★ ★

Fiscal Year 2016

First Quarter Results

July 29, 2016

TOTO

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

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

１． 1Q, FY2016 Results

２． Topics

Contents

1

Summary of Consolidated Financial Results for FY2016 First Quarter

Highlights

New business domains: Increased sales and profits

◆ Sales and profits grew in both remodeling and new housing segments.

◆ Operating income increased despite a decrease in sales due to changes in the exchange rate. ◆ Washlet sales have continued to grow rapidly.

Increased sales and operating income; decreased ordinary income due to changes in the exchange rate

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

Global housing equipment business (overseas): Decreased sales and increased profits

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

Financial results

1Q, FY15 1Q, FY16 FY16 Plan

1$ ¥120.2 ¥112.7 ¥112.7

1 CNY ¥19.4 ¥17.4 ¥17.4

1€ ¥130.3 ¥127.7 ¥127.7

2

1Q, FY2016 Results

Unit: Y 100 million

■Exchange rates

There was a decrease in ordinary income as a result of a non-operating loss of 1.5 billion yen from asset revaluation due to a change in the exchange rate at the end of the fiscal year.

Although net sales fell short of the goal, we achieved the goal for operating income. Sales and profits increased compared to last year.

1Q, FY15 1Q, FY16

YoY Influence of

exchange rete Currency-

neutral basis

Net Sales 1,266 1,282 +16

(+1%) ▲24

+40 (+3%)

Operating Profit

[Operating Margin]

57 [4.5%]

73 [5.7%]

+16 (+28%)

▲4 +20

(+35%)

Recurring Profit

70 66 ▲4

(▲5%) ▲20

＋16 (+23%)

Profit attributable to owners of parent 50 43

▲7 (▲13%)

▲18 ＋11

(+22%)

Plan vs. Plan

1,306 ▲24

63 [4.9%]

+10

69 ▲3

43 ▲0

３

Sales and profit by business segment

1Q, FY2016 Results

Unit: Y 100 million

1Q, FY15 1Q, FY16 YoY Influence of exchange rete

Currency-neutral basis

Domestic H.E. 930 956 +26 (+3%)

+26 (+3%)

Overseas H.E. 292 281 ▲11 (▲4%)

▲24 +13 (+5%)

New Domain 43 43 +0 (+1%)

+0 (+1%)

Others 0 0 +0 (+2%)

+0 (+2%)

total 1,266 1,282 +16 (+1%)

▲24 +40 (+3%)

1Q, FY15 1Q, FY16 YoY Influence of exchange rete

Currency-neutral basis

Domestic H.E. 20 35 +15 +15

Overseas H.E. 48 49 +1 ▲4 +5

New Domain ▲2 ▲0 +2 +2 Others ▲9 ▲10 ▲1 ▲1

total 57 73 +16 ▲4 +20

Plan vs. Plan

974 ▲18

284 ▲3

47 ▲4

1 ▲1

1,306 ▲24

Plan vs. Plan

26 +9

50 ▲1

▲1 +1

▲11 +1

63 +10

<Net Sales>

<Operating Profit>

Housing Equipment Business（Japan）

4

20 35

+ 15

+ 17

▲8

▲5

▲4 ▲2 ▲3

+ 5

Cause of increase/decrease of operating profit Unit: Y 100 million

1Q, FY2016 Results

1Q, 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 1Q, FY16 operating profit

Housing Equipment Business（Japan）

1Q, FY15 1Q, FY16 YoY

Net Sales 623 641 +3%

Operating Profit 16 27 +11

Operating Margin 3% 4% +1pt

1Q, FY15 1Q, FY16 YoY

Net Sales 307 314 +2%

Operating Profit 4 7 +3

Operating Margin 1% 2% +1pt

April May June

+1% +2% ▲5%

５

1Q, FY2016 Results

Unit: Y 100 million

Performance by demand

< Remodeling>

<New Housing>

■ Changes in the number of visitors to showrooms (same month year-on-year comparison) * After correction of operating day ; not adjusted by the number of closed days

TOTO Showrooms were closed in June due to the replacement of kitchen systems. As a result, the total number of visitors decreased compared to last year. However, there has been no marked change in the number of visitors per day.

An increase in sales and profits despite remodeling demand being weaker than expected

Housing Equipment Business（Japan）

Net Sales Operating Profit

1Q, FY15 1Q, FY16 YoY 1Q, FY15 1Q, FY16 YoY

Sanitary Ware 181 186 +3% 9 9 +0

Washlet 195 204 +4% 20 20 +0

Faucet Fixtures 204 201 ▲2% ▲1 7 +9

Bathrooms 225 238 +6% 5 8 +3

Modular Kitchens/Basins 102 106 +5% ▲9 ▲8 +0

Others 20 19 ▲7% ▲4 ▲3 +1

Total 930 956 +3% 20 35 +14

６

1Q, FY2016 Results

Unit: Y 100 million

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

Housing Equipment Business（Overseas）

Exchange rates 1Q, FY15 1Q, FY16

1$ ¥120.2 ¥112.7

1 CNY ¥19.4 ¥17.4

1€ ¥130.3 ¥127.7

Currency Net Sales Operating Profit

1Q, FY15 1Q, FY16 YoY 1Q, FY15 1Q, FY16 YoY

China CNY million 703 769 +10％ 180 193 +13 Asian & Oceanian

Region $ million 60 55 ▲8％ 11 11 ▲0

Americas $ million 61 65 +7％ 1 3 +2

Europe € million 8 9 +12％ ▲1 ▲0 +1

7

Net Sales Operating Profit

1Q, FY15 1Q, FY16 YoY 1Q, FY15 1Q, FY16 YoY

China 136 133 ▲2％ 35 33 ▲2 Asian & Oceanian

Region 72 62 ▲14％ 13 12 ▲1

Americas 73 73 +0％ 1 4 +3

Europe 10 11 +10％ ▲1 ▲1 +0

Total 292 281 ▲4% 48 49 +1

Unit: Y 100 million

In Local Currency

1Q, FY2016 Results

8

Financial Results

196

+8 ▲4 201

+1

Cause of increase/decrease of operating profit

1Q, FY15 1Q, FY16 YoY

Net Sales 703 769 +10%

Operating Profit 196 201 +5

Operating Margin 28% 26% ▲2pt

1Q, FY2016 Results

Results for local subsidiaries (China)

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

Unit: CNY million

1Q, FY 2015 operating income

1Q, FY 2016 operating income

Increase/decrease in sales

Production cost

Strengthening investment sales

Unit: CNY million

■ Results for the first quarter of FY2016 and the latest business status:

◆ Increased sales and profits

◆ A rapid increase in sales in North and South China

◆ Sales of Washlets continue to grow rapidly.

◆ Net sales for the second quarter (April through

June) increased by 6% compared to the same

period last year.

100

198

0

50

100

150

200

2015年度1Q 2016年度1Q

９

1Q, FY16

Sanitary Ware ▲3%

Washlet +41%

Faucet Fixtures ▲6% (＋30%)

(＋2%)

(＋14%)

(▲1%)

(＋19%)

■ Sales distribution ratio

■ Net sales growth by region

China Total：+10％

Results for local subsidiaries (China)

1Q, FY2016 Results

North China

South China

West China East

China

Hong Kong

East China 39％

North China 22％

Hong Kong 5％

West China 12％

South China 22％

■ Washlets: Growth in sales volume （with FY2015 as 100 ）

■ Net sales growth by products （with FY2015 as 100 ）

1Q , FY15 1Q, FY16

Rapid growth in the sales of Washlets; a slight increase in East China, but large increases in other areas; increased sales and profits as a result.

100 81

0

50

100

150 ■ Washlets: Growth in sales volume （with FY2015 as 100 ）

Taiwan

1Q, FY15 1Q, FY16 YoY

Net Sales (For external customers)

24 (11)

26 (14)

+10% (+30％)

Operating Profit 4 5 +1

Operating Margin 17% 19% +2pt

10

1Q, FY15 1Q, FY16 YoY

Net Sales 1,079 911 ▲16％

Operating Profit 295 261 ▲34

Operating Margin 27% 29% +2pt

■Other Region

1Q , FY15 1Q, FY16

Results for local subsidiaries (Asian & Oceanian Region)

1Q, FY2016 Results

Unit: Million Taiwan dollars (Exchange rates: 1Q, FY15=¥3.94, 1Q, FY16=¥3.19）

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

Vietnam Unit: Million US dollars

Net sales fell short of the goal as a result of deterioration in housing market conditions, including a large decrease in the number of new housing starts. However, the operating margin has remained at the same level. Net sales for the second quarter decreased by 8% compared to the same period last year.

Business continues to be strong, with increased sales and profits. Net sales to external customers during the second quarter increased by 54% compared to last year.

Thailand: 27% increase in net sales compared to last year; India: 24% increase in net sales compared to last year; in addition to an increase in sales, factory productivity improved in both countries.

Net sales decreased compared to last year in Taiwan, but increased in Vietnam and other areas, with operating income remaining at the same level as last year.

Financial Results

11

2015年度

営業利益

売上増減 製造費用

増減

販管費

の増減

2016年度

営業利益

▲1

2

+2

＋2

5

1Q, FY15 1Q, FY16 YoY

Net Sales 61 65 +7%

Operating Profit 2 5 +3

Operating Margin 4% 8% +4pt

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

1Q, FY15 operating income

1Q, FY16 operating income

Increase/decrease in sales

Strengthening investment sales

1Q, FY2016 Results

■ Results for the first quarter of FY2016 and the latest business status:

◆ Increased sales and profits; 4% increase in

operating margin

◆ Growth in the North Eastern region

◆ Sales of Washlets continue to grow rapidly.

◆ Net sales for the second quarter (April through

June) increased by 5% compared to the same

period last year. Production cost

100

146

0

50

100

150

200

2015年度1Q 2016年度1Q

12

1Q, FY16

Sanitary Ware ▲2%

Washlet +31%

Faucet Fixtures +15%

(+6%) (+14%)

(+9%)

(▲14%)

Results for local subsidiaries (Americas)

■ Net sales growth by region

Americas Total：+7％

West

Canada

Northeast

Central

■ Washlets: Growth in sales volume （with FY2015 as 100 ）

1Q , FY15 1Q, FY16

West 36％

Central 27％

Canada 10％

Northeast 27％

■ Sales distribution ratio

1Q, FY2016 Results

Increase in sales, profits, and operating margin thanks to an increase in the sales of Washlets

■ Net sales growth by products （with FY2015 as 100 ）

Financial Results

1Q, FY15 1Q, FY16 YoY

Net Sales 8 9 +12%

Operating Profit ▲1 ▲1 +0

13

■ Advanced cases ： Hyatt Regency London - The Churchill（London）

Results for local subsidiaries (Europe)

Unit: € million

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

1Q, FY2016 Results

Washlets installed in all 340 rooms of a five-star hotel located in the West End.

Results and Plans of washlet sales in overseas

Plan 2.5 times more than in the 2012 ratio; 1Q, FY16 vs. Plan：+14％

14

100 114

133

189

256

0

50

100

150

200

250

300

2012年 2013年 2014年 2015年 2016年（計画）

（ with FY2012 as 100 ）

FY15 FY16 (Plan) FY14 FY13 FY12

1Q, FY2016 Results

Green Building Materials Business

Advanced Ceramic Business

15

1Q, FY15 1Q, FY16 YoY

Net Sales 22 24 +6%

Operating Profit 0 1 +1

1Q, FY15 1Q, FY16 YoY

Net Sales 20 19 ▲6%

Operating Profit ▲2 ▲2 +0

New Domain Business

Unit: Y 100 million

Unit: Y 100 million

1Q, FY2016 Results

Increased sales and profits, driven by the advanced ceramics business

１． 1Q, FY2016 Results

２． Topics

Contents

Topic: New Product, The CRASSO

16

Feature 1: Simple, smooth, clutter-free design

First equipped with TOTO's water sterilizer

Feature 2: Technology unique to TOTO

Released August 1, 2016

Our aim was to create a beautiful kitchen in

a living space.

Flat counter Sloped sink

17

Topic: TY Kumamoto Showroom Opened

The collaboration showroom was opened on May 26 as part of efforts to contribute to the early recovery and restoration of the living environment in Kumamoto.

Toilet area

The showroom was opened through collaboration between TOTO and YKK AP. We also hold events jointly with local remodeling stores to provide opportunities to propose better housing plans and products.

-TDY Hiroshima Collaboration Showroom - TD Takamatsu Showroom （TDY Takamatsu Showroom ---Renewal open:July 30)

- TD Sapporo Collaboration Showroom - TDY Osaka Collaboration Showroom - TDY Fukuoka Collaboration Showroom - TDY Tokyo Collaboration Showroom - TY Yokohama Collaboration Showroom - TY Shizuoka Collaboration Showroom - TDY Nagoya Showroom - TDY Kanazawa Showroom - TY Kumamoto Showroom

■ Collaboration Showrooms in Japan

Two-story exhibition area designed in the image of a detached house

18

Topic: 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

21

This presentation material contains forward-looking statements based on assumptions,

estimates and plans as of July 29, 2016.

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.