plan 20, we will strive to achieve sales of 240 billion yen, operating income of 24 billion yen, as well as 15 billion yen in net income attributable to owners of the parent company. To that end, we will undertake four priority measures:
(1) Restructuring our business portfolio;
(2) Enhancing profitability of domestic business;
(3) Continuously expanding overseas business; and
(4) Reforming corporate culture.
Specifically, this includes focusing resources onto our core water heater business while bolstering the development of new, more competitive products, and raising profitability in the domestic business through the restructuring of low-performing businesses. In doing so, we aim to increase earning capacity and reach an operating income to sales ratio of 10% by 2020.



Domestic Business

Domestic Sales and Operating Income (billions of yen)


Sales by Domestic Business Segment


Our Japan-based business has been supported by stable demand in our flagship products—roughly 3.5 million water heater units sold annually. At present our market share is 40%, making Noritz a top manufacturer, but future growth will depend on how well we can promote products with the high added value of eco-friendly and energy-efficient design for the replacement demand that is generated steadily. To take advantage of this opportunity, we are concentrating on promoting Eco-Jozu and Eco-Feel water heaters, co generation systems, and solar systems, continuing to improve our product mix.
Meanwhile, we are aware of the need to plan for the long-term effects of Japan's declining population on domestic demand. We aim to enhance our earning capacity by revamping our manufacturing structure to introduce added value more effectively in the production process, and by maintaining a sales model centered on earning customers' trust through our unique product inspection system.


Reference Information


Domestic Market Water Heater Demand by Year

Domestic Sales and Demand Breakdown by Year for High-Efficiency (Eco-Jozu) Water Heaters


Overseas Business

Overseas Sales and Operating Income (billions of yen)


Sales by Overseas Business Region


Utilizing the fluid control technologies developed for the Japanese market, we are promoting sales of tankless gas water heaters primarily in China, North America and Australia, as global demand rises for eco-friendly, energy-efficient product design.
In China, the economic slowdown has been felt in urban areas such as Shanghai, but with the increasing use of gas and urbanization in inland China, a high level of growth is anticipated. In North America and Australia, a shift is being effected from water heaters with tanks, which account for a large section of the market, to tankless types.
The Noritz Group first entered China in 1993, followed by North America, Australia, Europe, South America, and Asia. Recently, our international strategy gained increased momentum with the acquisition of Sakura Bath & Kitchen Products (China) Co., Ltd., in 2013 and Dux Manufacturing Limited of Australia in 2015. We look forward to achieving ongoing growth by developing new and unique products to enhance our already extensive lineup.


We see our business activities as a means of helping society overcome the problems it faces. That view is encapsulated in "Q+ESG," a philosophy that focuses on solving problems through attention to quality, the environment, society, and governance.
Quality: We and our business partners seek to offer consumers top-quality products and services that they can use with greater confidence for longer.
Environment: Water-heating, air-conditioning, and kitchen appliances are the household items that use the most energy, so promoting eco-friendly, energy-efficient products and continuing to improve our technical competencies in this area will surely contribute to lower carbon emissions.
Society: Not only do we help provide a vital social lifeline—hot water—as part of our business, but we are also proud to provide opportunities for employment and independence to differently-abled people and to support community initiatives including measures for disaster recovery.
Governance: We abide strictly by the Noritz Corporate Governance Guidelines, and strive constantly to ensure their efficacy.

Capital expenditure (billions of yen)


Depreciation expenses (billions of yen)


R&D costs (billions of yen)


Dividends (yen)