1. Daikin
The Art of Continuous Improvement
CONFIDENTIAL 1

2. About Daikin Founded in 1924 Employs over 39,000 people worldwide
Annual Sales of USD 12 billion
Business divisions:
Transport and Refrigeration Systems | Air Conditioning | Chemical | Hydraulics | Defense | Electronics
World leaders in Air Conditioning
Entered the reefer market in 1968 and became the lead supplier of reefer units through the 1980s
2001 launched the ground breaking LXE10E machine
Daikin has the largest Scroll Compressor fleet in operation with 180,000 units and 116 customers worldwide
CONFIDENTIAL

3. The Foundation of Daikin’s philosophy
Quality
Performance
Reliability
These factors in the LXE10E are what made the unit widely accepted by shipping lines and subsequently leasing companies.
CONFIDENTIAL

4. Share of World Fleet
Daikin now have more than 180,000 units in the market, nearly 20% of the world’s current reefer fleet
2001
2009
CONFIDENTIAL

5. Share of Fleet In Korea
Almost all shipping lines in Korea are using Daikin Unit with good recognition of Daikin units.
The following shows Daikin’s share increase for Korea market
Total Reefer Operation volume in KOREA : approx. 38,000
CONFIDENTIAL

6. Sales Numbers 2009FY Major Leasing Companies Major Shipping Lines
Beacon | CAI | Florens | Seacastle | Textainer
Major Shipping Lines
APL | Hamburg-Sud | Hanjin | MOL | PIL | YML
Daikin Unit
2001: 15,000
2008: 168,000
CONFIDENTIAL 6

7. Customer Growth
Exceptional growth worldwide as customers recognize the high performance, reliability and global support provided by Daikin.
Number of Customers
CONFIDENTIAL 7

8. Customer List CONFIDENTIAL
* As of March 2010
Big customers (Total sales from start of the business in 1968)
1. Maersk: 27,500 unit
2. MOL: 21,500 unit
3. YML: 14,000 unit
*More information is in Back data (It is “secret”)
CONFIDENTIAL 8

9. In-house Technologies
Chemical
( The major supplier of
refrigerant in the world )
Air conditioning
( No.2 in the world )
Temperature control
Scroll compressor
R134a
LXE10E
DTMS
(Temperature & Energy
Management)
Hot gas defrost
Reefer
( 40 years experience )
Control
( In-house Designers )
CONFIDENTIAL

10. Daikin Differentiations
Daikin is a ‘PRODUCER’, not an ‘ASSEMBLER’
Highest Product Reliability backed up with +40 years’ experience in Reefer Industry
‘Temperature Control’ is Daikin’s Core Business
Pursuing Long-term Customer Satisfaction Keep providing Solutions to both Current and Future Products
CONFIDENTIAL

11. Key Difference - Highest Reliability Achieved
- Daikin Designed & Manufactured Components
Daikin
Carrier
Thermo King
Star Cool
(ThinLINE)
(PrimeLINE)
Compressor
In house
Outsource
(Copeland)
(Bitzer)
Refrigerant
(R404A)
Controller
(York)
(Lodam)
UTC Electronic in China design and produce Carrier controller.
Manufacturer
Manufacturer
Assembler
Assembler
CONFIDENTIAL

12. Suzhou Factory China
In 2008, Daikin opened its new factory in Suzhou, China.
Investment: US$25 Million
Production Capacity: 40,000 units per year
QC: 100% inspection of materials & components
Daikin Device (Suzhou) Co. Ltd.
(Compressor production facility)
Est (1.2m compressors per yr.)
New Daikin Refrigeration
(Suzhou) Co. Ltd.
CONFIDENTIAL

13. Suzhou Factory in Operation
Assembly Line
CONFIDENTIAL

14. After sales network Latin America North Asia Oceania Europe /Africa
Total
Authorized
Repairers 53 34 84 31
114
316
Regional
Parts Centers 1 2 4
Satellite 3 10
* As of March 2010
CONFIDENTIAL

15. Global Service Network
With more than 300 service offices around the world Daikin can offer customers the support where and when they need it
* As of March 2010
316 Authorized repairers | 4 Regional Parts Centres | 10 Satellite parts centres
CONFIDENTIAL

16. Comparison of part price
CONFIDENTIAL

17. Lowest Failure Rate Feedback from Customers & Repairers has confirmed
the Daikin unit to have the lowest failure rate.
(%)
CONFIDENTIAL

18. Unique features of DAIKIN 1
1. Hot gas system
This enables “0” repair cost thanks to
maintenance free structure and prevents
cargos from wet damage.
2. Auto pump down
This promise operator easy, safety,
uniformly operation in collecting Freon
gas by just pressing the button.
CONFIDENTIAL

19. Electric Heater (Competitors)
Hot Gas System
Benefits:
1. Zero Maintenance Cost: No electric heaters to fail
2. Shorter Defrosting Time: With heat concentrated in the coil
3. Cargo friendly: Less heat emission into cargo space
4. No Short Circuit Risk:
Hot Gas (Daikin)
Electric Heater (Competitors)
Episode: K Line has an experience that package of McDonald’s potato was damaged by water droplet.
Q1. Why competitors adopt Hot Gas System?
A1. Because of High technical hurdle
*StarCool tried to adapt Hot Gas System for its merits, but they gave it up.
Q2. Weak point of Hot Gas System
A2. (1) Low heating capacity with low ambient temperature
*Charge & Release Control (Service Manual 2-29) is executed to maintain the heating capacity optimum in defrosting and heating operation.
(2) Need more energy to operate compressor
CONFIDENTIAL

20. Auto Pump-Down Simple – Just press the keypad for start
vaporator EV
　 BSV
　 DSV
HSV
ESV
DPR
Condensor
SMV
Receiver
LSV
Compressor
ISV
 Simple – Just press the keypad for start
Convenient – No extra tool required in case of onboard repair
Quick – Complete within a few minutes and doesn’t require supervision
Safer – less chance of refrigerant loss
Automatic – no special skill required, always same quality.
CONFIDENTIAL

21. Unique features of DAIKIN 2
3. Efficient dehumidify
performance
Dehumidification efficiency is the
highest in industry for transporting
sensitive cargo such as flower bulb,
electrical part etc. mainly due to hot
gas system.
4. ASC
(Automatic Set point
Change)
ASC is one of new function which enables
machinery run with multi temp. settings
which was developed based on
customer’s request.
CONFIDENTIAL

22. The Dehumidification trial data
Competitors Averaged Inside humidity were 85%RH or high.
Container ID
Set Temp’
Set Humidification
Ventilation(F/A)
Averaged inside Humidity
ETD
ETA
Transportation
Ambient Temp’
: XXXX
: 66F (+19 Deg C )
: 75 %
: Closed
:　78％RH
: Kaohsiung
: Oakland
: Mar 5th – Mar 26th
: 10 deg C – 31 deg C
: XXXX
: 66F (+19 Deg C )
: 70 %
: Closed
: 74%RH
: Kaohsiung
: San Pedoro
: Feb 21th – Mar 9th
: 18 deg C – 38 deg C
: XXXX
: 64.4F (+18 Deg C )
: 75 %
: 50 cfm
: 79%RH
: Kaohsiung
: Miami
: Feb 21th – Mar 19th
: 14 deg C – 41 deg C
CONFIDENTIAL

23. ASC (Automatic Set point Change)
Introduction
This new function, ASC mode, enables machinery run with multi temperature settings
Function
More than two Set Points (Up to 9 set points) and each period can be set on controller.
When temperature elapsed for pre-set period, Set Point is changed automatically to next Set Point.
Image
ASC mode start
Temp.
SP1 period Count start
SP1 completed and go to SP2
Last SP continue to destination
(same as normal operation)
SP3
SP1
SP2
Last SP
Time
Period of Last SP
(Last)
Period of SP1
(Hour1)
Period of SP2
(Hour2)
Period of SP3
(Hour3)
CONFIDENTIAL

24. Refrigerant Situation
Daikin is a Refrigerant Manufacturer, chooses the most environmentally friendly gas and prepare the solution to the future.
Daikin
(R134a)
Carrier
Thermo King
(R404)
Star Cool
Refrigerant Production
In-house
Out-source
GWP (Global Warming Potential)
1300
3800
Alternative Gas Development
Yes
???
Best Performer is Daikin
3 scores
2 scores
0 scores
CONFIDENTIAL

25. Daikin Technical Advantages
Summary
Daikin
Carrier
Thermo King
Star Cool
Refrigerant Skill
In-House
Out-source
Auto Pump-Down
Yes No
Dehumidification Method
Hot-Gas
Electric Heater
(Hot-gas not activated)
Defrost Maintenance Cost (12 year life-time)
Zero
+US$1,200
Parts Price
100%
180%
125%
CONFIDENTIAL

26. Why Customers Choose Daikin
1. Highest Reliability
2. Established Global Service Network
3. Competitive Total Cost of Ownership
4. Environmentally-conscious
5. Unique & Beneficial Technology Based on Long Experience
CONFIDENTIAL