For Immediate Release
July 31, 2019
LIXIL Group Corporation

LIXIL Group Delivers Strong First Quarter in FYE 2020
-All businesses record higher earnings and revenue except Building Technology-Revenue increases 2.1% after capturing high demand for water and housing products in Japan-Core earnings up 151.5% due to sales growth in Japan and global SG&A cost improvements-Net profit increases by ¥9.8 billion due to core earnings increase and sale of affiliated company’s
sharesTokyo – LIXIL Group Corporation (“LIXIL Group”, TSE Code: 5938), maker of pioneering water andhousing products, today announced first quarter results for the fiscal year ending March 31, 2020 (FYE2020).
CEO Comment:“I am pleased to report that LIXIL Group had a solid first quarter, delivering higher revenue, core earnings,and net profit.
Our Japan operations contributed largely to this growth, benefitting from demand generated by a surge
in new housing starts between January and March. In addition, the sale of shares of an affiliated company
in Japan boosted net profit. However, sales in key overseas markets such as the US and Asia dipped dueto changing market conditions which affected the water business. Although the impact this had on
earnings was offset by global SG&A cost improvements and the recovery of our Japan business, theseare among structural issues that we must address, especially as demand for new housing in Japandeclines again from the second quarter.
Since assuming leadership a little over a month ago, the Board of Directors and I have already identified
strategic priorities to structurally strengthen the business and are implementing them. One of ourimmediate priorities is to accelerate initiatives to improve the cost structure and productivity of ourJapan business. We are also reinforcing our overseas businesses by establishing a virtual organization
called LIXIL International, which aims to enhance cross-regional collaboration and promote utilization ofGroup-wide assets in order to maximize synergies.
I look forward to sharing more updates as we further strengthen our capabilities and business structures
to make LIXIL Group a truly differentiated, financially resilient, and sustainable company.”-Kinya Seto, CEO, LIXIL Group

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Q1 Earnings Summary(JPY Billions)

Consolidated Results

LIXIL GroupRevenueCore Earnings1
Net Profit2

Q1
FYE 2019
436.0
4.6
3.1

Q1
FYE 2020
445.3
11.6
12.9

Business Results by Segment

LIXIL Water Technology (LWT)

LIXIL Housing Technology (LHT)

LIXIL Building Technology (LBT)

Distribution & Retail (D&R)

Housing & Services (H&S)(Consolidation, Adjustments, &Others)
LIXIL Group

1RevenueCore Earnings
CE Margin
RevenueCore Earnings
CE Margin
RevenueCore Earnings
CE Margin
RevenueCore Earnings
CE Margin
RevenueCore Earnings
CE Margin
RevenueCore Earnings
RevenueCore Earnings
CE Margin

Q1
FYE 2019
198.0
12.0
6.0%
127.5
2.6
2.0%
62.1
-3.143.5
2.3
5.4%
12.3
0.5
4.0%
-7.5
-9.6
436.0
4.6
1.1%

YoY
Difference
9.3
2.1%
7.0
151.5%
9.8
320.5%(JPY Billions)

Q1
FYE 2020
199.8
13.4
6.7%
135.8
7.5
5.5%
61.1
-2.9
45.6
2.6
5.6%
13.1
0.9
7.0%
-10.1
-9.8
445.3
11.6
2.6%

YoY
Difference
1.7
0.9%
1.4
12.1%
+0.7pt8.3
6.5%
4.9
191.7%+3.5pt
-1.0
-1.6%
0.2
2.1
4.9%
0.2
9.9%
+0.3pt
0.7
6.0%
0.4
88.3%
+3.1pt-2.6-0.2
9.3
2.1%
7.0
151.5%+1.5ptCore earnings in IFRS is equivalent to operating profit in JGAAP

2 Profit for the quarter attributable to owners of the parent

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Revenue
LIXIL Group recorded consolidated revenue of ¥445.3 billion in the first quarter, up 2.1% year on year.
Overall, all business segments in Japan recorded revenue growth.
In Japan, LIXIL Group recorded ¥321.2 billion revenue, a 5.1% increase compared to the same period lastyear. LHT and LWT led the increase in revenue, achieving 7% and 4% higher revenue, respectively. Bothproduct-based business segments successfully captured demand generated by a surge in new housing
starts between January and March, while also benefitting from the effect of introducing new products tothe market and the stabilization of the trading framework introduced one year ago.
Overseas, revenue decreased by 2.6% year on year to ¥134.2 billion. While revenue for LWT in the EMEA
region increased on a local currency basis, it was comparable to last year due to the impact of theweakening euro against the Japanese yen. Additionally, sales also dropped in highly competitive key
markets such as the US and Asia.
Core earnings
LIXIL Group recorded core earnings of ¥11.6 billion in the first quarter, up 151.5% year on year.
Core earnings in Japan increased 73.6% to ¥16.5 billion, boosted by strong sales in the domestic market.
Core earnings at LHT in particular improved to ¥7.5 billion, up ¥4.9 billion year on year. In addition tobenefitting from higher sales, an improved product mix contributed to LHT’s higher core earnings.
Core earnings overseas remained flat overall. The impact of decreased sales in the Asia Pacific andAmericas regions were offset by successful cost improvements in the Americas region and improvements
to SG&A costs in the Asia Pacific region.
Net Profit
LIXIL Group recorded net profit of ¥12.9 billion in the first quarter, up ¥9.8 billion year on year. In
addition to improved core earnings, net profit was boosted by ¥11.0 billion from the sale of an equitymethod affiliate, which increased earnings before tax by ¥15.2 billion.

Recent Business Highlights
At the 77th Annual General Shareholders Meeting, nine outside and five inside directors were elected,
establishing a new Board of Directors with heightened supervisory function and strategic continuity
to create corporate value in the long term. A new Board of Directors Office function has been
established to facilitate operations and enhance the execution of corporate governanceresponsibilities of the larger Board of Directors.

The new Board of Executive Officers for the first time includes representatives of the domestic andinternational commercial business, ensuring faster, more effective, and more strategically aligned
decision-making.

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LIXIL International, a virtual organization overseeing all LWT and LHT operations outside of Japan,
has been established to focus operations and enhance collaboration and synergy across all businessregions. While LIXIL Group will continue to manage its business by region in order to serve theneeds of individual markets, all regional CEOs will report to LIXIL International to deliver a more
focused global approach. Key appointments have also been made, including a CFO to enhanceorganizational efficiency, and two COOs to lead a unified technology and manufacturingorganization across all regions, empowering all regions with access to technologies, products, andassets within LIXIL Group.



LIXIL Group transferred its shares of an equity-method affiliate, boosting its profit before tax.

In Japan, LIXIL Group continued to drive growth in the home renovation market. Compared to thesame period last year, sales of renovation-related products increased by 4.8%. Renovation-related
product sales currently account for 37% of LWT, LHT, and LBT product sales in Japan.



LIXIL Group has been included in the FTSE4Good Index Series and MSCI Japan Empowering Women
Index for the third year running. These indices are designed for socially conscious investors who lookat environmental, social, and governance (ESG) factors when assessing risk and making investment
decisions.

The SATO social business, a business unit embodying social purpose at LIXIL Group, turned
profitable in Bangladesh, demonstrating that it can make a positive social impact while sustaining
itself financially. SATO products are now present in over 25 countries, an increase of 10 countries inless than one year.

-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, anentrepreneurial 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. 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 everyday.
LIXIL Group Corporation (TSE Code: 5938) is the listed holding company for LIXIL’s portfolio of businesses.

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