LIXIL : Financial Results for the Fiscal Year Ended March 31, 2021(IFRS) (From April 1, 2020, to March 31, 2021)

Financial Results for the Fiscal Year Ended March 31, 2021 (IFRS)

(From April 1, 2020, to March 31, 2021)

TSE Code: 5938

LIXIL Corporation

(Trade name changed from LIXIL Group Corporation on Dec 1, 2020)

April 30, 2021

Copyright © LIXIL Corporation. All rights reserved.

LIXIL TRANSITIONED TO IFRS FROM FYE2016
CHANGE IN PROFIT LEVEL STRUCTURE IS AS SHOWN BELOW
JGAAP	IFRS (LIXIL Financial Reporting)
	Continuing Operations
Net sales	Revenue
Cost of sales	Cost of sales
Gross profit	Gross Profit
SG&A	SG&A
Operating profit	Core earnings (CE)
Non-operating income/expenses	Other income/expenses
Ordinary income	Operating profit
Extraordinary income/losses	Finance income/costs
	Share of profit (loss) for using the equity method
Profit before income taxes	Profit before tax
	Net profit for Continuing Operations
	Discontinued Operations
	Net Profit for Discontinued Operations
Net profit attributable to	Net profit attributable to
Non-controlling interests	Owners of the parent
Owners of the parent	Non-controlling interests

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

As disclosed in "Notice of Transfer of Consolidated Subsidiary (Share Transfer)" on May 1 and June 9, 2020, business operations of
Permasteelisa S.p.A. and its subsidiaries and LIXIL VIVA are classified as "discontinued operations". The same period in the previous	2
year is restated for comparison purposes.

PERFORMANCE HIGHLIGHTS

Summary of results for the fiscal year ended March 2021

• In line with earnings forecast(1). Core earnings, operating profit, and net profit(2) increased year-on-year
• Gross margin improved by 0.9pp and core earnings margin increased to 4.2%, up by 0.7pp year-on-year. Productivity improvements and cost control efforts under COVID-19 situation resulted in reduced SG&A expenses and gross margin improvement
• Net interest-bearing debt decreased by JPY 252.2 billion. Equity ratio increased to 31.7%, up by 7.7pp year-on-year
• Based on the progress of structural reforms in FYE2021 and business development outlook, we will increase year-end dividend by 5 yen and expect annual dividend of 75 yen per share

Outlook for the fiscal year ending March 2022

 Forecasting sales revenue of JPY 1,440 billion and core earnings of JPY 80 billion (CE margin 5.6%). Business risks include potential delays in recovery of new housing starts in Japan due to a scarcity of wooden materials supply

 Continue to invest resources in intangible assets such as digital, brand and design, and in multi-dimensional approach to market (category x region x sales channel) to promote international business

 Expect to increase dividend by 5 yen and expect annual dividend of 80 yen per share

(1) Reference: "Announcement of Upward Revision of Consolidated Financial Forecast for the Fiscal Year Ending March 2021", disclosed on

Feb. 5, 20213

(2) Net profit = Profit attributable to owners of the parent

IMPACT OF COVID-19

Status of Operations (as of April 26, 2021(1)）

Production

・ All factories and distribution centers operational

Procurement

・ No significant operational issues, however, experiencing heightened cost inflation and potentially shortage situations for certain inputs

Sales

International

・ Increased year-on-year in Europe and China (annual basis) ・ Strong recovery of sales in China in Q4 due to demand

rebound after economy stagnated last year following COVID-19 lockdown

・ Q4 decline in sales in Americas due to high prior year base, however, increase quarter-on- quarter fueled by continued strong demand

Japan

・ Both new housing and renovation markets are on a recovery trend

Potential business risks in FYE2022

・ Lockdowns affecting market demand and potentially disrupting supply chains

・ Shortage of sea freight capacity, wood supply and further increase in other key raw material prices

Quarterly sales status by region (YoY)

40%	Q1	Q2	Q3	Q4
30%				34%
20%
10%				13%
0%				3%
-7%			-2%
-10%			-10%
-12%
-20%	-15%
-20%

-30%-31%-40%

Japan Americas EMEA China Asia Pacific

Apr-Mar: Results (on a management basis)

1. Updated from "Notification Regarding the Schedule for Announcement of Consolidated Financial Results for the Fiscal Year Ended March 31, 2020, and LIXIL Group's Response to the Spread of COVID-19" announced on May 1, 2020, and "Q3 Results for the Fiscal Year Ending March 31,4 2021(IFRS) " announced on February 5, 2021

KEY HIGHLIGHTS

Profits increased year-on-year, in line with the full-year forecast. Year-end dividend forecast revised upward

• Revenue: JPY 1,378.3 billion, decreased 9% year-on-year
• 
  ・ Decreased 11% year-on-year in Japan and 3% in international markets
• Core earnings: JPY 57.3 billion, increased 10% year-on-year
• • Driven by core businesses (Water Technology and Housing Technology)
  • Increased due to productivity improvements and cost control efforts under COVID-19 situation resulting in reduced SG&A expenses and improved gross margin from higher sales ratio of renovation-related products
• Net profit(1) : JPY 33.0 billion, increased JPY 20.5 billion year-on-year
• • Increased due to business recovery from Q3 and progress of structural reforms
• Year-enddividend forecast: increase by 5 yen from the previous forecast and revise it to 40 yen(2)
• • Annual dividend per share will be 75 yen together with the interim dividend (FYE2020: 70 yen)

(1) Net profit = Profit attributable to owners of the parent for the quarter

(2) Reference: "Announcement Regarding Revision of the Dividend Forecast (Dividend Increase) for the Fiscal Year Ended March 2021",5 disclosed on Apr. 30, 2021

FYE2021 CONSOLIDATED BUSINESS RESULTS

Continuing Operations
Discontinued
Including	Operations
Continuing	Operations

		Q4 12 months(4)			Q4 3 months(4)
	FYE2020	FYE2021	Increase/	%	FYE2020	FYE2021	Increase	%
JPY billion	decrease	/decrease
Revenue	1,514.4	1,378.3	-136.2	-9.0%	365.3	342.7	-22.5	-6.2%
Gross Profit	502.6	469.2	-33.4	-6.6%	117.9	119.3	1.4	1.2%
(%)	33.2%	34.0%	+0.9pp	-	32.3%	34.8%	+2.5pp	-
SG&A	450.3	411.9	-38.4	-8.5%	118.1	107.2	-10.9	-9.2%
Core Earnings(1)	52.3	57.3	5.0	9.6%	-0.2	12.1	12.2	-
(%)	3.5%	4.2%	+0.7pp	-	-	3.5%	+3.6pp	-
Net Profit including
Discontinued	12.5	33.0	20.5	164.0%	-18.2	-5.6	12.5	-
Operations (2)
EPS (Yen)	43.15	113.92	70.77	164.0%	-62.64	-19.42	43.22	-
EBITDA(3)	134.8	137.9	3.1	2.3%	20.3	32.0	11.7	57.6%
(%)	8.9%	10.0%	+1.1pp	-	5.6%	9.3%	+3.8pp	-

■ Q4 (3 months) core earnings margin improved by 3.6pp year-on-year

・Gross profit margin: improved by 2.5pp due to pricing adjustments and improvement of sales mix through increase of renovation sales ratio

・SG&A ratio: improved by 1.0pp due to reduced SG&A expenses from progress of productivity improvements ■ Overall SG&A expenses reduced by JPY 38.4 billion in FYE2021 (12 months) (Q1: 9.1bn, Q2: 9.5bn, Q3: 8.9bn , Q4: 10.9bn)

1. Equivalent to "Operating profit" of JGAAP
2. Profit attributable to owners of the parent for the quarter/year
3. EBITDA=Core earnings + Depreciation

(4) Previous reporting period was restated by the classification of	6
Permasteelisa and LIXIL VIVA's operating results under "Discontinued
operations" due to the decision to divest

Q4 FYE2021 BUSINESS RESULTS BY SEGMENT

Core businesses drove CE increase

			Q4 12 months(1)			Q4 3 months(1)
			FYE2020	FYE2021	Increase/	FYE2020	FYE2021		Increase/
		JPY billion	decrease		decrease
LWT		Revenue	828.5	783.8	-44.7	204.9	206.4		1.5
	CE	61.5	62.1	0.6	9.3	15.8		6.5
LHT		Revenue	542.2	474.3	-67.9	125.1	108.1		-16.9
	CE	28.3	31.4	3.1	1.7	5.5		3.8
LBT		Revenue	112.8	93.4	-19.4	27.3	22.6		-4.7
	CE	2.7	2.6	-0.1	1.1	1.8		0.8
H&S		Revenue	54.0	46.6	-7.5	13.4	9.7		-3.8
	CE	3.0	2.1	-0.8	0.3	0.2		-0.1
Consolidation	Revenue	-23.1	-19.8	3.3	-5.4	-4.1		1.4
adj. & other	CE	-43.2	-41.0	2.1	-12.5	-11.2		1.3
LIXIL		Revenue	1,514.4	1,378.3	-136.2	365.3	342.7		-22.5
	CE	52.3	57.3	5.0	-0.2	12.1		12.2

Forex impact︓
Q4	12 months: Revenue -1.3 billion, Core earnings +0.5 billion
Q4	3 months: Revenue +3.0 billion, Core earnings +0.5 billion
	(1) Permasteelisa S.p.A and LIXIL VIVA's business is classified as "discontinued operations" due to the decision to divest. For comparison, previous	7
	reporting period is also rearranged in the same way

CONSOLIDATED FINANCIAL POSITION

Equity ratio improved by 7.7pp from 24.0% in FYE2020 to 31.7%. Net debt/EBITDA improved to 3.5x, down by 2.0 due to a decrease of JPY 252.2billion in Net interest- bearing debt

Assets

Liabilities and Equities

(JPY billion)

			-349.7
			(impact from
	Current assets		the divestment
		of major
	742.8		subsidiaries(1)		Current assets
			is -386.4)
					637.8
	Non-current				Non-current
	assets				assets
	1,348.7				1,104.0
	Mar前期-2020末			Mar当期-2021末

	-349.7
	(impact from
Current liabilities	the divestment
of major
807.1	subsidiaries(1)	Current liabilities
	is -358.7)
		586.9
Non-current		Non-current
liabilities		liabilities
749.3		600.1
Equity		Equity
535.1		554.8
Mar-2020		Mar-2021
前期末		当期末

Cash and Cash Equivalents

95.9111.1

		-484.4
-736.7	Net	-595.5
	Interest-
-832.6	bearing
debt

Interest-bearing debt

Mar-2020Mar-2021

(1) Major subsidiaries: Permasteelisa S.p.A, LIXIL VIVA	8

CASH FLOW STATUS AND CASH BALANCE(1)

Efforts enabled LIXIL to maintain same level of operating CF despite the challenging economic climate under COVID-19

FYE2020

FYE2021

JPY billion

JPY billion

Balance

Balance

141.4

95.9

as of April 1, 2019

Working Capital

20.6

as of April 1, 2020

Working Capital

34.0

Depreciation

105.6

Depreciation

84.8

Operating CF

FCF(3)

157.7

Operating CF

FCF(3)

151.0

Investing CF

CAPEX -68.6116.4

41.3

Investing CF

96.9

CAPEX -68.5

54.2

Financing CF

153.3

Financing CF

93.4

Other(4)

Other(4)

8.7

11.7

Balance

Balance

95.9

111.1

as of Mar 31, 2020

as of Mar 31, 2021

*Profit before tax(1) -23.4

*Profit before tax(1) 59.3

• Operating CF: decreased by JPY 6.7 billion despite increase in PBT(2) and working capital, due to the impact of sale of subsidiaries
• Investing CF: decreased by JPY 12.8 billion due to the expenditure for integration of the offices, etc.
• FCF(3): decreased by JPY19.5 billion
• Financing CF: decreased by JPY 59.9 billion due to maintaining JPY 60 billion yen for securing liquidity in response to COVID-19

(1)	Includes discontinued operations, (2) PBT = Profit before tax	9
(3)	"FCF" = Free Cash Flow, "CAPEX" = Capital expenditure for acquisitions of property, plant and equipment and intangible assets
(4)	"Other" = Effects of exchange rate changes + Net increase/decrease in cash and cash equivalents included in assets classified as held for sale

PROGRESS OF MANAGEMENT STRATEGY &

FORECAST FOR FYE2022

MANAGEMENT DIRECTION AND PROGRESS OF STRATEGIC INITIATIVES

• Drive productivity reform through digitalization of sales, etc. and platform-based production

• Transform to become an organization with an agile and entrepreneurial culture

• Establish management processes that are resilient to the influence of the external

Management environment and enables profitable and sustainable growth

direction • Improve ROIC to 10% or more and, for now, prioritize improving core earnings margin and aim for 7.5%. The next step will be raising to 10%

• Strengthen the balance sheet maintaining Net debt/EBITDA3.5x<, providing a stable foundation to support mid-to-long term growth

Four strategic initiatives and the progress

								Promote growth of international business in
			１	Focus and simplify our organization		３
								water technology
				 Almost completed				 Completed development of system to maximize
				 Improved balance sheet (Equity ratio・Net				synergies and optimize supply chains
				debt/EBITDA)				 Promoted supply chain optimization and expansion of
				 Reduced risks significantly that cause major				new product pipelines utilizing technologies within
				fluctuations in business performance				LIXIL, aiming to realize effects from FYE 2022
				Improve profitability of Japanese business				Establish a long-term growth foundation
			２		４
					through innovation
				 Formulated and executing plans aiming to start				 Gain consensus through education and training
				realizing benefits in and after FYE2022				 Drive Initiatives for digital, water purification, new
								materials, and new markets, and gain gradual results
							11

FINANCIAL INDICATORS, FYE2022 FORECAST

Progress in strengthening balance sheet and improving profitability

Core earnings margin					ROE								ROIC(1)
(%)									(%)										(%)
5					5.6%
						10										10
4				4.2%					5						8.3%			5
3		3.5%										6.3%							5.1%
２							0			2.4%						0
																2.0%		2.3%
１								-5										-5
０								-10										-10
		FYE2020		FYE2021		FYE2022					FYE2020		FYE2021		FYE2022				FYE2020		FYE2021		FYE2022
Revenue				(JPY)		Net debt/EBITDA					Equity ratio(2)
(trn)								(times)									(%)					34%(3)
							7										35				31.7%
1.6		1.51trn									5.5x
1.5								6									30
1.4						1.44trn		5					3.5x					25
						4
				1.38trn								2.7x				24%
1.3															20
							3
1.2									2										15
	FYE2020		FYE2021		FYE2022					FYE2020		FYE2021		FYE2022				FYE2020		FYE2021		FYE2022

(1)	Calculation: Operating profit x (1-Effective tax rate) ÷ (Working capital + Fixed assets)	12
(2)	Equity ratio under Japanese GAAP
(3)	Calculated on the premise of "redemption" for the Zero Coupon Convertible Bonds due 2022

STRATEGIC PRIORITIES FOR FYE2022

Invest in growth of international business and new innovations leveraging funds generated through structural reform

Strategic priorities for FYE2022

Group wide

• Drive productivity reform by utilizing digital technology
• Manage scarcity of wooden materials supply
• Provide range of products for renovation

• Transfer innovation resources to international regions
• Drive HR policy reform in Japan
• Promote reduction of environmental impact

Water business

(Japan)

 Increase renovation sales ratio

 Optimize sales offices and showrooms

 Focus on the development of advanced technologies

(International)

 Expand sales channels reach and partner support by leveraging digital platforms

 Continue targeted investment in brands, design and products to fill portfolio and segment gaps in each region

 Deliver efficiencies of global supply chain

 Strengthen global innovation platforms utilizing technologies within LIXIL

Housing business

• Create demand and expand into renovation market (renovation for improving performance of houses)
• Develop attractive and differentiated products (design, technology, collaboration with international manufacturers, etc.)
• Renew product lineup to promote high performance window
• Enter new markets (promoting business incubation, business for the highly affluent market(1), etc.)
• Strengthen the international business (Asian markets)

(1) See slide 27 "Launched NODEA for luxury market in Japan"

13

STRENGTHENED PRODUCTIVITY THROUGH DIGITAL TRANSFORMATION

Digital is a core lever of LIXIL's transformation in FYE 2022, enabling us to operations and enhance productivity.

DX STRATEGIC DRIVERS:

1. Transform	2. Develop New	3. Improve
Engagement
Existing Businesses	Businesses
& Productivity

Key Initiatives in FYE2022

• Further develop Online Showroom
• Strengthen online business (integration of analog and digital solutions)
• Establish online promotion platforms, including Grohe X(1)
• Promote digital literacy education and certification system for employees
• Create NoCode / LowCode development platform
• Create Digital Content Factory
• Strengthen productivity by standardizing domestic and overseas ERP processes

(1) See slide 31 "Groundbreaking experience hub GROHE X"	14

Key Initiatives in FYE2022

PROMOTE REDUCTION OF ENVIRONMENTAL IMPACT

By 2050, LIXIL aims to reduce CO2 emissions from our business processes, products, and services to net zero and to be a leader in the field of preserving water and limited resources for future generations

LIXIL Environmental Vision 2050

		 Introduce new materials to the
		civil engineering market
		 Promote use of faucets with
	Three focus areas to achieve our Vision	water purification function and
	contribute to reducing plastic bottle
		waste (X-Water, Grohe Blue)
		 Promote energy saving of existing
		houses through renovation that
		improves thermal insulation
		 Provide services offering rooftop
		solar power and energy storage
		system to promote solar power
		generation
		 Expand recycling of aluminum and
		resin
		15

FYE2022 FORECAST

Projecting increase of Revenue and Profits compared to the previous year. Forecast 80 yen per share for Annual dividend (dividend increase)

	FYE2021	FYE2022	Change
JPY billion	Results	Forecast
Revenue	1,378.3	1,440.0	61.7
Core Earnings (CE)	57.3	80.0	22.7
Operating Profit (OP)	35.8	78.0	42.2
Profit before Tax	33.8	75.5	41.7
Tax expenses	-17.4	-26.5	-9.1
Profit (loss) from discontinued operations	21.2	-2.0	-23.2
Net profit attributable to	4.5	0	-4.5
non-controlling interests
Net profit attributable to	33.0	47.0	14.0
owners of the parent
EPS (Yen)	113.92	161.94	48.02
ROE (%) (1)	6.3	8.3	2.0pp
ROA (%) (1)	1.7	2.7	1.0pp
ROIC (%)	2.3	5.1	2.8pp
EBITDA(2)	137.9	162.0	24.1
Net debt/EBITDA(2)	3.5x	2.7x	-0.8
Dividend（JPY per share）	75	80	5
Payout ratio (%) Consolidated basis	65.8%	49.4%	-

(1)	Calculated on the premise of "redemption" for the Zero Coupon Convertible Bonds due 2022 for FYE2022 Forecast	16
(2)	EBITDA=Core earnings + Depreciation

FYE2022 FORECAST - MARKET OUTLOOK & ASSUMPTIONS

Market outlook and assumptions

		FYE2021	FYE2022	Difference
		Results	Forecast
Housing starts	Total	808,000(1)	840,000/+4%	-
(YoY%)	Renovation	-6%	+4%	-
FX rate	JPY/USD	106.17	105.0	-1.1%
(Average rate)	JPY/EUR	123.73	126.0	+1.8%
Raw material prices (JPY/ton)	Aluminum	199,000	226,000	+27,000
Copper	603,000	708,000	+105,000

Business outlook

Japan:

• New housing starts and renovation demand are expected to recover

• Potential business risk include impact of scarcity of wooden materials supply on new housing starts, which could become apparent from July

• Strengthen effort around renovating existing homes up for resale

International:

• Strong demand momentum expected to continue in the Americas, Europe, and China

• In Asia Pacific, India, Vietnam, and Indonesia are expected to drive the recovery from a comparably low previous year base

• Potential business risks comprise lockdowns due to re-emergence of COVID-19, subdued business activity in the hospitality and commercial buildings segments, balance sheet health of customers or suppliers, as well as inflationary pressures on supply chain inputs

(1) Seasonally adjusted value for annual as of February 2021

17

CAPEX, DEPRECIATION, AND R&D EXPENDITURE(1)

By setting investment efficiency and safety indicators such as Key Goal Indicator, we achieve both improvement of financial strength and profitability

（JPY billion）	FYE2020		FYE2021	FYE2022Fcst.	Breakdown of CAPEX
	82.5 80.6 82.0			JPY billion	FYE2020	FYE2021	FYE2022
73.5			Actual	Actual	Plan
					IT investment	8.3	9.8	12.7
72.3 65.6
					Excluding above	64.0	55.7	60.8
						Total CAPEX	72.3	65.6	73.5
				27.5 24.0 27.5		Breakdown of Depreciation
					JPY billion	FYE2020	FYE2021	FYE2022
					Actual	Actual	Plan
						IT depreciation	10.5	10.8	11.4
						Excluding above	72.0	69.8	70.6
						Total Depreciation	82.5	80.6	82.0
CAPEX	Depreciation	R&D

(1) Excludes discontinued operations. CAPEX and Depreciation includes intangible assets and IFRS 16 lease	18

RESULTS BY BUSINESS SEGMENT

Water	Housing	Building	Housing &
Technology	Technology	Technology	Services Business

WATER TECHNOLOGY

Recovery continued in all regions, and profits increased over the cumulative period in Q4

Apr-Mar

In JPY bn

				Americas
	Region(1)			EMEA
China
	by
		Asia Pacific
	Revenues
Japan
				Adjustments
				Water
				Technology
by			International
earnings Region
Water
				Japan
Core			Technology
	Margin

FYE2021	YoY	FYE2022
(Results)	(Forecast)
143.3		0%	＋11%
		+3%	+7%
170.4
		+5%
49.3		+17%
47.7		-6%	+19%
405.7		-7%	+6%

-32.6

783.8 -5% CE 865.5 +10% CE

marginsmargins

31.2	-3%	8.3%		+47% 10.6%
	+5%	7.6%		+18%	8.5%
30.9
	+1%			+33%
62.1		82.5
		+0.5pp
7.9%			9.5%	+1.6pp

Revenue

■ Americas

 Strong demand continues in and after Q2. Retail and e-commerce channels drove sales growth to recover to previous year level

■ EMEA

 Strong growth continues for retail and e-commerce channels since June. Middle East region with highest relative growth

■ China

 Strong sales growth of commercial project sales in Q4 led to positive sales growth in China for 12 months positive

■ Asia Pacific

 Main markets gradually recovering from the impact of COVID-19 (lockdown, economic stagnation, etc.) as sales growth turned positive from Q4

■ Japan

 Touchless faucets Navish grow 76% in 12-month period; residential washstands with touchless faucets growth continue from Q3

Core earnings ■ Japan

 Increased by reduction of SG&A expenses with productivity improvement and pricing adjustments

■ International

 Decreased for the full-year but increased in H2 due to sales growth in Europe, Americas, and China

	(1) Region: Management basis, Water Technology Total: Statutory basis statutory basis currency : Q4 FYE2021 Results 1USD=106.17JPY,	20
	1EUR=123.73JPY Management basis currency : Comparing FYE2021 current & previous year 1USD=115.0JPY, 1EUR=126.5 JPY, FYE2022
	Assumptions 1USD=105JPY, 1EUR=126JPY

HOUSING TECHNOLOGY

Profit increased as productivity reform initiatives and increase of renovation- related sales ratio continue to steadily progress

Apr-Mar

In JPY bn

	by Region		Japan
International
	Revenues
Housing
			Technology
	Earnings		Housing
		Technology
	Core
		Margin

	FYE2021		YoY	FYE2022
	(Results)		(Forecast)
		-12%(1)		+1%
	467.8
					0%
	6.5	-21%(2)
	474.3	-13%	478.0	+1%
	31.4	+11%	36.5	+16%
	6.6%		+1.4pp	7.6%	+1.0pp

• Japan
• • Revenue decreased due to the decline of new housing starts and the impact of COVID-19
  • SG&A expenses reduced by improving productivity and operational efficiency
  • Gross margin improved with improvement of production efficiency due to production transformation efforts and increase in sales ratio of renovation products contributing to improved selling price
  • Growing demand for products catering to the new normal and natural disasters such as typhoons, which have become larger and more serious in Japan
  • • Screen door: increased by 61% YoY
    • Smart delivery box: increased by 53% YoY
    • Renovation-relatedshutter: increased by 55% YoY
      (YoY: compared full-year results for FYE2020 and FYE2021)

(1)	-10%YoY growth excluding impact from divestment and other	21
(2)	-10%YoY growth excluding impact from divestment and other

BUILDING TECHNOLOGY AND HOUSING & SERVICES

CE margin improved despite decrease in revenue and profits due to the decline in demand related to Tokyo 2020 Olympics

Apr-Mar

In JPY bn

	Technology			Revenue
				Core
	Building			Earnings
	Margin

FYE2021		YoY	FYE2022
(Results)		(Forecast)			 Revenue decreased due to the decline in demand for
93.4	-17%	86.5	-7%	Tokyo 2020 Olympic
						 CE margin improved by 0.4pp due to the efforts to
2.6	-2%	3.0	+15%
improve margin on order-intakes and reduce SG&A
		+0.4pp			+0.7pp	expenses
2.8%		3.5%

Revenue decreased due to the lack of demand after consumption tax hike and COVID-19. CE decreased despite efforts to control SG&A

Apr-Mar

In JPY bn

			Revenue
	H&S
		Core
		Earnings
			Margin

FYE2021	YoY	FYE2022
(Results)	(Forecast)
	-14%(2)
46.6		30.0	-36%
				-53%
2.1	-28%		1.0
4.6%	-0.9pp		3.3%	-1.3pp

• Revenue from businesses other than for new houses(1) (YoY -0.3pp)

38.0%	36.9%	37.3%	36.6%
36.0%		34.1%
34.0%		33.2%

32.0%

Q4 FYE2020 Q1 FYE2021 Q2 FYE2021 Q3 FYE2021 Q4 FYE2021

Aiming for 50% of revenue in the medium to long term to come from businesses not engaged in new houses

(1)	Existing business - business other than for new houses and new areas of services and markets	22
(2)	-12%YoY growth excluding impact from divestment and other

RENOVATION STRATEGY IN JAPAN

Renovation sales ratio increased by 1.0pp with strong demand continuing from Q3

		Q4 12 months		Q4 3 months
JPY billion	FYE2020	FYE2021	Change	YoY	FYE2021	YoY
Results(1)	Results	Results
Sales of renovation-related	316.0	296.2	-19.8	-6%	71.8	+1%
products
LWT-J				-5%		+8%
LHT-J				-6%		-1%
LBT				-17%		-33%
Renovation sales ratio	36%	37%	+1.0pp		35%	+2.5pp

Renovation sales ratio by business segment (YoY)

FYE2020 FYE2021 Difference

LWT		44%		45%		+0.8pp
LHT		31%(1)		32%		+1.2pp
LBT		23%(1)		22%		-0.5pp
Japan		36%		37%		+1.0pp
Total

Number of Member Homebuilders

Stores	Mar	Mar	Mar
2019	2020	2021
LIXIL Reform Shop	571	554	540
(FC)
LIXIL Reform Shop	11,783	11,789	11,373
(Voluntary)
LIXIL PATTO Reform	3,800	3,602	3,817
Service Shop

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

23

REVENUE BY PRODUCTS AND SERVICES
Faucets and washstand cabinets are performing well due to growing interest in
touchless products		JPY billion								in %
							Quarterly YoY
Segment	Major products	Full-year	Full-year			FYE2020	FYE2021
FYE2020	FYE2021
		Results(1)	Results(1)	YoY	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
LWT	Sanitary ware**	106.0	105.5	-0.5%	1.4	10.9	0.2	-1.9	1.5	-8.5	-2.1	8.4
	Bathroom units	100.5	87.0	-13.4%	-1.4	11.2	0.8	-5.8	-20.8	-18.8	-9.0	-3.9
	Washstand cabinet	37.6	37.1	-1.3%	0.6	12.6	-4.4	-0.7	-8.5	-9.0	8.9	2.9
	units**
	Kitchens	111.4	100.1	-10.1%	0.2	11.3	-5.4	-8.6	-14.8	-20.0	-3.9	-1.0
	Tiles	36.3	33.0	-9.1%	-5.0	5.1	-8.2	-6.3	-5.3	-16.6	-6.2	-7.6
LHT	Housing sashes and	190.0	171.5	-9.8%	5.5	10.2	-4.1	-2.7	-10.7	-13.3	-4.2	-10.8
related products
	Exterior	110.1	99.4	-9.7%	5.5	13.4	-10.3	-9.0	-9.4	-14.6	-6.0	-8.5
	Wooden interior	69.8	62.4	-10.6%	16.1	20.8	1.4	0.2	-8.1	-18.0	-7.8	-8.2
	furnishing materials
	LHT Other(2)	81.6	54.7	-33.0%	7.6	4.0	-19.3	-14.9	-30.0	-33.7	-14.9	-53.3
LBT	Building sashes	112.8	93.4	-17.2%	0.4	0.3	2.2	-12.4	-10.8	-18.2	-21.1	-17.3
H&S	Housing and Services	54.0	46.6	-13.8%	6.0	-1.0	-6.9	-20.3	-13.9	-15.1	1.2	-28.0
business(3)
	International	398.6	384.7	-3.5%					-21.5	2.3	1.9	2.6
	Others/	105.7	103.0	-
	consolidation & adj.
Total	1,514.4	1,378.3	-9.0%					-14.6	-11.6	-3.8	-6.2
(Reference)**Sales of Faucets included in "Sanitary ware" and "Washstand cabinet units"
LWT	Faucets	18.9	21.7	15.2%	1.4	13.2	3.7	6.9	13.5	4.9	19.5	22.2
	(1) Previous reporting period was restated by the classification of Permasteelisa and LIXIL VIVA's operating results under "Discontinued
	operations" due to the decision to divest									24
	(2) The YoY decrease was due to the sale of subsidiaries in September 2019 and January 2021
	(3) The YoY decrease was due to the sale of subsidiaries in September 2019 and March 2021

APPENDIX: BUSINESS AND ESG RELATED TOPICS

BOARD OF DIRECTORS (CANDIDATES) (1)	(Announced on March 22, 2021,
updated on April 30, 2021)
（After the annual general meeting of shareholders to be held in June 2021）

List of Directors

(◎: newly appointed in June 2021, □: independent director, Under line: female, ✿: Chairperson, ●: Member)

		Name	Chairperson	Nomination	Audit	Compensation	Governance
		of the Board	Committee	Committee	Committee	Committee
Directors(1)		Kinya Seto
	Sachio Matsumoto
	Hwa Jin Song Montesano
Internal
	□	Tamio Uchibori			●	●	●
Directors	□	Teruo Suzuki			✿		●
□	Yuji Nishiura		✿		●	●
□	Daisuke Hamaguchi		●		✿	●
Outside
□	Masatoshi Matsuzaki	✿	●			✿
□◎	Shiho Konno			●		●
	□◎	Mariko Watahiki		●			●

(1) Concurrently serves as an Executive officer	26

BOARD OF DIRECTORS (CANDIDATES) (2)
（After the annual general meeting of shareholders to be held in June 2021）
		Newly appointed candidate
			Shiho Konno		Mariko Watahiki
			(Date of Birth: June 28, 1963)		(Date of Birth: May 2, 1955)
			Reason for appointment		Reason for appointment
			Ms. Konno has a long career as a lawyer, an expert in		Ms. Watahiki has a long career as a judge and has been
			law. In addition, she has deep knowledge of corporate		involved in resolving many civil cases, including corporate
			governance and diversity gained through law practice.		legal affairs and labor issues. In addition, she has a track
			Based on her experience as outside directors of a		record of being involved in organizational management,
			number of listed companies, as well as her deep		including thorough compliance and governance, personnel
			knowledge of corporate governance and diversity		management and human resource development, and crisis
			gained through law practice, the Company believes		management by serving as the chief judge of several high
			that she can perform her duties as Outside Director of		courts. Based on her experience in handling many cases as
			the Company.		a judge and operating an organization as the chief judge of
Apr. 1991	Registered as attorney-at-law(Dai-ichi Tokyo Bar Association)		high courts, the Company believes that she can perform her
	duties as Outside Director of the Company.
Apr. 1997	Assistant Instructor, Legal Training and Research Institute of Japan
Jun. 2005	Corporate Auditor, Yahoo Japan Corporation	Apr. 1980	Tokyo District Court Assistant Judge	Mar. 2009	Supreme Court Senior
Apr. 2007	Specially Appointed Professor, Meiji Law School
Mar. 2008	Corporate Auditor, Advanced Softmaterials Inc. (currently ASM Inc.)	Apr. 1983	Gifu District and Family Court Assistant		Research Officer
Apr. 2009	Professor, Waseda Law School, Waseda University	Apr. 1986	Judge	Mar. 2012	(Civil Matters）
Jun. 2014	Member, Committee on Realization of a Gender-Equal Society of Japan	Tokyo District Court Assistant Judge	Utsunomiya District Court
Aug. 2014	Federation of Bar Associations (Incumbent)	Aug. 1986	Official of Administrative Affairs		Chief Judge
Auditor, Japan Corporate Governance Network		Bureau of General Secretariat of the	Jul. 2014 Yokohama Family Court Chief
Mar. 2015	Representative and attorney-at-law at Shiho Konno Habataki Law Office	Aug. 1988	Supreme Court	Jun. 2015	Judge
Jun. 2015	(Incumbent)	Tokyo District Court Assistant Judge	Tokyo High Court Judge
Outside Director, Watami Co., Ltd.	Apr. 1989	Osaka District Court Assistant Judge	Apr. 2016	(Presiding Judge）
Jun. 2016	Leader, Project Team for Female Lawyers Outside Officers of Committee on	Apr. 1990	Osaka District Court Judge	Sapporo High Court Chief
			Realization of a Gender-Equal Society of Japan Federation of Bar Associations	Mar. 1992	Supreme Court Research Officer	Sep. 2018	Judge
Jun. 2016	(Incumbent)	Apr. 1997	(Administrative Matters）	Nagoya High Court Chief
Outside Director, Kakaku.com, Inc.	Tokyo District Court Judge	May 2020	Judge
Nov. 2016	Member, Project Team for Examination of Guideline for Outside Directors of	Apr. 2001	Tokyo District Court Judge	Retirement
			Judicial System Research Committee of Japan Federation of Bar Associations		(Presiding Judge)	Aug. 2020	Registered as attorney-at-law
Jun. 2017	(Incumbent)	Mar. 2005 Instructor of Legal Training and	Aug. 2020	(Dai-ichi Tokyo Bar Association)
Outside Director, Alfresa Holdings Corporation		Research Institute	Attorney-at-law at Okamura
Jun. 2018	Outside Auditor, Shinsei Bank, Limited (Incumbent)	Oct. 2006	(Deputy Chief Civil Instructor)		Law Office (Incumbent)
Jun. 2018	Outside Director, Monex Group, Inc. (Incumbent)	Tokyo High Court Judge
							27

EXECUTIVE OFFICERS	(Announced on March 22, 2021)
(as of April 1, 2021)

List of Executive Officers

(※concurrently serves as a director, Under line: female)

Name		Positions
Kinya Seto	※	Representative Executive Officer, President, and Chief Executive Officer
Sachio Matsumoto	※	Representative Executive Officer, Executive Vice President, Finance, Treasury
		and M&A, and Chief Financial Officer
Hwa Jin Song Montesano		Executive Officer, Executive Vice President, Human Resources and General
※	Affairs, Public Affairs, Investor Relations, External Affairs, Corporate
		Responsibility, and Chief People Officer
Yugo Kanazawa		Executive Officer, Executive Vice President, Marketing, Digital, and IT, and
	Chief Digital Officer
Bijoy Mohan		Executive Officer, Executive Vice President, LIXIL International
Satoshi Yoshida		Executive Officer, Executive Vice President,
	LIXIL Housing Technology (LHT) Japan
Hiroyuki Oonishi		Executive Officer, Executive Vice President,
	LIXIL Water Technology (LWT) Japan
Shoko Kimijima		Executive Office, Executive Vice President,
	Legal and Compliance, and Chief Legal and Compliance Officer
		28

BUSINESS RELATED TOPICS

Launched NODEA		Promote high performance window by
for luxury market in Japan		renewing all window series products
Through the concept of "Openness, Space,		Starting with the first product, SAMOS A,
Encounters", offer enhanced daily life in	more high performance window will be launched
which reason and emotion coexist
(Image: NODEA WINDOW)		(Image: SAMOS A, planned to be launched in the West Japan area in May 2021, in the
	East Japan area in July 2021)
 Launched new brand(1) for the highly affluent market in Japan,		 Planned to renew all window series products in Japan in FYE2022
which is the second largest market in the world(2)		 SAMOS A is the first product and other products will be launched
 Based on the technology and high quality cultivated over many
	sequentially from May
years and collaboration with the world's leading global brands,
NODEA will develop in three areas: windows and doors, interiors,		 Contribute to high performance of Japanese housing by
and exteriors, through the new concept "Openness, Space,
	achieving 100% high performance window ratio by FYE2026
Encounters"

(1)	News Releasehttps://www.lixil.com/jp/news/pdf/20210309_NODEA.pdf(Japanese only)
(2)	Approx. JPY 60 billion as of 2017 (LHT-JapanBriefing Session P13https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym33/86227/00.pdf)29

ESG RELATED TOPICS

Collected a total of 27			Product development based on
iF Design Awards and Red Dot Awards			customer needs
Adding to over 400 global awards for LIXIL		Responding quickly to consumer needs
			with "Make everyday life happy"
		(Image: KINUAMI U)
			(Image: ATMO)
 LIXIL collected 14 Red Dot Design Awards and 13 iF Design	 "ATMO" is the third product developed by LHT's Japan Business
	Incubation Center, which was established in April 2019(2)
Awards in April, adding to a total of more than 400 global design
awards for the company, collectively(1)		Foamed shower "KINUAMI U" was developed by reflecting the
 Products supporting hygiene practices, to ensuring the efficient		voices of many consumers received during the crowdfunding
	phase of previous model "KUNUAMI" in the spring of 2019(3)
use of space, or adding comfort and in securing privacy, the
award-winning products were designed to help consumers adapt		ATMO started project from February 2021 and KINUAMI U from
to the new normal
	March through crowd funding service "Makuake" and achieved
			the sales target on the day of announcement

(1)	News Releasehttps://www.lixil.com/en/news/pdf/20210428_RDiFAwards_E.pdf	30
(2)	News Releasehttps://www.lixil.com/jp/news/pdf/20210216_ATMO.pdf(Japanese only)
(3)	News Releasehttps://www.lixil.com/jp/news/pdf/2021033001.pdf(Japanese only)

ESG RELATED TOPICS

Groundbreaking experience hub		Launched first cradle to cradle gold
GROHE X		certified products
Provide an innovative brand experience		Contributing to achieving a circular
online		economy by transforming
(Image: GROHE X)
 Originally initiated as a replacement for physical exhibitions		 Launched first cradle to cradle gold certified products under the
during the pandemic, GROHE X is now the beginning of an own		GROHE brand in March 2021(2)
experience ecosystem that will drive engagement with customers
also in form of hybrid or mobile events(1)		 A product is designed and manufactured with the intent of using
 GROHE X takes the customer journey to the next level by		its components in its end-of-life-phase for the creation of new
	products to reduce the use of new resources
providing real-time content curated to meet customer needs
(1) Websitehttps://www.grohe-x.com/	31

(2) The Cradle to Cradle concept is an approach for designing intelligent products, processes, and systems by taking the entire life cycle into account

ESG RELATED TOPICS

Formulation of a new D&I strategy			Accelerates
		commitments to carbon neutrality
	Achieve 50:50 gender ratio			Eight fittings plants achieved
for Directors and Executive Officers by 2030			net zero emissions
 In September 2020, a D&I committee chaired by the CEO was
established. A D&I strategy was formulated in April 2021 to
define inclusion and set ambitious new gender equity targets for			All eight fittings plants across LIXIL International achieved net
2030(1)
1. 50:50 for Board & Executive Officers			zero emissions by October 2020(2)
2. 30% female managers/leaders across LIXIL			LIXIL has reduced CO₂ emissions by 6.3% globally(3)	since 2016,
3. Maintain gender parity in new graduate recruitment (Japan)		
				and plans to reduce it by 30% by 2030. Contribute to reduce
 The ratio of female new employees in Japan as of April 1, 2021			environmental impact
was about 50%, an improvement of 20% from the previous year
(1) News Releasehttps://www.lixil.com/en/news/pdf/20210426_DI_E.pdf		32
(2)	News Releasehttps://www.lixil.com/en/news/pdf/20210407_LIXIL_Goes_ZERO-international_fittings.pdf
(3)	As of FYE2020

APPENDIX: FINANCIAL DATA

FYE2021 INCREASE / DECREASE OF REVENUE AND CORE EARNINGS

Revenue(1)

Core earnings(1)

JPY billion

YoY

-5%

-13%

-17%

-14%

1,600

44.7

1,400

67.9

1,514.4

Renovation -5%

Renovation

-6%

19.4

7.5

+3.3

1,200

Others

-9%

1,378.3

Others

-14%

Japan

-7%

200

International -3%

Japan

-12%

(Incl. Divestment and other -14.8)

International -21%

0

-136.2(-9.0％)

FYE2020

LWT

LHT

LBT

H&S

Consolidation

FYE2021

Raw material price+1.3

Decrease in labor cost

adjustment/

and marketing costs

other

LWT -0.1

LWT

+9.0

LWT -11.7

LHT

+1.4

LHT

+17.2

JPY billion

Cost down, etc. +4.9

LBT

+3.0

LHT

-16.8

60

LBT

-3.5

LWT

+2.1

Divestment in LHT +3.9

LHT

+2.5

LBT

+0.3

0.8

+2.1

50

Divestment in LHT -6.8

+33.1

LWT Intl.

-0.9

40

52.3

32.0

LWT +2.3

57.3

LHT

+1.8

LHT Intl.

-0.1

30

CE Margin

LBT +0.2

(Reference)

CE Margin

GROHE

+0.3

0.6

20

3.5%

+4.2

ASB

0

Other

-1.3

4.2%

10

+5.0 (+9.6%)

0

FYE2020

Sales in

Mix/pricing

Cost

SG&A

International

H&S

Consolidation

FYE2021

Japan

business

adjustment/

Japan Tech +4.7 (+8%)

International -1.0

other

1. Permasteelisa S.p.A and LIXIL VIVA's business is classified as "discontinued operations" due to the decision to divest. For comparison, previous 34 reporting period is also rearranged in the same way

Q4 (3 MONTHS) FYE2021 INCREASE / DECREASE OF REVENUE AND CORE

EARNINGS

YoY

+1%

-14%

-17%

-28%

JPY billion

380

+1.5

360

16.9

4.7

Revenue(1)

3.8

+1.4

340

Renovation

+8%

320

365.3

Renovation

-1%

Others

-6%

342.7

300

Others

-17%

Japan

-1%

International +3%

Japan

-14%

40

International

+7%

-22.5(-6.2％)

20

0

Q4 FYE2020

LWT

LHT

LBT

H&S

Consolidation

Q4 FYE2021

adjustment/

Raw material price -0.7

LWT Intl.

-0.4

other

LHT Intl.

+0.5

JPY billion

LWT

-0.2

(Reference)

-0.4

LHT

-0.6

GROHE

15

Cost down, etc. +5.2

ASB

-1.0

earnings(1)

LWT

+2.4

Other

+1.5

10

LHT

+2.5

+0.1

0.1

+1.3

LBT

+0.2

LWT -0.2

Divestment in LHT -4.3

Decrease in labor and

12.1

5

LWT +1.1

+11.8

marketing costs

CE Margin

LHT -2.7

LHT +1.7

LWT +3.7

-0.2

LBT -1.0

LBT +0.2

LHT

+4.4

3.5%

Core

0

LBT

+1.4

+2.2

3.9

+0.1

Divestment in LHT

-5

+3.0

+12.2

Q4 FYE2020

Sales in

Mix/pricing

Cost

SG&A

International

H&S

Consolidation Q4 FYE2021

Japan

business

adjustment/

Japan Tech +10.9(+214%)

International +0.1

other

(1) Previous reporting period was restated by the classification of Permasteelisa and LIXIL VIVA's operating results under "Discontinued	35
operations" due to the decision of divestment.

FYE2021 OTHER INCOME AND OTHER EXPENSES, FINANCE INCOME

AND FINANCE COSTS, PROFIT FROM DISPOSAL OF SHARES OF ASSOCIATES

								 Other expenses include costs
				FYE2020 after	FYE2021	Increase/
							incurred with implementation
				retroactive(1)
	JPY billion	Results	decrease				of New Life of JPY 13.6 billion
	restatement						and special one-time allowance
			Gains on sales of subsidiaries	1.4	9.3	7.8				of JPY 1.4 billion related to
			Gains on sale of investment property	0.6	0.0	-0.6				COVID-19
		Other	4.0	8.3	4.3
					(A) Gains on valuation of
	Other Income	6.1	17.6	11.5
		Losses on sale or disposal of property, plant and	2.5	1.6	-0.9				derivatives is matched with
		equipment							foreign exchange difference
		Impairment losses	14.5	8.8	-5.7				losses
				FYE2020
		Loss recognized on the remeasurement of the	-	5.4	5.4
							Results
		assets held for sale							Gains on valuation
		Other	9.3	23.1	13.8			2.3
					of derivatives
	Other Expenses	26.3	39.0	12.7				Exchange difference	-3.0
										losses			Loss
		Interest income	0.9	1.1	0.2				Net	-0.6
		Dividend income	1.5	1.5	-0.1	(A)
		Gains on valuation of derivatives	2.3	-	-2.3			(B) Foreign exchange gains
		Exchange difference gains	-	3.2	3.2	(B)			are matched with Losses on
	Finance Income	4.8	5.7	0.9				valuation of derivatives
		Interest expense	4.3	4.1	-0.1						FYE2021
		Losses on valuation of derivatives	-	4.1	4.1	(B)		Exchange difference		Results
		Exchange difference losses	3.0	-	-3.0	(A)
	Finance Costs	7.2	8.2	1.0				gains	3.2
				Losses on valuation
										of derivatives	-4.1
	Profit from disposal of share of associates	11.0	-	-11.0				Net		-0.9		Loss
			(1) Previous reporting period was restated by the classification of Permasteelisa and LIXIL VIVA's operating results under "Discontinued	36
			operations" due to the decision to divest

RESULTS AND FORECASTS BY SEGMENT

			FYE2020 Results(1)		FYE2021 Results			FYE2022 Forecast
			Japan	Intl.	Total	Japan	Intl.	Total	Total		Japan	Intl.	Total	Total
JPY billion			YoY%		YoY%
	Revenue	438.2	390.3	828.5	405.7	378.1	783.8	-5.4%		431.5	434.0	865.5	10.4%
	CE	29.4	32.1	61.5	30.9	31.2	62.1	1.0%		36.5	46.0	82.5	32.7%
LWT	CE margin	6.7%	8.2%	7.4%	7.6%	8.3%	7.9%	+0.5pp		8.5%	10.6%	9.5%	+1.6pp
	Revenue	533.9	8.3	542.2	467.8	6.5	474.3	-12.5%		471.5	6.5	478.0	0.8%
	CE	29.2	-0.9	28.3	32.3	-0.9	31.4	11.1%		38.5	-2.0	36.5	16.1%
LHT	CE margin	5.5%	-	5.2%	6.9%	-	6.6%	+1.4pp		8.2%	-	7.6%	+1.0pp
	Revenue	112.8		112.8	93.4		93.4	-17.2%		86.5		86.5	-7.4%
	CE	2.7		2.7	2.6		2.6	-2.2%		3.0		3.0	14.9%
LBT	CE margin	2.4%		2.4%	2.8%		2.8%	+0.4pp		3.5%		3.5%	+0.7pp
	Revenue	54.0		54.0	46.6		46.6	-13.8%		30.0		30.0	-35.6%
	CE	3.0		3.0	2.1		2.1	-28.4%		1.0		1.0	-53.2%
H&S	CE margin	5.5%		5.5%	4.6%		4.6%	-0.9pp		3.3%		3.3%	-1.3pp
Consolidatio	Revenue			-23.1			-19.8	-				-20.0	-
n adj. &
		-43.2			-41.0	-				-43.0	-
other(2)	CE
	Revenue	1,138.9	398.6	1,514.4	1,013.4	384.7	1,378.3	-9.0%		1,019.5	440.5	1,440.0	4.5%
	CE	64.2	31.3	52.3	68.0	30.3	57.3	9.6%		79.0	44.0	80.0	39.6%
LIXIL(2)	CE margin	5.6%	7.8%	3.5%	6.7%	7.9%	4.2%	+0.7pp		7.7%	10.0%	5.6%	+1.4pp

1. Previous reporting period was restated by the classification of Permasteelisa and LIXIL VIVA's operating results under "Discontinued operations" due to the decision to divest
2. Difference between sum total of Japan and International in Revenue and Core earnings and "Total" is the amount of consolidation, adj. & other

37

PERFORMANCE OF MAJOR INTERNATIONAL SUBSIDIARIES

Company			ASB (ASD Holdings)
Unit			Unit: USD million
Accounting	FYE2020	FYE2021	YoY
period	Results		Results
Exchange rate (Average Rate)		109.10	106.17	-
Revenue		1,248	1,246	0%
Core earnings		65	68	3%
%		5%	5%	+0.2pp
	FYE2020
Accounting		FYE2021 (12 months)
period	Balance	Amortization	Others(1)	Balance
Exchange rate (Current Rate for balance, Average		108.83	106.17	-	110.71
Rate for amortization)
Goodwill		231	-	-3	228
Intangible assets		214	-6	-2	206
Company			Grohe Group (GROHE)(2)
Unit			Unit: EUR million
Accounting	FYE2020	FYE2021	YoY	YoY excluding LIXIL
period	Results		Results	Africa impact(2)
Exchange rate (Average Rate)		121.14	123.73	-	-
Revenue		1,552	1,511	-3%	-2%
Core earnings		192	191	-1%	-2%
%		12%	13%	+0.2pp	-0.1pp
	FYE2020
Accounting		FYE2021 (12 months)
period	Balance	Amortization	Others(1)	Balance
Exchange rate (Current Rate for balance, Average		119.55	123.73	-	129.80
Rate for amortization)
Goodwill		1,208	-	-11	1,197
Intangible assets		1,451	-23	0	1,429

(1)	Forex translation differences, and other	38
(2)	LIXIL Africa (formerly called as GDWT) ,which was formerly under Grohe Group, became a subsidiary of LIXIL Corporation from July 2019

FYE2022 FORECAST INCREASE / DECREASE OF REVENUE AND CORE EARNINGS

JPY billion

YoY

+10%

+1%

-7%

-36%

1,250

+3.7

6.9

16.6

0.2

1,200

+81.7

Revenue

1,150

Japan

+1%

1,100

1,378.3

Japan

+6%

International

0%

1,440.0

1,050

International +15%

100

+61.7 (+4％)

50

0

FYE2021

LWT

LHT

LBT

H&S

Consolidation

FYE2022 f'cst

Raw material price -6.3

Increase in marketing,

adjustment/

LWT

-2.5

and distribution costs

other

LHT

-3.8

LWT

-5.8

JPY billion

LWT +9.6

Cost down, etc. +2.9

LHT

+6.0

LWT

+1.2

LBT

+1.0

80

LHT

+1.2

LHT

+1.1(1)

1.1

2.0

earnings

LBT

-1.3

LBT

+0.6

3.4

+13.7

60

+4.8

+1.2

+9.5

LWT Intl.

+14.8

80.0

40

57.3

LWT +3.1

LHT Intl.

-1.1

CE Margin

LHT +1.7

Core

20

CE Margin

5.6%

4.2%

+22.7 (+40%)

0

FYE2021

Sales in

Mix/pricing

Cost

SG&A

International

H&S

Consolidation FYE2022 f'cst

Japan

business

adjustment/

Japan Tech +12.1 (+18%)

International +13.7

other

(1) Includes increase in cost of sales of JPY -1.0 billion due to accelerated depreciation noted in "Notification Regarding Reorganization of the	39
Production System at LIXIL Housing Technology"

EXTERNAL RECOGNITION

S&P Japan 500 ESG	DJSI World, DJSI Asia Pacific
Selected as a constituent of the S&P Japan 500 ESG	Selected as a component of the Dow Jones
created by S&P Dow Jones Indices (June 2020)	Sustainability Indices (DJSI), now a part of S&P Global,
MSCI Japan Empowering Women Index	DJSI World Index, for the second time, and DJSI Asia
Pacific Index for four consecutive years (November
Selected as a constituent of the MSCI Japan	2020)
Empowering Women Index (WIN), created by MSCI
Inc., for four consecutive years (June 2020)

Disclaimer	CDP Supplier Engagement Leaderboard
THE INCLUSION OF LIXIL CORPORATION IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,	Earned a place on the 2020 Supplier
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A
SPONSORSHIP, ENDORSEMENT OR PROMOTION OF LIXIL CORPORATION BY MSCI OR ANY OF	Engagement Leaderboard by CDP
ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE
MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS	(February 2021)
AFFILIATES.
FTSE4Good Index Series
Became a constituent of the FTSE4Good Index Series	Nadeshiko Brand
and FTSE Blossom Japan Index, created by FTSE
Granted to listed enterprises that are exceptional in
Russell(1), for four consecutive years (June 2020)
encouraging women's success in the workplace.
	Jointly selected and publicized by the METI and TSE.
	Selected for the sixth time in
	four consecutive years
	(March 2021)
(1) Registered trademark of FTSE International Limited and Frank Russell Company.	40

MARKET TRENDS

105

Trend of new housing starts in Japan

Aluminum price trend

Assumption for the

100

(10 thousand houses)

Seasonally adjusted

value for annual

plan FYE2022

2019

2020

2021

95

JPY226,000/ton

(approx. USD2,152/ton)

90

Source︓LME 3 months

Jan 2019

Apr 2019

Apr 2020

(From January 1, 2019 to

85

March 31, 2021)

- Mar 2019

- Mar 2020

- Mar 2021

80

Copper price trend

Assumption for the

75

JAN FEB MAR APR MAY JUN

JUL AUG

SEP OCT NOV DEC

plan FYE2022

JPY708,000/ton

Source︓Statics of new housing starts, Ministry of Land,

(approx. USD6,743/ton)

Source︓LME 3 months

Infrastructure, Transport and Tourism（2018/1-2021/2)

New housing construction level in Japan（year-on-year）

Jan 2019

Apr 2019

Apr 2020

(From January 1, 2019 to

March 31, 2021)

- Mar 2019

- Mar 2020

- Mar 2021

●

Jan-Feb 2021: -3,4%

●

Jan-Dec 2020: -10.2%

Foreign exchange

FYE2020

FYE2021

FYE2022

Jan-Dec 2020

Apr-Feb 2021

rates

Results

Results

Assumptions

(12 months)

(11 months)

(Average rate)

Amount

YoY

Amount

YoY

US dollars

109.10 yen

106.17 yen

105.0 yen

Total new housing starts

815,340

-9.9%

740,377

-8.9%

Euros

121.14 yen

123.73 yen

126.0 yen

Owner occupied(1)

261,088

-9.6%

240,757

-7.8%

(yen per ton)

Rental homes

306,753

-10.4%

275,773

-10.5%

Results and

FYE2020

FYE2021

Condos for sale

107,884

-8.4%

97,796

-4.2%

FYE2022

Detached houses for

assumptions

Results

Results

Assumptions

sale(2)

130,753

-11.4%

118,032

-12.3%

Aluminum price

215,000

199,000

226,000

Detached houses

391,841

-10.2%

358,789

-9.3%

(Purchasing price)

586,000

603,000

708,000

total(1)+(2)

Copper price

41

Cautionary Statements with Respect to Forward-Looking Statements

Statements made in these materials with respect to plans, strategies and future performance that are not historical facts are forward-looking statements. LIXIL Corporation cautions that a number of factors could cause actual results to differ materially from those discussed in the forward-looking statements.