LIXIL Corporation has adopted the corporate governance structure of a “company with Nomination Committee, etc.” from 2011. Under this governance system, the Company separates the conduct of management from the supervision of management. The Board of Directors not only makes decisions on important policies and supervises management execution, but also establishes an environment that supports appropriate risk-taking by the management team and builds a system that promotes transparent, fair, swift, and decisive decision-making.

Governance Structure (As of April 2025)

Board of Directors

The Board of Directors consists of ten directors, including eight outside directors with four female directors. The Board decides on matters stipulated by laws and regulations, basic management policy, and other important management matters. At the same time, the Board supervises the execution of duties by the directors and executive officers. Outside directors in particular perform an important supervisory role from an independent standpoint, helping to ensure even more robust and effective corporate governance. The Board selects the Chief Executive Officer (CEO) and other Executive Officers placing emphasis on whether the Company can continue to realize its management vision and policy in the years ahead. In principle, the Board of Directors meets once a month, and extraordinary meetings are held as necessary.

Composition of the Board of Directors (10 members as of June 2025)

Composition and operation of Nomination Committee, Audit Committee, and Compensation Committee, etc.

LIXIL adopts the following structure so that the Nomination Committee, Audit Committee, and Compensation Committee are able to effectively fulfill their role and duties as required by law, in addition to enabling the Governance Committee to effectively fulfill its responsibility and role of monitoring and supervising corporate governance across each committee.

(1) The majority of the members of each committee shall all be independent outside directors who satisfy LIXIL’s independence criteria.

(2) The chairperson of each committee shall be an independent outside director.

The deliberation details and resolution matters of each committee are reported by the chairperson of the committee at the Board of Directors Meeting held immediately after the committee meeting.

The Nomination Committee consists of four outside directors. The Nomination Committee decides the details of proposals submitted to the Annual Shareholders’ Meeting concerning the appointment and dismissal of directors. Also, the Nomination Committee will report its opinion to the Board of Directors such as on the appointment, election, removal and dismissal of candidates for executive officers and representative executive officer (Chief Executive Officer), etc., requested by the Board of Directors. The Nomination Committee meets at least once a year.

The Audit Committee consists of five outside directors. In addition to auditing the execution of duties by the directors and executive officers, the Audit Committee decides the details of the Company’s audit policy, audit plans, proposals for the appointment or dismissal of the independent auditors at the Annual Shareholders’ Meeting, and other matters. As a rule, the Audit Committee meets once every two months or more.

The Compensation Committee consists of three outside directors. The Compensation Committee determines compensation policy for directors and executive officers received from the Company as consideration for their duties and the individual compensation for them. The Compensation Committee meets at least once a year.

Composition of the Board of Directors and Committees and Position of the Chairperson

*Independent Director: Directors registered as independent officers with each domestic stock exchange where LIXIL is listed

Governance Committee

The Governance Committee consists of all directors, with the objective of the Company’s corporate governance continued enhancement, discusses or advises the Board of Directors on matters such as reviewing and amending LIXIL Corporate Governance General Policy and playing the lead role in carrying out the evaluation of the effectiveness of the Board of Directors. The Governance Committee, in cooperation with the three committees required by statute (the Nomination Committee, the Audit Committee and the Compensation Committee), strives to establish and improve the Company’s corporate governance system. The Governance Committee meets at least once a year. The improvements of the corporate governance system will be reported to shareholders, investors and other stakeholders through disclosed documents such as the Securities Reports and Corporate Governance Reports.

Audit Framework with Audit & Supervisory Board Member

To enhance the system that supports the Audit Committee and strengthen the internal control of the Group, “Audit & Supervisory Board Members under LIXIL Audit Framework” are distributed to domestic major subsidiaries to exclusively conduct audits of the subsidiaries, enhance the effectiveness of the subsidiaries’ audit activities, and aim to strengthen corporate governance.

The Audit & Supervisory Board Member under LIXIL Audit Framework periodically conducts meetings with the Audit Committee and reports on the implementation status of audits through the Audit Committee Secretariat.

Board of Executive Officers

The Board of Executive Officers consists of the executive officers and serves as a decision-making body for business execution based on the basic policy decided by the Board of Directors. It decides on important matters relating to business execution of the Company. In principle, the Board of Executive Officers meet once a month, and extraordinary meetings are held as necessary.

Internal Audits

At LIXIL, Corporate Audit (the Internal Audit Group) supervises internal audit functions in Japan and overseas, covering all group entities worldwide.

In addition to performing standard internal audits, including accounting audits, business audits and internal control assessment, Corporate Audit also continuously reviews LIXIL’s internal audit system and processes to help the group as a whole achieve sustainable growth, as well as strengthen governance, internal controls and human resource development.

Audit Committee Audits

LIXIL's Audit Committee conducts transparent and highly effective audits by staying in close contact with the Internal Audit Group of LIXIL and subsidiaries, and the Audit & Supervisory Board Members under LIXIL Audit Framework. The Audit Committee periodically receives audit results reports from the Internal Audit Group and the Audit & Supervisory Board Members under LIXIL Audit Framework and gives instructions at suitable times. It conducts interviews with executive officers, etc., sits in on important internal meetings, and reads minutes or approval requests of important committees, and by doing so, it audits the creation of internal control systems and their state of operation at the Company and important subsidiaries, as well as the state of execution of duties by directors and executives. The Audit & Supervisory Board Members under LIXIL Audit Framework also meet periodically to share each company's information and the unified audit policies of the group.

Accounting Audits

The Company has concluded, with Deloitte Touche Tohmatsu LLC, an audit agreement on audits under the Companies Act and audits under the Financial Instruments and Exchange Act. The Company's Audit Committee and Deloitte Touche Tohmatsu LLC have opportunities to share information periodically, and are endeavoring to improve the quality of each other's audits by such means as exchanging information on their respective auditing policies and various problems that have arisen during the period. Also, an audit debriefing session is held at the end of the fiscal year, where opinions are exchanged with respect to account settlement issues in concrete terms.

The name of the certified public accountants who performed the Company’s auditing work in the fiscal year ended in March 2025, and their structure of assistants for audit services are as follows;

・Name of certified public accountants who performed the auditing work Designated limited liability partners, managing members: Taiji Suzuki, Dai Yamamoto, Takenao Ohashi

・Composition of assistants for accounting audit services:
24 certified public accountants and 71 others

Other Committees

In order to enhance corporate governance at its group companies, the Company established the Governance Committee within the Board of Directors as a discretionary committee, and also appropriately holds executive side meetings such as Investment Review Committee, Risk Management Committee, Impact Strategy Committee, and Compliance Committee, and discusses management strategies, medium- and long-term policies, investment matters, etc. to strive to accelerate decision-making and enhance the effectiveness of its governance.

Number of meetings held during FYE2025

*1 M&A Subcommittee: Deliberated and made decisions on matters relating to M&A (including divestment of business) conducted by the Company and its subsidiaries, within the authority delegated by the Board of Executive Officers.
*2 Group Credit Subcommittee: Resolved and deliberated on credit management related to business transactions with third parties conducted by the Company and its subsidiaries in order to accelerate decision-making and enhance effectiveness of governance.