For Immediate Release
October 31, 2019
LIXIL Group Corporation

LIXIL Group’s Japan Business Drives Growth in H1 FYE 2020
Revenue +4.2%; Core Earnings +150%; Net Profit +¥31.8 billion
Tokyo – LIXIL Group Corporation (“LIXIL Group”, TSE Code: 5938), maker of pioneering water andhousing products, today announced first half results for the fiscal year ending March 31, 2020 (FYE 2020).
The Company delivered year-on-year growth, with revenue up 4.2%, core earnings up 150%, and net
profit growth of ¥31.8 billion.
CEO Comment:“In Japan, we benefited from favorable demand and the absence of natural disasters, which affected firsthalf results last fiscal year. Leading growth in the domestic market were our core housing and waterbusinesses, which were supported by strong demand for home renovation, the impact of theconsumption tax hike, and the increase in new housing starts between January and March this year.
Overseas, revenue and profit increased on a local currency basis despite challenging market conditions.
However, due to the impact of foreign exchange rates, we subsequently recorded lower revenue year onyear. Our priority is to now continue making further operational improvements in Japan while reinforcing
synergy-related product sales and new business developments overseas, ensuring we remain on track toachieve our full-year targets.
I am pleased to report that we also continued to make progress in fields related to ESG, including
meeting our carbon intensity targets two years ahead of schedule. We believe such efforts arefundamental to making a positive contribution to the world around us, and key to becoming a truly
purpose-driven, entrepreneurial company that makes better homes a reality for everyone, everywhere.”-Kinya Seto, CEO, LIXIL GroupH1 Earnings Summary
Revenue
For the first six months of FYE 2020, LIXIL Group’s consolidated revenue grew to ¥925.5 billion, up 4.2%year on year.
Revenue from Japan increased 6.6% year on year to ¥667.6 billion for the same period. Leading thisgrowth was LIXIL Housing Technology (LHT), which recorded a 9% leap in revenue year on year due tofavorable sales of all major product categories. LIXIL Water Technology (LWT) recorded 5% higher
revenue year on year, while the Distribution & Retail (D&R) business also recorded an 8% increase inrevenue.

1|P a g e

Overseas, revenue decreased by 1.9% year on year to ¥271.9 billion. While revenue increased 2.7% on alocal currency basis, this was offset by the impact of foreign exchange rates and market conditions in theAmericas affecting LWT.
Core Earnings
Core earnings increased by 150% year on year to ¥34.5 billion in the first half.
In Japan, core earnings increased in all businesses except LIXIL Building Technology, supported by strong
demand for home renovation products prior to the consumption tax hike and the surge in new housing
starts between January and March. LHT in particular benefited from improved production efficiency
resulting from higher sales.
Core earnings overseas were up, reflecting changes in the sales mix and postponing initiatives such as
marketing activities.
Net Profit
LIXIL Group recorded net profit of ¥23.1 billion the first half, up ¥31.8 billion year on year, due to theincrease in core earnings and gain on the sale of shares of subsidiaries and the disposal of interest in aan affiliated company.

Recent Business Highlights


LIXIL Group continues to review its business portfolio to strengthen its balance sheet and become aleaner and operationally more efficient company, completing the share transfer of two subsidiaries(Senior Life Company and LIXIL SUZUKI SHUTTER) and disposal of interest in an affiliated company(Ken Depot) by September 30, 2019.

Supporting LIXIL Group’s strategy to offset the long-term decline in new housing starts, sales ofrenovation-related products increased by 9.4% year on year, supported by favorable demand andsales of differentiated products. Sales of renovation-related products in the first half now account for
37% of revenue from Japan.

LIXIL Group has achieved its carbon intensity target announced in FYE 2016 two years ahead of plan.
As part of its sustainability efforts and in line with global calls to reduce environmental footprints,
LIXIL Group will also announce a new 2050 Environmental Vision, which aims to strengthen thesustainable use of water and natural resources while achieving net-zero carbon emissions.

LIXIL Group was named in the Dow Jones Sustainability World Index for the first time and the Dow
Jones Sustainability Asia Pacific Index for the third consecutive year. The World Index is comprised
only of companies that rank within the top 10% of their industries, and LIXIL Group’s inclusionreflects its continuing progress in integrating sustainability across its organization.

To strengthen leadership accountability and contribute to enterprise value, LIXIL Group has
introduced a new stock price-linked compensation scheme for directors and executive officers,
2|P a g eenabling them to share the benefits and risks of share-price fluctuations with shareholders. Alreadyapplied to overseas executives since last fiscal year, this new scheme will serve as a common
compensation system for all directors and executive officers of LIXIL Group.
LIXIL Group appointed Nik Bafana as its new Synergy Creation Officer and Chief Integration Officerto accelerate the transfer of technology from Japan into LIXIL Group’s global, multi-brand portfolio,
in addition to developing key product platforms for important new growth categories such as
shower toilets, prefabricated bathrooms, and filtration for the global market. In the first half of FYE
2020, sales of synergy-related products and new business areas accounted for the majority ofoverseas sales growth.

As part of broader HR initiatives to develop a high-performance culture that will enable LIXIL Groupto redefine its Japan business, as well as enhance collaboration with overseas businesses, LIXILGroup appointed a new generation of Corporate Directors. The new appointments represent thecompany’s approach toward promoting talented professionals who have demonstrated their ability
to take on larger roles earlier in their career.
-End-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 makehigh quality products that transform homes. But the LIXIL difference is how we do this; through meaningful design, an
entrepreneurial spirit, a dedication to improving accessibility for all, and responsible business growth. Our approach comesto life through industry leading brands, including INAX, GROHE, American Standard, and TOSTEM. Over 75,000 colleagues
operating in more than 150 countries are proud to make products that touch the lives of more than a billion people everyday.
LIXIL Group Corporation (TSE Code: 5938) is the listed holding company for LIXIL’s portfolio of businesses.

LEARN MORE AT:3|P a g e