FY2022 Results and FY2023 Forecast

AC Business - Europe, Middle East, and Africa FY2022 Results The business environment continued to be difficult due to the tight supply from the Shanghai lockdown, disruptions in logistics networks, and soaring energy costs. Nevertheless, we achieved a significant year-on- year increase for the overall region by maintaining supply through the integration of manufacturing and sales, focusing on sales expansion of heat pump hot water heaters, and implementing selling price measures. ✓ In the Residential market, sales not only grew in Italy and Spain because of the favorable summer weather, but also in Germany and France, where we capitalized on heating needs, resulting in the expansion of sales. ✓ In the Commercial market, ‘spec-in' activities were thoroughly implemented, and we capitalized on pent-up demand to expand sales to stores and offices. ✓ In the Heating business, green deal policies of governments around the world resulted in a steady demand for heat pump water heaters, leading to substantial growth in each country, particularly in Italy, France, and Germany. ✓ In the Applied market, sales grew for environmentally-conscientious products such as R32 chillers. ✓ In the Freezer and Refrigerator business, the business environment saw weak supermarket investment. FY2023 Forecast In Residential, we will work to expand sales of high value-added products in response to greater interest in energy efficiency due to rising energy costs. In Commercial, we will bolster proposal sales to offices and hotels by emphasizing environmental protection and energy conservation to capitalize on the recovery in demand. In the Heating business, we will accelerate system improvement for manufacturing, sales, and after sales service as we continue to capture strong demand and aim for increased market share. In Applied, we will capitalize on the need to replace gas boilers with heat pump chillers. In the Freezer and Refrigerator business, we will accelerate one-stop solution proposals to stores by expanding the product lineup and strengthening the sales system. FY2023 Y/Y change (Volume basis) Residential FY2022 Daikin Market Daikin 107% 101% 105% SKY 106% 101% 104% Commercial VRV 103% 103% 106% 153% 134% 160% 123% 105% 112% 88% 102% 115% Heat Pump Heating Applied Refrigerator and Freezer *Residential, commercial, and heat-pump heaters are only for Europe. *Applied is based on total sales in local currency. 16

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