Daikin Industries (Thailand) Ltd. (hereinafter "DIT"), the Thai local subsidiary of Daikin Industries, Ltd., has jointly established a joint venture company, Daikin Toyota Tsusho Electronics (Thailand) Ltd. (hereinafter "the Joint Venture"), together with Toyota Tsusho NEXTY Electronics (Thailand) Co., Ltd. (hereinafter "NETH"), the Thai local subsidiary of NEXTY Electronics, Ltd.

The Joint Venture will be responsible for the development of embedded software* for air conditioning equipment developed and produced by DIT. It aims to shorten lead times and optimize costs in software development for air conditioning systems, while working toward the strengthening of the development foundation going forward.

*Embedded software: Software built into devices such as home appliances and industrial equipment, responsible for controlling and operating various functions.

■ Background and Intent of the Joint Venture Establishment

In recent years, software development in the air conditioning field has rapidly diversified, advanced, and grown in complexity, expanding its scope beyond the embedded domains of equipment and controllers to include cloud integration and data utilization. Against this backdrop of environmental change, strengthening software development capabilities and the continuous secure and cultivation of human resources have become critical management issues to accelerate the launch of differentiated products and expand solution services that enhance customer value. Based on these considerations, it was determined that a deeper collaborative framework between the two companies was necessary from the perspective of improving development speed and efficiency as well as human resource development, leading to the establishment of the Joint Venture.

NETH has over approximately 20 years of track record in automotive embedded software development in the automotive industry, which demands high quality. The software architecture that DIT is pursuing for air conditioning has high affinity with the state-of-the-art design philosophies cultivated in the automotive field, and the companies aim to strengthen development through the high synergy effects arising from the fusion of technologies of both companies.

The Joint Venture will initially commence with commissioned development of embedded software for DIT. Going forward, the company plans to expand its capabilities to also address the software development needs of Daikin Group air conditioning development bases across ASEAN countries and beyond.

By advancing the development and cultivation of development engineers in addition to improving development speed and efficiency, the Joint Venture will work toward the sustainable building of a competitive software development framework and contribute to further value creation in the air conditioning business.

Through the Joint Venture, DIT and NETH will fuse the strengths of both companies and accelerate the advancement of software development capabilities in the air conditioning field.

Overview of the Joint Venture

Overview of Daikin Industries (Thailand) Ltd.

Overview of Toyota Tsusho NEXTY Electronics (Thailand) Co., Ltd.