Brussels, 10 May 2023 – Daikin Europe N.V. has announced its financial group results for fiscal year 2022, ending 31 March 2023. Driven by strong demand for low-carbon heating and cooling solutions, Daikin reports significant growth in its EMEA turnover of 20%, which now amounts to 5.2 billion euro, the company’s best result ever.
Daikin Europe is market leader in the air conditioning, heating, ventilation and refrigeration (HVAC&R) business in Europe, the Middle East and Africa (EMEA).
Daikin reports significant sales growth overall in EMEA, despite ongoing global challenges, which include continued components shortage, supply chain disruptions, an energy crisis in Europe with record high gas prices, high inflation and lower buying power.
“Despite challenging economic headwinds, Daikin Europe’s strong growth in 2022 exceeds the ambitious targets of our 5-year strategic FUSION 25 plan. Our low-carbon heating and cooling innovations developed in and for EMEA continue to enable the region’s energy transition,” says Masatsugu Minaka, Chairman of the Board of Daikin Europe N.V. and Senior Executive Officer, Daikin Industries Ltd.
Reinforced market leader position
In the residential segment, Daikin reinforced its market leader position. The European market demand for heat pump heating grew faster than ever – over 40% compared to 2021, an effect of the EU measures to decarbonise its building stock and accelerate its independence from fossil fuels. Daikin captured additional market share thanks to investments in European production capacity faster than competition.
- Sales growth in the residential heating segment is mainly driven by Daikin’s air-to-water heat pump heating systems (Daikin Altherma). These have been popular in new-built homes for many years, and have now also found solid entry into the renovation market as full-featured alternatives for all types of fossil-based heating systems.
- Increasing popularity of using Daikin’s residential air conditioning split systems as energy-efficient heating solutions. These units are air-to-air heat pumps that provide both cooling and heating.
“With the increasing demand for heat pumps, our supply and manufacturing organisation was able to increase production output beyond initial plans, despite difficult and irregular component sources. As a result, we realized more than 150% heat pump heating turnover growth compared to the previous fiscal year,” explains Takayuki Kamekawa, Vice-President Sales of Daikin Europe.
In the commercial segment, the post-COVID European market still showed instability in retail and hospitality industry investments. Daikin’s strongest asset proved to be the well-positioned line-up for light commercial applications such as small data centres and warehousing, and good availability of large commercial VRV ranges.
In the refrigeration segment, low demand from food retail chains had a negative impact on the results of Daikin Europe’s subsidiary AHT. Key actions have been initiated to mitigate this effect moving forward, by developing differentiated and integrated offerings.
Daikin also continued to strengthen its service capacities. In 2022, its Italian subsidiary acquired Landi S.p.A, a technical service provider, welcoming 50 new colleagues in the region of Lombardy, Italy.
Investing in new factories and existing manufacturing sites
In 2022 Daikin Europe continued to invest in Europe and the EMEA region, in line with its proximity strategy. Daikin sees this strategic direction as an important reason why it is able to ward off the most adverse effects of global supply chain issues. In the previous year, Daikin Europe announced:
- 90+ million euro investments to expand operations in its heat pump factories in Belgium, Germany, Czech Republic and Turkey.
- An investment of 300 million euro in a new factory for residential heat pump units in Poland. On track for completion in April 2024, the new factory will start operations in July 2024.
- The opening of its first factory in the Kingdom of Saudi Arabia, Daikin Europe’s second factory in the Middle East after Dubai. It is producing air handling units and energy-efficient equipment that is essential for large-space applied air conditioning solutions.
“Our strategy to prioritise R&D and manufacturing of low-carbon HVAC&R innovations close to the markets that we serve, is clearly the right direction,” says Wim De Schacht, Vice-President Service & Solutions and Corporate Affairs of Daikin Europe N.V.
Upcoming 50th anniversary: decade-long consecutive growth in EMEA
The strong growth in 2022 exceeds the ambitions set out in Daikin Europe’s five-year strategic FUSION 25 plan. To keep pace with its ambitious growth trajectory, the Daikin Europe group welcomed over 1,200 new employees throughout its EMEA organization in 2022, growing its workforce by approximately 10%. The company continues to strengthen all its functions and plans to recruit 7,000 people before 2030, increasing its talent pool from 13,700 to 20,000 employees in EMEA.
“In October 2023, the Daikin Europe group will be celebrating its 50th anniversary. As a market leader we have always acted on our responsibility to put the needs of our communities, customers and employees first. We are proud that this approach has resulted in decade-long consecutive growth in EMEA,“ concludes Toshitaka Tsubouchi.
About Daikin
Daikin Europe N.V.
Daikin Europe N.V. is a subsidiary of the global group Daikin Industries, and the leading provider of heating, cooling, ventilation, air purification and refrigeration (HVAC&R) technology in Europe, Middle East and Africa. Daikin designs, manufactures, and brings to market a broad portfolio of products, maintenance services as well as turnkey solutions for residential, commercial, and industrial purposes. To date Daikin Europe has over 13,700 employees across more than 57 consolidated subsidiaries. It has 14 manufacturing facilities based in Belgium, the Czech Republic, Germany, Italy, Spain, Austria, the United Kingdom, Turkey, the United Arab Emirates, and the Kingdom of Saudi Arabia. The headquarters of the Daikin Europe group are in Ostend, Belgium. The company was established in 1972, production in Europe started in 1973.
About Daikin Industries Ltd.
Daikin Industries was founded in 1924, in Osaka, Japan. The global group employs over 96,000 people worldwide and is the market leader for heat pump and air conditioning systems, as well as air filtration. It is the only manufacturer in the world that develops and manufactures heating, ventilation, air conditioning and refrigeration equipment, as well as refrigerants in-house. The company achieved € 28.2 billion sales turnover in fiscal year 2022 (1 April 2022 – 31 March 2023).
Read more on www.daikin.eu and www.daikin.com.
Media Contacts Daikin Europe N.V.
Sofie Sap – T.: +32 472 580482 Mail: sap.s@daikineurope.com
Daisuke Kakinaga – T.: +32 465 462321 Mail: kakinaga.d@bxl.daikineurope.com
