For Immediate Release
May 1, 2020
LIXIL Group Corporation

Update on LIXIL’s Response to COVID-19
Tokyo, Japan – The COVID-19 pandemic is having an unprecedented impact on the lives and livelihoodsof people across the world. As a maker of pioneering water and housing products, LIXIL Group
Corporation (“LIXIL”, TSE Code: 5938) is working to keep employees safe, ensure businesses remain
operational and able to continue providing products that support proper sanitation, hygiene and healthyliving spaces, as well as taking steps to contribute to COVID-19 response efforts.
With a strong focus on leveraging digital technologies, the company’s response has been based aroundthree key principles:1.

A globally consistent “people first” policy:

LIXIL’s businesses operate across more than 150 countries and regions. To ensure consistency ofpolicy implementation and treatment toward employees and business operations, we established across-functional Global Health Taskforce to set HR guidelines and other critical operational
procedures to ensure local actions were consistent with the company’s guidelines to maintain a“people first” approach.

As of February 20, LIXIL had already banned large meetings of more than 10 people in Japan; manyoverseas sites followed suit in a matter of weeks in line with local developments. The company also
moved quickly to introduce work-from-home policies in many regions including Japan prior toofficial government guidance. As a result, over 50% of employees at LIXIL’s HQ (capacity: 5000people) were working remotely by March 2, over 85% by March 27, and over 98% since April 8. Thecompany also issued a special one-time allowance to all employees of 50,000 yen or cash equivalent
to support with unplanned expenses related to COVID-19.

With multiple digital technology platforms already available to employees across LIXIL, rapid
adoption and increased usage with remote working has enabled and, in some business functions,even enhanced workforce productivity and business continuity. The same technologies have beenutilized for increased leadership townhalls and two-way communication to ensure employees stayconnected.

While the virus remains highly concerning, LIXIL is confident that its swift and decisive measurestaken to protect employees have enabled a significant reduction of risk to employees.

In line with these efforts, LIXIL’s latest employee survey taken in April to measure the response toremote working indicated a 10% increase in engagement among employees based in Japan
compared to data from December. The company will continue to measure employee sentiment inJapan and overseas.
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2.

Supporting customers through stable operations:

LIXIL has relied on its diversified global operations and digital technologies, already introduced aspart of its transformation measures, to maintain stable operations and supply of products andservices to our customers.

For example, business continuity for LIXIL’s 92 showrooms across Japan is possible through virtual
consultation using a combination of commercially available technologies and unique proprietary
technologies designed by LIXIL’s in-house digital team. Sales teams have also been able to continue
connecting with customers and business partners via web conferencing tools. In addition, LIXIL wasable to complete the smooth and timely onboarding of 200 new graduate employees on April 1 byrelying 100% on digital tools.

Learning from past supply chain disruptions, LIXIL has been enhancing its manufacturing and supply
chain protocols to enable multiple-site manufacturing capabilities for a variety of key products inrecent years. With the commencement of an enhanced global manufacturing and supply chain
operations structure as of April 1, the company now has greater operational responsiveness due tothe global footprint and high vertical integration of its factories.

In Japan, LIXIL experienced delays in sourcing parts from overseas suppliers, resulting in delivery
delays for certain products such as toilets. The situation has been improving since the end of Marchand we continue to make every effort to ensure a stable supply of products.

Some plants halted production for fixed periods of time to ensure employee safety and to be incompliance with guidance from national and local governments. As of April 27, 2020, the majority of
LIXIL’s plants and sites are in operation. In line with LIXIL’s “people first” policy, we have additionalsafety policies in place for those who are still required to travel to work, such social distancing, shift
moderation, helping employees avoid public transport, and other hygiene measures.

3.

Contributing to our communities:

Watch video on how LIXIL employees are contributing to COVID-19 response efforts(YouTube link)As operations have stabilized, LIXIL employees have established virtual working groups to sharebottom-up initiatives to help respond to COVID-19. From 3D printing of personal protective
2|P a g eequipment (PPE) for healthcare workers, hygiene initiatives to support customers, to unique ideas for
new housing products that could support better hygiene and safety, employees have engaged eachother by leveraging internal social media platforms to collaborate on and share these ideas. Asummary of these initiatives can be found in the video above.
LIXIL brands such as SATO, which provides affordable and innovative toilet solutions for places thatlack proper sanitation, are also working with our supply chain and sector partners to fill gaps. SATO isin discussion with global partners such as UNICEF to support the most vulnerable populations during
this pandemic.

Kinya Seto, CEO of LIXIL, said, “The COVID-19 pandemic has brought unthinkable pain and disruption,
and we would like to send our heartfelt condolences to those who have been affected. We are still a longway from understanding the full impact of this crisis, but I am proud of the way that LIXIL has cometogether to protect our people and support our customers and communities. Our transformation efforts
to simplify and modernize the company have laid the groundwork for LIXIL’s swift response and ability tomaintain stable operations. We will continue to seek ways to contribute during these uncertain times.”-EndAbout 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. Approximately 75,000
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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