LIXIL : Oct 30, 2020ReleaseAnnouncement of Revision of Consolidated Financial Forecast for the Fiscal Year Ending March 2021 >NEW

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

October 30, 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

Announcement of Revision of Consolidated Financial Forecast

for the Fiscal Year Ending March 2021

LIXIL Group Corporation (hereinafter "LGC") hereby announces that it has revised upward its core earnings guidance in its consolidated financial forecast for the fiscal year ending March 2021. In addition, LGC hereby discloses its consolidated financial forecast for operating profit and subsequent profits for the fiscal year ending March 2021, which were left undetermined in the "Consolidated Financial Results for the First Quarter Ended June 30, 2020 [IFRS]" released on August 6, 2020.

1. Consolidated full-year forecast

1. Consolidated forecast for the full year for the fiscal year ending March 31, 2021 (April 1, 2020 through March 31, 2021)

			From Continuing Operation		Including Discontinued Operation
		Revenue	Core		Operating	Profit	Profit for	Profit for	Profit for	Basic earnings
			earnings		profit	before	the year	the year	the year	per share
						income			attributable to
						taxes			owners of the
									parent
Previous	full-	Million yen	Million yen		Million yen	Million yen	Million yen	Million yen	Million yen	Yen
year		1,350,000	25,000
				Not determined
forecast (A)
Revised	full-	1,350,000	40,000	7,000	3,000	2,000	23,000	19,000	65.49
year forecast
(B)
Change (B-A)	0	15,000	-	-	-	-	-	-
Change (%)	-	60.0	-	-	-	-	-	-

cf. FYE2020	1,514,400	52,300	32,000	40,900	27,700	13,700	12,500	43.15
results (Note)

Core earnings is the amount calculated by deducting cost of sales and selling, general and administrative expenses from the revenue.

(Note) Since the decision of share transfer of LIXIL VIVA, a consolidated subsidiary of LGC (announced on June 9, 2020), profit/loss related to LIXIL VIVA have been classified as "discontinued profit/loss", FYE2020 results has also been restated for comparison purposes.

(2) Reasons for revision of consolidated forecast

At the time of the announcement of the "Consolidated Financial Results for the First Quarter Ended June 30, 2021 [IFRS]" on August 6, 2020, LGC assumed a sharp decline in demand due to the impact of COVID-19 and further decline following Japan's consumption tax hike from the previous year would continue through the first half of this fiscal year. However, while demand in Japan continued to decline between the first and second quarters, there are signs of a recovery in the Japan market and some recovery in overseas markets such as Americas and Europe. In addition, efforts to promote products and services that cater to changing consumer needs in the new normal as well as continuing cost reduction efforts have been successful. Therefore, LGC has decided to revise upward its full-year core earnings forecast. Its forecast for revenue has not changed.

(3) Reasons for disclosure of consolidated forecast

LGC is in the process of transforming its operations, which has included reviewing its business portfolio in order to focus on its core business. At the time of the announcement of the "Consolidated Financial Results for the First Quarter Ended June 30, 2021 [IFRS]" on August 6, 2020, LGC was in the final stages of planning these initiatives, so its forecast for operating profit and subsequent profit types was not confirmed. Since finalization of the plan, LGC has decided to announce the forecasts for operating profit and profit for the year attributable to owners of the parent. For details on the plan, please refer to the "H1 Results for the Fiscal Year Ending March 31, 2021 (IFRS)" and "Notification Regarding the Implementation of Voluntary Retirement Program 'New Life'" announced today.

2. Dividend

There is no change from the previous forecast announced on August 6, 2020.

(1) Dividend forecast for the fiscal year ending March 31, 2021

		Dividends per share for the year
	Interim		Year-end		Total
		Yen	Yen		Yen
Previous FYE2021		35.00	35.00		70.00
forecast
FYE2021 actual		35.00
FYE2021 forecast			35.00		70.00
Cf. Previous year		35.00	35.00		70.00
(FYE2020) results

Explanation for adequate utilization of the forecast and other special matters

The forecasts and forward-looking statements above are prepared based on information currently available and therefore involve potential risks and uncertainties. Please note that actual results may differ from forecasted figures due to various unknown factors. LGC will promptly announce revisions.

End