LIXIL : Financial Results for the Fiscal Year Ended March 31, 2025 (From April 1, 2024 to March 31, 2025)

Financial Results for the Fiscal Year Ended March 31, 2025 [ IFRS ]

(From April 1, 2024 to March 31, 2025)

LIXIL Corporation

April 30, 2025

Copyright © LIXIL Corporation. All rights reserved.

KEY HIGHLIGHTS 1

Summary of results for the fiscal year ended March 2025

Revenue and profits increased year-on-year for Q4 (3 months) FYE2025

• For the Japan business, a decline in new housing starts continued to impact both LWT and LHT. LWT's renovation sales remained strong, however, while LHT's sales, though below plan, still grew year-on-year

• For the LWT international business, revenue and core earnings increased year-on-year due to revenue increases in Europe and growth in the Middle East and India

• Ongoing international structural reforms included the completion of a transfer of the US bathing business and the closure of a plant in Thailand

  Revenue and profits increased for Q4 (12 months) FYE2025

• For Japan, new housing starts were lower than forecast in our initial plan. LWT performed well, however, offsetting decreased sales in new housing with increased renovation sales. LHT's performance was below plan due to lower-than-expected sales for window renovations

• For the LWT international business, revenue and core earnings increased year-on-year due to improved sales in Europe and the Middle East as well as the positive impact of structural reforms. Revenue and core earnings declined in the Americas from continued weak demand and the impact of a system outage from an unauthorized security access by a third-party

• Operating cash flow has continued to improve, and free cash flow increased by JPY53.8billion year-on-year

  
  
  KEY HIGHLIGHTS 2

  Outlook for the fiscal year ending March 2026

  Full-year forecast for FYE2026

• Forecasting revenue of JPY1,540.0 billion, core earnings of JPY35.0 billion, and profit attributable to owners of the parent of JPY8.0 billion

• Forecasting annual dividend of JPY90 per share

  Business environment and outlook

• LWT international business:

  • While the tariff policies of the US administration are expected to have various impacts, both positive and negative, we are currently assuming a neutral impact

  • We anticipate the global recession in housing equipment and building materials, driven by high interest rates and rising labor costs, will continue in FYE2026

  • The rationalization benefits from the sale of the US bathing business are expected to materialize in FYE2027 due to the continuation of transition services

  • The European business may see an improved business environment due to Germany's fiscal policy shift and the potential resolution of conflicts, although a full recovery is forecasted for FYE2027

  • The Middle East and India (IMEA) are expected to contribute to our sales, supported by robust demand

• Japan business: New housing starts in Japan are expected to be weak for some time, but renovation business is expected to remain strong

• Some structural reforms will continue into FYE2026

KEY HIGHLIGHTS

Effects

Costs

Progress of structural reforms

5.5

2.5

1.5

Approx.

6.0

4.0

JPY billion Optimize personnel allocation Optimize personnel allocation Restructuring supply chain Consolidation of Int'l plants Optimize business portfolio

Dissolution / transfer of business

Total

Structural reform of the US business

• Transferred a part of the bathing business to American Bath Group (ABG) as part of a partnership agreement(1)

• The unit's business accounts for approx. 10% of Americas' revenue(2)

• Recognized a gain on transfer as "other income" in Q4

• Under a transition service agreement with ABG, LIXIL will manage production facilities and operate the bathing business for a certain period

• Aim to significantly strengthen brand recognition and competitiveness, and to expand sales and achieve growth through the joint collaboration

  Costs

  Effects

  2.0

  (Profit)-1.5

  2.0

  Approx.

  1.0

  Consolidation of Thailand plants

• Decided to close the Rayong Plant (manufacturing ASB brand sanitaryware) in Thailand

• Production was reduced from March 2025, ahead of a full closure

• Consolidation of sanitaryware production in Thailand from two plants to one

  3

  FYE2026

Approx.

3.0

Costs

Structural reforms in FYE2026

• Plan to implement further streamlining of unprofitable businesses

• Starting with the transfer of the US bathing business, we will accelerate the shift in products and sales channel mix to achieve profitability in our US business

• The impact of US tariffs necessitates a careful assessment of our supply chain strategy

  1. Disclosure document on the Tokyo Stock Exchange on April 2, 2025 https://ssl4.eir-parts.net/doc/5938/tdnet/2589340/00.pdf(2) Result as of FYE2024

     
     
     KEY HIGHLIGHTS 4

     • Japan: Aluminum and component costs continued to rise, but were offset by price optimization

     • International: Core earnings increased due to higher sales in Europe and the Middle East and from the impact of structural reforms

     FYE2025

FYE2026

Core earnings review of FYE2025 and outlook for FYE2026(1)

• Japan: Aluminum and component costs continue to rise, but will be offset by price optimization and higher renovation sales

• International: Core earnings increases due primarily to sales increases in Europe and the Middle East

• Cost increases expected in Japan due to higher personnel and SG&A expenses

(JPY billion) (JPY billion)

FYE2024

Result 23.2

FYE2025

Result 31.3

FYE2025

Result 31.3

FYE2026

Forecast 35.0

Japan Higher raw

Japan Sales

Int'l Sales increase

Other

Japan Higher raw

Japan Price

Int'l Other

Sales Such as

Material

increase,

in Europe and

Material

optimizati

increase in increased

prices,

price

the Middle East

prices,

on and

Europe personnel

components,

optimiza

and effect of

components, enhancem

and

costs in

logistics costs(2)

tion

structural reforms

logistics costs(2)

ent of renovation sales

the Middle East

Japan

1. Please refer to p.34-35 and p.40 for analysis on changes of core earnings by segment for FYE2025 results and FYE2026 forecast, respectively

2. Including FX impact

FYE2025 PERFORMANCE HIGHLIGHTS 5

Revenue and core earnings increased year-on-year

• Revenue: JPY1,504.7 billion, up JPY21.5 billion year-on-year

  • Q4 (3 months) YoY: +3% in Japan and -2% in international markets (-2% excluding foreign exchange impact)

  • Q4 (12 months) YoY: Flat in Japan and +3% in international markets (-1% excluding foreign exchange impact)

• Core earnings: JPY31.3 billion, up JPY8.2 billion year-on-year

  • Q4 (3 months) YoY: +JPY6.0 billion in LWT, -JPY1.1 billion in LHT, and -JPY1.2 billion for consolidation adjustment/other factors

  • Q4 (12 months) YoY: +JPY18.2 billion in LWT, -JPY6.7 billion in LHT, and -JPY3.3 billion for consolidation adjustment/other factors

• EBITDA(1): JPY114.5 billion, up JPY10.0 billion year-on-year

• Profit(2): JPY2.0 billion, up JPY15.9 billion year-on-year

  • Q4 (3 months): Increased by JPY18.4 billion YoY due to an increase in core earnings and a decrease in structural reform costs

  • Q4 (12 months) : Increased by JPY15.9 billion YoY due to an increase in core earnings and a decrease in structural reform costs, despite increase in tax expenses

1. EBITDA=Core earnings + Depreciation + Amortization

2. Profit = Profit attributable to owners of the parent

FYE2025 CONSOLIDATED BUSINESS RESULTS 6

(1)

• Gross profit margin: Increased by 1.2pp YoY

• SG&A expenses: Increased by JPY17.2 billion YoY (Japan JPY12.4 billion increase, International JPY2.1 billion decrease, forex effect JPY6.9 billion increase) due mainly to higher personnel costs in Japan and an increase in SG&A expenses for int'l businesses as a result of foreign exchange impacts. SG&A ratio increased by 0.7pp

• CE margin: Increased by 0.5pp YoY

  1. Equivalent to "Operating profit" of JGAAP

  2. Profit attributable to owners of the parent

  3. EBITDA=Core earnings + Depreciation + Amortization

  FYE2025 BUSINESS RESULTS BY SEGMENT 7

  Revenue and core earnings increased year-on-year for both LWT Japan and LWT International. Revenue and core earnings decreased year-on-year for LHT, despite increased sales for window renovations, partially offsetting the drop in sales of new housing

  Forex impact(1) Q4 12 months:

  Revenue +JPY22.6 billion, CE -JPY0.1 billion

  Q4 3 months:

  Revenue -JPY0.1 billion, CE -JPY0.1 billion

  1. Forex translation effect gain(loss) from international subsidiaries

  
  
  CONSOLIDATED FINANCIAL POSITION 8

  Equity decreased due primarily to completion of the business transfer of the bathing business in the US. Net Debt/EBITDA improved by 0.6 year-on-year to 4.7x. Equity ratio is 33.7%

  - -

  - -

  Mar-2024 Mar-2025 Mar-2024 Mar-2025 Mar-2024 Mar-2025

  CASH FLOW STATUS AND CASH BALANCE 9

  Operating cash flow remained positive due to year-on-year improvements in working capital. Free Cash Flow (FCF) increased by JPY53.8 billion from the same period last year

  (1) (1)

  (2)

  (3)

  (2)

  (3)

  (4) (4)

  (1) (1)

  1. Includes discontinued operations

  2. "FCF" = Operating CF + Investing CF

  3. CAPEX = Purchase of property, plant and equipment +

     Purchase of intangible assets (Excluding Right of use assets in IFRS16)

  4. "Others" = Effects of exchange rate changes

  
  
  MEDIUM-TO LONG-TERM DIRECTION

  10

  MANAGEMENT DIRECTION (LIXIL PLAYBOOK) 11

  Our Corporate Purpose

Management direction - LIXIL Playbook

To Make Better Homes a Reality for Everyone, Everywhere

FOCUS TRANSFORM GROW INNOVATE

✔

Divest Non-core Businesses and Simplify Organization

Tackle Inflation and

Supply Chain Challenges

Optimize Japan and Drive New Growth

Grow Global Water Business

Embed Robust Environment Strategy

Develop New Core

Impact Strategy

Empower People to Deliver on Our Strategies and Create Value

Medium-term

Long-term target

CE margin:

10%

Long-term

CE margin: 2.1% ROIC: 1.7%

CE margin: 2.3% ROIC: 1.7%

target

CE margin:

7.5%

target

ROIC:

10%

MEDIUM-TERM ROADMAP 12

Consolidated Business Results

• FX rate assumptions for FYE2026〜FYE2028: 1USD=JPY155, 1EUR=JPY161.2

  • Aim to achieve over JPY110 billion in core earnings (CE margin 6.5%) by FYE2028

  • Growth in international business sales and improvement in gross profit margin (Contribution to CE margin: +2.8pp)

  • Improvement of fixed costs by driving structural reforms and productivity improvement (Same as above: -1.5pp)

Initiatives to achieve the target p.14 Growth image by segment p.15

KEY FOCUS AREAS FOR NEXT THREE YEARS 13

Reasons for focus

Priority focus areas for swift resolution of the above:

1. US business turnaround

   • Transform the cost structure by streamlining the bathing business and others

   • Improve the profitability of the sanitaryware business by capitalizing on the reduced inflow of low-priced products from China

   • Expand sales and drive growth through the partnership with ABG

2. Growth of the GROHE brand

   • Focus on core and growth markets such as Europe and the Middle East

   • Continuously introduce new products

3. Strengthen the renovation business in Japan

   • Improve productivity in the renovation business

   • Continuously introduce new products

   • Expand sales of heat insulation and security products

   • Living business to offer comprehensive solutions

4. Accelerate development of differentiated products for global markets

   • Most critical in the long term

INITAITIVES TO ACHIEVE THE TARGET

We aim to achieve core earnings margin of 6.5% for FYE2028 through the following initiatives

FYE2026

14

FYE2028

Recovery of the top line

• Achieve steady sales recovery in a European and US market rebound

• Capture demand in international growth markets (India and the Middle East)

• Maintain sales volume by expanding renovation sales in Japan

  Improve Gross Profit (GP) margin

• Improve product mix through sales recovery in Europe

• Accelerate shift in products and sales channels in the US

• Expand sales of high-value-added products (Int'l shower toilets, PremiAL, and others)

  Reduce SG&A expense ratio

• Reduce fixed costs by reorganizing the supply chain

• Transformation of the US business following optimization of the business portfolio

  Reduce headquarters costs

• Improve operational efficiency by leveraging digital technologies, including AI

• Make continuous cost reduction efforts through measures such as personnel reallocation

FYE2026-2028

(Outlook)

SG&A%

improvement 1.0pp

SG&A%

improvement 0.5pp

CAGR 4.1%

GP%

+2.8pp

SG&A%

1.5pp improvement

HQ cost 10%

decrease

GROWTH IMAGE BY SEGMENT 15

Business results for Japan and International (Core earnings image)

FYE2022 results FYE2025 results FYE2028 image

LWT int'l CE margin: 9.7%

LWT int'l CE margin: 3.4%

LWT int'l CE margin: 10%

60%

40% 24%

76%

60%

40%

Japan

CE margin:

6.5%

• The Japan business performed steadily, supported by post-COVID-19 renovation demand, despite being affected by rising raw material prices and difficulties in procuring parts

• International business recovered from the disruptions caused by COVID-19, with solid growth in sales and profits across all regions

• Overall profit was driven by the profitability of the international business

Japan

CE margin:

5.2%

• The significant deterioration in LWT international business's core earnings is primarily due to the weak international markets since FYE2024. In FYE2025, the European business saw a recovery in sales

• Growth markets such as the Middle East and India remain robust

• The Japanese market maintains generally stable profitability and makes a significant contribution to overall company profits

  Japan

  CE margin:

  8%

• We plan to increase the core earnings margin through further sales growth in Europe, our primary revenue source

• Steadily capture growth markets such as the Middle East, India, and Vietnam

• Improve profitability in the Japanese market through timely price optimizations and expanded sales of new and sustainable products

• Enhance company-wide productivity through AI utilization

  
  
  VARIABLE FACTORS FOR THE NEXT 3 YEARS 16

  • The implementation of reciprocal tariffs by the US administration suggests a high likelihood of continued uncertainty in the short term

  • Regarding our medium- to long-term direction, we will continue to monitor future developments and adjust our strategies as necessary

    Policies of the US administration

    • The future trends of reciprocal tariffs may impact our business (Mexican-origin products, such as ceramics and some faucets, are currently exempted from import duties)

    • Further decline in housing demand due to progressing inflation in the US. On the other hand, there is a possibility that economic stimulus measures will be implemented

      Recovery of European Economy

    • The economic impact of lower interest rates in Europe and the shift towards expansionary fiscal policy in Germany and other countries is expected to be realized in the current fiscal year. Large pent-up demand is expected going forward

      Interest rates

    • Interest rate cuts are expected to continue in Europe and the US. However, in the US, it will be dependent on inflation trends

    • In Japan, interest rate hikes are anticipated, but the immediate impact on demand is expected to be minimal. The impact of increase in interest payment for our company is also expected to be limited

      Subsidy for renovation products to create better heat-insulation

    • Entering its third year, we expect subsidies, including those for water-related areas, to continue in the medium to long term to achieve a low-carbon society

      Adoption of AI

    • A field in which our company is focusing its development efforts. We expect to accelerate technological advancements and their application on-site

      Expand sales of new products with social and environmental impact

      See p.18

      RISKS AND OPPORTUNITIES 17

      LWT International business

      Categories	Risks Further slowdown in US housing demand	Opportunities
      Sales growth		Accelerated expansion of European and IMEA (India and Middle East) markets
      US government policies	Prolonged reciprocal tariff measures	Activation of housing-related measures (subsidies and others)
      Geopolitical factors	High costs due to prolonged conflicts Lower energy costs due to the resolution of the conflict

      Japan business (LHT/LWT/Living)

      Categories	Risks Further decline in the new housing market due to rising interest rates	Opportunities
      Sales growth		Further expansion of the renovation market
      Cost increase	Decreased profitability due to a weak JPY and rising raw material costs	Appreciation of the JPY due to a narrowing interest rate gap between Japan and the US
      Government policies	Discontinuation or significant changes Continuation of subsidies and to government subsidies expansion of eligible products

      
      
      
      
      
      

      18

      EXPAND SALES OF NEW PRODUCTS WITH SOCIAL AND ENVIRONMENTAL IMPACT

  • Aiming to achieve sustainable growth through the expansion of differentiated products and to create an impact on society at the same time

  • The development of the following products has already been completed. The key is how far we can penetrate the market with differentiated prices

Reducing CO2 emissions

Promote circular economy

KINUAMI

Shower toilet with the feminine front-nozzle

GROHE Blue Greentap

PremiAL

revia

Renovation products for better heat-insulation

Achieved JPY50

FYE2025 progress

Quotation

Commenced mass

Top in

Redesigned and branded as GROHE Purefoam(1) for international markets

billion in sales

(FYE2025)

"SILVER award" at "Femtech Japan Award 2024" (two years in a row) (2)

Greentap exhibited at EXPO 2025, OSAKA, KANSAI, JAPAN(3)

amount approx.

JPY 30 billion as of October 2024 Numerous implementation

examples both in Japan and internationally

production from December 2024(4)

Signed a partnership and began collaboration with Tsu City, Mie Prefecture(5)

applications for advanced window renovation project subsidies for second straight year;

In-plus product line expanded(6)

Medium-to long-term sales target(7)

JPY tens of billions

Projected 5% annual growth

JPY tens of billions

JPY300

billion

JPY100

billion

JPY80

billion

1. News release https://newsroom.lixil.com/20250318_ish

2. News release https://newsroom.lixil.com/ja/2024121201(Japanese only)

3. News release https://newsroom.lixil.com/ja/2025040301(Japanese only)

   
   
   

4. News release https://newsroom.lixil.com/ja/2024121901(Japanese only)

5. News release https://newsroom.lixil.com/ja/2025032803(Japanese only)

6. News release https://newsroom.lixil.com/ja/2025030301-0(Japanese only)

7. Presentation material for the Fiscal Year Ended March 31, 2024, p.8 https://ssl4.eir-parts.net/doc/5938/tdnet/2427536/00.pdf#page=5

   CAPITAL ALLOCATION

   Approach to capital allocation

   19

   • 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 the long term, and to determine the amount of annual dividends based on the medium-term EBITDA level, as well as to buy back shares when appropriate

   • Improve financial position: Consider based on the business environment, financial condition, and cash flow status

   Dividend forecast for FYE2026

   Forecast for the DPS is JPY90, unchanged from the previous year (27% of adj. EBITDA(1)forecasted for FYE2026)

   
   
   

   Adj. EBITDA(1)

   Cumulative capital allocation over three years

   Others

   Cumulative three-year adjusted EBITDA(1)

   (JPY billion)

   Cumulative

   Allocation

   Dividend Based on mid-term EBITDA level

   CAPEX

   Approx. JPY 160 billion over three years

   
   
   

   (1) Adjusted EBITDA=Core earnings + Depreciation (adjusted for the amount of depreciation recorded as a cash outflow due to the application of lease accounting under IFRS)

   PROGRESS OF MANAGEMENT STRATEGY & FORECAST FOR FYE2026

   20

   FINANCIAL INDICATORS, FYE2026 FORECAST 21

   Progress in strengthening balance sheet and improving profitability

   2.1%

   1.7% 1.6%

   Core earnings margin

   (%) 6

   5

   4

   3

   2

   FYE2026

1

2.3%

(%) 8

1.7%

0.9%

ROIC (2)

1.5%

6

4

2

0

1.7%

(trn) 1.6

1.5

1.4

1.3

1.2

4.7x

1.54

1.48

Net debt/EBITDA

(JPY)

Revenue

(times)

5.3x

6

4.8x

5

4

3

2

4.6x

Equity ratio (3)

1.50

1.50

33.2%

33.7%

33.7% 34.1%

(%) 35

30

25

20

15

1. Information from the advanced window renovation 2025 website material https://tinyurl.com/krkayz77(Japanese only)

CAPEX, DEPRECIATION, AND R&D EXPENDITURE(1) 24

By increasing investment efficiency, we aim to improve financial strength and raise profitability

JPY billion

100

80

60

40

20

61.0 63.6 66.2

81.3 83.2 83.1

24.3 25.3 25.9

Breakdown of CAPEX

Breakdown of Depreciation

0

CAPEX Depreciation R&D

FYE2024 FYE2025

FYE2026Fcst.

(1) Excludes discontinued operations. CAPEX and Depreciation includes intangible assets and IFRS 16 lease

RESULTS BY BUSINESS SEGMENT

• Water Technology Business (LWT)

• Housing Technology Business (LHT)

CHANGE IN REPORTING SEGMENT 26

Established the new segment, "Living Business", by integrating the kitchen and washstand cabinet unit business from the "Water Technology Business" and the wooden interior materials business from the "Housing Technology Business". These businesses share many similarities in terms of products, manufacturing processes, and business models. This integration is part of LIXIL's focus on its strategic initiative to improve profitability of the Japan business and strengthen its business structure, while also providing new value to end users

〜FYE2025 FYE2026〜

Former reporting segment Business domain

New reporting segment

WATER TECHNOLOGY 27

Japan revenue and profits increased; revenue and profits also rose for int'l business, driven by higher revenues in Europe and the Middle East

FYE2026 Forecast (New reporting segments)

Revenue

Core earnings

320.0

20.5

6.4%

511.0

20.0

3.9%

831.0

40.5

4.9%

• Japan: Despite weak new housing starts, revenue increased YoY due to price optimizations and higher renovation sales

• Int'l(1): Overall revenue was flat YoY in local currency terms mainly due to continued soft demand in the US and China offsetting revenue increases in Europe and the Middle East. Revenue increased in JPY terms

• Int'l revenue distribution ratio: 53.1%, flat YoY

• Japan: Despite the impact of low new housing starts and an increase in component costs and impact from FX, CE increased YoY, driven by higher renovation sales, the impact of price optimizations, and cost-saving initiatives

• Int'l(1): CE increased YoY due to revenue increases in Europe and the Middle East, as well as the impact of structural reforms (fixed costs reduction and productivity improvements)

• Int'l CE distribution ratio: 40.6%, up by 32.5pp YoY

  1. YoY vs Results excluding forex impact: Revenue -JPY5.8 billion, -1%, Core earnings +JPY14.9 billion, +810%

INTERNATIONAL WATER TECHNOLOGY REVENUE 28 BY REGION

Revenue by region

(1)

FYE2026

YoY

(Management basis)

JPY billion

Forecast

)

local currency basis

+10%(3)

+5%

+12%

+11%

+7%

JPY Local

-

511.0

(+4% YoY)

1. Statutory basis currency: FYE2025 full-year results 1USD=JPY152.48, 1EUR=JPY163.62

   Management basis currency: FYE2025 1USD=JPY150.0, 1EUR=JPY162.0, FYE2026 assumptions 1USD=JPY155.0, 1EUR=JPY161.2

2. With the dissolution of DPI, we have excluded its sales from FYE2024 results. Including DPI's sales from FYE2024, sales YoY would be -13%

3. The revenue growth rate forecast is calculated excluding the impact of the US bathing business transfer. Including the bathing business in FYE2025 results, revenue YoY would be -1%

HOUSING TECHNOLOGY 29

FYE2026 Forecast (New reporting segments)

In Japan, while sales for window renovation partially offset the decline in new housing, both revenue and core earnings decreased. International business remained at the same level as the previous year

Revenue

(1)

Core earnings

509.0

28.0

5.5%

28.0

1.5

5.4%

537.0

29.5

5.5%

• Revenue decreased YoY due to weak sales for new housing and the absence of revenue from business divestitures in FYE2024

• Sales helped by increased orders for window renovation products

• CE decreased YoY due to low new housing starts and impact from higher component costs/SG&A expenses. The building business maintained strong performance and improved profitability

• YoY comparisons affected by inventory valuation gains in Q1 of the previous year

  1. FYE2025 Full-year results (Reference)

     LHT excl. building business Revenue JPY485.9 billion, CE JPY21.0 billion, CE margin 4.3% Building business Revenue JPY101.0 billion, CE JPY8.1 billion, CE margin 8.1%

     
     
     APPENDIX: FINANCIAL DATA

     30

     REVENUE BY PRODUCT AND SERVICE 31

     LWT sales remained strong due to robust renovation demand, price optimizations, and successful sales initiatives. For LHT, an increase in sales for window renovation products partially offset decreased sales for new housing

     (1)

     (1)

     (1)

     (1)

1. The internal product categorization for sales of sanitaryware and washstand cabinet units has changed from FYE2025. If FYE2024 revenue was restated, Q4 (12months) YoY: sanitaryware +4.0%, washstand cabinet units +1.9%, Q4 (3months) YoY: sanitaryware +2.4%, washstand cabinet units +2.4%

2. Please refer to p.33 for the revenue of water-related products in international business

STRATEGY TO PROMOTE RENOVATION SALES IN JAPAN 32

Renovation sales ratio increased by 2.4pp. Both LWT and LHT saw an increase due to continued strong demand

Renovation sales ratio by business

Inner window,

segment (YoY)

FYE2024 FYE2025

Increase

/decrease

In-plus

1. Sales of renovation product was restated for comparison on the same basis

2. The data on the number of member homebuilders has been excluded since the number is relatively static

33

GROWTH IN INTERNATIONAL WATER TECHNOLOGY 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)

1. See also, p.31-35, 44 of our INTEGRATED REPORT 2024, for progress of "Grow Global Water Business" in the LIXIL Playbook https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym41/158027/00.pdf#page=32

34

Q4 (12 MONTHS) FYE2025 CHANGE IN REVENUE AND CORE EARNINGS

+21.5(+1.4%)

JPY billion YoY

Revenue

1,483.2

Renovation +9%

Others -2%

Japan +3%

International +3%

Renovation +5%

Others -3%

Japan -2%

International +3%

1,504.7

0

FYE2024 LWT LHT

Consolidation adjustment/

FYE2025

Core earnings

JPY billion

23.2

CE

+8.2(+35.3%)

LWT +1.4

LHT -3.4

Personnel expenses, activity costs, and other costs

LWT -4.4

LHT -4.5

other

LWT Intl. +14.8

LHT Intl. -0.3

(Reference)

31.3

CE

Margin

Margin 1.6%

FYE2024

Sales in Japan

Mix/pricing Cost

SG&A

International business

GROHE +21.0

ASB -3.2

Others +3.4

Consolidation adjustment/ others

2.1%

FYE2025

Japan -0.3(-5%) Int'l +14.5(+442%)

+4.0 (+1.1%)

35

Q4 (3 MONTHS) FYE2025 CHANGE IN REVENUE AND CORE EARNINGS

JPY billion

YoY

Revenue

360.3

0

Renovation +8%

Others -1%

Japan +3%

International -2%

Renovation +7%

Others +2%

Japan +3%

International -5%

364.2

Q4 FYE2024 LWT LHT

Material price -4.4

LWT -1.5

LHT -2.9

Consolidation adjustment/ other

Q4 FYE2025

Core earnings

JPY billion

-3.4

+3.7 (-)

LWT +0.3

LHT +0.5

LWT +2.6

LHT +1.9

Cost reduction +3.0

LWT +0.9

LHT +2.0

Activity costs and other costs

LWT -0.9

LHT -2.3

LWT Intl. +4.6

LHT Intl. -0.3

(Reference) GROHE +6.8

ASB -0.3

Others -2.3

0.3

CE

Margin 0.1%

Q4 FYE2024

Sales in Japan Mix/pricing Cost

SG&A

International Consolidation business adjustment/

Q4 FYE2025

Japan +0.7(+13%)

Int'l +4.3(+450%)

others

36

FYE2025 OTHER INCOME AND EXPENSES, FINANCE INCOME AND COSTS

• Other income includes income recognized related to Joyou and the proceeds from the transfer of the US bathing business

• Other expenses include costs related to the closure of the Thailand Rayong Plant and costs related to structural reforms such as personnel optimization

RESULTS BY SEGMENT (2 SEGMENT) 37

(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

RESULTS AND FORECASTS BY SEGMENT (3 SEGMENT) 38

(1)

(1)

FYE2026 Full-year Forecasts

YoY%

Japan Intl. Total Total

(1) Difference between sum total of Japan and International in Revenue and Core earnings and "Total" is the amount of consolidation, adj. & others

39

PERFORMANCE OF MAJOR INTERNATIONAL SUBSIDIARIES

FYE2025 full-year

(1) Please refer to p56-62 of the FYE2024 Consolidated Financial Statements "14. Goodwill and Other Intangible Assets" for assessment of goodwill and intangible assets https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym35/159277/00.pdf#page=57

+35.3(+2.3%)

40

FYE2026 FORECAST CHANGE IN REVENUE AND CORE EARNINGS

Revenue

JPY billion

YoY

1,504.7 1,540.0

0

Core earnings

JPY billion

FYE2025

LWT +0.6

LWT LHT

LWT +5.7

LHT +10.5

Living +4.2

Living

Material price -23.2

LWT -6.1

LHT -12.0

Living -5.1

Consolidation adjustment/ other

FYE2026

LHT +2.3

Living +0.6

Cost reduction +13.8

LWT +2.3

LHT +6.6

Living +4.4

Change +3.7(+11.7%)

31.3

CE

Margin 2.1%

FYE2025

Sales in Japan Mix/pricing Cost

Activity costs and other costs

LWT -2.2

LHT -4.3

Living -1.2

SG&A

International Consolidation business adjustment/

35.0

CE

Margin 2.3%

FYE2026

Japan +6.7(+13%)

Int'l +3.7(+21%)

others

APPENDIX: BUSINESS AND ESG-RELATED TOPICS

41

CHANGE IN OFFICERS (1)

Effective after the annual shareholders' meeting to be held in June 2025

List of Directors

(◎: newly appointed June 2025, □: independent director, Underline: female member)

42

(Announced on March 24, 2025)

✿: Chairperson, ●: Member

* Only statutory committees are listed

(1) Concurrently serves as an Executive officer

CHANGE IN OFFICERS (2) 43

Effective after the annual shareholders' meeting to be held in June 2025

Newly appointed candidate

Hiroshi Ishino

(Date of Birth: April 10, 1951)

Reason for Appointment

Mr. Ishino has extensive experience as a professional in international operations at a major trading company, in addition to deep experience and knowledge regarding business operations, from manufacturing to sales, at a listed manufacturer operating globally. It is expected that he will contribute to the supervision of management from the perspective of an experienced manager in global manufacturing. Therefore, he is considered capable of performing the duties of an outside director of the company.

Vitae

Apr. 1975 Joined Mitsubishi Corporation Mar. 2003 Joined Kansai Paint Co., Ltd.

Jun. 2006 Director, Deputy General Manager, International Affairs, Kansai Paint Co., Ltd. Jun. 2008 Managing Director, Sales, Coatings Business, Kansai Paint Co., Ltd.

Apr. 2010 Senior Managing Director, Sales, Kansai Paint Co., Ltd.

Jun. 2011 Director, Senior Managing Executive Officer, Sales, International Affairs and Procurement, Kansai Paint Co., Ltd.

Jun. 2012 Representative Director, Senior Managing Executive Office, Sales, International Affairs and Procurement, Kansai Paint Co., Ltd.

Apr. 2013 Representative Director and President, Kansai Paint Co., Ltd. Jun. 2019 Senior Corporate Advisor, Kansai Paint Co., Ltd.

Jul. 2020 Director, Nippon Sheet Glass Co., Ltd. (Incumbent) Jun. 2023 Honorary Advisor, Kansai Paint Co., Ltd. (Incumbent)

CHANGE IN OFFICERS (3)

（as of April 1, 2025）

List of Executive Officers

(※concurrently serves as a director, ◎: newly appointed, Underline: female member)

44

(Announced on March 24, 2025)

BUSINESS AND ESG RELATED TOPICS 45

Contribute to a Low-Carbon Society and Circular Economy

LIXIL signed a partnership with Tsu City, Mie Prefecture, to advance plastic recycling(1)

Contribute to a Low-Carbon Society and Circular Economy

Achieved recycling of FRP, which has historically been difficult to recycle

• Developed the industry's first local production and consumption-based resource recycling system for waste plastics, which have historically been difficult to recycle(2)

• Tsu City provides its household plastic packaging waste to LIXIL. LIXIL then processes this waste into the raw material for producing the sustainable material, revia

• This partnership fosters a sustainable circular economy in Tsu City and contributes to realizing carbon neutrality

1. News release https://newsroom.lixil.com/ja/2025032803(JP only)

2. Company research as of February 2025

   • In January 2025, LIXIL commenced the recycling of FRP (fiber-reinforced plastic) used in unit bathtubs through a collaboration with HIROKOU Co., Ltd. Most FRP was put in landfills or incinerated; LIXIL used thermal recycling, but with the new program, about half of the factory's waste FRP can now be recycled(3)

   • Also, LIXIL successfully developed a new technology to recycle waste FRP as raw material for plastering walls. This enables the utilization of FRP as a sustainable material(4)

3. News release https://newsroom.lixil.com/ja/2025011501(JP only)

4. News release https://newsroom.lixil.com/ja/2025031802(JP only)

   
   
   BUSINESS AND ESG RELATED TOPICS 46

   Making Better Homes a Reality Through Innovation

   GROHE presents latest Innovations at ISH 2025(1)

   External Recognition of D&I Initiatives

   Received numerous D&I recognitions in promoting our Global People Strategy

   • GROHE showcased the latest innovations and product highlights designed to transform the way we experience water every day

     • GROHE Purefoam, a technology developed in Japan and utilized globally

     • GROHE Everstream, a water-recirculating shower

     • GROHE Rapido Heat Recovery Shower System, a sustainable shower with enhanced energy efficiency

   • Creating impact on society and the environment by expanding the offering of differentiated products

(1) News release https://newsroom.lixil.com/20250318_ish

• Selected as a component of the Nadeshiko Brand initiative for the nineth time, jointly conducted by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (March 2025)

• Selected as a component of the "White 500" (an outstanding company 500) for the third consecutive year within the "Health and Productivity Management Outstanding Organization", jointly conducted by METI and the Nippon Kenko Kaigi, Japan (March 2025)

Please refer to the next page for other external recognitions

EXTERNAL RECOGNITIONS 47

Selected for all six ESG indices adopted by Japan's Government Pension Investment Fund (GPIF) (as of April 2025)(1)(2)

MSCI ESG Ratings Received a rating of AAA(1) [three consecutive years] (February 2025)

Produced by MSCI ESG Research as of February 2025.

CDP

FYE2025:

• Climate A-, Water Security A-FYE2024:

• CDP's Climate A list

• Supplier Engagement A-

FTSE4Good Index Series(2)

[eight consecutive years]

DX Platinum Company 2025-2027 Selected as a DX Platinum Company 2025-2027 for the first time

(April 2025)

1. Please see our website for the disclaimer https://www.lixil.com/en/about/evaluation.html

2. FTSE4Good Index Series https://www.lseg.com/en/ftse-russell/indices/ftse4good/

FTSE Blossom Japan Index https://www.lseg.com/en/ftse-russell/indices/blossom-japan

(REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 CHANGE IN PROFIT LEVEL STRUCTURE IS AS SHOWN

49

Profit attributable to

Profit for discontinued operations

Discontinued operations

Profit from continuing operations

Extraordinary income/loss

Ordinary income

Other income/expenses

Non-operating income/expenses

Core earnings (CE)

Operating profit

SG&A

SG&A

Continuing operations

"Core earnings" in IFRS is equivalent to JGAAP's "Operating profit"

2023 2024 2025

MARKET TRENDS

Trend of new housing starts in Japan

Annualized seasonally adjusted data

1,000

950

900

850

800

750

700

48

Aluminum price trend

Source︓LME 3 months

(From Jan 1, 2023, to Apr 22, 2025)

Jan 2023

- Mar 2023

Apr 2023 - Mar 2024

Apr 2024 - Apr 2025

Copper price trend

Source︓LME 3 months

(From Jan 1, 2023, to Apr 22, 2025)

Source︓Statistics of new housing starts, Ministry of Land, Infrastructure, Transport and Tourism（Jan 2022-Feb 2025)

（year-on-year）

New housing construction trends in Japan

 Jan-Feb 2025: -1.1%  Jan-Dec 2024: -3.4%

Jan 2023

- Mar 2023

Apr 2023 - Mar 2024

Apr 2024 - Apr 2025

Foreign exchange rates (Average rate)

US dollar Euro

JPY144.40 JPY156.80

JPY152.48 JPY155.0

JPY163.62 JPY161.2

(JPY per tonne)

Results and assumptions (price) Aluminum (Purchasing price)

Copper alloy

335,000

1,009,000

398,000

1,170,000

448,000

1,262,000

(Unit: USD)

(Unit: USD)

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 differ materially from those discussed in the forward-looking statements.