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1 Location Changshu, China Site area 492,000 m 2 Established April 2001 Employees 750 Main products Fluororesins, fluoroelastomers (TRCC:Chemical Technology & Research Center (China)) Established Chemical Technology & Research Center (China)(TRCC) An R&D center carrying out product development of the most commonly used fluorine products in the Chinese market, such as PTFE, melt, fluoroelastomers, and paint products, the development of processes to manufacture these products, and the training of the human resources to conduct this development. ISO 14001 certified July 2006 (TRCC: 2015) ISO 9001 certified April 2005 (TRCC: September 2016) OHSAS certified March 2009 Super Green Heart Factory certified March 2014 (Super Green Heart Factory certified) Environment: Environmentally Conscious Products Manufacturing ZEFFLE Infrared Reflective coating Daikin Fluorochemicals (China) Co., Ltd. (DCC) manufactures ZEFFLE Infrared Reflective coating, a fluororesin-based paint that reflects the sunʼs heat off building roofs. Environment: Major Efforts to Reduce Environmental Impact Incinerating liquid waste in-house to reduce amount of outsourced waste By incinerating HB and heptane in-house, we have reduced the amount that we need to outsource for treatment. Daikin Fluorochemicals (China) Co., Ltd. Site Report 2016

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Daikin Fluorochemicals (China) Co., Ltd. Site Report 2016

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Location Changshu, China

Site area 492,000 m2

Established April 2001

Employees 750

Main products Fluororesins, fluoroelastomers

(TRCC:Chemical Technology & Research Center (China)) Established Chemical Technology & Research Center (China)(TRCC)

An R&D center carrying out product development of the most commonly used fluorine products in the Chinese market, such as PTFE, melt, fluoroelastomers, and paint products, the development of processes to manufacture these products, and the training of the human resources to conduct this development.

ISO 14001 certified July 2006 (TRCC: 2015)

ISO 9001 certified April 2005 (TRCC: September 2016)

OHSAS certified March 2009

Super Green Heart Factory certified

March 2014 (Super Green Heart Factory certified)

Environment: Environmentally Conscious Products

■ Manufacturing ZEFFLE Infrared Reflective coating

Daikin Fluorochemicals (China) Co., Ltd. (DCC) manufactures ZEFFLE Infrared Reflective coating, a fluororesin-based paint that reflects the sunʼs heat off building roofs.

Environment: Major Efforts to Reduce Environmental Impact

■ Incinerating liquid waste in-house to reduce amount of outsourced waste By incinerating HB and heptane in-house, we have reduced the amount that we need

to outsource for treatment.

Daikin Fluorochemicals (China) Co., Ltd. Site Report2016

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Daikin Fluorochemicals (China) Co., Ltd. Site Report 2016

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■ Reusing activated charcoal By reusing activated charcoal generated in wastewater processing, we reduce the

amount that we need to dispose of as waste.

■ Reusing plastic palettes We have our suppliers collect and reuse all the plastic palettes used for supply delivery.

■ Reducing environmental risk We installed online fluorine ion monitoring equipment in order to carry out round-the-

clock monitoring of fluorine ions in wastewater. This allows us to immediately detect problems.

■ Solar power generation We installed solar panels on the administration building.

■ Switching to LED lighting In 2012, we began a five-year plan to convert lighting to LED at all bases. In fiscal

2016, we converted 631 fluorescent lights to LEDs at production sites.

Environment: Project to Protect Biodiversity

■ Building a pond to support biodiversity

We built a pond on our premises, where we raise goldfish, aquatic plants, and other life forms in an effort to protect biodiversity.

Environment: Examples of Environmental Communications

■Local environment contest On World Environment Day (June 5), the Changshu

Plant and three branches held a local environment contest.

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■ Environmental event for the community

During our annual Cherry Blossom Festival, we performed an environment-themed play with local children.

Environment: Emergency Response

We revised environmental response measures and environmental risk assessment reports.

Environment: Environmental Performance Data

■ Greenhouse gas emissions ■ Energy-induced CO2

■Waste ■Water used

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■ VOC emissions

Human Resources: Training for Employees

■ New employeesʼ camp, managersʼ camp, executivesʼ workshop In October, we held a training camp for new employees. In August and December 2016, and February 2017, we sought to strengthen company

operations through training camps for managers. In March, May, and August 206, we held workshops where division heads, company officers, and other managers could interact and exchange opinions.

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Human Resources: Promoting Diversity

■ Employing people with disabilities In September 2016, we hired two people with disabilities.

Human Resources: Occupational Safety and Health

■ Occupational safety activities The Occupational Safety and Health Committee convenes once a month. Daikin

representatives periodically take part in training sessions outside the company.

Quality and Customer Satisfaction: Quality Improvement

By installing automation equipment, we have reduced the burden on workers, raised productivity, and allowed greater quality consistency.

Social Contribution: Environmental Protection

■ Cleanup activities Every two months, our employees pick up litter along

the Yangtze River and in other parts of the city. In fiscal 2016, more than 100 employees took part in these cleanups.

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■ Leave no food on your plate

In the employee cafeteria, we held an initiative encouraging employees to eat everything on their plate and thus waste no food.

Social Contribution: Support for Educational Activities

■ Provision of scholarships At a ceremony at the TRCC on November 28, 2016,

we presented scholarships, each worth 100,000 yuan (approx. US$12,846), to students of Haiyu Junior High School and Haiyu Elementary School. The scholarships are dispensed over a five-year period to outstanding local students through the China Education Development Foundation.

■ Safety Education for Chemical Companies in the Industrial Park

We held classes and hands-on training regarding safety for employees of seven companies in the industrial park.

Social Contribution: Other Community Service Activities

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■ Cherry blossom festival on company premises

On April 2, 2016, we held our third annual Daikin Cherry Blossom Festival. The 5,000 attendees included local citizens, employeesʼ families, and local government members.

■ Donation to childrenʼs home On June 2, 2016, we donated air purifiers worth

25,000 yuan (approx. US$3,211) and fruit to a childrenʼs home in Changshu.

■ Donation to volunteer organization During the Daikin Cherry Blossom Festival in April

2016, we presented a donation of 11,000 yuan (approx. US$1,413) to a volunteer organization called Haiyu Mama.

■ Supporting a seniorsʼ home On September 28, 2016, Chinaʼs Chrysanthemum

Festival, we visited a seniorsʼ home, where we donated 2,000 yuan (approx. US$257) worth of food and daily necessities.

■ Supporting the local fire department On August 1, 2016, we visited the local fire

department, where we donated 4,000 yuan (approx. US$514) worth of drinks and fruit.

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■ Employees join in blood donor clinic On March 11, 2016, about 20 employees took part in

a blood donor clinic in Haiyu, Changshu.

■ Honored as Outstanding Foreign Company by Changshu municipality

In May 2016, DCC was named by the Changshu Peopleʼs Government as an Outstanding Foreign Company in Changshu.

■ Honored with Changshu Municipal Distinguished Citizen Award

On December 9, 2016, DCC President Hideo Kaneko

received a Changshu Municipal Distinguished Citizen Award. This award is given by the Changshu Peopleʼs Government to representatives of foreign companies that make outstanding contributions to the economic and social development of Changshu.