LIXIL : Consolidated Financial Results for the Fiscal Year Ended March 31, 2021(International Financial Reporting Standards)

	Flash Report
LIXIL CORPORATION	April 30, 2021

Consolidated Financial Results for the Fiscal Year Ended March 31, 2021

(International Financial Reporting Standards)

Company Name:	LIXIL CORPORATION	Stock Listings:	Tokyo, Nagoya
Code Number:	5938	URL: https://www.lixil.com/en/investor/
Representative:	Kinya Seto, President & CEO	Telephone:	[phone]
Contact:	Kayo Hirano, Senior Vice President, Leader, Investor Relations Office

Scheduled date of ordinary general meeting of shareholders:		June 22, 2021
Scheduled date of issue of Security report:			June 23, 2021
Schedule date of payment of dividends:				June 7, 2021
Preparation of supplementary materials for the financial results for FYE 2021:	Yes
Information meeting for the financial results for FYE 2021 to be held:	Yes (For investment analysts and institutional investors)
										(Amounts less than one million yen are rounded)
1. Consolidated Financial Results for the FY Ended March, 2021 (April 1, 2020 through March 31, 2021)
(1) Consolidated Operating Results			(% indicate changes from the figures of corresponding period of the previous fiscal year)
					From Continuing Operations
		Revenue	Core earnings	Operating profit	Profit before tax	Profit for the year
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
FYE 2021		1,378,255	-9.0	57,288	9.6		35,842		12.0	33,804		-17.4	16,368		-41.0
FYE 2020		1,514,449	-	52,290	-		32,010		-	40,909		-	27,727		-
					Including Discontinued Operations
				Profit for the year	Total comprehensive	Basic earnings	Diluted earnings
	Profit for the year	attributable to
	income for the year	per share	per share
				owners of the parent
	Million yen	%	Million yen	%	Million yen	%			Yen			Yen
FYE 2021		37,587	174.9	33,048	164.0		74,893		-	113.92		108.44
FYE 2020		13,671	-	12,518	-		-10,769		-			43.15		39.65
		Including Discontinued Operations		From Continuing Operations
		Ratio of equity	Total assets		Revenue		Revenue
		attributable to	Earning Ratio before			Operating profit
		Core earnings ratio
	owners of the parent	tax						ratio
			%		%				%			%
FYE 2021			6.3		3.1				4.2			2.6
FYE 2020			2.4		-1.1				3.5			2.1
Reference: Share of loss (profit) of associates and joint ventures accounted for using the equity method
FYE 2021	489 million yen	FYE 2020	346 million yen

Note: Core earnings is calculated by deducting the cost of sales and selling, general and administrative expenses (SGA) from revenue

Note: The year-on-year rate of change in revenue, core earnings, operating profit, profit before tax, and profit for the year from continuing

operations for FYE 2020	have been omitted.
(2) Consolidated Financial Position
						Equity attributable to	Ratio of equity attributable	Equity attributable to owners
	Total assets			Total equity	to owners of the parent to	of the parent
			owners of the parent
						total assets		per share
		Million yen			Million yen		Million yen		%	Yen
FYE 2021		1,741,814			554,767		552,271		31.7	1,902.89
FYE 2020		2,091,529			535,137		502,165		24.0	1,730.99
(3) Consolidated Cash Flows
	Cash flows from		Cash flows from	Cash flows from	Cash and cash equivalents at
	operating activities		investing activities	financing activities		end of period
	Million yen			Million yen		Million yen		Million yen
FYE 2021		151,043			-54,151		-93,425		111,061
FYE 2020		157,701			-41,314		-153,285		95,862

- 1 -

2. Cash Dividends

						Total amount of	Dividend payout	Ratio of total
		Dividends per share		dividends to
			cash dividends	ratio
						net assets
						(annual)	(consolidated)
	End of Q1	End of Q2	End of Q3	End of period	For the year	(consolidated)
	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
FYE 2020	-	35.00	-	35.00	70.00	20,307	162.2	3.9
FYE 2021	-	35.00	-	40.00	75.00	21,763	65.8	4.1
FYE 2022	-	40.00	-	40.00	80.00		49.4
(forecast)
3. Consolidated Forecast for the FY Ending March, 2022 (April 1, 2021 through March 31, 2022)
				(% indicate changes from the figures of corresponding period of the previous fiscal year)

					From Continuing Operations
	Revenue		Core earnings	Operating profit	Profit before tax	Profit for the year
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
FYE 2022	1,440,000		4.5	80,000	39.6	78,000	117.6	75,500	123.3	49,000	199.4
			Including Discontinued Operations
				Profit for the year	Basic earnings
	Profit for the year	attributable to
	per share
				owners of the parent
	Million yen	%	Million yen	%		Yen
FYE 2022	47,000		25.0	47,000	42.2		161.94

• Notes

1. Changes in significant subsidiaries, which affected the scope of consolidation during this period: Yes
   Newly consolidated company: None
   Excluded company: 3 (Compnay Name) LIXIL Corporation, LIXIL VIVA Corporation, Kawashima Selkon Textiles Co., Ltd.
2. Changes in accounting policies and accounting estimate
3. 1. Changes in accounting policies required by IFRS: None
   2. Other changes: None
   3. Changes in accounting estimate: None
4. Outstanding stocks (Common stocks)

(i) Outstanding stocks including treasury stocks	(March 31, 2021)	313,319,159	shares	(FY ended March 31, 2020)
(ii) Treasury stocks	(March 31, 2021)	23,091,924	shares	(FY ended March 31, 2020)
(iii) Average stocks during the fiscal year	(March 31, 2021)	290,110,459	shares	(FY ended March 31, 2020)

313,319,159 shares

23,216,159 shares

290,101,544 shares

* This financial results report is exempt from review procedures under Japan's Financial Instruments and Exchange Law.

*Appropriate use of business forecasts; other special items (Cautionary statements with respect to forward-looking statements)

Performance forecast and other forward-looking statements contained in this report are based on information currently available and on certain assumptions deemed rational at the time of this report's release. Due to various circumstances, however, actual results may differ significantly from such statements.

Note: Regarding presentation material to supplement the financial results announcement has been posted on TDnet and the Company's website.

Note: Simplified and Short-Form Merger with 100% Subsidiary (LIXIL Corporation) and Change of Company Name

Following its "Notification Regarding Plans for Simplified and Short-Form Merger Between LIXIL Group Corporation and its 100% Subsidiary (LIXIL Corporation), Change of Company Name, and Partial Amendment of Articles of Incorporation," dated March 23, 2020, LIXIL Corporation has completed the merger between the Company (surviving company) and its 100% subsidiary LIXIL Corporation (absorbed company), effective December 1, 2020.

In addition, the Company has changed its name from LIXIL Group Corporation to LIXIL Corporation, also effective December 1, 2020.

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

4. Consolidated Financial Statements

1. Consolidated Statement of Financial Position

(Unit: millions of yen)

	As of March 31, 2020		End of this year
	(As of March 31, 2021)
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents	Y	95,862	Y	111,061
Trade and other receivables		307,054		284,369
Inventories		227,606		180,417
Contract assets		20,280		17,650
Income tax receivables		1,740		9,776
Other financial assets		15,428		13,880
Other current assets		16,578		19,262
Subtotal		684,548		636,415
Assets held for sale		58,232		1,358
Total current assets		742,780		637,773
NON-CURRENT ASSETS:
Property, plant and equipment		496,865		402,669
Right of use assets		215,020		62,417
Goodwill and other intangible assets		434,102		453,456
Investment property		7,779		4,931
Investments accounted for using the equity method		10,704		10,871
Other financial assets		90,047		83,080
Deferred tax assets		88,803		77,939
Other non-current assets		5,429		8,678
Total non-current assets		1,348,749		1,104,041
Total assets	Y	2,091,529	Y	1,741,814

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Unit: millions of yen)

	As of March 31, 2020		End of this year
	(As of March 31, 2021)
LIABILITIES AND EQUITY
LIABILITIES
CURRENT LIABILITIES:
Trade and other payables		336,492		299,363
Bonds and borrowings		232,711		164,204
Lease liabilities		34,666		17,339
Contract liabilities		10,158		9,738
Income taxes payable		6,159		5,220
Other financial liabilities		7,646		5,408
Provisions		1,731		1,313
Other current liabilities		85,670		84,343
Subtotal		715,233		586,928
Liabilities directly associated with the assets held for sale		91,907		－
Total current liabilities		807,140		586,928
NON-CURRENT LIABILITIES:
Bonds and borrowings		363,379		366,923
Lease liabilities		201,795		47,039
Other financial liabilities		31,926		25,757
Net defined benefit liabilities		76,907		80,939
Provisions		12,335		7,860
Deferred tax liabilities		55,200		56,468
Other non-current liabilities		7,710		15,133
Total non-current liabilities		749,252		600,119
Total liabilities		1,556,392		1,187,047
EQUITY
Share capital		68,418		68,418
Capital reserves		278,120		278,240
Treasury shares		-48,870		-48,610
Other components of equity		-12,709		20,415
Retained earnings		217,206		233,808
Equity attributable to owners of the parent		502,165		552,271
Non-controlling interests		32,972		2,496
Total equity		535,137		554,767
Total liabilities and equity	Y	2,091,529	Y	1,741,814

- 4 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

1. Consolidated Statements of Profit or Loss and Comprehensive Income Consolidated Statement of Profit or Loss

			(Unit: millions of yen)
		FY ended		FY ended
		March 31, 2020		March 31, 2021
Continuing operations
Revenue	Y	1,514,449	Y	1,378,255
Cost of sales		-1,011,823		-909,035
GROSS PROFIT		502,626		469,220
Selling, general and administrative expenses		-450,336		-411,932
Other income		6,064		17,550
Other expenses		-26,344		-38,996
OPERATING PROFIT		32,010		35,842
Finance income		4,817		5,708
Finance costs		-7,241		-8,235
Share of gain of associates and joint ventures accounted		346		489
for using the equity method
	10,977
Profit from disposal of share of associates			－
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS		40,909		33,804
Income tax expenses		-13,182		-17,436
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS		27,727		16,368
Discontinued operations
PROFIT (LOSS) FOR THE YEAR FROM DISCONTINUED OPERATIONS		-14,056		21,219
Profit for the year		13,671		37,587
Profit (loss) for the year attributable to:
Owners of the parent
Continuing operations		28,522		16,363
Discontinued operations		-16,004		16,685
Total		12,518		33,048
Non-controlling interests
Continuing operations		-795		5
Discontinued operations		1,948		4,534
Total		1,153		4,539
Profit for the year		13,671		37,587

- 5 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

			(Unit: millions of yen)
		FY ended		FY ended
		March 31, 2020		March 31, 2021
Earnings (loss) per share
Basic (yen per share)
Continuing operations		98.32		56.41
Discontinued operations		-55.17		57.51
Total		43.15		113.92
Diluted (yen per share)
Continuing operations		89.41		53.94
Discontinued operations		-49.76		54.50
Total		39.65		108.44
Consolidated Statement of Comprehensive Income
			(Unit: millions of yen)
		FY ended		FY ended
		March 31, 2020		March 31, 2021
PROFIT FOR THE YEAR	Y	13,671	Y	37,587
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss
Net gain on revaluation of financial assets measured through		-6,166		10,740
other comprehensive income
Remeasurements of defined benefit pension plans		2,152		2,420
Total items that will not be reclassified subsequently to profit or loss		-4,014		13,160
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations		-17,382		20,277
Net fair value gain (loss) on hedging instruments entered into for		-3,033		3,872
cash flow hedges
Share of other comprehensive income of associates and joint		-11		-3
ventures accounted for using the equity method
Total items that may be reclassified subsequently to profit or loss		-20,426		24,146
Other comprehensive income, net of tax		-24,440		37,306
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		-10,769		74,893
Owners of the parent
Non-controlling interests		-11,632		70,212
Total comprehensive income for the year		863		4,681
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	Y	-10,769	Y	74,893

- 6 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(3) Consolidated Statement of Changes in Equity

(Unit: millions of yen)

		Equity attributable to owners of the parent
				Other components of equity
				Net fair
				value gain	Remeasu-	Exchange	Net fair
				(loss) on	value gain
	Share	Capital	Treasury	financial	rements of	differences	(loss) on
	assets	defined	on	hedging
	capital	reserves	shares
	measured	benefit	translation	instruments
				through	pension	of foreign	entered into
				other	plans	operations	for cash
				comprehen-			flow hedges
				sive income
BALANCE AS OF APRIL 1, 2019	68,418	277,584	-48,899	12,112	－	-2,659	234
Cumulative effects of changes in	－	－	－	－	－	－	－
accounting policies
RESTATED BALANCE AS OF APRIL 1, 2019	68,418	277,584	-48,899	12,112	－	-2,659	234
Profit for the year	－	－	－	－	－	－	－
Other comprehensive income	－	－	－	-6,153	2,152	-17,077	-3,062
Total comprehensive income for the year	－	－	－	-6,153	2,152	-17,077	-3,062
Purchase of treasury shares	－	－	-15	－	－	－	－
Disposal of treasury shares	－	-0	0	－	－	－	－
Redemption of convertible bond-type	－	－	－	－	－	－	－
bonds with subscription rights to shares
Share-based payment transactions	－	241	44	－	－	－	－
Dividends	－	－	－	－	－	－	－
Reclassification to disposal group	－	－	－	273	－	-4,021	142
classified as held for sale
Changes in parent's ownership interests	－	295	－	－	－	－	－
in related companies
Transfers from other components of	－	－	－	24	-2,152	－	－
equity to retained earnings
Total transactions with owners	－	536	29	297	-2,152	-4,021	142
BALANCE AS OF MARCH 31, 2020	68,418	278,120	-48,870	6,256	－	-23,757	-2,686
Profit for the year	－	－	－	－	－	－	－
Other comprehensive income	－	－	－	10,740	2,420	24,129	3,767
Total comprehensive income for the year	－	－	－	10,740	2,420	24,129	3,767
Purchase of treasury shares	－	－	-17	－	－	－	－
Disposal of treasury shares	－	-0	0	－	－	－	－
Share-based payment transactions	－	189	277	－	－	－	－
Dividends	－	－	－	－	－	－	－
Reclassification to disposal group	－	－	－	-162	－	－	-10
classified as held for sale
Changes in parent's ownership interests	－	-69	－	－	－	－	－
in related companies
Changes associated with loss of	－	－	－	－	－	－	－
control of subsidiaries
Transfers from other components of	－	－	－	-276	-2,420	－	－
equity to retained earnings
Total transactions with owners	－	120	260	-438	-2,420	－	-10
BALANCE AS OF MARCH 31, 2021	68,418	278,240	-48,610	16,558	－	372	1,071

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Unit: millions of yen)

	Equity attributable to owners of the parent
	Other components of equity
	Accumula
	-ted other
	comprehen					Non-
	-sive income			Retained		Total
	relating to				controlling
			earnings	Total	equity
	non-current	Other	Total	interests
	(losses)
	assets or
	disposal
	group
	classified as
	held for sale
BALANCE AS OF APRIL 1, 2019	22	4,749	14,458	222,095	533,656	33,511	567,167
Cumulative effects of changes in	－	－	－	58	58	103	161
accounting policies
RESTATED BALANCE AS OF APRIL 1, 2019	22	4,749	14,458	222,153	533,714	33,614	567,328
Profit for the year	－	－	－	12,518	12,518	1,153	13,671
Other comprehensive income	1	-11	-24,150	－	-24,150	-290	-24,440
Total comprehensive income for the year	1	-11	-24,150	12,518	-11,632	863	-10,769
Purchase of treasury shares	－	－	－	－	-15	－	-15
Disposal of treasury shares	－	－	－	－	0	－	0
Redemption of convertible bond-type	－	-680	-680	680	－	－	－
bonds with subscription rights to shares
Share-based payment transactions	－	-459	-459	284	110	－	110
Dividends	－	－	－	-20,307	-20,307	-1,540	-21,847
Reclassification to disposal group	3,606	－	－	－	－	－	－
classified as held for sale
Changes in parent's ownership interests	－	－	－	－	295	35	330
in related companies
Transfers from other components of	250	－	-1,878	1,878	－	－	－
equity to retained earnings
Total transactions with owners	3,856	-1,139	-3,017	-17,465	-19,917	-1,505	-21,422
BALANCE AS OF MARCH 31, 2020	3,879	3,599	-12,709	217,206	502,165	32,972	535,137
Profit for the year	－	－	－	33,048	33,048	4,539	37,587
Other comprehensive income	-3,889	-3	37,164	－	37,164	142	37,306
Total comprehensive income for the year	-3,889	-3	37,164	33,048	70,212	4,681	74,893
Purchase of treasury shares	－	－	－	－	-17	－	-17
Disposal of treasury shares	－	－	－	－	0	－	0
Share-based payment transactions	－	-1,182	-1,182	1,003	287	－	287
Dividends	－	－	－	-20,307	-20,307	-592	-20,899
Reclassification to disposal group	172	－	－	－	－	－	－
classified as held for sale
Changes in parent's ownership interests	－	－	－	－	-69	-5	-74
in related companies
Changes associated with loss of	－	－	－	－	－	-34,560	-34,560
control of subsidiaries
Transfers from other components of	-162	－	-2,858	2,858	－	－	－
equity to retained earnings
Total transactions with owners	10	-1,182	-4,040	-16,446	-20,106	-35,157	-55,263
BALANCE AS OF MARCH 31, 2021	－	2,414	20,415	233,808	552,271	2,496	554,767

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(4) Consolidated Statement of Cash Flows

				(Unit: millions of yen)
		FY ended		FY ended
		March 31, 2020		March 31, 2021
OPERATING ACTIVITIES:
Profit before tax from Continuing operations	Y	40,909	Y	33,804
Profit (loss) before tax from Discontinued operations		-64,271		25,491
Profit (Loss) before tax		-23,362		59,295
Depreciation and amortization		105,557		84,786
Impairment losses		18,378		8,840
Loss recognized on the measurement to fair value, less costs to sell		53,983		－
the disposal group related to discontinued operations
Loss recognized on the measurement to fair value, less costs to sell		－		5,405
the disposal group held for sale
Interest and dividend income		-3,490		-2,825
Interest expense		6,368		5,433
Share of loss (profit) of associates and joint ventures accounted for		-346		-489
using the equity method
Profit from disposal of share of associates		-10,977		－
Gain on sale of subsidiaries		-1,422		-25,763
Loss (profit) on sale and disposal of property, plant and equipment		1,316		-439
Decrease (increase) in trade and other receivables		45,881		19,802
Decrease (increase) in inventories		-1,558		4,565
Increase (decrease) in trade and other payables		-23,767		9,648
Increase (decrease) in net defined benefit liabilities		-2,208		263
Other		13,245		9,913
Subtotal		177,598		178,434
Interest received		1,875		1,342
Dividends received		1,693		1,581
Interest paid		-6,946		-5,055
Income taxes paid		-16,519		-25,259
Net cash flows from operating activities	Y	157,701		151,043

- 9 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(4) Consolidated Statement of Cash Flows

			(Unit: millions of yen)
		FY ended		FY ended
		March 31, 2020		March 31, 2021
INVESTING ACTIVITIES:
(Increase) decrease in time deposits	Y	825	Y	-2,441
Purchase of property, plant and equipment		-56,752		-54,959
Proceeds from disposal of property, plant and equipment		3,952		2,519
Purchase of intangible assets		-11,883		-13,539
Proceeds from disposal of investment property		857		56
Payments for sale of subsidiaries		－		-52,476
Proceeds from sale of subsidiaries		14,288		69,846
Decrease (increase) in short-term loans receivable		-2,965		-1,135
Payments for long-term loans receivable		-350		-7
Proceeds from collection of long-term loans receivable		368		330
Payments for acquisition of other investments		-192,045		-135,342
Proceeds from sale and redemption of investments		205,442		135,706
Other		-3,051		-2,709
Net cash flows from investing activities	Y	-41,314	Y	-54,151
FINANCING ACTIVITIES:
Dividends paid	Y	-20,307	Y	-20,307
Dividends paid to non-controlling interests		-1,540		-592
Increase (decrease) in short-term borrowings and commercial		-62,634		-87,719
Proceeds from long-term borrowings		142,377		83,696
Repayment of long-term borrowings		-80,330		-75,943
Proceeds from issuance of bonds		－		49,775
Payments for redemption of bonds		-90,000		-10,000
Lease liabilities paid		-40,954		-32,460
Payments for acquisition of interests in subsidiaries from		-29		-6
non-controlling interests
Other		132		131
Net cash flows from financing activities	Y	-153,285	Y	-93,425
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		-36,898		3,467
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR		141,421		95,862
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF		-2,030		3,442
CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		-6,631		8,290
INCLUDED IN ASSETS CLASSIFIED HELD FOR SALE
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	Y	95,862		111,061

- 10 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(5) Notes related to Financial Statements

(Notes related to Going Concern Assumptions) Not applicable.

(Notes on Changes in Presentation)

In the fiscal year ended March 31, 2021, LIXIL VIVA, formerly a subisdiary of the Company, was classified as discontinued operations.

Income (loss) from discontinued operations, net of tax, is presented below net income for continuing operations in the consolidated statements of profit or loss and comprehensive income. Revenue, income (loss), and other items for discontinued operations have been reclassified to loss for from discontinued operations in the consolidated statement of profit or loss and comprehensive income for the year ended March 31, 2021. Cash flows from operating activities, investing activities, and financial activities are presented in the total amount of continuing operations and discontinued operations cash flows in the consolidated statement of cash flows.

- 11 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Additional Information)

Regarding accounting estimates considering the expansion of the COVID-19 pandemic

The COVID-19 global pandemic caused a sharp stagnation in economic and social activities, which had a considerable impact on our business performance in the fiscal year ended March 31, 2021. Although there are differences depending on the region, both Japan and international businesses are generally on a recovery trend.

We will continue to carefully monitor the social and economic impact of COVID-19 in Japan and international markets, and how this will affect our business performance.

Due to the unprecedented nature of the COVID-19 pandemic, there are currently no widely accepted views on how it will continue to develop in the future, or references regarding accounting estimates related this situation. Therefore, it is difficult to predict the trend. However, based on certain assumptions, we have developed estimates such as for the recoverability of deferred tax assets or goodwill and fixed asset impairment tests, and reflected these into our accounting same as the fiscal year ended March 31, 2020.

Most of Japan and international business performance showed a recovery trend during the second half of the fiscal year ended March 2021, although COVID-19 is still expanding in some international regions. It is assumed that the impact on our business performance from fiscal year ending March 31, 2022 onward will be minor and limited.

There are many uncertainties regarding the impact of COVID-19 on economic activities. If the above assumptions should change, the financial condition and operating results of the Company may be affected.

- 12 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Segment Information)

• Description of Reportable Segments
  The Company's reportable segments are those for which discrete financial information is available and regular evaluation by the Board of Directors is being performed in order to decide how resources are allocated and performance is assessed.
  The Company is managed based on four reportable segments consisting of the Water Technology business, the Housing Technology business, the Building Technology business, and the Housing and Services business. The Company manages these reportable segments and reports the performance of the respective business units to the Board of Executive Officers or Directors.
  The Water Technology business includes manufacturing and sales of sanitary earthenware, faucets, bathroom fixtures, system kitchen units and others. The Housing Technology business includes manufacturing and sales of window sashes, doors, shutters, interior building materials and others. The Building Technology business includes manufacturing and sales of curtain walls and others. The Housing and Services business includes proposals for housing solutions, sales and management of real estate, management of assisted living condominiums, and others.
  As described in (Note on Discontinued Operations), the Company signed off an agreement to sell 100% of the shares of LIXIL VIVA("VIVA"), and transfered shares on November 9, 2020. Revenue, income (loss), and other items of VIVA are classified as discontinued operations in the consolidated financial statements from the beginning of the year ended March 31, 2020. Therefore, the revenue and segment profit of VIVA, which was originally included in the Distribution and Retail business, have been reclassified as discontinued operations under in segment information for the year ended March 31, 2020.
  In addition, the online business of housing-related equipment (LIXIL Online Business) operated by our consolidated subsidiary was classified in the Housing and Services business until the third quarter of fiscal year ended March 2021. However, due to the organizational restructuring within the company on January 1, 2021, LIXIL Online Business was subsequently transitioned to and classified into the Water Technology business from the fourth quarter of the fiscal year ended March 2021.

• Methods of Measurement for the Amounts of Revenue, Profit (Loss) and Other Items for Each Reportable Segment
  The accounting policies of each reportable segment are consistent with those for the preparation of consolidated financial statements. Profit or loss for reportable segments is presented on the basis of core earnings. Intersegment revenue or transfers are based on market prices and others.

- 13 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

• Information about Revenue, Income (Loss) and Other Items by Business Segment For the FY ended March 31, 2020 (April 1, 2019 through March 31, 2020)

(Unit: millions of yen)

				Reportable Segments
		Water		Housing		Building	Housing &
	Technology	Technology	Technology		Services
		Business		Business		Business		Business
Revenue
Revenue from external customers (Note 3)	Y	813,815	Y	536,268	Y	112,680	Y	51,686
Intersegment revenue or transfers		14,712		5,936		94		2,333
Total		828,527		542,204		112,774		54,019
Segment profit (Note 1)		61,524		28,288		2,671		2,984
Other income
Other expenses (Note 1,4)
Operating profit
Finance income
Finance costs
Share of loss of associates and joint ventures
accounted for using the equity method
Profit from disposal of share of associates
Profit before tax from continuing operations
Other items
Depreciation and amortization		43,840		35,184		1,672		1,618
Impairment losses		8,847		4,444		79		239
One time allowance for employees (Note 4)		1,965		1,225		140		41
Share of profit (loss) of associates and joint ventures		-12		122		-		236
Investments accounted for using the equity method		346		4,143		-		6,215
Capital expenditures		43,935		23,602		3,239		1,567
				(Unit: millions of yen)
		Total	Reconciliations	Consolidated
			( Note 2 )
Revenue
Revenue from external customers (Note 3)	Y	1,514,449		-	Y	1,514,449
Intersegment revenue or transfers		23,075		-23,075		-
Total		1,537,524		-23,075		1,514,449
Segment profit (Note 1)		95,467		-43,177		52,290
Other income						6,064
Other expenses (Note 1,4)						-26,344
Operating profit						32,010
Finance income						4,817
Finance costs						-7,241
Share of loss of associates and joint ventures						346
accounted for using the equity method
Profit from disposal of share of associates						10,977
Profit before tax from continuing operations						40,909
Other items
Depreciation and amortization		82,314		228		82,542
Impairment losses		13,609		917		14,526
One time allowance for employees (Note 4)		3,371		90		3,461
Share of profit (loss) of associates and joint ventures		346		-		346
Investments accounted for using the equity method		10,704		-		10,704
Capital expenditures		72,343		4		72,347

- 14 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

Information about Revenue, Income (Loss) and Other Items by Business Segment

For the FY ended March 31, 2021 (April 1, 2020 through March 31, 2021)

(Unit: millions of yen)

				Reportable Segments
		Water		Housing		Building	Housing &
	Technology	Technology	Technology		Services
		Business		Business		Business		Business
Revenue
Revenue from external customers (Note 3)	Y	770,551	Y	469,049	Y	93,329	Y	45,326
Intersegment revenue or transfers		13,254		5,242		46		1,230
Total		783,805		474,291		93,375		46,556
Segment profit (Note 1)		62,148		31,435		2,611		2,136
Other income
Other expenses (Note 1,4)
Operating profit
Finance income
Finance costs
Share of loss of associates and joint ventures
accounted for using the equity method
Profit from disposal of share of associates
Profit before tax from continuing operations
Other items
Depreciation and amortization		41,711		36,460		1,171		1,205
Impairment losses		2,528		2,661		2,780		747
One time allowance for employees (Note 4)		803		468		51		17
Share of profit (loss) of associates and joint ventures		-125		242		-		372
Investments accounted for using the equity method		248		4,287		-		6,336
Capital expenditures (Note 4)		44,740		17,882		2,074		882
				(Unit: millions of yen)
		Total	Reconciliations	Consolidated
			( Note 2 )
Revenue
Revenue from external customers (Note 3)	Y	1,378,255		-	Y	1,378,255
Intersegment revenue or transfers		19,772		-19,772		-
Total		1,398,027		-19,772		1,378,255
Segment profit (Note 1)		98,330		-41,042		57,288
Other income						17,550
Other expenses (Note 1,4)						-38,996
Operating profit						35,842
Finance income						5,708
Finance costs						-8,235
Share of loss of associates and joint ventures						489
accounted for using the equity method
Profit from disposal of share of associates						-
Profit before tax from continuing operations						33,804
Other items
Depreciation and amortization		80,547		3		80,550
Impairment losses		8,716		124		8,840
One time allowance for employees (Note 4)		1,339		52		1,391
Share of profit (loss) of associates and joint ventures		489		-		489
Investments accounted for using the equity method		10,871		-		10,871
Capital expenditures		65,578		3		65,581

- 15 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

Notes:

1. Segment profit is core earnings which are defined as revenue less cost of sales and selling, general and administrative expenses. A one-time allowance for employees was recorded as other expenses instead of cost of sales and selling, general and administrative expenses.
2. Segment profit reconciliations are expenses for the Company that are not allocated to reportable segments. Expenses for the Company are those mainly associated with the administrative departments, including human resources, general affairs, accounting and other departments of the Company and LIXIL Corporation (absorbed company) mergerd on December 1, 2020.
3. Regarding revenue to LIXIL VIVA, which was previously included in "Intersegment revenue or transfers", they have been included in "Revenue from external customers" and have been eliminated from profit or loss from discontinued operations to reflect the impact on continuing operations in the future". Accordingly, revenue to LIXIL VIVA included in "Revenue from external customers" in the previous consolidated fiscal year was JPY 1,921 million for the Water Technology Business and JPY 2,241 million for the Housing Technology Business. Revenue to LIXIL VIVA included in "Revenue from external customers" in the current consolidated fiscal year was JPY 1,013 million for the Water Technology Business and JPY 1,233 million for the Housing Technology Business.
4. Record of one-time allowance for employees (For the fiscal year ended March 31, 2020)
   To support all employees with unplanned expenses related COVID-19, the Company decided to issue a special one-time allowance of JPY 50,000 or local currency equivalent per person. This one-time allowance for employees is recorded for JPY 3,461 million as other expenses in the Consolidated Statement of profit or loss. (For the fiscal year ended March 31, 2021)
   To support all employees with unplanned expenses related COVID-19, the Company decided to issue a special one-time allowance of USD 200 or local currency equivalent per person. This one-time allowance for employees is recorded for JPY 1,391 million as other expenses in the Consolidated Statement of profit or loss.
5. Business operations classified as discontinued operations are not included.
6. LIXIL Online Business's products mainly handled in the Water Technology business were sold through the Housing and Services business, so the revenue of LIXIL Online Business was included in "Intersegment revenue or transfers" of the Water Technology business and "Revenue from external customers" of the Housing and Services business. From the fourth quarter of the fiscal year ended March 2021, it was included in "Revenue from external customers" of the Water Technology business and the Housing Technology business.
   When the revenue and segment profit related to LIXIL Online Business for the fourth quarter of the fiscal year ended March 2021 are aggregated by the conventional method, "Revenue from external customers" and
   "Segment profit" decreased by JPY 956 million and JPY 100 million, respectively. "Intersegment revenue or transfers" of the Water Technology business increased by JPY 672 million. "Revenue from external customers" and "Segment profit" of the Housing Technology business decreased by JPY 80 million and JPY 8 million, respectively. "Revenue from external customers" and "segment profit" of the Housing and Services business increased by JPY 1,036 million and JPY 108 million, respectively.
   When the revenue and segment profit related to LIXIL Online Business for the consolidated cumulative period for the third quarter of the fiscal year ended March 2021 are aggregated by the changed method, "Revenue from external customers", "Segment profit" of the Water Technology business increased by JPY 2,777 million and JPY
   310 million, respectively. "Intersegment revenue or transfers" of the Water Technology business decreased by JPY
   1,632 million. "Revenue from external customers" and "Segment profit" of the Housing Technology business increased by JPY 303 million and JPY 11 million, respectively. "Revenue from external customers" and "Segment profit" of the Housing and Services business decreased by JPY 3,080 million and JPY 321 million, respectively.

- 16 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Notes on Assets Held for Sale and Liabilities Directly Associated with Assets Held for Sale)

The breakdown of assets held for sale and directly related liabilities associated with assets held for sale in the previous consolidated fiscal year is as follows. In the fiscal year ended March 31, 2020, major items classified to assets held for sale and liabilities directly associated with assets held for sale consist of Permasteelisa S.p.A and its subsidiaries which are classified in discontinued operations. Details of the assets and liabilities related to discontinued operations are as described in "Discontinued Operations" section of the notes.

			(Unit: millions of yen)
	As of March 31,			As of March 31,
	2020			2020
Assets held for sale		Liabilities directly associated with the
	assets held for sale
Cash and cash equivalents	1,301	Trade and other payables		878
Trade and other receivables	2,108	Other current liabilities		41
Inventories	611	Net defined benefit liabilities		359
Property, plant and equipment	310	Liabilities related to discontinued operations		89,876
Assets related to discontinued operations	53,473	Other liabilities		753
Other assets	429
Total	58,232	Total		91,907

- 17 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Notes on Consolidated Statement of Profit or Loss)

For the FY ended March 31, 2020 (April 1, 2019 through March 31, 2020)

1. Impairment losses
   An impairment loss of JPY14,526 million is reported under Other expenses in the Consolidated Statement of Profit or Loss and Comprehensive Income for the fiscal year ended March 31, 2020. Details of impaired assets are as follows:

Category	Segment		Component and Amount (Unit: millions of yen)
Manufacturing facilities for	Water Technology Business		Buildings and structures	384
interior tiles, etc.			Machinery and vehicles	1,676
			Customer-related assets	1,517
			Other	254
			Total	3,831
Manufacturing facilities for	Water Technology Business		Buildings and structures	415
sanitary ware			Machinery and vehicles	1,055
			Land	228
			Goodwill	622
			Other intangible assets	472
			Other	7
			Total	2,799
Manufacturing facilities for	Housing Technology		Machinery and vehicles	915
siding	business		Right of use assets	1,049
			Other	186
			Total	2,150
Manufacturing facilities for	Water Technology Business		Machinery and vehicles	339
faucets, etc.			Tools, Furniture and Fixtures	104
			Trademarks	594
			Other	4
			Total	1,041

The Company recognized impairment losses assets related to manufacturing facilities for interior tiles, etc which is the assets located in United States. Due to sluggish business performance and reduced profitability, the carrying amounts of the relevant assets were written down to their recoverable amounts, and related impairment losses were recorded as other expenses in the consolidated statement of profit or loss. An asset's recoverable amount is measured as its value in use, determined by discounting future cash flows at a discount rate of 11.0%.

The Company recognized impairment losses for assets related to sanitaryware manufacturing facilities which were recorded when LIXIL India Sanitaryware Private Limited became a consolidated subsidiary. Since the profitability of LIXIL India Sanitaryware Private Limited has dropped significantly, the carrying amounts of the relevant assets were written down to their recoverable amounts, and related impairment losses were recorded as other expenses in the consolidated statement of profit or loss. An asset's recoverable amount is measured as its value in use, determined by discounting future cash flows at a discount rate of 13.4%. For goodwill, the Company recognized impairment losses of the entire amount of the total carrying value.

- 18 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

The Company recognized impairment losses for siding manufacturing facilities. Due to sluggish business performance and reduced profitability, the carrying amounts of the relevant assets were written down to their recoverable amounts, and related impairment losses were recorded as other expenses in the consolidated statement of profit or loss. An asset's recoverable amount is measured as its value in use, determined by discounting future cash flows at a discount rate of 5.3%.

The Company recognized impairment losses for manufacturing facilities for faucets, etc. which are assets of LIXIL Africa. Due to sluggish business performance and reduced profitability, the carrying amounts of the relevant assets were written down to their recoverable amounts, and related impairment losses were recorded as other expenses in the consolidated statement of profit or loss. An asset's recoverable amount is measured as fair value less disposal costs, determined by discounting future cash flows at a discount rate of 11.3%.

In the fiscal year ended March 31, 2020, the Company recognized impairment losses for the assets described below. These impairment losses were recorded in loss from discontinued operations in the consolidated statement of profit or loss.

Category	Segment	Component and Amount (Unit: millions of yen)
Retail stores	Distribution and Retail	Buildings and structures	334
	Business	Right of use assets	2,432
		Other	27
		Total	2,793

Due to sluggish business performance and reduced profitability, the carrying amounts of the relevant assets were written down to their recoverable amounts, and related impairment losses were recorded as other expenses in the consolidated statement of profit or loss. An asset's recoverable amount is measured as its value in use, determined by discounting future cash flows at a discount rate of 4.7%.

(2) Career Option Program

(Notes on the recording of expenses for "Career Option Program")

The Company is working to enhance their personnel systems to support multigenerational career planning, expand development opportunities, and shift to a meritocracy based system. As part of this initiative, the Board of Directors resolved to implement a "Career Option Program" where permanent employees of the Group working in Japan who have reached a certain age with certain duration of service will be able to select the option of pursuing opportunities outside the company before the usual statutory retirement age. Regarding premium retirement allowance and the outplacement service expenses related to the "Career Option Program", they are recorded as cost of sales and selling, general and administrative expenses in the Consolidated Statement of profit or loss for the fiscal year ended March 31, 2020 as follows.

Component and Amount (Unit: millions of yen)
Cost of sales	805	million yen
Selling, general and administrative expenses	4,738	million yen
Total	5,543	million yen

- 19 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

For the FY ended March 31, 2021 (April 1, 2020 through March 31, 2021)

1. Impairment losses
   An impairment loss of JPY 8,840 million is reported under Other expenses in the Consolidated Statement of Profit or Loss and Comprehensive Income for the fiscal year ended March 31, 2021. Details of impaired assets are as follows:

Category	Segment		Component and Amount (Unit: millions of yen)
Manufacturing facilities for	Building Technology Business		Buildings and structures	434
building window sashes, etc.			Machinery and vehicles	2,171
			Tools, Furniture & Fixtures	102
			Other	41
			Total	2,748
Other	Housing Technology business		Goodwill	1,882

The Company recognized impairment losses assets related to manufacturing facilities for building window sashes, etc which is the assets located in Japan. Due to sluggish business performance and reduced profitability, the carrying amounts of the relevant assets were written down to their recoverable amounts, and related impairment losses were recorded as other expenses in the consolidated statement of profit or loss. An asset's recoverable amount is measured as its value in use, determined by discounting future cash flows at a discount rate of 4.5%.

Goodwill is related to Kawashima Selkon Textiles Co., Ltd., which was a consolidated subsidiary of the Company. Due to sluggish business performance and reduced profitability, the carrying amounts of the relevant assets were written down to their recoverable amounts, and related impairment losses were recorded as other expenses in the consolidated statement of profit or loss. An asset's recoverable amount is measured as its value in use, determined by discounting future cash flows at a discount rate of 6.8%. In the current consolidated fiscal year ended March 2021, 100% of Kawashima Selkon Textile's shares were transferred. The outline of the share transfer is as described in (Note on Transfer of Consolidated Subsidiary).

- 20 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

1. Implementation of Voluntary Retirement Program "New Life"
   The Company aims to transform its Japan business into a more entrepreneurial and sustainable enterprise in the future. Building on initiatives already taken under Kawaranaito LIXIL ("LIXIL, We Must Change"), a comprehensive HR program launched in Japan in the fall of 2019, and to accelerate the speed of transformation, the Board of Directors resolved to implement the "New Life Voluntary Retirement

Program" (hereinafter "New Life") in the Company on October 30, 2020.

1) Background

The Japan business currently represents approximately 70% of the Company's total business. It is also the key driver of innovation that supports LIXIL's global portfolio of brands and businesses.

The business environment surrounding the Company and its subsidiaries in Japan, however, is changing with a rapidly shrinking market for new homes. At the same time, changing consumer trends and digitalization are disrupting traditional business models. To succeed, the Company recognizes the need to transform its business structure, become meritocratic, and establish an agile culture that supports innovation and entrepreneurship. The Company believes it is important to act now, to accelerate the speed of the transformation and ensure the Company can provide strong support to employees. The Company and its subsidiaries expect these changes to strengthen the growth potential and sustainability of its operations in Japan and internationally, enhancing overall stakeholder returns.

2) Eligibility

Permanent employees of LIXIL Corporation aged 40 and over, who have worked as an employee of LIXIL Corporation for ten consecutive years or more as of the effective date. (This excludes employees working at factories (other than working in HR, Administration and Accounting Departments), Distribution Centers and the Digital Division.)

3) Application Period

From January 12, 2021 to January 22, 2021

1. Number of voluntary retirement applicants 965 employees applied.
2. Effective Date of Retirement

March 25, 2021

6) Preferential Conditions

• A premium will be added on to the normal retirement allowance of eligible applicants
• In addition, eligible applicants will also have the option to receive outplacement services 7) Financial impact for Profit or Loss
  Loss on early retirement related payments of JPY 13,563 million were recorded in other expenses in the consolidated statement of profit or loss.

- 21 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Information per share)

	FY ended	FY ended
	March 31, 2020	March 31, 2021
	Million yen	Million yen
Profit for the year attributable to owners of the parent from		28,522		16,363
continuing operations
Profit (loss) for the year attributable to owners of the parent from	-16,004		16,685
discontinued operations
Profit for the year attributable to owners of the parent		12,518		33,048
Profit adjusted for the effect of dilution from continuing operations		234		148
Profit adjusted for the effect of dilution from discontinued operations		-		-
Diluted profit for the year		12,752		33,196
		Shares		Shares
Weighted-average number of ordinary shares outstanding	290,101,544	290,110,459
Increase in weighted-average number of ordinary shares due to dilution
Increase from stock options		-		-
Increase of convertible bonds with stock acquisition rights	31,515,607	16,014,519
Diluted weighted-average number of ordinary shares	321,617,151	306,124,978
		Yen		Yen
Basic earnings (loss) per share
Continuing operations		98.32		56.41
Discontinued operations		-55.17		57.51
Total		43.15		113.92
Diluted earnings (loss) per share
Continuing operations		89.41		53.94
Discontinued operations		-49.76		54.50
Total		39.65		108.44
	thousand shares	thousand shares
Diluted potential ordinary shares not included in the calculation	5th stock options	1,988	7th stock options	1,973
of diluted earnings per share because their inclusion would have	7th stock options	2,389	8th stock options	41
been anti-dilutive	8th stock options	41	9th stock options	300
9th stock options	300	( The class is ordinary shares )
	( The class is ordinary shares )

- 22 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Note on Transfer of Consolidated Subsidiary)

For the FY ended March 31, 2020 (April 1, 2019 through March 31, 2020) Transfer of Shares of Ken Depot Corporation

• Main reason for the transfer

Ken Depot Corporation is expanding its membership-based wholesale building materials stores for professional users of housing-related materials, "Ken Depot", around the Tokyo metropolitan area. The Company launched the Ken Depot business in 2009, and in 2015, carved out the Ken Depot business from LIXIL Corporation, (absorbed company mergerd on December 1, 2020) and established Ken Depot Corporation. With capital participation of the fund in which Unison Capital Inc., which has extensive experience in supporting the growth of companies and helping them become independent from large corporate groups, operates or acts as an advisor (hereinafter "Unison Capital"), Ken Depot became an equity-method affiliate of the Company.

At this time, as a result of the discussion between Unison Capital and LIXIL Corporation, both companies decided to transfer all of the shares of Ken Depot Corporation held. The Company is focused on optimizing its business portfolio in line with broader steps to enhance operational efficiency and strengthen financial conditions. This share transfer is also in line with the Company's ongoing efforts to simplify the business structure and enabling further synergies and efficiencies.

• Name of the transferee company and date of share transfer

	Name of the transferee company	KOHNAN SHOJI CO., LTD.
	Date of share transfer	June 3, 2019
③ The name, major business, and segment of a company that LIXIL Group sold off
	Name of the equity-method affiliate	Ken Depot Corporation
		Management of membership-based wholesale building
	Major Business	materials stores for professional users of housing-related
		materials, "Ken Depot"
	Segment	Distribution & Retail business
④ Overview of the transfer
	Number of shares held before the	Common shares : 21,698,181 shares
		(Shareholder voting rights: 34.00%)
	transfer
	Type A shares	: 36,001,819 shares
	Number of shares transferred	Common shares : 21,698,181 shares
	Type A share	: 36,001,819 shares
	Number of shares held after the	Common shares : - shares
		(Shareholder voting rights: - %)
	transfer
	Type A shares	: - shares
	Received amount	JPY 12,938 million
		The Company has recorded JPY 10,977 million in gain on
		disposal of interests in an affiliated company in the
	Gain on share transfer	consolidated statement of profit or loss for the fiscal year
		ending March 31, 2020.

- 23 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

For the FY ended March 31, 2021 (April 1, 2020 through March 31, 2021)

(1) Transfer of Shares of Kawashima Selkon Textiles Co., Ltd.

The Company resolved at the Board of Directors Meeting held on November 24, 2020, that it has decided to sell 100% of its shares in Kawashima Selkon Textiles Co., Ltd. ("Kawashima"), a consolidated subsidiary of the Company, to Kawashima via a buy- back transaction, and signed off on the share transfer agreement on the same date. The share transfer was executed on January 6, 2021.

• Main reason for the transfer

The Company acquired a 34% ownership stake in Kawashima by underwriting a capital increase through third-party allotment in December 2010 and acquired the remaining 66% ownership stake in August 2011 through a share exchange, which led it to become a 100% subsidiary. The aim was to stabilize Kawashima's business profits and financial base, pursue synergies in terms of sales and reduce costs by building an efficient system for collaboration in logistics and indirect operations.

Recently, the Company received from Kawashima an offer of a management buyout (MBO) by the current management, who have deep understanding of the cultural, commercial, and technical value of Kawashima, in order for Kawashima to accelerate the speed of its business growth and to enhance its productivity and efficiency. Kawashima also plans challenge new designs and develop manufacturing techniques for next generations based on their manufacturing traditions. Since the proposal, the Company and Kawashima have been discussing and considering it.

As a result, since the offer from Kawashima is in line with the management direction of the Company to transform its operations (i.e., to strengthen governance, focus on core businesses to improve productivity and efficiency, promote synergies between businesses, and optimize business portfolio to strengthen future growth and financial position), the Company decided to transfer all of its shares to Kawashima to dissolve the capital tie-up.

• Name of the transferee company and date of share transfer

Name of the transferee company	Kawashima Selkon Textiles Co., Ltd.
Date of share transfer	January 6, 2021
③ Name of the transferred company, major business and segment
Name	Kawashima Selkon Textiles Co., Ltd.
Major Business	[Interior Decoration/Fabrics]
	Production and distribution of curtain, carpet, wall-covering, interior
	accessories and stuff, interior finish work
	[Traditional and Artistic Textiles]
	Obi, stage curtain, festival float curtain, traditional accessories and stuff
Segment	Housing Technology Business

④ Overview of the transfer
Number of shares held before the transfer	141,877,506 shares (Shareholding ratio: 100%)
Number of shares transferred	141,877,506 shares
Number of shares held after the transfer	No share ( - % )
Received amount	Transfer price shall be undisclosed pursuant to duty of confidentiality in
the share transfer agreement
	The Company has recorded ¥ 5,405 million in Loss recognized on the measurement
Gain or loss on share transfer	to fair value, less costs to sell the disposal group held for sale in the consolidated
statement of profit or loss for the year ended March 31, 2021.

- 24 -

LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(2) Transfer of Shares of Japan Home Shield Corporation

The Company reached an agreement with MCP5 Investment Business Limited Liability Partnership, a fund whose management is entrusted to Mizuho Capital Partners Co., Ltd. ("Mizuho Capital Partners"), to transfer 100% of the issued common stock of Japan Home Shield Corporation ("Japan Home Shield") held by LIXIL Living Solution Corporation ("LIXIL Living Solution"), a wholly-owned subsidiary of LIXIL, subject to customary closing conditions and regulatory approvals, and signed off on the share transfer agreement. The transfer of shares was carried out on March 9, 2021.

• Main reason for the transfer

LIXIL aims to become an entrepreneurial company that can achieve sustainable growth and contribute to society by making better homes a reality for everyone, everywhere. To achieve this aim, LIXIL and its group companies are taking steps to transform its operations, including strengthening governance, focusing on actively managing its core businesses to enhance productivity and efficiency, driving synergies across its core business areas, as well as optimizing its business portfolio to accelerate growth and strengthen financial conditions.

As a leading company in geotechnical investigation for homes and home inspection, Japan Home Shield has covered a cumulative total of more than 1.8 million units in geotechnical investigation and 200,000 houses in home inspection since its establishment. Given the housing law changes and frequent natural disasters in recent years, the environment for housing is changing. Japan Home Shield has continued to listen to the voice of customers and achieved sustainable growth by improving its technology and services and offering new services such as foundation design.

For Japan Home Shield to aim for dramatic growth along with the expansion of the industry overall, and to further grow beyond its current business, LIXIL and Japan Home Shield have come to the decision that it is necessary to separate Japan Home Shield from LIXIL so that it can receive support from a new owner to further strengthen its business. As a result of mutual discussion, it was determined that the best path forward for Japan Home Shield was to partner with Mizuho Capital Partners for its know- how, network, and resources, and to establish an even stronger business foundation by receiving business and financial support from Mizuho Capital Partners.

LIXIL is proceeding with various initiatives to reform its business operations, and believes that the Share Transfer is in line with the Company's direction of aiming to create further synergies and improve efficiency by simplifying its business structure and integrating the organizations.

For the reasons described above, LIXIL has decided to transfer all common shares of Japan Home Shield held by LIXIL through LIXIL Living Solution.

• Name of the transferee company and date of share transfer

Name of the transferee company	MCP Partners Co., Ltd. outsourced by Mizuho Capital Partners Co., Ltd.
Date of share transfer	March 9, 2021
③ Name of the transferred company, major business and segment
Name	Japan Home Shield Corporation
Major Business	Geotechnical investigation and related business, geotechnical reinforcement,
geological survey, home inspection
Segment	Housing & Services Business
④ Overview of the transfer
Number of shares held before the transfer	2,000 shares (Shareholding ratio: 100%)
Number of shares transferred	2,000 shares
Number of shares held after the transfer	No share ( - % )
Received amount	Transfer price shall be undisclosed pursuant to duty of confidentiality in
the share transfer agreement
Gain or loss on share transfer	JPY 9,269 million was recognized as other income in the consolidated statement of
profit or loss for the year ended March 31, 2021.

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(Note on Discontinued Operations)

For the FY ended March 31, 2021 (April 1, 2020 through March 31, 2021)

(1) Transfer of Shares of Permasteelisa S.p.A.

The Company resolved at the Board of Directors Meeting held on May 1, 2020 that it has decided to sell 100% of the shares of Permasteelisa S.p.A ("Permasteelisa") held by its subsidiary LIXIL Corporation (extinguished due to absorption-type merger with the Company as the surviving company on December 1, 2020) to Atlas Holdings LLC ("Atlas"), and signed off on the share transfer agreement on the same date. The share transfer was executed on September 30, 2020.

• Main reason for the transfer

The Company's aim is to be an entrepreneurial company that can achieve sustainable competitiveness and growth in order to fulfill its corporate purpose to contribute to society by making better homes a reality for everyone, everywhere. To achieve this aim, the company is taking steps to transform its operations, including strengthening governance, focusing on actively managing its core businesses to enhance productivity and efficiency, driving synergies across its core business areas, as well as optimizing its business portfolio to accelerate growth and strengthen financial conditions. The transaction is in line with the Company's efforts to focus on its core businesses and simplify its business structure, enabling further synergies and efficiencies through enhanced integration.

Permasteelisa is a global leader in the engineering, project management, manufacturing and installation of curtain walls and interior systems, with high-end curtain walls positioned at the core of its business. Over its history, the company has established a solid position in markets around the world, including Europe, Asia and North America. However, despite being a world-class brand, Permasteelisa has encountered significant operational and financial challenges in recent years, requiring the Company and Permasteelisa to implement a comprehensive plan to revitalize the business and return it to growth and stability.

Permasteelisa's operations are also significantly different to those of the Company's core business operations in terms of business cycles and other factors. Therefore, the sale of Permasteelisa will allow the Company to further concentrate investing resources in driving synergies across its core businesses, consider investments in new and profitable growth areas to further enhance our core operations, as well as simplify and eliminate its ongoing exposure to different types of risks.

For these reasons, the Company has concluded the contract to transfer 100% of its shares of Permasteelisa to Atlas, an industrial holding company based in the U.S., which together with its affiliates operates a diversified group of manufacturing, distribution and construction businesses.

• Name of the transferee company and date of share transfer

Name of the transferee company	Atlas Holdings LLC
Date of share transfer	September 30, 2020
③ Name of the transferred company, major business and segment
Name	Permasteelisa S.p.A
Major Business	Designing, production and installation for curtain walls and interiors
Segment	Building Technology Business

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	LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021
④ Overview of the transfer
Number of shares held before the transfer	25,613,544 shares (Shareholding ratio: 100%)
Number of shares transferred	25,613,544 shares
Number of shares held after the transfer	No share ( - % )
	This will not be disclosed due to the strong intention of the other party,
Received amount	but the share transfer price was determined through negotiations with
	the other party after a fair process.
	-For certain disputes involving Permasteelisa occurring prior to the date of the share
	transfer, a LIXIL group company is obligated to indemnify the loss incurred by
	Permasteelisa on or after the date of the share transfer. The contingent liability in
	this regard is 31 million euros (JPY 4.035 billion) for the year ended March 31, 2021.
	-If the revitalization plan is executed by Permasteelisa on or after the date of the
	share transfer, the LIXIL group is liable to compensate the costs incurred in
Relationship with LIXIL after the share	implementing the revitalization plan that the LIXIL group considers necessary for the
transfer	implementation of the plan. The contingent liability in this regard is 10 million euros
	(JPY 1.298 billion) for the year ended March 31, 2021.
	-Before the share transfer date, the LIXIL group paid a certain amount of capital, of
	which up to 100 million euros (JPY 12.980 billion) will be recovered depending on
	the cash flow status of Permasteelisa between the date of the share transfer and the
	end of the following fiscal year.

• Assets and Liabilities related to discontinued operations
  The breakdown of assets and liabilities related to discontinued operations for the fiscal year ended March 31, 2020 are as follows. Since the share transfer was completed on September 30, 2020, there are no assets and liabilities related to discontinued operations applicable as of March 31, 2021.

			(Unit: millions of yen)
	As of March 31,			As of March 31,
	2020			2020
Assets related to discontinued operations		Liabilities related to discontinued operations
Cash and cash equivalents	6,990	Trade and other payables		30,776
Trade and other receivables	19,865	Lease liabilities (current)		1,694
Inventories	2,170	Contract liabilities		37,715
Contract assets	13,726	Other financial liabilities (current)		1,601
Other financial assets (current)	3,007	Provisions (current)		5,435
Other current assets	4,825	Other current liabilities		1,783
Deferred tax assets	2,864	Lease liabilities (non-current)		2,972
Other assets	26	Net defined benefit liabilities		3,633
		Provisions (non-current)		1,929
		Deferred tax liabilities		1,670
		Other liabilities		668
Total	53,473	Total		89,876

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

• Profit or loss from discontinued operations

(Unit: millions of yen)

	FY ended	FY ended
	March 31, 2020 March 31, 2021
Revenue	139,688	49,674
Loss recognized on the measurement to fair value, less costs to sell	-53,983	-
the disposal group related to discontinued operations
Other profit and loss	-155,878	-55,296
Loss before tax from discontinued operations	-70,173	-5,622
Income tax expenses (Note)	51,912	754
Loss for the year from discontinued operations	-18,261	-4,868

(Note) Income tax expenses for the fiscal year ended March 31, 2020 include the impact of JPY 16,054 million for loss recognized on the measurement to fair value, less costs to sell the disposal group related to discontinued operations.

⑦ Cash flows from discontinued operations	(Unit: millions of yen)
	FY ended	FY ended
	March 31, 2020	March 31, 2021
OPERATING ACTIVITIES	-15,857	-1,857
INVESTING ACTIVITIES	6	-54,970
FINANCING ACTIVITIES	-1,986	-1,192
Total	-17,837	-58,019

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

(2) Transfer of Shares of LIXIL VIVA Corporation

Based on the resolution at the Board of Directors Meeting held on June 9, 2020, the Company signed a memorandum ("Memorandum") with Arcland Sakamoto Co., Ltd. ("Arcland Sakamoto") and LIXIL VIVA Corporation ("LIXIL VIVA"), a subsidiary of the Company, as well as an agreement ("Agreement") with Arcland Sakamoto regarding a series of transactions including: a cash tender offer scheduled to be conducted by Arcland Sakamoto for the ordinary shares of LIXIL VIVA ("Tender Offer"); a reverse share split of the ordinary shares of LIXIL VIVA; a transfer of the shares held by the Company via buy-back by LIXIL VIVA ("Share Transfer"), through which LIXIL VIVA becomes a wholly owned subsidiary of Arcland Sakamoto; and other transactions incidental or related to those transactions (collectively, "Transaction"). After the conclusion of the agreement, through the necessary procedures for the transfer of shares, the Share Transfer was completed on November 9, 2020.

• Main reason for the transfer

The Company's aim is to be an entrepreneurial company that can achieve sustainable competitiveness and growth in order to fulfill its corporate purpose to contribute to society by making better homes a reality for everyone, everywhere. To achieve this aim, the Company is taking steps to transform its operations, including strengthening governance, focusing on actively managing its core businesses areas, enabling further synergies, as well as optimizing its business portfolio to accelerate growth and strengthen financial conditions.

The transaction is in line with the Company's efforts to focus on its core businesses and simplify its business structure, enabling further synergies and efficiencies through enhanced integration.

LIXIL VIVA operates home improvement centers that provide a wide range of housing related merchandise, materials and renovation services. LIXIL VIVA has established a solid position in the industry thanks to its strengths, particularly its offering of a wide variety of merchandise necessary for renovations via its vast store space, which can provide business customers with one-stop service. LIXIL VIVA, however, has been facing a challenging business environment with intensifying competition in the retail home improvement center industry caused by a decrease in the number of customers due to population decline in Japan, changes in consumer behavior, and shifts in the channel landscape with the expansion of drugstores, e-commerce, and so forth.

The business of LIXIL VIVA is distribution and retail business which differs from the Company's core business. Therefore, the Share Transfer will enable the Company to invest its resources not only in its core businesses to drive synergies across those businesses, but also in new and profitable growth businesses, which will lead to further business efficiency. In addition, although LIXIL VIVA has been operationally independent from the Company, its independence in terms of the capital ties following the Share Transfer will support the Company in strengthening business relations with other home improvement center operators, which are important customers to the Company, as a more independent supplier.

• Description of the tender offer and methods of share transfer

The Company conducted an auction process in which the Company invited a wide range of potential candidates to acquire the ordinary shares of LIXIL VIVA, in order to select the most appropriate candidate for the Company, LIXIL VIVA and the minority shareholders of LIXIL VIVA. After thorough consideration, Arcland Sakamoto was selected as the transferee based on its superiority in terms of maximizing economic value for the Company and the certainty of completing the sale, including finance ability among others. LIXIL VIVA also concluded that the proposal received from Arcland Sakamoto was superior for LIXIL VIVA and its shareholders after examining comprehensively and carefully the evaluated equity value, the direction of the business strategy after the Transaction, and other factors in the proposal. Subsequently, Arcland Sakamoto, LIXIL VIVA and the Company began negotiations, and on June 9, 2020, the Board of Director's Meeting resolved to transfer all ordinary shares of LIXIL VIVA held by the Company to LIXIL VIVA through the Share Transfer and signed off on the Memorandum and the Agreement on the same date.

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

The Transactions are comprised of three conditions;

1. ensuring that the only shareholders of LIXIL VIVA are the Company and the tender offeror (Arcland Sakamoto) via the Tender Offer, or through a stock consolidation conducted by LIXIL VIVA ("Stock Consolidation") in the event the tender offeror is unable to acquire all of the LIXIL VIVA shares (excluding, however, the LIXIL VIVA shares owned by the tender offeror, the untendered shares owned by the Company, as well as the treasury stock owned by LIXIL VIVA) via the Tender Offer;
2. for the purpose of securing the funding and distributable amount needed for the acquisition of LIXIL VIVA treasury stock defined in c); (i) having the tender offeror provide LIXIL VIVA with funding that can be directed toward the consideration for the acquisition of LIXIL VIVA treasury stock; and (ii) conducting reductions in capital, capital reserves and profit reserves of LIXIL VIVA ((Note 1) "Reduction in Capital, etc.") in accordance with Paragraph 1 of Article 447 and Paragraph 1 of Article 448 of the Companies Act; and
3. the acquisition of treasury stock among the untendered shares owned by the Company as implemented by LIXIL VIVA, conditioned on both the realization of the Tender Offer as well as the effect of the Stock Consolidation.

The ultimate purpose of the transactions is to make LIXIL VIVA the wholly-owned subsidiary of the tender offeror.

• Name of the transferee company and date of share transfer

Name of the transferee company	LIXIL VIVA Corporation
Date of share transfer	November 9, 2020
④ Name of the transferred company, major business and segment
Name		LIXIL VIVA Corporation
Major Business	Home Improvement Center Operation, Renovation, VCs , Real-Estate Development
Segment		Distribution and Retail business
⑤ Overview of the transfer
Number of shares held before the transfer	6 shares (Note)
Number of shares transferred	6 shares
Number of shares held after the transfer	No share ( - % )
Received amount	JPY 56,619 million
		Following the sale of the subsidiary, a gain of JPY 16,494 million was recorded in
Gain on share transfer	the quarterly profit from discontinued operations of the Consolidated Statement
		of Profit or Loss
Note:	LIXIL VIVA conducted a share consolidation, reducing 3,894,550 pre-consolidation shares to one post-
	consolidation share, effective October 22, 2020.

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

⑥ Assets and Liabilities related to discontinued operations

Since the Share Transfer was completed on November 9, 2020, there are no assets and liabilities related to discontinued operations applicable as of March 31, 2021.

Note : Details of the assets and liabilities of LIXIL VIVA Corporation on the consolidated financial statements for the year ended March 31, 2020 are as follows. Balance of non-controllinginterests related to LIXIL VIVA is JPY 29,526

million.

(Unit: millions of yen)

	As of March 31,		As of March 31,
	2020		2020
Assets		Liabilities
Cash and cash equivalents	10,027	Trade and other payables	42,550
Trade and other receivables	4,470	Bonds and borrowings (current)	4,000
Inventories	42,760	Lease liabilities (current)	15,593
Other financial assets (current)	1,539	Contract liabilities	1,469
Other current assets	416	Income tax payables	1,455
Property, plant and equipment	80,426	Other current liabilities	4,599
Right of use assets	154,377	Bonds and borrowings(non-current)	30,000
Goodwill and other intangible assets	2,104	Lease liabilities (non-current)	158,580
Investment property	3,082	Other financial liabilities (non-current)	6,958
Other financial assets (non-current)	28,801	Provisions (non-current)	2,384
Deferred tax assets	2,241	Other non-current liabilities	1,081
Other non-current assets	2,539	Other liabilities	180
Other assets	169
Total	332,951	Total	268,849

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LIXIL Corporation (TSE Code 5938) Results for the FY Ended March 2021

• Profit or loss from discontinued operations

(Unit: millions of yen)

	FY ended	FY ended
	March 31, 2020	March 31, 2021
Revenue	179,990	113,391
Gain on sale of subsidiaries	－	16,494
Other profit and loss	-174,088	-98,772
Profit before tax from discontinued operations	5,902	31,113
Income tax expenses (Note)	-1,697	-5,026
Profit for the quarter from discontinued operations	4,205	26,087

(Note) Income tax expenses for the current consolidated cumulative period include expenses of JPY 546 million for gains on the sale of subsidiaries.

• Cash flows from discontinued operations

(Unit: millions of yen)

	FY ended	FY ended
	March 31, 2020	March 31, 2021
OPERATING ACTIVITIES	27,362	18,664
INVESTING ACTIVITIES	-10,398	37,789
FINANCING ACTIVITIES	-13,124	-10,452
Total	3,840	46,001

(Notes on significant subsequent events) None

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