Notice of Termination of Production at BEIJING TOTO Sanitary Ware Production Plant

October 9, 2019

To Whom It May Concern:

Listed Company Name: TOTO LTD.

Notice of Termination of Production at BEIJING TOTO Sanitary Ware Production Plant

Production of sanitary ware at the Beijing production plant of the group company BEIJING TOTO CO., LTD. was terminated at the end of September 2019.

1. Background for the Termination of Production
   This production plant was established in 1994 as the TOTO Group's first production base of sanitary ware in China. Later, the TOTO Group established TOTO (BEIJING) Co., Ltd. in 1995, TOTO EASTCHINA CO., LTD. in 2001, and TOTO (FUJIAN) CO., LTD. in 2011 to firmly establish a strong production capacity for sanitary ware in China.
   In the area around BEIJING TOTO, more and more of the land has been converted into residential land. Furthermore, since the city of Beijing announced an urban redevelopment plan in 2018 that designated the area for residential use, conversion into residential land has proceeded rapidly. Given this changing situation, we examined how to optimize the global supply system focusing on the production bases in China, other than BEIJING TOTO, and including production bases in Vietnam, Thailand and other neighboring countries. Because we confirmed that we can sufficiently provide a stable supply of sanitary ware in the active Chinese market, after consulting our joint venture partner, we decided to terminate production at the production plant of BEIJING TOTO.
2. Future Prospects
   The impact of the termination of production on the consolidated financial results is expected to be minimal.

End of document

This notice has been translated from the original notice in Japanese.

In the event of any discrepancy, the original in Japanese shall prevail.