For Immediate Release
May 8, 2017
LIXIL Group Corporation

LIXIL Announces Record High Net Profit for FYE2017
All businesses record increased profits, resulting in V-shaped recovery in net profit
Tokyo, Japan - LIXIL Group Corporation (LIXIL Group; TSE code: 5938), a global leader in housing
and building materials, products and services, today announced earnings1 for the fiscal year
ended March 31, 2017. On a consolidated basis, revenue declined 6% year-on-year to ¥1.79
trillion due to divestment of non-core businesses and impact of selective order intakes by LIXIL
Building Technology. Core earnings rose 26% year-on-year to ¥88.3 billion, benefitting fromsynergies achieved across the Group and measures to strengthen profitability.
Net profit2 turned positive, increasing by ¥68.1 billion from the previous year due to a reduction in
one-off losses, and reached ¥42.5 billion. Return on equity (ROE) improved 12.5 percentage points
compared to last year, reaching 7.9%. LIXIL Group will pay a second half dividend of ¥30, totaling¥60 yen for the year, which is consistent with the previous year.
While revenue was in line with the previous forecast announced in October 2016, core earnings
outperformed guidance by ¥8.3 billion. This was due to LIXIL Water Technology’s continued growth,
the impact of domestic cost reductions, and initiatives to reduce overall SG&A expenses. For thefiscal year ending March 31, 2018, LIXIL Group projects a 4% increase in revenue to ¥1.85 trillion and8% improvement in core earnings to ¥95 billion in anticipation of further growth centered onoverseas markets and profitability improvement in domestic businesses.
LIXIL Group President & CEO, Kinya Seto, commented, “The improvement in profitability that wehave seen is validation of the sustained efforts made to improve operational efficiency and our drive
to deepen integration across the Group. This year we plan to build on our successes by focusing
even more deeply on getting closer to our customers and consumers through new initiatives andmarketing channels. To this end, we are now developing a new medium-term business plan, which
we will announce during the fiscal year.”Business Results and Priorities
LIXIL Water Technology (LWT), which consists of leading global brands LIXIL, INAX, GROHE, andAmerican Standard, achieved revenue of ¥662 billion. This is a 2% decrease year-on-year but a 4%increase year-on-year on a local currency basis. Core earnings increased 19% to ¥65.1 billion,representing a 10% core earnings margin, which is a 2 percentage point increase compared to lastyear. The improvement in core earnings is attributed to the introduction of new products and12IFRS based
Net profit attributable to owners of the parent

1|P a g econtinued growth in Japan and overseas markets. By region, revenue grew in North America by 7%,in EMEA (Europe, Middle East, and Africa) by 5%, in Asia Pacific by 8%, and in Japan by 1%. For theyear ending March 31, 2018, LIXIL Group projects further growth in revenue of 6% to ¥703 billion
and core earnings growth of 3% to ¥67 billion. The core earnings margin is anticipated to remain
steady at 10%. This growth will be secured as a result of advancing LWT’s platform strategy,
improving supply chain efficiency, expanding sales of shower toilets in the global market, and byachieving further synergies across the business.
LIXIL Housing Technology (LHT) recorded revenue of ¥544 billion, down 4% year-on-year as aresult of the divestment of HIVIC during the first half. Core earnings increased 3% to ¥39.2 billion,
benefiting from cost reductions, resulting in a core earnings margin of 7%. For the year ending
March 31, 2018, LIXIL Group projects a 1% decrease in revenue to ¥537 billion and 6% increase incore earnings to ¥41.5 billion, bringing the core earnings margin to 8%. LHT will develop new homerenovation products that reduce installation time, enhance marketing activities, and focus on being
more responsive to market conditions.
LIXIL Building Technology (LBT), which includes Permasteelisa Group, recorded a 21% decrease inrevenue year-on-year to ¥264 billion, impacted primarily by the sale of Shanghai Meite in theprevious year. Due to continued selective order taking, LBT returned to profitability, recording coreearnings of ¥3.8 billion. For the year ending March 31, 2018, LIXIL Group projects a 6% increase inrevenue to ¥279 billion and a 69% increase in core earnings to ¥6.5 billion. Targeting of higher
profitability markets and tight project execution will contribute to this growth.
LIXIL Kitchen Technology (LKT) revenue increased 2% year-on-year to ¥115 billion. Core earnings
increased 147% year-on-year to ¥4.3 billion, representing a margin of 4%, which is an over 2
percentage point increase compared to last year. In addition to higher sales of the Richelle system
kitchen, core earnings benefited from reductions in production costs. For the year ending March 31,
2018, LIXIL Group projects revenue to remain flat at ¥115 billion, while core earnings are expected
to grow by 16% to ¥5 billion. Core earnings growth is expected to result from profitability
improvements for mid and high-end products.
Distribution & Retail Business (D&R) reported a 7% decrease in revenue to ¥172 billion due tothe sale of a business in the previous year. Core earnings increased by 2% to ¥7.3 billion,
representing a margin of 4%. LIXIL VIVA Corporation was listed on the Tokyo Stock Exchange on
April 12, 2017, in order to actively open new stores and pursue further growth. For the year ending
March 31, 2018, LIXIL Group anticipates a 6% increase in revenue to ¥183 billion and 23% increasein core earnings to ¥9.0 billion, representing a margin of 5%.
Housing Service Businesses (H&S) recorded an increase in revenue of 8% to ¥64.4 billion and 17%
increase in core earnings to ¥4.4 billion, resulting in a margin of 7%. For the year ending March 31,
2018, LIXIL Group anticipates revenue to decrease 11% to ¥57 billion and core earnings to decreaseby 21% to ¥3.5 billion due to the impact of deconsolidation of JIO Corporation.
LIXIL Group also announced candidates for Executive Officers for the new fiscal year, which will beput to the Board of Directors following the Annual General Meeting in June. LIXIL Japan Company
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COO, Kazuhiko Ootsubo, Managing Director of R&D, Ryo Nihei, and Chief Digital Officer, YugoKanazawa, have been nominated as new candidates in a move that will bring additional operational,
R&D and digital insights to the leadership team. As part of the transition, Executive Officer andExecutive Vice President, Toshimasa Iue will step down.
-Ends-About LIXIL
LIXIL Corporation is a global leader in housing and building materials products and services. The foundation ofLIXIL’s success is our constant investment in technological innovation to improve the way we live. Delivering corestrengths in water, housing, building and kitchen technologies, our brand portfolio businesses LIXIL, GROHE,
American Standard Brands and Permasteelisa are leaders in the industries and regions in which they operate. LIXIL
produces some of the world’s most fundamental and innovative products and services, and our solutions are an
integral part of some of the world’s most iconic and cutting-edge living and working spaces. Operating in morethan 150 countries, and employing more than 80,000 people, we bring together function, quality and design tomake people’s lives better, and more delightful – wherever they are.

About LIXIL Group
LIXIL Group Corporation (TSE Code: 5938) is the listed holding company containing LIXIL Corporation, LIXIL VIVACORPORATION and LIXIL Housing Research Institute, Ltd. The Group, which is led by President and CEO Kinya
Seto, is involved in a broad spectrum of housing-related businesses, ranging from the manufacture and sales ofbuilding materials and housing equipment to the operation of home centers and a network of homebuilding
franchises, and comprehensive real estate service. LIXIL Group Corporation posted ¥1.79 trillion in consolidated
sales in FYE March 2017.

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