Acson Global Distributor Meeting Page 1 Sum Chee Choong Operating Manager Global UP Sales & Distribution Acson Global Distributor Meeting 1. 2. 3. 4. 5. 6. Page 2 Customer Survey Results Performance Review Market Quality Situation Supply Chain Management Trainings Sales and Market Focus Acson Global Distributor Meeting Customer Survey Results Page 3 Acson Global Distributor Meeting 2009 2009 Survey Result Overall Performance 2008 3.5 3.0 Each Product Group Quality rate a. Residential b. Light Commercial c. Commercial (Ducted) d. Packaged Unit e. FCU f. Mini Chiller 3.5 3.3 3.5 3.4 3.9 1.7 2.7 3.1 3.3 3.0 3.7 2.8 Others Quality Rate a. Piping/Joint/Brazing b. Coil/Fin Surface c. Paint Work d. Capillary/Distributor/TXV e. Vacuum/Contamination/Charge Level f. Controller/Handset/Wiring g. Plastic casing finishing / Gap h. Motor/Fan Balancing & noise I. Packaging/labeling QUALITY 3.1 3.2 3.3 3.4 2.9 2.9 3.3 2.8 3.8 3.2 2.9 2.9 3.0 2.5 2.7 2.5 2.8 2.6 2.9 2.9 3.4 3.5 3.2 2.4 2.5 2.9 3.3 1.6 1.9 2.6 Product range coverage Acceptability New Product Development Speed Innovative Page 4 PRODUCT Acson Global Distributor Meeting 2009 Survey Result Overall Customer Service Performance Speed of response Proactive in proposing service CUSTOMER SERVICE Overall Technical Support Performance Accessibility Knowledgeable & Skill Speed of response Effectiveness of the solution provided TECHINICAL SUPPORT Delivery Delivery Performance a. Finish Goods b. Spare Parts c. Shipping Documents Logistics Performance a. Packaging Quality b. Product Stacking in Container c. Container Space Optimization d. Accuracy of Loading DELIVERY Overall Cost and Value Rate Price competitiveness a. Residential b. Light Commercial c. Commercial (Ducted) d. Chilled Water System Advertising & Promotional Material Support COST & VALUE Page 5 2009 2008 3.0 2.9 2.1 2.7 2.9 3.0 3.2 2.8 3.1 3.0 2.7 2.5 2.5 2.6 2.8 2.8 3.3 2.6 3.2 3.0 2.8 1.9 3.6 2.3 1.9 2.9 3.6 3.4 3.3 3.6 3.5 2.6 3.0 3.1 3.0 3.5 3.2 2.5 1.8 2.2 2.6 2.6 2.0 2.5 2.4 3.0 1.2 2.2 1.8 2.4 Acson Global Distributor Meeting Performance Review CY2008/09 Page 6 Acson Global Distributor Meeting MARKET QUALITY SITUATION Page 7 Acson Global Distributor Meeting OVERALL MARKET SITUATION-MARKET DEFECT RATIO Market Defect Ratio (%) 1200 ~~Aug 09 09 Aug 000 2.00% Claim Qty 8,400 Sales Qty 698,104 Claim Qty 8,400 Sales Qty 1400 1000 698,104 1.50% 800 600 1.00% 400 0.50% 200 0.00% Jan Improve from 2.14% to 1.20% Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RA 467 448 560 608 558 642 570 603 0 0 0 0 QA 281 281 307 356 298 290 316 208 0 0 0 0 PA 58 57 75 53 31 57 50 53 0 0 0 0 FCU 148 12 40 9 25 44 30 36 0 0 0 0 RA INV 9 8 16 6 11 41 288 212 0 0 0 0 AC INV 3 0 12 2 9 8 1 1 0 0 0 0 QA INV 0 2 1 0 1 0 0 0 0 0 0 0 AC 18 5 13 6 8 6 12 7 0 0 0 0 WS 4 2 0 1 0 1 1 2 0 0 0 0 MDS ID 42 16 6 9 1 19 12 7 0 0 0 0 2.14% 1.73% 1.67% 1.48% 1.35% 1.22% 1.21% 1.20% 2009 2008 1.7% 1.3% 1.1% 1.1% 1.1% 1.1% 1.0% 1.0% 1.1% 1.1% 1.2% 1.3% Target 1.24% 1.23% 1.22% 1.21% 1.20% 1.19% 1.18% 1.16% 1.14% 1.12% 1.11% 1.10% Page 8 Month 0 Claim Qty (cases) 2.50% Acson Global Distributor Meeting WALL MOUNTED J-SERIES MARKET SITUATION 0.30% 90 80 0.20% 0.15% ~ Aug 09 70 60 Claim Qty 426 Sales Qty 158,350 Quantity (Cases) Market Defect Ratio (%) 0.25% 50 40 0.10% 30 20 0.05% 10 0.00% 0 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 PCB 1 8 1 4 5 9 13 16 Handset 0 2 1 1 0 9 7 6 Compressor 0 1 0 0 0 2 1 Electric Components 0 2 1 1 1 4 Air Moving Parts 0 0 0 1 0 Heat Exchanger 0 0 0 0 Structure 0 0 0 Installation 0 0 Refrigerant, Water 0 Piping Others Total Page 9 Jun-09 Jul-09 Aug-09 Jun-09 Jul-09 Aug-09 44 May-09 May09 27 16 24 33 6 6 7 4 10 9 7 3 0 4 9 1 2 9 3 6 4 8 1 0 0 1 1 4 6 6 0 1 4 1 0 0 2 1 1 0 2 0 0 0 1 1 2 1 3 0 0 0 0 1 0 0 0 0 0 2 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 2 0 2 0 0 1 0 3 4 7 9 10 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.1% 0.2% 0.2% 0.2% 0.2% 0.3% 0.3% Market Claim Month Acson Global Distributor Meeting INVERTER-Y MARKET SITUATION 0.30% 18 ~ Aug 09 0.20% Claim Qty 46 0.15% Sales Qty 18,823 16 14 12 10 8 0.10% 6 4 0.05% 2 0.00% 0 Apr-09 PCB Apr-09 0 May-09 Jun-09 0.24% Market Claim Jul-09 Aug-09 May-09 0 Jun-09 4 Jul-09 7 Aug-09 9 Handset 0 0 0 2 2 Structure 0 0 2 0 1 Piping 0 0 0 1 0 Safety Device 0 0 0 0 0 Compressor 0 1 1 1 2 Electric Components 0 0 2 1 0 Installation 0 0 0 0 2 Air Moving Parts 0 0 2 0 1 Heat Exchanger 0 0 1 0 0 Others 0 0 3 0 0 0.00% 0.01% 0.09% 0.15% 0.24% Overall Market Defect Ratio Quantity (cases) Market Defect Ratio (%) 0.25% Page 10 Month Acson Global Distributor Meeting Supply Chain Management 1. Rolling Forecast 2. Project Tracking Page 11 Acson Global Distributor Meeting 1. Supply Chain Management(Forecast) Customer Master Plan OYLM Master Plan OYL compile master plan for all key customers Send to respective supplier as for yearly indication 5 Months rolling forecast for long lead time preparation OYL Master Plan 2 Months rolling forecast for short lead time preparation Forecast Operation Team Sales Planning Manager Regional Sales Manager (4) Sales Planning Executive (2) SCM Committees Page 12 Customers Service (6) Acson Global Distributor Meeting Supply Chain Management Objective 1. Master Plan Yearly master plan for factory capacity and material planning 2. Improve Lead Time To improve delivery and project lead time up to 4-5 weeks. 3. Enhance Inventory To improve customers & factory inventory turnover. 4. Factory Enhancement To enhance factory capacity & shift planning. Page 13Suppliers able to plan in advance. Acson Global Distributor Meeting Supply Chain Management -Forecast Products Analysis: 1. Implement monthly forecast update template as below: Forecast ID AWM007G AWM007GR AWM010G AWM010GR AWM015G AWM015GR OD Jan Feb Mar Apr ALC009C ALC009CR ALC010C ALC010CR ALC015C ALC015CR 2. Step 1: yearly target forecast quantity/customer master plan 3. Step 2: 5 months rolling forecast 4. Step 3: 2 months confirmed forecast and 4-5 weeks PO receive (RA and LCU) with 80% commitment Page 14 Acson Global Distributor Meeting Supply Chain Management- Forecast Sales Trend Analysis: 1. 2. 3. Purchase, Sales, and Inventory (PSI) Latest info for factory material planning, and easy to monitoring customer’s forecast accuracy. Future shipment plans to avoid any shipment cancellation/ delay issues to occur. Jan Feb 2009 Monthly Closing Stock (USD) 2008 Actual Sales Value (USD) 2009 Actual Sales Value (USD) CY09 Forecast Sales Value (USD) 2008 Actual Purchase Value (USD) 2009 Actual Purchase Value (USD) 2009 Forecast Purchase Value (USD) 4. Page 15 Info received will act as private & confidential for OYLM Mar Acson Global Distributor Meeting 2. Project Tracking Workflow Project Management Sheet (From Customer) Internal Project Tracking Sheet Forecast Upload Page 16 Checked By Sales and Customer Service Material Preparation Clarification Feedback to Customer Acson Global Distributor Meeting Project Tracking Sheet Project List - Distributor ? - Country ? Value in USD Contractor Client Project Item No: Product Range Status Remark Residential Light Comm (indoor) Chance (indoor) Ranking XXX XXX XXX B AWM015G1000 Package (indoor) Description s A 1 Hydronic / MDS (Complete) PO in hand Verbally ACM028E80% confirmed or MDS320BRLOI 20 MDB100B- 3 3 MCK030Aissued ACKD30A-5 C 50% Under negotiation D 30% OYLM A/C system is decided 10% OYLM A/C system is considered as option 2 4 E2 TOTAL in USD Page 17 0 E1 Oct 100% 20 3 Expected Order Confirmation in CY09 0% Information received B 1st Quote to the project Outdoo r with ME Spec. Nov Expected Delivery Date in CY09 Dec Oct Nov X Dec X - - - - - - Acson Global Distributor Meeting Those that can provide 5 weeks lead 1. Monthlytime! Rolling Forecast 2. Project Tracking List Page 18 Acson Global Distributor Meeting Operation Updates Page 19 Acson Global Distributor Meeting Strengthen on Workplace – Storage racking system • Fully implemented racking system for parts storage. • Implemented racking labeling & stock card system by items. • Reduce mistake and speed up packing process. Page 20 Acson Global Distributor Meeting Build up stock for major components across models Stock up starts from March 2009 • Compressor • Fan motor • PCB • Handset • Propeller fan • BPHE • Water pump • Pressure switch • etc Page 21 Our stock value USD 0.43 Million Monthly average 2008 Increase 28% USD 0.55 Million March 2009 Acson Global Distributor Meeting Customized Technical Training Venue Europe Topic 1. Page 22 Multi Digital Scroll Acson Global Distributor Meeting Customized Technical Training Venue Asia Topic 1. 2. 3. Page 23 Multi Digital Scroll Ducted Split Inverter Split Y-Series 4. 5. Mini Chiller Residential Product Acson Global Distributor Meeting Customized Technical Training Venue Middle East Topic 1. 2. 3. Page 24 Product Introduction e-Distributors Software 4. Multi Digital Scroll Acson Global Distributor Meeting Commissioning Support Venue Europe Date Jan’09 Product Multi Digital Scroll Page 25 Acson Global Distributor Meeting Commissioning Support Venue Africa Date Sept’09 Product Multi Digital Scroll Page 26 Acson Global Distributor Meeting Training Plan Annual Technical Training •December 2009 •Location : OYLM, Malaysia Page 27 Venue OYLM, Malaysia Date December 2009 Training Topics 1. Introduction to New Product 2. Single Split Inverter-Y Series 3. R410A Rooftop Acson Global Distributor Meeting Reaching out to you………………… Visits to your regions and country to Understand more your needs and Requirements Assistance provided by • Product engineers • Service Engineers • Regional Sales Page 28 Acson Global Distributor Meeting 2009 Customer Visit Chart 20 18 15 13 10 7 5 4 5 4 2 1 3 2 Management Page 29 Product Marketing Sales Section YTD: 31 trips (59 persons) Training meeting Training meeting Exhibition Commissioning & Troubleshooting Training meeting Exhibition meeting 0 Service Section Acson Global Distributor Meeting Our Focus Target Segment & Product Strategy Page 30 Acson Global Distributor Meeting 2 years ago in our presentation…… Target Segment Page 31 Target Market Zone in develop countries Acson Global Distributor Meeting Daikin Grade McQuay/Acson Projection of market growth : Residential Commercial Market Size(x1,000units) Market Size(x1,000units) RA Product/Main Brand LCU VRV(MDS) 48 65 PA up keep down Product/Main Brand High Spec. Inv. High Middle High Middle Low Low 1,462 798 DAIKIN MELCO TOSHIBA Hitachi Standard Inv. Fujitsu LG Samsung Non inv. 1,525 720 Carrier McQuay Acson Inv. LCU Japanese VRV DAIKIN MELCO TOSHIBA Hitachi Fujitsu 44 277 7 87 Non inv. LCU Other VRV Acson Carrier McQay LG Gree Non inv. Gree Haier Midea Page 32 (Source: Global Operation Divisions (made this data to study own production capacity) MarketDistributor Zone in developing countries AcsonTarget Global Meeting Projection of market growth : Daikin Grade McQuay/Acson Residential Commercial Market Size(x1,000units) Market Size(x1,000units) RA Main Brand LCU VRV(MDS) PA up keep down Product/Main Brand 3 High Centralized Middle High Middle Low 40 DAIKIN MELCO 415 Panasonic Fujitsu LG Samsung McQuay Acson 37 22 DAIKIN MELCO Carrier TRANE YORK Basic feature 87 51 Fujitsu McQay LG Acson Al-Zamil Low Page 33 (Source: Global Operation Divisions (made this data to study own production capacity) Acson Global Distributor Meeting Last Year our product direction…….. Page 34 Acson Global Distributor Meeting With ever increasing high cost of energy Increasing standards of Energy Efficiency Regulation. EUP, MEPS, China Regulation etc. Leading to environmental consideration of promoting inverter technology of energy saving products Page 35 Acson Global Distributor Meeting OYLM is moving towards developing cost competitive and energy efficient products Changing the non-inverter Low cost to Inverter Low cost products How? Daikin Industries R&D engineers dispatched to OYLM OYLM dispatched Malaysian engineers to Japan for training OYLM join Co-development with Daikin Page 36 Acson What Global Distributor Meeting is happening? United State Europe •SEER 13 • Energy labeling China • Restriction of using HCFC • Energy Rating Hong Kong • Restriction of using HCFC • Energy Labeling Why is this happening? • Montreal Protocol • High Crude Oil Price Malaysia Singapore • Energy Labeling • Energy Labeling • Tax exemption for high efficient product Page 37 Austraia • Minimum Energy Performance Scheme Acson Global Distributor Meeting Where is OYLM Going? • To provide full range of Green Products using Zero Ozone Depletion Refrigerant (0-ODP) • To provide better energy efficiency product (Utilizing the Inverter technology from Daikin) Page 38 Acson Global Distributor Meeting What do we have? R22 RA Range LC Range PA Range Page 39 0-DOP Refrigerant R410A R410A R410A & R407C Inverter Series - NA - Acson Global Distributor Meeting Sales and Market Focus What we expect you to do…… Page 40 OYL Strong point 1)Wide Sales Network 2) Service Acson Global Meeting e.g.Market StructureDistributor of Malaysia UP Total UP Market size : 283MUS$ (Market Size : MUS$) Application Sales Channel Residen tial 60% 63 22% 25 9% Commer cial 40% Whole Sale (88) 31% Retail (77) 27% 40 14% 37 13% Electrical (28) 10% 22 8% 6 2% Private (71) 25% 37 13% 34 12% Goverme nt (19) 7% 8 3% 11 4% Project Page 41 Acson Global Distributor Meeting Distributor Focus Building Network A. 1. 2. Loyalty Business Plan Building Sales Distribution Network Professional sales – project sales , consultants Distribution network – dealer sales, wholesalers, retail, installers Page 42 Acson Global Distributor Meeting Distributor Focus Building Network Loyalty Business Plan B. Acson as key supplier and potential sole supplier 1. We build the business together with full commitment from both parties If we commit , you must commit!!! Yearly Sales Target 2. Page 43 Acson Global Distributor Meeting Distributor Focus Building Network Loyalty Business Plan C. Building a business plan and model together 1. 2. Require financial investment and local stocking Investment of stronger sales force Page 44 Acson Global Distributor Meeting Sales and Market Focus What we will do…… Page 45 Acson Global Distributor Meeting OYL Sales and Market Focus Sales Team Product Marketing Sales Support A. Intensive Sales Approach 1. Increase sales force to concentrate on developing distributors. 2. Knowing in/out of your business 3. Tracking all sales activities and assistance to expand Page 46 Acson Global Distributor Meeting OYL Sales and Market Focus Sales Team Product Marketing Sales Support B. Product Marketing Team 1. Study price positioning of each country against competitors 2. Regional/ Country requirements 3. Product Specification (benchmarking) 4. Marketing requirements(exhibitions, literatures etc) Page 47 Acson Global Distributor Meeting OYL Sales and Market Focus Sales Team Product Marketing Sales Support C. Sales Support Team 1. Application and product selection assistance 2. Trainings 3. Commissioning 4. Troubleshooting Page 48 Acson Global Distributor Meeting What we will deliver for 2010!!!!!!!!! Page 49 Acson Global Distributor Meeting < Page 50 New Residential Product range > Acson Global Distributor Meeting RA Product ① High Performance & Energy Efficiency ② Improved Product Quality & Reliability New Y-series Inverter Daikin Inverter Controls & Protections Protocol 2.5, 3.5, 5.0, 6.0 kW New J-series Indoor Chassis A5WMY-JR • Superior EER/COP (exceeds Euro Energy Label A/A) • Lower Sound Level (Daikin Design Blower) • Japanese quality and build level (Daikin-McQuay Joint Development Model) New D-series Outdoor Chassis A5LCY-DR • High Performance (Panasonic DC1P Inverter Compressor) • High Energy Efficiency (Electronic Expansion Valve) Page 51 • Lower Sound Level (Daikin Design Propeller Fan) Acson Global Distributor Meeting RA Product (Size 2.5 & 3.5kW) New K-series Inverter Daikin Inverter Controls & Protections Protocol 2.5, 3.5 kW New K-series Indoor Chassis A5WMY-KR • High EER/COP (exceeds Euro Energy Label A/A) • Daikin Indoor Inverter Model Cost competitive • Lower Sound Level New E-series Outdoor Chassis A5LCY-ER • High Performance (Daikin Inverter Compressor) Page 52 • Daikin Outdoor Inverter Model) Acson Global Distributor Meeting 2010 FOB Price Positioning Capacity 2.5 KW Available 3.5kW Coming Soon 170 5WMY-JR 160 162 Price Index 5WMY-JR 157 150 140 130 5WMY-KR(G2) 132 5MWM-JR/GR 106 5WMY-KR(G2) 132 5MWM-JR/GR 101 120 110 100 Page 53 MWM-JR MWM-JR MWM-GR 90 96 MWM-GR 97 Acson Global Distributor Meeting RA Product (Multisplit) New Y-series Inverter-Multi Daikin Inverter Controls & Protections Protocol System 1-to-2, System 1-to-3, System 1-o-4 New B-series Outdoor Chassis A5MSY-BR • High EER/COP (exceeds Euro Energy Label A/A) • Daikin High Efficiency Inverter Compressor • Daikin Inverter Control Board • Daikin Propeller Fan & Fan Motor Complete Y- series Inverter Indoors Page 54 • J-SERIES WALL-MOUNTED A5WMY10/15/20JR • C-SERIES CEILING-CONCEALED A5CCY10/15/20CR • C-SERIES CEILING-CASSETTE A5CKY10/15/20CR • E-SERIES CEILING-CONVERTIBLE A5CEY15/20ER Acson Global Distributor Meeting < Page 55 New Light Commercial Product Range > Acson Global Distributor Meeting ① High Performance & Energy Efficiency ② Improved Product Quality & Reliability New Y-Series Inverter Daikin Inverter Controls & Protections Protocol 2.5, 3.5, 5.0, 6.0, 7.1, 10.0, 12.5 & 14.0 kW Complete Range of Light Commercial Indoor Model • Using existing McQuay Indoor Design • Utilizing Daikin Control Algorithm & Communication Protocol • Superior EER/COP New E-series Outdoor Chassis A5LCY-ER • High Performance (Daikin Inverter Compressor & Control) Page 56 • Daikin Outdoor Inverter Model Acson Global Distributor Meeting New Inverter Y Series – LC Range Model Name 10 15 20 25 30 40 50 60 Capacity Index 2.5 3.5 5.0 6.0 7.1 10.0 12.5 14.0 A5CKY10/15/20CR Ceiling Cassette C Series A5CKY20/25/28/40/50ER Ceiling Cassette E Series A5CCY10/15/20/25/28/38/50/60CR Ceiling Concealed C Series A5CMY15/20/25/28/40/50ER Page 57 Ceiling Convertible / Exposed A5CMY62CR Acson Global Distributor Meeting < Page 58 Variable Refrigerant Flow Product Range (Multi Digital Scroll) > Acson Global Distributor Meeting 2010 Product Lineup SIZE MASS PRO MONTH 2008 Outdoor (R410A) 2009 Jan Wall Mounted Indoor Ceiling Cassette Ceiling Concealed Jan Ceiling Convertible Wired Central Controller Controller Page 59 Smart Commander Jan 2010 Acson Global Distributor Meeting < Page 60 New Package Product Range > Acson Global Distributor Meeting PA Product (Roof Top) ① High Performance & Energy Efficiency ② Improved Product Quality & Reliability New R410A High Efficiency Rooftop 30/35/45/55/65/75 kW Highlight: • R410A Product • Superior EER & Cooling Capacity (exceed Australia MEPS) • Lower Sound Level (Daikin outdoor Propeller) • Operate up to 52⁰C and down to -15⁰C • 3rd party thermostat connection ready at std PCB • Dry contact for Basic BMS as standard • Economizer & Free Cooling * Page 61 • Dirty Filter indication Note: * launching economizer is later than launching of basic unit. Acson Global Distributor Meeting 2010 Rooftop Product Lineup Product R22 & R407C Rooftop – A R410A rooftop (25,35,45,55kW) R410A rooftop (65,75kW) Page 62 2008 MASS PRO MONTH 2009 2010 Jan Dec Apr Acson Global Distributor Meeting OYLM Products are Ready! R22 0-DOP Refrigerant Inverter Series RA Range R410A LC Range R410A R410A & R407C - NA - PA Range Page 63 Acson Global Distributor Meeting Inverter and Energy Efficient Series RA Range LC Range Y-series Inverter J-series ON/OFF Page 64 New Y,K and Multi Series New Y OYL-Daikin Inverter Y-series Multisplit Inverter PA Range New R410 with BMS and Economisers VRF MDS R410A R410A RT R22/R410A MDS System OYL-Daikin LCU Inverter Acson Global Distributor Meeting Page 65 Acson Global Distributor Meeting Our 2010 Target Double Acson Export Sales! Page 66 Acson Global Distributor Meeting Thank You - END- Page 67