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Presentation of Financial Results for the First Quarter Ended in June 2026 August 4, 2026
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2 Table of Contents Ⅰ. FY2026 Q1 Financial Results・・・・・・・・・・p. 3 Ⅱ. Business and Regional Overview・・・・・・・ p. 7 Ⅲ. FUSION 30 Progress・・・・・・・・・・・・・ p. 15 Ⅳ. Reference Information・・・・・・・・・・・・・p. 22
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3 Table of Contents Ⅰ. FY2026 Q1 Financial Results・・・・・・・・・・p. 3 Ⅱ. Business and Regional Overview・・・・・・・ p. 7 Ⅲ. FUSION 30 Progress・・・・・・・・・・・・・ p. 15 Ⅳ. Reference Information・・・・・・・・・・・・・p. 22
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4 Ⅰ. Summary of Financial Results FX Effect (YoY) Net Sales +116.5 billion yen Operating Profit +5.5 billion yen Daikin achieved record highs in both net sales and operating profit. However, operating profit margin declined 0.8 percentage points year on year. ✓ Operating profit increased year on year, bolstered by yen depreciation and U.S. tariff refunds. While cost increases exceeded our initial estimates due to the Middle East situation, depreciation of emerging-market currencies, additional U.S. tariffs, and higher raw material prices, we responded by expanding sales of high value-added products, implementing pricing strategies, and thoroughly pursuing total cost reductions across the business. ✓ Operating profit margin declined, as cost increases exceeded our initial estimates, and we were unable to fully absorb those increases during the first quarter. ✓ Beginning in the second quarter, we will focus on improving margins. In line with the strategic management plan FUSION 30, we will drive growth in high-profit domains and build a more resilient profit structure. At the same time, we will strengthen competitiveness and earning power through initiatives that include enhancing sales capabilities and implementing pricing strategies. (billion yen) FY2025 FY2026 YoY Net Sales 1,213.8 1,426.8 118% Operating Profit 121.3 130.6 108% (%) (10.0%) (9.2%) Ordinary Profit 118.9 120.8 102% (%) (9.8%) (8.5%) Profit Attributable to Owners of Parent 81.5 80.1 98% (%) (6.7%) (5.6%) USD/JPY ¥145 ¥159 EUR/JPY ¥164 ¥185 RMB/JPY ¥20.0 ¥23.4 Q1 Results YoY Results Excluding FX Effect Net Sales 108% Operating Profit 103%
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5 Ⅰ. Financial Results by Segment FX Effect (YoY) Air Conditioning and Refrigeration Equipment Chemicals Net Sales +109.4 billion yen +7.0 billion yen Operating Profit +4.3 billion yen +1.2 billion yen YoY Results Excluding FX Effect Air Conditioning and Refrigeration Equipment Chemicals Net Sales 107% 117% Operating Profit 99% 157% ✓ Air Conditioning and Refrigeration Equipment Business: Net sales and operating profit increased, bolstered in part by favorable foreign exchange rates. Operating profit margin declined by 1.2 percentage points. Profitability improved in Japan and Europe through the expansion of high value-added products. In China, we maintained high profitability by concentrating resources on sales of residential multi-split air conditioners. Profitability fell in the Americas and Asia. ✓ Chemicals Business: Net sales and operating profit increased significantly. Operating profit margin improved by 3.9 percentage points. Profitability improved through expanded sales of high-profit products for semiconductor and data center applications. (billion yen) FY2025 FY2026 YoY Net Sales 1,213.8 1,426.8 118% Operating Profit 121.3 130.6 108% (%) (10.0%) (9.2%) Net Sales 1,132.7 1,325.1 117% Operating Profit 114.7 118.2 103% (%) (10.1%) (8.9%) Net Sales 59.9 77.2 129% Operating Profit 6.5 11.5 176% (%) (10.9%) (14.8%) Net Sales 21.2 24.6 116% Operating Profit 0.1 0.9 836% (%) (0.5%) (3.5%) *Air Conditioning and Refrigeration Equipment business includes filter business. Q1 Results Total Air Conditioning and Refrigeration Equipment Chemicals Others
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6 FY2025 1Q Results Foreign Exchange Raw Materials* Fixed Costs, etc. Sales Expansion Pricing Strategy Cost Reductions FY2026 1Q Results Total 121.3 +5.5 -38.0 -18.5 +17.8 +25.0 +17.5 130.6 Air Conditioning and Refrigeration Equipment 114.7 +4.3 -37.6 -18.3 +14.0 +24.3 +16.9 118.2 Chemicals 6.5 +1.2 -0.2 - +3.0 +0.4 +0.5 11.5 Others 0.1 - -0.2 -0.2 +0.8 +0.3 +0.1 0.9 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 (billion yen) Ⅰ. Analysis of Changes in Operating Profit - YoY *Includes direct U.S. tariff impact (-4.6 billion yen) ,U.S. tariff refunds (+10.5 billion yen), and logistic costs. *Air Conditioning and Refrigeration Equipment business includes filter business.
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7 Table of Contents Ⅰ. FY2026 Q1 Financial Results・・・・・・・・・・p. 3 Ⅱ. Business and Regional Overview・・・・・・・ p. 7 Ⅲ. FUSION 30 Progress・・・・・・・・・・・・・ p. 15 Ⅳ. Reference Information・・・・・・・・・・・・・p. 22
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8 Ⅱ. Air Conditioning and Refrigeration Equipment Japan Net sales were 117% year on year. We increased sales by strengthening sales and marketing capabilities, expanding sales of high value-added products, and implementing pricing strategies. ✓ Residential: Industry demand exceeded the previous year, supported by replacement demand ahead of stricter energy-efficiency standards and subsidies provided by local governments. To capture this demand, we strengthened user proposals centered on high value-added products, including Urusara X. ✓ Commercial: Industry demand remained firm in both light commercial and facilities applications, supported by increased investment in measures to address extreme heat, and exceeded the previous year. To capture this demand, we strengthened user proposals centered on high value- added products such as FIVE STAR ZEAS, which combines high energy efficiency with ease of installation, and VRV 7, which uses R32 refrigerant and delivers high energy efficiency. Q1 Results Market 123% Daikin 123% Market 107% Daikin 108% Market 89% Daikin 95% *Applied is based on total net sales. Applied YoY change (Volume basis) Residential Commercial
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9 Americas Ⅱ. Air Conditioning and Refrigeration Equipment Net sales in the Americas were 118% year on year. DNA（Residential Ducted/Ductless） Net sales were 112% year on year. Despite unrelenting inflation, persistently high mortgage interest rates, and economic uncertainty stemming from the Middle East situation, which hindered a recovery in demand, we expanded sales and increased market share in residential ducted systems through strengthening sales and marketing capabilities. ✓ Ducted Unitary for Houses: We focused on supporting existing dealers and developing new ones to boost sales and market share. For Fit, our premium environmental product, we strengthened our support system through dealer development initiatives and the provision of sales promotion tools. ✓ Ductless: Both the RA/SKY and VRV segments experienced a slowdown following the surge in demand ahead of changes to refrigerant GWP regulations. To contend with this, we expanded the RA/SKY product lineup and enhanced dealer training, while strengthening VRV sales activities through our sales reps. Net sales were 129% year on year. We expanded sales by strengthening supply capabilities and proposal capabilities to capitalize on robust demand in the data center market. ✓ Orders increased as we strengthened both supply capabilities and proposal capabilities for custom air handling units. ✓ In addition to expanding equipment sales by leveraging increased production capacity at our factories in the United States and Mexico, we strengthened the Solutions business through instrumentation and engineering companies. DAA（Applied） Q1 Results 118% 99% RA/SKY 83% VRV 76% DAA 117% *Applied is based on total net sales in local currency. *DNA: Daikin Comfort Technologies North America, Inc DAA: Daikin Applied Americas, L.L.C. Ductless YoY change (Volume basis) Ducted unitary for houses Applied (including Fit) DNA
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10 China Ⅱ. Air Conditioning and Refrigeration Equipment Net sales were 104% year on year. The business environment remained challenging, characterized by a real estate recession and weak consumer spending. To contend with this, we concentrated resources on direct-to-consumer sales, including support for PROSHOP specialty stores and enhancements to customer centers and live commerce. Operating profit margin remained at a high level through the expansion of high value-added products, reinforcement of our Solutions business, thorough cost reductions, and the lowering of fixed costs. ✓ Residential: In addition to offline retail sales, we focused on our unique sales approach that combines live streaming, web advertising, social media, and other online channels. In addition to expanding sales of system products, including air conditioners, ventilation systems, heat pump underfloor heating systems, and air quality sensors, we strengthened Residential Solutions by leveraging IoT and data analysis to propose optimal air quality tailored to each customer's lifestyle. ✓ Commercial: In response to the acceleration of carbon neutrality initiatives, we strengthened energy- saving Solutions proposals for government projects, factories, and green buildings. ✓ Applied: In addition to strengthening our repair and maintenance business, we enhanced proposals for energy-saving replacements. Q1 Results Residential 86% Commercial 88% Applied 87% YoY change (Local currency basis)
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11 Europe, Middle East, and Africa Ⅱ. Air Conditioning and Refrigeration Equipment Net sales in Europe were 123% year on year. We concentrated resources on expanding sales of high value-added products across the Residential, Commercial, and Heat Pump Heating businesses. Net sales in the Middle East were 109% year on year. We expanded residential sales in Turkey. In Saudi Arabia and the UAE, however, results were impacted by project delays and extended shipping lead times. ✓ Residential: Sales of mid-range to high-end models expanded, especially in France, Spain, and the U.K. where greater demand was seen due to heatwaves in the latter halves of May and June. ✓ Commercial: We strengthened proposal sales focused on environmental performance and energy savings, making products using R32 refrigerant a driver of growth. ✓ H/P Heating: Demand expanded due to rising gas prices and government electrification initiatives. To capture this demand, we focused on dealer development and strengthening of our service network, while expanding sales in France and Germany, where demand remained strong. ✓ Applied: Sales declined due to the impact of the Middle East situation. Nevertheless, we expanded sales of medium- and large-capacity chillers for data centers and expanded the After Sales Service business. ✓ Freezer and Refrigerator: We expanded sales of eco-friendly products by capturing the recovery in demand from the food retail sector. Q1 Results 99% SKY 107% VRV 109% 107% 90% 107% *Residential, commercial, and heat-pump heaters are only for Europe. *Applied, Refrigerator and Freezer are based on total net sales in local currency. Refrigerator and Freezer YoY change (Volume basis) Heat Pump Heaters Applied Residential Commercial
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12 Asia and Oceania YoY net sales of main countries (local currency basis) India: 128% Australia: 106% Malaysia: 96% Vietnam: 113% Thailand: 128% Indonesia: 110% Ⅱ. Air Conditioning and Refrigeration Equipment Net sales in Asia were 117% year on year. The business environment remained challenging due to weak consumer spending across the ASEAN countries and delays in large-scale projects caused by soaring prices and shortages of construction materials. Given these market conditions, Daikin strengthened dealer development and support while focusing on sales of mid-range to high-end models. Sales expanded, particularly in Thailand and India. Net sales in Oceania were 128% year on year. In Australia, sales expanded in both the Residential and Commercial businesses. ✓ Residential: We expanded sales of mid-range to high-end models through new product launches, dealer development activities, and strengthened sales promotion initiatives aimed at consumers. In India, we focused on expanding our sales network in regional cities, capturing the recovery in demand that began last year and driving sales growth. ✓ Commercial: Dealer development and training activities were strengthened, enabling us to expand sales in Thailand, India, and Australia. ✓ Applied: Sales grew for data center applications, where demand remained strong. We also focused on the After Sales Service business, including repair and maintenance. Q1 Results 125% SKY 107% VRV 112% 111% *Applied is based on total net sales in local currency. YoY change (Volume basis) Applied Residential Commercial
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13 *P&I: commercial-use dust collection systems such as for gas turbines and large-scale plants Filters Ⅱ. Air Conditioning and Refrigeration Equipment Net sales were 112% year on year. Sales expanded in resilient markets, including semiconductor-related markets in Japan and Asia. Favorable foreign exchange rates also contributed to net sales growth. ✓ Air Filter: In the United States, results were impacted by declining demand, particularly in the residential market. In Asia, we expanded sales to semiconductor-related markets and hospitals. ✓ P&I*: We expanded sales of high-margin products, including filters for gas turbines and specialized filters for oilfield applications.
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14 Ⅱ. Chemicals Net sales were 129% year on year. Sales expanded in key markets, including the semiconductor and ICT sectors. ✓ Fluorocarbon Gas：We leveraged pricing strategies in Japan and Europe. ✓ Polymers and Fluoroelastomers -Fluoropolymers: Sales of high-performance fluororesins for semiconductor manufacturing equipment increased significantly, supported by the recovery in demand. We also expanded sales through the development of FEP applications for LAN cables used in data centers. -Fluoroelastomers: Sales expanded in the semiconductor and automotive sectors across the Americas, China, and Asia. ✓ Fine Chemicals, Etc.: Sales expanded for etching agents used in semiconductor manufacturing processes, as well as for eco-friendly products for the textile industry. Q1 Results Total 129% Fluorocarbon Gas 110% Fluoropolymers & Fluoroelastomers 129% Fine Chemicals, etc. 135% YoY change (Net sales basis)
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15 Table of Contents Ⅰ. FY2026 Q1 Financial Results・・・・・・・・・・p. 3 Ⅱ. Business and Regional Overview・・・・・・・ p. 7 Ⅲ. FUSION 30 Progress・・・・・・・・・・・・・ p. 15 Ⅳ. Reference Information・・・・・・・・・・・・・p. 22
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16 Ⅲ. FUSION 30 Progress - Growth in High-Profit Domains To deliver value throughout the entire equipment lifecycle, we are strengthening instrumentation and engineering, services, and product lineups across all regions. Actual results for the percentage of air conditioning sales attributable to the Solutions business will be disclosed at the beginning of the second quarter. <Americas> ✓ Daikin expanded equipment sales in the fast-growing data center market. Utilizing the technologies and product lineups of acquired companies, we are building the capability to provide one-stop solutions. ✓ Instrumentation and engineering companies are being leveraged to strengthen the Solutions business. ✓ To strengthen proposal sales for energy management and equipment diagnostics, we provided training to sales reps. <Japan> ✓ Focusing on factories and commercial buildings as key markets, we strengthened Solutions proposals that combine equipment and instrumentation and engineering. Transformation into a Solutions Provider
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17 Residential: Profitability came under pressure in 1Q due to increased sales of lower-priced products, slower- than-expected adoption of Fit, and higher costs driven by U.S. tariffs, Middle East issues, and soaring prices. Beginning in 2Q, we will offset these headwinds through pricing strategies and ongoing total cost reductions. For Fit, we will improve profitability by steadily expanding the number of dealers carrying the product through additional measures, including the provision of sales promotion tools and the strengthening of support systems. Applied Solutions: Although sales to the data center market expanded in 1Q, profitability declined due to higher costs driven by U.S. tariffs, Middle East issues, soaring prices, and foreign exchange movements (stronger Mexican peso), as well as increased development investment. Beginning in 2Q, we will improve profitability by fully leveraging the measures implemented to offset higher costs. Prioritizing profitability while accelerating sales of high value-added products FY2025 1Q FY2026 1Q Applied Solutions Fit Sales % Solutions Sales % FY2025 1Q 4% FY2026 1Q 4% FY2025 1Q 45％ FY2026 1Q 57％ Residential Applied Solutions 12％ 10％ Residential Ⅲ. FUSION 30 Progress - Growth in High-Profit Domains Enhancing Profitability in the North America Air Conditioning Business Bar graph: Net sales Line graph: Operating profit margin
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18 Higher Profitability Driven by Strong Sales in Essential Markets* FY2025 1Q FY2026 1Q 11％ 15％ In addition to expanding sales of high-performance fluororesins for semiconductor manufacturing equipment, we increased sales of coating materials for high-speed communication cables used in data centers. Benefiting from pricing strategies, operating profit margin improved significantly. Chemicals Business: Net Sales and Operating Profit Margin *Essential Markets: These are markets designated by Daikin where fluorochemical materials are indispensable to industrial development, including semiconductors, information and communications, automotive, and medical fields, and where high profitability is expected. Ⅲ. FUSION 30 Progress - Growth in High-Profit Domains Strengthening the Chemicals Business Bar graph: Net sales Line graph: Operating profit margin
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19 Ⅲ. FUSION 30 Progress - Building a More Resilient Profit Structure To strengthen the earnings base, which is essential to achieving our cost reduction and fixed-cost control targets, we have defined the initiatives we will undertake this fiscal year. 1) Optimizing the Global Production Structure Leveraging existing plants by capitalizing on the strengths of market proximity and local production for local consumption Initiatives already underway Europe/ Middle East ・Transfer production of indoor units for heating systems from Germany to the Czech Republic Americas ・Transfer production of finished SKY units currently imported from Thailand to the United States. →Enhance our ability to respond to changes in the business environment, including the impact of U.S. tariffs. Initiatives scheduled for implementation this fiscal year Europe/ Middle East ・Transfer production of certain products in our freezer and refrigerator business to the Poland plant. Americas ・Expand production of Applied air side equipment utilizing a leased factory. →Increase production capacity while minimizing investment burden to meet growing data center demand. ASEAN Region ・Consolidate production of mid-range to high-end commercial models in Thailand. ・Consolidate production of standard residential models in Malaysia and Vietnam. →Operate the ASEAN region as a single regional factory and maximize production efficiency across plants. Decisive Cost Structure Reform
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20 2) Consolidating and Streamlining Business Processes Through Operational Reform Standardizing Back-Office Functions Across Departments and Locations <Americas> ◆Initiatives already underway ✓ Integration of back-office functions across the U.S. Group, phased introduction of standardized IT systems, and streamlining of legal and litigation support functions →Enhance functional expertise and operational efficiency. Controlling Headcount Growth with Projects to Improve Productivity and Reduce Indirect Costs ◆Initiatives scheduled for implementation this fiscal year ✓ Accelerate DX and AI adoption across production, sales, after sales service, and administrative functions. Examples: automation of inspection processes at production sites, enhancement of customer center operations, increased efficiency in sales quotation preparation, expansion of remote services ✓ Promote initiatives to reduce SG&A. Examples: define target cost levels, implement company-wide initiatives, standardize and centralize expenditures (procurement) Ⅲ. FUSION 30 Progress - Building a More Resilient Profit Structure
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21 We have established performance targets, including operating profit margin targets, for over 10 business units and are developing and executing turnaround plans to achieve them. For Filter and European Refrigeration businesses which are currently of concern, we are especially implementing the measures below to improve profitability in the near term and assess their long-term growth trajectories. <Filter> ✓ Select and concentrate on low-profit business locations, products, and sales channels. Improve the profit structure through reforms in production, logistics, and fixed costs. ✓ Concentrate management resources on high-end markets, including semiconductors, pharmaceuticals, and data centers. Expand replacement and service businesses, as well as collaboration with the air conditioning business. ✓ Under top management leadership, strengthen strategic business management, investments, and KPIs through globally integrated operations to enhance execution of reform initiatives. <European Refrigeration> ✓ AHT: Concentrate management resources on high-margin products (plug-in showcases, water loop heat recovery systems, etc.), while strengthening the after sales service and turnkey businesses. ✓ Zanotti: Concentrate management resources on the commercial refrigeration business. Shift toward high-profit domains, including CO₂ refrigerant refrigeration systems. Ⅲ. FUSION 30 Progress - Building a More Resilient Profit Structure Turnaround of Low-Profit Businesses
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22 Table of Contents Ⅰ. FY2026 Q1 Financial Results・・・・・・・・・・p. 3 Ⅱ. Business and Regional Overview・・・・・・・ p. 7 Ⅲ. FUSION 30 Progress・・・・・・・・・・・・・ p. 15 Ⅳ. Reference Information・・・・・・・・・・・・・p. 22
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23 Ⅳ. Trends in Net Sales by Region Air Conditioning and Refrigeration Equipment Year-on-year in local currency basis FY2026 Q1 Results Europe:108%, China:88%, Americas:107%, Asia:108% *Percentage expresses year on year comparison *Includes filter businesses (billion yen) Japan 97% 132.3 106% 139.8 107% 149.9 109% 163.1 117% 191.0 Europe 112% 153.8 114% 174.9 100% 174.3 100% 174.1 123% 213.6 China 95% 123.3 118% 146.0 100% 146.6 86% 126.7 104% 131.3 Americas 147% 325.1 116% 378.1 128% 483.6 97% 468.8 118% 551.9 Asia 143% 105.0 112% 117.4 126% 148.4 85% 126.1 117% 147.5 Oceania 129% 29.1 100% 29.0 117% 34.0 95% 32.2 128% 41.3 Middle East 136% 18.2 130% 23.6 123% 29.1 131% 38.1 109% 41.5 Africa 194% 2.5 117% 2.9 101% 3.0 124% 3.7 187% 6.9 Total 121% 889.3 114% 1,011.8 116% 1,168.9 97% 1,132.7 117% 1,325.1 Overseas Net Sales ratio 85% 86% 87% 86% 86% USD/JPY ¥130 ¥137 ¥156 ¥145 ¥159 EUR/JPY ¥138 ¥149 ¥168 ¥164 ¥185 RMB/JPY ¥19.6 ¥19.6 ¥21.5 ¥20.0 ¥23.4 FY2022 Q1 FY2023 Q1 FY2024 Q1 FY2025 Q1 FY2026 Q1
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24 Ⅳ. Trends in Net Sales by Region Chemicals Year-on-year in local currency basis FY2026 Q1 Results Europe:85%, China:137%, Americas:124% *Percentage expresses year on year comparison *Others: Oceania, Middle East, Africa etc. (billion yen) Japan 128% 17.0 94% 15.9 95% 15.1 91% 13.8 105% 14.5 Americas 131% 13.6 78% 10.7 98% 10.4 107% 11.1 137% 15.2 China 123% 15.1 86% 13.0 131% 17.0 89% 15.0 161% 24.2 Asia 132% 7.8 99% 7.7 84% 6.5 113% 7.3 150% 11.0 Europe 121% 10.1 132% 13.4 96% 12.9 97% 12.4 97% 12.0 Others 139% 0.3 55% 0.2 208% 0.4 64% 0.3 91% 0.2 Total 127% 63.9 95% 60.9 102% 62.3 96% 59.9 129% 77.2 Overseas Net Sales ratio 73% 74% 76% 77% 81% USD/JPY ¥130 ¥137 ¥156 ¥145 ¥159 EUR/JPY ¥138 ¥149 ¥168 ¥164 ¥185 RMB/JPY ¥19.6 ¥19.6 ¥21.5 ¥20.0 ¥23.4 FY2022 Q1 FY2023 Q1 FY2024 Q1 FY2025 Q1 FY2026 Q1
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25 Ⅳ. Capex, Depreciation and R&D Cost Q1 Results Full-year Results Q1 Results Full-year Forecast CAPEX 61.3 300.0 77.7 285.0 Depreciation 51.1 224.8 61.0 250.0 R&D Cost 36.4 150.7 39.6 155.0 (billion yen) FY2025 FY2026
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26 Ⅳ. FY2026 Business Forecast (Reproduced) Company-wide Plan (billion yen) H1 H2 Total H1 YoY H2 YoY Total YoY Net sales 2,478.8 2,536.2 5,015.0 2,610.0 105% 2,540.0 100% 5,150.0 103% Operating Profit 246.6 168.4 415.0 258.0 105% 178.0 106% 436.0 105% (%) (9.9%) (6.6%) (8.3%) (9.9%) (7.0%) (8.5%) Ordinary Profit 241.9 166.3 408.2 244.0 101% 170.0 102% 414.0 101% (%) (9.8%) (6.6%) (8.1%) (9.3%) (6.7%) (8.0%) Profit Attributable to Owners of Parent 160.9 114.3 275.2 163.0 101% 115.0 101% 278.0 101% (%) (6.5%) (4.5%) (5.5%) (6.2%) (4.5%) (5.4%) USD/JPY ¥146 ¥156 ¥151 ¥145 EUR/JPY ¥168 ¥182 ¥175 ¥170 RMB/JPY ¥20.3 ¥22.1 ¥21.2 ¥21.0 FY2025 Results FY2026 Forecast FX Effect (YoY) Net Sales -120.0billion yen Operating Profit - 20.0billion yen YoY Comparison Excluding FX Effect Net Sales 105% Operating Profit 110%
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27 FY2025 Results Forecast YoY Net sales 5,015.0 5,150.0 103% Operating Profit 415.0 436.0 105% (%) (8.3%) (8.5%) Net sales 4,621.1 4,741.0 103% Operating Profit 377.0 393.0 104% (%) (8.2%) (8.3%) Net sales 281.5 300.0 107% Operating Profit 33.1 39.0 118% (%) (11.8%) (13.0%) Net sales 112.4 109.0 97% Operating Profit 4.9 4.0 81% (%) (4.4%) (3.7%) *Air-Conditioning and Refrigeration Equipment includes filter businesses. FY2026 Others Total Air-Conditioning and Refrigeration Equipment Chemicals (billion yen) FX Effect (YoY) Air Conditioning and Refrigeration Equipment Chemicals Net Sales -119.5 billion yen -2.5 billion yen Operating Profit -19.2billion yen -0.6 billion yen YoY Results Excluding FX Effect Air Conditioning and Refrigeration Equipment Chemicals Net Sales 105% 107% Operating Profit 109% 120% By Segments Ⅳ. FY2026 Business Forecast (Reproduced)
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28 Ⅳ. Our Position on Risks from the Worsening Middle East Situation (Reproduced) To minimize the impact on future production and product supply, we will strive to secure raw materials and components, including by switching to alternative parts. We have estimated the impact based on multiple scenarios (settling in the first half, or by year-end). We will implement countermeasures such as pricing strategies, expanding sales of energy-efficient equipment, and strengthening our system proposals. Furthermore, should the business environment change significantly—such as due to an economic downturn exceeding expectations or a sharp drop in demand—we will flexibly revise our management plan. Assumed Risks ✓ Decline in net sales and profits from businesses operating in the Middle East region ✓ Rising energy prices and transportation costs due to high crude oil prices ✓ Procurement difficulties for fluoropolymers and other crude oil-related products ✓ Delays and bottlenecks in logistics ✓ Curtailment of corporate investment and slow consumption due to the ripple effect on the real economy Position on Risks ✓ Search for alternative parts and suppliers to ensure stable product supply ✓ Increase prices to absorb cost increases ✓ Expanding sales of energy-efficient equipment and strengthening system proposals ✓ Further cost reductions ✓ Urgent cost-cutting measures
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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 target figures described in the data.