Financial Results for First Quarter of
Fiscal 2025, ending March 31, 2025
August 7, 2024

Disclaimer

Forecasts, projections, strategies, and other forward-looking statements contained in thisdocument are based on information currently available to the Company and certain
assumptions that the Company believes are reasonable. Actual results may differ
materially from these statements due to various risks and uncertainties. This material isfor informational purposes only and is not intended as a solicitation to trade.

©Rinnai Corporation2

Fiscal 2025 (1Q): Consolidated Performance Overview
Net sales: ¥98.1 billion (up 9.3% year on year)

Record-high level

Record-higher net sales partly due to foreign exchange factors amid normalizing business conditions worldwide

Operating income: ¥8.7 billion(up 180.0% year on year, operating income to net sales ratio: 8.9%)

Increase in operating income thanks to price revisions and cost reduction activities despite continued highdomestic raw material costs

Ordinary income: ¥10.8 billion(up 84.7% year on year, ordinary income to net sales ratio: 11.1%)
Increase with the help of foreign exchange gain, in addition to operating profit

Net income attributable to owners of the parent company: ¥6.8 billion(up 107.3% year on year, net income to net sales ratio: 6.9%)- Return to normal business environment and a smooth start toward achieving medium-term business plan
©Rinnai Corporation3

Fiscal 2025 (1Q) : Consolidated Financial Results
Net Sales

Operating Income[Billions of Yen]

[Billions of Yen]

120
1,200

12120

90900909

60600606

10.9%

10.6%

Operating income tonet sales ratio

Attributable to owners of the parent company

Net Income[Billions of Yen]
12120

Net income tonet sales ratio

8.9%
990
3.5%

7.3%

7.4%

6.9%

660
3.7%

30300

30300

00
FY2022
FY202424年度
FY202521年度 FY2023
22年度 23年度
１Q
１Q
１Q
１Q

33000

FY2022
21年度FY2023
22年度 FY2024
23年度 FY2025
24年度
１Q
１Q
１Q
１Q

FY2022
FY2025
21年度FY2023
22年度 FY2024
23年度 24年度
１Q
１Q
１Q
１Q

- Record-higher net sales supported by price revisions and foreign exchange factors despite weak global housing market- The impact of elevated inventories in the major markets of Japan and the United States has dissipated, and earning
power has recovered under normalized business conditions©Rinnai Corporation4Fiscal 2025 (1Q): Net Sales by ProductFiscal 2024 1Q

Fiscal 2025 1Q[Billions of yen]Amount% of total

Amount% of total

YOY
ChangeAmount(%)

Water heaters

53.72

59.8%

57.73

58.8%

+4.01

+7.5%

Kitchenappliances

20.33

22.6%

22.38

22.8%

+2.05

+10.1%

Air
conditioning
appliances

3.58

4.0%

3.81

3.9%

+0.23

+6.5%

Commercialuse equipment

2.50

2.8%

2.72

2.8%

+0.21

+8.7%

Others

9.70

10.8%

11.51

11.7%

+1.81

+18.7%

Total

89.85

100.0%

98.18 100.0%

+8.33

+9.3%

©Rinnai Corporation

5Fiscal 2025 (1Q): Consolidated Sales/Income Results[Billions of yen]

Net Sales

Consolidated

98.18[Billions of yen]

Net SalesJapan
United States
Australia
China
South Korea
Indonesia
OthersAdjustments

44.16
15.67
7.24
10.21
8.64
4.31
7.92
-YOY
ChangeOperating
IncomeYOY Change

+9.3%

8.71

+180.0%YOY
ChangeOperating
IncomeYOY Change

4.93
0.04
0.10
1.19
0.31
0.93
1.19
-0.01

+171.2%-50.6%-16.3%+137.2%+77.2%+20.2%-+4.8%+24.8%+7.0%+2.2%+8.0%+29.8%+12.3%-

OperatingMargin8.9%
OperatingMargin

11.2%
0.3%
1.5%
11.7%
3.7%
21.7%
15.1%
-

YOY
Change+5.4ptYOY
Change+6.9pt+14.2pt-1.7pt-2.6pt+2.0pt+5.8pt+1.0pt-©Rinnai Corporation6

Fiscal 2025 (1Q): Consolidated Operating Income Analysis[Billions of yen]

YOY change
Effect of local
revenueincrease atoverseassubsidiaries
Effect ofdomestic
revenueincrease+5.60 billion
Increased
fixed
costs
overseas

-0.83
+2.84

3.11

Increased
fixed
costs inJapan

+1.55

8.71

Effect ofraw
materials
prices

-2.07

+0.20

-1.50

+0.21+2.47

FY2024

Costcutting
efforts, etc.

+2.99*Overseas local
procurement

Forex effect +0.26

FY2025- Improved production efficiency in line with normalized business activities. Expand effects of cost cutting efforts, etc.
©Rinnai Corporation7

*From April to June 2024

Japan Fiscal 2025 (1Q) Results■ Segment companies
Rinnai (non-consolidated basis), domestic consolidated
subsidiaries (manufacture and sales of products)■ Net sales by product, Fiscal 2025 (1Q) results
Commercial-useequipment 1.3%■：Net sales ■：Operating income-●-：Operating income to net sales ratio

Others 16%

Gas clothesdryers

Built-in hobs(stovetops)■ Non-consolidated results of major company
Rinnai (non-consolidated basis)- The supply–demand imbalance caused by COVID-19 outbreak has settled down, enabling
the fiscal year to begin under normal business conditions- Significant growth in sales of highly distinctive hybrid water heaters and gas clothes dryers- Increase in operating income due to price revisions and higher production capacity
utilization despite soaring raw material prices
Rinnai (non-consolidated basis), Fiscal 2024 (1Q) Results

Air-conditioning Kitchen
appliances appliances
1.0%
29.2%

Waterheaters
52.2%

56.90
Hybrid waterheater

5.47
Fiscal2024

Fiscal2025

YOYchangeFiscal 2023
[Billions of Yen]

Net Sales

42.14

52.04

46.17

■ Segment results[Billions of Yen]

（Billions of yen）

44.16

+4.8%

Operating Income

1.81

4.93

+171.2%

Operating income
to net sales ratio

4.3%

11.2%

+6.9ptFiscal2024

1.60
Fiscal 2024
Fiscal2025

YOYchange

4.35
Fiscal 2025
[Sales Volume in Japan]

YOY change

Net Sales

46.17

52.04

＋12.7%

Water heater with heatingsystems-17.5%

Operating Income

1.60

4.35＋171.2%

Hybrid water heaters+57.0%

Operating income tonet sales ratio

3.5%

8.4%

＋4.9ptBuilt-in hobs (stovetops)-10.9%

Gas clothes dryers+36.6%©Rinnai Corporation8

Japan Topics：ECO ONE hybrid water heater with heating systems■Subsidy for high-efficiency water heaters (including ECO ONE)
(Water Heater Energy Saving 2024 Project)

・ Total budget: ¥58 billion (Of which ¥4 billion used to subsidize removal of electric■ Percentage of hybrid water heaters (new construction vs replacement)■：New construction■：Replacement

water heaters and electric space heaters)

ECO ONE: ¥150,000/unit for all models
Detached houses
General housing
April 2024
model change

28％
Launched
Sept. 2023

44％

Launched
Jun. 2022

72％

Newhouses

160-liter model

Replacement+250% YOY

Housing complexes

Narrow houses

Fiscal 2025 (1Q) results

Fiscal 2024 (1Q) results

56％

X5 (70-liter model)

・Driven by X5 plug-in model, which requires no dedicated power supply
wiring for its heat pump

Launched
Sep. 2023
Existinghouses

X5 PS (for balconyinstallation)

X5 Plug-in model・ Subsidy applications as percentage of total budget

46％
36％

26％

*Each wiring breaker must be 20A

7/31
6/30

14％
5/31
4/30

Existing external power point canbe used, when replacing gas
water heaters*From the website of the Ministry ofEconomy, Trade and Industry’s Water
Heater Energy Saving 2024 Project
https://kyutou-shoene2024.meti.go.jp©Rinnai Corporation

9

Launch: August 20, 2024

Japan Topics： New kitchen appliance DELICIA

100V type: ¥434,830~ (including tax)
3V type: ¥379,500~ (including tax)
* Recommended retail prices■ New cookware (The Cocotte Round with toast/pizza plate)■ +R RECIPE (smartphone app) allows continuous auto cooking and finishing touches

・ Large-capacity stovetop waterless cooking pot (The Cocotte Round) now
available as option

・Some recipes allow for continuous auto cooking ・Finishing touches can be
adjusted according to preference

Kitchenware

Capacity

The Cocotte

The Cocotte Round

2.4L

3.1L

Weight

1.7kg

1.7kg

Size

height 110 x width 228 x
depth 272mm

height 139 x width 287 x
depth 232mm

On the stove, grill

On the stove

Corresponding area

Basic hamburger steakNon-fried pork cutlet

Luxurious butter toast

Melty baked sweet potato■ All-black lineup
・Launch of all-black model that comes entirely in highly popular black color
Anhydrous cooking
Tomato curry

Steamed cooking
Shrimp Shumai

Boiled cooking
Boiled chicken
and pumpkin

Oven style cooking
Apple cake・Toast/pizza plate included with all models
・Surface of the toast comes into direct contact withthe plate, preventing moisture from escaping andleaving a fluffy texture©Rinnai Corporation10

*From January to March 2024

United States Fiscal 2025 (1Q) Results■ Segment company■ Non-consolidated results of major company

Rinnai America

Rinnai America■ Net sales by product, Fiscal 2025 (1Q) results
Commercial-use
equipment 0.9%

Others
6.5%- Signs of recovery in new construction market, but existing home market remained sluggish- Increase in sales of tankless water heaters due to introduction of new condensing units- Increase in sales promotion expenses due to aggressive activities (including participation intrade shows) aligned with new product launches
Rinnai America, Fiscal 2025 (1Q) Results■：Net sales ■：Operating income-●-：Operating income to net sales ratio （Billions of yen）
Non-Condensing
water heaters

Condensing waterheaters (Highefficiency models)

Waterheaters
89.4%

Air-conditioning
appliances
3.2%

-0.1%
-4.6%

■ Segment results[Billions of Yen]

Fiscal 2024

Fiscal 2025

OperatingIncome
Operatingincome to netsales ratio

12.55
-1.74

-13.9%

15.67
0.04

0.3%

-0.00

-0.51
Fiscal 2023

YOYchangeFiscal2025+14.2pt

Fiscal 2024

-1.77

Fiscal 2025

Net Sales

12.55

Operating Income
Operating incometo net sales ratio

YenLocalcurrency

15.67+24.8%+12.5%-1.77-0.00---14.2%-0.1%+24.8%—-14.2%

YOY change
Fiscal2024[Billions of Yen]

Net Sales

15.67

12.55

11.13+14.1pt[Sales Volume]

YOY change

Tankless water
heaters+13.4%

Condensing water
heaters of total(High-efficiencymodels)+41.9%©Rinnai Corporation11*From January to March 2024

China Fiscal 2025 (1Q) Results■ Segment companies
Shanghai Rinnai, Guangzhou Rinnai, Rinnai
Hong Kong■ Net sales by product, Fiscal 2025 (1Q) results
Kitchen Others
appliances 6.6%
5.0%

■ Non-consolidated results of major company
Shanghai Rinnai- Weak consumer sentiment due to sluggish housing market and economic activity- Increase in unit sales of mainstay water heaters due to expanded network of bricks-and-mortar
stores owned by e-commerce platforms- Decline in operating income in real terms due to deterioration of product mix*
11.94

9.61

Shanghai Rinnai,
Fiscal 2025 (1Q) Results

Built-in hob(stovetops)
Water heaters

8.29■：Net sales ■：Operating income-●-：Operating income to net sales ratio

Waterheaters
88.3%

1.78

（Billions of yen）

Fiscal 2023

■ Segment results[Billions of Yen]

Net Sales
OperatingIncome
Operatingincome to netsales ratio

YOY change

Boilers

Fiscal 2024
9.99

Fiscal 2025
10.21[Billions of Yen]

YOYchange
+2.2％

1.42

1.19

-16.3％

14.3％

11.7％

-2.6ptNet Sales

Fiscal2024*

Fiscal
2025

8.29

9.61

Operating Income

0.26

0.84

Operating income tonet sales ratio

3.2%

8.8%

Yen

Local
currency＋15.9%＋9.0%＋222.0%＋203.0%＋5.6pt0.26

0.84

Fiscal 2024

Fiscal 2025

[Sales Volume]

YOY change

Water heaters+9.2%

Built-in hob(stovetops)-20.0%

Range hoods-4.6%

Boilers*The Company revised its cost and revenue recognition criteria in the second quarter of fiscal 2024.
(Previously, adjustments were made within China segment.) The results for the first quarter of fiscal
2024 (with above revision applied) are shown below.
©Rinnai Corporation
Net sales: ¥9.47 billion; operating income: ¥1.23 billion; operating margin: 13.0%+12.4%

12

*From January to March 2024

Australia Fiscal 2025 (1Q) Results■ Non-consolidated results of major company
Rinnai Australia■ Segment company
Rinnai Australia■ Net sales by product, Fiscal 2025 (1Q) results
Others
8.9%
Commercial-use
equipment 4.9%

Duct-type airconditioning
and heatingsystems

Air conditioningappliances
35.1%■：Net sales ■：Operating income-●-：Operating income to net sales ratio

Tankless water
heaters

Water
heaters
51.2%

Fiscal 2024

Fiscal 2025

0.04
Fiscal 2023

YOYchange

Operating
IncomeOperatingincome to netsales ratio

6.77
0.21

3.2％

7.24
0.10

1.5％

-1.7ptFiscal 2025

Fiscal 2024

Fiscal2024

Fiscal2025

Net Sales

6.78

Operating Income

Operating income
to net sales ratio[Sales Volume]
Yen

Local
currency

7.28

＋7.4%

-0.2%

0.20

0.09

-51.2%-54.6%

3.0%

1.4%

+7.0％
-50.6％

0.09

0.20
YOY change[Billions of Yen]

Net Sales（Billions of yen）

7.28

6.78

5.68

Electric tank-based
water heaters■ Segment results[Billions of Yen]

- Weak housing market and shift in demand toward electrification- Increase in sales of electric products despite sluggish sales of mainstay tankless water
heaters- Decline in sales of gas appliances (such as tankless water heaters), which have high profit
margins, leading to lower overall profitability
Rinnai Australia, Fiscal 2025 (1Q) Results-1.6ptYOYchange

Tankless water heaters-3.1%

Electric tank-basedwater heaters-3.6%

Duct-type airconditioning and heatingsystems-18.9%©Rinnai Corporation13*From January to March 2024

South Korea Fiscal 2025 (1Q) Results■ Segment companies■ Non-consolidated results of major company
Rinnai Korea

Rinnai Korea, RB Korea■ Net sales by product, Fiscal 2025 (1Q) results

Gas tabletop
cookers

Others12.2%
Commercial-use
Equipment
13.1%

Electric tabletop
cookers

Kitchenappliances
31.2%- Rising prices and interest rates caused ongoing deterioration in market sentiment;
continued intensification of price competition in boiler market- Decline in sales of mainstay boilers despite disciplined approach and price controls- Expansion of sales territory as kitchen appliance competitors withdrew from the market,
leading to increased market share
Rinnai Korea, Fiscal 2025 (1Q) Results■：Net sales ■：Operating income（Billions of yen）-●-：Operating income to net sales ratio

Waterheaters
43.6%

8.18
Environmentallyfriendly boilers■ Segment results[Billions of Yen]

Net Sales

Fiscal 2024
8.00

8.16

7.54

Fiscal 2025
8.64

YOYchange

0.65

0.120.33

Fiscal 2023

Fiscal 2024

Fiscal 2025

YOY change[Billions of Yen]

Fiscal2024

Fiscal2025

Net Sales

7.54

8.16

+8.2%

+1.3%

Operating Income

0.12

0.33

+162.6%+145.9%Operating income
to net sales ratio

1.7%

4.1%

Local
currency

Yen

+8.0％

Operating
Income0.13

0.31+137.2％

Operatingincome to netsales ratio

1.7％

3.7%

+2.0pt+2.4pt[Sales Volume]

YOY change

Boilers-19.2%

Gas tabletop
cookers+60.0%Electric tabletopcookers+43.1%©Rinnai Corporation14

*From January to March 2024

Indonesia Fiscal 2025 (1Q) Results■ Non-consolidated results of major company
P.T. Rinnai Indonesia■ Segment company
P.T. Rinnai Indonesia■ Net sales by product, Fiscal 2025 (1Q) results
Water
Others heaters
3.1% 0.9%
Commercial-use
equipment 9.6%

- Continuously cooling of consumer sentiment due to rising prices- Increased sales mainly due to rush demand of mainstay tabletop cookers before pricerevisions- Price revisions under the decreased raw material costs led to an increase in profit
margins
P.T. Rinnai Indonesia, 2025 (1Q) Results（Billions of yen）■：Net sales ■：Operating income-●-：Operating income to net sales ratio

Tabletop cookers

Fiscal 2024

Fiscal 2025

YOYchange

Operatingincome to netsales ratio

0.52

Fiscal 2023

Fiscal 2024

3.32
0.52

15.9％

4.31
0.93

21.7%

0.93
Fiscal 2025

YOY change
Fiscal2024

Fiscal2025

Net Sales

3.45

OperatingIncome[Billions of Yen]

OperatingIncome

0.45

Built-in hob(stovetops)■ Segment results

Net Sales

3.45

Kitchenappliances
86.4%

Range hoods[Billions of Yen]

4.54

4.04

[Sales Volume]
Yen

Local
currency

4.54+31.6%+22.2%

0.52

0.93+77.2%+64.7%

15.3%

20.6%

+29.8％+77.2％+5.8ptOperating income
to net sales ratio+5.3pt

YOY change

Tabletop cookers+18.6%

Built-in hob(stovetops)+8.8%

Range hoods+2.1%©Rinnai Corporation

15

Consolidated Performance Forecasts: Progress Report[Millions of yen]
Net Sales

OperatingIncome

VS Netsales

OrdinaryIncome

VS Netsales

212,000

17,3008.2%

18,900

8.9%

+10%

+71%

450,000

45,000+5%+14%

98,1858,717

YOY change+9%+180%+85%+107%

VS 1st half
estimates

46%

50%

58%

59%

1st half
Consolidated
estimates

YOY change

Full year
YOY change

1st half
Consolidated
results

-+27%

10.0%

48,00010,889VS Netsales

11,5005.4%

Net income

+46%

10.7%

+4%

8.9%

attributable to owners of
the parent company

28,300

6.3%

+6%

11.1%

6,817

Revenue and income trending slightly above forecasts
No change in forecasts due to conservative exchange rate assumptions (USD: 140 yen) despite sharp exchange
rate fluctuations.
©Rinnai Corporation6.9%16

Copyright (C) 2024 Rinnai Corporation. All Rights Reserved.