Daikin Industries has recently set aside USD 100 million for use in investments targeting start up companies worldwide over a five-year period until 2024. In addition, Daikin will
establish the Technology and Innovation Center CVC Office to promote collaboration
with start-up companies as a means to accelerate open innovation integrating technologies and knowledge from both inside and outside the company.

Leveraging the business foundation of its global operations, Daikin is working in collaboration with local start up companies in places that include Silicon Valley in the United States and Shenzhen in China. In Japan, the company promotes partnerships with start up
companies, including start up companies associated with the University of Tokyo based on an industry-academia co-creation agreement concluded with the university.

This allocation will enable each division and department in the company to make decisions faster and invest with greater flexibility in start up companies. In cooperating with global start up companies that practice fast-paced management and have advanced technologies, innovative ideas, and a spirit to challenge, Daikin aims to quickly verify hypotheses and create new products, services, and business models.

The role of the new Technology and Innovation Center CVC Office involves activities relating to corporate venture capital, including searching for start up companies that are candidates for investment, executing and monitoring investments, and acting as a bridge between
the start up companies and internal company divisions and departments.