Update on R32 Air-conditioning and Heat Pump Manufacturing and Sales -Progress Since Last OEWG in Bangkok 2012-

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1 Update on R32 Air-conditioning and Heat Pump Manufacturing and Sales -Progress Since Last OEWG in Bangkok Mark Stanga Daikin Industries Ltd.

2 Contents Progress in Japan Progress in India Progress in Europe Daikin s Contributions and Future Challenges

3 Looking back Daikin's Presentation 2012 Diversity of Refrigerant Choice Evaluation of R32 Safety Comparison Energy Efficiency Total Emissions (LCCP comparison) Comprehensive Comparison Superior Performance of R32 Potential Down Sizing by R32 Compared to R22 Higher Cooling Capacity by R32 Patent Release for Developing Countries Barriers for R32 Research of Local Regulation in India Distribution of R32 Gas in India R32 Technical Training Trial Daikin's Challenge

4 Progress in Japan

5 Launching R32 Room AC in Japan Daikin launched the world s first air conditioners to use HFC32 into the Japanese market on November 1, 2012.

6 Premium Model R32 RAC Line-up Expansion Basic Model Capacity 2.2kW 2.5kW 2.8kW 3.6kW 4.0kW 5.0kW 5.6kW 6.3kW 7.1kW 8.0kW Full replacement of R410A models November, 2012: 4 models Today : 53 models

7 Why is Current Progress for Small Capacities? Refrigeration Safety Regulations for Air Conditioners Refrigeration Capacity Refrigerant 3 ton 20 ton R410A Standard installation procedure R32 Special authorization required

8 Risk Assessment of Mildly Flammable Refrigerant in Japan -Introduction of Progress Report by JSRAE-

9 Progress in India

10 Capacity Building in India R32 Service Technician Training in India Project conducted under Feasibility Study Program on Bilateral Offset Credit Mechanism Daikin established a technician training program to expand the Indian servicing network for R32 3,600 local installers were trained in this project Through this project India is developing the necessary expertise to service R32 equipment throughout the country.

11 R32 Installation and Service Manual

12 ales Promotion in India (November 2012) Chennai Delhi Mumbai

13 Distribution of R32 Gas in India Japan China India Factory Distribution Company R32 Step I R32 Refilling Service Center Installation Site Ton Cylinder Step II ISO tank Infrastructure Building now Step III Near future Cooperation with local manufacturers in India

14 Research of Local Regulation in India Control authority : Petroleum and Explosive Safety Organization Department of Industrial Policy & Promotion (PESO) Explosive Rules 2008 Gas Cylinder Rules 2004 License required over 200kg storage Static & Mobile Pressure Rules (SMPV) 1981 License required over 1000kg pressure vessel Control authority Factory Advice Service and Labor Institutes Factory Act 1948 Storage Charging Transportation Scope of SMPV Over 1000kg pressure vessel Scope of Gas Cylinder Act Cylinders over 200kg Out of Scope of Gas Cylinder Act Gas Cylinder Act R32 License required Isolation of fire Anti explosion of electric facility Should be cleared without significant investment

15 Progress in Europe

16 First Launching of R32 in Europe in Autumn 2013

17 Daikin s Contributions and Future Challenges

18 Japan s Contributions to HPMPs in 2012 Japanese manufacturers shared technical knowledge with delegates from A5 countries such as Algeria, Bangladesh, Brazil, India, Indonesia, Laos, Malaysia, Philippines and Vietnam

19 Kobe Symposium November 2012 New Refrigerant and Environment Technology 2012 JRAIA organized refrigerant conference in Kobe Japan November Most updated and significant research results have been reported

20 Daikin's Challenges Further research for risk assessment for larger refrigerant charges New Product development with R32 Support adoption of A2L in safety standards, transport rules and building codes Capacity building for R32 installation and servicing Develop R32 refrigerant supply and distribution infrastructure Continue patent release offer and negotiations in A5 countries Continue supporting HPMP development in A5 countries who are adopting R32

21 Thank You!!

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