For Immediate Release
June 9, 2016
LIXIL Group Corporation

New Executive Management System Introduced to Emphasize
Performance Driven Culture
Tokyo, Japan – LIXIL Group Corporation (“LIXIL Group”), a global leader in housing and building
materials, products and services, today announced that as part of its ongoing efforts to improve
corporate governance, enhance the accountability of senior executives and streamline decisionmaking processes, it will apply a new, simplified executive management system. This change,
which also includes LIXIL Corporation, was approved by LIXIL Group’s Executive Officer
Committee and LIXIL Corporation Board. The change, which will be effective July 1, will bring
LIXIL Group closer to a sustainable ratio of executive management positions relative to the sizeand scope of its business.
Under the new system, LIXIL Group will operate with five levels of executive management:
President/CEO, Executive Vice President, Senior Managing Director, Managing Director, andCorporate Director (“Riji”). This change will also include a reduction in the number of executive
management positions across senior ranks and the elimination of the rank of ‘Corporate Officer’.
Members of the new executive management system will be offered employment on an annual
contract basis, with renewal based on performance. These changes will enhance theaccountability of senior executives and promote a higher performance culture at the top ranks ofLIXIL Group.
In line with this system change, LIXIL Group will reduce existing executive management roles inJapan by about 54% from 114 to 53 individuals. Simplification of senior management will also
create new opportunities for young talent to be recruited and developed.
In addition to the changes to the executive management system, to contribute to LIXIL Group’s
ongoing efforts to operate a leaner headquarters with reduced costs, LIXIL Group’s Internal
Directors and Executive Officers will take a reduction in base compensation, pending approval
from the Compensation Committee. These changes, in addition to changes previously
announced on March 7, are expected to decrease overall executive compensation costs byapproximately 25%. In addition, Kinya Seto has requested to decline his base salary in cash

compensation, and replace his compensation with 100% equity for one year, also pending
approval of LIXIL Group’s Compensation Committee.
The core compensation structure for senior executives will not change, including performancerelated schemes known as Short Term Incentive (STI) and Long Term Incentive (LTI). LTI, which isdefined by an aggregated performance target across three consecutive fiscal years, is accrued orreserved but not paid unless the company meets defined targets.
LIXIL Group COO Kinya Seto said “We are committed to building a leaner, simpler LIXIL to securevalue-driven growth. We also aspire to develop a stronger performance driven culture, and that
culture starts from the top. Having the right executive management system for our company’sfuture is key to securing this growth; not only from a governance and efficiency standpoint, butalso in terms of creating space for us to invest in future talent. Today’s changes demonstrate thelevel of our commitment to this task, and my own intention to decline a base salary in exchange
for equity shows the confidence that I have in LIXIL’s bright future.”-EndsAbout LIXIL
LIXIL Corporation is a global leader in housing and building materials products and services. The foundation of LIXIL’ssuccess is our constant investment in technological innovation to improve the way we live. Delivering core strengths inwater, housing, building and kitchen technologies, our brand portfolio businesses LIXIL, GROHE, American Standard
Brands and Permasteelisa are leaders in the industries and regions in which they operate. LIXIL produces some of theworld’s most fundamental and innovative products and services, and our solutions are an integral part of some of theworld’s most iconic and cutting-edge living and working spaces. Operating in more than 150 countries, and employing
more than 80,000 people, we bring together function, quality and design to make people’s lives better, and moredelightful – wherever they are.
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 is involved in a broad spectrum of housingrelated businesses, ranging from the manufacture and sales of building materials and housing equipment to theoperation of home centers and a network of homebuilding franchises, and comprehensive real estate service. Led byPresident and CEO Yoshiaki Fujimori, the Group posted ¥1.85 trillion in consolidated sales in FYE March 2016.