Message to Shareholders and Investors

I would like to take this opportunity to thank all of you for your strong interest in the management of Daikin together with your continued support for our company.

In fiscal year 2023, Daikin faced a challenging business environment in which demand fell even lower than expected in many regions and businesses. Nevertheless, we continued to implement key measures that included enhancing product and service proposals for carbon neutrality and energy savings, thoroughly implementing pricing measures, and performing total cost reductions.
At the same time, we identified thriving regions and products, such as India and Applied, and expanded sales. As a result of these efforts, sales and operating profit exceeded the previous fiscal year in setting new highs for our company in financial results.

The fiscal year 2024 will be the final year for Fusion 25. We expect a difficult management environment with low market growth at each base due to sluggish consumption from rising inflation and high interest rates. However, in marking the milestone of the 100th anniversary of our founding, we intend to lay the foundation for our next 100 years and achieve even further growth by focusing on carbon neutrality and promoting energy service solutions.
Not only will we endeavor to maintain short-term profits, but we will also work to implement comprehensive measures to strengthen profitability for medium- to long-term growth and achieve our Fusion 25 Latter Half Three-Year Plan.

In recognition of our new record highs in financial results for fiscal year 2023, we are increasing the annual dividend per share by 10 yen to 250 yen (interim 120 yen and term-end 130 yen) from the previously announced amount. Similarly, despite future uncertainty in the business environment, we anticipate an increase in both revenue and profits and plan to increase the annual dividend per share for fiscal year 2024 by 20 yen to 270 yen (interim 135 yen and term-end 135 yen).
Additionally, because we are celebrating our 100th anniversary this year, we will pay a 100th anniversary commemorative dividend of 50 yen for fiscal year 2024.

In the future, we will continue to expand our business while implementing upfront investments for further growth and development as we strive to improve corporate value, increase market capitalization, and further enhance the return of profits to shareholders.

For now, and in the future, we respectively ask for your continued understanding and support of Daikin.

Masanori Togawa
Representative Director, Chairman of the Board and CEO
Daikin Industries, Ltd.

June 2024