For Immediate Release
May 29, 2020
LIXIL Group Corporation

LIXIL Core Earnings Up 7.5% in FYE 2020 as CompanyTransitions to New Normal-Net profit up by ¥64.7 billion, primarily due to the decrease in Permasteelisa losses as well asstrong H1 performance-FYE 2021 forecast postponed due to unprecedented nature of COVID-19

Tokyo – LIXIL Group Corporation (“LIXIL Group”, TSE Code: 5938), maker of pioneering water andhousing products, today announced full-year results for the fiscal year ended March 31, 2020 (FYE 2020)1,reporting stable revenue and an increase in profit.
CEO Statement:“We have achieved solid full-year results following strong performance in the first half of the year in
addition to transformation measures underway across LIXIL Group. However, the impact of COVID-19
remains profound and unpredictable. We moved quickly to prioritize the safety of our employees andstakeholders, and also mobilized our global supply chain, enabling us to temporarily close facilities toensure safety while continuing to steadily supply our customers worldwide.
As a result of these measures, our revenue is in line with guidance, while core earnings and net profit
increased due to production efficiencies at LIXIL Housing Technology and the decrease in losses from
Permasteelisa. In addition, we took significant steps to achieve our medium-term strategy, fromcreating a more agile operating structure to driving workforce transformation, keeping us on the path toachieving sustainable growth and competitiveness.
Our industry, much like the rest of the world, is now shifting toward a new normal. Steps that we hadalready been taking to introduce new technologies and promote flexible working have been accelerated
and are here to stay. We are also seeing increasing demand for health and hygiene-related products,
such as touchless faucets and IoT delivery boxes, marking what could be a long-term change inconsumer values. We will continue to deliver products that make a meaningful difference to how people
live, helping to make better homes a reality for everyone, everywhere.”-1

Kinya Seto, CEO, LIXIL GroupAs disclosed in the “Notice of Transfer of Consolidated Subsidiary (Share Transfer)” on May 1, 2020, business operations of Permasteelisa

S.p.A. and its subsidiaries are classified as “discontinued operations” from Q4 FYE2020.

1|P a g eFull-Year Earnings Summary
Revenue
Revenue increased to ¥1,694.4 billion over the twelve-month period, up 0.1% year on year.
In Japan, revenue for the full year increased to ¥1,323.1 billion, up by 0.6% year on year. LIXIL Housing
Technology (LHT), LIXIL Water Technology (LWT) and Distribution & Retail (D&R) contributed to year-onyear growth, with favorable demand in the first half of the year offsetting a decline in demand in thesecond half following the consumption tax hike and impact of COVID-19.
In overseas markets covered by LIXIL International, revenue decreased by 2.5% year on year to ¥398.6billion, but increased by 1.2% on a local currency basis. Revenue over the full-year period grew in EMEA
and China, remained flat in the Americas, but decreased in South East Asia.
Core Earnings
Core earnings increased to ¥58.6 billion over the twelve-month period, up 7.5% year on year. However,when excluding the impact of the long-term beneficial Career Option Program introduced for employees
in Japan, core earnings increased to ¥64.1 billion, up 17.7% year on year.
In Japan, core earnings increased primarily due to strong first-half performance and continued
improvements to LHT’s pricing revisions, productivity, and ongoing platform strategy.
In overseas markets, core earnings increased in all regions except for South East Asia, reflecting increased
sales in EMEA and China, as well as ongoing pricing and SG&A initiatives in the Americas.
Net Profit
LIXIL Group recorded net profit of ¥12.5 billion, an increase of ¥64.7 billion year on year. The increasereflects the decrease in losses incurred by Permasteelisa and improvement to core earnings, despite
recording expenses related to COVID-19.
FYE 2021 Full-Year Forecast
LIXIL Group has postponed its full-year financial forecast due to the unforeseeable and evolving impact
of COVID-19.

Notable Business Highlights in FYE 2020
LIXIL Group aims to become an entrepreneurial company that can achieve sustainable growth bycontributing to society. In line with the direction management has set out in its Medium-Term Strategy, it
has taken significant steps in FYE 2020 to:-Realign Business Portfolio: LIXIL Group has divested subsidiaries Ken Depot (June 2019), Senior Life
Company (September 2019), LIXIL SUZUKI SHUTTER (September 2019), and announced the sale ofPermasteelisa (May 2020). These transactions are in line with LIXIL Group’s ongoing efforts to simplify
its business structure and focus on its core water and housing businesses, enabling further synergies
2|P a g eand efficiencies through enhanced integration. In addition, this will enable LIXIL Group to strengthen
its balance sheet and financial position by generating cash, reducing debt, and improving working
capital efficiency, allowing for greater investment in new and profitable growth areas within its corebusinesses.
-Become a more efficient and agile company: LIXIL Group announced it will merge with LIXIL
Corporation in December 2020, transitioning from its current group structure to a simplified
operating structure. It has also flattened its organization structure in Japan, while centralizing
reporting for core functions across its regional platforms. These changes will enhance the company’sagility, enabling faster decision-making and overall management efficiency, as well as improving
group governance.

-Revitalize Japan Operations: LIXIL Group launched a series of employee-focused initiatives underits “Kawaranaito LIXIL” program to revitalize its operations in Japan and promote a meritocraticculture. These initiatives aim to create a more consumer-centric organization, accelerate and enhance
multigenerational career planning, and boost employee engagement. The new “Career Option
Program”, a solution that benefits employees, is one such initiative aiming to address the aging
management structure facing many larger Japanese corporations today.

-Accelerate Digital Transformation: LIXIL Group’s portfolio of digital tools, introduced as part of its
workforce transformation initiatives, have enabled its employees to rapidly transition to working
remotely in the “new normal”, while even enhancing workforce productivity and strengthening
business continuity. The company also continues to advance IoT products and services to define thenext-generation home, while leveraging available and proprietary technology to get closer to theconsumer, including digitalizing its showrooms.

-Develop Differentiated Products: After reworking its entire in-house design process, LIXIL Groupunveiled the global expansion of its new INAX collections at Milano Salone, for the first time showing
the brand’s new design values and signature elements that will be applied to its platform strategy.
INAX picked up 15 iF Design Awards in 2020 alone, demonstrating the future potential of its designs.
In addition, LIXIL Group continues to tie-up with leaders in the housing industry to collaborate andexpand into the high-end market.

-Become a Purpose-Led Organization: LIXIL Group aims to contribute to society through itsbusiness. Operationally, it has achieved its carbon intensity targets two years in advance and haslaunched its Environmental Vision 2050, establishing targets aligned with the UN SDGs. LIXIL Group
has also continued to leverage its know-how in the water industry to help improve access tosanitation for 18.6 million people worldwide through its SATO social business. For the first time, LIXILGroup is now included in the DJSI World Index.
-End-3|P a g e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. 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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