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Establishment of Daikin Airconditioning Egypt S.A.E.

Expanding Business in Egypt as a Key Strategy for the Middle East and Africa

10 August 2016

Daikin Europe N.V. (Headquarters: Ostend, Kingdom of Belgium), a wholly-owned subsidiary of Daikin Industries, Ltd. ("Daikin"), has partnered with BPE Partners S.A.E., a leading Egyptian private equity firm, to establish Daikin Airconditioning Egypt S.A.E. (Headquarters: Cairo, Egypt). Daikin Egypt began operations in August 2016.

Daikin established the Egyptian subsidiary, Daikin Egypt, based on a belief that Egypt's growing economy remains the pillar of growth for both the Middle East and Africa. With the development mega projects and cities such as the New Capital City, the New Suez Canal Development Area, and the expansion of Cairo on the East and West borders, Egypt is paving the way for large-scale urban development projects. By 2050, the current population of 18 million people in Greater Cairo is projected to climb to 40 million. This automatically is coupled with investments in construction of office space, retail centers, and healthcare. Consequently, substantial growth is foreseen in the air conditioning market.

To implement these large-scale projects, the Egyptian government has created an environment that expands the role of foreign companies by actively seeking investment from foreign companies. Furthermore, with the gradual removal of the power subsidies in Egypt, demand for high-efficiency, energy-saving products increased.

In establishing a subsidiary in Egypt, Daikin is laying the groundwork for business development that aggressively competes for large-scale projects by leveraging the local knowledge and investment expertise of BPE Partners and collaborating with the Daikin Middle East Office in Dubai. With energy-saving products ranging from residential to commercial use, Daikin is poised to substantially expand business in Egypt. The success it achieves in the Egyptian market will be used as a springboard to future development in the Middle East and Africa.

About Daikin Industries, Ltd.

Daikin Industries is a Japanese-based company and one of the world's leading companies in the field of HVAC. Daikin Industries, Ltd. employs more than 60,000 employees worldwide. Through Daikin Egypt, the company will distribute and provide after-sales of air conditioning and heating, ventilation and cooling equipment and chiller energy-saving and other services. Headquartered in the Japanese city Osaka, Dakin Industries, Ltd. owns and operates more than 80 production centers worldwide and has presence in more than 145 countries. The company's sales exceeded USD 15 billion in 2015. Daikin Industries, Ltd. is the leader in the field of refrigeration and HVAC since it developed "VRV" technology in 1982 which is today one of the fastest growing cooling systems in commercial and residential buildings.

About BPE Partners

BPE Partners (formerly Beltone Private Equity) is an Egypt-based employee-owned private equity manager founded in 2006. The company invests in diverse high-growth sectors of the Egyptian economy. Its highly experienced investment professionals help Egyptian companies institutionalize and develop to become regional champions in their respective industries. BPE Partners' investment portfolio includes companies such Total Egypt, Madinet Nasr Housing and Development (MNHD), PGESCo, Giza Systems, Cairo Kidney Center, Bio Pharma Egypt, Cairo for Development and Car Manufacturing (CDCM - Peugeot Egypt), Upper Egypt Leasing, Rawaj Auto Loan, Kahromika and Al Ismaelia for Real Estate.

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