For Immediate Release
May 9, 2016
LIXIL Group Corporation

LIXIL Delivers Strong Sales and Profit Growth for FYE 2016
Japan renovation and international operations of LWT and LBT key sales drivers
Tokyo, Japan – LIXIL Group Corporation (“LIXIL Group”), a global leader in housing and building materials,
products and services, today announced earnings for the fiscal year ended March 31, 2016. On a
consolidated basis, net sales under JGAAP rose 10% year-on-year to ¥1.85 trillion. Sales were bolstered bythe renovation sales in Japan, which ended the year up 9% year-on-year, and LIXIL Building Technology’s(“LBT”) and LIXIL Water Technology’s (“LWT”) overseas businesses, including the GROHE consolidation inLWT.
Core earnings under JGAAP reached ¥56.3 billion, a 9% increase year-on-year, resulting in a core earnings
margin of 3.0%, close to the same level as the previous year. Excluding exceptional items, core earnings
reached ¥65.1 billion, a 26% increase year-on-year demonstrating the strong trajectory the company is on.
Net income1 turned to negative ¥18.7 billion due to extraordinary losses such as loss on investment toassociates and other factors. LIXIL Group will pay a second half dividend of ¥30, totaling ¥60 for the year,
consistent with the previous year.
Sales and core earnings ended up slightly below the revised forecast for the full fiscal year ending March
31, 2016 announced on November 2, 2015. Core earnings were impacted by a number of one-off items
including actuarial losses of ¥10.8 billion in Japan affected by the decline of interest rates, and a shortfallof ¥5.8 billion for the LBT overseas business caused by the deterioration of market conditions in China andthe Middle East.
LIXIL Group President & CEO, Yoshiaki Fujimori commented, “We are pleased to announce solid sales
growth, which reflects the progress we have made globalizing LIXIL Group. We have also taken proactive
steps during the past year to drive greater value within our operations, which includes executing on anumber of strategic decisions that will leave the company in a stronger position to move forward. Overthe past five years, LIXIL Group has transformed its corporate culture, improved operational efficiency andgovernance practices, and significantly expanded its global footprint, with overseas sales now
representing 30%. The business is now in the strongest possible shape to deliver further growth and value
in the years to come.”
Commenting on the strategic priorities for FYE 2017, LIXIL Group Chief Operating Officer, Kinya Seto, who
is expected to take over as President and CEO in June, said, “Part of my first 100 days at LIXIL was spent
listening to and speaking with colleagues across the organization at all levels, including at many of ourfactories across ten major countries. I am impressed with this global company, and our employees areclearly excited about the future. Our immediate focus now will be to get the basics right for our long-term
success, such as maximizing synergies, strengthening compliance, and becoming a leaner, simpler and1

Profit attributable to owners of the parent

1|Pagemore nimble organization in order to deliver sustainable growth. Our success will also be determined by
our ability to be an excellent manufacturer and bringing a clear value proposition to customers in Japan,
our single most important market.”Business Results and Priorities2
LIXIL Water Technology (LWT), which consists of leading global brands, LIXIL, INAX, GROHE, andAmerican Standard, saw sales of ¥637.7 billion in FYE2016, up by 54%. Core earnings were ¥52.1 billion,
up by 100%, representing an 8% margin. In FYE2017, sales are expected to decline slightly by 1% to ¥630
billion, and core earnings are expected to grow 5% to ¥54.5 billion with a margin of 9%. On a constantcurrency basis, sales are expected to grow by 3%. The strategic priorities behind this expected growth
include regaining the success of American Standard in core U.S. market, entering the ceramics market inEurope, rolling out the shower toilet globally, and expanding faucet sales in the U.S.
LIXIL Housing Technology (LHT) recorded sales of ¥604.6 billion, down by 2%, while core earnings wereup 16% to ¥40.3 billion, representing a margin of 7%. In FYE2017, sales are expected to grow 1% to ¥608
billion, and core earnings are expected to grow 8% to ¥43.5 billion, with a margin of 7%. The strategic
priorities for LHT are to secure productivity improvements, focus on hybrid windows made of an
innovative combination of aluminum and plastic materials, and enhance market share of a highperformance plastic windows, as well as develop products for the reform business, especially focusing oneasy and fast installation products.
LIXIL Building Technology (LBT) saw sales of ¥332.0 billion in FYE2016, down by 5%, and a coreearnings loss of ¥5.6 billion for the period. The results were impacted by non-recurring items including
additional provisions for Shanghai Meite, which LIXIL Group sold in March 2016, and for several
Permasteelisa projects caused by the economic slowdown in the Middle East and China. In FYE2017, sales
are expected to fall 4% to ¥319 billion, reflecting challenging conditions throughout Asia. However, coreearnings are expected to turn positive at ¥8.5 billion, with a margin of 3% in part through the sale ofunder-performing business like Shanghai Meite, and improved management of profitability and cash flowat the Permasteelisa Group.
LIXIL Kitchen Technology (LKT) sales declined by 3% to ¥112.1 billion for FYE2016, while core earnings
turned positive to ¥1.8 billion, with a margin of 2%. In FYE2017, sales are expected to grow 2% to ¥114
billion, and core earnings are expected to grow 14% to ¥2 billion. Strategic priorities for LKT will beimproving the profitability in Japan by better plant management and maximizing productivity as well as
reviving the JV in China.
Distribution & Retail Businesses (D&R) and Housing Service Businesses (H&S) reported a solid
performance. LIXIL VIVA, which operates a nationwide chain of home centers, has recorded an increase insales for 11 consecutive years. Adjusting for the carve-out of Ken Depot in October 2015, D&R’s overallsales increased by 3% to ¥168.8 billion for the period. D&R’s adjusted core earnings reached record high¥7.3 billion, with a margin of 4%. H&S saw sales of ¥63.7 billion, and core earnings of ¥4.3 billion,
reflecting a 7% margin. In FYE2017, sales at D&R are expected to grow 2% to ¥173 billion, and core

2Financial information by business based on IFRS. Results in FYE 2016 are preliminary figures. Core earnings in IFRS = Revenues – Cost ofSales – SG&A; same as Operating Profit in JGAAP.

2|Pageearnings are expected to increase by 3% to ¥7.5 billion, with a margin of 4%. Sales at H&S are expected togrow 7% to ¥68 billion, and core earnings are expected to grow 29% to ¥5.5 billion, with a margin of 8%.
LIXIL Group will begin to apply the International Financial Reporting Standards (IFRS) for the Security
Report for the fiscal year ending March 2016. For FYE2017, based on IFRS, the Company forecasts net
sales of ¥1.88 trillion. Core earnings are forecast to reach ¥73.0 billion, a 4% improvement from thepreliminary figure of previous year. Net income will turn to positive, with a target of ¥28.0 billion.
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-EndsAbout LIXIL
LIXIL Corporation is a global leader in housing and building materials products and services. The foundation of LIXIL’s
success is our constant investment in technological innovation to improve the way we live. Delivering core strengths inwater, 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 mostfundamental 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 more than 150 countries, and employing more than 80,000
people, we bring together function, quality and design to make people’s lives better, and more delightful – wherever theyare.
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 is involved in a broad spectrum of housing-related
businesses, ranging from the manufacture and sales of building materials and housing equipment to the operation of homecenters and a network of homebuilding franchises, and comprehensive real estate service. Led by President and CEO
Yoshiaki Fujimori, the Group posted ¥1.85 trillion in consolidated sales in FYE March 2016.

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