Message to Shareholders and Investors

I would like to take this opportunity to thank all of you for your strong interest in the management of Daikin together with your continued support for our company.

In fiscal year 2022, the business environment deteriorated even further than we had anticipated due to the Shanghai lockdown, soaring prices for raw materials and high logistic costs, the steep rise in inflation, and the economic slowdown.
However, by thoroughly implementing the key measures set at the beginning of the term and responding flexibly and quickly to changing conditions, we could significantly offset the negative impacts and achieve new record highs in financial results.
I believe that the achievement of these results under such a harsh business environment was the outcome of maximizing the strengths that we have cultivated over time within our corporate culture and organizational climate and working hard to quickly develop and meticulously execute corresponding measures.

In fiscal year 2023, the delay in the global economic recovery will make the management environment increasingly more difficult, but efforts to accelerate carbon neutrality and growth in the emerging markets, such as India, are expected to provide our company with excellent opportunities going forward.
Along with further refining the strengths that we have cultivated until now through the implementation of key measures, we plan to challenge even greater business expansion and create new record highs for financial results by accelerating growth investments for the future and strengthening our management structure.

For our dividend, we plan to increase the annual dividend to 240 yen (interim 100 yen and term-end 140 yen), representing a 20-yen from the amount announced in fiscal year 2022.
As for fiscal year 2023, since the outlook for the future business environment is uncertain, we will continue with the present situation unchanged. However, we will strive to expand our business performance and pay dividends in line with our dividend policy of 3% consolidated dividend on equity (DOE) to reward our shareholders.

In the future, we will continue to expand our business while implementing upfront investments for further growth and development as we strive to improve corporate value, increase market capitalization, and further enhance the return of profits to shareholders.

For now, and in the future, we respectively ask for your continued understanding and support of Daikin.

Masanori Togawa
President and CEO
Daikin Industries, Ltd.

May 2023