July 11, 2017 LIXIL ENTERS NON-BINDING MOU TO ACQUIRE OUSTANDING SHARES IN GDWT

LIXIL Corporation ("LIXIL") has concluded a non-binding Memorandum of Understanding with DAWN (Distribution and Warehousing Network Limited, JSE: DAW), the minority shareholder of the South Africa based joint venture Grohe Dawn Watertech Holdings Propriety Limited ("GDWT"), for the potential acquisition of DAWN's 49% holding in GDWT.

GDWT is a Johannesburg-based sanitary ware joint venture of which LIXIL is the controlling shareholder with 51%. DAWN informed its own shareholders today about these negotiations in a cautionary guidance (https://senspdf.jse.co.za/documents/SENS_20170711_S386999.pdf). No price has been agreed for the transaction as yet, and negotiations are still under way. As a non- binding MOU, there is no certainty that the negotiations will lead to definitive and binding agreements and therefore no certainty that the transaction will ultimately be concluded and implemented.

GDWT is a leader in sanitation solutions for bathrooms and kitchens in one of the fastest growing regions in the world. GDWT manages a portfolio of well-known brands in South Africa and the African subcontinent, including Libra Bathrooms, Plexicor, Apex Valves, Cobra Water Technology, Vaal Ceramics and ISCA. It is also the sole distributor of LIXIL's global sanitary ware brand, GROHE, in the region. Full ownership of GDWT would enable LIXIL with greater flexibility in managing GDWT's brand portfolio while building on GDWT's core strengths to generate sustainable long- term performance and growth. With LIXIL CEO Seto's close supervision and active support from LIXIL HQ, GDWT has stabilized its business over the last 12 months and begun to turn around its performance.

Contact:

IR Office, LIXIL Group Corporation: irg@lixil.com

LIXIL Group Corporation published this content on 11 July 2017 and is solely responsible for the information contained herein.
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