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Copyright © TOTO LTD. All Rights Reserved.

April 28, 2017

Fiscal Year 2017 Results

This notice has been translated from the original notice in Japanese.

In the event of any discrepancy, the original in Japanese shall prevail.


１． Financial Result for FY 2017

２．Topics

３．Financial Plan for FY 2018

Contents

Copyright © TOTO LTD. All Rights Reserved. 1

Summary of Consolidated Financial Results for 2017

Highlights

New business domains: Increased sales and profits

◆ Remodeling business increased sales and profits. ◆ New Housing business decreased in sales and profits.

◆ Performance driven by strong operation in China. ◆ Increases in sales and profits in China and the Americas.

Increase in Sales and Profits. Record High Sales, Operating Profit and Ordinary Profit.

◆ Considerable increase in sales and profit due to continued demand in ceramic business.

Global housing equipment business (Japan):Increase in income

Global housing equipment business (overseas): Increased sales and profits


Financial results

■Exchange rates

Unit: Y billion

Plan vs.

Plan

600.0 ▲7.7 （▲1%)

54.0 [9.0%]

▲1.4 （▲3%)

56.0 ▲1.7 （▲3%)

38.0 ▲1.3 （▲3%)

9.6% ▲0.2pt

12.4% ▲0.7pt

FY16 FY17

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

1 $ ¥115.4 ¥108.0 ¥102.4 ¥109.4 ¥113.6 ¥111.1 ¥111.0 ¥113.0

1 CNY ¥17.6 ¥16.5 ¥15.4 ¥16.0 ¥16.6 ¥16.2 ¥16.6 ¥17.1

1 € ¥127.2 ¥121.9 ¥114.3 ¥117.9 ¥121.1 ¥122.3 ¥130.4 ¥133.0

FY 2017 Results

2

FY16 FY17

YoY Influence of exchange rete

Currency-neutral basis

Net Sales 567.3 592.3 +25.0 (+4%)

+3.9 +21.1 (+4%)

Operating Profit [Operating Margin]

47.4 [8.4%]

52.6 [8.9%]

+5.2 (+11%)

+0.7 +4.5

(+10%)

Recurring Profit

48.1 54.3 +6.2

(+13%) ▲0

＋6.2 (+13%)

Profit attributable to owners of parent 32.9 36.7

+3.8 (+12%)

▲0.3 +4.1

(+12%)

ROA 8.7% 9.4% +0.7pt

ROE 11.5% 11.7% +0.2pt

Starting from the current financial year, the currency conversion method for overseas group companies' profit and loss was changed from the method using the rates on the last day of each term to the method using average rates during each term. All numbers found in the information related to the previous year in this material have been revised retroactively.


< Net Sales > FY16 FY17 YoY Influence of exchange rete


Domestic H.E. 423.3 425.6 +2.3 (+1%)

+2.3 (+1%)

Overseas H.E. 122.2 137.9 +15.7 (+13%)

+3.4 +12.3 (+10%)

New Domain 21.4 28.4 +7.0 (+32%)

+0.5 +6.5 (+30%)

Others 0.2 0.2 ▲0 ▲0

Total 567.3 592.3 +25.0 (+4%)

+3.9 +21.1 (+4%)

3

FY 2017 Results

Sales and profit by business segment

< Operating Profit > FY16 FY17 YoY Influence of exchange rete


Domestic H.E. 29.1 28.6 ▲0.5 (▲2%)

▲0.5 (▲2%)

Overseas H.E. 22.2 26.3 +4.1 (+19%)

+0.7 +3.4 (+16%)

New Domain 0.5 1.3 +0.8 (+143%)

+0.1 +0.7 (+142%)

Others ▲4.4 ▲3.7 +0.7 +0.7

Total 47.4 52.6 +5.2 (+11%)

+0.7 +4.5 (+10%)

Plan vs.

Plan

433.0 ▲7.4 (▲2%)

137.5 +0.4 （+0%）

29.2 ▲0.8

（▲3%）

0.3 ▲0.1

600.0 ▲7.7 （▲1%）

Plan vs.

Plan

31.0 ▲2.4 （▲8%）

25.0 +1.3 （＋5%）

1.9 ▲0.6 （▲31%）

▲3.9 +0.2

54.0 ▲1.4 （▲3%）

Unit: Y billion


FY 2017 Results

Housing Equipment Business（Japan）

FY16 operating profit


Cause of increase/decrease of operating profit （Breakdown of 0.5 billion yen in previous year's difference）

- Cost for the operation of new factory

- Change in treatment revision of personnel system - Increase in base pay, etc.

- Effect of changes in copper price ： ▲1.3 billion yen - Effects of changes in steel sheet prices ： ▲1.0 billion yen

vs. Plan ▲2.6 ▲0.2 ▲0.6 ▲0 +0.2 +0.3 +0.5 +0.2 ＊Based on the revised plan based on October 30

▲2.4

Total difference of plan

Increase/decrease in sales and product range differences

Cost reduction

Influence of raw materials

increase/ decrease in labor costs

Amortization development of Production investment

Strengthening investment sales

Others

29.1 28.6

+6.6 ▲2.4

+1.6 ▲1.6 ▲1.2 ▲0.7

▲3.5

+0.9

Unit: Y billion


FY 2017 Results


Performance by demand

FY16 FY17 YoY

Net Sales 283.5 290.1 +6.6 （+2%）

Operating Profit 24.2 24.7 +0.5 （+2%）

Operating Margin 9% 9% ▲0pt

Increase in sales and profits in remodeling segment .

Both remodeling and new housing fell short of the plan

Plan Vs. Plan

292.5 ▲2.4 （▲1％）

26.0 ▲1.3 (▲5％)

9% ▲0pt

FY16 FY17 YoY

Net Sales 139.7 135.4 ▲4.3 （▲3%）

Operating Profit 4.9 3.9 ▲1.0 （▲19%）


Plan Vs. Plan

140.5 ▲5.1 (▲4％)

5.0 ▲1.1 (▲21％)

4% ▲1pt

< Remodeling>

<New Housing>

Unit: Y billion


FY 2017 Results

Housing Equipment Business（Japan）：Results by product demand

While the remodeling market was sluggish, segment sales increased year on year due to the effect of new products. For new housing, while sales for non-residential buildings were solid, sales for private homes decreased with a

declining number of new housing starts.

Second half （ October-March ）（YoY）

Second half （ April to March ）（YoY）

283.5 billion yen

290.1 billion yen

（＋2%）

▲1％ +3％

FY2016 FY2017

149.5 billion yen

153.4 billion yen

（＋3%）

▲1％ +3％

FY2016 FY2017

Measures including the launch of new

products

Remodeling New Housing

First half Second half Full year

For residential

use Net Sales

▲6% ▲8% ▲7%

Housing starts

+1% ▲3% ▲1%

（YoY）

For non residential Net Sales

+4% +7% +6%

Market growth

Market growth Measures including the launch of new

products


FY 2017 Results

Net Sales Operating Profit

FY16 FY17 YoY FY16 FY17 YoY

Sanitary Ware 86.3 89.9 +3.6

（+4%） 8.2 8.8

+0.6 （+7%）

Washlet 93.1 95.1 +2.0

（+2%） 12.9 14.1

+1.2 （+9%）

Faucet Fixtures 93.2 93.7 +0.5

（+0%） 7.6 6.6

▲1.0 （▲12%）

Bathrooms 96.0 94.2 ▲1.8

（▲2%） 3.2 1.6

▲1.6 （▲51%）

Modular Kitchens/Basins

45.4 43.0 ▲2.4

（▲5%） ▲2.4 ▲1.9

+0.5 （－）

Others 9.0 9.5 +0.5

（+6%） ▲0.5 ▲0.5

▲0 （－）

Total 423.3 425.6 +2.3

（+1%） 29.1 28.6

▲0.5 （▲2%）


Sales per Products

Led by new product launches, the sanitary ware and Washlet sales increased. Profit from bathrooms declined due to a decrease in sales and the impact of soaring raw materials prices.

Unit: Y billion


Driven by the strong Chinese market,

sales and profits continued to rise in the global market as a whole.

< Operating Profit >

FY16 FY17 YoY Currency-neutral basis

China 15.2 18.1 +2.9

(+19%)

+2.5 (＋16%)

Asian & Oceanian Region 5.5 6.7

+1.2 (+21%)

+0.9 (+17％)

Americas 2.2 2.5 +0.3

(+13%)

+0.2 (+11%)

Europe ▲0.8 ▲1.0 ▲0.2 （－）

▲0.1 （－）

Total 22.2 26.3 +4.1

( ＋19%)

+3.4 ( +16%)

8

FY 2017 Results

< Net Sales > FY16 FY17 YoY Currency-neutral basis

China 61.3 71.9 +10.6 (+17%)

+9.2 (+15%)

Asian & Oceanian Region 28.6 31.6

+3.0 (+10%)

+2.0 (+7%)

Americas 28.4 30.7 +2.3 (+8%)

+1.4 (+5%)

Europe 3.7 3.5 ▲0.2

（▲4%） ▲0.3

（▲9%）

Total 122.2 137.9 +15.7 (+13%)

+12.3 (+10%)

Housing Equipment Business（Overseas）

Plan vs.Plan

18.1 +0

6.2 +0.5

2.0 +0.5

▲1.3 +0.3

25.0 +1.3

Plan vs.Plan

71.5 +0.4

31.7 ▲0.1

30.7 +0

3.6 ▲0.1

137.5 +0.4

Unit: Y billion


FY 2017 Results

Financial Results Unit: CNY million

Results for local subsidiaries (China)

FY16 FY17 YoY

Net Sales 3,776 4,308 +532 (+14%)

Operating Profit

979 1,150 +171

(+18％)

Operating Margin

26% 27% +1pt

Exchange rates

4Q, FY16 4Q, FY17

1CNY ¥16.0 ¥17.1

979

▲43

1,150

+30

2016年度営業利益


売上増減／商品構成差

製造コスト

販管費増減

Cause of increase/decrease of operating profit

Unit: CNY million

+184

Significant increase in sales and profits compared to the previous year. Strengthen promotion aiming for further expansion of Washlets.

（with FY16 as 100 ）

Washlets: Growth in sales volume

* Base that does not include consolidated adjustment and common expense allocations

FY 17 FY 16

FY 16 operating income


Increase/decrease in sales

Production cost



FY 2017 Results


(＋19%)

(＋10%)

(＋25%)

(▲1%)

(+4%)

China Total ：+14％

North China 20%

East China 43%

South China 22%

West China 11%

Hong Kong 4%

YoY

Sanitary Ware +22%

Washlet +17%

Faucet Fixtures +19%

Sales in coastal regions continued to significantly increase. All products were solid.

Others 14% (FY17) 18％ (FY16）

Washlet 25% (FY17) 25％ (FY16）

Faucet Fixtures 18% (FY17) 17％ (FY16）

Sanitary Ware 43% (FY17) 40% (FY16）

■Net sales growth by region ■Net sales growth by produccts

East China

North China

South China

West China

Hong Kong

■ Sales distribution ratio

■Product range comprising net sales


FY 2017 Results

Taiwan FY16 FY17 YoY

Net Sales 3,734 3,606 ▲128 （▲3％）

Operating Profit 916 865 ▲51 （▲6％）

Operating Margin 25% 24% ▲1pt Exchange rates 4Q, FY17

1 dong ¥3.75

Unit: Million Taiwan dollars

Vietnam FY16 FY17 YoY

Net Sales (For external customers)

2,940 [1,818]

3,369 [2,140]

（+15%） (+18％）

Operating Profit 626 743 +117 （+19%)

Operating Margin 21% 22% +1pt

Unit: Billion Dong

Exchange rates 4Q, FY17

1 dong ¥0.00493

In Taiwan, both sales and profit decreased due to severe market conditions. In Vietnam, the results remained strong with increases in sales and profit.

Results for local subsidiaries (Asian & Oceanian Region) * Base that does not include consolidated adjustment and common expense allocations

Net sales breakdown by area Taiwan 42% Vietnam 33% Others 25%

■ Washlets: Growth in sales volume


FY 16 FY 17


FY 2017 Results

Financial Results Unit: $ million

Results for local subsidiaries (Americas)

29

+11

29


Unit: $ million


販管費増減



製造コスト

▲6

Sales increased driven by Washlet growth while the operating profit was flat.

▲5

FY16 FY17 YoY

Net Sales 261 274 +13 (+5%)

Operating Profit 29 29 ▲0 (▲1%)



Exchange rates

4Q, FY16 4Q, FY17

1$ ¥109.4 ¥113.0

133





Increase/decrease in sales

Production cost

Strengthening investment sales FY 17 FY 16


FY 2017 Results


(+7%) (+2%) (+5%)

(+5%)

West 43%

Northeast 25%

Central 22%

Canada 10%

Americas Total：+5％ YoY

Sanitary Ware +4%

Washlet +22%

Faucet Fixtures ▲4%

Sales increased in all regions, in particular, with a significant increase in Washlet.

Sanitary Ware 56% (FY17) 57％ (FY16）

Washlet 21% (FY17) 18％ (FY16）

Others 6% (FY17) 6％ (FY16） Faucet Fixtures

17% (FY17) 19％ (FY16）

■ Net sales growth by region

West

Canada

Northeast Central

■Net sales growth by produccts

■Product range comprising net sales

■ Sales distribution ratio

＊ Faucet Fixtures： Response to water-saving regulations was delayed, but released countermeasures in October.


2015年度 2016年度 2017年度

14

FY 2017 Results

Financial Results Unit: € million

FY16 FY17 YoY

Net Sales 28 26 ▲2

(▲7%)

Operating Profit ▲4 ▲6 ▲2 ( ー )

Results for local subsidiaries (Europe)

Exchange rates 4Q, FY16 4Q, FY17

1€ ¥117.9 ¥133.0

Decreased sales and profit.

We will continue building distribution channels and promoting adoption in well-known sites.

■ Examples of adoption in famous sites

41(6)

55(10) 72(15)

■European hotels: Cumulative number of hotels Installing Washlets

•Base that does not include consolidated adjustment •and common expense allocations

•Numbers in brackets are the number of

hotels with Washlets in all rooms.

* Cumulative figures from the past.

FY15 FY16 FY17

PALACE HOTEL

A title given to selected high-end hotels, certified by the French Minister of Tourism, has been given to ten hotels, all of which have adopted TOTO products.

Neorest was also adopted by a five star hotel located closed to Place Vendome.

Park Hyatt Paris-Vendôme Hotel（France）（ Certified in 2011 ）


Advanced Ceramic Business

Green Building Materials Business

New Domain Business

FY16 FY17 YoY

Influence of exchange rate


Net Sales 12.5 20.0 +7.5 (+60%)

+0.5 +7.0 (+57%)

Operating Profit 1.2 1.7 +0.5 (+42%)

+0 +0.5 (+41%)


Plan vs.Plan

20.2 ▲0.2 (▲1%)

2.3 ▲0.6 (▲23%)

11% ▲2pt

FY16 FY17 YoY

Influence of exchange rate


Net Sales 8.9 8.4 ▲0.5 (▲7%)

▲0.5 (▲7%)

Operating Profit ▲0.6 ▲0.4 +0.2 （－）

+0.2 （－）

Plan vs.Plan

9.0 ▲0.6 (▲7%)

▲0.4 ▲0 (－)

Driven by the ceramic business, sales and profits surged.

FY 2017 Results

Unit: Y billion

Unit: Y billion



２．Topics


Contents


“Anshin” remodelling strategy

2018

Remodeling “Anshin” Declaration

Turning customers’ problems into joy

Exceeding customers’ expectations

1993 Remodeling Declaration

2003 New Remodeling

Declaration

Bring more “Anshin” to remodeling

TOTO has always proposed new lifestyles to its customers. While staying true to this tradition, TOTO will further develop the concept of “remodeling”. The latest declaration encapsulates TOTO’s desire to help customers so that they can embark on remodeling with peace of mind.

TOTO is making a new declaration on remodeling

Topics


“Anshin” remodelling strategy

Topics

We will respond to customers’ questions and concerns with “Visualize and understand”

Remodel Pro Shop

"Visualize and understand" shops where customers can feel reassured

FY2022

5,000 shops

Support Desk for Remodeling

"Visualize and understand" our response to customers’ questions and concerns

From April 2 Available for 365 days

Remodeling Library

"Visualize and understand" examples and approximate prices of remodeling

FY2022 Number of actual cases: 10,000

Showroom "Visualize and understand" the living after

remodeling

Towards having proposal capabilities that are No. 1

Examples including price information

Attractive showroom

Consultation desk for remodeling

Remodeling club shops


Topics

WASHLET – Global Strategy

We will thoroughly appeal to foreign visitors for “toilet seat with bidet function, that is TOTO WASHLET” so that our efforts will lead to product purchase after returning home.

Washlet, which is positioned as the top priority product in

TOTO’s global growth strategy

Cumulative shipments of

Washlet exceeded 40 million!

Carry out a large-scale promotion targeting foreign visitors at the airport (for international

flight), which is the entrance to and exit from Japan.

In order to popularize Washlets globally,

we will establish the TOTO WASHLET brand.

Connect overseas and domestic strategies for encouraging purchase after returning home.


Topics

Received internationally recognized design awards

■NEOREST NX: iF design award; Red Dot design award

Received both internationally recognized design awards held in Germany

GS series lavatory faucets

NEOREST NX

ZL series lavatory faucets

■Faucets: iF design award; red dot design award

GA series lavatory faucets

Evaluation on our globally unified product model has been unquestionably increasing internationally


Topics

Evaluation from outside TOTO

Our manufacturing and CSR efforts are well thought of both inside and outside Japan

Automatic Faucet with Photoelectric Sensor ; Listed as“Building Mechanical and Electrical Engineering Heritage” in FY2017

Received the Invention Award in the National Commendation for Design of urinal to automatically wash

June

June

July

Octo

ber

TOTO was selected as an index member of “FTSE4Good Index Series,” a global index for Social Responsible Investment, for two straight years (announced in July 2017).

The Company has been selected as an index component of "Dow Jones Sustainability Indices (DJSI) Asia Pacific" for nine consecutive years.

Achieved water savings and hygiene requirements for public toilets (no-touch auto functions) Set a starting point for technological progress for the future

The key factors in the winning of this award is the new design offering both ease of use and cleaning efficiency

Our management and information disclosure taking into account ESG (environment, society and governance) factors was well thought of.

Corporate sustainability was well thought of from an ESG viewpoint.


Topics

New production base

■Vietnam Started operations at the third factory （Sanitary ware)

Reinforce the supply system, with a view to expanding international sales

■Factory Overview

Name TOTO (THAILAND) CO., LTD.

Investment amount

Approximately 3.7billion yen

Factory Overview

Site area ：Approximately 49,000㎡ building：Approximately 18,000㎡（Total floor area）

Production capacity

Approximately 450,000 units per year

■Thailand Started building the third factory （WASHLET）

Name TOTO VIETNAM CO., LTD.

Investment amount

Approximately 9.7 billion yen

Production item Sanitary ware

Production capacity

Approximately 600,000 units per year

■Factory Overview


Topics

TDY Remodel Collection 2018

Updated the name of the fair and organized it on a large-scale for the first time in three years. In cooperation with TDY, we present remodeling proposals that exceed customer expectations.

Thu., May 17, 2018 – Sat., May 19, 2018 at Makuhari Messe

Organizing of TDY Remodel Collection 2018

(formerly Green Remodel Fairs)

・Showcase the “your dream living” with TDY showrooms for remodeling.

・10 suggested space plans will be exhibited at the Fair.



２．Topics


Contents


FY 2018 Plan

New business domains: Increased sales and profits

◆Both remodeling and new housing expect an increase in sales, but a decrease in profit due to aggressive investments.

◆ China plans to increase revenue and profit . Asia and the Americas plan to post lower profit due to aggressive investment etc. ◆ Washlet continues to expand sales

Planning to increase sale and profits. Aiming for an all-time high in both sales and operating income.

Global housing equipment business (Japan): Increase in income

Global housing equipment business (overseas): Increased sales and profits

◆ Planning a significant increase in sales and profits with the growth in the ceramics business.


Financial results

■Exchange rates

FY17 FY18Plan

1Q 2Q 3Q 4Q plan

1 $ ¥113.6 ¥111.1 ¥111.0 ¥113.0 ¥106.0

1 CNY ¥16.6 ¥16.2 ¥16.6 ¥17.1 ¥17.0

1 € ¥121.1 ¥122.3 ¥130.4 ¥133.0 ¥133.0

FY 2018 Plan

24

FY17 FY18Plan

YoY Influence of exchange

rete

Currency-neutral basis 1st Half 2nd Half Total

Net Sales 592.3 293.0 327.0 620.0 +27.7 (+5%)

+0.2 +27.5 (+5%)

Operating Profit [Operating Margin]

52.6 [8.9%]

20.7 [7.1%]

33.3 [10.2%]

54.0 [8.7%]

+1.4 (+3%)

+0.2 +1.2 (+2%)

Recurring Profit

54.3 21.6 34.4 56.0 +1.7 (+3%)

＋0.6 ＋1.1 (+2%)

Profit attributable to owners of parent 36.7 13.6 24.4 38.0

+1.3 (+3%)

＋0.5 +0.8 (+2%)

ROA 9.4% 9.3%

ROE 11.7% 11.0%

Unit: Y billion


Whole company

52.6

▲3.3 +16.7

54.0

+8.3 ▲6.6

▲7.4 ▲5.1



ｺｽﾄﾘﾀﾞｸｼｮﾝ

原材料の影響

労務費の増減

減価償却費・開発投資

販売強化投資その他 2018年度営業利益

▲1.2

-Wage improvement

-Improve treatment of retired re-employees etc.

-New product development -New factory in Asia -Strengthening ceramic production development etc.

WASHLET Global Strategy

“Anshin” Remodeling Strategy etc.

While there are increases in sales and cost reduction, we are making aggressive investments with a view to the future, and operating income of +1.4 billion yen

FY 2018 Plan

Depreciation

· development

investment



Others Strengthening investment sales


Cost reduction



Unit: Y billion



< Net Sales > FY17 FY18 Plan

YoY Influence of exchange rete

Currency-neutral basis 1st Half 2nd Half Total

Domestic H.E. 425.6 206.0 227.6 433.6 +8.0 (+2%)

+8.0 (+2%)

Overseas H.E. 137.9 70.3 80.2 150.5 +12.6 (+9%)

+0.7 +11.9 (+9%)

New Domain 28.4 16.6 19.1 35.7 +7.3 (+26%)

▲0.5 +7.8 (+27%)

Others 0.2 0.1 0.1 0.2 ▲0 ▲0

Total 592.3 293.0 327.0 620.0 +27.7 (+5%)

+0.2 +27.5 (+5%)

26

FY 2018 Plan

Sales and profit by business segment

< Operating Profit > FY17

FY18 Plan YoY Influence of

exchange rete Currency-

neutral basis 1st Half 2nd Half Total

Domestic H.E. 28.6 9.4 17.8 27.2 ▲1.4 (▲5%)

▲1.4 (▲5%)

Overseas H.E. 26.3 12.0 14.8 26.8 +0.5 (+2%)

+0.3 +0.2 (+1%)

New Domain 1.3 0.9 2.6 3.5 +2.2 (About 2.7 times)

▲0 +2.2 (About 2.2 times)

Others ▲3.7 ▲1.6 ▲1.9 ▲3.5 +0.2 +0.2

Total 52.6 20.7 33.3 54.0 +1.4 (+3%)

+0.2 +1.2 (+2%)

Unit: Y billion


FY 2018 Plan




ｺｽﾄﾘﾀﾞｸｼｮﾝ

原材料の影響

労務費の増減

減価償却費

開発・生産投資

販売強化投資

その他 2018年度営業利益

28.6

+6.0 ▲3.0

▲0.7

▲1.3 ▲1.2 ▲3.0


▲2.0

27.2

+3.8

- Effect of changes in copper price： ▲0.4 billion yen - Effect of changes in the exchange rate ： ▲0.9 billion yen



Cost reduction



Amortization

development of Production investment


Others FY18 operating profit

Unit: Y billion



Performance by demand

FY17 FY18 Plan YoY

Net Sales 290.1 296.8 +6.7 （+2%）



Remodeling and New Housing; Increase in sales.

FY17 FY18 Plan YoY

Net Sales 135.4 136.7 +1.3 （+1%）



FY 2018 Plan

< Remodeling>

<New Housing>

Unit: Y billion


Housing Equipment Business（Japan）： Plan of Remodeling/New Housing

FY 2018 Plan

For remodeling, sales is expected to increase year on year combined with the market growth and effects from measures including new product launches.

For new housing, plan to increase sales year on year, outpacing the number of new housing. Schedule to factor in the effect of buying rush in anticipation of the consumption tax hike as +1% and +3% for

the second half of FY2018 and for the first half of FY2019 respectively.

Housing starts

regidential ▲1%

290.1 billion yen

296.8 billion yen （＋2%）

+1％ +1％

FY2017 FY2018

+6.7 billion yen

Due to effect of tax increases +0.5％

Remodeling New Housing

Housing starts

regidential +1%

non regidential +4%

【demand】

【 Sales plan 】

＊Including tax increase impact + 1%

Market growth Measures including the launch of new

products


Net Sales Operating Profit

FY17 FY18 Plan YoY FY17 FY18 Plan YoY

Sanitary Ware 89.9 91.7 +1.8

（+2%） 8.8 8.5

▲0.3 （▲4%）

Washlet 95.1 96.8 +1.7

（+2%） 14.1 13.0

▲1.1 （▲8%）

Faucet Fixtures 93.7 95.9 +2.2

（+2%） 6.6 6.5

▲0.1 （▲3%）

Bathrooms 94.2 96.3 +2.1

（+2%） 1.6 0.9

▲0.7 （▲44%）

Modular Kitchens/Basins

43.0 44.1 +1.1

（+2%） ▲1.9 ▲1.3

+0.6 （－）

Others 9.5 8.8 ▲0.7

（▲8%） ▲0.5 ▲0.4

+0.1 （－）

Total 425.6 433.6 +8.0

（+2%） 28.6 27.2

▲1.4 （▲5%）


Sales per Products

While aiming to increase sales of all products, we expect a decrease in profit due to aggressive investment.

FY 2018 Plan

Unit: Y billion


Plan to increase sales in all regions

31

FY 2018 Plan


<Operating Profit> FY17 FY18 Plan YoY Currency-neutral basis

China 18.1 19.5 +1.4 (+7%)

+0.9 (＋5%)

Asian & Oceanian Region

6.7 6.2 ▲0.5 (▲9%)

▲0.4 (▲7％)

Americas 2.5 2.3 ▲0.2 (▲9%)

▲0.1 (▲6%)

Europe ▲1.0 ▲1.2 ▲0.2 （－）

▲0.1 （－）

Total 26.3 26.8 +0.5

( ＋2%)

+0.2 ( 1%)

< Net Sales > FY17 FY18 Plan YoY Currency-neutral basis

China 71.9 80.0 +8.1

(+11%) +6.3 (+9%)

Asian & Oceanian Region

31.6 34.3 +2.7 (+8%)

+3.0 (+10%)

Americas 30.7 31.9 +1.2 (+4%)

+1.7 (+6%)

Europe 3.5 4.3 +0.8

(+20%) +0.6

(+17%)

Total 137.9 150.5 +12.6

(+9%) +11.9

(+9%)

Unit: Y billion


Financial Results Unit: CNY million


FY17 FY18 Plan YoY

Net Sales 4,308 4,700 +392 (+9%)

Operating Profit

1,150 1,225 +75

(+6%)

Operating Margin

27% 26% ▲1pt

Exchange rates FY18 Plan

1CNY ¥17.0

We expect to achieve an increase in sales and profit and aim for sustainable growth.

FY 2018 Plan

-Sales for the first quarter (January to March) grew by 4% year-on-year. -The growth in the unit sales of Washlet : Slight increase compared to the previous year

100

137

2017年度 2018年度

Washlets: Growth in sales volume Cause of increase/decrease of operating profit

Unit: CNY million

1,150

▲39

1,225

+171 ▲57




製造コスト

販管費増減



FY16 operating income


Increase/ decrease in sales


Production cost FY 18 (Plan) FY 17


Results for local subsidiaries (Asian & Oceanian Region)

FY17 FY18 Plan YoY

Net Sales 3,606 3,566 ▲40 （▲1％）

Operating Profit

865 795 ▲70 （▲9％）

Operating Margin

24% 22% ▲2pt

■Washlets: Growth in sales volume

Taiwan


1 Taiwan dollars ¥3.65

100 105

2017年度 2018年度

Unit: Million Taiwan dollars

FY17 FY18 Plan YoY

Net Sales (For external customers)

3,369 [2,140]

4,236 [2,538]

（+26%） (+20％)

Operating Profit 743 743 ▲0 （▲０％）


Vietnam Unit: Billion Dong


1 dong ¥0.00485

Taiwan: We expect a decrease in sales and profit although the housing market began to show signs of bottoming out. Vietnam: Continue to achieve substantial growth against the backdrop of robust demand.

-Sales for the first quarter (January to March) grew by 2% year-on-year.

Sales for the first quarter (January to March) down by -13% year-on-year.

FY 2018 Plan


FY 18(Plan) FY 16



Ｐ／Ｌ Unit: $ million


We expect to achieve an increase in sales and profit centered on the significant sales growth of Washlet.

FY 2018 Plan

FY16 FY18 Plan YoY

Net Sales 274 300 +26

(+10%)

Operating Profit

29 34 +5

(+16%)

Operating Margin

11% 11% +0pt

Exchange rates FY18Plan

1$ ¥106.０

-Sales for the first quarter (January to March) grew by 2% year-on-year. -The growth in the unit sales of Washlet : +15%.

29

+7

34


Unit: $ million


販管費増減



製造コスト

▲9 +6 （with FY17 as 100 ）

Washlets: Growth in sales volume

100

146

2017年度 2018年度

124




Increase/ decrease in sales


Production cost

FY 18 (Plan) FY 17


Financial Plan Unit: € million

FY17 FY18 Plan YoY

Net Sales 26 30 +4 (+12%)

Operating Profit ▲6 ▲6 ▲0 ( ー )

Results for local subsidiaries (Europe)

We expect an increase in sales with a flat operating profit.

FY 2018 Plan


1€ ¥133.0

＊Numbers in brackets are the number of hotels with Washlets in all rooms.

■Prospect of Washlets adoption at luxury hotel

Cumulative ： 88（23） YoY ：+16（+8）


Sales for the first quarter (January to March) down by -1% year-on-year.


Advanced Ceramic Business

Green Building Materials Business

New Domain Business

FY17 FY18 Plan YoY

Influence of exchange rete


Net Sales 20.0 26.7 +6.7 (+33%)

▲0.5 +7.2 (+36%)

Operating Profit 1.7 3.3 +1.6 (+94%)

▲0 +1.6 (+91%)

Operating Margin 9% 12% +3pt

FY17 FY18 Plan YoY

Influence of exchange rete


Net Sales 8.4 9.0 +0.6 (+7%)

+0.6 (+7%)

Operating Profit ▲0.4 0.2 +0.6 （－）

+0.6 （－）

Plan to make significant growth in the ceramic business against the backdrop of robust

semiconductor demand.

FY 2018 Plan

Unit: Y billion

Unit: Y billion


FY2016 FY2017 FY2018 Plan

Capital expenditure 26.7 billion yen 38.1 billion yen 58.5 billion yen

Depreciation expenses 19.2 billion yen 21.3 billion yen 24.9 billion yen

R&D expenses 19.4 billion yen 20.5 billion yen 23.3 billion yen

Changes in capital expenditure, depreciation expenses and R&D expenses

FY 2018 Plan

■Breakdown of capital investment (FY2018)


-New product development -Production equipment related etc.



・New plant related ・Production equipment related etc.


New Domain Business ・Ceramic expansion etc. Approximately 10.0billion yen


FY16 FY17 FY18 Plan

1st Half ¥ 34.0 ¥36.0 ¥45.0

2nd Half ¥ 34.0 ¥36.0 ¥45.0

Full Year ¥ 68.0 ¥72.0 ¥90.0

Dividend payment Ratio

34.9％ 33.1％ 40.1％

Dividend Plan

Plan to increase the dividend payout ratio to around 40% from this fiscal year onward.

FY 2018 Plan

Annual Dividend ：Plan to increase dividend of 18 yen against the previous year

This presentation material contains forward-looking statements based on assumptions,

estimates and plans as of April 27, 2018.

Actual performance may differ materially from these forward-looking statements due to

risks and undermined factors arising from changes in the world economy, competition and

foreign currency exchange rates.

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