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Annual Network Meeting of National Ozone Officers in South Asia for R-32 Technology

Join the Annual Network Meeting of National Ozone Officers in South Asia to learn about the introduction of R-32 technology and its impact on energy savings and comfort in air conditioning. Presented by Gaurav Mehtani from Daikin.

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Annual Network Meeting of National Ozone Officers in South Asia for R-32 Technology

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  1. Annual 2017 Network Meeting of the National Ozone Officers of the South Asia Countries Introduction of R-32 technology Gaurav Mehtani 24th May, 2017 Agra

  2. Daikin Global Overview Daikin leads the air conditioning market in the three cutting-edge core technologies REFRIGRANT CONTROL INVERTER HEAT PUMP Contributes to greater energy savings and comfort Absorbing and moves heat from the air Efficient heat transport Daikin Core Technology 21+ Bn 60,805+ 1924 210 60+ Founded Revenue ~ US$ Consolidated subsidiaries Employees Factoriesworldwide

  3. Presence in India Key Facts Company nameDaikin Air conditioning India Pvt. Ltd. (DAIPL) Established4th April, 2000 LocationHead Office: Gurgaon, Haryana Factory: Neemrana, Rajasthan Factory Land Area: 40 acres (160,000 sqm) Paid up capitalRs. 8,029 Millionas of March 31, 2016 ShareholdingDaikin India a wholly-owned subsidiary of DIL(Daikin Industries Limited), Japan Employees1,967 (March 31, 2016) Business rangeOur business range comprises manufacturing, sales and related service of air-conditioners and chillers 11 15 04 17 350+ 4,000 375+ 2,000 Head Office Branch offices Resident offices Mother warehouses Supporting warehouses Solution plazas Sales Outlets Authorized service partners Total workforce of around people Resident Office Branch Office Certified with ISO 9001, ISO 14001, ISO 18001, ASME U STAMP & AHRI Inspired with a ‘Safety & Quality First' global philosophy Manufacturing Unit Mother Warehouses Other Warehouses R&D Centre

  4. Factory Our Engine for Growth Our Engine for Growth ASME U stamp for Quality of Pressure Vessel December2009 (American Society of Mechanical Engineers) First Factory in DAIKIN & in INDIA AHRI January2010 for Quality of Product Performance (Air-Conditioning Heating and Refrigeration Institute) First Factory in DAIKIN ISO9001 LocationNeemrana, Rajasthan Production CapacityVRV - 20,000 units p.a. Chillers – 1800 units p.a. RA - 5 Lac Units p.a. Ductable - 6,000 Units October2010 for Quality Management System Area1,60,000 Sq Mtr (40 Acres) ISO14001 2012 for Environment Management System Project investmentINR 11,150 millions OHSAS18001 2013 for Safety Management System Q (Quality)

  5. Global R&D Foot Print 12 10 03 08 09 13 16 06 07 11 17 18 04 02 15 05 14 01

  6. Product Portfolio RA IDU VRV IDU RA ODU SA ODU SA IDU Water cooled centrifugal chiller PA ODU VRV ODU PA IDU Water cooled screw chiller

  7. R&D Equipment 3 Ton Capacity Psychometric Laboratory 25 Ton Capacity Multi room Psychometric Laboratory Twin Anechoic Chamber Test Performed: Cooling Capacity: 2.8 Kw ~ 10.6 Kw Heating Capacity: 2.8 KW ~ 12.0 Kw De-humidification Capacity Air flow, Power, Frequency , EER Test Performed: Cooling Capacity: 3.5 Kw ~ 84 Kw Heating Capacity: 3.5 KW ~ 56 Kw De-humidification Capacity Air flow, Power, Frequency , EER Test Performed: Sound power, Sound Pressure Lab Specifications: IDU: 18 dB ODU: 25 dB 11 Ton Capacity Psychometric Laboratory 3 Ton Capacity Psychometric Laboratory 5 Ton Capacity Psychometric Laboratory Test Performed: Cooling Capacity: 10 Kw ~ 40 Kw Heating Capacity: 10 KW ~ 45 Kw De-humidification Capacity Air flow, Power, Frequency , EER Test Performed: Cooling Capacity: 2.8 Kw ~ 10.6 Kw Heating Capacity: 2.8 KW ~ 12.0 Kw De-humidification Capacity Air flow, Power, Frequency , EER Test Performed: Cooling Capacity: 2.8 Kw ~ 18 Kw Heating Capacity: 2.8 KW ~ 20 Kw De-humidification Capacity Air flow, Power, Frequency , EER

  8. R&D Equipment Product Reliability Laboratory Cyclic Salt Spray Chamber Air Flow measurement Laboratory Test Performed: Life cycle test of product Lab Specifications: IDU: 5 ~ 60 ⁰C & 30 ~ 90% RH ODU: -15 ~ 60 ⁰C & 30 ~ 90 % RH Voltage: 230 V; 187 V; 253 V Test Performed: Air Flow measurement: 200 ~ 10,000 CFM Lab Specifications: IDU: 5 ~ 60 ⁰C & 30 ~ 90% RH ODU: -15 ~ 60 ⁰C & 30 ~ 90 % RH Test Performed: Salt mist and climate alternating test Relevant Standard: ASTM G85 Annexure A2, A3 and A4 Specifications: Temperature range: Amb ~ +55 ⁰C Humidity: 50% ~ 90% Volume: 1000 Ltrs Climatic Chamber Mechanical Shaker 5 Ton Capacity Psychometric Laboratory Test Performed: Climate variation test on components Relevant Standard: IEC60068-2-1, MIL 202810, JEF D22-A119 Specifications: Temperature range: -40 ⁰C ~ +180 ⁰C Humidity: 10% ~ 98% Volume: 350 Ltrs Test Performed: Product vibration and impact dynamic energy while transported. Relevant Standard: ASTM, ISTA, ISO and MIL-STD Specifications: Bed size: 60” Square; Payload capacity: 1000 kg; Motion: Circular synchronous, vertical - linear Test Performed: Test Performed: To have compatibility of packaging to withstand drops in field. Relevant Standard: ASTM, ISTA, ISO and MIL-STD Specifications: Payload capacity: 500 kg; Height: 0-40 Inches

  9. Global Warming Impact of Refrigerant • Refrigerant causes large global warming impact • Emissions of refrigeration and stationary AC sectors are large • China/Asia/India will cause large emissions Emission by country Emission per sector Mobile AC Asia Stationary AC India China Japan Ind/com refrigeration USA EU

  10. R32 – An Optimum Solution

  11. HFC32 can reduce CO2 eq. emissions by 75% Total Assessment of Refrigerant Total Assessment of Refrigerant R32 - Balanced refrigerant and can reduce GWP by 75% Ozone Ozone Ozone 5 5 5 4 4 4 3 3 3 Economy LCCP Economy LCCP Economy LCCP 2 2 2 1 1 1 （※1） Energy efficiency Energy efficiency Energy efficiency Safety Safety Safety R22 R410A R32 （※1） LCCP：（Life Cycle Climate Performance） Charge ratio ％（※3） Modified GWP GWP（※2） 100 2090 2027 97 1810 1810 70 675 472 （※2）Based on IPCC 4th report　（※3） In case that all refrigerant have the performance equivalent to R22

  12. Energy efficiency and Total Emissions Energy Efficiency and Total Emissions 1.SEER Comparison (cooling mode) HPs （Reversible）- 3.5kW-Room AC 3.Total Emissions (LCCP comparison) 3.Total Emissions (LCCP comparison) LCCP:Life Cycle Climate Potential Total Emissions = (1) Indirect Emissions + (2) Direct Emissions R22 + (3) Emissions During Refrigerant Production R410A High SEER R22 R32 R410A 0.8 0.9 1.0 1.1 Efficiency ratio 2.Peak power comparison under cooling condition Outside 35℃, room 27℃ Low Impact R32 R22 (Kg-CO2) 7000 9000 11000 13000 15000 0 R32 is the best solution for global environment. R410A Low Peak Power (Precondition for Calculation)　*1 Taking low pressure loss into consideration, narrower HEX was used to reduce charge volume.　　*2 To improve efficiency, HEX size was increased : Indoor HEX x 1,1 + Path x 2, Outdoor HEX x 1.2, and connecting pipe increased from 3/8=> 5/8　　*3 To meet IEC requirements, charge volume was reduced: Indoor HEX x 0.8, Outdoor HEX x 0.5, narrower piping was used.　　*4 To Improve efficiency: Outdoor unit HEX was increased x 1.1 　 （HEX= Heat Exchanger） R32 Power ratio 0.4 0.8 1.2

  13. 110% 105% 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 30 35 40 45 50 55 60 Efficiency Comparison Comparison for EER Comparison of R32 and R32/HFO blend vs R410A at the same capacity *Residential split system Indoor : DB/WB = 27℃ / 19℃ +7% VSR410A 6.0kW System R32 + 5% VSHFO Blends R410A 4.0kW System Relative EER (vs R410A at 35℃ %) Same Capacity at 35℃ Outdoor temp. R32 R32/HFO1234ze(E) blend (70:30) Outdoor temp.(℃) 13

  14. Safety Comparison Safety Standard Comparison Safety standards of refrigerant for each region

  15. Safety Comparison Safety Standard Comparison A2L classification by ISO 817 The burning velocity (<10cm/s) is too slow to cause horizontal flame propagation nor explosion. Flammability of 2L refrigerants is very low.

  16. Service Tools Compatibility Compatible Compatible Compatible Compatible Compatible Compatible Compatible Compatible Compatible Compatible Compatible Compatible

  17. Capacity Building in India R32 Service Technician Training in India • Project conducted under Feasibility Study Program for energy efficient home appliances sponsored by METI • Daikin established a technician training program to expand the Indian servicing network for R32 • 76 sessions were given and 3600 local installers were trained in this project • We also trained our dealer partners technical 4000 (225 programs) Through this project India is developing the necessary expertise to service R32 equipment throughout the country. 17

  18. R32 Compressor Manufacturers

  19. Promotion of R32 by other brands outside India

  20. Promotion of R32 by other brands - India • ETA General has launched eco-friendly R-32 refrigerant for its 3 star-rated range in India in 2014 • LG has launched one model of1.5 TR Inverter Model in India in 2015 • Mitsubishi Electric has launched models in 3 star and 5 star category • Bluestar launched R32 models in Residential category in 3star and 5 star • LLOYD signed an MOU, expected to launch R32 units soon • Other brands are also in discussion with Daikin for R32

  21. R32 units Penetration (RAC) • Daikin India sold more than 1.6 million units so far • Daikin Globally sold about total 9 million units in 51 countries • About total 23 million R32 RAC units has been sold (estimation) • More than 40million*1 tons of CO2 could be reduced (estimation) *1 In case of 1.3kg (including extra charging when installation) of refrigerant charge. Refrigerant charge volume reduction and improvement of Energy Efficiency derived from R32 use are not considered. Russia Europe Turkey Taiwan USA Japan Saudi/UAE/Oman India Thailand Malaysia Philippine Singapore Australia/New Zealand Indonesia * Estimated by Daikin (Based on press release or catalog information)

  22. Daikin Patent Policy Daikin Patent Policy • On 10 September 2015 , Daikin announced it is offering worldwide free access to 93 patents for the use of HFC-32 in air conditioning, heat pump and refrigeration equipment • Already in 2011, Daikin had offered these patents to industries in emerging markets who wanted to accelerate their phase-out of ozone-depleting refrigerants. • Given the urgent need to address climate change, Daikin believes that it is the right time to extend free access to these 93 HFC-32 equipment patents to manufacturers worldwide • The air conditioners manufactured in India can be sold in India or can be exported to any countries • Manufacturer can FREELY buy R32 from open market (Indian supplier or from abroad). • Manufacturer can FREELY buy required materials, parts etc from open market in India or abroad. It is not binding to buy such materials or parts from any affiliates/ subsidiaries of DIL. • DIL has developed 2 number of Improvement Patents registered in India which shall be available only on FEE basis but the patents correspond to very special technical features and DIL itself does not use the technology. http://www.daikin.com/press/2015/150910/index.html Press Release – 10/9/2015 22

  23. Product Efficiency – Next Level Daikin Patent Policy SUPER Energy Efficient AC Daikin who is a pioneer in Inverter Technology always has exceled to provide energy efficient products. <750 Units/Annum 5.33 ISEER

  24. Air-conditioning Technology & Development Centre Daikin Patent Policy Introduction Three lecture rooms which can train 60 trainees at any point of time. Lodging facility for 48 trainees & 4 trainers at a time. Four exclusive Practice rooms dedicated to our diversified product lines Recreational facilities like Indoor games, TV & Movies One dedicated office area with all reprographics arrangements for trainers & other training functionaries Brazing shop for sharpening skill of Brazing. Objectives Up-gradation of Knowledge, Skill & Attitude (K.S.A.) of our employees and associates, to the level of Daikin global standards in terms of the Technology ,Product Knowledge, Installation & Commissioning, Sales and After sales service. Provide an ideal platform for young DAIPL trainees to hone their knowledge & skill of Refrigeration & Air-conditioning along with practical training and demonstration. Achieve the status of a model Refrigeration & Air-conditioning Training & Education Centre of the Air conditioning industry in India.

  25. Japan-India Institute of Manufacturing Daikin Patent Policy

  26. You will be charged You will be charged Thank you very much

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