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Financial Results for First Quarter of Fiscal 2027 , ending March 31 , 2027 August 6 , 2026 Rinnai Corporation Rinnai
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Disclaimer 2©Rinnai Corporation Forecasts, projections, strategies, and other forward-looking statements contained in this document are based on information currently available to the Corporation and certain assumptions that the Corporation 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. To Rinnai: (従来は当社＝the Company、一般的な言い方）としていましたが、貴社正式名称およびリリース等での言い方に合わせて the Corporationとしました。
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3 No impact on production or procurement; concerns over supply stability led to some advance orders in Japan, but delivery delays have been resolved Production Cost Limited effect on performance despite some impact from higher material costs, particularly for thinners and plastic-based materials Procurement environment expected to continue improving; no impact on production or procurement is currently anticipatedProduction Cost While costs for naphtha-based materials are rising, we will continue to absorb the increase through component standardization, greater parts commonality, and inventory optimization, minimizing the impact on performance Impact of Middle East Situation ■ Potential impacts in fiscal 2027 ■ Impacts in fiscal 2027 (1Q) ©Rinnai Corporation 和文では、「汎用化」「共通化」「在庫の適正化」にアンダーラインを入れましたが、 英語では余り使わないかもしれません。
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- Decrease in income due to rising raw material prices despite higher sales driven by overseas market growth including M&A effects Fiscal 2027 (1Q): Consolidated Performance Overview 4 Net sales: ¥113.6 billion (up 10.6% year on year) Record-high net sales thanks to M&As and overseas market growth despite slowdown in Chinese market Operating income: ¥9.1 billion (down 5.2% year on year, Operating income to net sales ratio：8.1%) Operating income exceeded internal projection despite negative impact of significant year-on-year increase in copper prices Ordinary income: ¥10.3 billion (down 3.5% year on year, Ordinary income to net sales ratio：9.1%) Decrease in ordinary income due to lower operating income Net income attributable to owners of the parent company: ¥6.7 billion (up 1.8% year on year, Net income to net sales ratio: 5.9%) Increase due to lower profit attributable to non-controlling interests ©Rinnai Corporation Record-high level
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Fiscal 2027 (1Q) : Consolidated Financial Results 5 0 300 600 900 1,200 '22 '23 '24 '25 '26 10.6% 3.5% 8.9% 9.4% 8.1% 0 30 60 90 120 '22 '23 '24 '25 '26 7.4% 3.7% 6.9% 6.4% 5.9% 0 30 60 90 120 '22 '23 '24 '25 '26 - Continued increase in net sales driven by overseas business growth despite continued challenging business conditions - Operating income and operating margin broadly unchanged due to year-by-year increases in raw material prices despite steady progress of cost reduction efforts ©Rinnai Corporation Net Sales Operating Income Attributable to owners of the parent company Net Income [Billions of Yen] [Billions of Yen] [Billions of Yen] 120 90 60 30 0 12 9 6 3 0 12 9 6 3 0 FY2023 FY2024 FY2025 FY2026 FY2027 1Q 1Q 1Q 1Q 1Q FY2023 FY2024 FY2025 FY2026 FY2027 1Q 1Q 1Q 1Q 1Q FY2023 FY2024 FY2025 FY2026 FY2027 1Q 1Q 1Q 1Q 1Q Operating income to net sales ratio Net income to net sales ratio
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Fiscal 2027 (1Q): Net Sales by Product 6©Rinnai Corporation [Billions of yen] Fiscal 2026 1Q Fiscal 2027 1Q YOY Change Amount % of total Amount % of total Amount (%) Water heaters 60.60 59.0% 65.19 57.4% +4.58 +7.6% Kitchen appliances 21.95 21.4% 23.40 20.6% +1.45 +6.6% Air conditioning appliances 4.30 4.2% 5.00 4.4% +0.69 +16.1% Commercial-use equipment 2.33 2.3% 3.05 2.7% +0.72 +31.2% Others 13.54 13.2% 17.01 15.0% +3.46 +25.6% Total 102.74 100.0% 113.66 100.0% +10.92 +10.6% 表の数字再入力しています
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Fiscal 2027 (1Q): Consolidated Sales/Income Results 7©Rinnai Corporation [Billions of yen] Net Sales YOY Change Operating Income YOY Change Operating Margin YOY Change Consolidated 113.66 +10.6% 9.19 -5.2% 8.1% -1.3pt [Billions of yen] Net Sales YOY Change Operating Income YOY Change Operating Margin YOY Change Japan 47.80 +4.0% 4.47 -4.6% 9.4% -0.8pt United States 18.78 +8.4% -0.01 - -0.1% -3.0pt Australia 12.70 +36.9% 0.51 +263.0% 4.1% +2.5pt China 7.05 -18.9% -0.01 - -0.2% -13.8pt South Korea 9.50 +5.7% 0.54 +19.5% 5.8% +0.7pt Indonesia 5.28 +21.8% 1.15 +22.5% 21.9% +0.1pt Others 12.53 +53.6% 1.74 +46.5% 13.9% -0.7pt Adjustments - - 0.77 +34.5% - - 表の数字再入力しています
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8 Fiscal 2027 (1Q): Consolidated Operating Income Analysis 9.69 +1.63 9.19 -2.44 -2.23 [+1.37] [-1.17] [-0.00] +0.48 +0.16 +1.90 - Higher sales in both Japan and overseas, but income pressured by higher costs centered on rising raw material prices ©Rinnai Corporation Fiscal 2027Fiscal 2026 Cost-cutting efforts, etc. Effect of raw materials prices Increased fixed costs overseas Decreased fixed costs in Japan Effect of local revenue increase at overseas subsidiaries Effect of domestic revenue increase [Billions of yen] YOY change -¥0.50 billion Forex effect +0.19 →The applicable rates are listed on [Reference data, page 7] *Overseas local procurement (Includes -1.47 tariff in United States) *Effect by MT Industrial S.A.C. in Peru is included in Cost-cutting efforts, etc.
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Japan Fiscal 2027 (1Q) Results [Billions of yen] Fiscal 2026 Fiscal 2027 YOY change Net Sales 45.96 47.80 +4.0% Operating Income 4.69 4.47 -4.6% Operating income to net sales ratio 10.2% 9.4% -0.8pt Rinnai (non-consolidated basis) - Housing demand remained weak due to higher interest rates and rising home prices - Increase in sales thanks to growth in Air Bubble products and clothes dryers despite lower sales of hybrid water heaters - Profit decline mitigated by tighter control of fixed costs despite negative impact of rising raw material prices 9 Water heaters 55.6% Kitchen appliances 26.9% Air-conditioning Appliances 0.8% Commercial-use equipment 1.1% Others 15.6% ©Rinnai Corporation ■Net sales by product, Fiscal 2027 (1Q) results ■Segment companies ■Non-consolidated results of major company Rinnai (non-consolidated basis), domestic consolidated subsidiaries (manufacture and sales of products) Built-in hobs (stovetops) Gas clothes dryers Hybrid water heaters ■Segment results *From April to June 2026 8.4% 7.1% 6.6% 52.04 55.77 56.03 4.35 3.96 3.69 FY2025 FY2026 FY2027 1Q 1Q 1Q [Billions of Yen] Fiscal 2026 Fiscal 2027 YOY change Net Sales 55.77 56.03 +0.5% Operating Income 3.96 3.69 -6.9% Operating income to net sales ratio 7.1% 6.6% -0.5pt [Sales Volume in Japan] YOY change Water heater with heating systems +5.2% Hybrid water heaters -8.8% Built-in hobs (stovetops) -3.1% Gas clothes dryers +6.0% 従来版で1Q有無が不統一でしたので、 統一して入れました。以下、同様です。 Rinnai (non-consolidated basis), Fiscal 2027 1Q results ■Net sales ■Operating income ■ Operating income to net sales ratio [Billions of yen]
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Japan Topics: New Kitchen Appliances and Clothes Dryers 10 - Aiming to expand sales in second half through launch of new products that address market needs Designed to overcome the installation constraints of conventional gas clothes dryers, this gas hot water clothes dryer can be installed in apartment buildings and other multi-family units where installation was previously difficult. Its hot water heating system lowers exhaust duct installation costs and offers greater installation flexibility. With drying times around half those of electric dryers and a softer finish, it helps reduce household chores and deliver a more comfortable lifestyle. Featuring Rinnai’s proprietary Ultra Fine Bubble technology, this dishwasher delivers outstanding cleaning performance while helping maintain the cleanliness of the appliance itself, fostering a more hygienic and comfortable kitchen environment and better quality of life. Ultra Fine Bubble dishwashers Gas hot water clothes dryers Front-open model: Launched May 25, 2026 Slide-open model: Launched August 3, 2026 Scheduled for launch: Autumn 2026 New MYTONE built-in gas cooktop Launched August 3, 2026 To strengthen its competitiveness in the mid-price segment, Rinnai has refreshed its MYTONE built- in gas cooktop. The newly developed Premium Glass Coat top plate enhances both appearance and ease of cleaning, while also improving safety. Our aim is to capture demand and expand sales in the kitchen appliance market. ©Rinnai Corporation
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United States Fiscal 2027 (1Q) Results [Billions of Yen] Fiscal 2026 Fiscal 2027 YOY change Net Sales 17.33 18.78 +8.4% Operating Income 0.50 -0.01 - Operating income to net sales ratio 2.9% -0.1% -3.0pt Rinnai America - Sluggish housing market due to persistently high interest rates and continued inflationary pressures - Growth in sales supported by favorable sales to Canada and strong sales of boilers and commercial equipment - Operating loss due to increased R&D investment and higher fixed cost burden resulting from lower production volumes in United States [Sales Volume] YOY change Tankless water heaters -3.3% Condensing water heaters of total (High-efficiency models) +4.0% Heat pump water heaters +39.3% 11 Water heaters 86.2% Air- conditioning appliances 3.0% Commercial-use equipment 0.6% Others 10.2% △ ©Rinnai Corporation *From January to March 2026 ■Segment results ■Segment companies ■Net sales by product, Fiscal 2027 (1Q) results ■Non-consolidated results of major company Rinnai America Condensing water heaters (High-efficiency models) Non-condensing water heaters Rinnai America, Fiscal 2027 1Q results [Billions of yen] -0.06 -0.1% 15.67 17.33 2.7% -0.4% 18.78 0.45-0.00 FY2025 FY2026 FY2027 1Q 1Q 1Q [Billions of Yen] Fiscal 2026 Fiscal 2027 YOY change Yen Local currency Net Sales 17.33 18.78 +8.4% +5.9% Operating Income 0.45 -0.06 - - Operating income to net sales ratio 2.7% -0.4% -3.0pt ■Net sales ■Operating income ■ Operating income to net sales ratio
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12 United States Topics: Tariff Impact Tariff 1Q Jan.-Mar. 2Q Apr.-Jun. 3Q Jul.-Sep. 4Q Oct.-Dec. 1Q Jan.-Mar. 2Q Apr.-Jun. 3Q Jul.-Sep. Steel and aluminum (KD Parts, etc.) Copper (Heat exchangers, etc.) Reciprocal tariffs (Finished products, etc.) 25% 50% 50% 10% 15% 10% 15-50% ■Fiscal 2027 tariff impact and outlook *Alternative tariff (Tariff under Article 122) Change in calculation formula 25-50% *Temporary alternative measure due to the invalidation of IEEPA (International Emergency Economic Powers Act) tariffs 12.5% ©Rinnai Corporation ■Status of tariff impact and price adjustments Price revision2025 2026 Change in calculation formula - Limited impact on performance in first quarter as higher tariffs largely offset by price increase Tariff impact in first quarter - Increased tariff burden related to raw materials by changes on tariff measures. - Regarding applications for IEEPA tariff refunds, we will receive refunds in the second and third quarters. Potential impacts in full year - Tariff measures to change significantly from 2026; we will continue closely monitoring their impact on performance To Rinnai：貴社ツールで 2026年度はFiscal 2027 (2027年3月期）ですが、暦 年の数字を決算に組み入れる 米国単独のお話ですので、水 色部分はわざとFiscal (年 度）をつけずに表現しました。
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China Fiscal 2027 (1Q) Results [Billions of Yen] Fiscal 2026 Fiscal 2027 YOY change Net Sales 8.69 7.05 -18.9% Operating Income 1.18 -0.01 - Operating income to net sales ratio 13.6% -0.2% -13.8pt Shanghai Rinnai - Consumer sentiment remains cool due to economic slowdown - Improvement expected in second half despite revenue decline stemming from ongoing adjustments to distribution inventories - Operating loss incurred due to impact of lower sales, despite continuing rigorous management of fixed costs [Sales Volume] YOY change Water heaters -24.2% Built-in hob (stovetops) -56.0% Range hoods -45.1% Boilers -20.0% 13 Water heaters 90.5% Kitchen appliances 3.7% Others 5.7% ©Rinnai Corporation *From January to March 2026 ■Segment results ■Segment companies ■Net sales by product, Fiscal 2027 (1Q) results ■Non-consolidated results of major company Shanghai Rinnai, Guangzhou Rinnai, Rinnai Hong Kong Built-in hobs (stovetops) Water heaters Boilers Shanghai Rinnai, Fiscal 2027 1Q results [Billions of yen] ■Net sales ■Operating income ■ Operating income to net sales ratio 8.8% 9.61 8.49 11.1% 0.84 0.94 6.31 -0.45 -7.2% FY2025 FY2026 FY2027 1Q 1Q 1Q [Billions of Yen] Fiscal 2026 Fiscal 2027 YOY change Yen Local currency Net Sales 8.49 6.31 -25.7% -31.0% Operating Income 0.94 -0.45 - - Operating income to net sales ratio 11.1% -7.2% -18.3pt
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Australia Fiscal 2027 (1Q) Results [Billions of Yen] Fiscal 2026 Fiscal 2027 YOY change Net Sales 9.27 12.70 +36.9% Operating Income 0.14 0.51 +263.0% Operating income to net sales ratio 1.5% 4.1% +2.5pt Rinnai Australia - Housing starts recovering gradually; trend toward electrification continues gaining momentum - In addition to strong sales of tankless water heaters, sales of electrified products (such as storage batteries and heat pump water heaters) grew significantly, driven by government subsidies and synergies with acquired company - Increase in income thanks to higher revenue resulting from strong sales [Sales Volume] YOY change Tankless water heaters +5.8% Electric tank-based water heaters +11.6% Heat pump water heaters +185.3% 14 Water heaters 40.6% Air conditioning appliances 26.4% Commercial-use equipment 3.6% Others 29.4% ©Rinnai Corporation *From January to March 2026 ■Segment results ■Segment companies ■Net sales by product, Fiscal 2027 (1Q) results ■Non-consolidated results of major company Rinnai Australia Rinnai Australia, Fiscal 2027 1Q results [Billions of yen] Tankless water heaters Electric tank-based water heaters Duct-type air-conditioning and heating systems 1.4% 7.28 0.09 0.23 2.5% 9.29 12.73 0.60 4.8% FY2025 FY2026 FY2027 1Q 1Q 1Q [Billions of Yen] Fiscal 2026 Fiscal 2027 YOY change Yen Local currency Net Sales 9.29 12.73 +36.9% +20.7% Operating Income 0.23 0.60 +163.6% +132.2% Operating income to net sales ratio 2.5% 4.8% +2.3pt ■Net sales ■Operating income ■ Operating income to net sales ratio
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'22 '23 '24 '25 '26-1Q 計画台数 販売台数 15 Australia Topics - Key initiatives to address the electrified product market in Australia ■ Leveraging synergies with Smart Energy ■ Growth in sales of heat pump water heaters '22 '23 '24 '25 '26 Smart Energy: Net sales （計画） - Sales of heat pump water heaters have remained strong, boosted by government subsidies - Aim to further boost sales by expanding our product lineup and broadening our sales channels - Secured a major government contract current fiscal year - Smart Energy has posted record-high sales since being acquired in August 2024 - In addition to sales growth, in fiscal 2027 we expect to expand sales through new channels by leveraging Rinnai’s sales network Existing channels New channel Fiscal 2027 net sales forecast * Targeting builders Expanded lineup Integrated type Split type Storage batteries Room air conditioners Solar panels Heat pump water heaters New channel business Bundling electrified products and selling them to builders in Rinnai’s sales network Rinnai products ©Rinnai Corporation FY FY FY FY FY 2023 2024 2025 2026 2027 (Plan) FY FY FY FY FY 2023 2024 2025 2026 2027 1Q Heat pump water heaters: Unit sales ■ Sales unit (plan) ■ Sales unit (actual) Smart Energy products To Rinnai:「電化商材のパッケージ化」とは具体 的にはどのようなことですか？給湯器とマイクロバブ ルのようにシステム化して売るということですか？ To Rinnai:左右のグラフは 年度でよろしいですか？
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South Korea Fiscal 2027 (1Q) Results [Billions of yen] Fiscal 2026 Fiscal 2027 YOY change Net Sales 8.98 9.50 +5.7% Operating Income 0.45 0.54 +19.5% Operating income to net sales ratio 5.1% 5.8% +0.7pt Rinnai Korea - Sluggish housing market due to rising inflation and an economic slowdown - Increase in revenue as sales boosted by launch of new core boiler products - Increase in income reflecting higher demand prior to March 2026 price revision and improved profitability after price revision [Sales volume] YOY change Boilers +8.3% Gas tabletop cookers -31.2% Electric tabletop cookers -10.7% 16 Water heaters 51.1%Kitchen appliances 20.9% Commercial-use equipment 11.3% Others 16.8% [Billions of yen] Fiscal 2026 Fiscal 2027 YOY change Yen Local currency Net Sales 8.27 8.58 +3.7% +0.9% Operating Income 0.38 0.43 +12.1% +9.1% Operating income to net sales ratio 4.7% 5.0% +0.4pt ©Rinnai Corporation *From January to March 2026 ■Net sales by product, fiscal 2027 (1Q) results ■Segment companies ■Non-consolidated results of major company ■Segment results Rinnai Korea, RB Korea Gas tabletop cookers Electric tabletop cookers Environmentally friendly boilers Rinnai Korea, Fiscal 2027 1Q results [Billions of yen] ■Net sales ■Operating income ■ Operating income to net sales ratio 4.1% 8.16 0.33 0.38 4.7% 8.27 8.58 0.43 5.0% FY2025 FY2026 FY2027 1Q 1Q 1Q
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Indonesia Fiscal 2027 (1Q) Results [Billions of yen] Fiscal 2026 Fiscal 2027 YOY change Net Sales 4.33 5.28 +21.8% Operating Income 0.94 1.15 +22.5% Operating income to net sales ratio 21.8% 21.9% +0.1pt P.T. Rinnai Indonesia - Continued steady growth in kitchen appliance market supported by the expanding middle-income population - Increase in sales as replacement demand following natural disasters rose and demand ahead of planned price revision remained strong throughout first quarter - Increase in income driven by higher sales of core tabletop gas cookers and positive impact of price revisions [Sales volume] YOY change Tabletop cookers +26.8% Built-in hob (stovetops) -7.2% Range hoods -18.9% 17 ©Rinnai Corporation *From January to March 2026 P.T. Rinnai Indonesia ■Segment company ■Non-consolidated results of major company ■Segment results ■Net sales by product, fiscal 2027 (1Q) results Range hoods Tabletop cookers Built-in hobs (stovetops) P.T. Rinnai Indonesia, Fiscal 2027 1Q results ■ Net sales ■Operating income ■ Operating income to net sales ratio Water heaters 1.4% Kitchen appliances 85.0% Commercial-use equipment 11.1% Others 2.5% [Billions of yen] 4.54 4.46 5.41 21.4%20.6% 21.2% 1.150.940.93 FY2025 FY2026 FY2027 1Q 1Q 1Q [Billions of yen] Fiscal 2026 Fiscal 2027 YOY change Yen Local currency Net Sales 4.46 5.41 +21.5% +22.1% Operating Income 0.94 1.15 +22.6% +23.2% Operating income to net sales ratio 21.2% 21.4% +0.2pt
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Consolidated Performance Forecasts 18 FY2027 (Q1) Applicated exchange rates FY2027 (beginning) Assumed exchange rates USD ¥156.478 ¥150.000 AUD 108.263 103.781 CNY 22.573 21.639 KRW 0.1076 0.1031 IDR 0.00933 0.00894 - First half: No change in forecasts; first-quarter performance slightly ahead of internal projection - Second half: Maintaining full-year forecasts as domestic price adjustments expected to offset impact of rising copper prices Reference: Exchange rates Reference: Electrolytic copper prices ©Rinnai Corporation [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 [estimates] 1st half 231,000 19,600 8.5% 21,400 9.3% 13,000 5.6% YOY change +6.7% -13.8% -15.3% -18.3% Full year 500,000 50,500 10.1% 54,100 10.8% 36,300 7.3% YOY change +6.3% -0.1% -6.2% +0.4% Consolidated [results] 1st quarter 113,669 9,195 8.1% 10,302 9.1% 6,744 5.9% YOY change +10.6% -5.2% -3.5% +1.8% 1st quarter progress to 1st half estimates 49.2% 46.9% 48.1% 51.9% 1300 1500 1700 1900 2100 2300 4月 5月 6月 7月 8月 9月 1… 1… 1… 1月 2月 3月 [Yen/1kg] FY2027 FY2026 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. 2,300 2,100 1,900 1,700 1,500 1,300 103.781 ⇒失礼しました、修正し ました！RH 和文では第1四半期の実績 となりますので修正をお願いします。 ⇒失礼しました、修正しました！ 対上期進捗は少し長くなりますが 説明したほうが分かりやすいかと思いました。 RH
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Copyright © Rinnai Corporation. All Rights Reserved. 前ファイルでは (C) でしたが 本文で © 使っているので合わせました