All-time high: Daikin Europe closed fiscal year 2021 with record sales

Driven by the strong demand for sustainable heating, cooling and refrigeration solutions, Daikin Europe N.V. has reported an exceptional growth in its turnover of 25%, which now amounts to 4.3 billion euro, the company’s best result ever. As subsidiary Daikin Central Europe significantly contributed to the success with record sales across 16 countries in Central and Eastern Europe.

Brussels, Vienna, May 2022 – “Despite challenging circumstances, we are continuing on our growth course to realize our ambitious targets of our 5-year business plan Fusion25 and play a leading role in Europe’s Green transition”, says Carl Lievens, Managing Director of Daikin Central Europe headquartered in Vienna. “Today, rising energy prices, climate goals and more stringent EU regulations are drivers for residential and industrial customers to switch to our energy-efficient heating and cooling solutions and reduce their environmental footprint”, he continues.

Carl Lievens, Managing Director Daikin Central Europe, who is responsible for 16 markets in Central and Eastern Europe

“Moreover, the current geopolitical situation will intensify the need to phase out fossil fuels and to reduce our energy dependency. It remains our mission to support this transition by developing and delivering the innovative solutions that are needed”, says Toshitaka Tsubouchi, President of Daikin Europe.

Toshitaka Tsubouchi, President of Daikin Europe

Firm response to today’s market needs

In 2021, Daikin Europe as well as its subsidiary Daikin Central Europe reported strong sales growth across all business units including residential air-conditioning, commercial refrigeration and its services and solutions offering. The most remarkable growth was achieved in the heating business: “Heat pumps are one of the key technologies to realize the energy transition in Europe”, added Takayuki Kamekawa, Vice-President Sales of Daikin Europe.

A rapid increase in demand with forecasts calling for 4 million heat pumps to be installed in Europe yearly by 2030 – representing an annual growth rate (CAGR) of 20% – is expected in line with other industry experts. Daikin Europe is responding by investing in production and innovation capabilities, warehousing and logistics, as well as increased training for installers and service technicians across the EMEA region.

“In many of our markets, including Austria, attractive governmental incentives and subsidies make it easier for homeowners to exit fossil fuel heating and switch to sustainable technologies like heat pumps. Incidentally, all our split air conditioners are energy-efficient air-to-air heat pumps and can be used for cooling and heating”, says Lievens, who is responsible for 16 countries in Central and Eastern Europe.

Rebound after first Corona year

In 2021, the HVAC-R* market showed also a clear positive trend for investments in the commercial sector. In particular, hotels, restaurants, offices and retailers as well as the construction sector were eager to invest. The rebound after the first Corona year was stronger than expected. In the refrigeration segment, significant demand from food retail chains had a positive impact on Daikin’s results.

Circular economy of refrigerants for key accounts

“Our circular economy program ‘Loop by Daikin–Recover–Reclaim-Reuse’ of refrigerants earned very positive response from the market: In 2021, we won key accounts – like Toyota Motor Manufacturing Czech Republic – who are using our solutions to reduce the environmental impact at their premises, factories or in retail”, says Lievens. Today, Daikin already avoids the production of 400.000 kg virgin gas per year across Europe through its circular economy initiatives.

Takayuki Kamekawa, Vice-President Sales of Daikin Europe

Proximity strategy pays off

Last fiscal year, many industries were impacted by global supply shortages of parts and components. These were caused by Covid restrictions and general disruptions in supply chains. Although Daikin Europe has also felt their impact, the company’s proximity strategy has been able to ward off the most adverse effects. “We have always strived to develop and manufacture our products as close as possible to the markets that we serve. This enables us to respond in a flexible manner to market demand and makes us less vulnerable to external factors. Throughout the years, we have also built long-standing relations with strategic suppliers. As a result, we have been able to outperform the market and grow our market share,” emphasizes Hiromitsu Iwasaki, Vice-President Manufacturing of Daikin Europe.

“85% of Daikin units sold in our CE-region are produced in our factories across Europe. Our promise is ‘Made in Europe for Europe’. Moreover, our customers can rely on the biggest sales and service partner network of 2,500 installers and distributors in Central and Eastern Europe”, continues Lievens. With Your Daikin World at the Vienna headquarters the HVAC-R industry and the construction sector is invited to co-create tailor-made solutions for hotels, retail, offices or large commercial applications in a modern experience center together with Daikin experts. It also includes 1 out of 9 unique trainings centres across the region.

Daikin Central Europe: 100 new positions to fill in 2022

Daikin Central Europe is a fast-growing company. The workforce has doubled in the past five years to 560 employees in 2021 with 110 new employees that joined during last fiscal year alone. In 2022, around 100 positions will be filled in the region and by 2025 the company will grow the team to 900 professionals. “This also means that we have to transform the organisation. Hereby, we follow a people-centred management approach and invest currently among others in leadership development with a tailor-made leadership curriculum for executives on various levels and in various functions”, says Lievens who is also a certified systemic change manager.