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新しい 幸せ を 、 わかす こと 。 NO NORITZ FY2026 Q2 ( Interim ) Results Financial Results Presentation Materials ( Briefing Material ) August 7 , 2026 Noritz Corporation Securities Code : 5943 The financial outlook in this material is based on information available to the Company as of the publication date and reflects projections on its own and therefore entails risks and uncertainties . Accordingly , there is no guarantee that any results will align with the forecasts . 1
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ContentsFY2026 Q2 (Interim) Financial Results•Overview/Year-on-Year Comparison•Domestic Business/Overseas Business•Review of Domestic Business (by Section)/Overseas Business (by Area)•Capital PolicyRevised FY2026 Full-Year TargetsSupplementary Financial Data
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FY2026 Q2 (Interim) Financial Results
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OverviewFY2026 Q2 (Interim) Financial ResultsNet SalesOperating IncomeProfit¥99.5bn (up ¥1.0bn YoY) (up ¥0.7bn vs. forecast)¥1.8bn(up ¥0.1bn YoY) (up ¥1.4bn vs. forecast)¥4.9bn (up ¥3.7bn YoY) (up ¥2.3bn vs. forecast)Domestic: ¥69.3bn (up ¥4.0bn YoY)Overseas: ¥30.2bn (down ¥3.0bn YoY)A gain of ¥4.6 billion on the sale of investment securities was recognized as extraordinary income.Domestic: ¥1.3bn (up ¥0.6bn YoY)Overseas: ¥0.4bn (down ¥0.4bn YoY) •Consolidated net sales increased. Domestic sales grew significantly across all business sectors. Overseas sales declined as the downturn in China could not be offset.•Consolidated operating income increased, exceeding the announced forecast. Domestic operating income increased significantly, while overseas operating income declined.•Profit increased further due to the sale of investment securities.
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Year-on-Year ComparisonFY2026 Q2 (Interim) Financial Results(Millions of yen, unless otherwise stated) Average exchange rates: US$1 = ¥158.57, RMB1 = ¥23.13, and A$1 = ¥111.32* Net sales for the Domestic Business and the Overseas Business reflect external transactions only. YoY Change(%)YoY Change(amount)1H FY2026Results1H FY2025Results+1.1+1,04399,56698,523Net sales+6.3+4,09969,36265,263Domestic Business(9.2)(3,055)30,20333,259Overseas Business+10.6+1751,8341,658Operating income+99.4+6691,342673Domestic Business(50.1)(493)491985Overseas Business(9.6)(215)2,0202,236Ordinary income+314.9+3,7924,9961,204Net income attributableto shareholders of parent company
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Domestic BusinessFY2026 Q2 (Interim) Financial ResultsHigher sales across all sections and improved production efficiency offset rising material costs, resulting in higher operating income. YoY Change(%)YoY Change(amount)1H FY2026Results1H FY2025Results+6.3+4,09969,36265,263Net sales+6.9+3,67357,07153,397Water Heaters and HVAC +6.3+3,07751,59248,515o/w Residential+12.2+5975,4794,882o/w Non-residential+3.6+2807,9917,711Kitchen Appliances+3.5+1454,300 4,154Other+99.4+6691,342673Operating income (Millions of yen, unless otherwise stated)In the Water Heaters and HVAC section, unit sales increased through market share expansion initiatives, while there was a temporary increase in demand due to geopolitical tensions in the Middle East.In the kitchen appliances section, sales volume increased with new built-in gas cookers, and range hoods maintained strong performance. Operating income increased despite surging material prices, driven by higher sales and lower processing costs.
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Strong growth in North America and Australia, while continued weak market conditions in China resulted in lower sales and income.China: Sales declined due to continued weak market conditions, and operating income decreased despite efforts to control fixed costs.North America: Sales increased, driven by the sales channel strategy and a shift in sales toward commercial equipment. Tariff refunds also contributed to higher operating income and a return to profitability. Australia: Strong sales of heat pump water heaters and electric water heaters drove growth in both sales and operating income.(Millions of yen, unless otherwise stated)Overseas BusinessFY2026 Q2 (Interim) Financial ResultsYoY Change(%)YoY Change(amount)1H FY2026Results1H FY2025Results(32.4)(5,741)11,99417,736Net salesChina–(1,321)(834)486Operating income+9.2+84710,0719,224Net salesNorthAmerica–+523474(48)Operating income+32.3+1,7367,1095,372Net salesAustralia+58.3+267726459Operating income+11.0+1021,028926Net salesOther+40.8+3612488Operating income(9.2)(3,055)30,20333,259Net salesTotal(50.1)(493)491985Operating income
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8 Review of Domestic Business (by Section)
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FY2026 Initiatives: Domestic BusinessReview by SectionFY2026 Initiatives by Section•Expand adoption in both new installations and replacements by leveraging the environmental performance, energy efficiency, and ease of installation of hybrid water heaters.•Increase the sales mix of high-efficiency water heaters by responding to the revised top runner standards.•Expand sales of premium water heaters through the creation of customer experience value.Water Heaters and HVAC –Residential•Expand sales of commercial-use water heaters through reliable replacements by leveraging theinstalled base.•Secure peripheral services (maintenance contracts and a pre-assembled product delivery system)leveraging a high market share.•Expand production-driven sectors through the thermal solutions business.Water heaters and HVAC –non-residential•Improve the mid-to-high-end ratio of built-in gas cookers by promoting features through hands-on experiences.•Expand sales of range hoods by leveraging products specifically for growth channels.Kitchen Appliances•Develop a customer base by expanding IoT remote controller sales and increasing active users ofthe Wakasu app.•Reduce costs by adopting smart production equipment, bringing value-added processes in-house, and optimizing the entire supply chain (SCP).Establishment of a business foundation •Boost top-line growth through expanding sales of high value-added products (eco-friendly and social issue-solving products).•Expand sales of commercial-use water heaters and production-driven sectors by leveraging the non-residential installed base and high market share.•Promote communication strategies to convey value and promote added value.•Realize cost competitiveness through cost improvement.
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Conversion rateUnits Water Heaters and HVAC–ResidentialReview by Section Hybrid water heater Eco-Jozu [Results] Both hybrid water heaters and high value-added products recorded significant growth.<High-efficiency water heater><Hybrid water heater>Strong sales of the natural refrigerant hybrid water heater “HPHB R290” continued.NORITZ EX Centers were rolled out sequentially, driving sales of premium water heaters by promoting AQUA OZONE and UFB*1.NORITZ EXPO 2026 was held in major cities across Japan beginning in June and was well received.<Premium water heater> Water heater with functions supporting disinfection, sleep, and beautyExpand adoption of hybrid water heaters in new and existing installationsIncrease the ratio of high-efficiency water heatersRenewed promotion of socially impactful products through the creation of customer experience valueStrengthen earning power through high-value-added products and eco-friendly productsRenewed promotion ofsocially impactful productsAccelerated sales ofeco-friendly products *The graphs compare results from January to June on a unit basis. NORITZ EXPO*1 UFB: Ultra Fine Bubble UFB*1fitting
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[Results]Commercial-use water heaters remained solid, with both market share andthe conversion rate improving.Sales of large commercial-use water heaters grew, driven by the strong installed base supported by a high market share and increased use of assembly-and-delivery services.The cumulative number of non-residential maintenance contracts grew steadily, driven by positive feedback on the remote monitoring function.<Cumulative number ofnon-residential maintenance contracts><Commercial-use water heater> Conversion rateUnits [Vision for Business Expansion in the Non-Residential Section] Water Heaters and HVAC–Non-ResidentialReview by SectionCascade installation of commercial-use gas water heaters Filtration and heating pump unit Commercial-use gas water heater* Specialized productExpand sales of commercial-use water heaters in service-driven sectorsExpand production-driven sectors (thermal solutions business)Increase earnings through maintenance contracts and assembly-and-delivery services.Strengthen earning power through high value-added products and eco-friendly productsExpand service-driven sectors/Explore production-driven sectors Small-scale facilities Hair salons, restaurants and bars, etc. Factories Agriculture facilities& fishing Plant facilitiesLarge scale Service-driven New market entryMarket entry (by replacing boilers)ExpandEnter untapped fields by developing new applications and technologies Large-scalefacilities Hot spring facilities and spas Small scale Medium-size facilities Hotels & inns, schools, nursery schools, social welfare facilities, hospitals Production-driven *The graphs compare results from January to June on a unit basis.
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Kitchen AppliancesReview by Section ※16[Results] Higher market share for built-in gas cookers, with continued growth in range hood salesBuilt-in gas cookers performed well, driven by strong sales of new mass-market models, which also drove sales of mid- to high-end models.Sales volume of range hoods increased, driven by demand creation through the development of new sales channels. Increase the ratio of mid- to high-end built-in gas cookersIncrease sales share of range hoodsExpand sales of eco-friendly products (smart eco burners) Built-in gas cookerRange hood<Built-in gas cookers/Ratio of mid- to high-end products> Strengthen earning power through high value-added products and eco-friendly productsQualitative improvement and quantitative expansion in the kitchen appliances section Smart eco burner<Range hood>*The graphs compare results from January to June on a unit basis.New productBuilt-in gas cooker N3WV6MFeatures a “Tsuyameki Glossy Glass Top” that combines stylish design and easy maintenance
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Establishment of a Business FoundationReview by Section [Results]Expansion of IoT remote controller sales strengthened customer engagement, while collections for recycling also remained strong.Development of the connected customer base remained on track, driven by expanded sales of IoT remote controllers and increased connections to the Wakasu app.The network of partner dealers for the water heater recycling program expanded through the recruitment of participating dealers.Number of water heaters recycled Create new business opportunities and build a connected customer baseExpand IoT remote controller salesEstablish customer bases by acquiring active usersPromote water heater recycling (“Bringing Smiles to People” Project)Promote pre-failure replacement to improve market quality<Number of IoT remote controllers sold>Increased acceptance of recurring/reuse modelsConnection via Noritz’s KW Wi-Fi remote controllerInspection model using the alert “88” Replacement before failure for safety and securityAlert 88InspectionReplacementConnection model Deliver safety and security without replacementConnectionRemote monitoringRepair+ ConsumersTechnologyDaily use of Noritz’s appsRemote monitoring *The graphs compare results from January to June on a unit basis.Wakasu App>
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V26TargetTotal: ¥3.0bnCost ReductionReview by Section 1H FY2026 Results(Excluding material price fluctuations and cost increases due to procurement of market-distributed products)¥533mn(V-Plan 26 cumulative total: ¥1.889bn)Cost Reduction Target through FY20260.31.01.33.0FY2024(Result)FY2025(Result)FY2026(Target)(Billions of yen) DetailsLowering procurement costs for raw materialsMitigating cost increasesDriving automation and efficiency through digital technologiesInternalizing value-added processes previously outsourcedEnhancing production facilities with smart technologyItem Reduce material costsRealize a smart factoryOptimizing production facilities Realize smart manufacturing by establishing production system infrastructure and increasing the in-house production ratio. Maximize added value through in-house production
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15 Review of Overseas Business (by Area)
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FY2026 Initiatives: Overseas BusinessOverseas Business Review (by Area) FY2026 Initiatives by Area•Secure water heater unit sales by expanding exclusive stores outside Shanghai.•Expand kitchen appliance unit sales through bundled sales with water heaters.•Reduce costs through controlling fixed costs in line with sales volume.China•Achieve a channel mix focused on the profitability of residential tankless products.•Increase unit sales of commercial equipment by shifting resources to commercial-use water-heating and space-heating products.•Strengthen initiatives for heat pump products in response to energy shifts.North America•Expand sales volume of heat pump water heaters by leveraging tanks’ strengths.•Expand sales of commercial-use water heaters and smart electric water heaters.•Reduce costs through production efficiency improvement.Australia•Expand Noritz-brand water purifiers and electric water heaters into Southeast Asia.•Reduce costs at Kangaroo, an equity-method affiliate, and increase profit in Vietnam.Southeast Asia China: Amid market uncertainty, expand operations outside Shanghai, optimize costs, and strengthen the kitchen appliances section.North America: Optimize channel mix, expand sales of commercial equipment, and respond to energy shifts.Australia: Maintain stable organic growth by responding to market changes.Southeast Asia: Establish a business foundation in Southeast Asia.
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Water Heaters: New products are scheduled to be launched from August to support a recovery in sales volume. Kitchen appliances: Strong sales of new products continued, while bundled sales with water heaters were strengthened.The Innovation Center was completed in June, creating new value through enhanced collaboration between Japan and China in product development. ChinaOverseas Business Review (by Area) [Result]Despite efforts to control fixed costs, sales and profit declined due to the continued market slowdown.Noritz China: Residential Water Heater Kitchen appliancesWater heatersSecured sales volume of water heaters and kitchen appliances Noritz China: Kitchen Appliances Expand exclusive stores in regional areasExpand sales through bundled sales of water heaters and kitchen appliancesReduce costs through controlling fixed costs in line with sales volume *The graphs compare results from January to June on a unit basis.<Innovation Center>
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North AmericaOverseas Business Review (by Area) Improve the channel mix, expand sales of commercial-use equipment, and respond to the energy transitionResidential-use: Tankless: Improved profitability through sales channel mixExpand sales of high-efficiency water heatersCommercial-use: Expanded sales of commercial-use water heaters mounted in rack systemsHeaters: Strengthened sales of combination and high-efficiency boilers Residential-use: Profitability of tankless water heaters improved through an optimized channel mix.Commercial-use: Sales expanded through enhanced proposals for Hybrid Hot systems and rack systems.Heaters: Performance remained stable, supported by a recovery in demand and the effects of price revisions.Tankless water heaters<Commercial-use><Heaters> Key Strengths of Our Products•Versatile exhaust and piping designs for a wide range of applications•Top-tier thermal efficiency with low NOx combustion•Vast selection of premixed burner water heaters (compliant with updated ENERGY STAR standards)Hybrid Hot Rack systemHigh-efficiencywater heater *The graphs compare results from January to June on a unit basis. [Results] Profit improved through the promotion of channel policies and higher sales ofcommercial equipment
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The Company strengthened sales of electric products, including heat pump water heaters and smart electric water heaters.Despite rising operating costs, price revisions and improved production efficiency contained the increase in the cost ratio, while stronger sales activities drove higher sales, resulting in higher operating income. Expanded sales of electric products in response to accelerating market electrificationAustraliaOverseas Business Review (by Area) Increase the sales volume of heat pump water heaters, a growth section productExpand sales of commercial-use water heaters and smart electric water heaters Reduce costs by improving production efficiency[Results] Sales and profit increased, driven by the growth of electric products.<Residential-use tankless water heaters>*The graphs compare results from January to June on a unit basis. Commercial-use water heatersHeat pump water heaters Residential-use water heaters<Heat pump water heaters>(Australia only)<Commercial-use>
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Southeast AsiaOverseas Business Review (by Area) Establish a business foundation in Southeast AsiaExpand sales of electric water heaters and water purifiers under the Noritz brand Strengthen the sales foundationDevelop sales channels in Vietnam and neighboring countries (collaboration with local firms)[Results] Equity-method affiliate Kangaroo in Vietnam returned to profitability with higher sales and profitAchieve cost improvements and profit growth at KangarooDevelopment capabilities and the sales network were strengthened to expand sales across Southeast Asia.Kangaroo continued to record improved business performance.Sales grew at a pace significantly exceeding overall market growth.Higher sales and cost reduction initiatives contributed to its return to profitability. Water purifier under Noritz brandElectric water heaters under Noritz brand
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Capital Policy
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Capital PolicyCapital PolicyOur Initiatives in response to the TSE’s “Action to Implement Management That Is Conscious of Cost of Capital and Stock Price” 1) Strengthen shareholder return measuresWith the expected application of a consolidated payout ratio of 50%, the Company plans to pay an annual dividend of ¥94 per share (interim: ¥47, year-end: ¥47).The Company also plans to repurchase shares of its own stock at a cost of up to¥1 billion. 2) Reduce cross-shareholdingsThe Company plans to reduce the balance of cross-holdings and lower their ratio to consolidated net assets from 28.1% as of December 31, 2025, to below 20% by December 31, 2026, and allocate the proceeds from the sales to growth investments.3) Cancel treasury shares The Company will cancel treasury shares at the end of 2026, retaining treasury shares equivalent to 5% of its total issued shares. Capital policy
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Share BuybackA share buyback of up to ¥1.0bn is planned by December 31, 2026. As of June 30, 2026, the Company had repurchased 81,000 shares of its own stock at a cost of ¥188mn. Shareholder ReturnsCapital Policy Dividend results (forecast)32 32 328353 536974943020406080100FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26DividendCommemorative dividend(70th Anniversary)Adopt the higher of a consolidated payout ratio of 50% or DOE of 2.5%.Dividend policy (forecast)
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Capital policy (Excerpt) A gain of ¥4.6bn on the sale was recognized as extraordinary income andwill be used to fund growth investments. Sale of investment securitiesCapital Policy The ratio of cross-shareholdings to net assets decreased by 3.5 percentagepoints to 24.6%. Our Initiatives in response to the TSE’s ”Action to Implement Management that is Conscious of Cost of Capital and Stock Price” Reduce cross-shareholdingsThe Company plans to reduce the balance of holdings on the consolidated balance sheet and its ratio to net asset (28.1%) as of the end of December 2025 to below 20% by the end of December 31, 2026 and allocate the proceeds from the sale to growth investments.Capital policy[Progress] Sold cross-shareholdings in four companies totaling ¥5.9bn
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Revised FY2026 Full-Year Targets
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KPIsRevised FY2026 Full-Year TargetsYoY Change (Amount)Change vs. Previous TargetsFY2026 Further Revised TargetsFY2026Revised TargetsFY2025Results+11,951+4,000214,000210,000202,049Net sales+9,752+6,500146,500140,000136,748Domestic Business+2,199(2,500)67,50070,00065,301Overseas Business+200–4,5004,5004,300Operating income+679+6002,8002,2002,121Domestic Business(479)(600)1,7002,3002,179Overseas Business(344)(300)5,2005,5005,544Ordinary income+5,242–8,6008,6003,358Net income attributable to shareholders of parent company––Over 6.0Over 6.02.5ROE (%) ”V-Plan 26” Further Revised FY2026 Targets Assumed 2H exchange rates: US$1 = ¥159.38, RMB1 = ¥23.53, and A$1 = ¥114.10 (Millions of yen, unless otherwise stated)
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YoY ChangeChange vs. Previous TargetsFY2026 Further Revised TargetsFY2026 Revised TargetsFY2025 Results+9,752+6,500146,500140,000136,748Net sales+9,144+7,000120,500113,500111,356Water heaters and HVAC +8,586+7,000110,000103,000101,414o/w Residential+558–10,50010,5009,942o/w Non-residential+552–17,00017,00016,448Kitchen appliances+57(500)9,0009,5008,943Other+679+6002,8002,2002,121Operating income Full-year targets revised upward following strong first-half results•First half: Strong sales volume driven by market share expansion in key products, resulting in higher sales.•Second half: The price revisions implemented in August are expected to stabilize profitability amid rising material costs. Although risks remain, including geopolitical tensions in the Middle East, the full-year targets incorporate the expected revenue contribution from strengthened sales initiatives.(Millions of yen, unless otherwise stated)KPIs: Domestic BusinessRevised FY2026 Full-Year Targets
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YoY ChangeChange vs. Previous TargetsFY2026 Further Revised TargetsFY2026 Revised TargetsFY2025 Results(2,427)(4,600)29,80034,40032,227Net salesChina(1,285)(1,680)(1,050)630235Operating income+1,394+30020,60020,30019,206Net salesNorth America+331+580850270519Operating income+3,063+1,70014,90013,20011,837Net salesAustralia+390+4801,7001,2201,310Operating income+171+1002,2002,1002,029Net salesOther+87+20200180113Operating income+2,199(2,500)67,50070,00065,301Net salesTotal(479)(600)1,7002,3002,179Operating income Profit targets were raised significantly, reflecting growth in electric products in Australia and tariff refunds in North America.KPIs: Overseas BusinessRevised FY2026 Full-Year Targets•Profit targets were raised significantly, reflecting growth in electric products in Australia and tariff refunds in North America.•China: Full-year targets were revised downward, reflecting the expectation that the market slowdown will continue.(Millions of yen, unless otherwise stated) Assumed 2H exchange rates: US$1 = ¥159.38, RMB1 = ¥23.53, and A$1 = ¥114.10
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Supplementary Financial Data
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Full-Year Financial Targets by Overseas Area (Local Currency Basis)Supplementary Financial DataYoY Change(%)YoY Change(Amount)FY2026Full-Year TargetsFY2025Full-Year Results(17.4)(268,185)1,275,2841,543,469Net salesChina(RMB thousands)–(56,524)(45,238)11,286Operating income+1.0+1,317129,574128,257Net salesNorth America(US$ thousands)+54.2+1,8805,3483,468Operating income+7.8+9,601132,143122,542Net salesAustralia(A$ thousands)+11.0+1,48915,05813,569Operating income
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First-Half Financial Results by Overseas Area (Local Currency Basis)Supplementary Financial DataYoY Change(%)YoY Change(Amount)FY20261H ResultsFY20251H Results(40.5)(353,002)518,569871,572Net salesChina(RMB thousands)–(59,988)(36,099)23,889Operating income+1.5+96063,51562,555Net salesNorth America(US$ thousands)–+3,3252,994 (330)Operating income+11.1+6,39163,86457,472Net salesAustralia(A$ thousands)+32.9+1,6156,5264,910Operating income
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Supplementary Financial Data(Billions of yen) Changes in SG&Aexpenses(2.7)Changes due to sales volume, selling prices, product mix, and other factors+5.4Changes in processing costs(1.6)Foreign exchange impact+0 FY25Operating income4.3 Cost reductions and changes in purchased component costs+0.2Changes in material costs due to raw material price fluctuations(1.4)Domestic:+2.00Overseas:+3.41Domestic: (0.7)Overseas: (2.08) FY2026 Full-Year Targets: Factors Affecting Operating Income (Initial Targets)Domestic: (0.01)Overseas: +0.08Domestic: (1.14)Overseas: (0.49)Domestic: (0.69)Overseas: (0.8)FY26Operating income4.5 Price revision effects+0.3
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Supplementary Financial Data Domestic: +3.52Overseas: +0.38Domestic: (0.41)Overseas: (0.2) FY2026 Full-Year Targets: Factors Affecting Operating Income (Revised Targets) Domestic: +0.02Overseas: +0.16Domestic: (0.78)Overseas: (0.73)Domestic: (2.43)Overseas: (0.58)Other+0.3Overseas: +0.32(Billions of yen) FY25Operating income4.3 FY26Operating income4.5Changes due to sales volume, selling prices, product mix, and other factors+3.9Changes in material costs due to raw material price fluctuations(3.0)Cost reductions and changes in purchased component costs(1.0)Changes in processing costs(1.5)Foreign exchange impact+0.1 Changes in SG&A expenses(0.6)Price revision effects+2.0
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Supplementary Financial DataDomestic: +2.08Overseas: (1.82)Domestic: (0.23)Overseas: +1.36FY2026 Q2 (Interim) Results: Factors Affecting Operating Income Domestic: +0.01Overseas: +0.06Domestic: (0.01)Overseas: (0.28)Domestic: (0.53)Overseas: (0.12)Other+0.3Overseas: +0.32FY25Operating income1.6 FY26Operating income1.8Changes due to sales volume, selling prices, product mix, and other factors+0.2Changes in material costs due to raw material price fluctuations(0.6)Price revision effects+0Cost reductions and changes in purchased component costs(0.7)Changes in processing costs(0.2)Changes in SG&A expenses+1.1 Foreign exchange impact+0 (Billions of yen)
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DisclaimerThis document contains references to forward-looking statements based on theCompany’s current plans, estimates, expectations, or forecasts concerning itsbusiness and industry trends.Such forward-looking statements are subject to various risks and uncertainties.Both known and unknown risks, uncertainties, and other factors may lead tooutcomes that differ materially from those expressed in the forward-lookingstatements.The Company makes no commitment that the forward-looking statements orexpectations regarding future prospects will prove to be accurate, and actualresults may differ significantly from those projected.The forward-looking statements in this document are based on informationavailable to the Company as of August 7, 2026 and are made as of that date.They do not imply an obligation to update or revise any forward-lookingstatements in light of future events or circumstances.Copyright ©2026 NORITZ Corporation. All Rights Reserved. https://www.noritzglobal.com/company/finance.html