1. Environmental Impacts of MAC in Region with High Ambient Temperature April 20 th, 2015 United Nations Conference Center Pradit Mahasaksiri DENSO International Asia Co., Ltd.(DIAT)

2. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 2/12 1. Car Sales and Average Temperature in ASEAN Region MYANMAR Average Temp.:27.4 ℃ LAOS Average Temp.:28 ℃ VIET NAM Average Temp.:28 ℃ THAILAND Average Temp.:28.4 ℃ CAMBOGIA Average Temp.:27.7 ℃ MALAYSIA Average Temp.:27 ℃ BRUNEI DARUSSALAM Average Temp.:28 ℃ INDONESIA Average Temp.:28.4 ℃ PHILIPPINES Average Temp.:26.5 ℃ SINGAPORE Average Temp.:27.4 ℃ (Thousand) Car sales in ASEAN Region Ave. Temp.=27.6C Tokyo16.1C D.C.14.5C L.A.17.2C London11.0C Rome11.8C Beijing12.1C ASEAN region has particularly increased the number of car sales. We think that ASEAN region has a big environmental impact of MAC because of high temperature.

3. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 3/12 2. Estimate MAC Fuel Consumption and Refrigerant Impact

4. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 4/12 2-1. Estimate MAC CO2 Emission in Thailand CO2 emission per one car (kgCO2/yr) Overall CO2 emission comparison 280kgCO2 2268kgCO2 (8.1 times) Japan Thailand 868kgCO2 (3.1 times) Ambient temp. ： 16→28.4 ℃ (3.1 times* ） Mileage ： 10575→27500km/yr (2.6 times) 16.64 million ton-CO2 14.22 million ton-CO2 (0.85 times) Japan Thailand Vehicle UIO* in 2012 Japan : 59.42 millions Thailand : 6.27 millions (11% of Japan) MAC CO2 emission in Thailand is about 85% of Japan and will exceed soon considering market growth in the future. 10.7%(Japan) 27.1%(Tailand) Ratio of MAC CO2 emission *UIO: Unit in operation *CO2 emission increase based on tempature rise.

5. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 5/12 2-2. Estimate MAC CO2 Emission in Indonesia CO2 emission in Indonesia is the same as Japan and will largely exceed soon considering market growth in the future. 280kgCO2 1616kgCO2 (5.7 times) Japan 868kgCO2 (3.1 times) Mileage ： 10575→19574km/yr (1.9 times) Indonesia Ambient temp ： 16→28.4 ℃ (3.1 times*) CO2 emission per car (kgCO2/yr) Overall CO2 emission comparison 16.64 million CO2-ton Japan 16.96 million CO2-ton Almost same Indonesia Vehicle UIO in 2012 Japan : 59.42 millions Indonesia : 10.494 millions (17.6% of Japan) 10.7%(Japan) 25.0%(Tailand) Ratio of MAC CO2 emission *CO2 emission increase based on tempature rise.

6. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 6/12 3. JAMA Field Survey (2004-2005) : Refrigerant Leakage Survey result shows that 6C temp. rise leads to 6g/yr leakage. Leakage should increase more and more in ASEAN region with average temp. 28 C. JAMA ： Japan Automobile Manufacturers Associate Average leakage: 10.2g/y Region: Tokyo and Nagoya city (88 vehicles), Average temp. 16C Average leakage: 16.0g/y Region: Okinawa city (27 vehicles) Average temp. 22C

7. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 7/12 4. Refrigerant Management and Car Air-conditioner Repair in ASEAN Region

8. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 8/12 4-1. ASEAN Environment and Car Usage ① Ambient temp. is high all year around ② MAC annual operating hour is longer ③ Annual average mileage of passenger car is longer ④ PM pollution concentration is higher ① Average Ambient Temperature Comparison ② MAC Annual operating hours [Hr] ④ PM pollution concentration [μg/m3] PM: Particulate Matter ③ Passenger Car Annual Average mileage [km]

9. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 9/12 4-2. MAC Impact under ASEAN Environment and Car Usage Increase of in-use refrigerant leakage Periodic maintenance is required Clog of AC filter quickly Decrease of Heat exchanger performance by dust Increase of repair demand Refrigerant recovery recycle machine Genuine refrigerant management and appropriate repair are required. ② Longer MAC operating hours ① Higher average ambient temperature ④ Higher pollution concentration ③ Longer annual mileage Refrigerant charge is required Refrigerant recovery is required to exchange parts.

10. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 10/12 1.Refrigerant being discharged directly to atmosphere - Expansion of refrigerant recovery/recycle machine is not enough. - Impact of discharging refrigerant to atmosphere is not recognized well. Refrigerant is discharged to atmosphere and imitated parts are used in some AC service/repair shops and general garages. 4-3. Actual Situation at AC Service/Repair Shop Refrigerant is discharged to atmosphere without recovery machine 2. Unapproved refrigerant being charged - Circulate unapproved refrigerant - Unable to judge genuine refrigerant 3. Imitated parts being distributed - Low price, but low quality. Performance decrease and system malfunction Performance decrease/ Early malfunction Global warming impact HFC-134a CRC-12

11. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 11/12 Proposal High ambient temperature countries would have a great environment impact of MAC. Switching to Low-GWP refrigerant appropriate for high temperature region would be expected in the long term. However until switching to Low-GWP refrigerant, followings are our concerns and what we should work on in the short term. For this reason, field survey to ascertain the fact and actual situation shall be performed. 1.High refrigerant leakage (ex. Leak tight connection or hoses etc.) 2.High fuel consumption (ex. High efficient compressor or HXs etc.) 3.Insufficient refrigerant recovery (ex. Expand recovery machine) 4.Insufficient AC servicing (ex. Lead proper service)

12. This information is the exclusive property of DENSO CORPORATION. Without their consent, it may not be reproduced or given to third parties. 12/12 Thank You for Your attention!