Daikin The Art of Continuous Improvement CONFIDENTIAL 1

Daikin The Art of Continuous Improvement CONFIDENTIAL 1

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 1980 s • 2001 launched the ground breaking LXE 10 E machine • Daikin has the largest Scroll Compressor fleet in operation with 180, 000 units and 116 customers worldwide CONFIDENTIAL 2

The Foundation of Daikin’s philosophy Quality Performance Reliability These factors in the LXE 10 E are what made the unit widely accepted by shipping lines and subsequently leasing companies. CONFIDENTIAL 3

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 CONFIDENTIAL 2009 4

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 2009 2010 A 63% B 16% B 10% C 10% A 56% Daikin 18% C 2% Daikin 25% Total Reefer Operation volume in KOREA : approx. 38, 000 CONFIDENTIAL 5

Sales Numbers 2009 FY Major Leasing Companies Beacon | CAI | Florens | Seacastle | Textainer Major Shipping Lines APL | Hamburg-Sud | Hanjin | MOL | PIL | YML B 14% C 10% A 50% Daikin 26% CONFIDENTIAL 6

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

Customer List * As of March 2010 CONFIDENTIAL 8

In-house Technologies Chemical Air conditioning ( The major supplier of refrigerant in the world ) ( No. 2 in the world ) Temperature control Scroll compressor R 134 a LXE 10 E Hot gas defrost DTMS (Temperature & Energy Management) Reefer Control ( 40 years experience ) ( In-house Designers ) CONFIDENTIAL 9

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

Key Difference - Highest Reliability Achieved - Daikin Designed & Manufactured Components Daikin Carrier (Thin. LINE) (Prime. LINE) Thermo King Star Cool Compressor In house Outsource (Copeland) Outsource (Bitzer) Refrigerant In house Outsource (R 404 A) Outsource Controller In house Outsource (York) Outsource (Lodam) Manufacturer Assembler CONFIDENTIAL 11

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. 2003. (1. 2 m compressors per yr. ) New Daikin Refrigeration (Suzhou) Co. Ltd. CONFIDENTIAL 12

Suzhou Factory in Operation CONFIDENTIAL Assembly Line 13

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

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 15 316 Authorized repairers | 4 Regional Parts Centres | 10 Satellite parts centres CONFIDENTIAL

Comparison of part price CONFIDENTIAL 16

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

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

Hot Gas System Benefits: 1. 2. 3. 4. Zero Maintenance Cost: No electric heaters to fail Shorter Defrosting Time: With heat concentrated in the coil Cargo friendly: Less heat emission into cargo space No Short Circuit Risk: Hot Gas (Daikin) CONFIDENTIAL Electric Heater (Competitors) 19

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

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

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 : XXXX 1601054 : 66 F (+19 Deg C ) : 75 % : Closed : 　78％RH : : : XXXX 1610333 66 F (+19 Deg C ) 70 % Closed 74%RH ETD ETA Transportation Ambient Temp’ : : : : Kaohsiung : San Pedoro : th – Mar 9 th Feb 21 : 18 deg C – 38 deg C : CONFIDENTIAL Kaohsiung Oakland Mar 5 th – Mar 26 th 10 deg C – 31 deg C : : : XXXX 1610950 64. 4 F (+18 Deg C ) 75 % 50 cfm 79%RH Kaohsiung Miami Feb 21 th – Mar 19 th 14 deg C – 41 deg C 22

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. SP 1 period Count start SP 1 completed and go to SP 2 Last SP continue to destination (same as normal operation) SP 3 SP 1 SP 2 Last SP Time Period of SP 1 (Hour 1) CONFIDENTIAL Period of SP 2 (Hour 2) Period of SP 3 (Hour 3) Period of Last SP (Last) 23

Refrigerant Situation Daikin is a Refrigerant Manufacturer, chooses the most environmentally friendly gas and prepare the solution to the future. Daikin (R 134 a) Carrier (R 134 a) In-house Out-source GWP (Global Warming 1300 Potential) 1300 3800 1300 Alternative Gas Development Yes ? ? ? Yes Best Performer is Daikin 3 scores 2 scores 0 scores 2 scores Refrigerant Production CONFIDENTIAL Thermo King Star Cool (R 404) (R 134 a) 24

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

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 26