Introduction to Daikin Industries Ltd.

Introduction to Daikin Industries Ltd.

Introduction to Daikin Europe N.V.

Introduction to Daikin Central Europe

04/19/23 2

AC Production Location

Compressor Location

Chemical Location

Production facility Applied Systems (McQuay)

Daikin’s worldwide presence (production facilities)

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Daikin’s product range

Sales per business unit

Air Conditioning(In)Direct expansion

87.7%

Chemicals9%

Other3.3%

Sales per business unit R07

Residential applications

Commercial applications

Industrial applications

Compressors

Oil hydraulics

Fluoro chemicals

Refrigerants

Medical equipment

Heating applications

Refrigeration

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Sales per business unit

3.476 3.6934.037

4.7035.115

5.885

7.991

271 288 310

393433

522

756

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

FY01 FY02 FY03 FY04 FY05 FY06 FY070

100

200

300

400

500

600

700

800

900

1.000Sales Operating Profit

(€ mio)

Historical Evolution – Daikin Industries Ltd.

Air Conditioning(In)direct expansion

87.7%

Chemicals9%

Other3.3%

Europe & Middle East33%

America14%

Japan28%

Other25%

Sales per business unit R07

Airco Sales per Region

R07

155 JPY / EUR

Manpower (incl. OYL)36.406 worldwide

12.000

17.000

22.000

27.000

32.000

37.000

Company Name:

Head Office:

Chairman & CEO:

Incorporated:

Cons. Turnover:

Cons. Operating profit:

# Employees:

Corporate Profile (as of March 31, 2008)

Daikin Industries, Ltd.

Osaka (Japan)

Mr. Inoue

February 11, 1934

8.318 Mio € FY2007

825 Mio € FY2007

> 36.000

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Corporate social responsibility: Environment

Global warming

Nobel Peace Prize 2007

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Climate Change Policy EC (2007)

Regulation on fluorinated greenhouse gases (F-gases) (2007)

Energy Policy of the EC (2007)

Directive energy labelling (2008)

Energy Performance on Buildings (2009)

Ecodesign requirements (2010)

Proposal directive on renewable energy (2008)

Directive on the restriction of Hazardous Substances (2007)

REACH regulation (2008)

WEEE (2007)

Environment: legislation

Legislator

Climate Change

Energysource

Waste

Energyefficiency

DangerousSubstances

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50 -60%50 -60%50 -60%Heating

10 -25%Hot Water

Environment: Daikin’s span of responsibility

31%31%

28%

Industry

31%

Transport20%20%

Others

20%

41%

Buildings Daikin Business

3% Cooling

Importance for Daikin

Energy consumed in Europe

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6 Be a Company that Leads in Applying Environmentally Conscious Practices

As we continue developing our business operations in various fields, it is our mission to proactively develop initiatives to respond to environmental issues. Incorporating environmental initiatives throughout our management must be a priority for us.

In all aspects of our business operations, including product development, manufacturing and sales, we need to formulate initiatives that sustain and improve the environment. Meanwhile, we need to promote the development of new products and the innovation of technologies that will lead to a more environmentally healthy world.

Under the precept "environmental response is an important management resource," we must integrate environmental initiatives into our corporate management since they can lead to business expansion, improved business performance, and further enhancement of our credibility with outside parties. We intend to continue being a leading company in the practice of "environmental management," thus contributing to a healthier global environment as a good citizen of the earth.

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Our Group PhilosophyStriving to Be a Group that Continuously Evolves

Our Group PhilosophyStriving to Be a Group that Continuously Evolves

DAIKIN INDUSTRIES, LTD.

Environment: our Philosophy

Group PhilosophyIssue: August 2002

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Group Philosophy

Environmental policy: Initiated and supported by the Top

• Enhance our creativity centering on the environment

• Ensure environmentally conscious practices in all business activities.

• Take action with the future of the Earth in mind

CEO Environmental Statement

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Environment: Our driving Vision

5 strategic

directions

To be No.1 in high efficient product range

No.1 as HVAC-R energy solution

consultant

Contribute to CO2 reduction

by promoting heat pumps

Reduce Environmental Burden from Business Activities

Reduce impact of refrigerant emissions

towards non-HCFC’s

Turn the environmental developments into OPPORTUNITIES

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4 Pillars Strategy - Product Range

Direct ExpansionSplitSky- AirVRVPackaged

Applied systemsChillersFCUAHU

HeatingHeat pumpsSolar panels

RefrigerationCCUCVPZEAS

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Pillar 1: Direct Expansion

SPLIT

VRV

SKY AIR

Residential Applications

RestaurantsSmall ShopsSmall Offices

OfficesHotelsSupermarkets

Application overview

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Centrifugal compressors

500 - 9000 kW

Single Screw compressors

180 - 2000 kW

Rotary or scroll compressor

5 - 7 kW

Pillar 2: Applied Systems

Daikin group

1. Complete Product line-up

Multiple scroll compressors

10 - 250 kW

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2004 2005 2006 2007 2008 2009 2010

100

200

0

310000’S

2004 2005 2006 2007 2008 2009 2010

100

200

0

310

2004 2005 2006 2007 2008 2009 2010

100

200

0

310000’S

EU A/W H/P market: 2004-2006: BSRIA figures - 2007-2010: BSRIA forecast

Pillar 3: Heating

Fuel boiler Gas boiler Altherma

6.3

4.8

1.7

CO2 emissions (in ton / year)

Trend: pressure from rising energy prices and on CO2 emissions makes that H/P market continues exponential growth

Market Trend

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Environmental advantage of Altherma

Calculations under the following conditions: country: Belgium;Electricity emission: 276 g CO2/kWh;gas emission: 202 g CO2/kWh;gas boiler efficiency: 90%; fuel emission: 268 g CO2/kWh; fuel boiler efficiency: 90%

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CAPACITY RANGE:

- room heating : 5.7 – 16.0 kW

- domestic hot water: 150 – 300 l

- room cooling: 5.1 - 13.0 kW

“Altherma, the intelligent way to comfort”

COMPONENTS:

Outdoor unit (6 types)

Indoor unit = Hydrobox

Domestic hot water tank (optional)

EMITTERS

Fan Coils

LT radiators

Floor heating

1

2

3

4

5

62

31

5

4

6

Solar panel

Pillar 3: Heating

Product concept

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Convenipack

“J&E Hall for Daikin” Condensing units

J&E Hall Compressors

Supermarket racks

Component product range

Pillar 4: Refrigeration

Industrial Condensing Units

Zeas

Introduction to Daikin Europe N.V.

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Daikin Europe’s Presence

Daikin Europe’s Sales Presence

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500

1.000

1.500

2.000

2.500

FY01 FY02 FY03 FY04 FY05 FY06 FY07

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Sales

Operating profit

Manpower

• 100% subsidiary of Daikin Industries Ltd.

• Core activities: Sales and manufacturing of air conditioning, refrigeration and heat pump equipment. Europe’s number 1 player on the Air conditioning market

• Powerful sales network in more than 50 countries, throughout Europe, Africa and Middle East

• Production plants in Belgium and Czech Republic, GermanyOther European factories: McQuay Italy and McQuay UK

Continues prominent growth figures during the last years. Comparedto the beginning of the millennium, the sales amount tripled.

Daikin Europe N.V. at a glance

Company Name:

Head Office:

President:

Incorporated:

Cons. Turnover:

Cons. Operating profit:

# Employees:

Daikin Europe N.V.

Ostend (BE)

Mr. Minaka

1973

1.925,4 Mio € FY2007

192 Mio € FY2007

4.134

Corporate Profile (as of March 31, 2008)

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Manufacturing in Europe

Close to market production

High added value production

Innovate the product portfolio & anticipate market requirements through new product developments.

Facts & figures (F07)

Production start: 1973

Number of employees: 1,547 (excl. temp)

Factory surface: 26,000m²

Total site area: 135,000m²

Production qty indoor units: 385,016 pcsProduction qty outdoor units: 256,984 pcs

Daikin Europe N.V. (Sky Air / VRV / Chillers / Altherma)

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Mass production site for residential air conditioners


Daikin Industries Czech Republic, Plzen (Split)



No. of workers: 816 (excl. temp)No. of employees: 110 (excl. temp)

Factory + office surface: 43,319m²


Production qty indoor units: 673,202 pcsProduction qty outdoor units: 614,870 pcs


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Daikin Device Czech Republic, Brno (Compressors)

Production of swing compressors for small capacity units


Production start-up: 2006

Number of employees: 521 (excl. temp)



Production qty: 690,610 pcs


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Production site for air handling units


McQuay Italy, Milano (Air Handling Units)



Number of employees: tbc

Factory + office surface: 6,750 m²


Production qty: tbc


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Production site for Air Handling Units


McQuay UK, Cramlington (Air Handling Units)



Number of employees: 116

Factory + office surface: 5,709m²

Production qty: 500 AHU


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McQuay Italy, Cecchina (Chillers)

Large scale production of high capacity units

Applied systems production plant



No. of employees: 112No. of workers: 206


Production qty of units: 1,800 pcsProduction qty of compressors: 6,000 pcs


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Rotex Heating Systems Gmb (GER) (heating)



No. of employees: 101No. of workers: 180



Components for heating

Heating equipment: Gas/oil condensing boiler, Solar panels, Underfloor heating


Introduction to Daikin Central Europe

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A Daikin Central Europe Headquarters

CZ, SK, HU, RO, HR

Affiliates structure

AL, BG, BiH, MD, MK, MNE, SLO, SRBDaikin Central Europe Dealer Network

Daikin Central Europe territory

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Daikin Central Europe now treats 14 countries

with 90,3 million inhabitants

covering an area of 1.013.943 km2 ≥ 12 times Austria

a very wide range of GDP* between 900€ and 32.000 €/capita

EU 15 GDP: 28.800 €/capita

average GDP* DACE : 13.500 €/capita**

7 countries are EU members (A, CZ, SK, H, RO, BG, SLO)

4 countries with Euro currency (A, SK, SLO, MNE)

* Gross Domestic Product** all figures are R08, source WKO.at

DACE - Macroeconomics Key Figures

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Daikin Central Europe ambitious challenging targets for 2010

0

20

40

60

80

100

120

mio € sales

2005 2006 2007 2008 2009 2010

Introduction to Daikin Industries Ltd.

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