Lixil Corporation · TSE:5938
Lixil — Q4 2026 Earnings Presentation
49 slides from Lixil's earnings presentation, Apr 30, 2026
Slide 1: Financial Results for the Fiscal Year Ending March 31, 2026
Financial Results for the Fiscal Year Ending March 31, 2026 [ IFRS ] (From April 1, 2025 to March 31, 2026) LIXIL Corporation April 30, 2026 TSE Code: 5938 Copyright © LIXIL Corporation. All rights reserved.
Slide 2: Key Highlights
KEY HIGHLIGHTS 1 Summary of results for FYE2026 Core earnings: JPY38.5 billion and EBITDA: JPY121.6 billion Core earnings exceeded the forecast Japan • All segments achieved YoY growth in core earnings, driven by strong renovation sales, despite a significant YoY decline of over 10% in new housing d
Slide 3: Key Highlights: Difference from Initial Forecast
KEY HIGHLIGHTS 2 Difference from Initial Forecast for FYE 2026 Core earnings exceeded the forecast. While other expenses and finance costs increased, profit(1) was in line with the initial plan due to a decrease in tax expenses Profits below Core Earnings Main Changes FYE2026 FYE2026 ✓ Other Income
Slide 4: Status of International Businesses
STATUS OF INTERNATIONAL BUSINESSES 3 Europe IMEA Growth of the GROHE Brand Ensuring stable supply 6% 5% Sales Mix by Brand Core earnings growth rate Sales Mix by Brand ■ GROHE 89% +15% ■ AS 5% GROHE 89% 6% 100% ■ Cobra FYE25 FYE26 Current Situation Current Situation ✓ Housing demand in Europe remain
Slide 5: Status of International Businesses
STATUS OF INTERNATIONAL BUSINESSES 4 APAC China Market Recovery and Expanding sales of Sales Network Expansion 6% differentiated products 17% 9% Sales Mix by Brand Sales Mix by Brand 50% ■ AS 50% ■ GROHE 64% 32% ■ INAX 32% 20% ■ AS 20% 64% ■ INAX 9% ■ GROHE 17% ■ others 6% Current Situation Current
Slide 6: Progress and Future Initiatives in the Americas Business
PROGRESS AND FUTURE INITIATIVES IN THE AMERICAS 5 BUSINESS Progress in FYE2026 Americas Business Turnaround Initiatives for FYE2027 Sales Mix by Brand Retail revenue growth rate 11% 1% Retail others 7% ■ AS 81% Americas ■ GROHE 7% revenue - 4% ■ DXV 1% 81% ■ others 10% +8% FYE25 FYE26 Recovery lagge
Slide 7: FYE2026 Performance Highlights
FYE2026 PERFORMANCE HIGHLIGHTS 6 Revenue and core earnings increased year-on-year ◼ Revenue: JPY1,510.7 billion, up JPY6.0 billion year-on-year • Q4 (3 months) YoY: Flat in Japan and +7% in international markets (-2% excluding foreign exchange impact) • Q4 (12 months) YoY: +1% in Japan and flat in i
Slide 8: FYE2026 Consolidated Business Results
FYE2026 CONSOLIDATED BUSINESS RESULTS 7 (1) (2) (3) ■ Gross profit margin: Increased by 1.0pp YoY ■ SG&A expenses: Increased by JPY9.9 billion YoY (Japan JPY7.2 billion increase, International JPY2.3 billion decrease, forex effect JPY5.1 billion increase) due mainly to higher personnel costs in Japa
Slide 9: FYE2026 Business Results by Segment
FYE2026 BUSINESS RESULTS BY SEGMENT 8 Core earnings for LWT Japan and International grew, driven by Japan‘s renovation growth and a value-added product shift in Europe and IMEA. LHT achieved core earnings growth by increasing renovation sales, despite soft new housing demand. Living achieved both re
Slide 10: FYE2026 Business Results by Segment
FYE2026 BUSINESS RESULTS BY SEGMENT 9 Business results for Q4 under previous reporting segments (2) (2) Forex impact(1) Q4 3months: Revenue +JPY11.3 billion, CE +JPY0.9 billion Q4 12months: Revenue +JPY15.1 billion, CE +JPY1.5 billion (1) Forex translation effect gain(loss) from international subsid
Slide 11: Consolidated Financial Position
CONSOLIDATED FINANCIAL POSITION 10 Equity increased, driven by foreign exchange impacts and the recognition of profit for FYE2026. The equity ratio is 35.3% Mar-2025 Mar-2026 Mar-2025 Mar-2026 Mar-2025 Mar-2026
Slide 12: Cash Flow Status and Cash Balance
CASH FLOW STATUS AND CASH BALANCE 11 Operating cash flow declined due to an increase in accounts receivable and inventories. Free Cash Flow (FCF) remained positive (1) (2) (2) (3) (3) (4) (4) (1) (1) Includes discontinued operations (3) CAPEX = Purchase of property, plant and equipment + (2) “FCF” =
Slide 13: Progress of Management Strategy & Forecast for FYE2027
PROGRESS OF MANAGEMENT STRATEGY & FORECAST FOR FYE2027 12
Slide 14: Key Highlights: Outlook for FYE2027
KEY HIGHLIGHTS 13 Outlook for the fiscal year ending March 2027 Full-year forecast for FYE2027 • Forecasting revenue of JPY1,600.0 billion, core earnings of JPY45.0 billion, and profit attributable to owners of the parent of JPY12.0 billion (The impact of the situation in the Middle East is excluded
Slide 15: FYE2027 Forecast
FYE2027 FORECAST 14 Projecting an increase in Revenue and Profits(1) compared to the previous year. Forecasting annual dividend of JPY90 per share FYE2026 FYE2027 Increase JPY billion Results Forecast /decrease Revenue 1,510.7 1,600.0 +89.3 Core Earnings (CE) 38.5 45.0 +6.5 Operating Profit (OP) 28.
Slide 16: Response Status to Materialized Risks from Middle East Situation
RESPONSE STATUS TO MATERIALIZED RISKS FROM THE RECENT SITUATION IN THE MIDDLE EAST 15 • Uncertain Business Environment: Market prices for crude oil, aluminum ingots, and others are soaring due to the prolonged conflict in the Middle East. We are currently assessing the negative cost impact on domest
Slide 17: Core Earnings Review of FYE2026 and Outlook for FYE2027
KEY HIGHLIGHTS 16 Core earnings review of FYE2026 and outlook for FYE2027(1) FYE2026 FYE2027 ⚫ Japan: Raw metals (aluminum/copper) and component costs ⚫ Japan: Price optimization covered increased aluminum and continue to rise, but will be offset by price optimization and component costs higher reno
Slide 18: Management Direction (LIXIL Playbook)
MANAGEMENT DIRECTION (LIXIL PLAYBOOK) 17 Management direction – LIXIL Playbook Our Corporate Purpose To Make Better Homes a Reality for Everyone, Everywhere FOCUS TRANSFORM GROW INNOVATE Our Divest Non-core Tackle Inflation Optimize Grow Global Embed Develop Strategic Businesses and and Japan and Wa
Slide 19: Progress of the Medium-Term Roadmap
PROGRESS OF THE MEDIUM-TERM ROADMAP 18 FYE2027 Earnings Forecast Differences from the initial plan FYE2026 Revised FYE2027 Positive Factors Initial Plan Result Unit Plan ⚫ Revenue and profit growth driven by self efforts in Europe Revenue JPY billion 1,540.0 1,510.7 1,600.0 ⚫ Resilient market growth
Slide 20: Risks and Opportunities
RISKS AND OPPORTUNITIES 19 For both Japan and international businesses, the impact of the situation in the Middle East on revenue and rising costs remains a highly uncertain risk factor LWT International business Categories Risks Opportunities • Further delay in the recovery of the European market •
Slide 21: Importance of Environmentally Friendly Products
IMPORTANCE OF ENVIRONMENTALLY FRIENDLY PRODUCTS 20 UNDER THE CURRENT PROCUREMENT ENVIRONMENT Addressing rising costs and supply risks by balancing stable procurement and profitability through recycled materials and enhanced energy efficiency. Pursuing profit contribution by integrating them into bus
Slide 22: Capital Allocation
CAPITAL ALLOCATION 21 Approach to capital allocation Policy remains unchanged ✓CAPEX: Continue capital investments (including new product development, rationalization, and IT investments) to strengthen competitiveness ✓Shareholder return: Basic policy is to pay stable dividends to shareholders over
Slide 23: Initiatives to Improve PBR and ROE
INITIATIVES TO IMPROVE PBR AND ROE 22 1 2 3 4 PBR ROE 1.3% Core earnings Net profit(1) Revenue Total assets Revenue Core earnings Total assets Equity (2) 0.7x PER 57.2x 2.5% 21.2% 0.8 times 2.8 X As of March 31, 2026 Net profit margin Financial leverage Trends in Key Indicators Unit 2020 2021 2022 2
Slide 24: Financial Indicators, FYE2027 Forecast
FINANCIAL INDICATORS, FYE2027 FORECAST 23 Progress in strengthening balance sheet and improving profitability Core earnings margin ROE (1) ROIC (2) (%) (%) (%) 5 10 8 4 2.5% 2.8% 5 1.3% 1.8% 6 3 2.1% 0.3% 2 1.6% 0 -2.2% 4 2.0% 1 -5 0.9% 1.7% 1.5% 2 0 -10 0 FYE2024 FYE2025 FYE2026 FYE2027 FYE2024 FYE
Slide 25: FYE2027 Forecast – Assumptions
FYE2027 FORECAST – ASSUMPTIONS 24 • There is a high possibility of significant changes in the business environment due to increasing global uncertainty, and close attention must be paid to future developments • Considering the current FX rate situation, this uncertainty could potentially present an
Slide 26: CAPEX, Depreciation, and R&D Expenditure
CAPEX, DEPRECIATION, AND R&D EXPENDITURE(1) 25 By increasing investment efficiency, we aim to improve financial strength and raise profitability JPY billion 100 Breakdown of CAPEX FYE2025 FYE2026 FYE2027 83.2 83.1 81.4 JPY billion Actual Actual Plan 80 70.5 IT investment 10.8 10.7 10.9 63.6 Excludin
Slide 27: Results by Business Segment
RESULTS BY BUSINESS SEGMENT – Water Technology Business (LWT) – Housing Technology Business (LHT) – Living Business (Living) ⚫ Effective from Q1 FYE2026, established the new segment, “Living Business”, by integrating the kitchen and vanity business from the "Water Technology Business" and the wooden
Slide 28: Water Technology
WATER TECHNOLOGY 27 Japan revenue and profits increased; in the int’l business, while revenue remained flat due to decreased sales in the U.S. and China, profit increased driven by higher revenues in Europe and IMEA (1) Revenue Core earnings ◼ Japan: Revenue increased YoY driven by strong renovation
Slide 29: International Water Technology Revenue by Region
INTERNATIONAL WATER TECHNOLOGY REVENUE BY REGION 28 FYE2026 Results FYE2027 Forecast by region (Management basis) (1) Revenue CE (JPY billion) (YoY) (YoY) CE Margin Revenue Americas 150.4 (-4%) -7.5 (-) - 170.0 +13% Europe 176.6 (+4%) 21.5 (+15%) 12% 190.0 +8% IMEA (India, Middle East, Africa) 72.1
Slide 30: Housing Technology
HOUSING TECHNOLOGY 29 In Japan, while revenue decreased due to the impact of lower sales for new housing, core earnings increased as renovation sales grew. International business: revenue and core earnings are flat, offset the sluggish demand in Thailand by expanding sales in India (1) Revenue Core
Slide 31: Living
LIVING 30 Strong renovation sales led to increased revenue and core earnings Revenue Core earnings ◼ Revenue increased YoY, driven by strong growth in ◼ Core earnings increased YoY, driven by strong renovation renovation sales that offset remained slowdown from an unfavorable product mix. Additional
Slide 32: Appendix: Financial Data
> APPENDIX: FINANCIAL DATA 31
Slide 33: Revenue by Product and Service
REVENUE BY PRODUCT AND SERVICE 32 LWT: all products increased YoY in Q4. LHT: housing sashes decreased YoY due to the transition period between window renovation subsidy programs, while exterior performed well in Q4. Living: vanities performed well JPY billion in % Quarterly YoY Full-year Full-year
Slide 34: Strategy to Strengthen Japan's Renovation Sales
STRATEGY TO STRENGTHEN JAPAN’S RENOVATION SALES 33 Renovation sales ratio increased by 1.9pp. Window subsidy gap weighed on LHT, but water-related demand remains firm Q4 (12 months) Q4 (3 months) FYE2025 FYE2026 Increase FYE2026 YoY YoY JPY billion Results(1) Results /decrease Results Sales of renov
Slide 35: Growth in International Water Technology Business
GROWTH IN INTERNATIONAL WATER TECHNOLOGY 34 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) FYE2026 (12 months) Q4 FYE2026 (3 months) Intl. Intl. Americas Europe IMEA APAC
Slide 36: Change in Revenue and Core Earnings (12 Months)
Q4 (12MONTHS) FYE2026 35 CHANGE IN REVENUE AND CORE EARNINGS JPY billion YoY +1% 0% +1% Change +6.0 (+0.4%) Revenue 1,504.7 1,510.7 Japan +2% Japan -1% Japan +1% (Renovation +6%) (Renovation +5%) (Renovation +6%) (Others -3%) (Others -3%) (Others -3%) International 0% International +7% 0 FYE2025 LWT
Slide 37: Change in Revenue and Core Earnings (3 Months)
Q4 (3MONTHS) FYE2026 36 CHANGE IN REVENUE AND CORE EARNINGS JPY billion +1% +1% -2% Change +8.0(+2.2%) YoY Revenue 364.2 372.7 Japan +2% Japan -2% Japan +1% (Renovation +6%) (Renovation -3%) (Renovation +6%) (Others -3%) (Others -1%) (Others -3%) International +6% International +16% 0 Q4 FYE2025 LWT
Slide 38: FYE2026 Other Income and Expenses, Finance Income and Costs
FYE2026 OTHER INCOME AND EXPENSES, FINANCE 37 INCOME AND COSTS ◼ Other income includes: (1) (1) Gains on disposal of property, plant and equipment and one- time profit recognition due to an equity-method affiliate conversion of an investment (2) ◼ Other expenses include: (2) Impairment losses on the
Slide 39: Results and Forecasts by Segment
RESULTS AND FORECASTS BY SEGMENT 38 (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 (2) Please refer to “Consolidated Financial Statements under IFRSs for the Year Ended March 31, 2025” disclos
Slide 40: Performance of Major International Subsidiaries
PERFORMANCE OF MAJOR INTERNATIONAL 39 SUBSIDIARIES ASB FYE2025 FYE2026 Full-year (ASD Holdings) Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year YoY (USD million) Revenue 298 286 262 276 1,122 247 250 239 243 979 -13% Core earnings -12 -6 -13 -12 -44 -19 -16 -18 -2 -55 - Core earnings margin - - - - - -
Slide 41: FYE2027 Forecast Change in Revenue and Core Earnings
FYE2027 FORECAST CHANGE IN REVENUE AND CORE 40 EARNINGS JPY billion YoY +8% +2% +4% Change +89.3(+5.9%) Revenue 1,600.0 1,510.7 Japan +2% Japan +2% Japan +4% International +12% International +13% International - 0 FYE2026 LWT LHT Living Consolidation FYE2027 Material price -24.8 adjustment/ LWT +2.6
Slide 42: Appendix: Business and ESG-Related Topics
APPENDIX: BUSINESS AND ESG-RELATED TOPICS 41
Slide 43: Change in Officers (1)
CHANGE IN OFFICERS (1) 42 Effective after the annual shareholders’ meeting to be held in June 2026 List of Directors (Announced on March 23, 2026; partially revised)) (◎: newly appointed June 2026, □: independent director, Underline: female member) ✿: Chairperson, ●: Member Chairperson of Nomination
Slide 44: Change in Officers (2)
CHANGE IN OFFICERS (2) 43 （as of April 1, 2026） List of Executive Officers (Announced on March 23, 2026) (※concurrently serves as a director, ◎: newly appointed, Underline: female member) Name Positions Kinya Seto ※ Representative Executive Officer, President, and Chief Executive Officer Representat
Slide 45: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 44 Improving Global Sanitation & Hygiene Contribute to a Low-Carbon Society and Circular Economy 2025 Target Achieved: Improved sanitation Awarded the Circular Economy Award at the 7th and hygiene for 103 million people globally (1) ESG Finance Awards Japan created by
Slide 46: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 45 Contribute to a Low-Carbon Society and Enhancing the Value of the Living Circular Economy Experience Through Design Won the Gold Award in the Manufacturing category Accelerating proposals as living space that for circular material revia at the Plasma Award 2026 bal
Slide 47: Market Trends
MARKET TRENDS 46 Source：LME 3 months Trend of new housing starts in Japan Aluminum price trend (From Jan 1, 2024, to Apr 27, 2026) Annualized seasonally adjusted data 1,200 1,100 2024 2025 2026 (Unit: USD) 1,000 900 800 700 600 Jan 2024 - Mar 2024 Apr 2024 - Mar 2025 Apr 2025- Apr 2026 500 Copper pr
Slide 48: LIXIL Transitioned to IFRS from FYE2016
(REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 47 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 49: 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