For Immediate Release
November 6, 2017
LIXIL Group Corporation

LIXIL Announces New Medium-Term Strategic Plan:
Toward Sustainable Growth
Strategy to Enhance Competitiveness and Strengthen Profitability
by FYE2021
Tokyo, Japan - LIXIL Group Corporation (LIXIL Group; TSE code: 5938), a global leader in thehousing and building industry, today announced its new Medium-Term Strategic Plan:“Toward Sustainable Growth.” The new MTP outlines the actions LIXIL Group will take acrossits global organization to enhance competitiveness and profitability over the three-year
period through FYE2021, setting the company on track to achieve long-term sustainablegrowth.

“LIXIL Group’s core philosophy has always been about innovating superior products andservices to improve how people live around the world, and this will not change. Rather, wewill make this a truer statement than it has ever been before,” said Kinya Seto, President andCEO of LIXIL Group.
“Building on our core philosophy, our new medium-term plan will reshape LIXIL Group,
turning us into a more agile, innovation-focused, and entrepreneurial-minded manufacturer.
In a mature market, innovation and the ability to deliver attractive and differentiatedproducts is critical to securing competitive advantage. We have successfully steered theorganization in this direction over the past two years, reviewing our business portfolio,
simplifying our organizational structure, and strengthening our balance sheet to create aleaner and more operationally efficient company. We are now positioned to advance to thenext stage, in which we will become a truly unique company providing differentiatedproducts that can achieve sustainable competitiveness and deliver long-term value for ouremployees and shareholders,” said Seto.

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Key Financial Targets
LIXIL Group has outlined financial targets that reflect the establishment of a more profitable,financially robust organization over the MTP period, in line with the goal to enhance
profitability. By FYE2021, LIXIL Group aims to:Increase core earnings ratio to 7.5%
Increase return on equity to at least 10%
Reduce net debt/EBITDA to <2.5x
Increase ratio of equity attributable to owners of the parent1 to 35%

Strategic Initiatives
As LIXIL Group grows in Japan and overseas through its key regional operations in EMENA,Americas, Asia Pacific, and Sub-Saharan Africa, the company will focus on four strategicorganization-wide initiatives to achieve its medium-term goals and targets:Establish a purpose-driven, entrepreneurial company: LIXIL Group will continue totransform its organizational culture to create a more agile work environment thatenables greater and faster exchange of ideas, a more experimental approach, andbecome a workplace in which entrepreneurialism is a universal value among allemployees globally.
LIXIL Group also aims to be a company that evokes respect and passion, and thatinspires and binds all of its employees through goals that go beyond everyday life.
LIXIL Group will continue to invest in its business-focused strategy to improve
sanitation for 100 million people by 2020, as well as furthering its commitments topromote water conservation and environmental sustainability, and diversity andinclusion.

Develop attractive and differentiated products: In the increasingly commoditized
lifestyle products industry, LIXIL Group will drive profitable growth by refocusing
investment in and strengthening the distinctive DNA of its power brands, which will
be clearly segmented to appeal to a wide selection of lifestyles, needs, andpreferences.
The company will place greater emphasis on innovation, design, and quality to meetchanging consumer needs and tastes. To support this, LIXIL Group will transition to amore asset-light business model with strong intellectual property for productdevelopment, enabling it to introduce differentiated products to market in shorter
cycles. LIXIL Group will also reform its organizational structure in Japan by integrating

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2|P a g edevelopment, production, and sales functions in order to further accelerate productdevelopment cycles.
Achieve competitive costing: To further strengthen its balance sheet and improve
profits, the company will continue its development of an efficient and flexible supply
chain management structure, combined with new technologies and infrastructuredevelopment to improve cost control. This includes initiatives such as the “HQ-FITProgram,” which will improve the productivity and efficiency of corporate functions
and redeploy personnel to departments with resource need, further contributing tocost efficiencies.

Strategic marketing to drive growth: LIXIL Group will increase its direct
engagement with end-users and influencers. For example, this includes using digitaltechnology such as its K-engine platform, a unique digital database that is capable ofproviding a cost and quantity survey for a house in five minutes, and innovative
business models such as the LIXIL PATTO Reform Service, which is stimulating new
demand for home renovation in Japan by eliminating common concerns for first-timerenovation consumers.

Growth in the Future
As the world’s population and the middle-income segment grows, the demand for housing
and water technology products and services will continue to expand. The MTP will reshape
LIXIL Group, enabling it to become a truly differentiated and unique housing and watertechnology company with the world’s most respected and powerful brands. LIXIL Group will
become an organization that can adapt and innovate faster, providing differentiated products
and services that will enable it to capture revenue growth in the future.
For details about the new Medium-Term Strategic Plan, please visit: www.lixil.com-Ends-3|P a g e

Contact:
Public Affairs Division, LIXIL Corporation
pr_global@lixil.com
Tel: +81-3-6268-8801

About 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 housing 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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