For Immediate Release
August 21, 2017
LIXIL Group Corporation

LIXIL to Sell Permasteelisa to Grandland
Transaction enables Permasteelisa to join forces with an industry leader in China andbenefit from complementary strengths
LIXIL further optimizes resources for sustainable growthTokyo, Japan - LIXIL Group Corporation (LIXIL Group; TSE code: 5938), a global leader in thehousing and building industry, today announced that it has decided to sell 100% of the sharesof Permasteelisa S.p.A (Permasteelisa) held by its major subsidiary LIXIL Corporation toGrandland Holdings Group Limited (Grandland), a leading Chinese architectural design andconstruction company. The transaction is subject to customary closing conditions andregulatory approvals, including in China, the United States and Russia.
Under the terms of the agreement, the base sale price for Permasteelisa is EURO 467 million.
As a result of this transaction and the deconsolidation of Permasteelisa from LIXIL Group,
LIXIL Group’s revenue for the full fiscal year ending March 2018 is expected to decrease byapproximately 170.0 billion yen from the amount announced on May 8, 2017 (byapproximately 9.2% of the previously forecasted amount). Revenue for the first half of theyear is also expected to decrease by approximately 80.0 billion yen (approximately 9.0%).
Permasteelisa is a leading global contractor in the engineering, project management,manufacturing, and installation of curtain walls and interior systems. The business works withthe world’s most prominent architects to turn their visions into reality, and has a history ofshaping the most iconic skylines and cityscapes around the world with past projects including
the Shard in London, Apple’s new HQ campus in Cupertino, the Sydney Opera House, andthe International Commerce Centre in Hong Kong.
“We are pleased to have reached this agreement today. We believe Grandland will be astrong complementary fit for Permasteelisa and an ideal partner to invest in and grow
Permasteelisa’s business in the future, especially in the fast-growing Chinese market,” said
LIXIL Group President and CEO, Kinya Seto. “LIXIL has learned a great deal about the curtain
wall and commercial interiors business from its ownership of Permasteelisa and we lookforward to applying these lessons to improve our operations. Due to our complementaryareas of business, LIXIL is also open to exploring potential future collaboration withGrandland and Permasteelisa.”

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LIXIL is continually seeking to refine its business portfolio to ensure it is able to optimize
resources and deploy capital for sustained growth. This transaction would improve LIXIL’sbalance sheet and financial strength, by generating cash and reducing debt, but also via an
accelerated cash conversion cycle and improved working capital efficiency. This would enable
the company to make more proactive investments in its business in the future. Thetransaction is also in line with LIXIL’s ongoing efforts to simplify the business structure,enabling further synergies and efficiencies through enhanced integration.
Permasteelisa will become part of a fast-growing business closely aligned to its own
operations. Grandland is focused specifically on architectural decoration activities, including
curtain walls, urban design, mechatronics, and layouts.
Riccardo Mollo, Permasteelisa CEO, who will remain in the position following the transaction,said, “Combining Permasteelisa’s position as a premium leader in the market and scale across
EMEA, North and South America, and Asia Pacific, along with Grandland’s industrial
integration capabilities and strength in China, will create a truly global leader in the curtain
wall segment. While Permasteelisa will maintain its operating independence globally, theopportunities for operating synergies with Grandland are tremendous.”-EndsAbout LIXIL Corporation
LIXIL is a global leader in the housing and building industry. Our unique portfolio spans everything fromtechnologies that revolutionize how we interact with water in our daily lives, to a full lineup of products andservices for houses and major architectural projects. Delivering core strengths in water, kitchen, housing, andbuilding technologies, our brands including LIXIL, INAX, GROHE, American Standard, and Permasteelisa areleaders in the industries and regions in which they operate. LIXIL operates in more than 150 countries andemploys 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, 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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