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Medium-Term Business Plan "New ERA 2025"


From its founding in 1920 to the present day, Rinnai has helped enrich the lives of people around the world by providing products and services that reflect the lifestyles, climatic conditions, and energy conditions of each country and region.

Rinnai celebrated its 100th anniversary in 2020. As a fresh start for the next 100 years, we formulated a new Medium-Term Business Plan covering the five-year period from April 2021 to March 2026. The aim of the plan is to realize healthy, comfortable lifestyles and deliver sustainable corporate growth.

Positioning of Medium-Term Business Plan 2021-2015

New Medium-Term Business Plan (2021-2025)

New ERA 2025

New Expansion, Revolution and Advancement

We have positioned the year 2021 (101 years since our foundation) as the start of a New ERA.
We will achieve Advancement in addressing social challenges through Expansion of business scale and
Revolution of corporate structure.

Corporate Vision

  • Brand Promise
    Creating a healthier way of living
    Social Challenges Rinnai should embrace
    ◆ Improve quality of life
    ◆ Help resolve global environmental problems
    Corporate Vision
    We will utilize various kinds of energy resources and our own core technologies to address social challenges in our business field "heat and lifestyles" "health and lifestyles" and achieve a sustainable, steady, long-term growth.

Key Strategies

We have formulated three key strategies: Help resolve social issues, expand business scale, and revolutionize corporate structure.

  • Advancement in addressing
    social challenges
    • Improve quality of life
    • Help resolve global environmental problems
  • Expansion of business scale
    • Expand regional domains
    • Expand business domains
  • Revolution of corporate structure
    • Become more consumer-oriented
    • Make focused investments in intangible assets
    • Enhance profitability

Advancement in Addressing Social Challenges : Improve Quality of Life

We develop products closely related to people's lives, including water heaters (for making hot water), kitchen appliances (for cooking), and air-conditioning appliances (for heating rooms). By providing products with even greater value, we can improve quality of life in addition to supporting people's lives.

  • [Example: Efforts to improve quality of life in the United States]

    Our tankless water heaters offer the convenience of never running out of hot water and reduce stress in people's daily lives

Making people's lives more comfortable and joyful is a major element of our Brand Promise.
We will increase sales by offering products that improve people's lives by making them healthier and more comfortable while providing enjoyment and excitement.

Quality-of-life improvement criteria
1. Reduced stress through improved convenience 
2. Increased safety of living spaces 
3. Improved levels of hygiene and health 
4. Enhanced resilience

Below are examples of Rinnai products that have improved people's lives in each country and region in comparison with popularized existing products.
  Criteria Main products Details of improvement
1 Reduced stress through improved convenience Gas tankless water heaters (USA)
Gas clothes dryers (Japan, China, South Korea)
Gas dishwasher/dryers (Japan, China)
-Endless supply of hot water thanks to gas water heaters
-Reduced housework burden thanks to gas clothes dryers and dishwasher/dryers
2 Increased safety of living spaces Wireless LAN-compatible remote controls (Japan)
Gas stoves with sensors (Japan, ASEAN)
-Remote control and monitoring functions
-Stoves equipped with sensors ensure prevention against fires
3 Improved levels of hygiene and health Micro Bubble Bath units (Japan)
Air purifiers (China)
Gas and electric water heaters (ASEAN)
-Micro Bubble Bath units have health improvement benefits
-Increased hygiene levels thanks to better air quality
-Water heaters installed in houses that previously did not have them
4 Enhanced resilience ECO ONE (Japan)
Gas stoves (ASEAN)
-Hot water supply even in times of disaster
-Cooking possible even during electricity blackouts

Advancement in Addressing Social Challenges : Help resolve global environmental problems

The Paris Agreement of 2016 accelerated the movement toward CO2 emission reduction and zero emissions (carbon neutrality) in each country. Rinnai, which is engaged in the manufacturing of gas appliances, pursue the possible development of various energy equipment for carbon-free society.

Help resolve environmental issues on a global scale through our core technology strengths to reduce CO2 emissions and air pollution
Expand our lineup and sales of environmental products in the current low carbon society, and further refine our technologies responding to various energies for the future decarbonized society

< Measures during the New Medium-Term Management Plan >
Products that help reduce CO2 and PM2.5 emissions are defined as "Products that benefit the global environment."
For the period of the new Medium-Term Business Plan, we have defined gas water heaters, which help reduce CO2 emissions, and gas boilers, which help reduce PM2.5 emissions, as "Products that benefit the global environment."
  Goal Main products(reflecting the energy situation in each country and region) Details of environmental contribution
1 Reduce CO2 emissions Eco Jozu, ECO ONE (Japan) Highly energy-efficient water heaters help reduce CO2 emissions
Tankless gas water heaters (United States, Australia)
Gas water heaters (China)
Condensing boilers (South Korea)
Gas tabletop stoves (Indonesia) Gas stoves with high combustion efficiency help reduce CO2 emissions
Solar hot water panels (Brazil) Using solar heat to supply hot water helps reduce CO2 emissions
2 Reduce PM2.5 emissions Boilers (China, Mongolia) Switching from coal boilers to gas boilers helps reduce PM2.5 emissions

Expansion of Business Scale : Regional Domains

Priority strategic markets: Expand sales in the United States
  • Increase awareness about highly environmentally friendly tankless water heaters that save space and never run out of hot water
  • Promote sales/marketing strategies to achieve sustainable growth
  • Open an innovation center and new factory to strengthen local technological capabilities and competitiveness
  • Increase sales to ¥100 billion, with 2025 as a growth milestone
Priority strategic markets: Expand sales in China
  • Evolving into one of world's largest markets as improvements in living standards drive growth of the middle class
  • Increase brand recognition and promote differentiation by strengthening marketing in a competitive environment
  • Develop new sales methods that combine expanded Internet sales and offline communication
  • Foster our next growth pillar and expand into comprehensive energy equipment Reached ¥100 billion in sales
Enter new and emerging markets
  • Enter new markets in Latin America and expand sales channels in emerging nations, such as India and countries in Africa.

    Regions with local subsidiaries
    Regions served by major distributors
    Priority strategic areas

Expand scale of overseas business
  • Increase the Rinnai Group's contribution to society by expanding the scale of its operations in growth markets and new markets, targeting overseas sales of ¥250 billion in 2025.

Expansion of Business Scale : Business Domains

  • In addition to "heat and lifestyles," we will develop new products for the "health and lifestyles" sector.

    We will create user-oriented value in such areas as beauty, support for seniors, and pet care, while developing products that are not limited to gas, like electricity and hydrogen.

    We will conduct R&D with a view to the next 10–20 years by strengthening basic/applied research and enhancing our overseas product development system.

Pursue value from the consumer's perspective in the fields of "heat and lifestyles" and "health and lifestyles" by emphasizing basic research and development of elemental technologies.
Accelerate improvements in quality of life and contribute to the environment by cultivating energy utilization technologies in such areas as electricity, natural energy, and hydrogen.
Strengthen local product development capabilities by investing resources in overseas bases.

Revolution of Corporate Structure : Become More Consumer-Oriented

We will establish a new marketing organization and build new lines of communication with consumers, both digitally and in the real world, within the framework of DX, by capturing people's essential needs for improved quality of life and linking them to our product planning and sales promotion activities.
We will also create a business model that continuously provides value to consumers throughout their lives through brand experiences that they can enjoy with peace of mind.

Marketing activities to strengthen consumer focus: four themes
  • Capture user needs
  • Improve Rinnai's image through distinctive products
  • Appeal directly to end-users
  • Incorporate into the value chain

Revolution of Corporate Structure : Make Focused Investments In Intangible Assets

  • Human resources
    (Investment targets)
    Formulate engagement improvement measures; establish system for self-growth evaluations; build education system; establish workplace environments that welcome new work styles
  • Information Technology
    (Investment targets)
    Develop information infrastructure for strengthening global cooperation; develop technologies for digital transformation
  • Core Technology (Know How)
    (Investment targets)
    Build advanced manufacturing system; enhance R&D system focusing on "heat and lifestyles" and "health and lifestyles"
  • Branding
    (Investment targets)
    Popularize global brand image externally; strengthen internal branding

Revolution of Corporate Structure : Enhance Profitability

  • Further improve earning power

    Further raise the profitability, which has been increasing, by promoting high-value-added product strategies and rigorously reducing costs.

    • Set ROIC as key performance indicator
      • Increase capital productivity by rigorously improving earning power and investing management capital productivity
    • Optimize capital balance
      • Control the balance between investments, shareholder returns, and financial position based on sound capital policy

Connection between Medium-Term Business Plan and ESG

ESG item Main initiatives Connection with Medium-Term Business Plan
(three key strategies)
Benefiting SDGs
E: Environment Popularize energy-saving water heaters to reduce CO2 emissions
→ 2025 target: 8.2 million tons
Develop and promote energy-saving equipment
Expand R&D investments targeting a carbon-free society
-Advancement in addressing social challenges (help resolve global environmental problems)
-Expansion of business scale (regional expansion)
-Revolution of corporate structure (focused investments in intangible assets)
S: Social Create products that improve quality of life
Make efforts to improve human resource value
→ Invest in human resource growth, review personnel system, and promote health management
Create environments for diverse work styles
-Advancement in addressing social challenges (improved quality of life)
-Expansion of business scale (expansion of business domains)
-Revolution of corporate structure (becoming more consumer-oriented)
-Revolution of corporate structure (focused investments in intangible assets)
G: Governance Instill compliance
Strengthen cybersecurity measures
Implement each principle of Corporate Governance Code
Introduce performance-linked and stock-based compensation
Establish Nomination Advisory Board and Compensation Advisory Board
-Revolution of corporate structure  

Numerical Targets for Fiscal 2026 (Consolidated)