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Acson Global Distributor MeetingAcson Distributor Meeting2009

CCC

REATIVEHALLENGEHANGE Sum Chee ChoongOperating ManagerGlobal UP Sales & Distribution

SALES & DEVELOPMENT

Acson Global Distributor Meeting

1. Customer Survey Results2. Performance Review3. Market Quality Situation4. Supply Chain Management5. Trainings6. Sales and Market Focus


Customer Survey Results

Acson Global Distributor Meeting2009 Survey Result 2009 2008

Overall Performance 3.5 3.0

Each Product Group Quality rate a. Residential 3.5 2.7b. Light Commercial 3.3 3.1c. Commercial (Ducted) 3.5 3.3d. Packaged Unit 3.4 3.0e. FCU 3.9 3.7f. Mini Chiller 1.7 2.8 Others Quality Rate a. Piping/Joint/Brazing 3.1 2.9b. Coil/Fin Surface 3.2 2.9c. Paint Work 3.3 3.0d. Capillary/Distributor/TXV 3.4 2.5e. Vacuum/Contamination/Charge Level 2.9 2.7f. Controller/Handset/Wiring 2.9 2.5g. Plastic casing finishing / Gap 3.3 2.8h. Motor/Fan Balancing & noise 2.8 2.6I. Packaging/labeling 3.8 2.9QUALITY 3.2 2.9

Product range coverage 3.4 3.5Acceptability 3.2 3.3New Product Development Speed 2.4 1.6Innovative 2.5 1.9PRODUCT 2.9 2.6

Acson Global Distributor Meeting2009 Survey Result 2009 2008

Overall Customer Service Performance 3.0 2.7Speed of response 2.9 2.5Proactive in proposing service 2.1 2.5CUSTOMER SERVICE 2.7 2.6Overall Technical Support Performance 2.9 2.8Accessibility 3.0 2.8Knowledgeable & Skill 3.2 3.3Speed of response 2.8 2.6Effectiveness of the solution provided 3.1 3.2TECHINICAL SUPPORT 3.0 3.0Delivery Delivery Performance a. Finish Goods 2.8 2.3b. Spare Parts 1.9 1.9c. Shipping Documents 3.6 2.9 Logistics Performance a. Packaging Quality 3.6 3.0b. Product Stacking in Container 3.4 3.1c. Container Space Optimization 3.3 3.0d. Accuracy of Loading 3.6 3.5DELIVERY 3.5 3.2Overall Cost and Value Rate 2.6 2.5Price competitiveness a. Residential 1.8 2.0b. Light Commercial 2.2 2.5c. Commercial (Ducted) 2.6 2.4d. Chilled Water System 2.6 3.0 Advertising & Promotional Material Support 1.2 1.8COST & VALUE 2.2 2.4


Performance Review CY2008/09


MARKET QUALITY SITUATION


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MDS ID 42 16 6 9 1 19 12 7 0 0 0 0

WS 4 2 0 1 0 1 1 2 0 0 0 0

AC 18 5 13 6 8 6 12 7 0 0 0 0

QA INV 0 2 1 0 1 0 0 0 0 0 0 0

AC INV 3 0 12 2 9 8 1 1 0 0 0 0

RA INV 9 8 16 6 11 41 288 212 0 0 0 0

FCU 148 12 40 9 25 44 30 36 0 0 0 0

PA 58 57 75 53 31 57 50 53 0 0 0 0

QA 281 281 307 356 298 290 316 208 0 0 0 0

RA 467 448 560 608 558 642 570 603 0 0 0 0

2009 0.0213741725290007

0.017317427231445

0.0167280007406381

0.0147876595648879

0.0135003995100818

0.0121899359270435

0.0120658268767082

0.0120325911325533

NaN NaN NaN NaN

2008 0.0174283679143402

0.0127750063096395

0.0113712203704827

0.0112732628196546

0.0106332105942711

0.0106236648060092

0.0102896127134392

0.01035856089704

0.0107247231928016

0.011332900596847

0.0123390246049635

0.0125329851427016

Target 0.0124 0.0123 0.0122 0.0121 0.012 0.0119000000000001

0.0118000000000001

0.0116 0.0114000000000001

0.0112000000000001

0.0111000000000001

0.011

0.25%

0.75%

1.25%

1.75%

2.25%

100

300

500

700

900

1100

1300

OVERALL MARKET SITUATION-MARKET DEFECT RATIO

Month

Marke

t Defe

ct Ra

tio (%

)

Claim

Qty (

cases)

~ Aug 09

Claim Qty 8,400

Sales Qty 698,104

000 ~ Aug 09

Claim Qty 8,400

Sales Qty 698,104

Improve from 2.14% to 1.20%


Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09

Others

0 2 0 2 0 0 1 0 3 4 7 9 10

Piping

0 0 0 0 0 2 0 0 0 0 0 0 0

Refrigerant, Water

0 0 0 0 0 0 0 0 0 1 0 0 0

Installation

0 0 0 0 0 0 1 0 0 0 0 0 2

Structure

0 0 0 0 2 0 0 0 1 1 2 1 3

Heat Exchanger

0 0 0 0 0 1 4 1 0 0 2 1 1

Air Moving Parts

0 0 0 1 0 1 0 0 1 1 4 6 6

Electric Components

0 2 1 1 1 4 1 2 9 3 6 4 8

Compressor

0 1 0 0 0 2 1 9 7 3 0 4 9

Handset

0 2 1 1 0 9 7 6 6 6 7 4 10

PCB

1 8 1 4 5 9 13 16 44 27 16 24 33

Total

6.9878760350792E-05

0.00033180817994481

6

0.00038419894519926

2

0.00040100380306832

6

0.00040122631221580

2

0.00063880096106174

5

0.00084036586876139

0.00107559157536645

0.00154925867972177

0.00186674760965246

0.00204842765518607

0.00231772417055208

0.00269024313230186

0.03%

0.08%

0.13%

0.18%

0.23%

0.27%

5

15

25

35

45

55

65

75

85

WALL MOUNTED J-SERIES MARKET SITUATION

MonthMarke

t D

efe

ct R

ati

o (

%)

Qu

an

tity (

Case

s)

~ Aug 09Claim Qty 426Sales Qty 158,350

0.3% Market Claim


Apr-09 May-09 Jun-09 Jul-09 Aug-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09

Others 0 0 3 0 0

Heat Exchanger 0 0 1 0 0

Air Moving Parts 0 0 2 0 1

Installation 0 0 0 0 2

Electric Components 0 0 2 1 0

Compressor 0 1 1 1 2

Safety Device 0 0 0 0 0

Piping 0 0 0 1 0

Structure 0 0 2 0 1

Handset 0 0 0 2 2

PCB 0 0 4 7 9

Overall Market Defect Ratio 0 8.44309354947653E-05 0.000911109845680771 0.00152066474773258 0.00244381873240185

0.03%

0.08%

0.13%

0.18%

0.23%

0.27%

1

3

5

7

9

11

13

15

17

INVERTER-Y MARKET SITUATION

Month

Marke

t Defe

ct Rati

o (%)

Quan

tity (ca

ses)

~ Aug 09Claim Qty 46Sales Qty 18,823

0.24% Market Claim


Supply Chain Management

1. Rolling Forecast2. Project Tracking


Customer Master Plan

OYL compile master plan for all

key customersOYL Master Plan

OYLM Master Plan

Send to respective supplier as for yearly indication

5 Months rolling

forecast for long lead

time preparation

2 Months rolling

forecast for short lead

time preparation

Sales Planning Manager

Forecast Operation Team

Regional Sales Manager (4) Sales Planning Executive (2) Customers Service (6)

SCM Committees

1. Supply Chain Management(Forecast)

Acson Global Distributor MeetingSupply 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. Suppliers able to plan in advance.


Products Analysis:1. Implement monthly forecast update template as below:

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

ID ODForecast

Jan Feb Mar Apr

AWM007G ALC009C

AWM007GR ALC009CR

AWM010G ALC010C

AWM010GR ALC010CR

AWM015G ALC015C

AWM015GR ALC015CR

Supply Chain Management -Forecast


Sales Trend Analysis:1. Purchase, Sales, and Inventory (PSI)2. Latest info for factory material planning, and easy to monitoring

customer’s forecast accuracy. 3. Future shipment plans to avoid any shipment cancellation/ delay issues

to occur.

4. Info received will act as private & confidential for OYLM

Jan Feb Mar2009 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)

Supply Chain Management- Forecast


2. Project Tracking WorkflowProject Management

Sheet(From Customer)

Checked By Sales and Customer

Service

Feedback to Customer

Internal Project Tracking Sheet

Forecast Upload Material Preparation

Clarification


Project List - Distributor ? - Country ?

Item No:

Project

Contractor

Client

Value in USD

Product Range

Status Remark

Expected Order

Confirmationin CY09

Expected Delivery Date

in CY09

Residential (indoor)

Light Comm (indoor)

Package(indoor)

Hydronic / MDS

(Complete)Oct Nov Dec Oct Nov Dec

1 XXX XXX XXX AWM015G- 1000

ACM028E- 20MCK030A- 20

MDB100B- 3MDS320BR-3ACKD30A-5

B

1st Quote to the projectOutdoor with ME Spec.

X X

2

3

4

TOTAL in USD 0 - - - - - -

Project Tracking Sheet

Ranking Chances Description

A 100% PO in hand

B 80%Verbally

confirmed or LOI issued

C 50% Under negotiation

D 30% OYLM A/C system is decided

E2 10%OYLM A/C system is considered as

option

E1 0% Information received


Those that can provide1. Monthly Rolling Forecast

2. Project Tracking List

5 weeks lead time!


OperationUpdates


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.


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

Our stock value

USD 0.43 MillionMonthly average 2008

USD 0.55 MillionMarch 2009

Increase 28%


Customized Technical Training

Venue Europe

Topic 1. Multi Digital Scroll



Venue Asia

Topic 1. Multi Digital Scroll2. Ducted Split3. Inverter Split Y-Series

4. Mini Chiller5. Residential Product



Venue Middle East

Topic 1. Product Introduction2. e-Distributors3. Software

4. Multi Digital Scroll


Commissioning Support

Venue Europe

Date Jan’09

Product Multi Digital Scroll


Commissioning Support

Venue Africa

Date Sept’09

Product Multi Digital Scroll


Training PlanAnnual Technical Training

• December 2009• Location : OYLM, Malaysia

Venue OYLM, Malaysia

Date December 2009

Training Topics 1. Introduction to New Product2. Single Split Inverter-Y Series3. R410A Rooftop


Reaching out to you…………………

Visits to your regions and country toUnderstand more your needs and

Requirements

Assistance provided by• Product engineers• Service Engineers

• Regional Sales

What we promisedto do in 2008


2009 Customer Visit Chart

YTD: 31 trips (59 persons)

me

etin

g

Exh

ibiti

on

me

etin

g

Tra

inin

g

Co

mm

issi

on

ing

&

Tro

ub

lesh

oo

ting

Exh

ibiti

on

me

etin

g

Tra

inin

g

me

etin

g

Tra

inin

g

Man-agement

Product Marketing Sales Section Service Section

0

5

10

15

20

4

1

13

4

23

18

2

5

7


Our Focus

Target Segment&

Product Strategy


2 years ago in our presentation……Target Segment

Acson Global Distributor MeetingTarget Market Zone in develop countriesTarget Market Zone in develop countries

Grade

Residential CommercialMarket Size(x1,000units) Market Size(x1,000units)

Product/Main Brand Product/Main Brand

High

MiddleHigh

MiddleLow

Low

1,525

798

1,462

720

RA

High Spec. Inv.DAIKINMELCO

TOSHIBAHitachi

Standard Inv.Fujitsu

LGSamsung

Non inv.Carrier

McQuayAcson

Non inv.GreeHaierMidea

LCU VRV(MDS) PA

277

44

48 65

7 87

Inv. LCUJapanese VRV

DAIKINMELCO

TOSHIBAHitachiFujitsu

Non inv. LCUOther VRV

AcsonCarrierMcQay

LGGree

Projection of market growth :

upkeepdownDaikin McQuay/Acson

(Source: Global Operation Divisions (made this data to study own production capacity)

Acson Global Distributor MeetingTarget Market Zone in developing countriesTarget Market Zone in developing countries

Grade

Residential CommercialMarket Size(x1,000units) Market Size(x1,000units)

Main Brand Product/Main Brand

High

MiddleHigh

MiddleLow

Low

415

40

RA

DAIKINMELCO

PanasonicFujitsu

LGSamsungMcQuay

Acson

LCU VRV(MDS) PA

87

37

3

51

CentralizedDAIKINMELCOCarrierTRANEYORK

Basic featureFujitsuMcQay

LGAcson

Al-Zamil

Daikin McQuay/Acson

(Source: Global Operation Divisions (made this data to study own production capacity)

22

Projection of market growth : upkeepdown


Last Year our product direction……..


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


OYLM is moving towards developing cost competitive and energy efficient products

Changing the non-inverter Low cost to Inverter Low cost productsHow?

Daikin Industries R&D engineers dispatched to OYLM

OYLM dispatched Malaysian engineers to Japan for training

OYLM join Co-development with Daikin

Acson Global Distributor MeetingWhat is happening?United State• SEER 13

Europe• Energy labeling

• Restriction of using HCFC

China• Energy Rating

Hong Kong• Restriction of

using HCFC• Energy Labeling

Singapore• Energy Labeling

Austraia• Minimum Energy

Performance Scheme

Malaysia• Energy Labeling

• Tax exemption for high efficient product

Why is this happening?• Montreal Protocol• High Crude Oil Price

Why is this happening?• Montreal Protocol• High Crude Oil Price


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)


R22

RA Range LC Range PA Range

Inverter Series

- NA -

What do we have?0-DOP

Refrigerant

R410A

R410A

R410A & R407C


Sales and Market Focus

What we expect you to do……

Acson Global Distributor Meetinge.g.Market Structure of Malaysia UPe.g.Market Structure of Malaysia UP

Sales ChannelApplication

Residential 60% Commer

cial 40%

Whole Sale(88)31%

22%9%

Retail (77)27% 14% 13%

Electrical (28)10% 8% 2%

Project

Private (71)25% 13% 12%

Goverment

(19)7% 3% 4%

(Market Size : MUS$)Total UP Market size : 283MUS$

63 25

40 37

37 34

22 6

118

OYL Strong point1)Wide Sales Network2) Service


A. Building Sales Distribution Network

1. Professional sales – project sales , consultants2. Distribution network – dealer sales, wholesalers, retail,

installers

Distributor FocusBuilding 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

2. If we commit , you must commit!!! Yearly Sales Target


Plan


C. Building a business plan and model together

1. Require financial investment and local stocking2. Investment of stronger sales force


Plan


Sales and Market Focus

What we will do……


A. Intensive Sales Approach1. Increase sales force to concentrate on developing

distributors. 2. Knowing in/out of your business3. Tracking all sales activities and assistance to expand

OYL Sales and Market Focus

Sales Team

Product

Marketing

Sales Suppor

t


B. Product Marketing Team 1. Study price positioning of each country against competitors2. Regional/ Country requirements3. Product Specification (benchmarking)4. Marketing requirements(exhibitions, literatures etc)

OYL Sales and Market Focus

Sales Team

Product

Marketing

Sales Suppor

t

Acson Global Distributor MeetingOYL Sales and Market

FocusSales Team

Product

Marketing

Sales Suppor

t

C. Sales Support Team1. Application and product selection assistance2. Trainings3. Commissioning4. Troubleshooting


What we will deliver for 2010!!!!!!!!!


New Residential Product range< >

Acson Global Distributor MeetingRA Product

① High Performance & Energy Efficiency

② Improved Product Quality & Reliability

New Y-series Inverter Daikin Inverter Controls & Protections Protocol

New D-series Outdoor Chassis A5LCY-DR• High Performance (Panasonic DC1P Inverter Compressor)

• High Energy Efficiency (Electronic Expansion Valve)

• Lower Sound Level (Daikin Design Propeller Fan)

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)

2.5, 3.5, 5.0, 6.0 kW


RA Product (Size 2.5 & 3.5kW)

New K-series Indoor Chassis A5WMY-KR

• High EER/COP (exceeds Euro Energy Label A/A)

• Daikin Indoor Inverter Model

• Lower Sound Level

2.5, 3.5 kW

New E-series Outdoor Chassis A5LCY-ER

• High Performance (Daikin Inverter Compressor)

• Daikin Outdoor Inverter Model)

New K-series Inverter Daikin Inverter Controls & Protections Protocol

Cost competitiveCost competitive


2010 FOB Price Positioning2.5 KW 3.5kW

120

130

140

100

110

90

CapacityPr

ice

Inde

x

MWM-JR MWM-JR

150

160

170

MWM-GR MWM-GR96

5MWM-JR/GR 106

5WMY-KR(G2) 132

5WMY-JR 162

97

5MWM-JR/GR 101

5WMY-KR(G2) 132

5WMY-JR 157

Available

Coming Soon


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

RA Product (Multisplit)

Complete Y- series Inverter Indoors • 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


New Light Commercial Product Range< >


New Y-Series InverterDaikin 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)

• Daikin Outdoor Inverter Model


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

A5CKY10/15/20CRA5CKY10/15/20CR

A5CKY20/25/28/40/50ERA5CKY20/25/28/40/50ER

A5CCY10/15/20/25/28/38/50/60CRA5CCY10/15/20/25/28/38/50/60CR

A5CMY15/20/25/28/40/50ERA5CMY15/20/25/28/40/50ER

A5CMY62CRA5CMY62CR

Ceiling Cassette C Series

Ceiling Cassette E Series

Ceiling Concealed C Series

Ceiling Convertible / Exposed

New Inverter Y Series – LC Range


Variable Refrigerant Flow Product Range

(Multi Digital Scroll)< >


2010 Product LineupSIZE 2008 2009 2010

Outdoor(R410A)

Indoor

Controller

MASS PRO MONTH

Jan

Ceiling Cassette

Ceiling Concealed

Ceiling Convertible

Wall Mounted

Jan

Wired Central Controller

Smart Commander

Jan


New Package Product Range< >

Acson Global Distributor MeetingPA Product (Roof Top)



New R410A High Efficiency Rooftop

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 *

• Dirty Filter indication

30/35/45/55/65/75 kW

Note: * launching economizer is later than launching of basic unit.


2010 Rooftop Product Lineup

Product 2008 2009 2010

R22 & R407CRooftop – A

R410A rooftop(25,35,45,55kW)

R410A rooftop(65,75kW)

MASS PRO MONTH

Jan

Dec

Apr


R220-DOP

RefrigerantInverter Series

RA Range R410A LC Range R410A

PA Range R410A & R407C

- NA -

OYLM Products are Ready!

New Energy Efficient,Quality Designed and

Cost Competitive Products


Y-series InverterJ-series ON/OFF

OYL-Daikin InverterY-series Multisplit Inverter

OYL-Daikin LCU InverterR22/R410A MDS SystemR410A RT

Inverter and Energy Efficient Series

RA Range New Y,K and Multi Series

LC Range New Y

PA RangeNew R410 with BMS and

Economisers

VRF MDS R410A

FINALLYFULL NEW RANGE


Going Forward Development


Our 2010 TargetDouble Acson Export Sales!


Thank You

- END-

page 1 acson global distributor meeting. page 2 acson global distributor meeting 1.customer survey...

Documents

project tracking slide

market claim slide

market focus slide

sales qty698

monthly rolling forecast

sales planning executive

project lead time

actual purchase value