For Immediate Release
August 7, 2017
LIXIL Group Corporation

LIXIL Records Increased Revenue and Core Earnings in Q1
LIXIL Water Technology leads growth as synergies positively impact group-wide performance
Tokyo, Japan – LIXIL Group Corporation (“LIXIL Group”, TSE Code: 5938), a global leader in the
housing and building industry, today announced earnings1 for the first quarter of the fiscal year
ending March 31, 2018.
Revenue increased 1.2% year-on-year to ¥431.9 billion due to strong organic growth by LIXIL Water
Technology, in addition to positive contributions by other business units. The increased revenue wasachieved despite the divestment of non-core businesses and deconsolidation of domestic
subsidiaries in the previous financial year.
Core earnings2 increased 27.1% year-on-year to ¥18.7 billion, reflecting improved sales volumes inJapan driven by marketing activities, and cost efficiencies resulting from synergies across LIXIL Group.
Net profit3 amounted to ¥10.2 billion, a decrease of ¥1.4 billion year-on-year. This decrease mainlyreflects the absence of the one-off positive impact from foreign-currency denominated debt
conversion that was recognized in the corresponding period of the previous year.
LIXIL Group President and CEO, Kinya Seto, said, “I am pleased with the solid progress being made on
key initiatives we began last year. From sharpening our operational efficiency, creating synergies, tobuilding key channels to bring us closer to the consumer, these efforts improve short-term
performance and secure our competitiveness for the long term. These initiatives are now taking hold,reflected in a robust first quarter, and will set the foundations for our new medium-term strategy,
which we will announce later this year.”
Summary of Business Performance:
LIXIL Water Technology (LWT), which includes leading global brands LIXIL, INAX, GROHE, andAmerican Standard, reported revenue of ¥166.4 billion, up 5% year on year. Core earnings increasedto ¥15.9 billion, up 14% year-on-year, representing a core earnings margin of 10%. Increased
revenue and core earnings were supported by growth across all LWT regions. Japan led increased
sales following active investment in marketing activities and the increasing popularity of products foreasy cleaning such as shower toilets utilizing LIXIL’s stain-resistant AQUA CERAMIC technology. LWTalso demonstrated significant growth in China.

1All IFRS basedCore earnings in IFRS is equivalent to Operating Profit in JGAAP
3
Profit attributable to owners of the parent
2

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LIXIL Housing Technology (LHT) reported revenue of ¥129.8 billion, down 2% year-on-year,impacted by the divestment of the HIVIC business in the first half of the previous financial year. On a
like-for-like basis, without the impact of the HIVIC divestment, LHT recorded a 2% revenue increase.
Core earnings decreased to ¥6.9 billion, down 22% year-on-year, reflecting an increase in SG&A costs
due to a new allocation method of strategic costs that impacts LWT and LHT, as well as thedivestment.
LIXIL Building Technology (LBT), which includes the Permasteelisa Group, reported revenue of¥60.9 billion, up 3% year-on-year, with revenue increasing both in Japan and overseas. LBT recordeda core earnings loss of ¥0.4 billion, down from a loss of ¥3.3 billion in the previous year. The
significant year-on-year reduction in deficit reflects the positive impact of selective order intakeinitiatives.
LIXIL Kitchen Technology (LKT) reported revenue of ¥28.1 billion, up by 8% year-on-year, and coreearnings turned positive at ¥0.5 billion due to improved profitability of the Japan business. Growth
was led by high demand in Japan for key product series Richelle and Alesta, in addition to increased
sales of compact kitchens aimed at rental apartments.
Distribution & Retail Businesses (D&R) achieved ¥43.9 billion in revenue, maintaining the samelevel year-on-year. Core earnings increased 5% year-on-year to ¥2.6 billion, reflecting improvements
in procurement and cost reductions at existing stores.
Housing Service Businesses (H&S) recorded revenue of ¥11.5 billion, down 24% year-on-year, andcore earnings of ¥0.4 billion, down 57% year-on-year. Results were impacted by the deconsolidationof JIO Corporation at the end of the last financial year.
-EndsAbout LIXIL Corporation
LIXIL is a global leader in the housing and building industry. Our unique portfolio spans everything from technologies
that revolutionize how we interact with water in our daily lives, to a full lineup of products and services for houses andmajor architectural projects. Delivering core strengths in water, kitchen, housing, and building technologies, ourbrands including LIXIL, INAX, GROHE, American Standard, and Permasteelisa are leaders in the industries and regionsin which they operate. LIXIL operates in more than 150 countries and employs more than 70,000 people, bringing
together function, quality, and design to make people’s lives better, and more delightful – wherever they are.
Learn more at www.lixil.com, facebook.com/lixilgroup and www.linkedin.com/company/lixil-group.

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, isinvolved in a broad spectrum of housing-related businesses, ranging from the manufacture and sales of building
materials and housing equipment to the operation of home centers and a network of homebuilding franchises, andcomprehensive real estate service. LIXIL Group Corporation posted ¥1.79 trillion in consolidated sales in FYE March2017.

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