In order for our Daikin Group to accelerate the implementation of consolidated management and to dynamically expand the content and location of our business operations, it is increasingly important to clearly set forth this Group Philosophy and thoroughly promote its understanding. This understanding will also help build trustworthy relationships with our customers around the world and enable our employees worldwide to take pride in the organization they work for. Furthermore, as a source for decisive and cohesive action, the Group Philosophy will enable everyone in our Group to generate innovative ideas and proposals and take flexible actions based on them. This Group Philosophy was thus formulated as a fundamental mindset of our management for everyone in the Daikin Group to hold in common.

Future management policies and plans formulated by Daikin Industries or individual Group companies will be made in accordance with this Group Philosophy. At the same time, I would like all members of the Group to refer to this Group Philosophy as the basis for judgments or decisions in the course of their work.

When all Group members display their vibrant personalities and take flexible actions with this Group Philosophy in mind, I am confident that our valued tradition of Fast & Flat Management will be further enhanced, bringing us substantially closer to realizing our goal of becoming a Global and Truly First-Class Company.

With a foundation based on our three key corporate principles of "Absolute Credibility," "Enterprising Management" and "Harmonious Personal Relations," as well as this Group Philosophy, let us continue evolving both individually by challenging ourselves to accomplish our ambitious goals believing in our infinite potential, and together by striving to become an overwhelmingly first-class global corporate group—a group in which employees can have pride and enthusiasm.

August 2002

Full text can be found at: http://www.daikin.com/company/rinen.html