Lixil Corporation TSE:5938

LIXIL : H1 Financial Results for the Fiscal Year Ending March 31, 2026 (From April 1, 2025 to September 30, 2025)

Published

Source: MarketScreener

H1 Financial Results for the Fiscal Year Ending March 31, 2026 [ IFRS ]

(From April 1, 2025 to September 30, 2025)



TSE Code: 5938

LIXIL Corporation

October 31, 2025

Copyright © LIXIL Corporation. All rights reserved.



Summary of results for H1 FYE2026

Revenue decreased while core earnings and EBITDA increased year-on-year

Japan

International

Others

  • 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 "Article 4 Special Provision". Renovation sales of water-related products remained solid

  • LHT's core earnings remained flat due to additional costs associated with the ceramic siding business. Renovation sales are trending upward from September onwards, driven by promotional efforts

  • For the LWT international business, profits substantially improved, despite a decrease in revenue YoY

  • Strong performance continued in Europe, the Middle East and India. Housing markets remain sluggish in the Americas and China

  • Tax expenses decreased due to a favorable change in the corporate tax rate at the consolidated subsidiary (LIXIL Europe). Full-year earnings forecast remains unchanged (details will be reassessed Q3 onwards, considering other factors)

  • Full-year dividend forecast remains unchanged. Resolved interim dividend of JPY45 / share

    Business environment and outlook for FYE2026: Japan Business

    Despite challenges such as low new housing starts, renovation sales is driving strong performance

    FYE2026

    FYE2025

    0.0

    (JPY billion)

    24.122.7

    Sales growth of 6%

    22.221.8

    15.0

    Living's Renovation Sales

    45.0

    30.0

    FYE2026

    FYE2025

    33.333.0

    Sales growth of 7%

    0.0

    (JPY billion)

    30.032.0

    30.0

    15.0

    LWT's Renovation Sales

    45.0

    LWT LHT Living

    • Renovation sales are expected to remain strong, while the demand surge related to new housing has subsided

    • Showroom visitor numbers saw an upward trend in August and September

    • Continued impact from the decline in new housing starts

    • Running a promotion for products eligible for the window renovation subsidy, with sales expected to increase from Q3 onwards

      LHT's Renovation Sales

    • Sales for water-related renovations are expected to remain strong, while the demand surge related to new housing has subsided

    • Profitability declined slightly due to an unfavorable product mix in Q2. Focusing on promoting high-end product sales to improve profitability

      Q1 Q2

      45.0

      30.0

      15.0

      0.0

      (JPY billion)

      Q1 Q2 40.8

      Sales growth of 3%

42.4

40.3

40.0

Q1 Q2

FYE2025 FYE2026

Business environment and outlook for FYE2026: LWT International

LWT International

  • Despite the global trend of interest rate cuts, delays in policy decisions to promote housing construction are being seen due to government instability in Europe which is our key market

  • Profitability is recovering in Europe, driven by the positive effects of structural reforms and strong sales of color products

  • Demand weakness continues in the US and China

  • Demand remains robust in the Middle East and India

Americas

  • Entering an interest rate cut phase; mortgage rates are declining somewhat compared to peak levels

  • The housing market recovery is slowed due to tariffs and immigration policy, with difficult circumstances likely to last through this fiscal year

  • Positive impacts from price optimization and structural reforms are expected to materialize gradually from FYE2026 (and substantially from FYE2027 onwards)

8.0

6.0

4.0

Core earnings
CE%

4.3%

4.2%

4.5%



4.9%



4.7%



6.0%

5.0%

5.9

5.3

5.1

5.4

5.5

0.3

0.3

4.0%

3.0%

2.0%

Interest Rates and Housing Starts Trends(1)

10.0%

8.0%

6.0%

4.0%

200

150

100

2.0



0.0

FYE25

FYE25 FYE25 FYE25

FYE26 FYE26

1.0%

0.0%

2.0%

0.0%

New-Housing-Starts

30-year fixed-rate mortgage

50

4/22

7/22

10/22

1/23

4/23

7/23

10/23

1/24

4/24

7/24

10/24

1/25

4/25

7/25

0

(1,000

(1) Freddie Mac (prepared by LIXIL)

（JPY billion）Q1

Q2 Q3 Q4

Q1 Q2

units)

Business environment and outlook for FYE2026: LWT International



Europe, IMEA (India, Middle East & Africa)

  • A full market recovery is expected next year onwards; sales improved by 5% YoY (13% compared to two years ago), due to strong sales of color products and sales initiatives

  • Profitability in Europe stabilized, driven by fixed cost reductions from structural reforms

  • Sales in the IMEA grew by 16%, driven by robust project momentum in the Middle East, which in turn contributed significantly to profit

(1) National Bureau of Statistics of China (prepared by LIXIL). Jan-Feb 2025: Adjusted for Lunar New Year impact

The sales composition ratio of color products to total faucet sales

Asia Pacific, China



  • Vietnam shows signs of recovery following a prolonged real estate slump, with sales improving by 10% YoY

  • Thailand remains sluggish due to weak economic conditions and intense competition

  • While China's sanitary ware market remains challenging due to weak economic conditions and intense competition, GROHE product sales were a bright spot, improving by 25%

    China: New Residential Construction Area YoY Change Trend (1)

    32% revenue growth (H1 YoY)

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 and -4% in international markets (-3% excluding foreign exchange impact)

  • Core earnings: JPY16.9 billion, up JPY6.4 billion year-on-year

    • Q2 (3 months) YoY: +JPY0.1 billion in LWT, -JPY1.5 billion in LHT, -JPY0.1 billion in Living, and -JPY0.6 billion for consolidation adjustment/other factors

    • H1 (6 months) YoY: +JPY6.5 billion in LWT, -JPY0.1 billion in LHT, +JPY0.7 billion in Living, and -JPY0.8 billion for consolidation adjustment/other factors

  • EBITDA(1): JPY57.8 billion, up JPY5.5 billion year-on-year

  • Profit(2): JPY3.4 billion, up JPY7.3 billion year-on-year

    • Q2 (3 months) YoY: Increased by JPY2.3 billion due to a decrease in income tax expenses, despite an increase in other expenses

      1. EBITDA=Core earnings + Depreciation + Amortization

      2. Profit = Profit attributable to owners of the parent

    • H1 (6 months) YoY: Increased by JPY7.3 billion due to an increase in core earnings and a decrease in income tax expenses, despite increase in other expenses and finance costs



(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 Japan. SG&A ratio increased by 0.8pp

    1. Equivalent to "Operating profit" of JGAAP

    2. Profit attributable to owners of the parent

    (3) EBITDA=Core earnings + Depreciation + Amortization

  • CE margin: Increased by 0.9pp YoY

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 achieved both revenue and core earnings increases, supported by strong renovation sales


Forex impact(1)

  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

Q2 3months: Revenue +JPY2.9 billion, CE +JPY0.1 billion H1 6months: Revenue -JPY2.9 billion, CE +JPY0.1 billion

Business results for H1 under previous reporting segments

(2)

(2)



Forex impact(1)

  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

Q2 3months: Revenue +JPY2.9 billion, CE +JPY0.1 billion H1 6months: Revenue -JPY2.9 billion, CE +JPY0.1 billion

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

Operating cash flow declined due to an increase in inventories. Free Cash Flow (FCF) remained positive


(1) (1)

(2)

(3)

(2)

(3)

(4)

(4)

  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

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 interior materials business from the "Housing Technology Business". These businesses share many similarities in terms of products, manufacturing processes, and business models.

  • In light of recent changes in the business environment and the increasing importance of India and the Middle East, which are experiencing particularly significant growth, the disclosure regions were changed to the following five.

    • Americas

    • Europe

    • IMEA (India, Middle East & Africa)

    • Asia Pacific

    • China





WATER TECHNOLOGY 12

Japan revenue and core earnings increased driven by strong renovation

(1)



sales. International core earnings rose as strong performance in Europe and the Middle East outweighed lower revenues in the Americas and China

Revenue

  • Japan: Revenue increased YoY on strong renovation sales

  • Int'l(2): Despite growth in Europe and the Middle East, revenue decreased YoY in both local currency and JPY terms mainly due to lower sales in the US and China attributed

    to continued sluggish demand, and the transfer of the bathing business in the US in the last fiscal year

    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 -JPY7.1 billion, -3%, Core earnings +JPY4.6 billion, +73%

  • Int'l revenue distribution ratio: 60.8%, down by 1.9pp YoY

    Core earnings

  • Japan: CE increased YoY driven by the impact of price optimizations and higher renovation sales

  • Int'l(2): CE increased YoY due to a strong performance in Europe and the Middle East, along with operational improvements

  • Int'l CE distribution ratio: 53.1%, up by 8.4pp YoY

    Revenue by region (1)

    (Management basis)

    JPY billion

    H1 FYE2026

    Results

    YoY

    local currency basis

    Americas Europe

    IMEA (India, Middle East, Africa) Asia Pacific

    China Adjustments

    76.8

    86.7

    37.1

    20.4

    20.7

    -2.9

    -5%(2

    +5%

    +16%

    +1%

    -7%

    -

    Water Technology International Business Total (Statutory basis)(1)

    238.9

    (-4% YoY)

    FYE2026

    Forecast

    )

    YoY

    INTERNATIONAL WATER TECHNOLOGY REVENUE BY REGION

    13



    local currency basis

    +10%(3)

    +5%

    +12%

    +11%

    +7%

    JPY Local currency

    -

    511.0

    (+4% YoY)

    • Revenue declined due to a lack of recovery in the renovation market and the ERP system transition in Q1

      Americas Europe IMEA

      Asia Pacific China

      declined

      increased

      increased

      declined

      declined

      declined

      increased

      increased

      increased

      declined

    • Upon completion of the bathing business transfer, profitability improvement will be pursued by accelerating a shift in products and sales channel mix

    • Revenue grew, driven by higher sales volumes in key markets such as Germany, the Netherlands, and Italy

    • Sales of color faucets remained strong; gradual sales recovery in almost all product categories drove profitability

    • Revenue across all Middle East markets increased, driven by continued strong demand, particularly in Saudi Arabia and other GCC countries

    • Sales in India were flat YoY

    • Vietnam's revenue increased, supported by retail business recovery, partly attributed to the promotion initiatives

    • Thailand's revenue declined due to project delays caused by sluggish demand and the earthquake

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

      1. Statutory basis currency: H1 FYE2026 results 1USD=JPY146.57, 1EUR=JPY167.74 Management basis currency: FYE2026 1USD=JPY155.0, 1EUR=JPY161.2

      2. With the transfer of US bathing business, we have excluded its sales from FYE2025 results. Including its sales from FYE2025, sales YoY would be -14%

      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%

    • GROHE brand sales improved, while other brands continued to underperform due to intense competition

      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

      • Revenue remained flat YoY as strong renovation

sales offset the slight decline in sales for new housing

Core earnings

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

    (1) H1 FYE2026 Results (Reference)

    LHT excl. building business Revenue JPY213.0 billion, CE JPY8.3 billion, CE margin 3.9%

    Building business Revenue JPY46.1 billion, CE JPY3.9 billion, CE margin 8.5%

  • Improved profitability in the building business

    Strong renovation sales led to increased revenue and core earnings



    Revenue

    • Revenue increased YoY, driven by strong growth in renovation sales and continued robust new housing sales for kitchen products

      Core earnings

    • Core earnings increased YoY, driven by strong renovation sales that offset a Q2 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

16

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 %

Segments

Major products

Full-year H1 FYE2025 FYE2025

Results Results

H1 FYE2026

Results

YoY

LWT

Sanitaryware** (1)

115.2

53.4

56.3

+5.4%

Bathroom Units

92.4

44.7

46.1

+3.2%

Tiles

30.2

14.5

14.3

-1.5%

LHT

Housing sashes and others

187.9

94.4

94.4

+0.1%

Exterior

94.5

46.9

48.1

+2.5%

LHT others

38.7

19.1

19.2

+0.4%

Building sashes

101.0

48.8

46.1

-5.5%

Housing and Services business

19.0

9.4

8.6

-9.0%

Living

Kitchens

100.4

47.6

49.5

+4.1%

Vanities (1)

36.6

17.3

17.7

+2.4%

Wooden interior materials

57.2

27.5

27.5

+0.2%

International (2)

519.4

261.8

251.8

-3.8%

Others/consolidation & Adj.

112.2

54.4

56.2

-

Total

1,504.7

739.8

735.9

-0.5%

Quarterly YoY

FYE2025

FYE2026

1Q

2Q

3Q

4Q

1Q

2Q

+5.7

+8.7

+10.9

+6.9

+8.6

+2.5

+4.2

+0.6

+4.5

+1.6

+6.3

-0.1

-0.9

-6.2

-3.1

-3.0

-2.6

-0.5

+1.3

-5.4

+5.6

+4.5

+0.6

-0.5

-0.5

-3.4

-2.1

+5.5

+3.7

+1.3

-12.1

-13.3

-8.5

+1.2

+1.4

-0.6

+2.0

+8.0

-6.1

+1.9

-9.3

-2.2

-26.7

-25.0

-1.7

-8.0

-6.8

-11.1

+2.3

+1.0

+2.5

+4.7

+6.8

+1.4

-5.8

-6.4

-4.7

-7.0

+3.4

+1.4

-3.7

-4.9

-2.2

+0.7

+3.0

-2.4

+9.9

+1.2

+5.7

-2.5

-8.5

+1.0

+3.0

-0.8

+2.6

+1.1

-1.4

+0.3

  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.19 for the revenue of water-related products in international business

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

LWT

Faucets 28.0 12.8

14.0

+9.8%

-0.3 +15.3 +10.7 +8.5

+16.0

+4.3

H1 (6 months)

Q2 (3 months)

JPY billion

FYE2025

Results(1)

FYE2026

Results

Increase

/decrease

YoY

FYE2026

Results

YoY

Sales of renovation-related products

184.7

193.6

+8.9

+4.8%

96.9

+3.3%

LWT-J

+7%

+3%

LHT

+3%

+5%

Excl. building

+4%

+5%

Building business

-6%

+6%

Living

+6%

+4%

Renovation sales ratio

46%

47%

+1.6pp

47%

+1.4pp

Renovation sales ratio increased by 1.6pp. All segments saw an increase due to continued strong demand




Renovation sales ratio by business

Inner window In-plus

segment (YoY)

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

H1 FYE2025 H1 FYE2026

Increase



/decrease

LWT

55%

57%

+1.7pp

LHT

41%

42%

+1.4pp

Living

47%

49%

+1.7pp

Japan

46%

47%

+1.6pp

(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

19



Sales distribution ratio

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. Total

Americas

Europe

IMEA

APAC

China

Intl. Total

Americas

Europe

IMEA

APAC

China

Bath faucets and showers

42%

13%

60%

61%

34%

49%

42%

13%

59%

60%

34%

49%

Toilets

44%

66%

24%

35%

62%

39%

44%

67%

25%

36%

63%

38%

Kitchen faucets and water systems

8%

5%

15%

4%

3%

5%

8%

6%

15%

4%

3%

6%

Bathing and showering systems

4%

13%

0%

0%

1%

1%

4%

12%

0%

0%

1%

1%

All others

2%

3%

1%

0%

1%

6%

2%

3%

1%

0%

0%

6%

Total

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Sales growth

Bath faucets and showers

+3%

-12%

+2%

+18%

+5%

-2%

+4%

-14%

+3%

+19%

+1%

+1%

Toilets

+2%

+1%

+11%

+17%

-0%

-16%

+4%

+3%

+13%

+15%

-2%

-12%

Kitchen faucets and water systems

+4%

-9%

+7%

+12%

+48%

-3%

+8%

-3%

+11%

+23%

+33%

+3%

Bathing and showering systems

-24%

-25%

-16%

-21%

+8%

+46%

-24%

-25%

-8%

+10%

+9%

+53%



Revenue

JPY billion

YoY

-3.8 (-0.5%)

Change

Japan +4%

(Renovation +7%)

(Others +1%)

International -4%

+3%

-1%

-1%

739.8 735.9

Japan

-1%

Japan

+3%

(Renovation

+3%)

(Renovation

+6%)

(Others

-3%)

(Others

-1%)

0

Core earnings

JPY billion

H1 FYE2025

Consolidation adjustment/

LWT -0.4

LHT -0.9

Living +0.6

International -1%

LWT

LHT

Living

Material price -5.3

LWT -1.3

LHT -3.4

Living -0.6

Cost reduction +2.1

LWT -0.1

LHT +1.9

Living +0.3

+6.4 (+60.4%)

Change

other

H1 FYE2026

LWT +4.6

LHT +5.2

Living +0.7

16.9

10.5

CE

Margin 1.4%

Activity costs and other costs

LWT -1.0

LHT -2.6

Living -0.2

LWT Intl. +4.6

LHT Intl. -0.3

(Reference) GROHE +6.3

ASB -2.2

Others +0.3

CE

Margin 2.3%

H1 FYE2025

Sales in Japan Mix/pricing Cost

SG&A

International Consolidation business adjustment/

H1 FYE2026

Japan +2.8(+13%)

Int'l +4.4(+63%)

others

Full-year forecast

+3.5

+20.4

-9.4

-7.7

+3.7

-6.8

(progress rate)

(-)

(51%)

(34%)

(49%)

(119%)

(12%)

Japan

(Renovation +3%)

+2%

(Others

0%)

International +1%



Revenue

JPY billion

YoY

+1.3(+0.4%)

Change

0%

-1%

+1%

Japan

-1%

Japan

0%

(Renovation

+5%)

(Renovation

+4%)

(Others

-5%)

(Others

-3%)

370.0 371.3

0

Core earnings

JPY billion

Q2 FYE2025

LWT -0.9

LHT -0.5

Living +0.4

International +2%

LWT LHT

Material price -2.0

LWT -0.4

LHT -1.4

LWT +2.3

LHT +2.2

Living +0.5

Living -0.2

Cost reduction 0

LWT +0.5

LHT +0.1

Living -0.6

Living

Consolidation adjustment/ other

-2.0(-20.5%)

Change

LWT Intl. -0.4

LHT Intl. -0.2

(Reference) GROHE +1.2

ASB -1.4

Others -0.4

Q2 FYE2026

9.9

CE

Margin 2.7%

Q2 FYE2025

Sales in Japan Mix/pricing Cost

Activity costs and other costs

LWT -1.0

LHT -1.7

Living -0.2

SG&A

International business

Consolidation adjustment/

7.8

CE

Margin 2.1%

Q2 FYE2026

Japan -0.8(-7%)

Int'l -0.6(-10%)

others

(1)

(2)

(3)

  • Other income includes:

H1 FYE2026 OTHER INCOME AND EXPENSES, FINANCE INCOME AND COSTS

22





  1. One-time profit recognition in Q1 due to an equity-method affiliate conversion of an investment

    • Other expenses include:

  2. Impairment losses on the IT system

  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

RESULTS AND FORECASTS BY SEGMENT

23





(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

(1)

ASB

(ASD Holdings)

(USD million)

FYE2025

FYE2026

H1 YoY

Q1

Q2

Q3

Q4

Full-year

Q1

Q2

H1

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 (GROHE)

(EUR million)

FYE2025

FYE2026

H1 YoY

Q1

Q2

Q3

Q4

Full-year

Q1

Q2

H1

Revenue

390

393

412

406

1,601

417

425

842

+7%

Core earnings

20

39

44

47

150

51

44

96

+62%

Core earnings margin

5%

10%

11%

12%

9%

12%

10%

11%

+3.8pp

ASB (ASD Holdings)

(USD million)

FYE2025

Balance

H1 FYE2026

Balance

Goodwill(1)

225

225

Intangible assets(1)

221

218

Grohe Group (GROHE)

(EUR million)

FYE2025

Balance

H1 FYE2026

Balance

Goodwill(1)

1,199

1,182

Intangible assets(1)

1,382

1,377

PERFORMANCE OF MAJOR INTERNATIONAL SUBSIDIARIES

24



H1 FYE2026

(1) Please refer to p42-48 of the FYE2025 Consolidated Financial Statements "14. Goodwill and Other Intangible Assets" for assessment of goodwill and intangible assetshttps://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym35/183023/00.pdf#page=54

FX rates Average Current USD JPY146.57 JPY148.88 EUR JPY167.74 JPY174.47

APPENDIX: BUSINESS AND ESG-RELATED TOPICS

25

Make Better Homes a Reality Through Innovation

Launched the premium model of bathtope, a system bath with removable bathtub(1)



  • Launched the premium G-type model of bathtope, a bathroom space with a foldable fabric bathtub that debuted in Japan last year, representing "a new era of freedom in bathing"

  • The G-type features a sliding door to create a seamless connection between the bathroom and wash area. Carefully selected high-end fixtures create an open and refined bathroom space

  • Providing value-added products and services for diverse lifestyles, making better homes a reality

    Contribute to a Low-Carbon Society and Circular Economy

    Standardized PremiAL, a recycled low-carbon aluminum, across its product lines with no extra cost (2)



  • Starting this October, LIXIL is progressively rolling out PremiAL across its product line, offering a recycled aluminum that reduces CO2 emissions by approximately 50% compared to aluminum manufactured using new ingots. Featuring in-house manufactured aluminum extrusions, it comes at no extra cost

  • Contributing to a decarbonized society, LIXIL further expands its positive impact by balancing environmental and economic value

    (1) News release https://newsroom.lixil.com/ja/2025072501 (JP only)

    (2) News releasehttps://newsroom.lixil.com/2025091701

  • PremiAL R100, a 100% recycled low-carbon aluminum, has been selected as a finalist among over 750 applications at the Reuters Global Sustainability Awards 2025

    Meeting Diverse Lifestyles and Needs for Better Homes

    New Vanity Space Products Launched "Changing the Norms of the Vanity Space" (1)



    • Custom Vanity: Offers functionality (a large basin, easy clean) and design versatility (wide range of finishes). All-in-one "set proposal" streamlines professional user workload

    • Laundry Plus: Modular items allow personalized laundry spaces to match one's layout and preferences, optimizing workflow and household efficiency

      Global Sanitation & Hygiene

      Participation in TICAD 9 Partner Events



  • CEO Seto spoke at an event spotlighting investments to address health issues that Africa faces, co-hosted by the Triple I for Global Health, the Cabinet Secretariat of Japan and UNICEF, where he discussed the importance of public-private partnerships to improve the sanitation and hygiene environment

  • In addition to the Triple I event above, during a panel discussion on the "Make a Splash!" (2), a strategic partnership between LIXIL and UNICEF, LIXIL presented key lessons* for creating a sustainable "sanitation economy" to help achieve SDGs Target 6(3)

(1) News release https://newsroom.lixil.com/ja/2025011302 (JP only)

  1. Make a Splash!https://www.lixil.com/en/makeasplash/

  2. News releasehttps://newsroom.lixil.com/20250902_ticad9

*Building a supply chain for last-mile communities, power of public-private promotion, reducing market fragmentation, smart public finance and active engagement in policy processes

1,200

1,100

1,000

900

800

700

600

500

400

Trend of new housing starts in Japan

Annualized seasonally adjusted data

2023 2024 2025



JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Aluminum price trend

(Unit: USD)

Copper price trend

Source︓LME 3 months

Jul 2023 - Mar 2024

Apr 2024 - Mar 2025

Apr 2025- Oct 2025



(From Jul 3, 2023, to Oct 14, 2025)

Source︓LME 3 months



(From Jul 3, 2023, to Oct 14, 2025)

(Unit: thousand)

(Unit: USD)

Source︓Statistics of new housing starts, Ministry of Land, Infrastructure, Transport and Tourism (Jan 2023-Aug 2025)

（year-on-year）

New housing construction trends in Japan

  • Jan-Jun 2025: -7.5%

  • Jan-Aug 2025: -8.1%

Jan-Aug 2025

(8 months)

Apr-Aug 2025

(5 months)

Units

YoY

Units

YoY

Total

new housing starts

483,584

-8.1%

277,065

-19.4%

Owner-

occupied(1)

129,534

-8.5%

76,782

-18.1%

Rental homes

214,955

-5.9%

122,118

-18.9%

Condos for sale

Detached houses for sale(2)

58,831

74,274

-16.5%

-7.1%

30,551

43,358

-32.1%

-13.7%

Detached

houses total (1)+(2)

203,808

-8.0%

120,140

-16.6%

Jul 2023 - Mar 2024

FYE2024

Actuals

FYE2025

Actuals

FYE2026

Assumptions

US dollar

Euro

JPY144.40

JPY156.80

JPY152.48

JPY163.62

JPY155.0

JPY161.2



Foreign exchange rates (Average rate)

Apr 2024 - Mar 2025

Apr 2025- Oct 2025

FYE2024

Actuals

FYE2025

Actuals

FYE2026

Assumptions

Aluminum

(Purchasing price)

Copper alloy

335,000

1,009,000

398,000

1,170,000

448,000

1,262,000



Results and assumptions (price)

(JPY per tonne)

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

29





JGAAP

Net sales

Cost of sales Gross profit SG&A

Operating profit

Non-operating income/expenses Ordinary income

Extraordinary income/loss

Profit before income taxes

Net profit attributable to Non-controlling interests Owners of the parent

IFRS (LIXIL Financial Reporting)

Continuing operations Revenue

Cost of sales Gross profit SG&A

Core earnings (CE)

Other income/expenses Operating profit Finance income/costs

Share of profit (loss) of investments accounted for using equity method

Profit before tax

Profit from continuing operations

Discontinued operations

Profit for discontinued operations Profit attributable to

Owners of the parent

Non-controlling interests

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