Daikin Industries (6367) Investor Day 2024 summary

Strategic management and carbon neutrality initiatives

• Fusion 25 plan targets net zero GHG emissions by 2050, with interim reduction goals of 30% by 2025 and 50% by 2030 compared to 2019 levels.

• The plan's latter half was strengthened in response to global policy shifts, aiming for all factories (except chemical plants) to achieve net zero CO2 emissions by 2030.

• Key focus areas include promoting inverter technology, expanding heat pump business, refrigerant innovation, and circular economy initiatives.

• Scope 3 emissions, mainly from product use, are addressed by promoting energy-efficient products and refrigerant recovery.

• Daikin's 2030 GHG reduction target is certified as a credible 1.5°C target by SBTi.

Technology and product development

• Inverter technology, heat pumps, and refrigerant control are core to Daikin's carbon neutrality strategy, enabling over 50% energy savings in air conditioning.

• Global inverter adoption is targeted at over 98% for residential ACs by 2025, with significant improvements in other product categories.

• Daikin leads in developing and mass-producing low-GWP refrigerants (e.g., R32, R290) and has sold over 49 million R32 units worldwide.

• The company builds refrigerant eco-cycles, including recovery, recycling, and destruction, with facilities in Japan, Europe, and developing countries.

• Product lineup includes compressors (swing, scroll, screw, turbo) tailored for residential, commercial, and large-scale applications.

Global market expansion and partnerships

• Daikin accelerated inverter adoption in China through a partnership with Gree, raising inverter market share from 7% in 2009 to 76% in 2018.

• In North America, collaboration with Copeland aims to meet stricter energy regulations and promote heat pump adoption.

• In India, Daikin invests in local manufacturing and partnerships to meet rising demand and promote inverter technology.

• The company adapts to regional regulatory trends, with product development aligned to some of the world's strictest energy efficiency standards.

• Expansion into data center cooling and new applications leverages high-efficiency chillers and oil-free compressors.