...We would like to share with you the current status of the labor issues at Kawaguchi Manufacturing.

While Daikin Malaysia (DAMA) continues to place orders with Kawaguchi Manufacturing, DAMA regularly visits and holds meetings with this company in order to monitor the progress of their improvement plans.

First, regarding the improvement of the labor environment, we checked the status of migrant workers’ salary payments, visa renewal procedures, and accommodations, and DAMA made several suggestions for improvement, such as creating a list of visa expiry dates for eligible workers.

In addition, in order to improve Kawaguchi Manufacturing’s financial planning and financing, we have obtained approval from both Kawaguchi Manufacturing and our material supply suppliers that DAMA will change the payment period from 60 days to 30 days and that DAMA will itself purchase and supply some of the production materials.

In parallel, with respect to the parts we plan to order in the future, in order to avoid the risk of delays in the supply, we are searching for other suppliers who can handle this, and we may contract production also to suppliers other than Kawaguchi Manufacturing.

DAMA will also conduct labor environmental inspection for other suppliers again…