LIXIL : Notice Regarding Absorption-Type Merger (Simplified and Short-Form Merger) with Fully Owned Subsidiary (LIXIL Okinawa Sales Co., Ltd.)

[This is an English translation of the original text written in Japanese]

January 18, 2022

LIXIL Corporation Kinya Seto

Representative Executive Officer, President, and CEO (First Section of TSE/NSE, code 5938)

(Contact): Kayo Hirano

Senior Vice President, Leader, Investor Relations Office

Notice Regarding Absorption-Type Merger (Simplified and Short-Form Merger) with Fully

Owned Subsidiary (LIXIL Okinawa Sales Co., Ltd.)

LIXIL Corporation (hereinafter "LIXIL") hereby announces that it has today resolved to carry out an absorption-type merger (hereinafter the "Merger") between LIXIL and LIXIL Okinawa Sales Co., Ltd. (hereinafter "LIXIL Okinawa Sales"), its consolidated subsidiary, effective April 1, 2022.

Since the company is pursuing an absorption-type merger of a fully owned subsidiary of LIXIL, some details for disclosure have been abbreviated.

1. Aim of the Merger

LIXIL is simplifying its operating structure to drive synergies and improve operational efficiencies through enhanced integration. In line with these measures, LIXIL decided to carry out an absorption-type merger of LIXIL Okinawa Sales, which sells building materials for housing and buildings. Through this Merger, LIXIL will flatten and simplify its operating structure.

2. Outline of the Merger

(1) Key dates

Date of the resolution of the Merger	January 18, 2022
Date of signing of the Merger agreement	January 18, 2022
Effective date of the Merger	April 1, 2022 (Plan)

(Note) According to regulations governing short-form mergers in Item 2, Article 796 for LIXIL, and Item 1, Article 784 of Japanese corporate law governing simplified mergers for LIXIL Okinawa Sales, the simplified and short-form merger between LIXIL and LIXIL Okinawa Sales,

1

which is a fully owned subsidiary under LIXIL, can be conducted without seeking approval at the Shareholders' Meeting.

(2) Method of the Merger

Using the "merger by absorption" method, LIXIL will become the surviving company and LIXIL Okinawa Sales will be dissolved.

(3) Details of allocations related to the Merger

The Merger will not result in any allocation of shares or other assets.

1. Handling of share options and bonds with share options related to the Merger Not applicable.

3. Overview of the Companies to be merged

		Surviving Company		Company to be absorbed
(1)	Trade Name	LIXIL Corporation		LIXIL Okinawa Sales Co., Ltd.
(2)	Registered Office	2-1-1 Ojima, Koto-ku, Tokyo	237-5 Ojana, Ginowan-shi, Okinawa
(3)	Representative	Kinya Seto, Representative Executive	Arihiro Ookubo, Representative Director
		Officer, President, and CEO
(4)	Business Operations	Manufacture and sell building materials	Sell building materials for housing and
		and housing equipment for housing	buildings.
		and buildings, operate housing-related
		businesses as well as related services.
(5)	Capital	JPY 68,418 million		JPY 30 million
(6)	Establishment	September 1949		April 2015
(7)	Outstanding Shares	Common Stock 313,319,159	Common Stock 600
(8)	Accounting period	March 31		March 31
(9)	Major Share Holders	The Master Trust Bank	12.57%	LIXIL Corporation	100%
and Holding Ratio (As	of Japan, Ltd. (Trust
of September 30,	Account)
2021）	JP MORGAN CHASE	7.48%
		BANK 385632
		(Standing Proxy:
		Settlement & Clearing
		Services Division,
		Mizuho Bank, Ltd.)
		Custody Bank of Japan,	3.69%
		Ltd. (Trust Account)
		Others

2

1. Financial Performance for the Latest Fiscal Year-end (Fiscal Year Ended March 2021)

IFRS (Consolidated)		JGAAP (Standalone)
Total equity	554,767	Net assets	826
(JPY million)		(JPY million)
Total assets	1,741,814	Total assets	1,752
(JPY million)		(JPY million)
Equity attributable to	1,902.89	Net assets per share	1,377,855.54
owners of the parent		(Japanese yen)
per share (Japanese
yen)
Revenue	1,378,255	Net sales	3,919
(JPY million)		(JPY million)
Operating profit	35,842	Operating profit	216
(JPY million)		(JPY million)
－		Ordinary profit	218
			(JPY million)
Profit for the year	33,048	Net profit	144
attributable to owners		(JPY million)
of the parent (JPY
million)
Basic earnings per	113.92	Earnings per share	241,203.22
share (Japanese yen)		(Japanese yen)

(Note) Shareholding calculations of LIXIL exclude treasury stock of 22,616 thousand shares.

1. Overview after the Merger
   There will be no change to trade name, headquarters, name and title of representatives, business description, capital, and accounting period related to the Merger.
2. Future Outlook
   As the Merger is between LIXIL and its fully owned subsidiary, the impact on LIXIL's consolidated financial performance will be minor.

End

3