<Translation>
Member, Financial Accounting Standards Foundation
Brief Report on the Settlement of Accounts (Consolidated)
for the Business Year Ended March 31, 2016 (J-GAAP)
May 10, 2016
Name of Listed Company: Daikin Industries, Ltd.
Listed on TSE
Code No.: 6367
(URL: http://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, 2016
Planned date of start of dividend payment:
June 30, 2016
Planned date of the filing of securities report:
June 29, 2016
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, 2016
(From April 1, 2015, to March 31, 2016)
(1) Consolidated Business Results
Net sales
Fiscal Year ended
Millions of yen
%
Note: Amounts less than one million yen are truncated.
Percentages indicate year-over-year increases/decreases.
Profit attributable to
Operating income
Ordinary income
owners of parent
Millions of yen
% Millions of yen
% Millions of yen
%
March 31, 2016
2,043,691
6.7
217,872
14.3
209,536
7.9
136,986 14.5
March 31, 2015
1,915,013
7.1
190,587
21.8
194,234
24.9
119,674 29.0
Note: Comprehensive income was ¥25,589 million (-89.7%) for the fiscal year ended March 31, 2016, and ¥248,650 million (35.6%)
for the fiscal year ended March 31, 2015.
Ratio of earnings
Ratio of ordinary
for the fiscal year
Earnings per share
income to total
Operating margin
to shareholders’
assets
equity
Fiscal Year ended
Yen
Yen
%
%
%
March 31, 2016
469.23
468.84
13.4
9.4
10.7
March 31, 2015
410.19
409.75
13.1
9.1
10.0
(Reference) Equity in earnings of affiliates was ¥(83) million for the fiscal year ended March 31, 2016, and ¥880 million for the fiscal
year ended March 31, 2015.
Diluted earnings
per share
(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, 2016
2,191,105
1,037,469
46.3
3,473.54
As of March 31, 2015
2,263,989
1,048,311
45.3
3,511.34
(Reference) Equity capital was ¥1,014,409 million at the end of the fiscal year ended March 31, 2016, and ¥1,024,724 million at the
end of the fiscal year ended March 31, 2015.
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(3) Consolidated Cash Flows
Cash flows from
operating activities
Fiscal Year ended
March 31, 2016
March 31, 2015
Cash flows from
investing activities
Millions of yen
226,186
160,423
Cash flows from
financing activities
Millions of yen
(105,493)
(77,330)
Millions of yen
(85,421)
(83,073)
Cash and cash
equivalents at end of
period
Millions of yen
291,205
286,949
2. Dividends
1Q-end
2Q-end
3Q-end
Year-end
Total
Yen
Yen
40.00
Yen
Yen
60.00
Yen
100.00
Total cash
dividends for the
fiscal year
(Total)
Millions of yen
29,177
65.00
120.00
35,040
60.00
120.00
(Annual) Dividend per share
Fiscal Year ended
March 31, 2015
March 31, 2016
Fiscal Year ending
March 31, 2017
(forecast)
―
―
―
55.00
―
―
60.00
―
Dividend payout
ratio
(Consolidated)
Ratio of
dividends to
%
24.4
net assets
(Consolidated)
%
3.2
25.6
3.4
25.0
Note: Dividend per share for the 2Q-end of the fiscal year ended March 31, 2015, consists of an ordinary dividend of ¥30 and a
commemorative dividend of ¥10 for the Company’s 90th anniversary.
3. Consolidated Business Forecast for the Fiscal Year Ending March 31, 2017
(From April 1, 2016, to March 31, 2017)
Net sales
First half
Full year
Millions
of yen
1,080,000
2,080,000
Operating income
%
0.1
1.8
Millions
of yen
125,000
220,000
%
0.6
1.0
Note: Percentages indicate year-over-year increases/decreases.
Profit attributable
Earnings per
Ordinary income
to owners of
share
parent
Millions
Millions
%
%
Yen
of yen
of yen
123,500
0.4
81,000
1.1
277.36
217,000
3.6
140,000
2.2
479.39
*Notes
(1) Changes in Significant Subsidiaries during the Period: None
(Changes in specified subsidiaries resulting in change in scope of consolidation)
(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement
(i) Changes in accounting policies relating to revisions to accounting standards, etc.: Yes
(ii) Changes in accounting policies other than (i) above: None
(iii) Changes in accounting estimates: None
(iv) Retrospective restatement: None
Note: For details, see on page 23 of the attached “(5) Notes to Consolidated Financial Statements (Changes in Accounting Policy)”
of “5. Consolidated Financial Statements.”
(3) Number of Shares Issued (common stock)
(i) Number of shares issued at end of period (including treasury shares)
As of March 31, 2016
293,113,973 shares
As of March 31, 2015
293,113,973 shares
(ii) Number of treasury shares at end of period
As of March 31, 2016
1,075,356 shares
As of March 31, 2015
1,280,652 shares
(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2016
291,941,570 shares
Fiscal year ended March 31, 2015
291,755,506 shares
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Reference) Summary of Non-Consolidated Business Results for the Fiscal Year Ended March 31, 2016
(From April 1, 2015, to March 31, 2016)
(1) Non-Consolidated Business Results
Note: Percentages indicate year-over-year increases/decreases.
Operating income
Ordinary income
Net sales
Fiscal Year ended
March 31, 2016
March 31, 2015
Millions of yen
500,371
477,579
%
4.8
(5.2)
Profit
Fiscal Year ended
March 31, 2016
March 31, 2015
Millions of yen
61,387
64,254
%
(4.5)
50.9
Millions of yen
37,846
24,675
%
53.4
8.0
Earnings per
share
Diluted
earnings
per share
Yen
210.27
220.23
Yen
210.10
220.00
Millions of yen
86,467
75,668
%
14.3
69.5
(2) Non-Consolidated Financial Position
Net assets
per share
Millions of yen
Millions of yen
%
Yen
As of March 31, 2016
1,308,307
510,697
38.9
1,744.87
As of March 31, 2015
1,346,676
504,270
37.4
1,724.51
(Reference) Shareholders’ equity was ¥509,578 million at the end of the fiscal year ended March 31, 2016, and ¥503,278 million at the
end of the fiscal year ended March 31, 2015.
Total assets
Net assets
Equity ratio
Presentation of Implementation Status of Audit Procedures
 This Brief Report on the Settlement of Accounts is not subject to audit procedures pursuant to the Financial
Instruments and Exchange Act, and audit procedures for financial statements pursuant to the Financial
Instruments and Exchange Act had not been completed at the time of the disclosure of this Brief Report on
the Settlement of Accounts.
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 “(1) Analysis of Operating Results (Business Forecast for the Next Fiscal Year)” of “1. Analysis of
Operating Results and Financial Position.”
 The Company plans to hold a briefing on business results for institutional investors and analysts on
Wednesday, May 11, 2016. Documents and materials distributed in this briefing will be posted on the
Company’s website soon after the briefing.

Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Content of Attachment
1.
Analysis of Operating Results and Financial Position ..............................................................................2
(1) Analysis of Operating Results ................................................................................................................2
(2) Analysis of Financial Position................................................................................................................4
(3) Basic Policy on Profit Distribution and Dividends for the fiscal year ended March 31, 2016, and
the fiscal year ending March 31, 2017...................................................................................................5
2.
Status of the Company Group ...................................................................................................................6
3.
Management Policies.................................................................................................................................9
(1) Basic Management Policy ......................................................................................................................9
(2) Target Management Indicators ...............................................................................................................9
(3) Medium- and Long-Term Management Strategies .................................................................................9
(4) Tasks to Be Addressed by the Company ................................................................................................9
4.
Basic Stance Regarding Choice of Accounting Standards ........................................................................9
5.
Consolidated Financial Statements ..........................................................................................................10
(1) Consolidated Balance Sheet .................................................................................................................10
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ..............12
(Consolidated Statement of Income) ................................................................................................12
(Consolidated Statement of Comprehensive Income) ......................................................................13
(3) Consolidated Statement of Changes in Equity .....................................................................................14
(4) Consolidated Statement of Cash Flows ................................................................................................18
(5) Notes to Consolidated Financial Statements ........................................................................................20
Notes on the Premises of the Company as a “Going Concern” .......................................................20
Basis of Presenting the Consolidated Financial Statements .............................................................20
Changes in Accounting Policy .........................................................................................................23
Notes to the Consolidated Balance Sheet.........................................................................................23
Notes to the Consolidated Statement of Income ..............................................................................23
Notes to the Consolidated Statement of Comprehensive Income ....................................................24
Notes to the Consolidated Statement of Changes in Equity .............................................................24
Retirement Benefits ..........................................................................................................................26
Tax-Effect Accounting .....................................................................................................................30
Segment Information, etc. ................................................................................................................32
Per Share Information ......................................................................................................................35
Significant Subsequent Events .........................................................................................................36
Omission of Disclosure ....................................................................................................................36
6.
Non-Consolidated Financial Statements ..................................................................................................37
(1) Balance Sheet .........................................................................................................................................37
(2) Statement of Income ..............................................................................................................................40
(3) Statement of Changes in Equity .............................................................................................................41
-1-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
1. Analysis of Operating Results and Financial Position
(1) Analysis of Operating Results
Overview of the Fiscal Year
Looking at the overall world economy in the fiscal year ended March 31, 2016 (fiscal 2015), robust personal
consumption bolstered the U.S. economy. Even as the European economy maintained a moderate recovery,
geopolitical risks and other factors had a negative impact. The emerging economies slowed, especially in China and
resource-rich countries.
Turning to the Japanese economy, although domestic demand including capital investment was strong, the
economic slowdown overseas put downward pressure on the economy.
In such a business environment, the Daikin Group set its New Year’s slogan for 2015 as “Create the Future,
Exceed in a Changing World,” and worked from the beginning of the year to generate demand in each region of the
world. Sales of major products and services expanded especially in the air conditioning business in China and Asia
where we have been developing business by creating our own sales network and introducing differentiated products
in rapid succession, among other efforts. Furthermore, the Group strived to accomplish its core strategy themes and
expand profit in order to achieve the objectives of “Fusion 15,” the Group’s strategic management plan that set
fiscal 2015 as its final year, through measures that included group-wide efforts to further reduce overall costs.
The Daikin Group’s net sales increased by 6.7% year over year to ¥2,043,691 million for the fiscal year under
review due to strong sales overseas, especially in the Americas and Asia, as well as an increase in the
yen-equivalent from the weak yen against other currencies, mainly the U.S. dollar. Operating income increased by
14.3% to ¥217,872 million and ordinary income increased by 7.9% to ¥209,536 million. Profit attributable to
owners of parent increased by 14.5% to ¥136,986 million.
Results by business segment are as follows:
(i) Air-Conditioning and Refrigeration Equipment
Overall sales of the Air-Conditioning and Refrigeration Equipment segment increased by 6.8% to ¥1,828,012
million. Operating income increased by 13.7% to ¥193,785 million.
In the Japanese commercial air-conditioning equipment market, industry demand fell below the level of the
previous fiscal year due to a sluggish increase in new construction. Although the Daikin Group’s sales volume
declined year over year due to the impact of weak industry demand, efforts were made to expand sales for the
“FIVE STAR ZEAS” and “Eco-ZEAS,” air conditioners for stores and offices, in which the new refrigerant HFC32
(R32) has been adopted throughout the series, and for large-scale air-conditioning equipment (Applied Systems
products). As a result, net sales remained flat against the previous fiscal year.
In the Japanese residential air-conditioning equipment market, despite unseasonal weather during peak sales
periods in both summer and winter, industry demand remained flat year over year due to weak industry demand in
the previous fiscal year. The Daikin Group utilized the brand power of its room air conditioner “Urusara 7” in an
effort to expand sales for the entire residential air-conditioning series, and net sales remained flat from the previous
fiscal year.
In Europe, net sales of residential air-conditioning systems significantly exceeded year over year owing to the
timely supply of products leveraging the Group’s strength of local production and efforts to enhance sales activities
during all seasons amid rapidly growing demand caused by favorable summer weather in Southern Europe and
Central Europe, our main markets in the region. Net sales of commercial air-conditioning systems also increased
year over year as a result of reinforcement of dealer visits and project follow-up in each country amid a slowing
recovery in construction demand in the U.K. and Germany. The Group also expanded sales of heat pump hot water
heating systems centered on France, a major market in the region, by capturing increasing demand due to more
stringent environmental regulations. In emerging markets, delays occurred in large-scale projects in the Middle East
and Africa in the second half, for reasons originating with customers, against the backdrop of prolonged stagnation
of crude oil price in the Gulf nations and growing geopolitical risks. Nevertheless, net sales increased considerably
year over year thanks to efforts to boost orders for small- to medium-scale projects as well as progress in shipments
for delayed projects. In addition, in Turkey and Russia, net sales increased year over year as a result of intensified
sales activities.
In China, while the business environment remained severe due to factors including a decrease in large-scale
investment and real estate projects, the Group focused on retail sales to capture firm personal consumption.
Although the economic slowdown had an impact in the first half, sales recovered from the second half onward to
the level of the previous fiscal year due to the introduction of new products and other measures. Furthermore, the
Group achieved cost reductions centered on a shift to internal production of parts and benefited from softening of
-2-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
market conditions for raw materials and foreign exchange effects. As a result, net sales remained flat year over year
and operating income increased from the previous fiscal year for the fiscal year under review in the region as a
whole. In the residential air-conditioning systems, the Group leveraged its proposal and installation capabilities that
are strengths of the specialty “PROSHOPs” aimed at retail stores in order to expand sales of the “New Life Multi
Series” that offers various lifestyles for customers. Although net sales in the residential market overall remained flat
year over year, net sales from the second half onward increased year over year, driven by sales of residential
multi-split type room air conditioners in the mid-range and high-end residential market where demand was strong.
In air-conditioning equipment for commercial use and large buildings, the Group captured renovation needs of
stores and general offices where demand was relatively strong, even amid the economic slowdown. This led to a
recovery trend in the second half, but net sales decreased year over year.
In Asia and Oceania, net sales increased year over year in the region as a whole as a result of efforts to strengthen
dealer networks. In Vietnam and Indonesia in particular, we steadily captured demand for residential equipment,
which is expanding with the growth of a middle class, and net sales grew substantially from the previous fiscal year.
In the Americas, sales grew year over year in the region as a whole. Industry demand for residential
air-conditioning systems decreased compared to the previous fiscal year, reflecting a retreat from the surge in
demand in the previous fiscal year ahead of stronger regulations regarding energy-saving performance as well as the
impact from the warm winter. Nevertheless, net sales for Daikin equipment increased year over year. Net sales grew
year over year in the light commercial air-conditioning systems for medium-sized office buildings due to the
implementation of sales strategies for each route. In the Applied Systems market, net sales grew year over year
thanks to stronger sales of equipment, mainly air handling units and chillers, backed by a higher level of demand
than the previous fiscal year, as well as sales growth in the after sales service business and in the region of Central
and South America.
In the marine vessels business, net sales increased year over year due to growth in sales of marine container
refrigeration units.
(ii) Chemicals
Overall sales of the Chemicals segment increased by 8.5% to ¥162,285 million and operating income increased by
24.6% year over year to ¥20,620 million.
Net sales of fluoropolymers grew year over year due to favorable demand for semiconductor-related applications
mainly in Japan and Asia. This was despite the aggressive price competition by rival companies, a decrease in sales
in cable applications, etc., for telecommunications base stations in the Chinese market, and the impact of a price
competition in the U.S. market from rival companies and products made in China and India. Sales of
fluoroelastomers also increased year over year, thanks to factors including robust automotive demand in Europe and
sales expansion in Asia and the U.S.
Turning to specialty chemicals, net sales were up year over year due to sales growth mainly in the U.S. and China
as a result of entering new markets for oil and water repellants, among other efforts. Sales of anti-fouling surface
coating agents used in devices, such as touch panels, increased compared to the previous fiscal year, supported by
robust demand. Sales of etching products for cleaning semiconductors increased year over year due to sales growth
in Japan and Asia where related demand was favorable. Sales of intermediates for use in pharmaceuticals and liquid
crystal grew significantly in Europe where performance was strong. As a result, overall sales of specialty chemicals
were up compared to the previous fiscal year.
As for fluorocarbon gas, overall sales of gas increased substantially year over year as a result of the new addition
of the gas business in Europe acquired from Solvay S.A., which offset a decline in net sales year over year resulting
from restraint on sales in response to the deteriorating market in China.
(iii) Other Divisions
Overall sales of the “Others” segment fell by 2.0% year over year to ¥53,393 million. Operating income decreased
by 1.5% year over year to ¥3,529 million.
Sales of oil hydraulic equipment for industrial machinery remained flat year over year due to the impact of
stagnant demand in the Japanese and Asian markets, despite strong performance in the U.S. market. Sales of oil
hydraulic equipment for construction machinery and vehicles remained flat against the previous fiscal year due to
the impact of the retreat from the surge in domestic demand ahead of exhaust emission regulations, offsetting firm
demand in the U.S. markets of our key Japanese customers.
In defense systems-related products, sales of home oxygen equipment were strong, while sales of ammunitions to
the Ministry of Defense decreased.
In the electronics business, sales especially of database systems for design and development sectors grew in the
backdrop of a modest increase in IT investment.
On a non-consolidated basis, the Company’s net sales increased by 4.8% year over year to ¥500,371 million.
-3-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Operating income increased by 53.4% year over year to ¥37,846 million. Ordinary income increased by 14.3% year
over year to ¥86,467 million, and profit decreased by 4.5% year over year to ¥61,387 million.
Business Forecast for the Next Fiscal Year
With regard to the global economy in the future, we expect the U.S. economy to be supported by personal
consumption, and the European economy to sustain a moderate recovery trend. In the emerging economies, growth
in China and resource-rich countries in particular is expected to slow.
In the Japanese economy, we expect strong investment in housing and capital investment backed by low interest
rates, while the slowdown in overseas economies will put downward pressure on the economy.
Amid this business environment, for this year (2016), we set “Let’s each of us enhance our own strengths to take a
big step forward” as the Group’s New Year’s slogan with the aim of generating results amid the uncertain outlook in
the global situation.
Specifically, we will refine our efforts to strengthen our sales and marketing capabilities, improve product
development, production, procurement, and quality capabilities, and enhance our human resources capabilities,
which we have continued to implement, and promote themes aimed at further growth. At the same time, we will
increase sales and profits by further proceeding with initiatives for establishing a profitable business structure,
including careful selection of our investments and making dramatic cuts in our fixed costs.
For the fiscal year ending March 31, 2017, we forecast a 1.8% increase in consolidated net sales to ¥2,080,000
million, with operating income rising 1.0% to ¥220,000 million, ordinary income increasing 3.6% to ¥217,000
million, and profit attributable to owners of parent increasing 2.2% to ¥140,000 million.
The estimated exchange rate for the fiscal year ending March 31, 2017, is based on the assumption that US$1
equals ¥110 and 1 euro equals ¥125.
The business forecasts are based on information currently available to the Company and certain assumptions that
are deemed reasonable. A number of factors, some major ones of which are explained below, could cause actual
results to differ significantly from these forecasts.
-
Drastic changes in demand and supply for products or in the political and economic situations in the major
markets of Japan, Europe, the United States, China, and other Asian countries
Fluctuations in demand for air-conditioning equipment due to unseasonable weather
Drastic changes in the exchange rates (especially the U.S. dollar and euro rates)
Serious problems related to quality and manufacturing
Substantial fluctuations in the market value of securities held by the Company
Impairment of non-current assets
Natural disasters
(2) Analysis of Financial Position
(i) Assets, Liabilities and Net Assets
Total assets decreased by ¥72,884 million from the end of the previous fiscal year to ¥2,191,105 million. Current
assets decreased by ¥15,845 million to ¥1,066,768 million, mainly due to a decrease in merchandise and finished
goods. Non-current assets decreased by ¥57,038 million to ¥1,124,336 million, primarily due to amortization of
goodwill and market value variation in investment securities.
Liabilities decreased by ¥62,042 million from the end of the previous fiscal year to ¥1,153,635 million, mainly
due to a decrease in the repayments of long-term loans payable. Interest bearing debt ratio declined to 27.8% from
29.3% at the end of the previous fiscal year.
Net assets decreased by ¥10,841 million from the end of the previous fiscal year to ¥1,037,469 million, primarily
reflecting a decrease in the payments of dividends and fluctuations in foreign currency translation adjustment,
despite an increase caused by posting of profit attributable to owners of parent.
-4-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(ii) Cash Flows
During the fiscal year under review, net cash provided by operating activities was ¥226,186 million, an increase of
¥65,762 million from the previous fiscal year, principally due to an increase in income before income taxes and
non-controlling interests and an increase in notes and accounts payable – trade. Net cash used in investing activities
was ¥105,493 million, an increase of ¥28,162 million from the previous fiscal year, primarily due to an increase in
purchase of non-current assets. Net cash used in financing activities was ¥85,421 million, an increase of ¥2,348
million from the previous fiscal year, mainly due to proceeds from issuance of bonds during the previous fiscal year.
As a result, cash and cash equivalents at the end of the fiscal year under review amounted to ¥291,205 million, an
increase of ¥4,255 million from the previous fiscal year.
(Reference) Trends in Cash Flow Indicators
Equity ratio (%)
Fiscal Year
ended March
31, 2012
Fiscal Year
ended March
31, 2013
Fiscal Year
ended March
31, 2014
Fiscal Year
ended March
31, 2015
Fiscal Year
ended March
31, 2016
43.3
35.6
39.9
45.3
46.3
56.5
61.9
83.9
103.7
112.1
Market value equity ratio (%)
Cash flows/interest-bearing debt
8.7
6.8
3.9
4.1
2.7
ratio (years)
6.9
15.3
18.0
16.8
25.9
Interest coverage ratio (times)
Notes:
1. Equity ratio = Equity capital/Total assets
Market value equity ratio = Aggregate market value of shares/Total assets
Cash flows/Interest-bearing debt ratio = Interest-bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest payment
2. Each indicator is calculated based on the consolidated financial values.
3. Aggregate market value of shares is calculated as follows: (term-end closing stock price) × (term-end number of shares issued
[after deducting shares of treasury shares])
4. Operating cash flow represents the “Net cash provided by (used in) operating activities” in the consolidated statement of cash
flows.
5. Interest-bearing debt indicates the liabilities for which interest is paid on all the liabilities posted in the consolidated balance
sheet. Interest payment corresponds to the amount of “Interest expenses paid” in the consolidated statement of cash flows.
(3) Basic Policy on Profit Distribution and Dividends for the fiscal year ended March 31, 2016,
and the fiscal year ending March 31, 2017
The Company will continue to focus on expanding its businesses while investing its assets strategically, and
improving its financial structure by such means as proceeding with the reduction of overall costs and enhancing its
fiscal position. Through these initiatives, we are committed to being a truly global and excellent company while at
the same time further improving our corporate value and enhancing profit returns to our shareholders.
Specifically, by striving to maintain a consolidated ratio of dividend to net assets (Dividend on Equity, DOE) of 3.0%
while at the same time aiming for an even higher consolidated dividend payout ratio, we will roll out initiatives to further
increase returns to our shareholders with the core goal of stable and continuous dividends.
Internal reserves will be applied to strategic investments in order to expand business and increase
competitiveness such as reinforcing management practices, promoting global businesses, and accelerating
eco-conscious product development.
For the fiscal year ended March 31, 2016, the Company has proposed an annual cash dividend of ¥120 (¥55 for
the interim dividend and ¥65 for the year-end dividend), representing a ¥20 increase over the previous fiscal year.
For the fiscal year ending March 31, 2017, the Company proposes an annual cash dividend of ¥120 (¥60 for the
interim dividend and ¥60 for the year-end dividend).
-5-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
2. Status of the Company Group
The Daikin Group (the Company and its subsidiaries and associates) is engaged in the manufacture (including
installation), and sale of products in the fields of air-conditioning and refrigeration equipment, chemicals, hydraulic
equipment, defense systems–related products and others. The filer of the consolidated financial statements (or “the
Company”) engages in the manufacture and sale of all these business lines and the subsidiaries and associates partly
engage in the manufacture and/or sale of any of the respective business fields of air-conditioning and refrigeration
equipment, chemicals, hydraulic equipment, and defense systems-related products. The major business lines of the
Company and the respective subsidiaries and associates are shown below.
(1) Air-Conditioning and Refrigeration Equipment
A) Major Products
For residential use:
For commercial use:
For marine vessels:
Room air conditioners, Air purifiers, CO2 heat pump-water heaters, Far-infrared
electric heaters, Heat-pump type floor heating systems
Packaged air conditioning systems, Spot air conditioners, Water chilling units,
Centrifugal chillers, Screw-type chillers, Fan-coil units, Air handling units,
Packaged air conditioners for low temperatures, Air purification systems, Total heat
exchangers, Duct ventilating fans, Deodorizers, Far-infrared electric heaters,
Freezers, Ammonia water chilling units, Air filters, Industrial dust collectors,
Rooftops
Container refrigeration units, Marine vessel air conditioners and refrigeration units
B) Company Names
(i) Domestic subsidiaries and associates
[Consolidated subsidiaries]
Daikin Applied Systems Co., Ltd., Daikin Airtechnology & Engineering Co., Ltd.,
and one (1) other company for sales, installation of air conditioners, Daikin HVAC
Solution Tokyo Co., Ltd., and ten (10) other sales companies, OK Kizai Ltd., Daikin
Rexxam Electronics Co., Ltd., Daikin Trading Co., Ltd., Nippon Muki Co., Ltd., and
six (6) other companies
[Entities accounted for using equity method]
Moritani Daikin Co., Ltd., and two (2) other companies
(ii) Overseas subsidiaries and associates
[Consolidated subsidiaries]
Daikin (China) Investment Co., Ltd., Daikin Air-conditioning (Shanghai) Co., Ltd.,
Daikin Air-conditioning (Suzhou) Co., Ltd., Xian Daikin Qingan Compressor Co.,
Ltd., Daikin Device (Suzhou) Co., Ltd., Daikin Motor (Suzhou) Co., Ltd., Shenzhen
McQuay Air Conditioning Co., Ltd., McQuay Air Conditioning & Refrigeration
(Wuhan) Co., Ltd., McQuay Central Air Conditioning (China) Co., Ltd., Daikin
Industries (Thailand) Ltd., Siam Daikin Sales Co., Ltd., Daikin Compressor
Industries Ltd., Daikin Airconditioning (Singapore) Pte. Ltd., Daikin Malaysia Sdn.
Bhd., Group Associated (C&L) Sdn. Bhd., Daikin Airconditioning India Pvt. Ltd.,
Daikin Australia Pty. Ltd., Daikin Europe N.V., Daikin Industries Czech Republic
s.r.o., Daikin Device Czech Republic s.r.o., Daikin Airconditioning France S.A.S.,
Daikin Airconditioning Italy S.p.A., Daikin Applied Europe S.p.A., Daikin
Airconditioning UK Ltd., Daikin Isıtma ve Soğutma Sistemleri Sanayi ve Ticaret
A.Ş., Daikin Applied Americas Inc., Goodman Global Group, Inc., and 140 other
companies
[Entities accounted for using equity method]
Zhuhai Gree Daikin Device Co., Ltd. and five (5) other companies
-6-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(2) Chemicals
A) Major Products
Fluorocarbon gas:
Fluoropolymers:
Refrigerants
Ethylene tetrafluoride resins, Molten type resins, Fluoroelastomers, Fluoro paints,
Fluoro coatings
Chemicals:
Semiconductor-etching products, Oil and water repellants, Mold release agents,
Surface acting agents, Fluorocarbons, Fluorinated oils, Pharmaceutical agrichemical
intermediates
Chemical engineering machinery:
Solvent deodorizing equipment, Dry air suppliers
B) Company Names
(i) Domestic subsidiaries and associates
[Consolidated subsidiary]
Toho Kasei Co., Ltd.
(ii) Overseas subsidiaries and associates
[Consolidated subsidiaries]
Daikin Fluorochemicals (China) Co., Ltd., Daikin Arkema Refrigerants Asia Ltd.,
Daikin Chemical Europe GmbH, Daikin America, Inc., and ten (10) other
companies
[Entities accounted for using equity method]
Arkema Daikin Advanced Fluorochemicals (Changshu) Co., Ltd. and three (3) other
companies
(3) Others
A) Major Products
Oil Hydraulics:
Hydraulic equipment and systems for industrial use:
Pumps, Valves, Hydraulic systems, Oil cooling units, Inverter-controlled pumps and
motors
Hydraulic equipment for construction machinery and vehicles:
Hydraulic transmissions, Valves
Centralized lubrication units and systems:
Grease pumps, Control and stack valves
Defense System:
Ammunitions, components for guided missiles, and aircraft components for the
Ministry of Defense, Home oxygen equipment
Electronics:
Process-improvement and knowledge-sharing systems for the design and
development sector, IT infrastructure management systems (network, security, and
asset management), Computer graphics solutions such as CAD systems for facility
design
B) Company Names
(i) Domestic subsidiaries and associates
[Consolidated subsidiaries]
Daikin-Sauer-Danfoss, Ltd., Daikin Hydraulic Engineering Co., Ltd., and one (1)
other company
(ii) Overseas subsidiaries and associates
[Consolidated subsidiaries]
All World Machinery Supply, Inc., and three (3) other companies
-7-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
[Schematic Diagram of the Company Group]
A schematic diagram of the business lines of the Daikin Group, including two hundred and thirteen (213)
consolidated companies (twenty-eight (28) domestic, one hundred and eighty-five (185) overseas) and thirteen (13)
entities accounted for using equity method (three (3) domestic, ten (10) overseas), is shown below.
Customers
Air-Conditioning
and Refrigeration
Equipment
Daikin Industries, Ltd. (The Company)
Chemicals
Others
Oil Hydraulics
Defense Systems
Electronics
Domestic subsidiaries and associates
[Consolidated subsidiaries]
Daikin Applied Systems Co., Ltd., Daikin Air Technology &
Engineering Co., Ltd., and one (1) other company for sales,
construction and installation of air conditioners, Daikin HVAC
Solution Tokyo Co., Ltd., and ten (10) other sales companies, OK
Kizai Ltd., Daikin Rexxam Electronics Co., Ltd., Daikin Trading
Co., Ltd., Nippon Muki Co., Ltd., and six (6) other companies
[Entities accounted for using equity method]
Moritani Daikin Co., Ltd., and two (2) other companies
Overseas subsidiaries and associates
[Consolidated subsidiaries]
Daikin (China) Investment Co., Ltd, Daikin Air-conditioning
(Shanghai) Co., Ltd., Daikin Air-conditioning (Suzhou) Co., Ltd.,
Xian Daikin Qingan Compressor Co., Ltd., Daikin Device
(Suzhou) Co., Ltd., Daikin Motor (Suzhou) Co., Ltd., Shenzhen
McQuay Air Conditioning Co., Ltd., McQuay Air Conditioning &
Refrigeration (Wuhan) Co., Ltd., McQuay Central Air
Conditioning (China) Co., Ltd., Daikin Industries (Thailand) Ltd.,
Siam Daikin Sales Co., Ltd., Daikin Compressor Industries Ltd.,
Daikin Airconditioning (Singapore) Pte. Ltd., Daikin Malaysia
Sdn. Bhd., Group Associated (C&L) Sdn. Bhd., Daikin
Airconditioning India Pvt. Ltd., Daikin Australia Pty. Ltd., Daikin
Europe N.V., Daikin Industries Czech Republic, s.r.o., Daikin
Device Czech Republic s.r.o., Daikin Airconditioning France
S.A.S., Daikin Airconditioning Italy S.p.A., Daikin Applied
Europe S.p.A., Daikin Airconditioning UK Ltd., Daikin Isıtma ve
Soğutma Sistemleri Sanayi ve Ticaret A.Ş., Daikin Applied
Americas Inc., Goodman Global Group, Inc., and 140 other
companies
[Entities accounted for using equity method]
Zhuhai Gree Daikin Device Co., Ltd., and five (5) other companies
Domestic subsidiaries and associates
[Consolidated subsidiary]
Toho Kasei Co., Ltd.
Overseas subsidiaries and associates
[Consolidated subsidiaries]
Daikin Fluorochemicals (China) Co., Ltd., Daikin Arkema
Refrigerants Asia Ltd., Daikin Chemical Europe GmbH, Daikin
America, Inc., and ten (10) other companies
[Entities accounted for using equity method]
Arkema Daikin Advanced Fluorochemicals (Changshu) Co., Ltd.,
and three (3) other companies
Domestic subsidiaries and associates
[Consolidated subsidiaries]
Daikin-Sauer-Danfoss, Ltd., Daikin Hydraulic Engineering Co,
Ltd., and one (1) other company
Overseas subsidiaries and associates
[Consolidated subsidiaries]
All World Machinery Supply, Inc., and three (3) other companies
-8-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
3. Management Policies
(1) Basic Management Policy
Under “Our Group Philosophy,” which sets forth the fundamental mindset of our management, the Company will,
as a corporation that continually supplies customers with the highest level of conveniences and amenities, enhance
its technical bases, carry out management emphasizing a capital increase and strive to maximize corporate value
through the provision of high-quality products, materials, and services. The Company will conduct fair corporate
activities based on a high level of ethics and fair competition, information disclosure and the fulfillment of
accountability in a timely and appropriate manner, proactive responses to the global environment and active
contributions to local communities as action guidelines common to the Group. Moreover, the Company will make
efforts to expand profitability and business operations for the entire Group by enforcing complete information
sharing within the Group, establishing a resilient management structure most appropriate for the solution of
problems and tasks that may come up from time to time, and facilitating the Company’s tradition of a “Fast and
Flat” management system.
(2) Target Management Indicators
The Company considers the maximization of corporate value to be the most important management task, and by
setting up FCF (free cash flow), DVA (Daikin value added), ROA (return on total assets), ROE (return on equity)
and other indicators of “Ratio Management” as important management administration indicators, the Company is
developing businesses and strengthening the management structure. The Company is emphasizing FCF as a source
of corporate value and as an integrated indicator that enhances all management indicators and is endeavoring to
reduce notes and accounts receivable - trade and inventories while taking measures to expand profit and improve
investment efficiency so as to create cash flow from operating capital.
(3) Medium- and Long-Term Management Strategies
The Company is currently formulating its next strategic management plan that sets fiscal 2020 as its target year. We
plan to announce concrete strategies as soon as they are defined.
(4) Tasks to Be Addressed by the Company
In 2016, amid an uncertain outlook in the global situation, we will refine our ongoing efforts to strengthen our sales
and marketing capabilities, improve product development, production, procurement, and quality capabilities, and
enhance our human resources capabilities, and promote themes aimed at further growth, while also seeking to
generate results by working to reduce fixed costs. In particular, we will pursue measures such as accelerating the
creation of differentiated technologies and products mainly at the Technology and Innovation Center newly
established last year, as we strive to expand business with the aim of sustainable development in the medium and
long term.
4. Basic Stance Regarding Choice of Accounting Standards
The Daikin Group applies Japanese general accepted accounting principle (J-GAAP). In terms of the International
Financial Reporting Standards (IFRS), the difference between IFRS and J-GAAP, its potential impact on the Daikin
Group and other effects are currently being studied. We will address the application of the IFRS appropriately upon
taking into account various circumstances both in Japan and abroad.
-9-
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
5. Consolidated Financial Statements
(1) Consolidated Balance Sheet
(Millions of yen)
FY2014
(As of March 31, 2015)
Assets
Current assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Customer relationship
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term loans payable
Commercial papers
Current portion of bonds
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Deferred tax liabilities
Provision for directors’ bonuses
Provision for product warranties
Accrued expenses
Other
Total current liabilities
- 10 -
FY2015
(As of March 31, 2016)
286,949
354,480
248,027
40,493
65,638
38,745
55,175
(6,896)
1,082,614
291,205
355,646
232,018
40,027
61,605
33,986
58,556
(6,279)
1,066,768
117,718
122,808
37,561
2,755
33,834
33,077
347,755
136,579
125,503
36,364
2,526
50,131
33,994
385,099
369,964
137,970
68,789
576,724
329,753
124,671
64,436
518,861
205,772
341
2,933
19,426
29,155
(735)
256,894
1,181,375
2,263,989
176,152
281
3,474
11,540
29,589
(663)
220,374
1,124,336
2,191,105
153,937
41,897
16,000
―
39,010
1,913
21,514
22,658
300
50,547
96,075
81,768
525,624
156,038
40,675
14,000
30,000
42,940
1,942
11,511
24,581
350
46,567
98,450
96,669
563,727
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
FY2014
(As of March 31, 2015)
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets
140,000
420,874
2,717
95,115
10,709
20,636
690,054
1,215,678
- 11 -
FY2015
(As of March 31, 2016)
110,000
367,491
1,929
78,029
10,982
21,474
589,907
1,153,635
85,032
83,443
617,128
(5,220)
780,384
85,032
83,585
720,547
(4,598)
884,567
67,818
(464)
179,566
(2,580)
244,340
992
22,594
1,048,311
2,263,989
46,319
(2,124)
93,798
(8,151)
129,842
1,118
21,942
1,037,469
2,191,105
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
(Consolidated Statement of Income)
(Millions of yen)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
method
Foreign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of land
Gain on sales of investment securities
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Impairment loss
Loss on abolishment of retirement benefit plan
Loss on liquidation of subsidiaries and associates
Other
Total extraordinary losses
Income before income taxes and non-controlling interests
Income taxes – current
Income taxes – deferred
Total income taxes
Profit
Profit attributable to non-controlling interests
Profit attributable to owners of parent
- 12 -
FY2014
(April 1, 2014,
to March 31, 2015)
1,915,013
1,265,112
649,901
459,313
190,587
FY2015
(April 1, 2015,
to March 31, 2016)
2,043,691
1,332,115
711,576
493,704
217,872
5,966
2,907
6,968
3,668
880
2,954
1,120
3,989
17,820
―
―
1,950
3,680
16,268
9,063
―
5,109
14,173
194,234
8,494
11,278
4,830
24,604
209,536
43
4,006
100
4,150
―
111
3
115
480
―
4,578
811
―
6
5,877
192,508
60,969
6,995
67,965
124,542
4,868
119,674
1,078
605
490
―
1,294
0
3,468
206,183
59,389
4,701
64,090
142,092
5,105
136,986
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Consolidated Statement of Comprehensive Income)
Profit
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling
interests
- 13 -
(Millions of yen)
FY2014
(April 1, 2014,
to March 31, 2015)
124,542
27,752
(1,071)
93,434
2,317
FY2015
(April 1, 2015,
to March 31, 2016)
142,092
(21,498)
(1,659)
(86,963)
(5,572)
1,673
124,107
248,650
(808)
(116,502)
25,589
240,224
22,488
8,425
3,101
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(3) Consolidated Statement of Changes in Equity
FY2014 (April 1, 2014, to March 31, 2015)
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’ equity
Balance at beginning of
current period
85,032
83,549
514,093
Cumulative effects of
changes in accounting
policies
Restated balance
(4,549)
3,064
85,032
83,549
517,157
678,126
3,064
(4,549)
681,190
Changes of items during
period
Dividends of surplus
(19,545)
(19,545)
Profit attributable to
owners of parent
119,674
119,674
Effect of changes in
accounting period of
subsidiaries
(157)
Purchase of treasury
shares
Disposal of treasury
shares
(105)
(157)
(2,094)
(2,094)
1,423
1,317
Changes in equity
allocated to the parent
associated with
transactions with
non-controlling interests
―
Net changes of items
other than shareholders’
equity
Total changes of items
during period
Balance at end of current
period
―
85,032
(105)
83,443
99,970
(671)
99,193
617,128
(5,220)
780,384
- 14 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
Accumulated other comprehensive income
Valuation
difference on
available-forsale securities
Balance at beginning of
current period
Cumulative effects of
changes in accounting
policies
Restated balance
Changes of items during
period
Dividends of surplus
Profit attributable to
owners of parent
Effect of changes in
accounting period of
subsidiaries
Purchase of treasury
shares
Disposal of treasury
shares
Changes in equity
allocated to the parent
associated with
transactions with
non-controlling interests
Net changes of items
other than shareholders’
equity
Total changes of items
during period
Balance at end of current
period
40,065
Deferred
gains or
losses on
hedges
606
Foreign
currency
translation
adjustment
Total
SubscripNonRemeasureaccumulated tion rights controlling
ments of
other
to shares
interests
defined
comprehensibenefit plans
ve income
87,938
(4,882)
123,727
841
21,162
Total net
assets
823,858
3,064
40,065
606
87,938
(4,882)
123,727
841
21,162
826,922
(19,545)
119,674
(157)
(2,094)
1,317
―
27,753
(1,071)
91,628
2,302
120,613
150
1,431
122,194
27,753
(1,071)
91,628
2,302
120,613
150
1,431
221,388
67,818
(464)
179,566
(2,580)
244,340
992
22,594
1,048,311
- 15 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
FY2015 (April 1, 2015, to March 31, 2016)
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’ equity
Balance at beginning of
current period
85,032
83,443
617,128
(5,220)
Cumulative effects of
changes in accounting
policies
Restated balance
780,384
―
85,032
83,443
617,128
(5,220)
780,384
Changes of items during
period
Dividends of surplus
(33,567)
(33,567)
Profit attributable to
owners of parent
136,986
136,986
Effect of changes in
accounting period of
subsidiaries
―
Purchase of treasury
shares
(479)
Disposal of treasury
shares
183
Changes in equity
allocated to the parent
associated with
transactions with
non-controlling interests
(41)
1,101
(479)
1,284
(41)
Net changes of items
other than shareholders’
equity
Total changes of items
during period
Balance at end of current
period
―
141
103,418
85,032
83,585
720,547
- 16 -
622
(4,598)
104,182
884,567
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
Accumulated other comprehensive income
Valuation
difference on
available-forsale securities
Balance at beginning of
current period
67,818
Deferred
gains or
losses on
hedges
(464)
Foreign
currency
translation
adjustment
Total
SubscripNonRemeasureaccumulated tion rights controlling
ments of
other
to shares
interests
defined
comprehensibenefit plans
ve income
179,566
(2,580)
244,340
992
22,594
Cumulative effects of
changes in accounting
policies
Restated balance
Total net
assets
1,048,311
―
67,818
(464)
179,566
(2,580)
244,340
992
22,594
1,048,311
Changes of items during
period
Dividends of surplus
(33,567)
Profit attributable to
owners of parent
136,986
Effect of changes in
accounting period of
subsidiaries
―
Purchase of treasury
shares
(479)
Disposal of treasury
shares
1,284
Changes in equity
allocated to the parent
associated with
transactions with
non-controlling interests
Net changes of items
other than shareholders’
equity
Total changes of items
during period
Balance at end of current
period
(41)
(21,499)
(1,659)
(85,767)
(5,571)
(114,498)
126
(652)
(115,024)
(21,499)
(1,659)
(85,767)
(5,571)
(114,498)
126
(652)
(10,841)
46,319
(2,124)
93,798
(8,151)
129,842
- 17 -
1,118
21,942
1,037,469
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(4) Consolidated Statement of Cash Flows
(Millions of yen)
FY2014
(April 1, 2014,
to March 31, 2015)
I. Cash flows from operating activities
Income before income taxes and non-controlling
interests
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable –
trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable –
trade
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Other, net
Subtotal
Interest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
II. Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments for investments in capital of subsidiaries and
associates
Purchase of shares of subsidiaries and associates
Proceeds from transfer of business
Payments for transfer of business
Purchase of shares of subsidiaries resulting in change in
scope of consolidation
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
- 18 -
FY2015
(April 1, 2015,
to March 31, 2016)
192,508
52,846
4,578
24,920
129
(8,874)
9,063
206,183
57,921
490
26,281
(251)
(10,637)
8,494
(880)
480
(4,006)
―
83
1,078
(111)
605
(19,126)
(16,631)
(19,689)
1,493
(16,556)
497
(4,303)
6,091
220,736
9,422
(9,521)
(60,213)
160,423
10,317
708
7,998
5,615
296,582
11,270
(8,737)
(72,929)
226,186
(71,759)
1,772
(10,697)
7,451
(96,696)
992
(2,586)
193
(1,323)
―
―
―
―
(357)
120
(3,181)
―
1,793
(4,567)
(77,330)
(1,310)
―
(2,665)
(105,493)
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
FY2014
(April 1, 2014,
to March 31, 2015)
III. Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
IV. Effect of exchange rate change on cash and cash
equivalents
V. Net increase (decrease) in cash and cash equivalents
VI. Cash and cash equivalents at beginning of period
VII. Increase (decrease) in cash and cash equivalents
resulting from change in accounting period of
subsidiaries
VIII. Cash and cash equivalents at end of period
- 19 -
FY2015
(April 1, 2015,
to March 31, 2016)
13,345
5,003
(65,921)
19,904
(30,000)
(19,545)
(2,256)
(3,602)
(83,073)
(2,838)
―
(40,076)
―
―
(33,567)
(6,528)
(2,410)
(85,421)
29,836
29,855
257,295
(31,015)
4,255
286,949
(200)
286,949
―
291,205
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(5) Notes to Consolidated Financial Statements
Notes on the Premises of the Company as a “Going Concern”
None applicable
Basis of Presenting the Consolidated Financial Statements
1. Scope of Consolidation
(1) Number of consolidated subsidiaries: 213
Major subsidiaries
Daikin Applied Systems Co., Ltd., Daikin Airtechnology & Engineering Co., Ltd.,
Daikin HVAC Solution Tokyo Co., Ltd., Daikin (China) Investment Co., Ltd., Daikin
Air-conditioning (Shanghai) Co., Ltd., Daikin Device (Suzhou) Co., Ltd., Daikin
Industries (Thailand) Ltd., Daikin Compressor Industries Ltd., Daikin Malaysia Sdn.
Bhd., Daikin Airconditioning India Pvt. Ltd., Daikin Australia Pty. Ltd., Daikin Europe
N.V., Daikin Industries Czech Republic s.r.o., Daikin Airconditioning France S.A.S.,
Daikin Isıtma ve Soğutma Sistemleri Sanayi ve Ticaret A.Ş., Goodman Global Group,
Inc., Daikin Applied Americas Inc., Daikin Fluorochemicals (China) Co., Ltd., Daikin
America, Inc., Daikin Hydraulic Engineering Co., Ltd.
(Newly added) Due to new establishment:
Daikin-Sauer-Danfoss Hydraulics (Suzhou) Co., Ltd.,
AAF Australia Pty Ltd
Due to acquisition:
Stejasa Agregados Industriales S.A., Stejasa USA LLC
(Excluded)
Due to liquidation:
Daikin-Alen Air Conditioning, Inc.
(2) Number of non-consolidated subsidiaries: 7
The impact of total assets, net sales, profit attributable to owners of parent and retained earnings of the
non-consolidated subsidiaries on the respective consolidated total assets, consolidated net sales, consolidated
profit attributable to owners of parent and consolidated retained earnings is insignificant and their
intra-group positioning is immaterial on the whole. For this reason, these companies are excluded from the
scope of consolidation.
2. Application of the Equity Method
Number of entities accounted for using equity method: 13
Number of affiliated companies accounted for using equity method: 13
Major affiliated companies
Zhuhai Gree Daikin Device Co., Ltd.
3. Fiscal Year of Consolidated Subsidiaries
The settlement date of the accounts of 47 consolidated subsidiaries differs from the consolidated settlement date of
the Company: June 30 for 2 companies and December 31 for 45 companies. With respect to these consolidated
subsidiaries, upon preparing the consolidated financial statements, their accounts are provisionally settled as of
March 31 and their financial statements are provided as of March 31.
4. Summary of Significant Accounting Policies
(1) Valuation basis and method for important assets
(i) Securities:
Available-for-sale securities
Available-for-sale securities for which the fair market values are readily determinable:
Mainly valued at market at the end of the fiscal year. Unrealized gain or loss is
included directly in net assets. The cost of securities sold is determined by the
moving-average method.
Available-for-sale securities for which the fair market values are not readily determinable:
Mainly valued at cost determined by the moving-average method.
- 20 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(ii) Derivatives:
Derivative instruments are valued at fair market value.
(iii) Inventories:
Mainly valued at cost determined by the gross average method (write-down of
book values due to the decline in profitability) for inventories at domestic
companies, whereas mainly the lower of cost or market determined by the gross
average method is adopted for inventories at overseas consolidated subsidiaries.
(2) Depreciation method of major depreciable assets
(i) Property, plant and equipment (excluding leased assets)
The depreciation of property, plant and equipment is computed by the straight-line method.
The range of useful lives is as follows:
Buildings and structures:
15–50 years
Machinery, equipment and vehicles:
5–15 years
(ii) Intangible assets
The amortization of intangible assets is computed by the straight-line method.
Software for sales in the market is amortized by the straight-line method over the effective salable period
(3 years). Customer relationship is amortized by the straight-line method over its useful life (mainly 30
years).
The amounts of goodwill are equally amortized over 9 to 20 years on a straight-line basis.
(iii) Leased assets
Leased assets related to the finance lease transactions other than those that transfer ownership right is
amortized by the straight-line method, assuming the lease period as the useful life and no residual value.
Of finance lease transactions other than those that transfer ownership right, those of which the
commencement day of the lease transaction is prior to March 31, 2008, are accounted for as ordinary
rental transactions.
(3) Accounting standards for important reserves
(i) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount of possible losses from uncollectible
receivables based on the actual loan loss ratio from bad debt for ordinary receivables and on the
estimated recoverability for specific doubtful receivables.
(ii) Provision for directors’ bonuses
The provision for directors’ bonuses is provided at an amount based on the amount estimated to be paid
at the end of the fiscal year under review.
(iii) Provision for product warranties
The provision for product warranties is provided for possible free repair costs of sold products at an
amount considered necessary based on the past track record plus projected future guarantees.
(4) Important hedge accounting
(i) Hedge accounting method
The Group adopts the deferral hedge accounting method, in principle. Certain foreign exchange
contracts are subject to appropriation if they satisfy the requirements of appropriation treatment. For
interest rate swaps, the preferential treatment is applied if the swaps satisfy the requirements.
(ii) Hedging instruments and hedged items
For the purpose of hedging exposure to exchange rate fluctuation risk, the Group adopts foreign
exchange contracts, currency swaps and currency options as hedging instruments, and financial assets
and liabilities denominated in foreign currencies such as monetary receivables and payables as hedged
items. Moreover, as for interest rate fluctuation risk, the Group adopts interest rate swaps and interest
rate options as hedging instruments, and financial liabilities such as bank loans as hedged items.
- 21 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(iii) Hedging policy and method of assessing hedging effectiveness
The Group’s risk management focuses on the effective utilization of derivative transactions to avoid the
exposure of assets and liabilities to exchange rate fluctuation risk and reduce interest payments for the
purpose of circumventing an unexpectedly huge loss. A regular test is conducted to verify the
effectiveness of the hedging function of the derivatives held by the Group. An additional derivative of
any kind is subject to the above hedging function test and prior assessment before starting such
derivative transactions. The hedging effectiveness is judged through the comparison of the cumulative
total of the market fluctuations or the cash flow fluctuations of the hedged item with the respective
counterparts of the hedging instrument. Financial techniques such as regression analysis are used if
necessary. A similar check system is adopted by the consolidated subsidiaries with regard to the
assessment of hedging effectiveness.
(5) Accounting policy for retirement benefits
(i) Method of attributing expected benefit to periods of service
The method of attributing expected benefit to the current period in calculation of projected benefit
obligation is based on the benefit formula.
(ii) Method of recognizing actuarial gains/losses and prior service costs
Actuarial gains and losses are amortized by the straight-line method over a certain period (mainly 10
years), which is within the average remaining service period of employees at the time of recognition.
Prior service costs are amortized by the straight-line method over a certain period (mainly 10 years),
which is within the average remaining service period of employees at the time of recognition.
(6) Accounting for consumption tax
Consumption tax and local consumption tax are excluded from each transaction amount.
(7) Adoption of tax consolidation system
The Company and some of its consolidated subsidiaries have applied the tax consolidation system from the
fiscal year under review.
5. Cash and Cash Equivalents in the Consolidated Statement of Cash Flows
Cash and cash equivalents in the consolidated statement of cash flows include cash on hand, demand deposits
and short-term investments due within three months from the date of acquisition, which are easily convertible
into cash with little or no risk from fluctuation in value.
- 22 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Changes in Accounting Policy
(Adoption of accounting standard for business combinations)
Effective from the fiscal year ended March 31, 2016, the Company and its domestic consolidated subsidiaries have
applied the Accounting Standard for Business Combinations (ASBJ Statement No. 21, September 13, 2013;
hereafter “Business Combinations Standard”), the Accounting Standard for Consolidated Financial Statements
(ASBJ Statement No. 22, September 13, 2013; hereafter “Consolidated Financial Statements Standard”) and the
Accounting Standard for Business Divestitures (ASBJ Statement No. 7, September 13, 2013; hereafter “Business
Divestitures Standard”) and other related pronouncements. Accordingly, the Company’s accounting policies have
been changed to record the differences arising from changes in the Company’s equity in a subsidiary over which the
Company retains control, as capital surplus, and to record acquisition-related costs as expenses in the consolidated
fiscal year in which they were incurred. Furthermore, for business combinations to be performed at and after the
beginning of the fiscal year under review, the accounting method has been changed to reflect adjustments to the
allocation of acquisition cost under provisional accounting treatment on the consolidated financial statements of the
fiscal year in which the relevant business combinations become effective. In addition, the Company has changed the
presentation of net income and other related items, and the presentation of “minority interests” to “non-controlling
interests.” To reflect this change in presentation, a reclassification of accounts has been made to the consolidated
financial statements for the fiscal year ended March 31, 2015.
The method of presentation has been changed in the Consolidated Statement of Cash Flows for the fiscal year
ended March 31, 2016, to classify cash flows related to the purchase or sales of shares of subsidiaries not resulting
in change in scope of consolidation under “Cash flows from financing activities,” and to classify cash flows related
to expenses for the purchase of shares of subsidiaries resulting in change in scope of consolidation or cash flows
related to expenses incurred in connection with the purchase or sales of shares of subsidiaries not resulting in
change in scope of consolidation under “Cash flows from operating activities.”
The Business Combinations Standard and other related pronouncements were applied in accordance with
transitional treatments stipulated in Paragraph 58-2 (4) of the Business Combinations Standard, Paragraph 44-5 (4)
of the Consolidated Financial Statements Standard and Paragraph 57-4 (4) of the Business Divestitures Standard,
and they have been prospectively applied from the beginning of the fiscal year under review.
The impact of this change on the consolidated financial statements and per share information for the fiscal year
under review is insignificant.
Notes to the Consolidated Balance Sheet
1. Accumulated depreciation of property, plant and equipment
Previous fiscal year
(As of March 31, 2015)
Accumulated depreciation of property, plant and
equipment
(Millions of yen)
Current fiscal year
(As of March 31, 2016)
647,823
646,154
Previous fiscal year
(As of March 31, 2015)
129
—
(Millions of yen)
Current fiscal year
(As of March 31, 2016)
524
800
2. Assets pledged as collateral and corresponding secured debt
Time deposits
Investment securities
Notes to the Consolidated Statement of Income
1. Total research and development expenses included in general and administrative expenses and manufacturing costs
(Millions of yen)
Previous fiscal year
Current fiscal year
(April 1, 2014, to
(April 1, 2015, to
March 31, 2015)
March 31, 2016)
42,892
46,138
- 23 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Notes to the Consolidated Statement of Comprehensive Income
1. Reclassification adjustments and tax effects related to other comprehensive income
Previous fiscal year
(April 1, 2014, to
March 31, 2015)
Valuation difference on available-for-sale
securities
Amount that occurred during the period
Reclassification adjustments
Before tax effect adjustments
Tax effects
Valuation difference on available-for-sale
securities
Deferred gains or losses on hedges
Amount that occurred during the period
Reclassification adjustments
Before tax effect adjustments
Tax effects
Deferred gains or losses on hedges
Foreign currency translation adjustment
Amount that occurred during the period
Reclassification adjustments
Before tax effect adjustments
Tax effects
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Amount that occurred during the period
Reclassification adjustments
Before tax effect adjustments
Tax effects
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Amount that occurred during the period
Total other comprehensive income
(Millions of yen)
Current fiscal year
(April 1, 2015, to
March 31, 2016)
43,015
(4,006)
39,008
(11,256)
(31,523)
(97)
(31,621)
10,123
27,752
(21,498)
(1,024)
(478)
(1,502)
431
(1,071)
(3,786)
1,278
(2,507)
848
(1,659)
93,373
60
93,434
―
93,434
(86,949)
(13)
(86,963)
―
(86,963)
2,803
739
3,543
(1,225)
2,317
(7,770)
(321)
(8,091)
2,518
(5,572)
1,673
124,107
(808)
(116,502)
Notes to the Consolidated Statement of Changes in Equity
Previous fiscal year (April 1, 2014, to March 31, 2015)
1. Shares issued
Type of shares
Common stock
(Thousands of shares)
April 1, 2014
Increase
Decrease
―
293,113
March 31, 2015
―
293,113
2. Treasury shares
Type of shares
April 1, 2014
Increase
Common stock
1,326
310
(Thousands of shares)
(Overview of reasons for change)
Principal reason for the increase:
The Company purchased 310 thousand shares from the market.
Principal reason for the decrease:
The exercise of stock options caused a decrease of 357 thousand shares.
3. Subscription rights to shares
Company
Breakdown
name
The Company
Subscription rights to shares as stock options
- 24 -
Decrease
March 31, 2015
357
1,280
Balance at March 31, 2015
(Millions of yen)
992
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
4. Dividends
(1) Dividend amounts paid
Resolution
Type of Shares
Total amount of
Dividends
(Millions of
yen)
Dividend per
Share
(Yen)
Record Date
Effective Date
Ordinary General
Meeting of
Common stock
7,878
27
March 31, 2014
June 30, 2014
Shareholders held
on June 27, 2014
Board of Directors’
meeting held on
Common stock
11,667
40
September 30, 2014 December 3, 2014
November 11, 2014
Note: The ¥40 per share dividend determined by resolution of the Board of Directors’ meeting held on November 11, 2014, includes
a commemorative dividend of ¥10.
(2) Of the dividends for which the record date belongs to the fiscal year ended March 31, 2015, those for which the effective date of
the dividends will be in the fiscal year ended March 31, 2016
Total Amount
Source of
Dividend per
Planned date of
Type of
of Dividends
Funds for
Share
Record Date
Effective Date
resolution
Shares
(Millions of
Dividends
(Yen)
yen)
Ordinary General
Meeting of
Common
Retained
17,510
60
March 31, 2015
June 29, 2015
Shareholders held
stock
earnings
on June 26, 2015
Current fiscal year (April 1, 2015, to March 31, 2016)
1. Shares issued
Type of shares
April 1, 2015
Common stock
(Thousands of shares)
Increase
Decrease
―
293,113
March 31, 2016
―
293,113
2. Treasury shares
Type of shares
April 1, 2015
Increase
Decrease
Common stock
1,280
53
(Thousands of shares)
(Overview of reasons for change)
Principal reason for the increase:
The Company purchased 53 thousand shares from the market.
Principal reason for the decrease:
The exercise of stock options caused a decrease of 259 thousand shares.
3. Subscription rights to shares
Company
Breakdown
name
The Company
Subscription rights to shares as stock options
March 31, 2016
259
1,075
Balance at March 31, 2016
(Millions of yen)
1,118
4. Dividends
(1) Dividend amounts paid
Resolution
Ordinary General
Meeting of
Shareholders held
on June 26, 2015
Board of Directors’
meeting held on
November 5, 2015
Type of Shares
Total amount of
Dividends
(Millions of
yen)
Common stock
17,510
Common stock
16,057
Dividend per
Share
(Yen)
- 25 -
Record Date
Effective Date
60
March 31, 2015
June 29, 2015
55
September 30, 2015
December 3, 2015
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(2) Of the dividends for which the record date belongs to the fiscal year ended March 31, 2016, those for which the effective date of
the dividends will be in the fiscal year ending March 31, 2017
Total Amount
Source of
Dividend per
Planned date of
Type of
of Dividends
Funds for
Share
Record Date
Effective Date
resolution
Shares
(Millions of
Dividends
(Yen)
yen)
Ordinary General
Meeting of
Common
Retained
Shareholders to be
18,982
65
March 31, 2016
June 30, 2016
stock
earnings
held on June 29,
2016
Retirement Benefits
Previous fiscal year (April 1, 2014, to March 31, 2015)
1. Outline of the retirement benefit plans adopted
The Company and its domestic consolidated subsidiaries have a defined benefit corporate pension plan and a retirement lump-sum
plan as defined-benefit plans, as well as a defined contribution pension plan. Several overseas consolidated subsidiaries have either
defined benefit or defined contribution pension plans.
Net defined benefit liabilities and retirement benefit expenses for certain of the retirement lump-sum plans held by the Company
and its domestic consolidated subsidiaries are calculated using the simplified method.
2. Defined benefit plan
(1) Adjustment table for the beginning and the ending balance for projected benefit obligation
(excluding the benefit plan applying the simplified method)
Beginning balance for projected benefit obligation
Cumulative effects of changes in accounting policies
Restated balance
Service cost
Interest cost
Actuarial losses (gains) arising during the period
Prior service cost arising during the period
Amount of retirement benefits paid
Decrease due to the conclusion of the plan
Foreign currency translation adjustment
Other
Ending balance for projected benefit obligation
(Millions of yen)
89,633
(4,787)
84,845
4,209
1,984
5,404
(1,348)
(3,796)
(2,145)
1,909
(4)
91,059
(2) Adjustment table for the beginning and the ending balance for plan assets
(excluding the benefit plan applying the simplified method)
Beginning balance for plan assets
Expected return on plan assets
Actuarial losses (gains) arising during the period
Employer contributions
Amount of retirement benefits paid
Decrease due to the conclusion of the plan
Foreign currency translation adjustment
Other
Ending balance for plan assets
(Millions of yen)
92,228
3,396
6,985
3,622
(3,454)
(2,145)
1,831
(13)
102,450
(3) Adjustment table for the beginning and the ending balance for net defined benefit liabilities under the simplified method
Beginning balance for net defined benefit liabilities
Retirement benefit expenses
Amount of retirement benefits paid
Ending balance for net defined benefit liabilities
(Millions of yen)
2,500
980
(806)
2,674
- 26 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(4) Adjustment table for the ending balance for projected benefit obligation and plan assets, and net defined benefit liabilities and
assets recorded on the consolidated balance sheet
Retirement benefit obligation (funded)
Plan assets
Retirement benefit obligation (unfunded)
Net amount for assets and liabilities recorded on the consolidated
balance sheet
(Millions of yen)
(89,278)
102,450
13,172
(4,455)
8,716
Net defined benefit liabilities
Net defined benefit assets
Net amount for assets and liabilities recorded on the consolidated
balance sheet
Note: Including the benefit plan applying the simplified method.
(10,709)
19,426
8,716
(5) Amount of retirement benefit expenses and its breakdown
Service cost
Interest cost
Expected return on plan assets
Recognized actuarial losses (gains) during the period
Amortization of prior service cost during the period
Retirement benefit expenses calculated by the simplified method
Other
Subtotal
Loss due to the conclusion of the defined benefit plan
Total
(Millions of yen)
4,209
1,984
(3,396)
162
(208)
980
69
3,802
811
4,614
(6) Remeasurements of defined benefit plans
Breakdown of the items (before adoption of tax-effect accounting) recorded in remeasurements of defined benefit plans is as
follows:
Prior service cost
Actuarial losses (gains)
Total
(Millions of yen)
(1,298)
(2,244)
(3,543)
(7) Remeasurements of defined benefit plans
Breakdown of the items (before adoption of tax-effect accounting) recorded in remeasurements of defined benefit plans is as
follows:
Unrecognized prior service cost
Unrecognized actuarial gain
Total
(Millions of yen)
(1,316)
4,556
3,239
(8) Plan assets
(i) Breakdown of plan assets
Percentages of major asset classes to total plan assets are as follows:
Domestic bonds
Domestic equities
International bonds
International equities
Insurance assets (general account)
Cash and deposits
Real estate
Other
Total
5%
8%
24%
21%
16%
0%
2%
24%
100%
(ii) Method for setting the expected long-term rate of return on plan assets
Current and expected allocation of plan assets and long-term rate of return on various assets composing the plan assets are taken
into account in determining the expected long-term rate of return on plan assets.
- 27 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(9) Basis for computation used in actuarial calculation
Basis for computation used in major actuarial calculation
Discount rate
Expected long-term rate of return on plan assets
Expected rate of salary increases
Mainly 1.2%
Mainly 2.5%
Mainly 4.5%
3. Defined contribution plan
Amount of contribution required to defined contribution plan paid by the Company and its consolidated subsidiaries is ¥4,832
million.
Current fiscal year (April 1, 2015, to March 31, 2016)
1. Outline of the retirement benefit plans adopted
The Company and its domestic consolidated subsidiaries have a defined benefit corporate pension plan and a retirement lump-sum
plan as defined-benefit plans, as well as a defined contribution pension plan. Several overseas consolidated subsidiaries have either
defined benefit or defined contribution pension plans.
Net defined benefit liabilities and retirement benefit expenses for certain of the retirement lump-sum plans held by the Company
and its domestic consolidated subsidiaries are calculated using the simplified method.
2. Defined benefit plan
(1) Adjustment table for the beginning and the ending balance for projected benefit obligation
(excluding the benefit plan applying the simplified method)
Beginning balance for projected benefit obligation
Service cost
Interest cost
Actuarial losses (gains) arising during the period
Prior service cost arising during the period
Amount of retirement benefits paid
Effect of changes in scope of consolidation
Foreign currency translation adjustment
Other
Ending balance for projected benefit obligation
(Millions of yen)
91,059
5,228
1,912
3,687
149
(4,072)
266
(3,017)
180
95,394
(2) Adjustment table for the beginning and the ending balance for plan assets
(excluding the benefit plan applying the simplified method)
Beginning balance for plan assets
Expected return on plan assets
Actuarial losses (gains) arising during the period
Employer contributions
Amount of retirement benefits paid
Foreign currency translation adjustment
Other
Ending balance for plan assets
(Millions of yen)
102,450
3,796
(4,689)
3,185
(3,576)
(2,487)
0
98,679
(3) Adjustment table for the beginning and the ending balance for net defined benefit liabilities under the simplified method
Beginning balance for net defined benefit liabilities
Retirement benefit expenses
Amount of retirement benefits paid
Ending balance for net defined benefit liabilities
(Millions of yen)
2,674
1,046
(994)
2,726
- 28 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(4) Adjustment table for the ending balance for projected benefit obligation and plan assets, and net defined benefit liabilities and
assets recorded on the consolidated balance sheet
Retirement benefit obligation (funded)
Plan assets
Retirement benefit obligation (unfunded)
Net amount for assets and liabilities recorded on the consolidated
balance sheet
(Millions of yen)
(92,759)
98,679
5,919
(5,361)
557
Net defined benefit liabilities
Net defined benefit assets
Net amount for assets and liabilities recorded on the consolidated
balance sheet
Note: Including the benefit plan applying the simplified method
(10,982)
11,540
557
(5) Amount of retirement benefit expenses and its breakdown
Service cost
Interest cost
Expected return on plan assets
Recognized actuarial losses (gains) during the period
Amortization of prior service cost during the period
Retirement benefit expenses calculated by the simplified method
Other
Total
(Millions of yen)
5,228
1,912
(3,796)
(102)
(218)
1,046
255
4,326
(6) Remeasurements of defined benefit plans
Breakdown of the items (before adoption of tax-effect accounting) recorded in remeasurements of defined benefit plans is as
follows:
Prior service cost
Actuarial losses (gains)
Total
(Millions of yen)
204
7,887
8,091
(7) Remeasurements of defined benefit plans
Breakdown of the items (before adoption of tax-effect accounting) recorded in remeasurements of defined benefit plans is as
follows:
Unrecognized prior service cost
Unrecognized actuarial gain
Total
(Millions of yen)
(1,112)
12,443
11,331
(8) Plan assets
(i) Breakdown of plan assets
Percentages of major asset classes to total plan assets are as follows:
Domestic bonds
Domestic equities
International bonds
International equities
Insurance assets (general account)
Cash and deposits
Real estate
Other
Total
6%
8%
25%
18%
17%
1%
2%
23%
100%
(ii) Method for setting the expected long-term rate of return on plan assets
Current and expected allocation of plan assets and long-term rate of return on various assets composing the plan assets are taken
into account in determining the expected long-term rate of return on plan assets.
- 29 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(9) Basis for computation used in actuarial calculation
Basis for computation used in major actuarial calculation
Discount rate
Mainly 0.3%
Expected long-term rate of return on plan assets
Mainly 2.5%
Expected rate of salary increases
Mainly 3.5%
(Note) The discount rate applied at the beginning of the fiscal year was mainly 1.2%; however, as a result of the review made at
the end of the fiscal year under review, the Company has changed the discount rate to 0.3%, as it determined that the
change of the discount rate would have an impact on the amount of retirement benefit obligation.
3. Defined contribution plan
Amount of contribution required to defined contribution plan paid by the Company and its consolidated subsidiaries is ¥4,741
million.
Tax-Effect Accounting
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause
Previous fiscal year
(As of March 31, 2015)
Deferred tax assets:
Provision for product warranties
Unrealized profit of inventories
Investment securities
Tax loss carryforwards
Deferred revenue
Software and other assets
Inventories
Provision for bonuses
Net defined benefit liabilities
Allowance for doubtful accounts
Foreign income tax credit
Other
Subtotal of deferred tax assets
Less valuation allowance
Total deferred tax assets
16,275
12,536
6,165
6,805
5,803
4,782
4,325
3,556
2,119
1,238
1,634
21,225
86,466
(21,140)
65,326
Previous fiscal year
(As of March 31, 2015)
Deferred tax liabilities:
Intangible assets
Undistributed earnings of consolidated
subsidiaries
Valuation difference on available-for-sale
securities
Net defined benefit assets
Reserve for advanced depreciation of
non-current assets
Other
Total deferred tax liabilities
Net deferred tax assets (liabilities)
(Millions of yen)
Current fiscal year
(As of March 31, 2016)
14,946
9,322
6,774
5,640
5,505
5,345
4,970
3,529
2,246
1,425
733
17,662
78,100
(16,668)
61,431
(Millions of yen)
Current fiscal year
(As of March 31, 2016)
(68,259)
(64,086)
(30,455)
(33,018)
(24,816)
(14,693)
(6,069)
(3,573)
(1,728)
(1,186)
(10,091)
(141,421)
(10,021)
(126,581)
(76,095)
(65,149)
(Change in presentation method)
From the fiscal year under review, “deferred revenue,” which was included in “other” of deferred tax assets in the
previous fiscal year, has been separately presented in order to enhance the clarity of disclosures. To reflect this change
in presentation method, a reclassification has been made to the notes for the previous fiscal year.
As a result, the amount of ¥27,028 million presented as “other” of deferred tax assets in the previous fiscal year has
been reclassified into ¥5,803 million in “deferred revenue” and ¥21,225 million in “other.”
- 30 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
2. Reconciliation between the normal statutory effective income tax rate and the actual effective tax rate after the adoption
of tax-effect accounting
(%)
Normal statutory effective income tax rate
(Reconciliation items)
Difference in foreign subsidiaries’ tax rate
Amortization of goodwill
Tax and tax effect imposed on dividends from
foreign subsidiaries
Valuation allowance
Dividends income and others that are
permanently excluded from taxable income
Tax credit for experiment and research
expense, etc.
Entertainment expenses and others that are
permanently excluded from taxable loss
Other
Actual effective income taxes rate after
adoption of tax-effect accounting
Previous fiscal year
(As of March 31, 2015)
―
Current fiscal year
(As of March 31, 2016)
33.0
―
―
(6.5)
4.0
―
3.7
―
(1.4)
―
(1.2)
―
(1.1)
―
0.5
―
(0.1)
―
31.1
(Note) Notes regarding the difference between the normal statutory effective income tax rate and the actual effective tax rate after the
adoption of tax-effect accounting are omitted as the difference is not more than 5% of the normal statutory effective income
tax rate for the previous fiscal years.
3. Revision of the amounts of deferred tax assets and deferred tax liabilities due to the change in corporate income tax rate
Following the enactment in the Diet of the “Act for Partial Revision of the Income Tax Act, etc.,” and the “Act for the
Partial Revision of the Local Tax Act, etc.,” on March 29, 2016, the statutory effective tax rate used in the calculation
of deferred tax assets and deferred tax liabilities for the fiscal year under review (however, limited to those that are
expected to be reversed on and after April 1, 2016) has been changed from 32.2% of the previous fiscal year to 30.8%
for those expected to be collected or paid during the period from April 1, 2016, to March 31, 2018, and to 30.6% for
those expected to be collected or paid on and after April 1, 2018.
As a result of these changes, deferred tax liabilities (net of deferred tax assets), income taxes – deferred recorded in
the fiscal year under review, deferred gains or losses on hedges, and remeasurements of defined benefit plans decreased
by ¥1,105 million, ¥435 million, ¥27 million, and ¥86 million, respectively, while valuation difference on
available-for-sale securities increased by ¥784 million.
- 31 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Segment Information, etc.
[Segment Information]
1. Summary of reported segments
Reported segments of the Company are constituent units of the Company, for which separate financial statements are available and
are subject to periodic review by the Board of Directors when deciding the allocation of management resources and evaluating
business results.
The Company designates “Air-Conditioning and Refrigeration Equipment” and “Chemicals,” which are segmented based on
similarities among products and services, as reported segments.
“Air-Conditioning and Refrigeration Equipment” is engaged in the manufacture (including installation work) and sale of
air-conditioning and refrigeration equipment. “Chemicals” is engaged in the manufacture and sale of chemicals.
2. Method of calculating net sales, income or loss, assets, liabilities and other items by reported segment
Methods of accounting procedures for reported business segments are generally the same as those for statements in “Basis of
Presenting the Consolidated Financial Statements.”
Income of reported segments is the figure based on operating income. Intersegment profit is based on market prices.
3. Information on net sales, income or loss, assets, liabilities, and other items by reported segment
Previous fiscal year (April 1, 2014, to March 31, 2015)
Reported segment
Air-Conditioning
and Refrigeration Chemicals
Equipment
Net sales
Sales to outside customers
Intersegment sales
Total
Segment income
Segment asset
Other items
Depreciation
Amortization of goodwill
Investments in entities accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
Notes:
1.
2.
3.
Subtotal
Others
(Note 1)
Total
54,510 1,915,013
476
9,402
54,986 1,924,416
3,583
190,618
34,224 2,071,614
(Millions of yen)
Adjustment
(Note 2)
Amount recorded on
the Consolidated
Financial Statements
(Note 3)
―
(9,402)
(9,402)
(30)
192,374
1,915,013
―
1,915,013
190,587
2,263,989
1,710,944
874
1,711,819
170,484
1,847,343
149,558
8,051
157,609
16,550
190,046
1,860,503
8,925
1,869,429
187,034
2,037,390
41,235
24,920
10,221
―
51,456
24,920
1,373
―
52,829
24,920
―
―
52,829
24,920
12,242
7,555
19,798
―
19,798
―
19,798
57,914
17,507
75,421
2,937
78,359
―
78,359
The “Others” segment is a business segment not included in reported segments. It includes the oil hydraulic equipment
business, the defense systems-related product business, and the electronics business.
The breakdown of adjustments is as follows:
(1) Adjustment to segment income, ¥(30) million, is intersegment transaction elimination.
(2) Adjustment to segment assets, ¥192,374 million, includes corporate assets not allocated to each reported segment
of ¥202,383 million and ¥(10,008) million of intersegment transaction elimination. Corporate assets mainly consist
of surplus funds for management (cash and deposits) and long-term investment funds (investment securities) of the
Company.
Segment income is adjusted with operating income in the Consolidated Statement of Income.
- 32 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Current fiscal year (April 1, 2015, to March 31, 2016)
(Millions of yen)
Reported segment
Air-Conditioning
and Refrigeration Chemicals
Equipment
Net sales
Sales to outside customers
Intersegment sales
Total
Segment income
Segment asset
Other items
Depreciation
Amortization of goodwill
Investments in entities accounted
for using equity method
Increase in property, plant and
equipment, and intangible assets
Notes:
1.
2.
3.
Subtotal
Others
(Note 1)
Total
53,393 2,043,691
500
11,409
53,893 2,055,100
3,529
217,935
35,370 2,023,210
Adjustment
(Note 2)
Amount recorded on
the Consolidated
Financial Statements
(Note 3)
―
(11,409)
(11,409)
(63)
167,894
2,043,691
―
2,043,691
217,872
2,191,105
1,828,012
613
1,828,626
193,785
1,798,332
162,285
10,295
172,581
20,620
189,507
1,990,298
10,909
2,001,207
214,406
1,987,840
44,325
26,183
12,055
98
56,381
26,281
1,527
―
57,908
26,281
―
―
57,908
26,281
11,814
6,798
18,612
―
18,612
―
18,612
90,616
18,156
108,773
3,938
112,711
―
112,711
The “Others” segment is a business segment not included in reported segments. It includes the oil hydraulic equipment
business, the defense systems-related product business, and the electronics business.
The breakdown of adjustments is as follows:
(1) Adjustment to segment income, ¥(63) million, is intersegment transaction elimination.
(2) Adjustment to segment assets, ¥167,894 million, includes corporate assets not allocated to each reported segment
of ¥173,175 million and ¥(5,281) million of intersegment transaction elimination. Corporate assets mainly consist
of surplus funds for management (cash and deposits) and long-term investment funds (investment securities) of the
Company.
Segment income is adjusted with operating income in the Consolidated Statement of Income.
[Relevant Information]
Previous fiscal year (April 1, 2014, to March 31, 2015)
1. Information by product and by service
Information by product and by service is omitted, as segmentation of products and services is the same as that of reported segments.
2. Information by geographical segment
(1) Net sales
(Millions of yen)
Asia and
Japan
U.S.
China
Europe
Other
Oceania
498,682
432,423
353,376
272,372
243,566
114,592
Note: Net sales are classified based on countries or regions where respective customers are located.
Total
1,915,013
(2) Property, plant and equipment
(Millions of yen)
Japan
U.S.
China
113,028
66,244
91,106
Asia and
Oceania
37,209
Europe
Other
Total
30,844
9,322
347,755
3. Information by principal customers
None applicable
Current fiscal year (April 1, 2015, to March 31, 2016)
1. Information by product and by service
Information by product and by service is omitted, as segmentation of products and services is the same as that of reported segments.
2. Information by geographical segment
(1) Net sales
(Millions of yen)
Asia and
Japan
U.S.
China
Europe
Other
Oceania
502,233
484,950
349,265
304,626
276,587
126,027
Note: Net sales are classified based on countries or regions where respective customers are located.
- 33 -
Total
2,043,691
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(2) Property, plant and equipment
(Millions of yen)
Japan
U.S.
China
140,640
91,186
77,981
Asia and
Oceania
34,957
Europe
Other
Total
31,379
8,955
385,099
3. Information by principal customers
None applicable
[Information Related to Impairment Loss of Non-current Assets by Reported Segment]
Previous fiscal year (April 1, 2014, to March 31, 2015)
(Millions of yen)
Impairment loss
Air-Conditioning
and Refrigeration
Equipment
―
Chemicals
Others
Corporate or
eliminations
Total
4,158
419
―
4,578
Current fiscal year (April 1, 2015, to March 31, 2016)
(Millions of yen)
Impairment loss
Air-Conditioning
and Refrigeration
Equipment
40
Chemicals
Others
Corporate or
eliminations
Total
―
450
―
490
[Information Related to Amount of Amortization of Goodwill and Unamortized Balance by Reported Segment]
Previous fiscal year (April 1, 2014, to March 31, 2015)
(Millions of yen)
Air-Conditioning
and Refrigeration
Equipment
Chemicals
Others
Corporate or
eliminations
Balance at end of
369,964
―
―
―
current period
Note: Amount of amortization of goodwill is omitted, as similar information is disclosed in segment information.
Total
369,964
Current fiscal year (April 1, 2015, to March 31, 2016)
(Millions of yen)
Air-Conditioning
and Refrigeration
Equipment
Chemicals
Others
Corporate or
eliminations
Balance at end of
329,753
―
―
―
current period
Note: Amount of amortization of goodwill is omitted, as similar information is disclosed in segment information.
[Information Related to Gain on Bargain Purchase by Reported Segment]
Previous fiscal year (April 1, 2014, to March 31, 2015)
No important items applicable.
Current fiscal year (April 1, 2015, to March 31, 2016)
No important items applicable.
- 34 -
Total
329,753
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Per Share Information
(Yen)
Previous fiscal year
Current fiscal year
(April 1, 2014,
(April 1, 2015,
to March 31, 2015)
to March 31, 2016)
Net assets per share
3,511.34
3,473.54
Earnings per share
410.19
469.23
Diluted earnings per share
409.75
468.84
Notes: 1. The basis for calculations of earnings per share and diluted earnings per share is provided below.
Previous fiscal year
(April 1, 2014,
to March 31, 2015)
Earnings per share
Profit attributable to owners of parent
(Millions of yen)
Amount not belonging to common
shareholders (Millions of yen)
Profit attributable to owners of parent
related to common stock (Millions of
yen)
Average number of shares of common
stock during the year (Thousands of
shares)
Current fiscal year
(April 1, 2015,
to March 31, 2016)
119,674
136,986
―
―
119,674
136,986
291,755
291,941
309
239
[309]
[239]
―
―
Diluted earnings per share
Increase in the number of shares of
common stock (Thousands of shares)
[Of the above, stock options by exercising
subscription rights to shares] (Thousands
of shares)
Overview of residual securities excluded
from the calculation of diluted earnings per
share, as they have no dilutive effect
2. The basis for calculations of net assets per share is provided below.
Previous fiscal year
(As of March 31, 2015)
Total net assets (Millions of yen)
1,048,311
Deduction from total net assets (Millions of
23,586
yen)
[Of the above, subscription rights to shares]
[992]
(Millions of yen)
[Of the above, non-controlling interests]
[22,594]
(Millions of yen)
Shareholders’ equity pertaining to common
stock at the end of the fiscal year (Millions
1,024,724
of yen)
Number of shares of common stock used to
calculate net assets per share (Thousands of
291,833
shares)
- 35 -
Current fiscal year
(As of March 31, 2016)
1,037,469
23,060
[1,118]
[21,942]
1,014,409
292,038
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
Significant Subsequent Events
[Acquisition of Flanders Holdings LLC]
At the Board of Directors meeting held on February 9, 2016, the Company passed a resolution to acquire all equity
interests of Flanders Holdings LLC (hereinafter, “Flanders”) through American Air Filter Company, Inc. (hereinafter,
“AAF”) and entered into the equity transfer agreement with Flanders Investment Holdings LLC. On April 27, 2016, the
Company has finally completed the acquisition of all equity interests and turned Flanders into a subsidiary.
(1) Summary of business combination
(i) Summary of the acquired company
Name of the acquired company:
Operations:
Flanders Holdings LLC
Manufacture and sale of air filters and other related products
Location:
Wilmington, Delaware, United States of America
Size of Company (as of December 2015)
Total assets: US$238 million (¥28,722 million)
Net sales: US$298 million (¥36,198 million)
(ii) Reasons for the acquisition
With this acquisition, the Flanders business will be integrated into AAF and enable AAF to leverage its global
sales network to market the cleanroom equipment and high-end air filter products that are the strengths of
Flanders. In addition to making AAF the leading manufacturer in the United States, which is reportedly the
largest air filter market in the world, this merger will also position AAF as a leading company in the global
market.
(iii) Date of business combination
April 27, 2016
(iv) Legal form of business combination
Acquisition of equity interest for cash considerations
(v) Name of entity after business combination
Flanders Holdings LLC
(vi) Acquired equity interest ratio
100%
(vii) Main grounds of the decision of acquiring company
AAF, a subsidiary of the Company, is regarded as an acquiring company since AAF acquired all equity interests
of Flanders for cash considerations.
(2) Acquisition price of the acquired company and its breakdown
Consideration for acquisition: Cash US$204 million (¥22,796 million)
Acquisition cost is the cost that is based on the tentative calculation and will be determined after adjusting variances in
working capital and others based on the contract. Cost that is directly related to the acquisition has yet to be
determined at this time.
(3) Fundrasing method
Internally generated funds and bank loans were used to fund this acquisition.
Omission of Disclosure
The notes to Consolidated Statement of Cash Flows, lease transactions, related-party transactions, financial instruments,
securities, derivative transactions, stock options and business combinations have been omitted hereby, as the information
disclosure of the respective statements on the Brief Report on the Settlement of Accounts was considered insignificant.
- 36 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
6. Non-Consolidated Financial Statements
(1) Balance Sheet
(Millions of yen)
FY2014
(As of March 31, 2015)
Assets
Current assets
Cash and deposits
Notes receivable – trade
Accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments – trade
Prepaid expenses
Deferred tax assets
Short-term loans receivable from subsidiaries and
associates
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Structures, net
Machinery and equipment, net
Vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Patent right
Leasehold right
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital of subsidiaries and
associates
Long-term loans receivable
Long-term loans receivable from employees
Long-term loans receivable from subsidiaries and
associates
Long-term prepaid expenses
Prepaid pension cost
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
6,057
446
94,942
44,049
27,954
6,247
42
1,112
4,685
6,369
757
80,109
34,410
28,070
6,172
3
1,592
6,110
60,860
46,781
(3)
293,177
85,490
34,474
(3)
283,557
32,016
3,444
27,088
78
7,229
20,237
2,136
13,375
105,605
54,930
5,853
34,744
69
9,835
20,260
1,955
6,340
133,988
413
284
1
1,052
150
1,902
341
284
1
1,044
149
1,821
198,980
488,063
169,210
476,488
90,263
115
100
100,733
101
101
146,429
1,257
13,118
8,679
(1,018)
945,991
1,053,499
1,346,676
- 37 -
FY2015
(As of March 31, 2016)
118,251
1,184
13,729
9,714
(575)
888,939
1,024,749
1,308,307
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
FY2014
(As of March 31, 2015)
Liabilities
Current liabilities
Notes payable – trade
Accounts payable – trade
Short-term loans payable
Commercial papers
Current portion of bonds
Current portion of long-term loans payable
Lease obligations
Accounts payable – other
Accrued expenses
Income taxes payable
Advances received
Deposits received
Provision for directors’ bonuses
Provision for product warranties
Notes payable – facilities
Accounts payable – facilities
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Provision for retirement benefits
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advanced depreciation of non-current
assets
Reserve for special account for advanced
depreciation of non-current assets
Reserve for special depreciation
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
4,015
37,647
80,699
16,000
―
38,426
1,167
488
23,292
6,755
577
32,963
300
7,082
809
7,980
1,147
259,357
3,724
34,874
85,737
14,000
30,000
37,296
1,191
455
24,850
1,137
525
38,581
350
7,347
6,657
13,511
131
300,373
140,000
413,799
1,095
1,994
25,832
327
583,048
842,406
110,000
367,465
890
2,044
14,657
2,179
497,236
797,609
85,032
85,032
82,977
466
83,443
82,977
649
83,626
6,066
6,066
3,628
3,887
9
5
146,210
117,162
273,082
(5,214)
436,343
- 38 -
FY2015
(As of March 31, 2016)
166
―
146,210
144,571
300,901
(4,592)
464,969
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
FY2014
(As of March 31, 2015)
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets
67,365
(430)
66,934
992
504,270
1,346,676
- 39 -
FY2015
(As of March 31, 2016)
45,970
(1,360)
44,609
1,118
510,697
1,308,307
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(2) Statement of Income
(Millions of yen)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Interest on securities
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest on bonds
Sales discounts
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on reversal of subscription rights to shares
Gain on sales of investments in capital of subsidiaries
and associates
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and
associates
Loss on valuation of investments in capital of
subsidiaries and associates
Impairment loss
Loss on liquidation of subsidiaries and associates
Other
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit
FY2014
(April 1, 2014,
to March 31, 2015)
477,579
346,043
131,536
106,860
24,675
FY2015
(April 1, 2015,
to March 31, 2016)
500,371
353,570
146,800
108,953
37,846
1,809
5
46,906
7,548
2,715
58,985
2,394
3
58,078
―
2,188
62,664
4,907
1,821
292
―
971
7,992
75,668
4,948
1,768
279
5,658
1,387
14,043
86,467
4,006
100
88
3
3,456
7,564
―
91
229
―
315
605
―
13,328
6,642
―
―
2
6,875
76,357
11,923
179
12,102
64,254
- 40 -
2,138
450
259
0
17,098
69,460
10,213
(2,140)
8,073
61,387
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(3) Statement of Changes in Equity
FY2014 (April 1, 2014, to March 31, 2015)
Capital
stock
Balance at beginning of current period
(Millions of yen)
Shareholders’ equity
Capital surplus
Retained earnings
Other retained earnings
Total
Legal
Legal capital Other capital capital
Reserve for advanced
retained
surplus
surplus
depreciation of
surpluses
earnings
non-current assets
85,032
82,977
572
83,549
6,066
3,452
85,032
82,977
572
83,549
6,066
3,452
Cumulative effects of changes in
accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Reversal of reserve for advanced
depreciation of non-current assets
(3)
Provision of reserve for advanced
depreciation of non-current assets
179
Reversal of reserve for special
account for advanced depreciation
of non-current assets
Provision of reserve for special
account for advanced depreciation
of non-current assets
Reversal of reserve for special
depreciation
Provision of reserve for special
depreciation
Profit
Purchase of treasury shares
Disposal of treasury shares
(105)
(105)
Net changes of items other than
shareholders’ equity
Total changes of items during period
Balance at end of current period
―
―
85,032
82,977
(105)
466
- 41 -
(105)
83,443
―
175
6,066
3,628
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
Shareholders’ equity
Retained earnings
Other retained earnings
Reserve for
special account Reserve for
for advanced
special
depreciation of depreciation
non-current
assets
Balance at beginning of current period
―
11
General
reserve
Retained
earnings
brought
forward
Total
retained
earnings
Treasury
shares
146,210
70,340
226,080
(4,543)
2,293
2,293
72,633
228,373
(19,545)
(19,545)
Cumulative effects of changes in
accounting policies
Restated balance
―
11
146,210
Total
shareholders’
equity
390,118
2,293
(4,543)
392,412
Changes of items during period
Dividends of surplus
Reversal of reserve for advanced
depreciation of non-current assets
―
―
―
―
―
―
(9)
―
―
3
Provision of reserve for advanced
depreciation of non-current assets
(179)
Reversal of reserve for special
account for advanced depreciation
of non-current assets
Provision of reserve for special
account for advanced depreciation
of non-current assets
9
(19,545)
Reversal of reserve for special
depreciation
(5)
5
―
―
Provision of reserve for special
depreciation
0
(0)
―
―
Profit
64,254
64,254
64,254
Purchase of treasury shares
(2,094)
(2,094)
Disposal of treasury shares
1,423
1,317
Net changes of items other than
shareholders’ equity
Total changes of items during period
9
(5)
Balance at end of current period
9
5
―
44,529
44,708
(670)
43,931
146,210
117,162
273,082
(5,214)
436,343
- 42 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
Valuation and translation adjustments
Subscription
Total net
Valuation difference on Deferred gains or Total valuation
rights to
assets
available-for-sale
and
translation
shares
losses on hedges
securities
adjustments
Balance at beginning of current period
Cumulative effects of changes in
accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Reversal of reserve for advanced
depreciation of non-current assets
Provision of reserve for advanced
depreciation of non-current assets
Reversal of reserve for special
account for advanced depreciation
of non-current assets
Provision of reserve for special
account for advanced depreciation
of non-current assets
Reversal of reserve for special
depreciation
Provision of reserve for special
depreciation
Profit
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other than
shareholders’ equity
Total changes of items during period
Balance at end of current period
39,799
(126)
39,672
841
430,633
2,293
39,799
(126)
39,672
841
432,926
(19,545)
―
―
―
―
―
―
64,254
(2,094)
1,317
27,565
(304)
27,261
150
27,565
(304)
27,261
150
71,344
67,365
(430)
66,934
992
504,270
- 43 -
27,412
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
FY2015 (April 1, 2015, to March 31, 2016)
Capital
stock
Balance at beginning of current period
(Millions of yen)
Shareholders’ equity
Capital surplus
Retained earnings
Other retained earnings
Total
Legal
Legal capital Other capital capital
Reserve for advanced
retained
surplus
surplus
depreciation of
surpluses
earnings
non-current assets
85,032
82,977
466
83,443
6,066
3,628
85,032
82,977
466
83,443
6,066
3,628
Cumulative effects of changes in
accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Reversal of reserve for advanced
depreciation of non-current assets
(6)
Provision of reserve for advanced
depreciation of non-current assets
265
Reversal of reserve for special
account for advanced depreciation
of non-current assets
Provision of reserve for special
account for advanced depreciation
of non-current assets
Reversal of reserve for special
depreciation
Provision of reserve for special
depreciation
Profit
Purchase of treasury shares
Disposal of treasury shares
183
183
Net changes of items other than
shareholders’ equity
Total changes of items during period
Balance at end of current period
―
―
183
183
―
259
85,032
82,977
649
83,626
6,066
3,887
- 44 -
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
Shareholders’ equity
Retained earnings
Other retained earnings
Reserve for
special account Reserve for
for advanced
special
depreciation of depreciation
non-current
assets
Balance at beginning of current period
9
5
General
reserve
Retained
earnings
brought
forward
Total
retained
earnings
Treasury
shares
146,210
117,162
273,082
(5,214)
Cumulative effects of changes in
accounting policies
Restated balance
Total
shareholders’
equity
436,343
―
9
5
146,210
117,162
273,082
(33,567)
(33,567)
(5,214)
436,343
Changes of items during period
Dividends of surplus
Reversal of reserve for advanced
depreciation of non-current assets
Reversal of reserve for special
account for advanced depreciation
of non-current assets
Provision of reserve for special
account for advanced depreciation
of non-current assets
―
―
―
―
―
―
―
―
5
―
―
―
―
―
61,387
61,387
6
Provision of reserve for advanced
depreciation of non-current assets
(265)
(9)
9
166
Reversal of reserve for special
depreciation
(166)
(5)
Provision of reserve for special
depreciation
Profit
(33,567)
Purchase of treasury shares
61,387
(479)
Disposal of treasury shares
(479)
1,101
1,284
622
28,625
Net changes of items other than
shareholders’ equity
Total changes of items during period
156
(5)
Balance at end of current period
166
―
―
27,408
27,819
146,210
144,571
300,901
- 45 -
(4,592)
464,969
Daikin Industries, Ltd. (6367), Brief Report on the Settlement of Accounts (Consolidated) for the Fiscal Year Ended March 31, 2016
(J-GAAP)
(Millions of yen)
Valuation and translation adjustments
Subscription
Total net
Valuation difference on Deferred gains or Total valuation
rights to
assets
available-for-sale
and
translation
shares
losses on hedges
securities
adjustments
Balance at beginning of current period
Cumulative effects of changes in
accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Reversal of reserve for advanced
depreciation of non-current assets
Provision of reserve for advanced
depreciation of non-current assets
Reversal of reserve for special
account for advanced depreciation
of non-current assets
Provision of reserve for special
account for advanced depreciation
of non-current assets
Reversal of reserve for special
depreciation
Provision of reserve for special
depreciation
Profit
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other than
shareholders’ equity
Total changes of items during period
Balance at end of current period
67,365
(430)
66,934
992
504,270
―
67,365
(430)
66,934
992
504,270
(33,567)
―
―
―
―
―
―
61,387
(479)
1,284
(21,394)
(21,394)
45,970
(929)
(22,324)
(929)
(22,324)
(1,360)
44,609
126
(22,198)
126
6,426
1,118
510,697
The above represents a translation, for reference and convenience only, of the original notice issued in Japanese. We did our
utmost to ensure accuracy in our translation and believe it to be of the highest standard. However, due to differences of
accounting, legal and other systems as well as of language, this English version might contain inaccuracies, and therefore
might be inconsistent with the original intent imported from the Japanese. In the event of any discrepancies between the
Japanese and English versions, the former shall prevail as the official version.
- 46 -