LIXIL : Financial Results for the Fiscal Year Ending March 31, 2026 (From April 1, 2025 to 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

Copyright © LIXIL Corporation. All rights reserved.

Summary of results for FYE2026

Core earnings: JPY38.5 billion and EBITDA: JPY121.6 billion

Core earnings exceeded the forecast

Japan

International

Others

• All segments achieved YoY growth in core earnings, driven by strong renovation sales, despite a significant YoY decline of over 10% in new housing demand

• The LHT business saw higher sales of subsidy-eligible products, although a surge in aluminum prices in the second half from previously low levels impacted Q4 earnings

• For LWT international business, revenue remained flat YoY, but core earnings improved significantly, driven by a successful shift to value-added products in Europe and IMEA(1). While housing markets remain sluggish in the Americas and China, the Americas turned profitable in core earnings in the month of March, reflecting the benefits of structural reforms

• Other income and expenses increased YoY due to the recording of additional

  structural reform costs

• Finance costs increased YoY due to losses on exchange differences

1. IMEA (India, Middle East, Africa)

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

1. Profit = Profit attributable to owners of the parent

   Main Changes

   • Other Income and Expenses

     In addition to the initially planned structural reforms, additional expenses were recognized, including further restructuring costs in the U.S., impairment losses on fixed assets due to the economic downturn in China, and impairment losses on IT systems

   • Finance Income and Costs

     While interest income and expenses were in line with the plan, finance costs exceeded the initial plan due to the recognition of foreign exchange losses

   • Tax Expenses

     Tax expenses decreased from the initial plan due to a change in the corporate tax rate at a consolidated subsidiary

     Europe

     Growth of the GROHE Brand

     
     
     

     GROHE

     100%

     Sales Mix by Brand

     Core earnings growth rate

     Sales Mix by Brand

     Current Situation

     	+15%

     FYE25 FYE26

     Ensuring stable supply

     IMEA

     5% 6%

     89%

     
     
     

     Current Situation

     • GROHE AS

       ■

       ■

       Cobra

       89%

       5%

       6%

       • Housing demand in Europe remains soft due to rising construction costs in major markets

       • Pent-up demand is gradually emerging

         Future Initiatives

       • Maintain and improve the product mix by increasing sales of high-value-added products, such as color products and GROHE SPA

       • Further streamline the supply chain through measures such as optimizing the logistics network

       • Demand in the Middle East remains resilient, led by Saudi Arabia. While the impact of the situation in Iran on revenue is currently limited, the situation requires close monitoring

       • In India, housing demand is increasing due to urbanization and the expanding middle class; performance in the project channel is strong

       • GROHE saw its solid performance in the Africa region, with exceptional growth rates led by Egypt and Morocco

         Future Initiatives

       • Strengthen showroom expansion and project wins in priority markets such as Saudi Arabia and India, focusing on GROHE products and the GROHE SPA brand

         Market Recovery and

         Sales Network Expansion

         17%

         Sales Mix by Brand

         50%

         32%

         AS INAX GROHE

         50%

         32%

         17%

         APAC

         China

         6%

         9%

         Expanding sales of

         differentiated products

         Sales Mix by Brand

         20%

         64%

         • GROHE

         • AS

         • INAX

         • others

         64%

         20%

         9%

         6%

         
         
         

         ■

         ■

         ■

         Current Situation

       • In Vietnam, suspended projects are resuming due to the deregulation of the real estate market

       • Concerns over a further economic downturn in Thailand persist, requiring close monitoring of the situation

         Future Initiatives

       • Expand project wins and direct sales through new product development and brand value enhancement

       • Accelerate the optimization of business structures and bases

         Current Situation

       • Downward pressure continues in the housing market

       • The project market has declined significantly due to liquidity

         issues among real estate developers

       • Meanwhile, sales for the GROHE brand expanded further

         Future Initiatives

       • Clarify brand strategies, including differentiating from local manufacturers by expanding GROHE sales and strengthening the American Standard Brand for commercial facilities

       • Transition to an asset-light model through optimization of the production network

         
         
         

         Initiatives for FYE2027

         • Expansion of AS premium toilets: Launching the Champion series to expand the premium toilet category

         • Growth of GROHE: Strengthening supply infrastructure and further investment in showrooms

         • Leveraging ASB's strengths: Improving relationships with installers through training and lab utilization, and by providing integrated product and installation solutions

         • Expansion of shower toilets: Increasing priority in the Americas and driving market expansion

         
         
         

         Progress in FYE2026

         Americas Business Turnaround

         1% 11%

         7%

         81%

         Sales Mix by Brand Retail revenue growth rate

         Retail others
         
         

         • AS

         • GROHE

         • DXV

         • others

           81%

           7%

           1%

           10%

           		Americas
           		revenue - 4%
           		+8%

           FYE25 FYE26

           Recovery lagged initial expectations due to cost pressures and delayed price revision benefits; however, measures materialized in 4Q, with the business turning profitable in March

           Optimizing workforce allocation

       • The effects of additional structural reforms, implemented in anticipation of the conclusion of the Transition Service Agreement for the bathing business, have begun to materialize (headcount reduced 10% YoY)

         Restructuring the supply chain

       • Completed the Transition Service Agreement for the bathing business

         ended at the end of March

       • Reorganizing the logistics network

         Optimizing the business portfolio

       • Reallocating resources from the low-margin DIY volume segment to the pro wholesale channel

       • Strengthening sales expansion approaches for ASB and GROHE; focusing on expanding GROHE's wholesale presence and strengthening ASB's relationships with installers

         PROGRESS AND FUTURE INITIATIVES IN THE AMERICAS BUSINESS

         5

         
         
         

         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 international markets (-3% excluding foreign exchange impact)

         • Core earnings: JPY38.5 billion, up JPY7.2 billion year-on-year

           • Q4 (3 months) YoY: +JPY2.3 billion in LWT, +JPY0.6 billion in LHT, +JPY0.1 billion in

             Living and -JPY1.2 billion for consolidation adjustment/other factors

           • Q4 (12 months) YoY: +JPY8.6 billion in LWT, +JPY0.7 billion in LHT, +JPY0.6 billion in Living and -JPY2.7 billion for consolidation adjustment/other factors

         • EBITDA(1): JPY121.6 billion, up JPY7.1 billion year-on-year

         • Profit(2): JPY8.1 billion, up JPY6.1 billion year-on-year

           • Q4 (3 months): Decreased by JPY1.4 billion YoY due to an increase in other expenses, despite an increase in core earnings and a decrease in corporate income tax expenses

           • Q4 (12 months) : Increased by JPY6.1 billion YoY due to an increase in core earnings and a decrease in corporate income tax expenses, despite increase in other expenses and finance costs

         1. EBITDA=Core earnings + Depreciation + Amortization

         2. Profit = Profit attributable to owners of the parent

         
         
         

         (1)

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 Japan and an increase in SG&A expenses for int'l businesses as a result of foreign exchange impacts. SG&A ratio increased by 0.5pp

   • 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

   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 revenue and core earnings growth, supported by strong renovation sales

   
   
   

   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 subsidiaries

   2. The segment breakdown has been changed from FYE2026. Please refer to the next page for the results under the former reporting segments

   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 subsidiaries

   2. Includes consolidation adjustments resulting from the change from 2 reporting segments to 3 reporting segments

   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

   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)

(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

   PROGRESS OF MANAGEMENT STRATEGY & FORECAST FOR FYE2027

   12

   
   
   
   
   

   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 from the annual forecasts as it is difficult to

     reasonably factor in at this time)

   • Forecasting annual dividend of JPY90 per share

     Business environment and outlook

   • General: Closely monitor future developments regarding the impact of the situation in the Middle East (refer to p. 15)

   • LWT International Business:

     Americas: ✓The effects of SG&A reductions through structural reforms and the restructuring of sales organizations are expected to materialize during this fiscal year

     • The U.S. economy, which had shown signs of improvement, remains sluggish, and uncertainty persists for the recovery of the housing market

       Europe: ✓While pent-up demand is gradually emerging, a full-scale recovery of the housing market is

       projected to be delayed

       IMEA: ✓Despite disruptions caused by the situation in the Middle East, there is no significant impact at present. The potential impact on future revenue requires close monitoring

       APAC & China: ✓Focusing on expanding sales of solid GROHE products, despite the sluggish overall housing market

   • Japan Business: While new housing starts in Japan are forecasted to remain weak, we expect to offset the decline in new construction demand by promoting sales in the renovation market

Projecting an increase in Revenue and Profits(1) compared to the previous year. Forecasting annual dividend of JPY90 per share

1. In Core earnings basis

2. Calculated using the number of shares outstanding as of March 31, 2026 (excl. treasury stocks)

3. EBITDA=Core earnings + Depreciation

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

   
   
   

   • 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 domestic operations and scrutinizing mitigation measures, including global production optimization and price revisions

   • Supply Constraint Risk: The outlook for raw material procurement (particularly resins, plastics, chemicals, and packaging materials) and product supply, as well as the potential for various cost increases, remains highly uncertain. At this stage, it is difficult to incorporate these factors into a financial forecast in a reasonable manner

WTI price trend

Source: US Energy Information Administration (24/1/1-26/4/20)

Source: LME 3 months

Aluminum price trend

(From Jan 1, 2024, to Apr 27, 2026)

40

(Unit: USD per barrel)

(Unit: USD)

Jan 2024 - Mar 2024

Apr 2024 - Mar 2025

Apr 2025- Apr 2026

Jan 2024 - Mar 2024

Apr 2024 - Mar 2025

Apr 2025- Apr 2026

RESPONSE STATUS TO MATERIALIZED RISKS

FROM THE RECENT SITUATION IN THE MIDDLE EAST

15

(JPY billion)

(JPY billion) *The impact of the situation in the Middle East is not included in this forecast

FYE2025

Result

31.3

FYE2026

Result 38.5

FYE2026

Result 38.5

FYE2027

Forecast 45.0

Japan Sales increase, price

optimization

Japan Higher raw Material prices(2)

Int'l Other Sales increase

in Europe and

Japan Sales increase, price

optimization

Japan Higher raw Material prices(2)

Int'l Other Sales increase

in Europe and

IMEA and effect of structural reforms

IMEA and effect of structural reforms

Core earnings review of FYE2026 and outlook for FYE2027(1)

• Japan: Price optimization covered increased aluminum and component costs

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

1. Please refer to p.35-36 and p.40 for segment-specific figures for FYE2026 results and FYE2027 forecast, respectively

2. Including FX impact

Management direction - LIXIL Playbook

To Make Better Homes a Reality for Everyone, Everywhere

FOCUS

Divest Non-core Businesses and Simplify

Organization ✔

TRANSFORM

Tackle Inflation and

Supply Chain Challenges

GROW

Optimize Japan and Drive New Growth

Grow Global Water Business

INNOVATE

Embed Develop

Robust New Core Environment

Strategy

Impact Strategy

Empower People to Deliver on

Our Strategies and Create Value

Medium-term

CE margin:

CE margin:

2.1%

ROIC:

1.7%

CE margin:

2.5%

ROIC:

1.5%

2.8%

ROIC:

2.0%

target

CE margin:

7.5%

Long-term

target

CE margin:

10%

Long-term

target

10%

ROIC:

FYE2025

FYE2026

FYE2027

Medium-term target

Long-term target

Negative Factors

• Continued economic deterioration and housing market stagnation in the U.S.

• Delayed recovery in the European housing market

• Delayed recovery following the sharp decline in new housing starts in Japan

• Soaring and sustained high commodity prices

• Increase in SG&A expenses, such as personnel and logistics costs

Positive Factors

• Revenue and profit growth driven by self

  efforts in Europe

• Resilient market growth in IMEA

• Expanding the market share of the GROHE brand

• Growth in domestic renovation sales

FYE2027 Earnings Forecast Differences from the initial plan

Breakdown of Revisions to FYE2027 Forecast

CE 65.0

CE

45.0

JPY

Initial plan

Sales Mix/pricing

Cost

SG&A

Revised

billion

1. Equivalent to "Operating profit" of JGAAP

   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
   Sales growth
   US government policies
   Geopolitical factors	demand and supply constraints

   • Further delay in the recovery of the European market

   • Further stagnation of the housing and real estate markets in the U.S. and China

   • Acceleration of recovery momentum in the European market

   • Recovery of the U.S. market

   • Imposition of additional tariffs, economic recession driven by inflation and rising interest rates, and continued stagnation in the housing market

   • Labor shortages and a decrease in homebuyers due to illegal immigration policies

   • Additional economic stimulus measures by the Trump administration ahead of the midterm elections

   • Falling interest rates and the implementation of housing-related measures (subsidies/tax incentives)

   • Revenue decline and soaring material prices due to the outbreak or expansion of conflicts

   • Soaring aluminum and copper prices driven by increased

   • Lower procurement costs and market stabilization due to the resolution of conflicts

   Japan businesses (LHT/LWT/Living)

   Categories	Risks	Opportunities
   Sales growth
   Cost increase	geopolitical risks leveraging of AI
   Government policies

   • Market stagnation due to interest rates, inflation, and labor shortages

   • Stagnation of the housing market (new construction) due to • Further expansion of the renovation market rising interest rates

   • Stagnation in the new housing market due to supply shortages of insulation and other materials

   • Rising procurement prices due to further JPY depreciation and • Decrease in import prices due to a shift toward a stronger JPY soaring commodity prices • Commodity prices stabilizing at low levels

   • Soaring procurement and material prices due to heightened • Driving cost reductions through digitalization, including the

   • Sluggish growth in the utilization rate of subsidies for • Stimulating demand through new economic stimulus insulation renovation measures

   
   
   

   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 business strategy

   • Focus: Minimize impact of soaring aluminum and power costs by reducing reliance on imported primary ingots

   Stabilized procurement and significantly lower energy consumption via scrap usage (~80% content)

   PremiAL : Circular Low-Carbon Aluminum

• Focus: Scale business and product range; establish local ecosystems

Stable procurement using domestic waste plastic and wood

Improving residential insulation through small-

scale renovations

• Focus: Capture energy-saving demand from rising utility costs and promote government subsidies

• Focus: Mitigate cost risks and develop new markets

Reduced material use vs. conventional tubs; contributing to water conservation

IMPORTANCE OF ENVIRONMENTALLY FRIENDLY PRODUCTS

UNDER THE CURRENT PROCUREMENT ENVIRONMENT

20

Approach to capital allocation

Policy remains unchanged

Dividend forecast for FYE2027

Forecast for the DPS is JPY90, unchanged from the previous year (25% of adj. EBITDA(1) forecasted for FYE2027)

Adj. EBITDA(1)

200.0

CAPEX Dividend Others

150.0

100.0

20.3 21.8

25.8 25.8

Breakdown of CAPEX

Growth investment

・New product development: 1/2

・Mass production: 1/2

IT investment

50.0

0.0

68.6

68.5

24.7

48.6

25.9

55.3 52.9 45.2

25.9

42.8

Maintenance investment

(JPY billion)

FYE20 FYE21 FYE22 FYE23 FYE24 FYE25

FYE26

Total Breakdown

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)

   PBR

   0.7x

2

Net profit(1) Core earnings

21.2%

2.5%

1

Core earnings

Revenue

As of March 31, 2026

Trends in Key Indicators

Net profit margin

Financial leverage

Revenue

Total assets

3

Total assets Equity (2)

2.8 X

4

2.8%

2.5%

2.1%

1.6%

Core earnings margin

ROE (1)

(%) 10

5

1.3%

1.8%

0

-2.2%

0.3%

-5

-10

FYE2024 FYE2025 FYE2026 FYE2027

ROIC (2)

(%)

8

6

4

2.0%

2

0.9%

1.7%

1.5%

0

FYE2024 FYE2025 FYE2026 FYE2027

(trn) 1.6

1.5

1.4

1.3

1.2

1.6

1.51

1.50

1.48

(JPY)

Revenue

Net debt/EBITDA

(times)

6

5.3x

5

4.7x

4.4x

4.3x

4

3

2

FYE2024 FYE2025 FYE2026 FYE2027

Equity ratio (3)

(%)

40

35.3%

35%

35

34.1%

33.7%

30

25

20

FYE2024 FYE2025 FYE2026 FYE2027

Japan demand

Advanced window renovation project subsidy utilization

FX rate

Raw material prices

Interest rates

1. Company estimate as of February 2026

2. Company forecast

3. Figures adjusted for the impact of the "Article 4 Special Provisions"

4. Information from the advanced window renovation 2025 website material https://x.gd/pmuk4 (Japanese only)

5. Pre-audit figures

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

JPY billion

100

80

60

40

20

0

83.2 83.1 81.4

70.5

63.6 60.9

25.3 25.1 26.6

CAPEX Depreciation R&D

FYE2025 FYE2026 FYE2027Fcst.

Breakdown of CAPEX

Breakdown of Depreciation

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)

   • Living Business (Living)

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

• Japan: Revenue increased YoY driven by strong renovation

  sales

• Int'l(2): Overall revenue was flat YoY in local currency terms and JPY terms mainly due to continued soft demand in the US and China, and the impact of the previous year's U.S. bathing business divestment offsetting revenue increases in Europe and IMEA

• Int'l revenue distribution ratio: 60.7%, down by 0.5pp YoY

  Core earnings

• Japan: CE increased YoY, driven by higher renovation

  sales, the impact of price optimizations

• Int'l(2): CE increased YoY due to profitable growth in Europe and IMEA, as well as a favorable product mix from strong sales of color products

• Int'l CE distribution ratio: 48.0%, up by 2.9pp YoY

  1. FYE2025 results include the US bathing business, which was transferred to the third-party in March 2025

  2. YoY vs Results excluding forex impact: Revenue -JPY15.1 billion, -3%, Core earnings +JPY3.7 billion, +22%

WATER TECHNOLOGY

27

FYE2027 Forecast Revenue

• Ongoing challenges in the real estate sector continue, suppressing a recovery in consumer demand

• GROHE brand achieved double-digit sales growth

• Continued disciplined cost management in order to align the organization with current market situation to protect profitability

• APAC revenue held steady vs. PY; growth in Vietnam and Indonesia was offset by declines in Thailand and the Philippines

• Profitability improved due to a favorable product and brand mix

• Revenue across all Middle East markets increased, driven by continued strong demand, in Saudi Arabia and other GCC countries alongside YoY gains in India and Turkey

• Profitability primarily driven by a favorable product mix

• Revenue grew, driven by higher sales volumes in key markets such as Germany, in addition to Eastern Europe

• Sales of faucets and flushing systems remained strong; improved product mix drove profitability

• While retail sales recovered, overall revenue declined due to continued market softness

• Additional structural reforms was implemented in 4Q and have led to profitability improvements and are targeted to shift the product and sales channel mix

1. Statutory basis currency: FYE2026 results 1USD=JPY150.97, 1EUR=JPY174.54 Management basis currency: FYE2026 1USD=JPY155.0, 1EUR=JPY161.2

2. With the dissolution of US bathing business, we have excluded its sales from FYE2025 results. Including its sales from FYE2025, sales YoY would be -13%

   INTERNATIONAL WATER TECHNOLOGY REVENUE BY REGION

   28

   
   
   

   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

   • Revenue slightly declined YoY as strong renovation sales offset the slight decline in sales for new housing

     Core earnings

   • CE increased YoY, driven by strong remodeling sales, price optimization, and inventory valuation gains. This offset the decline in new housing sales and cost associated with the ceramic siding business in Q2

   • Improved profitability in the building business

     1. FYE2026 Full-year results (Reference)

        LHT excl. building business Revenue JPY427.8 billion, CE JPY17.0 billion, CE margin 4.0% Building business Revenue JPY97.8 billion, CE JPY9.7 billion, CE margin 9.9%

        Strong renovation sales led to increased revenue and core earnings

        
        
        

        Revenue

        • Revenue increased YoY, driven by strong growth in renovation

          Core earnings

        • Core earnings increased YoY, driven by strong renovation sales that offset remained slowdown from an unfavorable product mix. Additionally, effective price optimization mitigated the impact of rising raw material and component costs

Kitchen Richelle Vanities Lumisis Wooden interior materials Lasissa

APPENDIX: FINANCIAL DATA

31

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 %

（Reference）**Sale of Faucets included in "Sanitaryware"

1. The internal product categorization for sales of sanitaryware and vanities has changed from Q1 FYE2025. For the percentage increase/ decrease in

   FYE2025, please refer to the past Financial Results for the Fiscal Year Ended March 31, 2025

2. Please refer to p.34 for the revenue of water-related products in international business

REVENUE BY PRODUCT AND SERVICE

32

Renovation sales ratio increased by 1.9pp. Window subsidy gap weighed on LHT, but water-related demand remains firm

Renovation sales ratio by business

Inner window In-plus

segment (YoY)

FYE2025 FYE2026

Increase

/decrease

Japan Total

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

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.27, 29-32,74 of our INTEGRATED REPORT 2025, for progress of "Grow Global Water Business" in the LIXIL Playbook

https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym41/181197/00.pdf#page=28

GROWTH IN INTERNATIONAL WATER TECHNOLOGY BUSINESS

34

Japan

(Renovation +6%)

+2%

(Others

-3%)

International 0%

Revenue

JPY billion

YoY

+6.0 (+0.4%)

1,504.7

0 FYE2025

Japan -1%

(Renovation +5%)

(Others -3%)

International +7%

LWT LHT

Material price -11.1

LWT -2.0

Japan +1%

(Renovation +6%)

(Others -3%)

Living

Consolidation adjustment/ other

1,510.7

FYE2026

Core earnings

JPY billion

LWT -1.0

LHT -1.2

Living -0.5

LWT +8.2

LHT +9.5

Living +2.0

LHT -6.9

Living -2.2

Cost reduction +3.1

LWT -0.1

LHT +1.8

Living +1.4

Activity costs and other costs

LWT -1.6

LHT -2.7

Living -0.1

Change +7.2 (+22.9%)

31.3

CE

Margin

2.1%

LWT Intl. +5.2

LHT Intl. +0.1

(Reference) GROHE +7.6

ASB -1.6

Others -0.8

38.5

CE

Margin 2.5%

FYE2025

Sales in Japan Mix/pricing Cost

SG&A

International Consolidation business adjustment/

FYE2026

Japan +4.6(+9%)

Int'l +5.3(+30%)

others

Revenue

JPY billion

YoY

+8.0(+2.2%)

Japan +2%

(Renovation +6%)

(Others -3%)

International +6%

364.2 372.7

0 Q4 FYE2025

Japan -2%

(Renovation -3%)

(Others -1%)

International +16%

LWT LHT

Material price -2.8

LWT -0.2

LHT -1.8

Living -0.8

Cost reduction +0.4

LWT -0.1

Japan +1%

(Renovation +6%)

(Others -3%)

Living

Activity costs and other costs

LWT -0.5

Consolidation adjustment/ other

Q4 FYE2026

Core earnings

JPY billion LWT +0.1 LHT -1.4

Living -0.5

0.3

CE

Margin 0.1%

LHT 0

Living +0.4

LHT +1.0

Living +0.2

LWT Intl. +1.5

LHT Intl. +0.2

(Reference)

GROHE +0.5

ASB +1.3

Others -0.1

+1.7(+646.8%)

2.0

CE

Margin 0.5%

Q4 FYE2025

Sales in Japan

Mix/pricing Cost

SG&A

International business

Consolidation adjustment/ others

Q4 FYE2026

Japan +1.2(+21%) Int'l +1.7(+33%)

(1)

(2)

(3)

• Other income includes:

1. Gains on disposal of property, plant and equipment and one-time profit recognition due to an equity-method affiliate conversion of an investment

   • Other expenses include:

2. Impairment losses on the IT system and Impairment loss at overseas plants

3. Costs from the withdrawal of LHT's ceramic siding business and the reorganization of European bases

   • Losses on exchange differences: due to recent currency fluctuations

FYE2026 OTHER INCOME AND EXPENSES, FINANCE

INCOME AND COSTS

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

2. Please refer to "Consolidated Financial Statements under IFRSs for the Year Ended March 31, 2025" disclosed on Apr. 30, 2025, for the FYE2025 results under the new reporting segments

RESULTS AND FORECASTS BY SEGMENT

38

FYE2026 Full-year

(1) Please refer to p42-48 of the FYE2025 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_ym35/183023/00.pdf#page=54

PERFORMANCE OF MAJOR INTERNATIONAL SUBSIDIARIES

39

ri