

Daikin believes "The cumulative growth of all Group members serves as the foundation for the group's development." Accordingly, we have set forth and implemented a policy of "People- Centered Management " in the belief that the development of people contributes to corporate growth and development. Among a rapid globalization of our business, we aim for further growth by developing local staff overseas as leaders.

Acceleration of Business Globalization Necessitates the Development and Promotion of Local Employees
The Daikin Group is globalizing its businesses. Two-thirds of our employees reside overseas, and overseas sales account for more than 60% of total sales. Under these circumstances, the development and promotion of globally oriented personnel is essential for providing products and services adapted to the characteristics of different regions and achieving further growth as a global corporation.
Accordingly, we are proceeding with the internationalization of our personnel in Japan and developing employees at overseas operations into leaders who understand the Daikin philosophy and can drive internationalization. We are increasing employee motivation by accelerating the promotion of excellent people to management positions and attempting to achieve growth by the practice of people-centered management.
Sales Contribution by Region (Fiscal Year 2009)

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Workforce Composition by Region (Fiscal Year 2009)

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Developing Employees at Overseas Operation into Leaders
Promotion of Local Employees to Executive Positions in China and Europe
The Start of Development Support for Global Personnel

At the regional headquarters office in China
What Daikin requires from the managers of its overseas operations is the practice of "People-Centered management." That is to say, managers must understand Daikin's philosophy and policies and apply them in local management while at the same time fully eliciting the abilities and motivation of subordinates and linking them to business results.
To develop managers with these leadership capabilities, in 2004 we started the Daikin Business School, an institution for group training. This training, conducted for management candidates selected from among overseas employees, is a one-year program for the development of management skills. Japanese executives serve as instructors who directly impart the Group's philosophy and principles to the management trainees. A total of 54 employees have graduated from the school to date. They have developed into leaders who are playing key roles at their respective business sites.
In fiscal year 2009, a number of Daikin Business School graduates were appointed to senior management positions at the regional headquarters companies in Europe and China. At Daikin (CHINA) Investment Co., Ltd. in China, one graduate was promoted to vice president and two were promoted to regional business managers. At Daikin Europe N.V. in Europe, three graduates were newly promoted to directors, following the previous promotion of two other graduates.
The following comments from Daikin Business School graduates reconfirmed that personnel development increases motivation. "I learned that the company is serious about developing and fast-tracking local employees," "I felt I could gain career experience and aim for the top."
As of September 2009, 90 local employees serve as directors of Group subsidiaries, accounting for about half the total number of directors. Daikin intends to further increase the proportion of local employees responsible for management of overseas business operations.
Accordingly, in fiscal year 2009 Daikin headquarters prepared a development plan to identify and develop executive management candidates throughout the Group. It is now the expressed purpose of the Group to select personnel targeted for development and systematically conduct training, make assignments to management positions, and evaluate performance.


It is actually felt that a local employee is appointed as the management
The main asset for me during Daikin Business School was the exchange of ideas and thoughts with people from other Daikin subsidiaries. It became clear to me that one of the main challenges for Daikin in the coming years will be to successfully merge the different identities of the global subsidiaries.
One of the most appealing speakers in Daikin Business School was Daikin A/C America's president who explained about the 4P's. I would be a happy man if I could transfer to my colleagues the importance of passion for the company, passion for their jobs, and passion for the way they act professionally, in short, passion in their professional lives.
I feel that many of my colleagues are proud that the localization in Daikin Europe N.V.(DENV) continues even to extend that the majority of DENV Board of Directors are local directors. Most of them realize that localization is the responsibility of each of them and that at least we? as local directors? have proven that people who are going for it are given the opportunity to be promoted to the highest echelons in DENV. |

Peter Van Den Broecke General Manager, Finance & Accounting Department Daikin Europe N.V.
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I want to ensure permeation of the management philosophy in day-to-day actions
I participated in the Daikin Business School in my fifteenth year with the company and now am a sales executive. When I first joined Daikin, I didn't have a clear career plan and didn't imagine I would be blessed with the many work and growth opportunities I enjoy now. I am delighted that my efforts, abilities, and performance are recognized by top management. I think that this is a true indication of the Daikin management philosophy that regardless of country or region, job description, or division, provided an individual makes an effort, he or she will be recognized as an important member of the organization.
I think that to gain understanding of the Daikin management philosophy among my young subordinates, I must demonstrate the philosophy through my own words and actions. I want to realize the management philosophy in day-to-day actions by striving and experiencing the joy of success together with my subordinates. |

Wang Yi Feng Zhejing Regional Sales Director Daikin (CHINA) Investment Co., Ltd.
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Developing Conditions That Promote Success in Global Roles

Opportunities that require success in global roles will increase.
In this way, the Daikin Group actively promotes local personnel at its overseas business sites. Sharing of the Group's philosophy is essential to ensuring that the Group companies around the world grow in pursuit of a unified goal. At the Daikin Business School, Daikin has positioned further penetration of the management philosophy as a key goal and adopted a policy of conducting training based on a practical curriculum to develop leadership skills aligned with the management philosophy.
Amid acceleration of business globalization, Daikin must insure appropriate personnel assignments across national and regional boundaries. With the aim of becoming a corporate group in which each employee can grow on the basis of lofty goals and high motivation, we will develop and implement a personnel compensation system based on shared Group performance indicators to ensure conditions in which employees can successfully perform global roles.