Page 3 Acson Global Distributor Meeting Customer Survey Results
Page 4 Acson Global Distributor Meeting 2009 Survey Result Overall Performance Each Product Group Quality rate a. Residential b. Light Commercial c. Commercial (Ducted) d. Packaged Unit e. FCU f. Mini Chiller Others Quality Rate a. Piping/Joint/Brazing b. Coil/Fin Surface c. Paint Work d. Capillary/Distributor/TXV e. Vacuum/Contamination/Charge Level f. Controller/Handset/Wiring g. Plastic casing finishing / Gap h. Motor/Fan Balancing & noise I. Packaging/labeling QUALITY Product range coverage Acceptability New Product Development Speed Innovative PRODUCT2.92.6
Page 5 Acson Global Distributor Meeting 2009 Survey Result Overall Customer Service Performance Speed of response Proactive in proposing service CUSTOMER SERVICE Overall Technical Support Performance Accessibility Knowledgeable & Skill Speed of response Effectiveness of the solution provided TECHINICAL SUPPORT3.0 Delivery Delivery Performance a. Finish Goods b. Spare Parts1.9 c. Shipping Documents Logistics Performance a. Packaging Quality b. Product Stacking in Container c. Container Space Optimization d. Accuracy of Loading DELIVERY Overall Cost and Value Rate Price competitiveness a. Residential b. Light Commercial c. Commercial (Ducted) d. Chilled Water System Advertising & Promotional Material Support COST & VALUE2.22.4
Page 6 Acson Global Distributor Meeting Performance Review CY2008/09
Page 7 Acson Global Distributor Meeting MARKET QUALITY SITUATION
Page 8 Acson Global Distributor Meeting ~ Aug 09 Claim Qty8,400 Sales Qty698, ~ Aug 09 Claim Qty8,400 Sales Qty698,104 Improve from 2.14% to 1.20%
Page 9 Acson Global Distributor Meeting ~ Aug 09 Claim Qty426 Sales Qty158, % Market Claim
Page 10 Acson Global Distributor Meeting ~ Aug 09 Claim Qty46 Sales Qty18, % Market Claim
Page 12 Acson Global Distributor Meeting Customer Master Plan OYL compile master plan for all key customers OYL Master Plan OYLM Master Plan Send to respective supplier as for yearly indication 5 Months rolling forecast for long lead time preparation 2 Months rolling forecast for short lead time preparation Sales Planning Manager Forecast Operation Team Regional Sales Manager (4) Sales Planning Executive (2) Customers Service (6) SCM Committees 1. Supply Chain Management(Forecast)
Page 13 Acson Global Distributor Meeting Supply Chain Management Objective 1.Master Plan Yearly master plan for factory capacity and material planning 2. Improve Lead Time To improve delivery and project lead time up to 4-5 weeks. 3. Enhance Inventory To improve customers & factory inventory turnover. 4. Factory Enhancement To enhance factory capacity & shift planning. Suppliers able to plan in advance.
Page 14 Acson Global Distributor Meeting Products Analysis: 1.Implement monthly forecast update template as below: 2.Step 1: yearly target forecast quantity/customer master plan 3.Step 2: 5 months rolling forecast 4. Step 3: 2 months confirmed forecast and 4-5 weeks PO receive (RA and LCU) with 80% commitment IDOD Forecast JanFebMarApr AWM007GALC009C AWM007GRALC009CR AWM010GALC010C AWM010GRALC010CR AWM015GALC015C AWM015GRALC015CR Supply Chain Management -Forecast
Page 15 Acson Global Distributor Meeting Sales Trend Analysis: 1.Purchase, Sales, and Inventory (PSI) 2.Latest info for factory material planning, and easy to monitoring customers forecast accuracy. 3.Future shipment plans to avoid any shipment cancellation/ delay issues to occur. 4.Info received will act as private & confidential for OYLM JanFebMar 2009 Monthly Closing Stock (USD) 2008 Actual Sales Value (USD) 2009 Actual Sales Value (USD) CY09 Forecast Sales Value (USD) 2008 Actual Purchase Value (USD) 2009 Actual Purchase Value (USD) 2009 Forecast Purchase Value (USD) Supply Chain Management- Forecast
Page 16 Acson Global Distributor Meeting 2. Project Tracking Workflow Project Management Sheet (From Customer) Checked By Sales and Customer Service Feedback to Customer Internal Project Tracking Sheet Forecast Upload Material Preparation Clarification
Page 17 Acson Global Distributor Meeting Project Tracking Sheet
Page 18 Acson Global Distributor Meeting Those that can provide 1. Monthly Rolling Forecast 2. Project Tracking List 5 weeks lead time!
Page 19 Acson Global Distributor Meeting Operation Updates
Page 20 Acson Global Distributor Meeting Strengthen on Workplace – Storage racking system Fully implemented racking system for parts storage. Implemented racking labeling & stock card system by items. Reduce mistake and speed up packing process.
Page 21 Acson Global Distributor Meeting Build up stock for major components across models Stock up starts from March 2009 Compressor Fan motor PCB Handset Propeller fan BPHE Water pump Pressure switch etc Our stock value USD 0.43 Million Monthly average 2008 USD 0.55 Million March 2009 Increase 28%
Page 22 Acson Global Distributor Meeting Customized Technical Training VenueEurope Topic1.Multi Digital Scroll
Page 23 Acson Global Distributor Meeting Customized Technical Training VenueAsia Topic1.Multi Digital Scroll 2.Ducted Split 3.Inverter Split Y-Series 4.Mini Chiller 5.Residential Product
Page 24 Acson Global Distributor Meeting Customized Technical Training VenueMiddle East Topic1.Product Introduction 2.e-Distributors 3.Software 4.Multi Digital Scroll
Page 25 Acson Global Distributor Meeting Commissioning Support VenueEurope DateJan09 ProductMulti Digital Scroll
Page 26 Acson Global Distributor Meeting Commissioning Support VenueAfrica DateSept09 ProductMulti Digital Scroll
Page 27 Acson Global Distributor Meeting Training Plan Annual Technical Training December 2009 Location : OYLM, Malaysia VenueOYLM, Malaysia DateDecember 2009 Training Topics1.Introduction to New Product 2.Single Split Inverter-Y Series 3.R410A Rooftop
Page 28 Acson Global Distributor Meeting Reaching out to you………………… Visits to your regions and country to Understand more your needs and Requirements Assistance provided by Product engineers Service Engineers Regional Sales
Page 31 Acson Global Distributor Meeting 2 years ago in our presentation…… Target Segment
Page 32 Acson Global Distributor Meeting Target Market Zone in develop countries Grade ResidentialCommercial Market Size(x1,000units) Product/Main Brand High Middle High Middle Low 1, , RA High Spec. Inv. DAIKIN MELCO TOSHIBA Hitachi Standard Inv. Fujitsu LG Samsung Non inv. Carrier McQuay Acson Non inv. Gree Haier Midea LCUVRV(MDS)PA Inv. LCU Japanese VRV DAIKIN MELCO TOSHIBA Hitachi Fujitsu Non inv. LCU Other VRV Acson Carrier McQay LG Gree Projection of market growth : up keep down DaikinMcQuay/Acson (Source: Global Operation Divisions (made this data to study own production capacity)
Page 33 Acson Global Distributor Meeting Target Market Zone in developing countries Grade ResidentialCommercial Market Size(x1,000units) Main BrandProduct/Main Brand High Middle High Middle Low RA DAIKIN MELCO Panasonic Fujitsu LG Samsung McQuay Acson LCUVRV(MDS)PA Centralized DAIKIN MELCO Carrier TRANE YORK Basic feature Fujitsu McQay LG Acson Al-Zamil DaikinMcQuay/Acson (Source: Global Operation Divisions (made this data to study own production capacity) 22 Projection of market growth : up keep down
Page 34 Acson Global Distributor Meeting Last Year our product direction……..
Page 35 Acson Global Distributor Meeting With ever increasing high cost of energy Increasing standards of Energy Efficiency Regulation. EUP, MEPS, China Regulation etc. Leading to environmental consideration of promoting inverter technology of energy saving products
Page 36 Acson Global Distributor Meeting OYLM is moving towards developing cost competitive and energy efficient products Changing the non-inverter Low cost to Inverter Low cost products How? Daikin Industries R&D engineers dispatched to OYLM OYLM dispatched Malaysian engineers to Japan for training OYLM join Co-development with Daikin
Page 37 Acson Global Distributor Meeting What is happening? United State SEER 13 Europe Energy labeling Restriction of using HCFC China Energy Rating Hong Kong Restriction of using HCFC Energy Labeling Singapore Energy Labeling Austraia Minimum Energy Performance Scheme Malaysia Energy Labeling Tax exemption for high efficient product Why is this happening? Montreal Protocol High Crude Oil Price Why is this happening? Montreal Protocol High Crude Oil Price
Page 38 Acson Global Distributor Meeting Where is OYLM Going? To provide full range of Green Products using Zero Ozone Depletion Refrigerant (0-ODP) To provide better energy efficiency product (Utilizing the Inverter technology from Daikin)
Page 39 Acson Global Distributor Meeting R22 RA Range LC Range PA Range Inverter Series - NA - What do we have? 0-DOP Refrigerant R410A R410A & R407C
Page 40 Acson Global Distributor Meeting Sales and Market Focus What we expect you to do……
Page 41 Acson Global Distributor Meeting e.g.Market Structure of Malaysia UP Sales Channel Application Residen tial 60% Commer cial 40% Whole Sale (88) 31% 22% 9% Retail (77) 27% 14%13% Electrical (28) 10% 8%2% Project Private (71) 25% 13%12% Goverme nt (19) 7% 3%4% (Market Size : MUS$) Total UP Market size : 283MUS$ OYL Strong point 1)Wide Sales Network 2) Service
Page 43 Acson Global Distributor Meeting B.Acson as key supplier and potential sole supplier 1. We build the business together with full commitment from both parties 2.If we commit, you must commit!!! Yearly Sales Target Distributor Focus Building Network Loyalty Business Plan
Page 44 Acson Global Distributor Meeting C.Building a business plan and model together 1.Require financial investment and local stocking 2.Investment of stronger sales force Distributor Focus Building Network Loyalty Business Plan
Page 45 Acson Global Distributor Meeting Sales and Market Focus What we will do……
Page 46 Acson Global Distributor Meeting A. Intensive Sales Approach 1.Increase sales force to concentrate on developing distributors. 2.Knowing in/out of your business 3.Tracking all sales activities and assistance to expand OYL Sales and Market Focus Sales Team Product Marketing Sales Support
Page 47 Acson Global Distributor Meeting B. Product Marketing Team 1.Study price positioning of each country against competitors 2.Regional/ Country requirements 3.Product Specification (benchmarking) 4.Marketing requirements(exhibitions, literatures etc) OYL Sales and Market Focus Sales Team Product Marketing Sales Support
Page 48 Acson Global Distributor Meeting OYL Sales and Market Focus Sales Team Product Marketing Sales Support C. Sales Support Team 1.Application and product selection assistance 2.Trainings 3.Commissioning 4.Troubleshooting
Page 49 Acson Global Distributor Meeting What we will deliver for 2010!!!!!!!!!
Page 50 Acson Global Distributor Meeting New Residential Product range <>
Page 51 Acson Global Distributor Meeting RA Product High Performance & Energy Efficiency Improved Product Quality & Reliability New Y-series Inverter Daikin Inverter Controls & Protections Protocol New D-series Outdoor Chassis A5LCY-DR High Performance (Panasonic DC1P Inverter Compressor) High Energy Efficiency (Electronic Expansion Valve) Lower Sound Level (Daikin Design Propeller Fan) New J-series Indoor Chassis A5WMY-JR Superior EER/COP (exceeds Euro Energy Label A/A) Lower Sound Level (Daikin Design Blower) Japanese quality and build level (Daikin-McQuay Joint Development Model) 2.5, 3.5, 5.0, 6.0 kW
Page 52 Acson Global Distributor Meeting RA Product (Size 2.5 & 3.5kW) New K-series Indoor Chassis A5WMY-KR High EER/COP (exceeds Euro Energy Label A/A) Daikin Indoor Inverter Model Lower Sound Level 2.5, 3.5 kW New E-series Outdoor Chassis A5LCY-ER High Performance (Daikin Inverter Compressor) Daikin Outdoor Inverter Model) New K-series Inverter Daikin Inverter Controls & Protections Protocol Cost competitive
Page 54 Acson Global Distributor Meeting New Y-series Inverter-Multi Daikin Inverter Controls & Protections Protocol System 1-to-2, System 1-to-3, System 1-o-4 New B-series Outdoor Chassis A5MSY-BR High EER/COP (exceeds Euro Energy Label A/A) Daikin High Efficiency Inverter Compressor Daikin Inverter Control Board Daikin Propeller Fan & Fan Motor RA Product (Multisplit) Complete Y- series Inverter Indoors J-SERIES WALL-MOUNTED A5WMY10/15/20JR C-SERIES CEILING-CONCEALED A5CCY10/15/20CR C-SERIES CEILING-CASSETTE A5CKY10/15/20CR E-SERIES CEILING-CONVERTIBLE A5CEY15/20ER
Page 55 Acson Global Distributor Meeting New Light Commercial Product Range <>
Page 56 Acson Global Distributor Meeting New Y-Series Inverter Daikin Inverter Controls & Protections Protocol 2.5, 3.5, 5.0, 6.0, 7.1, 10.0, 12.5 & 14.0 kW High Performance & Energy Efficiency Improved Product Quality & Reliability Complete Range of Light Commercial Indoor Model Using existing McQuay Indoor Design Utilizing Daikin Control Algorithm & Communication Protocol Superior EER/COP New E-series Outdoor Chassis A5LCY-ER High Performance (Daikin Inverter Compressor & Control) Daikin Outdoor Inverter Model
Page 57 Acson Global Distributor Meeting A5CKY10/15/20CR A5CKY20/25/28/40/50ER A5CCY10/15/20/25/28/38/50/60CR A5CMY15/20/25/28/40/50ER A5CMY62CR Ceiling Cassette C Series Ceiling Cassette E Series Ceiling Concealed C Series Ceiling Convertible / Exposed New Inverter Y Series – LC Range
Page 58 Acson Global Distributor Meeting Variable Refrigerant Flow Product Range (Multi Digital Scroll) <>
Page 59 Acson Global Distributor Meeting 2010 Product Lineup SIZE Outdoor (R410A) Indoor Controller MASS PRO MONTH Jan Ceiling Cassette Ceiling Concealed Ceiling Convertible Wall Mounted Jan Wired Central Controller Smart Commander Jan
Page 60 Acson Global Distributor Meeting New Package Product Range <>
Page 61 Acson Global Distributor Meeting PA Product (Roof Top) High Performance & Energy Efficiency Improved Product Quality & Reliability High Efficiency New R410A High Efficiency Rooftop Highlight: R410A Product Superior EER & Cooling Capacity (exceed Australia MEPS) Lower Sound Level (Daikin outdoor Propeller) Operate up to 52C and down to -15C 3 rd party thermostat connection ready at std PCB Dry contact for Basic BMS as standard Economizer & Free Cooling * Dirty Filter indication 30/35/45/55/65/75 kW Note: * launching economizer is later than launching of basic unit.
Page 62 Acson Global Distributor Meeting 2010 Rooftop Product Lineup Product R22 & R407C Rooftop – A R410A rooftop (25,35,45,55kW) R410A rooftop (65,75kW) MASS PRO MONTH Jan Dec Apr
Page 63 Acson Global Distributor Meeting R220-DOP Refrigerant Inverter Series RA Range R410A LC Range R410A PA Range R410A & R407C - NA - OYLM Products are Ready!
Page 64 Acson Global Distributor Meeting Y-series Inverter J-series ON/OFF OYL-Daikin Inverter Y-series Multisplit Inverter OYL-Daikin LCU Inverter R22/R410A MDS System R410A RT Inverter and Energy Efficient Series RA RangeNew Y,K and Multi Series LC RangeNew Y PA Range New R410 with BMS and Economisers VRFMDS R410A