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Copyright © LIXIL Corporation. All rights reserved. LIXIL Corporation TSE Code: 5938 H1 Financial Results for the Fiscal Year Ending March 31, 2026 [ IFRS ] (From April 1, 2025 to September 30, 2025) October 31, 2025
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1 Revenue decreased while core earnings and EBITDA increased year-on-year KEY HIGHLIGHTS Summary of results for H1 FYE2026 • Sales growth slowed in Q2 from Q1 levels, which had seen a surge in demand ahead of changes in the Japan Building Standards Act, specifically in the abolition of the “Article 4 Special Provision“. Renovation sales of water-related products remained solid • LHT’s core earnings remained flat due to additional costs associated with the ceramic siding business. Renovation sales are trending upward from September onwards, driven by promotional efforts Japan International Others • For the LWT international business, profits substantially improved, despite a decrease in revenue YoY • Strong performance continued in Europe, the Middle East and India. Housing markets remain sluggish in the Americas and China • Tax expenses decreased due to a favorable change in the corporate tax rate at the consolidated subsidiary (LIXIL Europe). Full-year earnings forecast remains unchanged (details will be reassessed Q3 onwards, considering other factors) • Full-year dividend forecast remains unchanged. Resolved interim dividend of JPY45 / share
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2 KEY HIGHLIGHTS Business environment and outlook for FYE2026: Japan Business Renovation sales are expected to remain strong, while the demand surge related to new housing has subsided Showroom visitor numbers saw an upward trend in August and September Continued impact from the decline in new housing starts Running a promotion for products eligible for the window renovation subsidy, with sales expected to increase from Q3 onwards LWT’s Renovation Sales LHT’s Renovation Sales Living’s Renovation Sales LWT LHT Living Sales for water-related renovations are expected to remain strong, while the demand surge related to new housing has subsided Profitability declined slightly due to an unfavorable product mix in Q2. Focusing on promoting high-end product sales to improve profitability 22.2 24.1 21.8 22.7 0.0 15.0 30.0 45.0 FYE2025 FYE2026 Q1 Q2 Sales growth of 6% (JPY billion) 40.0 40.8 40.3 42.4 0.0 15.0 30.0 45.0 FYE2025 FYE2026 Q1 Q2 Sales growth of 3% (JPY billion) 30.0 33.3 32.0 33.0 0.0 15.0 30.0 45.0 FYE2025 FYE2026 Q1 Q2 Sales growth of 7% (JPY billion) Despite challenges such as low new housing starts, renovation sales is driving strong performance
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3 KEY HIGHLIGHTS Business environment and outlook for FYE2026: LWT International Despite the global trend of interest rate cuts, delays in policy decisions to promote housing construction are being seen due to government instability in Europe which is our key market Profitability is recovering in Europe, driven by the positive effects of structural reforms and strong sales of color products Demand weakness continues in the US and China Demand remains robust in the Middle East and India Entering an interest rate cut phase; mortgage rates are declining somewhat compared to peak levels The housing market recovery is slowed due to tariffs and immigration policy, with difficult circumstances likely to last through this fiscal year Positive impacts from price optimization and structural reforms are expected to materialize gradually from FYE2026 (and substantially from FYE2027 onwards) Americas (1) Freddie Mac (prepared by LIXIL) LWT International 0.3 5.9 5.3 5.1 5.4 5.5 0.3% 4.9% 4.3% 4.2% 4.7% 4.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0.0 2.0 4.0 6.0 8.0 FYE25 Q1 FYE25 Q2 FYE25 Q3 FYE25 Q4 FYE26 Q1 FYE26 Q2 Core earnings CE% （JPY billion） 0 50 100 150 200 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 4/22 7/22 10/22 1/23 4/23 7/23 10/23 1/24 4/24 7/24 10/24 1/25 4/25 7/25 Interest Rates and Housing Starts Trends(1) New-Housing-Starts 30-year fixed-rate mortgage (1,000 units)
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4 KEY HIGHLIGHTS (1) National Bureau of Statistics of China (prepared by LIXIL). Jan-Feb 2025: Adjusted for Lunar New Year impact A full market recovery is expected next year onwards; sales improved by 5% YoY (13% compared to two years ago), due to strong sales of color products and sales initiatives Profitability in Europe stabilized, driven by fixed cost reductions from structural reforms Sales in the IMEA grew by 16%, driven by robust project momentum in the Middle East, which in turn contributed significantly to profit Europe, IMEA (India, Middle East & Africa) Business environment and outlook for FYE2026: LWT International Vietnam shows signs of recovery following a prolonged real estate slump, with sales improving by 10% YoY Thailand remains sluggish due to weak economic conditions and intense competition While China’s sanitary ware market remains challenging due to weak economic conditions and intense competition, GROHE product sales were a bright spot, improving by 25% Asia Pacific, China China: New Residential Construction Area YoY Change Trend (1) The sales composition ratio of color products to total faucet sales 32% revenue growth (H1 YoY)
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5 Revenue: JPY735.9 billion, down JPY3.8 billion year-on-year • Q2 (3 months) YoY: 0% in Japan and +1% in international markets (-1% excluding foreign exchange impact) • H1 (6 months) YoY: +1% in Japan and -4% in international markets (-3% excluding foreign exchange impact) Core earnings: JPY16.9 billion, up JPY6.4 billion year-on-year • Q2 (3 months) YoY: +JPY0.1 billion in LWT, -JPY1.5 billion in LHT, -JPY0.1 billion in Living, and -JPY0.6 billion for consolidation adjustment/other factors • H1 (6 months) YoY: +JPY6.5 billion in LWT, -JPY0.1 billion in LHT, +JPY0.7 billion in Living, and -JPY0.8 billion for consolidation adjustment/other factors EBITDA(1): JPY57.8 billion, up JPY5.5 billion year-on-year Profit(2): JPY3.4 billion, up JPY7.3 billion year-on-year • Q2 (3 months) YoY: Increased by JPY2.3 billion due to a decrease in income tax expenses, despite an increase in other expenses • H1 (6 months) YoY: Increased by JPY7.3 billion due to an increase in core earnings and a decrease in income tax expenses, despite increase in other expenses and finance costs H1 FYE2026 PERFORMANCE HIGHLIGHTS Revenue decreased while core earnings increased year-on-year (1) EBITDA=Core earnings + Depreciation + Amortization (2) Profit = Profit attributable to owners of the parent
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6 H1 FYE2026 CONSOLIDATED BUSINESS RESULTS (1) Equivalent to "Operating profit" of JGAAP (2) Profit attributable to owners of the parent (3) EBITDA=Core earnings + Depreciation + Amortization ■ Gross profit margin: Increased by 1.6pp YoY ■ SG&A expenses: Increased by JPY4.4 billion YoY (Japan JPY4.7 billion increase, International JPY0.4 billion increase, forex effect JPY0.7 billion decrease) mainly due to higher personnel costs in Japan. SG&A ratio increased by 0.8pp ■ CE margin: Increased by 0.9pp YoY (1) (2) (3)
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7 Core earnings increased for both LWT Japan and International, driven by strong profitability in Europe and the Middle East. While LHT’s revenue saw a slight decline, core earnings were flat, helped by price optimization and growth in renovation sales. Living achieved both revenue and core earnings increases, supported by strong renovation sales H1 FYE2026 BUSINESS RESULTS BY SEGMENT Forex impact(1) Q2 3months: Revenue +JPY2.9 billion, CE +JPY0.1 billion (1) Forex translation effect gain(loss) from international subsidiaries (2) The segment breakdown has been changed from FYE2026. Please refer to the next page for the results under the former reporting segments H1 6months: Revenue –JPY2.9 billion, CE +JPY0.1 billion
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8 Business results for H1 under previous reporting segments H1 FYE2026 BUSINESS RESULTS BY SEGMENT Forex impact(1) (2) (1) Forex translation effect gain(loss) from international subsidiaries (2) Includes consolidation adjustments resulting from the change from 2 reporting segments to 3 reporting segments (2) Q2 3months: Revenue +JPY2.9 billion, CE +JPY0.1 billion H1 6months: Revenue –JPY2.9 billion, CE +JPY0.1 billion
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9 Total assets increased marginally due to the impact of foreign exchange rates on assets held in Europe. The equity ratio is 34.1% CONSOLIDATED FINANCIAL POSITION Mar-2025 Sep-2025 Mar-2025 Sep-2025 Mar-2025 Sep-2025
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10 Operating cash flow declined due to an increase in inventories. Free Cash Flow (FCF) remained positive CASH FLOW STATUS AND CASH BALANCE (1) Includes discontinued operations (2) “FCF” = Operating CF + Investing CF (1) (1) (4) (3) (2) (4) (2) (3) (3) CAPEX = Purchase of property, plant and equipment + Purchase of intangible assets (Excluding Right of use assets in IFRS16) (4) “Others” = Effects of exchange rate changes (1)
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RESULTS BY BUSINESS SEGMENT – Water Technology Business (LWT) – Housing Technology Business (LHT) Effective from Q1 FYE2026, established the new segment, “Living Business”, by integrating the kitchen and vanity business from the "Water Technology Business" and the wooden interior materials business from the "Housing Technology Business". These businesses share many similarities in terms of products, manufacturing processes, and business models. In light of recent changes in the business environment and the increasing importance of India and the Middle East, which are experiencing particularly significant growth, the disclosure regions were changed to the following five. • Americas • Europe • IMEA (India, Middle East & Africa) • Asia Pacific • China – Living Business (Living)
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12 (1) FYE2025 results include the US bathing business, which was transferred to the third-party in March 2025 (2) YoY vs Results excluding forex impact: Revenue –JPY7. 1 billion, -3%, Core earnings +JPY4.6 billion, +73% Core earnings Japan: CE increased YoY driven by the impact of price optimizations and higher renovation sales Int’l(2): CE increased YoY due to a strong performance in Europe and the Middle East, along with operational improvements Int’l CE distribution ratio: 53.1%, up by 8.4pp YoY Japan: Revenue increased YoY on strong renovation sales Int’l(2): Despite growth in Europe and the Middle East, revenue decreased YoY in both local currency and JPY terms mainly due to lower sales in the US and China attributed to continued sluggish demand, and the transfer of the bathing business in the US in the last fiscal year Int’l revenue distribution ratio:60.8%, down by 1.9pp YoY Revenue (1) Japan revenue and core earnings increased driven by strong renovation sales. International core earnings rose as strong performance in Europe and the Middle East outweighed lower revenues in the Americas and China WATER TECHNOLOGY
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13 INTERNATIONAL WATER TECHNOLOGY REVENUE BY REGION Revenue by region (Management basis) JPY billion H1 FYE2026 Results YoY local currency basis FYE2026 Forecast YoY local currency basis Americas 76.8 -5% +10% Europe 86.7 +5% +5% IMEA (India, Middle East, Africa) 37.1 +16% +12% Asia Pacific 20.4 +1% +11% China 20.7 -7% +7% Adjustments -2.9 - - Water Technology International Business Total (Statutory basis) 238.9 (-4% YoY) 511.0 (+4% YoY) (2) (1) (1) Americas declined declined Revenue declined due to a lack of recovery in the renovation market and the ERP system transition in Q1 Upon completion of the bathing business transfer, profitability improvement will be pursued by accelerating a shift in products and sales channel mix Europe increased increased Revenue grew, driven by higher sales volumes in key markets such as Germany, the Netherlands, and Italy Sales of color faucets remained strong; gradual sales recovery in almost all product categories drove profitability IMEA increased increased Revenue across all Middle East markets increased, driven by continued strong demand, particularly in Saudi Arabia and other GCC countries Sales in India were flat YoY Asia Pacific declined increased Vietnam's revenue increased, supported by retail business recovery, partly attributed to the promotion initiatives Thailand's revenue declined due to project delays caused by sluggish demand and the earthquake China declined declined Ongoing challenges in the real estate sector continue, suppressing a recovery in consumer demand GROHE brand sales improved, while other brands continued to underperform due to intense competition JPY Local currency (3) (1) Statutory basis currency: H1 FYE2026 results 1USD=JPY146. 57, 1EUR=JPY167.74 Management basis currency: FYE2026 1USD=JPY155.0, 1EUR=JPY161.2 (2) With the transfer of US bathing business, we have excluded its sales from FYE2025 results. Including its sales from FYE2025, sales YoY would be -14% (3) The revenue growth rate forecast is calculated excluding the impact of the US bathing business transfer. Including the bathing business in FYE2025 results, revenue YoY would be -1%
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14 In Japan, revenue remained nearly flat as strong renovation sales offset a decline in new housing. International business offset the sluggish demand in Vietnam and Thailand by expanding sales in India HOUSING TECHNOLOGY (1) H1 FYE2026 Results (Reference) Revenue remained flat YoY as strong renovation sales offset the slight decline in sales for new housing LHT excl. building business Revenue JPY213.0 b illion, CE JPY8.3 billion, CE margin 3.9% Building business Revenue JPY46.1 billion, CE JPY3.9 billion, CE margin 8.5% CE remained flat YoY, driven by price optimization and inventory valuation gains. This offset the decline in new housing sales and cost associated with the ceramic siding business Improved profitability in the building business (1) Core earningsRevenue
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15 Strong renovation sales led to increased revenue and core earnings LIVING Revenue increased YoY, driven by strong growth in renovation sales and continued robust new housing sales for kitchen products Core earnings increased YoY, driven by strong renovation sales that offset a Q2 slowdown from an unfavorable product mix. Additionally, effective price optimization mitigated the impact of rising raw material and component costs Core earningsRevenue Kitchen Richelle Vanities Lumisis Wooden interior materials Lasissa
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16 APPENDIX: FINANCIAL DATA
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17 JPY billion in % Segments Major products Full-year FYE2025 Results H1 FYE2025 Results H1 FYE2026 Results Quarterly YoY YoY FYE2025 FYE2026 1Q 2Q 3Q 4Q 1Q 2Q LWT Sanitaryware** 115.2 53.4 56.3 +5.4% +5.7 +8.7 +10.9 +6.9 +8.6 +2.5 Bathroom Units 92.4 44.7 46.1 +3.2% +4.2 +0.6 +4.5 +1.6 +6.3 -0.1 Tiles 30.2 14.5 14.3 -1.5% -0.9 -6.2 -3.1 -3.0 -2.6 -0.5 LHT Housing sashes and others 187.9 94.4 94.4 +0.1% +1.3 -5.4 +5.6 +4.5 +0.6 -0.5 Exterior 94.5 46.9 48.1 +2.5% -0.5 -3.4 -2.1 +5.5 +3.7 +1.3 LHT others 38.7 19.1 19.2 +0.4% -12.1 -13.3 -8.5 +1.2 +1.4 -0.6 Building sashes 101.0 48.8 46.1 -5.5% +2.0 +8.0 -6.1 +1.9 -9.3 -2.2 Housing and Services business 19.0 9.4 8.6 -9.0% -26.7 -25.0 -1.7 -8.0 -6.8 -11.1 Living Kitchens 100.4 47.6 49.5 +4.1% +2.3 +1.0 +2.5 +4.7 +6.8 +1.4 Vanities 36.6 17.3 17.7 +2.4% -5.8 -6.4 -4.7 -7.0 +3.4 +1.4 Wooden interior materials 57.2 27.5 27.5 +0.2% -3.7 -4.9 -2.2 +0.7 +3.0 -2.4 International 519.4 261.8 251.8 -3.8% +9.9 +1.2 +5.7 -2.5 -8.5 +1.0 Others/consolidation & Adj. 112.2 54.4 56.2 - Total 1,504.7 739.8 735.9 -0.5% +3.0 -0.8 +2.6 +1.1 -1.4 +0.3 LWT Faucets 28.0 12.8 14.0 +9.8% -0.3 +15.3 +10.7 +8.5 +16.0 +4.3 （Reference）**Sale of Faucets included in “Sanitaryware” LWT sales stayed strong, fueled by robust renovation demand, price optimizations, and sales initiatives. For LHT, sales of housing sashes were flat YoY. Living sales remained strong, despite a slight slowdown in kitchen sales REVENUE BY PRODUCT AND SERVICE (1) The internal product categorization for sales of sanitaryware and vanities has changed from Q1 FYE2025. For the percentage increase/ decrease in FYE2025, please refer to the past Financial Results for the Fiscal Year Ended March 31, 2025 (2) Please refer to p.19 for the revenue of water-related products in international business (1) (1) (2)
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18 H1 (6 months) Q2 (3 months) JPY billion FYE2025 Results(1) FYE2026 Results Increase /decrease YoY FYE2026 Results YoY Sales of renovation-related products 184.7 193.6 +8.9 +4.8% 96.9 +3.3% LWT-J +7% +3% LHT +3% +5% Excl. building +4% +5% Building business -6% +6% Living +6% +4% Renovation sales ratio 46% 47% +1.6pp 47% +1.4pp Renovation sales ratio increased by 1.6pp. All segments saw an increase due to continued strong demand STRATEGY TO STRENGTHEN JAPAN’S RENOVATION SALES Renovation sales ratio by business segment (YoY) (1) Sales of renovation product was restated for comparison on the same basis Inner window In-plus LWT 55% LHT 41% H1 FYE2025 H1 FYE2026 57% 42% Japan Total 46% 47% Increase /decrease +1.7pp +1.4pp +1.6pp Living 47% 49% +1.7pp
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19 H1 FYE2026 (6 months) Q2 FYE2026 (3 months) Intl. Total Americas Europe IMEA APAC China Intl. Total Americas Europe IMEA APAC China Sales distribution ratio Bath faucets and showers 42% 13% 60% 61% 34% 49% 42% 13% 59% 60% 34% 49% Toilets 44% 66% 24% 35% 62% 39% 44% 67% 25% 36% 63% 38% Kitchen faucets and water systems 8% 5% 15% 4% 3% 5% 8% 6% 15% 4% 3% 6% Bathing and showering systems 4% 13% 0% 0% 1% 1% 4% 12% 0% 0% 1% 1% All others 2% 3% 1% 0% 1% 6% 2% 3% 1% 0% 0% 6% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Sales growth Bath faucets and showers +3% -12% +2% +18% +5% -2% +4% -14% +3% +19% +1% +1% Toilets +2% +1% +11% +17% -0% -16% +4% +3% +13% +15% -2% -12% Kitchen faucets and water systems +4% -9% +7% +12% +48% -3% +8% -3% +11% +23% +33% +3% Bathing and showering systems -24% -25% -16% -21% +8% +46% -24% -25% -8% +10% +9% +53% Leveraging our brands, global structure for R&D, and roll-out of differentiated products, we are positioned for renewed growth by quickly responding to local needs (1) GROWTH IN INTERNATIONAL WATER TECHNOLOGY BUSINESS (1) See also, p.27, 29-32,74 of our INTEGRATED REPORT 2025, for progress of “Grow Global Water Business“ in the LIXIL Playbook https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym41/181197/00.pdf#page=28
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20 H1 FYE2025 H1 FYE2026 Int’l +4.4(+63%) 10.5 CE Margin 1.4% Japan +2.8(+13%) Sales in Japan SG&AMix/pricing Cost International business Consolidation adjustment/ others H1 FYE2026 CHANGE IN REVENUE AND CORE EARNINGSRevenue Core earnings JPY billion JPY billion LWT -0.4 LHT -0.9 Living +0.6 LWT Intl. +4.6 LHT Intl. -0.3 (Reference) GROHE +6.3 ASB -2.2 Others +0.3 739.8 735.9 Material price -5.3 LWT -1.3 LHT -3.4 Living -0.6 Cost reduction +2.1 LWT -0.1 LHT +1.9 Living +0.3 Change +6.4 (+60.4%) Activity costs and other costs LWT -1.0 LHT -2.6 Living -0.2 YoY -1% -1% Japan +4% (Renovation +7%) (Others +1%) International -4% Japan -1% (Renovation +3%) (Others -3%) International -1% H1 FYE2025 H1 FYE2026 Change -3.8 (-0.5%)+3% LWT LHT Consolidation adjustment/ other Living Japan +3% (Renovation +6%) (Others -1%) 0 Full-year forecast (progress rate) +3.5 (-) +20.4 (51%) -9.4 (34%) -7.7 (49%) +3.7 (119%) -6.8 (12%) LWT +4.6 LHT +5.2 Living +0.7 16.9 CE Margin 2.3%
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21 Q2 FYE2025 Q2 FYE2026 Int’l -0.6(-10%) 9.9 CE Margin 2.7% Japan -0.8(-7%) Sales in Japan SG&AMix/pricing Cost International business Consolidation adjustment/ others Q2 FYE2026 CHANGE IN REVENUE AND CORE EARNINGSRevenue Core earnings JPY billion JPY billion LWT -0.9 LHT -0.5 Living +0.4 LWT Intl. -0.4 LHT Intl. -0.2 (Reference) GROHE +1.2 ASB -1.4 Others -0.4 370.0 371.3 Material price -2.0 LWT -0.4 LHT -1.4 Living -0.2 Cost reduction 0 LWT +0.5 LHT +0.1 Living -0.6 Change -2.0(-20.5%) Activity costs and other costs LWT -1.0 LHT -1.7 Living -0.2 YoY +1% -1% Japan +2% (Renovation +3%) (Others 0%) International +1% Japan -1% (Renovation +5%) (Others -5%) International +2% Q2 FYE2025 Q2 FYE2026 Change +1.3(+0.4%)0% LWT LHT Consolidation adjustment/ other Living Japan 0% (Renovation +4%) (Others -3%) 0 LWT +2.3 LHT +2.2 Living +0.5 7.8 CE Margin 2.1%
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22 H1 FYE2026 OTHER INCOME AND EXPENSES, FINANCE INCOME AND COSTS Other income includes: (1) One-time profit recognition in Q1 due to an equity-method affiliate conversion of an investment Other expenses include: (2) Impairment losses on the IT system (3) Costs from the withdrawal of LHT's ceramic siding business and the reorganization of European bases Losses on exchange differences: due to recent currency fluctuations (1) (2) (3)
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23 (1) Difference between sum total of Japan and International in Revenue and Core earnings and “Total” is the amount of consolidation, adj. & others (2) Please refer to “Consolidated Financial Statements under IFRSs for the Year Ended March 31, 2025” disclosed on Apr. 30, 2025, for the FYE2025 results under the new reporting segments (1) (1) RESULTS AND FORECASTS BY SEGMENT
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24 PERFORMANCE OF MAJOR INTERNATIONAL SUBSIDIARIES (1) Please refer to p42-48 of the FYE2025 Consolidated Financial Statements “14. Goodwill and Other Intangible Assets” for assessment of goodwill and intangible assets https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym35/183023/00.pdf#page=54 FX rates Average Current USD JPY146.57 JPY148.88 EUR JPY167.74 JPY174.47 H1 FYE2026 ASB (ASD Holdings) (USD million) FYE2025 H1 FYE2026 Grohe Group (GROHE) (EUR million) FYE2025 H1 FYE2026 Balance Balance Balance Balance Goodwill(1) 225 225 Goodwill(1) 1,199 1,182 Intangible assets(1) 221 218 Intangible assets(1) 1,382 1,377 ASB (ASD Holdings) (USD million) FYE2025 FYE2026 H1 YoYQ1 Q2 Q3 Q4 Full-year Q1 Q2 H1 Revenue 298 286 262 276 1,122 247 250 497 -15% Core earnings -12 -6 -13 -12 -44 -19 -16 -34 - Core earnings margin - --- - -- -- Grohe Group (GROHE) (EUR million) FYE2025 FYE2026 H1 YoYQ1 Q2 Q3 Q4 Full-year Q1 Q2 H1 Revenue 390 393 412 406 1,601 417 425 842 +7% Core earnings 20 39 44 47 150 51 44 96 +62% Core earnings margin 5% 10% 11% 12% 9% 12% 10% 11% +3.8pp
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25 APPENDIX: BUSINESS AND ESG-RELATED TOPICS
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26 Launched the premium model of bathtope, a system bath with removable bathtub(1) BUSINESS AND ESG RELATED TOPICS (1) News release https://newsroom.lixil.com/ja/2025072501 (JP only) (2) News release https://newsroom.lixil.com/2025091701 Contribute to a Low-Carbon Society and Circular Economy Make Better Homes a Reality Through Innovation Standardized PremiAL, a recycled low-carbon aluminum, across its product lines with no extra cost (2) • Starting this October, LIXIL is progressively rolling out PremiAL across its product line, offering a recycled aluminum that reduces CO2 emissions by approximately 50% compared to aluminum manufactured using new ingots. Featuring in-house manufactured aluminum extrusions, it comes at no extra cost • Contributing to a decarbonized society, LIXIL further expands its positive impact by balancing environmental and economic value • PremiAL R100, a 100% recycled low-carbon aluminum, has been selected as a finalist among over 750 applications at the Reuters Global Sustainability Awards 2025 • Launched the premium G-type model of bathtope, a bathroom space with a foldable fabric bathtub that debuted in Japan last year, representing “a new era of freedom in bathing” • The G-type features a sliding door to create a seamless connection between the bathroom and wash area. Carefully selected high-end fixtures create an open and refined bathroom space • Providing value-added products and services for diverse lifestyles, making better homes a reality
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27 BUSINESS AND ESG RELATED TOPICS Global Sanitation & HygieneMeeting Diverse Lifestyles and Needs for Better Homes Participation in TICAD 9 Partner Events • Custom Vanity: Offers functionality (a large basin, easy clean) and design versatility (wide range of finishes). All-in-one "set proposal" streamlines professional user workload • Laundry Plus: Modular items allow personalized laundry spaces to match one’s layout and preferences, optimizing workflow and household efficiency (1) News release https://newsroom.lixil.com/ja/2025011302 (JP only) (2) Make a Splash! https://www.lixil.com/en/makeasplash/ (3) News release https://newsroom.lixil.com/20250902_ticad9 New Vanity Space Products Launched “Changing the Norms of the Vanity Space” (1) • CEO Seto spoke at an event spotlighting investments to address health issues that Africa faces, co-hosted by the Triple I for Global Health, the Cabinet Secretariat of Japan and UNICEF, where he discussed the importance of public-private partnerships to improve the sanitation and hygiene environment • In addition to the Triple I event above, during a panel discussion on the “Make a Splash!”(2), a strategic partnership between LIXIL and UNICEF, LIXIL presented key lessons* for creating a sustainable “sanitation economy” to help achieve SDGs Target 6 (3) *Building a supply chain for last-mile communities, power of public- private promotion, reducing market fragmentation, smart public finance and active engagement in policy processes
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28 400 500 600 700 800 900 1,000 1,100 1,200 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2023 2024 2025 MARKET TRENDS Trend of new housing starts in Japan New housing construction trends in Japan Jan-Jun 2025: -7.5% Aluminum price trend Jan-Aug 2025 (8 months) Apr-Aug 2025 (5 months) Units YoY Units YoY Total new housing starts 483,584 -8.1% 277,065 -19.4% Owner- occupied(1) 129,534 -8.5% 76,782 -18.1% Rental homes 214,955 -5.9% 122,118 -18.9% Condos for sale 58,831 -16.5% 30,551 -32.1% Detached houses for sale(2) 74,274 -7.1% 43,358 -13.7% Detached houses total (1)+(2) 203,808 -8.0% 120,140 -16.6% Foreign exchange rates (Average rate) FYE2024 Actuals FYE2025 Actuals FYE2026 Assumptions US dollar JPY144.40 JPY152.48 JPY155.0 Euro JPY156.80 JPY163.62 JPY161.2 Results and assumptions (price) FYE2024 Actuals FYE2025 Actuals FYE2026 Assumptions Aluminum (Purchasing price) 335,000 398,000 448,000 Copper alloy 1,009,000 1,170,000 1,262,000 Copper price trend Annualized seasonally adjusted data Source︓Statistics of new housing starts, Ministry of Land, Infrastructure, Transport and Tourism (Jan 2023-Aug 2025) （year-on-year） Jan-Aug 2025: -8.1% Source︓LME 3 months (From Jul 3, 2023, to Oct 14, 2025) (Unit: USD) (Unit: USD) (JPY per tonne) Apr 2025- Oct 2025Apr 2024 - Mar 2025Jul 2023 - Mar 2024 Source︓LME 3 months (From Jul 3, 2023, to Oct 14, 2025) Apr 2024 - Mar 2025Jul 2023 - Mar 2024 Apr 2025- Oct 2025 (Unit: thousand)
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29 (REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 CHANGE IN PROFIT LEVEL STRUCTURE IS AS SHOWN 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/loss Finance income/costs Share of profit (loss) of investments accounted for using equity method Profit before income taxes Profit before tax Profit from continuing operations Discontinued operations Profit for discontinued operations Net profit attributable to 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"
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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.