Member, Financial Accounting Standards Foundation
Brief Report on the Settlement of Accounts (Consolidated) for the Business Year Ended March 31, 2021 (J-GAAP)
May 11, 2021 | |||||||||
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, 2021 | |||||||||
Planned date of start of dividend payment: | June 30, 2021 | ||||||||
Planned date of the filing of securities report: | June 29, 2021 | ||||||||
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, 2021 | |||||||||
(From April 1, 2020, to March 31, 2021) | |||||||||
(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, 2021 | 2,493,386 | -2.2 | 238,623 | -10.1 | 240,248 | -10.7 | 156,249 | -8.5 | |
March 31, 2020 | 2,550,305 | 2.8 | 265,513 | -3.9 | 269,025 | -2.9 | 170,731 | -9.7 |
Note: Comprehensive income was ¥284,851 million (288.5%) for the fiscal year ended March 31, 2021, and ¥73,322 million (-56.8%) for the fiscal year ended March 31, 2020.
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, 2021 | 533.97 | 533.66 | 10.1 | 8.1 | 9.6 |
March 31, 2020 | 583.61 | 583.22 | 12.0 | 10.0 | 10.4 |
(Reference) Equity in earnings of affiliates was ¥7 million for the fiscal year ended March 31, 2021, and ¥166 million for the fiscal year ended March 31, 2020.
(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, 2021 | 3,239,662 | 1,698,495 | 51.4 | 5,691.85 |
As of March 31, 2020 | 2,667,512 | 1,462,591 | 53.8 | 4,904.46 |
(Reference) Equity capital was ¥1,665,688 million as of March 31, 2021, and ¥1,434,968 million as of March 31, 2020.
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2021 (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, 2021 | 374,691 | (159,666) | 98,942 | 662,267 |
March 31, 2020 | 302,166 | (156,187) | (169,933) | 321,151 |
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, 2020 | ― | 80.00 | ― | 80.00 | 160.00 | 46,811 | 27.4 | 3.3 | ||
March 31, 2021 | ― | 80.00 | ― | 80.00 | 160.00 | 46,822 | 30.0 | 3.0 | ||
Fiscal Year ending | ― | ― | ||||||||
March 31, 2022 | 90.00 | 90.00 | 180.00 | 29.8 | ||||||
(forecast) | ||||||||||
3. Consolidated Business Forecast for the Fiscal Year Ending March 31, 2022
(From April 1, 2021, to March 31, 2022)
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 | 1,450,000 | 18.0 | 163,000 | 23.8 | 163,000 | 23.6 | 107,000 | 26.5 | 365.63 | |
Full year | 2,750,000 | 10.3 | 270,000 | 13.1 | 270,000 | 12.4 | 177,000 | 13.3 | 604.83 |
*Notes
-
Changes in Significant Subsidiaries during the Period: None
(Changes in specified subsidiaries resulting in change in scope of consolidation) - Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement
- Changes in accounting policies relating to revisions to accounting standards, etc.: None
- Changes in accounting policies other than (i) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Number of Shares Issued (common stock)
- Number of shares issued at end of period (including treasury shares)
As of March 31, 2021 | 293,113,973 shares |
As of March 31, 2020 | 293,113,973 shares |
(ii) Number of treasury shares at end of period | |
As of March 31, 2021 | 469,595 shares |
As of March 31, 2020 | 529,837 shares |
- Average number of shares outstanding during the period
Fiscal Year ended March 31, 2021 | 292,620,665 shares |
Fiscal Year ended March 31, 2020 | 292,546,158 shares |
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2021 (J-GAAP)
(Reference) Summary of Non-Consolidated Business Results for the Fiscal Year Ended March 31, 2021 (From April 1, 2020, to March 31, 2021)
(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, 2021 | 563,243 | -4.3 | 35,675 | -33.8 | 100,673 | -34.3 | 87,720 | -38.4 |
March 31, 2020 | 588,263 | 3.2 | 53,897 | 10.6 | 153,255 | 8.2 | 142,518 | 15.1 |
Earnings per share | Diluted earnings | |||||||
per share | ||||||||
Fiscal Year ended | Yen | Yen | ||||||
March 31, 2021 | 299.77 | 299.60 | ||||||
March 31, 2020 | 487.16 | 486.84 | ||||||
(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, 2021 | 1,683,011 | 924,161 | 54.8 | 3,151.01 | ||||
As of March 31, 2020 | 1,420,493 | 843,497 | 59.2 | 2,876.43 |
(Reference) Equity capital was ¥922,141 million as of March 31, 2021, and ¥841,611 million as of March 31, 2020.
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 (conference call) for institutional investors and analysts on Wednesday, May 12, 2021. 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, 2021 (J-GAAP)
Content of Attachment | ||
1. Overview of Operating Results, etc........................................................................................................... | 2 | |
(1) | Overview of Operating Results for the Fiscal Year Ended March 31, 2021.......................................... | 2 |
(2) | Overview of Financial Position for the Fiscal Year Ended March 31, 2021 ......................................... | 4 |
(3) | Overview of Cash Flows for the Fiscal Year Ended March 31, 2021.................................................... | 4 |
(4) | Business Forecast for the Future ........................................................................................................... | 5 |
(5) | Basic Policy on Profit Distribution and Dividends for the Fiscal Year Ended March 31, 2021, and | |
the Fiscal Year Ending March 31, 2022 ................................................................................................ | 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 Presentation Methods ....................................................................................................... | 15 | |
Additional Information........................................................................................................................ | 15 | |
Segment Information, etc. ................................................................................................................... | 16 | |
Per Share Information ......................................................................................................................... | 20 | |
Significant Subsequent Events ............................................................................................................ | 20 |
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Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2021 (J-GAAP)
1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2021
In the fiscal year ended March 31, 2021 (fiscal 2020), the overall world economy slowed significantly as economic activity stagnated due to the global spread of the coronavirus (COVID-19).While some countries saw a recovery, there were also regions where the infection spread again, prolonging the impact of the disease. Although the U.S. economy slowed due to a decline in personal consumption in the first half of the period, it showed signs of recovery from the second half of the period as government economic measures and strong online sales provided support for consumption. The European economy was supported by recovery of exports, despite the continued slowdown in personal consumption due to prolonged restrictions on activities. In the economies of Asia and emerging countries, domestic demand was sluggish due to restrictions on activities, but there were signs of economic recovery, helped by gains in exports and government spending. The Chinese economy continued a recovery trend from quick resumption of economic activities and increases in exports and government infrastructure investment in the information and telecommunication and energy sectors. The Japanese economy, despite export gains to China and recovering production activities, experienced downward pressure from sluggish personal consumption.
In such a business environment, the Daikin Group launched cross-divisional projects, and focused on dealing with the COVID-19 pandemic in terms of business operations, including production, procurement, and sales. In particular, the Group worked to develop and launch new products related to air quality, such as air purifiers and ventilation products, by capitalizing on the growing awareness for the safety and assurance of indoor air quality and air environments. In addition, the Group worked to maintain its product supply system despite procurement being impacted from the sales networks, production sites, and suppliers in each country. Although market environments vary according to country and region, sales are returning to a recovery trend, particularly in residential air- conditioning equipment.
In addition, the Daikin Group set "Accelerating Our 3 Structures of Collaborative Innovation, Let Us Win in this Era of Change" (3 Structures of Collaborative Innovation: Collaborative Innovation with Customers, Collaborative Innovation with External Bodies, and Collaborative Innovation within the Group) as the slogan for its Annual Group Policy for 2020. The Group made efforts to strengthen sales and marketing capabilities; foster new product development; build flexible production and procurement systems; improve quality; enhance human resources capabilities; and reduce both fixed and variable costs in each region around the world.
The Daikin Group's net sales decreased by 2.2% year over year to ¥2,493,386 million for the fiscal year under review. As for profits, operating profit decreased by 10.1% to ¥238,623 million, ordinary profit decreased by 10.7% to ¥240,248 million, and profit attributable to owners of parent decreased by 8.5% to ¥156,249 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 decreased by 1.5% year over year to ¥2,273,821 million. Operating profit decreased by 5.5% to ¥223,110 million.
In the Japanese commercial air-conditioning equipment market, industry demand declined, particularly in the market for stores, due to the spread of COVID-19. As air quality needs rose for ventilation and disinfection, the Daikin Group expanded its proposals for air environments using systems that combine air-conditioning equipment and ventilation equipment. This includes the launch of new products in the lineup of "Heat Reclaim Ventilator," high- performance ventilation equipment that can ventilate a room without affecting the room's temperature. The Group strengthened its efforts to convey its value to the market in order to meet expectations as an air-conditionermanufacturer, such as by developing "untact" sales utilizing online activities, stimulating demand through advertising focused on ventilation and disinfection, and opening an "Air Consultation Service" to directly answer customer concerns. However, net sales of commercial air-conditioningsystems were lower year over year due to factors including reduced demand.
In the Japanese residential air-conditioning equipment market, industry demand for both room air conditioners and air purifiers exceeded the previous fiscal year because of demand for additional purchases of air conditioning equipment due to changes in residential applications including remote work, as well as growth in demand for home appliances due to people spending more time at home. The Group responded to market needs by launching a series of high value-added products utilizing proprietary technologies, such as the Streamer disinfection unit, waterless humidification, and room air conditioner air supply ventilation, including the room air conditioners "Urusara X" and "Ururu Sarara Air Purifier." Additionally, despite disruptions to its supply chain caused by COVID-19, the Group worked to maintain a stable supply system and increased sales. Through these efforts, the Group's net sales of residential air-conditioningsystems increased year over year.
In the Americas, net sales decreased year over year as a whole due to the impact from the spread of COVID-19. Residential air-conditioning systems received a positive effect on demand from more time spent at home and greater
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Daikin Industries Ltd. published this content on 21 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2021 07:32:06 UTC.