Supply Chain CSR Promotion Guidelines

3. Free Competition and Fair Business Dealings

Specific Guidelines

1. Observance the Antimonopoly Act
   1. To ensure free competition, do not enter into agreements with your competitors in any country to predetermine pricing, production and sales quantity, production and sales models, business partners, sales territory, date of product launch, or similar anti-competitive action.
   2. In the case of tendered bids and quotations, do not enter into any agreements with your competitors to predetermine bid price or bid recipient.
   3. Do not unfairly inhibit your dealers from selling other companies’ products, nor restrict their sales territories, sales routes, purchase routes, or take any similar action in violation of the Anti-Monopoly Act or other fair-trade laws.
   4. Observe the laws and regulations relating to fair competition in each country and region, and conduct fair and honest business activities.
2. Strict Adherence to Purchasing Rules and Observance the Subcontract Act
   1. When selecting suppliers, widely open your door to companies worldwide to provide fair and equal business opportunities. In addition, grow together with your suppliers, maintaining friendly yet tense competitive relations so that you can develop your business together with your suppliers.
   2. Promote the understanding and cooperation of your suppliers with respect to Daikin’s efforts towards legal compliance, respect for human rights, preservation of the environment, and contribution to the development of a sustainable society.
   3. Strictly observe the Subcontract Act (Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors) in regard to transactions with your suppliers as you follow sound business and work to protect your business partners.