Interim report
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Copyright © TOTO LTD. All Rights Reserved. Third Quarter Results For Fiscal Year Ending March 2026 TOTO LTD. January 30, 2026 This notice has been translated from the original notice in Japanese. In the event of any discrepancy, the original in Japanese shall prevail. Security Code: 5332
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Copyright © TOTO LTD. All Rights Reserved. 1 New Business Domain (Advanced Ceramics Business) Japan International Sanitary Ware WASHLET Global Housing Equipment Business Main Products Faucet Fixtures SemiconductorsWafer fab equipment Device manufacurerSPE manufacturerTOTO（Equipment components） Logic Semiconductors Electrostatic chucks AD film End application Data Centers PC Smart phones Bathtubs/ System Bathrooms, Vanity units, Modular kitchens, etc. Strength: High durability & low - particle performance 66 ％ 27 ％ 7 ％ 43 ％ 18 ％ 40 ％ NAND Memory semiconductors Introduction: TOTO Business Overview TOTO’s core business that has been built up over 100 years The core business is the Remodeling sector, which does not rely on new construction demand. We offer a wide range of products. Aiming to become an indispensable presence in each country and region. Americas, and Asia are the growth markets based mainly on WASHLET and water-saving toilets. In the Mainland China Business, as performance has deteriorated sharply, structural reforms are underway. The core business and growth driver. Has the highest profitability in the housing equipment business. Leading the world with superior quality Pursuing design and water efficiency * The sales distribution ratios and operating profit composition ratios are based on FY2024 results, excluding company-wide adjustments. Sales distribution ratio Operating profit composition Main Products Core products are high-grade, high-precision ceramic components for semiconductor manufacturing equipment. Achieving high profitability through technical expertise cultivated during sanitary ware production and a highly efficient production system.
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Copyright © TOTO LTD. All Rights Reserved. 3 1. Third Quarter Results for Fiscal Year Ending March 2026
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Copyright © TOTO LTD. All Rights Reserved. 2 Increased sales and decreased profits. Progress is on track with the plan. Highlights Japan Housing Equipment Business: Decreased sales and profits (Sales remained at the same level as the previous year.) Although cumulative sales decreased, sales and operating profit for 3Q (October-December) increased year-on-year for both remodeling and new construction, driven by the effect of expanding new product sales. New Business Domains: Increased sales and profits Sales and profits increased due to increased sales of electrostatic chucks and AD components accompanying the booming semiconductor-related market. International Housing Equipment Business: Decreased sales and profits In the Americas Business, sales increased, driven by growth in WASHLET sales. Operating profit decreased according to plan, due to the implementation of growth investments and the impact of tariffs, etc. In the Asia Business, sales and profits increased due to strong performance in the Taiwan region and Vietnam. In the European Business, sales increased and losses decreased due to higher sales of products including WASHLET. (Group companies remain in the black.) In the Mainland China Business, sales decreased and a loss was recorded. Business restructuring is progressing as planned.
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Copyright © TOTO LTD. All Rights Reserved. FY24 January to March FY24 April to June FY24 July to September FY24 October to December FY25 January to March FY25 April to June FY25 July to September FY25 October to December 1 $ ¥148.6 ¥155.9 ¥149.7 ¥152.4 ¥152.6 ¥144.6 ¥147.5 ¥154.1 1 CNY ¥20.6 ¥21.5 ¥20.9 ¥21.2 ¥20.9 ¥20.0 ¥20.6 ¥21.7 1 € ¥161.3 ¥167.9 ¥164.3 ¥162.6 ¥160.6 ¥163.8 ¥172.3 ¥179.4 1 TWD ¥4.7 ¥4.8 ¥4.6 ¥4.7 ¥4.6 ¥4.7 ¥4.9 ¥5.0 1 VND ¥0.0060 ¥0.0061 ¥0.0060 ¥0.0060 ¥0.0060 ¥0.0056 ¥0.0056 ¥0.0059 1 THB ¥4.2 ¥4.3 ¥4.3 ¥4.5 ¥4.5 ¥4.4 ¥4.6 ¥4.8 1 INR ¥1.8 ¥1.9 ¥1.8 ¥1.8 ¥1.8 ¥1.7 ¥1.7 ¥1.7 3 ※1 ■ Exchange rates (period average) Financial results Unit: Y billion FY24 FY25 YoY Influence of Currency- 3Q 3Q exchange rate neutral basis Net Sales 542.3 547.1 +4.8 -4.0 +8.8 (101%) (102%) Operating Profit 41.5 40.4 -1.1 -1.7 +0.7 [Operating Margin] 【7.7%】 【7.4%】 (97%) (102%) Recurring 45.5 46.5 +1.0 +0.7 +0.3 Profit (102%) (101%) Profit attributable to owners of parent Company 36.4 28.5 -7.9 +1.2 -9.1 (78%) (75%) ■ Japan H.E. business and New business domains: April to December 2025 ■ International H.E. business: January to September 2025 (April to December 2025 for India) 〈Subject periods and segments〉 *1: Recorded an extraordinary loss as restructuring costs in the Mainland China Business (Has been reflected in the initial plan.) Increased sales and decreased profits
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Copyright © TOTO LTD. All Rights Reserved. 4 Sales and profit by business segment 〈Subject periods and segments〉Japan H.E. business, New domain business: - April to December 2025International H.E. Business: - January to September 2025 (Apr to Dec for India) Unit: Y billion ※H.E.: Housing Equipment ※※New business domains : Ceramics business Net Sales FY24 FY25 YoY Influence of Currency- 3Q 3Q exchange rate neutral basis Japan H.E. 363.6 361.8 -1.8 -1.8 (99.5%) (99.5%) International H.E. 144.1 138.1 -6.0 -2.9 -3.1 (96%) (98%) New business domains 34.4 47.0 +12.6 -1.1 +13.7 (137%) (140%) Others 0.2 0.2 +0.0 +0.0 Total 542.3 547.1 +4.8 -4.0 +8.8 (101%) (102%) Operating Profit FY24 FY25 YoY Influence of Currency- 3Q 3Q exchange rate neutral basis Japan H.E. 19.7 17.1 -2.6 -0.6 -2.0 (87%) (90%) International H.E. 9.8 5.5 -4.4 -0.1 -4.3 (56%) (56%) New business domains 14.2 20.2 +6.0 -1.1 +7.1 (142%) (150%) Others -2.2 -2.4 -0.2 -0.2 Total 41.5 40.4 -1.1 -1.7 +0.7 (97%) (102%) ※ ※※ The Housing Equipment Business saw decreases in sales and profits, while the new domain business saw increases in sales and profits.
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Copyright © TOTO LTD. All Rights Reserved. 5 40.4 -5.4 +1.4 41.5 +7.7 -4.3 -4.1 -2.4 -0.9 -1.8 +9.9 -1.2 Cause of increase/decrease of operating profit Unit: Y billion Cost reduction Human resources investment IT related investment Strengthen- ing sales investment, etc. 3Q FY25 OP Increase/decre ase in sales and product range differences etc. External procurement cost Depreciation Develop- ment/ production investment Exchange rate 3Q FY24 OP Price revision effect Impact of an impairment loss in the Mainland China Business, etc. Impact of rising prices of resins, electronic components, etc. Although there were positive effects from increased sales in the new domain business, price revisions, cost reductions, etc., profits decreased due to factors including a decrease in sales in the Housing Equipment Business and impact of external procurement costs.
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Copyright © TOTO LTD. All Rights Reserved. 6 Base segmentJapan Housing Equipment Business: Performance by demand Net Sales JPY 262.5 billion (100%) Operating Profit JPY 16.7 billion (-2.3 billion yen) Remodeling (YoY) New Housing (YoY) Net Sales JPY 99.3 billion (98%) Operating Profit JPY 0.4 billion (-0.3 billion yen) Current status of Remodeling business LAVATORY KITCHEN REST ROOM BATHROOM New Feature EWATER+ For bathroom 〈Launched August, 2025〉 〈Launching February, 2026〉 ● Sales volume decreased in the 1H, but exceeded the previous year's results (104% YoY) in the 3Q (Oct-Dec), and retail sales in the market remained steady. ● New products released in August continue to receive strong demand and orders. ⇒ We will accelerate proposing products, including new bathroom fixtures and faucets scheduled for release in February 2026. Expand TOTO's unique EWATER+ to all products used in bathroom, restroom, lavatory, and kitchen areas Sales decreased on a cumulative basis, but sales in the remodeling business in the 3Q grew year-on-year. We will strengthen our proposal activities for remodeling, leveraging the new products for key areas with new products. REST ROOM LAVATORY KITCHEN SYNLA /sazana/ WY / WT /RW
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Copyright © TOTO LTD. All Rights Reserved. 7 International Housing Equipment Business Unit: Y billion Net Sales FY24 FY25 YoY Influence of Currency- 3Q 3Q exchange rate neutral basis Americas 52.9 55.3 +2.4 -1.3 +3.7 (105%) (107%) Asian & Oceanian Region 35.1 38.3 +3.2 -0.5 +3.7 (109%) (110%) Europe 3.7 4.2 +0.5 +0.0 +0.5 (114%) (113%) Mainland China 52.4 40.4 -12.1 -1.1 -11.0 (77%) (79%) Total 144.1 138.1 -6.0 -2.9 -3.1 (96%) (98%) Operating Profit FY24 FY25 YoY Influence of Currency- 3Q 3Q exchange rate neutral basis Americas 4.9 3.8 -1.1 -0.2 -1.0 (77%) (80%) Asian & Oceanian Region 5.5 7.3 +1.8 -0.0 +1.8 (132%) (132%) Europe -0.3 -0.3 +0.0 -0.0 +0.0 Mainland China -0.3 -5.3 -5.0 +0.1 -5.1 Total 9.8 5.5 -4.4 -0.1 -4.3 (56%) (56%) Sales and profits decreased across the entire International Housing Equipment business.
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Copyright © TOTO LTD. All Rights Reserved. 8 YoY comparison of the number of existing houses sold (based on delivery time) Jan to Sep 2025 : 102% Policy interest rates remain high, despite a downward trend. ⇒ We have established a system capable of responding quickly in anticipation of a recovery in demand resulting from rate cuts. Despite market stagnation due to uncertainty about the future and changes in purchasing behavior, WASHLET demand remains steady. Growth segmentAmericas Business *Figures that do not include consolidated adjustment and common expense allocations Net sales growth of 4Q of FY2025 (October to December 2025) YoY: 114% 373 million dollars (107%) 32 million dollars (-4 million dollars) Sales (YoY) Operating Profit (YoY) ■ Growth rate by product ■ Sales status by product ■ Market trends YoY Sales distribution ratio Net sales Sanitary Ware 109% 51% WASHLET 112% 37% Faucet Fixtures 89% 8% Sales volume WASHLET 118% Sales volume of WASHLET 4Q of FY2025 (October to December 2025) YoY: 120% ｜ WASHLET Mainly in e - commerce and retail chain stores, net sales increased year - on - year across all channels. ｜ Sanitary Ware Sales increased YoY due to increased sales of mid - to high - end products. Sales increased driven by growth in WASHLET sales. Operating profit decreased due to increase of growth investments and the impact of tariffs, which are included in the revised plan.
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Copyright © TOTO LTD. All Rights Reserved. 9 Taiwan Region 56% Vietnam 14% India 10% Thailand 6% Others 14% ■Net Sales (in local currency) Asia Business *Figures that do not include consolidated adjustment and common expense allocations Growth segment ■ Sales Distribution Ratio (Y Billion) Asia Business 38.3 billion yen Taiwan region 4,538 million Taiwan dollars (109%) Vietnam 915.8 billion dong (122%) India 2,198 million Rt. (113%) Thailand 508 million baht (86%) ■ Situation by country and region ■ Growth rate by product (Y Billion) Across Asia YoY Sales distribution ratio Net sales Sanitary Ware 112% 45% WASHLET 105% 25% Faucet Fixtures 108% 27% Sales volume WASHLET 95% Sales volume of WASHLET 4Q of FY2025 (October to December 2025) YoY: 88% * Fiscal year in India April 2025 to March 2026 4Q (Oct to Dec) YoY Taiwan region 99% Vietnam 137% Thailand 93% The Taiwan region saw increased sales due to the increased sales of WASHLET integrated toilets, etc. Vietnam saw increased sales due to a recovery in the market conditions. Taiwan Region Sales increased due to increased sales of integrated toilets, etc. Vietnam Sales increased buoyed by the recovery trend in the market India Sales increased due to the effects of various measures, etc. Thailand Sales decreased due to the harsh market conditions, etc.
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Copyright © TOTO LTD. All Rights Reserved. 10 100 117 3Q, FY24 3Q, FY25 Europe Business Growth segment *Figures that do not include consolidated adjustment and common expense allocations 25 million euros (113%) 1 million euros (+0.6 million euros) Sales (YoY) Operating Profit (YoY) Net sales growth of 4Q of FY2025 (October to December 2025) YoY: 105% Sales volume of WASHLET 4Q of FY2025 (October to December 2025) YoY: 100% ■WASHLET: Growth in sales volume (index) ■ Initiatives to establish market position in the European market Continue and strengthen initiatives to promote the value of WASHLET to plumbers. Training on promoting the value of WASHLET Collaborative event with plumbers Sales increased and profitability was maintained due to the effect of increased sales of WASHLET to key plumbers.
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Copyright © TOTO LTD. All Rights Reserved. 11 Despite decreased sales and a loss, business restructuring is proceeding as planned. Sales volume of WASHLET 4Q of FY2025 (October to December 2025) YoY: 102% Mainland China Business *Figures that do not include consolidated adjustment and common expense allocations Growth segment 1,972 million yuan (79%) -168 million yuan (-204 million yuan) Sales (YoY) Operating Profit (YoY) Net sales growth of 4Q of FY2025 (October to December 2025) YoY: 91% ■ Growth rate by product ■ Structural Reform (announced on April, 2025) YoY Sales distribution ratio Net sales Sanitary Ware 78% 45% WASHLET 83% 28% Faucet Fixtures 78% 22% Sales volume WASHLET 83% * Sales volume exceeded the previous year's figures due to the effect of product and sales strategies. Despite decreased sales and a loss, business restructuring is proceeding as planned.
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Copyright © TOTO LTD. All Rights Reserved. 12 Base segmentMainland China Business: Status of their initiatives Production: Production reorganization and workforce optimization Plants where production was suspended: April 28 Plants where production is underway: As of the end of January ◇ Status of liquidation • Liquidation of the companies is proceeding as planned. ●● Sanitary Ware Production: Completed (Started operation on May 21, 2025) ● Fittings and Bathtub Production: Completed Workforce optimization: Optimization of workforce is partially underway at faucet and bathtub plants while the operation continues ■TOTO Beijing (Beijing City) ■TOTO Huadong (Shanghai City) ■TOTO Fujian (Zhangzhou City) ■TOTO Liaoning (Dalian City) ■TOTO Dalian (Dalian City) ■Nanjing TOTO (Nanjing City) Liaoning Beijing Huadong Fujian Dalian Nanjing * These costs have been included in the plan for the fiscal year ending March 2026. Recorded extraordinary losses associated with the above structural reforms: Approximately 15 billion yen Production scale reduced by approximately 40% due to the reorganization of production for sanitary ware. (Disclosed in April) At the faucet hardware and bathtub plants, we will establish a production system appropriate for their business scale. (Disclosed in October)
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Copyright © TOTO LTD. All Rights Reserved. 13 上期 下期 上期 下期 2024年度 2025年度 0 100 上期 下期 上期 下期 2024年度 2025年度 Base segmentMainland China Business: Status of their initiatives Sales: Initiatives targeting remodeling demand ✓ Focusing resources on areas, applications, and vendors in which we can leverage our strengths ✓ Communication with customers utilizing online and offline channels ✓ Strengthening functions (proposals, construction, etc.) utilizing existing showrooms Focusing resources on areas where TOTO’s strengths can be leveraged through remodeling Outline of main initiatives ■Projects ■Retail *Indicated as an index by setting FY2023 as 100 Start of structural reforms in Mainland China Retail sales and Project sales 1H 1H2H 2H FY2024 FY2025 Retail sales performance is showing signs of recovery due to the synergistic effects of new product launches and house remodeling initiatives. ■Residential Remodeling We actively utilize social media and host events at condominiums where we delivered products. This has led to increased visits to showrooms and product upgrades, resulting in improved retail sales performance. ■Commercial remodeling We aim to improve performance through new initiatives leveraging our proposal capabilities that we cultivated in Japan for public water-related spaces and products. e.g. Seminars at hospitals and welfare facilities for the elderly We continue to promote initiatives targeting key priorities. We aim to expand contact points with customers by increasing products that meet market needs, leading to a contribution to overall performance.
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Copyright © TOTO LTD. All Rights Reserved. 14 August 2025 February 2025 No Product Janurary 2026 December 2025 Product: New product launch plan Base segmentMainland China Business: Status of their initiatives Current market structure and new products launch schedule Lineup of integrated toilets Shift up High-end Middle-end Volume Middle- high-end Price range -FY2024 FY2025- High-end Middle-high-end Middle-end Model change Expansion of the product lineup to meet market needs - > Expansion of contact points with customers * We are expanding other products as well. ■ Effect of new product launches TOTO products are now included in customers’ buying considerations, and a positive impact on target customers in remodeling is beginning to be seen. A shift upmarket has been achieved NEW Contact points with customers have expanded, resulting in a shift to higher products. We will accelerate this momentum further by adding new products that meet market needs. Full model change Expand contact opportunities by sequentially introducing products that meet the needs of growing markets Creation and expansion of demand by proposing new value as represented by NEOREST
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Copyright © TOTO LTD. All Rights Reserved. 15 ｜ Electrostatic chucks Sales increased due to favorable conditions in the semiconductor market accompanying the increased demand from data centers. New demand: Sales slowdown due to increased DRAM investment among memory manufacturers. Replacement demand: Increased as device manufacturers maintained high operating levels . For 3D NAND memory For logic semiconductors Technological innovations in etching equipment Fundamental technological innovation in semiconductor multi-layering. (High power and ultra-low temperature environments) • Few-nanometer node miniaturization (Precise wafer temperature control) ・Thorough low-particle control Characteristics of TOTO 【Electrostatic chucks】 • Overwhelmingly high material purity ➔ High durability and long service life • Ultra-high-precision surface processing ➔ Precise wafer temperature control • Unique bonding & insulation technology ➔ Maintain performance at ultra-low temperatures 【AD Components】 Proprietary dense film formation ➔Industry-leading low-particle performance 【Electrostatic chucks】 High-precision heater control ➔Consistent temperature control Exceptionally high purity ➔High durability and long life ｜ AD Components Sales increased due to robust AI - related demand, the impact of timing differences in the 1H and higher unit prices. New Business Domains: Advanced Ceramic Business Growth segment 47.0 billion yen (137%) 20.2 billion yen (+6.0 billion yen) Sales (YoY) Operating Profit (YoY) ■ Status of major products and applications ■ TOTO's strengths in the long-term outlook: Gaining overwhelming customer trust We aim for long-term growth by supporting technological innovation in advanced manufacturing equipment through our proprietary technology and production system. Demand for both new and replacement purpose Sales and profits increased due to increased sales of electrostatic chucks and AD components accompanying robust advanced semiconductor market conditions. Production system: Achieving high-yield, highly profitable systems through full-scale transformation to a smart factory
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Copyright © TOTO LTD. All Rights Reserved. 18 2. Topics
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Copyright © TOTO LTD. All Rights Reserved. ■The word “WASHLET” has been newly added to the Oxford English Dictionary In the December 2025 revision of the Oxford English Dictionary, the trademark name “WASHLET” was newly listed. The toilet habits we promoted have been widely recognized globally as an essential part of people's lives worldwide. 16 Americas 5％ Americas 12.5％ Japan 73％ Japan 70％ International 27％ International 30％ 2019 2024 TOTO WILL2030 To Realize Cleanliness and Comfort; Wellness Cumulative WASHLET shipment volume surpasses 70 million —45 years and 5 months since sales began in June 1980 (as of November 2025)— Amid intensifying competition in the China market in the International Housing Equipment Business, shipment volume grew, primarily in the Americas market. Sales composition of WASHLET (2019-2024) Among international shipments, the proportion accounted for by the Americas has significantly increased. We will expand sales volume in the International Housing Equipment Business, using the Americas as the primary driver. We will continue to accelerate proposal initiatives in the global market and promote a culture of comfortable living.
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Copyright © TOTO LTD. All Rights Reserved. 17 Contributing to the Sustainable Development Goals (SDGs) We were named on CDP’s A List for Climate Change and Water Security for the second consecutive year. TOTO Water Environment Fund's initiatives have been recognized for contributing to the establishment of sustainable water cycle systems. CDP: An international non-profit organization that, based on requests from global institutional investors and others interested in environmental issues, engages in activities requesting that companies and municipalities address environmental issues such as climate change and water resource protection and disclose information about their initiatives. It collects, analyzes, and evaluates information on companies' environmental activities, annually certifying the most outstanding companies on its A List. —Our initiatives such as reducing CO 2 emissions to combat climate change and reducing water usage to manage water risks were evaluated.— Certified as a Water Cycle ACTIVE Company for the second consecutive year Installed water storage tank (Republic of Uganda) We have selected the recipient organizations for the 21st TOTO Water Environment Fund Grants awarded to 21 organizations in total: 13 domestic and 8 international In FY2026, we will support projects from 23 organizations in total, including 2 organizations already receiving funding. We will continue to advance sustainability management, aiming to realize Cleanliness and Comfort; Wellness and contribute to society and the global environment.
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This presentation material contains forward-looking statements based on assumptions, estimates and plans as of January 30, 2026. Actual performance may differ materially from these forward-looking statements due to risks and undermined factors arising from changes in the world economy, competition and foreign currency exchange rates.