Lixil Corporation · TSE:5938
Lixil — Q2 2027 Earnings Presentation
29 slides from Lixil's earnings presentation, Oct 30, 2026
Slide 1: H1 Financial Results for the Fiscal Year Ending March 31, 2027 [IFRS]
H1 Financial Results for the Fiscal Year Ending March 31, 2027 [ IFRS ] (From April 1, 2026 to September 30, 2026) LIXIL Corporation October 30, 2026 TSE Code: 5938 Copyright © LIXIL Corporation. All rights reserved.
Slide 2: Key Highlights: Summary of results for H1 FYE2027
KEY HIGHLIGHTS 1 Summary of results for H1 FYE2027 Revenue increased while core earnings and EBITDA decreased year-on-year Japan • Rising ingot and material costs intensified, and as benefits of price optimization was limited, profitability temporarily deteriorated • In particular, LHT experienced a
Slide 3: Key Highlights (Japan Business)
KEY HIGHLIGHTS (JAPAN BUSINESS) 2 Continuing renovation sales recovery for water-related products and aiming for H2 recovery through and expansion of renovation sales, including subsidy-eligible products for LHT Price optimization and Material price trend H1 Results 60.0 Mix/Pricing Material price •
Slide 4: Key Highlights (LWT International Business)
KEY HIGHLIGHTS (LWT INTERNATIONAL BUSINESS) 3 LWT International revenue and core earnings increased YoY. Maintained profit growth by the price optimization and structural cost reductions, offsetting material inflation and elevated freight expenses CE breakdown by region in LWT Int’l in H1(1) H1 Resu
Slide 5: Key Highlights (LWT International Business) by region
KEY HIGHLIGHTS (LWT INTERNATIONAL BUSINESS) 4 Europe, IMEA, and APAC continued revenue growth, while the Americas reduced its loss on flat revenue growth Americas Europe IMEA APAC / China ◼ Market Trends ◼ Market Trends ◼ Market Trends ◼ Market Trends Rising mortgage rates leads Political instabilit
Slide 6: H1 FYE2027 Performance Highlights
H1 FYE2027 PERFORMANCE HIGHLIGHTS 5 Revenue increased while core earnings decreased year-on-year ◼ Revenue: JPY762.5 billion, up JPY26.5 billion year-on-year • Q2 (3 months) YoY: +1% in Japan and +8% in international markets (+1% excluding foreign exchange impact) • H1 (6 months) YoY: -1% in Japan a
Slide 7: H1 FYE2027 Consolidated Business Results
H1 FYE2027 CONSOLIDATED BUSINESS RESULTS 6 (1) (2) (3) ■ Gross profit margin: Decreased by 1.4pp YoY ■ SG&A expenses: Increased by JPY9.4 billion YoY (Japan JPY0.6 billion increase, International JPY1.5 billion increase, forex effect JPY7.3 billion increase) mainly due to higher personnel costs in J
Slide 8: H1 FYE2027 Business Results by Segment
H1 FYE2027 BUSINESS RESULTS BY SEGMENT 7 LWT: Core earnings increased for both Japan and International businesses LHT: CE declined mainly due to soaring raw material costs Living: CE declined due to foreign exchange impact and higher material costs Forex impact(1) Q2 3 months: Revenue JPY+9.2 billio
Slide 9: Consolidated Financial Position
CONSOLIDATED FINANCIAL POSITION 8 Total assets decreased due to foreign exchange impacts. Interest-bearing debt increased due to the issuance of corporate bonds and additional borrowings in Q1. The equity ratio is 33.9% Mar-2026 Sep-2026 Mar-2026 Sep-2026 Mar-2026 Sep-2026
Slide 10: Cash Flow Status and Cash Balance
CASH FLOW STATUS AND CASH BALANCE 9 Free cash flow (FCF) is negative due to the impact of a decrease of operating cash flow from higher working capital and lower profit before tax. Temporary inventory buildup from Middle East tensions and pre-peak season demand (1) (1) (2) (2) (3) (3) (1) “FCF” = Op
Slide 11: Results by Business Segment
RESULTS BY BUSINESS SEGMENT – Water Technology Business (LWT) – Housing Technology Business (LHT) – Living Business (Living)
Slide 12: Water Technology
WATER TECHNOLOGY 11 Core earnings increased in both Japan and international businesses. Japan renovation sales recovered. International revenue grew across all regions except China. Profit increased as price optimization and structural reforms benefits in the US offset cost inflation Revenue Core ea
Slide 13: International Water Technology Revenue by Region
INTERNATIONAL WATER TECHNOLOGY REVENUE BY REGION 12 by region H1 FYE2026 Results H1 FYE2027 Results FYE2027 Forecast (Management basis) (1) Revenue CE (1) Revenue CE CE (YoY) Revenue (JPY billion) Margin Americas 76.3 -4.3 76.6 (0%) -0.8 - 170.0 +13% Europe 100.2 10.5 102.1 (+2%) 9.3 9% 190.0 +8% IM
Slide 14: Housing Technology
HOUSING TECHNOLOGY 13 Japan revenue decreased by sluggish renovation sales; CE dropped sharply due to soaring aluminum and material costs. International revenue grew and CE rose slightly YoY by selling price impacts from higher aluminum price (1) Revenue Core earnings ◼ Japan: Revenue decreased YoY
Slide 15: Living
LIVING 14 Revenue increased, but core earnings declined due to foreign exchange impact and higher material costs Revenue Core earnings ◼ Revenue increased YoY; renovation sales remained ◼ Price optimization partially offset cost increases from strong unfavorable foreign exchange rates and higher mat
Slide 16: Appendix: Financial Data
APPENDIX: FINANCIAL DATA 15
Slide 17: Revenue by Product and Service
REVENUE BY PRODUCT AND SERVICE 16 LWT and Living performed well as the impact of delivery schedule adjustments caused by Middle East tensions normalized. For LHT, while exterior products performed well, housing sashes declined YoY due to factors such as sluggish sales of subsidy-eligible products JP
Slide 18: Strategy to Strengthen Japan's Renovation Sales
STRATEGY TO STRENGTHEN JAPAN’S RENOVATION SALES 17 Renovation sales ratio increased by 0.1pp YoY; In LWT, Q1 new housing priority ended, Living renovation grew on mid-to-high-end sales, while LHT stayed sluggish H1 (6 months) Q2 (3 months) FYE2026 FYE2027 Increase FYE2027 YoY YoY JPY billion Results
Slide 19: Growth in International Water Technology Business
GROWTH IN INTERNATIONAL WATER TECHNOLOGY 18 BUSINESS Leveraging our brands, global structure for R&D, and roll-out of differentiated products, we are positioning for renewed growth by quickly responding to local needs(1) H1 FYE2027 (6 months) Q2 FYE2027 (3 months) Intl. Intl. Americas Europe IMEA AP
Slide 20: H1 FYE2027 Change in Revenue and Core Earnings
H1 FYE2027 CHANGE IN REVENUE AND CORE EARNINGS 19 JPY billion YoY +8% -3% +3% Change +26.5 (+3.6%) Revenue Japan +2% Japan -5% Japan +3% 735.9 (Renovation +4%) (Renovation -5%) (Renovation +4%) 762.5 (Others 0%) (Others -4%) (Others +2%) International +11% International +34% 0 H1 FYE2026 LWT LHT Liv
Slide 21: Q2 FYE2027 Change in Revenue and Core Earnings
Q2 FYE2027 CHANGE IN REVENUE AND CORE EARNINGS 20 JPY billion YoY +6% -3% +4% Change +12.0 (+3.2%) Revenue 371.3 Japan +6% Japan -4% Japan +4% 383.2 (Renovation +9%) (Renovation -4%) (Renovation +6%) (Others +2%) (Others -4%) (Others +3%) International +7% International +29% 0 Q2 FYE2026 LWT LHT Liv
Slide 22: H1 FYE2027 Other Income and Expenses, Finance Income and Costs
H1 FYE2027 OTHER INCOME AND EXPENSES, FINANCE 21 INCOME AND COSTS ◼ Other income includes: Gain on disposal of real estate in Vietnam and Thailand
Slide 23: Results and Forecasts by Segment
RESULTS AND FORECASTS BY SEGMENT 22 (1) (1) (1) Difference between sum total of Japan and International in Revenue and Core earnings and “Total” is the amount of consolidation, adj. & others
Slide 24: Appendix: Business and ESG-Related Topics
APPENDIX: BUSINESS AND ESG-RELATED TOPICS 23
Slide 25: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 24 Contribute to a Low-Carbon Society and Enhancing Value Creation Through Circular Economy Innovation Reuters Global Sustainability Awards 2026 Japanese Electric Bidet Toilet Honored with LIXIL Wins the "Circularity" Award(1) "IEEE Milestone"(2) • Development efforts
Slide 26: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 25 Advancing Climate Action Sustainable Growth by Addressing Social Issues “The Liveable Home, Liveable Planet Project 2026" Sponsoring the 48th WorldSkills Competition Linking High Home Insulation to Aid via UNICEF (1) Supporting Future Trade Professionals (3) • Laun
Slide 27: Market Trends
MARKET TRENDS 26 Source：LME 3 months Trend of new housing starts in Japan Aluminum price trend (From Apr 1, 2024, to Oct 23, 2026) Annualized seasonally adjusted data 1,200 1,100 2024 2025 2026 (Unit: USD) 1,000 900 800 700 600 Apr 2024 - Mar 2025 Apr 2025 - Mar 2026 Apr 2026- 500 Oct 2026 400 Coppe
Slide 28: (Reference) LIXIL Transitioned to IFRS from FYE2016
(REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 27 CHANGE IN PROFIT LEVEL STRUCTURE IS AS SHOWN JGAAP IFRS (LIXIL Financial Reporting) Continuing operations Net sales Revenue Cost of sales Cost of sales Gross profit Gross profit SG&A SG&A Operating profit Core earnings (CE) Non-operating income/
Slide 29: Cautionary Statements with Respect to Forward-Looking Statements
Cautionary Statements with Respect to Forward-Looking Statements Statements made in these materials with respect to plans, strategies and future performance that are not historical facts are forward-looking statements. LIXIL Corporation cautions that a number of factors could cause actual results to