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Message from Management

Aiming for Sustainable Growth and a Sustainable Society through Technological Strength and Outstanding Human Resources

Masanori Togawa
President and CEO
Daikin Industries, Ltd.

In October 2014, Daikin Industries will celebrate its 90th anniversary. In the past 10 years, the number of countries where we have bases has grown from 63 to 145, while the percentage of our business accounted for by overseas operations has increased from 45% to 71%.

Air conditioning, the core business and engine of growth for the Daikin Group, is becoming one of the most important facets of social infrastructure, a business indispensable to providing people with good health and a culturally advanced lifestyle, as well as to fueling economic development. Through air conditioning, we have provided people around the world with a fulfilling, comfortable lifestyle.

At the same time, air conditioning uses large amounts of energy. One of mankind's greatest challenges will be to minimize the rise in energy consumption accompanying economic development, especially in the rapidly growing emerging countries. We at Daikin Industries are well aware that climate change resulting from an increase in greenhouse gas emissions is a major social issue that we must endeavor to solve.

Using Our Strength in Technology to Help Mitigate Climate Change

To contribute to solving the problem of climate change, we are using our technological strength. For years, we have focused on highly energy-efficient products and services in order to bring more and more people around the world environmental technologies that mitigate the further increase of greenhouse gas emissions.

We are developing and promoting the global dissemination of products and technologies, that contribute to mitigating environmental impact, including R-32, a new refrigerant that reduces global warming impact to just one-third that of conventional refrigerants; heat-pump type heating systems, which result in CO2 emissions less than 50% of those from conventional combustion-type heating; and inverter technology, which offers both comfort and energy efficiency.

In 2015, we will open the Daikin Technology Innovation Center, a global R&D base for creating new social value in the fields of air environment and energy. This center will enable us to broaden our business concept?from buildings to overall space, and from air conditioning to air itself?and to facilitate development of environmental technologies for the realization of a sustainable society.

Striving for Global Human Resource Development and Diversity

Another strength of the Daikin Group is People-Centered Management. Human resources are the driving force that propels a company's growth and contribution to the advancement of society. We believe that "cumulative growth of all Group members serves as the foundation for the Group's development," and we put this belief into action by building a work environment in which our employees irrespective of their age, gender, or nationality can use their talents to the fullest in exciting and rewarding work.

We do business in 145 countries and about 80% of our workforce is made up of non-Japanese nationals. This means that the key to growth lies in working closely with our bases around the world and in providing employees opportunities to use their talents to the fullest. Together with contributing to expansion of local employment and fostering of human resources, Daikin strives to train locally hired employees around the world to be executives and company leaders with strong leadership and management skills who can use their unique traits and values to make the Daikin Group stronger.

At the same time, we are utilizing diverse human resources to respond to the changing needs of the market. One of our focuses in Japan is unleashing the potential of women. We strive to increase the number of female managers by offering various work support programs, and through training programs that allow both managers and female employees to change their thinking.

Coexistence with Society Based on Local Needs

Daikin products and services, such as air conditioners that use refrigerants with low global warming potential, help mitigate greenhouse gas emissions in emerging countries. We also enthusiastically engage in local environmental protection activities around the world.

Forests keep temperatures down they are "nature's air conditioner." As part of social contribution activities beginning in fiscal 2014 to celebrate our 90th anniversary, we are expanding conservation activities to the Amazon rainforest and six other locations around the world to help prevent illegal development and protect valuable forests by supporting sustainable livelihoods of the people living there. As a company that provides people with a comfortable air environment and tackles the major challenge of mitigating climate change, we aim to mitigate global warming and ensure that future generations continue to have forests that nurture the Earth's air.

Throughout these and other social contribution activities, employees at Daikin bases around the world take front and center in our efforts to respond to local needs.

Since 2008, the Daikin Group has been taking part in the United Nations Global Compact, an initiative for companies committed to operations and strategies in line with ten universally accepted principles in areas including human rights, labor, the environment, and anti-corruption. We also follow the ISO 26000, guidance standard for social responsibility, in conducting CSR management in accordance with internationally recognized standards. We will continue to contribute to society to fulfill the high expectations that our stakeholders customers, shareholders, suppliers, and communities have for us.

June 2014

Masanori Togawa
President and CEO
Daikin Industries, Ltd.

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