Daikin, The Corporate Ostend, 04 December 2006 Speaker: Paul Dergeloo 3/31/2017 Ostend, 04 December 2006 Daikin, The Corporate Good morning Ladies and Gentlemen, On behalf of the management of Daikin Europe, I would like to thank you all, for accepting our invitation to attend to our Daikin solutions for large applications seminar in Madrid. My name is Paul Dergeloo and within Daikin I am the manager of the Consulting Sales Section in the Sales Division. Being convinced that it wasn’t easy to find the time in your busy agenda, we can assure you that we have established an interesting program which includes both seminars on our products as visits to reference sites and why not, some time has been foreseen to discover Madrid. Besides myself, my colleagues Stéphane Cupani and Eve Lecerf complete the Daikin Team. We are at your disposal for any of your questions. For practical travel arrangements, you can also contact Karel Emmers from Neckermann. The advantage of a seminar like this one where people from different nationalities are meeting, is the possibility to exchange a lot of information, ideas, experiences, etc. … . We invite all participants therefore take advantage of this opportunity and we hope that you all will keep good memories about this event. We will start now with this evening’s program and the corporate presentation of Daikin. <Click> Speaker: Paul Dergeloo Daikin Solutions for Large Applications

Over 80 years of innovative tradition … 3/31/2017 Over 80 years of innovative tradition … 1924 Akira Yamada established Daikin Industries Ltd. 1938 Starts production of refrigerators 1957 Development of first Japanese rotary compressor 1958 First heat pump 1969 Development of first Multi-Split 1982 Introduction of first VRV in the world 1995 First “Swing”-compressor for air conditioning Daikin Industries Ltd was founded in 1924 in Osaka, Japan. This year Daikin Industries is celebrating its 80th anniversary. In those 80 years Daikin has grown into one of the leading companies in the world in the field of air-conditioning and industrial refrigeration based on a tradition of innovation. Allow me to give a couple of examples of the Daikin innovations. <Click> Daikin has developed and produced its first refrigerators in 1938. the first Japanese rotary compressor in 1957, the first packaged heat-pump in 1958 and the first multi split system in 1969. Without doubt, the introduction of the revolutionary VRV system in 1982 had a major impact. The VRV system has reshaped the air-conditioning landscape and definitely established Daikin as a innovative leader in the air-conditioning market. In 1995, Daikin developed another industry’s first with the introduction of the swing compressor. 1999 Ururu-Sarara, a new world first 2006 VRVIII worldwide launch Daikin Solutions for Large Applications

Sales per business division 3/31/2017 Sales per business division Daikin is a specialist in the field of air conditioning Others 5.75% % sales turnover Chemicals 14.1% Air Conditioning 80.1% Daikin Industries ‘ turnover in 2004 was xxxx bio yen or approximately yyyy billion euro. Eighty percent of the turnover is coming from the air-conditioning division. The chemical division’s portion is increasing and is over 14% of the total turnover. Oil hydraulics included in others is good for 3% of the Daikin turnover. <Click> Source: DIL annual report May 2005 Daikin Solutions for Large Applications

Development Innovative Products 3/31/2017 Innovation Development Innovative Products M E C Mechanics: Compressors Electronics Electronic Expansion Valve Inverter Fuzzy logic MIO-control Chemicals: Refrigerants Lubricants Swing / Scroll / Screw The key to Daikin’s successful innovation strategy is the development of revolutionary technologies based on the MEC approach. By combining the mechanics, electronics and chemicals, Daikin is bringing together all sciences required for the development of innovative technologies. <Click> In the field of Mechanics, Daikin has a worldwide outstanding reputation for its compressor technology. Daikin is developing and producing today a very wide range of small rotary compressors, swing compressors and even large mono screw compressors. Daikin is after Dupont de Nemours, de largest manufacturer in the world of refrigerants. As the only air-conditioning manufacturer active in this field, Daikin is well placed in the development of environmental conservation technologies complying with the most stringent new refrigerant policies. Daikin’s oil and hydraulics division is dealing with another key chemical component of the air-conditioning equipment: the oil. Daikin has always given a lot of attention to the electronics which are integrated in its equipment. A system provided with intelligent controls adds a lot of possibilities to the AC equipment. Daikin is one of the first companies which introduced the inverter technology in AC equipment and through its VRV system is worldwide recognized as the market leader in this field. What makes Daikin so special is that we have incorporated these three competences into one strategy of innovation. Daikin Solutions for Large Applications

Daikin production facilities 3/31/2017 Daikin production facilities Kanaoka Factory Shiga Factory Rinkai Factory Yodogawa Factory Kashima Factory USA Factory DENV DICZ Shanghai Factories Daikin Industries Thailand Xi’an Factory (compressor) Huizhou Factory Plzeň-Czech Republic Ostende Daikin Compressor Industries Ltd Shanghai Chemical Factory Brno - Compressors Daikin Solutions for Large Applications

Commercial organization in Europe 3/31/2017 Commercial organization in Europe DIL DAIKIN EUROPE N.V. Holding Activities DAUGHTER COMPANIES: 1992 1998 2000 2002 2004 Daikin Moscow Office 2005 2006 Daikin Dubai Office DACE CROATIA 1999 HUNGARY DACE CZECH REPUBLIC SLOVAKIA ROMANIA 1997 2001 South Africa ANGOLA BOTSWANA MOZAMBIQUE NAMIBIA SWAZILAND UK From the new head office for Europe and the Middle East in Brussels, Daikin Europe has established a solid structure of daughter companies throughout Europe. Today, 86% of the turnover is covered by the Daikin daughter companies. <Click> Daikin Solutions for Large Applications

Commercial organization in Middle East UAE Dubai Saudi Iran Iraq Turkey Syria Qatar Bahrain Jordan Oman Yemen Lebanon Kuwait CIS Africa

Daikin Europe turnover 3/31/2017 Daikin Europe turnover Consolidated net sales FY2005 = 1.220 Mio; Budget 2006 = 1.510 Mio EURO Mio Euro Daikin Europe has increased its turnover significantly over the last couple of years and has reached at the end of last year’s financial year a turnover of 1.137 million euro or 34% growth compared to the previous year. In 2004, the European air-conditioning market has been growing significantly mainly as a consequence of the extreme hot summer of 2003. Daikin has broken through the 1 billion euro turnover for the first time in 2004 and we are working hard to achieve the 2005 budget target of 1,4 billion euro. <Click> Daikin Solutions for Large Applications

Full portfolio of products to cover any application 3/31/2017 Daikin product range Full portfolio of products to cover any application The key to Daikin Europe’s success has been its innovative product range. Today, Daikin produces and commercializes an extensive range of products which meets the needs of the customers in the comfort and industrial applications. <Click> Daikin Solutions for Large Applications

Daikin products for residential applications 3/31/2017 Daikin products for residential applications Stylish & elegant Energy performant & silent Market leader in multi-application The key to Daikin Europe’s success has been its innovative product range. Daikin offers the most extensive range of split and multi split systems available in the market place. These units for residential application or stylish and elegant. For the visit of Plzen factory, some clarifications : Alpha = Mainstream of splits OU in pair combination (ex : RXS-B / RKS-B). Small capacities : 2 to 3,5 Kw. Connectable to new wall and flat panel IU. <Click> Up to 15 kW Daikin Solutions for Large Applications

New technologies for residential applications 3/31/2017 New technologies for residential applications Floor heating and sanitary hot water total solution Total A/C comfort: temperature, humidity and ventilation control The key to Daikin Europe’s success has been its innovative product range. Daikin offers the most extensive range of split and multi split systems available in the market place. These units for residential application or stylish and elegant. For the visit of Plzen factory, some clarifications : Alpha = Mainstream of splits OU in pair combination (ex : RXS-B / RKS-B). Small capacities : 2 to 3,5 Kw. Connectable to new wall and flat panel IU. <Click> Daikin Solutions for Large Applications

Daikin products for commercial applications 3/31/2017 Daikin products for commercial applications Comfort & Flexibility Energy efficient The Daikin “Sky air” products are well renowned in commercial applications. The range of cassette, duct, wall and under ceiling type indoor units offer a high level of comfort and are among the most energy efficient systems available in the market place. <Click> Up to 25 kW Daikin Solutions for Large Applications

Daikin products for Mid and large size buildings 3/31/2017 Daikin products for Mid and large size buildings Centralized DX system Powerful controls FXMQ FXSQ FXLQ FXNQ FXHQ FXKQ FXFQ / FXZQ FXDQ FXCQ FXDQ-N FXAQ Up to 150 kW Daikin Solutions for Large Applications

Daikin products for industrial or tertiary application 3/31/2017 Daikin products for industrial or tertiary application Hydronic systems Power, reliability & Precision Industrial Processes Daikin is also commercializing a range of water chillers both for applications in comfort and process cooling. The Daikin chillers are enjoying a reputation of being highly reliable. Later during this seminar, Clifford Jones will give you more information about the Daikin chiller range and application. <Click> Climate control Up to 1 MW Daikin Solutions for Large Applications

Daikin products for Indoor Air Quality 3/31/2017 Daikin products for Indoor Air Quality Individual air purifier Modular ventilation Central ventilation Besides the conditioning of air, more and more there is also a need for purification of the air. Daikin is commercializing air purifiers for domestic use, improving the indoor air quality and as a consequence improving the life quality of e.g. allergic and asthmatic people significantly. <Click> Daikin Solutions for Large Applications

ISO 9001 & 14001 Certification Recognition of quality assurance 3/31/2017 ISO 9001 & 14001 Certification Recognition of quality assurance Proof of environmental protection Needless to say, that all the Daikin products are designed and developed, manufactured and commercialized according to the most strict quality assurance systems. All the Daikin factories in the world are ISO 9001 certified. Besides the quality assurance, Daikin is also paying a lot of attention to the environment which has resulted into ISO 14001 certification of all its factories globally. In order to protect the environment today and tomorrow, Daikin has e.g. developed viable recycling systems to cut waste and save resources. Furthermore, as a leading refrigerant and air-conditioning equipment manufacturer at the same time, Daikin has replaced the CFC and HCFCs from its product range by HFCs long before the face out schedules stipulated in the international protocols, contributing in this way to the preservation of the ozone layer. The development of optimised, more energy efficient products with the new more environmental friendly HFCs R407, R410A and R134a, has led to reductions in global warming. <Click> Daikin Solutions for Large Applications

More than 30 years of innovation and quality 3/31/2017 DENV > Welcome Daikin Europe N.V. More than 30 years of innovation and quality Daikin Europe celebrated last year its 30th anniversary in Europe. The continues development of innovating products, the production according to the highest quality assurance systems and the commercialization of the products through one of the most professional sales networks in the industry makes us confident to be successful for many year more. I would like to conclude the presentation of the Daikin company here. I hope you will all enjoy the following presentations about our revolutionary VRV system but even more important I hope that you will have a pleasant and relaxing stay and will enjoy the program of this conference. Thank you for your attention. Daikin Solutions for Large Applications