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Copyright © TOTO LTD. All Rights Reserved. First Half Results for Fiscal Year Ending March 2026 TOTO LTD. October 31, 2025 This notice has been translated from the original notice in Japanese. In the event of any discrepancy, the original in Japanese shall prevail. Security Code: 5332
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Copyright © TOTO LTD. All Rights Reserved. 1 Demonstrate the strengths by utilizing the technologies and know-hows cultivated in the Sanitary ware business. Development of ceramics products for semiconductor and flap panel display manufacturing equipment. Introduction TOTO Business Overview New Business Domain (Advanced Ceramics Business) Japan Housing Equipment Business Sales distribution ratio 27% Sales distribution ratio 7% Sales distribution ratio 66% Bathtubs Precision ceramic components TOTO’s core business that has been built up over 100 years The core business is the Remodeling sector, which does not rely on new construction demand. We offer a wide range of products. Aiming to become an indispensable presence in each country and region. Americas, and Asia are the growth markets based mainly on WASHLET and water-saving toilets. System bathrooms Modular kitchens Bathroom vanity units Electrostatic chucks AD film WASHLET Faucet fixtures Global Housing Equipment Business International Housing Equipment Business Sanitary ware ※Sales results of FY2024 Products offered Globally Offered in Japan Offered Int l The core business and growth driver. Has the highest profitability in the housing equipment business. Wash basins Leading the world with superior quality Core Products Pursuing design and water efficiency
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Copyright © TOTO LTD. All Rights Reserved. 3 1. First Half Results for Fiscal Year Ending March 2026 (FY2025)
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Copyright © TOTO LTD. All Rights Reserved. 2 Decreased sales and profits. Japan Housing Equipment Business: Decreased sales and profits International Housing Equipment Business: Decreased sales and profits New Business Domains: Increased sales and profits Highlights Sales decreased due to decreased sales volume resulting from differences in the month when price were revised, etc. Profits decreased due to increased external procurement costs and investment in human resources. We will accelerate sales expansion of our new products, which are in strong demand and orders. In the Americas Business, sales of WASHLET increased significantly in all channels. Sales increased but profits decreased due to various growth investments and the impact of exchange rates. In the Asia Business, sales and profits increased due to strong performance in the Taiwan region and Vietnam. In the European Business, sales increased and losses decreased due to higher sales of products including WASHLET. In the Mainland China Business, sales decreased and a loss was recorded. Business restructuring is progressing as planned. Sales and profits increased due to increased sales of electrostatic chucks accompanying the booming semiconductor-related market.
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Copyright © TOTO LTD. All Rights Reserved. 2024 January to March 2024 April to June 2024 July to September 2024 October to December 2025 January to March 2025 April to June 2025 July to September 1 $ ¥148.6 ¥155.9 ¥149.7 ¥152.4 ¥152.6 ¥144.6 ¥147.5 1 CNY ¥20.6 ¥21.5 ¥20.9 ¥21.2 ¥20.9 ¥20.0 ¥20.6 1 € ¥161.3 ¥167.9 ¥164.3 ¥162.6 ¥160.6 ¥163.8 ¥172.3 1 TWD ¥4.7 ¥4.8 ¥4.6 ¥4.7 ¥4.6 ¥4.7 ¥4.9 1 VND ¥0.0060 ¥0.0061 ¥0.0060 ¥0.0060 ¥0.0060 ¥0.0056 ¥0.0056 1 THB ¥4.2 ¥4.3 ¥4.3 ¥4.5 ¥4.5 ¥4.4 ¥4.6 1 INR ¥1.8 ¥1.9 ¥1.8 ¥1.8 ¥1.8 ¥1.7 ¥1.7 3 Decreased sales and profits ※1 Financial results Unit: Y billion FY24 FY25 YoY plan vs.planInfluence of Currency- 1H 1H exchange rate neutral basis Net Sales 355.7 349.4 -6.4 -4.2 -2.1 360.0 -10.6 (98%) (99%) (97%) Operating Profit 24.1 20.8 -3.4 -1.8 -1.5 19.0 +1.8 [Operating Margin] 【6.8%】 【5.9%】 (86%) (94%) 【5.3%】 (109%) Recurring 22.7 23.1 +0.4 +1.6 -1.2 19.1 +4.0 Profit (102%) (95%) (121%) Profit attributable to owners of parent company 16.9 8.8 -8.2 +2.2 -10.4 6.0 +2.8 (52%) (39%) (147%) ■ Exchange rates (period average) ■ Japan H.E. business and New business domains: April to September 2025 ■ International H.E. business: January to June 2025 (April to September 2025 for India) 〈Subject periods and segments〉 *1: Recorded an extraordinary loss as restructuring costs in the Mainland China Business (Has been reflected in the initial plan.)
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Copyright © TOTO LTD. All Rights Reserved. 4 Sales and profit by business segment 〈Subject periods and segments〉Japan H.E. business, New domain business: - April to September 2025International H.E. Business: - January to June 2025 (Apr to Sept for India) Unit: Y billion Net Sales FY24 FY25 YoY plan vs.planInfluence of Currency- 1H 1H exchange rate neutral basis Japan H.E. 234.0 228.5 -5.5 -5.5 240.0 -11.5 (98%) (98%) (95%) International H.E. 99.8 91.1 -8.8 -2.9 -5.9 90.9 +0.2 (91%) (94%) (100%) New business domains 21.7 29.6 +7.9 -1.4 +9.3 29.0 +0.6 (137%) (143%) (102%) Others 0.1 0.1 +0.0 +0.0 0.1 +0.0 Total 355.7 349.4 -6.4 -4.2 -2.1 360.0 -10.6 (98%) (99%) (97%) Operating Profit FY24 FY25 YoY plan vs.planInfluence of Currency- 1H 1H exchange impact neutral basis Japan H.E. 9.1 5.9 -3.3 -0.3 -3.0 8.0 -2.1 (64%) (67%) (73%) International H.E. 7.1 3.4 -3.7 -0.1 -3.6 0.8 +2.6 (48%) (50%) (426%) New business domains 9.1 12.9 +3.8 -1.4 +5.2 11.5 +1.4 (142%) (158%) (112%) Others -1.2 -1.4 -0.2 -0.2 -1.3 -0.1 Total 24.1 20.8 -3.4 -1.8 -1.5 19.0 +1.8 (86%) (94%) (109%) (4.3 times) ※H.E.: Housing Equipment ※※New business domains : Ceramics business ※ ※ ※※ ※ ※ ※※ The Housing Equipment Business saw decreases in sales and profits, while the new domain business saw increases in sales and profits.
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Copyright © TOTO LTD. All Rights Reserved. 5 20.8 - 3.7 +1.1 24.1 +4.9 -5.7 - 2.2 - 1.7 - 0.4 - 1.8 +7.1 -0.9 +1.8 Impact of an impairment loss in the Mainland China Business, etc.ca Cause of increase/decrease of operating profit Unit: Y billion -4.7 -0.7 +0.5 +0.8 +0.1 +1.5 +0.6 +1.3 +1.8 +0.6Difference from the plan Cost reduction Human resources investment IT related investment Strengthen- ing sales investment, etc. 1H FY25 OP Increase/decre ase in sales and product range differences etc. External procurement cost Depreciation Develop- ment/ production investment Exchange rate 1H FY24 OP Price revision effect Impact of rising prices of resins, copper, electronic components, etc. Although there were positive effects from increased sales in the new domain business, price revisions, cost reductions, etc., profits decreased due to factors including a decrease in sales in the Housing Equipment Business and impact of external procurement costs.
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Copyright © TOTO LTD. All Rights Reserved. 6 Net Sales JPY 162.8 billion (98%) Operating Profit JPY 6.4 billion (-2.9 billion yen) RESTROOM LAVATORY KITCHEN Current status of Remodeling business * Base segmentJapan Housing Equipment Business: Performance by demand Remodeling (YoY) New Housing (YoY) Net Sales JPY 65.7 billion (97%) Operating Profit JPY -0.5 billion (-0.3 billion yen) • Sales decreased year-on-year due to the impact of a decrease in sales volume resulting from differences in the month when prices were revised*. Current sales in the market are progressing steadily. *FY2024: Prices revision in August FY2025: Prices revision in October • As for new products released in August, customers are showing strong interest, particularly for restroom products. ⇒ We will further accelerate proposals, mainly focusing on new products. We continue to introduce new products (New products released in August) NEOREST LS - W/AS - W RS1/2 WASHLET integrated Toilets GGA WASHLET SS Drena The crasso Escua Despite the positive effect of sales expansion of new products, sales decreased due to a decrease in sales volume resulting from differences in the price revision timing. We will strengthen our proposal activities toward the season when the remodeling demand increases.
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Copyright © TOTO LTD. All Rights Reserved. 7 (4.3倍)International Housing Equipment Business Unit: Y billion Net Sales FY24 FY25 YoY Plan vs.planInfluence of Currency- 1H 1H exchange rate neutral basis Americas 36.7 37.9 +1.3 -1.0 +2.3 39.5 -1.6 (103%) (106%) (96%) Asian & Oceanian Region 23.6 24.4 +0.7 -0.9 +1.6 24.2 +0.2 (103%) (107%) (101%) Europe 2.5 2.9 +0.4 -0.0 +0.4 2.7 +0.2 (115%) (116%) (106%) Mainland China 37.1 25.9 -11.1 -0.9 -10.2 24.5 +1.4 (70%) (73%) (106%) Total 99.8 91.1 -8.8 -2.9 -5.9 90.9 +0.2 (91%) (94%) (100%) Operating Profit FY24 FY25 YoY plan vs.planInfluence of Currency- 1H 1H exchange rate neutral basis Americas 3.1 3.0 -0.1 -0.1 +0.0 1.8 +1.2 (95%) (100%) (166%) Asian & Oceanian Region 3.5 4.5 +1.0 -0.1 +1.1 3.7 +0.8 (128%) (131%) (121%) Europe -0.3 -0.2 +0.1 -0.0 +0.1 -0.2 +0.0 Mainland China 0.8 -3.9 -4.6 +0.1 -4.8 -4.5 +0.6 Total 7.1 3.4 -3.7 -0.1 -3.6 0.8 +2.6 (48%) (50%) (4.3 times) Sales and profits decreased across the entire International Housing Equipment business.
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Copyright © TOTO LTD. All Rights Reserved. 8 Net sales growth of 3Q of FY2025 (July t to September 2025) YoY: 109% Growth segmentAmericas Business *Figures that do not include consolidated adjustment and common expense allocations 255 million dollars (106%) 25 million dollars (+3 million dollars) Sales (YoY) Operating Profit (YoY) ■ Growth rate by product ■ Sales status by product ■ Market trends Sales volume of WASHLET 3Q of FY2025 (July to September 2025) YoY: 115% YoY Sales distribution ratio Net sales Sanitary Ware 108% 51% WASHLET 110% 37% Faucet Fixtures 86% 8% Sales volume WASHLET 118% Yea r - o n - year comparison of the number of existing houses sold (based on delivery time) January to June 2025 : 102% ｜ WASHLET Mainly in e - commerce and retail chain stores, net sales increased year - on - year across all channels. ｜ Sanitary Ware Sales increased year - on - year due to increased sales of mid - to high - end products. WASHLET saw significant growth across all channels, resulting in increased sales and profits.
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Copyright © TOTO LTD. All Rights Reserved. 9 ■Net Sales (in local currency) Asia Business *Figures that do not include consolidated adjustment and common expense allocations Growth segment Taiwan region 2,877 million Taiwan dollars (106%) Vietnam 646.7 billion dong (112%) India 1,401 million Rt. (104%) Thailand 307 million baht (84%) ■ Sales Distribution Ratio (JPY) ■ Growth rate by product■ Situation by country and region Taiwan region 55% Vietnam 15% India 10% Thailand 6% Others 15% Asia Business 24.4 billion yen * Fiscal year in India April 2025 to March 2026 Taiwan Region: Sales increased due to increased sales of integrated toilets, etc. Vietnam: Sales increased buoyed by the recovery trend in the market India: Sales increased due to the effects of various measures, etc. Thailand: Sales decreased due to the harsh market conditions, etc. 3Q (July to September) YoY Taiwan region 115% Vietnam 166% Thailand 91% Across Asia YoY Sales distributio n ratio Net sales Sanitary Ware 107% 46% WASHLET 97% 25% Faucet Fixtures 100% 17% Sales volume WASHLET 96% Sales volume of WASHLET 3Q of FY2025 (July to September 2025) YoY: 108% The Taiwan region saw increased sales due to the increased sales of WASHLET integrated toilets, etc. Vietnam saw increased sales due to a recovery in the market conditions.
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Copyright © TOTO LTD. All Rights Reserved. 10 Sales increased and remained profitable due to the effect of increased sales of WASHLET to key plumbers. 100 118 2024年度_上期 2025年度_上期 Europe Business Growth segment Net sales growth of 3Q of FY2025 (July to September 2025) YoY: 107% *Figures that do not include consolidated adjustment and common expense allocations ■WASHLET: Growth in sales volume (index) 1H, FY24 1H, FY25 Sales volume of WASHLET 3Q of FY2025 (July to September 2025) YoY: 115% 18 million euros (116%) 1 million euros (+0.6 million euros) Sales (YoY) Operating Profit (YoY) ■ Initiatives to establish market position in the European market We will expand the market for WASHLET by promoting proposals by plumbers (water supply contractors) to customers for our space-saving toilets and WASHLET through collaborative initiatives with distributors. A set of wall-mounted toilet and WASHLET requireng less space for installation
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Copyright © TOTO LTD. All Rights Reserved. 11 Mainland China Business *Figures that do not include consolidated adjustment and common expense allocations Growth segment Net sales growth of 3Q of FY2025 (July to September 2025) YoY: 95% ■ Growth rate by product Sales volume of WASHLET 3Q of FY2025 (July to September 2025) YoY: 95% YoY Sales distribution ratio Net sales Sanitary Ware 72% 45% WASHLET 75% 29% Faucet Fixtures 73% 22% Sales volume WASHLET 78% 1,273 million yuan (73%) -162 million yuan (-238 million yuan) Sales (YoY) Operating Profit (YoY) ■ Structural Reform (announced on April, 2025) Despite decreased sales and a loss, business restructuring is proceeding as planned.
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Copyright © TOTO LTD. All Rights Reserved. Liaoning Beijing Huadong Fujian Dalian Nanjing 12 Base segment Plants where production was suspended: April 28 Plants where production is underway: As of the end of October * These costs have been included in the plan for the fiscal year ending March 2026. ◇ Status of liquidation Production: Production reorganization and workforce optimization • Liquidation of the companies is proceeding as planned. ●● Sanitary Ware Production: Completed (Started operation on May 21, 2025) ● Fittings and Bathtub Production: FY 25_Second half Workforce optimization: In progress Optimization of workforce is partially underway at faucet and bathtub plants while the operation continues Recorded extraordinary losses associated with the above structural reforms: Approximately 15 billion yen ■TOTO Beijing (Beijing City) ■TOTO Huadong (Shanghai City) ■TOTO Fujian (Zhangzhou City) ■TOTO Liaoning (Dalian City) Mainland China Business: Status of their initiatives Production scale reduced by approximately 40% due to the reorganization of production for sanitary ware. (Disclosed in April) At the faucet hardware and bathtub plants, we will establish a production system appropriate for their business scale. ■TOTO Dalian (Dalian City) ■Nanjing TOTO (Nanjing City)
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Copyright © TOTO LTD. All Rights Reserved. 13 Base segment Product: New product launch plan Current market structure and new products launch schedule Creation and expansion of demand by proposing new value as represented by NEOREST Lineup of integrated toilets February 2025 -FY2024 FY2025- No product High-end Middle-high-end Middle-end Shift up Added new products - > Expansion of contact points with customers August 2025 Expand contact opportunities by sequentially introducing products that meet the needs of growing markets Shift up Mainland China Business: Our initiatives We are starting to see results in our key target areas, driven by our new products. We are seeing similar trends in the e-commerce market, leading to the expansion of contact points with new customers. High-end Middle-end Volume Middle- high-end
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Copyright © TOTO LTD. All Rights Reserved. 14 Base segment 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2024年度 2025年度 ✓ Focusing resources on areas, applications, and vendors in which we can leverage our strengths ✓ Communication with customers utilizing online and offline channels ✓ Strengthening functions (proposals, construction, etc.) utilizing existing showrooms Sales: Initiatives targeting remodeling demand Focusing resources on areas where TOTO’s strengths can be leveraged through remodeling Outline of main initiatives We will work with key distributors and interior contractors to stimulate remodeling demand and promote the value of our latest products as planned, targeting customers in key areas who trust the TOTO brand and have a history of purchasing our products. ■Projects ■Retail * Indicated as an index by setting FY2023 as 1000 We are strengthening our initiatives by expanding our target areas. 100 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2024 FY2025 Start of structural reforms in Mainland China Online Offline Showrooms of distributors and interior contractors Event at a condominium where we delivered products Attract customers Utilizing social media Mainland China Business: Our initiatives We are promoting our initiatives for key targets as planned. We will steadily advance collaborative initiatives with distributors and interior contractors to ensure that the remodeling business contributes to overall business performance. Retail sales and Project sales Retail sales are on a recovery trend, driven by the combined effect of launching new products.
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Copyright © TOTO LTD. All Rights Reserved. 15 Advanced Ceramic Business Growth segment 29.6 billion yen (137%) 12.9 billion yen (+3.8 billion yen) Sales (YoY) Operating Profit (YoY) Sales and profits increased due to increased sales of electrostatic chucks accompanying the booming semiconductor-related market. SemiconductorsWafer fab equipment | Electrostatic chucks: Sales increased due to favorable conditions in the semiconductor market accompanying the increased demand from data centers. [New demand] Increased due to progress in new investments in semiconductor manufacturing equipment by device manufacturers. [Demand for replacement] Demand increased as device manufacturers maintained high operating levels. | AD components: Although demand for AI - related products remains strong, sales decreased because deliveries were delayed to the second half of the fiscal year. DevicesManufacturing equipment Equipment components Memory semicondu ctors Logic semicondu ctors Demand for both new and replacement purpose Electrostatic chucks AD components End application Data centers PCs Smart phones ■Main products (electrostatic chucks and AD components) ■Status of major products and applications
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Copyright © TOTO LTD. All Rights Reserved. 16 Reference: Global Housing Equipment Business, Net Sales by Product Sales in markets remained steady, particularly in the Americas, Asia, and Europe, driven by sanitary ware and WASHLET. (See pages 8, 9, and 10.) Unit: Y billion Net Sales (Billion yen) Japan Housing Equipment Business International Housing Equipment Business FY24 FY25 YoY FY24 FY25 YoY 1H 1H 1H 1H Sanitary Ware 49.7 49.9 +0.1 47.2 43.9 -3.4 (100%) (93%) WASHLET 55.4 53.1 -2.2 31.8 29.9 -1.9 (96%) (94%) Faucet Fixtures 43.1 42.2 -0.9 18.2 15.2 -3.0 (98%) (84%) Bathroom 55.0 53.9 -1.1 (98%) Modular Kitchens / Basins 24.4 22.9 -1.5 2.6 2.0 -0.6 (94%) (78%) Others 6.5 6.6 +0.1 (102%) Total 234.0 228.5 -5.5 99.8 91.1 -8.8 (98%) (91%)
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Copyright © TOTO LTD. All Rights Reserved. 19 2. Topics
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Copyright © TOTO LTD. All Rights Reserved. 17 Americas Business: Strengthening Production System ■ TOTO U.S.A. will begin producing sanitary ware at its new plant building this fall One-piece toilets sold in the U.S. •Automatic Guided Vehicle (AGV) •Robot to agglutinate tanks This is a unique robot developed by TOTO in collaboration with a facility manufacturer. They introduced a robot to connect the bowl and tank of one-piece toilets Two state - of - the - art facilities They have introduced state-of-the-art facilities for the first time among TOTO Group’s sanitary ware plants. Through the introduction of state-of-the- art facilities, etc., production capacity has increased by 50% compared to the previous level. We will gradually shift production of our main products for the U.S. market to the United States, advance automation in production, and strengthen our capabilities to ensure reliable and timely delivery of our products to customers.
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Copyright © TOTO LTD. All Rights Reserved. 18 ■Established 「TOTO AR Company」 Company name :TOTO AR Company Date of establishment :September 21 We have established a venue to convey TOTO’s worldview and technological capabilities, and will accelerate sales initiatives in the Middle East region to drive growth in the Asian market. We opened a sales office and Technical Center. Riyadh (Capital) Wall-mounted toilets are the main products in the local market, as is the case in Europe. We will propose our high water-saving performance and design refined through our business in European to customers in Saudi Arabia. Image of the entrance of the TOTO AR Technical Center Asia Business: Established a Local Subsidiary in Saudi Arabia • Water usage continues to increase annually accompanying economic growth. • Average flush volume standard for toilets is 3.5 liters or less.
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Copyright © TOTO LTD. All Rights Reserved. Simulation of shower fluid 19 We will enhance our water control technology to maximize customer value through water conservation, cleanliness, and comfort. We began developing our own simulation software in 1990s, and started utilizing supercomputer “TSUBAME” in 2010s 【Date】November 12-14, 2025 【Venue】Makuhari Messe Leveraging TOTO's unique technology, we aim to expand ceramic applications, focusing primarily on the semiconductor industry. Simulation of flushing fluid in toilet Exhibit at the Highly-functional Ceramic Expo TOTO Group’s Challenge and Innovation ■ Through analysis using supercomputers, we have developed proprietary simulation technology for product development ■ New challenge by leveraging TOTO’s technological capabilities in the semiconductor industry, where the innovation pace is accelerating Extra-large and high- rigidity ceramic components Air slide Exhibits SiSiC ceramics (Exhibited for reference) Image of the 2025 exhibition booth Simulation of cleansing skin dirt Simulation of mist generation Simulation of showering experience and impacted area Awarded the Excellent Achievement Award for Utilizing supercomputer “Fugaku” (Sponsored by Research Organization for Information Science & Technology)
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Copyright © TOTO LTD. All Rights Reserved. 3. Revised Forecast for Fiscal Year Ending March 2026 (FY2026)
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Copyright © TOTO LTD. All Rights Reserved. 20 Based on first-half results and second-half outlooks for each segment, the full-year plan has been revised. Revised Plan: Highlights Sales: Operating Profit: Japan Housing Equipment Business: Sales: -17.0 billion yen, OP: -4.5 billion yen International Housing Equipment Business: Sales: -2.0 billion yen, OP: +0.5 billion yen New Business Domains: Sales: No revision, OP: +0.5 billion yen 734.5 billion yen (vs former plan:-19.0 billion yen) 49.0 billion yen (vs former plan:-3.5 billion yen) China restructuring progresses ahead of initial expectations, favorable sales and production performance in the Asia business. Impact of U.S. tariffs and other production-related costs in the Americas business. Revenue decline due to remodeling / new housing sales in the 1H falling short of the initial forecast. Reflected timing difference in various strategic investments (delayed; positive factor) and other increased external procurement costs (negative factor). Factored in the variance from the original plan in the first half of the fiscal year.
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Copyright © TOTO LTD. All Rights Reserved. Influence of Currency- revised plan exchange rate neutral basis Plan +10.0 +17.9 -19.0 (101%) (102%) (97%) 48.5 49.0 +0.5 +3.4 52.5 -3.5 【6.7%】 【6.7%】 (101%) (107%) 【7.0%】 (93%) Recurring -0.4 +2.3 -2.1 Profit (99%) (105%) (96%) +16.8 +18.6 -2.0 (238%) (253%) (94%) ROA 6.0% 6.2% +0.2pt 6.6% -0.4pt ROE 2.4% 5.7% +3.3pt 6.2% -0.5pt ROIC 4.8% 6.1% +1.3pt 7.0% -0.9pt ROIC ※2 （Adjusted） -0.3pt FY25 YoY FY25 6.5% 6.7% +0.2pt vs.Former Plan 753.5 52.1 31.0 7.3% Net Sales -7.8 12.2 29.0 -1.8 724.5 734.5 -2.9 50.4 50.0 -2.6 Operating Profit Profit attributable to owners of parent company FY24 2024 January to March 2024 April to June 2024 July to September 2024 October to December 2025 January to March 2025 April to June 2025 July to September 2025 October to December FY25 Revised Plan 1 $ ¥148.6 ¥155.9 ¥149.7 ¥152.4 ¥152.6 ¥144.6 ¥147.5 ¥145.0 ¥145.0 1 CNY ¥20.6 ¥21.5 ¥20.9 ¥21.2 ¥20.9 ¥20.0 ¥20.6 ¥20.0 ¥20.0 1 € ¥161.3 ¥167.9 ¥164.3 ¥162.6 ¥160.6 ¥163.8 ¥172.3 ¥165.0 ¥165.0 1 TWD ¥4.7 ¥4.8 ¥4.6 ¥4.7 ¥4.6 ¥4.7 ¥4.9 ¥4.9 ¥4.9 1 VND ¥0.0060 ¥0.0061 ¥0.0060 ¥0.0060 ¥0.0060 ¥0.0056 ¥0.0056 ¥0.0056 ¥0.0056 1 THB ¥4.2 ¥4.3 ¥4.3 ¥4.5 ¥4.5 ¥4.4 ¥4.6 ¥4.4 ¥4.4 1 INR ¥1.8 ¥1.9 ¥1.8 ¥1.8 ¥1.8 ¥1.7 ¥1.7 ¥1.7 ¥1.7 21 ※1: Restructuring cost of the Mainland China business is included in extraordinary loss. (Which was included in the initial plan) ※2:Calculated based on a standard effective tax rate of 30.4% Revised Plan: Financial Results Unit: Y billion ■ Japan H.E. business and New business domains: April 2025 to March 2026 ■ International H.E. business: January to December 2025 (April 2025 to March 2026 for India) 〈Subject periods and segments〉 ■ Exchange rates (period average) We have revised our full-year plan based on the results in the first half and estimates for the second half in each segment. ※1※1 (2.4 times) / (2.5 times) ※1 ROIC ※ Operating profit after tax Operating capital + Fixed assets Former Plan
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Copyright © TOTO LTD. All Rights Reserved. 22 Reference: 2H Revised Plan: Financial Results Unit: Y billion We revised the plan based on the estimates for the second half. Influence of Currency- 2H 2H Revised Plan exchange rate neutral basis 2H Former Plan +16.4 +20.0 -8.4 (104%) (105%) (98%) 24.3 28.2 +3.9 +5.0 33.5 -5.3 【6.6%】 【7.3%】 (116%) (120%) 【8.5%】 (84%) -0.8 +3.5 -6.1 (97%) (113%) (82%) -4.8 (81%) Net Sales -3.6 -4.8 20.2 -4.0 368.7 385.1 -1.1 27.7 26.9 -4.3 +25.0 Operating Profit Profit attributable to owners of parent company Recurring Profit FY25 YoY FY24FY24 vs.Fomer Plan 393.5 33.0 25.0+28.9 ■ Japan H.E. business and New business domains: October 2025 to March 2026 ■ International H.E. business: July to December 2025 (Oct 2025 to March 2026 for India) 〈Subject periods and segments〉 ■ Exchange rates (period average) 2024 January to March 2024 April to June 2024 July to September 2024 October to December 2025 January to March 2025 April to June 2025 July to September 2025 October to December 2026 Jan to March 1 $ ¥148.6 ¥155.9 ¥149.7 ¥152.4 ¥152.6 ¥144.6 ¥147.5 ¥145.0 ¥145.0 1 CNY ¥20.6 ¥21.5 ¥20.9 ¥21.2 ¥20.9 ¥20.0 ¥20.6 ¥20.0 ¥20.0 1 € ¥161.3 ¥167.9 ¥164.3 ¥162.6 ¥160.6 ¥163.8 ¥172.3 ¥165.0 ¥165.0 1 TWD ¥4.7 ¥4.8 ¥4.6 ¥4.7 ¥4.6 ¥4.7 ¥4.9 ¥4.9 ¥4.9 1 VND ¥0.0060 ¥0.0061 ¥0.0060 ¥0.0060 ¥0.0060 ¥0.0056 ¥0.0056 ¥0.0056 ¥0.0056 1 THB ¥4.2 ¥4.3 ¥4.3 ¥4.5 ¥4.5 ¥4.4 ¥4.6 ¥4.4 ¥4.4 1 INR ¥1.8 ¥1.9 ¥1.8 ¥1.8 ¥1.8 ¥1.7 ¥1.7 ¥1.7 ¥1.7 /
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Copyright © TOTO LTD. All Rights Reserved. Influence of Currency- revised plan exchange rate neutral basis Plan -3.3 -3.3 -17.0 (99%) (99%) (97%) -3.3 +1.6 -2.0 (98%) (101%) (99%) +16.7 +19.6 +0.0 (133%) (139%) (100%) +10.0 +17.9 -19.0 (101%) (102%) (97%) FY24 FY24 International H.E. 189.2 -4.9 Net Sales FY25 YoY 724.5 734.5 +0.0 753.5 0.3 vs.Former Plan -2.950.3 67.0 0.3 0.3 +0.0 +0.0 495.0 191.2 67.0 481.3 478.0 192.5 Japan H.E. -7.8 New business domains Others Total Influence of Currency- revised plan exchange rate neutral basis Plan -3.9 -4.1 -4.5 (82%) (81%) (80%) -2.0 -1.9 +0.5 (78%) (78%) (108%) +6.6 +9.6 +0.5 (132%) (147%) (102%) +0.5 +3.4 -3.5 (101%) (107%) (93%) FY24 FY24 Others -0.1 -3.0-0.1 vs.Former Plan +0.0 Total 48.5 49.0 Operating Profit -2.9 -3.0 +0.2 -0.1 FY25 YoY 52.5 22.5 6.5 -2.9 20.4 27.0 -3.0 Japan H.E. 21.9 18.0 International H.E. 26.5 9.0 7.0 New business domains 23 FY25 Unit: Y billion We reflected the 1H results of the Japan Housing Equipment Business and the situation in each region of the International Housing Equipment Business. ※H.E.: Housing Equipment ※※New business domains : Ceramics business ※ ※ ※※ ※ ※ ※※ 〈Subject periods and segments〉Japan H.E. business, New domain business: - April to September 2025International H.E. Business: - January to June 2025 (Apr to Sept for India) Reference: 2H Revised Plan: Sales an profit by business segment FY25 Former Plan Former Plan
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Copyright © TOTO LTD. All Rights Reserved. 24 Revised Forecast: Cause of increase/decrease of operating profit Unit: Y billion Cost reduction Human resources investment IT related investment Strengthen- ing sales investment, etc. FY25 OPIncrease/decre ase in sales and product range differences etc. External procurement cost Depreciation Develop- ment/ production investment Exchange rate FY24 OP Price revision effect 49.0 -7.8 +0.7 48.5 +9.7 +1.6 -6.1 -3.2 -1.6 -2.9 +11.9 -1.8 Impact of rising prices of resins, electronic components, etc. -13.2 -2.5 +0.7 -0.1 +0.1 +2.7 +1.2 +1.4 +3.6 +2.5vs.Former Plan -3.5 We revised the plan, reflecting the impact of accumulated cost reductions, adjustment of the timeline for various investments, and business results across all regions of the Global Housing Equipment Business. Including the impact of an impairment loss incurred in the Mainland China business
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Copyright © TOTO LTD. All Rights Reserved. 25 Revised Plan: International Housing Equipment Business Unit: Y billion We reflected the progress of structural reforms in the Mainland China Business, the strong sales and production in the Asia Business, and the impact of tariffs, deteriorating market conditions, and worsening product mix in the Americas Business. Influence of Currency- revised plan exchange rate neutral basis Plan +4.6 +6.9 -4.9 (107%) (110%) (94%) +5.8 +6.5 +0.5 (112%) (113%) (101%) +0.7 +0.7 +0.4 (115%) (114%) (108%) -14.4 -12.6 +2.0 (78%) (81%) (104%) -3.3 +1.6 -2.0 (98%) (101%) (99%) YoY vs.Former Plan 66.9 52.5 Net Sales FY24 FY25 FY24 Americas -2.370.5 75.1 Asian & Oceanian Region 50.2 56.0 -0.8 Europe +0.04.9 5.6 Mainland China -1.9 80.0 55.5 5.2 50.5 191.2Total 192.5 189.2 -4.9 Influence of Currency- revised plan exchange rate neutral basis Plan -1.7 -1.5 -3.0 (68%) (71%) (54%) +2.3 +2.4 +1.8 (127%) (129%) (121%) -2.0 -1.9 +0.5 (78%) (78%) (108%) Europe +0.2+0.3 +1.5 Total 9.0 7.0 -0.1 Mainland China -3.6 -6.5 -2.9 Asian & Oceanian Region 8.2 10.5 -0.1 FY24YoY 6.5 6.5 8.7 +0.2 -3.2 -8.0 Americas Operating Profit vs.Former Plan -0.7 5.2 3.5 -0.2 FY24 FY25 -0.8 -0.5 -0.0 +0.3 FY25 FY25 Former Plan Former Plan
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Copyright © TOTO LTD. All Rights Reserved. 26 ＜Existing Home Sales Trend＞ Slightly increased Our long-term business growth strategy, centered on expanding WASHLET sales, remains unchanged. We will further accelerate the channel-specific initiatives currently underway. ＜TOTO's Initiatives＞ 【Current Market Dynamics and TOTO's Approach】 ＜Changes in Construction/Renovation Trends Following Existing Home Purchases ＞ A shift in the purchasing behavior of home buyers is evident. ・A decrease in the number of wet-area (bathroom/kitchen) renovation projects. ・A reduction in the scope of work and the average unit price. ⇒ Leading to a deceleration in K&B sales growth and product mix deterioration. ・An increase in single-item replacement purchases. ⇒ Resulting in a rise in WASHLET purchases through E-commerce and retail channels. Intensifying proposals for high-end toilets and WASHLETS through collaboration with influential distributors in 63 key metropolitan areas. Construction material stores（Kitchen & Bath Shop） Securing and maintaining a high market share through strengthened promotional activities. E-commerce Expanding sales outlets and broadening the product lineup. Retail chain stores Driving cost optimization at the new domestic sanitary ware manufacturing facility in the U.S. Revised second half targets due the following factors ・The Impact of U.S. tariff policy (approximately 2 billion yen impact to the original OP target) ・Shifts in the Buying Behavior of Existing Home Buyers Launching new products optimally suited for each sales channel. Sales Production Products Americas Housing Equipment Business: Revision of the Earnings Plan
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Copyright © TOTO LTD. All Rights Reserved. 27 ■Growth Segments ■Base Segments Americas Despite external factors, sales of WASHLET are growing steadily and are almost in line with the plan. Asia Ceramics Europe Japan Mainland China Progress toward the vision outlined in TOTO WILL2030 Sales are strong, particularly in key countries and regions, including Taiwan and Vietnam, and are progressing almost in line with the plan. Amid solid demand growth, progress exceeded the plan due to increased sales of electrostatic chucks. Profitability was achieved due to increased sales of WASHLET. Progress exceeded the plan. Production strategy is on track for completion, with product and sales strategies progressing as planned. Profitability is expected to be achieved next fiscal year with the effects of these three strategies. We continuously implement price revisions and cost reduction measures; however, we are currently formulating countermeasures against the decline in profitability primarily due to external procurement costs and the burden of various strategic investments. Growth segments are growing as planned. Improving the profitability of the Japan Housing Equipment Business is the most critical challenge.
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Copyright © TOTO LTD. All Rights Reserved. 28 Net sales grow steadily. However, operating profit is on a gradual downward trend due to various cost increases, despite the positive effects of ongoing cost reduction efforts and price revisions. 【 Operating Profit 】 ■Japan Housing Equipment Business: Historical Performance 【 Net Sales 】 432.7 FY17 → FY25 Factors increasing /decreasing operating profit Actual Revised Plan *1 +120.0 -131.0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 *2 【 Improvement Factors 】 └ Price Revision └ Cost Reduction 【 Deteriorating factors 】 └ Procurement cost └ Investments └ Increase/ decrease in sales and product range differences └ Depreciation └ Exchange rate Japan Housing Equipment Business: Challenges *1 The figures indicate the results after reviewing the allocation basis for common expenses as the new revenue recognition standard was applied in FY21. *2 Human resources investment, IT related investment, Development production investment, Strengthening sales investment, etc. 481.3 478.0 28.8 21.9 18.0
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Copyright © TOTO LTD. All Rights Reserved. 29 ✔ Utilizing and evolving Remodeling expertise cultivated over many years of experience. ✔ Promoting company-wide initiatives for comprehensive profitability improvement across Sales, Products, Production, and Indirect divisions to achieve optimal business processes. execute full-scale improvement initiatives across all divisions to enhance profitability, with a focus on ROIC (Return on Invested Capital). Customer-Centric Renovation Demand Creation and High- Value Product Proposals New Business Models (e.g., Daily Wellness) Sales and Business Model Development image Leveraging Digital Technology • Sustained strengthening of cost reduction activities (Cost Reduction). • Improving production efficiency via SF and FA. • Strengthening global R&D and development structures. • Agile Price Revision strategies. • Improving productivity through the utilization of digital tools. ＊SF_Smart Factory AF_Factory Automation * Profitability Improvement Activities Sales Production • Improving overall operational efficiency Corporate Other theme-based initiatives will be reviewed and implemented sequentially. Japan Housing Equipment Business: Direction
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Copyright © TOTO LTD. All Rights Reserved. 30 Strategic investment (capital investment) • Strategic investment focused on growth segments • Improve management with hurdle rates above capital costs Shareholder returns • The dividend payout ratio shall be 40% or more, and dividends shall not be reduced but increased or maintained. • The acquisition of treasury stock shall be implemented flexibly, taking capital costs, stock price levels, and cash reserves into comprehensive consideration. Capital allocationCash generation STAGE1 (2021-23) Operating cash flow ¥157.2 billion STAGE2 (2024-26) Operating CF ¥230 billion Sale Shares held for cross- shareholding purposes Strategic investment ¥175 billion Shareholder returns, etc. STAGE2 (2024-26) Revised Plan: Financial Discipline Strategic investments are progressing as planned. We will continue to invest for future business FY25 Initial Plan FY25 Revised plan Difference Investment for global strategy •Related to sanitary ware plants (Americas and Mainland China) •Investments in new WASHLET products, etc. 31.4 32.6 +1.2 (Impact of exchange rate, etc) Investment for ceramic strategy •Strengthening production and development systems, etc. 9.0 6.2 -2.8 (Timing difference in investment) Investment for Japan strategy •Investments related to new products •Investments related to smart factory initiatives, etc. 6.2 5.0 -1.2 (Partial revision of the plan) Investment for strengthening foundation •Optimization-related investments in production, logistics, sales management, etc. 11.9 12.6 +0.7 58.5 56.5 -2.0 Strategic investment amount Billion JPY
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Copyright © TOTO LTD. All Rights Reserved. 31 Revised Plan: Financial Discipline Reduction of cross-shareholdings ■ Ratio to consolidated net assets • Actual as of the end of FY24: 11% • Plan for the end of FY25: Less than 10% • Plan for the end of FY30: Less than 5% To achieve the plan for the end of FY30, we will promote reduction in a planned manner after confirming if there is a rationale for holding such shares. FY24 FY25 1st Half ¥50.0 ¥50.0 2nd Half ¥50.0 ¥50.0 Full Year ¥100.0 ¥100.0 Dividend Payment Ratio 139.4% 56.7% Dividend Plan ■ In accordance with our shareholder return policy, we will pay an annual dividend of 100 yen. ■Acquisition of treasury shares Acquired 5.31 million shares at 20 billion yen against the ceiling of 20 billion yen. (Acquisition period: May 1, 2025 to August 20, 2025) ■Retirement of treasury shares A total of 10.62 million shares were retired including all treasury shares acquired (5.31 million shares) and the shares already held (5.31 million shares). (Retirement date: September 30, 2025) Acquisition and retirement of treasury shares * Percentage to the total number of shares issued prior to retirement: 6.0% Less than 10% Less than 5% (plan)(plan) We will carry out capital allocation appropriately, including the cash generated from the sale of shares held for cross-shareholding purposes.
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Copyright © TOTO LTD. All Rights Reserved. As of the end of FY24 Revised plan for the end of FY25 Difference Inventories 134.6 118.9 -15.7 Fixed assets 297.9 307.9 +10.0 Investment Securities 57.1 53.7 -3.4 Invested Capital TOTO ver. (Operating capital + Fixed assets) 508.5 503.5 -5.0 ROIC 4.8% 6.1% +1.3pt *Adjusted ROIC (6.5%) (6.7%) +0.2pt 32 *1 *2 Revised Plan: B/S Assets 813.9 Liabilities 283.5 Net assets 530.4 Assets 769.0 (-44.8) Liabilities 277.2 (-6.2) Net assets 491.7 (-38.6) Assets 767.5 (-46.4) Liabilities 269.0 (-14.5) Net assets 498.5 (-31.9) Results as of the end of FY24 Plan for the end of FY25 Revised plan for the end of FY25 Discipline Plan Equity ratio 50% or higher 64.2% DE ratio 0.5 times or lower 0.15 times ROIC improves due to the effect of reducing inventory and cross -shareholdings. The figures in ( ) indicate the year-on-year change. ■ TOTO version ROIC-related indicators (focusing on improvement drivers) Reduce inventory in Housing Equipment Business Accelerate reduction of shares held for cross-shareholding purposes Increase strategic investment *1: In addition to shares, including capital contributions or invested capital *2: Calculated based on a standard effective tax rate of 30.4%
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Copyright © TOTO LTD. All Rights Reserved. 33 FY24 Results FY25 Revised Plan Operating CF +71.4 +45.2 Strategic investment (Capital investment) -50.7 -56.5 Sale of fixed assets and investment securities +13.4 +12.4 Investment CF -38.4 -44.2 Free CF +33.0 +1.0 Financial CF -13.7 -40.2 Change in CF +19.2 -39.2 Cash and deposits at end of period 122.7 83.5 Revised Plan: CF Unit: Y billion Discipline Plan Cash on hand (compared to monthly sales) 1.5 months 1.4 months • Restructuring costs for the Mainland China business • Response to the Revised Subcontracting Act, etc. Acquire treasury shares (-20 billion yen) Accelerate reduction of shares held for cross-shareholding purposes +: Increase -: Decrease FCF declined due to one-time charges, such as restructuring costs, at our Mainland China business. Reduce cash reserves to financially disciplined levels through share buybacks.
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This presentation material contains forward-looking statements based on assumptions, estimates and plans as of October 31, 2025. 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.