Workplace Diversity Policy

The Daikin Group believes it is our people who make us competitive. A company can only grow stronger by having a diverse range of employees—men and women of all ages, nationalities, races, and years of experience in the company—working within an organization that is conducive to mutual understanding of one another's distinct values and that allows everyone to shoot for a lofty goal.

Our Group Compliance Guidelines state our aim of becoming a group is passionate, strong, and forward-thinking and in which there is respect for a diverse range of values and work philosophies, and in which employees respect their differences and cooperate to pool their strengths so that each person can achieve his or her dream.

The Daikin Group's employee make-up is becoming increasingly diverse, with a greater number of non-Japanese and women in our ranks. Since introducing our rehiring system in 1991, we have been making greater use of Daikin's experienced retirees.

Employee Composition (Daikin Industries only)

Note: Number currently employed

Putting More Women into Management Positions

Steady Progress in Promoting Women to Managerial Positions

Daikin Industries strives to create identical working conditions for men and women because our goal is to use the talents of both sexes to the fullest. In 2001, we eliminated the barrier between general clerical work and management track jobs so that female employees have more career possibilities. We have also systematically increased the number of female managers from two in fiscal 2001 to 16 in fiscal 2010.

We will continue to take measures, such as changing workplace attitudes about women taking a key role in company management and formulating strategies to raise career awareness among female employees, so as to encourage more ambitious and talented women to play a bigger part in company management.

Hiring Women

Increasing Percentage of Female Employees

As of March 2011, women accounted for 12.5% of all employees of Daikin Industries, an increase of 0.5% over 2010.

In the past, job applicants for technical and skills positions were mostly men, which kept the ratio of female employees low. We therefore set a goal of achieving the national average, 12%, for female employees as a percentage of total by fiscal 2009. As a result of proactive efforts to hire women, we achieved this goal in 2008, a full year ahead of schedule.

Number of Women Periodically Hired; Percentage of All Employees
(Daikin Industries only)

Re-employment of Retired Employees

Re-employment System Makes the Most of Experienced Employees

In 2001, Daikin became one of the first companies in Japan to introduce a re-employment system in which retirees wishing to participate can work until they are 65, thus providing an opportunity for them to make the most of their skills and knowledge. Since introducing this system, over 100 have been re-employed each year. In fiscal 2010, there were 535 retirees working under this system at Daikin. Fourteen of these re-employed veterans have been assigned to overseas posts so that they can impart their superior skills and know-how to our bases in other countries.

In fiscal 2006, all group companies in Japan introduced this re-employment system to comply with Japan's Revised Law Concerning Stabilization of Employment of Older Persons. Those applying for this system may work until they are 65, with their working hours and pay scale decided on by labor and management.

The contribution of these experienced workers is becoming more important with Japan's declining birthrate and aging population. We plan to place these workers in positions that are best for them by considering their requests and expertise and by having them consult with their superiors.

Number of Re-employed Workers & Rate of Re-employment
(Daikin Industries only)

History of Daikin's Re-employment System

Employment of People with Disabilities

Hiring More People with Disabilities across the Entire Group

The Daikin Group strives to hire the disabled based on its policy of providing opportunities for disabled people to grow personally and make contributions to society through production activities.

In 1993, based on the Act on Employment Promotion etc. of Persons with Disabilities, Daikin Industries established Daikin Sunrise Settsu Co., Ltd., a cooperative venture with the Osaka Prefecture and Settsu City governments.

This venture gives people with disabilities greater opportunity to make the most of their skills at workplaces designed specifically with employment of the disabled in mind. Including the employment of disabled persons at many group companies and expanding employment of disabled persons at special subsidiary companies, we are increasing the disabled employment ratio for Daikin Group as a whole. In June 2009, Daikin Sunrise Settsu's new plant was established as another step in hiring more disabled. The duties of these employees have also expanded from the processing and assembly of machine parts and the manufacture of chemicals, to computer assisted design and the publication of documents.

Disabled persons form the nucleus of the workforce at the company, and as of March 2011, the company has 89 disabled employees who work side-by-side with able-bodied fellow workers.

Number of Disabled People Employed
(Daikin Industries and domestic group companies^*3)

*1 Legally, 1 severely disabled person employed is counted as 2 disabled persons.

*2 Employment rate = number of disabled persons employed / number of persons employed.

*3 Disabled employment rate for only Daikin Industries until FY2006 and for the entire Daikin Group from FY2007.

The Slogans of Daikin Sunrise Settsu

External Awards

Daikin Named Certified Disabled Training Center in Shanghai

Using the experience of Daikin Sunrise Settsu Co., Ltd. in Japan, Daikin Air Conditioning Systems (Shanghai) Co., Ltd. has expanded its hiring of the disabled. Companies in Shanghai must have disabled account for at least 1.6% of their workforce. As of the end of March 2011, Daikin Shanghai had 63 disabled employees working on lines and in offices, accounting for 9.22% of all employees.

In July 2006, the Shanghai Federation for the Handicapped certified the company as a vocational training center for the handicapped.

In 2005, Daikin Shanghai established a product packaging assembly line operated by the many disabled the company hired that year. This line was separated from the current production line in order to ensure the safety of the workers. As the company improved its work environment and these employees gradually improved their skills, they began working more and more with other employees. And like all other employees, the disabled are compensated based on an evaluation of their performance.

Promotion of Local Personnel at Overseas Bases

Promotion of Local Management at Overseas Bases

Daikin Group is pushing forward the localization of management at overseas bases and is actively encouraging the promotion of local personnel to managerial positions.

In 2004, we started the Daikin Business School (D-BS), a training seminar for cultivating personnel to take on the tasks of local management. In fiscal 2009, we formulated a training plan to identify and cultivate prospective managers throughout the entire Group, and have since been carrying out staff appointments and training on a carefully planned basis.

In fiscal 2010, we promoted 11 local personnel to executive positions in Europe, China, other parts of Asia, and Oceania.

• See Key Activities of Fiscal 2009: Global Human Resource Development

Diversity Education for Employees

Training Japanese Employees for Work at Overseas Bases

Daikin Industries has a variety of training for Japanese employees who will be working at overseas bases so that they are able to respect the values of local employees and communicate with them properly.

This training has two goals. One is to improve understanding of the situation in the appointed region or country, the thinking and values of the people there, and the main considerations when doing business there. And because the Japanese employee will often be a manager, the other goal is to teach that person about Daikin's basic stance on personnel and labor matters, particularly cultural differences that could be important when evaluating employees.

In 2009, 21 Daikin employees bound for bases in the United States learned about current affairs and day-to-day personnel and labor matters in that country, while five Daikin employees appointed to bases in China learned the essentials of doing business in that country. In 2010, training is being held for 27 Daikin employees heading for Mexico, Brazil, and other Latin American countries so that they can understand the intricacies of the culture and customs of these countries.