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Notice of Non-Renewal of DSR Policy

12 May 2015

The Company formulated the DAIKIN Shareholder Relationship Policy (DSR Policy) in 2006 as a policy on disclosure to shareholders. Since then, the Company has renewed the DSR Policy every three years after reviewing its content as necessary.

However, the Company determined that the DSR Policy had served its intended purpose and decided, at the Board of Directors' meeting held on May 12, 2015, not to renew the policy upon its expiry. The decision was made in light of the significant changes that have occurred in the business environment surrounding the Company and the market environment and the recent improvements in legislation relating to information disclosure and compliance.

The Company will continue to disclose accurate and detailed information, regardless of the DSR Policy not being renewed, and will continue with efforts to reinforce its disclosure system.

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