Direction for Development FINANCIAL HIGHLIGHTS MANAGEMENT PERSPECTIVE TOPICS REVIEW OF OPERATIONS FINANCIAL SECTION CORPORATE DATA DAIKIN INDUSTRIES, LTD. ANNUAL REPORT 2001 6 Build a dynamic company that Expansion of business  scale Improvement in  profitability Total commitment to  management that  prioritizes market  capitalization Conversion of business  structure for sustainable  growth Enhancement of technology Establishment of a corporate  culture and management structure  in which we can take pride 1. Sales: 2. Ordinary profit: 3. Consolidated break-even point: 4. Market capitalization: 5. Three years total FCF: 6. Credit rating: 7. Overseas business ratio: $5,150 million $350 million 84% $5,500 million + $467 million A 32% 8. Innovation business ratio$^{*4}$: 24% 1. Net sales:  Targets in FY2004 Establish the foundation  for development in the  early 21st century. FY2001  *4  Innovation business ratio:  Businesses that are designated  on a Groupwide basis as those  that promote structural reform  (Different from our existing  concept of New Business Fields.) 12. Ensure a surplus for DVA 13. Overseas  business ratio: 14. Innovation  business ratio$^{*4}$: 11. Credit rating: 7. Daikin Value Added (DVA) 8. ROA 9. ROI 10. ROE 6. Three years total FCF: 5. Market capitalization: 3. Profit ratio 4. Consolidated  break-even point 2. Ordinary income:  Overseas business 32% Innovation business 24% Domestic business 44%