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 2024, both net sales and operating profit exceeded the previous fiscal year, setting new record highs in financial results. Even as Daikin faced a challenging business environment that included supply disruptions for ducted unitary for houses in the Americas, weakening demand in Europe, and a real estate slump in China, we were able to offset these negative impacts and increase profits through expanded sales by identifying thriving regions, such as Japan and India, and products showing strong demand, such as those in Applied Systems and commercial solutions. Additionally, we generated results in the key themes of carbon neutrality and energy solutions, promoted strategic selling price measures, and thoroughly implemented total cost reductions.

For fiscal year 2025, air conditioning demand, primarily in the residential segment, appears headed to a slowdown in each region. As component prices and labor costs rise due to inflation and cost factors increase from the impact of U.S. tariffs, the management environment is likely to remain challenging.
Nevertheless, even under these circumstances, Daikin will strive for results through the execution of key themes that are currently underway: increasing selling prices to absorb higher costs while expanding sales and market share; boosting sales for the growing demand in Applied Systems air conditioning, fundamentally strengthening service solutions for commercial air conditioning; reducing total costs globally and drastically improving procurement capabilities; and streamlining fixed costs. Through these efforts, we will overcome the negative impacts confronting us and achieve our highest performance ever.

In recognition of higher revenue and profits that set new record highs despite the harsh management environment, we will pay an additional 10 yen to the publicly announced term-end dividend for a total annual dividend of 330 yen (interim dividend of 135 yen, term-end dividend of 145 yen, and　commemorative dividend of 50 yen).
Similarly, despite the uncertain outlook for the future in fiscal year 2025, including the indirect impact of U.S. tariffs, we believe in providing a constant, stable dividend to shareholders based on a DOE of 3.0% and plan to pay an annual dividend of 330 yen, which would be equal to that of the previous fiscal year.

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.

Naofumi Takenaka
Representative Director, President and COO, Member of the Board
Daikin Industries, Ltd.

May 2025