For Immediate Release
May 13, 2019
LIXIL Group Corporation

LIXIL Group Announces New Management PlanThat Will Unlock Its Full Potential-New management plan to enhance strategic direction of business and management-Target ¥2 trillion revenue and 6.3% core earnings margin by FYE 2024

Tokyo – LIXIL Group Corporation (“LIXIL Group”, TSE Code: 5938), maker of pioneering water and housing
products, today announced a new management plan to unlock the full potential of the company. Fromleveraging group assets to capture growth opportunities, to transforming business models and enhancing
its group management structure and practices to enhance corporate value, the new management plan willbuild on the already strong foundations of the business to push the boundaries of what LIXIL Group canachieve. The new management plan aims to achieve ¥2 trillion revenue and 6.3% core earnings margin by
FYE 2024.

BackgroundThe new management plan is guided by three key beliefs.
The first is Diversity. LIXIL Group has accumulated diverse, distinctive and valuable assets and talents
through the various stages of its evolution, from its powerful global brands and pioneering technologies toits people. It will leverage its diversity to maximize the group’s growth and corporate value.
The second belief is called Beyond. LIXIL Group is already progressing strategies and initiatives that are
moving in the right direction. While these will continue, the company will seek to take key initiatives evenfurther.
The third is Team Leadership. LIXIL Group can fully leverage its size and diversity by empowering multiple
leaders in different businesses who show strong ownership and self-discipline.

Summary of Strategic Direction
Built on these beliefs, the new management plan aims to enhance the strategic direction of the businessand management. To do this, it will focus on five key areas:

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Management

Direction ofDirection ofCapture: LIXIL Group will capture market opportunities by leveraging its existing distinctive
assets. This includes regaining market share in the Japan market and enhancing its productlineup and by optimizing production. Globally, LIXIL Group will continue to strengthen its
water technology business, including through its shower toilet strategy and the global
expansion of the GROHE brand, as well as turning around Permasteelisa and LIXIL Group’s
Africa business unit.

Transform: LIXIL Group will seek to enhance its domestic channels, while making a global
quantum leap in productivity and implementing a group-wide digital vision that willenhance consumer journey innovation and create new B2B business.

Create: LIXIL Group will offer solutions that provide new value to living and working spaces,such as health-related aspects. It will also develop new growth engines through innovative
business models, such as enhancing the water management business in global markets.

Re-enhance: LIXIL Group will strengthen its governance and compliance, whileimplementing a group management scheme to maximize corporate value, including
establishing a holding company focusing on mid-to-long term corporate value
maximization.

Ahead: LIXIL Group will develop next-generation leadership, new corporate responsibility
activities, while rebuilding group ties such as LIXIL Behaviors.

Financial Targets
By unlocking the full potential of the LIXIL Group, the company aims to achieve the following financial
targets:

2|P a g eThrough the new management plan, LIXIL Group will become an organization that fully leverages its globalassets, develops transformative and innovative business models and products, and contributes to thesustainability of the world around it.
-Ends-Note to Editors:
To learn more about LIXIL Group’s new management plan, click the link below.

>Investor News: New Management Plan

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 make highquality 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 comes tolife through industry leading brands, including INAX, GROHE, American Standard, and TOSTEM. Over 70,000 colleagues
operating in more than 150 countries are proud to make products that touch the lives of more than a billion people every day.
LIXIL Group Corporation (TSE Code: 5938) is the listed holding company for LIXIL’s portfolio of businesses.

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