1.Maximizing the Power of Human Resources at a New Global Training Center

Daikin had in the past emphasized on-the-job training (OJT)*¹ and was less organized toward a common, company-wide off-the-job-training (Off JT)*² program, but as our business grew rapidly on a global scale, developing human resources through training programs combining OJT and Off JT became crucial. Since 2005, we have been conducting programs such as the Daikin Leadership Development Program for next generation executives, the Daikin Business School (D-BS) for executive management candidates at overseas bases, and Fast & Flat training with the goal of boosting leadership capabilities of division managers.

In the spring of 2008, the Daikin Ales Aoya Global Training Center was established with the aim of maximizing the power of human resources. This facility (1) gives worldwide Daikin Group employees the management and leadership skills, (2) passes on the manufacturing skills that are the lifeline to a manufacturer, (3) brings engineers together to work and motivate each other, and (4) promotes thought and discussion among participants about Daikin's philosophy and tacit knowledge so that the Daikin Way can become second nature.

*1 OJT: Employees learn and acquire the skills, knowledge, and degree of commitment required of their positions while performing their jobs.
*2 Off JT: Employees study outside of their workplaces in order to acquire the knowledge and skills needed for their jobs.

2.Passing on Daikin Philosophy and Corporate DNA of Manufacturing to Overseas Group Companies

In June 2008, Skills Trainer Training was held at the Daikin Ales Aoya. This training was aimed at raising the level of employee skills worldwide by teaching advanced engineers in Japan to be skills trainers. After taking this training, the trainers went to Daikin manufacturing bases around the world to pass on these skills together with Daikin's manufacturing DNA and tacit knowledge to local employees. Starting in 2009, there will be courses that will train local employees to be skills trainers for their own bases.

In May 2009, Bridge Person Training was held at Daikin Ales Aoya. This training aims to foster individuals able to act as a bridge person between overseas group companies and the various business divisions of Daikin Industries. Through this year-long program trainees learn to improve communication skills in English, and to gain a deeper understanding of the Daikin Group's philosophy and tacit knowledge so they can pass them on to people of different cultures in order to create a strong organization by utilizing the various talents of individuals.

In July, personnel managers of major overseas companies of the Daikin Group companies gathered for a Global Human Resources Meeting. Topics included measures for human resource development that would help employees more fully encompass Daikin philosophy and corporate DNA as well as implementation of a performance-based compensation system in each country and region.

Daikin has plans for numerous courses that represent its continued investment in people: the Daikin CEO Program, an advanced version of the Daikin Leadership Development Program; the Next-Generation Leader Program, a program for training division managers and overseas base heads to be business leaders capable of taking up key company posts; the Young Employees Challenge Program, a program to begin creating Daikin's future-leaders; and Off JT that includes diversity training for managers.

3.Overseas Group Companies Support Individual Growth Based on Local Needs

Overseas Daikin Group companies are also conducting human resource development that meets local needs and spreads the Daikin philosophy.

In January 2009, AAF International in the UK, one of the companies of the OYL Group (which joined Daikin Group in 2006), began a trial program to incorporate Daikin's Group Philosophy and people-centered management into daily work. Managers discussed and experimented to see how they could conduct their work focusing more on teamwork and how they could utilize individual talent to contribute to the success of the organization. This is a pilot project that we intend to implement throughout the entire OYL Group.

McQuay International, part of the OYL Group is striving to promote cross-cultural understanding by offering McQuay employees a course in understanding Japanese work processes, and conversely by offering Japanese employees a course in understanding American management methods. This training made each side more aware of the other's culture.

Daikin Europe N.V. established the Daikin Europe Academy in 2006 to expand the functions of the training center for teaching manufacturing skills. In addition to manufacturing skills education, the academy offers all-round training for boosting business skills in four areas: management and leadership training, technical training, commercial training, and business skills training. This training is also open to Daikin Group dealers and installers. In fiscal year 2008, 2,282 people from Daikin Europe N.V. and other companies within the EMEA regions took part in 244 courses. Course records were communicated to trainees and their managers so that they could plan their next direction of further development.

These kinds of trainings are conducted according to the unique needs of each region. The entire Daikin Group works to support each employee in his or her quest to set high goals towards personal growth.