LIXIL : Nov 09, 2020Release(Status update) Notice Concerning Completion of Transfer of Shares in Consolidated Subsidiary >NEW

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

November 9, 2020

LIXIL Group Corporation Kinya Seto

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

(Contact): Kayo Hirano

Senior manager, Investor Relations Office

(Status update) Notice Concerning Completion of Transfer of Shares in Consolidated Subsidiary

LIXIL Group Corporation (hereinafter "LGC") hereby announces today that based upon the memorandum with Arcland Sakamoto Co., Ltd. (hereinafter "Arcland Sakamoto") and a consolidated subsidiary of LGC, LIXIL VIVA Corporation (hereinafter "LIXIL VIVA"), regarding a series of transactions including: a cash tender offer for the common shares of LIXIL VIVA; a share consolidation of the common shares of LIXIL VIVA; a transfer of the shares held by LGC via buy-back by LIXIL VIVA (hereinafter the "Share Transfer"), through which LIXIL VIVA becomes a wholly owned subsidiary of Arcland Sakamoto; and other transactions incidental or related to those transactions (hereinafter collectively, the "Transaction"), as well as the agreement with Arcland Sakamoto in respect of the Transaction concluded on June 9, 2020, the Share Transfer was completed on November 9, 2020.

The details of the Transaction can be found in "Notice of Transfer of Consolidated Subsidiary (Share Transfer)" dated on June 9, 2020 announced by LGC.

Upon the completion of the Share Transfer, LIXIL VIVA is to be excluded from the scope of consolidation of LGC. In addition, the impact from the completion of the Share Transfer on the LIXIL Group's consolidated financial statements has not been determined yet because it will change according to the changes in net assets of LIXIL VIVA. However, the gain from the Share Transfer, approximately 20,000 million yen, is expected to be recognized under net income from discontinued operations on a consolidated basis in the fiscal year ending in March 2021. The consolidated earnings forecasts for the fiscal year ending March 2021, announced on October 30, 2020, remain unchanged since the impacts of the Share Transfer has been factored into the forecasts.

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