## Nine Key Points 

Clearly set quantitative targets for the next three years in order to align the direction of all of our employees. Resolutely carry out reforms through quantitative management reforms because this is an era of uncertainty. 1 

1. For the period through fiscal 2004, set ratio management targets for each virtual internal company and for each year as medium-term targets and strive to achieve those set targets. 

2. At the same time, for the period after fiscal 2004, set targets for fiscal 2006 with appropriate emphasis on management reforms for the transition period, including the posture that we aim to achieve, and structural reform, so that we may define the goals that will take us in the direction we are headed. 

3. Refine tools that enable us to achieve our quantitative targets in an era of drastic changes. 

2 

Focus on realizing dynamic development. 

1. Realize ordinary profit twice that of fiscal 2001 through expanding sales by fiscal 2004. 

2. Achieve the global number one or two position in the air conditioning business and fluorochemicals business. 

Thoroughly implement Ratio Management, which pursues both an increase in profitability and an expansion of business scale by: 3 

1. Achieving Ratio Management quantitative targets, 

2. Emphasizing free cash flow and Daikin value added, and 

3. Expanding business scale and realizing a paradigm shift of our business structure. 

Pursue Daikin's best practices by promoting a fusion of time-tested Daikin traditions and evolving fast and flat management responding to the times with a forward-looking competitive edge. 4 

