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    6367   JP3481800005

DAIKIN INDUSTRIES, LTD.

(6367)
  Report
Delayed Japan Exchange  -  02:00 2022-08-12 am EDT
24735.00 JPY   +3.02%
08/11DAIKIN INDUSTRIES : Brief Report on the Settlement of Accounts (Consolidated) for the Three Months Ended June 30, 2022 (J-GAAP)
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08/04UBS Adjusts Daikin Industries' Price Target to 27,500 Yen From 25,000 Yen, Keeps at Buy
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Daikin Industries : Brief Report on the Settlement of Accounts (Consolidated) for the Business Year Ended March 31, 2022 (J-GAAP)

05/20/2022 | 02:36am EDT

Member, Financial Accounting Standards Foundation

Brief Report on the Settlement of Accounts (Consolidated) for the Business Year Ended March 31, 2022 (J-GAAP)

May 10, 2022

Name of Listed Company: Daikin Industries, Ltd.

Listed on TSE

Code No.: 6367

(URL: https://www.daikin.co.jp/)

Representative:

Masanori Togawa, President and CEO

Contact:

Motoshi Hosomi,

General Manager of the Corporate Communication Department of the Head Office

(Tel.: +81-6-6373-4320)

Planned date of Ordinary General Meeting of Shareholders: June 29, 2022

Planned date of start of dividend payment:

June 30, 2022

Planned date of the filing of securities report:

June 29, 2022

Preparation of supplementary explanatory materials for the settlement of accounts: Yes

Holding briefings on the settlement of accounts: Yes (for institutional investors and analysts)

1. Consolidated Business Results for the Fiscal Year Ended March 31, 2022

(From April 1, 2021, to March 31, 2022)

(1) Consolidated Business Results

Note: Amounts less than one million yen are truncated.

Percentages indicate year-over-year increases/decreases.

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Fiscal Year ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

March 31, 2022

3,109,106

24.7

316,350

32.6

327,496

36.3

217,709

39.3

March 31, 2021

2,493,386

-2.2

238,623

-10.1

240,248

-10.7

156,249

-8.5

Note: Comprehensive income was ¥366,141 million (28.5%) for the fiscal year ended March 31, 2022, and ¥284,851 million (288.5%) for the fiscal year ended March 31, 2021.

Ratio of earnings

Ratio of ordinary

Diluted earnings

for the fiscal year

Earnings per share

profit to total

Operating margin

per share

to shareholders'

assets

equity

Fiscal Year ended

Yen

Yen

%

%

%

March 31, 2022

743.88

743.46

12.0

9.3

10.2

March 31, 2021

533.97

533.66

10.1

8.1

9.6

(Reference) Equity in earnings of affiliates was ¥1,401 million for the fiscal year ended March 31, 2022, and ¥7 million for the fiscal year ended March 31, 2021.

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets

per share

Millions of yen

Millions of yen

%

Yen

As of March 31, 2022

3,823,998

2,008,109

51.5

6,729.73

As of March 31, 2021

3,239,662

1,698,495

51.4

5,691.85

(Reference) Equity capital was ¥1,969,686 million as of March 31, 2022, and ¥1,665,688 million as of March 31, 2021.

Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2022 (J-GAAP)

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents at end of

operating activities

investing activities

financing activities

period

Fiscal Year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

245,071

(180,789)

(48,698)

717,802

March 31, 2021

374,691

(159,666)

98,942

662,267

2. Dividends

(Annual) Dividend per share

Total cash

Dividend

Ratio of

dividends for

dividends to net

payout ratio

1Q-end

2Q-end

3Q-end

Year-end

Total

the fiscal year

assets

(Consolidated)

(Total)

(Consolidated)

Fiscal Year ended

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

March 31, 2021

80.00

80.00

160.00

46,822

30.0

3.0

March 31, 2022

90.00

110.00

200.00

58,536

26.9

3.2

Fiscal Year ending

March 31, 2023

100.00

100.00

200.00

25.7

(forecast)

3. Consolidated Business Forecast for the Fiscal Year Ending March 31, 2023

(From April 1, 2022, to March 31, 2023)

Note: Percentages indicate year-over-year increases/decreases.

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per

owners of parent

share

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

First half

1,710,000

9.7

200,000

3.8

203,000

3.1

140,000

0.6

478.33

Full year

3,380,000

8.7

340,000

7.5

345,000

5.3

228,000

4.7

779.00

*Notes

  1. Changes in Significant Subsidiaries during the Period (Changes in specified subsidiaries resulting in change in scope of consolidation): None
  2. Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement
    1. Changes in accounting policies relating to revisions to accounting standards, etc.: Yes
    2. Changes in accounting policies other than (i) above: None
    3. Changes in accounting estimates: None
    4. Retrospective restatement: None
  3. Number of Shares Issued (common stock)
    1. Number of shares issued at end of period (including treasury shares)

As of March 31, 2022

293,113,973 shares

As of March 31, 2021

293,113,973 shares

(ii) Number of treasury shares at end of period

As of March 31, 2022

429,774 shares

As of March 31, 2021

469,595 shares

  1. Average number of shares outstanding during the period

Fiscal Year Ended March 31, 2022

292,666,743 shares

Fiscal Year Ended March 31, 2021

292,620,665 shares

Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2022 (J-GAAP)

(Reference) Summary of Non-Consolidated Business Results for the Fiscal Year Ended March 31, 2022 (From April 1, 2021, to March 31, 2022)

(1) Non-Consolidated Business Results

Note: Percentages indicate year-over-year increases/decreases.

Net sales

Operating profit

Ordinary profit

Profit

Fiscal Year ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

March 31, 2022

681,899

21.1

60,048

68.3

170,705

69.6

153,800

75.3

March 31, 2021

563,243

-4.3

35,675

-33.8

100,673

-34.3

87,720

-38.4

Earnings per share

Diluted earnings

per share

Fiscal Year ended

Yen

Yen

March 31, 2022

525.51

525.20

March 31, 2021

299.77

299.60

(2) Non-Consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets

per share

Millions of yen

Millions of yen

%

Yen

As of March 31, 2022

1,814,520

1,021,203

56.1

3,480.34

As of March 31, 2021

1,683,011

924,161

54.8

3,151.01

(Reference) Equity capital was ¥1,018,656 million as of March 31, 2022, and ¥922,141 million as of March 31, 2021.

The Brief Report on the Settlement of Accounts is outside the scope of audit by a certified public accountant or an audit corporation.

Explanation about the Appropriate Use of the Business Forecast and Other Noteworthy Points

  • The business forecasts are based on information currently available to Daikin Industries, Ltd. (the "Company") and certain assumptions that are deemed reasonable. Actual results may differ significantly from these forecasts. For the basis of presumption of the business forecast and the notes on its use, please refer to "(4) Business Forecast for the Future" of "1. Overview of Operating Results, etc."
  • The Company plans to hold a briefing on business results for institutional investors and analysts on Wednesday, May 11, 2022. Documents and materials distributed in this briefing will be posted on the Company's website by the time that the briefing starts.

Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2022 (J-GAAP)

Content of Attachment

1. Overview of Operating Results, etc...........................................................................................................

2

(1)

Overview of Operating Results for the Fiscal Year Ended March 31, 2022..........................................

2

(2)

Overview of Financial Position for the Fiscal Year Ended March 31, 2022 .........................................

4

(3)

Overview of Cash Flows for the Fiscal Year Ended March 31, 2022....................................................

5

(4)

Business Forecast for the Future ...........................................................................................................

5

(5)

Basic Policy on Profit Distribution and Dividends for the Fiscal Year Ended March 31, 2022, and

the Fiscal Year Ending March 31, 2023 ................................................................................................

6

2. Basic Stance Regarding Choice of Accounting Standards ........................................................................

6

3. Consolidated Financial Statements and Primary Notes .............................................................................

7

(1)

Consolidated Balance Sheet ..................................................................................................................

7

(2)

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...............

9

(Consolidated Statement of Income)..................................................................................................

9

(Consolidated Statement of Comprehensive Income)......................................................................

10

(3)

Consolidated Statement of Changes in Equity ....................................................................................

11

(4)

Consolidated Statement of Cash Flows ...............................................................................................

13

(5)

Notes to Consolidated Financial Statements .......................................................................................

15

Notes on the Premises of the Company as a "Going Concern"...........................................................

15

Changes in Accounting Policies ..........................................................................................................

15

Additional Information........................................................................................................................

15

Segment Information, etc. ...................................................................................................................

16

Per Share Information .........................................................................................................................

20

Significant Subsequent Events ............................................................................................................

20

- 1 -

Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2022 (J-GAAP)

1. Overview of Operating Results, etc.

(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2022

In the fiscal year ended March 31, 2022 (fiscal 2021), economic activities continued to resume in various countries in conjunction with rising vaccination rates, but the overall world economy grew slowly due to resurgences of the coronavirus (COVID-19), disruptions to logistics networks, and the rising prices of goods, including energy prices. In the U.S. economy, despite the resurgence of infections and growing inflationary pressure, economic policies proved successful, and the economic climate was strong. In the European economy, household demand rapidly recovered due to the resumption of economic activities following vaccination progress. However, from autumn onward, the number of infections rose again, and the prices of goods climbed, slowing the pace of demand growth. The economies of Asia and emerging countries were affected by infection trends and activity restriction measures, and while economic conditions varied from country to country, the regional economies saw only a gradual recovery overall. The Chinese economy saw an increase in exports and new infrastructure investment by the government during the first half of the fiscal year, but a resurgence of COVID-19 in the second half of the fiscal year resulted in the government putting severe activity restrictions in place that exerted downward pressure on personal consumption, and the economy experienced a slowdown. The growth of the Japanese economy stagnated due to sluggish service consumption caused by the spread of infections as well as the decrease in production due to supply constraints.

In such a business environment, the Daikin Group responded flexibly and speedily to changes in the environment and strove to improve profitability with an "aggressive" and "challenging" mindset that anticipates future changes and is grounded in a lean, robust management structure. Specifically, we worked to build a flexible production and supply system that can respond to changes in demand, increase market shares by expanding sales of new products that meet new needs, implement total cost reductions such as material substitution from copper to aluminum in response to soaring raw material prices, promote sales price policies by introducing differentiated products that are recognized for their value by the market and customers, reduce fixed costs, and improve logistics efficiency.

In addition, we formulated the strategic management plan "Fusion 25" with a target year of the fiscal year ending March 31, 2026, and implemented initiatives based on nine key themes, including the three growth strategy themes of the "Challenge to achieve carbon neutrality," "Promotion of solutions business connected with customers," and "Creating value with air."

The Daikin Group's net sales increased by 24.7% year over year to ¥3,109,106 million for the fiscal year under review. As for profits, operating profit increased by 32.6% to ¥316,350 million, ordinary profit increased by 36.3% to ¥327,496 million, and profit attributable to owners of parent increased by 39.3% to ¥217,709 million.

Operating results by business segment are as follows:

(i) Air-Conditioning and Refrigeration Equipment

Overall sales of the Air-Conditioning and Refrigeration Equipment segment increased by 24.4% year over year to ¥2,828,499 million. Operating profit increased by 26.6% to ¥282,404 million.

In the Japanese commercial air-conditioning equipment market, while the impact of COVID-19 remained, industry demand recovered in comparison to the previous fiscal year, when the market suffered a major drop, and resulted in year-over-year growth. The Group reinforced product appeal by launching new products, such as the "VRV" and "SkyAir" series, that respond to the air conditioning industry's issue of a shortage of installation engineers by simplifying construction work and ensuring consistent construction quality. We also issued proposals for improving environments to tackle customers' air-related problems by combining the Group's ventilation and disinfection products, such as the "Heat Reclaim Ventilator" total heat exchanger unit and the "Commercial Streamer Air Purifier," with air-conditioning systems. As a result of the product lineup reinforcement and proposal expansion, net sales of commercial air-conditioning systems increased year over year.

In the Japanese residential air-conditioning equipment market, industry demand declined year over year due to the effects of the long rains and cool temperatures during the summer season, together with the subsiding of pent-up demand from people staying at home. The Group enhanced product appeal by launching a new model of the room air conditioner "Urusara X," which is equipped with proprietary functions such as waterless humidification, air supply ventilation, and exhaust ventilation, and by performing a model change for the room air conditioner "risora" with close attention paid to design. Air purifiers continued to enjoy solid demand, and we reinforced our product lineup with the launch of a new "UV Streamer Air Purifier," which combines the Daikin Group's proprietary Streamer air purification technologies with deep ultraviolet (UVC) LEDs and whose high wavelengths are effective at controlling viruses and bacteria. As a result of these efforts, net sales of residential air-conditioning systems increased year over year.

In the Americas, there was a period in the previous fiscal year when supply capacity was affected due to the spread of COVID-19 and partial shutdown of factories. In the fiscal year under review, however, despite the labor shortages and parts supply problems across North America, the Group steadily increased both production and sales as a result

- 2 -

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Daikin Industries Ltd. published this content on 20 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2022 06:34:02 UTC.


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Sales 2023 3 508 B 26 425 M 26 425 M
Net income 2023 252 B 1 897 M 1 897 M
Net cash 2023 166 B 1 251 M 1 251 M
P/E ratio 2023 27,9x
Yield 2023 0,91%
Capitalization 7 027 B 52 934 M 52 934 M
EV / Sales 2023 1,96x
EV / Sales 2024 1,84x
Nbr of Employees 88 698
Free-Float 91,7%
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Masanori Togawa Director & Managing Executive Officer
Koichi Takahashi GM-Accounting, Finance & Manager-Budget
Noriyuki Inoue Director
Takashi Matsuzaki Senior Managing Executive Officer
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