Notice Regarding Issuance of New Shares as Restricted Stock Compensation

Overview of New Share Issuance for Restricted Stock Compensation

LIXIL Corporation resolved to issue 125,873 ordinary shares (issue price JPY 1,744 per share, total JPY 219,522,512) as new shares to 6 executive officers based on the restricted stock compensation plan, with the payment deadline set for May 19, 2026. This plan aims to align the interests of executive officers with shareholders and enhance corporate value over the medium to long term. The transfer restriction period lasts until their resignation, and shareholding guidelines have been established.

Conditions and Management of Restricted Stock

The transfer restriction period starts from May 19, 2026, and continues as long as the executives maintain their positions. Upon resignation, the transfer restrictions are lifted, and any unexercised shares are acquired without consideration. Provisions for treatment in case of organizational restructuring are established, and the shares are managed in designated brokerage accounts. The issue price was calculated based on the average closing price over the past 30 trading days and is not set at a favorable price.