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Financial Results for First Three Quarters of Fiscal 2026, ending March 31, 2026 February 12, 2026
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Disclaimer ©Rinnai Corporation 2 Forecasts, projections, strategies, and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that the Company believes are reasonable. Actual results may differ materially from these statements due to various risks and uncertainties. This material is for informational purposes only and is not intended as a solicitation to trade.
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- Number of requests received: 207,105 - Number of inspections completed: 201,079 (completion rate: 97.1%) - Personnel structure: Service shop inspectors Rinnai employees: Approx. 350 →Scaled to team of several dozen personnel (from January 2026) 3 Progress on Recall of Bathroom Heater/Dryers ■Progress (as of December 31, 2025) ■Recall progressing largely as planned (inspections conducted by employees now winding down) ■Overview of bathroom heater/dryer recall (Announced April 15, 2025) ©Rinnai Corporation ■Future recall response measures ■Impact on business performance Allowance for product guarantee (recorded in fiscal 2025, ended March 31, 2025) has been fully utilized; partial increase in expenses expected in second half of current fiscal year, but impact on business performance expected to be minimal Will maintain response team consisting of service shop inspectors and several dozen Rinnai employees; will continue market response activities (including for outstanding cases) - Affected products: Bathroom heater/dryers - Number of affected units: 372,398 *Units still in market: Unknown (Manufactured between August 2003 and August 2020) - Inspection details： Attach a control board to prevent ignition - Work time per unit: Approx. 1 hour - Implementation period: From May 2025 8.7% 27.5% 45.8% 57.2% 72.8% 84.5% 93.9% 97.1% 25’5 25’6 25’7 25’8 25’9 25'10 25'11 25'12 Requests received and inspections completed May 2025 June 2025 July 2025 Aug. 2025 Sep. 2025 Oct. 2025 Nov. 2025 Dec. 2025 ■ Number of requests received ■ Number of inspections completed Completion rate *Allowance for product guarantee: ¥2,540 million (recorded in fiscal year ended March 2025)
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Results of First Three Quarters of Fiscal 2026 4
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■Year-on-year increases in revenue and income with steady contributions from each region despite ongoing global economic uncertainty Fiscal 2026 (First Three Quarters): Consolidated Performance Overview ©Rinnai Corporation 5 Net sales: ¥339.3 billion (up 2.1% year on year) Increase in net sales even as major economies overall move into adjustment period Operating income: ¥37.1 billion (up 5.9% year on year, Operating income to net sales ratio:10.9%) Increase in operating income thanks to higher revenue and ongoing cost-cutting efforts despite continued increases in various costs Ordinary income: ¥41.8 billion (up 7.6% year on year, Ordinary income to net sales ratio: 12.3%) Higher ordinary income due to increased operating income and foreign exchange gains Net income attributable to owners of the parent company: ¥27.5 billion (up 20.4% year on year, Net income to net sales ratio: 8.1%) Recorded ¥799 million of “Reversal of allowance related to antimonopoly law” in extraordinary income following settlement between Rinnai Brasil Heating Technology Ltd. (subsidiary) and local authorities in Brazil Record-high level Record-high level Record-high level Record-high level
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©Rinnai Corporation Fiscal 2026 (First Three Quarters): Consolidated Financial Results 6 0 500 1,000 1,500 2,000 2,500 3,000 3,500 '21 '22 '23 '24 '25 10.2% 10.7% 8.2% 10.5% 10.9% 0 50 100 150 200 250 300 350 400 '21 '22 '23 '24 '25 6.7% 6.8% 5.6% 6.9% 8.1% 0 50 100 150 200 250 300 '21 '22 '23 '24 '25 ■Second consecutive period of year-on-year net sales increase backed by growth in sales of high-value-added products emphasizing energy efficiency and functionality despite uncertain market environment ■Signs of gradual improvement in consolidated profit margins; will continue monitoring market conditions and cost trends Net Sales Operating Income Attributable to owners of the parent company Net Income FY2022 3Q FY2023 3Q FY2024 3Q FY2025 3Q FY2026 3Q FY2022 3Q FY2023 3Q FY2024 3Q FY2025 3Q FY2026 3Q FY2022 3Q FY2023 3Q FY2024 3Q FY2025 3Q FY2026 3Q Operating income to net sales ratio Net income to Net sales ratio 30 25 20 15 10 5 0 40 35 30 25 20 15 10 5 0 350 300 250 200 150 100 50 0 [Billions of Yen] [Billions of Yen] [Billions of Yen]
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©Rinnai Corporation Fiscal 2026 (First Three Quarters): Net Sales by Product 7 [Billions of yen] Fiscal 2025 3Q Fiscal 2026 3Q YOY Change Amount % of total Amount % of total Amount (%) Water heaters 196.50 59.1% 198.81 58.6% +2.30 +1.2% Kitchen appliances 72.83 21.9% 70.42 20.7% -2.41 -3.3% Air conditioning appliances 16.58 5.0% 18.02 5.3% +1.44 +8.7% Commercial-use equipment 8.63 2.6% 8.69 2.6% +0.06 +0.8% Others 37.76 11.4% 43.43 12.8% +5.66 +15.0% Total 332.31 100.0% 339.39 100.0% +7.07 +2.1%
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©Rinnai Corporation Fiscal 2026 (First Three Quarters): Consolidated Sales/Income Results 8 [Billions of yen] Net Sales YOY Change Operating Income YOY Change Operating Margin YOY Change Consolidated 339.39 +2.1% 37.13 +5.9% 10.9% +0.4pt [Billions of yen] Net Sales YOY Change Operating Income YOY Change Operating Margin YOY Change Japan 154.62 +2.3% 21.06 +11.6% 13.6% +1.1pt United States 51.79 +8.5% 1.16 +12.3% 2.3% +0.1pt Australia 32.40 +24.0% 1.84 +77.5% 5.7% +1.7pt China 37.17 -17.1% 5.73 -6.7% 15.4% +1.7pt South Korea 24.50 -1.0% 0.91 +50.0% 3.8% +1.3pt Indonesia 13.55 +4.0% 2.93 -1.2% 21.7% -1.1pt Others 25.31 +2.9% 3.80 -1.1% 15.0% -0.6pt Adjustments - - -0.34 - - -
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■Increase in operating income as increased fixed costs in Japan and overseas offset by higher revenue and cost reductions ©Rinnai Corporation 9 Fiscal 2026Fiscal 2025 35.05 +3.35 +2.15 +0.22 [-2.30] 37.13 -2.29 [+1.89] -2.41 +1.06 [-0.07] *Overseas local procurement Fiscal 2026 (First Three Quarters): Consolidated Operating Income Analysis [Billions of Yen] Effect of domestic revenue increase Effect of local revenue increase at overseas subsidiaries Increased fixed costs in Japan Increased fixed costs overseas Effect of raw materials prices Cost-cutting efforts, etc. YOY change +¥2.08 billion Forex effect -0.48 →The applicable rates are listed on [Reference data, page 7]
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©Rinnai Corporation Rinnai (non-consolidated basis) - Market supported by renovation demand amid sluggish conditions in new housing market - Steady performance supported by strong sales of core products as demand peaked in 3Q - Improving profitability sustained through continuous cost reduction efforts 10 Water heaters 54.0% Kitchen appliances 27.5% Air-conditioning appliances 3.1% Commercial-use equipment 1.1% Others 14.4% Japan Fiscal 2026 (First Three Quarters) Results 単四半期 営業利益の推移 ■Non-consolidated results of major company■Segment companies ■Segment results ■Net sales by product, Fiscal 2026 (3Q) results Gas clothes dryers Built-in hobs (stovetops) Hybrid water heaters [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Net Sales 151.22 154.62 +2.3% Operating Income 18.87 21.06 +11.6% Operating income to net sales ratio 12.5% 13.6% +1.1pt [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Net Sales 175.71 181.95 +3.6% Operating Income 16.15 17.89 +10.8% Operating income to net sales ratio 9.2% 9.8% +0.6pt [Sales volume in Japan] YOY change Water heater with heating systems +6.4% Hybrid water heaters +9.7% Built-in hobs (stovetops) -2.9% Gas clothes dryers +3.5% Rinnai (non-consolidated basis), Fiscal 2026 (3Q) results ■Net sales ■Operating income ─●─ Operating income sales ratio [Billions of Yen] 155.32 175.71 181.95 10.32 16.15 17.89 Fiscal 2024 Fiscal 2025 Fiscal 2026 6.6% 9.2% 9.8% Progress on quarterly operating income [Billions of Yen] 8.73 5.18 3.96 Rinnai (non-consolidated basis), Domestic consolidated subsidiaries (manufacture and sales of products) * From April to December, 2025
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(％) Japan Topics Reinforced Lineup of Key Products ■Ongoing growth in sales of key products contributing to higher profitability ©Rinnai Corporation 17% 83% Share of air bubble installations among Eco- Jozu sales (fiscal 2026/3Q) Hybrid water heater with heating systems Air Bubble product Gas clothes dryers Combines gas and electricity to achieve highest efficiency in the industry Fine bubbles enhance bathing comfort and make cleaning easier Quick drying with powerful warm air generated by gas Budget: ¥58.0 billion ¥150,000/unit 2025 2026 (supplementary budget proposal) ■Continuation of METI subsidy program for promoting energy efficiency Overall budget scale to be maintained and number of supported units set to increase despite reduction in per-unit subsidy (Estimated supported units: Approx. 450,000 in 2025 → Approx. 500,000 in 2026) ■Gradually expanding lineup to meet consumer needs while addressing installation-related challenges ■Growing recognition of air bubble technology to drive further expansion → Cumulative sales exceeding 170,000 units (As of December 2025) Deluxe type Under-eaves installation Balance of energy efficiency with strong product competitiveness contributing to added value enhancement 11 Eco Jozu sales breakdown Growth in sales of air bubble models contributed to higher Eco-Jozu sales ratio ¥120,000/unit Budget: ¥57.0 billion Standard type FY2024 FY2025 FY2026 (From Apr. to Dec.) Deluxe type Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 3Q total Standard type: Unit sales Deluxe type: Unit sales 70(%) 60(%) 50 40 30 50% 40% 30% Share of Deluxe type Gas clothes dryers: Unit sales, Share of Deluxe type
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©Rinnai Corporation Rinnai America - Consumer sentiment remains weak with lack of recovery in new housing market despite down-trending interest rates - Steady sales of condensing water heaters driven by proactive sales activities - Increase in operating income in three quarters despite lower third quarter income stemming from difference in timing of tariff-related price adjustments 12 Water heaters 86.3% Air-conditioning appliances 4.5% Commercial-use equipment 0.4% Others 8.9% United States Fiscal 2026 (First Three Quarters) Results * From January to September, 2025 Rinnai America Condensing water heaters (High efficiency models) Non-Condensing water heaters ■Segment company ■Net sales by product, Fiscal 2026 (3Q) results ■Non-consolidated results of major company [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Net Sales 47.73 51.79 +8.5% Operating Income 1.04 1.16 +12.3% Operating income to net sales ratio 2.2% 2.3% +0.1pt [Sales volume] YOY change Tankless water heaters +2.5% Condensing water heaters of total (High-efficiency models) +9.6% [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Yen Local currency Net Sales 47.73 51.79 +8.5% +9.8% Operating Income 1.05 1.24 +18.5% +19.9% Operating income to net sales ratio 2.2% 2.4% +0.2pt [Billions of Yen] Rinnai America, Fiscal 2026 (3Q) results ■Net sales ■Operating income ─●─ Operating income to net sales ratio Fiscal 2024 Fiscal 2025 Fiscal 2026 -1.88 1.05 47.73 41.62 51.79 1.24 -4.5% 2.2% 2.4% Progress on quarterly operating income [Billions of Yen] 0.17 0.610.45 ■Segment results
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©Rinnai Corporation 13 ■Impact on water heater market 1Q 2Q 3Q Impact of tariffs (Amount paid) - Approx. ¥280 million Approx. ¥1.2 billion ■Flexible price adjustments to absorb costs arising from additional or revised tariffs United States Topics Tariff Impact and Response Measures ■Status of tariff impact and price adjustments Tariff 1Q Jan.-Mar. 2Q Apr.-Jun. 3Q Jul.-Sep. 4Q Oct.-Dec. Steel and aluminum (KD Parts, etc.) Copper (Heat exchangers, etc.) Reciprocal tariffs (Finished products, etc.) Price revision 25% 50% 50% 10% 15% Market unit sales Year on year (cumulative) 1Q 2Q 3Q Water heater market +0.3% +0.7% +0.2% Tankless water heater market -0.5% +5.3% +1.5% - No material impact from tariffs on unit sales at this stage - Tankless segment (focus for Rinnai) growing, albeit slowly, despite overall water heater market stagnation
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©Rinnai Corporation Shanghai Rinnai - Subsidy funds running dry; no visible signs of market recovery; consumer sentiment remains cool - Market inventories normalized thanks to detailed sales measures by distributors and EC channels despite revenue decline - Profitability maintained through agile production adjustments and cost controls despite revenue decline 14 Water heaters 91.7% Kitchen appliances 4.7% Others 3.6% China Fiscal 2026 (First Three Quarters) Results * From January to September, 2025 Water heaters Boilers Built-in hob (stovetops) Shanghai Rinnai, Guangzhou Rinnai, Rinnai Hong Kong ■Segment company ■Segment results ■Net sales by product, Fiscal 2026 (3Q) results ■Non-consolidated results of major company [Billions of Yen] Shanghai Rinnai, Fiscal 2026 (3Q) results 0 Progress on quarterly operating income [Billions of Yen] 1.15 2.93 0.94 Fiscal 2024 Fiscal 2025 Fiscal 2026 7.85 5.56 43.6244.83 36.07 5.03 17.5% 12.7% 13.9% ■Net sales ■Operating income ─●─ Operating income to net sales ratio [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Net Sales 44.84 37.17 -17.1% Operating Income 6.15 5.73 -6.7% Operating income to net sales ratio 13.7% 15.4% +1.7pt [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Yen Local currency Net Sales 43.62 36.07 -17.3% -15.9% Operating Income 5.56 5.03 -9.5% -8.0% Operating income to net sales ratio 12.7% 13.9% +1.2pt [Sales volume] YOY change Water heaters -20.0% Built-in hob (stovetops) -22.2% Range hoods -39.1% Boilers -13.8%
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©Rinnai Corporation China Topics Initiatives to address challenging business environment 15 ■Maintained market competitiveness backed by rising external recognition despite sluggish market conditions ■First-ever award received in the gas water heater category in “JD Gold List” (JD.com Ranking)* *Official ranking based on sales performance and customer evaluations on JD.com (major Chinese e-commerce platform) JD.com is a massive platform with second-largest share of China’s e-commerce market ■Anticipated benefits of award Award criteria: Based on a comprehensive evaluation of sales and quality - Sales: Cumulative sales to consumers during the period - Quality: Product popularity ratings, return rates, customer reviews, sampling inspections, etc. Approximately 1 billion consumers use “JD Gold List” as reference when making online purchases Advertising benefits from priority display positions and exposure in dedicated JD.com channels - Maintain and promote high-quality brand image based on Japanese quality standards - Ensure price discipline and thoroughly implement profitability-focused EC sales ■Strategic direction for our business in China
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©Rinnai Corporation Rinnai Australia - Gas appliance market shrinking due to electrification trends despite elevated housing demand - Growth in revenue supported by increased sales of electrification-related products centered on heat pump water heaters - Ongoing increase in profit supported by enhanced profitability from M&A synergies 16 Water heaters 39.7% Air-conditioning appliances 30.1% Commercial-use equipment 5.5% Others 24.7% Australia Fiscal 2026 (First Three Quarters) Results * From January to September, 2025 Electric tank-based water heaters Tankless water heaters Duct-type air conditioning and heating systems Rinnai Australia ■Segment company ■Net sales by product, Fiscal 2026 (3Q) results ■Non-consolidated results of major company [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Net Sales 26.12 32.40 +24.0% Operating Income 1.03 1.84 +77.5% Operating income to net sales ratio 4.0% 5.7% +1.7pt [Sales volume] YOY change Tankless water heaters -4.5% Electric tank-based water heaters +1.6% Duct-type air-conditioning and heating systems +146.8% Progress on quarterly operating income [Billions of Yen] 1.021.00 0.23 [Billions of Yen] Rinnai Australia, Fiscal 2026 (3Q) results ■Net sales ■Operating income ─●─ Operating income to net sales ratio 1.17 1.30 26.22 22.76 32.49 2.26 5.2% 5.0% 7.0% Fiscal 2024 Fiscal 2025 Fiscal 2026 [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Yen Local currency Net Sales 26.22 32.49 +23.9% +30.6% Operating Income 1.30 2.26 +74.0% +83.4% Operating income to net sales ratio 5.0% 7.0% +2.0pt ■Segment results
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■Main products sold by Rinnai Australia ■Emerging synergies from acquisition of Smart Energy, strengthening foundations of our gas and electrification businesses ■Building a foundation responding flexibly to structural market changes while capturing expanding electrification demand (including through government-led subsidies) Australia Topics Increasing value provided as residential environment solutions ©Rinnai Corporation 17 ■Growth of our renewable energy business in Australia Strengths of Smart Energy Gas Electric Other (electric) Gas tankless water heaters Gas space heaters Solar water heaters Electric tankless water heaters Home air conditioners Energy management systems Solar power generation systems Storage batteries After acquisition of Smart Energy Honored by independent research company Residential battery installations No. 1 in industry Government subsidy scheme for battery storage introduced in July 2025, driving faster uptake through lower initial costs Electricity prices rising year by year; consumers benefit from lower electricity costs through self-generation and self-consumption using storage batteries Water heatersAir-conditioning appliances Portable air conditioners Ducted air conditioners Electric storage-type water heaters Heat pump water heaters
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©Rinnai Corporation Rinnai Korea - Ongoing weakness in new housing market due to economic slowdown - Continued growth in local-currency sales despite weak market conditions - Increase in profit driven by growth in sales of high-value-added products 18 Water heaters 39.8% Kitchen appliances 30.5% Commercial-use equipment 12.7% Others 17.0% South Korea Fiscal 2026 (First Three Quarters) Results * From January to September, 2025 Environmentally friendly boilers Electric tabletop cookers Gas tabletop cookers Rinnai Korea, RB Korea ■Segment company ■Net sales by product, Fiscal 2026 (3Q) results ■Non-consolidated results of major company [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Net Sales 24.74 24.50 -1.0% Operating Income 0.61 0.91 +50.0% Operating income to net sales ratio 2.5% 3.8% +1.3pt [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Yen Local currency Net Sales 22.60 22.18 -1.9% +4.6% Operating Income 0.54 0.82 +52.9% +62.9% Operating income to net sales ratio 2.4% 3.7% +1.3pt [Sales volume] YOY change Boilers +18.1% Gas tabletop cookers -8.3% Electric tabletop cookers -5.4% Progress on quarterly operating income [Billions of Yen] 0.16 0.270.38 [Billions of Yen] Rinnai Korea, Fiscal 2026 (3Q) results ■Net sales ■Operating income ─●─ Operating income to net sales ratio Fiscal 2024 Fiscal 2025 Fiscal 2026 0.00 0.54 22.6020.23 22.18 0.82 -0.0% 2.4% 3.7% ■Segment results
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©Rinnai Corporation P.T. Rinnai Indonesia - Interest rates trending downward; housing market growth slowing due to weak public sector investment - Increase in sales led by strong demand for tabletop stoves - Continued higher sales and income in local-currency terms, but foreign exchange translation resulted in slight income decrease (yen terms) 19 Indonesia Fiscal 2026 (First Three Quarters) Results * From January to September, 2025 P.T. Rinnai Indonesia ■Segment company ■Net sales by product, Fiscal 2026 (3Q) results ■Non-consolidated results of major company [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Net Sales 13.04 13.55 +4.0% Operating Income 2.97 2.93 -1.2% Operating income to net sales ratio 22.8% 21.7% -1.1pt [Billions of Yen] Fiscal 2025 Fiscal 2026 YOY change Yen Local currency Net Sales 13.63 14.00 +2.7% +7.6% Operating Income 3.05 3.02 -1.1% +3.6% Operating income to net sales ratio 22.4% 21.6% -0.8pt [Sales volume] YOY change Tabletop cookers +5.1% Built-in hob (stovetops) +1.2% Range hoods -15.4% Progress on quarterly operating income [Billions of Yen] 1.080.990.94 [Billions of Yen] ■Net sales ■Operating income ─●─ Operating income to net sales ratio P.T. Rinnai Indonesia, Fiscal 2026 (3Q) results 2.21 3.05 13.6312.38 14.00 3.02 17.9% 22.4% 21.6% Built-in hobs (stovetops)Range hoods Tabletop cookers Water heaters 1.4% Kitchen appliances 85.3% Commercial-use equipment 10.2% Others 3.1% Fiscal 2024 Fiscal 2025 Fiscal 2026 ■Segment results
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©Rinnai Corporation 20 Other Regional Topics MT Industrial（MTI） Newly Consolidated as Subsidiary ■Strengthening sales networks and expanding growth opportunities in Peru and neighboring countries through the acquisition of MTI ■Objectives of MTI acquisition Water heaters 37.2% Kitchen appliances 41％ Air-conditioning appliances 4.3% Others 17.4% Cross-utilization of both brands by leveraging MTI’s strong sales network Expansion of business scale by selling Rinnai’s product portfolio (commercial equipment, dryers, etc.) MTI: Net sales by product (2024 results) ■No. 1 market share in unit sales in 7 product categories ■Anticipated synergistic benefits Expected increase in demand driven by growth in households using natural gas MTI: Sales forecast Use base as regional hub for western South America to strengthen sales to neighboring countries Peru positioned as strategically important Latin American market, with natural gas demand expected to grow due to demographic and policy factors; acquisition of a leading local distributor (MTI) aimed at expanding our coverage across Latin America Electric tankless water heaters Electric storage-type water heaters Gas tankless water heaters Water purifiers Ovens Built-in hobs (stovetops) Range hoods Key business foundation highly aligned with Rinnai’s businesses
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©Rinnai Corporation Progress of Consolidated Earnings Forecast 21 FY2026 (3Q) Applicated exchange rates FY2026 (beginning) Assumed exchange rates USD 148.824 145.000 AUD 94.970 95.658 CNY 20.597 20.135 KRW 0.1051 0.1066 IDR 0.00911 0.00917 ■Expect to achieve full-year targets with rising costs to be absorbed in 4Q despite continued copper price increases ■Maintaining full-year forecasts with results progressing in line with plan ■Copper prices and foreign exchange fluctuations remain particular sources of uncertainty for achieving future targets 1200 1400 1600 1800 4月 5月 6月 7月 8月 9月 10月 11月 12月 (Yen/1kg) Reference: Exchange rates Reference: Electrolytic copper prices Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Consolidated financial results [Actual] Third quarter 339,391 37,132 10.9% 41,817 12.3% 27,538 8.1% YOY change +2.1% +5.9% +7.6% +20.4% Vs progress on full year plan 72.2% 74.3% 78.2% 83.4% [Millions of Yen] Net sales Operating income Vs Net sales Ordinary income Vs Net sales Net income attributable to owners of the parent company Vs Net sales Consolidated sales/income results [Plan] Full year 470,000 50,000 10.6% 53,500 11.4% 33,000 7.0% YOY change +2.1% +8.7% +6.3% +11.1% 1800 1600 1400 1200
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