09 02-12 daikin results-q1

Presentation of Financial Resultsfor the First Quarter in June 2012

August 7, 2012

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Table of Contents

Financial Results for the First Quarter in June 2012　-Summary of First Quarter Financial Results・・・・・・・・・・・・・・・・・・P.3

　-Results by Segments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P.4-12　　　・First Quarter Sales and Operating Income by Division　　　・Sales by region: Air-conditioning Business, Chemicals　　　・Overall First Quarter Divisional Performance

33

■Summary of First Quarter Financial Results

*Effects of FX (Year on year)　On sales: ▲11.5 billion yenOn Operating Income: ▲2.0 billion yen

*Numerical values for forecast results in the first half and the fiscal year remain unchanged.

○Sales grew in China from expansion of the sales network throughout China and sales promotion of ourflagship products.

○In Asia, a bullish market was seen in countries such as Singapore, India, and Vietnam.　 In particular, reconstruction demand grew significantly in the dynamic market of Thailand.○In Japan, sales promotion of energy-saving products centering on commercial use advanced due to　　　 an upsurge in demand for electric power conservation.

In a severe business environment that included stagnant demand in Europe and appreciation of the yen, both revenue and profits increased.

<Reference>(Unit:billion yen)

FY11 FY12 Y/y changes 1H Y/y changes Total Y/y changes

Net Sales 297.7 313.8 105% 700.0 113% 1380.0 113%Operating Income 20.4 22.3 109% 55.0 115% 100.0 123%(Percentage of income to net sales) (6.9%) (7.1%) (7.9%) (7.2%)Ordinary Income 20.8 20.0 96% 54.0 116% 97.0 119%(Percentage of income to net sales) (7.0%) (6.4%) (7.7%) (7.0%)Net Income 12.5 11.4 92% 31.0 110% 53.0 129%(Percentage of income to net sales) (4.2%) (3.6%) (4.4%) (3.8%)

FX rateYen/1USD ¥82 ¥80 ―Yen/1EUR ¥117 ¥103 ―

¥80¥105

1Q(Apr.-Jun.) FY2012　Forecast

44

■First Quarter Sales and Operating Profit by Division

(Unit:billion yen)

FY2011 FY2012 FY20121Q Result 1Q Rusult Forecast

Sales 297.7 313.8 105% 1,380.0 113%Operating Income 20.4 22.3 109% 100.0 123%(Percentage of income to net sales) (6.9%) (7.1%) (7.2%)

Sales 259.5 278.7 107% 1,170.0 112%Operating Income 16.6 18.6 112% 75.5 125%(Percentage of income to net sales) (6.4%) (6.7%) (6.5%)

Sales 30.9 27.2 88% 160.0 120%Operating Income 4.3 4.1 93% 23.0 114%(Percentage of income to net sales) (14.0%) (14.9%) (14.4%)

Sales 7.3 7.9 109% 50.0 113%Operating Income ▲ 0.5 ▲ 0.4 ー 1.5 176%(Percentage of income to net sales) ― ― (3.0%)

Y/yChanges

Y/ychanges

Others

Total

Air-Conditioning

Chemicals

55

■Sales by Region: Air-conditioning Business

<Reference>Published in May

※Year-on-year sales in local currency　　　　　 FY2012 1Q FY2012 Forecast　　Europe 83% 105% 　China 160%　 119%America 113% 110%

Unit:Billion yen

Japan 101% 93.2 84% 78.0 103% 80.6 119% 95.6 105% 100.4 108% 420.0

Europe 79% 88.3 68% 59.7 96% 57.6 106% 60.8 73% 44.4 101% 195.0

China 124% 30.7 70% 21.4 145% 31.0 120% 37.1 161% 59.8 123% 230.0

Asia 126% 27.7 70% 19.4 126% 24.4 123% 30.2 109% 32.7 121% 136.0

America 98% 24.0 82% 19.7 103% 20.2 107% 21.7 110% 23.9 111% 105.0

Oceania 111% 10.7 77% 8.2 113% 9.3 86% 8.0 92% 7.4 118% 40.0

Middle east 149% 6.4 50% 3.2 142% 4.5 103% 4.7 181% 8.5 149% 37.0

Africa 106% 1.9 126% 2.4 81% 1.9 80% 1.6 99% 1.5 102% 7.0

Total 98% 282.9 75% 212.0 108% 229.5 113% 259.5 107% 278.7 112% 1,170.0

Overseas Sales ratio 67% 63% 65% 63% 64% 64%

FX rate(USD/Yen) ¥105 ¥97 ¥92 ¥82 ¥80 ¥80(EUR/Yen) ¥163 ¥133 ¥117 ¥117 ¥103 ¥105

FY12 ForcastFY09 1QFY08 1Q FY10 1Q FY11 1Q FY12 1Q

Due to the change in the accounting period in China (Daikin China), 2011 1Q (January-March period) and 2012 1Q (April-June period) are compared for sales. Reference: The year-on-year comparison at Daikin China on a local currency basis is 113% for the comparative periods of 2011 April-June and 2012 April-June.

*

*

*

66

■Sales by Region: Chemicals

<Reference>Published in May

※Year-on-year sales in local currency　　　　　　　FY2012 1Q　　 FY2012 ForecastAmerica　　　125% 130%China　　　　　 83% 140%Europe　　　 110%　　　　　　120%

Unit:Billion yen

Japan 105% 12.1 53% 6.4 157% 10.1 116% 11.7 83% 9.8 108% 52.0

America 105% 7.7 60% 4.6 146% 6.7 86% 5.8 123% 7.1 131% 40.0

Asia 123% 2.4 63% 1.5 156% 2.3 182% 4.3 54% 2.3 107% 16.0

China 121% 3.3 61% 2.0 182% 3.7 165% 6.0 83% 5.0 143% 38.0

Europe 113% 2.9 46% 1.3 172% 2.3 124% 2.9 98% 2.8 122% 14.0

Others 753% 0.2 142% 0.3 87% 0.2 123% 0.3 72% 0.2 －－

Total 110% 28.5 57% 16.1 157% 25.4 122% 30.9 88% 27.2 120% 160.0

Overseas sales ratio 58% 60% 60% 62% 64% 68%

FX rate(USD/Yen) ¥105 ¥97 ¥92 ¥82 ¥80 ¥80

(EUR/Yen) ¥163 ¥133 ¥117 ¥117 ¥103 ¥105

FY10 1Q FY12 ForecastFY09 1QFY08 1Q FY11 1Q FY12 1Q

77

■Overall First Quarter Divisional Performance (Air-Conditioning Business)

JapanJapanJapan

＜Unit Shipment of AC for the entire Japanese market, Daikin＞

・A slow recovery was seen for capital investments and construction starts, and industry demand exceededthe previous year for commercial use due to a greater need for electric power conservation.Industry demand for residential use grew on par due to the impact of unseasonable weather and reversal 　

　from the previous year in which shipments significantly increased due to the need for electric power 　　　　　　conservation.

・New high energy-saving products such as the 『Ururu Sarara R Series』, which provides energy savings and　comfort for sensible temperature through humidity control, and 『RakuAir』, which pursues comfort and ease　of use with its remote controller, were promoted for residential use because of their high added value.　Electric power conservation events are being executed in principle cities and at mass retailer stores, and　sales promotion measures are being developed to maximize demand for energy-saving air conditioners.・Shipments increased from a tailwind provided by the July heat wave.

・Centering on factories and hospitals, sales 　　　promotion significantly increased for new 　　　　differentiated, energy-saving products 　　　　　　(such as 『Eco-ZEAS80』 and 『Ve-upⅣ』).

　Proposal sales are also being maintained from 　Daikin proprietary solutions such as those for 　electric power conservation.

(1000units) 1Q Results Y/y FY12 Forecast Y/yMarket 2,788 98% 7,300 88%Daikin － 99% － 104%Market 206 103% 800 97%Daikin － 109% － 102%Market 110 84% 470 94%Daikin － 77% － 106%

100.4 105% 420.0 108%Sales(billion yen)

Eco-cute

Residential

Commercia

88

EuropeEuropeEurope

＜Increase ratio of sales units in Europe（volume-based ）＞

※SKY・・・Middle or compact size package air conditioners※VRV・・・Multi-split system for building※The forecast of Applied is based on local currency

・In the continuation of severe conditions due to renewed anxiety of a financial crisis and waning consumerconfidence, sales centering on residential use especially decreased in Italy and Spain.In the U.K. and Central Europe, conditions were bullish from meticulous dealer follow-up and development

　of sales activities development.・Sales for residential use recovered from a tailwind provided from higher temperatures in the latter half of

June.・Despite market stagnation, the heating business exceeded the previous year due to strengthening of the 　　sales and the after sales service structure as well as from sales promotion using the ROTEX sales channel.

(including Turkey, the Middle and Near East, and Africa)

・To respond to the middle-term stagnation of demand, 　　efforts are being made to ensure profits by continuing 　structural reforms, including reduction of fixed costs 　　　and review of indirect operations, in addition to 　　　　　　developing sales promotion measures.

・Business significantly expanded in Turkey due to the 　　synergy of a local air conditioning manufacturer 　　　　　acquired last year and reorganization of the sales 　　　　network.　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Even in the Middle and Near East, sales grew 　　　centering on commercial use.


Market Daikin97% 101%

SKY 101% 102%VRV 101% 110%

88% 115%95% 96%

54.5 81% 239.0 106%83% 105%

１QResults

63%Residential83%102%102%95%

Sales(billion yen)Local currency

FY12

Applied

Commercilal

Heating

(Y/y change)

99

ChinaChinaChina

＜ Increase ratio of sales units in China（volume-based ）＞


・In large cities, demand was sluggish for large-scale real estate and new building projects, but demand 　　　　　increased in surrounding urban areas as well as Midwestern and interior areas with sales growing from the　strengthening of the sales network throughout China.

・For residential use, authorized sales dealers for residential use such as AIR SHOPs also expanded. 　　　　　　Sales grew from introduction of new products with China-specific specifications and sales promotion of 　　　　residential use multi-split type air conditioners.

・Sales expanded for Applied Systems (large-sized air conditioners) centering on centrifugal chillers and 　　　　　screw chillers.

・The new Suzhou Factory began operations in April. Together with the strengthening of the R&D Center 　　　　function, cost reductions were promoted by an integrated system of local development, procurement, and 　　　production.

2011 1Q (January-March period) and 2012 1Q (April-June period) are compared for sales. Reference: The year-on-year comparison for the periods of 2011 April-June and 2012 April-June is 113%(on a local currency basis).

2011 2Q months April-June and 2012 1Q months April-June are compared for sales conditions (on a unit basis).

※The comparative premise of each data item is different because of 　the change in accounting period for the subsidiaries of Daikin China.



SKY 102% 134%VRV 105% 111%

109% 117%59.8 161% 230.0 123%

160% 119%

116%118%107%122%

１QResults

FY12

Applied(Sales)

Commercila

(Y/y change)Residential


1010

Asia/OceaniaAsia/OceaniaAsia/Oceania

Australia103%

Thailand145%

Singapore109%

Vietnam158%

India121%

Indonesia145%

Australia101%

＜Sales of main countries in Asia, Oceania over the previous year　(Local Currency)＞

・Sales centering on commercial use were bullish for Singapore, and sales for Thailand grew 　　　　　　significantly due to reconstruction demand from the floods. ・Sales networks are being enlarged in emerging countries such as India and Vietnam where demand 　　　　continues to expand, and sales grew centering on residential use.・Full-fledged sales activities started for Indonesia from June with the establishment of a sales subsidiary. ・Although stagnant demand continues from the previous year for Australia, efforts are being made for 　　　　recovery by strengthening dealer follow-up leading up to the peak season and restructuring the sales 　　　network.


1111

North AmericaNorth AmericaNorth America

＜ Increase ratio of sales units in North America （volume-based ）＞


・Although demand stagnated in the market environment for the Applied Systems, sales grew by increasingthe sales promotion of new chiller products that are high in energy efficiency and expanding the after salesservice business.

・In addition to enlargement of a new sales network, ductless largely exceeded the previous year by　　　　　　　nullifying any insufficiency in parts supply from the impact of last year’s earthquake in Japan and the 　　　　　flooding in Thailand.



SKY 110% 156%VRV 127% 127%

102% 106%

23.9 110% 105.0 111%113% 110%

212%403%110%112%

１QResults

FY12

Applied(Sales)

Commercial

(Y/y change)Residential


1212

＜ Demands by Products（Sales)＞

・Sales declined year-on-year from the worsening market environment seen by the lethargic semiconductor　market in Japan and Asia, the lower demand in China from January to March, and the lower demand for 　　liquid crystal related products and fluorocarbon gas.　However, efforts were made to ensure greater profitability by sales promotion of highly-profitable products,　cost reduction incorporating the softening of market conditions, and comprehensive measures to maintain　pricing. ・Demand fell in China from the decline in infrastructure investments, such as for railways and electric power 　facilities, and from the slump in exports.・In America, sales were steady for polymers and fluoroelastomers for the automotive and LAN cable markets. ・Sales largely declined for fluorocarbon gas due to price reductions accompanying the softening in market 　　conditions for raw materials and the impact of reduced demand.・Sales increased for the highly profitable product 『OPTOOL』 (surface anti-fouling agent used for displays 　　such as for smartphones) for the new fall products being launched by mobile phone manufacturers. ・Daikin is aiming for increased revenue and profits by application development in environmental fields and 　　acceleration in the development of volume zone products for polymers and fluoroelastomers.

■Overall First Quarter Divisional Performance (Chemical Business)

Market DaikinFor all fluorochemical products 104% 120%

Fluorocarbon Gas 78% 75%Polymers&Fluoro-elastmers 105% 127%Fine Chemicals etc ― 128%

27.2 88% 160.0 120%88% 119%

88%43%107%90%


FY12(Y/y changes)

１QResults

　Notes on forecast　○This data is compiled for informational proposes and is not to be construed as a solicitation of any action.　　 This data (includes management plan) was compiled by Daikin Industries., Ltd. (the Company) based on reliable

information available at the time of compilation. It may include some risks and uncertainties. The Company is not responsible for its accuracy or completeness.

　○The Company asks for your own discretion in using this data. The Company accepts no liability for any loss or damage of any kind arising out of judgment for investment made solely relying on the business forecast or targetfigures described in the data.

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