Lixil expects ¥12 bn tax expense reduction from German tax reform

Lixil Corporation announced today that its consolidated subsidiary, Lixil Europe S.à r.l., expects a reduction of approximately ¥12.0 billion in corporate income tax expense for the current consolidated fiscal year. This decrease stems from the recalculation of future tax expenses, necessitated by the German Corporate Growth Opportunities Act enacted in July 2025. This act will gradually reduce the German corporate tax rate starting from fiscal year 2028, requiring Lixil Europe to adjust its deferred tax assets and liabilities.

The adjustment to income tax expense will be allocated across quarters, with an amount corresponding to approximately two quarters recognized in the second quarter, and the remainder in subsequent quarters. Lixil clarified that this is a one-off accounting treatment resulting from tax reform and will have no direct impact on Lixil Europe's business operations or Lixil's consolidated cash flow. Final amounts are subject to foreign exchange fluctuations.

Lixil will review the impact of this matter on its full-year consolidated financial forecast for the fiscal year ending March 2026 over the second half, alongside other business factors, and will announce any necessary revisions promptly. The annual dividend forecast of ¥90 per share (interim dividend of ¥45 and year-end dividend of ¥45), announced on April 30, 2025, remains unchanged. The consolidated financial results for the cumulative second quarter (April 1, 2025, through September 30, 2025) are scheduled for announcement on October 31, 2025.