On behalf of the Daikin Group, I would like to express our sincerest condolences to those who have lost loved ones to the novel coronavirus disease (COVID-19) along with our deepest sympathies to those who have been affected by it.
Despite the difficulty in predicting a return to normalcy from COVID-19, we started a policy in fiscal year 2021 of rapidly steering management in response to the ever-changing business environment and made sure that each measure led to the creation of results.
From the second half of the year, geopolitical risks added to the continuing soaring prices of raw materials and disruptions in logistics to create a further sense of uncertainty for the future. Nevertheless, we believe that we have strengthened our management structure for future growth and development while performing flexible management that reviews plans in a short span of time in response to changing circumstances.
With the impact of COVID-19, prolongation of geopolitical risks, global economic slowdown due to the high costs for resources, and logistical and supply chain risks, the situation for fiscal year 2022 appears even more uncertain.
Conversely, rising energy costs increase the need for energy savings, and this is expected to raise demand for heat pump heaters and inverter units, presenting a unique chance for Daikin since our company excels in environmental technologies and service solutions proposals.
This type of business environment will also provide us greater opportunities to utilize our strength of “anticipating change and responding speedily,” and I believe that this situation will lead to the creation of new record highs in financial results.
For our dividend, we plan to increase the annual dividend to 200 yen (interim 90 yen and term-end 110 yen), representing a 20-yen from the amount announced in fiscal year 2021.
In fiscal year 2022, we plan an annual dividend of 200 yen (interim 100 yen and term-end 100 yen). Due to the unprecedented uncertainty in the management environment, we will continue with the present situation unchanged and strive to secure business performance according to the annual plan as we look to reward our shareholders in line with our dividend policy of maintaining a 3% ratio of dividends to shareholder equity (DOE).
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, I respectively ask for your continued understanding and support of Daikin management.
President and CEO
Daikin Industries, Ltd.
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