Slide 1: Q1 Financial Results for the Fiscal Year Ending March 31, 2027
Q1 Financial Results for the Fiscal Year Ending March 31, 2027 [ IFRS ] (From April 1, 2026 to June 30, 2026) LIXIL Corporation July 31, 2026 TSE Code: 5938 Copyright © LIXIL Corporation. All rights reserved.
Slide 2: Key Highlights
KEY HIGHLIGHTS 1 Full-year forecast remains unchanged, with cost increases from Middle East tensions offset by price revisions and cost reductions Peak price: $3,752/ton Q1 Results Revenue increased YoY, but both (June 2) Source：LME 3 months Aluminum price trend (From Apr 1, 2025, to Jul 24, 2026) c
Slide 3: Impact of the Recent Situation in the Middle East and Countermeasures (1)
IMPACT OF THE RECENT SITUATION IN THE MIDDLE EAST 2 AND COUNTERMEASURES (1) ⚫ Currently, no supply concerns or delivery delays have occurred as a result of Middle East situation ⚫ The impact of rising construction costs in Japan on future demand requires close monitoring Category Main Risk Factors I
Slide 4: Impact of the Recent Situation in the Middle East and Countermeasures (2)
IMPACT OF THE RECENT SITUATION IN THE MIDDLE EAST 3 AND COUNTERMEASURES (2) (1) Supply Side Impact • Petroleum-based materials (impact especially on LWT Japan): Raw material supply shortages occurred, but supply was ultimately secured thanks to our network and government cooperation. However, procur
Slide 5: Q1 FYE2027 Performance Highlights
Q1 FYE2027 PERFORMANCE HIGHLIGHTS 4 Revenue increased while core earnings decreased year-on-year ◼ Revenue: JPY379.2 billion, up JPY14.5 billion year-on-year • Q1 (3 months) YoY: -3% in Japan and +17% in international markets (+6% excluding foreign exchange impact) ◼ Core earnings: JPY1.7 billion, d
Slide 6: Q1 FYE2027 Consolidated Business Results
Q1 FYE2027 CONSOLIDATED BUSINESS RESULTS 5 (1) (2) (3) ■ Gross profit margin: Decreased by 1.4pp YoY ■ SG&A expenses: Increased by JPY7.0 billion YoY (Japan JPY0.8 billion increase, International JPY1.8 billion increase, forex effect JPY4.4 billion increase) mainly due to higher personnel costs in J
Slide 7: Q1 FYE2027 Business Results by Segment
Q1 FYE2027 BUSINESS RESULTS BY SEGMENT 6 LWT: Core earnings remained flat for both Japan and International businesses. LHT: CE declined due to soaring raw material costs. Living: CE declined due to foreign exchange impact and higher material costs Forex impact(1) Q1 3 months: Revenue JPY+13.8 billio
Slide 8: Consolidated Financial Position
CONSOLIDATED FINANCIAL POSITION 7 Total assets increased due to an increase in cash and deposits and foreign exchange impacts. Interest-bearing debt increased due to the issuance of corporate bonds and additional borrowings. The equity ratio is 33.8% (1) (1) Mar-2026 Jun-2026 Mar-2026 Jun-2026 Mar-2
Slide 9: Cash Flow Status and Cash Balance
CASH FLOW STATUS AND CASH BALANCE 8 Operating cash flow decreased due to a slight increase in working capital and lower profit before tax. Investing cash flow worsened from the short- term investment of cash reserves, turning free cash flow (FCF) negative (1) (1) (2) (2) (3) (4) (4) (1) “FCF” = Oper
Slide 10: Results by Business Segment
RESULTS BY BUSINESS SEGMENT – Water Technology Business (LWT) – Housing Technology Business (LHT) – Living Business (Living)
Slide 11: Water Technology
WATER TECHNOLOGY 10 Japan renovation sales remained sluggish as new housing was prioritized amid material supply concerns. International CE remained flat YoY; sales growth outside China, price increases and Americas structural reforms offset inflationary pressures Revenue Core earnings ◼ Japan: Reve
Slide 12: International Water Technology Revenue by Region
INTERNATIONAL WATER TECHNOLOGY REVENUE BY REGION 11 by region Q1 FYE2026 Results Q1 FYE2027 Results FYE2027 Forecast (Management basis) (1) Revenue CE (1) Revenue CE CE (YoY) Revenue (JPY billion) Margin Americas 37.9 -2.4 38.2 (+1%) -0.8 - 170.0 +13% Europe 50.2 5.5 53.3 (+6%) 5.4 10% 190.0 +8% IME
Slide 13: Housing Technology
HOUSING TECHNOLOGY 12 Japan revenue decreased due to a slowdown in renovation sales; core earnings dropped significantly due to soaring aluminum and material costs. International core earnings remained virtually flat YoY (1) Revenue Core earnings ◼ Japan: Revenue decreased YoY due to a slowdown in ◼
Slide 14: Living
LIVING 13 Revenue increased, but core earnings declined due to foreign exchange impact and higher material costs Revenue Core earnings ◼ Revenue increased YoY; renovation sales remained ◼ Core earnings decreased YoY; price revisions partially strong offset unfavorable FX impacts and higher material
Slide 15: Appendix: Financial Data
APPENDIX: FINANCIAL DATA 14
Slide 16: Revenue by Product and Service
REVENUE BY PRODUCT AND SERVICE 15 LWT: sanitaryware maintained solid momentum, but bathroom units were impacted by delivery schedule adjustments due to Middle East tensions. LHT: housing sashes remained sluggish due to factors such as delays in subsidy benefits taking effect. Living: vanities perfor
Slide 17: Strategy to Strengthen Japan's Renovation Sales
STRATEGY TO STRENGTHEN JAPAN’S RENOVATION SALES 16 Renovation sales ratio decreased by 0.5pp YoY; while Living saw strong performance driven by growth in mid-to-high-end products, sales have slowed down for both LHT and LWT Q1 (3 months) Increase JPY billion FYE2026 Results(1) FYE2027 Results YoY /d
Slide 18: Growth in International Water Technology Business
GROWTH IN INTERNATIONAL WATER TECHNOLOGY 17 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) Q1 FYE2027 (3 months) Intl. Total Americas Europe IMEA APAC China Sales distrib
Slide 19: Q1 FYE2027 Change in Revenue and Core Earnings
Q1 FYE2027 CHANGE IN REVENUE AND CORE EARNINGS 18 JPY billion YoY +9% -3% +2% Change +14.5 (+4.0%) Revenue 364.7 Japan -2% Japan -1% Japan +2% 379.2 (Renovation -2%) (Renovation -6%) (Renovation +2%) (Others -2%) (Others -4%) (Others +1%) International +16% International +41% 0 Q1 FYE2026 LWT LHT Li
Slide 20: Q1 FYE2027 Other Income and Expenses, Finance Income and Costs
Q1 FYE2027 OTHER INCOME AND EXPENSES, FINANCE 19 INCOME AND COSTS ◼ Other income includes: Gain on disposal of real estate in Vietnam
Slide 21: Results and Forecasts by Segment
RESULTS AND FORECASTS BY SEGMENT 20 (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 22: Appendix: Business and ESG-Related Topics
APPENDIX: BUSINESS AND ESG-RELATED TOPICS 21
Slide 23: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 22 Global Sanitation & Hygiene Contribute to a Low-Carbon Society and Circular Economy Signed a Memorandum of Cooperation with Full-Scale Entry into Residential Market with JICA to Create a "Sanitation Economy“ (1) Circular Material "revia" for Exterior Products(2) •
Slide 24: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 23 Contribute to a Low-Carbon Society and Enhancing Brand Value Through Circular Economy Sophisticated Design Established 100% Recycling Technology for Products Globally Recognized by Two of the Ceramic Waste Generated in Manufacturing(1) World’s Most Prestigious Desi
Slide 25: Market Trends
MARKET TRENDS 24 Source：LME 3 months Trend of new housing starts in Japan Aluminum price trend (From Apr 1, 2024, to Jul 24, 2026) Annualized seasonally adjusted data 1,200 1,100 2024 2025 2026 (Unit: USD) 1,000 900 800 700 600 Apr 2026- Apr 2024 - Mar 2025 Apr 2025 - Mar 2026 500 Jul 2026 400 Coppe
Slide 26: (Reference) LIXIL Transitioned to IFRS from FYE2016
(REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 25 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 27: 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