For Immediate Release
June 4, 2019
LIXIL Corporation

LIXIL’s SATO achieves new milestone with first profitable market inBangladesh
Increasing foothold to 25 countries, LIXIL refreshes its strategy to accelerate improved sanitation to the world

SATO’s global presenceTokyo, Japan – LIXIL Corporation (“LIXIL”), maker of pioneering water andhousing products, announced today that its SATO social business hasturned profitable in Bangladesh, demonstrating that it can make apositive social impact while sustaining itself financially. With SATO
products now present in over 25 countries, an increase of 10 countries inless than a year, LIXIL also refreshed its strategy to tackle the global
sanitation crisis in anticipation of even further growth of its social
business around the world.
Today, 2.3 billion people – or one in three people worldwide - still do nothave access to basic sanitation. As a leading company in sanitary ware,
LIXIL has incorporated design and technology to solve real consumer
needs in all of its bathroom products, but it is also dedicated to improving
accessibility to basic sanitation as an opportunity to solve one of theworld’s greatest challenges, and to do so sustainably by helping toSATO products require little water to flush
away waste compared to conventional
toilets, while using a counterweighted trap
door that closes to help keep out odors andflying insects that can spread disease.

1 | Pagedevelop a future market. Establishing Global Sanitation & Hygiene as one of the pillars of its Corporate
Responsibility Strategy, LIXIL has been tackling the global sanitation crisis by commercializing solutions
such as its innovative and affordable SATO products.
Bangladesh was the first country where SATO was made available, startingin 2013. With partners playing an important role in demand creation, thebusiness today encompasses production, distribution, installation andmaintenance, all sourced locally. Today, the LIXIL business model in
Bangladesh is breakeven, demonstrating that social enterprise can beviable and self-sustaining.

Factory that produces SATO,located in Dhaka, Bangladesh“SATO has been working to achieve profitability as a social enterprise for several years now, and its
success in Bangladesh has boosted the team’s confidence and commitment to improving sanitation forall. Social enterprises operating in similar conditions understand how tough it is to break even. Ruralsanitation markets are unique and hard to reach. It took us a bit longer than we anticipated, but thelessons from Bangladesh will inform our approach to accessing other markets. I am extremely proud of
the SATO team and thank our partners for their tremendous support and collaboration,” said Jin
Montesano, LIXIL Executive Officer and Senior Managing Director overseeing Corporate Responsibility.
“I am proud to be leading SATO, one of the most exciting and unique businesses within LIXIL. In every
developing market, the differences in available infrastructure, resources, as well as cultural habits andsocial customs relating to sanitation are uniquely different; hence our approaches need to be tailored tothese differences. Our strong and knowledgeable local partners BRAC and RFL are the keys to oursuccess by contributing innovative and reliable approaches for sanitation marketing, and robust sales
and distribution models. We welcome potential local partners around the world to join us in tacklingsanitation issues in other markets,” commented Junichi Goto, CEO, SATO.
SATO products come in varieties that suit local requirements and preferences, reflecting religious, socialand structural differences depending on the country and location. The SATO social business has seenmuch success in other markets as well, with its smartly designed, affordable, hygienic and manageable
SATO products, and is now devoting new resources to reach more people in need.
In celebration of SATO’s success, the team has revisited its strategy for 2019, and has refreshed its
commitments for global hygiene and sanitation.
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Strengthening the SATO teamMerging all activities and products, the team originally known as Social
Sanitation Initiatives has renamed itself SATO to underscore the focus itwill place on taking SATO to the next stage of its evolution as a socialbusiness. It has hired new talent, doubling the team to 44 members
worldwide.
With Africa being a critical sanitation market, Samuel Langat, who has

A representative introduces
SATO at a market in Uganda

2 | Pagemore than 16 years of experience, has joined as General Manager for Africa, overseeing 7 localrepresentatives in the continent
2.

Maximizing existing partnerships and exploring new ones

Until now, LIXIL has partnered with UNICEF, UNHCR, WaterAid, BRAC andmany other organizations that have played an important role in sanitation
demand creation and education.
Aiming to utilize partners’ local know-how in both demand creation andproduct delivery, SATO signed a new type of grant agreement in May 2019with its long-standing partner, Population Services International (PSI), toSATO toilet installed for Pagalavadi
School in Trichy, India

commercialize 25,000 SATO units in Ghana. SATO continues to seek for
new and effective approaches to deliver products to millions.
3.

Strengthening e-marketing and commerce with a new website

Technological advancements are not foreign to SATO’s potential markets,
where accessibility to mobile phones is greater than access to toilets1. The
new website aims to extend digital presence and visibility in the markets,
introducing real-life cases of SATO users around the world, and an addedfunction that allows visitors to find out products available in their country.
SATO Website: www.sato.lixil.com

www.sato.lixil.com
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Source: The Nation. 14 May 2019, The Race for Global Internet Access Is Not a Zero-Sum Game.

About SATO:
SATO, a part of LIXIL, is a line of innovative, durable and affordable toilet solutions for a better and more hygienic toilet experience,designed for people living in rural and peri-urban areas. In 2012, one of the brands of LIXIL Corporation, American Standard received agrant from the Bill & Melinda Gates Foundation (BMGF) for development of a low-cost toilet for pit latrines that led to the launch of theoriginal SATO pan. Since then, more than 2.5 million units of SATO products have been shipped to over 25 countries, including India,Bangladesh, the Philippines, Uganda, Kenya, and Haiti.
About LIXIL
LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone,everywhere. Drawing on our Japanese heritage, we create world-leading technology and innovate to make high quality products thattransform homes. But the LIXIL difference is how we do this; through meaningful design, an entrepreneurial spirit, a dedication toimproving accessibility for all, and responsible business growth. Our approach comes to life through industry leading brands, including
INAX, GROHE, American Standard, and TOSTEM. Over 70,000 colleagues operating in more than 150 countries are proud to makeproducts that touch the lives of more than a billion people every day.

LIXIL Group Corporation (TSE Code: 5938) is the listed holding company for LIXIL’s portfolio of businesses.

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