Slide 1: H1 Financial Results for the Fiscal Year Ending March 31, 2026 [IFRS]
H1 Financial Results for the Fiscal Year Ending March 31, 2026 [ IFRS ] (From April 1, 2025 to September 30, 2025) LIXIL Corporation October 31, 2025 TSE Code: 5938 Copyright © LIXIL Corporation. All rights reserved.
Slide 2: Key Highlights: Summary of results for H1 FYE2026
KEY HIGHLIGHTS 1 Summary of results for H1 FYE2026 Revenue decreased while core earnings and EBITDA increased year-on-year Japan • Sales growth slowed in Q2 from Q1 levels, which had seen a surge in demand ahead of changes in the Japan Building Standards Act, specifically in the abolition of the “Ar
Slide 3: Business environment and outlook for FYE2026: Japan Business
KEY HIGHLIGHTS 2 Business environment and outlook for FYE2026: Japan Business Despite challenges such as low new housing starts, renovation sales is driving strong performance LWT LHT Living Renovation sales are Continued impact from the Sales for water-related expected to remain strong, decli
Slide 4: Business environment and outlook for FYE2026: LWT International
KEY HIGHLIGHTS 3 Business environment and outlook for FYE2026: LWT International LWT International Despite the global trend of interest rate cuts, delays in Americas policy decisions to promote housing construction are Entering an interest rate cut phase; mortgage rates are being seen due to gov
Slide 5: Business environment and outlook for FYE2026: LWT International
KEY HIGHLIGHTS 4 Business environment and outlook for FYE2026: LWT International Europe, IMEA (India, Middle East & Africa) Asia Pacific, China A full market recovery is expected next year Vietnam shows signs of recovery following a onwards; sales improved by 5% YoY (13% prolonged real estate sl
Slide 6: H1 FYE2026 Performance Highlights
H1 FYE2026 PERFORMANCE HIGHLIGHTS 5 Revenue decreased while core earnings increased year-on-year Revenue: JPY735.9 billion, down JPY3.8 billion year-on-year • Q2 (3 months) YoY: 0% in Japan and +1% in international markets (-1% excluding foreign exchange impact) • H1 (6 months) YoY: +1% in Japan a
Slide 7: H1 FYE2026 Consolidated Business Results
H1 FYE2026 CONSOLIDATED BUSINESS RESULTS 6 (1) (2) (3) ■ Gross profit margin: Increased by 1.6pp YoY ■ SG&A expenses: Increased by JPY4.4 billion YoY (Japan JPY4.7 billion increase, International JPY0.4 billion increase, forex effect JPY0.7 billion decrease) mainly due to higher personnel costs in J
Slide 8: H1 FYE2026 Business Results by Segment
H1 FYE2026 BUSINESS RESULTS BY SEGMENT 7 Core earnings increased for both LWT Japan and International, driven by strong profitability in Europe and the Middle East. While LHT’s revenue saw a slight decline, core earnings were flat, helped by price optimization and growth in renovation sales. Living
Slide 9: H1 FYE2026 Business Results by Segment
H1 FYE2026 BUSINESS RESULTS BY SEGMENT 8 Business results for H1 under previous reporting segments (2) (2) Forex impact(1) Q2 3months: Revenue +JPY2.9 billion, CE +JPY0.1 billion H1 6months: Revenue –JPY2.9 billion, CE +JPY0.1 billion (1) Forex translation effect gain(loss) from international subsid
Slide 10: Consolidated Financial Position
CONSOLIDATED FINANCIAL POSITION 9 Total assets increased marginally due to the impact of foreign exchange rates on assets held in Europe. The equity ratio is 34.1% Mar-2025 Sep-2025 Mar-2025 Sep-2025 Mar-2025 Sep-2025
Slide 11: Cash Flow Status and Cash Balance
CASH FLOW STATUS AND CASH BALANCE 10 Operating cash flow declined due to an increase in inventories. Free Cash Flow (FCF) remained positive (1) (1) (2) (2) (3) (3) (4) (4) (1) (1) Includes discontinued operations (3) CAPEX = Purchase of property, plant and equipment + (2) “FCF” = Operating CF + Inve
Slide 12: 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 13: Water Technology
WATER TECHNOLOGY 12 Japan revenue and core earnings increased driven by strong renovation sales. International core earnings rose as strong performance in Europe and the Middle East outweighed lower revenues in the Americas and China (1) Revenue Core earnings Japan: Revenue increased YoY on strong
Slide 14: International Water Technology Revenue by Region
INTERNATIONAL WATER TECHNOLOGY 13 REVENUE BY REGION Revenue by region YoY YoY (1) H1 FYE2026 FYE2026 (Management basis) local currency local currency JPY billion Results basis Forecast basis Americas 76.8 -5% (2) +10% (3) Europe 86.7 +5% +5% IMEA (India, Middle East, Africa) 37.1 +16% +12% Asia Paci
Slide 15: Housing Technology
HOUSING TECHNOLOGY 14 In Japan, revenue remained nearly flat as strong renovation sales offset a decline in new housing. International business offset the sluggish demand in Vietnam and Thailand by expanding sales in India (1) Revenue Core earnings Revenue remained flat YoY as strong renovation
Slide 16: Living
LIVING 15 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 sales and continued robust new housing renovation sales that offset a Q2 slowdown from an
Slide 17: Appendix: Financial Data
> APPENDIX: FINANCIAL DATA 16
Slide 18: Revenue by Product and Service
REVENUE BY PRODUCT AND SERVICE 17 LWT sales stayed strong, fueled by robust renovation demand, price optimizations, and sales initiatives. For LHT, sales of housing sashes were flat YoY. Living sales remained strong, despite a slight slowdown in kitchen sales JPY billion in % Quarterly YoY Full-year
Slide 19: Strategy to Strengthen Japan's Renovation Sales
STRATEGY TO STRENGTHEN JAPAN’S RENOVATION SALES 18 Renovation sales ratio increased by 1.6pp. All segments saw an increase due to continued strong demand H1 (6 months) Q2 (3 months) FYE2025 FYE2026 Increase FYE2026 YoY YoY JPY billion Results(1) Results /decrease Results Sales of renovation-related
Slide 20: Growth in International Water Technology Business
GROWTH IN INTERNATIONAL WATER TECHNOLOGY 19 BUSINESS Leveraging our brands, global structure for R&D, and roll-out of differentiated products, we are positioned for renewed growth by quickly responding to local needs(1) H1 FYE2026 (6 months) Q2 FYE2026 (3 months) Intl. Intl. Americas Europe IMEA APA
Slide 21: H1 FYE2026 Change in Revenue and Core Earnings
H1 FYE2026 CHANGE IN REVENUE AND CORE EARNINGS 20 JPY billion YoY -1% -1% +3% Change -3.8 (-0.5%) Revenue 739.8 735.9 Japan +4% Japan -1% Japan +3% (Renovation +7%) (Renovation +3%) (Renovation +6%) (Others +1%) (Others -3%) (Others -1%) International -4% International -1% 0 H1 FYE2025 LWT LHT Livin
Slide 22: Q2 FYE2026 Change in Revenue and Core Earnings
Q2 FYE2026 CHANGE IN REVENUE AND CORE EARNINGS 21 JPY billion +1% -1% 0% Change +1.3(+0.4%) YoY Revenue 370.0 371.3 Japan +2% Japan -1% Japan 0% (Renovation +3%) (Renovation +5%) (Renovation +4%) (Others 0%) (Others -5%) (Others -3%) International +1% International +2% 0 Q2 FYE2025 LWT LHT Living Co
Slide 23: H1 FYE2026 Other Income and Expenses, Finance Income and Costs
H1 FYE2026 OTHER INCOME AND EXPENSES, FINANCE 22 INCOME AND COSTS Other income includes: (1) (1) One-time profit recognition in Q1 due to an equity-method affiliate conversion of an investment Other expenses include: (2) (2) Impairment losses on the IT (3) system (3) Costs from the withdrawal of
Slide 24: Results and Forecasts by Segment
RESULTS AND FORECASTS BY SEGMENT 23 (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 25: Performance of Major International Subsidiaries
PERFORMANCE OF MAJOR INTERNATIONAL 24 SUBSIDIARIES ASB FYE2025 FYE2026 (ASD Holdings) H1 YoY Q1 Q2 Q3 Q4 Full-year Q1 Q2 H1 (USD million) Revenue 298 286 262 276 1,122 247 250 497 -15% Core earnings -12 -6 -13 -12 -44 -19 -16 -34 - Core earnings margin - - - - - - - - - Grohe Group FYE2025 FYE2026 (
Slide 26: Appendix: Business and ESG-Related Topics
APPENDIX: BUSINESS AND ESG-RELATED TOPICS 25
Slide 27: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 26 Make Better Homes a Reality Contribute to a Low-Carbon Society Through Innovation and Circular Economy Launched the premium model of bathtope, Standardized PremiAL, a recycled low-carbon aluminum, a system bath with removable bathtub(1) across its product lines wit
Slide 28: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 27 Meeting Diverse Lifestyles and Needs Global Sanitation & Hygiene for Better Homes New Vanity Space Products Launched Participation in TICAD 9 Partner Events “Changing the Norms of the Vanity Space” (1) • CEO Seto spoke at an event spotlighting investments to addres
Slide 29: Market Trends
MARKET TRENDS 28 Source︓LME 3 months Trend of new housing starts in Japan Aluminum price trend (From Jul 3, 2023, to Oct 14, 2025) Annualized seasonally adjusted data 1,200 1,100 2023 2024 2025 (Unit: USD) 1,000 900 800 700 600 Jul 2023 - Mar 2024 Apr 2024 - Mar 2025 Apr 2025- Oct 2025 500 400 Coppe
Slide 30: (Reference) LIXIL Transitioned to IFRS from FYE2016
(REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 29 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 31: 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