Fiscal Year 2018 Results - Toto Ltd.This presentation material contains forward-looking statements based on assumptions, estimates and plans as of April 26, 2019

Copyright © TOTO LTD. All Rights Reserved.

April 26, 2019

Fiscal Year 2018 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 2018

２．Topics

３．Financial Plan for FY 2019

Contents

Copyright © TOTO LTD. All Rights Reserved. 1

Summary of Consolidated Financial Results for 2018

Highlights

New business domains: Sales increased but profits decreased

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

◆Both sales and profits decreased in the market in China due to the deterioration of the real estate market in major urban areas and delays in the launch of new products. ◆In Asia and Americas, sales increased but profits decreased.

Decreased sales and profit.

◆ In ceramic business, sales increased, but profits decreased due to worsening productivity.

Global housing equipment business (Japan): Decreased sales and profit.

Global housing equipment business (overseas): Decreased sales and profit.


Financial results

■Exchange rates

Unit: Y billion

Plan vs.

Plan

592.0 -6.0 （-1%)

41.0 [6.9%]

-0.9 （-2%)

43.5 -0.4 （-1%)

32.0 +0.3 （+1%)

7.1% -0.0pt

9.3% +0.3pt

FY17 FY18

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

1 $ ¥113.6 ¥111.1 ¥111.0 ¥113.0 ¥108.2 ¥109.1 ¥111.4 ¥112.9

1 CNY ¥16.6 ¥16.2 ¥16.6 ¥17.1 ¥17.0 ¥17.1 ¥16.4 ¥16.3

1 € ¥121.1 ¥122.3 ¥130.4 ¥133.0 ¥133.1 ¥130.0 ¥129.6 ¥128.8

FY 2018 Results

2

FY17 FY18

YoY Influence of exchange rate

Currency-neutral basis

Net Sales 592.3 586.0 -6.3 (-1%)

-0.6 -5.7 (-1%)

Operating Profit [Operating Margin]

52.6 [8.9%]

40.1 [6.9%]

-12.5 (-24%)

+0.0 -12.5 (-24%)

Recurring Profit

54.3 43.1 -11.2 (-21%)

+1.0 -12.2 (-23%)

Profit attributable to owners of parent 36.7 32.3

-4.4 (-12%)

+1.0 -5.4

(-15%)

ROA 9.4% 7.1% -2.3pt

ROE 11.7% 9.6% -2.1pt


< Net Sales > FY17 FY18 YoY Influence of exchange rate


Domestic H.E. 425.6 425.1 -0.5 (-0%)

-0.5 (-0%)

Overseas H.E. 137.9 130.4 -7.5 (-5%)

-0.4 -7.1 (-5%)

New Domain 28.4 30.2 +1.8 (+6%)

-0.2 +2.0 (+7%)

Others 0.2 0.2 -0.0 -0.0

Total 592.3 586.0 -6.3 (-1%)

-0.6 -5.7 (-1%)

3

FY 2018 Results

Sales and profit by business segment

< Operating Profit > FY17 FY18 YoY Influence of exchange rate


Domestic H.E. 28.6 24.4 -4.2 (-15%)

-4.2 (-15%)

Overseas H.E. 26.3 18.3 -8.0 (-30%)

+0.0 -8.0 (-31%)

New Domain 1.3 0.9 -0.4 (-26%)

-0.0 -0.4 (-25%)

Others -3.7 -3.5 +0.2 +0.2

Total 52.6 40.1 -12.5 (-24%)

+0.0 -12.5 (-24%)

Revision plan as of 2018 3Q

Difference from the

revision plan of 2018 3Q

430.0 -4.9 (-1%)

130.6 -0.2 （-0%）

31.1 -0.9

（-3%）

0.3 -0.1

592.0 -6.0 （-1%）


Difference from the

revision plan of 2018 3Q

25.5 -1.1 （-4%）

18.1 +0.2 （+1%）

1.0 -0.1 （-3%）

-3.6 +0.1

41.0 -0.9 （-2%）

Unit: Y billion


FY 2018 Results

Housing Equipment Business（Japan）

FY17 operating profit


Cause of increase/decrease of operating profit （Breakdown of -4.2 billion yen in previous year's difference）

vs. Revised plan -1.1 -0.2 -0.0 +0.1 +0.0 +0.0 +0.0 +0.1 -1.1

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

Unit: Y billion

28.6 24.4

+6.5 -2.0 -0.8

-2.0

-1.4

-0.8 -1.3 -2.4

- Increase in base pay, etc. - Improve treatment of retired re-employees

・ WASHLET Global Strategy ・Remodel related sales investment etc.

- Effects of changes in steel sheet prices - Effect of changes in copper price


FY 2018 Results


Performance by demand

FY17 FY18 YoY

Net Sales 290.1 290.5 +0.4 （+0%）

Operating Profit 24.7 21.3 -3.4 （-14%）

Operating Margin 9% 7% -2pt

Despite an increase in profits in the remodeling segment, both remodeling and new housing profits fell short of the plan.


Difference from the revision plan of

2018 3Q

292.8 -2.3 （-1％）

22.0 -0.7 (-3％)

8% -1pt

FY17 FY18 YoY

Net Sales 135.4 134.6 -0.8 （-1%）




Difference from the revision plan of

2018 3Q

137.1 -2.5 (-2％)

3.4 -0.3 (-9％)

3% -1pt

< Remodeling>

<New Housing>

Unit: Y billion


FY 2018 Results

Housing Equipment Business（Japan）：Results by product demand

While the remodeling market was sluggish, segment sales remained flat year-on-year due to the effect of new products, etc.

For new housing, while sales for residential houses outpaced housing starts, sales for non-residential buildings decreased due to delays in delivery.

Full year (YoY) (April to March)

Remodeling New Housing

Full year

For residential use Net Sales

+0%

Housing starts -2%

For non residential Net Sales

-2%

+1％ -1％

Full year (YoY) (April to March)

FY2017 Net Sales

FY2018 Net Sales

290.1 billion yen

290.5 billion yen

(+0%)

Market growth Measures including the launch of new

products


FY 2018 Results

Net Sales Operating Profit

FY17 FY18 YoY FY17 FY18 YoY

Sanitary Ware 89.9 90.0 +0.1

（+0%） 8.8 7.3

-1.5 （-17%）

Washlet 95.1 95.9 +0.8

（+1%） 14.1 13.1

-1.0 （-7%）

Faucet Fixtures 93.7 90.1 -3.6

（-4%） 6.6 4.4

-2.2 （-34%）

Bathrooms 94.2 97.4 +3.2

（+4%） 1.6 1.4

-0.2 （-9%）

Modular Kitchens/Basins

43.0 43.4 +0.4

（+1%） -1.9 -0.9 +1.0

Others 9.5 8.1 -1.4

（-15%） -0.5 -0.8 -0.3

Total 425.6 425.1 -0.5

（-0%） 28.6 24.4

-4.2 （-15%）


Sales per Products

Sales increased except for faucet equipment. Sales of faucet equipment decreased due to changes to the timing of new product launch

and delays in delivery of non-residential buildings.

Unit: Y billion


Both sales and profits decreased in the global housing project (overseas).

< Operating Profit >

FY17 FY18 YoY Currency-neutral

basis

China 18.1 12.3 -5.8

(-32%)

-5.9 (-33%)

Asian & Oceanian Region 6.7 5.4

-1.3 (-19%)

-1.2 (-19％)

Americas 2.5 1.6 -0.9

(-36%)

-0.8 (-34%)

Europe -1.0 -1.1 -0.1 -0.0

Total 26.3 18.3 -8.0

( -30%)

-8.0 ( -31%)

8

FY 2018 Results

< Net Sales > FY17 FY18 YoY Currency-neutral

basis

China 71.9 63.5 -8.4

(-12%) -8.8

(-12%)

Asian & Oceanian Region 31.6 31.8

+0.2 (+0%)

+0.5 (+2%)

Americas 30.7 31.3 +0.6 (+2%)

+1.0 (+3%)

Europe 3.5 3.7 +0.2

（+5%） +0.0

（+2%）

Total 137.9 130.4 -7.5 (-5%)

-7.1 (-5%)

Housing Equipment Business（Overseas）


Difference from the revision plan of 2018 3Q

12.2 +0.1 (+2%)

5.6 -0.2 (-3%)

1.5 +0.1 (+8%)

-1.2 +0.1

18.1 +0.2 (+1%)



62.3 +1.2 (+2%)

32.8 -1.0 (-3%)

31.7 -0.4 (-1%)

3.8 -0.1

130.6 -0.2 (-0%)

Unit: Y billion


FY 2018 Results

Financial Results Unit: CNY million

Results for local subsidiaries (China)

FY17 FY18 YoY

Net Sales 4,308 3,782 -526

(-12%)

Operating Profit

1,150 800 -350

(-30％)

Operating Margin

27% 21% -6pt

Exchange rates

4Q, FY17 4Q, FY18

1CNY ¥17.1 ¥16.3

Cause of increase/decrease of operating profit

Unit: CNY million

Both sales and profits decreased due to the deterioration of productivity and import-related expenses in addition to the deterioration of the real estate market

in major urban areas and delays in new product launches.

（with FY17 as 100 ）

Washlet: Growth in sales volume

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

FY 18 FY 17

FY 17 operating income


Increase/decrease in sales

Production cost


1,150 800

-23 -139

-188

100 90


FY 2018 Results

Results for local subsidiaries (China)

(-17%)

(-8%)

(-8%)

(-11%)

(+10%)

China Total ： -12％

North China 21%

East China 40%

South China 23%

West China 12%

Hong Kong 5%

YoY

Sanitary Ware -11%

Washlet -7%

Faucet Fixtures -20%

Sales decreased in areas other than Hong Kong. Sales of major products decreased.

Others 12% (FY18) 14％ (FY17）

Washlet 27% (FY18) 25％ (FY17）

Faucet Fixtures 17% (FY18) 18％ (FY17）

Sanitary Ware 44% (FY18) 43% (FY17）

■Net sales growth by region ■Net sales growth by products

East China

North China

South China

West China

Hong Kong

■ Sales distribution ratio

■Product range comprising net sales


10089

2017年度 2018年度

台湾42%

ベトナム33%

その他25%

11

FY 2018 Results

Taiwan FY17 FY18 YoY

Net Sales 3,606 3,438 -168 （-5％）

Operating Profit 865 796 -69 （-8％）


Exchange rates 4Q, FY17 4Q, FY18

1 Taiwan dollars ¥3.75 ¥3.66

Unit: Million Taiwan dollars

Vietnam FY17 FY18 YoY

Net Sales (For external customers)

3,369 [2,140]

3,671 [2,056]

（+9%） (-4％）

Operating Profit 743 522 -221 （-30%)


Unit: Billion Dong


1 dong ¥0.00493 ¥0.00482

Taiwan sales and profits decreased due to the number of deliveries. Vietnam suffered a decline in both sales and profits due to the stagnation of housing market and an increase in

depreciation accompanying the start of the operation of a new plant.

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%

■ Washlet: Growth in sales volume


FY 17 FY 18


100 133

2017年度 2018年度

12

FY 2018 Results

Financial Results Unit: $ million

Results for local subsidiaries (Americas)


Unit: $ million

2016年度営業利益

販管費増減


売上増減／商品構成差

製造コスト

Although sales increased due to Washlet product sales growth, profits decreased due to an increase in manufacturing costs and selling, general and administrative expenses of sanitary ware products.

FY17 FY18 YoY

Net Sales 274 283 +9 (+3%)

Operating Profit 29 24 -5 (-19%)



Exchange rates

4Q, FY17 4Q, FY18

1$ ¥113.0 ¥112.9





Increase/decrease in sales

Production cost

Strengthening investment sales FY 18 FY 17

29

+5

24

-1

-9

102


FY 2018 Results

Results for local subsidiaries (Americas)

(+8%) (+0%) (+2%)

(+2%)

West 44%

Northeast 24%

Central & Southeast

22%

Canada 10%

Americas Total：+3％ YoY

Sanitary Ware -3%

Washlet +16%

Faucet Fixtures +6%

Sales for sanitary ware temporarily decreased due to product changeover while sales for Washlet products delivered double-digit growth due to strong sales of Neorest.

Sanitary Ware 52% (FY18) 56％ (FY17）

Washlet 24% (FY18) 21％ (FY17）

Others 7% (FY18) 6％ (FY17） Faucet Fixtures

17% (FY18) 17％ (FY17）

■ Net sales growth by region

West

Canada

Northeast Central & Southeast

■Net sales growth by products

■Product range comprising net sales

■ Sales distribution ratio


FY 2018 Results

Financial Results Unit: € million

FY17 FY18 YoY

Net Sales 26 26 -0

(-3%)

Operating Profit -6 -7 -1

Results for local subsidiaries (Europe)


1€ ¥133.0 ¥128.8

Decreased sales and profit. We will gain broader distribution on an ongoing basis

and sell our products to famous buildings and locations.

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

■New Washlet products for Europe are selling well.

中高級

Sales of slim-line Washlet products, which are preferred in European markets, have continuously been robust since the launch. The products were highly rated at ISH held in Germany in March 2019.

WASHLET RX （ Released in July 2018 ）

WASHLET SX （ Released in November 2018 ）


Advanced Ceramic Business

Green Building Materials Business

New Domain Business

FY17 FY18 YoY

Influence of exchange rate


Net Sales 20.0 22.1 +2.1 (+11%)

-0.2 +2.3 (+12%)

Operating Profit 1.7 1.2 -0.5 (-27%)

-0.0 -0.5 (-26%)


Revision plan as

of 2018 3Q

Difference from the revision plan

of 2018 3Q

22.6 -0.5 (-2%)

1.2 +0.0 (+7%)

5% +1pt

FY17 FY18 YoY



Net Sales 8.4 8.0 -0.4 (-4%)

-0.4 (-4%)

Operating Profit -0.4 -0.3 +0.1 +0.1

Revision plan as

of 2018 3Q


8.4 -0.4 (-5%)

-0.2 -0.1

In ceramic business, sales increased, but profits decreased due to worsening productivity.

FY 2018 Results

Unit: Y billion

Unit: Y billion



２．Topics


Contents


Launching the TOTO brand globally.

Topics

TOTO booth

Participation in international exhibitions ‘Life Anew’—Update and enrich people’s daily lives around the world

■ISH2019

Period: March 11–15, 2019 Location: Frankfurt, Germany Number of visitors: around 200,000 (to ISH as a whole)

Fruits of clean technologies

Neorest

■ International CES 2019

NEOREST NX and FLOTATION TUB were evaluated as products with outstanding design and technology and named CES Innovation Award Honorees in the consumer electronics products category.

NEOREST NX FLOTATION TUB

Period: Jan. 8 (Tue.) to Jan. 11 (Fri.), 2019 Venue: Las Vegas Convention Center (LVCC) Las Vegas, United States


Topics

Evaluation from outside company

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

‘Commercialization of Micro-wave Sensor for Toilet Seats’ won ‘Radio Achievement Award’

TOTO was selected as an index member of ‘FTSE4Good Index Series,’

a global index for Social Responsible Investment, for three straight years (announced in July 2018).

Selected as one of the stocks in the Dow Jones Sustainability World Index (DJSI World), for the seventh time.

‘iF DESIGN AWARD 2019’ *NEOREST AH/RH, etc.

＜three consecutive years ＞

Received internationally recognized design awards

‘reddot award 2019’ *Water faucet, etc.


Topics

WASHLET – Global Strategy

TOTO has collaborated with Narita International Airport to establish state-of-the-art bathroom facilities to offer hospitality using IoT for overseas visitors to experience Japan's sophisticated toilet culture represented by Washlet with seats featuring warm water shower, the first toilet experience after their entry to Japan.

-Terminal 1 Building, Narita International Airport First Floor, South Wing arrival lobby -Opened on Wednesday, April 3, 2019

■Washlet with a remote-control tablet device (tentative introduction)

Tentative introduction of remote-control tablet devices to operate Washlet with seats featuring warm water shower, supporting five languages: Japanese, English, Simplified Chinese, Traditional Chinese and Korean.

■Display of occupancy status of toilet Using sensors attached to the toilet booth doors and analysis technology to sensor the line status, the toilet occupancy status can be ascertained. The vacancy or occupation status as well as the line status are displayed on the LCD panel installed on both sides of the toilet entrance in five languages (English, Simplified Chinese, Traditional Chinese, Korean and Japanese) via the cloud.

【Major features

experience TOTO

Transmit a message: “Japan’s sophisticated toilet culture = TOTO” throughout the world.

Opened “experience TOTO,” toilet facilities to offer hospitality (omotenashi in Japanese) to travelers, at Narita Airport



２．Topics


Contents


FY 2019 Plan

New business domains: Decreased sales and increased profits

◆Both remodeling and new housing Increased sales and profits.

◆ Aiming to increase sales and profits in all areas ◆ We continuously aim to expand sales of Washlet products.

We expect to achieve an increase in sales and profits with record high sales.

Global housing equipment business (Japan): Increased sales and decreased profits

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

◆ In the Advanced Ceramic business, we expect a decrease in sales due to temporary stagnation in the semiconductor market but an increase in profits due to improved productivity.


Profit and Loss

■Exchange rates

FY 2019 Plan

20

FY18 FY19 Plan

YoY Influence of exchange

rate

Currency-neutral basis 1st Half 2nd Half Total

Net Sales 586.0 293.9 321.1 615.0 +29.0 (+5%)

-2.8 +31.8 (+5%)


40.1 [6.9%]

16.3 [5.5%]

26.7 [8.3%]

43.0 [7.0%]

+2.9 (+7%)

-0.5 +3.4 (+8%)

Recurring Profit

43.1 17.0 27.0 44.0 +0.9 (+2%)

-1.1 +2.0 (+5%)

Profit attributable to owners of parent 32.3 12.4 19.3 31.7

-0.6 (-2%)

-1.0 +0.4 (+1%)

ROA 7.1% 7.3%

ROE 9.6% 9.2%

Unit: Y billion

FY18 FY19

1Q 2Q 3Q 4Q Plan

1 $ ¥108.2 ¥109.1 ¥111.4 ¥112.9 ¥110.0

1 CNY ¥17.0 ¥17.1 ¥16.4 ¥16.3 ¥16.0

1 € ¥133.1 ¥130.0 ¥129.6 ¥128.8 ¥130.0


< Net Sales > FY18 FY19 Plan



Domestic H.E. 425.1 210.0 226.1 436.1 +11.0 (+3%)

+11.0 (+3%)

Overseas H.E. 130.4 69.9 78.7 148.6 +18.2 (+14%)

-2.7 +20.9 (+16%)

New Domain 30.2 13.9 16.1 30.0 -0.2 (-1%)

-0.0 -0.3 (-1%)

Others 0.2 0.1 0.2 0.3 +0.1 +0.1

Total 586.0 293.9 321.1 615.0 +29.0 (+5%)

-2.8 +31.8 (+5%)

21

FY 2019 Plan


< Operating Profit > FY18

FY19 Plan YoY Influence of

exchange rate Currency-

neutral basis 1st Half 2nd Half Total

Domestic H.E. 24.4 9.2 13.5 22.7 -1.7 (-7%)

-1.7 (-7%)

Overseas H.E. 18.3 8.5 13.9 22.4 +4.1 (+22%)

-0.5 +4.6 (+25%)

New Domain 0.9 0.4 1.3 1.7 +0.8 (+75%)

-0.0 +0.8 (+76%)

Others -3.5 -1.8 -2.0 -3.8 -0.3 -0.3

Total 40.1 16.3 26.7 43.0 +2.9 (+7%)

-0.5 +3.4 (+8%)

Unit: Y billion


FY 2019 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


Cause of increase/decrease of operating profit （Breakdown of -1.7 billion yen in previous year's difference）


Increase/decrease in sales and product range differences

Cost reduction

Influence of raw materials

increase/ decrease in labor costs

Amortization

development of Production investment


Others FY19 operating profit

Unit: Y billion

24.4

+6.0 -2.9

-1.1

-0.6 -2.4 -2.2

-1.0

22.7

+2.5

- Bonus, increase in base pay - Treatment improvement, etc. - Effects of changes in steel sheet prices



Performance by demand

FY18 FY19 Plan YoY

Net Sales 290.5 297.5 +7.0 （+2%）



Both remodeling and new housing Increased sales and profits.

FY18 FY19 Plan YoY

Net Sales 134.6 138.6 +4.0 （+3%）



FY 2019 Plan

< Remodeling>

<New Housing>

Unit: Y billion


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

FY 2019 Plan

For both the remodeling and new housing segments, sales are expected to increase year-on-year. We factored in the effect of the buying rush in anticipation of the consumption tax hike as +3% for remodeling and +2% for new housing for the first half of FY2019, as well as the reactionary decline as -2% for remodeling

and -1% for new housing for the second half of FY2019.

Remodeling New Housing

2nd Half

Total

+1％

135.7

142.0 （+5％）

Market growth

FY2019

FY2018

+3％

Impact of consumption tax increase

+1％ 1st Half

154.8 155.5

（+0％）

FY2019 FY2018

▲2％ +1％

+1％

290.5

297.5 （+2％）

FY2019 FY2018

+0％ +1％

合計

Demand +5%

Net sales +7%

＊Due to effect of tax increases +2％

合計

Demand ▲4%

Net sales ▲1%

合計

Demand +0%

Net sales +3%

+1％

2nd Half

Total

1st Half



Unit: Y billion

Market growth

Market growth

Measures including the launch of new

products


products


products

＊Due to effect of tax increases -1％

＊Due to effect of tax increases +1％


Net Sales Operating Profit

FY18 FY19 Plan YoY FY18 FY19 Plan YoY

Sanitary Ware 90.0 92.3 +2.3

（+3%） 7.3 6.9

-0.4 （-5%）

Washlet 95.9 97.1 +1.2

（+1%） 13.1 11.9

-1.2 （-9%）

Faucet Fixtures 90.1 93.2 +3.1

（+3%） 4.4 4.9

+0.5 （+11%）

Bathrooms 97.4 101.2 +3.8

（+4%） 1.4 0.6

-0.8 （-57%）

Modular Kitchens/Basins

43.4 44.1 +0.7

（+2%） -0.9 -0.5 +0.4

Others 8.1 8.2 +0.1

（+1%） -0.8 -0.9 -0.1

Total 425.1 436.1 +11.0

（+3%） 24.4 22.7

-1.7 （-7%）


Sales per Products

Sales increase for all products. Sanitaryware, washlet, bathroom plans to decrease profit.

FY 2019 Plan

Unit: Y billion


Plan to increase sales and profit in all regions.

26

FY 2019 Plan


<Operating Profit> FY18 FY19 Plan YoY Currency-neutral basis

China 12.3 14.5 +2.2

(+17%)

+2.7 (+22%)

Asian & Oceanian Region

5.4 6.2 +0.8

(+14%)

+0.7 (+13％)

Americas 1.6 2.3 +0.7

(+45%)

+0.7 (+46%)

Europe -1.1 -0.6 +0.5 +0.4

Total 18.3 22.4 +4.1

( +22%)

+4.6 ( +25%)

< Net Sales > FY18 FY19 Plan YoY Currency-neutral basis

China 63.5 71.0 +7.5

(+12%) +10.3 (+16%)

Asian & Oceanian Region

31.8 36.4 +4.6

(+15%) +4.4

(+14%)

Americas 31.3 35.9 +4.6

(+15%) +4.7

(+15%)

Europe 3.7 5.1 +1.4

(+36%) +1.3

(+37%)

Total 130.4 148.6 +18.2 (+14%)

+20.9 (+16%)

Unit: Y billion


Profit and Loss Unit: CNY million

Plan for local subsidiaries (China)

FY18 FY19 Plan YoY

Net Sales 3,782 4,434 +652 (+17%)

Operating Profit

800 992 +192 (+24%)

Operating Margin

21% 22% +1pt

Exchange rates FY19 Plan

1CNY ¥16.0

Product supply will be stable through new product launches and other factors, and sales and profits are projected to increase.

FY 2019 Plan

Sales the first quarter (January through March) is down 9% on year-on-year basis.

100

128

2017年度 2018年度

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

Unit: CNY million




製造コスト

販管費増減


FY18 operating income


Increase/ decrease in sales


Production cost FY 19 (Plan) FY 18

800

-108

992

+331 -31



100120

2018年度 2019年度

■Washlet: Growth in sales volume

FY 19(Plan) FY 18

台湾37%

ベトナム32%

その他31%

28

Plan for local subsidiaries (Asian & Oceanian Region)

Taiwan FY18 FY19 Plan YoY

Net Sales 3,438 3,672 +234 （+7％）

Operating Profit

796 802 +6 （+1％）

Operating Margin

23% 22% -1pt

Vietnam FY18 FY19 Plan YoY

Net Sales [For external customers]

3,671 [2,056]

4,249 [2,386]

(+16%) [+16％]

Operating Profit

522 581 +59 （+11％）

Operating Margin

14% 14% -0pt

Taiwan: We expect increases in sales and profits with an increase in properties delivered due to the recovery of construction starts.

Vietnam: We expect increases in sales and profits by proactively promoting new products using showrooms.

FY 2019 Plan


Unit: Million Taiwan dollars

Unit: Billion Dong

Net sales breakdown by area Taiwan 37% Vietnam 32% Others 31%

Sales the first quarter (January through March) grew by 14% on year-on-year basis.

Sales for external customers the first quarter (January through March) grew by 1% on year-on-year basis.



1 Taiwan dollars ¥3.70


1 dong ¥0.00485


100146

2018年度 2019年度

29

Profit and Loss Unit: $ million

Plan for local subsidiaries (Americas)

We expect increases in sales and profits due to a significant growth in sales of Washlet products and the recovery of productivity.

FY 2019 Plan

FY18 FY19 Plan YoY

Net Sales 283 326 +43

(+15%)

Operating Profit

24 31 +7

(+28%)

Operating Margin

9% 9% +0pt

Exchange rates FY19Plan

1$ ¥110.０


Unit: $ million


販管費増減



製造コスト


Washlet: Growth in sales volume



Increase/ decrease in sales


Production cost FY 19 (Plan) FY 18



24

+18

31

-18 +7

123


Profit and Loss Unit: € million

FY18 FY19 Plan YoY

Net Sales 26 36 +10 (+41%)

Operating Profit -7 -5 +2

Plan for local subsidiaries (Europe)

Plans to increase sales and reduce deficits.

FY 2019 Plan


1€ ¥130.0



■Bolster sales in Germany

WASHLET RX WASHLET SX

- Washlet equipped with “EWATER +”

- High-design faucets, etc.

■Launch new products sequentially

■Expand networks of plumbers (plumbing shops) in Germany

Seminars for Washlet

New product promotions

Demand creation measures

Bring community-based influential plumbers aboard

New products in FY2018 New products in FY2019


Advanced Ceramic Business

Green Building Materials Business

New Domain Business

FY18 FY19 Plan YoY



Net Sales 22.1 21.3 -0.8 (-4%)

-0.0 -0.8 (-3%)

Operating Profit 1.2 1.6 +0.4 (+30%)

-0.0 +0.4 (+30%)

Operating Margin 6% 8% +2pt

FY18 FY19 Plan YoY



Net Sales 8.0 8.6 +0.6 (+8%)

+0.6 (+8%)

Operating Profit -0.3 0.0 +0.3 +0.3

Advanced ceramic business plans to decrease sales but increase profits

due to temporary stagnation in semiconductor market.

FY 2019 Plan

Unit: Y billion

Unit: Y billion


Price revision implemented in Japan

FY 2019 Plan

■Reason for price revision Raw material prices, distribution costs, fuel prices, labor costs, etc. have continued to rise.

We have tried to reduce costs by improving productivity and streamlining.

However, it was determined that it was difficult to absorb only by corporate effort.

■Implementation period : From the order received on Oct.1, 2019

■Main products and revision rates Main products Revision rates

Sanitary Ware About 6 to 7%

Washlet About 4 to 6%

Faucet Fixtures About 5 to 6%

Prefabricated Bathroom About 5 to 7%

Bathroom Vanity About 4 to 6%

Others About 5 to 6%


Profit and Loss

FY 2019 Plan(After price revision)

Expecting operating profit +2 billion yen by this price revision.

FY18 FY19 Plan



Net Sales 586.0 293.9 324.1 618.0 +32.0 (+5%)

-2.8 +34.8 (+6%)


40.1 [6.9%]

16.3 [5.5%]

28.7 [8.9%]

45.0 [7.3%]

+4.9 (+12%)

-0.5 +5.4 (+13%)

Recurring Profit

43.1 17.0 29.0 46.0 +2.9 (+7%)

-1.1 ＋4.0 (+9%)

Profit attributable to owners of parent 32.3 12.4 20.6 33.0 +0.7

(+2%) -1.0 +1.7

(+5%)

ROA 7.1% 7.7%

ROE 9.6% 9.6%

43.0 45.0

+3.0 -1.0

Before After

■Profit of price revision impact

impact Cost

Unit: Y billion


< Net Sales > FY18 FY19 Plan



Domestic H.E. 425.1 210.0 229.1 439.1 +14.0 (+3%)

+14.0 (+3%)

Overseas H.E. 130.4 69.9 78.7 148.6 +18.2 (+14%)

-2.7 +20.9 (+16%)

New Domain 30.2 13.9 16.1 30.0 -0.2 (-1%)

-0.0 -0.3 (-1%)

Others 0.2 0.1 0.2 0.3 +0.1 +0.1

Total 586.0 293.9 324.1 618.0 +32.0 (+5%)

-2.8 +34.8 (+6%)

34

FY 2019 Plan(After price revision)


< Operating Profit > FY18

FY19 Plan YoY Influence of

exchange rate Currency-

neutral basis 1st Half 2nd Half Total

Domestic H.E. 24.4 9.2 15.5 24.7 +0.3 (+1%)

+0.3 (+1%)

Overseas H.E. 18.3 8.5 13.9 22.4 +4.1 (+22%)

-0.5 +4.6 (+25%)

New Domain 0.9 0.4 1.3 1.7 +0.8 (+75%)

-0.0 +0.8 (+76%)

Others -3.5 -1.8 -2.0 -3.8 -0.3 -0.3

Total 40.1 16.3 28.7 45.0 +4.9 (+12%)

-0.5 +5.4 (+13%)

Unit: Y billion


FY2017 FY2018 FY2019 Plan

Capital expenditure 38.1 billion yen 57.3 billion yen 43.6 billion yen

Depreciation expenses 21.3 billion yen 23.3 billion yen 25.9 billion yen

R&D expenses 20.5 billion yen 21.1 billion yen 22.7 billion yen

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

FY 2019 Plan

■Breakdown of capital investment (FY2019)


-New product development -Production equipment related etc.

Approximately 30.0 billion yen


・New plant related ・Production equipment related etc.

Approximately 10.0 billion yen

New Domain Business ・Ceramic expansion etc. Approximately 4.0 billion yen


Dividend Plan

The dividend for fiscal 2019 is 90 yen.

FY17 FY18 FY19 Plan

1st Half ¥36.0 ¥45.0 ¥45.0

2nd Half ¥36.0 ¥45.0 ¥45.0

Full Year ¥72.0 ¥90.0 ¥90.0

Dividend payment

Ratio 33.1％ 47.1％ 46.2％

FY 2019 Plan


ＥＳＧ

Reviewing TOTO Global Environmental Vision

Provide Cleanliness and Comfort for Life

Respect the Environment

Build Relationships That Enrich Life

＜Mission＞

We will aim to further enhance our corporate value by seeking to integrate CSR into corporate management.

＜TOTO Global Environmental Vision＞

Environment

Relationships

Cleanliness and Comfort

Pursue ease of use for everyone

Undertake initiatives to fight global warming and coexist with the earth.

Aim for sustainable development together with local communities.

Offer cultural support and contribute to society for

the next generation.

Create and share joy in

work together.

Realize cleanliness and comfort throughout the world.

Protect our limited water resources and connect

with the future.

Build deep, long-lasting relationships

with customers.


Activities based on three materialities

ＥＳＧ

3年 8ヵ月 5年 7ヵ月 6年11ヵ月 18年1ヵ月 4年 6ヵ月

1980年6月発売開始

1998年7月 1000万台突破

2005年6月 2000万台突破

2011年1月 3000万台突破

(万台)

(年度)

Mar. 2019

50 million units

1987年11月 100万台突破

2015年7月 4000万台突破

0

1000

2000

3000

4000

5000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

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2010

2011

2012

2013

2014

2015

2016

2017

2018

Materiality Cleanliness and Comfort

Activity Global development of sophisticated and comfortable toilets

■Washlet

Materiality Relationships

Activity Improvement of customer satisfaction

■After-service customer satisfaction (Japan) ■Shipment ratio of water-saving toilets (Water per flush of 4.8 L or less) (Global)

Materiality Environment

Activity Social contribution activities rooted in communities

Materiality Environment

Activity Popularization of water-saving products

We support activities related to water environment conservation to effectively use important water resources and foster the sustainable growth of society for the future. Since its establishment in 2005, the TOTO Water Environment Fund has provided over 300 million yen in grants to a total of 259 organizations 14 times. This fund is broadening its efforts both in the 40 prefectures throughout Japan as well as 15 different countries and regions.

■TOTO Water Environment Fund

43% 48%

58% 63% 68%

73% 77% 79%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016 2017 2018

89% 89% 90% 91% 90% 91% 91%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016 2017 2018


Integrated Report

ＥＳＧ

We have created new reports as a new tool by integrating financial and non-financial information from existing corporate reports. The integrated reports have been issued since 2018.

■Points of publication content -Corporate attitude passed down since the company’s founding - History of TOTO Group - Medium- and long-term corporate management strategy - Topics of business activities - Efforts to further improve corporate value for the future

TOTO Integrated Report https://jp.toto.com/en/company/profile/library/index.htm

Integrated Report 2019 Scheduled for July 2019


About non-continuation (abolition) of takeover defense measures

■Reason for discontinuation (abolishment) We have carefully considered the possible effects of continuing the takeover defense measures, etc. while scrutinizing the following aspects; ●Opinions of shareholders including domestic and overseas institutional investors ●Recent trends on Takeover Defense Measures ●Changes in the business environment surrounding the Company

The “Policy on Response to Large-Scale Purchases of Company Shares (Takeover Defense Measures),” introduced in 2006, will be abolished on the expiration date in June 2019.

We will continue to improve corporate value in the future.

Topic

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

estimates and plans as of April 26, 2019.

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.

Documents

Fiscal Year 2018 Results - Toto Ltd.This presentation material contains forward-looking statements based on assumptions, estimates and plans as of April 26, 2019