This notice has been translated from the original …...20％(FY15） Faucet Fixtures 17％(FY15） 40%(FY16) 41%(FY15） YoY Sanitary Ware +3% Washlet +36% Faucet Fixtures +9% FY

★ ★

Fiscal Year 2016 Results

April 28, 2017

TOTO

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

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

２．Topics

Contents １． Financial Result for FY 2016

３． Financial Result for FY 2016

1

Summary of Consolidated Financial Results for 2016

Highlights

Increased sales and profits. All-time high in net sales and operating profit.

New business domains: Increased sales and profits

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

◆Remodeling segments: net sales and profits remained at the same level.

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

◆New housing segments: Increased sales and profits.

◆ Washlet sales have continued to grow rapidly.

◆ Increased sales and profits, contributed to by the advanced ceramics business.

2

FY15 FY16

YoY Influence of

exchange rete Currency-

neutral basis

Net Sales 5,678 5,738 +60

(+1%) - 87

+147 (+3%)

Operating Profit [Operating Margin]

461 [8.1%]

485 [8.5%]

+24 (+5%)

- 17 +41

(+9%)

Recurring Profit

467 493 +26

(+6%) -7

＋33 (+7%)

Profit attributable to owners of parent 357 338

- 19 (-5%)

- 2 - 17 (-5%)

ROA 8.8% 8.9%

ROE 13.1% 11.8%

Revised Plan

vs. Plan

5,700 +38

480 [8.4%]

+5

475 +18

335 +3 ※

FY15 (End of Dec.)

FY16 (End of Dec.)

FY16 Revised Plan

1 $ 120.6円 116.5円 100.0円

1 CNY 18.4円 16.8円 15.0円

1 € 131.8円 122.7円 110.0円

Financial results Unit: Y 100 million

FY 2016 Results

■Exchange rates

※ Extraordinary income or loss (cumulative) for the second quarter of FY2015: An increase of 4.5 billion yen Details: Profit on the sale of welfare sites and others

3

< Net Sales > FY15 FY16 YoY Influence of exchange rete

Currency-neutral basis

Domestic H.E. 4,203 4,233 +30 (+1%)

+30 (+1%)

Overseas H.E. 1,273 1,281 +8 (+1%)

- 84 +92 (+7%)

New Domain 198 220 +22 (+11%)

- 3 +25 (+13%)

Others 2 2 +0 +0

total 5,678 5,738 +60 (+1%)

- 87 +147 (+3%)

< Operating Profit > FY15 FY16 YoY Influence of exchange rete


Domestic H.E. 285 291 +6 +6

Overseas H.E. 214 233 +19 - 17 +36

New Domain 0 5 +5 - 0 +5

Others - 38 - 44 - 6 - 6

total 461 485 +24 - 17 +41

Revised Plan

vs. Plan

4,340 -107

1,147 +134

210 +10

3 - 1

5,700 +38

Revised Plan

vs. Plan

319 - 28

210 +23

-1 +6

- 48 +4

480 +5

FY 2016 Results

セグメント別業績 Sales and profit by business segment Unit: Y 100 million

4

285 291

+18

+70 - 33

- 17

- 19 - 27

- 16

+30

FY15 operating profit

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 FY16 operating profit

- Showroom costs, etc.

- Changes in treatment with human resource system reforms - Wage increases, bonuses, etc.

- Effect of changes in copper price - Effect of changes in the exchange rate, etc.

- Global strategy expenses - Tax based on business size, etc.

FY 2016 Results

Housing Equipment Business（Japan）

Cause of increase/decrease of operating profit (YoY) Unit: ¥ 100 million

FY15 FY16 YoY

Net Sales 2,844 2,835 - 0%

Operating Profit 241 242 +1

Operating Margin 8% 9% +1pt

FY15 FY16 YoY

Net Sales 1,358 1,397 +3%



5

Remodeling segments: net sales and profits remained at the same level. New housing segments: Increased sales and profits.

Revised Plan Vs. Plan

2,920 - 85

270 -28

9% - 0pt


1,420 - 23

49 +0

4% +0pt


Performance by demand Unit: ¥ 100 million

FY 2016 Results

< Remodeling>

<New Housing>

103% （＋3％）

104% （＋1％）

（＋４％）

（-1％）

97% （-3％）

99% （+2％）

-6Pt （-10 billion yen）

＋1Pt （+1.5 billion yen） -5Pt -8.5 billion yen

6

FY 2016 Results


＜Remodeling segment: Comparison between the plan and the results of net sales for the second half of FY2016＞

Plan for the second half of FY2016（YoY）

Results of the second half of FY2016

（YoY）

The second half of FY2015

151.4 billion yen


151.4 billion yen


158.0 billion yen


149.4 billion yen

Market growth （including the effect of the housing stock circulation support business)

Measures including the launch of new products

Market growth Measures including the launch of new products

7

Net Sales Operating Profit

FY15 FY16 YoY FY15 FY16 YoY

Sanitary Ware 865 864 - 0% 94 83 - 12

Washlet 910 931 +2% 139 129 -10

Faucet Fixtures 949 932 - 2% 49 76 +27

Bathrooms 933 960 +3% 31 32 +1

Modular Kitchens/Basins 448 454 +2% -26 -24 +2

Others 96 90 - 6% - 2 - 6 - 3

Total 4,203 4,233 +1% 285 291 +6

Revised Plan

Net Sales Operating

Profit

881 87

958 140

955 80

969 35

486 - 18

91 - 4

4,340 319


Sales per Products Unit: ¥ 100 million

※ The calculation method has been partially changed to bring the profits earned in individual business segments closer to actual conditions.

FY 2016 Results

Currency Net Sales Net Sales


China CNY million 3,406 3,776 +11％ 824 941 +117 Asian & Oceanian

Region $ million 253 262 +4％ 44 50 +6

Americas $ million 251 261 +4％ 14 21 +7

Europe € million 29 30 +3％ - 5 - 6 - 1



China 625 632 +1％ 151 157 +6 Asian & Oceanian

Region 305 306 +0％ 53 59 +6

Americas 303 304 +0％ 17 24 +7

Europe 39 37 - 4％ - 7 - 8 - 1

Total 1,273 1,281 +1% 214 233 +19

Revised Plan

Net Sales Operating

Profit

562 144

277 57

271 16

37 - 7

1,147 210

Revised Plan

Net Sales Operating

Profit

3,746 957

277 57

271 16

33 - 6

※

8

FY 2016 Results

Housing Equipment Business（Overseas） Unit: ¥ 100 million

In Local Currency

※ the influence of the exchange rate; Net sales; a decrease of 8.4 billion yen, Operating income; a decrease of 1.7 billion yen.

Exchange rates FY15

(End of Dec.) FY16

(End of Dec.) FY16

Revised Plan

1 $ 120.6円 116.5円 100.0円

1 CNY 18.4円 16.8円 15.0円

1 € 131.8円 122.7円 110.0円

※

9

886

▲66

979

+76

FY15 FY16 YoY

Net Sales 3,406 3,776 +11%




3,746 +30

975 +4

26% - 0pt

+83 Washlets: Growth in sales volume

Exchange rates FY15 FY16 Revised plan

1CNY ¥18.4 ¥16.8 ¥15.0

100

2015年度 2016年度

147

FY 2016 Results

Financial Results Unit: CNY million

Results for local subsidiaries (China) * Base that does not include consolidated adjustment and common expense allocations

Cause of increase/decrease of operating profit

Unit: CNY million

FY 15 operating income

FY 16 operating income

Increase/decrease in sales

Production cost


（with FY15 as 100 ）

FY 16 FY 15

Significant increase in sales and profits compared to the previous year.

※ All-time high in net sales and operating profit.

(＋13%)

10

(＋12%)

(＋14%)

(+6%)

(＋5%)

North China 21%

East China 42%

South China 20%

West China 13%

Hong Kong 4%

Others 18%(FY16) 22％(FY15）

Washlet 25%(FY16) 20％(FY15）

Faucet Fixtures 17%(FY16) 17％(FY15）

Sanitary Ware 40%(FY16) 41%(FY15）

YoY

Sanitary Ware +3%

Washlet +36%

Faucet Fixtures +9%

FY 2016 Results

Results for local subsidiaries (China)

■Net sales growth by region

China Total ：+11％

East China

North China

South China

West China

Hong Kong

■Product range comprising net sales

■Net sales growth by produccts

■ Sales distribution ratio

Considerable growth in Washlet sales. Achieved double-digit growth mainly in the coastal areas.

FY15 FY16 YoY

Net Sales (For external customers)

107 (60)

129 (80)

+20% (+32％)


Operating Margin 21% 21% - 0pt

11

FY15 FY16 YoY

Net Sales 4,139 3,734 - 10％

Operating Profit 1,077 916 -161


100%

Taiwan 44% Vietnam 31% Others 25%

100

2015年度 2016年度

84

Vietnam achieved a significant increase in sales and profits. All-time high in net sales and operating profit.

0% 50%

FY 2016 Results

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

Net sales breakdown by area

Taiwan Unit: Million Taiwan dollars

Vietnam Unit: $ million

Exchange rates FY15 FY16

1 Taiwan dollars ¥3.62 ¥3.61

Exchange rates FY15 FY16

1$ ¥120.6 ¥116.5

■ Washlets: Growth in sales volume


FY 16 FY 15

Decreased sales and profits in Taiwan, while Vietnam achieved a significant increase in sales and profits.

A large decrease in the number

of new housing starts;

down 18% YoY.

12

18

+7 ＋2

30

FY15 FY16 YoY

Net Sales 251 261 +4%




271 -10

26 +4

10% +1pt

100

2015年度 2016年度

127

+3

FY 2016 Results

Financial Results

Results for local subsidiaries (Americas)

Unit: $ million

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

Cause of increase/decrease of operating profit

Unit: $ million

FY15 operating income




Production cost

Washlets: Growth in sales volume


FY 16 FY 15

Exchange rates FY15 FY16 Revised plan

1$ ¥120.6 ¥116.5 ¥100.0

Increased sales and profits; achieved double-digit operating margin.

※ All-time high in net sales and operating profit.

13

(+8%) (- 1%) (+7%)

(- 10%)

FY 2016 Results


■Product range comprising net sales

■Net sales growth by produccts

YoY

Sanitary Ware - 2%

Washlet +24%

Faucet Fixtures +7%

Others 6%(FY16) 6％(FY15）

Washlet 18% (FY16) 15％(FY15）

Faucet Fixtures 19%(FY16)

18%(FY15）

Sanitary Ware 57%(FY16) 61%(FY15）

■ Sales distribution ratio

Americas Tota：+4％

■ Net sales growth by region

West

Canada

Northeast Central

West 42%

Northeast 27%

Central 20%

Canada 11%

Increased sales in the Central and Western regions; Washlet sales remained strong.

FY15 FY16 YoY

Net Sales 29 30 +3%

Operating Profit - 5 - 4 +1


33 -3

- 1 - 2

14

FY 2016 Results

Financial Results

Results for local subsidiaries (Europe) •Base that does not include consolidated adjustment •and common expense allocations

Unit: € million

2010年 2015年 2016年

12(0)

41(6)

51(10)

■European hotels: Cumulative number of hotels Installing Washlets

FY10 FY15 FY16

Exchange rates

FY15 FY16 Revised Plan

1€ ¥131.8 ¥122.7 ¥110.0

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

Gradual increase in the number of Washlet selected by high-class hotels.

* Cumulative figures from the past.

15

Plan 2.5 times more than in the 2012 ratio.

100 114

133

189

246

0

50

100

150

200

250

300

YoY 130%

FY 2016 Results

Results and Plans of washlet sales in overseas

（ with FY2012 as 100 ）

FY15 FY16 FY14 FY13 FY12

16

Increased sales and profits, contributed to by the advanced ceramics business.

FY15 FY16 YoY

Influence of exchange rete


Net Sales 106 130 +24

(+23%) -3

+27 (+26%)

Operating Profit

10 12 +2 - 0 +2

Revised Plan

vs. Plan

115 +15

4 +8

Fy15 FY16 YoY



Net Sales 92 89 - 3

(-3%) - 3

(-3%)

Operating Profit

- 9 -6 +3 +3

Revised Plan

vs. Plan

95 - 6

- 5 -1

FY 2016 Results

Advanced Ceramic Business

New Domain Business

Unit: Y 100 million

Green Building Materials Business Unit: Y 100 million

２．Topics



17

Topic

TOTO booth

‘Life Anew’: Renew and make lives affluent in the world

Dispatching the TOTO brand globally

NEOREST, the outcome of TOTO's technology pursuing cleanliness

A bathtub created in pursuit of reflecting a bathing culture with neuroscience FLOATATION TUB (bathtub)

Term: March 14 to 18, 2017 Location: Frankfurt, Germany Number of visitors: 200,144 (overall ISH)

Attended the ISH2017 exhibition, one of the largest trade shows in the world (fifth entry since 2009)

18

Topic

Los Angeles

San Francisco

Expansion and functional enhancement of overseas showrooms

New York: Moved to Midtown Manhattan (Opened in September 2016)

San Francisco: Showroom where visitors can experience a Washlet (Opened in March 2017)

New York Chicago

Bangkok

Seoul Shanghai Guangzhou

Hong Kong

Singapore

Expanding showrooms and strengthening the functionality to provide an experience of a Washlet and to promote the technological capability of a toilet stool saving water

Taipei

Beijing London

Ho Chi Minh City

Ho Chi Minh City: The first directly-operated showroom in Vietnam (Opened in November 2016)

● Showrooms under the direct management of TOTO

Bangkok: Moved to a new office building area with a technical center on the premises (Opened in March 2017)

TD Sapporo

19

Topic

Strengthening the TDY collaboration in showrooms in Japan

TDY collaboration showrooms: Opened or moved 4 showrooms in 2016

12 showrooms nationwide

TY Niigata (Opened in December 2016)

TDY Kanazawa (Opened in April 2016)

TDY Osaka

TDY Hiroshima

TDY Fukuoka

TY Kumamoto (Opened in May 2016) TDY Nagoya

TDY Takamatsu (Moved and opened in July 2016)

TDY Tokyo

TY Yokohama

TY Shizuoka

TDY Kanazawa Collaboration Showroom, the first collaboration showroom in the Hokuriku region

Evaluation from outside company

Continuously selected for socially responsible investing indices abroad as the CSR initiative is highly rated

20

＜ Selected for the DJSI World for six consecutive years ＞

＜ From bronze to silver ＞ <Selected for the first time> ＜ Continuance ＞

＜ two consecutive years ＞

Topic

Received prizes

■ iF Design Gold Award 2017

A vessel basin: Washbasin (scheduled to launch in 2017)

An international design award presented in Germany. From 5,575 entries in 59 countries, 75 were selected for gold awards for the best design.

"A basin that has attained a level of art with a high-quality design and finishing achieved by cutting ornamentation to the utmost limit (extracted from the comments from a judge)

21

Topic

■Best of KBIS Best of Bath Gold

Gold Award (bathroom section)

A vessel basin: Washbasin (scheduled to launch in 2017)

NEOREST AC

Received the Best of Bath Gold

Received prizes

■ Red Dot Design Award 2017

GO series （ scheduled to launch in 2017 ）

22

Topic

Best of the Best

GR series （ scheduled to launch in 2017 ）

■Comparative Test of Toilet Seats with Bidet Function

The Beijing Consumer Association conducted a comparative test of 20 toilet seats with bidet function of 19 companies. The Association checked items such as safety, cleanliness, power consumption, self-cleaning functions, and bacterial resistance to show a product. TOTO's product came first.

Source: Results of a Comparative Test of 20 Toilet Seats with Bidet Function Announced by the Beijing Consumer Association

An international design award presented in Germany. From 5,500 entries in 54 countries, 102 were selected for the best design.

（First prize）

Evaluation from outside company

23

■Select Health & Productivity Stock Selection 2017

Topic

■Received the Minister of Economy, Trade and Industry Award of the 7th Award for Highly Valued Companies in Japan

■SUNAQUA TOTO LTD. Trade and Industry and the Tokyo Stock Exchange

■ Nadeshiko Brand

Received the Minister of Economy, Trade and Industry Award as activities of SUNAQUA TOTO LTD., which actively hires disabled people, and the low average turnover ratio are highly valued.

Established: 1993, Location: Kitakyushu, Fukuoka SUNAQUA TOTO LTD. was established with a joint investment by the Fukuoka prefectural government, the Kitakyushu local government and TOTO to provide a pleasant working environment for disabled people who have the intent and ability to work but cannot find opportunities for employment.

＜three consecutive years＞

＜three consecutive years＞

従業員の健康管理を経営的な視点で考え、

Trade and Industry and the Tokyo Stock Exchange

２．Topics



24

Overview of plan for FY 2017

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

New business domains: Increased sales and profits

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

Global housing equipment business (Japan): Increased sales

◆ Sales increased in both remodeling and new housing segments due to the effects of new products and other factors.

◆ Planning an increase in sales and profits in China. ◆ Accelerating an increase in Washlet sales.

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

25

FY16 FY17 Plan

YoY


Currency-neutral basis 1st Half 2nd Half Total

Net Sales 5,738 2,807 3,133 5,940 +202 (+4%)

-119 +321 （+6%)

Operating Profit [Operating Margin]

485 [8.5%]

205 [7.3%]

305 [9.7%]

510 [8.6%]

+25 (+5%)

-21 +46

(+9%)

Recurring Profit

493 213 317 530 +37

(+7%) -29

+66 (+13%)

Profit attributable to owners of parent 338 133 227 360

+22 (+6%)

-24 +46

(+14%)

ROA 8.9% 9.1％ +0.2pt

ROE 11.8% 11.8％ -0pt

FY 2017 Plan

Financial results Unit: Y 100 million

Planning to increase sales and profits. Aiming for an all -time high.

FY16(End of Dec.) FY17 Plan

1 $ ¥116.5 ¥105.0

1 CNY ¥16.8 ¥16.0

1 € ¥122.7 ¥117.0

■Exchange rates

26

< Net Sales > FY16 FY17 Plan

YoY Influence of exchange rete


Domestic H.E. 4,233 2,039 2,286 4,325 +92 (+2%)

+92 (+2%)

Overseas H.E. 1,281 638 702 1,340 +59 (+5%)

-105 +164 (+13%)

New Domain 220 128 144 272 +52 (+23%)

-14 +66 (+30%)

Others 2 1 1 2 +0 +0 )

Total 5,738 2,807 3,133 5,940 +202 (+4%)

-119 +321 (+6%)

< Operating Profit > FY16 FY17 Plan

YoY Influence of exchange rete


Domestic H.E. 291 106 186 292 +1 +1

Overseas H.E. 233 117 128 245 +12 -20 +32

New Domain 5 3 16 19 +14 -１ +15 Others -44 -21 -24 -45 -1 - 1

Total 485 205 305 510 +25 - 21 + 46

FY 2017 Plan

単位：億円 Sales and profit by business segment Unit: Y 100 million

Increase in sales and profits in all segments.

27

291 292

+38

+64 ▲18

+9

▲19 ▲27 ▲20

Cause of increase/decrease of operating profit; YoY

▲26

FY 2017 Plan


Unit: Y 100 million

FY16 operating profit

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 FY17 operating profit

- Plants start of operation cost

- Showroom costs, etc.

- Changes in treatment with human resource system reforms - Wage increases, bonuses, etc.

- Effect of changes in copper price - Effect of changes in the exchange rate, etc.

FY16 FY17 Plan YoY

Net Sales 2,835 2,905 +2%



28

Remodeling and New Housing; Increase in sales.

FY16 FY17 Plan YoY

Net Sales 1,397 1,419 +2%



FY 2017 Plan


Performance by demand

Unit: Y 100 million

< Remodeling>

<New Housing>

Plan for the remodeling segment

FY2017 Plan（YoY） 100%

（０％）

102% （＋2％）

FY2017 FY2016

（+2％） 283.5 billion yen

290.5 billion yen

+7 billion yen

29

290.5 billion yen

222.7 billion yen

The growth level at an annual rate of 2% +2％

▲０％

+8％

+14％

▲10％ +4％

+0％ +3％ ▲2％

▲０％ +1％ +2％ +2％ +6％

+12％

FY 2017 Plan


Market growth Measures including the launch of new products

Changes in remodeling sales (FY2013=100)

While growth rates fluctuate every year due to environmental changes, growth at an annual rate of 2% has been achieved in the long term.

Market conditions are the same as the previous year; growth by approximately 7 billion yen (2%) due to measures including the release of new products.

30



Sanitary Ware 863 890 +3% 82 84 +1

Washlet 931 953 +2% 129 129 +0

Faucet Fixtures 932 948 +2% 76 75 -1

Bathrooms 960 966 +1% 32 26 -7

Modular Kitchens/Basins 454 477 +5% -24 -15 +9

Others 90 91 +0% -5 -7 -1

Total 4,233 4,325 +2% 291 292 +1

FY 2017 Plan


Sales per Products

Unit: Y 100 million

Currency Net Sales Operating Profit


China CNY million 3,776 4,312 +14％ 941 1,060 +119

Asian & Oceanian Region $ million 262 302 +15％ 50 56 +6

Americas $ million 261 283 +8％ 21 23 +2

Europe € million 30 29 - 3％ - 6 - 7 - 1



China 632 690 +9％ 157 170 +13

Asian & Oceanian Region 306 318 +4％ 59 59 - 0

Americas 304 298 - 2％ 24 24 - 0

Europe 37 35 - 8％ - 8 - 9 - 1

Tatal 1,281 1,340 +5% 233 245 +12

31

FY 2017 Plan

Housing Equipment Business（Overseas） Unit: Y 100 million

In Local Currency

FY16(End of Dec.) FY17 Plan

1 $ ¥116.5 ¥105.0

1 CNY ¥16.8 ¥16.0

1 € ¥122.7 ¥117.0

■Exchange rates

100 114

133

189

246

350

0

50

100

150

200

250

300

350

400

2012年度 2013年度 2014年度 2015年度 2016年度 2017度

32

YoY +40%

FY 2017 Plan

Results and Plans of Washlet sales in overseas

（ with FY2012 as 100 ）

FY12 FY13 FY14 FY15 FY16 FY17 (Plan)

Accelerating a sales increase at 40% compared to the previous year to propel an increase in sales and profits in each region

33

Financial Plan

979

▲93

1,116

+75

FY16 FY17 Plan YoY

Net Sales 3,776 4,312 +14%

Operating Profit 979 1,116 +137


+155

100

2016年度 2017年度

146

FY 2017 Plan

Results for local subsidiaries (China) * Base that does not include consolidated adjustment and common expense allocations

Unit: CNY million

Exchange rates FY16 FY17 Plan

1CNY ¥16.8 ¥16.0

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

Unit: CNY million （with FY16 as 100 ）





Production cost FY 17 (Plan) FY 16

Aiming for continuous growth by putting new products differentiated from other companies' products into the market

Sales for the first quarter (January to March) grew by 18% year-on-year.

34

FY16 FY17 Plan YoY

Net Sales 3,734 3,689 - 1％

Operating Profit 916 781 - 135

Operating Margin 25% 21% - 4pt 100

2016年度 2017年度

126

FY16 FY17 Plan YoY

Net Sales (For external customers)

129 (80)

148 (98)

+14% (+23％)



FY 2017 Plan

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

Taiwan Unit: Million Taiwan dollars

FY 17 (Plan) FY 16

Vietnam Unit: $ million


1 Taiwan dollars ¥3.61 ¥3.50


1$ ¥116.5 ¥105.0


Washlets: Growth in sales volume

Sales for the first quarter (January to March) down by -4% year-on-year.


Aiming at sales exceeding ten billion yen following China, the U.S. and Taiwan by utilizing showrooms under direct management and other means

Aiming for a business structure not affected by new housing starts by promoting the replacement of the Washlet.

35

30

+14 - 0

31

- 12

100

2016年度 2017年度

126

FY16 FY17 Plan YoY

Net Sales 261 283 +8%



FY 2017 Plan

Financial Plan


Unit: $ million

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


1$ ¥116.5 ¥105.0

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

（with FY16 as 100 ） Unit: $ million

FY 17 (Plan) FY 16





Production cost

Planning an increase in sales and profits while investments are made for further growth.


2015年度 2016年度 2017年度

FY16 FY17 Plan YoY

Net Sales 30 29 - 3%

Operating Profit - 4 - 7 - 3

36

41(6)

55(10) 70(14)

FY 2017 Plan

Financial Plan

Results for local subsidiaries (Europe) •Base that does not include consolidated adjustment •and common expense allocations

Unit: € million


1€ ¥122.7 ¥117.0

■European hotels: Cumulative number of hotels Installing Washlets

FY15 FY16 FY17 (Plan)

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

* Cumulative figures from the past.

■Advanced Ceramic Business; Topic

37

FY16 FY17 Plan

YoY

Net Sales 130 173 +33%

Operating Profit

12 21 +9

FY16 FY17 Plan

YoY

Net Sales 89 99 +11%

Operating Profit

- 6 - 2 +4

半導体メモリーの3次元化の進行は、 TOTOの静電チャックの需要をさらに高める。消耗部品のため取り換え需要も底堅く見込める。

FY 2017 Plan

Advanced Ceramic Business

New Domain Business Unit: Y 100 million

Green Building Materials Business

The development of three-dimensional semiconductor memory fuels a further demand for TOTO's electrostatic chucks. Steady demand for replacement can also be expected as it is a consumable part.

Planning an increase in sales and profits; expecting a considerable growth in the ceramics business.

Electrostatic chucks

An increase in demand for leading-edge devices including semiconductors, high-speed optical communications and display devices due to the emergence of an IoT society and a boom in the construction of data centers.

FY2016 FY2017 Plan

Capital expenditure 26.7 billion yen 29.0 billion yen

Depreciation expenses

19.2 billion yen 21.5 billion yen

R&D expenses 19.4 billion yen 19.6 billion yen

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

38

Name TOTO (THAILAND) CO., LTD. No. 2 Plant

Location Nongkae, Saraburi, Thailand

Investment amount

Approximately 9.3 billion yen

Production item Sanitary ware

Production capacity

Approximately 420,000 units per year

Work commencement

May 2017

Scheduled operation start

April 2019

No. 2 Plant

No. 1 Plant

TOTO (THAILAND) CO., LTD. Construction of TOTO Thailand No. 2 Plant

Embarking on market development in the Asian region experiencing remarkable growth and an increase in production capacity, focusing on the global supply chain

FY 2017 Plan

Showroom

Plants

A showroom and plants that are planned to commence operation in the current fiscal period

39

TDY Sapporo Collaboration Showroom

Scheduled to open in summer 2017

Production item Production capacity Scheduled start of operation

TOTO SANITECHNO Nakatsu Plant Sanitary ware Approx. 400,000 units per year May 2017

TOTO AQUATECHNO Kokura Plant Faucet metal fixtures October 2017

TOTO Vietnam No. 3 Plant Sanitary ware Approx. 600,000 units per year March 2018

TOTO SANITECHNO Nakatsu Plant TOTO Vietnam No. 3 Plant TOTO AQUATECHNO Kokura Plant

FY 2017 Plan

FY16 FY17 Plan

1st Half ¥ 34.0 ¥ 35.0

2nd Half ¥ 34.0 ¥ 35.0

Full Year ¥ 68.0 ¥ 70.0

Dividend payment Ratio

34.0％ 32.9％

40

FY 2017 Plan

Dividend Plan

The dividend for the entire FY 2014 is to be increased to 70 yen.

This presentation material contains forward-looking statements based on

assumptions, estimates and plans as of April 28, 2017.

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

This notice has been translated from the original …...20％(FY15） Faucet Fixtures 17％(FY15） 40%(FY16) 41%(FY15） YoY Sanitary Ware +3% Washlet +36% Faucet Fixtures +9% FY