Rinnai Corporation TSE:5947

Rinnai : Financial Results (1,185KB)

Published

Source: MarketScreener



Financial Results for First Two Quarters (Interim) of Fiscal 2026, ending March 31, 2026

November 6, 2025



Progress on Recall of Bathroom Heater/Dryers
  • The recall of bathroom heater/dryers announced in April 2025 is ongoing

  • We are identifying affected products and conducting inspections (to improve the inspection completion rate), aiming to bring employee responses to an early conclusion

    • Overview of bathroom heater/dryer recall (Announced April 15, 2025)

  • Affected products: Bathroom heater/dryers

  • Number of affected units: 372,398 *Units still in market: Unknown

    (Manufactured between August 2003 and August 2020)

  • Inspection details: Installation of a control board to prevent ignition

  • Work time per unit: Approx. 1 hour

    受付件数と完了件数の推移

    受付件数 完 了件数

  • Implementation period: From May 2025

*Allowance for product guarantee: ¥2,540 million

(recorded in fiscal year to March 2025)

Requests received

and inspections completed

  • Number of requests received

  • Number of inspections completed

完了 率

Wall-mounted

remote control

Installed image

25'5

25'6

25'7

25'8

25'9

July 2025

June 2025

Installed on the bathroom ceiling

  • Progress status (September 30, 2025)

  • Number of requests received: 185,456

  • Number of inspections completed: 134,923 (completion rate: 72.8%)

  • Personnel structure: Service shop inspectors

Rinnai employees: Up to 350

Plan to improve inspection completion rate and reduce employee involvement by December 31, 2025

Completion rate

72.8%

57.2%

45.8%

8.7%

27.5%

May

2025

August September

2025 2025



  1. Results of First Two Quarters (Interim) of Fiscal 2026/ Fiscal 2026 Performance Forecasts

  2. Business Outlook

Fiscal 2026 (First Two Quarters/ Interim): Consolidated Performance Overview

- Increase in sales of high-value-added products despite continued high inflation and interest rates in major countries

Net sales: ¥216.4 billion (up 2.0% year on year)

Ongoing increase in sales of high-value-added products driven by growing energy-saving awareness

Record-high level

Record-high level

Operating income: ¥22.7 billion (up 8.2% year on year, Operating income to net sales ratio: 10.5%)

Higher operating income due to increase in revenue despite surging prices of raw materials, energy, and other items



Record-high level

Ordinary income: ¥25.2 billion (up 13.2% year on year, Ordinary income to net sales ratio: 11.7%)

Increase in ordinary income thanks to higher operating income and foreign exchange gain



Record-high level

Net income attributable to owners of the parent company: ¥15.9 billion

(up 30.0% year on year, Net income to net sales ratio: 7.4%)





Fiscal 2026 (First Two Quarters/ Interim): Consolidated Financial Results

  • Continued growth in sales of high-value-added products backed by rising energy-saving awareness each year, keeping overall sales on an upward trend

  • Continued profit improvement since supply-demand imbalance bottomed out in 2023

Net Sales

Operating Income

Attributable to owners of the parent company

Net Income

[Billions of Yen] [Billions of Yen] [Billions of Yen]

2,500

2,000

1,500

1,000

500

0

250

200

150

100

50

0

250

200

150

100

50

0

250

200

150

100

50

0

FY2022 FY2023 FY2024 FY2025 FY2026

2Q 2Q 2Q 2Q 2Q

Operating income to net sales ratio

11.2%

9.8%

9.9%

10.5%

5.3%

Net income to Net sales ratio

7.4% 6.9%

7.4%

4.1%

5.8%

25 25

20 20

15 15

10 10

'23

'25

5 5

0

'21

'22

'23

'24

'25

'21

FY2022

2Q

FY2023

'22

2Q

FY2024 2Q

'24

FY2025 2Q

FY2026

'25

2Q

0

'21

FY2022 2Q

'22

FY2023 2Q

'23

FY2024 2Q

'24

FY2025 2Q

FY2026 2Q

Fiscal 2026 (First Two Quarters/ Interim): Net Sales by Product

[Billions of yen]

Fiscal 2025 2Q

Fiscal 2026 2Q

YOY

Change

Amount

% of total

Amount

% of total

Amount

(%)

Water heaters

126.74

59.8%

128.24

59.3%

+1.49

+1.2%

Kitchen appliances

46.26

21.8%

44.68

20.6%

-1.57

-3.4%

Air conditioning appliances

9.83

4.6%

10.75

5.0%

+0.91

+9.3%

Commercial-use equipment

5.70

2.7%

5.12

2.4%

-0.58

-10.2%

Others

23.56

11.1%

27.60

12.8%

+4.03

+17.1%

Total

212.12

100.0%

216.41

100.0%

+4.29

+2.0%

Fiscal 2026 (First Two Quarters/ Interim): Consolidated Sales/Income Results

[Billions of yen]

Net Sales

YOY Change

Operating

Income

YOY Change

Operating Margin

YOY Change

Consolidated

216.41

+2.0%

22.72

+8.2%

10.5%

+0.6pt

[Billions of yen]

Net Sales

YOY Change

Operating Income

YOY Change

Operating Margin

YOY Change

Japan

93.65

+2.7%

10.75

+13.4%

11.5%

+1.1pt

United States

35.28

+9.7%

1.15

+28.7%

3.3%

+0.5pt

Australia

20.44

+26.1%

1.06

+46.8%

5.2%

+0.7pt

China

25.04

-18.7%

4.30

-13.6%

17.2%

+1.0pt

South Korea

16.60

-0.3%

0.79

+41.5%

4.8%

+1.4pt

Indonesia

9.06

+3.8%

1.94

-2.4%

21.4%

-1.4pt

Others

16.31

-0.4%

2.45

-5.3%

15.0%

-0.8pt

Adjustments

-

-

0.26

-

-

-

Fiscal 2026 (First Two Quarters/ Interim): Consolidated Operating Income Analysis

- Increase in operating income thanks to higher revenue and increased fixed costs in Japan despite partial materialization of tariff

impact in the United States

[Billions of Yen]

20.99

Effect of domestic revenue increase

+2.75

Effect of local revenue increase at overseas subsidiaries

+0.09

[-2.18]

Increased fixed costs in Japan

-1.66

Increased fixed costs overseas

-1.83

Effect of raw materials

prices

+0.65

Cost-cutting

efforts, etc.

+1.73

YOY change

+¥1.73

billion

22.72

[+1.77] [-0.05]

Fiscal 2025

Forex effect -0.47

The applicable rates are listed on [Reference data, page 7]

*Overseas local procurement

Fiscal 2026

* From April to September, 2025

Japan Fiscal 2026 (First Two Quarters/ Interim) Results

  • Segment companies

    Rinnai (non-consolidated basis), Domestic consolidated

    subsidiaries (manufacture and sales of products)



  • Net sales by product, Fiscal 2026 (2Q) results

    Commercial-use equipment 1.2%

    Others

  • Non-consolidated results of major company

    Rinnai (non-consolidated basis)

    • Recovery trend in demand for home renovations despite ongoing decline in new housing starts

    • Increase in sales owing to strong demand for key products and steady overall sales of water heaters

    • Higher income due to increase in sales backed by strong performance and cost controls

      Rinnai (non-consolidated basis), Fiscal 2026 (2Q) Results

      Gas clothes dryers



      Built-in hobs (stovetops)

      14.9%

      Kitchen appliances 27.8%

      Air-conditioning appliances 2.1%

      Water heaters 54.1%



      Progress on

      quarterly operating income

      5.18

      3.96

      1Q

      2Q

      • Net sales Operating income

      ─●─ Operating income sales ratio

      [Billions of Yen]

      [Billions of Yen]

      107.50

      113.08

      94.17

      7.6%

      8.1%

      4.3%

      4.06

      Fiscal 2024

      8.16

      9.15

      Fiscal 2025

      Fiscal 2026



      Hybrid water heaters

  • Segment results

    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    Net Sales

    91.18

    93.65

    +2.7%

    Operating Income

    9.48

    10.75

    +13.4%

    Operating income

    to net sales ratio

    10.4%

    11.5%

    +1.1pt

    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    [Sales Volume in Japan]

    YOY change

    Water heater with heating systems

    +7.6%

    Net Sales

    107.50

    113.08

    +5.2%

    Hybrid water heaters

    +13.1%

    Operating Income

    8.16

    9.15

    +12.1%

    Built-in hobs (stovetops)

    -1.1%

    Operating income to net sales ratio

    7.6%

    8.1%

    +0.5pt

    Gas clothes dryers

    +5.4%

    Japan Topics Received award for technologies that help improve quality of life

  • Received award in health and resilience field by utilizing both new and existing technologies

  • We will further acquire and deepen technologies and explore their practical application and commercialization

  • Received CEATEC Award 2025 (Innovation Category)

  • Received Minister of State for Disaster Management Award and Grand Prize at New Integrated Disaster Information System Ideathon 2025

    Use of in-bathtub ECG measurement module*

Identifies areas where water and gas services are suspended during disasters

Postal code registration

-Registers user's postal code in

the app (option)

-Identifies areas where the water heaters are installed



After disasters

Postal code 480-0142

Postal code 480-0147

Oguchi town-3

Postal code 480-0132

Water usage has drastically decreased in 1 and 2 areas.

Water outages in Oguchi area 1 and 2

Water usage drastically decreased

Water usage drastically decreased

Oguchi area-1

Oguchi area-2



*Device that enables non-contact measurement of weak electrical signals generated by

the bather's heart activity through the bathwater



Predicts physical and mental conditions (such as core body temperature, autonomic nervous activity, and circulatory function)

Supports recommendations for healthier lifestyles and preventive practices

Retrieves area-specific operating data on water heaters using registered postal codes

Uses narrowed-down water outage and gas service suspended areas to determine priority of recovery efforts

* From January to June, 2025

United States Fiscal 2026 (First Two Quarters/ Interim) Results

  • Segment company

    Rinnai America

  • Net sales by product, Fiscal 2026 (2Q) results

  • Non-consolidated results of major company

    Rinnai America

    • Continued weakness in consumer sentiment due to persistently high interest rates and ongoing

      inflation caused by impact of tariffs

    • Sales of new condensing water heaters (launched early 2024) have remained strong



      Commercial-use equipment 0.4%

      Air-conditioning appliances 4.0%

      Others 8.4%

      - Increase in income thanks to price revisions and improved product mix despite partial materialization



      of tariff impact

      Rinnai America, Fiscal 2026 (2Q) Results

      Non-Condensing water heaters

      Water heaters 87.3%

      Progress on

      quarterly operating income

      0.45

      0.61

      1Q

      2Q

      • Net sales Operating income

      ─●─ Operating income to net sales ratio [Billions of Yen]

      [Billions of Yen]

      32.15

      35.28

      25.82

      2.4%

      3.0%

      -12.6%

      -3.25

      0.77

      1.07

      Fiscal 2026

Fiscal 2025

Fiscal 2024



Condensing water heaters (High efficiency models)

[Billions of Yen]

Fiscal 2025

Fiscal 2026

YOY change

Net Sales

32.15

35.28

+9.7%

Operating Income

0.89

1.15

+28.7%

Operating income

to net sales ratio

2.8%

3.3%

+0.5pt

[Billions of Yen]

Fiscal 2025

Fiscal 2026

YOY change

[Sales Volume]

YOY change

Yen

Local currency

Tankless water

heaters

+3.7%

Net Sales

32.15

35.28

+9.7%

+12.2%

Operating Income

0.77

1.07

+38.0%

+41.0%

Condensing water heaters of total (High-efficiency

models)

+14.9%

Operating income to net sales ratio

2.4%

3.0%

+0.6pt

  • Segment results

    United States Topics Tariff Impact and Response Measures

- Additional tariff costs already passed on through price adjustments, thus maintaining competitiveness

Tariff

Price revision

1Q 2Q 3Q 4Q

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec.

Steel and

aluminum

(KD Parts, etc.)

25%

50%

Copper

(Heat exchangers, etc.)

50%

Reciprocal tariffs

(Finished products, etc.)

10%

15%



  • Status of tariff impact and price adjustments

    Current situation

    • Trade policy outlook remains uncertain

    • Tariffs passed through to prices in timely manner

  • Reaffirm importance of local production for local consumption

  • Promote increase in in-house production ratio at local factories

    • Increase local procurement ratio of parts

    • Enhance manufacturing capabilities with Japanese support

Direction

* From January to June, 2025

China Fiscal 2026 (First Two Quarters/ Interim) Results

Shanghai Rinnai, Guangzhou Rinnai, Rinnai Hong Kong

  • Segment company

  • Non-consolidated results of major company

    Shanghai Rinnai

    Note: PF is Shanghai Rinnai's main water heater model

  • Net sales by product, Fiscal 2026 (2Q) results

    • Consumer sentiment cooling further, with subsidy reductions occurring in some areas

    • Maintained certain level of price discipline despite aggressive discounting by competitors during

      e-commerce events

    • Despite income decreases, exceeded our forecasts thanks to cost control and increase in PF2.0

      Kitchen appliances 4.9%



      Built-in hob

      (stovetops)

      [Billions of Yen]

      Fiscal 2025

      Fiscal 2026

      YOY change

      Net Sales

      30.79

      25.04

      -18.7%

      Operating Income

      4.97

      4.30

      -13.6%

      Operating income to net sales ratio

      16.2%

      17.2%

      +1.0pt

  • Segment results

    Others 3.5%

    Water heaters 91.6%



    Water heaters



    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    [Sales Volume]

    YOY change

    Yen

    Local currency

    Water heaters

    -19.0%

    Net Sales

    29.89

    24.41

    -18.3%

    -16.2%

    Built-in hob

    (stovetops)

    -28.1%

    Operating Income

    4.80

    3.87

    -19.4%

    -17.3%

    Range hoods

    -35.4%

    Operating income to net sales ratio

    16.1%

    15.9%

    -0.2pt

    Boilers

    -5.6%

    Boilers

    sales ratio

    Shanghai Rinnai, Fiscal 2026 (2Q) Results

    Progress on

    quarterly operating income

    2.93

    1Q

    2Q

    • Net sales Operating income

    ─●─ Operating income to net sales ratio [Billions of Yen]

    29.89

    [Billions of Yen]

    27.07

    18.5%

    16.1%

    24.41

    15.9%

    4.99

    4.80

    3.87

    Fiscal 2024

    Fiscal 2025

    Fiscal 2026

    0.94



* From January to June, 2025

Australia Fiscal 2026 (First Two Quarters/ Interim) Results

  • Segment company

    Rinnai Australia



  • Net sales by product, Fiscal 2026 (2Q) results

    equipment 3.2%

    Others

    24.8% Water heaters 39.7%

    Air-conditioning Appliances 32.3%



    Commercial-use

    Tankless water



    heaters

  • Non-consolidated results of major company

    Rinnai Australia

    • Continued recovery in new housing market but gas appliance market shrinking due to electrification initiatives

    • Solid performance of expanded lineup of heat pump water heaters, contributing to sales increase

    • Continued growth in income driven by higher revenue, as well as synergy from corporate acquisition

      Progress on

      quarterly operating income

      1.00

      1Q

      2Q

      • Net sales Operating income

      ─●─ Operating income to net sales ratio [Billions of Yen]

      [Billions of Yen]

      14.81

      16.29

      4.9%

      4.4%

      6.0%

      0.72 0.71 1.23

      Fiscal 2024 Fiscal 2025 Fiscal 2026

      20.49

0.23



Rinnai Australia, Fiscal 2026 (2Q) Results

Duct-type air conditioning and heating systems

[Billions of Yen]

Fiscal 2025

Fiscal 2026

YOY change

Net Sales

16.21

20.44

+26.1%

Operating Income

0.72

1.06

+46.8%

Operating income to net sales ratio

4.5%

5.2%

+0.7pt

  • Segment results

    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    [Sales Volume]

    YOY change

    Yen

    Local currency

    Net Sales

    16.29

    20.49

    +25.8%

    +34.3%

    Tankless water heaters

    -4.0%

    Operating

    Income

    0.71

    1.23

    +73.4%

    +85.2%

    Electric tank-based water heaters

    +1.7%

    Operating income to net sales ratio

    4.4%

    6.0%

    +1.6pt

    Duct-type air-conditioning and heating

    systems

    +185.4%

    Electric tank-based water heaters

    * From January to June, 2025

    South Korea Fiscal 2026 (First Two Quarters/ Interim) Results

  • Segment company

    Rinnai Korea, RB Korea



  • Net sales by product, Fiscal 2026 (2Q) results

  • Non-consolidated results of major company

    Rinnai Korea

    • Economic stagnation continues to dampen the new home market

    • Higher sales in local-currency terms despite intensifying competition from new entrants in kitchen appliance market

    • Growth in income driven by stable boiler sales and robust performance of new high-end appliances

      Rinnai Korea, Fiscal 2026 (2Q) Results



      Gas tabletop cookers

      Others 16.2%



      Progress on

      quarterly operating income

      0.38

      0.27

      1Q

      2Q

      • Net sales Operating income

      ─●─ Operating income to net sales ratio [Billions of Yen]

      [Billions of Yen]

      15.30 15.17

      13.52

      3.0%

      4.4%

      0.2%

      0.03

      Fiscal 2024

      0.46

      Fiscal 2025

      0.66

      Fiscal 2026



      Water

      Electric tabletop cookers

      Commercial-use equipment 12.2%

      Kitchen appliances 29.6%

      heaters 42.0%

      Environmentally friendly boilers

  • Segment results

    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    Net Sales

    16.66

    16.60

    -0.3%

    Operating Income

    0.56

    0.79

    +41.5%

    Operating income to net sales ratio

    3.4%

    4.8%

    +1.4pt

    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    [Sales Volume]

    YOY change

    Yen

    Local currency

    Boilers

    +26.6%

    Net Sales

    15.30

    15.17

    -0.8%

    +7.3%

    Gas tabletop cookers

    -10.1%

    Operating Income

    0.46

    0.66

    +43.1%

    +54.9%

    Operating income to net sales ratio

    3.0%

    4.4%

    +1.4pt

    Electric tabletop

    cookers

    -3.4%

    * From January to June, 2025

    Indonesia Fiscal 2026 (First Two Quarters/ Interim) Results

  • Segment company

    P.T. Rinnai Indonesia

  • Net sales by product, Fiscal 2026 (2Q) results

  • Non-consolidated results of major company

    P.T. Rinnai Indonesia

    • Local economy remains sluggish due reduced public works investment and other factors

    • Rebound in sales of flagship tabletop stoves thanks to aggressive promotional activities

    • Higher sales and income in local-currency terms, but foreign exchange translation resulted in slight

    Others3.4%

    Commercial-use equipment 9.7%

    Water heaters 1.3%



    Tabletop cookers

    income decrease (in yen terms)

    P.T. Rinnai Indonesia, Fiscal 2026 (2Q) Results



    Range hoods

    Kitchen appliances 85.6%

    Progress on

    quarterly operating income

    0.94 0.99

    1Q

    2Q

    • Net sales Operating income

    ─●─ Operating income to net sales ratio [Billions of Yen]

    [Billions of Yen]

    9.10 9.31

    8.02

    21.9%

    16.4%

    20.9%

    1.31

    1.99

    1.94

    Fiscal 2024

    Fiscal 2025

    Fiscal 2026



    Built-in hob (stovetops)

    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    Net Sales

    8.72

    9.06

    +3.8%

    Operating Income

    1.98

    1.94

    -2.4%

    Operating income

    to net sales ratio

    22.8%

    21.4%

    -1.4pt

    [Billions of Yen]

    Fiscal 2025

    Fiscal 2026

    YOY change

    [Sales Volume]

    YOY change

    Yen

    Local currency

    Net Sales

    9.10

    9.31

    +2.3%

    +7.5%

    Tabletop cookers

    +4.2%

    Operating Income

    1.99

    1.94

    -2.4%

    +2.5%

    Built-in hob

    (stovetops)

    +6.4%

    Operating income to net sales ratio

    21.9%

    20.9%

    -1.0pt

    Range hoods

    +7.0%

  • Segment results

    Other Regions Acquisition of Peru-based housing appliance sales company

  • Rinnai Corporation has acquired a housing appliance sales company in Peru, where we anticipate an increase in households using natural gas

    (proliferation of gas appliances).

  • MT Industrial (acquired company) has a strong sales network and high market share in Peru for water heaters and kitchen appliances.

MT Industrial



Water heaters

Instantaneous water heaters (gas/electric), Storage-type water heaters (gas/electric), Electric showers

  • About MT Industrial S.A.C (Announced October 31, 2025)

Name

MT Industrial S.A.C

Established

October 2013

Net sales (2024)

¥9.8 billion

Main business

Sale of water heaters, kitchen appliances, and sanitary equipment

Installation and maintenance services for sold products

Acquisition date

October 31, 2025

Other

Water purifiers

Kitchen appliances

Built-in hobs (stovetops), ovens, range

hoods

*Inclusion in consolidation scope B/S: Fiscal 2026, ending March 31, 2026 (3Q)

P/L: Fiscal 2027, ending March 31, 2027 (1Q)

  • Both net sales and operating income ahead of first-half targets

  • Despite no change in outlook for second half, the full-year earnings forecast has been maintained in consideration of various risk factors

Progress of Consolidated Earnings Forecast

[Millions of Yen]

Net sales

Operating

income

VS Net

sales

Ordinary

income

VS Net

sales

Net income attributable to owners of the parent company

VS Net

sales

Consolidated

Plan (A)

216,400

21,300

9.8%

22,800

10.5%

14,000

6.5%

Actual (B)

216,415

22,725

10.5%

25,272

11.7%

15,918

7.4%

Financial

Results

[1st half]

B/A ratio

+0.0%

+6.7%

+10.8%

+13.7%

FY2026 (2Q)

Applicated exchange rates

FY2026

(beginning) Assumed exchange rates

USD

149.007

145.000

AUD

94.230

95.658

CNY

20.533

20.135

KRW

0.1044

0.1066

IDR

0.00913

0.00917

Consolidated Financial Results

[Full year]

Plan

470,000

50,000

10.6%

53,500

11.4%

33,000

7.0%

Reference

  1. Results of First Two Quarters (Interim) of Fiscal 2026/

    Fiscal 2026 Performance Forecasts

  2. Business Outlook

    Direction of Growth In the Japanese Market

Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 2Q 2Q 2Q 2Q 2Q

6.1%

6.8%

8.1%

10.4%

12.4%

- Key products that help improve quality of life and benefit the global environment are expected to grow in the Japanese market

  • Domestic sales composition ratio of key products



  • Air Bubble products: Cumulative sales reached 150,000 units

(Announced on October 27, 2025, Japanese only)

売上台 数

累計売上 台数



Units sold Units sold (cumulative)

Cumulative sales

150,000 units

'20 '21 '22 '23 '24 '25上期

'21_2Q '22_2Q '23_2Q '24_2Q '25_2Q

Fiscal 2021

Fiscal 2022

Fiscal 2023

Fiscal 2024

Fiscal 2025

Fiscal 2026

1st half

Key products

  • Eco Jozu ratio and Air Bubble installation rate

    Eco Jozu ratio



    50.0%

    Air Bubble installation ratio (Fiscal 2026 1st half)

    16%

    Hybrid water heaters with heating systems

    Air Bubble products

    Gas clothes dryers







    Combines gas and

    Fine bubbles enhance bathing comfort and make cleaning easier

    Quick drying with powerful

    electricity to achieve

    highest efficiency in the industry

    warm air generated by gas

    40.0%

    '20 '21 '22 '23 '24 '25上期

    Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2021 2022 2023 2024 2025 2026

    1st half

    30.0%

    9pt.

    84%

    Increase in Air Bubble installation rate

    Higher Eco Jozu rate

©Rinnai Corporation 21

- Market expected to change significantly during our next medium-term plan period due to Department of Energy's water heater

regulations

Direction of Growth in the U.S. Market

  • Projected market changes due to thermal efficiency regulations for water heaters aimed at carbon neutrality (scheduled for January 2030 enactment)



    Sales restrictions on low-efficiency electric storage-type water heaters

    Accelerating shift to high-efficiency heat pump water heaters that can utilize existing piping systems

    [Water heater market] Rinnai's forecasts

    • Storage-type (electric) Heat pump type Gas tankless Storage-type (gas)

      Current

      2030~

      Electric

      Gas

      Our focus areas

      Heat pump water heaters



      Gas tankless water heaters Condensing water heaters (High efficiency models)

      ©Rinnai Corporation 22

      South America Purpose of acquiring MT Industrial (Peru)

  • Peru expected to see population growth and continued stable economic growth

  • Households using natural gas on the rise: Peruvian government has announced plans to continue expanding the number of households using natural gas

250

200

150

100

50

0

(万)

[Million] 2.5

2.0

21%

1.5

1.0

0.5

0

2019

2020

2021

2022

2023

12%



  • Peruvian market overview Households using natural gas on the rise

    Population

    34.4 million

    Age distribution

    Approx. 60% are young people aged 34 and under

    GDP

    US$289.2 billion (2024)

    Per-capita GDP

    US$8,452

    天然ガス網がある世帯数

    人口における割合

    Number of households with natural gas demand

    Percentage of population



    Male

    Female



    Peru's population pyramid (2024)

    ©Rinnai Corporation 23

    Sale Territory Expansion in the Americas

- Acquisition of MT Industrial: Aim to leverage synergies across the Americas and strengthen our sales capabilities in Latin America, a key focus area



2021

Acquisition of Industrias Mass (Mexico)

Business: Manufacture and sale of commercial water heaters

Rinnai Canada Holdings

Rinnai America

Industrias Mass

(Mexico)

ThermoSolutions (Costa Rica)

2024

Acquisition of ThermoSolutions (Costa Rica)

Business: Manufacture and sale of electric water heaters

2025

Acquisition of MT Industrial (Peru)

Business: Sale of kitchen appliances (gas) and water heaters

(electric and gas); sale of sanitary equipment

MT Industrial (Peru)

Rinnai Brazil Heating Technology

Our Policy in the Increasingly Challenging Chinese Market

- Aim to further strengthen our high-profit structure despite expectations of a persistently challenging market environment

Fengxian District,

Shanghai

(Since February 2017)



  • Location of Shanghai Rinnai (main Rinnai Group base in China)

  • Direction of Chinese market

Current status

  • Assume that economic factors causing sluggish consumption will continue for time being

  • Aim to maintain profit margins through management efforts despite challenging market conditions

  • China remains an important market for the Group

Office

Product development

Plant 1

Plant 2*



Direction

  • Maintain and promote high-quality Rinnai brand built on Japanese

    technology

  • Centralize operations to facilitate prompt decision-making and strict control of fixed costs

  • Enhance management efficiency through efficient operation of Plant 2

*Full-scale operation since June 2024

Next Medium-Term Management Plan

- Our next medium-term management plan, to be announced in May 2026, will take the following perspectives into account.

Business

environment

  • Accelerating movement toward carbon neutrality

- Transition to low-carbon society is advancing, with energy-saving and energy regulations being

strengthened

  • Advances in AI and other digital technologies are transforming lifestyles and workstyles

- Lifestyles and household appliances changing as living habits and values diversify

Business direction

  • Response to energy transition

- In addition to acquiring electrification technologies, we aims to develop technologies related to various energy sources (hydrogen, renewable energy, e-methane, etc.)

  • Thermal equipment market is growing both in Japan and overseas

- We see major business opportunities particularly in the United States, where significant market changes

are expected

Capital policy

  • Prioritize investments to maintain and further strengthen our business foundation

- In addition to sustaining and expanding earning power in existing businesses, we will execute growth

investments and realize returns at an early stage

  • Promote management focused on capital efficiency indicators (ROE, ROIC, etc.)

- Implement balance sheet management to appropriately control shareholders' equity



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