Daikin Industries (6367) ESG update summary

Chemical business overview and performance

• FY2024 sales reached ¥263 billion with operating profit of ¥46.1 billion, representing about 12% of total company profit and supported by 22 global affiliates and 4,399 employees.

• The division is expanding its fluoropolymer operations, focusing on semiconductors and telecommunications, and aims for record sales despite recent profit declines due to semiconductor market slowdown.

• By 2030, targets include sales of ¥400 billion and an operating margin over 20%, with diversification into new materials and supply chains for stable long-term growth.

Growth strategy and market focus

• Growth is driven by three pillars: essential markets (semiconductors, telecommunications, automotive, healthcare), gas business (refrigerants and specialty gases), and expansion beyond fluorochemical materials.

• Essential markets are expected to see significant growth, with semiconductor and telecommunications markets projected to expand 1.5x and 2.5x by 2030, respectively.

• The gas business leverages air conditioning expertise to develop next-generation refrigerants and resource circulation, targeting ¥150 billion in sales by 2035.

• Expansion beyond fluorochemicals includes hydrocarbon-based and high-performance materials, with new products launched for food packaging and advanced composites.

Business foundation and operational strengths

• A diverse product portfolio and regional customer focus enable high market share in key applications, such as 100% share in certain semiconductor materials.

• Global R&D and application development hubs accelerate product innovation and localization, with new centers planned by 2026.

• A robust global supply chain, including local production and raw material diversification, ensures stable supply and customer trust.

• Digital transformation in R&D and manufacturing, including AI-driven process monitoring and partnerships with academia, is increasing development speed and operational safety.