DAIKIN INDUSTRIES, LTD. Daikin Industries, Ltd.
Q1 Financial Results Briefing for the Fiscal Year Ending March 2024
August 8, 2023
Event Summary
[Company Name] | Daikin Industries, Ltd. | |
[Company ID] | 6367-QCODE | |
[Event Language] | JPN | |
[Event Type] | Earnings Announcement | |
[Event Name] | Q1 Financial Results Briefing for the Fiscal Year Ending March 2024 | |
[Fiscal Period] | FY2024 Q1 | |
[Date] | August 8, 2023 | |
[Number of Pages] | 26 | |
[Time] | 16:00 - 16:55 | |
(Total: 55 minutes, Presentation: 13 minutes, Q&A: 42 minutes) | ||
[Venue] | Webcast | |
[Number of Speakers] | 2 | |
Kota Miyazumi | Executive Officer, | |
Responsible for Corporate Communication | ||
Kazuhiro Matoba | Head of Investor Relations Management | |
Group, Corporate Communication Office | ||
[Analyst Names]* | Tsubasa Sasaki | Mitsubishi UFJ Morgan Stanley Securities |
Yuichiro Isayama | Goldman Sachs | |
Yoshinao Ibara | Morgan Stanley MUFG Securities | |
Graeme McDonald | Citigroup Global Markets | |
Kentaro Maekawa | Nomura Securities |
*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A or whose questions were read by moderator/company representatives.
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Presentation
Sakamoto: We will now begin the presentation of Daikin Industries, Ltd.'s financial results for Q1 of the fiscal year ending March 31, 2024. Thank you for taking time out of your busy schedule to join us today.
The explanatory material is available on the Company's website under investor relations.
Today's two speakers are Kota Miyazumi, Executive Officer, Responsible for Corporate Communication, and Kazuhiro Matoba, Head of Investor Relations Management Group, Corporate Communication Office.
I, Sakamoto, of the Investor Relations Management Group, will be the facilitator. Thank you for your cooperation.
Mr. Miyazumi will begin today's session with overview of the financial results, followed by a question-and- answer session. The end time is scheduled for 17:00.
Now, Executive Officer Miyazumi, please.
Miyazumi: My name is Miyazumi. Thank you for taking time out of your busy schedule to attend today's financial results briefing.
I will explain the Q1 financial results in accordance with the document.
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2
See page two. This is a summary of the Q1 financial results.
Both net sales and operating profit exceeded those of the previous year on a real basis, excluding the effect of foreign exchange rates, and the Daikin achieved its highest-ever performance.
The business environment in Q1 was very challenging, with sluggish demand in various regions, including the residential market in the Americas and the heat pump heating market in Europe. However, we were able to achieve our internal plan for the Q1 results by strengthening our profitability by strengthening proposals for products and services that contribute to carbon neutrality and energy conservation, expanding our solutions business, thoroughly implementing strategic selling price measures, and reducing cost of sales and fixed costs.
Foreign exchange rates were JPY 137 against the US dollar, JPY 149 against the euro, and JPY 19.6 against the Chinese yuan. Foreign exchange effects versus the previous year had a positive impact of JPY 36 billion on net sales and JPY 3 billion on operating profit.
We expect demand recovery to be delayed in Q2 and beyond, and the severe business environment is expected to continue. However, Daikin will aim to achieve its annual plan by accelerating efforts on priority themes and strengthening and expanding measures in response to changes in the environment.
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3
See page three. These are the results by business segment.
In the air conditioning business, net sales and operating profit increased due to expanded sales in China and Asia, as well as efforts to expand sales of differentiated products and services in Japan, the Americas, and Europe by identifying relatively strong markets.
The chemicals business maintained its profit growth trend by striving for sales to the semiconductor market, despite being severely affected by the slowdown in demand.
Foreign exchange rates had a positive impact of JPY 34.1 billion on net sales and JPY 1.9 billion on operating profit in the air conditioning business, and a positive impact of JPY 1.9 billion on net sales and JPY 1.1 billion on operating profit in the chemicals business.
The status of each business and the regional status of the air conditioning business will be explained later.
Support | |||
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Tollfree | 0120.966.744 | Email Support | support@scriptsasia.com |
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Disclaimer
Daikin Industries Ltd. published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 02:50:09 UTC.
