CEO Letter at Dyson

Dear shareholders,

At Dyson, 2018 was a defining year for us as we invented new products, won international awards and extended our operations to new markets. As Dyson grows, we remain committed to engineering the tools that serve people and businesses in the 21st century. In 2018, our strategic approach resulted in big victories for Dyson while also establishing the foundation for a brighter future.

2018 Highlights

Our consistent strategic investment in young talent and innovative technology improved our competitiveness and our financial bottom line. For the fiscal year of 2018, Dyson achieved $3.5 billion in revenue. Additionally, we repurchased around $11 million of Dyson stock through dividends and stock buybacks.

Our operating profit has proven resilient despite MRL tests that caused delays in European operations. Dyson faced some distribution difficulties as our operational procedures were negatively affected by MRL tests. However, by increasing test capacities we intend to pass the next tests smoothly.

Last year has also proved an eventful year for us as we launched new products that positioned us at the forefront of a technological revolution. We delivered the value of $50 million in products and launched more than 10 new models by our brand.

Product Achievements

Dyson’s commitment to research and development resulted in many breakthrough technologies. In 2018, we introduced Dyson Airblade hand dryers beating Dyson’s own record as we decreased dry time to only 12 seconds. Dyson Airblade is now a number one hand dryer amongst restaurant businesses in North America. It has also been praised for its design by interior designers in the 2018 Design Conference UK.   

In the beauty sector, the year began with the announcement of new Dyson Supersonic hair dryer. Dyson Supersonic social campaign proved to be the most successful social campaign Dyson ever created as hashtag #DysonHair was mentioned 3 million times on social media just after a month since its launch. The new model now comprises 20% of all the products and bring in 15% of the revenue.

Award and recognition

Last year was filled with achievements and awards that highlighted the innovative technology and unique design of our products. In its first year on the market, the Dyson Supersonic received the “Best of Beauty” by Allure, the “Beauty Innovator” Award Refinery29 and the “Best of Tech” by InStyle for 2018.

Dyson has also been recognised for its corporate social responsibility efforts for our project “Young Engineers of South Africa” and received the “Global Good Awards 2018”. Additionally, our commitment to protecting the environment and using eco-friendly technology has been acknowledged by the “Sustainability Award 2018” by Green Peace. We are proud to be a part of a journey for a safer environment and reduced emissions.

Expansion

As our brand expands, Dyson is growing at a significant pace. In 2018, we introduced Dyson products to two new markets around the world as we entered Japan and Korea. We also continue to operate in four different market sectors, growing our appliances portfolio.

As the leaders in the industry, we are focused on several areas that we are driving forward. Our plans for 2019 are even more ambitious as we plan to introduce our products in Central Asian markets and Russia. We aim to establish joint ventures with a leading Russian brand to enter these markets successfully.

There’s a great amount of opportunity for us this year and this decade. With the UK beginning the withdrawal process from the EU, Dyson opened a second UK campus in Wiltshire as a global hub for our research and development. We continue to work hard to bridge the skills gap in engineering amongst the youth.

Key messages

Efficiency is in our DNA. Since the first product we ever created, our engineers have worked hard to create efficient and cost-effective tools. We work to develop products that appear to be impossible to make and this desire drives us every day. We upgrade, rethink and we never stop improving. Dyson strives to solve problems that others choose to ignore as our engineers are pushed to think outside the box.

Dyson Future

We work and invent for our clients and I would like to thank all of our customers for your continuing support and confidence in Dyson. We appreciate you choosing us to be a part of your journey and growth.

I would like to thank all of our investors for the trust you put into Dyson. I would also like to express gratitude for all the Dyson employees whose work and expertise allow us to grow and excel every year.

I am honoured to be a part of this journey with you and optimistic about our future achievements. We are working together to change the world and I believe that 2019 will continue to be a successful year.

Sincerely,

James Dyson

Chief Executive Officer and Executive Chairman of the Board

March 15, 2019

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